Full text of Press Releases of the United States Department of the Treasury : Volume 91

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JUN 141972
TREASURY DEPARTMENT

t:

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- 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)

the Internal Revenue Code,

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

Accordingly, the owner of

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

Copies I

-

M

2

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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 ail 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 be accepted in full at the
average price (in three decimals) of accepted competitive bids.

Settlement for

accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on January 10, 1952
...... ¿JXET ..

, in cash or other immediately avail

able funds or in a like face amount of Treasury bills maturing January 10, 195gi
^"7
Cash and exchange tenders will receive equal treatment. Cash adjustments will b
made for differences between the par value of maturing bills accepted in exchangi
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

A
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 3. 1952_____ •
The Secretary of the Treasury> by this public notice, invites tenders for
$ 1,200,000,000

-day Treasury bills, for cash and
in the amount of $ 1,200,685,000,
,/to be issued on*
in exchange for Treasury bills maturing ^ January 10, 1952
, or thereabouts, of

91

r

a discount basis under ccMpetitive and non-competitive bidding as hereinafter
The bills of this series trill bo dated

will mature

April 10, 1952
, when the face amount will be payable without
.-.. .g T«'
l....
imp ' 1 1 '
They will be issued in bearer form only, and in denominations of

interest.

January 10, 1952

.>

provided*

$ 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, January 7, 1952»
snm
Tenders will not be received at the Treasury Department, Yfashington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of
decimals, e. g., 99.92£.

Fractions may not be used.

100, with

not more than three

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

T R E A S U R Y

D E P A R T M E N T

Information Service

WASHINGTON, D .C .

4
RELEASE MORNING NEWSPAPERS,
Thursday, January 3, 1952.

S -2921

The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91 -day Treasury bills
F°r.iiasb and Tn exchange for Treasury bills maturing January 10 19s?
in the amount of $ 1 ,200 ,685 ,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 January 10, 1952 , and will
mature April 10, 1952, when the face amount will be payable without
interest.
They will be issued in bearer form only and in
1
f?nnnnnn n n T
¥fj '000> $ 5 ,000, $ 10 ,000, $ 100 ,000,’ $ 500 ,000, and
$ 1 ,000,000 (maturity value).
3
\

lm
r ec®ived at Federal Reserve Banks and Bra
¥
up to the closing hour, two o'clock p.m., Eastern Standard time
Monday, January 7 , 1952 . Tenders will not be received at the
’
multiple

Eaoh tender must he for an even

of $i,Q00,and in the case of competitive tenders the price

offered must be expressed on the basis of 100 , with not more than
%***
e - « V 99.925.
Fractions m a y ’not be used? it is
urged that tenders be made on the printed forms and forwarded in the

S S & ’ S K S E J K S S S . R , : * " “ ** »
S K S S S ! - l a s

’t = & ^
W

i S i S . * —

respon"ible°and ¥ ° m ¥ ° ¥ P¥ &¥ d banks and trust C0“Panles and from
from others mu?t b? ?^1Zed d?ah i S ln inve®tm®nt securities. Tenders
amount
* be a??ompani?d by payment of 2 percent of the face
accompanied vl
bd^-S aPP-ied for, unless the tenders are
o? ??Sst ooinplny? 6XPreSS gUaranty of Pa^ n t by an Incorporated bank
Federal“ReseÌ?o 7 Ro£Ì!r
cdosi ng h o u r ’ tenders will be opened at the
ment will be
following which public announceDri™
Secretary of the Treasury of the amount and
advised £ f t b f accepted b i d s - T h °s° submitting tenders will be
the acceptance or rejection thereof.
The Secretary of the
tenders^ ¥ Pr¥ ¥ 7 re?orves the right to accept or reject any or all
shall & I? i ole °*.la part» and his action in any such respect
tenders f o r ^ P n o nnn J'eC\ t0 th??e reservations, non-competitive'
non-co:
bidder wii t y,
9 00 or less without stated price from any one
.bidder will be accepted in full at the average price (in three

2
decimals) of accepted competitive bids.
Settlement for accepted
tenders in accordance with the bids must be m a d e .or completed at the
Federal Reserve Bank on January 10, 1952, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing January 10, 1952.
Cash and exchange tenders will
receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any
exemption, as such, and loss from the sale or other disposition of
.Treasury bills shall not have any special treatment, as such, under
the Internal Revenue Code, or laws amendatory or supplementary
thereto.
The bills shall be^ subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all.taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are
originally sold, by the United States shall be considered to be
interest. Under. Sections 42 and 117 (a) (1) of the Internal Revenue ,
Code, as amended by Section 115 of the Revemie Act of 1941, the .'V
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 Uo. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

2
to provide additional funds and agents for narcotic
enforcement, and enactment of the Boggs bill in
November providing heavier penalties for narcotic
traffickers.

Commissioner Anslinger expressed the belief that
a large number of peddlers engaged in supplying

narcotics to teen-agers had been caught.
The Bureau of Narcotics has been moving against
second and third offenders since the Boggs bill became
law.

Through tireless and relentless enforcement,

the trend toward an increase in teen-age drug
addiction has been habited and there has been a
sharp reduction in the number of teen-agers applying
for hospitalization because of drug addiction.
Another effect of the Boggs bill has been a
noticeable shift by narcotic traffickers to other
rackets, following the sentencing of a number of
second and third offenders to long prison terms.

annou

e jr

e ofbuntry
be/innimg
•wide clean-up of the illicit narcotic
traffic iSfpor^edan intensified effort by the Bureau
A
of Narcotics to check drug addiction, particularly
among teen-agers.
The raids, which took place in everv major city
of the Uni

es, were conducted under the

A

direction of Commissioner

Anslinger

Today’s clean-up had been carefully planned
and organized, following action by Congress recently

Secretary Snyder announced

'W

S »

that Harry J.

A
Anslinger, Commissioner of Narcotics, had reported

JmA
d^1
—^
,
the arrest of some 500 narcotic peddlers in raids
A
throughput the countr;

T R E A S U R Y

8

D E P A R T M E N T

Information Service

WASHINGTON, D .C

RELEASR, 3 P.M., E.S.T.
Friday, January 4, 1952.

S-2922

Secretary Snyder announced this afternoon that Harry J.
Anslinger, Commissioner of Narcotics, had reported the arrest during
the"day of some 500 narcotic peddlers in raids throughout the country,
The nation-wide clean-up of the illicit narcotic traffic
represented an intensified effort by the Bureau of Narcotics to
check drug addiction, particularly among teen-agers.
The rdids, which took place in every major city of the United
States, beginning in the early morning hours, were conducted under
the direction of Commissioner Anslinger.
Today’s clean-up had been carefully planned and organized,
following action by Congress recently to provide additional funds
and agents for narcotic enforcement, and enactment of the Boggs
bill in November providing heavier penalties for narcotic traffickers.
Commissioner Anslinger expressed the belief that a large
number of peddlers engaged in supplying narcotics to teen-agers had.
been caught.
The Bureau of Narcotics has been moving against second and
third offenders since the Boggs bill became law.
Through tireless
and relentless enforcement, the trend toward an increase in teen­
age drug addiction has been halted and there has been a sharp
reduction in the number of teen-agers applying for hospitalization
because of drug addiction.
Another effect of the Boggs bill has been a noticeable shift
by narcotic traffickers to other rackets, following the sentencing
of a number of second and third offenders to long prison terras.

oOo

Mrs. Maybelle Kennedy of Pawhuska, Oklahoma,
was sworn in today as Assistant Treasurer of the
United States.

She succeeds the late Mrs. Marion G.

Banister.
Mrs. Kennedy has served as trustee, stockholder
and director of the National Bank of Commerce in
Pawhuska.
She was born in Knox County, Missouri on
September 2, 1891, the daughter of the late Hiram S.
and Nancy Bryant McClintick.

She attended school

at Oaklawn College, Novelty, Missouri.
Mrs. Kennedy, who is the mother of five
children —

four girls and a boy —

has been an

active business woman since the death of her husband,
Edward Thomas Kennedy, of Pawhuska, in 1936.
becomes Assistant to Mrs. Georgia
Neese Clark, Treasurer of the United States.

TREASU RY DEPARTM ENT
Information Service

WASHINGTON, D .C .

10
IMMEDIATE RELEASE
Monday, January 7, 1952

S -2923

Mrs. Maybe!le Kennedy of Pawhuska, Oklahoma, was
sworn In today as Assistant Treasurer of the United
States.

She succeeds the late Mrs. Marion G. Banister.

Mrs. Kennedy has served as trustee,

stockholder

and director of the National Bank of Commerce in
Pawhuska.
She was born in Knox County, Missouri on September 2,
1891, the daughter of the late Hiram S. and Nancy Bryant
McClintock.

She attended school at Oaklawn College,

Novelty, Missouri.
Mrs. Kennedy, who is the mother of five children -four girls and a boy —

has been an active business

woman since the death of her husband, Edward Thomas
Kennedy, of Pawhuska, in

1936 .

She becomes Assistant to Mrs. Georgia Neese Clark,
Treasurer of the United States.

0O0

w

Secretary Snyder^today appointed Charles R.
McNeill an Assistant General Counsel for the
Treasury Department.

He succeeds Philip Nichols^,

who resigned to become General Counsel^ of the t
Renegotiation Board.

Among his duties as General
A
Counsel will be supervision of the legal work of the
bureaus of Customs and Narcotics.
Mr. McNeill, a Pennsylvanian, has been a

member of the staff of the General Counsel since
April, 1943.
He is a graduate of Amherst and Harvard Law
School.

He practiced law for four years in Erie,

Pennsylvania, before coming to the Treasury Department.
Mr. McNeill represented the Treasury on the
United States delegation to the Fourth Session of
the Contracting Parties to the General Agreement
on Tariffs and Trade at Geneva, Switzerland.

IMMEDIATE RELEASE
Monday, January 7 . 1QB2

S-292^

Secretary Snyder today appointed Charles R. McNeill
an Assistant General Counsel for the Treasury Department.
He succeeds Philip Nichols, who resigned to become General
Counsel of the Renegotiation Board.

Among his duties

as Assistant General Counsel will be supervision of
the legal work of the bureaus of Customs and Narcotics.
Mr. McNeill, a Pennsylvanian, has been a member
of the staff of the General Counsel since April,

1943 .

He is a graduate of Amherst and Harvard Law School,
He practiced law for four years In Erie, Pennsylvania,
before coming to the Treasury Department.
Mr. McNeill represented the Treasury on the United .
States delegation to the Fourth Session of the Contracting
Parties to the General Agreement on Tariffs and Trade at
Geneva, Switzerland.

0O0

Esas®, K n i » nmsfk?ees,
ÊËËMâJmàsJÈ*. ,^,f„„_
Tti» Saaratary af t e Traamry a m a n te %mt arm lm t e t t e U&dm t e
i l #*QQ#öööfOOöf ar teraateta» aff F lte y fraaiKtry feHlü to ba d o te ternary 10 t e to
»»turo April 10f 1952# «blah war* affarti «a ternary 3t «oro spate at t e F a te ti
Saaanra Saisie« on ternary ?»
t e datali» of thto imam oro a» folte««
Total appliad t e * t5?,10li#?fl5#00û

Total acoaptad
ter*«« pria#

» 1,201,102,000

(telate $221«,209*000 astate, on a
IiooHîOBpotitte tei« t e aesaptad in
fdH at t e avaraga prie« tea» bote}
• 99*ÿtU Equivalant rato of diaoote appro»* l*áS?jl t e *»»*»

tega of aeeaptaá solatiiiva feite (Excapting os» t e t e of |300#ööö)
84#
loo

- ff«S$3 latente xmta of ditete approx* %«W&$ par a»
* 99*§7X
«
«
*
*
*
1.697$ *
1
Cl# parate of t e t e t e bld for at t e loir pria» «te aooopte)

Fatemi Baatrva
District

Total
Appliad far

fatal
àccaptad

Boato»
lau fork
ffeiladalpbla
Claveland
SitteM
Atlanta
Chicago
it* tela
Mlsmaapeli»
fanaaa City
Palla»
Sa» Francisco

« 33,695,000
l,bOü,31(9,000
30,815,000
71,901,000
32,1(88,000
36,388,000
883,787,000
$5,1)85,000
9,189,000
67,920,000
82,Otó,000
60,606,000

1

$t9y>h,9B$9QQQ

11,201,102,000

TOTAL

25,538,000
681,809,000
70,851,000
29,11(8,000
n , m fooo
151,657,000
39,l6ii,000
8,889,000
1(9,100,000
1(2,960,000
$0.81*3.000

T R E A S U R Y

D E P A R T M E N T

Wa s h i n g t o n ,

Information Service
RELEASE MORNING NEWSPAPERS,
Tuesday, January 8 . 1952 .

to

m

d .c

.

S -2925

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated January 10 and to mature April 10, 1952,, which were
offered on January 3, were opened at the Federal Reserve Banks on
January 7 •
The details of this issue are as follows:

i

m

Total applied for - $2,10^,985,000
*Total accepted
- 1 ,201 ,102,000 (includes $ 22^, 209,000
entered on a non-competitive
basis- and accepted in full
at the average price shown
below)
Average price
- 99.57^ Equivalent rate of discount approx.
1.687$ per annum
Range of accepted competitive bids:

Lo¥

]

(Excepting one tender of
$ 100,000)

- 99.583 Equivalent rate
1 .650$
- 99.571 Equivalent rate
1.697$

of discount approx.
per annum
of discount approx.,
pep annum

(49 percent of the amount bid for at the low price was accepted)
■ Federal Reserve
I ^ strict
I Boston
I New York
I Philadelphia
I Cleveland
IRichmond
I Atlanta
IChicago
|St. Louis
■Minneapolis
■Kansas City
■Dallas
■San Francisco

Total
Applied for
$

33 ,695,000
1,400,849,000
30 .819.000
71.901.000
32.428.000
36.382.000
223 ,727,000
55.429.000
9 ,189,000
6 7 .920.000
82.040.000
60 .606.000

$ 2 ,104 ,985,000

0O0

Total
Accepted
$

29 ,532,000
681 .809.000
15 .517.000
70 .851.000
29.148.000
31.222.000

.

151 6 5 7 .0 0 0
39.164.000
8 ,889,000
49.410.000
42.960.000
50.943.000

$1,201,102,000

TR EA SUR Y DEPARTMENT
Fis c a l S e rv ic e

STATUTORY DEBT LIMITATION
AS OF December

Wash i n g t o n ,

...195.1 .

"It.? 5 ^

section 21 of Second L ib e rty Bond Act, as amended, provides that the face amount of o b lig a tio n s issued
under au th o rity of that Act, and the face amount of o b iig at ions guaranteed as to p rin cip a l and in te re st by the
united sta te s fevceDt such auaranteed o b lig a tio n s as may be held by the Secretary of ttie T r e a ^ iy ) , sh a ll n°t

be

The following ta b le shows the face amount of o b lig a tio n s outstanding and the face*amount which can s t i l l
ssued under t h is lim ita tio n :

|2 7 5 ,0 0 0 ,0 0 0 ,0 0 0

Total face amount that may be outstanding at any one time
Outstanding
O bligations issued under second Lib e rty Bond Act, as amended

1reasury6bHis1.............. 1X8,101,892,000
C e rtific a te s of indebtedness...........,

^ 9 » 0 7 8 ,0 7 8 ,0 0 0

Treasury n o t e s ..........................................

2 5 ,9 1 + 2 ,6 0 9 ,1 * 0 0 &

Bonds T reasu ry .................................................
Savings (current redemp. value)

76,91+5,050,950

7 3 , 1 2 2 , 5 7 9 . “« 0

5 7 ,5 8 6 ,5 5 9 ,2 1 2

350,980,500

Depositary............................................
Armed Forces L eave.............................
Investment s e r i e s ................................

**
1 3 ,0 1 1 ,0 0 5 1 ^ ^

1 ^ 7 * 2 9 3 »595*^ 62

^ C e r t if ic a t e s of indebtedness.........
Treasury n o tes......................................

2 1 ,7 0 ^ ,0 1 5 ,0 0 0
H t , 1 9 8 ,2 5 6 ,0 0 0

3 5 ,9 0 2 ,2 7 1 ,0 g

Matured,

Total in terest-b ea rin g
in terest-ceased ............ .........................................................

Bearing no in te re s t:
War savings stamps ...................................
Excess p r o fit s tax refund bonds.......

’ U S s ’ lb S 'o 0 7
4 8 8 ,1 5 8 ,0 0 7

l+ 7 ,2 8 l+ ,7 8 2
1 , 9 “+ 9 ,9 1 3

Special notes of the United S tate s:
In te rn a t'l Monetary Fund s e r i e s ...
Total

^

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

1 , 296 , 000,000

l , 3 l + 5 , 23*+. 6 9 5

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

258 , 751 ,8 3 8 ,7 6 1 +

Guaranteed o b lig a tio n s (not held by T reasu ry):
In tere st-b e arin g :
Debentures: F .H . a. .....................................
Demand o b lig a tio n s: C .C .C ...................
.........
Matured, in terest-ceased ........................................

39,007,886
1,1+80,1+55

1*0,1+88,31+1
1 ,6 8 9 ,6 2 5
1 + 2 ,1 7 7 ,9 6 6
2 5 8 .7 9 1 + .O 1 6 .7 3 0
l b . 2 0 5 ,9 8 3 .2 7 0

Grand to tal o u tsta n d in g ............v..................
................................ ......... .......
Balance face amount of o b lig atio n s issu ab le under above authority
Reconcilement with statement of the Public Debt .D © c .
(D aily Statement of the United s ta te s Treasury, J a n .
v

3 1 , .195.1

(Date)

2,

(Date)

1 9 5 ?)

Outstanding Total gross public debt ..........................................................................................................................
Guaranteed o b lig atio n s not owned by the Treasury .....................................................................

259,1+18,600,828

Total gross p ublic debt and guaranteed o b lig a tio n s ........................................... .
..........
Deduct - other outstanding public debt o b lig a tio n s not subject to debt lim it a t io n ....

2 5 9 ,1 + 6 0 ,7 7 8 .7 9 1*
6 6 6 .7 6 2 .0 6 1 +

1 + 2 ,1 7 7 ,9 6 6

2 5 8 .7 9 * + .0 1 6 ,7 3 0

'¡S*

STATUTORY DEBT LIMITATION
AS OF DECEMBER 31» 1951

January 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 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)» ‘Lshall not
exceed in the aggregate $275»000,000,000 (Act of June 26, I9h6; U.S.C., title 31f
sec* 757b), outstanding at any one time0 For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount#1*
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$2 7 5 , 0 0 0 , 0 0 0 ,0 0 0
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills.*##«*,#♦***#**.#$ 18,101,892,000
Certificates of indebtedness**# 29,078,078,000
Treasury notes**##***#**.*.*.** 25,9^2,609,1*00 $73,122,579,1*00
Bonds Treasury •Q##*.«*e«#«*oo«o##*# 76, 9l*5,050» 950
Savings (current redemp«value) 57,586,559,212
Depositary.*«##«#***.#.**.*#.
350,980,500
m
Armed Forces Leave**.«*•*«»**
Investment series *• *###•«#•# 13,011,005,000 1^7,893,595,662
Special Funds Certificates of indebtedness« 21,701j.,015,000
Treasury notes.#*##...#*«,.#«» 11*,198, 256,000 35» 902,271,000
Total interest-bearing,#*.*.*c**.****,*.*..
Matured, interest-ceased*#.*#.*♦♦*«..**.*.*#*.*.#*#
1*88,158,007
Bearing no interest:
War savings stamps.##.**,.***#*,,
1*7,281**782
Excess profits tax refund bonds,#
1,91*9,913
Special notes of the United States:
Internat»l Monetary Fund series
1,296,000,000
l»3h5,23l*,695
Total#o«*##«•#«•««• •*•«6#*#***###*#*,#*#.*.#.....#o
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H«A. *•«##«.,♦,##*
39,007,886
. peroand obligations; C*C*C#
1,1*80,1*55
1*0,1*88,31*1
Matured, interest-ceased*##***#*...*♦,.# *#. *#»«. #« #
1,669,625
1*2^177,^
Grand
total outstanding
,
----- o«*9•«*«***ct»a««*#,*•*««*•#»
258»79a,03.6,730
Balance face amount of obligations issuable under above authority***
~ Tieconcilement wi"th SLatemen^^of the ïhibTic Debt «>lUecember JÜL* 1951
L ,
(Daily Statement of the United States Treasury, January 2, 1952)
Outstanding
Total gross public debt**.#***..*,#****#....„•*»##,#.....#«...#.#«0#« 259,1*18,600,828
guaranteed obligations not owned by the Treasury,.«.##.#.#*****###
1*2,177,966
gr?fs public debt and guaranteed obligationsc#*.«,.*,*...».«.
uct - other outstanding public debt obligations net subject to
debt l i m i t a t i o n . .. .. ««#**# ###*#.#.#* ###
666, 762, 061*
,79h, 016,
S-2926

7

^

w

~

Secretary Snyder announced today the establishment
of revised procedures to expedite the prosecution of
criminal tax evasion cases as part of the reorganization
of the Bureau of Internal Revenue,
Under the new procedure
such cases no longer will be required to come to Bureau
headquarters in V/ashington for review, but will be referred
directly from the field by the District Penal Attorney of
the Bureau of Internal Revenue to the Department of Justice,
The Attorney General has agreed to cooperate in
expedit i|| <a? such cases under the new procedure
Secretary Snyder said the new arrangement is part of
a revamping of Bureau procedures to permit the more
effective and prompt prosecution of criminal tax evasion
cases.
It will eliminate several time-consuming and'
overlapping stages of successive review and consultation
before actual institution of criminal proceedings.
The Bureau of Internal Revenue at the present time
has local District Penal Counsel in each of the fourteen
A
field divisions
of the Intelligence Unit.
There are also
four larger districts in the country for supervisory
purposes, each under the direction of a Regional Penal
Counsel.
Overall supervision of the activities of the
Penal Division in the field is carried out by the Penal
Division of the Office of Chief Counsel in Washington.
Under the old procedure for handling of criminal
tax fraud cases, a recommendation which originated with
the office of the Special Agent in Charge of the particular
district was first reviewed by the District Penal Counsel
to determine whether criminal prosecution was warranted.
Thereafter the case was reviewed by the Regional Counsel
of the Penal Division in the field, from which it went
to the headquarters of the Bureau of Internal Revenue in •
'
Washington for further review before referral to the
Department of Justice with recommendation for prosecution.
Under the new procedure, all of these intervening steps
of review and consultation will be eliminated, so that
the report of the case, together with recommendation for
prosecution, will go direct from the first stage of review
by the District Penal Counsel in the field to the Department
of Justice in Washinot on.
The Attorney General will continue supervision of the
prosecution of such cases and t-foo p
assistance to local United States Attorneys in^-thu bluL ll-TT
trial of such cases.

TREASURY DEPARTM ENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE
Tuesday, January 8, 195>1

S-2927

Secretary Snyder announced today the establishment of revised procedures to
expedite the prosecution of criminal tax evasion cases as part of tte rec^auization of the Bureau of Internal Revenue, Under the new p r o ^ d S e such cafes
no longer will be required to come to Eureau headquarters in Washington for
review, out will be referred directly from the field by the District Penal
Attorney of the Bureau of Internal Revenue to the Department of Justice." The
new p”ocedureral ^

3greed to C00Perate in expediting such cases under the

I m.n.J ™1'64*17 Snyder said the new arrangement is part of a revamping of Bureau
I evasion eaj.
more effective and prompt prosecution of criminal tax
I ev sion ca„es. It will eliminate several time-consuming and overlapping
I !:-gf f sucoe®f1V8 review “ d consultation before actual institution of
I criminal proceedings*
I PonaJr* Bur®a? of Iflte;nal Revenue at the present time has local District
S 2 +1 CT ^ n Sl ln T 11 f the fourteen field divisions cf the Intelligence
" Th re y ® 3lso four larger districts in the country for supervisory
purposes, each under the direction of a Regional Penal Counsel. Overall^
of the Penal Division in the field is carried out
by the Penal Division of the Office of Chief Counsel in Washington.
____ ^- d y uhe 0xd procedure for handling of criminal tax fraud cases, a
S S ' p ^ i c ”l!- d* °r^gfnated " ith the
of the Special Agent in Charge
I. j ? Pfjl&etaax district was first reviewed by the District Penal
was r®7iS e d ^ e^ ^ rRcrJminal Prosecu-i^ was warranted. Thereafter the°case
which
v R,^i°nal Counsel of the Penal Division in th@ field, from
for furthar* review^ aeadqua£ters °f the Bureau of Internal Revenue in Washington
fZ
0re rf erral t0 the Bepartment of Justice with
8
L-*
,
ior Prosecution, Under the new procedure, all of these
» P o r t ^ f T h! PS °fl HVi,!W and consultation will be eliminated, so that the
direct
s
^gs-cherWj-th recommendation for prosecution, will
F
‘
* the field

|caS M TandAa ^ S I n o T t o a^I»iU TrC?ii‘ance f ^ f ^ o n of the Prosecution of such
cas©§0
■*
i0 ‘k0wa^ Cuits^ States Attorneys in the trial of such

0O0

g0

- 3 -

«HE
any State, or any of the possessions of the United States, or by any local taxing authority.

For purposes of taxation the anount of discount at which

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

Under Sections h2 and 117 (a) (1) of the Internal Revenue Code,

as amended by Section 111? of the Revenue Act of 19Ul, the anount 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. Ul8j as amended, and this notice, prescribe!
the terms of the Treasury bills and govern the conditions of their issue. Copies I
of the circular may be obtained from any Federal Reserve Bank or Branch.

■

unless the tenders are accompanied by an express guaranty of payment by an in­

1

corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof. I
The Secretary of the Treasury expressly reserves the right to accept or reject
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 fran any one bidder will be accepted in full at the-1
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

jarma^l^, 19$2

* in cash or other immediately avail- I

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

January 17» lffjgil

Cash adjustments will tel

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 anyi
special treatment, as such, under the Internal Revenue Code, or laws amendatory I
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

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

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

I M I Kffl
M30E
TREASURY DEPARTMENT
Washington

3 ? 2 p

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 10, 1952

The Secretary of the Treasury, by this public notice, invites tenders for
I

1 ,200^ 000,000

, or thereabouts, of

in exchange for Treasury bills maturing

January 17« 1952

> ! ^

issued on

a discount basis under competitive and non-competitive bidding as hereinafter
The bills of this series will be dated

tall mature

April 17, 1952
, when the face amount will be payable without
''
om
They tail be issued in bearer form only, and in denominations of

interest.

January^17« 1952

> anci

provided.

|1,000, $ 5,000, $ 10,000, $ 100,000, $500,000, and $ 1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m., Eastern Standard time, Monday, January lit, 1952.

~25T~

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

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of
decimals, e. g., 99.925.

Fractions may not be used.

100, with

not more than three

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders frcm others must be accompanied

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

1

The Secretary of the Treasury, by this public notice, invites
tenders for '$1,200,00.0,000 , or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bi?ls maturing
January 1 7 , 1952, in the amount of $1,200,321,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided.
The bills of this series will be dated
January 17, 1952, and will mature April 17, 1952, when the face
amount will be payable without interest.
They will be issued in
énnne L n 0 r Ar-Sn l y i **4 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 rece?.ved at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Standard time,
Monday, J*anuary 14, 1952,
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.

I

^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
lenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders
e accompanied by an express guaranty of payment by an incorporated
Dank or trust company.
immediately after the closing hour, tenders will be opened at
Federal Reserve Banks and Branches, following which public
S nou? cenient w il1 be
by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
wj-ii be advised of the acceptance or rejection thereof.
The
ecretary of the Treasury expressly reserves the right to accept or
amr
ov a11 tende^s, in whole or in part, and his action in
non !!UCh J®sPect shall be final.
Subject to these reservations,
fT>owCOmpe^i^ive tenders f'or $200,000 or less without stated price
om an^ one bidder will be accepted in full at the average price

2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on January 17, 1952, in cash
or other immediately available funds' or in a like face amount of
Treasury bills maturing January 17, 1952.
Cash and exchange
tenders will receive equal treatment.
Cash adjustments will be
made for differences between the par value of maturing- bills
accepted in exchange and the issue price of the new b i l l s .
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
dispositiCn of Treasury bills shall not have any ..special: treatment,
as such, under the Internal Revenu'e 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 of hereafter imposed 011 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 she,11 be considered
to be interest.
Under Sections 42 and 117(a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue: Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed'or otherwise disposed of, and such bills are excluded from
consideration-as capital assets. .Accordingly, the owner of .
Treasury bills (other than life insurance companies) issued here­
under heed 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

¿ f f

^

^ l Ì ^ a a a É — A «*$ m d e tcddy thak tho Precidoat l»d aoasdmteé dMh Andrew 11*0»»r]
ef Wàshington» D*C*fwr appolatwmt a» Aceictaat Swrttsi'y of thè freaeury to fili
thè vaeii»cy croate* whe» » Wllliaa IfcChaimey Sfertis reclgned to aooopt appoiatea
0s Gh&trmsm ©f thè Board of GoT&raor# ©f thè Federai Recar»o Syeteu Ir* 0»©rby
1» serTlag «mi Depu^r teaging Director of thè International «oaetary Fuad at t e
prcceot tiae^aad ha© held a nuaher of reepoaeibl© poeitioae la tho fiaancial fieli«
Mr. 0»©rby «oc bora la Gheycane Ageney* South Dakota* o» liaroh S7* 19Q9*
He attenete* th* Oniversi ty of fcitaaecot* fro» 1926 to 1928 bofore traneferriag to
tho Sohool of Busiacee» Columbio University. Sa graduate* froa t e lattar la 1980 I
«ith thè degree of 3*S* m é reoeivod tho degre© ©f M*S* la 1940*
Frea 1980 thrcueh 1941 11r* &»©rhy «ac ©aployed by thc Ir»iag trust Goapaay
la 8©w York City» eenriag froa 1988 to 1941 ac Aceictaat to t e Fico President la
terge of portfolio investente. le joinad t e Foderai Reeervo Batik of 1 * York
la dmmary 1942 and ecrved ac cpoolal «ceietaaTto th© Fie© Precidente la terge
of thè internati osai baaking aad Invostemt fuaetlone of thè institutto» unti!
Ootober» 1941» tìifis he aooopted a oosedseioa ac First Idoutonant la tho Bftit&d
I
States Arssfw le waa dìecharged froa the krmf la Afri! of 1948 «ith thè voak of
I
Liautvnant Coloael» War Dapsrteat General Staff Corps. li «ac cwardeé t e
Ugiot of derii* and tho Aray Coeneadatton Hibbon for dietiaguiehed milltary
serviee»
After hlc ¿deterge fro» thè Arsy* Hr* ©rorby returaed to t e Federai User«
Bsr.k of le» York for a few »ente «ad serve* ao Acclctoat Fio# Preeideat consorte
parti oularly wi th internet onci finca©lai relation#* la Augnot of 1948 he «ac
a s o l a t e Scolai ftecieteaat to t e Searetary of t e freacury la oharge ©f iatoraatloaal aanstary and fìaenoial affaire* aad eupervieed t e Divisioa of Moaetary
Eecoaroh and foraign Fuadc Control* Purlag thf$porto* he alce cejnred ac t e
Seoret&ry*t alternate oa thè htlooil Adidiory Couaoil oa Internati onal Heaetary
cad Flaaaoial Probleo»g^W?è Za duly of 1947 he «ac appointed by t e Precidasi
to t e pesiti©» of Caited State* fxeeutiv© Director of ih* International honetary
fuad* He ooctlaued to cereo la thlc capacity unti! Fobrmry of 1949 «boa he
aooepted hlc p recai positi oa ac Peputy henegiag Plrootor of t e laternati onal
Monetary Fuud.
Or* «ad Ire* Oeorby recido at 2444 Massachusetts I m o ,

lorteoct*

I
I

I
I

1

T R E A S U R Y

Information Service

IMMEDIATE RELEASE
Thursday. January

24

D E P A R T M E N T

WASHINGTON, D.

10. 19S2

S-2929

^
?as made today that the President had nominated Andrew».
S e I s u ^ +n fi\In?i0n' D ' C" f0r aPPolntment as Assistant Secretary of toe
Treasury to fill the vacancy created when William McChesney Martin resigned

Reserve^System ^Mr^cye ^ha|rma'
n °J 016 B°ard of Governors of the Federal
Into^atioMl Mon! r a ^ ? f
servingas Deputy Managing Di
Fund at the Present time, and has held a number of
responsible positions in the financial field.
He a*tonriSle+hy na?
torn in
+f fute2dud
University of Minnesota from 1926 to
£ lllo
9,

1928

CheyenneAgency, South Dakota, on M
before transferrin«'

r t t o th e
Unl —
Ha graduated fr o ^ t o e ^ la t te r
it o the degree of B .S . and received the degree of M»S„ in 19li 0 .

«- „ Fr0“

through 19l*l Mr. Overby was employed by the Irvine Trust

P?”
ntnine!,I°rk
1936 *> »it aa Assistant^to^he Vice
Bank^f Ne^rork fn u
inT8stments- He Joined the Federal Reserve
/ u ^ Ja"ilaly 1?^2 and served as special assistant to the Vice
S

tostitutiofStil°o i b ^ o i T

Corps ° V w

6 With

^ 01131 bankinS

r^oTliZln^l" w ^ f ^ p a r t o ^
t " * Cwmendation Ribbon

f!

for^distinguished^ilitary S c e f

and investment functions of

****',

St

Reserv^ B a n k ^ ^ M 301^ 1"2!6 £r°m tbe Arrajr» Mr* Overby returned to the Federal
Reserve Bank of New York for a few months and served as Assistant Vice
Aueust of i ° o U ?
Particularly with international financial relations. In
T f
be was appointed Special Assistant to the Secretary of the
supei„ f L dn+°ba£fe .°f international monetary and financial affairs, and
Durin« +m
?iTi®lon,of Monetary Research and Foreign Funds Control.
AdvisorTcounMi'
r
f S°f?rTOd *S the Seoreta*T's alternate on toe N
19h7 h f w ,
International Monetary and Financial Problems. In July of
Exal,+i
n.appointed by the President to the position of United States
£ tois c a n a M ^ ° r
t5 \ Inte» iation?1 M°netaxy Fund. He continued to serve

2
Mr,

S

X

5

5

? i S

L

i

S

i

r

■“ * p" 1“ “

and Mrs. Overby reside at 2UÍIÍ* Massachusetts Avenue, Northwest,

2S

1
Secretary Snyder announced today ttiat the Treasury Department
^ \
Ü H absndoned tho policy under which criminal preelection ha»
boon recommended in eases where taxpayer» made voluntary dloel
of intentional violation of tho Internal Revenue laws prior to
Initiation of tho Inveotigatien by the Bureau of Internal Hove.___
In connection with thle change of policy# the Secretary Issued the \ V
following statement t
"Hhile it has been the long eetabllshad polîcy of
the Treasury Department to refrain frop recceanending
criminel proeecution idtere taxpayers make voluntary disolosure of intentions! tax évasion prier to the initia­
tion of an Inveatigstiofi by the Burent of Internai
Hevwnue# it hoo boon concluded that such policy will no
longer bo followed* litigation in the courts in recent
years has illustrated tho controversial nature of tho
question as to what constitutes a true voluntary dlsclosure in fast* In tha administration of the policy
it has been difficult and at tines impossible to aseertain whether the disclosure was wade because the tax­
payer realised ho was under investigation or whether tho
disclosure mis in feet voluntary and In reliance on the
inanplty held out by the policy*
"The intoned fled enforcement activities of the
Bureau fs Special Tax Fraud Drive and Racket Squads
throughout the country are ferreting out the wilful tax
avadara# and resulting In recovery of the additional
taxes and penalties due the government# It Is the
policy of the Treasury Department to reeewnend original
prosecution in every ease where the fasts and eircuse*
stances warrant that action.”

V

y

T R E A S U R Y

D E P A R T M E N T

Information Service

WASHINGTON, D .C .

I M E D I A T E RELEASE
Thursday, January 10, 1952

S -2930

Secretary Snyder announced today that the Treasury Department
has abandoned the policy under which criminal prosecution has not
been recommended in cases where taxpayers made voluntary disclosures
of intentional violation of the Internal Revenue laws prior to the
initiation of the investigation by the Bureau of Internal Revenue,
This action was recommended by Commissioner Dunlap.
In connection
with this change of policy, the Secretary issued the following
statement:
"While it has been the long established policy of
the Treasury Department to refrain from recommending
criminal prosecution where taxpayers make voluntary dis­
closure of intentional tax evasion prior to the initia­
tion of an investigation by the Bureau of Internal
Revenue, it has been concluded that such policy will no
longer be followed.
Litigation in the courts in recent
years has illustrated the controversial nature of the
question as to what constitutes a true voluntary d i s ­
closure in fact.
In the administration of the policy
it has been difficult and at times impossible to ascer­
tain whether the disclosure was made because the tax-,
payer realized he was under investigation or whether the
disclosure was in fact voluntary and in reliance on the
immunity held out by the policy.
"The intensified enforcement activities of the
Bureau's Special Tax Fraud Drive and Racket Scuads
throughout the country are ferreting out the wilful tax
evaders, and resulting in recovery of the additional
taxes and penalties due the government.
It is the
policy of the Treasury Department to recommend criminal
prosecution in every case where the facts and circum­
stances warrant that action."

0O0

v

^

V

-

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 ...............
J a p a n ................
C h i n a .... ......... .
E g y p t .... ............
C u b a .......... ......
Germany........
I t a l y ............... .

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

5,482,509

1/

Included in total imports, column 2.

Prepared by the Bureau ox Customs

: Total imports
: Sept. 20,1S>£1 to
: Dec. 31. 1951
27,370
150,655
—
—

Imports
: Established :
Sept.
20,
s
33-1/3* Of :
: Total Quota : to Dec. 31. 1951
1,441,152

1/

27,370

—

75,807
—

22,747
14,796
12,853

—*
mm

—
—
—

178,025______

25,443
7,088
1,599,886

________ 27,370_____

IMMEDIATE RELEASE
January-^ 1952

S - JfJ !

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President’s Proclamation of September 5, 19393 as amended
COTTON (other than linters) (in pounds)

Imports Sept. 20, 1951s to December 31, 1951, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
Peru ................
British India ......
C h i n a ........... ..
Mexico ............
Brazil ............
Union of Soviet
Socialist Republics
Argentina ..........
H a i t i .... .........
Ecua d o r........

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

Imports

21,009

1,368,853
103,000

475,124
5,203
237
9,333

Country of Origin

Established Quota

Imports

752
871
124
195
2,240
71,388
21,321
5,377
16,004
689

-

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

—

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8® or more, but less than l-ll/l6u
Imports Feb. 1, 1951, to December 31, 1951

Cotton, harsh or rough, of less than 3/4”
Imports Sept. 20, 19?1, to December
Established Quota (Global)
70,000,000

Established Quota (Global)

Imports

45,656,420

1,01*3,953

Quota Filled

Cotton, harsh or rough (except cotton of perished
staple, grabbots, and cotton pickings), white in
Imports July 5a 1951, to December 31, 195>1
EstabXiLsEed'“C¿,uota (Global)

Imports
172,700

TT7THÔ.^TTRV .TOPÄP'TMi'OT

Imports

—
—
—

-

—

TREASURY DEPARTMENT
Washington

IMMEDIATS RELEASE

S-2931
i

Monday, January 11, 1952

Preliminary data on imports for ponsumption of cotton and cotton waste chargeable to the Quotas
established by the Presidentas Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/a mc n e s other than rough or harsh under 3/1”
Imports Sept. 20, 19.51*. to December 31, 1951, inclusive'.
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan....
Peru
British India ••••••
China »•*••••*••.•••
M^XXCO
Bra7d 1
__
Union of Soviet
Socialist Republics
Argentina ••••...*••
Haiti •*•••••••«••••
Ecuador ......... .

703,816
21?,952
2,003,163
1,370,791
8,883,25?
618,723

Imports

21,009

1,368,855
103,600

175,121
5,203
' 23?
07,PPP

-

—

Country of Origin

Impoi

Established Quota

Honour as «•«.•...a*.....»
Paraguay
Colombia •••.»••.•••••••9
Xracj
British East Africa ..... .
Netherlands E* Indies ...
Barbados ••••••••«••-... •.
l/0ther British ¥• Indies •
Nigeria •**•••••*v.•.V.•*
2/otner British W* Africa .
3/0ther French Africa ..,»*•
” Algeria and Tunisia

752
-

871
121
195
2,2lO

-

-

71,388
21,321

5,377
16,001
. 689
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, a.nd Tobago.
2/ Other than Gold Coast and Nigeria*
Tunisia, and Madagascar.
3/ Other than Algeria, 1
...

..

:
■* ’

»-♦*'

Cotton, harsh or rough, of less than 3/1 ”
imports Sept. 20, 1951> to December 31, 1951

"Cotton 1-1/8” or more, but less than 1-11/1*6”
"Imports Feb. 1, 195l> to December, 3l> 1951"'

Established Quota’(Global)

Established Quota (Global)

70,000,000

Imports

1,010,953

Imports
Quota Filled

15,656,120

Cotton, harsh or rough (except cotton of perishedstaple,:gfabbots, and cotton pickings), white in
color " e f 1-3/16 inches or more “but less than l~3/d inches'
Imports July 5, 1931, to December 11, 1951
~ _____
Imports
Established Quota (Global)
1,500,000

-

172,700

ro
CD

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 MANUFACTURES OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled try 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 ................
Cuba •••••«.... ••••••••
Germany..........
Italy ........... .

: Total imports
: Sept. 20, 1951 to
♦ Dec. 31, 1951

Established :
Imports
33-1/3# of : Sept. 20, 1951
Total Quota : to Dec. 31, 1951

*,32S,*57
239,690
227,1*20
69,627
68,21*0
*¡*,388
38,559
3*1,535
17,322
8,135
6,£14*
76,329
21,263

27,370
150,655
4«»
-

i,14ti,i£2
«f»
75,807
-•
22,7*7 ■
1*,796
12,853
-

5,*82,509

178,025

1,599,886 •

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

mm

25,**3
7,088

' 27,370
V'
"
- v
- ‘
.¿m
-

27,370

1/

IMMEDIATE RELEASE
January <9v 1952
The Bureau ©f Customs announced today preliminary figures showing the
imports for consumption of commodities within tariff-rate quota limitations
from the beginning of the quota periods to December 31, 1951, inclusive, as
follows:

Commodity

Period and Quantity

Unit
©f
Quantity

Imports as of
Dec. 31. 1951

Whole milk, fresh or
sour .................

Calendar year

3,000,000

Gallon

24,167

Cream .................

Calendar year

1 .500 000

Gallon

1,824

B u t t e r .............

Nov. 1, 1951Mar.31, 1952

50,000,000

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 •••••••••••••••. Sept. 15, 1951
Walnuts ...............

Calendar year

Petroleum and petroleum
products ........... .

Calendar year

29,239,803

Pound

Quota filled

150,000,000
249,600,000

Pound
Pound

26,651,166
11,624,180

5,000,000

Pound

X U L -L w O L

Venezuela
2,,613,137,096
Netherlands
822,654,271
Other countries 963,429,333
(shelled .......

Gallon
Gallon
Gallon

Oct. 1, 1951-

Almonds
Sept. 30, 1952

Quota filled
Quota filled
Quota filled
1,160,836

*4,500,000
(prepared .....

59,682

Pound
125,963

*bf the total, not more than $00,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste).

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Monday, January ll*, 1952

S-2R32

The Bureau of Customs announced today preliminary figures showing the im­
ports for consumption of commodities within tarrif-rate quota limitations from
the beginning of the quota periods to December 31, 1951, inclusive, as followsj

Commodity

Period and Quantity

Unit
of
(
Duantitv

Imports as of
Dec. 31. 1951

Whole milk, fresh or
sour ................

Calendar year

3,000,000

Gallon

2k,167

Cr e a m................

Calendar year

1,500,000

Gallon

l,82l*

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

Nov. 1, 1951Mar. 31 1952

5o,ooo,coo

Pouhd

59,682

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 seed ........
other ................

12 months from
Sept. 15, 1951

150,000,000
21*9,000,000

Pound
Pound

26,651,166
11^621*^180

Walnuts ................

Calendar year

5,000,000

Pound

Quota filled

Petroleum and petroleum
products .............

Calendar year
Gallon
Gallon
Gallon

Quota filled
Quota filled
Quota filled

Venezuela
2,613,137,096
Netherlands
822,65k,271
Other countries
963,1*29,333
(shelled •••.••••

Oct. 1, 1951 -

Almonds

Hfl*,5o o ,o o q
(prepared .......

Sept. 30, 1952

1,160,836
Pound
125,963

*0f the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste)»

to

S - ?

FOR IMMEDIATE RELEASE,

£5

-January
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28 , I 9I4I , as modified by the President’s proclamation of April 1 3 , 1 9 li2 ,
for the 12 months commencing May 29 , 1 9 5 1, as follows;

Wheat
Country
of
Origin

Established s
Imports
Quoua
:May 29, 1951, to
^December 31, 1951
(Bushels}
(Bushels}

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

795,000

55U,963

-

—

-

-

-

—
—

100

—

-

_

100
*100

—

-

—

-

—

100 ’
2,000
100
-

1,000

V

—

-'
-

10

-

—

100

—

-

—

-

-

-

—
—

/

—
—

—
—

Wheat flour, semolina.,
crushed or cracked
wheat, and similar
wheat products
Imports
Established t
Quota
t May 29, 195•
to December
•
(Pounds)
(Pounds)

3,815,000
2k,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
114,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

1,000
100
100

-

-

-

-

100

-

-

-

—

100
BDD73O0

-

55f,973

5,000 ,"ooo

3,815,000
11,200
62
—■
—
—

¡4.82
-

115

-

—

—

~

3,826,859

33
TREASURY DEPARTMENT
Washington

S-2933

FOR IMMEDIATE RELEASE,
Monday, January ±h3 1952

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 19lil, as modified by the President's proclamation of April 13, 19^2,
for the 12 months commencing May 29, 1951, as follows:

Country
of
Origin

Established
Quota
(Bushels)

Wheat flour, semolina,
crushed or cracked
Wheat
wheat, and similar
wheat products
:
Imports
Established: Imports
;May 29, 1951, to
Quota
;May 29, 1951,
:December 3 1 ,1 9%
•:.to December 31,1951
(Bushels)
(Pounds)
(Pounds)

Canada
795,ooo
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
..
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
• Cuba
1,000
France
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guatemala
Brazil
100
Union of Soviet
Socialist Republics
100
100
Belgium

551i,963
_
_

000,000

55E7973

—

yi
_
-

10
-

3,815,000
2^,000
13,000
13,000
8,000
75,000
1,000

5,000

5,ooo
1,000
1,000
1,000
iU,ooo
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
."’
\im

3,815,000
_

11,200
62
m
m

¡mi
U82
—

115
—

«

‘
m
mt
m

•m

«

u , 000,000

37ÏÏ25785?

I’'
I .
dr

"fc*

-51

MEDIATE ‘
RELEASE
January # y 195>2

Ths Bureau of Customs announced today preliminary figures showing^
the imoorts for consumption of commodities on ■which quotas were prescribed
by the" Philippine Trade Act of 19U6, from January 1, 19$1> to December 31,
19^1, inclusive, as follows Î

Products of the
Philippines

Established Quota
Quantity

•
*
:
î

Unit of
Quantity

Gross

Buttons .......

8£0,000

Cigars ........

200,000,000

Number

Coconut Oil.... .•

1 4 i8 ,0 0 0 ,0 0 0

Pound

Cordage ....... ••

6,000,000

t!

Rice .......

l,0l;0,000

ft

(refined .. #
Sugars
(unrefined .•
Tobacco........

,Î..5S;..
■- .
1,90k,000,000

î

Imports as of
Dec. 31, 1951

60£,26l
1,167,620
112,558,100Quota filled
1,000,000

It

*,377,801,558
6,£00,000

tl

61k, 662

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Monday, Januaty ll;, 1952

s-2931;

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 19l;6, from January 1, 1951, to
December 31* 1951* inclusive, as follows:

Products of the
Philippines

:
:

Buttons

Established Quota
Quantity

850,000

:
:

Unit of
Quantity

Gross

Cigars «••»«••<>•••

200,000,000

Number

Coconut Oil .....

1*1*8,000,000

Pound

Cordage

6,000,000

it

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

1,01*0,000

h

(refined «•. .
Sugars
(unrefined ••

1,901;,000,000

Tobacco .c........

6,500,000

:
:

Imports as of
Dec. 31* 1951

605,261
1*167*620
112,558,1(1*1
Quota filled

1,000,000
ti
1,377,801,558
ti

6ll;,662

He stated that it was essential in an operation
as large as that of the Bureau of Internal Revenue
that a direct line of )|authority and responsibility
should be definitely established.

3

Commissioner Dunlap stated that the valuable
experience of Collectors in this field of operations
has enabled them to be most helpful in suggesting
ways and means for the successful launching of the
President’s Plan.

0 O0

Ob

2
through better geographical boundary lines permitting
a more equal distribution of work loads, and the
application of certain mass operating techniques.
It was explained by the Commissioner that the
President's Plan represented the results of several
years of careful study by certain groups authorized
and qualified to examine the Bureau's organizational
structure.

These groups include the staff of the

House Appropriations Committee, the Advisory Group
of the Joint Committee on Internal Revenue Taxation,
the Hoover Commission, and outside management engineers.
The number of offices under the Plan would be
distributed in such a manner as to assure more efficient
service to taxpayers.

No wholesale

v e s t y p f fling

of

major field offices is contemplated/ but it is expected
that greater flexibility will be possible in the matter
of movement of supervisory officers as between posts of
duty.
Included in the staff work now under way towards
making the Plan effective promptly is the drafting of
delegation orders relating to assessments and lien
powers now exercised by the Collectors,

the drafting

of necessary amendments to regulations, the re-description
of Civil Service job sheets, and the re-writing of
operating manuals governing internal procedures.

Commissioner John B. Dunlap announced today
that he had concluded a conference with all Collectors
of Internal Revenue in furtherance of the launching
of the President’s Reorganization Plan of the Internal
Revenue Bureau.
Secretary Snyder spoke to the Collectors briefly
at the start of the meeting and emphasized that the
Commissioner had called them to Washington for the
purpose of requesting their assistance and comments
on the best methods for effectuating the Plan.

He

pointed out that the President’s Reorganization Plan was
necessitated by the tremendous growth of the Bureau
since its organization and by the importance of placing
responsibility for proper operations in a s t r a i g h t - l m e
functional organization to provide better control of
its offices and better service to taxpayers. C

k***™

The Commissioner indicated that the benefits to
be derived under the Plan by taxpayers and the Revenue
Service were so numerous and important that he did not
want to lose any time in getting under way.
Among the benefits enumerated by the Commissioner
were better over-all supervision, facilities for
serving taxpayers’ needs in respect to all classes
of tax matters under one roOf, operating .economies

TREASU RY DEPARTM ENT

IMMEDIATE RELEASE
Monday, January 1#, 1952

S-2935

Commissioner John B. Dunlap announced today that he had
concluded a conference with all Collectors of Internal Revenue 3n
furtherance of the launching of the President’s Reorganization
Plan of the Internal Revenue Bureau.
Secretary Snyder spoke to the Collectors briefly at the
start of the meeting and emphasized that the Commissioner had
called them to Washington for the purpose of requesting their
assistance and comments on the best methods for effectuating the
Plan. He pointed out that the President's Reorganization Plan
was necessitated by the tremendous growth of the Bureau since
Its organization and by the importance of placing responsibility
for proper operations in a straight-line functional organiza­
tion to provide better control of its offices and better service
to taxpayers. He stated that it was essential,in an operation
as large as that of the Bureau of Internal Revenue that a direct
line of authority and responsibility should be definitely
established.
The Commissioner indicated that the benefits to be derived
under the Plan by taxpayers and the Revenue Service were so
numerous and important that he did not want to lose any time in
getting under way.
Among the benefits enumerated by the Commissioner were
better over-all supervision, facilities for serving taxpayers’
needs in respect to all classes of tax matters under one roof,
operating economies through better geographical boundary lines
permitting a more equal distribution of work loads, and the
application of certain mass operating techniques.
It was explained by the Commissioner that the President's
Plan represented the results of several years of careful study
by certain groups authorized and qualified to examine the Bureaus
organizational structure. These groups include the staff of the
House Appropriations Committee, the Advisory Group of the Joint
Committee on Internal Revenue Taxation, the Hoover Commission,
and outside management engineers.
The number of offices under the Plan would be distributed
in such a manner as to assure more efficient service to taxpayers.
No wholesale reshuffling of major field offices is contemplated,

ffpff

41
-

2

-

but it is expected that greater flexibility will be possible in
the matter of movement of supervisory officers as between posts
of duty.
Included in the staff work now under way towards making the
Plan effective promptly is the drafting of delegation orders
relating to assessments and lien powers now exercised by the
Collectors, the drafting of necessary amendments to regulations,
the re-description of Civil Service job sheets, and the re­
writing of operating manuals governing internal procedures.
Commissioner Dunlap stated that the valuable experience of
Collectors in this field of operations has enabled them to be
most helpful in suggesting ways and means for the successful
launching of the President’s Plan.

0O0

Spill

January

h,

1952

TO MR. MRfffLTt
The following transactions were made in direct and guaranteed
securities of the Government for Treasury investment acid other
accounts during the month of December, 1951*
Purchases . « • • • • • • • • • • •

$31,050,000

Sales . * • » . . * * * * * • • • •

2.081,900

Set purchases . . . . . . . . . . .

$28,968,100

(Sga.) £• 0. Barnes
Chief, Division of Investments

Wise carver lA/52

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C

REIEASE MORNING NEWSPAPERS
T uesday, January 15, 1 9 5 2 .
- ..~ tf 1

S -2936

■ ■ '$ ffri ?!

During the month of December,

3.951,

market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in
net purchases of $28,968,100, Secretary
Snyder announced today.

V

0O0

release* ismam newspapers*
Tuesday* January 15» 1952»
$h9 Secretary cf tilt Treasury announced last evening that the tenders fur
$lf200*000*000* or thereabouts, of 91-day Treasury bills to be dated January 1? and to
jsature April 1?* 1952, which wore offered on January 10* were opened at the Federal
Reserve Banks on January Hi*
The details of this issue are as follows i
Total applied for - 12*176*725,000
Total accepted
- 1*200*201*000

Average price

. .> _ ,
(includes t2J7,9M**OO0 entered on a
non~cccapetitlve basis and accepted in
full at the average price shown below)
- 99*5 7 M Equivalent rate of discount appro*. 1*681*5 per a m ®

Range of accepted competitive bides
iiigh
¿Jr

(Excepting | tenders totaling $2,1*00,000)

* 99*583 Equivalent rate of discount approx. 1.6505 per annus
- 99.572
*
*
*
«
*
1*6935 8
*

(One percent of fist 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* boude
Minneapolis
Kansas City
Dallas
San Francisco

i

t

TOTAL

>9,600,000
l,t,&,U*7,000
3b,O86,Q00
lUO,85U,ooo
32.013.000
30,1*18,000
205,396,000
1*2,732,000
11.172.000
61»,321,000
69,393,000
52,51*3,000

*2,176,725,000

29,1*10,000
658.325.000
17,006,000
338,371*,000
29,007,000
23,932,000
128.592.000
21*,962,000
10,97U,000
1*5,671,000
1*7,758,000
1*5,610,000

*1,200,201,000

T R E A S U R Y

45

D E P A R T M E N T

Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
Tuesday, January 15, 1952*

S-2937

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated January 17 and to mature April 17, 1952, which were
offered on January 10, were opened at the Federal Reserve Banks on
January 14.
The details of this issue are as follows:
Total applied for - $2,176,725,000
Total accepted
- 1,200,201,000 (includes $217,944,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99*574/ Equivalent rate of discount approx.
1.684# per annum
Range of accepted competitive bids:

99*583

High

-

Low

- 99*572

(Excepting 3 tenders
totaling $2,400,000)

Equivalent rate
1 .650$
Equivalent rate
1 .693$

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

(One percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

$

TOTAL

39,600,000

Total
Accepted

140,854,000
32,0i3,000
30,418,000
205 ,396,000
42 ,782,000
11,172,000
64,321,000
69 ,393,000
52 ,543,000

29,410,000
658,325,000
17,086,000
138,874,000
29 ,007,000
23,932,000
128 ,592,000
24,962,000
10,974,000
45,671,000
47,758,000
45,610,000

$2 ,176 ,725,000

d»T
9
JL,200,201,000

1 ,454 ,1^ 7,000
34 ,086,000

oOo

$

J ~

EtKLEASS, S W P HHtSPAEEBS,
T u aad ar. January 15« 19 52 .

9

^

37

ftm Secretary of tilt Treasury announced last evening that the tenders fir
$1,200,000,000, or thereabouts, of 91~day Treasury bills to be dated Jaauary 1? and to
asature April 17, 1952, which were offered on January ID, were opened at the Federal
Reserve Basks on January Hi*
The details of this issue are as folios» i
Total applied for - $2,176» T25tOOO
Total accepted
- 1,200,201,000

(Include» $21?,?W*,000 entered on a

^
Average price

iia H K iv rtIttn l* » i* n i aae^twi la

full at the average price shosn below)
* 99*57 M Equivalent rate of discount appro** 1*601*5 per annum

Range of accepted cosapetitlve bid»*

(Excepting 3 tenders totaling $2,1*00,000)

* 99*583 Equivalent rate of discount appreau 1.6505 per annua
- 99*572
*
#
•
•
«
1*6935 *
*

Hi#
lesr

(One pereeufc of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
M ow fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

#
3 9 ,6 0 0 ,0 0 0
1 ,4 5 4 ,1 4 7 ,0 0 0
34 ,0 8 6 ,0 0 0
140,654,000
32,013,000
3 0 ,4 1 8 ,0 0 0
2 0 5 ,39 6 ,0 0 0
4 2 ,78 2 ,0 0 0
1 1 ,1 7 2 ,0 0 0
6 4 ,3 2 1 ,0 0 0
6 9 ,3 9 3 ,0 0 0
5 2 ,5 4 3 .0 0 0

|

* 2 ,1 7 6 ,7 2 5 ,0 0 0

$1*200» 201» 000

TOTAL

2 9 ,4 10 ,0 0 0
6 5 8 ,3 2 5 ,0 0 0
1 7,0 8 6 ,0 0 0
1 3 8 ,8 74 ,0 0 0
2 9 ,0 0 7,0 0 0
23*932,000
128,592*000
21**962,000
10,971**000
4 5 ,6 7 1 ,0 0 0
4 7 ,7 5 8 ,0 0 0
4 5 ,6 10 ,0 0 0

T R E A S U R Y

45

D E P A R T M E N T

Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
Tuesday, January 15* 1952,

S-2937

The Secretary of the Treasury announced last evening that the
tenders for $ 1,200,000,000, or thereabouts, of 91-hay Treasury bills
to be dated January 17 and to mature April 17, 1952, which were
offered on January 10, were opened at the Federal Reserve Banks on
January 1 4 .
The details of this issue are as follows:
Total anplied for - $2,176,725*000
Total accepted
- 1,200,201,000 (includes $217,944,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99• 57k/ Equivalent rate of discount approx.
1.684$ per annum
Range of accepted competitive bids:

High

- 99.563

Low

- 99.572

(Excepting 3 tenders
totaling $2,400,000)

Equivalent rate
1 .650$
Equivalent rate
1 .693$

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

(One percent of the amount bid for at the low price was accepted)
Total
Accepted

Total
Applied for

Federal Reserve
District

$
39*600,000
'1,454,147,000
34.086.000
140.854.000

Boston
New York
PhiladeIphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

29,410,000

658 ,325*000

30.418.000
205.396.000
42.782.000
11.172.000
64.321.000
69*393,000
____ 52,543,000

17*086,000
138.874.000
29,007*000
23*932,000
128.592.000
24.962.000
10.974.000
45.671.000
47.758.000
45.610.000

$2 ,1 7 6 ,7 2 5 , 0 0 0

$1,200,201,000

32,013*000

TOTAL

$

0 O0

T R E A S U R Y

D EP A R T M EN T

Information Service

IMMEDIATE RELEASE,
Tuesday, January 15, 1952*

WASHINGTON, D .C .

S -2938

Secretary Snyder today issued the following statement in
answer to inquiries concerning the Reorganization Plan for the
Bureau of Internal Revenue transmitted by the President to the
Congress yesterday:
’’Newspaper reports and comments evidence some basic
misconception of the effect of the President’s Reorganization
Plan No. 1 for the Bureau of Internal Revenue,
This m i s ­
conception is that the President’s proposal would have the
effect of turning over the operating functions now performed
in the field by Collectors of Internal Revenue to not more
than 25 district offices, and hence deprive some localities
of facilities now available to them.
’’The President and X are both anxious that it be clear
that existing functions of Collectors of Internal Revenue,
and additional functions not now available at the local
l e v e l of each~~state will be performed at local offices
with at least one such fully authorized local oxfice in
each slsate, and in more populous state's more than o n e ,
"The misconception as to maintenance of local collection
offices apparently arose from the hasty conclusion that the
newly proposed offices of District Commissioners, to number
not more than 25 * were to supplant local collection offices.
The fact is that the District Commissioners will be area
officers, to effect more complete decentralization to the
field of Bureau functions now performed or supervised in
Washington,
As part of this area decentralization, there
will be Deputy District Commissioners, with at least one
for each state, and in more populous states more than one,
who will take over the functions now performed by Collectors
in each state, and in addition bring to the taxpayer at the
local level many additional services and functions that are
not now available to him in his state.

47
2
"I can understand that the misconception on this
important aspect of the plan-may have arisen from the
technical form in which the Reorganization Plan must he
presented to the Congress.
It was made clear in the state­
ment of the President, issued on January 2, and again in
his message to the Congress presented yesterday, that some
of the basic structural changes contemplated in the
reorganization must be effectuated by a plan of reorganization
presented to the Congress, while other changes can be
effectuated by use of reorganization powers of the Secretary
of the Treasury under Reorganization Plan No. 26 of 1950.
From the first announcement of the plan by the President
and in the information furnished to the Congress, it has
been made clear that local offices will be retained not
only to continue their existing functions, but to bring
increased functions and responsibilities to the local area.
"Thus in the Reorganization Message presented by the
President to the Congress yesterday, it was said:
'*** all essential collection enforcement and
appellate functions can be provided for in
each local area and under one roof so far as
is practicable.
It is not proposed to dis­
continue any essential facilities which now
exist in any local a r e a s / Rather the facilities
will be extended and the service to taxpayers
improved.
These new arrangements should make
it possible for the individual taxpayer to
conduct his business with the Bureau much more
conveniently and expeditiously.’
"Moreover in the statement of the President issued
January 2, 1952, it was said:
’Taxpayers hereafter can
look to the District Commissioner or his local representative
as the official in complete charge of "all Federal tax matters
in the district.’
"The local representative would be the Deputy District
Commissioner, with at least one such office in each state,
performing all the functions now performed by the Collector
and bringing additional functions to the local area.

"Reference to the" explanatory material made available
in connection with the announcement of the Plan will
further evidence this basic part of the proposed
reorganization.' In the statement entitled ’General Nature
of the Reorganization Pl a n ’, it was said: ^’The District
Commissioners will carry out their responsibilities^
through direct line officer control of Deputy District
Commissioners, with at least one such officer for each
state, and in the more populous states more than o n e . ’
"The plan was conceived with the purpose of bringing
greater convenience and greater facilities to the taxpayer
at the local level; to provide at the local level functions
to which the taxpayer must now have distant resort, such
as to offices of Revenub Agents in Charge, Special Agents
in Charge, Appellate Officers, etc.
These offices and
their functions are now scattered in varying districts
over the country, in fewer locations than contemplated
through the new set-up of District Commissioners and Deputy
District Commissioners.
"I feel that this essential purpose of increased tax­
payer convenience, plus the other advantages ox the plan
in an improved career service, more effective inspection
service and greater decentralization of functions from
Washington to the field with clear direct channels of,
responsibility, are sufficiently meritorious that it would
be unfprtunate if they were not made clearly understood
at the outset in the consideration of the plan.

- 3 -

mm
any State, or any of the possessions of the United States, or by any local tax­
ing authority*

For purposes of taxation the amount of discount at which

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

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

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

Accordingly, the owner of

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

-

2

-

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

Subject to these reservations, non-competitive tenders for "5200,000

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

January 2lu 1952 , in cash or other immediately avail
3*
able funds or in a like face amount of Treasury bills maturing January 2iu 1952
XEE
Cash and exchange tenders will receive equal treatment. Cash adjustments will I
j

Federal Reserve Bank on

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 anj
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

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

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

m r a m
max
TREASURY DEPARTMENT
Washington

79 3T

FOR RELEASE, MORNING NEWSPAPERS,
Thursday» January 17« 1952
»
g0t

The Secretary of the Treasury, by this public notice, invites tenders for
ft t onn nnn.nnn . or thereabouts, of

“ ’

91 -day Treasury bills, for cash and

~~W F ~

in the « w *

> 1r200f782«000*

January 2 k ? 1952
A 0 106 issued on
fit*
a discount basis under competitive and non-competitive bidding as hereinafter

in exchange for Treasury bills maturing

provided.

The bills of this series m i l be dated

m i l mature ^ April
interest.

19SZ.

January 2k, 19g2

, and

, when the face amount vri.ll 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 vrill be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m., Eastern Standard time,

Monday, January 21. 1952.
3TO
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

T R E A S U R Y

D EP A R T M EN T

Information Service
RELEASE MORN I N G NEWSPAPERS,
Thursday
January 17, 195 2

WASHINGTON, D .C .

3-2939

Th© o6cretary 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 January 24
1952, im n _the
the amount of
$1 ,
*200,
.782 ,
.000,. to "hP
n Qcsnorl on a
o discount
^ -! « A » .« «
of''$
be issued

^ o ^ d-daerThpm h?iio1V?
non~competitIve bidding as hereinafter
^
‘* P 16 kills of this series will be dated January 24, 1952
and will mature April 24, 1952 , when the face amount will be payable
without interest.
They will be issued in bearer form only, and in
denominations of $ 1 ,000, $ 5 ,000 , >10 ,000, $ 100 ,000, $ 500 ,000, and
$ 1 ,000,000 (maturity value).
^ T??dei? m :1:L ? e received at Federal Reserve Banks and Branches
^ i o s m g h o u r , tvo ° rd o c k p.m., Eastern Standard time,
Monday, January 21 , 1952.
Tenders will not be received at the
m u l t i n l e ¥^ sl?inf^o n • Eac?h tender must be for an even
multiple of $ 1 ,000, and in the case pf 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
specia! envelopes which will be supplied by Federal Reserve BanSs
or Branches on application thereforv
jpr^

„ . ,°tber! than bankin8 institutions will not be permitted to
submit tenders except for their own account.
Tenders will be
received without deposit from incorporated banks and trust
re®P°nsl^ Q
recognized dealers in investment
2
nf Tenders from others must be accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless
tenders are accompanied by an express guaranty of payment bv an
incorporated bank or trust company.
payment Dy an
« J J ? DIOdiai 0 l y a ft®r the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
a ^ w n ? ° ^ nt Y 111 be m d ( ? b7
Secretary of the Treasury of the
wn i
Price range of accepted b i d s . Those submitting tenders
1 be advised of the acceptance or rejection thereof
The
rejectaa L ° o r tallTienrtUr7 °7pr e ? sdy reserves the r i g h t ’to accept or
y
aP be? de,r s ’ ln whole or ln Part, and his action in
y ^U °h y?®Pect shall ho final.
Subject to these reservations
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at
the average price

2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on January 24, 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing January 2 4 / 1 9 5 2 .
Cash:and exchange
tenders will receive equal treatment.
Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but- shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (l) of'‘the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued
hereunder need include in his income tax return only the
difference between the price, paid for such bills, whether on
original issue or on 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 of
lo s s .
Treasury Department Circular No. 4;l8, 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

trie a b o l i t i o n o f the s t a t u t o r y
o f f i c e s of C o l l e c t o r s o f I n t e r n a l
:

"

■

V:

'

I

W

^

i

Revenue; and Second. the u p - g r a d in g
o f the top admin i s t r a t i ve p o s i t i o n s .
However, above and beyond t h i s ,
it

i s e s s e n t i a l f o r the l e g i s l a t i v e

branch of the government to be
informed of t h i s p la n ,
reasons fo r

to hear the

i t s need, f o r w ithout

the s u p p o rt o f the C ongress t h i s
f a r - r e a c h i n g u n d e r t a k in g cannot
be expected to produce the h o p e d - f o r
resu Its.

-

62

s p e c i f i c a l l y estab Iish ed fby statute
n e a r l y a c e n t u r y ago. j p f h i s was
obvi ous Iy>?i ntenaed Jby Congress tto
be t heliframework farouna which the
coI l e c t i ontsystem was¡to be b u i l t # ? »
i wouIdlnot; change t h a t b a s i c I f e a t u r e

of the B u r e a u ' s s t r u c t u r e , '
s a n c t i o n e d f o r so long by the
C o n g re s s ,

without C ongress iona l ^ | l | ^ I

know I edge.
There a r e two f e a t u r e s o f the
plan that'' d e f i n i t e i y r e q u i r e the
p a r t i c i p a t i o n of C o n g re s s:

firs t,

‘' S r i

g e n e ra l r e c o g n i t i o n

t h e r e has
e sse n tia l

points

There may remain In
m

Í t has

110

found n e c e s s a r y

t h i s p lan

to the a t t e n t i o n
uugh t h e lf t e o r g a n i zat i on Act
1949.

The very n a t u r e of the p

d i c t a t e s th at i t

ftr o u a n

I t fundamentaI I y and s w e e p i n g ly
changes the B u r e a u ' s s t r u c t u r e .
re
on 64 c o l l e c t o r s '

an i zat i on r e s t s
o ffic e s,

I want to p a r t i c u l a r l y
1edge theì c o n t i nued a s s i stane
h ic
Vii

we h a ve |r 'e c e i ve¡di fr o m |t h e
F 5nance Commit te e ,

the House

nd Means Comm it ,tee, and the
ubcommititee o f the iHouse Ways
and Means Committee*

T h e i r a id has

in c lu d e d many v a l u a b l e s u g g e s t i o n s
and recommendations.
t h e s e groups very ns u r aa I» iI /v
H
y I
If
yj

t a I w aysragree c o m p le te ly

with one an o th e r in a l l
recommendations

of t h e ir

ut in the main.

59 g
ureau made
study |o f thel Bur
Il

House Committee on
S t a f f o f the Hou

 p p r o p r i a t î o n s t#■m

■S6C Q H Q

V*/3i

under the d i r e c t i o n of t h e ! J o i n t
Committee on
T a x a t io n .

V

The t h i r d was made by

the Hoover Commi s s i c
f o u r t h by a ma

geme

iSre

e n g i neer

f i r m ( C r e s a p , McCormic« and Pa
employed by
a u t h o r i t y of
BU.
i®

Bureau under
j r f fp r lo t i oa.

A lp i an

trvi s l i

had

to be developed with
care

nature

out
¡e s of met)

in t e n s i ve
1 1ons

gun in the Bureau of
in te rn a l

Revenue immedia

If

■
W

JÜ

I n l p e r f e c t mg the plan we were
i

t

I so by f o u r major s t u d i e s

• t *

miti a
C o n g re s s.

The f i r s t o f these was

now.

As

a

m atter

o fjfa ct,

not

o n ly w l 1 1 i t h e r e g b e j t h e ! s a m e l
feci I I t

le sp a va

u n d e r ' t h e P la n

Ila b le toltaxpayers
as

t h e r e a re a t

the p r e s e n t time, but t h e se
fac i I i t

le s lw l

11 bel expanded to

I n c l u d e s e r v i c e s which a r e not
now a v a i l a b l e

In a l l

lo c a litie s

w he re!th e Bureau now has
Col I e c t o r s #3 o f f i c e s .

t h i s p o in t,, however,

that t h i s

d o e s !n o t ! mean t h s t v s e r v I c e I to j j B j j
taxpayers « i l l

fee c u r t a i l e d

a re ifc in c e |th e re |w iiilb e ju p

in any
to TO

s u b o f f i c e s and the p r e s e n t networx
|||f|

'pi'

|IT&|

-q|ft||

PH

&

N

of zo neto f f I c e s 1andip os t s I of t d.uty |
throughout ¡the!country ¡ » h i e h have
been establ ished |to meet ¡th e B M P
pub I ic ’ s jneeds ju s t a slth e re la re H

55 I
in the enforcement of the
a

i c o h o , I and tobacco taxes
The

zat i on

have s a i d ,

combine these v a r i o u s

types of o f f i c e s

into not more than

25 r e g i o n a l revenue d i s t r i c t s ,

each

o f which would be headed by a D i s t r i c t
Commissioner a c c o u n t a b le d i r e c t l y
to the o f f i c e o f the Commissioner
in Washington,

I would l i n e to

emphasize as s t r o n g l y as I can at

I

«ms

I s s î 0 n e r 1 1H r o u ffîm ? di f

%Bp ÛTê t ©1111 uè 1d í v P i 1

0L

R j
ggkêtfyjni

:É m \

i S" o f f 1c es 1 JBf t h e ;fí ’1c@:|. fl

ere.1 64 m

engaged! fin 1 o th c o l i PB#
1 w %?1 1n

^ %
# d*®

a ¡i ci;;" { ne a ud 11 ¡fíe th e $ma l 1 e r l i r e tùri*fl c .
T h e r e j a r >Æ î

'fir i s

X Q

• f ;!é;î'S":;.?'î i ©t r i e t 0 ;

ih#jBsé:I

the >§l a r g e r

1 I f iiil

m1 1 ri ^ m
|f

ífjfr

I Jnff

retürn sfl

a r t : (4 f l t l d | d f s t r î ë ;t « t $ h îc h de
® h |y I 4 Ì %h f|th s «t a x V r t u d la so#WÉs
#*& %¡r
t Cl

rs ¿JS 4SS

œÊ

'liir-avISP t»# «9* #

tm,¡m$ Âi

ï #&

tí I sèt j|ji a t;Ç, ; s 11 t h e l B ureau * s | Appe l í a t e
S |s f f ; a n d ith e re a r e f l5

f le id |d îs tric ts

C a r e e r but who n a t u re 11y

.want

to I ook

fo rw ard t o B o p b o r t u n l t l e s I f n r l i f e f j H
advancement

t o p l p o s f t Jons f n j t h a t l

to

s e r v i c e f o r |w h f c h they nay be
qua f i f led, l

l

f

e

f

l

B M K M l

a lig n 11 would I I f f ,; now | § t e l l you
whyitbe plan provides fo ri the
appointment of I f not |to f exceed 125.
O istr

let

Commiss l o n e r s . i{

t h e r e s son i s si mp I s ,

Here

a f a in-

A t.the present

time t h e r e a re n e a r l y 200 h e a d q u a r t e r s
f i e l d o f f i c e s r e p o r t i n g to ( t h e

k s m B B m -

Commtss i oo-sr - - w hich

I s on s h i r h

I i c y » f f i 8 K Insr ' l l e v i i ! l i flffittjx

a d m in istra tio n
p r |n c I p I as

of

would f u r t h e r t ’l
lh© m e r i t ' s y s t e m

In

¡§r* ;■ ©nGvi'of o ur Government which
pro*eg) i r e n t I yl-shou I dl be f r e e f of|t any
h in t o r ls u ig e s t io n of f a v o r it is m lo r
i n f 1uence
/
".
I j ^ P p I | | | h o u 1d t h e r e b y p|l|n|p| fel Jb |IgME |j;■
#

*

m 4
8 i h &1S
cm?-■
1#Cf "i§i%
&4v*1II w
Ilf1
-

v 1c n

men gftif■it omen fwholjare

n*&

■:SiSSf

I i£
I

¿to,
m
ab 11
%
!•*.■ti p
1i||

i n t e r e s t # ilia : i ft

p u r s u i n e G o v e rn m e n ttse ■rv l e e i p s a 1

151
S e c o n d I y #| C o I l e c t o r s rib *n©t

h o id lth e jp o tIcy -w a K in g ty p e io f o f f i c e
which shay i d j p r o p e r l y ¡ b e ! s u b j e c t to f l
P r e s i d e n t ta I 'a p p o »fitment,

T h e ir

d u t i e s * a r e j p r I mar I ty ¡admin I s t r a t i v e B
and t e c h n i c a l

a n d |sre c l e a r l y

of s

type w h l c h i s h o u l d be w i t h i n the
fra m e w o r* o f o ur C i v i l

S e rv ice

System .
L a s t ! v . l e x t e n s ion of C i v I }
Serv iC @ |t© |th e |p o si tto n io f|'6 o t le c t o r
t o d a I f o t h e r o f f fe e s
S e rv ic e ,

in the 0 avenue

e xc e p tin g o n ly th a t of

ss

m

50

a

c a n n o t bs^removed by., the C o m m is s io n e r

p f . ' I n t e r n a l ■Revenue or* inysel f J t h e y
a r e ! n o t ¡ f u i l y .re.spons lv e |t o |t à e ^ ^ ^ B
control

o f th e i r s u p e r i o r s

In th e

|re a su ry |D e p a rt® e n t.H F u rth e rm o re i^ S
t h e r e ! a r t : r e s i dence r e q u i r e m e n t s fh jB -.t

w h l c h l m a K e j |t d i f f Ì c u l t Ì f © r | u s | t o
r o t a t e o r move them from one
■coi facti on rii s t r i et .to a n o t h e r . J|
Added to th e se Impediments i s the
u n c e r t a i n t y o f o f f i c e - t e n u r e which
a t t a c h e s to the t r .p o s i t ion.

49 With our phenomenal economic
growth,'- how ever,I our tax system h a s i jl
undergone -a steady ex p an sio n w ith a
consequent need f o r l c o n t i n u a
r e a p p r a ls a llo f p ra ctice s!a n d
p r o c e d u r e s which have now become
e i t h e r o b s o l e t e or cumbersome f o r the
mountainous and cornpI ex* job t h a t
c o n f r o n t s the He venue S e r v i c e today.
The p r e s e n t system of a p p o i n t i n g
C o l l e c t o r s o f i n t e r n a l Revenue i s
one o f t h e s e | p r a c t i c e s .

S in c e

C o l l e c t o r s a re not a p p o in t e d and

48 Coi l e c t o r s

In Ithose days were

r e i s t i v e I y i } ght.

The

pr

I ne I pa 1

r e q u ire m e n t was one o f community
¡le a d e r s h i p t o fe n c o u r a g e lo c a l
a ccep tan ce’ of Federal taxes.

The

t a x p a y e r base was narrowband the
C o lle cto rs,

In a r e a l s e n s e , acted

m o r e j o r i l e s s as mere r e c e i v e r s of
tax moni e s l a n d as c o n d u i t s o f r e t u r n s ,
c l a i m s , and o th e r documents which
w ere¡req u ired

to

be

forw arded

to

Washington f o r p r o c e s s i n g and d e c i s i o n .
In

its

day,

t h i s system w o r k e d lw e ll .

F irst,

m

t h e ! s y s t e m as we now Know

i t l u n d e r which C o l l e c t o r s o f I n t e r n a l
R e v e n u e ia r e a p p o in te d by the E x e c u t i v e
B r 3.neh outs ic e t h e i C I v i I | S e r v i c e i s
a n | a r c h a i c | o n © Q f |a Im o s t J a C e n t u r y * s i i
s t a n d l n g . H l t "wa s i In t ro d u c e d l a i « ¡ t i m e
b e f o r e the p e r ! t systemgwasfdev i s e d r f a r d
then i t ¡ » a s jp ® r p @ t u a t e d | t h r o u g h | d e c a d e s .]
in o u r h i s t o r y when our I n t e r n a l

.jflB p .j

revenue system wes. r e l a t i v e l y f r e e
o f | h ig h l y i t e c h n l e a l i on a' f e r a l prob I eass.
The o f f ic la i f r e s p o n s i b i I i t i t s o f

and . t h e y - a r e

e ll

sound*

l - >

.

45';V~

th «'co n stan t|an d |ever| Increasing im Km
e ffo rts on |the|psrtfofIthefD epartm ent
to provideJtHe best Revenue Service
wHIchji i t i is^humanly possi b! e ¡¡to thSoM
prov i delucidar I the e x istin g s tru c tu re .
•m m Nowpwsjane a tith e ¡p o in t ¡where we
need the [has Ic author ì ty l n ihe
P re sid e n t’ s reorgan 1z s t ion plan as j p
thelcu imi nation! of lour J e ff o r t s | In ■£«
th $s| d i r e c t i
| ^ d : ' ì would I I se no*j|to|tel i ;i j i
you in sim p le,In o n -tech n ics I language
why welarefurg ing adoption |o f |t h ls |

o f each c a s e » e r e c l e a r l y
(5)

A ll

known.

C o l l e c t o r s a p p o in t e d

in the p a s t y e a r have been p r o h i b i t e d
from h a v i n g any o u t s i d e a c t i v i t i e s
w h ic h might c o n f l i c t w i t h th e f u l l
and p r o p e r d i s c h a r g e o f
If)

th e ir d u tie s.

if# have c o o p e r a t e d f u l l y

w i t h t h e K e f a u v e r and K i n g Committees
A il

o f t h e above s t e p s r e f l e c t

Obviously, the Federal revenue
system must have the public’s
confidence and support.

This means

the system’s integrity must be
unquestioned.

Commiss »oner Dunlap

and I, with full authority from the

President, have acted promptly to
eliminate from the Bureau o f Intern

o f the t a x p a y e r ' s h e a l t h to
Ut P s .

Inst

ae?tern m a t i on th at

© i s one w a r r a n t in g c r i m i n a l
p r o s e c u t io n *
t*m

The h e a l t h of
fttfl

il P 0 » 0 0 tT* I tü'l*Ü

taken in to a c c o u n t by the p r o s e c u t i n
a u t h o r i t y or by j u d i c i a l
e nave a
y y r i in &

o

process.

announced

of the former v o l u n t a r y

d isclo su re p o licy .

We abandoned t h i s

?¡- UW dm

8T

SlBlIiagt?
■
I
^Oi*?ffWp -

a Ireedy Instituted a new procedure
'xllsii-

BI«Pt
feafeaBHmE-

for the reference of criminal tax

km

x
directly from the field to
the Department of Justice for
prosecution.

This change Is the result

of the study of nearly a thousand
cases of tax fraud.

The new procedure

will mean a saving on the average
of four months or more In

case

As,,i part of our reexamination
of these procedures, and to elImlnate
d e l a y i n g factors, we have recently

announced changes in policy.

management improvements and the
co m b ination o f f u n c t i o n s which w i l l
p e rm it g r e a t e r e f f i c i e n c y w i t h i n the
scope o f the p r e s e n t s t r u c t u r e .

T h is

i s being accompl i shed, f o r example,
by com bining the s e p a r a t e Wage and
E
x c i s e Tax d i v i s i _oIIn; s|p of. the||S Bureau,
y\ | |
so t h a t one d i v i s i o n through one
o p e r a t i n g head can more e f f e c t i v e l y
do the job f o r m e r ly done by s e p a r a t e
u n its.
We are t a k i n g f u r t h e r s t e p s to
speed up a l l

our o p e r a t i o n s .

We

f f *

n o t bel p h y s i c s I I y

OflMH Q f

l ^iss

. >»:ci j o r

a ami n j s

r

3

t,1

ü iv i s i o n s a Io
Ae have s t r e a m I m ed the f i e
\Èpm

g a n i z a t i o n by c o m b in in g

T

11a

H I

fwwkWf

m e m

c U Hi U

a x

D iv isio n .

1û
lU ÜII
skTh.

o t t ices

We have

an a u o i t c o n t r o I

s I med i t i

© ctive s e l e c t i o n

of r e t u r n s l f o r

i n v e s t m a t ion

have improved and s i m p l i f i e d
fo rm s ana

tax

in stru c tio n s.
i mpro

8 £3H

< ypt
•c
%S* •a* 1
» S§(

WWTliiWSSWa»)*«

s t r o n g bas

’ Ogram

e

proposed

a

ii*ocierrtfzed r e c o r d Keeping
r o i c r o f N m i n g | a n d | o t h e r | m e ® n S i H L«e have
s i mpI I f ! e d ¡tax co l Iec 11 o n ¡ p r o c e d u r e s B
by I n t r o d u c I n g j a d e p o s i t a r y r e c e i p t
s y s t e w . R t e J h a v e |s p @ e d e d |u p our
r e f u n d l r r g |o D e r a t f ©ns,

b
.

There .hav© been Improvements
in the perform ance o f v a r i o u s o t h e r
major tasKS.

e© have r e o r g a n i z e d

•
]

co n fro n te d the B u re a u _J.n a space
o f ilit t ie
Let

more than a | y e a r , 4 ™ p
me

t e ll

you some I o f the

th i n g slw el a I ready have done and
dr
to meet t h&sb ' prob 1em
Vi Vinng
|0n e |fj|*
U Ife
Wv&pft i i i t o Q k i was to
c* CQ*f|f0 i i t ee of highly qua 1i f f e
"Lo d l r e c t init n q£ emen t i i mpro veme

wW
^ss

stu d i ©| w| t h in the He venu eJSer
mI f fifiil
An out P■10
e man a fc

FI C firm was

c a l led ¡§J n to make an i ndepende
su rv e y Hof the Revenue Bureau * s
s t r u c t u r e and o r g a n iz a t io n .

30
example, r e q u i r e s the s e r v i c e s o f
2 ,3 0 0 of our b e st t r a i n e d enforcement
o ffic e rs,

-^ v

The heavy volume o f r e c e n t tax
le g isla tio n ,

designed to f i n a n c e

defen se e x p e n d i t u r e s , c l o s e
and deal w ith tax

lo o p h o le s

in e q u itie s,

has

s e v e r e l y s t r a i n e d the r e s o u r c e s of
the Revenue S e r v i c e .

Four major

enactments - - the S o c i a l S e c u r i t y
Act of

1950, the Revenue Act o f 1950,

the Excess P r o f i t s

Tax Act of

and the Revenue Act of

1951 —

1950,

'

- 29 -

t

in the other main o p e r a t i o n a l
r e s p o n s i b i I i t i es of the revenue
s e r v i c e ; * « tax enforcem ent,
i n t e r p r e t a t i o n o f tax s t a t u t e s
and s e t t le m e n t of d is p u t e d c a s e s ,
‘

III Ifpi|S is 10-iS^SStt

81i IS

On the enforcement f r o n t ,

iSI

«|

the

i n v e s t i g a t i o n and p r o s e c u t i o n o f
fr a u d c a s e s ,

b e g in n in g with the

d r i v e on b Ia c k m a rk e t e rs in 1945,
and exte nd in g through the c u r r e n t
d r i v e on r a c k e t e e r s ,

has absorbed

more and more time and manpower.
The r a c k e t e e r d r i v e a lo n e , f o r

w i t h h o l d i n g was i n t r o d u c e d ,
many new p r o b l e m s , not the

c re a tin g
le a st of

which was t h a t of mass r e f u n d i n g
operations#

Many new t a x e s have

been imposed,
e x cise s,

i n c l u d i n g numerous

the e x c e s s p r o f i t s tax ,

and the r e c e n t l y enacted wagering
ta x .
the in c r e a s e d workload
has by no means been l i m i t e d to
th e p r o c e s s i n g o f r e t u r n s and t a x
c o lle c tio n

and r e f u n d p r o c e d u r e s .

There has been as s t r i k i n g

a gro w th

revenue service in meetingPllf the
exigencies of war and defense
financing.

Between 1940 and 1950

the volume of tax collections
increased tenfold, and the number
of taxpayers increased from 5-1 ¡2 ,
million to over 55 million.

Kith

the broadening of the base of the
personal

income tax, wage and sa Ia

Let me say at t h i s j
d
fo i n t that
the Collectors of Intejf n a 1 Rev enue,
CO

if)

a body, have given g r e s t as s istance

i n solving our problems end in max ing

our accomplishments

dos s tb 1e .

have shared o u t s t a n d i n g l y

They

in the

assumotion of the tremendously
i n c r e a s e d worn loads.
The ye ars e l a p s e d s i n c e
w itn es se d an unprecedented

1940

increase

in the r e s p o n s i b i l i t i e s of the

In o r d e r to lay the background
of the p l a n n i n g w h i c h l c u i m i n a t e d

in

the b a s i c r e o r g a n i z a t I on proposal
now b e f o r e you,

l e t me t e l l

you

some of the more Important problems
t h a t we fa ce d at the b eg in n in g of my
tenu re as S e c r e t a r y of the T r e a s u r y ,
and those t h a t developed as the
work load of the Bureau i n c r e a s e d
so r a p i d l y
It

in volume and complex i ty.

i s a g a i n s t t h i s background t h a t

we must p r o j e c t the accomplishments
of r e c e n t y e a r s ,

and the s i t u a t i o n

«•

C JJ *

emp loyeesjfhave succumbed in the p a s t .
A Revenue ¡ S e r v i ce ¡ o f top
efficien cy,

of un q u es ti on ed i n t e g r i t y ,

|and|of|ffla> iimum economy of o p e r a t i o n

is

something to which the American people
are ent î t 1ed.

The maintenance of such

a s e r v i c e ! i s the g r e a t e s t a s s u r a n c e for
t h e | c o n t in uéd s u c c e s s of our v o l u n t a r y
system o f tax p a ye r co mpliance,
f o u n d at i o n of our f i s c a l
ecohomjclheaIth.

the very

s t r e n g t h and

A new, a d e q u a t e , ’^Kr'J

^P-pO-date a r c h i t e c t u r e / h a s been'
planned w i t h ! t h e s e o b j e c t i v e s
uppermost in mind.

:a | : |

1

g r e a t e r l e o n v t n l e n c e to the t a x p a y e r .
MW ^ ^ s p W s i t d ^ b e f o r e ,

d e t a i l s and

g b l u e p r j n t l n g of t h e s e b a s i c l f e s t u r e s
of the oI s i # i111b e i supp11ed ¡ b y ¡ t h e
Commj s s I o-ft©r • nfio h I s stfi/ff||&s s i s t s fits
^ p h e v e l s t a t e d | the e s s e n t i a I s , « E v e r y
Amer i c a n l c 11 IzenShas a d i r e c t end ||R |
v i ta f ; i n t e r e s t , f f! t h i s o l e n ,

|1 |

Bureau o f i I n t e r n a I R evenueH earr les
e | g r e a t | r e s p o n s i b i I ity for the .
s u c c e s s f u Ig f u n c t Ion I ng of lo u r
iovernm ent .1

groups as Revenue Agents

In:Charge*

¡ I n t e l l|ig@nce|oiv I s ;) o n , | A l c o h o J J T u x H H
DIv i s Ion A e t c * * ¡n o w underaseoarate'
o f f i c e s and: in v a r y in g f i e l d

IH

k

locatIons

4 » 1 1 x 1 s t i n g f u n c t Sons ..of

Co l Se c t o r s o f

I n t e r n a l|R e ve n u e la n d i B

some a d d I t I o n a l l f u n c t i o n s w i l l
performed a t

be

lo c a l o f f l e e s . g w i t h a t

l e a s t o n e jsu c h f u l l y a u t h o r i s e d
o ffIc e iIn ie a c h sta te ,la n d

lo c a l

In iiior1©

p o n y Sous s t a t e s more than o n e .

The ®

P r e s i d e n t i a l l y ap o o In ted iC o I l e c t o r

1 c l e a r i a r t d d t r e e t i l in©

accountedf f.ttylto the Commissioner
in|$ashington. f/ ^

^ f '" '^ '^

Let p i emphas I?e| thst the
p u r p o s e ! i s j t o l b r Ing to the f Ui.rf « 8
many s u p d r v i s o r y l a n d operating.

'rW

f u n c t i o n s now performed a tS^ ssh in g to n
p eld q u erters,
clo ser

a n d It h u s S b r ing them |$aP

to the ta x p a y e r to be s e r v e d .

A ^ f t h e r l J u r p o s e l l s to hr ing ^ to g e th e r
In one h e a d q u a rt e rs (underI s i n g l e 8 H ||f
d i r e c t i o n t h e l f u n c t I o n s of such

,

? <*>% * »SrSs^a

i>.

■*v ty . \ \

>

'i f if *

•% .V*>'

»8

'.sn sS h n i 1■

to move from hnshtriston to | p

the | f s t n ?7jah y § yp, £•f■
y t S©ry|?> n d

|

I o n ? r e t ions I f u n c t I o n s of i t he Revenue
gServie©.

These f u n c t i o n s « | { | |b e ''m m

p e r jo r m e d g i n i g e o g r a p h t e a i f d i i t # i | | | | | i ;
B | number I not m o r e l t h a n | 2 5 H w ;t th a | H
I f u 1 1 y i d e p u t l zed a i s t r ! c t j r e p r e s e n t s t i ve
■ u t . O o m m l s s toner in ch a rg e ! o f lllsrafPi' ■*
esch d i s t r i c t .

| | | | o fffe ia i

w ill

. Krl° wrl I s f § I s t r l e t Comm j s s i o n e r ,

'1f

tBp ^

';

tigvs choree o f a I I in t er ne l | ^ p ; T

Revenue matters in h i s d i s t r i c t wi t h

- 1 7 -

v i ce was e s t a b 1 1shed some time
i nee tnen i t ha s be en
extended.

Commiss i oner i Dun lap

i l /l■:Vó-Ki:v’-'1! ’IgWPi*ri v e
to i t s s

i detai I s
; ana o p e r a t i o n s .

But t h i s s e r v i c e cannot be m
f u l l y e f f e c t i v e except in
c o n n e c t i o n with the o t h e r
organizational
in the o

changes i n v o l v e d

p r a c t i c ct
which t h i s purpose can
accompIi
| - p

/ 2;

S

0 *

|

JH

■

To p r o v i d e a c o n t i n u i n g

and thorough d a y - t o - d a y ¡ c h e c k on
the performance and c o n d u c t ! o f a
Bureaulempioyees by the c r e a t i o n
an i n s p e c t l o n ^ s e r v i c e which wi11
f u n c t i o n under the Commissioner
inde p en de nt iy of tne

rest

Bureau.
n u c l e u s of that

of

the

i would l i k e to a s s u r e you of my
deep p e r s o n a l I n t e r e s t and^ ^ ^ P ^ B
w h o l e -h e a r t e d ¡ s u p p o r t in your j « ^ | |
e f f o r t and of my c o n f i d e n c e t h a t
our mutual o b j e c t i v e s w i l l b e iR S !
*

a 11 a Ni e d

v

W Ê

incere I y|yours, 8JEg|
B B j ^ p i s I g i i e d ) 'iRobertl R a m s p e c k l p

f l * ^ B H H | R o b e r t Ramspèck H H Ê
■

%

¿

-

y

J

■ Cha i rman

I un de rst an d t h a t the C i v i l I f

S e r v i c e Commission i s now s t u d y i n g

14
PIacefflent' 0 i v i s i o n ,

and Mr. James

H a r d , f y o u r D i r e c t o r of P e r s o n n e l ,
have a l r e a d y s t a r t e a l p r e l i m i n a r y
d i s c u s s i o n s r e l a t i v e to d e f i n i n g
the areas» of n e c e s s a r y changes in
p er son nel programming and p o l i c y .
The C i v i l

S e r v i c e Commission

greatly appreciates th is
o p p o r t u n i t y to j o i n with you in
b u i l d i n g and m a i n t a i n i n g a c i v i l
s e r v i c e c a r e e r o r g a n i z a t i o n to
r e f l e c t the ^hig hes t s t a n d a r d s of
competence,

in tegrity,

and l o y a l t y .

-

13

re o rg a n iz a t io n of thelBureau o f j
In t er n al iiR ev en u e ' wl l|l havel o n ^ !#*|'e x i s t i n g personne I?:poI i c i e s l a n d lllp S
practices#

and r e q u e s t i n g our

a s s i s t a n c e l s o ¡ t h a t the reore an i zat i on
siay bepaccomp i I shed with a min! mum

©fide ia.y
. j ^ ^ ^ | o u l m a y l b e a s s u r e d l o f the
Commission’ s complete c o o p e r a t i o n .
WeiwtIi devote e v e ry possible
r e s o u r c e to your a s s i s t a n c e .

i

am v e r y i h a p p y to say t h a t Mr. Pordyce
L u i k a r t . f C h i e f l o f our Examiningland fit

» C h a i rman

«ispee k r

ws on J an ua ry

aI IS

Ní TE B 6

»‘ \i
p
* Ii rwC

S CIVIL

11.

n
n y y iï ço co mi ypi
M
v/VJ'IV«Mn

WASHINGTON 25» So

J a nu ary
Honora

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ny.de r

s
w

m

s

ury

o n y a e r î

ank you

M il

' January 7 a p p r i s i n g
materia I e f f e c t the propose

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R e v e n u e Ir e fM e c t the h i g h e s t !
s t a n d a r d s ' of competence,

i n t e g r i t y #|f'

a n d llo y a lt y tosthe e n d l t h a t l i t J w i I I
be a b l u e - r i b b o n c i v i l

service

¡ c a r e e r ! o r g a n i zat i on in whic h!a I I

of

us can p l a c e genuine c o n f i d e n c e
and have j u s t i f i e d

pride.

I am sure t h a t you w i l l

join

w h o l e h e a r t e d l y w it h us in t h i s e f f o r t .
•

S i n c e r e I y yours*

Honorable Robert Ramspeck
Chairman, C i v i l S e r v i c e Commission
f a s h i n g t o n , 0. C.

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P r e s i d e n t has announced t h a t
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7

in h i s message.

But I

propose now to g i v e you the plan
in i t s broad d e s i g n , without
r e f e r e n c e at t h i s p o i n t to e x i s t i n g
P -;'
a d m i n i s t r a t i v e a u t h o r i t y and
necessary CongressionaI

sanction.

Both a r e a s of a u t h o r i t y are needed.
The plan as a whole cannot be
e f f e c t i v e l y a c h ie v e d without
a c t i o n on both s i d e s .
The proposed r e o r g a n i z a t i o n
of the Bureau has f o u r p r i n c i p a l
features:

At the o u t s e t

I want to g i v e

you the main o u t l i n e s of the p l a n .
Commissioner Dunlap and h i s s t a f f
a s s i s t a n t s are prepared to g i v e
fu ll

supplemental

c h a r t s and

specifications.
The contemplated r e o r g a n i z a t i o n
of the Bureau i n v o l v e s the
e x e r c i s e of both e x i s t i n g
admini s t r a t i v e a u t h o r i t y and t h e .
g r a n t of a d d i t i o n a l C o n g r e s s i ona I
s a n c t i o n through Reorg ani z a t i o n
R I an No.

I,

as the P r e s i d e n t made

of the E x e c u t i v e Branch of the
Government; from s t u d i e s by o u t s i d e
management e n g i n e e r i n g f i r m s
a u t h o r i z e d by the Congres s, and
l a s t l y from the f a c t s and a n a l y s e s
in the r e c o r d s of the King
Subcommittee of the House Ways
and Means Committee i n q u i r i n g

in t o

the a d m i n i s t r a t i o n of I n t e r n a l
Revenue laws.

The plan draws upon

the best f e a t u r e s ,

I believe,

those many important s t u d i e s .

of

in the s t i m u l u s

i t gave to

improved e x e c u t i v e management
through the a u t h o r i t y and powers
c o n f e r r e d by R e o r g a n i z a t i o n Plan
No. 26; from the Committee on
Ways and Means and the Appropr i at i on
Committee of t h i s House; from the
Senate F i n a n c e Committee, the
J o i n t Committee on I n t e r n a l Revenue
and the Senate E x p e n d i t u r e s
Committee.

They came from the

Hoover Commission on O r g a n i z a t i o n

with the m er it system o f
government employment; and to
a f f o r d g r e a t e r c o n v e n i e n c e and
e n l a r g e d s e r v i c e to the ta xpayer
at h i s

locai

level.

The plan

i s the outgrowth

of the many i n t e n s i v e s t u d i e s o f
management improvement over the
past few y e a r s .

Those s t u d i e s

were conducted by groups w i t h i n
and without the Department.

They

came from C o n g r e s s i onaI s o u r c e s - from t h i s Committee and p a r t i c u l a r l y

2

plan now b e f o r e you r e p r e s e n t s
the c u l m i n a t i o n of these e f f o r t s
to keep the Bureau in pace with
the n a t i o n ' s growing needs.
Reorgan i zat i on Plan No.
authorize a b a s ic a lly

I wi l l

improved,

s t r e a m l i n e d o r g a n i z a t i o n f o r the
Bureau of I n t e r n a l

Revenue.

The

b a s i c purposes of the plan are to
a s s u r e the i n t e g r i t y and improve
the e f f i c i e n c y of the S e r v i c e ;
b r i n g the S e r v i c e

into f u l l

to

a cc ord

Mr. Chairman and Members of the
Comm i t t e e :
I welcome t h i s o p p o r t u n i t y to
appear b e f o r e your Committee on
R e o r g a n i z a t i o n Plan No.

I of

1952,

submitted to the Congress by the
P r e s i d e n t on i J an ua ry

14.

S in c e I

have been S e c r e t a r y of the T r e a s u r y
I have devoted a g r e a t share of my
e f f o r t s and taken many s t e p s to
improve the o p e r a t i o n s of the
Bureau of I n t e r n a l

Revenue.

The

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Ì9SS.

TREASURY DEPARTMENT
Washington

Statement by Secretary Snyder before
the Committee on Expenditures,
House of Representatives
Januaiy 18, 1952.

Mr. Chairman and Members of the Committee:
I
welcome this opportunity to appear before your Committee on
Reorganization Plan No. 1 of 1952, submitted to the Congress by the
President on January II4. Since I have been Secretary of the Treasury
X have devoted a great share of my efforts and taken many steps to
improve the operations of the Bureau of Internal Revenue. The plan
now before you represents the culmination of these efforts to keep the
Bureau in pace with the nation*s growing needs.
Reorganization Plan No. 1 will authorize A basically improved,
streamlined organization for the Bureau of Internal Revenue. The basic
purposes of the plan are to assure the integrity and improve the
efficiency of the Service ; to bring the Service into full accord with
the merit system of government employment; and to afford greater con**»
venience and enlarged service to the taxpayer at his local level.
The plan is the outgrowth of the many intensive studies of manage*ment improvement over the past few years. Those studies were conducted
by groups within and without the Department. They came from Congressional
sources *— from this Committee and particularly in the stimulus it gave
to improved executive management through the authority and powers
conferred by Reorganization Plan No. 26; from the Committee on Ways and
Means and the Appropriations Committee of this House$ from the Senate
Finance Committee, the Joint Committee on Internal Revenue and the
Senate Expenditures Committee. They came from the Hoover Commission on
Organization of the Executive Branch of the Government; from studies by
outside management engineering firms authorised by the Congress, and
lastly from the facts and analyses in the records of the King Subcommittee
of the House Ways and Means Committee inquiring into the administration
of Internal Revenue laws. The plan draws upon the best features, I
believe, of those many important studies.
At the outset I want to give you the main outlines of the plan.
Commissioner Dunlap and his staff assistants are prepared to give full
supplemental charts and specifications.
The contemplated reorganization of the Bureau involves the exercise
of both existing administrative authority and the grant of additional
Congressional sanction through Reorganization Plan No. 1, as the
President made clear in his message. But I propose now to give you the
plan ip. its broad design, without reference at this point to existing

S-291Æ

119
- 2 administrative authority and necessary Congressional sanction.^ Both areas
of authority are needed. The plan as a whole cannot be effectively
achieved without action on both sides*
The proposed reorganization of the Bureau has four principal features?
1* To make the Bureau an outstanding career service in
which all positions under the Commissioner ~ including
specifically the officers to perform the present functions
of Collectors and other top supervisory officers — will be
filled solely in accordance with the Civil Service merit
system* based upon the highest standards of competence*
integrity and loyalty.
I
would like to read a letter I sent several days ago to
the Chairman of the Civil Service Commission on this subject.
January 7* 195>2
My dear Mr. Chairman;
Upon my recommendation* the President has announced
that he is submitting to the Congress a sweeping plan of
reorganization of the Bureau of Internal Revenue. The
proposed changes will materially affect the personnel
policies and practices of that Bureau. A heavy burden
will be placed on Treasury and Bureau officials since the
changes must be accomplished without interfering with
current operations. I will appreciate any assistance you
might give in order that the reorganization may be
accomplished with a minimum of delay.
It is my desire that the personnel of the Bureau of
Internal Revenue reflect the highest standards of com­
petence* integrity* and loyalty to the end that it will be
a blue-ribbon civil service career organization in which all
of us can place genuine confidence and have justified pride*
I am sure that you will join wholeheartedly with us in
this effort.
Sincerely yours*
(Signed)

John W. Snyder

Honorable Robert Ramspeck
Chairman* Civil Service Commission
Washington* D. C*

^—

120
- 3 -

Chairman Ramspeck replied to that letter as follows on
January 11.
UNITED STATES CIVIL SERVICE COMMISSION
WASHINGTON 25, D. C.
January 11, 1952
Honorable John W. Snyder
The Secretary of the Treasury
Dear Secretary SnyderJ
Thank you very much for your letter of January 7 apprising
us of the material effect the proposed reorganization of the
Bureau of Internal Revenue will have on existing personnel
policies and practices, and requesting our assistance so that
the reorganization may be accomplished with a minimum of delay.
You may be assured of the Commission*s complete coopera­
tion. We will devote every possible resource to your
assistance. I am very happy to say that Mr. Fordyce Luikart,
Chief of our Examining and Placement Division, and Mr. James Hard,
your Director of Personnel, have already started preliminary
discussions relative to defining the areas of necessaiy
changes in personnel programming and policy.
The Civil Service Commission greatly appreciates this
opportunity to join with you in building and maintaining a
civil service career organization to reflect the highest
standards of competence, integrity, and loyalty. I would
like to assure you of my deep personal interest and,wholes
hearted support in your effort and of my confidence that our
mutual objectives will be attained.
Sincerely yours,
(Signed) Robert Ramspeck
Robert Ramspeck
Chairman
I understand that the Civil Service Commission is now
studying the most effective and practicable means by which
this purpose can be accomplished.

121
- k -

2. To provide a continuing and thorough day-to-daycheck on the performance and conduct of all Bureau employees
by the creation of an inspection service which will function
under the Commissioner independently of the rest of the
Bureau,
The nucleus of that inspection service was established
some time ago. Since then it has been greatly extended*
Commissioner Dunlap will give you full details as to its
structure and operations. But this service cannot be made
fully effective except in connection with the other organiza­
tional changes involved in the plan.
3. To move from Washington to the field many super­
visory and operational functions of the Revenue Service.
These functions will be performed in geographical districts,
to number not more than 25, with a fully deputized district
representative of the Commissioner in charge of each district.
That official will be known as District Commissioner. He
will have charge of all Internal Revenue matters in his
district with a clear and direct line of accountability to
the Commissioner in Washington.
Let me emphasize that the purpose is to bring to the
field many supervisory and operating functions now per­
formed at Washington headquarters, and thus bring them
closer to the taxpayer to be served. Another purpose is
to bring together in one headquarters under single direction
the functions of such groups as Revenue Agents in Charge,
Intelligence Division, Alcohol Tax Division, etc., now under
separate offices and in varying field locations.
h» Existing functions of Collectors of Internal Revenue
and some additional functions will be performed at local
offices, with at least one such fully authorized local office
in each state, and in more populous states more than one.
The Presidentially appointed Collector will be replaced by
a career service Deputy District Commissioner, who will be
responsible to the District Commissioner of his area.
Those are the main outlines of the plan. It is the opposite, you
will observe, of a Washington top-heavy centralized plan. It places fuller
responsibility at the grass roots level to meet the needs of all taxpayers.
The purpose is to assure improved service and greater convenience to the
taxpayer.
As I said before, details and blueprinting of these basic features
of the plan will be supplied by the Commissioner and his staff assistants.

* 5 -

I have stated the essentials. Every American citizen has a direct and
vital interest in this plan. The Bureau of Internal Revenue carries a
great responsibility for the successful functioning of our Government.
Increasingly mounting demands on the Service since World War II have
brought heavy accumulations of problems of administration, of operation,
of fidelity and integrity. Earnest efforts have been made to keep pace
with these problems. I will outline a little later the principal efforts.
But structural handicaps under which the Service still operates prevent
us from adopting necessary improvements which experience has shown to
be needed.
The Reorganization Plan will permit us to bring the Revenue Service
fully up to the requirements of the day. It will enable us to establish
maximum efficiency of operation and maximum service to the public. It
will bring the Service into accord with the merit system of Government
employment. It will help remove temptations to which, unfortunately,
some Revenue Service employees have succumbed in the past.
A Revenue Service of top efficiency, of unquestioned integrity, and
of maximum economy of operation is something to which the American people
are entitled. The maintenance of such a service is the greatest assurance
for the continued success of our voluntary system of taxpayer compliance,
the very foundation of our fiscal strength and economic health. A new,
adequate, up-to-date architecture for the service has been .planned with:
these objectivés uppermost in mind.
In order to lay the background of the planning which culminated in
the basic reorganization proposal now before you, let me tell you some
of the more Important problems that we faced at the beginning of nry
tenure as Secretary of the Treasury, and those that developed as the work
load of the Bureau increased so rapidly in volume and complexity. It
is against this background that we must project the accomplishments of
recent years, and the situation we face today.
Let me say at this point that the Collectors of Internal Revenue,
as a body, have given great assistance in solving our problems and in
making our accomplishments possible. They have shared outstandingly in
the assumption of the tremendously increased work loads.
The years elapsed since 19U0 witnessed an unprecedented increase in
the responsibilities of the revenue service in meeting the exigencies
of war and defense financing. Between 19h0 and 1950 the volume of tax
£°T/9C^ 0n? *ncreasec* tenfold, and the number of taxpayers increased from
b-1/2 million^to over 55 million. With the broadening of the base of
the personal income tax, wage and salary withholding was introduced,
creating many new problems, not the least of which was that of mass
refunding operations. Many new taxes have been imposed, including
numerous excises, the excess profits tax, and the recently enacted
wagering tax.

f 6.

123

But the increased workload has by no means been limited to the processing
of returns and tax collection and refund procedures. There has been as
striking a growth in the other main operational responsibilities oi tne
revenue service
tax enforcement, interpretation of tax statutes and
settlement of disputed cases. On the enforcement front, ‘the investigation
and prosecution of fraud cases, beginning with the drive on black
marketers in 1 9h%, and extending through the current drive on racketeers,
has absorbed more and more time and manpower. The racketeer drive alone,
for example, requires the services of 2,300 of our best trained enforce­
ment officers.
The heavy volume of recent tax legislation, designed to finance
defense expenditures, close loopholes and deal with tax inequities, has
severely strained the resources of the Revenue Service. Four major
enactments — the Social Security Act of 1950, the Revenue Act of 1950,
the Excess Profits Tax Act of 1950, and the Revenue Act of 1951 —
confronted the Bureau in a space of little more than a year.
Let me tell you some of the things we already have done and are doing
to meet these problems.
One step X took was to create a committee of highly qualified men
to direct management improvement studies within the Revenue Service. An
outside management firm was called in to make an independent survey of
the Revenue Bureau*s structure and organization.
A vigorous work simplification program was initiated.
To the extent that the present organization permits, we have
decentralized operating functions and strengthened headquarters manage­
ment control. We have strengthened front-line enforcement,-notably
through the creation of more than 100 special racket squads to run
down criminal tax evaders. We have installed tabulating machines and
other modern equipment. We became the first large-scale business users
of electronic computers. We have modernized record keeping by microfilming
and other means. We have simplifled tax collection procedures by
introducing a depositary receipt system. We have speeded up our re­
funding operations.
There have been improvements in the performance of various other
major tasks. We have reorganized some of the major administrative
divisions along functional lines. We have streamlined the field or*
ganization by combining the Excise Tax Agents with the field offices of
the Income Tax Division, We have completed an audit control program aimed
at more effective selection of returns for investigation. We have
improved and simplified tax forms and instructions.

124
- 7
These improvements give us a strong base for the proposed
reorganization. As I have said, we had to do first things first. If
we had not moved in this way, it would not be physically possible now
to effectuate the Reorganization Plan on the schedule we have proposed.
We have been going ahead steadily with the setting up of a strong
independent inspection service within the Bureau of Internal Revenue,
reporting to the Commissioner,
The Inspection Service is the arm of the Commissioner, by which
the operations and the personnel of the Revenue Service are brought under
continuous scrutiny to insure efficiency and integrity of performance.
The Commissioner is extending the work and expanding the personnel of
the Inspection Service so that a closer, more systematic, day-to-day
check of the various field and departmental offices of the Revenue
Service can be maintained.
Vie are also proceeding with management improvements and the
combination of functions which will permit greater efficiency within the
scope of the present structure. This is being accomplished, for example,
by combining the separate Wage and Excise Tax divisions of the Bureau,
so that one division through one operating head can more effectively do
the job formerly done by separate units.
We are taking further steps to speed up all our operations. We
have already instituted a new procedure for the reference of criminal
tax cases directly from the field to the Department of Justice for
prosecution. This change is the result of the study of nearly a
thousand cases of tax fraud. The new procedure will mean a saving on
the average of four months or more in each case.
As a part of our reexamination of these procedures, and to
eliminate delaying factors, we have recently announced changes in policy.
We announced that we will no longer permit the collateral factor
of the taxpayer* s health to weigh against our determination that the
case is one warranting criminal prosecution. The health of the tax­
payer can more appropriately be taken into account by the prosecuting
authority or by judicial process.
We have also announced the abandonment of the former voluntary
disclosure policy. We abandoned this policy because of its controversial
nature as reflected in court decisions, complexities of administration,
and the abuses which arose.
Our announcements in these policy areas are in accordance with the
intensified enforcement activities of the Bureau’s special tax fraud
drive and racket squad work throughout the country, which are ferreting

125
-

8

-

out the willful tax evaders and resulting in the recovery of additional
taxes and penalties due the Government.
These new procedures will in no wise reduce the rights of honest
taxpayers, but they will bring into a more appropriate balance the
interest of our taxpayers in the effective enforcement of the tax laws.
Obviously, the Federal revenue system must have the public’s
confidence and support. This means the system’s integrity must be un­
questioned. Commissioner Dunlap and I, with full authority from the
President, have acted promptly to eliminate from the Bureau of Internal
Revenue any personnel who brought dishonor on the Service. We have
taken strong steps to remove any further opportunities for misconduct.
Among the actions taken toward this end have been the following:
(1) All supervisory employees and all other employees
dealing with the public or handling Government funds — some
31,000 in all — have been required to execute and file with
the Bureau a statement which would reflect their income and
net worth. This will be a continuing program.
(2) Employees’ tax returns have been subjected to
special audit. This too will be a continuing program.
(3) All complaints of misconduct have been and will
continue to be promptly investigated.
(1*) Quick disciplinary action has been taken as soon
as the facts of each case were clearly known,
(5>) All Collectors appointed in the past year have
been prohibited from having any outside activities which
might conflict with the full and proper discharge of their
duties.
(6) We have cooperated fully with the Kefauver and
King Committees.
All of the above steps reflect the constant and ever increasing
efforts on the part of the Department to provide the best Revenue
Service which it is .humanly possible to provide under the existing
structure.
^Now we are at the point where we need the basic authority in the
President’s reorganization plan as the culmination of our efforts in
this direction.

^

And I would like new to tell you in simple, non-technical language
why we are urging adoption of this plan of reorganization. First, let
me comment on that part of the plan which provides that all positions
in our Revenue Service, except the position of Commissioner, would be
filled by Civil Service men and women. The principal effect of this
provision would be to abolish the 6h positions of Collector of Internal
Revenue. There are three reasons we are urging this. They are all
simple and they are all sound.
First, the system as we now know it under which Collectors of
Internal Revenue are appointed by the Executive Branch outside the Civil
Service is an archaic one of almost a century*s standing. It was in­
troduced at a time before the merit system was devised, and then it
was perpetuated through decades in our history when our Internal Revenue
system was relatively free of highly technical and legal problems. The
official responsibilities of Collectors in those days were relatively
light. The principal requirement was one of community leadership to
encourage local acceptance of Federal taxes. The taxpayer base was
narrow and the Collectors, in a real sense, acted more or less as mere
receivers of tax monies and as conduits of returns, claims, and other
documents which were required to be forwarded to Washington for process­
ing and decision. In its day, this system worked well.
With our phenomenal economic growth, however, our tax system has
undergone a steady expansion with a consequent need for continual re­
appraisal of practices and procedures which have now become either
obsolete or cumbersome for the mountainous and complex job that con­
fronts the Revenue Service today. The present system of appointing
Collectors of Internal Revenue is one of these practices. Since
Collectors are not appointed and cannot be removed by the Commissioner
of Internal Revenue or myself, they are not fully responsive to the
control of their superiors in the Treasury Department. Furthermore,
there are residence requirements which make it difficult for us to
rotate or move them from one collection district to another. Added to
these impediments is the uncertainty of office-tenure which attaches to
their position.
Secondly, Collectors do not hold the policy-making type of office
which should properly be subject to Presidential appointment. Their duties
are primarily administrative and technical and are clearly of a type
which should be within the framework of our Civil Service System.
Lastly, extension of Civil Service to the position of Collector and
ail other offices in the Revenue Service, excepting only that of
Commissioner — which is on a high policy-making level in tax
administration — would further the principles of the merit system in
an agency of our Government which pre-eminently should be free of any
nint or suggestion of favoritism or influence.

-

10

-

127

It should thereby enable us to attract to the service and hold
able men and women who are interested in pursuing Government service
as a career but who naturally want to look forward to opportunities
for advancement to top positions in that service for which they may
be qualified*

I would like now to tell you why the plan provides for the
appointment of "not to exceed 2$ District Commissioners," Here again
the reason is simple, at the present time there are nearly 200 head­
quarters field offices reporting to the Commissioner through 7 different
separate line divisions* There are 6k main offices in the field engaged
in both collecting taxes and in auditing the smaller returns. There
are 39 field districts which concern themselves with auditing the larger
classes of returns. There are lU field districts which deal only with
the tax fraud aspects of tax cases. There are 12 field districts of
the Bureau*s Appellate Staff; and there are l£ field districts engaged
in the enforcement of the alcohol and tobacco taxes.
The Reorganization Plan, as I have said, would combine these
various types of offices into not more than 2$ regional revenue dis­
tricts, each of which would be headed by a District Commissioner
accountable directly to the office of the Commissioner in Washington*
I would like to emphasize as strongly as I can at this point, however,
that this does not mean that service to taxpayers will be curtailed
in any area since there will be up to 70 suboffices and the present
network of zone offices and posts of duty throughout the country which
have been established to meet the public*s needs just as there are now*
As a matter of fact, not only will there be the same facilities avail­
able to taxpayers under the Plan as there are at the present time,
but these facilities will be expanded to include services which are
not now available in all localities where the Bureau now has
Collectors* offices*
A plan of this importance had to be developed with the greatest
care because of its sweeping nature and many impacts on every taxpayer.
The plan has grown out of intensive studies of methods and operations
which were begun in the Bureau of Internal Revenue immediately after
I became.Secretary,

In perfecting the plan we were aided also by four major studies
initiated or authorized by the Congress* The first of these was the
study of the Bureau made by the Staff of the House Committee on
Appropriations* The second was made under the direction of the Joint
Committee on Internal Revenue Taxation* The third was made by the
Hoover Commission and the fourth by a management engineering firm.
(Cresap, McCormic and Paget) employed by the Bureau under the authority
of Congress*

128
- n I want to particularly acknowledge the continued assistance which
we have received from the Senate Finance Committee, the House Ways and
Means Committee, and the King Subcommittee of the House Ways and Means
Committee. Their aid has included many valuable suggestions and
recommendati on s.
These groups very naturally did not always agree completely with
one another in all of their recommendations. But in the main, there
has been general recognition of essential points.
There may remain in your minds a question as to why .it has been
found necessary to bring this plan to the attention of the Congress
through the Reorganization Act of 19ii9. The very nature of the plan
dictates that it be brought here. It fundamentally and sweepingly
changes the Bureau1s structure.
The present organization rests on 6h collectors’ offices,
specifically established by statute nearly a century ago. This was
obviously intended by Congress to be the framework around which the
collection system was to be built. I would not change that basic
feature of the Bureau’s structure, sanctioned for so long by the
Congress, without Congressional knowledge.
There are two features of the plan that definitely require the
participation of Congress* first, the abolition of the statutory
offices of Collectors of Internal Revenue; and second, the up-grading
of the top administrative positions.
However, above and beyond this, it is essential for the
legislative branch of the government to be informed of this plan, to
hear the reasons for its need, for without the support of the Congress
this far-reaching undertaking cannot be expected to produce the hopedfor results.

0O0

*# 2 «fe»

Düring his early career, he served as scientific instructor and
athletic coach in high schools in Minnesota and Wisconsin.

He joined the

United States Marine Corps during World War I and served in the American
Expeditionary Forces, attaining the rank of Second Lieutenant*
Mr. Harney entered the government service in June 1920 and for the
past

thirty-one years has been engaged in law enforcement activities of

the Treasury Department.

Due to his thorough knowledge of investigative

procedures, he has been instrumental in bringing to justice many notorious
racketeers, particularly those engaged in the illicit narcotic traffic.
In addition to his duties as Assistant to the Commissioner of Narcotics
from December 7, 1941, Pearl Harbor Day, until May 15, 1946, Mr. Harney
served as Assistant Coordinator of Treasury Enforcement Agencies and assisted
with the building up of the force of guards necessary to protect the property
of the Japanese and Germans seized in this country, as well as with the many
other assignments which were given to the Chief Coordinator during the War.
From January 1947 until November 1948, he was Acting Chief Coordinator, at
the same time continuing his activities in the Bureau of Narcotics*
Mr. Harney is married and resides at 4325 Verplanck Place, Northwest.

Secretary Snyder today announced the appointment of Malachi L* Harney
to the newly created career civil service position of Technical Assistant
to the Secretary for Enforcement.

Since 1936, Mr* Harney has been Assistant

to the Commissioner of Narcotics, Treasury Department*
As top technical enforcement adviser to the Secretary, Mr* Harney will
report through Under Secretary of the Treasury Edward H. Foley, who super*.
vises all enforcement operations*
The Secretary, simultaneously with the new appointment, issued an
order specifying the following duties for the new technical assistant:
Representation of the Secretary in all major law enforcement cases
Development of nation-wide and international Treasury law enforcement
policy
Development of improved law enforcement techniques
Control of enforcement operating costs
Appraisal of performance of Treasury enforcement units 'H.
Direction of on-.the-.job training of Treasury agents
Improvement of Treasury enforcement communications
The Office of Chief Coordinator, Treasury Enforcement Agencies, will
be absorbed in the new enforcement office•
Mr. Harney was born in Duluth, Minnesota, on June 11, 1895#

He was

educated in the public schools at Scanlon and Cloquet, Minnesota, and
received a B. S. degree from the University of Minnesota College of
Agriculture«

T R E A S U R Y

D EP A R T M EN T

Information Service

WASHINGTON, D .C .

IIllEDIATE- RELEASE,
Friday, January IS, 1952

S«29hl

Secretary Snyder today announced the appointment of I-ialachi L*
Harney to the newly created career civil service position of Technical
Assistant to the Secretary for Enforcement, Since 1936, Mr, Harney has
been Assistant to the Commissioner of Narcotics, Treasury Department,
As top technical en.forcernent adviser to the Secretary, Mr, Harney
will report through Under Secretary of the Treasury Edward H, Foley who
supervises all enforcement operations,
,.M
9
The Secretary, simultaneously with the new appointment, issued an
order specifying the following duties for th© new technical assistant:
.Representation of the Secretary in ail major law enforcement
cases
Development of nation-wide and international Treasury law
enforcement policy
Development of improved law enforcement techniques
Control of enforcement operating costs
Appraisal of performance of Treasury enforcement units
Direction of on-the-job training of Treasury agents
Impiovement of. .Treasury enforcement communications,
4.he Office of Chief Coordinator, Treasury Enforcement Agencies
be aosorbea in the new enforcement office,
. *

will

Mr, Harney was born in Duluth, Minnesota, on June 11, 1899* He was
educated in the public schools at Scanlon and Cloquet, Minnesota and/
received a B* S, degree from the University of Minnesota College5of
Agriculture.
J
Ewing his early career, he served as scientific instructor and
athletic coach in high schools in Minnesota and Wisconsin, He ioined the
Unitea States Marine Corps during World War I and served in the"American
■xpeditionaiy Forces, attaining the rank of Second Lieutenant*

2 —

Harney entered the government service in June 1920 and for the
past thirty-one years has been engaged in law enforcement activities of
the Treasury Department* Due to his thorough knowledge of investigative
procedures, he has been instrumental in bringing to justice many
racketeers, particularly those engaged in the illicit narcotic
DP 8.1 X 1C i

In addition to his duties as Assistant to the Commissioner of
Narcotics from December 7, IPlil, Pearl Harbor Day, until May l£, 19L6*
Mr* Harney served as Assistant Coordinator of Treasury Enforcement
Agencies and assisted with the building up of the force of guards
necessary to protect the property of the Japanese and Germans seized in
this country, as well as with the many other assignments which were
given to the Chief Coordinator during the War, From January 19li7 until
November 19a8, he was Acting Chief Coordinator, at the same time
continuing his activities rn the Bureau of Narcotics*

Hr. Harney is married and resides at ii325 Verplanck Place, Northwest.

cOo

PRESS RELEASE

The Secretary of the treasury today announced the issuance
of an order prohibiting the sal© or other disposition of a steel
presently located in the United States and belonging to
Czechoslovak interests* this action was taken to insure that the
«ill will be available for disposition in accordance with the defense
interests of the United States*
The order, which provides that any attempted acquisition of
interests in the steel sill is completely null and void without
Treasury approval, was issued after consultation with the Departs®!t
of State and the Rational Production Authority*
The steel m i M to which the order relates was manufactured in
the Halted States on the order of Czechoslovak interests including
Banska e Hutni Spolecnost* It is designed to produce steel strip,
steel sheet and *fei plate* At the present time the component parts
of the will are located in various warehouses and similar storage
facilities, n m & w * American and foreign arehouse, Richmond Street,
Philadelphia, Pennsylvania! Speny Warehouse, Troy, New Torkj Bixma
lard of the Parmaylvania Railroad, Philadelphia, Pennsylvania! and
Halted Bhgineerinig and Foundry Company, Newcastle, Pennsylvania and
toungstofwn, Ohioj

EFRainstiof
1/17/52

T R E A S U R Y

134

D EP A R T M EN T

Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE,
Friday , January 18, 1Q52.

3 . 294.2

The Secretary of the Treasury today announced the
issuance of an order prohibiting the sale or other
disposition of a steel mill presently located in the
United. States and belonging to Czechoslovak interests.
This action was^taken to insure that the mill will be *
available for disposition in accordance with the defense
interests of the United States,
4The order, which provides that any attempted
acquisition^ of interests in the steel mill is completely
null and void without Treasury approval, was issued after
consultation with the Department of State and the National
Production Authority,
The steel mill to which the order relates was
manufactured in the United States on the order of
Czechoslovak interests including Banska e Hutni Spolecnost.
It is designated to produce steel strip,- steel sheet and
light plate , At the present time the cornuonon-t narit-.s

and Youngstown, Ohio.

®0o

CtJL
RELEASE, u c m i m NSSSPAPSIS»
Tuesday* January 22» 1952»

yf

V

£

f

The Secretary of the Treasury announced last evening that the tenders for
% 1$ 200,000,000,

or thereabouts, of 91-day Treasury bills to be dated January 2U and

to mature April

2k,

1952, which were offered cm January 17, were opened at the Federal

Reserve Banks on January 21«
The details of this issue are as follows*

Total applied for — $2,195,&12,OQO
Total accepted
- 1,200,705,000

Average price

(includes $211,5i&,000 entered on a
non—ccrapetltivs basis and accepted in
full at the average price shown below)
- 99*596 Equivalent rate of discount approx« 1*599$ per annua

Range of accepted competitive bids j
High
Low

oo#603 Equivalent rate of discount approx. 1*551$ per annua
99*593
*
«
«
*
1* 610$ 8
B

(2ii percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Boston

i

lew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

TOTAL

67*536,COO
1,M 2,677,ooo
36.638.000
l«,it8U,0Q0
26.917.000
35. 611.000
136.621.000
66.506.000
11.565.000
51.862.000
61,390,000
122.067.000

$2,195,612,000

Total
Accepted

|

38,626,000
676.076.000
15.338.000
71.126.000
19.857.000
28.921.000
128.506.000
36,886,000
10.703.000
66.638.000
29.632.000
102,602,000.

$1,200,705,000

RELEASE MORNING NEWSPAPERS,
Tuesday, January 22, 1952.

S-2943

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91 -dav Treasury bills
to be dated January 24 and to mature April 24, 1952, which were
offered, on January IT, were opened at the Federal Reserve Banks on
January 21,
C
v

The details of this issue are as follows:
Total applied for-$2,195,412,000
Total accepted
- 1,200,705,000 (includes $211,544,000 entered
on a non-competitive basis
and accepted in full at the
„
.
^
average price shown below)
Average price
- 99.596 Equivalent rate of discount approx.
1*599$ per annum
Range of accepted competitive bids:
Hi 8h

- 99.608 Equivalent rate of
r'' ,c
1.551$ per
- 99.593 Equivalent rate of
1 .610$ per

Low

discount approx.
annum
discount approx.
annum

(24 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland

Total
Applied for*
$

67 ,536,000
1,472,677,000
100.484.000
24.917.000
35.411.000
186.421.000
46.504.000
11.545.000
51.842.000
41.390.000
122.047.000

3 8 ,6 2 6 , 0 0 0
674.076.000
15.338.000
71.124.000
19.857.000
28 .921.000
128.504.000
34.884.000
10.703.000
46.638.000
29 .632.000
102.402.000

$2,195,412,000

$ 1 ,200 ,705,000

34.638.000

Richmond
Atlanta
Chicago :

St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
___ Accepted

0O0

$

- 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

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

Under Sections 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 b ills, 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

-

AfcEMAi

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 shal].
be final.

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

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

Settlement for

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

January 31, 1952 , in cash or other immediately avail-|
■
able funds or in a like face amount of Treasury bills maturing January ftl. 1952.
-------------- ---------------------\ /

Cash and exchange tenders will receive equ&l treatment.

Cash adjustments will be!

made for differences between the par value of maturing bills accepted in exchange*
and the issue price of the new bills.
The incane 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 fron 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 frol!1

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

TREASURY DEPARTMENT

t

Washington

1

f ‘7*7

FOR RELEASE, MORNING NEWSPAPERS,

Thursday, January

2k,

1952

The Secretary of the Treasury, by this public notice, invites tenders for
$1,300,000,000 , or thereabouts, of
-----

55

91

“day Treasury b ills, for cash and

in the amount of $1,301 »680,000,

in exchange for Treasury bills maturing

January 31, 1952

>Ao

be issued on

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

The bills of this series vail be dated

vd.ll mature
interest.

May 1, 1952

January 31. 1952 .... > and

, when the face amount will be payable without

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

Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m., Eastern Standard time,Monday, January 28r 1952.»
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 vili
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received without deposit from

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

Tenders frcrn others must be accompanied

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

T R E A S U R Y

D EP A R T M EN T

Information Service

RELEASE MOR N I N G NEWSPAPERS,
Thursday, January 24, 1952.

s-2944

The Secretary of the Treasury, by this public notice, invites
tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing"January 31,
1952, in the amount of $1,301,680,000, to be issued on a discount
basis under competitive and non-competitive bidding as hereinafter
provided* The bills of this series will be dated January 31, 1952,
and will mature May 1, 1952, when the face amount will be payable,
without interest./. They will be issued in bearer form only, and in
denominations -of $1,000, $5,000, $io,000, $100,000, $500,000, and
$1 ,000,000 (maturity value).
Tenders 1 will be received at Federal/Reserve Banks and Branches
up to the closing hour, two o'clock. p.m.,.:Eastern Standard time,
Monday, January 28, 1952.
Tenders will not h e received at the.
Treasury Department, Washington,
Each tender must be for an even
multiple of $ 1 ,000 , and in the- case of competitive tenders the price
offered must- be expressed on the basis of 100 , with not more than
three decimals, e . g ., 99*925.
Fractions may not be used.
It is
urged that tenders be made on the.printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application.therefor.
Others than banking institutions will not be permitted to submit
tenders except for their, own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an' incorporated
tank .or trust company .
g •
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
^ill 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
such respect shall be final.
Subject to these reservations,
on-competitive tenders .for $ 200,000 or less without stated price
Irom any one bidder will be accepted in full at the average price

2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on January 31, 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing January 31, 1952.
Cash=and exchange
tenders will receive equal treatment.
Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption,.as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such*
under the Internal Revenue Code, or laws amendatory or supplementary
thereto.
The bills shall be subject to estate, inheritance, gift
or other excise taxes, whether Federal or State, but shall be
exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest.
Under Sections 42 and 117 (a) (1) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of -1941, the
amount of discount at which bills issued^, hereunder are sold shall
not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consid­
eration as capital assets.
Accordingly, the owner of Treasury*bills
(other than life insurance companies) issued hereunder need include
in his income ta,x 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

//W t ,

*

^

2

^7 ^

2
Lieutenant Colonel, General Staff Corps, and vas awarded
the Legion of Merit and the Army Commendation Ribbon for
distinguished military service.

He was released from the

Army in April 1946.
From May to August 1946 -Mr. Overby was again employed
by the Federal Reserve Bank of New York, serving as
Assistant Vice President concerned particularly with
relations with the International Monetary Fund, the
International Bank for Reconstruction and Development, and
the Export-Import Bank.

From August 1946 to July 1947 Mr. Overby served as
Special Assistant to the Secretary of the Treasury in charge
of international monetary and financial affairs,

supervising

the Division of Monetary Research and Foreign Funds Control.
He also served as the Secretary's Alternate on the National
Advisory Council on International Monetary and Financial
Problems.

In July 1947, President Truman appointed him

United States Executive Director of the International Monetary
Fund.

In February 19^9 he became Deputy Managing Director

of the Fund.

On January 10, 1952, President Truman appointed Mr. Overby
as Assistant Secretary of the Treasury, and he was confirmed
by the Senate January

2^K

Mr. and Mrs. Overby reside at 2444 Massachusetts Avenue,
Northwest, Washington, D. C.

/

ANDREW N. OVERBY

Mr. Overby was born in Cheyenne Agency, South Dakota,
on March 27,

1909 .

He received his early education in the

public schools of Minneapolis, Minnesota.
University of Minnesota from

1926

to

1928 ,

He attended the
and graduated from

Columbia University, New York, in
1930 with the degree of B.S.
of M.S. from Columbia, ^

In 1940 he received the degree

^^^^^^1

g£- ^ ^ h *****«**» t

Prom 1930 to 1941 Mr. Overby was employed by the
Irving Trust Company in New York City, serving,

principally

in foreign banking work and as Assistant to the Vice
President in charge of portfolio investments.

In January,

1942, he joined the Federal Reserve Bank of New York and
served as special assistant to the Vice Presidents in
charge of international banking and investment functions
of the institution until October 1942, at which time he
entered the U.S. Army as First Lieutenant.

During his service with the Army, Mr. Overby was in
charge of the procurement of supplies, services and
facilities from our Allies under reverse lend-lease, and
later be came Executive Officer to the Director of Materiel,

..... 11 ! 1

1

ir

•-fTip§&ed procurement activities of

the Army Service Forces.

Mr. Overby attained the rank of

S

-

9-l i t

Andrew N. Overby of Washington* D. C •* was sworn in
at the Treasury today as Assistant Secretary of the
Treasury.
He fills a vacancy created when William McChesney
Martin,Jr., resigned last year to accept appointment
as Chairman of the Board of Governors of the Federal
Reserve System.
Secretary Snyder stated that M r • Overby would
supervise the activities of the Office of I n t e r f f a f c ^ ^
Finance of the Treasury, and additionally would assist
the Secretary in his Federal Reserve relations and in
Government borrowing operations.

T R E A S U R Y

D EP A R T M EN T

Information Service

Wa s h in g t o n , d . c .

IMMEDIATE REIEASE,
Thursday, January 24, 19 5 2 .

S -2945

Andrew N. Overby of Washington, D, C.
was^sworn in at the Treasury today as
Assistant Secretary of the Treasury,
^He fills a vacancy created when
William McChesney Martin* Jr.* resigned last
year to accept appointment as Chairman of
the Board of Governors of the Federal Reserve
System.
Secretary Snyder stated that Mr. Overby
would supervise the activities of the Office
International Finance of the Treasury and
additionally would assist the S e c r e t a r y i n h i s
Federal Reserve relations and in Government
borrowing operations.

0O0

ANDREW N . OVERBY

Mr. Overby was born in Cheyenne Agency, South Dakota, on
March 27, I909 . He received his early education in the
public schools of Minneapolis, Minnesota.
He attended the
University of Minnesota from 1926 to 1928 , and graduated from
Columbia University, Hew York, in 1930 with the degree of
B.S.
In 1940 he received the degree of M.S. from Columbia
University School of Business.
From 1930 to 1941 Mr. Overby was employed by the
Irving Trust Company in New York City, serving principally
in foreign banking work and as Assistant to the Vice President
in charge of portfolio investments.
In January, 1942 he
joined the Federal Reserve Bank of New York and served as
special assistant to the Vice Presidents in charge of
international banking and investment functions of the
institution until October 19^2, at which time he entered the
U.S. Army as First Lieutenant.
During his service with the Army, Mr. Overby was in
charge of the procurement of supplies, services and
facilities from our Allies under reverse lend-lease, and later
became Executive Officer to the Director of Materiel who had
responsibility for staff supervision of procurement activities
of the Army Service Forces.
Mr. Overby attained the rank of
Lieutenant Colonel, General Staff Corps, and was awarded the
Legion of Merit and the Army Commendation Ribbon for
Armyi^April ^

6 tary

ser>vice*

He ¥as l e a s e d

from the

^PJ0m
to August 1946 Mr. Overby was again employed by
the federal Reserve Bank of New York, serving as Assistant
Vice President concerned particularly with relations with the
International Monetary Fund, the International Bank for
Reconstruction and Development, and the Export-Import Bank.
A s s i , S ^ g u s t 1946 to July 1947 Mr. Overby served as Special
Assistant to the Secretary of the Treasury in charge of
international monetary and financial affairs, supervising the
division of Monetary Research and Foreign Funds Control.
He
a so served as the Secretary's Alternate on the national
Advisory Council on International Monetary and Financial
Problems.
In July 1947, President Truman appointed him

United States Executive Director of the International Monetary
Fund.
In February 19^9 he became Deputy Managing Director
of the Fund.
From July 19^-7 to February 194-9 he continued to
serve as Special Assistant to the Secretary of the Treasury in
an advisory capacity.
On January 10, 1952, President Truman appointed Mr. Overb
as Assistant Secretary of the Treasury, and he was confirmed
by the Senate January 22.
Mr. Overby is a member of Beta Gamma Sigma Scholastic
Society, and was the recipient of the 1947 National Honor
Award voted by the Beta Gamma Sigma chapters.
Mr. and Mrs. Overby reside at 2444 Massachusetts Avenue,
Northwest, Washington,. D. C.

oOo

January 1952

Secretary ntf timn IftrumrrrT Snyder today announced that the savings bond
regulations have been «sanded effective February 1,
to broaden the
condition« under which bond« registered in the names of two individual» a«
coowner» way be raiasued in ths name of either ©©owner alone or with a new
coowner or with a beneficiary* The new bond« issued to effect such changes
in registration will bn datad as of ths same month and year as tha original
bonds. The amendment, which requires the signsturs of both coowners as a
condition of reissue, applies to cases In which the ©©owners whose bonds are
to be reissued bear certain specified relationships to each other either by
blood, marriage or adoption* In order to obtain reissue both coowners must
be of full age and legally competent except that a minor coowner of suffi­
cient competency and understanding to comprehend the nature of the transaction
may join in the request if all of the bonds are to be reissued in his name
alone or with a new coowner or a beneficiary.
The amendment, although not so limited, was designed primarily for the
convenience of family groupe whioh with the passage of time often have
occasion to readjust their holdings because of changed financial or other
conditions*
The new provisions are set forth in the hinth Amendment dated January IS,
1952, to Department Circular Ho* 530, Sixth Revision* Any information with
respect thereto may be obtained from the Treasury Department taive in Washington
or from the Chicago Office of the Bureau of the Public Debt, Merchandise Mart,
Chicago 5b, Illinois, or from any federal Reserve Bank or Branch* The federal
Reserve Banks and Branches because of their geographical location will be able
to answer inquiries and handle transactions Involving reissue of the bonds
mors promptly*

S ill

TJWinstomafh l-2h-$2

M H |

T R E A S U R Y

D EP A R T M EN T

Information Service

WASHINGTON, D .C .

•149

IMMEDIATE RELEASE,
Friday) January 25, 1952.

*

3-2946

.

Secretary Snyder today announced that the savings bond
regulations have been amended effective February 1 , 1952, to
broaden the conditions under which bonds registered in the
names of two individuals as coowners may be reissued in the
name of either coowner alone or with a new coowner or with
a beneficiary.,' The new bonds issued to effect such changes in
registration will be dated as of the same month and year as the
original bonds.
The amendment, which requires the signature of
both coowners as a condition of reissue, applies to cases in
which the coowners whose bonds are to be reisstiod bear certain
specified relationships to each other either by blood, marriage
or adoption.
In order to obtain reissue both coowners must be
of full age and legally competent except that a minor coowner of
sufficient competency and understanding to comprehend the nature
of the transaction may join in the request if all of the bonds'
are to be reissued in his name alone or with a new coowner or
a beneficiary.
The amendment, although not so limited, was designed
primarily for the convenience of family groups which with the
passage of time often have occasion to readjust their holdings
because of changed financial or other conditions.
The new provisions are set forth in the Ninth Amendment
dated. January 18. 1QS2. to Dorm-ntmont
t\
t^
con
from the Treasury Department in Washington or from the
Chicago Office of the Bureau of the Public Debt, Merchandise
Mart, Chicago 54, Illinois, or from any Federal Reserve Bank
or Branch.
The Federal.Reserve Banks and Branches because o
tneir geographical location will be able to answer inquiries
and handle transactions involving reissue of the bonds more
promptly.

0O 0

J
7
Tuesday, Jarnuny 29» 19 5 2 .
th e S e c re ta ry o f th e T re a su ry announced la s t eve n in g th a t th e te n d e rs fo r
1 1 ,3 0 0 ,0 0 0 ,0 0 0 , o r th e re a b o u ts, o f 9 1-d ay T re a su ry b ills to be dated Jsn u a xy 31 and
to s a tu re Kay If 195* > » h ie b w ere o ffe re d on Ja n u a ry 2 k , s e ra opened a t th e Fed eral
R eserve Banks on Ja n u a ry 28 .
The d e t a ils o f t h is is s u e a re a s fo llo w s t

total s p p lis d f o r * $ 2 ,2 8 3,8 2 6 ,0 0 0
T o ta l aeesp ted
A verage p ric e

-

1,30 1,1* 8 3»000

(in c lu d e s $ 18 0 ,8 9 6 ,0 0 0 s n ts rs d on a
non-competitive basis and accep ted in
f a l l a t th e averag e p ric e shown below )
- 9 9 .5 9 8 / E q u iv a le n t ra te o f d isc o u n t ap pro* . 1.58 9 * p e r ana®

Range o f accep ted co m p e titiv e b id s*
- 99.625 E q u iv a le n t ra t e of di»co u n t appro* . 1.1*81** p er aim®
« 99,596
«
»
*
»
»
1.598* *
w

H igh
‘ low

(1*9 p e rce n t o f th e amount b id f o r a t th e lo w p ric e was a cce p te d )
F e d e ra l R eserve
D is t r ic t ________

T o ta l
A p p lie d fo r

T o ta l
A eespted

B oston
Hew fo rk
P h ila d e lp h ia
C le v e la n d
Richm ond
A tla n ta
C hicago
S t. L o u ie
M in n e a p o lis
K ansas C ity
D a lle s
Sen F ra n c isc o

$

$

T o ta l

3 7,2 1 9 ,0 0 0
1 ,5 9 0 ,1 2 0 ,0 0 0
31 ,116,000
65 ,981,000
2 k ,6 3 k ,000
3 5 ,lk 7 ,0 0 0
2 l8 ,2 k 7 ,0 0 0
3 7,3 k 2 ,0 0 0
6,1*65,000
6 9 ,1 26,000
5 k , 110 ,0 0 0
I l k . 319 ,0 0 0

$2 ,283,826,000

2 7,7 1 9 ,0 0 0
7 7 8 .2 1 3 .0 0 0

15 ,116,000
58 ,026,000
1 9 .3 5 9 .0 0 0
31.882.000
11*3, 527,000
2 k ,6 17,0 0 0
6,k65,000

56 ,812,000
3 8 ,6 5 7,0 0 0
10 1.0 9 0 .0 0 0
$ 1,30 1,1* 83,0 0 0

RELEASE MORNING NEWSPAPERS,
Tuesday ^ January 29, 1952.

S -2947

The Secretary of the Treasury announced last evening that the
tenders for $1,300,000,000, or thereabouts, of 9l-day T r fasury M i l s
to be dated January 31 and to mature M a y 1 , 1952, which were offered
on January 24, were opened at the Federal Reserve Banks on
January 28.
The details of this issue are as follows:
Total applied for - $2,283,826,000
Total accepted
- 1,301,483,000 (includes $ 180,896,000
entered on a non-competitive
basis and accepted in full
at the average price shown
«
.
below)
Average price
- 99 .598/ Equivalent rate of discount approx.
1 .589$ per annum
Range of accepted competitive bids:
High

“ 99.625 Equivalent rate
1.484$
- 99.596 Equivalent rate
1.598$

Low

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

(49 percent of the amount bid for at the low price was accepted)
Federal Reserve
District________
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
A pplied for
$

37 ,219,000
1 ,590, 120,000
31 .116.000
65 .981.000
24.634.000

Total
Accepted
$

27 ,719,000

778.213.000
15 . 116.000
58 .026.000

54.110.000
114,319.000

19.359.000
31.882.000
143.527.000
24.617.000
6,465,000
56.812.000
38 .657.000
101.090.000

$2,283,826,000

$1,301,483,000

35 ,1 ^ 7,000

218.247.000
37 , 3^ 2,000
6.465.000

69.126.000

0O0

To those who have thus p l a c e d
I on the p l a n ,

ir
nd indeed to a l l

American c i t i z e n s ,

ith t h e i r d i r e c t and v i t a l
in i t ,
that

Interest

I want to g i v e the a s s u r a n c e
in p u t t i n g the p l a n into e f f e c t

we s h a l l maKe every p o s s i b l e e f f o r t
to see to i t t h a t t h e i r e x p e c t a t i o n s
of f a r - r e a c h i n g p u b l i c b e n e f i t are
f u l l y reaI I zed.

70

has approached c o n s i d e r a t i o n of
the p r o p o s a l .

The King Subcommittee,

as you Know, has spent
in c l o s e ,
m

careful

long months

study

o p e r a t i o n s of the Bureau o f

BKBI

I n t e r n a l Revenue,
mm

and Chairman

K i n g ' s s tron g statement

in support

of the plan in h i s appearance
b e f o r e the House E x p e n d i t u r e s
Committee i s ,

in my o p i n i o n ,

significan

the p r e s s and p u b l i c throughout
the c o u n t r y ,

from the C i v i l

ServI

Commission
and from many othe r
JT
sources.

The a c t i o n of the House

E x p e n d i t u r e s Committee I n support
the p l a n by r e j e c t i n g a r e s o i u t i o
disapprove

it,

after

intensive

examination o f the p l a n d u r i n g
it s hearings,

r e f l e c t s the

c o n s t r u c t i v e and c o o p e r a t i v e
s p i r i t with which the Congr es s

the B u r e a u ’ s s t r u c t u r e ,
therefore essential

It

Is

f o r the

l e g i s l a t i v e branch of the government
to be informed of t h i s p l a n and to
hear the r e a s o n s f o r

i t s need, f o r

without the s u p p o r t of the C o n g re s s
Z

\

V

v.

p

s

t h i s f a r - r e a c h i n g un de rt aK in g cannot
be expected to produce the h op ed -f or
resuIts.
We have been much heartened
by the s u ppo rt which the plan has
r e c e i v e d from the C o n g r e s s,

from

.

- 67 -

T h i s was o b v i o u s l y

intended by

Congres s to be the frameworK around
which the c o l l e c t i o n system was to
be b u i l t .

In any c a s e 1 would not
.

___

want to change t h a t b a s i c f e a t tire
of the B u r e a u ’ s s t r u c t u r e ,

sanctioned

f o r so long by the C ong res s,
CongressionaI
But t h e r e

without

Knowledge.
i s another reason why

the p l a n has been brought to Congress
and that

i s because the p la n

fundamenta11y and sweep i ngIy changes

(I)

the a b o l i t i o n o f the

s t a t u t o r y o f f i c e s of C o l l e c t o r s of
I n t e r n a l Revenue and
(2)

the u p - g r a d i n g of the top

adm inistrative p o s itio n s.''
' J

è

i

/ .-I

•
j

"

1¡KS

%

''

As to the f i r s t p o i n t ,

■''

the

p r e s e n t o r g a n i z a t i o n of the Bureau
rests,

as you Know, on 64 C o l l e c t o r s

o ffices,

sp e cifica lly

established

by s t a t u t e n e a r l y a c e n t u r y ago.

65

has been brought
to the a t t e n t i o n of the Congr es s
because,

as the P r e s i d e n t made c l e a r
f t i n v o l v e s the

g r a n t of C o n g r e s s i o n a l s a n c t i o n

\
in

a d d i t i o n to the e x e r c i s e of
a d m i n i s t r a t i v e .author I t y .

The

two f e a t u r e s of the reo rg a n i zat ion
i n i t e l y r e q u i r e the
o a r t ic i p a t i o n of Congres s a r e :

Next, merging o f the v a r i o u s
enforcement o p e r a t i o n s under one
a u t h o r i t y s ho u ld re d u ce enforcement
c o s t s by e l i m i n a t i n g d u p l i c a t i o n
o f e f f o r t a r i s i n g from the p r e s e n t
d i v i s i o n o f enforcement a c t i v i t i e s .
F u r t h e r d e c e n t f a t i z a t i o n of
a c t i v i t i e s to the f i e l d should
re d u ce c o s t s by e l i m i n a t i n g m u l t i p l e
h a n d l i n g o f mall and r e c o r d s .

•*

S a vi ng s w i l l

M *2
o 0

**

r e s u l t from

a wider use of mass p r o c e s s i n g
t e c h n i q u e s which w i l l

be made

p o s s i b l e by the c o n s o l i d a t i o n
and merging of o p e r a t i o n s .
Eventual placement of a l l
pe rso nne l

in one b u i l d i n g

in

each l o c a l i t y should make f o r
potentially

la rg e economies in

the use of both person nel and
space.

not s p e c i f i c e s t i m a t e s .
But I do want to i n d i c a t e some
a c t u a l a r e a s where s u b s t a n t i a l
economies are l i k e l y to r e s u l t from
e f f e c t u a t i o n of the plan.
The c o n s o I i d a t i o n and
s i m p l i f i c a t i o n of c e r t a i n f u n c t i o n s now
w id e l ym s c ait t e r e d

i s one of these areas.

Anpther i s the expected merging
I W
of o f f i c e s .
S till

an oth er i s the

prospective reduction

in t r a v e l

- 6i I
b e a r i n g on the c h a r a c t e r and c o s t
of the v e r i f i c a t i o n

and

enforcement j o b . M

The i m p o s s i b i l i t y of t r y i n g
to p i n - p o i n t s p e c i f i c d o l l a r and
cent s a v i n g s r e s u l t i n g from
reo rg an i zat ion was r e c o g n i z e d
also

in the h e a r i n g s on the

R e o r g a n i z a t i o n Act of

1949.

I t seems

c l e a r from the l e g i s l a t i v e h i s t o r y
of t h at Act t h a t what i s r e q u i r e d
a s s u r a n c e of s u b s t a n t i a l

savings,

is

• 60 —
a 2«to 4 - y e a r p e r i o d to a n a l y z e
and d ia g n o se i t s management problems
and to t e s t and experiment with
:i

\

possible so lu tio n s.

, r " v

:.v

,

/For t h is

ac t i v i ty \ i t sh o u ld employ the best
t a l e n t a nd'"t-echn i ques that are
available,

both w i t h i n and without

the Bureau o r g a n i z a t i o n .

The

Î

importance of an e f f e c t i v e
housekeeping job in c o n n e c t i o n with

j

the c o l l e c t i o n of the i n t e r n a l
revenue i s not l i m i t e d to the economies]
i n v o l v e d but has an important

Bureau pr oc edure w i f i r e q u i r e time
to be put into e f f e c t .

Shortages

of a p p r o p r i a t e o f f i c e space in
suitable

locations,

lack of h i g h l y

spec i a I i z e d mechantcaI equ ipment
(some of which should be
custom-designed f o r Bureau
o p e r a t i o n ^ ) and the sheer magnitude
of the t a s k make i t
||||||

#

effect

'

<

i m p o s s i b l e to
II

|y lV. ip‘,

(J

la r g e economies in t h i s

housekeeping job w i t h i n a b r i e f
p e r i o d of time.

The Bureau needs

amount o f s a v i n g s t h a t may r e s u l t ,
p a r t i c u l a r l y b e f o r e the plan

is

a c t u a l ly in o p e r a t i o n .
The d i f f i c u l t i e s of attempting
to ma11 p r e c i s e e s t i m a t e s o f
s a v i n g s were r e c o g n i z e d and
w ell-stated

in a r e p o r t to the

J o i n t Committee on I n t e r n a l Revenue
Ta x at io n

in 1948.

This report

as p u b l i s h e d by the J o i n t Committee
s ai d:

v

;

|

;

^

j

p

MAny s u b s t a n t i a l change in

and In the Bureau who have g iv en
i n t e n s i v e study to t h i s p la n,

and

have observed the economies r e s u l t i n g
from the management improvements
a l r e a d y put
few y e a r s ,

in e f f e c t over the l a s t
are c o n f i d e n t t h a t

e f f e c t u a t i o n of t h i s plan

is

c a p a b l e of p r o d u c in g p o t e n t i a l l y
■4

/

large savings.

I think

It rig h t

mI j111

and proper to p o i n t out here,
however, t h a t we cannot make a
s p e c i f i c e s t i m a t e of the a c t u a l

been e s t a b l i s h e d to meet the p u b l i c ’ s
needs j u s t as t h e r e a r e now.

As a

matter of f a c t , not only w i l l

th e r e

be the same f a c i l i t i e s

a v a i l a b l e to

t a x p a y e r s under the Plan as th e r e
are at the p r e s e n t time,
fa cilitie s

but these

w i l l be expanded to

i n c l u d e s e r v i c e s which are not now
available

in a i l

l o c a l i t i e s where

the Bureau now has C o l l e c t o r s '
o f f i ce s .
Those of u$ in the T r e a s u r y

d is t r i cts,
a D i s t r i c t Commissioner
o ffice

di r e c t i y
s I oner

if

IS

to taxpayers w i l l
in

be c u r t a i

s inee t h e r e w i l l

be

70 s u b o f f i c e s and the p r e s e n t ,
of zone o f f i c e s and p o s t s of duty
throughout the co u n t r y which have

the l a r g e r c l a s s e s of r e t u r n s .
are

There

14 f i e l d d i s t r i c t s which deal

only with the tax f r a u d a s p e c t s of
tax c a s e s .

There a r e

12 f i e l d

d i s t r i c t s of the Bureau *s A p p e l l a t e
Staff;

and th er e a r e 15 f i e l d

d i s t r i c t s engaged In the enforcement
of the a l c o h o l and tobacco t a x e s .
The Reorgan I ¿"It I on P la n , as I
have s a i d , would combine these
v a r i o u s types of o f f i c e s

Into not

more than 25 r e g i o n a l revenue

/

53 appointment of "not to exceed 25
D i s t r i c t Commissioners. "
the reason

is simple.

Here again

At the present

£

H i me t h e r e are almost 200
/

^ ^K -I I

[headquarters f i e l d
\

q

2

o f f ic e s reporting

the Commissioner through 7 d if fe re n t

separate

line d iv is io n s .

64 main o f f i c e s

There are

in the f i e l d engaged

in both c o l l e c t i n g taxes and in
a u d i t i n g the s m a l l e r r e t u r n s .
There a r e 39 f i e l d d i s t r i c t s

|
which

concern th em se lv es with a u d i t i n g

C iv il

S e r v i c e Commission.
I want to remark here t h a t as

body, the C o l l e c t o r s of I n t e r n a l
Revenue have done e x c e l l e n t work.
They have given g r e a t a s s i s t a n c e |tw
s o l v i n g our problems and in making
p o s s i b l e our accomplishments,
they have borne t h e i r f u l l

and

share

of the tremendously i n c r e a s e d
Revenue Servic'e work loads.
I would l i k e now to t e l l

you

are e l i g i b l e
position,

to be appointed to any

p r o v i d e d they meet the

q u a l i f i c a t i o n standards p re scrib e d
by the United S t a t e s C i v i l
Commission,

Service

A l l such appointments

ar e s u b j e c t to the approval of the
C iv il

S e r v i c e Commission,
The rem a in in g C o l l e c t o r s may

compete in C i v i l

S e r v i c e exa mi na tio ns

f o r ot her p o s i t i o n s

i f they meet

the s t a n d a r d s p r e s c r i b e d by the

p f 1'
|

- 50 I

mm

I t should thereby enable us to
a t t r a c t to the s e r v i c e and hold a bl e
men and women who are

interested

in

p u r s u i n g Government s e r v i c e as a
c a r e e r but who n a t u r a I

1y

want to I o o k

forward to opportun i t ie s f o r
advancement to top p o s i t i o n s

in

t h a t s e r v i c e f o r which they may be
qua I i f | e d .
Some of the p r e s e n t C o l l e c t o r s
have C i v i l

Service status.

They

jj| p n fl •;

'I

Jt

>■*

Lastly,

extension of C i v i I

S e r v i c e to the p o s i t i o n s rep Iac
a I I othe r

that of Co I I e c t o r ,
o ffices

in the Revenue S e r v i c e ,

e x c e p t i n g only that of Commissioner - i s on a high po I icy-max ing level
would f u r t h e r

n tax admin i s t r a t ion

the p r i n c i p l e s of the m e r it system
in an agency of our Government which
r:

j|
i l l ®

.

1 p r e - e m i n e n t I y should be f r e e of*any
.

h i n t or s u g g e s t i o n of f a v o r i t i s m or
i nfIuence.

Added to t h i s

impediment i s the

u n c e r t a i n t y of o f f i c e - t e n u r e which
a t t a c h e s to t h e i r p o s i t i o n .
Secondly, C o l l e c t o r s do not
v,/ , $-/y ■

tSS ?: fj '•I

hold the p o l i c y - m a k i n g type of
o f f i c e which should p r o p e r l y be
subject

F r e s i den t i a I appointment

T h e i r d u t i e s are p r i m a r i l y
a d m i n i s t r a t i v e and t e c h n i c a l and
are c l e a r l y of a type w h i c h should
be w i t h i n the framework of our
C iv il

S e r v i c e System.

OT f
O 1X

* 47 ~

e i t h e r o b s o l e t e or cumbersome f o r
the mountainous and complex job
t h a t c o n f r o n t s the Revenue S e r v i c e
today.

The p r e s e n t system of

a p p o i n t i n g C o l l e c t o r s of I n t e r n a l
Revenue i s one of these p r a c t i c e s .
S i n c e C o l l e c t o r s are not appointed
and cannot be removed by the
Commissioner of I n t e r n a l

Revenue

or m y s e l f , they a r e not f u l l y responsive
superiors

the c o n t r o l

of t h e i r

in the T r e a s u r y Department.

monies and as c o n d u i t s of
r e t u r n s , claims,

and other documents

which were r e q u i r e d to be forwarded
to Washington f o r p r o c e s s i n g and
decision.

In i t s day.

t h i s system

worked w e l l .
■Wi th our phenomena I economic

growth,

h o w e'v ef,

our t a x system has

u n d e r Oone a steady expansion with
a consequent need f o r c o n t i n u a l
r e a p p ra i saI

of p r a c t i c e s and

p r o c e d u r e s which have now become

in our h i s t o r y when our I n t e r n a l
■¡¡¡j H
Revenue s y s t e m was r e l a t i v e l y f r e e
"■. '' !

o fh ig h ly

technical

problems.

and

legal

The o f f i c i a l

r e s p o n s i b i I i t i es of C o l l e c t o r s
t h o s e days were r e l a t i v e l y

in

lig h t.

p rincip al

r e q u i r e m e n t was one o f

community

l e a d e r s h i p t o encourage

local

a c c e p t a n c e of F e d e r a l

The

taxes.

The t a x p a y e r base was n a r r o w and the
C o lle cto rs,
more or

in a r e a l

sense,

acted

l e s s as mere r e c e i v e r s of

mi
There are t h r e e r ea son s we are
urging t h is .

They are a 11 s im p l e

and they are a l l

sound.

/

-^First,

the system as we now

know i t under which C o l l e c t o r s of
Internal

Revenue are appointed by

the E x e c u t i v e Branch o u t s i d e the
C iv il

S e r v i c e i s an a r c h a i c one of

almost a c e n t u r y ' s s t a n d i n g .
‘ ^.>

It

\

was in t r od u c ed at a time b e f o r e th
m e r i t system was d e v i s e d ,

and then

i t was per petuated through decades

*» 43 *
I would l i k e now to t e l l
you why we are u r g i n g adoption of
t h i s plan of r e o r g a n i z a t i o n .

First,

l e t me comment on t h a t p a r t of
the plan which p r o v i d e s t h a t a l l
p o s i t i o n s - in our Revenue S e r v i c e ,
1

m

ipàtÈm

I

J IB

except the p o s i t i o n of Commissioner,
would be f i l l e d

by C i v i l

Service

men and women.

The p r i n c i p a l

e f f e c t of t h i s p r o v i s i o n would be
to a b o l i s h the 64 p o s i t i o n s of
C o l l e c t o r of I n t e r n a l

Revenue.

■ ■ ■ ■ ■ ■ ■ ■ I

■

BK'dm
si'.n
ö'iIf

- 42 1
the v a r i o u s f i e l d

and departments 1

o f f i c e s of the Revenue S e r v i c e
can be main ta ine d.
-S*—

i t f u n c t i o n s d i r e c t l y under
tne

Com m i s s i

oner and i s

therefore

independent of the r e s t of the
Bureau.

I t wi l l

c o r r e c t the major

•gets of the past

inspection

system which f u n c t i o n e d s e p a r a t e l y
in each major d i v i s i o n of the
Bureau and was r e s p o n s i b l e
e p a r a t e l y to each e n v i s i o n

»«a.

m m

mamSmâ

the Revenue Bureau.
The I n s p e c t i o n S e r v i c e

i s the

arm of the Comm i s s i oner, by which
the o p e r a t i o n s and the personnel
of the Revenue S e r v i c e a r e brought
under c o n t i n u o u s s c r u t i n y to i n s u r e
*

' 'xX

*

efficiencyXand
performance.

*

J

i n t e g r i t y of
The Commissioner

is

ex tending the work and expanding
the personnel

of the I n s p e c t i o n

S e r v i c e so that a c l o s e r ,

more

s y s t e m a t i c , d a y - t o - d a y check of

a c t i v i t i e s of the D i s t r i c t
Commissioners.

Another wi l l

s u p e r v i s e the I n s p e c t i o n S e r v i c e ,
and the t h i r d w i l l
technical

look a f t e r

m a tt e r s .

The Commissioner of I n t e r n a l
i appointed by the

Revenue wi I I

P re s ideri t , by and 'with the a d v i c e
of the i senate
Because of i t s fundamental
importance,

I want to r e v e r t f o r a

moment to the I n s p e c t i o n S e r v i c e o'

Commissioner at Washington.
The t o t a l of not to exceed
25 o p e r a t i n g f i e l d
w ill

o f f i c e r s who

r e p o r t d i r e c t l y to the

Commissioner at Washington under
the plan compares with almost
■ ,
200 f i e l d o f f i c e r s r e p o r t i n g
d i r e c t l y to Washington under the
present organizationaI

setup.

* •
/The plan p r o v i d e s f o r t h r e e
p

*• '

'

. % “■ A '

-

V-

'

’ iA '

^ '4

^

- V ;'’!

A s s i s t a n t C o m m i s s i o n e r s , one of
whom w i l l

s u p e r v i s e the o p e r a t i o n a l

d i s t r i b u t i o n of the
among the D i s t r i c t
Comm i s s i o n e r s .
Each of t he D i s t r i c t
Commi ssi oners wi l l
charge of a l l
matters

have complete

Revenue S e r v i c e

in h i s d i s t r i c t .

The D i s t r i c t Commis s i o n e r s
wi l l

be the onl y o p e r a t i n g f i e l d

o f f i c i a l s who wi l l

r e p o r t to the

fr

* 37 o fficia l

to be known as D i s t r i c t

Comm i ss i oner of I n t e r n a l

Revenue,

There w i l l be not to exceed
25 D i s t r i c t Comm i ss i one rs, each
having s u p e r v i s i o n over 2 or more
Deputy D i s t r i c t Commî s s i o n e r s .
The D i s t r i c t Commissioner w i l l
suitably

located

be

in h i s r e g i o n .

Each of the r e g i o n s s u p e r v i s e d
by a D i s t r i c t Commissioner w i l l
embrace g e o g r a p h i c a l

sections

a r e a s ro u g h l y c o r r e s p o n d i ng to the
p r e s e n t 64 i n t e r n a l

revenue

collectio n d is t r ic t s .
w ill

His o f f i c e

be p h y s i c a l l y s i t u a t e d

the c i t y

in

in which the o f f i c e of

C o l l e c t o r of I n t e r n a l Revenue; i s
located today.

Thus t h e r e w i l l

be

a Deputy D i s t r i c t Comm i ss i oner in
|

every s t a t e , and in the more
populous s t a t e s more than one.<
The 64 or more Deputy D i s t r i c t
Commissioners w i l l

r e p o r t to an

The number of such l o c a l
w i l l at
I

local

l e a s t equal

o ffices

the number of

o f f i c e s maintained today, and

additional

ones w i l l

be p r ov id ed

a s j po*pu I at I on changes make i t
a p p r o p r i a t e to e s t a b l i s h new ones.

Ill The men in charge in l o c a l
communities w i l l

report d ir e c t ly

to an o f f i c i a l to be known as a
/
Deputy D i s t r i c t Commissioner.
The Deputy D i s t r i c t Commissioner
w ill

have s u p e r v i s i o n of geogr ap hic al

revenue b u s i n e s s can complete
h is business there,

whether

it

be to pu rch as e revenue stamps,
to get tax forms,
get

to

in f o r m a ti o n or a s s i s t a rice

in maK ing out a tax r e t u r n
to pay
a I I -Classes o f tax,

to

have h i s r e t u r n checxed, or

a sse ssm e n t.

Z Z

kJ

.

*»

laws throughout the c o u n t r y .
| | M k ' ■ . ■ ' v:
In the t a x p a y e r ’ s l o c a l
community,

it w ill

o l a c e the g r e a t

bu IK of tax admin i s t r a t ion under
one man and e v e n t u a l l y uredefr. one
roof.

The p l a n a l s o puts

a l l Revenue employees in a
l o c a l community under one
man.
A taxpayer coming into
a local

o f f i c e on i n t e r n a l

in the p a s t .
A Revenue S e r v i c e of top
■«ifiRSfcssftfc1;i-:i ''

efficien cy,

■

v -. ■

of u n q u es t io n ed i n t e g r i t y ,

and of maximum economy o f o p e r a t i o n
certainly

i s something to which the

American people are e n t i t l e d .
maintenance of such a S e r v i c e

The
is the

s t r o n g e s t s o r t of p r o t e c t i o n f o r the
f u r t h e r s u c c e s s of our vo I untary
system of taxpayer co m p l ia n ce .
new, adequate,

A

up-to-date a rch itectu re

p r o v i d e under the e x i s t i n g s t r u c t u r e .
The R e o r g a n i z a t i o n P l a n w i l l
perm it us to b r i n g the Revenue
S e r v i c e f u l l y up to the r e q u i r e m e n t s
of the p r e s e n t day.

It w ill

enable

/
■V X - > V . X ’ • ■ ■■ . .

;■ •

/

•/

f

.

■V..,

':■
■
■
-, /
;•
./

/..

-

s' * ’.V • ,'

us to e s t a b l i s h maximum e f f i c i e n c y
of o p e r a t i o n ,
to the p u b l i c .
Service

and maximum s e r v i c e
It w ill

b r i n g the

into c l o s e r a c c o r d with the

m e r i t system of Government employment.
It w ill
which,

help remove t em p ta t io ns to
u n f o r t u n a t e l y , a few Revenue

X

in the p a s t year have been
p r o h i b i t e d from having any o u t s i d e
a c t i v i t i e s which might c o n f l i c t
fu ll

and p rop er d i s c h a r g e

with the Kefauver

All

Comm i t t e e s

of the above s t e p s r e f l e c t

the c o n s t a n t and ever

increasing

e f f o r t s on the p a r t of the Department
to p r o v i d e the best Revenue S e r v i c e
which

it

is humanly p o s s i b l e to

¡® s
11§p f

a continuing
program
Employees* tax r e t u r n s
s p e c i 1 1 a u d1 1,
Is too w i l l
(3)

a c o n t i n u i n g'Wv'

A l l c omp I a inis., of

have been and w i l l
promptl y

i sconduct

c o n t i n u e to

Investigated.
Qu ì c k d i s c i p I i n a r y a c t i o n

been taxen as soon as the f a c t s
o f each

were c l e a r l y Known
Co I I e c t o r s appo Ì

Q f*

2?

v JL

d i s h o n o r on the S e r v i c e ,

taKen s t r o n g s t e p s to remove any
f u r t h e r o p p o r t u n I t i e s f o r misconduct.
Among the a c t i o n s taxen toward t h i s
end have been the f o l l o w i n g :

(I)
and a l l

All

s u p e r v i s o r y employees

other employees d e a l i n g

with the p u b l i c or h a n d l i n g Government
11

funds - -

some 31,000

in a l l

been r e q u i r e d to execute and f i l e
with the Bureau a statement which
would r e f I e c t the i r

income and net

taxpayers.
Obviously,

the F e d e r a l revenue

system must have the p u b l i c ' s
c o n f i d e n c e and s u p p o r t .

This means

the s y s t e m ' s i n t e g r i t y must be
unquestfoned.
%

and I ,

Commissioner Dunlap

I *

with f u l l

President,

|V : .;; .

a u t h o r i t y from the

have acted promptly to

e l i m i n a t e from the Bureau of I n t e r n a l
Revenue

personnel who brought

c o n t r o v e r s i a 1 n a t u r e %as r e f l e c t e d
in c o u r t dec i s i o n s ,
in i s t r a t i o n ,

c o m p le x itie s of
wh i ch

and

arose.
y

These important
ill

lend impetus to the i n t e n s i f i e d
Bureau

e n f o r c e m e n t a c t i v i t i 0 S- o f
special
'

t a x f r a u d d r i v e and r a c K e t
. I

1

P

.

I /

squad worn t h r o u g h o u t the c o u n t r y ,
whi ch a r e f e r r e t i n g

out t he w i l l f u l

t a x e v a d e r s and r e s u l t i n g
re co ve ry of a d d it io n a l

pena 11 »es

in t h e

t a x e s and

the Government

o f the t a x p a y e r ’ s h e a l t h to
weigh a g a i n s t our dé t er m in â t ion
t h a t the c a s e
crim inal

is one

prosecution.

The h e a l t h

o f the taxpayer can more
taxen into account
the p r o s e c u t i n g a u t h o r i t y or
by j u d i c i a l

process.

We have a I so announced the
voIuntary
s u r e poI i c y .

abandoned

o f n e a r l y a t hou sand c a s e s o f t a x
fraud.

The new p r o c e d u r e w i l l

mean

a s a v i n g on t h e a v e r a g e o f f o u r
months or more

in each c a s e .

As a p a r t o f our r e e x a m I n a t I o n
of these procedures,

and to

e lim in a te delaying f a c t o r s ,

we have

r e c e n t l y announced two o t h e r
i m p o r t a n t c ha ng es

in e n f o r c e m e n t

p o licy.

‘

I

We announced t h a t we w i l l
l on g er p e r m i t t he c o l l a t e r a l

no

factor

the Bureau,

so t h a t one d i v i s i o n

t hr o ug h one o p e r a t i n g head can
more e f f e c t i v e l y

do t h e j o b

f o r m e r l y done by s e p a r a t e u n i t s .
'fie a r e t a k i n g f u r t h e r
to speed up a l l
have a l r e a d y

steps

our o p e r a t i o n s ,

in stitu ted

a new

p r o c e d u r e f o r the r e f e r e n c e o f
crim inal

tax cases d i r e c t l y

the f i e l d
Ju stice
change

from

to the Department o f

for prosecution.

This

i s the r e s u l t o f t h e s t u d y

v;

strong
service
internal

i ndependent

inspection

w i t h i n t he B ur eau o f
Rev enue,

reporting

to

t h e Comutss i o n e r .

ft# a r e a l s o p r o c e e d i n g w i t h
management

Improvements and the

c o m b i n a t i o n o f f u n c t i o n s w h i ch w i l l
permit g re a te r e f f i c i e n c y

w ithin

•

t h e scope o f t he p r e s e n t s t r u c t u r e .
This

i s bei ng a c c o m p l i s h e d ,

example,

for

by c omb i ni n g t h e s e p a r a t e

Wage and E x c i s e Tax D i v i s i o n s o f

d i v i s i o n s along f u n c t i o n a l

lines,

i t have s t r e a m l i n e d the f i e l d
o r g a n i z a t i o n by combining the
E x c i s e Tax Agents with the f i e l d
o f f i c e s •of the Income Tax D i v i s i o n ,
i t

have completed an a u d i t c o n t r o l

program aimed at more e f f e c t i v e
s e I e c t i o n of r e t u r n s f o r

investigat

I # have improved and s i m p l i f i e d tax
f orms and i n s t r u c t i o n s .

have been going ahead
s t e a d i l y with the s e t t i n g up of a

j Iv

19
first

g e-scale business users

of e l e c t r o n i c computers.

We have

modernized r e c o r d Keeping by
m i c r o f i l m i n g and o t h e r means.
have simp

*

m

m.

p r o c e d u r e s by

We

t a x co I I e c t i o n
introducing a

d e p o s it a ry r e c e i p t system.
up our
T h e r e have

Me have
ions.

improvements

in t he p e r f o r m a n c e o f v a r i o u s o t h e r
maj or
some

have r e o r g a n i z e d
in istra tive

-

1 8 -

f1
eti

To the extent t h a t the
p r e s e n t o r g a n i zatt on p e r m i t s ,
we have d e c e n t r a J ized o p e r a t i n g
f u n c t i o n s and stre ng th en ed
h e a d q u a r t e r s management c o n t r o l ,
fte have str e n g t h e n e d f r o n t - l i n e
enforcement,

n o t a b l y through the

c r e a t i o n of more than

spec

r a c K e t squads to run down c r i m i n a l
tax ev ad e rs,

f ie

have i n s t a l l e

t a b u l a t i n g machines end other
modern equipment.

became the

17

tanen have been in the g eneral
d i r e c t i o n of the

i z a I i on

P la n ’ s objectives,
be h e l p f u l

and I thinK i t

to you

f u r t h e r p r e s e n t a t i o n of the P l a n ’ s
baCKground,

if

I review ed some of

I have a l r e a d y r e f e r r e d to
s t u d i e s which were i n i t i a t e d

in

r o o t of the
a u ’ s problems.

Here are some

o f the s p e c i f i c r e s u l t s

the Hoover Commission,

have been

They have been drawn upon a l s o
in our c o n s t a n t e f f o r t s to c o r r e c t
weaKnesses and improve the
e f f i c i e n c y of the Revenue S e r v i c e
to the g r e a t e s t ex te nt p o s s i b l e
under e x i s t i n g a u t h o r i t y and
w i t h i n the e x i s t i n g o r g a n i z a t i o n a I
structure*

The s t e p s a l r e a d y

a d m i n i s t r a t i v e problems.

In

September 1948, Congress a u t h o r i z e d
the employment of an o u t s t a n d i n g
f i r m o f management e n g i n e e r s to
maKe a b r o a d - s c a l e study of the
Bureau.

The f i r m ' s r e p o r t and

recommendat ions were r e c e i v e d

in

August 1949,
The r e p o r t s and recommendations
from these s o u r c e s ,

as well as the

in f o r m a t i o n and s u g g e s t i o n s coming
from the C o n g r e s s i o n a I groups and

J\

t h e r e was e s t a b l i s h e d a

month
special

commi

on adm i n i s t r a t i on
II
T

e s t i o n s made/at
t h i s c o n f i î r e n c e ; the r eport of th i s
comm i t t e e was r e c e i v e d
1947.

In J u l y

1948,

in Augu s t

I created

a comraitti îe of h i g h l y qua 11f ! ed
men from both i n s i d e and o u t s i d e
the Government to d i r e c t the
ent s t u d i e s of the
of I n t e r n a l Revenue and to a ct as
consultant

in the s o l u t i o n of

■
US I i

author 1zed
the Treasury to
meritorious suggestion s
I n October

*

the first

large-scale conference in
I I
U

m

held in

Î

leíais of the
revenue service in order to
survey its operational and
inistrative problems*

A

considered,

in ord er not to d i s r u p t

or hamper d a y -t o -d a y o p e r a t i o n s ,
iith

these thoughts uppermost

mind,

|

in

initiated a

management improvement*

program

Ü

began with the i n t r o d u c t i o n of a
WorK S i m p l i f i c a t i o n Program, which
s t a r t e d at the g r a s s r o o t s by
Know

the accumula
'WMF®'

v

aft -viV-

'mwmw jsSPt

'A

<
•- W

m

M

M

, ?;-T'

e x p e r i e n c e of every employee.

is was our f i r s t s tep on the road
reorganiz

Con gress a s s i s

serv ice

inev i t a b i y has su f f©red

in many d i r e c t i o n s

from s t r e s s e s

strain s
When I tooK o f f i c e

I realized

t h e tremendous e x p a n s i o n whi ch

p e r i o d was c e r t a i n
o r g a n i z a t i onaI

.
any change

to

revealed

and p r o c e d u r a l

I
m

o f t h e Revenue S e r v i c e
we I I t h o u g h t out

every

Act of I960,

the Excess P r o f i t s

Tax Act of I960 and the Revenue
Act of

1951.

Moreover, the se

devel opraents have been accompanied
by an i n c r e a s e

in a p p e i l a t e worx
♦

and c a s e s

in l i t i g a t i o n ;

at the

p r e s e n t time the unco I l e c t e d tax es
bacKed up in the a p p e l l a t e
p i p e l i n e amount to $ 1 . 8 b i l l i o n .
raj»

With a c o n t i n u i n g expansion
of these tremendous p r o p o r t i o n s ,
the o r g a n i z a t i o n of the revenue

9
the l a s t s e v e r a l

y e a r s stand at

almost f i v e t im es the 1940 l e v e l .
The heavy volume of r e c e n t
tax

legislation,

designed to

f i n a n c e defense e x p e n d i t u r e s ,
has s e v e r e l y t r i e d the a d m i n i s t r a t i v e
f o r c e s of the revenue s e r v i c e .

In

the space of a l i t t l e more than
a year the B u r e a u ’ s s t a f f was
r e q u i r e d to a s s i m i l a t e f o u r
major enactments - • the S o c i a l
S e c u r i t y Act of

1950, the Revenue

-

fraud c a se s,

8

-

beginning w ith the

d r i v e on blaCK m a r K e t e e r s
and e x t e n d i n g

in

1945,

th ro u g h th e c u r r e n t

d r i v e on r a c K e t e e r s ,

has ab so rbe d

more and more tim e and manpower.
In crease

in p e r s o n n e l

has not

Kept pace w i t h t h i s i n c r e a s e In
burden.

However,

th e number o f

r e t u r n s a u d i t e d has been more than

lit

1

^

'|

' dL

doubled o ve r the p a s t f i v e
The a d d i t i o n a l
re su ltin g

$('|.««**§¡1
years.

tax assessm ents

from a u d i t

in each of

The

i n c r e a s e d worn load has by

no means been

l i m i t e d to such m a t t e r s

as th e p r o c e s s i n g o f r e t u r n s and
tax c o lle c t io n

and r e f u n d p r o c e d u r e s .

T h e r e has been as s t r i k 1ng a growth
in t h e o t h e r main o p e r a t i o n a l
r e s p o n s i b i I i t i e s of the revenue
s e r v i c e -- tax enforcem ent,

r

adm i n i s t r a t i on o f new t a x s t a t u t e s
and s e t t l e m e n t o f d i s p u t e d c a s e s .

On the enforcement f r o n t ,
in v e stig a tio n

i

the

and p r o s e c u t i o n o f

.vi$
ïïé§ÊË

S Ê Ê$■\ïifm'f^'Q“**

of

t h e broaden
personal

base o f

income t a x ,

sa I a r y w i t h h o l d i n g was i n t r o d u c e d ,
c r e a t i n g many new

s*

ems, no t
o f mass

l e a s t o f which was
re fu n d in g o p e ra tio n s
1-J1lf1l
in i

1

p ro fits

tax,

th e e x t e n s i o n o f s o c i a l

s e c u r it y coverage,
tax,

and t h e w a g e rin g

has e a c h made a new and

su b sta n tia l

c o n t r i b u t i o n to t h e

w orkload.

Our t a x s y s t e m today bears

scarce I y

r e s e m b l a n c e to t h a t of

111®

o f t h e wot k I oad
In te rn al

Revenue

in r e c e n t y e a r s
have a

t a k fen to meet t h e s e
m
m

r e v o I u t Io n a r y

in crease

r e s p o n s l b 11 I t i e s o f
s e r v ic e to meet

in t h e
r e v enue

e x i g e n e i es

and d e f e n s e f i n a n c i n g .

In

number o f r e t u r n s has
in creased f o u r f o ld
ta x col I e c t io n s t e n f o l d .

vo

HllEæiàl

S e n a t e and House A p p r o p r i a t i o n
C o m m it t e e s .

The e x t e n s i v e s t u d i e s

o f th e Hoover Commission on
O r g a n i z a t i o n o f th e E x e c u t i v e
B r a n c h o f t h e Government produced
f i n d i n g s and recom m endations
of great a id .
In o r d e r t h a t you might b e t t e

IH
IriSftMÄ'i;

u n d e r s t a n d t h e bacKground o f t h e
Reorgan i z a t i on P l a n ,
firs t

I sh a ll

a d d r e s s m y s e l f to t h e b a s i c

il. ':

p ro b le m s r e s u l t i n g

from t h e growth

W

grant of a u th o rity

and powers under

the e a r l i e r p a re n t
26.

A s s i s t a n c e and

encouragement came a l s o from t h e
S e n a t e F i n a n c e C o m m itte e ,

the

J o i n t Committee on I n t e r n a
T a xa tio n ,

th e House Committee on
House

Mi
11

E x p e n d i t u r e s C o m m itte e ,

th e

s r Co m m ittee,
Subcommittee o f the House Ways and
Means C o m m itte e ,

and a 1so t h e

i s a m a t t e r which has been o f
deep c o n c e r n to me s i n c e
my p r e s e n t o f f i c e

I Know t h a t

I assumed

in J u n e o f

1946.

i t has been a

matter of deep co ncern e q u a l l y to
the Congress and i t s committees.
The many and pa instaK ing s t u d i e s
I;

w hich

led to t h e p r e p a r a t i o n o f

R e o r g a n i z a t i o n P l a n No.

I

included

v a l u a b l e worn by t h i s C o m m itte e ,
p a rtic u la rly

in c o n n e c t i o n w i t h t h e

the Committee:

I welcome t h i s

ity to d i s c u s s with you
R e o r g a n i z a t i o n Plan

. I

p r o v i d i n g f o r r e o r g a n i z a t i o n of the
au of i n t e r n a l Revenue.
Plan,

T h is

which the P r e s i d e n t upon my

recommendation t r a n s m i t t e d to the
Gongress on January
c u l m i n a t i n g step

14,

is a

in the c o n t i n u i n g

p r o c e s s of improving the e f f i c i e n c y
and i n t e g r i t y of the Revenue S e r v i c e

224
TREASURY DEPARTMENT
Washington

Statement by Secretary Snyder before
Senate Committee on Expenditures
January 30, 1952
Mr. Chairman and Members of the Committee:
„„
this.opportunity to discuss with you Reorganization Plan
No. 1 ox 1952, providing for reorganization of the Bureau of Internal
Revenue. This Plan, which the President upon my recommendation trans­
mitted to the Congress on January lU, is a culminating step in the
continuing process of improving the efficiency and integrity of the
Revenue Service, The organizational improvement of the Bureau is a
office

d6eP °°n0ern

t0

"le Sin°e

1

aSS™ ed

Present

I
know that it has been a matter of deep concern equally to the
Congress and its committees. The many and painstaking studies which
ied to the preparation of Reorganization Plan No. 1 included valuable
work by this Committee, particularly in connection with the grant of
authority and powers under the earlier parent Reorganization Plan
,i+L«AS+iStTn°e+and ei^ouragement cam® also from the Senate Finance
Committee, the Joint Committee on Internal Revenue Taxation, the House
Committee on Ways and Means, the House Expenditures Committee, the
Kefauver Committee, the King Subcommittee of the House Ways and Means
Committee, and also the Senate and House Appropriation Committees»
The extensive studies of the Hoover Commission on Organization of the
ofegreateaid?

th® G°Vernment Produced findings and recommendations

In order that you might better understand the background of the
Reorganization Plan, I shall first address myself to the basic
problems resulting from the growth of the workload of the Bureau of
Internal Revenue in recent years and the steps which have already
been taken to meet these problems, The last decade has brought a
revolutionary increase in the responsibilities of the revenue service
to meet the exigencies of war and defense financing. In this decade
the number of returns has increased fourfold and the volume of tax
collections tenfold. With the broadening of the base of the personal
income tax, wage and salary withholding was introduced, creating many
new problems, not the least of which was that of mass refunding
operations. The excess profits tax, the extension of social security
coverage,^ and the wagering tax, has each made a new and substantial
r ^ trM Utl°n4-t0+ih! wiri1°ad* 0ur tax system today bears scarcely any
resemblance to that of 191(0.
'
'

S-29i*8

o f™)r*

2

-

-

The increased workload has by no means been limited to such
matters as the processing of returns and tax collection and refund
procedures. There has been as striking a growth in the other main
operational responsibilities of the revenue service -«■ tax enforce«ment, administration of new tax statutes and settlement of disputed
cases. On the enforcement front, the investigation and prosecution
of fraud cases, beginning with the drive on black marketeers in 191*5,
and extending through the current^drive on racketeers, has absorbed
more and more time and manpower.
Increase in personnel has not kept pace with this increase in
burden. However, the number of returns audited has been more than
doubled over the past five years. The additional tax assessments
resulting from audit in each of the last several years stand at
almost five times the 19&0 level.
, fonThe heavy volume of recent tax legislation, designed to finance
efense expenditures, has severely tried the administrative forces of
the revenue service. In the space of a little more than a year the
Bureau s staff was required to assimilate four major enactments —
the Social Security Act of 1950, the Revenue Act of 1950, the Excess
LrS
Ta? \Ct ° V 950 and the Re~
of 1951. Moreover^ these
evelopments have been accompanied by an increase in appellate work
w i . CJSeS
at 'the present time the uncollected taxes
backed up in the appellate pipeline amount to $1.8 billion.
With a continuing expansion of these tremendous proportions,
m ^ v ° d Ì ^ + ? o 10V f th! revenue Eervi=e inevitably has suffered in
many directions from stresses and strains*

8rii,^ t 00^

office I realized that the tremendous expansion
Place d?rlng the World War 11 Period was certain to have
+h_,
0Jganizftl0Jal and procedural weaknesses. I realized also
well +h L C^ nge+in Ì'Ìu orSanization of the Revenue Service had to be
or ha^ner
eV@Ì? detail.considered, in order not to disrupt
mind I initiated
opera'tlo*Js* Wi-fch these thoughts uppermost in my
h_ *
a program
management improvement. The program
stfrte^at
ÌÌÌintr0dUCtdOn of a Work Simplification ProgramfwSch
* * 5® grass roots by taPPing the accumulated knowledge and
experience of every employee. This was our first step on the road
p v5?orfaniza'tl0n* Congress assisted us in 19l*6 by the passage of
“ •

-

«

» »

y e a r c t s I S r i n t s h i ^ t ^ r ^ S
departmentSVo S c i a l s
a l ^ L r i ! nUe
servicein order to survey its operational and
Estive problems. A month later there was established a
pecial committee on administration to analyze the suggestions made
f

/">o o
¿26
3 «•

at this conference$ the report of this committee was received in
August 19i;7. In July 191*8, I created a committee of highly qualified
men from both inside and outside the Government to direct the manage­
ment studies of the Bureau of Internal Revenue and to act as consultant
in the solution of administrative problems. In September 19i*8,
Congress authorized the employment of an outstanding firm of management
engineers to make a broad-scale study of the Bureau. The firm’s report
and recommendations were received in August 19^9.
The reports and recommendations from these sources, as well as
the information and suggestions coming from the Congressional groups
and the Hoover Commission, have been drawn upon in the development
of the reorganization plan now before you.
They have been drawn upon also in our constant efforts to
correct weaknesses and improve the efficiency of the Revenue Service
to the greatest extent possible under existing authority and within
the existing organizational structure. The steps already taken have
been in the general direction of the Reorganization Plan’s objectives,
and I think it would be helpful to you, as a further presentation of
the Plan’s background, if I reviewed some of these steps.
I have already referred to studies which were initiated in
order to get at the root of the Bureau’s problems* Here are some of
the specific results.
To the extent that the present organization permits, we have
decentralized operating functions and strengthened headquarters
management control. We have strengthened front-line enforcement,
notably through the creation of more than 100 special racket squads
to run down criminal tax evaders. We have installed tabulating
machines and other modern equipment. We became the first largescale business users of electronic computers. We have modernized
record keeping by microfilming and other means. We have simplified
tax collection procedures by introducing a depositary receipt system.
We have speeded up our refunding operations.
There have been improvements in the performance of various
other major tasks. We have reorganized some of the major administrative
divisions along functional lines. We have streamlined the field
organization by combining the Excise Tsx Agents with the field
offices of the Income Tax Division. We have completed an audit control
program aimed at more effective selection of returns for investigation.
We have improved and simplified tax forms and instructions.
We have been going ahead steadily with the setting up of a
strong independent inspection service within the Bureau of Internal
Revenue, reporting to the Commissioner.

C(L (
- u -

We are also proceeding with management improvements and the
combination of functions which will permit greater efficiency within
the scope of the present structure* This is being accomplished, for
example, by combining the separate Wage and Excise Tax Divisions of
the Bureau, so that one division through one operating head can more
effectively do the job foraierly done by separate units*
We are taking further steps to speed up all our operations. We
have already instituted a new procedure for the reference of criminal
tax cases directly from the field to the Department of Justice for
prosecution. This change is the result of the study of nearly a
thousand cases of tax fraud. The new procedure will mean a saving on
the average of four months or more in each case.
As a part of our reexamination of these procedures, and to
eliminate delaying factors, we have recently announced two other
important changes in enforcement policy.
We announced that we will no longer permit the collateral factor
of the taxpayer1s health to weigh against our determination that the
case is one warranting criminal prosecution. The health of the
taxpayer can more appropriately be taken into account by the prosecuting
authority or by judicial process.
We have also announced the abandonment of the former voluntary
disclosure policy. We abandoned this policy because of its controversial
nature as reflected in court decisions, complexities of administration,
and the abuses which arose.
These important policy changes will lend impetus to the
intensified enforcement activities of the Bureau1s special tax fraud
drive and racket squad work throughout the country, which are ferreting
out the willful tax evaders and resulting in the recovery of additional
taxes and penalties due the Government.
These new procedures will in nowise reduce the rights of honest
taxpayers.
Obviously, the Federal revenue system must have the public1s
confidence and support. This means the system1s integrity must be
unquestioned. Commissioner Dunlap and I, with full authority from
the President, have acted promptly to eliminate from the Bureau of
Internal Revenue any personnel who brought dishonor on the Service.
We have taken strong steps to remove any further opportunities for
misconduct. Among the actions taken toward this end have been the
following:

(1) M l supervisory employees and aLl other employees
dealing with the public or handling Government funds —
some 31,000 in all — have been required to execute and file
with the Bureau a statement which would reflect their income
and net worth# This will be a continuing program#
(2) Employees1 tax returns have been subjected to special
audit# This too will be a continuing program#
(3) All complaints of misconduct have been and will
continue to be promptly investigated#

(h) Quick disciplinary action has been taken as
soon as the facts of each case were clearly known#
(£) All Collectors appointed in the past year have
been prohibited from having any outside activities which
might conflict with the full and proper discharge of their
duties#
(6) We have cooperated fully with the Kefauver and
King Committees#
All of the above steps reflect the constant and ever increasing
efforts on^the part of the Department to provide the best Revenue
Service which it is humanly possible to provide under the existing
structure#
^The Reorganization Plan will permit us to bring the Revenue
Service fully up to the requirements of the present day. It will
enable us to establish maximum efficiency of operation, and maximum
service to the public# It will bring the Service into closer accord
with the merit system of Government employment# It will help
remove temptations to which, unfortunately, a few Revenue Service
employees have succumbed in the past#
A Revenue Service of top efficiency, of unquestioned integrity,
and of maximum economy of operation certainly is something to which
the American people are entitled# The maintenance of such a Service
is the strongest sort of protection for the further success of our
voluntary system of taxpayer compliance, A new, adequate, up-to-date
architecture has been planned for the Revenue Service with these
objectives in mind.
This reorganization plan, which grew out of your studies and
efforts and ours, will localize Revenue Service operations# Its
effect will be to bring the Revenue Service closer to the taxpayer in
is own communityo The plan will leave to the Washington headquarters
oi the Service the proper duty and responsibility of establishing
standards and policies for uniform application, administration and
eniorcement of the revenue¿laws throughout the country.

Cù 3
-

6

«

In the taxpayer’s local community,, it will place the great bulk
of tax administration under one man and eventually under one roof. The
plan also puts all Revenue employees in a local community under one
man.
A taxpayer coming into a local office on internal revenue business
can complete his business there, whether it be to purchase revenue
stamps, to get tax forms, to get information or assistance in making
out a tax return of any type, to pay any and all classes of tax, to
have his return checked, or to appeal a proposed assessment.
The number of such local offices will at least equal the number
of local offices maintained today, and additional ones will be provided
as population changes make it appropriate to establish new ones.
The^men in charge in local communities will report directly to
an official to be known as a Deputy District Commissioner.
The Deputy District Commissioner will have supervision of
geographical areas roughly corresponding to the present 61* internal
revenue collection districts. His office will be physically situated
m the city in which the office of Collector of Internal Revenue is
located today. Thus there will be a Deputy District Commissioner in
every state, and in the more populous states more than one.
The 61* or more Deputy District Commissioners will report to an
official to be known as District Commissioner of Internal Revenue.
. ^kere will be not to exceed 25 District Commissioners, each
aving supervision over 2 or more Deputy District Commissioners.
District Commissioner will be suitably located in his region.

The

Each of the regions supervised by a District Commissioner will
embrace geographical sections which will insure a fairly adequate
distribution of the workload among the District Commissioners.
Each of the District Commissioners will have complete charge of
all Revenue Service matters in his district.
The District Commissioners will be the only operating field
officials who will report to the Commissioner at Washington.
The total of not to exceed 25 operating field officers who will
report directly to the Commissioner at Washington under the plan
compares with almost 200 field officers reporting directly to Washington
under the present organizational setup.

230
- 7The plan provides for three Assistant Commissioners* one of
whom will supervise the operational activities of the District
Commissioners. Another will supervise the Inspection Service* and
the third will look after technical matters*
The Commissioner of Internal Revenue will be appointed by the
President, by and with the advice of the Senate.
Because of its fundamental importance, I want to revert for a
moment to the Inspection Service of the Revenue Bureau.
The Inspection Service is the arm of the Commissioner* by which
the operations urd the personnel of the Revenue Service are brought
under continuous scrutiny to insure efficiency and integrity of
penormance. The Commissioner is extending the work and expanding the
personnel of the inspection Service so that a closer, more systematic,
day-to-day check of the various field and departmental offices of the
Revenue Service can be maintained.
It functions directly under the Commissioner and is therefore
independenb of the rest of the Bureau. It will correct the major
defects of the past inspection system which functioned separately in
each major division of the Bureau and was responsible separately to
each division head.
I would like now to tell you why we are urging adoption of this
plan of reorganization. First, let me comment on that part of the
plan which provides that all positions in our Revenue Service, except
the position of Commissioner, would be filled by Civil Service men
and women. The principal effect of this provision would be to
abolish the 6I4
. positions of Collector of Internal Revenue. There are
three reasons we are urging this. They are all simple and they are
all sound.
First, the system as we now know it under which Collectors of
Internal Revenue are appointed by the Executive Branch outside the
Civil Service is an archaic one of almost a century’s standing. It
was introduced at a time before the merit system was devised, and
then it was perpetuated through decades in our history when our Internal
Revenue system was relatively free of highly technical and legal
problems. The official responsibilities of Collectors in those days
were relatively light. The principal requirement was one of
community leadership to encourage local acceptance of Federal taxes.
The taxpayer base was narrow and the Collectors, in a real sense,
acted more or less as mere receivers of tax monies and as conduits
of returns, claims, and other documents which were required to be
forwarded to Washington for processing and decision. In its day,
this system worked well.

-

8

-

With our phenomenal economic growth, however, our tax system has
undergone a steady expansion with a consequent need for continual
reappraisal of practices and procedures "wrhich have now become either
obsolete or cumbersome for the mountainous and complex job that
confronts the Revenue Service today* The present system of appoint«»
ing Collectors of Internal Revenue is ope of these practices. Since
Collectors are not appointed and cannot ;be removed by the Commissioner
of Internal Revenue or myself, they are not fully responsive to the
control of their superiors in the Treasury Department. Added to this
impediment is the uncertainty of office «»tenure which attaches to their
position.
Secondly, Collectors do not hold the policy-making type of
office which should properly be subject to Presidential appointment.
Their duties are primarily administrative and technical and are
clearly of a type which should be within the framework of our Civil
Service System.
Lastly, extension of Civil Service to the positions replacing that
of Collector, and all other offices in the Revenue Service, excepting
only that of Commissioner — which is on a high policy-making level in
tax administration — would further the principles of the merit system
m an agency of our Government which pre-eminently should be free of
any hint or suggestion of favoritism or influence.
It should thereby enable us to attract to the service and hold
able men and women who are interested in pursuing Government service
as a career but who naturally want to look forward to opportunities
or advancement to top positions in that service for which they may
be qualified.
J J
Some of the present Collectors have Civil Service status. They
k® appointed to any position, provided they meet the
qualification standards prescribed by the United States Civil Service
Commission, All such appointments are subject to the approval of the
Civil Service Commission.
»
remaining Collectors may compete in Civil Service examinations
n.r., !?er Positions if they meet the standards prescribed by the
Civil Service Commission.

1 w,ant to remark here that as a body, the Collectors of Internal
Kevenue have done excellent work. They have given great assistance
“ s°r;vin2 our problems and in making possible our accomplishments,
R»l!heychaV? b0rne their ful1 share of the tremendously increased
revenue Service work loads.
lik® now t0
you why the Plan provides for the
PP mtment of "not to exceed 25 District Commissioners." Here again
reason is simple. At the present time there are almost 200

232
- 9 headquarters field offices reporting to the Commissioner through 7
different separate line divisions. There are 6h main offices in the
field engaged in both collecting taxes and in auditing the smaller
returns. There are 39 field districts which concern themselves with
auditing the larger classes of returns* There are id field districts
which deal x>nly with the tax fraud aspects of tax cases. There are 12
field districts of the Bureau*s Appellate Staff; and there are 15
field districts engaged in the enforcement of the alcohol and tobacco
taxes.
The Reorganization Plan, as I have said, would combine these
various types of offices into not more than 25 regional revenue
districts, each of which would be headed by a District Commissioner
accountable directly to the office of the Commissioner in Washington,
1 would like to emphasize as strongly as I can at this point, however,
that this does not mean that service to taxpayers will be curtailed
in any area since there will be up to 70 suboffices and the present
network Of zone offices and posts of duty throughout the country
which have been established to meet the public*s needs just as there
are now. As a matter of fact, not only will there be the same
facilities available to taxpayers under the Plan as there are at the
present time, but these facilities will be expanded to include
services which are not now available in all localities where the
Bureau now has Collectors* offices.
Those of us in the Treasury and in the Bureau who have given
intensive study to this plan, and have observed the economies result­
ing from the management improvements already put in effect over the
last few years, are confident that effectuation of this plan is
capable of producing potentially large savings. I think it right
and proper to point out here, however, that we cannot make a specific
estimate of the actual amount pf savings that may result, particularly
before the plan is actually in operation.
The difficulties of attempting to make precise estimates of
savings were recognized and well-stated in a report to the Joint
Committee on Internal Revenue Taxation in 19)48, This report as
published by the Joint Committee said:
"Any substantial change in Bureau procedure will require
time to be put into effect. Shortages of appropriate office
space in suitable locations, lack of highly specialized
mechanical equipment (some of which should be custom-designed
for Bureau operations) and the sheer magnitude of the task
make it impossible to effect large economies in this house­
keeping job within a brief period of time. The Bureau needs
a 2-to h-year period to analyze and diagnose its management
problems and to test and experiment with possible solutions.

For this activity it should employ the best talent and
techniques that are available, both within and without
the Bureau organization. The importance of an effective
housekeeping job in connection with the collection of
the internal revenue is not limited to the economies
involved but has an important bearing on the character and
cost of the verification and enforcement job.”
The impossibility of trying to pin-point specific dollar and
cent savings resulting from reorganization was recognized also in the
hearings on the Reorganization Act of 19k9* It seems clear from the
legislative history of that Act that what is required is assurance of
substantial savings, not specific estimates.
But I do want to indicate some actual areas where substantial
economies are likely to result from effectuation of the plan.
The consolidation and simplification of certain functions now
widely scattered is one of these areas.
Another is the expected merging of offices.
Still another is the prospective reduction in travel expenses.
Savings will result from a wider use of mass processing technique
which will, be made possible by the consolidation and merging of
operations.
Eventual placement of all personnel in one building in each
locality should maxe for potentially large economies in the use of
both personnel and space.
Next, merging of the various enforcement operations under one
authority should reduce enforcement costs by eliminating duplication
of effort arising from the present division of enforcement activiites.
Further decentralization of activities to the field should
reduce costs by eliminating multiple handling of mail and records.
Reorganization of the Bureau of Internal Revenue has been brought
to the attention of the Congress because, as the ^resident made clear
in his message, it involves the grant of Congressional sanction in
addition to the exercise of administrative authority. The two feature
of the reorganization plan which definitely require the participation
of Congress are;
(1 ) the abolition of the statutory offices of
Collectors of Internal Revenue and
(2) the up-grading of the top administrative
positions. ,

-

11

-

As to the iirst point, the present organization of the Bureau
rests, as you know, on 6h Collectors* offices, specifically established
by statute nearly a century ago« This was obviously intended by
Congress to be the framework around which the collection system was
to be built* In any case I would not want to change that basic
feature of the Bureau*s structure, sanctioned for so long by the
Congress, without Congressional knowledge.
But there is another reason x\rhy the plan has been brought to
Congress, and that is because the plan fundamentally and sweepingly
changes the Bureau*s structure. It is therefore essential for the
legislative branch of the government to be informed of this plan and
to hear the reasons for its need, for without the support of the
Congress this far••reaching undertaking cannot be expected to produce
the hoped-for results.
¥e have been much heartened by the support which the plan has
received from the Congress, from the press and public throughout the
country, from the Civil Service Commission and from many other sources.
The action of the House Expenditures Committee in supporting the plan
by rejecting a resolution to disapprove it, after intensive examination
o
he plan during its hearings, reflects the constructive and
cooperative spirit with which the Congress has approached consideration
of the proposal. The King Subcommittee, as you know, has spent long
months in close, careful study of the operations of the Bureau of
Internal Revenue, and Chairman King*s strong statement in support of
the plan in his appearance before the House Expenditures Committee is.
m my opinion, significant.
To those who have thus placed their stamp of approval on the
plan, and indeed to all American citizens, with their direct and vital
interest in it, I want to give the assurance that in putting the plan
into effect we^shall make every possible effort to see to it that
their.expectations of far-reaching public benefit are fully realized.

0O0

- 3 MiSft
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
lv
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. U18* 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

4
-

2

-

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.

Imediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement vail be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and Iris 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

FebruaryJ, 1952

, in cash or other immediately avail­

able funds or in a like face amount of Treasury bills maturing Fe b r w y ^ 19g J
Cash and exchange tenders will receive equal treatment.

Cash adjustments mil bj

made for differences between the par value of maturing hills 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,

j

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 amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

or other excise taxes, whether Federal or State, but shall he exemp

all taxation now or hereafter Imposed on the principal or interest ther

j

W' *

axfcixfriMiami

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 31> 1952

The Secretary of the Treasury, by this public notice, invites tenders for
$1,300,000,000 , or thereabouts, of
91
-day Treasury bills, for cash and
9$
~~
$E$
in the amount of $ 1,300,275,000 ,
in exchange for Treasury bills maturing
February 7. 1952
j/to be issued on
SPBJn
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
vdll mature
interest.

The bills of this series vd.ll be dated February 7, 1952_____ , and
May 8, 1952
, when the face amount will be payable without
_-----— -rry---- ----They vdll 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, February t, 195^
--------a s r ----Tenders will not be received at the Treasury Department, Washington,

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of
decimals, e. g., 99*92£.

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 vdll
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,

T R E A S U R Y

D EP A R T M EN T

Information Service

WASHINGTON, D .C

RELEASE MORNING NEWSPAPERS,
Thursday, January 31, I952 !

S -2949

tender^for^l^EOO
oonto^nTreaS■^v?^
,
notice.
Invites
tenders
1 or $1,300,000,000,
or thereabouts,
of Ql-day
Treasurv
bill«?
“

11 »

- « « n s

« - » ««.tjti™ ¿ i f ^ T
S L S ? S S , * “sl=
provided. The bills of this series will be dated lebrSary 7 195?
and will mature May 8 , 1952, when the- face amount will be payable
without interest
They will be issued in bearer form only and L
t“

5;O? L ? ; rlii 0v
“ i J 5 : 000' ♦ “ ’“ O' *100’00°. $500*000° and

? f.’S ’M S

Monday, February
kr, 1QS2
oui uvii,, *
±y"jc..
multiple
nffl

”SK;„BSSaS S 01“”

Tpnrtft«
lenaers twViiii
n not be t p■o ^taiidard
p Iu p H o +- tlme*

EBCh tender must be for an even
and in the case of competitive tenders the nrice

SSlSSL? f T “S SSo'o.iri?or io°' Mth
| £ f » l

Jo'md^on'th. p S l n M

? S ™ ° M er S ; a M n f l “ th ,

S&mSSSZSSl S “ « S n “ ppll'a 6J p*a!™

1

-

S S r F ”™ * “ " “ “ "
'
“ i s s S h p° S “ e
tS i r e d eu'” 1‘
r l°nUt- ^ p0Slt from incorporated banks and trust companies and from

2 ° “

le ^ r e c o g n i z e d dealers ln investment securi?ies

Tended

aaount o r ? r Z
e a surj
uri%
i u rSa p
p i i e d l3for,
f o r yaie?
t °f'J
face
D11Japplied
unless
the tendersofare
of trust company 11 @XPreSS guarant^ of payment by an incorporated bank
Pederifnpdiatelyr,after the closinS hour, tenders will be opened at the
K
m f ^ a e ^ t h e % f anf e s > A l l o w i n g which pub!icPa n n o u L e
Price range of f c c p n t ^ \ ? r
STy °f
» « » o u r y o f the amount and
advised of t-hl accepted bids.
Those submitting tenders will be
Treasury
thereof• The Secretary of the
tenders
reserves the right to accept or reject any or all
shall be fine!
<=,°? •lnt.p 2'rt, and his action in an y such respect
(tenders f o r f p n n nnnJ® L t0 th?f? reservations, non-competitive
«11 be accetted’in
full at the average
state?
ce from
°ne bidder
opted in full
pricepN (in
three anT
decimals)
of

2
accepted competitive b i d s . Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Bank on February 7, 1952, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
February 7, 1952.
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 /
ion, as such, and loss from the sale or other disposition of
ex
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
cr 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, cr 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, proscribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Fedora! Reserve Bank or Branch.

oOo

-

8-

An event of current and historic importance affecting the Secret
Service took place during the year, Chief Baughman said.

Congress passed

a bill which gave permanent legal status to the Secret Service by
defining its powers and duties in a Federal statute*

Since its estab­

lishment in 1865 the Secret Service derived its authority from appropriation
acts passed by the Congress every year.

The new law, cited as Public Law 79>

82nd Congress, did not grant the Secret Service any new duties or powers
except the power to serve arrest warrants.

It was approved by the President

on July 16«
At the close of the year, the Secret Service also released a new
16 millimeter educational motion picture, MThe Secret Service Story,”
showing how to detect counterfeit bills and how storekeepers may guard
against losses due to forged Government checks.

The film also shows

for the first time some of the methods used by the Secret Service in
the protection of the President of the United States,

- 7 -

JtC:/

The fastest check thief on record was caught in Washington, in
October,

He located an apartment house where the hall mailboxes were

so constructed that he could secrete himself in a narrow space in the
rear of the boxes, which he did.

When the mail carrier arrived, several

tenants were in the hall to get their mail.

Since the carrier did not

know the tenants by name, he properly placed all mail in the boxes and
locked them.

Each tenant would then proceed to open his own box.

As

fast as the carrier put the mail in the receptacles and closed the doors,
the hidden check thief withdrew the envelopes containing checks.

Moments

later, when the tenants looked in the boxes, several of them complained
that Government checks they expected had not been delivered,
hear

1em

squawking, 11 the thief said later,

11and

MI could

I had the checks in my

pocket,"
Bend forgers yéontinued to steal/U, S, Defense Bonds from bond
"
/
owners whoXailqd to keep the bondj^in safe places.

No bond owners

suffered lo ss^Naowever, becaus^ they can always get^duplicate bondé
if the origUials are îdst, stdfen, or destroyed, Chief Baughman
One luckless gentleman, who Aided to fleece the government because of

/

this pol/cy wound up in pjp.son instead,

i

a

He wa^ John L, Jamesf who owned

bonds which wjlfre payable on death A q his wife,

Ipis couple

was /.vorced at Huntyfgton, W. Va., and ajfpart of the w^ceedings the
coi/fe ordered that the #1,500 in bonds become the property of Mrs. James
clusively.
L

TheAonds were given to Are. James, vh/ delivered them

her^ttorney/or *vaf«^eépîn?r jjiterTthe S v o ^ e l liusband m e d a

X

-

18 to

25

6-

years, were admitted narcotic addicts who said they stole and

forged Govemment checks to get money to buy illicit drugs*
has been convicted and sent to prison.

One defendant

The others are awaiting prosecution.

Narcotic addicts with the same motivation were organized by Nathaniel
Pearson, proprietor of a New Orleans cocktail lounge.
addict, said he required

$100

a day to buy drugs.

Pearson, himself an

He directed the check­

stealing activity of a gang of fellow-addicts and actually paid out the
stolen checks with forged endorsements to wholesalers in the purchase of
liquor and other supplies for his bar.

Pearson also used his Pekinese

dog in getting veterinarians to cash the stolen checks.

Members of the

gang took the healthy dog to animal hospitals with stories about its
alleged ailments.

Within three days the puuy/ijwast was given three

separate treatments^ fju',,. 1»JflBmu'niiJi jate— dwwsc* /&ach
for with a forged Government check.
___ _______ ________~

+a+

o1

'WCft paid

Pearson and four of his accomplices

Af 111

Tre»nr»« •in n r i s f l M .

- 5 -

He admitted having made and passed coins for the previous six months*
He was convicted and sentenced*
Chief Baughman reported that one of the most unusuaX instances of
public cooperation in catching a counterfeiting offender occurred at a
county fair in Athens, Alabama.

A passer used a counterfeit $20 bill to

buy two tickets for a ride on the ferris wheel,

While the wheel was in

motion the cashier discovered that the bill was no good and summoned a
police officer.
escape.

The wheel was kept in motion to prevent the passer» s

Six more counterfeits were found on his person by the arresting

officers.
During the year, the Secret Service received for investigation
29,455 forged Government checks and 4*748 forged bonds.

Agents investi­

gated 35,957 forged checks worth $2,679*598*40 and 6,263 forged bonds
worth $431,730.10.

These included cases pending from the previous year.

In Los Angeles, California, when a group of check thieves descended
upon house mailboxes to steal checks sent to veterans and others last
October, the culprits walked into the waiting handcuffs of one of the
biggest teams of law-enforcement officers ever assembled to fight the
forgery racket.

Cooperating with the Secret Service and the Post Office

Inspectors, the Los Angeles Police Department supplied 34 plainclothesmen
to work with the Government investigators.

Surveillance of certain

mailboxes paid off when five men tried to steal the contents of the
boxes and were taken into custody.

The men, ranging In age from

drove to the Secret Service field office at Springfield and surrendered
himself, making a confession which resulted in the arrest of his partner,

^¡¡¿¿bbwpsS^ Romans, on August 9*

Both men pleaded guilty in September and

were sentenced*
Two other Illinois men set up a counterfeiting plant on wheels, but
were captured with $40,000 in trailer-made
travel*

$20 bills

before they could

Roy 0* Reime and Leonard J. Olson were arrested in June at

Aurora, Illinois, for manufacturing the counterfeits in a house-trailer
at Creve Coeur, Illinois.

Olson and Reime, the latter an engineer and

commercial artist, printed advertising literature in the trailer, but
decided counterfeit money wsuld be more profitable.
pass a few of the bills before their arrest*

They managed to

Each was sentenced to

eigjtit years*
An old joke lost all its humor for Robert McCauley, arrested
November 15 in New York City for manufacturing and passing counterfeit
U. S. nickels and counterfeit Canadian dimes.

The original gag went

like this:
He:
She:
He:

**I put two slugs in a slot at the Automat and what do you think came
"I don*t know. What?"
“The manager*H
i

McCauley, with a craving for coconut pie and coffee, visited Automats
frequently, using his home-cooked coins in the food slots.

Secret Service

agents kept the pie slots under observation and when three counterfeit
nickels thudded into one receptacle, the pie wait out and so did the
agents and the manager.

McCauley had in his pockets 22 counterfeit nickels

10 counterfeit Canadian dimes, and six metal washers the size of quarters.

- 3 -

MI can't understand it," he said.

"I was sure my bills were so good

this time that it would be at least two or three years before you*d catch
up with me I"
Williams was convicted and sentenced to

15

years*

In one case in Springfield, Illinois, a counterfeiter gave himself
up within

24 hours

after he passed his first counterfeit

$10 bill

because

t** "ft*- f
he believed his capture by the Secret Service would be inevitable.

A

Walton C,

Romans and Edward F* Schindler of Decatur, Illinois, who had been fraternity
brothers at Millikin University there, joined forces in a counterfeiting
/fter six months of experimenting they produced $1,500 in phony
A
$10 bills on August 5# 1951* The next day Schindler went to Belleville,

plant,

Illinois, and passed four notes.

On the fifth attempt, the counterfeit

was detected by the victim, a tavern keeper, who told Schindler the money
was no good*
Schindler acted surprised, and volunteered to summon the Belleville
police.

He telephoned police headquarters and asked that officers come

to the tavern.

He then told the victim tjaat the police had instructed

him to bring the counterfeit to police headquarters, and he walked away
with the bill.

The victim, however, recorded the license number of

Schindler's car and gave it to the officers who arrived a few minutes
later.

Word was flashed to the Secret Service immediately.

Schindler jUMepbiy took his plates, negatives, and stock of counter­
feits to a wooded section near East St. Louis, Illinois, and tried to
home in Decatur, he learned that Secret
Service agents from Springfield were on his trail.

Pff-AnjjfaLiPBBft. j£e

-

2

-

One four-time offender suffered a blow to his artistic ego when he
was arrested in a cabin in the Pacific Northwest in July with an extensive

/l*layout for making counterfeit $5, $10 and $20 bills .^Marion J. Williams,
was first arrested in

1924

for making counterfeit coins, and again in

1926 for a similar offense.

In 1932 he tried it again and was sent to a

Federal penitentiarv for 3 to

8 years.

While in prison he_a$quired con-

release he began to experiment with counterfeit paper money.

In 1943

he decided he could make passable money and went into partnership with
another ex—counterfeiter, daat within a few weeks they were caught by the
Secret Service and each was sentenced to six years.
A model prisoner, Williams [mod-»
nnrl -rnnwM siivi hitut?! f

his freedom on parole in
In December, 1950, a new and

deceptive counterfeit $20 bill appeared in circulation in the mid-West,
then in the far West.
feit $5,

$10

and

In quick succession, new and expertly-made counter­

$20 bills

circulated in various cities.

An analysis of the paper, inks and workmanship led the Secret Service
to suspect Williams as the manufacturer, and special agents were assig n ed
to track him down.

He was traced to the Pacific Northwest and kept under

surveillance until it was established that he was again in the counter­
feiting business.

In July,1 9 5 1 , he was arrested by the Secret Service m

a cabin where he had his plant.
was surprised and disappointed.

When confronted by the agents, Williams

/

Secret Service Agents contributed 95,000 hours of unpaid overtime
to wage a relentless campaign against counterfeiters and check forgers
in 1951, according to a year-end report by Secret Service Chief U. E.
Baughman to Secretary of the Treasury John W. Snyder, made pubUc today.
ff t A ,

*

(

m

m

.

,

The overtime was the equivalent of about 52 agents working normal hours,*
Chief Baughman declared.
Although handicapped by an accumulation of more than 18,000 pending
investigations at the beginning of the year, the Secret Service arrested
247 persons for counterfeiting, 2,304 for check and bond forgery, and 212
for other offenses, and SSWwTI) completed 49,952 investigations of all
types during the year.
Chief Baughman credited his agents with smashing a number of
counterfeiting plants before they could roll into full production.
seizures of counterfeit bills and coins totaled 11,380,882.44, **•
the Secret Service captured $932,322.30 of this amount before it could
be passed on the public.

Retail storekeepers lost $448,560.14 to

counterfeiters in 1951, as oompared with $617,389 lost in 1950.

RELEASE SUNDAY NEWSPAPERS,
February 3* 1 9 5 2 . ______

S-2950

Secret Service Agents contributed 95,000 hours of unpaid
overtime to wage a relentless campaign against counterfeiters
and check forgers in 1951 * according to a year-end report by
Secret Service Chief U. E. Baughman to Secretary of the Treasury
John W. Snyder, made public today. The overtime was the
equivalent of about 52 agents working normal hours for a full
year, Chief Baughman declared.
Although handicapped by an accumulation of more than

18,000 pending investigations at the beginning of the year, the
Secret Service arrested 2%7 persons for counterfeiting 2,30% for
check and bond forgery, and 212 for other offenses, and
completed %9,952 investigations of all types during the year.
Chief Baughman credited his agents with smashing a number
of counterfeiting plants before they could roll into full
production. Seizures of counterfeit bills and coins totaled
$1,380,882.%%, and the Secret Service captured $932,322.30 of
this amount before it could be passed on the public. Retail
storekeepers lost $%%8 ,5 8 0 .1 % to counterfeiters in 19 5 1 * us
compared with $6 1 7,38 9 lost in 19 50 ,
One four-time offender suffered a blow to his artistic
ego when he was arrested in a cabin in the Pacific Northwest
an extensive layout for making counterfeit $ 5 * $10
and $20 bills. He was Marion J. Williams, who was first
arrested in 192 % for making counterfeit coins, and again in
1926 for a similar offense. In 1932 he tried it again and was
sent to a Federal penitentiary for 3 to 8 years. While in
prison he acquired considerable knowledge in the art of photo­
engraving from other counterfeiters, and soon after his
release he began to experiment with counterfeit paper money.
In 19%3 he decided he could make passable money and went into
partnership with another ex-counterfeiter. Within a few weeks
they were caught by the Secret Service and each was sentenced
to six years.

248
O _

A model prisoner, Williams won
I95 O a In December, 1950., a new and
bill appealed in circulation in the
West. In quick succession, new and
$5, |>10 and $20 bills circulated in

his freedom on pa,role in
deceptive counterfeit $20
mid-West, then in the far
exp ortly-made counte rfei t
various cities.

An analysis of the paper, inks and workmanship led the
Secret Service to suspect Williams as the manufacturer, and
special agents were assigned to track him down. He was traced
to the Pacific Northwest'and kept under surveillance until it
was established that he was again in the counterfeiting business.
In July, 1951* he was arrested by the Secret Service in
a cabin whore he had his plant* When confronted by the agents,
Williams was surprised and disappointed.
"I can't understand it / 1 he said* tTI was sure my bills
were so good this time that it would, be at least two or three
years before you’d catch up with m e \u
Williams was convicted and sentenced to 15 years*
In one case in Springfield, Illinois, a counterfeiter gave
himself up within 2k hours after he passed his first counterfeit
$10 bill because he believed his capture by the Secret Service
would be inevitable. Involved in the story were Walton C. Homans
and Edward F. Schindler of Decatur, Illinois, who had been
fraternity brothers at Millikin University there. They joined
forces in a counterfeiting plant, and after six months of
experimenting they produced $1,50 0 in phony $10 bills on
August 5 , 1951. The next day Schindler Went to Belleville,
Illinois, and passed four notes. On the fifth attempt, the
counterfeit was detected by the victim, a tavern keeper, who told
Schindler the money was no good.
Schindler acted surprised, and volunteered to summon the
Belleville police. He telephoned police headquarters and asked
that officers cone to the tavern. He then told the victim that
the police had instructed him to bring the counterfeit to police
headquarters , and he walked away with "the bill . The victim,
however, recorded the license number of Schindler’ 3 car and'
gave it to the officers who arrived a few minutes later.
Word
was flashed to the Secret Service immediately,

249

Schindler took his plates, negatives, and stock of counter­
feits to a wooded section near East St. Louis, Illinois, and
tried to destroy them. Beturning to his home in Decatur, he
learned that Secret Service agents from Springfield were on his
trail, He drove to the Secret Service field office at
Springfield and surrendered himself, making a confession which
resulted in the arrest of his partner, Romans, on August 9«
Both men pleaded guilty in September and were sentenced.
Two other Illinois men set up a counterfeiting plant on
wheels, but were captured with $40,000 in trailer-made $20
hills before they could travel. Roy 0. Reime and Leonard J. Olson
were arrested in June at Aurora, Illinois, for manufacturing the
counterfeits in a house-trailer at Creve Coeur, Illinois,
Olson and Reime, the latter an engineer and commercial artist,
printed advertising literature in the trailer, but decided
counterfeit money would be more profitable. They managed to
pass a few of the-bills before their arrest. Each was sentenced
to eight years.
An old joke lost all its humor for Robert McCauley, arrested
November 15 in Hew York City for manufacturing and passing
counterfeit U. S. nickels and couri.ter.feit Canadian dimes. The
original gag went like this:
He:

”1 put two slugs in a slot at the Automat and
what do you think came out?”

She:

"I don't know.

He:

”The manager.”

What?"

McCauley, with a craving for coconut pie and coffee,
visited Automats frequently, using his home-cooked coins in the
food slots, Secret Service agents kept the pie slots under
observation and when three counterfeit nickels thudded into one
receptacle, the pie went out and so did the agents and the
manager, McCauley had in his pockets 22 counterfeit nickels,
10 counterfeit Canadian dimes, and six metal washers the size
of quarters. He admitted having made and passed coins for the
previous six months. He was convicted and sentenced.

250
- 4 -

Chief Baughman reported that one of the most unusual
instances of public cooperation in catching a counterfeiting
offender occurred at a county fair in Athens, Alabama.
A passer used a counterfeit $20 bill to buy two tickets for
a ride on the ferris wheel. While the wheel was in motion the
cashier discovered that the bill was no good and summoned
a police officer. The wheel was kept in motion to prevent the
passer’s escape. Six more counterfeits wore found on his person
by the arresting officers.
During the year, the Secret Service received for investi­
gation 29,455 forged Government checks and 4,748 forged bonds.
Agents investigated 35,957 forged checks worth $2 ,6 79 ,598.40 and
6,263 forged bonds worth $431,730.10. These included cases
pending from the previous- year.
In Los Angeles, California, when a group of check thieves
descended upon house mailboxes to steal checks sent to veterans
and others last October, the culprits walked into the waiting
handcuffs of one of the biggest teams of law-enforcement officers
ever assembled to fight the forgery racket. Cooperating with
the Secret Service and the Post Office Inspectors, the
Los Angeles Police Department supplied 34 plainclothesmen to
work with the Government investigators. Surveillance of certain
mailboxes paid off when five men tried to steal the contents of
the boxes and were taken into custody. The men, ranging in age
from 18 to 25 years, were admitted narcotic addicts who said
they stole and forged Government checks to get money to buy
illicit drugs. One defendant has been convicted and sent to
prison. The others are aws.iting prosecution.
Narcotic addicts with the some motivation were organized
by Nathaniel Pearson, proprietor of a New Orleans cocktail
lounge. Pearson, himself an addict, said he required $100
a day to buy drugs. He directed the check-stealing activity
of a gang of .fellow-addicts and actually paid out the stolen
checks with fox’ged endorsements to wholesalers in the purchase
of liquor and other supplies for his bar. Pearson also used
his Pekinese dog in getting veterinarians to cash the stolen
checks. Members of the gang took the healthy dog to animal
hospitals with stories about its alleged ailments. Within three
hays the dog was given three separate treatments, paid for with
a forged Government check. Pearson and four of his accomplices
are now serving a combined total of 11 -| years in prison.

251
- 5 The fastest check thief on record was caught in
Washington, D. C., in October, He located an apartment house
where the hall mailboxes were so constructed that he could
secrete himself in a narrow space in the rear of the boxes,
which he did. When the mail carrier arrived, several tenants
were in the hall to get their mail. Since the carrier did not
know the tenants by name, he properly placed all mail in the
boxes and locked them. Each tenant would then proceed to open
his own box, As fast as the carrier put the mail in the
receptacles and closed the doors, the hidden check thief
withdrew the envelopes containing checks. Moments later, when
the tenants looked in the boxes, several of them complained
that Government checks they expected had not been delivered.
”1 could hear 'em squawking,” the thief said later, ”and I had
the checks in my pocket."
An event of current and historic importance affecting the
Secret Service took^place during the year, Chief Baughman said.
Congress passed a bill which gave permanent legal status to the
Secret Service by defining its powers and duties in a Federal
statute. Since its establishment in 1865 the Secret Service
derived its authority from appropriation acts passed by the
Congress every year. The new law, cited as Public Law 7 9 ,
82nd Congress, did not grant the Secret Service any new duties
or powers except the power to serve arrest warrants. It was
approved by the President on July 16.
At the close of the year, the Secret Service also released
a new 16 millimeter educational motion picture, "The Secret
Service Story," showing how to detect counterfeit bills and
how storekeepers may guard against losses due to forged
Government checks. The film also shows for the first time some
of the methods used by the Secret Service in the protection of
the President of the United States.

0 O0

FOR IMMEDIATE RELEASE
F r i d a y , F e b ru a ry 1 , 1 9 5 2

The B u reau o f Customs announced to d a y t h a t f o r th e
q u o ta p e r io d Septem ber 2 0 , 1 9 $ 1 - Septem ber 1 9 , 1 9 $ 2 , th e
t o t a l q u o ta o f 8 , 8 8 3 ,2 $ 9 pounds o f M exican c o t t o n o f l e s s
th a n 1 - 1 / 8 in c h e s i n s t a p l e le n g th ( o t h e r th a n h a r s h o r
ro u g h c o t t o n o f l e s s th a n 3 / k in c h i n s t a p l e l e n g t h , and
o t h e r th a n l i n t e r s ) h a s b een a u th o r iz e d r e l e a s e .
The e n t r y w hich co m p leted th e q u o ta was p r e s e n t e d on
J a n u a ry 3 0 and a u th o r iz e d r e l e a s e b y th e B u reau on Ja n u a ry 3 1 ,
1 9 J2.

The g r e a t e r p o r t i o n was f i l l e d b y e n t r i e s o f c o t t o n

made d u rin g Ja n u a ry 195>2.

253

IMMEDIATE RELEASE,
Friday, February 1, 1 9 5 2 ,

S-2951

The Bureau of Customs announced today that
for the quota period September 20, 1951 -September 19, 1952, the total quota of
V.

8 ,883,259 pounds of Mexican cotton of less
than 1 -1 /8 inches in staple length (other
than harsh or rough cotton of less than 3 /4
inch in staple length, and other than linters)
has been authorized release.
The entry which completed the quota was
presented on January 30 and authorized release
by the Bureau on January 31, 1952.

The greater

portion was filled by entries of cotton made
during January 1952.

0O0

MS

j?t

g "V»

<^y'J ~~ m

RELEASE MORNING NEWSPAPERS,
Tuesday, February 5* 1952*

{

the Sacretary of the treasury announoed last evening that the tanders for
$1,300,000,000, or thereabout», of 91-day treasury bills to be dated February 7 and
to mature Hay 8, 1952, ^ilch were offered on January 31, were opened at the Federal
Reserve Banks on February k*
The details of this issue ara as follows t
total applied for - $2 ,136,0 # ,000
- 1,302,02k,000
total accepted

Average price

- 99*600

(includes $182,605,000 entered on a
non-competitive basis «ad aceapted in
full at the average price shown below)
Equivalent rate of discount approx* 1.58W per annua

Range of accepted competitive bide»
- 99*62$ Equivalant rate of discount approx* l.k8l$ per annua
- 99*598
*
*
*
*
*
1*590
*

High
Low

(8k percent of the amount bid for at tha lew price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
Mew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louie
Minneapolis
Kansas City
Dallas
San Francisco

1
1*2,212,000
1,379,938,000
là,202,000
109,766,000
15.130.000
29.258.000
237.896.000
1*3,75b,000

$

62.915.000
107.510.000

36,1*31,000
68k,536,000
22,562,000
106,658,000
13,1*30,000
22.078.000
179,0bk,000
33.222.000
16,91*6,000
1*1,926,000
55.125.000
90.066.000

$2,136,035,000

$1,302,021»,000

19. 350.000
là,iol*,ooo

Total

y

release m o r n i n g n e w s p a p e r s ,

Tuesday, February 5, 1952.

S-2952

The Secretary, of the Treasury announced last evening that the
tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bills
to be dated February 7 and to mature May 8, 1952, 'which were offered
on January 31, were opened at the Federal Reserve Banks on February 4.
The details of this issue are as follows:
Total applied for - $2,136,035*000
Total accepted
- 1,302,024,000 (includes $182,605,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99.600 Eauivalent rate of discount approx
Average price
1.584$ per annum
Range of accepted competitive bids:
- 99. 625 Equivalent rate
1.484$
- 99. 598 Equivalent rate
1 .590 $

High
Low

of discount approx
per annum
of discount approx
per annum

(84 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
■111 Louis
Minneapolis
[Kansas City
Dallas
¿an Francisco

Total
Applied for
$

TOTAL

42,212,000
1.,379,938,000
44,202,000
109 ,766,000
15,130,000
29 ,258,000
2 3 7 *896,000
43,754,000
19*350,000
44,104,000
6 2 ,915,000
107,510,000

$2!,I 36 ,035,000
oOo

Total
Accepted
$

3 6 ,431,0 00
684,536,000
22 ,562,000
106,658,000
1 3 ,430,000
22 ,078,000
179,044,000
33*222,000
16,946,000
41,926,000
55,125*000
9 0 ,066,000

$1,302,024,000

FOR IMMEDIATE RELEASE

Monday, February h, 19£2

The B u reau announced to d a y t h a t 1 6 , 2 0 3 ,7 1 7 pounds o f
c o t t o n h a v in g a s t a p l e o f 1 - 1 / 8 in c h e s o r more b u t l e s s th a n
l-ll/l6

in c h e s w ere p r e s e n te d f o r e n t r y a t th e o p en in g o f

th e y e a r l y g lo b a l q u o ta o f U £ *6 £ 6 ,U 2 0 pounds a t 1 2 noon b , 8 * t

on February 1 , 19f>2.
The t o t a l amounts p r e s e n te d i n th e v a r io u s c o l l e c t i o n
d i s t r i c t s w ere a u th o r iz e d r e l e a s e f o r co n su m p tio n .

T R E A S U R Y

D EP A R T M EN T
WASHINGTON,

Information Service

IMMEDIATE RELEASE,
M onday, February 4, 1952

S-2953

The Bure a u announced today that
16,203*717 pounds of cotton h a v i n g a
staple of 1-1/8 inches or more but less
than

1 - 11/16

inches were presented for

entry at the opening of the yearly
global quota of 45,656,420 pounds at
12 noon e.s.t,

on February 1, 1952.

The total amounts presented in the
various

collection districts were

authorized release for consumption.

0O0

3

^

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at whi h

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

be interest.

Under Sections

as amended by Section

115

1*2 and 117

(a)

CD

of the Avenue Act of

of the Internal Revenue Code,

19M,

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
,
• ^
unon sale or redemption at maturity during the taxable
actually received either .upon saie ox
F
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular So.

1*18,

as amended, and this notice, present

the terms of the Treasury bills and govern the c o i t i o n s of their issue.
of

the

circular may be obtained frexa any Federal Reserve Bank or Branch.

Copxea

-

2

-

A-T-DIXA

taxt

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

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

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

Settlement for

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

February li;, 1952 s

an cash or other immediately availj

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

Cash adjustments will

.made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new b ills.
The income derived from Treasury b ills, whether interest or gain from the
sale or other disposition of the 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

7

7

TREASURY DEPARTMENT
Washington

5

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 7, 1952
*
ggp
The Secretary of the Treasury, by this public notice, invites tenders for
91 -day Treasury bills, for cash and
"aaes?
in the amount of ^1^302,909,000
in exchange for Treasury bills maturing February lU. 1952
> 7 Le issued oh
not
a discount basis under competitive and non-competitive bidding as hereinafter

$ 1.300.000.GOO > or thereabouts, of

provided.
vd.ll mature
interest.

February ill, 1952
and
xxa
, when the face amount will be payable vdthout

The bills of this series vali be dated
May 15. 1952

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

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock e.m., Eastern Standard time, Monday. February 11. 1952.
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 vail
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.

Tenders will be received vdthout deposit from

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

Tenders from others must be accompanied

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

T R E A S U R Y

D EP A R T M EN T

Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
Thursday, February 7, 1952,

S-2954

T h e .Secretary of the Treasury, by this public notice, invites
tenders for $1,300,000,000, or thereabouts, of 9 1 “h&y Treasury bills,
for cash and in exchange for Treasury bills m a t u r i n g February 14,
1952, in the amount of $ 1 ,302,909,000, to be issued on a discount
basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated F e b r u a r y 14,
1952, and will mature May 15 , 1952, wh e n the face amount will be
payable without interest.
They will be issued in bearer form only,
and in denominations of $ 1 ,000, $ 5 ,000, $ 10 ,000, $ 100,000, $ 500,000,
and $ 1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., E a s t e r n Standard time,
Monday, February 11, 1952.
Tenders will not be received at the
Treasury Department, Washington.
E a c h 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 m a y 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
die Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of
the amount and price range of accepted b i d s . Those submitting
tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 200,000 or less without stated price
1rom any one bidder will be accepted in full at the average price

2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance wi t h the bids must be made or
completed at the Federal Reserve Bank on February 14, 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing February 14, 1952.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences betw e e n the par value of m a turing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold b y the Unit e d States shall be considered
to be interest.
Under Sections kZ and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital a s s e t s . 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 m a t u r i t y during the- taxable year for which
the. return is made, as ordinary gain or loss.
Treasury Department Circular Tío. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular m ay be
obtained from any Federal Reserve Bank or Branch.

oOo

ü Jk

W as h in g to n ,

AS OF January 3 1 , 195?

unde ^H
cm/

T R E A S U R Y DEPARTMENT
F is c a l Se rvice

STATUTORY DEBT LIMITATION

wiit.

& l U S tS^eWthTf«
a ^ T le x ie i l u ^

u MMvi

»

y®t>ruary 5 , 19

guaranteed o b i¡n atio n s as « y be held by the se cre ta ry of the Treasury)

-s a 1 jot

r —■ i—

b a sis which is redeemabl<
The fo il owing.table shows the face amount of o b lig a tio n s outstanding and the face'amount which can still
be issued under t h is lim ita tio n :
$ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0

Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Lib erty Bond Act, as amended
In tere st-b e arin g :
Treasury b i l l s

$18,103*705*000

C e rtifica tes of indebtedness.........

2 9 * 0 7 9 .2 3 5 .0 0 0

Treasury notes .......................................

25.96o,frl7>350$ 73*1^3.357.350

Bonds T reasu ry .................................................
Savings (current redemp. value)

7 6 ,9 ^ 3 .^ 9 0 ,9 5 0

Depositary............................................
Armed Forces Leave ..........................
Investment s e r i e s .............................

^ C e r t if ic a t e s of indebtedness.........
Treasury h o te s......................................
Total in terest-b ea rin g

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

2 1 , 896 ,* * 1 5 .0 0 6
l f r . T ? 6 .3 0 - 9 ,0 0 0

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

Matured, in te re st-ce a se d ......................................................................
Bearing no in te re s t:
War savings stamps ...................... ............
Excess p r o fits tax refund bonds.......
Special notes of the United S ta te s:

l k 7 , 9 6 3 ,* * 0 3 .2 2 1

|6 ,2 ? 2 ,7 2 f r ,0 0 0 _

257,339.^.571

11.39, 281,250

1 * 8 ,0 8 6 ,2 1 9
1 ,9 2 f r ,1 6 9

i ,«oi .ncio.ooo

In te rn a t'l Monetary Fund s e r ie s ...

1. 3frl.010.388
2 5 9 .1 1 9 ,7 7 6 ,2 0 9

T o ta l...................................................................................
Guaranteed o b lig a tio n s (not held by Treasury).
In tere st-b e arin g :
Debentures: F. H. A . ......................................
Demand o b lig a tio n s: C . C . C . .........................................

3 2 .3 5 0 ,8 8 6
.................

Matured, in terest-ceased ........................................

3 ,6 2 3 ,9 5 0

3 5 .9 7 f r ,8 3 6
1 ,7 7 8 ,8 2 5
3 7 ,7 5 3 .6 6 1
2 W .1 5 7 .5 2 9 .8 7 0 _

Grand to tal o u tsta n d in g ............

iff.aii-2.fr7o.i31

Balance face amount of o b iig a t i<
Reconcilement with statement of the Pu blic Debt J a n lia - r ^ 3 1 -1 9 3 2
(D aily statement of the United sta te s Treasury, T e l ) , _ 1 , _ _ 1 9 5 2 )
Outstanding Total gross public debt ..........................................................................................................................
Guaranteed o b lig a tio n s not owned by the Treasury .....................................................................
Total gross p u blic debt and guaranteed o b lig a tio n s .......................................•••••;
;..........
Deduct - other outstanding public debt o b lig a tio n s not subject to debt lim it a t io n ....

SI
'\ J

259.775,389.625
37.753.661
259,813053^«
6 5 S .6 l3 .f r »

259,157.3*7.®'®

2 6 3

STATUTORY DEBT LIMITATION
AS OF JANUARY 31, 1952

February 11, 1952

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, 19U6; U.S.C., title 31,
sec« 757b), outstanding at any one time* For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount«"
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
b27 5 ,0 0 0 ,0 0 0 ,0 0 0
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills............... $ 18,103,705,000
Certificates of indebtedness... 29,079,235,000
Treasury notes...............
25,960,1*17,350 $73,li*3,357,350
Bonds Treasury...........
76,91*3,1*90,950
Savings (current redemp.value) 57,663,71*0,771
Depositary.................
357,853,500
Prmed Forces Leave........ ..
Investment series........... 12,998,318,000 li*7,963,1*03,221
Special Funds Certificates of indebtedness. 21,896,1*15,000
Treasury notes..... ...... .. li*,336,309,000 36,232,721*,000
Total interest-bearing................... 25?,339,¿01*,571
Matured, interest-ceased,
......................
1*39,281,250
Bearing no interest:
Jar savings stamps..............
1*8,086,219
Excess profits tax refund bonds..
1,921*, 169
Special notes of the United States:
Internat’1 Monetary Fund series
1,291,000,000
1,31*1,010,388
Total...................
2557113 776,209

,

iuaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures: F.H.A.............
32,350,886
ir Pen®nd obligations: C.C.C......
3,623,950
Matured, interest-ceased. •....... ............... .

35,971*, 836
1,778,825
37,753,661
Grand total o
u
t
s
t
a
n
d
i
n
g
alance face amount of obligations issuable under above authority]!!]

Mst

259 157 529 870
l5]8I*2*l*7o]l3Q

Reconcilement with Statement of the PubXic~Debt'
January 31, 1952--------d‘
Statement of the United States Treasury, February 1, 1952)

Total gross public debt.......................... .............. r 259 775 389-625
Guaranteed obligations not owned by the Treasury.................---- *~'3747$3~Z6l
Ded ^ gr0SS Put>lic debt and guaranteed obligations............
259,813^11*3'
^2B6'
other outstanding public debt obligations not subject to
debt limitation,
655,613,1*16

25P7é7Î52JJB7V
’2955

Arrests Reported by Districts, Bureau of Narcotics
Calendar Year 1951

District

Federal f Marihuana;
—
: Narcotics:
Law
:

Total

70

13

83

New York

304

49

353

3.

Philadelphia

171

54

225

5.

Baltimore

186

97

283

6.

Atlanta

71

33

104

7.

Louisville

*825

25

850

3.

Detroit

300

46

346

9.

Chicago

225

89

314

10.
11.
12.

Houston

271

327

598

Kansas City

108

59

167

Minneapolis

94

35

129

13.

Denver

47

154

201

14.

San Francisco

192

96

288

15.

Seattle

166

35

201

16.

Honolulu

24

6

30

3,054

1,118

4,172

1.
2.

Boston

Total
*

Including 759 arrests under Kentucky Addict Law.

scheme which involved the purported sale of large

quantities of cough syrup.

They ajje John R. Waters

and Ransom P. Carswell, each of whan received a three

year sentence.

Their pharmacist, James P. Rhodes,

was given a two-year sentence.
The evidence showed that in fifteen months the drug

store sold 28,000 tablets of dilaudic^j^a narcotic.

It

was established that of 2,449 prescriptions on which
dilaudid^tablets were sold, only 243 were legitimate.

The others were camouflaged, calling for eight ounces of

cough syrup to each grain of dilaudidj^£# Narcotic agents

calculated that to fill these prescriptions would have
required

32

gallons of the particular cough syrup, whereas

the drug store had purchased only eight gallons.

The

evidence showed the dilaudidrtablets were sold to drug

addicts straight, without the cough syrup

r/X

— ■W r

During the period from June to October, 1951^
afiE® conducted

a series of investigations which resulted in the

purchase of narcotic evidence from 77 persons engaged in
illicit drug traffic in Cleveland, Youngstown, Canton

and Akron, Ohio,

Seventy-four arrests were made, and

to date ai»*"^-*^**1*“ of the defendants have been convicted

r\
and given prison sentences of one year to ten years^^)
--- ~ ™ s-------pi» ;
..Y
Tfiirteen automobiles used by the defendants were

sei
____* of the convicted defendants were identified

as major suppliers of illicit narcotics in the Cleveland

area.

They are Andrew LaConti, Joseph Leanza and Carl

Talarico, who received sentences of ten, five and three

years respectively.
The two owners of a drug store in Winston Salem,
N. C. were sent to prison for operating a prescription

Close watch kept

by narcotic agents

and police officers on a cemetery in San Antonio,
Texas, paid off when the officer arrested Matias
Jirainez Benavides as he drllve up in
were two paper sacks containing
of heroin.

«wtttin'

1

grams

Benavides said that he was promised a

thousand dollars to bring the sacks to San Antonio
from Eagle Pass, Texas, after it had been smuggled
across the border from Mexico.

Benavides pleaded

guilty and was sent to prison for 3 years.

Another Texas-New York arrangement for the exchange
of heroin and marihuana was uncovered at Houston, Texas.
Six arrests were made and 50 pounds of marihuana and
7 ounces of heroin seized.

The marihuana had been

smuggled into the United States from Mexico, and
was exchanged for heroin supplied by illicit dealers
in New York and other eastern cities.
The principal defendant, John Calvin Young, was
given a prison term of

7- 1/2

years.

Still another group of participants in the TexasNew York barter traffic —
marihuana —

the exchange of heroin for

was trapped in Houston during the months

of September, October and November, resulting in the
arrest of Judson R* Henderson, Leona Henderson,
Travis Burks and Johnnie W. Gates.

The arrests were

made after marihuana purchases totaling $1,300 were
m a d e / 7?

Narcotic

»

agents identified Henderson as one of

the largest wholesale marihuana and heroin dealers
in Texas, and as the source of supply for several large
wholesale marihuana dealers in New York City.

The

New York marihuana dealers allegedly paid Henderson
with heroin in many cases for the marihuana to be
suppl
was given a 40-month prison prTsrm
term at Houston in October for smuggling marihuana from
Mexico to be delivered to Henderson.

&
) Y

A tw o -w a y t r a f f i c
h e r o in

b e tw e e n T e x a s a n d New Y o r k i n

a n d m a r ih u a n a w as b r o k e n up i n

s u c c e s s f u l p r o s e c u t io n s o f 1 9 5 1 .
w e re i n d i c t e d ,

and t h ir t e e n

one o f th e

T h ir t y - f iv e

d e fe n d a n ts

o f th e s e h a ve r e c e iv e d p r is o n

s e n t e n c e s so f a r .
Eugene Tramaglino, for many years a persistent

violator of the narcotic laws and high among the biggest

names in the underworld W h o ’s Who, was one of the ring­
leaders in this traffic.

He was convicted and given a

ten-year sentence plus a fine of $4,000.

Raymond Rosario

another of the ringleaders, also was convicted and given

a fifteen year sentence plus a fine of $11,000.

Lesser

defendants received sentences of two to six years.
Members of the ring transported heroin from New York

to Texas, exchanged it there for marihuana, and then took

the marihuana to New York and sold it to peddlers in the

Harlem area.

An apparent tie-up between the New York and Los
Angeles underworlds was disclosed after an undercover

agent purchased four ounces of morphine hydrochloride

from Lewis Alfred Salerno in Los Angeles last November 7.

Agents arrested Salerno and also Guido Anthony Penosi,

and seized 3k ounces of heroin.

Salerno and Penosi,

identified as members of the 11107th Street M o b ” in New
York city, allegedly were acting as principal distributors

of heroin in wholesale lots to dealers in the Los Angeles

area.

At the time of the arrests, Penosi was free on

$7,500 bail from the southern district of New York in a

counterfeiting case.

Chalupowitz pleaded guilty.

McKee and Levin are

now a w a it in g t r i a l .
A n o th e r v ic t im

o f t h e 1 9 5 1 n a r c o t i c s d r i v e who

e n jo y e d p r o m in e n t c o n n e c t i o n s i n
Jo h n C r e ig h t o n .

A

n a r c o t ic

t h e u n d e r w o r ld w as

E a r l y i n D e c e m b e r, 1 9 5 0 ,

an u n d e r c o v e r

a g e n t p u r c h a s e d a q u a n t i t y o f h e r o i n fro m

C r e ig h t o n i n

th e v i c i n i t y

C a lif o r n ia .

T h e re a fte r,

o f t h e b o r d e r to w n o f B r a w le y ,
th ro u g h t h e ^ a id o f C r e ig h t o n ,

t h e a g e n t m ade o t h e r h e r o i n p u r c h a s e s fr o m A b rah am P a c h e c o
C r e ig h t o n h a s b e e n i d e n t i f i e d
n a r c o t ic
a lia s

t r a f f ic

a s a fo rm e r p a r t n e r in

w it h th e n o t o r io u s R o b e rt D . L i n v i l l e ,

"T h e P r o f e s s o r , " who w as s e n t e n c e d t o t e n y e a r s

im p r is o n m e n t i n

C a lif o r n ia

in

19^7 f o r th e s a le

C r e ig h t o n and P a c h e c o a re u n d e r in d ic t m e n t .
C fc e ig h t o n h a d tw o p i s t o l s
p r is o n

th e

in

o f d ru g s.

When a r r e s t e d

h i s p o c k e t s and w as g iv e n a

s e n te n c e f o r p o s s e s s in g

th e m .

1
A former member of the narcotics branch of New York's

famous "Murder, I n c ." received a fifteen-year prison
sentence and was fined $ 7,000 after his arrest as a
jbig-timejIf Pacific coast drug trafficker.
Chalupowitz, alias Abe Chapman.

He was Abraham

Chalupowitz made the

mistake of selling five ounces of heroin to an undercover

agent of the narcotics bureau in the San Francisco area.

Two well-known mobsters were arrested with him.
were William Levin, who belonged to the

v a a fc 'm tim m * .

These
"Black

Tony" Parmagini gang of California, and Frank McKee,

alleged member of the Tuohy gang of Chicago.
Chalupowitz already had three convictions for major

narcotic offenses to his credit, and was regarded as
probably the largest operator in Pacific coast drug traffic*

/

r

It was established that the heroin had been obtained

by the Orsini organization in Marseilles, France^ through

a brother of Joseph Orsi n i .
While working up the case, the narcotic agents

materially assisted the United States Secret Service in

trapping Orsini and Shillitani as counterfeiters.

The

trap was sprung through the purchase of $ 100,050 in
counterfeit money from Shillitani through Orsini.
Joseph Orsini was sentenced in December to five

years imprisonment in a narcotic case and five years
additional for counterfeiting.

Shillitani was also given

sentences under both the narcotic and counterfeiting laws

and will have to serve a minimum of fifteen years.

termsy to run concurrently, wh e n he pleaded guilty.

Cooomaft is now serving a sentence given him in Mexico,

and will face the United States indictment when Mexico

releases him.

Meltzer, G w * 6Sn and four others of the group were
on the narcoticj bureau's International List of suspects.

Most of the 25 persons indicted are still awaiting trial.
Narcotic smuggling and counterfeiting were m ixed

in the affairs of another m o b brought to justice in 1951 *

with 23 individuals arrested and a total of

28 defendants

name d in two indictments

This^ group was headed by Joseph Orsini, who had
Salvatore Shillitani, Anthony Martello, Vincent Randazzo,

Eugene Gianini and others as associates.

The gang was

narcotic agents purchased one-fourth

kilogram of heroin from Shillitani and Martello.

at one time or another of big time gangsters such as

Mickey Cohen, Meyer Lansky, the late

others.
Meltzer and twenty-four other persons were indicted

on narcotics charges as the outcome of an investigation
that began in 1945 and extended not only throughout the
United States but to Cuba, Prance, Italy, Turkey, Greece,
and Mexico,

Max Gooomran, leading west coast and Mexico

drug trafficker, was indicted with Meltzer,

They and their

fellow defendants were accused of conspiring to illegally
import opium into the United States from Mexico, and also import

heroin from abroad on a large scale, for distribution

throughout the North American continent,
Meltzer, arrested in California, was removed to New

York for prosecution, and received two five-year prison

3

Most notorious of all the hoodlums to fall into the

narcotics bureau net during 1951 was Irving Wexler,

better known as Waxy Gordon.
A

As a result of the

arrest of Gord^i and two of his lieutenants,

Sammy Kass and Ben )$(atz, on a New Y o r k city street last

July as they were about to deliver one-half kilogram of

f

heroin, Gordon is now serving a prison term of 25 years
to life, Kass a sentence of 10^ to 22 years, and |>{atz
a term of 3j to 7 years.

A fourth defendant, arrested

the same day, Arthur Repola, received a sentence of ten

to 20 years.
This group was considered one of the most important

local and interstate sources of narcotics supply in this

country.
Ranking close to the Gordon group in importance was

a m o b headed by Harold ’’Happy" Meltzer, notorious associate

- 4 -

Commissioner Anslinger noted that where prices remained

constant, considerable dilution of the drug has been

encountered.
A table showing the arrests by districts during
1951 under the Federal Narcotic Law and the Marihuana Act

appears at the end of this release#

s

- 3

testified to the success of the y e a r ’s enforcement program.

The seizures totaled 948 ounces compared with 731 ounces

in the calendar year 1950.

The bulk of the seizures were

at interior supply points.

Seizures of narcotic drugs of

all classes in 1951 totaled 3>135 ounces, compared with
2,416 ounces in 1950.

Seizures of marihuana in

totaled 36,091 ounces

compared with 45>668 ounces in 1950.

Seizures of cocaine were moderate, and this, according
to Commissioner Anslinger, is one of several indications

that the cocaine traffic, which was a serious problem

two years ago, now is considerably diminishing.

The heroin traffic continues to be the most pressing

problem in narcotic enforcement, Commissioner Anslinger

said.

1951

However, the blows struck at supply sources in
have resulted in heroin being less plentiful.

8

r

2

Commissioner Anslinger told the Secretary that the

Federal narcotic agents operated throughout the year

under a mandate to discover and block important supply

sources, leaving to local authorities where possible the
conduct of investigations of purely local importance.

Increases in many cities in the local police personnel
assigned to narcotic work have facilitated this program.
A sharp increase in the amount of heroin —

dangerous of the illicit drugs —

the most

seized during the year

Insert - Page 1

Emphasis was also placed by the Bureau on efforts

to further wipe out juvenile narcotic addiction, and in

this field, too, there was marked progress during the
year.

A large number of peddlers engaged in supplying

narcotics to teen-agers were caught.

The trend toward an

increase in teen-age drug addiction has been halted in
most places and there has been a sharp reduction in the
number of teen-agers seeking hospitalization because of

drug addiction.

Secretary Snyder has received from Commissioner

of Narcotics Harry J. Anslinger a report showing that
agents of the Bureau of Narcotics struck hard at important

sources of supply of illicit narcotic drugs and sent to

prison some of the narcotic traffic’s worst mobsters

during the calendar year 1951.
Big-time dealers in heroin and marihuana were among

those who fell victim to the conspicuously successful

enforcement work of the Bureau.

They included such

characters as Waxey Gordon, noted New York hoodlum; Harold

"Happy” Meltzer, associate of numerous kingpin gangsters

such as Mickey Cohen and the late Buggsy Siegel; Abraham

Chalupowitz, alias Abe Chapman, one-time member of the

narcotics branch of New York's "Murder, Inc." mob; Prank
McKee, alleged member of Chi c a g o ’s Tuohy gang; and William

Levin, of California's now extinct "Black Tony" Parmagini

gang.

^

T R E A S U R Y

D EP A R T M EN T

Information Service

RELEASE SUNDAY NEWSPAPERS,
February 10, 1952._________

WASHINGTON, D .C .

S-2956

Secretary Snyder has received from Commissioner of Narcotics
Harry J, Anslinger a report showing that agents of the Bureau of
Narcotics struck hard at important sources of supply of illicit
narcotic drugs and sent to prison some of the narcotic traffic's
worst mobsters during the calendar year 1951 .
Emphasis was also placed by the Bureau on efforts to further
wipe out juvenile narcotic addiction, and in this field, too,
there was marked progress during the year. A large number of
peddlers engaged in supplying narcotics to teen-agers were caught.
The trend toward an increase in teen-age drug addiction has been
halted in most places and there has been a sharp reduction in the
number of teen-agers seeking hospitalization because of drug
addiction.
Big-time dealers in heroin and marihuana were among those
who were caught in the conspicuously successful 1951 enforcement
work of the Bureau.
They included such characters as Waxey Gordon,
noted New York hoodlum; Harold "Happy" Meltzer, associate of
numerous kingpin gangsters such as Mickey Cohen and the late
Buggsy Siegel; Abraham Chalupowitz, alias Abe Chapman, one-time
member of the narcotics branch of New York's "Murder, Inc." mob;
Prank McKee, alleged member of Chicago's Tuohy gang^ and
William Levin, of California's now extinct "Black Tony"
Parmagini g a n g .
Commissioner Anslinger told the Secretary that the Federal
narcotic agents operated throughout the year under a mandate to
discover and block important supply sources, leaving to local
authorities where possible the conduct of investigations of
purely local importance.
Increases in many cities in the local
police personnel assigned to narcotic work have facilitated this
program.
A sharp Increase in the amount of heroin -- the most
dangerous of the illicit drugs -- seized during the year testified
to the success of the year's enforcement program.
The seizures
totaled 9^8 ounces compared with 731 ounces in the calendar year
1950. The bulk of the seizures were at interior supply points.
Seizures of narcotic drugs of all classes in 1951 totaled 3,135
ounces, compared with 2,416 ounces in 1950 .

2
Seizures of marihuana In 1951 totaled 36,091 ounces compared
with 45,668 ounces In 1950 .
Seizures of cocaine were moderate, and this, according to
Commissioner Anslinger, is one of several indications that the
cocaine traffic, which was a serious problem two years ago, now
is considerably diminishing.
The heroin traffic continues to be the most pressing problem
in narcotic enforcement, Commissioner Anslinger said. However,
the blows struck at supply sources in 1951 have resulted in
heroin being less plentiful,
Commissioner Anslinger noted that
where prices remained constant, considerable dilution of the
drug has been encountered.
A table showing the arrests by districts during 1951 under
the Federal Narcotic Law and the Marihuana Act appears at the
end of this release.
Most notorious of all the hoodlums to fall into the Narcotics
Bureau net during 1951 was Irving Wexler, better known as
Waxey Gordon. As a result of the arrest of Gordon and two of his
lieutenants, Sammy Kass and Ben Katz, on a New York city street
last July, as they were about to deliver one-half kilogram of
heroin, Gordon is now serving a prison term of 25 years to life,
Kass a sentence of 10| to 22 years, and Katz a term of 3§ to
7 years. A fourth defendant, arrested the same day, Arthur Repola,
received a sentence of ten to 20 y e a r s .
This group was considered one of the most important local and
interstate sources of narcotics supply in this country.
Ranking close to the Gordon group in importance was a mob
headed by Harold "Happy" Meltzer, notorious associate at one time
or another of big time gangsters such as Mickey Cohen,
Meyer Lansky, the late Buggsy Seigel and others.
Meltzer and twenty-four other persons were indicted on
narcotics charges as the outcome of an investigation that began
in 1945 and, extended not only throughout the United States but
to Cuba, France, Italy, Turkey, Greece, and Mexico.
Max Cossman,
leading west coast and Mexico drug trafficker, was indicted with
Meltzer.
They and their fellow defendants were accused of
conspiring to illegally import opium into the United States from
Mexico, and also import heroin from abroad on a large scale, for
distribution throughout the North American continent.

284
-

3

-

Meltzer, arrested in California, was removed to New York
for prosecution, and received two five-year prison terms, to
run concurrently, when he pleaded guilty.
Cossman is now
serving a sentence given him in Mexico, and will face the
United States indictment when Mexico releases him.
Meltzer, Cossman and four others of the group were on the
Narcotics Bureau's International List of suspects.
Most of the
25 persons indicted are still awaiting trial.
Narcotic smuggling and counterfeiting were mixed in the
affairs of another mob brought to justice in 1951 * with 23
individuals arrested and a total of 28 defendants named in two
indictments.
This New York group was headed by Joseph Orsini, who had
Salvatore Shillitani, Anthony Martello, Vincent Randazzo,
Eugene Gianini and others as associates.
The gang was rounded
up after narcotic agents purchased one-fourth kilogram of heroin
from Shillitani and Martello.
It was established that the heroin
had been obtained by the Orsini organization in Marseilles,
France, through a brother of Joseph Orsini.
"While working up the case, the narcotic agents materially
assisted the United States Secret Service in trapping Orsini
and Shillitani as counterfeiters, The trap was sprung through
the purchase of $100,050 in counterfeit money from Shillitani
through Orsini.
Joseph Orsini was sentenced in December to five years
imprisonment in a narcotic case and five years additional for
counterfeiting.
Shillitani was also given sentences under both
the narcotic and counterfeiting laws and will have to serve
a minimum of fifteen y e a r s .
A former member of the narcotics branch of New York's famous
"Murder, Inc." gang received a .fifteen-year prison sentence and
was fined $7,000 after his arrest as a big-time Pacific coast
drug trafficker. He was Abraham Chalupowitz, alias Abe Chapman.
Chalupowitz made the mistake of selling five ounces of heroin to
an undercover agent of the narcotics bureau in the San Francisco
area. Two well-known mobsters were arrested with him. These
were William Levin, who belonged to the "Black Tony" Parmagini
gang of California, and Frank McKee, alleged member of the Tuohy
gang of Chicago.

- 4 -

Chalupowitz already had three convictions for major
narcotic offenses to his credit, and was regarded as probably
the largest operator in Pacific coast drug traffic.
Chalupowitz pleaded guilty.
trial.

McKee and Levin are now awaiting

Another victim of the 1951 narcotics drive who enjoyed
prominent connections in the underworld was John Howard Creighton.
Early in December, 1950, an undercover narcotic agent purchased
a quantity of heroin from Creighton in the vicinity of the
border town of Brawley, California.
Thereafter, through the
unwitting aid of Creighton, the agent made other heroin purchases
from Abraham Pacheco.
Creighton has been identified as a former
partner in the narcotic traffic with the notorious
Robert D, Linville, alias "The Professor", who was sentenced to
ten years imprisonment in California in 1947 for the sale of
drugs.
Creighton and Pacheco' are under indictment.
When
arrested, Creighton had two pistols in his pockets and was given
a prison sentence for possessing them.
An apparent tie-up between the New Y o r k and Los Angeles
underworlds was disclosed after an undercover agent purchased
four ounces of morphine hydrochloride from Lewis Alfred Salerno
in Los Angeles last November 7.
Agents arrested Salerno and
also Guido Anth o n y Penosi, and seized 34 ounces of heroin.
Salerno and Penosi, identified as members of the "107th. Street
Mob" in New York city, allegedly were acting as principal
distributors of heroin in wholesale lots to dealers in the
Los Angeles area.
At the time of the arrests, Penosi was free on
$7,500 bail from the southern district of New York in a
counterfeiting case.
A two-way traffic between Texas and N ew Y o r k in hero i n and
marihuana was broken up in one of the successful prosecutions of
1951.
Thirty-five defendants were indicted, and thirteen of
these have received prison sentences so far.
Eugene Tramaglino, for many years a persistent violator of
the narcotic laws and high among the biggest names in the under­
world Who's Who, was one of the ring leaders in this traffic.
He was convicted and given a ten-year sentence plus a fine of
$4,000. Raymond Rosario, another of the ringleaders, also was
convicted and given a fifteen year sentence plus a fine of
$11,000.
Lesser defendants received sentences of two to six years.

o ^o
C O O

-

5

-

Members of the ring transported heroin from New York to
Texas, exchanged it there for marihuana, and then took the
marihuana to New York and sold it to peddlers in the Harlem area.
Another Texas-New York arrangement for the exchange of
heroin and marihuana was uncovered at Houston, Texas.
Six
arrests were made and 50 pounds of marihuana and 7 ounces of
heroin seized.
The marihuana had been smuggled into-the
United States from Mexico, and was exchanged for heroin supplied
by illicit dealers in New York and other eastern cities.
The principal defendant, John Calvin Young, was given
a prison term of 7 -J- ye a r s .
Still another group of participants in the Texas-New York
barter traffic -- the exchange of heroin for marihuana -- was
trapped in Houston during the months of September, October and
November, resulting in the arrest of Judson R. Henderson,
Leona Henderson, Travis Burks and Johnnie V. Gates.
The *arrests
were made after marihuana purchases totaling $ 1,300 were made
by undercover men.
Narcotic agents identified Henderson as one of the largest
wholesale marihuana and heroin dealers in Texas, and as the
source of supply for several large wholesale marihuana dealers
in New York City.
The New York marihuana dealers allegedly paid
Henderson with heroin in many cases for the marihuana to be
supplied to them. Elisha Brice was given a ^0-month prison
term at Houston in October for smuggling marihuana from Mexico
to be delivered to Henderson.
Close watch kept by narcotic agents and police officers on
a cemetery in San Antonio, Texas, paid off when the officer
arrested Matias Jiminez Benavides as he drove up in a car in
M c h were two paper sacks containing 3,000 grains of heroin.
Benavides said that he was promised a thousand dollars to bring
the sacks to San Antonio from Eagle Pass, Texas, after it had
been smuggled across the border from Mexico.
Benavides pleaded
guilty and was sent to prison for 3 years.
During the period from June to October, 1951, narcotic agents
conducted a series of investigations which resulted in the
purchase of narcotic evidence from 77 persons engaged in
illicit drug traffic in Cleveland, Youngstown, Canton and
Akron, Ohio.
Seventy-four arrests were made, and to date 65 of
the defendants have been convicted and given prison sentences of
one year to ten years.
Thirteen automobiles used by the

287
r- 6 defendants were seized.
Three of the convicted defendants were
identified as major suppliers of illicit narcotics in the
Cleveland area.
They are A n drew LaConti, Joseph Leanza and
Carl Talarico, who received sentences of ten, five and three
years respectively.
The two owners of a drug store in Winston-Salem,
North Carolina were sent to prison for operating a prescription
scheme which involved the purported sale of large quantities of
cough syrup.
They were John R. Waters and R a nsom F. Carswell,
each of whom received a three-year sentence.
Their pharmacist,
James P. Rhodes, was given a two-year sentence.
The evidence showed that in fifteen months the drug store
sold 28,000 tablets of dilaudid, a narcotic.
It was established
that of 2,449 prescriptions on which dilaudid tablets were sold,
only 243 were legitimate.
The others were camouflaged, calling
for eight ounces of cough syrup to each grain of dilaudid.
Narcotic agents calculated that to fill these prescriptions would
have required 32 gallons of the particular cough syrup, whereas
the drug store had purchased only eight gallons.
The evidence
showed the dilaudid tablets were sold to drug addicts straight,
without the cough syrup.

0O0

- 7 Arrests Reported by Districts, Bureau of Narcotics
Calendar Year 1951

Federal
: Narcotics :
#
Law
:
♦

District

# 1.

Boston

2 . New York

Marihunan
Act

:

Total

70

13

83

304

49

353

3.

Philadelphia

171

54

225

5.

Baltimore

186

97

283

71

33

104

*825

25

850

6 . Atlanta
7.

Louisville

8.

Detroit

300

46

346

9.

Chicago

225

89

314

10.

Houston

271

327

598

11.

Kansas City

108

59

167

12.

Minneapolis

94

35

129

13.

Denver

47

154

201

14.

San Francisco

192

96

288

15.

Seattle

166

35

201

24

6

30

3,054

1,118

4,172

16 . Honolulu

Total

*

Including

Note;

759

arrests under Kentucky Addict Law.

The Bureau of Narcotics does not have a No. 4 District.

In answer to inquiries, Secretary Snyder made the

American people is in the improvement of all Government

service to meet the highest standards of integrity,
efficiency and economy.

This is the type of program

that the President, the Commissioner of Internal Revenue
and I have been and are firmly and vigorously endeavoring
to carry o u t ^ i welcome Senator Williams 1 endorsement
of the P r e s i d e n t s Reorganization Plan No. 1."

jjfj H
In answer to inquiries, Secretary Snyder made the

following statement:
”1 welcome Senator W i l l i a m s ' endorsement of the

President's Reorganization Plan No. 1^

We are all

interested in the constructive program for improvement
that is under way in connection with the reorganization

of the Bureau of Internal Revenue.

I believe the

interest of the American people is in the improvement of

all Government service to meet the highest standards of
integrity, efficiency and economy.

This is the type of

program that the President, the Commissioner of Internal

Revenue and I have been and are firmly and vigorously

endeavoring to carry out.”

T R E A S U R Y

D EP A R T M EN T

Information Service

Wa s h in g t o n , d . c .

IMMEDIATE REIEASE,
Thursday, February 7 3 1952.

S -2957

In answer to inquiries, Secretary Snyder made
the following statement:

"I welcome Senator Williams'

endorse­

ment of the President's Reorganization
Plan No, 1 of 1952.

We are all interested

in the constructive program for improvement
that is under way in connection with the
reorganization of the Bureau of Internal
Revenue.

I believe the interest of the

American people is In the improvement of
all Government service to meet the highest
standards of integrity, efficiency and
economy.

This is the type of program that

the President, the Commissioner of Internal
Revenue and I have been and are firmly and
vigorously endeavoring to carry out."

0O0

T R E A S U R Y

D EP A R T M EN T
WASHINGTON, D .C .

Information Service

IMMEDIATE RELEASE
Friday, February 8 , 1932

S -2958

Secretary Snyder today announced the advancement, effective
February 18, 1952, of Levellyn A. Jennings from Second Deputy
Comptroller of the Currency to First Deputy Comptroller of the
Currency to succeed James Louis Robertson, who has been appointed
to the Board of Governors of the Federal Reserve System.

The Secretary also announced the advancement of William M,
Taylor, heretofore Third Deputy Comptroller of the Currency, to
the position of Second Deputy Comptroller of the Currency.
Mr. Jennings has served as Second Deputy Comptroller since
March 1, 1951 and has been a member of the staff of the C o m p t r oller1f
office since 1929.
Mr. Taylor has served as Third Deputy
Comptroller since March 1, 1951* having joined the staff of the
Comptroller’s office on August 2, 1926.
To fill the vacancy created in the Third Deputyship, Secretary
Snyder announced, the appointment, also effective February 18, of
Griffith W. Garwood as Third Deputy Comptroller of the Currency.
A native of Ohio, Mr; Garwood removed with his parents, at an early
age, to Nebraska and later to Colorado, where he attended the
University of Colorado. He entered the service of the Comproller’s
office in 1925 and served progressively as receiver of insolvent
national banks, Administrative Conservator in the Reorganization
Division, District Supervisor and Supervising Receiver in the
Insolvent Division, and, more recently, as Special Disbursing
Agent and Chief of the Organization Division.

0O0

-

2

-

Under the 1792 law setting up the commission as an annual
body it was provided that any mint officer or employee found to
have debased coins with fraudulent intent should be put to death.
The penalty now is lighter.
The 1951 silver coin production of the Mints totaled 320
million pieces with a total value of $61,434,219.70.
(Reporters and photographers will be admitted to the
Mint at Philadelphia, 16th and Spring Garden Streets, in advance
of the opening meeting of the Commission on February 13.)

Nellie Tayloe Ross, Director of the Mint, announced today
that she will convene the Annual Assay Commission at the United
States Mint at Philadelphia on Wednesday morning, February 13,
1952, for the traditional "trial of the coins," Conducting the
trial will be 12 members of the commission just appointed by
President Truman,

(

J

The Assay Commission, Mrs. Ross pointed out, is one of the
oldest and most diginified institutions of the Government,
having been provided-?or, at the suggestion of Alexander Hamilton,
in the sames^tirte^that established the Mint on April 2, 1 7 9 2 ^
assemblSc^mce that time. Its function is to make tests of
ns, taken at ^random from the three coinage mints during the
ceding year, to determine whether they conform in weight wnH
fineness to legal requirements.
„
m j tv
Named
by
the
President
as
members
of
the^
commission
arej
* *1 •
n
,
,
_
A .
,,
______ Mrs, JuliaaGgews. 19 Montrose Road, Scarsdale, New York;
Mrs. Henry Ridgely, The Green, Dover,' Delaware; Mrs. Florence
K. Murray, 10 Kay Street, Newport, Rhode Island; Jr. Jean Model,
Lake Avenue, Greenwich, Connecticut; Mr. John Franklin,
Radio Station KYW, Philadelphia, Pennsylvania; Mr. Julius H.
Requard, 7610 German Hill Road, Baltimore 22, Maryland; Mr. Stanley
Sagner, 34.17 Dennlyn Road, Baltimore 7, Maryland; Mrs. Alice D.
Vincentis, 706 Edgemore Road, Philadelphia, Pennsylvania;
Mr. Clifford Spoerl, 1st National Bank of Jersey City, New Jersey;
Mr. Robert L. Huffines, Jr., 350 Fifth Avenue, New York, New York;
Mr. Hans M. F. Schulman, 54-5 Fifth Avenue, New York 17, New York;
Dr*. U«!!«rte R # Brode, National Bureau of Standards, Washington,
statutory members are Judge William H. Kirkpatrick of
States District Court for Eastern Pennsylvania,
xixa.j.au.cj.jjtjiia; Preston Delano, Comptroller of the Currency,
Washington; Joseph Buford, Assayer of the United States Assay
Office, New York City.
It will take the commission two days to complete its work.
will examine and test the coins which have been placed, through
the year, in a "pyx box"— one silver coin from every delivery of
10,000 made at all the mints. The "pyx" or coin chest is so styled
because a receptacle for sample British coins was once kept in the
Chapel of the Pyx in Westminister Abbey, London.

T R E A S U R Y

D EP A R TM EN T

Information Service

IMMEDIATE RELEASE
Monday. F e b r u ary 11.1952

WASHINGTON, D .C .

S -2959

Nellie Tayloe Ross, Director of the Mint, announced today that
she will convene the Annual Assay Commission at the United States
Mint at Philadelphia on Wednesday morning, February 13, 1952, for the
traditional "trial of the coins.” Conducting the trial will be 12
members of the commission just appointed by President Truman.
The Assay Commission, Mrs. Ross pointed out, is one of the oldest
and most dignified institutions of the Government, having been pro­
vided for, at the suggestion of Alexander Hamilton, in the same
statute that established the Mint on April 2, 1792. A commission
has assembled each year since that time. Its function is to make tests
of new coins, taken at random from the three coinage mints during the
preceding year, to determine whether they conform in weight and
fineness to legal requirements.
Named by the President as members of the 1952 commission are:
Mrs. Julia Crews, 19 Montrose Road, Scarsdale, New York; Mrs. Henry
Ridgely, The Green, Dover, Delaware; Mrs. Florence K. Murray,
10 Kay Street, Newport, Rhode Island; Mr. Jean M°del, Lake Avenue,
Greenwich, Connecticut; Mr. John Franklin, Radio Station KYW,
Philadelphia, Pennsylvania; Mr. Julius H. Requard, 7 6 10 German Hill
Road, Baltimore 22, Maryland; Mr. Stanley Sagner, 3^17 Dennlyn Road,
Baltimore 7, Maryland; Mrs. Alice D. Vincentis, 706 Edgemore*Road,
Philadelphia, Pennsylvania; Mr. Clifford Spoerl, 1st National Bank of
Jersey City, New Jersey; Mr. Robert L. Huffines, Jr., 350 Fifth
Avenue, New York, New York; Mr. Hans M. F. Schulman, 5^5 Fifth
Avenue, New York 17, New York; Dr. Wallace R. Brode, National Bureau
of Standards, Washington, D. C. Additional statutory members are
Judge William H, Kirkpatrick of the United States District Court for
Eastern Pennsylvania, Philadelphia; Preston Delano, Comptroller of
the Currency, Washington; Joseph Buford, Assayer of the United States
Assay Office, New York City.
It will take the commission two days to complete its work. The
members will examine and test the coins which have been placed,through
the year, in a "pyx box” -- one silver coin from every delivery of
10,000 made at all the mints. The "pyx” or coin chest is so styled
because a receptacle for sample British coins was once kept in the
Chapel of the Pyx in Westminister Abbey, London.

237

- P -

Under the 1792 law setting up the commission as an annual body
it was provided that any mint officer or employee found to have
debased coins with fraudulent intent should be put to death. The
penalty now is lighter.
The 1951 silver coin production of the Mints totaled 320
million pieces with a total value of $6 1 ,4 3 4 ,2 1 9 .7 0 .
(Reporters and photographers will be admitted to the Mint at
Philadelphia, 16th and Spring Garden Streets, in advance of the
opening meeting of the Commission on February 13.)

f

0O0

msmm$ mmim

fusadsy, February 12, 19$2*
tlm Secretary of the treasury announced last evening that the tendera for

$1,300,000,000, cr thereabouts, of 9 1-d ay Trmmxry bill» to be dated February 14 and to
mature May

IS, lifts which were offered on February 7, aere opened at the Federal Resero

Baudot on February 11«

the details of this issu© are

m

folio?/® t

fetal applied f o r «* $&*A$2*735*000
fetal accepted
*. l,301,S?0,00ö

Average price

(lucide $190,031,000 entered on a noneea^etitive basis and accepted in full
at the average price shown beloar)
* 99*58$ j$qp&valent rate of discount apprese. 1*643$ per annum

Range of accepted competitive hides

Ü #

~99*68$ levaient rate of diaeooat aprese. 1*484$ per m i

!•»

( 2 9

percent

»

*

•

*

*

1*6$$$ •

«

ofthe amount bid for at the lew prise was accepted)

Federal Reserve
District

fetal
Applied for

total
Accented

Boston

I k3,608,000
l,k83,353,000
38,076,000
714,310.,000
29,838,000
3k,363,000
201,861,000
kl,688,000
9,052,000
53,ill,»

6

Mem f M M

Philadelphia
Cleveland
Rtehsiond
Atlanta
Chicago
St* Louis

Minneapolis
Kansas 0ity
Dallas
San Francisco

w , 591*000

36,338,000
757,353,000
23,366,000
73,976,000
28,108,000
32*653,000
31*0,306,000
26,237,000
9,052,000
k9,797,000
k3,105,000
78,393,000

62,382,739,000

81*303,570,000

65,5k5,ooQ
ta m .

39

T R E A S U R Y

D EP A R TM EN T

Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
Tuesday, February 12, 1952.

S - 2960

The Secretary of the Treasury announced last evening that the
tenders for $1,300,000*000, or thereabouts, of 91-day Treasury bills
to be dated February 14 and to mature May 15, 1952, which were
offered on February 7 , were opened at the Federal Reserve Banks on
February 11.
The details of this issue are as .follows:
Total applied for - $2,182,739,000
Total accepted
- 1,301,570,000 (includes $198,831,000
entered on a n o n ­
competitive basis and
accepted in full at the
average price shown below)
Average price
** 99*505 Equivalent rate of discount approx.
1.643% per annum
Range of accepted competitive bids:
High

- 99.625 Equivalent rate
1,484$
- 99*581 Equivalent rate
1 .658$

Low

(29

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

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

Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for
$

43,608,000
1,483,353,000
74.141.000
29.818.000
34.363.000
201,861,000
41.688.000
9,052,000
53.643.000
65.545.000
107,591,000

36,138,000
757.351.000
21,366,000
73.976.000
28.108.000
32 ,653,000
140.306.000
2 6 ,2 1 7 , 0 0 0
9 ,0 5 2 ,0 0 0
49.797.000
48.415.000
78.191.000

$ 2 ,182,739,000

$1 , 301, 570,000

,

38 076,000

TOTAL

Total
Accepted

0O0

$

;

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cutton having a staple of less than l-3/l6 inches in length, COMBER
WASTE° U P 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 cottonwastes other than comber waste smade 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 .......
P.anflHa

. . . . ............ . • • <

France . .... ...........
British India .........
Netherlands ..........
Switzerland ..........
R

p

I enutn

.Tanan
f.Vvi n a
TT.cnmt.
f!nha

. . . . _. . . . . . . . . . . .
. .............
.................
♦
....... .

C e m a n v

Italy

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

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

.......

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

4,323,457
239,690

227,420

27,370

234,666

Imports
Established :
Sept.
20, 1951
s
33-1/3? Of !
: Total Quota : to Feb. 12, 1952
:

1,441,152

27,370

75,807

69,627

68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263
5.482.509

1/

Total imports
Sept. 20, 1951 t©
Feb. 12, 1952

Included in total imports, column 2.

Prepared by the Bureau of Customs

—

22,747
14,796
12,853

—

-

—

-

M»

-

—

—

—

* *

mm

25,443
7.088

262.036

1.599.886

—

-

***
«*

27.370

1/

Cotton under 1-1/8 inches other than rough or harsh under 3/4ff
Imports Sept. 20, 1951, to February 12, 1952« inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
British India ......
China .............
Mexico .............
Brazil ............
Union of Soviet
Socialist Republics
Argentina ..........
H a i t i ......*......
Ecuador ........... .

783,816
2A7.952
2,003,483
1,370,791
8,883,259
618,723

«■*
51,117
«
8,883,259
142,837

475,124
5,203
237
9,333

—
—
—
—

Established Quota

Country of Origin

Imports

Honduras .............
Paraguay ............
Colombia .. ......... ..
Iraq .................
British East Africa ...
Netherlands E. Indies
Barbados ..i..........
l/0ther British W. Indies
Nigeria ..............
2/0ther British 1. Africa
3/0ther French Africa ..*
Algeria and TunidSa ...

Imports

752
871
124
195
2,240
71,388
-

21,321

5,377

16,004
689
—

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Goast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4*
Imports Sept. 20, 1951«to February 2, 1952
Established Quota (Global)
70,000,000

Cotton 1-1/8” or more, but less than 1-11/16“
-Imports Feb. 1. 1952, to February 12, 1952 .....
Established Quota (Global)

Imports

16,567,274

45,656,420

1>064*661

Cotton, harsh or rough (except cotton of perished staple,
gttabbots, and cottonpickings),/white in color, of 1-3/16
inches or more but less than 1—3/8 inches
y
^Imports July 5, 1951 to January 31» 1952, inclusive
__
"Established Quota (Global)
Imports
______________1.5QQ.OQQ

IMMEDIATE RELEASE

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

T R E A ET TR Y

T Ï E P A B T i l P ATT*

N Imports

1 7 2 j6 2 9

—
—
—
—
—
—
—
—

\

imports uux,y j * j-yjj. w «cu.iu.abjL
"Established Quota (Global)

Imports
1 7 2 »629

IMMEDIATE RELEASE
Thursday, February li*, 1952*

TREASURY DEPARTI ENT

Washington

S-2961

Preliminary data on imports for consumption pf cotton and cotton waste chargeable to the quotas
established by the Presidents Proclamation of September 5, 1939, as amended
COTTON (other than- linters) (in pounds)

t;
Country of Origin

Cotton under 1-1/8 inches other than rough or harsh under 3/kn
Imports .Sept. 20, 1931,“" ^ February 12, 1952, Thclusiv^ : --- T *

.

Established Quota ■-

Egypt and;the AngloEgyptidn Sudan
‘
Peru .......... .
British India .....
China ..
<r*
Mexico .......
.
Brazil ............
Union of .Sovie t
“ |
Socialist Republics
Argentina .. .........
Eo.iti ...............
Ecuador.... .*.....
1/

783,816
21*7,952
2,003,1*83
1,370:,791
8,883,259
j !6l8,723

Imports ;

Honduras ••••••
Paraguay
Colombia

51,117

8,883,259:
11*2,837

1*75,121*
9,203
237
9,333

•Counter of Origin

Established Quota

Imports

#. «.

871
12k

[;* British East’Afifea.:...
2,2l;0 p
Netherlands E. Indies •
71,388
B^Pbddos ............... ....
1/0ther British ¥... Indies
21,321
Nigeris, • • • • • «
' ?,377.:
>¿/Other British W. Africa
lSjX>k
3/0ther French Africa ...".... . £139
. Algeria and Tunisia ..."...... . -

Other tharf Barbados, Bermuda, Jamaica, Trinidad,-, and Tobago.

2/ Other than" Gold Coast and Nigeria»
. _
hJ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3A ”
Imports Sept. 20, 19$I, to February 2, 1952
Established Quota (Global)
-70-,000,000 ....

-'.Imports
l,061*,66l

Cotton 1-1/8” or more, but-less*than'l-ll/ié*
Imports Feb. 1, 1952, t®>February 12;'1952 *'
Established-Quota (Global)
lt5,656,1*20

-* ‘-Imports
16,567,271*

Cotton, harsh or rough“Cexcept cotton"of perished staple
grabbots, and cotton pickings), whitein color, of
inches or more but less than 1-3/8 inches--- ■
----------Imports .Uuiy 5, 1951'to January'"31, 19^2, ’inclusive';

Established'Quota (Global)
1 ,5 0 0 ,0 0 0

Imports
172,629

GO

o

- 2 -

COTTON WASTES
.(In pounds)
COTTON CARD STRIPS made from cotton having.a staple of less than 1-3/16 inches in length, COIiBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTER, 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 Y Total imports
: Esiablished :
Imports.
.1/
: TfiffiAL QUOTA : Sept* 20, 1951 to :
33—1/3$ of : Sept., 20,,. 1951
:
^
______ : Feb* 12, 1952
’ : Total Quota ; to Feb* 12, 1952

United Kingdom ...... *7
1*,323,1*57
27,370
1,10*1,152
Canada ......
••*••
239,690
231*,666
France .................
227,1*20
75,807
British India ••••*•*••••
69,627
Netherlands •••••••••••.
68,21*0
22,71*7
Switzerland .......... .
1*1*,388
ll*,796
Belgium ...............
38,559
’
. 12,853
Japa n..... ........ .
31*1,535
17,322
- 7 :•
C h i n a .......
E g y p t ............ ...
8,135
Cuba
.»•.....
6,51*1*
—
—
Germany ..............
76,329
25,1*1*3
Italy ............ .
21,263________ ■
__________ ■ , 7,088
_________ __________
1/

5,1*82,509_________ 262,036__________ 1,599,886

Included in total imports, column 2.

Prepared by the Bureau of Customs

27,370

~

. ,»•
«*
-

.
-

______ 27,370

*#■".

fi.

FOR IMMEDIATE RELEASE,

February.- I£».iL?5Z--inrijiary figures showing the
The Bureau of Customs announced.tqdi
¿tUUHOJ
quantities of wheat and wheat flou^entereST,'*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, 19l*2,
for the 12 months commencing May 29, 19 51, as follows:

i

Wheat flour, semolina,,
s
crushed or cracked
8
wheat, and similar
:
wheat products
Imports
Ijnports
: Established 8
Established :
Quota
Quota
8 May 29, 1951,
*May 29, 1951, to :
•
• to Feb# 12, 1952
JFebruary 12, 1952
(Bushels)
(Pounds)
(Pounds)
(Bushels)
Wheat

Country
of
Origin

795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
—
Australia
100
Germany
*100
Syria
New Zealand
Chile
100 T
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
w
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
*Sweden
Yugoslavia
—
Norway
<■»
Canary Islands
1,000
Rumania
1Q0
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
Belgium
100
800,000

580,097

mm
—
—
—
—
«Ml
—
«i»

mm
10
-*
*•
—
—
—

am
—

mm
**•
5B0,'
X07

3,815,000
2h,00Q
13,000
13,000
8,000
75,ooo
1,000
5,000
5,ooo
1,000
1,000
1,000
lh,000
2,000
12,000
1,000
1,000

3,815,000

( 11,200

L0
•- *

.m

854
115

ma

l,j000

1,000
1,000
1,000
1,000
1,000
1,000
1,000
-

9m

--

.■ .

-

■
m

li ,000,000

T2^

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Thursday, February 1^, 19$2

S~2962

The Bureau of Customs announced today preliminary 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, 19hl, as modified by the Presidents proclamation of
April 13, 19i*2, for 12 months commencing May 29, 19$1, as follows:

.

Country
of
Origin

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established;
imports
Established :
Quota
:May 29, 19$1,
:May 29, 19511, to
Quota
:to Feb. 12, 19$2
{February 12, 19$2
(Pounds)
(Bushels)
(Pounds)
(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
lugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

Wheat

795,000
-

100
-

100
100
-

100
2,000
100
1,000
100
—
f#'
»
*
-

580,097
-

10
•
-

m
-

1,000
100
100

-

100

«■p

Ml
-

m

3,81$,000
-^
-

11,20 0
62
-

85U
U5
M»

+m
-

mm

m

100

800,000

3,81$,000
2U,000
13,000
13,000
8,000
7$,ooo
1,000
$,000
5,000
1,000
1,000
1,000
111,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

580,107

U,odo,ooo

3,827,231

f& 5
IMMEDIATE RELEASE
February

1952

f3

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, 1952, to
February 2, 1952^ inclusive, as follows:

Products of the
Philippines

•
: Established Quota
Quantity
:

Buttons .........

850,000

:
î

Unit of
Quantity

Gross

37,925
17,080

200,000,000

Number

Coconut Oil .....

448,000,000

Pound

6,000,000

it

Cordage .........

1,040,000

n

1,904,000,000

6,500,000

Imports as of
Feb. 2, 1952

•

Cigars ........••

(refined ••••
Sugars
(unrefined.••

:
:

6,342,610
513,320
"

ii

46,535,521
tt

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, February 13, 1952

S-2963

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 19l?6, from January 1, 1952, to
February 2, 1952, inclusive, as follows?

Products of the
Philippines

j Established (biota

i

Quantity

j

Unit of
Quantity

■ 9
0

850,000

Cigars ..........
Coconut O i l .... .

yjlOoo

37,925

200,000,000

Number

17,080

l?i?8,000,000

Pound

Cordage

6,000,000

ii

RIOS

l,0Ji0,000

u

1,901?,000,000

it

(refined .
Sugars
(unrefined ..
Tobacco .........

Imports as of
Feb, 2, 1952

#
0

Buttons .........

0 0 0 9 0 9 9 9 0 * * 0 0

;
?

6,3i?2,6lO
518,320
»

1*6,535,521
6,500,000

ii

IMMEDIATE RELEASE

J

February ì&i 1952

- 2* fé? c J

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within tariff-rate quota limitations from the be­
ginning of the quota periods to February 2, 1952, inclusive, as follows:

Unit
Period and Quantity

Commodity

Yihole milk, fresh or

of
Quantity

Imports as of
Feb. 2, 1952

, Calendar year

3,000,000

Gallon

3,502

f.ream

. Calendar year

1,500,000

Gallon

87

Dnt.l.ftr1 .... ....... .

. Nov. 1, 1951Mar. 31, 1952

50,000,000

Pound

60,789

31,472,108

Pound

a)
Quota filled

150,000,000
249,600,000

Pound
Pound

50,874,710
11,743,668

5,000,000

Pound

854,357

Fish, fresh or frozen,
filleted, etc», cod,
haddock, hake, pollock ,
Calendar year
cusk, and rosefish ...
White or Irish Potatoes:
certified seed ••••••••
............. .
Wa 1mit.a........ .

12 months

from
Sept. 15. 1951

. Calendar year

Petroleum and petroleumi
products •••»••••••••• (2)Calendar year

2,961,437,371
Venezuela
932,304,358
Netherlands
Other countries 1,091,843,071
Almonds:

,12 mo.
,0ct.

from

1,

1951

Gallon
Gallon
Gallon

551,017,392
304,950,509
285,869,517
1,295,890

4,500,000

Pound
223,263

*0f the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste)»

(1)

Imports for consumption at the quota rate are limited to 7,868,027 pounds
during the first three months of the calendar year*

(2)

Estimated quotas

OUC

TREASURY DEPARTMENT
Washington
MEDIATE RELEASE
Thursday .February 14 « 1952

S-296L

Tho Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within tariff-rate quota limitations from the be­
ginning of the quota perioos to February 2, 1952, inclusive, as follows:

TETE
Commodity
Period and Quantity
of
Imports as of
...... .... ........ .
........... ......... Quantity_____ Feb, 2 , 1952
Whole milk, fresh or
s
o
u
r
......

’Calendar year

3,000,000

Gallon

3,502

Cream ••.#•*••••

Calendar year

1,500,000

Gallon

87

Nov# 1 , 1 9 5 1 -

50,000,000

Pound

60,789

31,1*72,108

Pound

Quota filled

150,000,000
21*9,600,000

Pound
pound

50,87k,710
11,7^3,668

5,000,000

Pound

85M 57

Butter

.Mar. 31, 1952
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,

cusk, and rosefish ,♦#.

Calendar year

White or Irish Potatoes :
certified s e e d ......
other............ .

12

Walnuts ........ ..... T .

Calendar year

months from
Sept. 15, 1951

(1)

Petroleum and petroleum
products
,(2)Calendar year
Vene zuela
Netherlands
Other countries

Almonds j
shelled

♦ ♦ •*,,.*,.#,12

,961,1*37,371
932,301*,358
,091,81*3,071

Gallon
Gallon
Gallon

mo# from

prepared, etc# #....*Oct#

1 , 1951

* 4 ,5oo,ooo

551,017,392
30lt,950,509
285,869,517
1,295,890

Pound

223,263

^Of the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste)#

(1) Imports for consumption at the quota rate are limited to 7,868,027 pounds
during the first three months of the calendar year#
(2) Estimated quotas*.

- 3 gsgflg*:«
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

U2 and 117 (a) (1) of the Internal Revenue Code,

11$ of the Revenue Act of 19Ul, the amount of discount at

which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

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

Copies

-

2

-

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

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

or less without stated price frcm jany 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
F e b ru a ry 2 1 , 1?5>2 >
cash or other immediately availw
able funds or in a like face amount of Treasury bills maturing February 21. 19fiii

Federal Reserve Bank on

Cash and exchange tenders will receive equal treatment.

Cash adjustments will bq

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

zzm
TREASURY DEPARTMENT
Washington

<

ä

QC ¿

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February lUt 19$2
•
ggr*
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 , 1 0 0 ^ , °°0-. OT thereabouts, of _ ^ - " da5' ' ¿ W h e ' ^ o ^ o f feT.1 0 1 ^ 0 0 0
in exchange for Treasury bills maturing

Februar y 21, lg|2— ,/to

issue

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

The bills of this series vri.ll be dated _ F e b r u a ^ l , J 2 5 2 ---- > and

May 22. 1952

¿¡S

the face * ooat W i U b° payablE

They vrill t f issued in bearer f o m only, and in denominations of

*1,000, $5,000, $10,000, $100,000, $500 ,000 , and $1,000,000 (maturity value).
Tenders vrill be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p '.m ., Eastern Standard time, Monday , F e b ru a ry ,l 8 ,.J £ ftTenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, aid 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 vail
be supplied by Federal Reserve Banks o r Branches on application therefor.
Others than banking institutions vrill not be permitted to submit tenders
except for their own account.

Tenders vrill be received without deposit from

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

Tenders from others must be accompanied

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

TREA SU RY DEPARTM ENT
Information Service

RELEASE, MORNING NEWSPAPERS,
Thursday, February 14, 1952, '

WASHINGTON, D .C .

S -2965

The Secretary of the Treasury, by this public notice, invites
tenders for $1,100,000,000, or thereabouts, of 91-day Treasury bills
for cash and in exchange for Treasury bills maturing February 21,
1952, in the amount of $ 1,101,712,000, to be issued on a discount
basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated February 21, 1952,
and will mature May 22, 1952, when t h e ;face amount will be payable
without interest.
They will be-issued in bearer form only, and in
denominations of $ 1,000, $ 5,000, $ 10,000, $ 100,000, $ 500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Standard time,
Monday, February 18, 1952.
Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $ 1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99*925. Fractions may not be used.
It is
urged that tenders be made on the printed forms:and forwarded in the
special envelopes which will be supplied* by Federal Reserve Banks
or Branches on application therefor,
,
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for,.unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
.........
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted b i d s . Those submitting tenders
will be advised of the acceptance of 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 ;decìmals) of accepted competitive bids.
Settlement for
accepted, tenders, in accordance with the bids must be made or
completed at the Federal .Reserve Bank on February 21, 1 9 5 2 i’
n cash
or othe¥ imniddlately: available funds or in a like face amdtiht. of
Treasury' bills maturing February 21, 1952.
Cash and.exchange ,tenders
will receive equaT treatment. Cash-adjustments w i 11 be made for
differences between: the par value of maturing bids,accepted in
exchange and the issue price of the.-new b i l l s , -, '.L*.
^
The income derived from Treasury bills, whether interest or
gain from the sale or other dispdsition of the bills, shall not have
any Cl#xemp t Ì oh,:Id s' such, andiviosaofrom the sale or other disposition
of -Treasury;.biils. shall not :have any special.treatment,,.r!às. such,
under the internal Revenue Code/ or laws amendatory or supplementary
t h e r e t o _ the bills shall be' subject to estate, inheritance;; gift or
other"excrise. t a x e s w h e t h e r Federal or 'State, but shall be exempt
from ail taxation now or hereafter- imposed on the principal or .
interest thereof ,by any State/. or any-of the possessions of the,
United: States,, or ;by-‘
.any local, taxing- authority/ For purposes' o f
taxation the amount of discount, at which -Treasury hills are originali:;
sold -by the United States shall be considered, to he interest. Under
Sections. 42 and. 117 (a) (1 )• of. thè internal Revenue Code, as amended
by Section 115; of -ÈfeéURevenue Act-of -1941, the amount o f .discount- at
which; bilis issued/ hereunder rare :sold- shall not be considered to
accru^tintij; such, hiiis/shall be sold/-redeemed or otherwise
disposedc 0f , and such bills :are :excluded from consideration as
capi tal .'assets.. Accordingly.;, the owner of Treasury hills (other
than life Insurance companies )'-issued hereunder need include 'in :his
income f a x ’return only the difference between the price'paid for
such hills, whether on original issue or on subsequent .purchase,
and the. amount actually received- either upon sale or redemption at
maturity during the taxable year for which the return is made,-,as
ordinary gain or loss.
.
Treasury Department Circular Uo. 4l8‘
, as amended,/.and. this
notice, prescribe the terms of the Treasury hills and govern the
conditions of their issue-. Copies of the circular may be obtained
from any Federal. Reserve Bank or B ranch.

oOo

-

2

"Bureau of Internal Revenue agents who carried
our the lew York investigations were not loaned to
or assigned to work under the direction of the Sing
Subcommittee. These agents continued to work for
the Bureau of Internal Revenue under the direction
of Bureau officials, and the results of their work
were to be reported to these Bureau officials* These
agents have supplied to the Subcommittee full informa­
tion on the progress of their work*
"The Bureau of Internal Revenue, in furtherance
of the agreement to fully cooperate with the Sing
Subcommittee, has made available to the Subcommittee
all its files, as well as reports developing in
current investigations*
MAll information which the Bureau has, in the
usual course, made available to the Department of
Justice was made known to the Sing Subcommittee.
continue to
"We expect to/cooperate with the Sing Subcommittee.”

•atgT

$

February^

Cf /
1052

In response to inquiries, Secretary Snyder stated
today:
~Bmder Its obligation to take promptly steps necessary
to detect, and report to proper authorities, any and ail
evidence of irregularities or vrongdoing which c o m to its
attention, the treasury Department has not agreed with the
Xing Subcommittee, or with any other agency of Government,
to delay or defer such action, or to withhold information
from the proper authorities. Any such agreement manifestly
would be improper.
"Following an intensive investigation over the past
sir months by agents of the Bureau of Internal Revenue
into certain matters in the Hew York area, information
developed by these agents was subm&tted to the Department
of Justice for such action as it saw fit to take.
"The Treasury Department has never sought to interfere
in any way with the activities of the King subcommittee* e#-~
the^ House .^ays^aud
t-twe. On the other hand, the
Treasury has sought to cooperate with the Subcommittee in
every way possible.

TREA SU RY DEPARTM ENT
WASHINGTON, D .C .

Information Service
IMMEDIATE RELEASE,
Wednesday, February

13,

1952.

S -2966

In response to inquiries, Secretary Snyder stated today:
"Under its obligation to take promptly steps
necessary to detect, and report to proper
authorities, any and all evidence of irregularities
or wrongdoing which, come to its attention, the
Treasury Department has not agreed with the King
Subcommittee, or with any other agency of
Government, to delay or defer such action, or to
withhold information from the proper authorities.
Any such agreement manifestly would be improper.
"Following an intensive investigation over
the past six months by agents of the Bureau of
Internal Revenue into certain matters in the
New York area, Information developed by these
agents was submitted to the Department"of
Justice for such action as it saw fit to take.
"The Treasury Department has never sought
to interfere in any way with the activities
of the King Subcommittee.
On the other hand,
the Treasury has sought to cooperate with the
Subcommittee in every way possible.
"Bureau of Internal Revenue agents who
carried out the New York investigations were
not loaned to or assigned to work under the
direction of the King Subcommittee. These agents
continued to work for the Bureau of Internal
Revenue under the direction of Bureau officials,
and the results of their work were to be reported
to these Bureau officials.
These agents have
supplied to the Subcommittee full information on
the progress of their work.
"The Bureau of Internal Revenue, in furtherance
of the agreement to fully cooperate with the King
Subcommittee, has made available to the Subcommittee
all its files, as well as reports developing in
current investigations.
"All information which the Bureau has, in the
usual course, made available to the Department of
Justice was made known to the King Subcommittee.
"We expect to continue to cooperate with the King
Subcommittee."

Secretary Snyder announced today that the treasury sill offer on
Monday# February 18, a M / 8 percent treasury Bond to refund the
2-2/2 percent treasury Bonds of 1952-5U called for redemption on
March 15, 1952, in the amount of |1,023,568,350# the new bonds sill
be dated larbh 1, 1952, will mature os March 15, 1959, and will be
sublet to
for redaction on and after March 15, 1911# Interest
sill be adjusted as of larch 35, 1952*

fixe Secretary also announced that holders of the 1*7/8 percent
Certificates of Indebtedness of Series 1*1958 maturing April 1, 1952#
in the amount of §9,52!*,077,000# will be offered at the same time a
1-7/8 percent certificate of indebtedness to be dated larch 1 # 195«#
and to mature February 15# 1953 * Interest will be adjusted as of
March 1# 1952, with respect to this exchange*
The Secretary said that the option to call for redemption on
June 15, 1952, the three issues of Treasury bonds which are eligible
to be called on that date will not be exercised*

IMMEDIATE RELEASE,
Wednesday, February 13, 1 9 5 2 .

S -2967

Secretary Snyder announced today that the Treasury will
offer an Monday, February 18 , a 2-3/8 percent Treasury Bond
to refund the 2-1/2 percent Treasury Bonds of 1952-5^ called
for redemption on March 15 , 1952, in the amount of
$1,023,568,350.
The new bonds will be dated March 1, 1952,
will mature on March 15 , 1959, and will be subject to call for
redemption on and after March 15, 1957.
Interest will be
adjusted as of March 15, 1952.
The Secretary also announced that holders of the 1-7/8
percent Certificates of Indebtedness of Series A-1952 maturing
April 1, 1952, in the amount of $9,52^,077,000, will be
offered at the same time a 1 -7/8 percent certificate of
indebtedness to be dated March 1, 1952, and to mature
February 15, 1953.
Interest will be adjusted as of March 1,
1952, with respect to this exchange.
The Secretary said that the option to call for redemption
on June 15, 1952, the three issues of Treasury bonds which are
eligible to be called on that date will not be exercised..

0O0

§ |§

* $ *

September, 19!?1* In its review of the Bank’ s activities, the Council
notes that that institution made six loans, aggregating nearly
million, to five countries from April 1 to September 30, 19^1,

The

Bank also floated three new security issues, each in a different
currency* One of these, in the United Kingdom, represented the
firs t flotation of the Bank’s bonds in a member country other than
the United States#
A® in the past, the Report is accompanied by comprehensive
statistics on various aspects of United States Government foreign
assistance in the postwar period, as well as on gold and short-term
dollar resources of foreign countries, and gold transactions between
the United States and foreign countries#

~ t that period continued into the quarter ending dune

30*

1951»

For the

three months ending September 3 % 19£l, the direction of the gold flow
was actually reversed, with the United States reporting net purchases
of almost $300 million*

On September 30, 19^1, estimated world gold

reserves (excluding U*S*S*R*), totalled $36*0 billion, of which the
United States held $22.2 billion, or slightly over 60 percent*
The Report discusses the latter stages of the European Recovery
Program, describing particularly developments relating to local currency
counterpart accounts and to transfer guaranties*

The Council's view©

on the financial and monetary policy aspects of the Mutual Security
Program for the fiscal year 195>3 are also presented*
Export-*!mport Rank loans made during the period aggregated
million*

$120

These credits were for a variety of purposes, including the

expansion of production of strategic and critical materials abroad,
the export of raw eotton from the United States, and essential economic
development in underdeveloped countries*

The Bank continued to consult

with the Council on major credits, and on those which involved important
questions of U*S* international financial and economic policy*
The Report discusses actions of the International lionetary Fund
on exchange systems, par values, premium gold transactions, and the
repurchase of Fund drawings, and outlines the highlights of the Sixth
Annual Meetings of the Boards of Governors of both the Fund and the
International Bank which were held in Washington in the first part of

f

PROPOSED PRESS RELEASE OH MAC 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 Council*s
activities for the six months ending September 30, 1951*
The Report reviews significant developments in United States
international trade and payments during the period, including movements
in terms of trade compared with the preceding six months*

Data on price

changes of basic raw materials (largely imported items) are also
discussed*
The Council points out that, despite a reduction in economic aid,
increased expenditures under the Mutual Defense Assistance Program
(MDAP) were sufficient to raise total utilized foreign aid for the
period under review to $2.6 billion, or slightly above that of the
previous six months.

The intensified effort to assist in the re­

armament of the free world against aggression, produced a
expansion in military assistance —

h2

to a level approximating

million for the period under consideration.

percent

$900

Over two-thirds of this

amount was supplied to countries in the North Atlantic area, raising
total utilized MDAP assistance to $1.? billion from the beginning of
1950 to September 30, 1951*
Analysing gold movements and gold reserves, the Council states
that, although gold sales by the United States remained at a high rate
during the first quarter of 1951, a decline in sales that started in

- 3 September, 19^1•

In its review of the Bank's activities, the Council

notes that that institution made six loans, aggregating nearly *9b
million, to five countries from April 1 to September 30, 1951.

Th©

Bank also floated three new security issues, each in a different
currency.

One of these, in the United Kingdom, represented the

first flotation of the Bank's bonds in a member countiy other than
the United States*
As in the past, the Report is accompanied by comprehensive
statistics on various aspects of United States Government foreign
assistance in the postwar period, as well as on gold and short-term
dollar resources of foreign countries, and gold transactions between
the United States and foreign countries*

that period continued into the quarter ending June

30, 1951»

For the

three months ending September 30, 1951, the direction of the gold flow
was actually reversed, with the United States reporting net purchases
of almost ,$300 million*

On September 30, 1951, estimated world gold

reserves (excluding U#S*S*R*), totalled $3&«0 billion, of which the
United States held $22.2 billion, or slightly over 60 percent.
The Report discusses the latter stages of the European Recovery
Program, describing particularly developments relating to local currency
counterpart accounts and to transfer guaranties.

The Council’s views

on the financial and monetary policy aspects of the Mutual Security
Program for the fiscal year 1953 are also presented.
Eixport-Import Bank loans made during the period aggregated $120
million.

These credits were for a variety of purposes, including the

expansion of production of strategic and critical materials abroad,
the export of raw cotton from the United States, and essential economic
development in underdeveloped countries.

The Bank continued to consult

with the Council on major credits, and on those which involved important
questions of U.S. international financial and economic policy.
The Report discusses actions of the International Monetary Fund
on exchange systems, par values, premium gold transactions, and the
repurchase of Fund drawings, and outlines the highlights of the Sixth
Annual Meetings of the Boards of Governors of both the Fund and the
International Bank which were held in Washington in the first part of

PROPOSED PRESS RELEASE ON NAG 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 for the six months ending September 30, 1951*
The Report reviews significant developments in United States
international trade and payments during the period, including movements
in terms of trade compared with the preceding six months.

Data on price

changes of basic raw materials (largely imported items) are also
discussed*
The Council points out that, despite a reduction in economic aid,
increased expenditures under the Mutual Defense Assistance Program
(MDAP) were sufficient to raise total utilized foreign aid for the
period under review to $2.6 billion, or slightly above that of the
previous six months.

The intensified effort to assist in the re­

armament of the free world against aggression, produced a
expansion in military assistance —

k2

to a level approximating

million for the period under consideration.

percent

$900

Over two-thirds of this

amount was supplied to countries in the North Atlantic area, raising
total utilized MDAP assistance to $1.7 billion from the beginning of
19E>0 to September 30, 1951*
Analyzing gold movements and gold reserves, the Council states
that, although gold sales by the United States remained at a high rate
during the first quarter of

1951,

a decline in sales that started in

TREASURY DEPARTM ENT
Information Service

IMMEDIATE RELEASE,
Thursday, February 14, 1952.

WASHINGTON, D .C .

S-2968

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 for the six months ending September 30,
The Report^ reviews significant developments in United
States international trade and payments during the period, in­
cluding movements in terms of trade compared with the preceding
six months.
Data on price changes of basic raw materials
(largely imported items) are also discussed.
The Council points out that, despite a reduction in
economic aid, increased expenditures under the Mutual Defense
Assistance Program (MDAP) were sufficient to raise total
utilized foreign aid for the period under review to $ 2.6 billion,
or slightly above that of the previous six months.
The intensi­
fied effort to assist in the rearmament of the free world against
aggression, produced a 42 percent expansion in military
assistance — to a level approximating $900 million for the
period under consideration.
Over two-thirds of this amount was
supplied to countries in the North Atlantic area, raising total
utilized MDAP assistance to $ 1 .7 billion from the beginning of
1950 to September 30 , 1951.
Analyzing gold movements and gold reserves, the Council
states that, although gold sales by the United States remained
at a high rate during the first quarter of 1951 , a decline in
sales that started in that period continued into the quarter
ending June 30, 1951.
For the three months ending September 30,
1951, the direction of the gold flow was actually reversed, with
the United States reporting net purchases of almost $300 million.
On September 30, 1951* estimated world gold reserves (excluding
U.S.S.R), totalled $3o.O billion, of which the United States
held $ 22.2 billion, or slightly over 60 percent.
The Report discusses the latter stages of the European
Recovery Program, describing particularly developments relating
to local currency counterpart accounts and to transfer guaranties

326
-

2

-

The Council's views on the financial and monetary policy aspects
of the Mutual Security Program for the fiscal year 1953 are also
presented.
Export-Import Bank loans made during the period aggregated
$120 million.
These credits were for a variety of purposes,
including the expansion of production of strategic and critical
materials abroad, the export of raw cotton from the United
States, and essential economic development in underdeveloped
countries.
The Bank continued to consult with the Council on
major credits, and on those which involved important questions
of U . S. international financial and economic policy,
The Report discusses actions of the International Monetary
Fund on exchange systems, par values, premium gold transactions,
and the repurchase of Fund drawings, and outlines the high­
lights of the Sixth Annual Meetings of the Boards of Governors
of both the Fund and the International Bank which were held in
Washington in the first part of September, 1951 , In its review
of the Bank's activities, the Council notes that that institu­
tion made six loans, aggregating nearly $94 million, to five
countries from April 1 to September 30, 1951.* The Bank also
floated three new security issues, each in a different currency.
One of these, In the United Kingdom, represented the first
flotation of the Bank's bonds in a member country other than
the United States.
As in the past, the Report is accompanied by comprehensive
statistics on various aspects of United States Government
foreign assistance in the postwar peripd, as well as on gold
and short-term dollar resources of foreign countries, and gold
transactions between the United States and foreign countries.

0O0

5

The plumber in clearing the toilet discovered
two packages in rubber containers.

Customs was

notified and officers found in the packages
1,024 carats of cut diamonds valued at $121,351.
On December

6,

1951, the Federal Grand

Jury at Utica, New York, returned true bills
against Mrs. Adele Meppen and Abram Winnik,
and also against two other individuals who as
yet have not been apprehended.

4

Singer was sentenced in Federal Court December 27
to one year and a day, and fined $500.

Action

to forfeit the diamonds to the Government has
been instituted.
Still another important diamond seizure
occurred on November
York.

6,

at Rouses Point, New

The Service had information that diamonds

had been smuggled into Canada from Antwerp,
Belgium.

A suspect, Abram Winnik, was kept under

surveillance by Canadian and United States customs
agents during his two-day stay in Canada.

He

was contacted by Mrs. Adele Meppen of Brooklyn,
New York.

Mrs. Meppen was then kept under

surveillance,
Unit € ^ T ^ | ^ t e s ^

by
agents\ when she proceeded

by train to the United States.
At Rouses Point, New York, Mrs. Meppen was
removed from the train and careful search of her
person and effects was made without results.

At

the conclusion of the search she was escorted to
a hotel by customs agents where she remained the
balance of the night.

Shortly after she checked

out of the hotel the following morning, a toilet
to which she had access was found to be overflowing.

3

Eli Stern, a Brooklyn resident,

arrived in

Montreal, Canada, on January 22 via Royal Dutch
Air Lines.

He was placed under surveillance by

Canadian and United States customs agents at
Montreal,

and was observed departing for Havana,

Cuba, by the same air lines on a non-stop flight.
/'"“Customs agentk stationed

Havana informed the

1 CuDkxx customs that Stern w a ^ a diamond sihuggling
1 suspect.

The passenger was gr^mi special a'^ention I

I by Cubahofficers u]^n arrival axSHavana, b u t N ^ e i r \
! search diclh not disclos^\any undecla^ted m e r c h andi^.

j

On the morning of January 23, Stern made
reservation for a flight to Miami.

The supervising

customs agent at Miami arranged for careful
attention to Stern when he arrived.

Upon removing

the heels from the shoes he was wearing, officers
found diamonds weighing 1,076 carats valued at
$119,346.

The diamonds have been forfeited to the

Government, and Stern sentenced to prison for 18
months.
The next diamond seizure of importance occurred
at Logan International Airport, Boston, Massachusetts,
on August 30.

At that time Samuel Singer was

arrested by customs agents when he attempted to
smuggle 435 carats of cut diamonds valued at $70,113.

- 2

Chester A. Emerick, Deputy Customs Commissioner, in
charge of the Bureau*s Division of Investigation, gave
these details of the five major cases which preceded the
Sunday case:
On January 21, 1951, Leiser Weitman was
arrested at Idlewild Airport, New York, at which
time seizure of 1,862 carats of cut diamonds,
valued at $305,082 was made.

The diamonds were

concealed in the hollowed-out heels of Weitman’s
shoes and on his person.
to the Government.

They have been forfeited

On March 9, Weitman, a 31-year

old Austrian, was sentenced to 22 months in prison
and fined $ 2 ,000.v
Mrs. Eta Hoffman,

a displaced person from

Belgium, arrived at Idlewild Airport on January 22.
Search of Mrs. Hoffman’s person and effects disclosed
2,377 carats of cut diamonds valued at $493,998.
Customs agents found the diamonds in the soles of
the wedgie shoes she was wearing, and in compartments
cleverly constructed in the framework of her luggage.
The diamonds have been forfeited to the Government,
and on May 29, Mrs. Hoffman was sentenced to 18
months imprisonment.

Customs officers have dealt a series of stunning blows
to international diamond smuggling in the last y e a r ;
Commissioner of Customs Frank Dow today reported to Secretaryj
Snyder.

I

In six principal cases, diamonds have been seized

totaling approximately 7,000 carats and valued at approxi­
mately $1,125,000.

Action was taken to forfeit all of the
'I

diamonds to the Government.

11 t

Two arrests were made Sunday, February 10, in New York
in the latest of these cases.

Customs agents said one of

the two men had just accepted from a newly arrived ocean
traveler a small clothes brush, in the handle of which were
hidden diamonds amounting to 145 carats, and valued domestically I
at $19,500.

The agents said the diamonds had been brought

from Antwerp by an airplane passenger.

Charges of smuggling

and conspiracy to smuggle were filed against the pair of
prisoners, Adolph Neumann and Abraham Hornstein.
Commissioner Dow said United States Customs agents,
working both at home and abroad, teamed up with officers of
several other countries to effect the series of blows at
the smuggling traffic.
The Commissioner explained that toward the end of 1950,
the Customs Service began to receive information indicating
that traffickers in diamond smuggling were preparing to
increase their activity.

If they were successful in their

smuggling efforts, the traffickers would realize as an immediate*:
reward the evasion of the 10% customs duties.

With the gems

destined for "black market" sale, there would also be the
evasion of excise taxes and probably of Federal income taxes.

TREASURY DEPARTMENT

Washington

February 16, 1952

MEMORANDUM TO THE PRESS
The attached statements relating to
practice before the Treasury Department by former
enployeea are rn^de available for your information,

PRACTICE BY FORMER EMPLOYEES *

The statutes prohibit a former employee, for twe ydars following
his enployment, from prosecuting a claim against the United States
which was pending while he was employed* A elaim against the United
States is a demand that the Government pay money* Most tax controversies
are not claims against the United States* They are the opposite*
They are claims by the Government that the taxpayer owes money* No
statute prohibits a former enployee from acting as attorney for a tax*
payer against whom the Government makes a demand for additional tax*
Thus the statutes draw a sharp distinction between claims
against the Government and claims by* the Government* In the former
case the Treasury Department has not, and could not, permit a former
enployee to represent a taxpayer within the two-year period* The
Congress has laid down the.rule*
*
The Treasury Department in the exercise of its power to regulate
practice before it has imposed restrictions on its former enplqyees
that go beyond the prohibitions enacted by Congress* The Treasury
regulations prohibit a .former enployee from representing a taxpayer
in any case if he worked on that case for the Government, irrespective
of how long he has been out of Government service, and irrespective
of whether the case is a claim by the United States or a claim against
the United States*
The Treasury regulations require a former enployee, during the
two-year period following his enployment, to file an application for
consent to represent d taxpayer in any matter which was pending while
he was employed« The application must set forth information to show
that his representation of the taxpayer would not violate any statute
or regulation* The statements made in the application are checked
against the official records* The granting of the consent follows
as a matter of course if the application and the investigation show
that no violation would be occasioned* In no sense does the granting
. of a consent constitute a waiver of any statute or regulation* The
Treasury Department is without, power to waive the statutory prohibitions
some of which carry criminal penalties (18 U.S.C* 2810, although seme
do not (5 U.S.C* 9 9 ) .
I

In short, the rule is that a former employee has the’right •
within two years following termination of his Government employment
to represent a taxpayer from whom the Government is endeavoring to
collect taxes, provided that the enployee did not work on the case
for the Government* And this has been the rule for at least twentyfive years* It finds its analogy in the conflict of interest rules
which govern practice before the courts* The fact that a different
rule governs the prosecution of claims against the United States is
attributable to express statutory provisions*

february 15# 1952

-

2

-

involved while employed in the Department, and (b) that
his handling of the matter is not prohibited by lav«
iii«

iv.

Application is referred to office in which matter was pend­
ing during employment for investigation to determine
whether records and files show personal‘consideration*or
knowledge of facts«
If there is no evidence of personal consideration or
knovrledge of facts, and if no law or regulation wouid be
violated, consent is granted*
f

IV,

•

V,

Law is Never Waived
1,

Treasury has no power to waive requirements of laws and never
attempts to do so,

2«

Treasury never waives prohibitions against practice contained
• in its own rules.
.

3«

Treasury rules require consent to handle certain cases, but
consent is never given where hny law prohibits the applicant
from acting,

Conclusion
1,

*

»
No law prohibits a former employee of the Treasury from
handling with the Bureau*of Internal Revenue any of the vast
multitude of matters that are not within the narrow field
of #clairasM against the United States,*

2,. Under Treasury rules a former employee is prohibited forever
from handling a matter which he personally considered, or
of which he gained knowledge of the facts, while in the .
Government, whether or not .the matter is a "claim,"
3,

The Treasury rule is supplemented by a requirement that during
the first two years after leaving the Department a former
employee must obtain consent to handle a matter which was
pending while he was in the Department,

U,

The granting of consent is in no sense a waiver of anything.
The requirement that consent be obtained is merely a method
of policing the prohibitions of the laws and Treasury rules.

.

February 15, 1952

'

PRACTICE BEFORE THE TREASURY DEPARTMENT BI FORMER EHPIDYEES

.
I.

What the Lav Prohibits
1.

U» S. Code, title

sec, 99

Makes it unlawful for ary person, within two years after leav­
ing the Government, to prosecute ary claim against the United
Stctes which was pending while he was in the Government.
2.

U» S« Code, title 18. sec# 28b

Makes it a felony for any person, within two frears after leaving
the Government, to prosecute any claim against the United
States involving a subject matter with which he was connected
while in the Government«
II«

What the Law Does Not Prohibit
1.

HI«

The law* deals with nothing but claims against the United States«

* 2«

Most tax matters which attorneys handled for clients with the
Bureau of Internal Revenue do not involve claims against the
Government, For example, resisting the* assessment of a
deficiency is not a claim within’the meaning of the 3a w«

3«

Hence, the laws dealing with practice by former employees
have no application to most tax matters which attorney handle
for clients with the Bureau of Internal Revenue«

Treasury Restrictions on Practice by Former Employees

1.

Treasury rules impose prohibitions on practice by former em­
ployees which go far beyond the prohibitions imposed by Congress
in laws. These rules have been in effect since 1866, and have
contained substantially the present prohibitions since 192lu

2«

Treasury Rule : Every former, employee is prohibited forsv^r
from acting as attorney or agent in ary matter to which he •
gave personal consideration or as to tne facts of which he
gained knowledge while in the Government. This prohibition
is supplemented by >8 recjuirement that for two years after
leaving the Treasury a former employee must obtain the
Department1a written^onsent to act in any matter which was
pending during his employment«

3«

Granting of consent
1« ’Application for consent is made on Form 901«
11.

Applicant must file declaration (a) that he gave matter
no personal consideration and had no knowledge of facts

I

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C ,

j

RELEASE SUNDAY NEWSPAPERS
February 1
195 o

S -2969

I^

Customs officers have dealt a series of stunning blows to
dia^ ond smuggling in the last year, Commissioner
of Cistoms Frank Dow today reported to Secretary Snyder,
In
six principal cases, diamonds have been seized totaling
approximately 7,000 carats and valued at approximately $1 125 000
Action was taken to forfeit all of the diamonds to the Government

_TY° arr® sis were made Sunday, February 10, in New York in
the latest of these cases.
Customs agents said one of the two
men had just accepted from a newly arrived ocean traveler
a small clothes brush, in the handle of which were hidden
amounting to 145 carats, and valued domestically at
f 9*500. The agents said the diamonds had been brought .from
Antwerp by an airplane passenger.
Charges of smuggling and
conspiracy to smuggle were filed against the pair of prisoners
Adolph Neumann and Abraham Hornstein.
^
*
v j,i_ Commissioner Dow said United States Customs agents, working
botpi at homeland abroad, teamed up with officers of several
trdffic0UntrieS

t0

effect the series of blows at the smuggling

The Commissioner explained that toward the end of 1950 the
Customs Service began to receive information indicating that
Q^ i L ^ ? kersT in ,^iamond j u g g l i n g were preparing to increase their
,-9 -m
they were successful in their smuggling efforts
the traffickers would realize as an immediate reward the evasion
dutles- With the gems destined for "black
market sale, there would also be the evasion of excise taxes
and probably of Federal income taxes,
Chester A * Emerick, Deputy Customs Commi ssloner, in charge
(of the Bureau's Division of Investigation, gave these details
!of the five major cases which preceded the
Sunday case:

333
-

2

-

On January 21, 1951, Leiser Weitman was arrested
at Idlewild Airport, New York, at which time seizure
of 1,862 carats of cut diamonds, valued at $ 305,082
was made.
The diamonds were concealed in the
hollowed-out heels at Weitman's shoes and on his
person.
They have been forfeited to the Government.
On March 9> Weitman, a 31-year old Austrian, was
sentenced to 22 months in prison and fined $ 2 ,000 .
Mrs. Eta Hoffman, a displaced person from
Belgium, arrived at Idlewild Airport on January 22.
Search of Mrs. Hoffman's person and effects disclosed
2,377 carats of cut diamonds valued at $493, 998 .
Customs agents found the diamonds in the soles of
the wedgie shoes she was wearing, and in compartments
cleverly constructed in the framework of her luggage.
The diamonds have been forfeited to the Government,
and on May 29 , Mrs. Hoffman was sentenced to 18
months imprisonment.
Eli Stern, a Brooklyn resident, arrived in
Montreal, Canada, on January 22 via Royal Dutch
Air L i n e s . He was placed under surveillance by
Canadian and United States customs agents at Montreal,
and was observed departing for Havana, Cuba, by the
same air lines on a non-stop flight.
On the morning of January 23, Stern made
reservation for a flight to Miami.
The supervising
customs agent at Miami arranged for careful
attention to Stern when he arrived. Upon removing
the heels from the shoes he was wearing, officers
found diamonds weighing 1,076 carats valued at
$119,346.
The diamonds have been forfeited to the
Government, and Stern sentenced to prison for 18
months.
The next diamond seizure of importance occurred
at Logan International Airport, Boston, Massachusetts,
on August 30. At that time Samuel Singer was arrested
by customs agents when he attempted to smuggle 435
carats of cut diamonds valued at $70,113.
Singer was
sentenced in Federal Court December 27 to one year and
a day, and fined $500. Action to forfeit the diamonds
to the Government has been instituted.

-

3

-

_ „ Still another important diamond seizure occurred
on November 6 , at Rouses Point, New York
The
Service had information that diamonds had been
Canada from Antwerp, Belgium.
A suspect,
Yas kepi »“4«? surveillance by Canadian
and united Spates customs agents during his two-day
of Rrooir?fr?adw' 5® 7&S ,oontacted ^ Mrs. Adele Meppen
s m - T O ? i w i N 5 Yori • Mrs • Meppen was then kept under
surveillance, when she proceeded by train to the
United States.
PoJn t ^ N a w Y o r k * Mrs. Meppen was removed
train anc* careful search of her person and
effects was made without results.
At the conclusion
of the search she was escorted to a hotel by customs
agents where she remained the balance of the night
Shortly after she checked out of the hotel the
following morning, a toilet to which she had access
was found to be overflowing.
The plumber in clearing
the toilet discovered two packages in rubber containers
Customs was notified and officers found in the p a c k ^ e s ’
1,024 carats of cut diamonds valued at $121,351.
•Pr>nm

_December 6 , 1951* the Federal Grand Jury at
Utica New York, returned true bills against
Mrs. Adele^Meppen and Abram Winnik, and also against
two other individuals who as yet have not been
apprehended.

oOo

334

February 5, 1952

TO MR. BARTELT*

Th© following transactions were made in direct and guaranteed
securities of the Government for Treasury investment and ether
accounts during the month of January, 1952*
Purchases....... ...................#3^85,000
Sales

*2*369x500

Het purchases * # » • • * « * * * * * * *

$22,115*500

(Sgd.) E. 0# Barnes

Chief, Division of Investments

Wis©carver 2/5/52

T R E A S U R Y

DEPARTMENT

Information Service

RELEASE MORNING NEWSPAPERS,
Friday, February 15, 1952.

S-297C

During the month of January, 1952,
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $22,115,500, Secretary
Snyder announced today.

oOo

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t M V, SNÏDER,
Secretaiy of tbe îreasury.

I

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to bo aurrsatowd (*12,50 per * 1 ,000) alto bo «editad» aoeruod totorost l m
aaroh

x , 1952 to aerto 15 , » 5 « « « ® benda to bo toosod (*0 .9toli6 por * 1 ,000)

alto bo toargod, and too difiéranos (*11 .$86&

par * 1 ,000) «Ito bo poto to tir

M eubseribers en » r o h 1 , 1951, « oa latar deltooiy «I too ao» bornie.v » thè
eaoa of rogiaterod bende, itosi totaraat dua torto 15 «Ito ba «aputad «

thè

ani y t n ba p a li by checks draan to aecordanea «ito toa asaignr
mante on toa banda aurrendared.
v.
1.

tr RBoisnora bo » s

treaaury Boato al 1958-S» to regietered le** tenderò* to pajwaat

tm W t o oli«srad haround« ahould ba aaoigaed bjr toa ragtotsmd payaos or
aaal^aas tooroof, to aoeordaaes «Ito toa ganan! ragulattena of toa tnasury
g o m n i n g aaeignneHts far trenni« or aaohenea, in one af toe
forno boroaltor oet ferto, «ad toerealt«r ahould ba presentad and surreodered
mito toa sbbseription to a Federai Basane Bank or Branto or to toa Treaaury

2
£
manne? aa the Seeretary of t e Treaaury M

preeeriba.

in case of fÉitÉtó

;rsd@mptloa thè banda te he redeasaed «ili he detersiiied by ««eh saethod es «ay
he prwacribed

by thè

Seeratary af thè treaaury.

From thè date off redaaptioa

designate In any sshb notice, intimst on thè bende eaXXed far redemptlon
»hell cassa*
2«

The leeone derived fron thè bende shall he subject to «11 tanca

mm

or hereafter i&posed under thè Internai leresu» Code, or lese anendatory or
sijpplessHQtary thereto#

Tha bende Shell he subject to eatate, inharitane©,

gift or other ©accise tesse* ghetti»? Federai or State, bat ehall he « w p t
from all taxatioa noe or hereafter hepoaed oa thè principe! or interest
tereof hy any State, or any of thè possessione of thè Baite States, e? W
any loeal taadng authority.
J*

fhe benda «ili he aeeaptable to secare deposito of public

m m ya*

Bearer bende «ith interest codone attached, and bende regietered
ae to prineipal and interest, «ili he iseoed la deaoninatione of $$00, $1,000,

15,000, $10,000, $100,000 and $1,000,000.

Proriaion «ili he mede far thè

infcerchange of bende of different t a M l »

end of coupon and resistete

banda» and for thè tranefer of regiatared bonde, andar ralee and regulatioas
preseribed by thè Secretary of th© Treaaury.
5»

thè banda will he subject to thè generai regulations of the Treasury

Department, noe or bereafter proeerlbed, governing United Statai benda.
m .

1*

soaseRimai »

m m m m

Subsoriptians will he Faesite et thè Federai leserre Banks and

Branehes and at thè Treasury Department, Washington.
gemrally aay « M I

Banking Institution©

subserlptiane for aseaust of eustomers» but only thè

federai Reserve Banks and t e Treasury Department are autharised to est as
officiai agenoies.

f H Ü S STATES o r AMERICA
2-3/ 8 PEBCMT TKIASBRï BOMBS OT

Bated »*** bctprbag lattrcaA frc®. March 1*

X 9$Z

W $9

EEDBEMâîÎlS AT Tffg OPTXQM OF THE BMXÎ1B STAINS AT E lit Al© ACCRUED INTEREST CK
u p A i m M
MF# i?S7

Xttfcerest payable fiarch 1$ aad September 1$

19*2

Department «

« t l

*

*>• W

®

BEPUmST,

S

Â

£

*

Fiscal Service
Bureau of the Public Debt

u
1,

m m tm - or bombs

The secretary of the Treasury* pursuant to the authority of the

Second Liberty Boni Act* as aaeaiad* invites eubscripiions* at par with an
adjuetnent of aoerued interoat m

of M »

IS. » ,

f t « the people of tho

Salted State« for bonde of the United Stetea. deelgnatad 2-3/8 peroent
freaamy issi» of 1957-59» in «whang« fe» 2-1/2 poro«*

1952-5U, dated M i
¿äaroh

31» 1*1» due M l

iS, Ä

Baade of

« 1 W for redemption on

IS, 1952« The amount of the offorine « 4 « thi» eirealer will bo

lleitod to tb« amount of Treeeury Band« of 1952-51» t«n*wod ln exohange and
acceptai*

TIL
***

B SfêWIlin p

of bombs

X, Sh« bond« will b« dated sardi 1» 1952, end will beer interest fron
that date at the rate

of 2-3/8 peroent

per annum, payable an a eamianm a l

>■,,«<« on September 15, 1952, and thereafter on Mareh 15 and Sopteaber 15 in
S8fiSjj

until the principal amount beaoaea payable,

Mardi IS, 19S9» but nay be redeened at the
and «iter
on

Maroh IS, 1961,

any internet

in whole or in pert,

day or day«,

I

option of

they will nature
tho

at par

United states on

and accrued interest,

m I aontha* Boti«« of

r
<
>
w

êMmmmê io * Tsärnttil n»mmi
TrtsMwcT ö»9* rtam i» «ad d | M t» t*>*

ìm mmtésmà m tarine

ìmm

s&toroà Wf«r« Ita olo@o of

t m toKtoaf il» M U U X € U m ù m » Ä

Ä

m $ m m $ t â m ì#xm<

Ili

X

a)

^

I

^1

,

f

m $ M M 0 W3RSKMQ »rSPABBStS#
WcmàW* fém m m ld# 1951«

SScratary of thè Tnessury Byytyy todsy
tht datali» o ì thA offar**
iag# tferoogh t e Foderai H a m Banks# «f i^3/i parsasi freaaary Banda af Wì 7*$%
opmi csi «a axetiangs beala# ab par ®ith a» adtetenfc of scorte Interest as af
t e o h 15# liSÉ* ili s a t e r l t e denaatetiona» io htsMers af M / S p » l t e s t e r
Banda ef 1952~5lt* eaH&d far f t e t a <** t e a k 15# 1952# la t e a m i m i oC
11,023#5&$#353* Ai t e nane I t e t e
m m m aeed tilt datate of t e affi»*
lag g ì X-7/8 parassi tem am i Certificate ef itebbadaasa ai Seria» à -1953# open

HHy» àaeg^p^ip h#aii»j #gg par s#;rftliS' sa

ai »ocrusd interest ss or aerali 1#

1952# lo hola«rs af 1—rf/8 peraant Tyaasury Certifiestee ai xi&lebbadiiass ai seria»

A-1952# «aburiag Aprii l f !% t| In t e am asi af $9#S2b#O?7#OO0. t e l i «Rteerlp»
tlona »M3 noi Imi raaslrtMi«

t e banda usar affarad « t e be d ate testi t§ 1952# aad t e i t e r ite ra si
frasi t e t data ab t e rata ai 2-3/8 parate par astra» papafele m a saaiannual
te la on sapiente 15# 1952# t e thareafter on Hate 15 t e Septster 15 In sacfc
paar t e l i t e prixiclpal b m s parate* The bete «IH ete re fu Hate 15#
1359# te sar ba radeste# at te optimi <sf te umted States, m te aitar Hate
15# 195?* Bsarer btea «itfc iteresb coupon» tesate te btea raglataradi a» te
p rim iini te iterasi adii ba leste in danatetesn» g ì $$QQ$ fi#000# i5#000#

|10#OOO# $100,000 t e fl#OOO#0OO.

thè certificate» mm affate
tarasi fran t e t data «t t e rata
Principal at «sturity on F a t e s i
te r# In t e s a t e t e l a a f $1*000,

«ili ba datad H u t e 1# 1952# t e «ilX baar ln~
a f X-7/8 percettb t e ara»# parate alili t e
15# 1953* t e r «111 ba leste la baarar fona
$5#000# $1O#QO0# $100,000 and |1,ODO#000*

Paraste io t e p r t e t e e a af t e Itela B t e lai ni SPÌA* aa «sen t e # te*
tesai apos* t e aaatetlaa no» affate aliali t e t e » any eampttca# aa #tieh*
under t e t e s e m i U m o a tea# «r Im i anandstery «r teptesteary thsnsta* fh*
fall prteaiaaa testini ta t a x a x m t y ara aat foriti in t e afflala! eireulars
t e s a t e tate«

Sfea&saription» far bath i»mm» « ili ba remired at t e te s te . Baaarva Banks
and Branche» t e at thè treasianr Be^artent# watengtsa# and abaald ba aesaapenied
bgr t e aaaarltlaa ta ba aacchaagad* fresate Btea a f 2^ 52- 5^ In aaupesi fa r» pre*
aantad far aasebanga abate bara lutei 15# 1952# t e t e aabsefuetti cattane attactoj
« t e am«itere&* fba i s t e af t e liste 15# 1^2# coupon « t e ba «rteta3T,ns »
acarte lateaat fra« M te 1# 1^2 ta Siate 15# 1952 m t e naw botali « t e ba
ehargad# t e t e éWtaamm (|ll*5865b per |1#000) «ili be paid ta t e atecriber#
Jm te d i 1# U52# or on latar dalltep af t e mm banda# la t e m m of ragiat«rad
surrsnÉired# tba rtnaii. bdMtraai
ba aoagnxtad on thè sana 1*sif<nt
t e «HI ba paid io t e raglstarad oansrs or t e l r aaal^am# fa t e mas of eer*
tlfle s t e aaombBd far «teaaga# aasraad in teaai t e « te a 15# 1551 io te d i 1»
1952 $13*3196? p m |1#OT) «Lll ba pald io t e a a te r ite follaalng aooaftene
af t e m rilfla te a *
t e teaarlpilnn booka will dose far t e reeelpt of d i subscripUona io
both iasoaa at t e o l m o af business Thursday# Fobruasy 21*

346

TREASURY DEPARTMENT
InformationService
RELEASE MORNING NEWSPAPERS
Monday, February 18, 1952.'

WASHINGTON, D .C

S -2971

4
Secretary of the Treasury Snyder today announced the
details of the offering, through the Federal Reserve Banks
of
2-3/8 percent Treasury Bonds of I957 -59 , open on an exchange
basis, at par with an adjustment of accrued interest as of
March 15 , 1952, in authorized denominations, to holders of
2-1/2 percent Treasury Bonds of 1952-54, called for redemption
on March 15, 1952 , in the amount of $ 1 ,023 ,568 ,350 . At the'
same time the Secretary announced the details of the offering of
1-7/8 percent Treasury Certificates of Indebtedness of Series
A"19o3j open on an exchange basis, at par with an adjustment of
accrued interest as of March 1, 1952, to holders of 1-7/8
percent Treasury Certificates of indebtedness of Series A-1952
maturing April 1, 1952, in the amount of $9,524,077,000.
Cash'
subscriptions will not be received,
The bonds now offered will be dated March 1, 1952, and will
bear interest from that date at the rate of 2 — 3/8 percent per
annum, payable on a semiannual basis on September 15 , 1952 and
thereafter on March 15 and September 15 in each year'until'the
principal becomes payable.
The bonds will mature on March 15
1959 } but may be redeemed, at the option of the United States
on and after March 15 , 1957 . Bearer bonds with interest coupons
attached and bonds registered as to principal and interest will
be issued in denominations of $500, $1 ,000, $5 /000, $10 ,000 ,
$100,000 and $ 1 ,000,000 .
The certificates now offered will be d.ated March 1 1952 and
■will bear interest from that date at the rate of 1 -7 /8 percent
per annum, payable with the principal at maturity on February 15
iP3*
They will 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 1941
as amended, interest upon the securities now offered shall not'
have any exemption, as such, under the Internal Revenue Code
or laws amendatory or supplementary thereto.
The full
provisions relating to taxability are set forth in the official
circulars released today.

34 7
-

2

-

Subscriptions for both issues will be received at the
Federal Reserve Banks and Branches and at the Treasury Department
Washington, and should be accompanied by the securities to be
exchanged.
Treasury Bonds of 1952-5^' in coupon form presented
for exchange should have March 15, 1952, and all subsequent
coupons attached when surrendered.
The amount of the March 15
1952, coupon will be credited and accrued interest from
March 1, 1952 to March 15« 1952 on the new bonds will be charged
and tne difference ($1 1 .5065^ per $1,000) will be paid to the
subscribers on March 1, 1952 , or on later delivery of the new
bonds.
In^the case of registered bonds surrendered, the final
interest will be computed on the same basis and will be paid to
the registered owners or their assignees.
In the case of
certificates accepted for exchange, accrued interest from
June 15, 1951 to March 1, 1952 ($13.31967 per $1,000) will be
paid i/O the subscriber following acceptance of thé certificates.
The subscription books will close for the receipt of all
subscriptions to both issues at the close of business Thursday
February 21.
Subsciiptions addressed to a Federal Reserve Bank or Branch
or to the Treasury Department, and placed in the mail before
midnight February 21 , will be considered as having been entered
before the close of the subscription books.
The texts of the official circulars follow:

348
UNITED STATES OF AMERICA
2-3/8 PERCENT TREASURY BONDS OF 1957-59
Dated and bearing interest from March

1,

1952

Due March 15

1959

REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON
AND AFTER MARCH 15, 1957
Interest payable March 15 and September 15
1952
Department Circular No. 898

TREASURY DEPARTMENT
Office of the Secretary
Washington, February 18, 1952.

Fiscal Service
Bureau of the Public Debt
I.
1.

OFFERING OF BONDS

The Secretary of the Treasury, pursuant to the authority of the

Second Liberty Bond Act, as amended, invites subscriptions, at par with an
adjustment of accrued interest as of March 15, 1952, from the people of the
United States for bonds of the United States, designated 2-3/8 percent
Treasury Bonds of 1957-59* in exchange for 2-1/2 percent Treasury Bonds of
1952-51*, dated March 31, 191*1, due March 15, 1951*, called for redemption on
March 15, 1952«

The amount of the offering under this circular will be

limited to the amount of Treasury Bonds of 1952-51* tendered in exchange and
accepted.
II.
1.

DESCRIPTION OF BONDS

The bonds will be dated March

that date at the rate of

2-3/8

1,

1952, and will bear interest from

percent per annum, payable on a semiannual

basis on September 15, 1952, and thereafter on March 15 and September 15 in
each year until the principal amount becomes payable.

They will mature

March 15, 1959, but may be redeemed at the option of the United States on
and after March 15, 1957, in whole or in part, at par and accrued interest,
on any interest day or days, on h months' notice of redemption given in such

349

- 2 -

manner as the Secretary of the Treasury shall prescribe.

In case of partial

redemption the bonds to be redeemed will be determined by such method as may
be prescribed by the Secretary of the Treasury*

From the date of redemption

designated in any such notice, interest on the bonds called for redemption
shall cease*
2*

The income derived from the bonds shall be subject to all taxes now

or hereafter imposed under" the Internal Revenue Code, or laws amendatory or
supplementary thereto*

The bonds shall be subject to estate, inheritance,

gift or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United States, or by
ary local taxing authority.
3«

The bonds will be acceptable to secure deposits of public moneys.

lu

Bearer bonds with interest coupons attached, and bonds registered

as to principal and interest, will be issued in denominations of $£00, $1,000,
$£,000, $10,000, $100,000 and $1,000,000*

Provision will be made for the

interchange of bonds of different denominations and of coupon and registered
bonds, and for the transfer of registered bonds, under rules and regulations
prescribed by the Secretary of the Treasury*
£«

The bonds will be subject to the general regulations of the Treasury

Department, now or hereafter prescribed, governing United States bonds.
III.
1*

SUBSCRIPTION AND ALLOTMENT

Subscriptions will be received at the Federal Reserve Banks and

Branches and at the Treasury Department, Washington*

Banking institutions

generally may submit subscriptions for account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act as
official agencies.

330

- 3 2.

The Secretary of the Treasury reserves the right to reject any sub­

scription, in whole or in part, to allot less than the amount of bonds
applied for, and to close the books as to any or all subscriptions at any
time without notice; and any action he may take in these respects shall be
final«
in full«

Subject to these reservations,*all subscriptions will be allotted
Allotment notices will be sent out promptly upon allotment«
IV.

1*

PAYMENT

Payment at par for bonds allotted hereunder must be made on or before

March 1, 1952, or on later allotment, and may be made only in Treasury Bonds
of 1952-5^, called for redemption March 15, 1952, which will be accepted at
par, and should accompany the subscription«

Coupons dated March 15, 1952,

must be attached to such bonds in coupon form when surrendered*

In the case

of coupon bonds, the full six months* interest to March 15, 1952, on the bonds
to be surrendered ($12*50 per $1,000) will be credited, accrued interest from
March 1, 1952 to March 15, 1952 on the bonds to be issued ($0*913^6 per $1,000)
will be charged, and the difference ($11«5865U per $1,000) will be paid to the
subscribers on March 1, 1952, or on later delivery of the new bonds«

In the

case of registered bonds, final interest due March 15 will be computed on the
same basis and will be paid by checks drawn in accordance with the assign­
ments on the bonds surrendered.
V.
1«

ASSIGNMENT OF REGISTERED BONDS

Treasury Bonds of 1952-511 in registered form tendered in payment

for bonds offered hereunder should be assigned by the registered payees or
assignees thereof, in accordance with the general regulations of the Treasury
Department governing assignments for transfer or exchange, in one of the
forms hereafter set forth, and thereafter should be presented and surrendered
with the subscription to a Federal Reserve Bank or Branch or to the Treasury

351
Department, Division of Loans and Currency, Washington, D. C.
must be delivered at the expense and risk of the holder.

The bonds

If the new bonds

are desired registered in the same name as the bonds surrendered, the assignmust should be to ’’The Secretary of the Treasury for exchange for 2-3/8 per­
cent Treasury Bonds of 1957*",59,f$ if the new bonds are desired registered in
another name, the assignment should be to ’’The Secretary of the Treasury for
exchange for 2-3/8 percent Treasuiy Bonds of 1957-59 in the name of ______ «.
if new bonds in coupon form are desired, the assignment should be to ’’The
Secretary of the Treasury for exchange for 2-3/8 percent Treasury Bonds of
1957-59 in coupon form to be delivered to
VI.
1.

%

GENERAL PROVISIONS

As fiscal agents of the United States, Federal Reserve Banks are

authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to
the Federal Reserve Banks of the respective Districts, to issue allotment
notices, to receive payment for bonds allotted, to make delivery of bonds on
full-paid subscriptions allotted, and they may issue interim receipts pending
delivery of the definitive bonds.
2.

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

UNITED STATES OF AMERICA
1-7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES A-1953
Dated and bearing interest from March 1,

1952
Department Circular No, 899

1952

Due February 15, 1953

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, February 18, 1952.

Fiscal Service
Bureau of the Public Debt
I#
1#

OFFERING OF CERTIFICATES

The Secretary of the Treasury, pursuant to the authority of the

Second Liberty Bond Act, as amended, invites subscriptions from the people
of the United States for certificates of indebtedness of the United States,
designated 1-7/8 percent Treasury Certificates of Indebtedness of Series
A-1953, in exchange for 1-7/8 percent Treasury Certificates of Indebtedness
of Series A-1952, maturing April 1, 1952.

Exchanges will be made at par

with an adjustment of interest as of March 1, 1952.

The amount of the offer­

ing under this circular will be limited to the amount of Treasury Certificates
of Indebtedness of Series A-1952 tendered in exchange and accepted.
II.
1.

DESCRIPTION OF CERTIFICATES

The certificates will be dated March 1, 1952, and will bear interest

irom that date at the rate of 1-7/8 percent per annum, payable with the
principal at maturity on February 15, 1953.

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,

353

- 2 -

tut 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*

It* 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 oe subject to the general regulations of the

Treasury Department, now or hereafter prescribed, governing United States
certificates*
III.
1*

SUBSCRIPTION AND ALLOTMENT

Subscriptions will be received at the Federal Reserve Banks and

Branches and at the Treasury Department, Washington«

Banking institutions

generally may submit subscriptions for account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act as
official agencies*
2©

The Secretary of the Treasury reserves the right to reject any sub­

scription, in whole or in part, to allot less than the amount of certificates
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*
full*

Subject to these reservations, all subscriptions will be allotted in
Allotment notices will be sent out promptly upon allotment*
IV.

1©

PAYMENT

Payment for certificates allotted hereunder must be made on or

before March 1, 1952, cr on later allotment, and may be made only in Treasury

354
- 3 Certificates of Indebtedness of Series A-1952, maturing April 1,

1952,

which will be accepted at par and should accompany the subscription.

Accrued

interest from June 15, 1951, to March 1, 1952 (513.3196? per $51,000) on the
certificates surrendered will be paid to the subscriber following acceptance
of the certificates«
V.
1.

GENERAL PROVISIONS

As fiscal agents of the United States, Federal Reserve Banks are

authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to
the Federal Reserve Banks of the respective Districts, to issue allotment
notices, to receive payment for 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«

s's\ fi*?

ti*t

/ I * - Tira f t TYimir-RrTirr n n if nr Nnr Ynrtr

Secretary

Snyder left New lolle tfe&fr by

air for Lisbon to attend the Ninth Session of the North Atlantic

Council.

The session will begin on Wednesday, February 20.

The Secretary’s party included Mr. George H. Willis, Director of

the Treasury*s Office of International Finance; Mr. C. Dillon Glendinning,

Deputy Director of the Office of International Finance; Mr. James E. Wood,

Chief, European Division, Office of International Finance

The meeting of the North Atlantic Council will be attended by

the Foreign Ministers, Ministers of Defense, and Finance Ministers of

the countries participating in the North Atlantic Treaty Organization.

Secretary Snyder attended previous meetings of the Council in Ottawa

and Rome.

RELEASE 10 A.M. E.S.T.
Sunday, February 17, 1 9 5 2 .

S -2972

Secretary Snyder left New York Sunday by
air for Lisbon to attend the Ninth Session of
the North Atlantic Council.

The session will

begin on Wednesday, February

20 .

The Secretary’s party included
Mr. George H. Willis, Director of the Treasury's
Office of International Finance; Mr. C , Dillon
Glendinning, Deputy Director of the Office
International Finance; Mr. James E . Wood,

of
Chief,

European Division, Office of International Finance.
The meeting of the North Atlantic Council will
be attended by the Foreign Ministers, Ministers of
Defense, and Finance Ministers of the countries
participating in the North Atlantic Treaty
Organization.

Secretary Snyder attended previous

meetings of the Council in Ottawa and Rome.
Secretary Snyder expects to return to
Washington on February 25.

0O 0

M ïM M S ? m
i
HESSPAPERS,
Tuesday, fsteawy If* IfSI.

The Secretary of the treasury announced last aiming that the tender» for
$1,100!000,000, er thereabout», of 91-day Treasury bills to be dated February 21 and
to mature May 22, 1952, etiich «ere offered on February 24, «ere opened at the Federal
Reserve Sanies on February IS*

The detail» of this Issue are as folio«»*
Total applied for ** $1,914,008,000
Total accepted
» 1,100,088,000
Average price

-

9 9 M &

(include» |1B5,584,000 entered on a
noa-c aapetitive basis and accepted la
full at the average price shown below)
Equivalent rate of discount approat* 1*§0W per «mua

Rang» of acc»pted competitive bids*
El#*

Im
(75 percent of the amount bid for at the low price «a» accepted)

Federal Bsserve
District

Total

Total

Boston
Be« fork
Philadelphia
Cleveland
Riahmond
Ailant«
Chicago
St. Loaia
l&nneapolla
Sanaa« Citer
n»ru*
San l*an*iaoo

«

I

86,508,000
1,106,608,000
25,5^,000

21,511»,000

163,566,000
25.827.000
3,21)0,000
1*0,858,000

1)2 ,081,000

18,738,000
722,928,000
10,39k,000
1)9,315,000
15.710.000
20.001) ,300
111,61)1,000
20, 9d», 000
8 , 210,000

31.1) 08,000

36.331.000

67.905.000
TOTAL

#1,911»,000,000

#1,100,088,000

T R E A S U R Y

*358

D E P A R T M E N T

Information Service

WASHINGTON, D .C

RELEASE MORNING NEWSPAPERS,
Tuesday, February 19, 1952.

S-2973

The Secretary of the Treasury announced last evening that the
tenders for $1,100,000,000, or thereabouts, of 9 1 -day Treasury bills
to be dated February 21 and to mature May 22, 1952, which were
offered on February 14, were opened at the Federal Reserve Banks on
February 18.
The details of this issue are as follows:

mm

Total applied for - $1,914,000,000
Total accepted
1 ,100 ,088,000 (includes $185,584,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.619/ Equivalent rate of discount approx.
1 .507 $ per annum
Range of accepted competitive bids;
- 99.625 Equivalent rate
1.484$
- 99.615 Equivalent rate
1.523$

High
Low

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

(75 percent of the amount bid for at the low price was accepted)
Federal Reserve
District______ #
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for

$

2 6 ,5 0 8 , 0 0 0

1,416,608,000
25,59^,000
58.545.000
16 .760.000
21.514.000
16 3 ,566,000
25.829.000
8,240,000
40.858.000
42.081.000

Total
Accepted
$

1 8 ,738,000
7 2 2 .928.000
1 0 .394.000
49 .315.000
1 5 .710.000
20.004.000

1 1 1 .641.000
20 .904.000
8,210,000

___ 67,905,000

3 1 .408.000
36 .331.000
5 4 .505.000

$1,914,008,000

$1 ,100 ,088,000

0O0

-3 -

any State, or any of the possessions of the United States, or by ary local tax­
ing authority.

For purposes of taxation the mount of discount at which

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

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

as amended by Section 11$ of the Revenue Act of 191*1, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the aimer of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained iron any Federal Reserve Bank or Branch.

\

Copies

-

2

-

max
I
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

February 28, 1952 s

cash or other immediately avail-

able funds or in a like face amount of Treasury bills maturing ■.....
February
28, l?$jj
'
Cash and exchange tenders will receive equal treatment.

Cash adjustments will be

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

The bills shall be subject to estate, inheritance,

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

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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, February 20, 19^2
•
.... .
1'rrr— ■
The Secretary of the Treasury, by this public notice, invites tenders for
§ 1.100^000.000 , or thereabouts, of _ ^ _ - d a y ^ 1 sur^billsf
in exchange for Treasury bills maturing

February 28. 1952— >/to be lssued on

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

The bills of this series vri.ll be dated

vri.ll mature
interest.

May P ^ 1 9 5 2

February 28, 1952---> and

«hen the face amount will be payable without

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

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

and

§1,000,000

(maturity value).

Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, February 25,,1252Tenders 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 usedv

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 aim account.

Tenders will be received without deposit from

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

Tenders frcm others must be accompanied

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

T R E A S U R Y

D E P A R T M E N T

Information Service

RELEASE MORN I N G NEWSPAPERS,
Wednesday, February 20, 1952»

WASHINGTON, D .C .

S-297^

The Secretary of the Treasury, by this public notice, invites
tenders for $1,100,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
February 28, 1952, in the amount of $1,100,033,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided.
The bills of this series -will be dated
February 28, 1952, and ¥ill mature May 29, 1952, when the face
amount will be payable without interest.
They will be issued in
bearer .form only, and in denominations of $ 1 ,000, $ 5 ,000, $ 10 ,000,
$100,000 , $ 500 ,000, and $ 1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve'Banks and Branches
up to the closing hour, two o'clock pun;, Eastern Standard time,
Monday, February 25, 1952.
Tenders, will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple o f .$ 1 ,-000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100 , with not more than
three decimals, e. g., 99*925.
Fractions may not be used.
It is
urged that tenders be made on the printed forms' and forwarded in
the special envelopes which will be' supplied by Federal Reserve
Banks or Branches on application 'therefor,
Others than banking institutions will not be permitted to
submit tenders except .for their own account.
Tenders will be
received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers In investment
securities.
Tenders from others must be accompanied by payment of
2 percent of the face amount of. Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company.'
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 200,000 or less without stated price
from any one bidder will be accepted in full at the average price

-

2

-

(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on February 28, 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills m a turing February 28, 1952.
Cash and exchange
tenders will receive equal treatment.
Cash adjustments will be
made for differences between the par value of m a turing bills
accepted in exchange and the issue price of the ne w bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be Interest.
Under Sections k2 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1*
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at m a turity 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 m ay be obtained
from any Federal Reserve B a n k or Branch.

oOo

RELEASE m m i m NEWSPAPERS,
Tuesday* February 26, 1952.
The Secretary of the Treasury announced last evening that the tenders for
$ 1 , 1 0 0 , 0 0 0 , OCX),

or thereabouts, of 91-day Treasury bills to be dated February 28

and to nature Hay 29, 1952, which were offered on February 20, were opened at the
Federal Reserve Banks on February 25*
The details of this issue are as follows t
Total applied for - $1,781,203,000
total accepted
- 1,100,851,000 (includes $1^9,396,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99*605 Equivalent rate of discount approx* 1.563$ per annua
Range of accepted competitive bids»
High
Low

* 99*630 Equivalent rate of discount approx. l.U6l$ per
- 99*600
*
»
»
a
»
1*582$ *

(68 percent of the mount bid for at tho low prie# was aocoptod)

Foderai Reserve
District
Boston
Raw fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
2et«l

Total
Applied for

$
26 , 928,000
1 ,262 ,130,000
25 ,231,000

Total
Accepted

X57,6)0»,ooo

25,91(8,000
658.590.000
10 , 231,000
52,1(82,000
10 , 220,000
23.205.000
10b,772,000

23.006.000

21 818.000

6,135,000
3b,b7k,000
b2,b75,000
11 0 . 633,000

6,135,000
3b,bb2,000
b2,175,000
110.833.000

11,783,203,000

11,100,851,000

59.122.000
11.720.000
*3»5q 5,o o o

§

.

m am

*

T R E A S U R Y

D E P A R T M E N T

Wa s h i n g t o n ,

Information Service
REIEASE MOR N I N G NEWSPAPERS,
Tuesday, February 26, 1952.

d .c

S-2975

The Secretary of the Treasury announced last evening that the
tenders for $1.100,000,000, or thereabouts, of 91 -day Treasury bills
to be dated February 28 and to mature May 29 , 1952 , which were
offered on February .20, were opened at the Federal Reserve Banks on
February 2 5 .
The details of this issue are as follows:
Total applied for - $1,783,203,000
Total accepted
- 1,100,851,000 (includes .$149,396,000
entered on a, non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.605 Equivalent rate of discount approx.
1*563$ per annum
Range of accepted competitive bids:
- 99*630 Equivalent rate
1.464$
- 99.600 Equivalent rate
1 .582$

Lo¥

(68

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

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

Federal Reserve
District______
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for

$

2 6 , 928 ,0 0 0
1 , 2 6 2 , 130,000
25.231.000
59.122.000
1 1 .720.000
23.505.000
157,644,000
23.006.000
6,135,000
34.474.000
42.475.000
110.833*000

$1,783,203,000

0O 0

Total
_____ Accepted ___
$

25,948,000

6 58.590.000
10,231,000
52.482.000

.

10 220.000
23.205.000
104.772.000
2 1 .8 1 8 . 0 0 0
6 ,1 3 5 , 0 0 0
34.442.000
42.175.000
110 .833*000
$ 1 ,100 ,851,000

gas

-

2

-

of this determination on the pert of ell participating countries*
"The U.S. Delegation» composed of Secretaries Acheson, Snyder,
Lovett and Hr* Harriman, has given sympathetic consideration to the
economic problems which are faced by some countries in carrying' through
Cl!"
'VV“t'*y ihU'vC
sVjy 'IjasasgL,¿the primary responsibility for the
their defense programs,
economic adjustments required for an adequate European defense effort
must remain with the European countries over the longer period*

The

U*S. has been most helpful in the development stages of NATO in making
available economic and military aid to member countries through funds
provided by Congressional appropriation*

It has been emphasised,

however, that the extent of our assistance in the future will, of course,
be determined by the Congress, taking into account internal fiscal and
monetary developments as well as other factors*
"1 have joined with my colleagues of the U.S. Delegation in
welcoming to membership in MATO the two new members, Greece and Turkey,
who became formally associated with the Council at this meeting*
»1 feel the Council has been honored by the opportunity to meet
in the city of Lisbon*

We have been most graciously received both by

the Portuguese Government and by the people of Portugal, who have made
our visit here most comfortable and pleasant in spite of the grave
questions before the Council*
»Each of our countries will face many difficult economic problems
in the period ahead*

We cannot see at this time how many of these

problems may ultimately be resolved.

Nevertheless, I have no doubt that,

with the will and determination which X believe has been Indicated at
the Lisbon meeting, we can individually and collectively work our way
through to the full achievement of our fundamental objectives.1*
** 0 **

1

wEOTgnsrawm*

The -ilum/i able iJulW W* 5ll^flir|,jS<cr»tar^ctf111wis TBneaumy oir'««e<w»*Nwi<wa-»t&l;gs, islaaesd the following statement in Lisbon today upon
adjournment of the ninth session of the North Atlantic, Council,*which
he has been attendingt
"The North Atlantic Council at this session has dealt with a
number of difficult problems associated with the rapid build-up of
adequate defense forces, while at the same time giving due consideration
to the financial and economic aspects of these questions.

The Council

has reviewed and given its approval to stated military goals for the
calendar year of 1952, the achievement of which can mark a further real
step toward confidence in the preservation of peace.

Provisional

military objectives have been adopted for the two following years as
guides to current national planning.
"The economic and financial questions encountered in rapidly
building up the military strength of the North Atlantic area are
numerous and necessarily difficult.
resolved.

They have not yet been fully

Nevertheless, the Council has given a further impetus to

the solution of these problems and to the development of the defense
program which is now not only showing progress but is developing definite
marks of achievement.

The Council has approached its problems in a

spirit of determination to make more rapid progress toward the common
objective of maintaining peace by deterring aggression*
"The Council meeting has demonstrated more d e a r l y that the develop­
ment of adequate defensive strength depends upon the practical expression

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE,
Monday, February 25, 1952«

WASHINGTON, D .C .

3-2976

Secretary Snyder made the following statement in Lisbon
today upon adjournment of the ninth session of the North
Atlantic Council, which he has been attending:
"The North Atlantic Council at this session has dealt
with a number of difficult problems associated with the
rapid build-up of adequate defense forces, while at the
same time giving due consideration to the financial and
economic aspects of these questions.
The Council has
reviewed and given its approval to stated military goals
for the calendar year of 1952 , the achievement of which
can mark a further real step toward confidence in the
preservation of p e a c e . Provisional military objectives
have been adopted for the two following years as guides
to current national planning.
"The economic and financial questions encountered
in rapidly building up the military strength of the
North Atlantic area are numerous and necessarily
difficult.
They have not yet been fully resolved.
Nevertheless, the Council has given a further impetus
to the solution of these problems and to the develop­
ment of the defense program which is now not only
showing progress but is developing definite marks of
achievement.
The Council has approached its problems
in a spirit of determination to make more rapid progress
toward the common objective of maintaining peace by
deterring aggression.
"The Council meeting has demonstrated more clearly
that the development of adequate defensive strength depends
upon the practical expression of this determination on
the part of all participating countries.

368
-

2

-

"The U.S. Delegation, composed of Secretaries
Acheson, Snyder, and Lovett and Mr. Harriman, has given
sympathetic consideration to the economic problems which
are faced by some countries in carrying through their
defense programs.
"In my view the primary responsibility
for the economic adjustments required for an adequate
European defense effort must remain with the European
countries over the longer period.
The U.S. has been
most helpful in the development stages of NATO in making
available economic and military aid to member countries
through funds provided by Congressional appropriation.
It has been emphasized, however, that the extent of our
assistance in the future will, of course, be determined
by the Congress, taking into account internal fiscal
and monetary developments as well as other factors.
"I have joined with my colleagues of the U. S.
Delegation in welcoming to membership in NATO the two
new members, Greece and Turkey, who became formally
associated with the Council at this meeting.
MI feel the Council has been honored by the
opportunity to meet in the city of Lisbon.
We have
been most graciously received both by the Portuguese
Government and by the people of Portugal, who have made
our visit here most comfortable and pleasant in spite
of the grave questions before the Council.
"Each of our countries will face many difficult
economic problems in the period ahead. We cannot see
at this time how many of these problems may ultimately
be resolved.
Nevertheless, I have no doubt that, with
the will and determination which I believe has been
indicated at the Lisbon meeting, we can individually and
collectively work our way through to the full achievement
of our fundamental objectives."

0O 0

As you know, I have just returned from the -9th Session of the
North Atlantic Treaty Council in Lisbon. The Council was faced with
many difficult decisions of a military, economic and financial
character. The Session was helped greatly by the painstaking work
which ha^been done between the Rome and Lisbon Conferences by the
J^tandin^roup of Military Advisers, the Military Committee and the
Temporary? Committee of the Council headed by Mr. Harriman. In spite
of the many problems confronting it,the Council adopted a concrete
program for 1952 which should take us a considerable distance toward
the defense build-up.
...
the economic and financial field many of the problems we dealt
with in Lisbon will necessarily be continuing ones. Organizational
arrangements have been made within NATO to deal with similar problems in
the ensuing years. However, we have made full and careful provision for
review of the participation of the US, in accordance with our normal
administrative and legislative processes.
"I was impressed, during the course of this Ninth Session, by the
serious and responsible approach adopted by all the members. If the
A?3fnC^'!' con^ nues
'fckis spirit, I believe the strength of the North
Atlantic area will be solidified in such a way as to assure the
accomplishment of our goals of peace and progress.
"f should like to mention especially the fine leadership which was
exhibited at the conference by Secretary Acheson, as well as the
constructive work of irçy colleagues Secretary Lovett and Mr. Harriman.H

TREASURY DEPARTMENT
Information Service

WASHINGTON, D

IMMEDIATE RELEASE,
Wednesday, February 27, 1952.

S-2977

Secretary Snyder, upon his arrival today in Washington
from Lisbon, stated:
t"As you know, I have just returned from the Ninth
Session of the North Atlantic Treaty Council in Lisbon.
The Council was faced with many difficult decisions of
a military, economic and financial character.
The
Session was helped greatly by the painstaking work
which had been done between the Rome and Lisbon
Conferences by the Standing Group of Military Advisers,
the Military Committee and the Temporary Committee of
the Council headed by Mr. Harriman.
In spite of the
many problems confronting it, the Council adopted a
concrete program for 1952 which should take us
a considerable distance toward the defense build-up.
"In the economic and financial field many of
the problems we dealt with in Lisbon will necessarily
be continuing ones.
Organizational arrangements have
been made within NATO to deal with similar problems
in the ensuing years. However, we have made full
and careful provision for review of the participation
of the U.S. in accordance with our normal administrative
and legislative processes.
:'I was impressed, during the course of this
Ninth Session, by the serious and responsible approach
adopted by all the me m b e r s . If the Council continues
in this spirit, I believe the strength of the North
Atlantic area will be solidified in such a way as to
assure the accomplishment of our goals of peace and
progress.
"I should like to mention especially the fine
leadership which was exhibited at the conference by
Secretary Acheson, as well as the constructive work
of my colleagues Secretary Lovett and Mr. Harriman."

oOo

RELEASE MORNING NEWSPAPERS,
Friday, February 2?, 19$2

S-2978

Secretary Snyder announced today the issuance of an amended regulation
relating to reports of transactions in United States currency# The regula­
tion requires every bank and other financial institution in the United States
to file monthly reports of large and unusual currency transactions which
exceed those commensurate with the customary conduct of the business,
industry or profession of the person or organization concerned#
The report system was inaugurated in 19k$ after it had been established
that racketeers and others engaged in illegal activities were resorting on a
large scale to the use of large denomination currency as an attempted method
of concealing income.
The amended regulation will make the reporting procedure less burdensome
to banks and other institutions while providing the Bureau of Internal Revenue
with a continuing flow of those reports which experience has shown to be the
moat helpful in detecting major tax evaders.
The change in the regulation was decided upon by the Treasury after
consultation with the Federal Reserve System and a committee representing
the American Bankers Association, The requirement for reports involving
transactions of #1,000 or more, in denominations of #$0 or higher, has been
changed to #2,$00 involving denominations of #100 or higher. Reports of all
transactions of #10,000 or more in any denominations also are required.
The regulation does not apply to currency transactions which, in the
judgment of the reporting institution, are normal ones in the regular and
customary conduct of the business, industry or profession of the persons or
organizations involved.
The reports are treated by the Bureau of Internal Revenue as confi­
dential communications, and there is no disclosure of the source of
information received through them. Large amounts of evaded income tax
have been recovered by the Bureau of Internal Revenue through leads
obtained from the reports.
In making today *s announcement, Secretary Snyder referred to the
assistance given the Bureau of Internal Revenue by baaks and other
financial institutions, through the currency transaction reports, as an
outstanding public service.

0 O0

THE S E C R E T A R Y O F THE T R E A S U R Y

3 72

W A S H INGTO N

February 21, 1952
TO BANKS AND OTHER FINANCIAL INSTITUTIONS:

The Treasury has amended the regulation originally issued on Kay 21,
19U5> requiring every financial institution in the United States to file
monthly reports on'Form TCR-1 of large and unusual currency transactions,
to make them more in keeping with present conditions* These reports were
originally developed for the purpose of discovering large currency trans­
actions resorted to by racketeers and others engaged in illegal activities
as an attempted method of concealing income*
One of the most valuable sources of information to the Treasury
Department in the detection of income-tax evasion are reports received
from banks and other financial institutions on Form TCR-1. Many banks
and other financial institutions are regularly submitting reports of
large and unusual currency transactions* Failure on the part of some
institutions to file reports may be due to oversight or to a belief that
the reporting requirements are no longer in effect*
Heretofore, Treasury regulations required reports of all trans­
actions amounting to $1,000 or more involving currency denominations of
♦50 or higher* After consultation with the Federal Reserve Banks a^d a
committee of the American Bankers Association, the Treasury has amended
its regulation to require reports on Form TCR-1 for each transaction
amounting to $ 2,500 or more, involving denominations of $100 or higher*
This change is expected to render the reporting procedure less burdensome
to banks, while providing the Bureau of Internal Revenue with a continuing
flow of those reports which experience has shown to be the most helpful in
detecting major tax evaders*
I
feel certain that the banks and financial institutions are in
general agreement that, in fairness to all taxpayers, every effort should
be made to reduce to the lowest practicable minimum the loss of revenue
through tax evasion* The TCR-1 reports have been responsible for breaking
many of the largest and most intricate income-tax evasion cases* The use
of currency by racketeers, and others engaged in illegal activities, is
particularly well established as an attempted method of concealing income.
When such income is not detected the burden of taxation is heavier on the
honest taxpayers* Although this amended regulation is designed to assist
primarily the increased enforcement efforts directed against racketeers,
it is recognized that it will apply in certain cases to other persons,
firms or corporations* However, it is not intended to apply to a
currency transaction which, in the judgment of the reporting financial
institution, is a normal one in the regular and customary conduct of
business or private activities*

2

37 3

The TCR-1 reports are treated as confidential communications* A n
officers and agents of the Bureau of Internal Revenue have been admon­
ished not to disclose the source of information received through such
reports#
On several occasions I have expressed the appreciation of the
Treasury for the cooperation which banks and other financial institutions
have extended in making confidential reports of large and unusual cur­
rency transactions# I want to express my appreciation again for this
public service and to urge continued cooperation and renewed vigilance
in this regard# At the same time I wish also to express my appreciation
for the assistance you have rendered in other areas dealing with Treasury
activities, particularly those relating to the handling of withheld incoa©
and social security taxes, in providing banking services and facilities
for the defense and other activities of the Government, and in the sale
and redemption of United States Savings Bonds*

Title 31 - Money and Finances Treasury
Chapter I - Monetary Offices, Department of the Treasury
Part 102

374

Treasury Department
OFFICE OF THE SECRETARY
February 21, 1952
AMENDED INSTRUCTIONS RELATING TO REPORTS
OF CURRENCY TRANSACT IÔFÎS»
Pursuant to Section 5(b) of the Act of October 6 , 1917 (1*0 Stat. 1*15), as amended
and other authority vested in me by lav, the following instructions are prescribed:
Section 102*1« Reports of currency transactions required« Commencing with trans
actions occurring in the month of March, 195¿, every financial institution in the
United States shall file monthly reports on Form TCR-1 concerning each deposit or
withdrawal, or other payment or transfer, effected by, through, or to such financial
institution, which involves transactions in United States currency as follows:
1«

Transactions involving $2,500 or more of United States currency
in denominations of $100 or higher;
2« Transactions involving $10,000 or more of United States currency
in any denominations, and
3« Transactions involving any amount in any denominations,
which in the judgment of the financial institution exceed those commensurate with the
customary conduct of the business, industry or profession of the person or organiza­
tion concerned«
Section 102*2« Filing of reports« Reports on Form TCR-1 shall be filed in
duplicate on or before the l5th day of the month following that in which the reported
transactions occur, with the Federal Reserve Bank of the district in which the report­
ing financial institution is located« All information called for in such form shall
be furnished«*
Section 102*3« Identification required« No financial institution shall effect
any transaction with respect to which a report is required unless the person or
organizations with idiom such transaction is to be effected has been satisfactorily
identified«*
Section 102*2u Definitions« As used herein "payment or transfer" shall include
exchange of currency; and "financial institutions" shall mean banks, trust companies,
savings banks, private bankers, investment bankers, building and loan associations,
securities and commodities brokers, and currency exchanges and other persons or
organizations engaged primarily in cashing checks and exchanging currency«*

Secretary of the Treas
sections
.
- 162«1 to 10s£*k -

251; Sec« 5(b), I4.0 ¿tat« 1*15 and 9&6; Sec« 2,

48 Stat* 1; 5k Stat« 179; 55 Stat« 839; Ex« Order 6073# Mar« 10, 1933, as amended
by Proc. 2070, Dec« 30, 1933 and Ex« Order 6599# Jan* 15# 193k; Ex« Order 8389,
Apr« 10, 19u0, as amended; Ex« Order 9193, July 6 , 191*2«

United States
Treasury Department
(Rev. 2-21H5>2)

FORM TCR-1:

Q7 C
OÍO

_
REPORT OF CURRENCY TRANSACTIONS

Pursuant to Instructions to Financial Institutions in the
United States Prescribed
Fetoruaxy 21* 1 S $ 2
Part A.

FINANCIAL INSTITUTION REPORTING.
1, N a m e .............. ................................................. .

2 . Address . .

*

* (street)

(CityJ

(stateJ

Part B .

PERSON OR ORGANIZATION CONCERNED IN TRANSACTIONS REPORTED.
1, Name ................................................... ...................................................................................... ...............................
2, Address • ................................. . . . . . .
................................. . . . . .
............................ •
3, business, profession, or occupation. .............. ..................
Part C. TRANSACTIONS REPORTS®.
1. Description of transactions•
U. S. Currency involved
Date

Total
Amount

Amount in
denominations
of $100 or
higher

Nature of Transaction
(State whether deposit, withdrawal,
exchange of currency, cashing
or purchase of oheok, etc.)

■•

*

2. Any additional information concerning the transactions reported nhioh the reporting
institution may wish to submit.

CERTIFICATION.
I
certify that I am authorised to make this report on behalf of the financial
institution named in Part A above and that to the best of ay knowledge and belief this
report is true and accurate.
Dated <
195...
**(Signature ôi'¿ûtâôrlsêà*agent}*

Part D.

XapOMàTXOR TO MPOftTXM ZMTZTVTZOM

ftaperts shall ha filed la dupllasts, an ar hafare the 15th dej af tha Vaeth fallacies that ia ahiah
'ha rapartad traaaaetlans eeeur, vith tha Fadaral laaana Bask af tha distriat ia skiah tha rapertlef flaaeslal
laatitutien la laaatad. Capias af this fore sad tha lastrostleas af £bb* 21*
eajr ha ehtalaed free

Internal Revenue and other Treasury Department officials for a
discussion of all aspects of the subject.

The results of special

case studies which have been made in recent months are being
discussed with a view to formulating the most effective methods of
insuring that each taxpayer bears his fair share of the costs of the
defense effort

TREASURY DEPARTMENT
Bureau of Internal Revenue

7

IMMEDIATE RELEASE
Tuesday, February 26, 1952
Jladurt.i
mri, mniw
w ,ifan
nr timih‘n^ii:>WT»n<r of tho type c ^ t r o l l t ^
rla g g c iy T
by
^«ÉiPícly
oy;

«an agen
*^L8nj/ütì ^ ^ÌjIII De
*T /fáC^fC
of-Bat erne! Rwonue- John 33» Dunlap said todays
W«&W <
:>,■£:Jsr%*
.

*-

ny, i.'orrtfnjioqyo n o<u^ * J
f(L JLtfLjú.**X cT H Í *y
’Xl
From official as well as
<M

outside sources reports are reaching the Bureau of numerous instances

of excessive business expenditures, particularly those relating to lavish
travel and entertainment expenses, executive expense allowances, business
gratuities, and disguised remuneration in the form of personal living
items furnished to corporate officials.

Excessive expenditures for

advertising, research and development and repairs and maintenance have
also been reported.

Commissioner Dunlap stressed that if allowed to

flourish, such abuses threaten serious inroads on the revenue and would
undemine taxpayer morale.
Agents of the Bureau of Internal Revenue have been instructed to
examine carefully any items of this character claimed as deductions in
taxpayers' returns.

To be deductible, such items must be both ordinary

and necessary, and must be reasonable in amount in the light of existing
circumstances in each case.

In addition, full substantiation of the

expenditures will be required.

^

Experience gained during World War II

will enable the Bureau to segregate reasonable from unreasonable
deductions more effectively.
In furtherance of an effective program of enforcement in this area,
representatives from selected field districts are meeting with Bureau of

^\u A
* yl

37 8
TREASURY DEPARTMENT
Buréâu of Internal Revenue

IMMEDIATE RELEASE,
Tuesday, February 26, 1952.

S -2979

Commissioner of Internal Revenue John B. Dunlap said today
that special attention will he given to excessive and un­
reasonable ^expenditures claimed as deductions in tax returns.
Prom of ,1 icial as well as outside sources reports are reaching
the Bureau of numerous instances of excessive business
expenditures, particularly those relating to lavish travel and
entertainment expenses, executive expense allowances, business •
gratuities, and disguised remuneration in the form of personal
living items furnished to corporate officials. Excessive
expenditures for advertising, research and development and
repairs and maintenance have also been reported.
Commissioner
Dunlap stressed that if allowed to flourish, such abuses threaten
serious inroads on the revenue and would undermine taxpayer
morale.
'*m*$*tt
Agents of the Bureau of Internal Revenue have been instructed
to examine carefully any items of this character claimed as
deductions in taxpayers’ returns.
To be deductible, such items
must be both ordinary and necessary, and must be reasonable in
amount in the light of existing circumstances in each case.
In
addition, full substantiation of the expenditures will be
required. Experience gained during World War II will enable
the Bureau to segregate reasonable from unreasonable deductions
more effectively.
3n furtherance of an effective program of enforcement in
this^area, representatives from selected field districts are
meeting with Bureau of Internal Revenue and other Treasury
Department officials for a discussion of all aspects of the
subject.
The results of special case studies which have been
?acie.?'n receht months are being discussed with a view to formulatlng he most^effective methods of insuring that each taxpayer
bears his fair share of the costs of the defense effort.

0O0

was stationed at Buffalo, and in 1939 was made Treasury Customs
Representative at Montreal. He entered the military service in
1943, serving in the European theater and after his discharge in
1945^ returned to his Montreal post.

In 1946 he transferred to

Hew York as Customs Agent, and in 1951 was promoted to Assistant
Supervising Customs Agent at Baltimore. His present assignment is
as Customs Agent in Charge ^Special Customs Racket Squad^ in Hew
York.
Robert R. Turner is a native of Oregon. He entered the
Government service at Portland, in 1925, when a boy of seventeen,
as a messenger in the office of the United States Weather Bureau.
After several advancements, he transferred to Customs in 1934,
starting as a messenger but at an increase in salary. He soon was
F\
made a clerk, and continued to advance in the Service, becoming
deputy collector in Portland in 1941*s*wl iftiat same year he trans­
ferred to enforcement work, as assistant customs agent at Portland
He was made an Agent in 1942.

In 1946, he transferred to the

Hew York office of the Customs Agency Service.

At present he is

a member of the recently constituted^ustom^ Special^ackets Squad

-z-

0 8 £

BIOGRAPHICAL SKETCHES
Joseph Amato was born in Boston, Massachusetts, August 5, 1912,
He received his high school education in Medford, Massachusetts,
and attended Harvard College, Cambridge, Massachusetts* He has
served as a narcotics agent for eleven years and is a specialist
in uncercover operations with particular attention to the activities
of the Mafia type of narcotics violators*
H2"

Price Cams Spivey was bom in Augusta, Georgia, April 12, 1914.
He graduated from the Monroe-Charlotte, North Carolina High School
and in 1932 served in the United States Marine Corps.

During World

War II he was in the United States Army from October, 1943 to April,
1946, and much of this service was in the European theatre of
operations*

During his employment by the Treasury Department he

has been a Customs Patrol Inspector in New York City, and an
investigator in the Alcohol Tax Unit.

He has served as a narcotic

agent for nine and one-half years.
'

Thomas G. Duncan was born in Brooklyn.

He entered the Customs

Service in 1927 as a messenger, at age sixteen, in the office of
Supervising Agent in Charge, Montreal, where his family then resided.
He attended business school at night, and in 1929 was promoted to
stenographer, and assigned at Rouses Point, New York.

In 1935, shortly

after winning the commendation of a United States Attorney for his
work in helping prepare successful prosecution of notorious watch
smuggling combine, he was promoted to Customs Agent.

He subsequently

- 7 -

Checking on the manifests of a flight to Bombay, the agents came
across two groups of baggage of excessive weight.

One passenger was

already on the plane and Agent Turner went aboard and requested him to
return to the baggage room and open his bags for inspection.

Leaving the

plane, Turner noticed that the passenger had difficulty in descending the
steps and that his walk to the baggage room was labored.

A search of his

person revealed he was wearing a specially constructed vest containing four
bars of gold in secret pockets and that his shoes weighed fourteen pounds
due to the 158 ounces hidden in the soles and heels*
contained compartments in which gold was found*
were seized.

Each of his bags

In all, 1,158*6? ounces

The passenger claimed that he had been paid to deliver the

gold in Bombay*

The baggage of the second passenger contained 1,008*35

troy ounces of gold.

He claimed he had been hired to deliver the bags

which he thought contained watches to a man in Bombay for a fee of $1,000.
Customs agents in Boston making use of the gold smuggling suspect
list compiled by Agents Duncan and Turner arrested a passenger about to
depart for Madrid and Tangiers who had approximately 700 ounces of gold
in his luggage.

Further investigation of this case in Boston and in

New York led to the arrest of another man involved in the gold smuggling
activities.
In the conduct of these investigations Agents Duncan and Turner
exercised a degree of patience, ingenuity, painstaking research, and
surveillance exceptionally in excess of that normally required of Custons
agents in the performance of their duties.

-

6

-

The "weight lifting" brought results a short time later when they
picked up three pieces of particularly heavy baggage that had been checked
through on a flight to Rio*

Inspection of the bags revealed false bottoms

containing gold having a gross weight of 768*35 troy ounces*

The agents

recalled that the passenger in whose name the baggage was registered had
been assisted to the airport by another man*

Both were picked up and

questioned and it was established that the bags had been packed by a third
person who paid the passenger $300 to deliver the bags in Rio and his
assistant $20 to carry the bags to the airport and advise him of the plane*s
departure*
Continuing their survellience at the New York airports, the agents
found four more heavy bags destined for Rio.

The owner was summoned and

requested to open his bags for inspection.

In hidden compartments the

agents found 1,016*53 troy ounces of gold.

The passenger claimed that he

also had been hired simply to deliver the bags to Rio and denied knowledge
of the contents of the bags and the identity of the consignor and consignee.

After the second seizure, agents Duncan and Turner decided to review
all passenger lists for the previous six months and es-taT&ish a list of
piersons with hnavy typgagft ftAh'
i

^TTng-Tn^TnrrrT»

Thfty also

checkedr-incoming luggage weights a«% ~4a~eaees where~%heg^wae~oee»ieteg»»
able variance,.Idsisd .tha-names. of the passengers afid the nuiiher of trips
madfi^„,J^or those-who made frequent trips, they checked theii^ mode of
living and t^

affiliationa to d«teFmij^ whe.fcher ^

glcda^^t^pr'wew^'wsrrantred." From this a master list of suspects was
established*^

- . . a . g f i T - l n g

swap^e-h H «tf, im*-

iap and circularized by the Bureau of fin«*™««»nil Mii'fun'tar up imiiyi
tL

M U # l/C/

C

jby 7%if

*

job of attesting to verify it*

Verification involved the bringing

together of leads in Mexico, California, all along the Mexican border,
Louisiana, Florida, Cuba, New York, New England, Italy, Turkey and
Greece, and the development of tenable connections in a great many un­
related incidents*
Throughout the entire investigation of the many leads, it was
necessary for Agent Spivey to maintain the confidence of his source of
information, who had a reputation for mental irresponsibility*

After

nearly 2§ years, Spivey was able to obtain evidence which resulted in
27 indictments by a Federal Grand Jury in the Southern District of New
York*

Among those indicted,

of the principal defendants have already

been sentenced to prison and the remaining defendants are awaiting
disposition of their cases*

Among those indicted were six whose names

appeared on the International List of Narcotics traffickers.
BASIS OF AWARDS TO CUSTOMS AGENTS DUNCAN AND TURNER:
Information obtained by Agent Duncan led him to believe that gold
was being smuggled out of the United States to Rio de Janerio in the
baggage of airline passengers leaving La Guardia Airport in New York*
Since there was no regular procedure for inspecting outgoing baggage,
Duncan together with Agent Turner began observing the weighing in of
checked aircraft baggage on all flights to Brazil.

On the heavier pieces

the agents would lift them to determine if the weight distribution was
normal.

They subsequently extended their operations to include all

flights departing for South American and European ports, -it-was *£cT
cover the flights

the agents worked every day from 8j00 a.m* to

midnight at both La Guardia and International Airports*

- kBASIS OF AWARD TO AGENT SPIVEYi
One of the largest operators in the illicit narcotics traffic on
the West Coast conceived a plan to produce heroin from opium in Mexico,
to supply the narcotics traffic in the United States«»

He established

laboratories in Mexico and imported a chemist from Greece to carry out
his plan*
In November, 191*8, while questioning two narcotics suspects, Agent
Spivey obtained the original information with regard to these operations*
As a result, a painstaking combing of the Bureau of Narcotics files was
started which disclosed an investigative task of great magnitude to
develop worthwhile evidence*
Two other men involved in minor narcotics cases were arrested in
Miami, Florida, in February, 19i*9, one of whom indicated he had invested
sums of money in the operation but had been defrauded of a considerable
portion of his investment and profits*
The information obtained revealed that development of evidence in
the case would be extremely difficult*

Thereafter, Agent Spivey devoted

the major portion of his time to the pursuit of every possible clue which
might lead to worthwhile evidence.

After many months of seemingly fruit­

less efforts, he finally gained the confidence of a professional New
York thug who had been defrauded in the operations.

However, the trans­

actions of which he had knowledge spread over a long period of time,
occurred in many parts of the country, and involved a large number of
people*

Furthermore, the story of the thug was disconnected and of

questionable reliability which presented to Agent Spivey the tremendous

- 3 -

he was associating«

After many attempts to purchase cocaine resulted in

only small purchases with information that the source of supply had disoperations,
continue«^ Agent Amato shifted his negotiations to other racketeers. His
persistent investigations and negotiations finally produced evidence which
pointed unmistakably to a doctor who was manager of a chemical plant —
man of apparent impeccable reputation and

high standing in his

community and in German chemical manufacturing circles —
of supply.

a

as the main source

After discovery of a lack of manufacturing records on cocaine

in the plant, the doctor was arrested and confessed the diversion over a
period of three years of substantial amounts of cocaine.

Thirteen other

persons were involved and it was developed that the doctor sold the cocaine
to Italian racketeers with the understanding that none was to be distri­
buted in Germany, but that all was to be taken to Italy for trans-shipment
to the United States.

To divert attention away from the licensed cocaine

operations, the doctor had invented the story that the cocaine was
Msynthetic” and had sold it as such in underworld circles.
Conclusion of this case forceably brought home to the German
authorities the necessity for the most rigid inspection and supervision
of narcotics manufacturing plants.

The successful culmination of these

investigations was due primarily to the extraordinary efforts of Agent
Amato and his brilliant maneuvering in the undercover work.

He refused to

accept reversals which normally would have caused competent investigators
to abandon the case as not sifeeptible of proof.
..... iiiiiiwaniwi'ttr-

The Exceptional Civilian Service Award @ evidenced py a gold medal
having on its obverse side the Great Seal of the Treasury Department, on

the periphery of which appears the words « • • ”For Exceptional Civilian
Service” • The reverse side of the medal shows the Main Treasury Building
and is inscribed with the name of the recipient.

A gold lapel button,

identical except in size to the obverse side of the medal, and a goldare
embossed certificate/also presented.
BASIS OF AWARD TO NARCOTIC AGENT AMATO
Reports of i l l ic it production in Germany of so-called "synthetic”
cocaine destined for the aiHKfrfc narcotics traffic in the United States
began reaching the Bureau of Narcotics in 1950.

The reports were viewed

with some scepticism since production of such cocaine was considered too
difficult chemically to be worthwhile of serious consideration and the
normal source of cocaine for the i l l i c i t traffic was Peru and the Andean
regions.

These reports persisted and to some extent were verified by U. S.

intelligence officers.

Information indicated that the German cocaine was

being taken to Italy for trans-shipment to this Country.
Narcotic Agent Joseph Amato went to Frankfurt, Germany, posing as an
underworld buyer of narcotics.

As a result of his initial contacts he

shifted his operations to Hamburg where he became part of a large under­
world made up of Italian expatriates engaged in many types of black
marketeering.

Posing as a foreigner in a strange country without authority,

and obviously having in his possession a substantial amount of American
funds, he was in constant danger of assault and robbery as well as dis­
covery of his identity by the cunning professional criminals with whom

PROPOSED PRESS RELEASE

v

||||| /

Under Secretary Foley in ceremonies at the Treasury today presented
Exceptional Civilian Service Awards to four law enforcement agents of the
Department for outstanding and distinguished services in conducting in­
vestigations of narcotics and gold smuggling violations.
Gold medals and certificates evidencing the awards were presented to
the following:
Narcotics Agent Joseph Amato who, working undercover with criminal
elements, successfully located in Germany the source of i l l i c i t cocaine
being trans-shipped to the United States from Italy.
Narcotics Agent Price Carns Spivey who by his unrelenting and de­
termined investigations covering a period of 2j years brought about the
apprehension and conviction of members of a ring producing heroin from
opium for the i l l i c i t narcotics traffic in this/iountry.
Customs Agents Thomas G. Duncan and Robert R. Turner whose investi­
gations of gold smuggling out of the United States at the Port of New York,
including the establishment of new Customs techniques for apprehension
of gold smugglers, resulted in the arrest of six persons and the seizure
of gold valued at #138,315«
DESCRIPTION OF THE AWARD;
The Exceptional Civilian Service Award of the Treasury Department is
given for performance of duty so distinguished or singularly outstanding as
to be clearly exceptional among all those performing similar duties.

The

award may also be conferred upon an employee for demonstrating outstanding
courage in the face of personal danger while performing assigned duties.

TREASURY DEPARTMENT
BaBsaMjeiaaiKBaijaBa^^

Information Service

IMMEDIATE RELEASE,
Wednesday, February 27, 1952 .

WASHINGTON, D .C .

S-2980

Under Secretary Foley in ceremonies at the Treasury today
presented Exceptional Civilian Service Awards to four law
enforcement agents of the Department for outstanding and
distinguished services in conducting investigations of narcotics
and gold smuggling violations.
Gold medals and certificates evidencing the awards were
presented to the following:
Narcotics Agent Joseph Amato who, working undercover with
criminal elements, successfully located in Germany the source of
illicit cocaine being trans-shipped to the United States from
Italy.
Narcotics Agent Price C a m s Spivey who by his unrelenting
and determined investigations covering a period of 2-| years
brought about the apprehension and conviction of members of a ring
producing heroin from opium for the illicit narcotics traffic in
this country.
Customs Agents Thomas G. Duncan and Robert R. Turner whose
investigations of gold smuggling out of the United States at the
Port of New York, including the establishment of new Customs
techniques for apprehension of gold smugglers, resulted in the
arrest of six persons and the seizure of gold valued at $ 138 ,315 .
DESCRIPTION OF THE AW A R D :
The Exceptional Civilian Service Award of the Treasury
Department is given for performance of duty so distinguished or
singularly outstanding as to be clearly exceptional among all
those performing similar duties.
The award may also be conferred
upon an employee for demonstrating outstanding courage in the
face .of personal danger while performing assigned duties.

The Exceptional Civilian Service Award is evidenced by
a gold medal having on its obverse side the Great Seal of the
Treasury Department, on the periphery of which appears the
words . . . "For Exceptional Civilian Service", The reverse
side of the medal shows the Main Treasury Building and is
inscribed with the name of the recipient.
A gold lapel button,
identical except in size to the obverse side of the medal, and
a gold-embossed certificate are also presented.
BASIS OF AWARD TO NARCOTIC AGENj 1 AMATO.
Reports of illicit production in Germany of so-called
"synthetic" cocaine destined for the narcotics traffic in the
United States began reaching the Bureau of Narcotics in 1950.
The reports were viewed with some scepticism since production of
such cocaine was considered too difficult chemically to be
worthwhile of serious consideration and the normal source of
cocaine for the illicit traffic was Peru and the Andean regions.
These reports persisted and to some extent were verified by
U.S. intelligence officers.
Information indicated that the German
cocaine was being taken to Italy for trans-shipment to this
country.
Narcotic Agent Joseph Amato went to Frankfurt, Germany posing
as an underworld buyer of narcotics.
As a result of his initial
contacts he shifted his operations to Hamburg where be became
part of a large underworld made up of Italian expatriates engaged
in many types of black marketeering.
Posing as a foreigner in
a strange country without authority, and obviously having in his
possession a substantial amount of American funds, he was in
constant danger of assault and robbery as well as discovery of
his identity by the cunning professional criminals with whom he
was associating.
After many attempts to purchase cocaine
resulted in only small purchases with information that the source
of supply had discontinued operations, Agent Amato shifted his
negotiations to other racketeers.
His persistent investigations
and negotiations finally produced evidence which pointed
unmistakably to a doctor who was manager of a chemical plant -a man of apparent impeccable reputation and high standing in his
community and in German chemical manufacturing circles -- as the
main source of supply. After discovery of a lack of manufacturing
records on cocaine in the plant, the doctor was arrested and
confessed the diversion over a period of three years of
substantial amounts of cocaine.
Thirteen other persons were
involved and it was developed that the doctor sold the cocaine

- 3 -

330

to Italian racketeers with the understanding that none was to be
distributed in Germany, but that all was to be taken to Italy for
trans-shipment to the United States.
To divert attention away
from the licensed cocaine operations, the doctor had invented
the story that the cocaine was "synthetic" and had sold it as such
in underworld circles.
Conclusion of this case forceably brought home to the German
authorities the necessity for the most rigid inspection and
supervision of narcotics manufacturing plants.
The successful
culmination of these investigations was due primarily to the
extraordinary efforts of Agent Amato and his brilliant maneuvering
in the undercover work. He refused to accept reversals which
normally would have caused competent investigators to abandon
the case as not susceptible of proof.
BASIS OF AWARD TO AGENT SPIVE Y :
One of the largest operators in the illicit narcotics
traffic on the Vest Coast conceived a plan to produce heroin from
opium in Mexico, to supply the narcotics traffic in the
United States.
He established laboratories in Mexico and
imported a chemist from Greece to carry out his plan.
In November, 19^8, while questioning two narcotics suspects,
Agent Spivey obtained the original information with regard to
these operations.
As a result, a painstaking combing of the
Bureau^of Narcotics files was started which disclosed an
investigative task of great magnitude to develop worthwhile
evidence.
^Two other^men involved in minor narcotics cases were arrested
in Miami, Florida, in February, 19^-93 one of whom indicated he
had invested sums of money in the operation but had been defrauded
of a considerable portion of his investment and profits.
The information obtained revealed that development of
evidence•in the case would be extremely difficult.
Thereafter,
Agent Spivey devoted the major portion of his time to the pursuit
of every possible clue which might lead to worthwhile evidence.
After many months of seemingly fruitless efforts, he finally
gained the confidence of a professional New York thug who had
been defrauded in the operations.
However, the transactions of
which he had knowledge spread over a long period of time,
occurred in many parts of the country, and involved a large
number of people.
Furthermore, the story of the thug was dis­
connected and of questionable reliability which presented to
Agent Spivey the tremendous job of attempting to verify it.

39 1
- 4 Verification involved the bringing together of leads in Mexico,
California, all along the Mexican border, Louisiana, Florida,
Cuba, New York, New England, Italy, Turkey and Greece, and the
development of tenable connections in a great many unrelated
incidents .
Throughout the entire investigation of the many leads, it
was necessary for Agent Spivey to maintain the confidence of
his source of information, who had a reputation for mental
irresponsibility. After nearly 2\ years, Spivey was able to
obtain evidence which resulted in 27 indictments by a Federal
Grand Jury in the Southern District of New York.
Among those
indicted, six of the principal defendants have already been
sentenced to prison and the remaining defendants are awaiting
disposition of their cases. Among those indicted were six whose
names appeared on the International List of narcotics
traffickers.
BASIS OF AWARDS TO CUSTOMS AGENTS DUNCAN AND TURNER:
Information obtained by Agent Duncan led him to believe that
gold was being smuggled out of the United States to Rio de Janerio
in the baggage of airline passengers leaving La Guardia Airport
in New York.
Since there was no regular procedure for inspecting
outgoing baggage, Duncan together with Agent Turner began
observing the weighing in of checked aircraft baggage on all
flights to Brazil.
On the heavier pieces the agents would lift
them to determine if the weight distribution was normal.
They
subsequently extended their operations to include all flights
departing for South American and European p o r t s . To cover the
flights, the agents worked every day from 8:00 a.m. to midnight
at both La Guardia and International Airports.
The "weight lifting" brought results a short time later
when they picked up three pieces of particularly heavy baggage
that had been checked through on a flight to Rio.
Inspection
of the bags revealed false bottoms containing gold having
a gross weight of 768.35 troy ounces.
The agents recalled that
the passenger in whose name the baggage was registered had
been assisted to the airport by another man.
Both were picked
up and questioned and it was established that the bags had been
packed by a third person who paid the passenger $300 to deliver
the bags in Rio and his assistant $20 to carry the bags to the
airport and advise him of the plane's departure.

- 5 -

332

Continuing their survellience at the New York airports, the
agents found four more heavy hags destined for Rio.
The owner
was summoned and requested to open his hags for inspection*
In
hidden compartments the agents found 1 ,016.53 troy ounces of
gold. ^The passenger claimed that he also had been hired simply
to deliver the hags to Rio and denied knowledge of the contents
of the hags and the identity of the consignor and consignee.
After the second seizure, agents Duncan and Turner decided
to review all passenger lists for the previous six months and
compile a list of persons suspected of smuggling gold. Prom
this a. master list of suspects was established, and circularized
by the Bureau of Customs.
The new techniques developed by the
agents were put into operation.
Checking on the manifests of a flight to Bombay, the agents
came across two groups of baggage of excessive weight.
One
passenger was already on the plane and Agent Turner went aboard
and requested him to return to the baggage room and open his
bags for inspection.
Leaving the plane, Turner noticed that
the passenger had difficulty in descending the steps and that
his walk to the baggage room was labored.
A search of his person
revealed he was wearing a specially constructed vest containing
four bars of gold in secret pocke'ts and that his shoes weighed
fourteen pounds due to the 158 ounces hidden in the soles and
heels. Each of his bags contained compartments in which gold was
found*
In all, 1 ,158.67 ounces were seized.
The passenger
claimed that he had been paid to deliver the gold in Bombay.
The
baggage of the second passenger contained 1 ,008.35 troy ounces of
gold. He claimed he had been hired to deliver the bags which he
thought contained watches to a man in Bombay for a fee of
$1 ,0 0 0 .
Customs agents in Boston making use of the gold smuggling
suspect list compiled by Agents Duncan and Turner arrested a
passenger about to depart for Madrid and Tangiers who had
approximately 700 ounces of gold in his luggage.- Further
investigation of this case in Boston and in New York led to the
arrest of another man involved in the gold smuggling activities.
In the conduct of these investigations Agents Duncan and
Turner exercised a degree of patience, ingenuity, painstaking
research, and surveillance exceptionally in excess of that
normally required of Customs agents in the performance of their
duties.

-

6

-

333

BIOGRAPHICAL SKETCHES:
Joseph Amato was horn In Boston, Massachusetts, August 5
1 9 1 2 . He received his high school education in Medford
Massachusetts, and attended Harvard College, Cambridge,
Massachusetts. He has served as a narcotics agent for eleven
years and is a specialist in undercover operations with
particular attention to the activities of the Mafia, type of
narcotics violators.
Price C a m s Spivey was born in Augusta, Georgia, April 12
1914, He graduated from the Monroe-Charlotte, North Carolina
High School^and in 1932 served in the United States Marine
Corps. During World War II he was in the United States Army
from October, 1943 to April, 1946, and much of this service was
in the European theatre of operations. During his employment
by the Treasury Department he has been a Customs Patrol
Inspector in New York City, and an investigator in the Alcohol
Tax Unit. He has served as a narcotic agent for nino and
one-haIf y e a r s .

Thomas G, Duncan was born m Brooklyn. He entered the
Customs Service in 1927 as a messenger, at ago sixteen, in the
office of Supervising Agent in Charge, Montreal, where his
family then resided. He attended business school at night, and
in 1929 was promoted to stenographer, and assigned at Rouses Point
New York. In 1935, shortly after winning the commendation of
a united States Attorney for his work in helping prepare
successful prosecution of notorious watch smuggling combine he
"k0 c'
us^033:is Agent. He subsequently was stationed
at Buffalo,^and in 1939 was made Treasury Customs
Montreal.
He entered the military service in
serving in the European theater and after his discharge in
1945, returned to his Montreal post. In 1946 he transferred to
Now^York as Customs Agent, and in 1951 was promoted to
Assistant Supervising Customs Agent at Baltimore. His present
assignment is as Customs Agent in Charge Special' Customs Racket
squad- m New York.
Robert R. Turner is a native of Oregon. He entered the
Government service at Portland, in 1925 , when a boy of seventeen,
■ messenger in the office of the United States Weather Bureau,
iter several advancements, he transferred to Customs in 1934
starting again as a messenger but at an increase in salary. He
soon was made a clerk, and continued to advance in the Service
becoming deputy collector in Portland in 1941.
That same year'
b^ansferred to enforcement work, as Assistant Customs Agent
at Portland.
He was made an Agent in 1942.
In 1946 he
transferred to^the New York office of the Customs Agency Service,
at present he is a member of the recently constituted Special
bustoms Rackets Squad.
v

0O0

til**” ■

% 3 }

y

u

Under Secretary of the Treasury Foley announced
today that the Treasury had accepted an invitation,
extended by Chairman McClellan of the Senate Expenditures
Committee, to appear before that Committee and reply
to criticisms of. Reorganization Plan No. 1 of 1952
/Ot-reX'vow*rwhxchnwere^expressed yesterday by Senator George.
Senator McClellan said.that in view of Senator
Ge o r g e ’s testimony before the Commitee yesterday,
the Committee would be glad to hear further from the
Treasury before closing its hearings on the
Reorganization Plan.
A date for presentation of the Treasury’s reply
to Senator George has not yet been fixed bpt is
expected to be determined in the near future.

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE,
Wednesday^ February

395

WASHINGTON, D .C .

2 7 , 1952 ,

S-2981

Under Secretary of the Treasury Foley
announced today that the Treasury had accepted
an invitation, extended by Chairman McClellan
of the Senate Expenditures Committee, to appear
before that Committee and reply to criticisms
of Reorganization Plan No. 1 of 1952 (internal
Revenue Service) which were expressed yesterday
by Senator George.
Senator McClellan said that in view of
Senator George's testimony before the Committee
yesterday, the Committee would be glad to hear
further from the Treasury before closing its
hearings on the Reorganization Plan.
A date for presentation of the Treasury’s
reply to Senator George has not yet been .fixed
but is expected to be determined in the nes,r
future.

0O0

- 3 -

any State, or any of the possessions of the United States, or by any local tax­
ing authority* For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered to
be interest.

Under Sections !|2 and 117 (a-) (1) of the Internal Revenue Code,

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

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

BBBMC

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 vri.ll be opened at the Federal
Reserve Banks and Branches, follovring which public announcement vri.ll be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof
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
Fodoral Reserve Bank on

March 6, 1952

, in cash or other immediately avail-]

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

j

Cash adjustments vail td

made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new b ills.
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

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

TREASURY DEPARTMENT

Washington
FOR RELEASE, MORNING NEWSPAPERS,

Thursday, February 28, 1952
The Secretary of the Treasury, by this public notice, invites tenders for
ft 1.100. 000, 000 , or thereabouts, of 91
-day Treasury b ills, for cash and
— ---- ^¡Sy-------in the amount of $1,103»622,000 ,
in exchange for Treasury bills maturing March 6, 1952_____ >/to 6e issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated March 6,^1952

will mature

June 5, 1952

---------» and

, when the face amount will be payable without

.....

interest.

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

$1,000, $5,0C)0, $10,000, $100,000, $500,000, and $1,000,000

(maturity

value).

Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two

o’clock p.m., Eastern Standard time, Monday, March 3» 1952
■H i

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925»

Fractions may not be used.

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

TREASURY DEPARTMENT
Information Service

RELEASE MORNING NEWSPAPERS,
Thursday, February 28, 195 2 .

Wa s h i n g t o n ,

S -2982

The Secretary of the Treasury, by this public notice, invites
tenders for $1, _l00, 000, 000, or thereabouts, of 91-hay Treasury
bills, for cash and in exchange for Treasury bills maturing
March 6 , 1952, in the amount of $1,103,622,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided.
The bills of this series will be dated
March 6 , 1952, and will mature June 5, 1952, when the face amount
^rlll he payable without interest.
They will be issued in bearer
form only, and in denominations of $ 1 ,000 , $ 5 ,000 , $ 10,000 $100 0(
$ 500 ,000, and $ 1 ,000,000 (maturity value).
Tenders wixl be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time
Monday, March 3, 1952.
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 forwarder
, © special envelopes which will be supplied by Federal Reserve
Banxs or Brandies 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 investmeir
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 payme^
by an incorporated bank or trust company.
... y a m o a i a t o l y 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
■-onount and price range of accepted bids.
Those submitting tenders
wil-L be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right'to"accept
, 1 ■1®30c
tenders, in whole or in part, and his action
m any suen respect shall be final.
Subject to these reservations
non-competitive tenders for $ 200,000 or less without stated price
irom any one bidder will be accepted in full at the average price

a
(In throe decimals)of accepted competitive bids.
Settlement, for
accepted tenders in accordance with the bids must be made or
viompleted at the Federal Reserve Bank on March 6 , 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing March 6 , 1952.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new b i l l s .
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority
For purposes of taxation the amount of discount at which Treasurybills 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 different
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. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

IMMEDIATE RELEASE,
T h u rsd ay, F e b ru a ry 2 8 , 19 52.

?

3

The S e c re ta ry o f th e T re a su ry to d ay announced th e s u b s c rip tio n and
a llo tm e n t fig u re s w ith re sp e c t to th e c u rre n t o ffe rin g o f 2 ~ 3 ^ p e rce n t
T re a su ry Bonds o f 1957-59# open to th e h o ld e rs o f T re a su ry Bonds o f
1952-5^# c a lle d f o r redem ption M arch 15# 1952# and to th e o ffe rin g o f
1 -7 /® p e rce n t T re a su ry C e r t ific a t e s o f In d eb ted n ess o f S e rie s A -1953#
open to th e h o ld e rs o f T re a su ry C e r t ific a t e s o f In d eb ted n ess o f S e rie s
A -1952, fe a tu rin g A p r il 1# 1952. Bach o f th e new Is s u e s w ill be d ated
M arch 1# 1952.
S u b s c rip tio n s and a llo tm e n ts w ere d iv id e d among th e s e v e ra l fe d e ra l
R eserve D is t r ic t s and th e T re a su ry a s fo llo w s t
fe d e ra l R eserve
D is t r ic t

T o ta l Bonds
Exchanged

T o ta l C e r t ific a t e s
Exchanged

B oston
Hew fo rk
P h ila d e lp h ia
C le v e la n d
Richm ond
A tla n ta
C h icag o
S t. L o u is
M in n e a p o lis
Kansas C it y
D a lla s
San F ra n c is c o
T re a su ry

$ 4 3 ,8 78 ,5 0 0
6 4 0 ,34 8 ,50 0
2 3,8 ^ 0 ,5 0 0
1 7,5 8 9 ,0 0 0
13,6 1 3 ,5 0 0
6,0 8 0 ,0 0 0
7 7 ,9 7 6 ,5 0 0
lt# 9iO # 5®0
7,2 6 8 ,0 0 0
16 , 1 2 5 ,5 0 0
11,1(9 6 ,50 0
4 9 ,19 9 ,0 0 0
- 1 ,6 7 5 ,0 0 0

$

TOTAL

$ 9 9 1,9 8 7,0 0 0

$ 8 ,8 6 6 ,2 1 7,0 0 0

m

1 79 ,9 5 5 ,0 0 0
5 ,9 0 6 ,1 8 7,0 0 0
9 7,74 6 ,0 0 0
3 6 1 , 8 5 2 ,0 0 0
138 ,39 9 ,0 0 0
219,0 8 0 ,0 0 0
8 11,6 4 6 ,0 0 0
228,3 1 6 ,0 0 0
130,5 8 5 ,0 0 0
2 5 2 ,38 4 ,0 0 0
150 ,9 8 9 ,0 0 0
3 4 4 ,3 9 7,0 0 0
51,8 2 8 ,0 0 0

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE
Thursday, Feb ruary 28, 1952

S -2983

The Secretary of the Treasury today announced the subscription
and allotment figures with respect to the current offering of 2- 3/8
percent Treasury Bonds of 1957-59* open to the holders of Treasury
Bonds of 1952-54, called for redemption March 15, 1952, and to the
offering of 1-7/8 percent Treasury Certificates of Indebtedness of
Series.A-1953, open to the holders of Treasury Certificates of
Indebtedness of Series A - 1952 , maturing April 1, 1952 . Each of the
new issues will be dated March 1, 1952.
Subscriptions and allotmehts were divided among the several
Federal Resérve Districts and the/Treasury as follows:
Federal Reserve
District

Total Bonds
Exchanged

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

$

TOTAL

43 ,878,500
640,348,500
23.840.500
17,582,000

.

13 613.500

6 ,080,000

,.

77.976.500

12 910.500
7 268,000
16,125,500
11 ,496,500
49,192,000
1,675,000

$921,987,000

0O0

Total Certificates
Exchanged
__
$

172 ,955,000
5 ,906,187,000
97.746.000
361.852.000
138.322.000
219.080.000
811.646.000
228.316.000
130.585.000
252.384.000
150.989.000
344.327.000
51. 828.000

$ 8 ,866,217,000

CQK

B 1E6SE HCRNIHO NEWSPAPERS,

1

Ttt.»<Ugr, Maroh h , 1 9 5 ?.

o

The Secretary of the Treasury announced Zest evening that the tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury bills to be dated March 6 and to
mature June 5* 1952, which were offered on February 28, were opened at the Federal
Eeserre Banks on Harsh 3*
The details of this Issus are as follows $
T o ta l a p p lie d fo r - $ 1 ,7 1 3 ,6 9 1 ,0 0 0
T o ta l accep ted
- 1 ,1 0 0 ,6 9 1 ,0 0 0 (in c lu d e s * 136 ,0 3 k ,000 e n tered on e
n o n -co m p e titive b a s is and accep ted In
f u l l a t th e averag e p ric e shown below )
A verage p ris e
- 9 9 .5 8 1 / E q u iv a le n t ra te o f d isc o u n t a p p ro x. 1.6 56 $ p e r annua
Bangs c f accep te d co m p e titiv e b id s :
High
law

- 99*616 Equivalent rate of discount approx. 1 .5 1 9 5 p e r annus
m 9 9 .570
•
■
•
*
«
1 .7 0 1 5 »
"

(21 p e rce n t o f th e amount b id f o r a t the lo w p ric e waa a cce p te d )
F e d e ra l B e scrv c
D is t r ic t

T o ta l
A p p lie d fo r

T o ta l
A ccepted

B oston
Mew fo rk
p h iin d e lp b la
C le v e la n d
Richmond
A tla n ta
C hicago
S t . L o u is
M in n e a p o lis
Kansas C ity
D a lla s
San F ra n c is c o

1
10,92§,000
1,291,781,000

t

T o ta l

10,925,000
698,881,000

23,259,000

13,239,000

38,256,000

36,256,000
10,205,000

10,205,000
19,269,000
158,122,000
26,852,000
6 ,1)93,000
27,316,000

1)5,700,000
57r533,ooo
11,713,691,000

19,269,000
11)8,122,000
26,852,000
6,1)93,000
27,216,000
1)5,700,000

57,533,000
11,100,691,000

RELEASE MORNING NEWSPAPERS,
Tuesday, March 4, 1952.___

s-2984

The Secretary of the Treasury announced last evening that the
tenders for $1,100,000,000, or thereabouts, of 91-day Treasury hills
to he dated March 6 and to mature June 5, 1952, which were offered
on February 28, were opened at the Federal Reserve Banks on March 3»
The details of this issue are as follows:
Total applied for - $1,713,691,000
Total accepted
- 1,100,691,000 (includes $136,034,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99 .581 / Equivalent rate of discount approx.
1 .656$ per annum
Range of accepted competitive bids:
- 99.6l6 Equivalent rate
1.519$
~ 99*570 Equivalent rate
1.701$

^j0'w’

(21

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

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

Federal Reserve
Si^jrr c t _________
Boston
New York

Total
Applied for____ _________
$

Philadelphia
Cleveland

Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

10,925,000
1,291,781,000
23,239,00036.256.000
10 .205.000
19 ,269,000
158,122,000
26 .852.000
6,493,000
27.316.000
45.700.000
57.533.000

$1,713,691,000

0O0

$

Total
Accepted

10 ,925,000
698,881,000
13.239.000
36.256.000

.

10 205.000
19.269.000
148,122,000
26.852.000
6,493,000
27 .216.000
45,700,000
57,533 9000

$1,100,691,000

- 3-

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at ^hich

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

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

as amended by Section 11$ of the Revenue Act of 191*1, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, vfhether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, as amended, and this notice, prescribe
the terns of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

-

2

-

unless the tenders are accompanied by an express guaranty of payment by an in­
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shalip
Subject to these reservations, non-competitive tenders for ¿200,000

11

be final.

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

.. .....

or less without stated price from any one bidder will be accepted in full at the
Settlement for -

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

March 1 3 . 1 9 #

in cash or other Immediately avail-.

able funds or in a like face amount of Treasury bills maturing M arch 3 3 ^ 1 ^ 2 *

Cash and exchange tenders will receive equal treatment.

T&X >
Cash adjustments will be

made for differences between the par value of maturing bills accepted in exchangej |
and the issue price of the nevf bills.
The income derived from Treasury hills, 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 hu,ve 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, vehether 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« March 6, 1952_______ •
afcbT
The Secretary of the Treasury, by this public notice, invites tenders for
& i onn.mn.nnn . or thereabouts, of

91 -day Treasury bills, for cash and
.in the amount of $ 1,200,lift»OOP ,
in exchange for Treasury bills maturing
March 13« 1952____ >/^° ke Issued" on
a discount basis under competitive and non-competitive bidding as hereinafter
provided*

vd.ll mature
interest.

The bills of this series will be dated
June 12, 1952

j

March^13, 1952 .... >

when the face amount will be payable without

They vd.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
closing hour, two o ’clock p*m•, Eastern Standard time, Monday, March 1 0 , 1952 .»
aposx
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of
decimals, e. g., 99.925.

Fractions may not be used.

100, vdth

not more than three

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

T R E A S U R Y

407

D E P A R T M E N T

Information Service

RELEASE MORNING NEWSPAPERS
Thursday, March 6, 195g. ■

WASHINGTON, D

S -2985

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
March 13* 1952, in the amount of $1,200,454,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided. The bills of this series will be dated
March T3, 1952, and will mature June 12, 1952 , when the face amount
will be payable without interest. They will be issued in bearer
form only, and in denominations of $1 ,000 , $5 ,000 . $10 000
$100 ,000 , $ 500 ,000 , and $ 1 ,000,000 (maturity value).
Tenders.will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, March 10, 1952. 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.
• i-?
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. .
^
^
,.
Immediate^ 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
w i n be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right‘to accept or
©ject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Subject to these reservations
non-competitive tenders for $200,000 or less without stated pri^e
trom any one bidder will be accepted in full at the average price

- 2 :.vv,;;!
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on March 13, 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing March 13, 1952.. Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing'bills ‘accepted i n ’
exchange and the issue price of the new bills.

The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of. ’the bills, shall not •
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or •
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 ( a ) ( 1 ) of the Internal
Revenue Code, as amended by Section 115 of the .Revenue Act of 1941,
the amount of discount at whioh bills issued hereunder are sold,
shall not be, considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets.. Accordingly, the owner of
Treasury bills, (other than life insurance companies) issued here­
under need include in his income tax return only the difference
between the price paid for such bills, whether on original issue
or on subsequent purchase, and the amount actually received
either upon, sale or redemption at maturity during the- taxable
year for which the return Is made, as. ordinary gain or l o s s .
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

I regret deeply the action of a majority of the Senate

A
Expenditures Committee in voting to recommend disapproval
by the full Senate of Reorganization Plan No. 1 of 1952.

This plan covers the proposal of President Truman and the

Treasury Department to reorganize the Bureau of Internal

Revenue and make it the modern, businesslike organization
it should be.

I earnestly hope that the full Senate will give the

plan the sAnc

■(

w

consideration that it deserves,

and will authorize the Treasury to put the plan into effect.

I am fully in accord with the statement this week of

President Truman that the American taxpayers are entitled

to the progressive step which approval of the plan by the
Senate would mean.

T R E A S U R Y

D E P A R T M E N T

IMMEDIATE RELEASE,
Wednesday, March 55 1952.

S-2986

Secretary Snyder today issued the following
statement :
I sincerely regret the action of a majority
of the Senate Expenditures Committee in voting
to recommend disapproval by the full Senate of
Reorganization Plan No. 1 of 1952. This plan
covers the proposal of President Truman and
the Treasury Department to reorganize the
Bureau of Internal Revenue and make it the
modern, businesslike organization it should be.
I earnestly hope that the full Senate
will give the plan the full consideration that
it deserves, and will authorize the Treasury
to put the plan into effect.
I am fully in. accord with the statement
this week of President Truman that the American
taxpayers are entitled to the progressive step
which approval of the plan by the Senate would
mean.

0O0

Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)
; Dec. 31,
;
1951
LIABILITIES
Deposits of individuals, partnerships,
and corporations:
Demand.......................... . $5H,855,8Hl
Time............................ . 19,825,659
Deposits of U. S. Government.......... .
2,233.623
10,003
Postal savings deposits..............
Deposits of States and political
subdivis ions....................... .
5.92H.592
Deposits of banks..................... .
9,789,97**
Other deposits (certified and cashiers'
1 ,791,869
checks, etc.)...................... .
Total deposits.................. • 9H,431,561
Bills payable, rediscounts, and other
liabilities for borrowed money......
15,484
Other liabilities.................... .
1.621.397
Total liabilities, excluding
capital accounts.............. . 96.068,1*2
CAPITAL ACCOUNTS
Capital stock:
8,546
Preferred.......................
Common.......................... .... 2.096,799
xOtftl*•••••••••♦••••••••••••« ... 2.105,345
Surplus.............................. .
3,083,495
Undivided profits............ ........ .
1,212,538
E.6S6rV6S
268.740
Total surplus, profits, and
reserves••••••»•••••••••••««•••• J H . 5 6 U . 7 7 3
Total capital accounts........... .
6.670.118
Total liabilities and capital
accounts..................... . • 102,738,560
RATIOS:
Percent
U.S.Gov't securities to total assets. .
34.22
Loans and discounts to total assets..
31.56
Capital accounts to total deposits...
7.06

; Oct. 10,
;
1951

\ Dec. 30,
:
•

1950

Increase or decrease: Increase or decrease
since Oct. 10. 1951 :since Dec. 30. 1950
:Fercent
Amount
:Percent: Amount

$2,804,057
815,117
329,071

$51,578,292
19.571.u50
2.731.OOH
7.5HO

$52,051.78H
19,010,542
i,9<*,552
6.392

$3.277.5H9
254,209
-H97.381
2,463

1.30
-18.21

5.H13.462
8,859,019

5,707,1?H
9.135,365

5H,130
930,955

9.44
10.51

217,39s
654,609

3.81
7.17

1.U5.190
89,275,957

1,713.803
89,529.632

676,679

60.68

78.066

4.56

5,155!604

5.77

4,901,929

5.48

1^8,910
1 .HH7.511

76,644

-133.H26

173.886

-89.60

1.304,828

12.01

-6l,l60
316,569

-79.80
24.26

90,872.378

90.9U.10H

5.196.064

5.72

5.157.338

5.67

-3,516
26.244
22J28
65.9H5
-74,226
-1.267

-29.15
1.27
1.09
2.19
-5.77
-.47

-6,556
110,251
103.695
158,391
88,315
-9.272

—43.4l
5.55
5.18
5.Hi

_ H,327,339 .... -9.5H8
13,180
6.328.989

-.21
.20

237,434

5 .H9

341,129

5.39

5 .209.244

5.3H

12,062

15,102

2,070,555
2,082,017
3 ,017,550
1 ,286,761*

1.986.548
2.001.650
2,925,104
1 ,12H ,223
278.012

270.007

H.57H.321
6,656.938

97.529.316
Percent
3H .71

32.16
7.46

97.2Ho.093
Percent

36.70
30.11
7.07

NOTE:

6.35
32.67

5.39

4.29
17.28

3.611

__ 5 *

56.49

7.86

-3.3H

98*67 ___5^65

Minus sie:n denotes decrease.

Statement showing comparison of principal items of assets and liabilities of active national hanks
as of December 31, 1951, October 10, 1951 and December 30, 1950
(in thousands of dollars)

Dec. 31,
1951

Oct. 10,
1951

¡Increase or decrease:Increase or decrease
: since Oct. 10. 1951?since Dec. 30. 1950
•Percent
jPercent: Amount
Amount
- .0 2
-1
-19
-38
4.965

Dec. 30,
1950

4.946
Humber of banks...................
ASSETS
$787,863
17-07
$2,287,343
5-29
Commercial and industrial loans..
$15,639,255 $i4,901.392 $13,Uo i ,912
8 .0 7
562,882
1.63
121,164
7,541,103
7,419,939
6,973,221
Loans on real estate...........
21,522
.21
.**9
9,117
Consumer loans to individuals....
4,415,153
4 ,406,036 1/4 ,393,631
Other loans to individuals : Single­
111,960 8.78
2.50
33,782
1,353.510
payment loans of $3»000 and over,
1,275.332
1,387,292
4.56
244.808
6-77
3.692.778
3
.
616.505
168.535
All other loans,including overdraft«
3.861.313
10.88
1,120,461
29
,
665,601
■
32,894,116
3,228,515
Total gross loans............
3.53
31,773,655
21.18
82.218
14.02
368.1a
57,835
4i2.5o4
Less valuation reserves....
470.339
1.062,426
29.277.480
10-75
3.144.297
Net loans.... ...... .
32.423.77731.341.151
.3.0&S.
Government
securities:
u.
-541,246
-1.52
35,146,687
33,847,660
35,687,933
1,299,027
3-84
Direct obligations...........
6.029 166.23
9.656________8.898
3.627_________ 758
8.52
Obligations fully guaranteed...
Total U. S. securities.....
35.156,343
33.85b.558
35.691.580
1.299.785
3
-5 3 5 ,gn ___z± Æ .
Obligations of States and political
646,182
165,034
13-79
4,687,048
3*19
5.168,196
subdivisions................... .
^5,333,230
-3.86
7,688
2,468,442
-.32
-95,293
2,380,837
Other bonds, notes, and debentures..
2,373,1^9
Corporate stocks, including stocks
3.03
.68
1.224
3.322
179.671
175.573
of Federal Reserve banks.........
180,895
41.585.262
2
O
94
43.022,623
3.51
. -°5
1.458,355
Total securities...............
43.043.6l7
4.38
3.46
72!946 >13 72,300,103 _ 2 .520,981
3.167I291
Total loans and securities......
75,^7»32^
6.42
1,147,069
85,552
271,495 23.67
Currency and coin.................
1,418,564
1.333.012
12.27
-42,601
12
,
864,033
11,420,505
1,400,927
Reserve with Federal Reserve banks..
12,821,5-32
-33
4.68
11
,
245.861
27.63
526.301
Balances with other banks.... .....
11,772.162
2.548,759
9,223,403
Total cash, balances with other
banks, including reserve bal­
ances and cash items in pro­
2.198.723
26.012.158 23.420.448 23,813,435
cess of collection....... ..
11-07
Sb*
2 .59L .I10
11.7i
132.453
Other assets...................
1,259.008 1.162.455
1.126.555
§6.553
M L
102,738,560 97,529,316 97,2^0,093
5 ,209,244
5-3^
5 ,498,467
5.65
Total assets...............
1J Adjusted to exclude single-payment loans of $3*000 and over.

-

2

-

and others for the purpose of purchasing and carrying securities, and to hanks, etc*,
amounted to $5,249,000,000, an increase of 4 percent since October*

The percentage

of loans and discounts to total assets on December 3^* 1951 was 31*56 ia comparison
with 32.16 on October 10 and

30.ll

in December 1950*

Investments of the banks in United States Government obligations (including

31,

$10,000,000 guaranteed obligations) on December

1951 aggregated $35,156,000,000,

v which was an increase of $1,300,000,000 since October, but a decrease of $535*000*000,
or l| percent, since December 1950*

These investments were

compared to 37 percent in the year previous.

3^

percent of total assets]

Other bonds, stocks and securities of

$7,887,000,000, which included obligations of States and political subdivisions of
$5,333,000,000, were $158,000,000, or

2 percent,

I

more than in October, and

$556,000,000, or 7% percent, more than held the previous December.

The total securities

held amounting to $43,000,000,000 was an increase of $1,500,000,000 since October, but!
about
was /the same as the amount held in December 1950*
Cash of $1,419,000,000, reserve with Federal Reserve Banks of $12,821,000,000
and balances with other banks (including cash items in process of collection) of
$11,772,000,000, a total of $26,012,000,000, showed an increase of $ 2,592,000,000, or B

11

percent, in the quarter*
The unimpaired capita! stock of the banks on December

including $8,000,000 of preferred stock.

31»

1951 was $ 2,105*000,000,1

Surplus was $3,083,000,000, undivided profits

$1,213,000,000 and capital reserves $269*000,000, or a total of $4,565*000,000.
capital accounts of $6,670,000,000, which were

7*06 percent

Total!

of total deposits, were

$13,000,000 more than in October when they were 7*46 percent of total deposits*

TREASURY DEPARTMENT
Washington, D. C.
FOR RELEASE, MORNING NEWSPAPERS
.kc&suiAk* .y / - i v ^

The total assets of national hanks on December 31, 1951 amounted to more than
$102,000,000,000, it was announced today by Comptroller of the Currency Preston
Delano*

The returns covered the 4,946 active national banks in the United States
.|
pp||| ft?

and possessions#

The assets were $5*000,000,000 more than the amount reported by

the 4,947 active banks on October 10, 1951» the date of the previous call, and were
nearly

$5 »500*000,000

December

30*

more than reported by the 4,965 active national banks as of

1950*

The deposits of the banks on December

31

were $94,000,000,000, an increase of

over $5*000,000,000 since October, and exceeded by $5*000,000,000 the amount reported!
in December 1950*

Included in the recent deposit figures were demand deposits of

individuals, partnerships and corporations of $54,856,000,000, which increased
$3*278,000,000 since October, and time deposits of individuals, partnerships and
corporations of $19*826,000,000, an increase of

254,000,000.

Deposits of the United

States Government of $2,234,000,000 were down $497*000,000 since October; deposits of
States and political subdivisions of $5*924,000,000 showed an increase of $511*000,00(1
and deposits of banks amounting to $9*790*000,000 increased $931*000,000 since October^
Postal savings were $10,000,000 and certified and cashiers* checks were $1,792*000,00(1
Net loans and discounts on December
high.

31,

1951 were $32,424,000,000, an all-time

They were $1,063,000,000 above the October figure and $3,146,000,000, or 11

percent, above the December 1950 figure.

Commercial and industrial loans as of the

recent call date were $15',689*000,000, an increase of $788,000,000 since October.
Loans on real estate of $7*541*000,000 were up l|r percent in the period.

Consumer

loans to individuals were $4,415,000,000, exclusive of single-payment loans to ihdi- 1
viduals of $3*000 and over, which were included with this class of loans prior to
June 1951*

-All other gross loans, including loans to farmers, to brokers and dealers I

T R E A S U R Y

14

D E P A R T M E N T

Information Service

RELEASE MORNING NEWSPAPERS,
F r i d a y , March 7* 1952-______

WASHINGTON, E

8-2987

The total assets of national banks on December 31* 1951
amounted to more than $102,000,000,000, it was announced today by
Comptroller of the Currency Preston Delano.
The returns covered
the 4-, 946 active national banks in the United States and
possessions.
The assets were $5*000,000,000 more than the amount
reported by the 4,947 active banks on October 10, 1951* the date
of the previous call, and were nearly $5*500,000,000 more than
reported by the 4,965 active national banks as of December 30,1950.
The deposits of the banks on December 31 were $94,000,000,000,
an increase of over $5*000,000,000 since October, and exceeded by
$5*000,000,000 the amount reported in December 1950.
Included in
the recent deposit figures were demand deposits of individuals,
partnerships and corporations of $54,856,000,000, which increased
$3,278,000,000 since October, and time deposits of individuals,
partnerships and corporations of $19*826,000,000, an increase of
$254*000,000.
Deposits of the United States Government of
$2,234,000,000 were down $497*000,000 since October; deposits of
States and political subdivisions of $5*924,000,000 showed an
increase of $511*000,000; and deposits of banks amounting to
$9,790,000,000 increased $931*000,000 since October.
Postal
savings wore $10,000,000 and certified and cashiers' checks were

$1,792,000,000.

Net loans and discounts on December 31* 1951 were
$32,424,000,000, an all-time high.
They were $1,063,000,000 above
the October figure and $3,146,000,000, or 11 percent, above the
December 1950 figure.
Commercial and industrial loans as of the
recent call date were $15*689,000,000, an increase of
$788,000,000 since October.
Loans on real estate of
$7*541,000,000 were up 1-| percent in the period,
Consumer loans
to individuals were $4,415*000,000, exclusive o f ■single-payment
loans to individuals of $3*000 and over, which were included with
this class of loans prior to June 1951.
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 $5,249*000,000, a n increase of 4 percent since
October.
The percentage of loans and discounts to total assets on
December 3,1* 1951 was 31.56 in comparison with 32.16 on October 10
and 30.11 in December 1950.

415
-

2

-

Investments of the banks in United States Government
obligations (including $ 10 ,000,000 guaranteed obligations) on
December 31, 1951 aggregated $35,155,000,000, which was an
increase of $1,300,000,000 since October, but a decrease of
$535,000,000. o*> If percent, since December 1950.
These invest­
ments were 34 percent of total assets, compared to 37 percent in
the year previous.
Other bonds, stocks and securities of
$7 ,887 ,000,000 , which included obligations of States and
political subdivisions of $ 5 ,333 ,000 ,000 , were $ 158 ,000 ,000 , or
2 percent, more than in October, and $556,000,000, or 7f percent,
more than held the previous December.
The total securities held
amounting to $43,000,000,000 was an increase of $ 1 ,500 ,000,000
since October, but was about the same as the amount held in
December 1950*
Cash of $1,419,000,000, reserve with Pederal Reserve Banks of
$12 ,821 ,000,000 and balances with other banks (including cash items
in process of collection) of $ 11 ,772 ,000 ,000 , a total of
$26,012 ,000,000 , showed an increase of $ 2 ,592 ,000,000 , or 11
percent, in the quarter.
The unimpaired capital stock of the banks on December 31, 1951
was $ 2 ,105 ,000 ,000 , including $ 8 ,000,000 of preferred stock.
Surplus was $3,083,000,000, undivided profits $1,213,000,000 and
capital reserves $ 269,000,000 , or a total of $ 4 ,565 ,000,000 .
Total capital accounts of $6,670,000,000, which were 7.06 percent
of total deposits, were $13,000,000 more than in October when
they were 7,46 percent of total deposits.

0O0

/

S ta te m e n t sbowing co m p ariso n o f p r i n c i p a l ite m s o f a s s e t s and l i a b i l i t i e s o f a c t i v e n a t i o n a l banks
a s o f December 3 1 , 1 9 5 1 , O cto b er 1 0 , 195>1 and December 3 0 , 19i?0

3

(In thousands of dollars)
•
•
•
•
#Increase or decrease:Increase or decrease
•
•
: Dec* 30, : since Oct. 10, 1931:since Dec. 30, 1930
: Oct. 10,
• Dec. 31,
•
:Percent
sPercent: Amount
1950
! Amount
1951
:
•
1951
:
-.38
-.02
-1
-19
h*9h6
1*,965
l*,9l*7
Number of banks»••••»••»•-»©•»•••••o»
ASSETS
$787>863
5.29 #2,287,31*3 17.07
Commercial and industrial loans•••»• #15,689,255 #llt,901,392 $13,1*01,912
562,882
8.07
1.63
6,978,221
121
,16U
7,1*19,939
Doans on real estate•«.«»«•»••«»<» »«•
7,51*1,103
.21
21,522
.1*9
¡
*
,
1
*
06,036
9,117
l/l*,393,631
Consumer loans to individuals©•••••»
¡*,1*15,153
Other loans to individuals: Single­
111,960
8.78
33,782
2.50
1,353,510
1,275,332
payment loans of $3,000 and over»*
1,387,292
21
*
1
*
,
808
1*,56
6.77
3,692,778
3,616,505
168,535
All other loans, including overdrafts
3,361,313
1,120,1*61
3',225,515” "T6785
32,891*,116"'"31,773,555“ 29,665,601
3«53
Total gross loans*»•••••••.•••»•»
21.18
llu02
82,218
388,121
1*12,501*
57,835
Less valuation reserves»*©••«»
1*70,339
1,062,626
3,11*6,297
10.75
3o39
Net loans»»»»..»©»»«»»«».»» .32,1*53',''777' 'll,1'6T,'T31"" 29,277,1*80
U. S. Government securities*
-51*1,21*6
-1.52
3.81*
33,81*7,660
1,299,027
35,687,933
35,11*6,687
Direct obligations»»♦»..©♦..»••o*
6,029 166.23
9,656
758
8,898
3,627
8.52
Obligations fully guaranteed»*»•«
-1.50
-535,217
1 , 2 ' 9 9 , W "3.'81*
Total U. S» securitieso».».»»®
35,156,3’lir~13;B3'6733'8 '" 35,691,560
Obligations of States and political
61*6,182
¡*,687,01*8
13*79
165,031*
3®19
5,333,230
5,168,196
subdivisions®••••»«•*••*•••*•»••*•
-3.86
-.32
2,1*68,1*1*2
-7,688
-95,293
Other bonds, notes, and debentures**
2,380,837
2,373,11*9
Corporate stocks, including stocks
5,322
3*03
1 ,22U
»63
175,573
179,671
of Federal Reserve banks..•••••••*
180,893
-753
257995”
3«31
A3 50225623
i,U38,33i
¡*3,01*3,617 -T3T,T85,T62
Total securities•••••«••••••••••*
¿u 38
2,52079BI- 3ol*6
3,167,291
?2,3iii6;uir 72,300,103
Total loans and securities*».»••*
75,1*67,391*
6 ,'1*2'
23.67
271,1*95
83,33^
1,11*7,069
1,1*18,561*
Currency and coi n •*»»»••*» »*«*© *©*
1,333,612
12.27
-1*2,601
1,1*00,927
-.33
11,1*20,505
Reserve with Federal Reserve banks.*
12,861*,033
12,821,1*32
U*68
526,301
27.63
11,21*5,861
2,51*8,759
11,772,162
9,223,1*03
Balances with other banks.«».......*
Total cash, balances with other
banks, including reserve bal­
ances and cash items in pro2,391,710
9® 23
11*07
2,198,723
23,1*20,1*1*8
26,012,138
23,813,1*35
"TOT
11.76
132,1*53'
96,553
1,239,008 -- 1,162,1*55 — 1,I26755T
Other assets»•»»•»»•»•••••••••••»•••
5,209,21*1*
5,1*98,1*67'
5.65
'5.31*'
93,529,316' 97,21*0,o93Total assets••»••••••••©•••»•»» 102, 73d, i?6o
1/ Adjusted to exclude single-payment loans of $3*000 and over

4^
CD

U

Comparison of principal items of assets and. liabilities of national banks — continued

(In thousands of dollars)

Dec. 31,

1951

•
:
s

Oct. 10,

1951

: Dec. 30,
1950
:

•increase or decrease: Increase or decrease
:since Oct. 10, 1951 :since Dec. 30, 1950
:Percent
:Percent: Amount
: Amount

LIABILITIES
Deposits of individuals, partnerships,
and corporations:
Demand.•
$56, 855,8U1 #51,578,292 #52,051,7814
#3,277,569
6.35
256,209
1*30
Time. ........
19,010,5142
19,571,1450
19,825,659
-697,381 -18.21
2,731,0014
Deposits of Ut S. Government..........*
1,9014,552
2,233,623
7,5140
10,003
Postal savings deposits................
2,663 32.67
6,392
Deposits of States and political
511,130
5,9214,592
subdivisions.•
5,lil3,li62
9»W4
5,707,1914
8,859,019
Deposits of banks..... .
9,135,365
10.51
. 930,955
9,789,9714
Other deposits (certified and cashiers*
60.68
1,115,190
1,713,803
676,679
checks, etc •)*•••••••••.... .
1,791,869
Total deposits.•................
' 91i,01,561" -897Z757Wr «9,529,632 ---5,T357>'06" " '5.77"
Bills payable, rediscounts, and other
-133,626 -89.60
76,6a
1148,910
liabilities for borrowed money.......
15,14814
173,886
12.01
Other liabilities*••«••••...... .
1,667,511
1,621,397
1,3014,828
Total liabilities, excluding
5.72
96,068,ltli2
90,872,378
90,911, loll 5,196,066
capital accounts.... .
CAPITAL ACCOUNTS
Capital stock:
15,102
12,062
-3,516 -29.15
8,516
Preferred. ................... .

Common*...........................
2,096,799
Total........................
2,105,3^5
Surplus.
1,212,538
Undivided profits................. .
268,760
Reserves.
Total surplus, profits, and
reserves
14,5614,773
6,670,118
Total capital accounts............
Total liabilities and capital
102,738,560
accounts.•
Percent
RATIOS:
3U .22
U.S.Gov*t securities to total assets.
31.56
Loans and discounts to total assets.*
7.06
Capital accounts to total deposits...

#2,806,057
815,117
329,071
3,611

5.39
6.29
17.28
56.69

217,398
656,609

3.81
7.17

78,066
67901",92? -

6.56
5.68

-61,160
316,569

-79.80
26.26

5,157,338

5.67

-6,556

-li3«iil
1,986,5148
110,251
1.27
26,2hh
5 .5 5
2,070,555
5.18
'22,728
' 2,082,617
' 2,001,650
1.09
103,695
'3,017/550”— 2 7 9 2 5 ^ w ----- 5 5 ; w “ T / I F -----158,5-9I""~ 5761
7.86
-76,226
1,286,76U
1,1214,223
-5.77
88,315
-9,272
278,012
-3.36
-1,267
-.67
270,007

14,5714,321
6,656,938

h.327,339
6,328,989

-9.5U8
13,180

-.21
•20

237.636
361,129

5.69
5.39

97,529,316

97,260,093
Percent

5,209,266

5.36

5,698,667

5*65

Percent

314.71
32.16

36.70
30.11

7#U6

7.07

NOTE:

Minus sign denotes decrease I—k

w ill,
;

IS am c o n v i n c e d ,
' V ,

: jf'S,

...1; V j V %

’•

'■ | | f i j |

■"•/:, | J |

\

.. V

maKe a most
%V

j É Ë É

/ V-' V

'|

,

i m p o r t a n t c o n t r i b u t i o n to p u b l i c
o f t h e pr obl ems now
confronting us.

f o r prudence^with r e s p e c t to p o l i c i e s
which a f f e c t the Fe d er a l debt.

As

the Subcommittee’ s q u e s t i onna i res
brought out so c l e a r l y ,

a governmental

agency does not operate in the f i e l d
of a b s t r a c t t h e o r y ;
be given a t a l l

fu ll

account must

times to the p r a c t i c a l

i m p l i c a t i o n s of the p o l i c i e s and
programs undertaKen.

The o p p o r t u n i t y

which the p r e s e n t h e a r i n g s w i l l
p r o v i d e f o r a d i s c u s s i o n of measures
a p p r o p r i a t e to our! p r e s e n t -s i t u a t i o n

\

45

to 33 p e r c e n t a t t h e p r e s e n t t i m e .
It

has s ucceeded

in m a i n t a i n i n g

s a v i n g s bond o w n e r s h i p not o n l y a t
t he w a r t i m e peaK,
which

but a t a f i g u r e

i s now c l o s e to $58 b i l l i o n

$9 b i l l i o n

--

h i g h e r t h a n t h e amount

h e l d a t the c l o s e o f World War I I
financing .

Our d e f i c i t

financing

program must c o n s e r v e t h e s e g a i n s - and

i t must add to them.
For these reasons,

t he T r e a s u r y

p l a c e s g r e a t e m ph a s i s on t h e need

The p r o s p e c t o f s u b s t a n t i a l
d e f i c i t financing

in t h e p e r i o d

i m m e d i a t e l y ahead u n d e r s c o r e s t he
i m p o r t a n c e o f t h e broad economic
o b j e c t i v e s of the T re a s u ry ,
p a rticu la rly
poi i c y .

and

o f debt management

The T r e a s u r y has succeeded

d u r i n g the p o s t w a r p e r i o d

in

re d u cin g the p r o p o rt io n o f the
public

debt h e l d by the commerci al

barm rug s y s t e m from 42 p e r c e n t a t
t he peaK o f WorId War 11 f i n a n c i n g

- 43 -

f o r w orKi ng t o g e t h e r on t h e
p r o b l em s whi ch we s h a l l
solve

jo in tly

I mp or t a nt

have to

I f t he f undame nt al

s t r e n g t h and p r o d u c t i v e power o f t he
Ame ri can economy a r e to be m a i n t a i n e d
I feel

t h a t an a d v i s o r y c o u n c i l

of

t he s o r t whi ch I have d i s c u s s e d
w i t h t h e c omm it te e t od a y would be o f
help

in b r o a d e n i n g t he scope o f

cooperation.

The s p i r i t

cooperative e f f o r t ,

of

h o we ve r,

is the

e s s e n c e o f the m a t t e r .

1

When we r e v i e w a l l
facts

in the T r e a s u r y ,

of these
and e v a l u a t e

them in ter ms of t he probJem a t
hand,

t he s i t u a t i o n ^ s e e m s to us to

add up to t h e s e c o n c l u s i o n s :
It

is e s s e n t i a l

f o r the

w e l l - b e i n g o f the c o u n t r y t h a t t he
T r e a s u r y and t he F e d e r a l
c o n t i n u e to worK

Reserve

in t h e c l o s e s t

llllllllll
*
fill
lliliilllll
cooperation.
i e s a r e in
Both/agene

w h o l e h e a r t e d agreement on t h i s
m atter.

There

i s no s u b s t i t u t e

of o p in io n ,

also,

as to meas ures

w hi ch s h o u l d be t a k e n o u t s i d e t h e
a r e a o f debt management to m a i n t a i n
sta b ility

in t h e p r i c e s t r u c t u r e

and in t h e economy g e n e r a l l y .
These d i f f e r e n c e s of o p i n i o n
a r e to be e x p e c t e d .

The pr obl ems

in vo lve d are e x tre m e ly complex;
they a re a l l
they a l l

i n t e r - r e I a t e d ; and

t o u c h on maj or a s p e c t s of

p u b l i c economic p o l i c y a f f e c t i n g
wide a r e a s o f t h e economy.

.

£*,&<•
Î*«!»' V

40

conferences^and d i s c u s s io n s
which t he F e d e r a l
,■
^: -; ! ".' ’ 'lV

'"•; :

. -.Ya

'.;.'\ ‘ .^ Y '; \ Y

t> v ;V ;.: ";'v.. ,

.

V

' Y b '- V b 'b ' ' '

(in

Reserve p a r t ic ip a t e s )
V

■.^. h i';

.■: r":V '.V.T

with r e p r é s e n t â t ives of
i n v e s t o r and f i n a n c i a l

*L/ >

3A

*1

/ ■^ r ' . ' . Y b . - . b ''-. Y Y b b Y 'Y ..':'

leading
groups and

o t h e r s d u r i n g r e c e n t weeKs.
W h i l e I have found g e n e r a l
agreement, as
the need f o r

I noted e a r l 1 e r ,

s e c u r in g the n e ce ssa ry

amounts from non-barm
‘

Îf I

Ab

>,

I

on

&

;»

*4

investors,
Ê

I jÉ /vn iY

I &

v

0 & 0 :w

there
$i

1 §S§$

i s a wide d i v e r g e n c e o f v i e w s on howwe ought to go about s e c u r i n g t h e
|9 |
funds;

and t h e r e a r e d i f f e r e n c e s

I

In o r d e r to f o r m u l a t e a program
s u i t e d to t h e ^ c u r r e n t s i t u a t i o n ,
Treasury

as

the

i t has done in

c o n n e c t i o n w i t h each
f inanc ing o p e r a t ion

important
in t h e p a s t - -

has been maKing e x t e n s i v e a n a l y s e s
o f t h e money and, i n v e s t m e n t m a r n e t s ;
i t has been d i s c u s s i n g the pr obl ems
on a c o n t i n u i n g b a s i s w i t h
r e p r e s e n t a t iv e s of the Federal
Reserve System;

and i t

conducting a s e r i e s of

has been,
informal

t e n d e n c i e s must be c o u n t e r e d ,

and

sound c o n d i t i o n s must be m a i n t a i n e d
in t h e m a r «e t f o r U n i t e d S t a t e s
Government s e c u r i t i e s .

To s e l l

the

g r e a t e s t p o s s i b l e amount o f
se cu ritie s

o u t s i d e o f the commercia

banKing s y s t e m ,

i s s u e s must be

p r o v i d e d which w i l l
needs.

meet

investor

Each one o f t h e g e n e r a l

r e q u i r e m e n t s o f a sound debt
management program,

therefore,

is

seen to have a d i r e c t a p p l i c a t i o n
to our p r e s e n t I p r o b I e m .

p ractical

meaning of t h e broad

o b j e c t i v e s o f debt management whi ch
I o u t l i n e d e a r l i e r becomes c l e a r .
It

is evid ent

t h a t we must use

g r e a t c a r e to m a i n t a i n an atmosphere
which w i l l

be f a v o r a b l e not o n l y to

the p u r c h a s e o f new Government
se cu ritie s,

but to t h e r e t e n t i o n o f

c u r r e n t h o l d i n g s - - and p a r t i c u I a r I y ,
of course,

t h e h o l d i n g s o f nonbann

in vestors.

To m a i n t a i n

confidence,

in flatio n ary

investor
or d e f l a t i o n

fl

'

.

• ■■■ ■'M

,

c

-

Including - -

ôb

in a d d i t i o n to Fe d e ra l

s e c u r i t i e s - - bonds o f Stat e and
local

governments,

o b l i g a t i o n s of

p r i v a t e c o r p o r a t i o n s , mortgages,
banK loans, consumer
paper,

etc.

instaIment

P u b l i c debt o b l i g a t i o n s

r e p r e s e n t an important p a r t of the
a s s e t s of our f i n a n c i a l

i n s t i t u t Ions,

of numerous b u s i n e s s c o r p o r a t i o n s ,
and of m i l l i o n s o f

i n d i v i d u a l s and

f a m i l i e s throughout the Nation.
A g ai ns t t h i s bacKground, the

such as c a p i t a l e x p e n d i t u r e
programs - - which draw on investment
funds,

When we found

it necessary

to borrow la rg e sums of money e a r l y
in World War 11, moreover, the
É ;
»Government*s debt was much s m a l l e r
than

it

is now, both in a b s o l u t e

terms and in r e l a t i o n to the s i z e
of the economy.

Today, our

Government debt acc oun ts f o r almost
h a lf of a ll
the c o u n t r y ,

the debt o b l i g a t i o n s
p u b l i c and p r i v a t e ;

in

34

C*K

a v a i l a b l e f o r spending or s a v i n g .
In the second p l a c e ,

we must

tane account of the f a c t that our
p r e s e n t borrowing program w i l l

have

to be gearecMfo a s e t of c i rcumstances
which are uni iKe those e x p e r i e n c e d
c o n n e c t i o n with any p r e v i o u s
l a r g e - s c a l e borrowing o p e r a t i o n s .
In c o n t r a s t to the WorId War I I
situation,

f o r example, a la rg e

s e c t o r of i n d u s t r y and t r a d e

is

engaged in s u b s t a n t i a l l y normal
operations;

including operations - -

in

¡JS

33

In i n f l a t i o n a r y p r e s s u r e s ;

but it

would be imprudent to g i v e

l e s s than

fu ll

weight to the i n f l a t i o n a r y

i m p l i c a t i o n s o f our l a r g e defense
program and of the d e f i c i t
f i n a n c i n g o p e r a t i o n s which w i l l
have to be undertanen
with

it.

in c o n n e c t i o n

For some time to come,

defense p r o d u c t i o n w i l l

draw h e a v i l y

on our p h y s i c a l r e s o u r c e s ; and the
e x i s t e n c e of a s i g n i f i c a n t d e f i c i t
w ill

add to the suop ly of funds

t
y O
V jK
LV V >

OOr*

32 ?' ' .

!:•

-•,

t h i s p o i n t forward,

however, we

must proceed on the b a s i s o f a
careful

a n a l y s i s of the many

co n flictin g factors
out Ioo k .

in the

immediate

There i s no s i n g l e ,

approach which w i l l

simple

s o l v e the e n t i r e

probIem f o r us.
To begin with,
c o n s t a n t l y watchful

we must be
with r e s p e c t

to the development o f i n f l a t i o n a r y
or d e f l a t i o n a r y t e n d e n c i e s .
appears to be a l u l l ,

There

at p r e s e n t ,

31
and' the many balanced judgments
which are i n v o l v e d , c o u l d not be
better

i l l u s t r a t e d than by our

present s it u a tio n ;
stated,

As | have

we may have to borrow as-

much as $ 10 b i l l i o n

in new money

from the p u b l i c b e f o r e the end o f
t h i s c a l e n d a r ye ar ; and i t

is

g e n e r a l l y agreed that these funds
should be obt a in ed to the g r e a t e s t
e x t e n t p o s s i b l e o u t s i d e of the
commercial banxing system.

From

i n f l a t i o n a r y or d e f l a t i o n a r y
pressures,

j

r

■

(b) providing s e c u r i t i e s

to meet the c u r r e n t needs of v a r i o u s
i n v e s t o r groups,

and ( c ) m a i n t a i n i n g

a sound marnet f o r United ^ t a t e s
Government s e c u r i t i e s .

These

o b j e c t i v e s are the g u i d e s which we
use in a r r i v i n g at p o l i c i e s which
are a p p r o p r i a t e to c u r r e n t economic
conditions.
The d i f f i c u l t i e s of t h i s
p r o c e d u re

in p r a c t i c e ,

however,

The budget I s ,

of c o u r s e ,

subject

to r e v i s i o n as the year p r o g r e s s e s ,

t u re program shapes up
atever

final

to be. however,
we s h a l l

f i g u r e s turn out

the amounts

have to borrow w i l l

be

s u b s t a n t tal«
E arlier

in t h i s statement,

I

noted th at the g en era l g o a l s of our
debt management programs are
( a ) c o u n t e r i n g a ny pronounced

future;

and I should

l i n e to

d i s c u s s with you b r i e f l y
problem o f t h i s s o r t ,
ties

how a

in p r a c t i c e ,

in with the more g en er a l

cons i d e r a t i ons which govern Tr ea su ry
po I i c y .
On the b a s i s of the e s t i m a t e s
the P r e s i d e n t ’ s budget,

in

as much as

$10 b i l l i o n of the defense program
may have to be f i n a n c e d by a d d i t i o n a l
borrowing from the p u b l i c bef or e the
end of the p r e s e n t c a l e n d a r year.

among the committees o f Con gress to
appra i se the whole complex o f
measures and programs having a
sig n ifican t

i n f l u e n c e on the

economic w e l l - b e i n g of the c o u n t r y .
Because of our a p p r e c i a t i o n
of t h i s f a c t ,

we have given s p e c i a l

a t t e n t i o n to the q u e s t i o n s
r e q u e s t i n g g ene ra l vi e w s.
'

llttl v SÌ

now, however,
practical

hie

: 1',f

Ri ght
■:"ft ' -

are faced with a

f i n a n c i n g problem which

must be worKed out in the immediate

p o s i t i o n to h e l p o b t a i n the Kind o f
c o o p e r a t i o n and c o h e s i v e n e s s of
p o l i c y which we need to emphasize
constantly

In a l l

Government*

T h is

branches o f
Is because the

Committee has the r t s p o n s } h i i f t y for
lo o k in g a t the economic problems
i n v o l v e d from ev ery p o i n t o f view.
You a r e not concerned s o l e l y with
rev en u es ,

f o r example, o r with

expend!tures,
rather

it

o r with a p p r o p r l a t i o n s

i s your unique f u n c t i o n

around a t a b l e to d i s c u s s t h e i r
differences,
coordination.

in the i n t e r e s t s o f
This, i t seems to

me, r e p r e s e n t s the essence of
independence

that the P r e s i d e n t

and the Board should have both
the r i g h t and the duty to d i s c u s s
the problems with each ot h er ,
on the b a s i s of a f r e e

i n t e rc h a n g e

of view s.
The J o i n t Committee on the
Economic Report i s

in a ve ry good

and the Fédéra { Reserve System was
ca lle d for.
question,
that

In answering t h i s

I indicated

m y

opinion

i t was d e s i r a b l e f o r the

F e d e r a l Reserve System to r e t a i n
independent s t a t u s ,

it

I e x p re ss e d

f u r t h e r , however, my s tr o ng f e e l i n g
that i t

is natural,

p r o p e r , and

d e s i r a b l e f o r the P r e s i d e n t to
seen to s e t t l e d i s p u t e s by having
a ll

o f

the i n t e r e s t e d p a r t i e s s i t

d i s c u s s i o n o f t h i s mat t e r
hearings,

in the

and to your own

d e l i b e r a t i o n s with r e g a r d to i t .
The q u e s t i o n o f t n a t i o n a l
c o u n c i l which would a c t as i n
advi s or y group with r e s p e c t to monetary and f i s c a l

policy brings

uo a not he r ma t t e r which f hope the
Subcommittee will f i n d time to
c o n s i d e r from a i l

angles.

In

q u e s t i o n 3 of the ques t i onna i r e
s ent to me, s d i s c u s s i o n of the

It

I s my p r e s e n t

i n t e n t i o n to

recommend to the P r e s i d e n t t h a t he
c o n s i d e r the c r e a t i o n o f ’ n n a t i o n a l
Pf

/ '.1
SKl O".;//'

•t|

c o u n c i l along the l i n e s which Î have
ju s t described,
authority

In the a r e s o f monetary and

fis c a l policy.
however,

with a d v i s o r y

P r i o r to doing so,

I s ho u ld I N e to o b t a i n the

vie w s of the Subcommittee as to the
a d v i s a b i l i t y - - . t h e p ro s and cons - o f such a s t e p .
with g r e a t

I am I s s u i n g forward

interest,

therefore,

to the

ill

less

l i v e l y to de ve lop .

A group

o f t h i s n a t u r e would do much to
a c h i e v e a c c o rd b e f o r e d i s c o r d a r i s e s
second,
for

the means would be p r o v i d e d

informal d i s c u s s i o n s with the

P r e s i d e n t on broad q u e s t i o n s o f
monetary and f i s c a l p o l i c y .

The

a d v i s o r y group c o u l d r e p o r t to the
P r e s i d e n t — p r e f e r a b l y on an
informal and c o n f i d e n t i a l b a s i s - as o f t e n as d e s i r e d

and the Chairman of the S e c u r i t i e s
and Exchange Commission.

From time

to time, the heads of other
a g e n c i e s (both permanent and
special

a g e n c i e s ) might be added to

the group,

as v a r i o u s problems a r i s e .

T h is group would s e r v e two major
pu rp os es .

First,

by r e g u l a r and

p e r i o d i c meeting and d i s c u s s i o n among
the heads of the agenci es hav ing to
do with f i s c a l

and monetary p o l i c i e s ,

d i f f e r e n c e s o f o p i n i o n would become

the c r e a t i o n of a t o p - l e v e l a d v i s o r y
group to the P r e s i d e n t on broad
q u e s t i o n s of monetary and f i s c a l
policy.

In that q u e s t i o n ,

i t was

suggested t h at a small c o n s u l t a t i v e and

à Wm

»f- ;

'

d i s c u s s i o n group be c r e a t e d w i t h i n the
Government.

This group might c o n s i s t of

the S e c r e t a r y of the T r e a s u r y ,

the

Chairman of the Board of Governors of
the F e d e ra l Reserve System, the
D i r e c t o r of the Budget, the
Chairman of the C o u n c i l

of

Economic A d v i s e r s to the P r e s i d e n t

flif
fo r fu r t h e r in g p u b lic understand!n
o f the r e s p o n s i b ! 1 1 t i e s and p o l i c y
o b j e c t i v e s which I have j u s t
summer I zed
greater

a r e d i s c u s s e d at

length - - and in r e l a t i o n t

many d i f f e r e n t s i t u a t i o n s —
By

in the

answers to the q u e s t i o n n a i r e .
It

i s my f u r t h e r hope t h a t the

Subcommittee w i l l

give c a re fu l

cons i d e r a t ion to the p o s s i b i l i t i e s
which I have bro

forward in the

wer to Question 10, r e l a t i n g to

Economic Programs

?,

To Hold Down the I n t e r e s t Cost

of the P u b l i c Debt to the Extent That
. / T h is I s C o n s i s t e n t with the Foreg oing
P

||j

O b je ct i ves

8.

To A s s i s t

in Shaping and

C o o r d i n a t i n g the F o r e i g n F i n a n c i a l
P o l i c y of the Un ite d S t a t e s

9.

To Manage the Gold and S i l v e r

R e s e r v e s of the Country

in a Manner

C o n s i s t e n t with Qur Other Domestic and
Foreign P o lic y O b jectives

02 F

Fed eral Reserve p o l i c y ,

and an

important p a r t of p u b l i c economic
policy

in g e n e r a l ,

as expressed

in

the Employment Act of 194$.
In a d d i t i o n to these f i v e economic
jpe±

f*

c t i v e s of T r e a s u ry p o l i c y ,

t her

o t h e r o b j e c t i v e s which we keep
onstantIy

in mind.

These are

i
6.

To Conduct the Da y-to -Da y

Finjin c ia l

Operatio ns of t he T r ea su r y so

a s to Avoid D i s r u p t i v e Ef f e c t s

in the

Money Markets and to Complement Other

Government S e c u r i t i e s

S u c c e ss in a c h i e v i n g these
s p e c i f i c o b j e c t i v e s of debt management
i s e s s e n t î al
confidence

to the maintenance of

in the c r e d i t of the

United S t a t e s Government.

Many of

the q u e s t i o n s sent to us by the
Subcommittee r e l a t e d to problems and
a c t i o n s in the area of debt management

■f
t h e

.

T r e a s u r y / h a s attempted to g i v e
I
I

the f u l l e s t p o s s i b l e r e p l i e s to
these q u e s t i o n s ; and I am hopeful

T re a s u ry c a r r i e s on c o n t i n u i n g
programs aimed at p r o v i d i n g maximum
s e r v i c e on the p a r t of the
Government at the lowest p o s s i b l e
c o s t to the taxpayers*

4.

To O i r e c t our Debt Management

Programs toward ( a ) C o u n t e r in g Any
Pronounced I n f l a t i o n a r y or D e f l a t i o n a r y
Pressures,

(b) P r o v i d i n g S e c u r i t i e s
C u r r e n t Needs of V a r i o u s

I n v e s t o r Groups,

and ( c ) M a i n t a i n i n g

a Sound Market f o r United S t a t e s

Congress to f u r t h e r t h i s end.

3.

To Give C o n t i n u i n g A t t e n t i o n

to G r e a t e r E f f i c i e n c y and Lower
C o s t s of Governmental O p e r a t i o n s

I consider t h is ob jective a
c o n t i n u i n g o b l i g a t i o n , not only of
the T rea sur y Department, but of
every Department and agency in the
Government.

Both w i t h i n the Department

and in a s s o c i a t i o n with other
branches of the Government, the

Within the Framework of a F e d e r a l
Budget P o l i c y A p p r o p r i a t e to Economic
CondItions

Through a c t i o n of Congress and by
executive d e c isio n s ,

the budget

i s s u b j e c t to co n s t a n t change; and i t
i s of the utmost importance th at
revenue .and e x p e n d i t u r e programs be
kept a p p r o p r i a t e to changing economic
c ir c u m s t a n c e s .

The T rea sur y and the

Bureau of the Budget work c l o s e l y
with the P r e s i d e n t and with the

of the f i n a n c i a l

soundness of t h i s

c o u n t r y , and a v i t a l

factor

in the

defens e e f f o r t of the e n t i r e f r e e
world.

In the b ro a de s t sense,

s a f e g u a r d i n g the c r e d i t of the
Government depends upon our a b i l i t y
a Nation to keep our f r e e e n t e r p r i s e
economy h e a l t hy and growing, and to
use our governmental
wisely

2.

ins tru m ent s

in promoting t h i s end.

To Promote Revenue and

E x p e n o i t u r e Programs which Operate

8

\I r
B’
b*'T

which the T r ea su r y Department seeks
to f u r t h e r through the use of the
powers which have been g ive n to i t
by the Con gress.

These o b j e c t i v e s ,

which a r e d e s c r i b e d more f u l l y

in the

answer to Question 2, are as f o l l o w s :

I.

To Ma i nta i n Conf i dence in thé

C r e d i t of the United S t a t e s Government

T h is i s the b a s i c o b j e c t i v e of
all

Treasury p o l i c i e s ;

p r e s e n t time,

it

and, a t the

i s the c o r n e r s t o n e

7

b e t t e r acq u ai nt ed with the n a tu r e of
the r e s p o n s i b i I i t i e s with which
i v a r i o u s agenci

have been

charged by the Congress -** and the
■'"Y

-

r e l a t i o n of p r a c t i c a l

p o l i c i e s to the

f u l f i l l m e n t of these res p o n s i b i I i t i es
This r e p r e s e n t s ,

in my view, a most

important p a r t of the study which

\

the Subcommittee i s u n d e r t a k i n g .

I

should

l i k e to take a few minutes,

therefore,

to comment b r i e f l y on

the ni n e g en era l economic o b j e c t i v e s

wiI I be covered
hearings.

in the p r e s e n t

In answering the

q u e s t i o n n a i r e submitted e a r l i e r by
the Subcommittee,

therefore,

gone into c o n s i d e r a b l e d e t a i l

I have
as to

the r e a s o n s why the T r e a s u ry took
c e r t a i n a c t i o n s at c e r t a i n tim es ;
what we hoped to a c c o m p l is h by them
and what - -

viewed r e t r o s p e c t i v e I y -

we d i d ac c o m p Ii s h .
It w ill
I feel,

be of p a r t i c u l a r v a l u e ,

f o r the p u b l i c to become

**03£

5

times when they took p l a c e .

In our

s w i f t l y moving economy, c i r c u m s t a n c e s
are always changing, and our views
as to a p p r o p r i a t e a c t i o n s and p o l i c i e s
must change with them.
be l i t t l e

There would

purpose in t r y i n g to

r e c o n s t r u c t the background of
important a c t i o n s

in the past u n l e s s

the d e t a i l s gave us added a b i l i t y
to plan our f u t u r e c o u r s e w i s e l y .
T hi s

is true,

I believe,

with

r e s p e c t to the s u b j e c t s which

3^

- 4 -

fundamental sense,

i s not only a

r e c o r d of d e c i s i o n s made and a c t i o n s
taken - -

it

i s a r e c o r d of a p p r a i s a l s ,

of c o n c l u s i o n s ,

and of judgments.

Those who r e p l i e d
quest i o n n a i r e s ,

to the Subcommittee’ s

i t seems to me, have

attempted to be f u l l y r e s p o n s i v e

in

t h i s fundamental s en s e.
In our own ca se ,

we found in

r e p l y i n g to the q u e s t i o n n a i r e that
i t was of te n d i f f i c u l t to r e c o n s t r u c t
past ev en ts in the c o n te x t of the

3 **
I do,

that the body of m a t e r i a l

which you have assembled w i l l
g r e a t v a l u e in the f i e l d

be of

of debt

management and monetary p o l i c y f o r
many y e a rs to come.

Not one p o i n t

Nof view, but many p o i n t s of view - I am almost tempted to s a y , a I I
p o i n t s of view - - seem to have been
elicited

by the Subcommittee in the

w r i t t e n answers to the v a r i o u s
q u e s t i o n n s i r e s which were sent out.
A p o lic y record,

in the most

2

Out*

down the pros and cons of the many
‘jig

|

i s s u e s presented f o r g e n e r a l i z e d
discussion

in the q u e s t i o n n a i r e .

In

view of the importance of the study,
owever,

f e l t t h a t time must be

found; and I am ve ry glad that
were a b le to g i v e f u l l
i e s to a i l

and c o n s i d e r e d

of the q u e s t i o n s

submitted to us
I b e l i e v e th at everyone who
reads the w r i t t e n r e p l i e s r e c e i v e d
by the Subcommittee wi l l

feel,

as

The h e a r i n g s which are b e gi n n in g
t h i s morning r e p r e s e n t the c u l m i n a t i o n
of a number of months of i n t e n s i v e
study and p r e p a r a t i o n of r e p l i e s
to the q u e s t i o n s r a i s e d by your
Subcommittee.

Anyone who has worked

on t h i s complex p r o j e c t cannot
help but be impressed with the
scope and s e a r c h i n g n a t u r e of the
q u e s t i o n s which were asked.
a l r e a d y heavy work s c h e d u l e s ,

In our
i t was

not easy to f i n d the time to s e t

STATEMENT BY SECRETARY SNYDER
ÎHE

M FO M

SUBCOMMITTEE OB ÖENERAL

C R E D IT

OF

CONTROL M D DEBT MANAGEMENT

IM

JOINT COMMITTEE ON ffÜ ECONOMIC REPORT

March 10,

19$2

4 6 6

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20

at the present time.

-

It has succeeded in maintaining savings bond ovner-

ship not only at the wartime peak, but at a figure which is now close to

$58 billion

—

$9 billion higher than the amount held at the close of

World War II financing.
these gains —

Our deficit financing program must conserve

and it must add to them.

For thia. reason^, the Treasury places great emphasis on the

J

4f

need for

with respect to policies which/hold the l'igk.ef T’fflttSTng
è

the Federal debt.

As the

Subcommittee’s questionnaires brought out so clearly, a governmental
agency does not operate in the field of abstract theory; full account

must be given at all times to the practical implications of the policies

and programs undertaken.

The opportunity which the present hearings will

provide for a discussion of measures appropriate to our present situation

will, I am convinced, make a most important contribution to public under­
standing of the problems now confronting us.

- 19 4 >

It is essential for the well-being of the country that the
'i?

Treasury and the Federal Reserve.work in the closest cooperation.

Both

IS
agencies are in wholehearted agreement on this matter.

There is no

0
substitute for working together on the important problems which we shall

have to solve Jointly if the fundamental strength and productive power
of the American economy are to be maintained. phi» ^nhanigm, of cnoperarf^wnd) I feel
«■M

f Cmliraal
.
that a
advisory council of the sort which I have discussed with
the committee today would be of help*

The spirit of cooperative effort,

however, is the essence of the matter.
jjjr The prospect of substantial deficit financing in the period

immediately ahead underscores the importance of the broad economic
objectives oftreasury

t,

and particularly of debt management

)

policy.

The Treasury has succeeded during the postwar period«
in reducing the

proportion of the public debt held by the commercial banking system

from

k2

percent at the peak of World War II financing to 33 percent

~

these problems*

18

~

Likewise, priorities and allocations of scarce^and strategic
jlP';

materials j Government production loan guarantees and loar^to increase
Jr
'

*v „

;

i

'

/¿ÉF

production for national defense needs, voluntary credit restraint programs,

Jr

f

¿pw
r
æ

’id i

and price and wage controls are of help at time#when there are upward

,W

jar

pressures in critical areas of the price stj^ctureo

W
Æ
w

In the last analysis, however, we |list recognize that the flow of

M
production is the most powerful defense of our free enterprise economy

//
S

/
Æ
J
gf?
against disruptive influences* #This fundamental fact has been well

demonstrated in the period ^Lnce the outbreak of hostilities in Korea,when
#
Æ
the continued availability of supplies turned back two waves of scare buying

M■

W
Jp

Æ

in anticipation of shortages*

M i
M

The civilian economy cannot, of course, have
-■- , "
-

full access to imperials and services needed for defense purposes.
#
■

Never-

/

theless,

i
our domestic

economic program in its entirety must be framed in

/
/

/
such a wa^P as to give the greatest possible scope to the production

jf
potential of the

econ om y*

*

j

/

When we review all of these facts in the Treasury, and evaluate

them in terms of the problem at hand, the situation seems to us to add

up abwife im .uféMuwfBr:

- IT -

price structure and in the economy generally.

These differences of opinion are to be expected.

The problems

involved are extremely complex; they are all inter-related; and they

all touch on major aspects of public economic policy affecting wide

areas of the economy.
If we should find that inflationary pressures were increasing, for

U
example, it would be logical to re-examine the possibilities of using

general credit control measures which have effects throughout the economy.
X
/
In view of the size and widespread distribution of the public debt, however,
X.
f
X
m
such measures must be used mostvcautiously,
and must be examined in the
\

X

#

light of the impact which they mightNlave on investment holdings or new

purchases of Federal securities.

JfreditRequirements on the part of defense
\

producers and others supplying Jissential needs niust also be kept in mind —
X
##
as well as the possibility.Jwhich can never be entirely^discounted, that

recessionary tendenciesJfcouId be engendered by too drastic a use of
overall restrictive Jleasures.
Selective credit controls — as a number of the answers to the
JR?

Subcommitteequestionnaires brought out^— would seem to meet some of

possible amount of securities outside of the commercial banking system,
issues must be provided which will meet apMtlfce investor needs.

Each

one of the general requirements of a sound debt management program,

problem.

current

situation, the Treasury — as it has done in connection with each important

financing operation in the pas1^ —

has been making extensive analyses of

the money and investment markets; it has been discussing the problems on

a continuing basis with representatives of the Federal Reserve System;

and it has been conducting a series of informal conferences and discussions

(in which the Federal Reserve participates) with representatives of

leading financial groups and others during recent weeks.

h
While I have found general agreement, as I noted earlier, on the need

for securing the necessary amounts from nonbank investors, there is a wide

divergence of views on how we ought to go about securing the funds; and

there are differences jof opinion, also, as to measures which should be

taken outside the area of debt management to maintain stability in the

size of the economy• Today, our Government debt accounts for almost

^-1- the debt obligations in the country, pubiic and private j

including — * in addition to

Federal securities —

bonds of State and

local governments, obligations of private corporations, mortgages,

bank loans, consumer instalment paper, etc.

Public debt obligations

represent an important part of the. assets of our sssm aBt financial instit­

utions, of numerous business corporations, and of millions of indivi­
duals and families throughout the Nation.

Against this background, the practical meaning of the broad

objectives of debt management which I outlined earlier becomes clear.

It is evident that we must use great care to maintain an atmosphere

which will be favorable not only to the purchase of new Government

securities, but to the retention of current holdings —

of course, the holdings of nonbank investors.

and particularly

To maintain investor

confidence, inflationary or deflationary tendencies must be countered,

if * ft., mb Timtiwri U im> and sound conditions must be maintained in the

market for United States Government securities.

To sell the greatest

o f our la rg e defense program and o f the d e f i c i t fin an cin g o p eration s
which w ill have to be undertaken in connection w ith i t .

F or some time

to come, defense production w ill draw h e a v ily on our p h y sica l re so u rce s;
and the e x is te n c e o f a s ig n if ic a n t d e f i c i t w ill add to the supply o f
funds a v a ila b le f o r spending o r sav in g .

In the second p la c e , we must take accou n t o f the f a c t th a t our
p resen t borrowing program w ill have to be geared to a s e t o f circum ­
stan ce s which a re unlike those experienced in connection with any
previous la r g e - s c a l e borrowing o p e ra tio n s.

In c o n tr a s t to the World

s e c to r o f in d u stry and tra d e i s engaged in s u b s ta n tia lly normal
o p e ra tio n s; including o p eration s — such a s c a p i t a l expenditure
programs — which draw on investm ent funds.

When we

to borrow la rg e sums o f money e a r ly in World War I I , moreover,
the Government's debt was

much sm aller than i t is

now, both in ab so lu te terms and in r e l a t i o n to the

These objectives are the guides which we use in arriving at policies
which are appropriate to current economic conditions.

The difficulties of this procedure in practice, however, and the
many balanced judgments which are involved, could not be better

illustrated than by our present situation.

As I have stated, we may

have to borrow as much as $10 billior^from the public Sefore the end

of this calendar year; and it is generally agreed that these funds

should be obtained to the greatest extent possible outside of the

commercial banking system.

From this point forward, however, we must

proceed' on the basis of a careful analysis of the many conflicting

factors in the immediate outlook.

There is no single, simple approach

which will solve the entire problem for us.

To begin with, we must be constantly watchful with respect to the

development of inflationary or deflationary tendencies.

There appears

/
to be a lull, at present, in inflationary pressuresj but it would be

imprudent to give less than full weight to the inflationary implications

12

-

however, we a re faced with a p r a c t i c a l fin an cin g problem which must be

r

worked out in the immediate fu tu re ; and I should lik e to d iscu ss with
you b r i e f l y how a problem o f t h i s s o r t , in p r a c t i c e , t i e s in with the
®ore g en eral co n sid e ra tio n s which govern T reasury p o lic y .

On th e b a sis o f the e stim a te s in the P re sid e n t’ s budget, as much as

from th e pu blic b efo re the end o f th e p re se n t calen d ar y e a r ,^ The budget
i s , o f co u rse , su b je ct to re v is io n as the y e a r p ro g re s se s, and p a r tic u ­
l a r l y a s we see how the expenditure program shapes up.
f i n a l fig u re s tu rn out to b e, however,

Whatever the
th e amounts

which we s h a ll have to borrow w ill be s u b s ta n tia l.

E a r l i e r in th i s statem en t, X noted th a t the g en eral g o als
o f our debt management programs a re (a ) coun tering any pronounced
in f la tio n a r y o r d e fla tio n a ry p re ssu re s , (b) providing s e c u r i t i e s
to meet th e cu rre n t needs o f v ario u s in v e sto r groups, and ( c ) main­
ta in in g a sound market f o r United S ta te s Government s e c u r i t i e s .

-

//

10

with him, in the in t e r e s t s o f coordination*

T h is, i t seems to me,

rep re se n ts the essence o f independence — th a t th e P re sid e n t and the
Board should have both the r ig h t and the duty to d iscu ss the problems
w ith each o th e r a c ro s s the t a b le , on the b a sis o f a fre e interchange
o f views

■committee 9 Ï the

th is
>TPMld puhl i n l y , mnnmr»»^

The J o in t Committee on the Economic Report i s in a very ^6od p o sitio n
to help ob tain the kind o f coop eration and cohesiveness o f p o licy which
we need to emphasize co n sta n tly in Government*
A

This i s because the
'

Committee has the re s p o n s ib ility f o r looking a t the nroblems involved

from every p o in t o f view

You a re no

__

1 th revenues

f o r example, o r with exp en d itu res, o r with ap p ro p ria tio n sj r a th e r i t is

your unique function! among the committees o f Congress to ap p raise the
whole complex o f measures and programs having a s ig n if ic a n t influence on

the economic w ell-b ein g o f the co u n try.
Because o f our a p p re cia tio n o f th i s f a c t , we have given f u l l wagl i e s

A
to the tbscnPSSSST questions requestin g gen eral view s.

R ight now,

- 9 with advisory authority in the area of monetary and fiscal policy.

Prior to doing so, however, I should like to obtain the views of the

Subcommittee as to the advisability —

step.

the pros and cons —

of such a

I am looking forward with great interest, therefore, to the

discussion of this matter in the hearings, and to your own deliberations

with regard to it.

The question of a national council which would act as an advisory

group with respect to monetary and fiscal policy brings up another matter

which I hope the Subcommittee will find time to consider from all angles.

In question 9 of the questionnaire sent to me, a discussion of the

'relationship between the President and the Federal. Reserve System was

called for.

In answering this question, I indicated my opinion that it

was desirable for the Federal Reserve System to pewawn independent efr—

A

further, however, ray strong feeling that it is natural, proper, and

desirable for the President to seek to settle disputes by having all

of the interested parties sit Ground a table' to discuss their differences

-

-

8

-

O rganizationof the E xecu tive Branch o^Jh^-W Ternm ent (th e Hoover
e******®“
Commission) ip^ifts,-^ e p o rt on the T reasury Department*
...
u
fl/f)

¿ U rfcfedr
7 1 jjp^ke creation#£>f a s n a il c o n s u lta tiv e and d iscu ssio n group w ithin

the Government (which might c o n s is t o f the S e cre ta ry o f the T reasu ry,

rf-tLi.
the Chairman o f the Board o f G overnors, the D ire c to r o f tbfe Budget, the

A
Chairman o f the Council o f Economic A dvisers to the P re sid e n t, and the

Gfç
Chairman o f the S e c u ritie s and Exchange Commission) wÔ iftfcseï il ;ffl t
J

ijox purposes

fi'fi-

*

¿^44* cc,

F i r s t , ^by re g u la r and p e rio d ic meeting alad d iscu ssio n

among th e heads o f the agen cies having to do with f i s c a l and monetary
^

v

^

*

%
p o l i c i e s , d iffe re n ce s o f opinion would become le s s li k e l y to develop*

9

ft

A <1 f"Bfl,)ii ufiiiim group o f t h i s n a tu re piM M isw iiliR i would do much to achieve
acco rd before d isco rd a r i s e s .

Second, the means would be provided f o r

inform al d iscu ssio n s with the P re sid e n t on broad questions o f monetary
and f i s c a l p o lic y .

The ad v iso ry group could re p o rt to the P resid en t —

p re fe ra b ly on an inform al and c o n fid e n tia l b a sis — as o fte n a s d e sire d .
I t i s my p re se n t in te n tio n to recommend to the P re sid e n t th a t lie consider

the c r e a tio n o f a n a tio n a l co u n cil along the lin e s which I have ju s t described!

- 7 -

Each one of these specific objectives is important in itself;

and, generally, a number of them must be considered together in

framing a practical program which will further our basic goals of

maintaining the confidence of the public in the debt obligations of

the Government and promoting the economic well-being of the Nation.

The present hearings, I feel, will provide an excellent opportunity

for

^publ^^understanding of the responsibilities and policy

objectives which I have just summarized.
greater length —

They are discussed at

and in relation to many different situations —

in

answers to the questionnaire.
It is my further hope that the Subcommittee will give careful
consideration to the possibilities which I have brought forward in mtps

answer to Question 10, relating to the creation of a top-level advisory

group to the President on broad questions of monetary and fiscal policy,
Llel to the National

the field of foreign financial matters;

uggested by the Commission on

- 6 -

5.

To Use Debt Policy Cooperatively with Monetary-Credit
Policy to Contribute Toward Healthy Economic Growth
and Reasonable Stability in the Value of the Dollar

The importance of this objective, I feel, is self-evident.

It

/

,
is a primary goal of both Treasury and/Federal Reserve policy, and
%»......—*

an important part of public economic policy in general, as expressed

in the Employment

Act of 19^6.

In addition to these five economic objectives of Treasury policy,

there are other objectives which we keep constantly in mind.

6.

To Conduct the Day,to-Day Financial Operations of
the Treasury so as to Avoid Disruptive Effects
in the Money Markets and to Complement Other
Economic Programs;

7•

To Hold Down the Interest Cost of the Public Debt
to the Extent That This Is Consistent with the
Foregoing Objectives;

8.

To Assist in Shaping and Coordinating the Foreign
Financial Policy of the United States; and

9-

To Manage the Gold and Silver Reserves of the
Country in a Manner Consistent with Our Other
Domestic and Foreign Policy Objective.

These are

- 5 -

I consider this objective a continuing obligation, not only of the

Treasury Department, but of every Department and agency in the Government.

Both vithin the Department^

and in association with other

I
branches of the Government, the /Treasury carries on continuing programs

aimed at providing maximum service on the part of the Government at the

lowest possible cost to the taxpayers.

4.

To Direct our Debt Management Programs toward (a) Countering
Any Pronounced Inflationary or Deflationary Pressures,
(b) Providing Securities, to Meet the Current Needs of
Various Investor Groups,"and (c) Maintaining a Sound Market
for United States/Government Securities

Success in achieving these specific objectives of debt management

is essential to the maintenance of confidence in the credit of the

United States Government.

Many of the questions sent to us by the

Subcommittee related to problems and actions in the area of debt management.

The Treasury has attempted to give the fullest possible replies to

iI
these questions; and I am hopeful/that the hearings will provide a
forum in which these fundamental matters of national financial policy

can be thoroughly explored

- k -

1.

To Maintain Confidence in the Credit of the United
States Government

This is the basic objective of all Treasury policies; and, at

the present time, it is the cornerstone^^ the financial soundness

of this country, and a vital factor in the defense effort of the entire

free world.

In thé broadest sense, safeguarding the credit of the

Government depends upon our ability as a Nation to keep our free

enterprise economy healthy and growing, and to use our governmental

instruments wisely in promoting this end.

2.

To Promo-te^evenue and Expenditure Programs which
Operatepujbhin the Framework of a Federal Budget
Policy Appropriate to Economic Conditions

Through action of Congress and by executive decisions, the budget
is subject to constant change; and it is of the utmost importance that

revenue and expenditure programs be kept appropriate to changing economic

circumstances.

The Treasury and the Bureau of the Budget work closely

with the President and with the

3.

Eftss to further this end

To Give Continuing Attention to Greater Efficiency and
Lower Costs of Governmental Operations

- 3 vith respect to the area of investigation which

present hearings.

LI be covered in the

In answering the questionnaire submitted earlier

by the Subcommittee, therefore, I have gone into considerable detail

as to the reasons why the Treasury took certain actions at certain

times; what we hoped to gain by them and what —

viewed retrospectively --

It will be of particular value, I feel, for the public to become

1
better acquainted with the nature of the responsibilities with which
the various agencies have been charged by the Congress —

and the

relation of practical policies to the fulfillment of these responsi­

bilities,

This represents, in my view, a most important part of the

which the Subcommittee is undertaking.

I should like to

take a few minutes, therefore, to comment briefly on the nine general

i,S*
(J
economic objectives /which the Treasury Department seeks to further
through the use of the powers which have been given to it by the

Congress,

These objectives, which are described more fully in the

answer to Question 2, are as follows:

2

of view, but many points of view -

I am almost tempted to say, all

points of view «*- seem to have been elicited by the Subcommittee

in the written answers to the various questionnaires which were sent
out.

4

A policy record, in the most/fundamental sense, is not only a

record of decisions made and actions taken -- it is a record of
appraisals, of conclusions, and of judgments,

i-iarpe niiinb*n» g>#

|£hose who replied to the Subcommittee’s questionnaires, it seems to
me, have attempted to be fully responsive in this fundamental sense.

In our own case, we found in replying to the questionnaire

that it was often antmamely difficult to reconstruct past events

moving economy, circumstances are always changing, and our views as

to appropriate actions and policies must change with them.
would be little purpose

There

in trying to reconstruct the background of

Important actions in the past unless the details gave us added

ability to plan our future course wisely.

This is true, I believe,

0

- t - f r i

®*§bèìesdì* Statement to~b» ùivuu by Secretary Snyder before the
Subcommittee on General Credit Control and Debt Management
of the Joint Committee on the Economic Report

Mdrt-h !t>f t f S

>■

The hearings which are beginning this morning represent the

*

culmination of a number of months of intensive *effort,eass&tae* replies to

the questions raised by your Subcommittee.

Anyone who has worked on this

complex project cannot help but be impressed with the scope and searching

nature of the questions which were asked.

In our already heavy work

schedules, it was not easy to find the time to set/down the pros and

cons of the many issues presented for generalized discussion in the
questionnaire.

In view of the importance of the

however, we felt that time must be found; and I am very glad that we

were able to give full and considered replies to all of the questions
submitted to us.

I believe that everyone who reads the written replies received

by the Subcommittee will feel, as/1 do, that the body of material

which you have assembled will be of great value in the field of debt

management and monetary policy for many years to come.

Not one point

485
TREASURY DEPARTMENT
WASHINGTON

Statement by Secretary Snyder before the
Subcommittee on General Credit Control and Debt Management
of the Joint Committee on the Economic Report
March 10, 195>2

The hearings which are beginning this morning represent the culmination
of a number of months of intensive study and preparation of replies to
the questions raised by your Subcommittee» Anyone who has worked on this
complex project cannot help but be impressed with the scope and searching
nature of the questions which were asked. In our already heavy work
schedules, it was not easy to find the time to set down the pros and cons
of the many issues presented for generalized discussion in the questionnaire.
In view of the importance of the study, however, we felt that time must
be found5 and I am very glad that we were able to give full and considered
replies to all of the questions submitted to us.
I believe that everyone who reads the written replies received by the
Subcommittee will feel, as I do, that the body of material which you have
assembled will be of great value in the field of debt management and
monetary policy for many years to come. Not one point of view, but many
points of view — I am almost tempted to say, all points of view — seem
to have been elicited by the Subcommittee in the written answers to the
various questionnaires which were sent out. A policy record, in the most
fundamental sense, is not only a record of decisions made and actions
taken — it is a record of appraisals, of conclusions, and of judgments.
Those who replied to the Subcommittee's questionnaires, it seems to me,
have attempted to be fully responsive in this fundamental sense.
In our own case, we found in replying to the questionnaire that
it was often difficult to reconstruct past events in the context of the
times when they took place. In our swiftly moving economy, circumstances
are always changing, and our views as to appropriate actions and policies
must change with them. There would be little purpose in trying to reconstruct
the background of important actions in the past unless the details gave
us added ability to plan our future course wisely. This is true, I
believe, with respect to the subjects which will be covered in the present
hearings. In answering the questionnaire submitted earlier by the
Subcommittee, therefore, I have gone into considerable detail as to the
reasons why the Treasury took certain actions at certain timesj what we
hoped to accomplish by them and what — viewed retrospectively
we did
accomplish.
It will be of particular value, I feel, for the public to become
better acquainted with the nature of the responsibilities with which the

S-2988

486
- 2 various agencies have been charged by the Congress — and the relation
of practical policies to the fulfillment of these responsibilities. This
represents, in my view, a most important part of the study which the
Subcommittee is undertaking. I should like to take a few minutes, therefore,
to comment briefly on the nine general economic objectives which the
Treasury Department seeks to further through the use of the powers which
have been given to it by the Congress. These objectives, which are
described more fully in the answer to Question 2, are as follows:
1.

To Maintain Confidence in the Credit of the United States
Government

This is the basic objective of all Treasury policies; and, at the
present time, it is the cornerstone of the financial soundness of this
country, and a vital factor in the defense effort of the entire free world.
In the broadest sense, safeguarding the credit of the Government depends
upon our ability as a Nation to keep our free enterprise economy healthy
and growing, and to use our governmental instruments wisely in promoting
this end.
2.

To Promote Revenue and Expenditure Programs which Operate
Within the Framework of a Federal Budget Policy Appropriate
to Economic Conditions

Through action of Congress and by executive decisions, the budget is
subject to constant change; and it is of the utmost importance that
revenue and expenditure programs be kept appropriate to changing economic
circumstances. The Treasury and the Bureau of the Budget work closely
with the President and with the Congress to further this end.
3»

To Give Continuing Attention to Greater Efficiency and
Lower Costs of Governmental Operations

I consider this objective a continuing obligation, not only of the
Treasury Department, but of every Department and agency in the Government.
Both within the Department and in association with other branches of the
Government, the Treasury carries on continuing programs aimed at providing
maximum service on the part of the Government at the lowest possible cost
to the taxpayers.
h.

To Direct our Debt Management Programs toward (a) Countering
Any Pronounced Inflationary or Deflationary Pressures, (b)
Providing Securities to Meet the Current Needs of Various
Investor Groups, and (c) Maintaining a Sound Market for
United States Government Securities

Success in achieving these
essential to the maintenance of
States Government. Many of the
related to problems and actions

specific objectives of debt management is
confidence in the credit of the United
questions sent to us by the Subcommittee
in the area of debt management. The Treasury

437
- 3 -

has attempted to give the fullest possible replies to these questions;
and I am hopeful that the hearings will provide a forum in which these
fundamental matters of national financial policy can be thoroughly explored*
i
5>. To Use Debt Policy Cooperatively with Monetary-Credit Policy
to Contribute Toward Heal.thy Economic Growth and Reasonable
Stability in the Value of the Dollar
The importance of this objective, I feel, is self-evident. It is a
primary goal of both Treasury and Federal Reserve policy, and an important
part of public economic policy in general, as expressed in the Employment
Act of 19U6.
In addition to these five economic objectives of Treasury policy,
there are other objectives which we keep constantly in mind. These are:
6.

To Conduct the Day-to-Day Financial Operations of the Treasury
so as to Avoid Disruptive Effects in the Money Markets and
to Complement Other Economic Programs-

7.

To Hold Down the Interest Cost of the Public Debt to the
Extent That This Is Consistent with the Foregoing Objectives

8*

To Assist in Shaping and Coordinating the Foreign Financial
Policy of the United States

9.

To Manage the Gold and Silver Reserves of the Country in a
Manner Consistent with Our Other Domestic and Foreign
Policy Objectives

Each one of these specific objectives is important
generally, a number of them must be considered together
practical program which will further our basic goals of
confidence of the public in the debt obligations of the
promoting the economic well-being of th e nation.

in itself; and,
in framing a
maintaining the
Government and

The present hearings, I feel, will provide an excellent opportunity
for furthering public understanding of the responsibilities and policy
objectives which I have just summarized. They are discussed at greater
length — and in relation to many different situations — in the answers
to the questionnaire.
It is my further hope that the Subcommittee will give careful
consideration to the possibilities which I have brought forward in the
answer to Question 10, relating to the creation of a top-level advisory
group to the President on broad questions of monetary and fiscal policy.
In that question, it was suggested that a small consultative and discussion
group be"created within the Government. This group might consist of
the Secretary of the Treasury, the Chairman of the Board of Governors of

488
-

^

-

the Federal Reserve System, the Director of the Budget, the Chairman of
the Council of Economic Advisers to the President, and the Chairman of the
Securities and Exchange Commission. From time to time, the heads of other
agencies (both permanent and special agencies) might be added to the group,
as various problems arise. This group would serve two major purposes.
First, by regular and periodic meeting and discussion among the heads of
the agencies having to do with fiscal and monetary policies, differences
of opinion would become less likely to develop. A group of this nature
would do much to achieve accord before discord arises. Second, the means
would be provided for informal, discussions with the President on broad
questions of monetary and fiscal policy. The advisory group could report
to the President — preferably on an informal and confidential basis -as often as desired.
It is my present intention to recommend to the President that he
consider the creation of a national council along the lines which I
have just described, with advisory authority in the area of monetary and
fiscal policy. Prior to doing so, however, I should like to obtain the
views of the Subcommittee as to the advisability — the pros and cons —
of such a step. I am looking forward with great interest, therefore, to
the discussion of this matter in the hearings, and to your own deliberations
with regard to it.
The question of a national council which would act as an advisory group
with respect to monetary and fiscal policy brings up another matter which
I hope the Subcommittee will find time to consider from all angles. In
question 9 of the questionnaire sent to me, a discussion of the relation­
ship between the President and the Federal Reserve System was called for.
In answering this question, I indicated my opinion that it was desirable
for the Federal Reserve System to retain its independent status. I
expressed further, however, my strong feeling that it is natural, proper,
and desirable for the President to seek to settle disputes by having
all of the interested parties sit around a table to discuss their differences,
in the interests of coordination. This, it seems to me, represents the
essence of independence — that the President and the Board should have
both the right and the duty to discuss the problems with each other, on
the basis of a free interchange of views.
The Joint Committee on the Economic Report is in a very good position
to help obtain the kind of cooperation and cohesiveness of policy which
■we need to emphasize constantly in all branches of Government. This is
because the Committee has the responsibility for looking at the economic
problems involved from every point of view. You are not concerned solely
with revenues, for example, or with expenditures, or with appropriations;
rather it is your unique function among the committees of Congress to
appraise the whole complex of measures and programs having a significant
influence on the economic well-being of the country.
Because of our appreciation of this fact, we have given special
attention to the questions requesting general views. Right now, however,

489
- 5 -

we are faced with a practical financing problem which must be worked out
in the immediate future; and I should like to discuss with you briefly how
a problem of this sort, in practice, ties in with the more general
considerations which govern Treasury policy*
On the basis of the estimates in the President’s budget, as much as
§10 billion of the defense program .may have to be financed by additional
borrowing from the public before the end of the present calendar year.
The budget is, of course, subject to revision as the year progresses, and
particularly as we see how the expenditure program shapes up. Whatever
the final figures turn out to be, however, the amounts which we shall have
to borrow will be substantial.
Earlier in this statement, I noted that the general goals of our debt
.management programs are (a) countering any pronounced inflationary or
deflationary pressures, (b) providing securities to meet the current needs
of various investor groups, and (c) maintaining a sound market for United
States Government securities. These objectives are the guides which we
use in arriving at policies which are appropriate to current economic
conditions.
The difficulties of this procedure in practice, however, and the
many balanced judgments which are involved, could not be better illustrated
than by our present situation. As 1 have stated, we may have to borrow
as much as §10 billion in new money from the public before the end of this
calendar year; and it is generally agreed that these funds should be
obtained to the greatest extent possible outside of the commercial banking
system. From this point forward, however, we must proceed on the basis
of a careful analysis of the many conflicting factors in the immediate
outlook. There is no single, simple approach which will solve the entire
problem for us.
To begin with, we must be constantly watchful with respect to the
development of inflationary or deflationary tendencies. There appears
to be a lull, at present, in inflationary pressures; but it would be
imprudent to give less than full weight to the inflationary implications
of our large defense program and of the deficit financing operations which will
have to be undertaken in connection with it. For some time to come,
defense production will draw heavily on our physical resources; and the
existence of a significant deficit will add to the supply of funds available
for spending or saving.
In the second place, we must take account of the fact that our present
borrowing program will have to be geared to a set of circumstances which
are unlike those experienced in connection with any previous large-scale
borrowing operations. In contrast to the World War H situation, for
example, a large sector of industry and trade is engaged in substantially
normal operations; including operations -- such as capital expenditure
programs — which draw on investment funds. When we found it necessary
to borrow large sums of money early in World War II, moreover, the

490
- o -

Government's debt was much smaller than it is now, both in absolute
terms and in relation to the size of the economy. Today, our Government
debt accounts for almost half of all the debt obligations in the country,
public and private; including — in addition to Federal securities -bonds of State and local governments, obligations of private corporations,
mortgages, bank loans, consumer instalment paper, etc. Public debt
obligations represent an important part of the assets of our financial
institutions, of numerous business corporations, and of millions of
individuals and families throughout the Nation.
Against this background, the practical meaning of the broad objectives
of debt management which I outlined earlier becomes clear. It is evident
that we must use great care to maintain an atmosphere which will be
favorable not only to the purchase of new Government securities, but to
the retention of current holdings — and particularly, of course, the
holdings of nonbank investors. To maintain investor confidence, inflation­
ary or deflationary tendencies must be countered, and sound conditions must
be maintained in the market for United States Government securities. To
sell the greatest possible amount of securities outside of the commercial
banking system, issues must be provided which will meet investor needs.
Each one of the general requirements of a sound debt management program,
therefore, is seen to have a direct application to our present problem.
In order to formulate a program suited to the current situation, the
Treasury — as it has done in connection with each important financing
operation in the past — has been making extensive analyses of the money
and investment markets; it has been discussing the problems on a continuing
basis with representatives of the Federal Reserve System; and it has been
conducting a series of informal conferences and discussions (in which the
Federal Reserve participates) with representatives of leading investor and
financial groups and others during recent weeks.
While I have found general agreement, as I noted earlier, on the need
for securing the necessary amounts from nonbank investors, there is a wide
divergence of views on how we ought to go about securing the funds; and
there are differences of opinion, also, as to measures which should be
taken outside the area of debt management to maintain stability in the
price structure and in the economy generally.
These differences of opinion are to be expected. The problems
involved are extremely complex; they are all inter-related; and they all
touch on major aspects of public economic policy affecting wide areas of
the economy.
When we review all of these facts in the Treasury, and evaluate them
in terms of the problem at hand, the situation seems to us to add up to
these conclusions:
It is essential for the well-being of the country that the Treasury
and the Federal Reserve continue to work in the closest cooperation. Both

4 91
- 7 -

agencies are in wholehearted agreement on this matter. There is no
substitute for working together on the important problems which we shall
have to solve jointly if the fundamental strength and productive power of
the American economy are to be maintained. I feel that an advisory council
of the sort which I have discussed with the committee today would be of
help in broadening the scope of cooperation. The spirit of cooperative
effort, however, is the essence of the matter.
The prospect of substantial deficit financing in the period
immediately ahead underscores the importance of the broad economic
objectives of the Treasury, and particularly of debt management policy.
The Treasury has succeeded during the postwar period in reducing the
proportion of the public debt held by the commercial banking system from
k2 percent at the peak of World War II financing to 33 percent at the
present time. It has succeeded in maintaining savings bond ownership
not only at the wartime peak, but at a figure which is now close to $58
billion -- ¡¡¿>9 billion higher than the amount held at the close of World
War II financing. Our deficit financing program must conserve these
gains — and it must add to them.
For these reasons, the Treasury places great emphasis on the need
for prudence with respect to policies which affect the Federal debt. As
the Subcommittee^ questionnaires brought out so clearly, a governmental
agency does not operate in the field of abstract theory; full account must
be given at all times to the practical implications of the policies and
programs undertaken. The opportunity which the present hearings will
provide for a discussion of measures appropriate to our present situation
will, I am convinced, make a most important contribution to public
understanding of the problems now confronting us.

oQo

/
i

Ä

/

KMSPAHHS,

Tuesday, Haroh

XX, 19$2*

se cre ta ry o f

ihm fre a iin ry mmmvmmà læ

t evening

ihm* tim tend**#

to r

$I,iQö*Qöö,öQ0* ©r tiaw reabout», o f f f c # f T re a su ry b ill» t© be d ated M arch 13 ^

to

mte x m j v m 1 2 , X$#2, tf* ic h w ere c ffe re d on March 6 , eere opened e t th a fe d e re l Re­

serve Bank» on March 10*
The d e t a il» o f th i» i» e n e « re «» f o llo w ii
fötal* a p p lie d fo r . ,- W É - iiï.f lf lû
T o ta l accepted
-

Average pVi&*
f i #

m ffShfé Equivalent rate of diaeount approx* X*lBk$ per

accepted competitive bids*

(Excepting one tender of $600,000)

High

« 99-610 Sgulwlcnt rat* of diwwuBfc •«*£“ * i*g*gj P®r

to*

* 99.515

*

«

«

•

«

W

¡ p percent of tbe aaount bid for at the lo* prie* «a* accepted)

fe d e ra l Reserve
D is t r ic t _______

Total

Total

Beaton
Be* Torte
P h ila d e lp h ia
C leveland

$

I

Hslwwnd
Atlanta

Chicago
St. bmis

j& nneapolio
Kansas d t y

30,223,000
1,519,026,000
50.065.000
61*,502,000
26.301.000
1*6 ,221,000
220,535,000
1*0,293,000
23.320.000

1 1 .5 7 1 .000
62.960.000
176,320,000

Balias

San F ra n cisco
TOTAi

12,308,312,000

16,616,000
671»,1(26,000
29.765.000

53. 211.000
25,026,000

1*2, 666,000
i5o,50$,ooo
19.305.000
23.210.000
36.596.000
27.960.000

11,200,138,000

TREASU RY DEPARTM ENT
Wa s h i n g t o n ,

Information Service

RELEASE MORNING NEWSPAPERS,
Tuesday, March 11. 1952.___

d .c

.

S -2989

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 13 and to mature June 12, 1952, which were offered
on March 6 , were opened at the Federal Reserve Banks on March 10.
The details of this issue are as follows:
Total applied for - $2,308,342,000
Total accepted
- 1 ,200 ,138 ,000, (includes $183,046,000
entered on a non-competitive
basis and accepted in full at
the average price shown below)
Average price
- 99*549/ Equivalent rate of discount approx.
1.784$ per annum
Range of accepted competitive bids:

High

(Excepting one tender of
, $600 ,000 )

- 99.810 Equivalent rate
1.543$
- 99.545 Equivalent rate
1 .800$

Low

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

(45 percent of the amount bid for at the low price was accepted)
Federal Reserve
D i s t r i c t _____

Boston

Total
Applied for
$

New York
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

30,223,000

1 ,519 ,026,000
50 ,065,000
64.502.000

.

Total
____A ccepted
$

16 ,616,000
674.426.000
29 ,765,000
53 , 211,000

2 6 301.000

25 ,026,000

46.221.000
2 2 0 , 5 3 5 ,0 0 0
40.298.000
23 .320.000
48.571.000
62 .960.000
___ 176,32 0,000

42.666.000
150.505.000
19 .305.000
23 ,210,000
36.596.000
27 .960.000
100 .852.000

$2,308,342,000

$1,.200,138 ,000

0O0

. _

_

_

T R E A S U R Y DEPARTM ENT
F is c a l S e r v ic e

STATUTORY DEBT LIMITATION
AS OF

W a s h in g t o n , J h

x A

j É

£

| S

f

I
Section 21 of Second Lib e rty Bond Act, as amended, provides that the face amount of 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 p rin cip a l and in te re st by the
United S tates (except such guaranteed o b lig a tio n s as may be held by the Secretary of the_Ix;easury), "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. <&Zt4>, outstanding at
any one time. For purposes of t h is sectio n the current redemption value of any o b lig atio n issued on a discount
b a sis which is redeemable p r io r to m aturity at the option of the holder sh a ll be considered as i t s face amount."
The following ta b le shows the face amount of o b lig a tio n s outstanding and the face»amount which can s t i l l
be issued under t h is lim ita tio n :
Total face amount that may be outstanding at any one time

$ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0

Outstanding
O bligations issued under Second Lib erty Bond Act, as amended
In te re st-b e a ri ng:
Treasury b i l l s ...........................................
C e r t if ic a t e s of indebtedness........... ,
Treasury notes ..........................................
Bonds T reasu ry ....................................................
Savings (current redemp. value) ...
Depositary..............................................
Armed Forces Leave .............................
Investment s e r i e s ................................
Special Funds C e r t if ic a t e s of indebtedness
Treasury n o tes.............................

$ 18,103,619,000
29,079,235,000..
26,»77,311,25Cft 73,660,165,250
76,9*1,780,950
57,682,*53,278
363,3*2,500
12,985,793,000 1*7,973.369,728

22,057,*15,ooo
1*,302,9*9,000

Total in terest-b ea rin g
Matured, i n te re st-ce a se d ....................
Bearing no in te re s t:
War savings stamps ..................................
Excess p r o fit s tax refund bonds......

36,360,36*,000
257,993,898,978
*11,395,225

98,291,**?
1,793,507

Special notes of the United S ta te s:
In te rn a t'l Monetary Fund s e r ie s ...

1.253.000.000

T o ta l..

1.303.08fr,95*
259,708,379,157

Guaranteed o b lig a tio n s (not held by T reasu ry):
In tere st-b e arin g :
Debentures: F . H . a.
32,962,187
Demand o b lig a tio n s: C .C .C .
_____________ 2,2
Matured, in terest-ceased ......................................................................... _

35,218,533
1 ,697,025
36,915,558

Grand to tal o u tstan d in g ......................................................................................
Balance face amount of 9b lig a tio n s issu ab le under above autho rity
Reconcilement with statement of the Public Debt

2 5 9 , 7 * 5 . 2 9 * . 7I 5

1« .956. 705.286

...2®*.;..M S®
(b a te !*

(D aily Statement of the United States Treasury, M a r ,..... 3 *

1952)

(Date)

Outstanding Total gross public debt ........................................... ..............................................................................
Guaranteed o b lig a tio n s not owned by the Treasury
..........................................

260,361,955,8*1
36.915.558

Total gross p u b lic debt and guaranteed o b lig a tio n s ......................
Deduct - other outstanding public debt o b lig a tio n s not subject to debt li m it a t io n ....

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

STATUTORY DEBT LIMITATION
AS OF FEBRUARY 29, 1952

March 12, 1952

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 andvinterest by the United States (except such
guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 191+6$ U.S.C., title 31,
sec. 757b), outstanding at any one time* For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount,"
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation;
Total face amount that may be outstanding at any one time
Outstanding

$275,000,000,000

Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills.••••••••••«.••«•$ 18,103,619,000
Certificates of indebtedness,,. 29,079,235,000
Treasury notes***• • • • • • • • 26,1+77,311,250 $73,660,165,250
Bonds Treasury..........
76,91+1,780,950
Savings (current redemp,value) 57,682,1+53,278
Depositary. ••••••«,•••••••«•*
363,31+2,500
Armed Forces Leave••••••••«••
Investment series,••••••••••• 12,985,793,000 11+7,973,369,728
Special Funds Certificates of indebtedness. 22,057,1+15,000
Treasury n o t e s . . ll+,302,91+9,000 36,360,361+,000
Total interest-bearing....... ..•••.•••«•••* 257,993,898,978
Matured, interest-ceased,••••••••*•••••••••••••..•«
1+11,395,225
Bearing no interest:
War savings stamps••••..... ,«...
1+8,291,1+1+7
Excess profits tax refund bonds..
1,793,507
Special notes of the United States:
Internal 1 Monetary Fund Series
1,253,000,000
1,303,081+,951+
Total.
.......................... .
259,708,379,157
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures; F.H*A*
32,962,187
Demand obligations: C.C.C. •••••
2,256,31+6
Matured, interest-ceased.•••••••••*

35,218,533
1,697,025

Grand total outstanding.•
*•»••«•«»••*..«•*••*..»..«•*» 259,7l+5,29l+,7l5
Balance face amount of obligations issuable under above authority.*.• Ï5,251+,705,255
Reconcilement with Statement of the Public'Debt » February ¿9,’ 1952
(Daily Statement of the United States Treasury, March 3, 1952)

Outstanding Total gross public debt.• . • • • • • • • • • • • • • • • • . . • • • • 260,361,955,81+1
Guaranteed obligations not owned by the T
r
e
a
s
u
r
y
36,915,558
Total gross public debt and guaranteed o b l i g a t i o n s . . 26Ô,398,871,399
Deduct - other outstanding public debt obligations not subject to
debt l
i
m
i
t
a
t
i
o
n
.
653,576,681+

259,71+5, 291+, 7 Ï5
S*2990

- 3 ■ T fSTTA

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

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

as amended by Section 115 of the Revenue Act of 19U1, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, as amended, and this notice, prescribe
the terns of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

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

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

or less without stated price fram 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

^n-po'h 2Q. 1952

> an cash or other immediately avail

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

March 20, 1952*
TfT

Cash adjustments will bej

made for differences between the par value of maturing bills accepted in exchangd
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or 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

W - 0

9 ft

FOR RELEASE, MORNING NEWSPAPERS,
Thursday. March 13. 1952______ •

iodfc
The Secretary of the Treasury, by this public notice, invites tenders for
ft n onn nnn rmn . or thereabouts, of

91
-day Treasury bills, for cash and
1
in the amount of $1,200,816,000
in exchange for Treasury bills maturing
March 20. 1962____ >A° de issued on

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

The bills of this series will be dated

June 19. 1952

March 20. 195.2----- > and

> when the face amount will be payable without

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

11,000, $£,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m., Eastern Standard time, Monday, March 17. 1952__*
Tenders will not be received at the Treasury Department, Washington.

Each tender

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

Fractions may not be used.

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

98

TREASU RY DEPARTM ENT
Information Service

REIEA.SE MORNING NEWSPAPERS,
Thursd a y , March 13, 1,952....

WASHINGTON, D .C .

S- 299I

The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91-bay Treasury bil
for cash and. in exchange for Treasury bills maturing March 20, 195
in the amount of $ 1 ,200 ,816 ,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 -March 20, 1952
and will mature June 19, 1952, .when the face amount.will be payable
without intere
denominations
$1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Standard time,
Monday, March 17, 1952.
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 tender-s the price
offered must be expressed on the basis of .100 , with not more than
throe 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
spe-cial 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 f a c e ■
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated
hank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted b i d s . Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price

2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on March 20, 1952, in cash
or other immediately available funds or in a like face, amount of
Treasury bills maturing March 20, 1952.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury:bills, whether interest or
gain from the,sale or other disposition -of the bills, shall not
have any exemption,, as such,; and loss from the sale' or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal' or State,
but shall be exempt from all taxation now or hereafter imposed on*
the principal or. interest thereof b y '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 U n i t e d .States shall be considered
to be interest.
Under Sections 4 2 end 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 bo 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

March 5, 1952

to

m. M u m ? *

The follow in g tra n s a c tio n s were made in d i r e c t and guaranteed
s e c u r itie s o f th e Government f o r T reasu ry investm ent and o th e r
accou n ts during th e month o f F eb ru ary , 1952*
Purchases

.................................. • • •

$ 9 ,9 1 1 ,0 0 0

S a l e s ........................ .... .................................... . . .

3 ,2 2 ljt 500

Net purchases » • • * * • • * • • • « • •

$6,686,500

C h ie f, B iv islo n o f Investm ents

D. of X. So. 35
Wisecarver 3/5/52

x

T R E A S U R Y DEPARTMENT
Information Ser

RELEASE MORN I N G NEWSPAPERS,

H a t'C 4 /jy Aft'.

During the m o n t h of eFanu&rÿ^ 1952,
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net

A ¿., dA'éi/Aûô
purchases of

'

-'r-r^rs
lifrjfrOO-, Secretary

-t i r

Snyder announced today.

0O0

TREA SU RY DEPARTM ENT
Information Service

Wa s h in g t o n , d . c .

RELEASE MORNING NEWSPAPERS,
Saturday, March 15, 19 5 2 .

S -2992

During the month of February, 1952
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $6 ,686 ,500 , Secretary
Snyder announced today.

0 O0

A
******

IMLEDIATE RELEASE
„March
1952
H

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within tariff-rate quota limitations
from the beginning of the quota periods to March 1, 1952. inclusive, as
follows:

Commodity

Period and Quantity

Unit
of
Quantity

Imports as of
Ito. 1, 1952

Whole milk, fresh or
sour .,«,....»»»•**»*»*••
\ ^ pT
T T J
■ • Calendar year

3,000,000 Gallon

8,11(8

Cream •*•••..... .

• Calendar year

1,500,000 Gallon

161*

Butter •••••••.........

.

Nov. 1, 1951lar. 31, 1952

50,000,000 Pound

62,075

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

31*1*72,108 Pound

White or Irish Potatoes:
certified seed ••••••••• 12 months from
other ••••••...... .
. Sept. 15, 1951

150,000,000 Pound
21*9*600,000 Pound

52,736,1*10
12,057,1*30

5,000,000 Pound

2,180,092

Walnuts

••••••••••••••«•• Calendar

year

Petroleum and petroleum ■
products •••••••••.•••» • Calendar year

i

Venezuela
2,956,814.1,91*9 Gallon
Netherlands
930,857,651 Gallon
Other countries 1,090,11*8,800 Gallon
Almonds :
shelled •••••••...... . • 12 months from
prepared, etc• ........ ►Oct. 1, 1951

a)
Quota filled

■

959,338,916
615,900,103
536,872,11*1*

1,1*37,893
*1*,500,000 Pound
318,280

*0f the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste).
(1)

Imports for consumption at the quota rate are limited to 7,868,027 pounds
during the first three months of the calendar year.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, March 13» 1952

S-2993

The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within tariff-rate quota limitations
from the beginning of the quota periods to March 1,. 1952, inclusive, as
follows:

Period and Quantity

Commodity

Unit
of
Quantity

Imports as of
Mar* Ifi I952

Whole milk, fresh or
•

Calendar year

3,000,000 Gallon

8,11)8

Cream

... Calendar year

1,500,000 Gallon

X61t

Butter ..

... Nov. X, 1951Mar. 3X, 1952

Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
t
cusk, and rosefish •••*• Calendar year
White or Irish Potatoes:
certified seed .«••••««. 12 months from
other
Sept. 15, 1951
Walnuts

•••»«•••••..«* Calendar year

50,000,000 Pound

31,ltf2,108 Pound

62,075

ft)
Quota filled

150,000,000 Pound
219,600,000 Pound

52,736,1*10
12,057,1)30

5,000,000 Pound

2,180,092

Petroleum and petroleum
products .»..• ••„*•••••••* Calendar year
Venezuela
2,956,81)1,91*9 Gallon
Netherlands
930,857,651 Gallon
Other countries 1,090,118,800 Gallon
Almonds:
shelled

12 months from

959,338,916
615,900,103
536,872,11*1)

1,1*37,893
*-1,500,000 Pound

prepared, etc. •••••..«• Oct. 1, 1951

318,280

*0f the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste).
(l)

Imports for consumption at the quota rate are limited to 7,868,027 pounds
during the first three months of the calendar year*

, FOR IMMEDIATE RELEASE,
March I&, 1952_________ _
The Bureau of Customs a^ o ^ c e d
figures showing the
quantities of wheat and wheat floui/entereciy 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, 19i*2
for the 12 months commencing May 29, 1951, as follows;

0
0
0
0

Y/heat
y

Country
of
Origin

•

;
•
0

Established :
Imports
Quota
:May 29, 1951, to
jMarch 11, 1952
(Bushels)
(Bushels)

Canada
795,000
China
Hungary
Hong Kong
—
Japan
United Kingdom
100
—
Australia
Germany
100
Syria
‘ 100
New Zealand
Chile
100 ’
Netherlands
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
f^nama
Uruguay
Poland and Danzig
"Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
1Q0
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100

580,097
—
—
—
mm
mm
mm
mm
mm
mm
—
mm

_
_

10
—
mm
mm

mm
mm
mm

_

s

;
•

Wheat flour, semolina.,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
t May 29, 1951,
•
• to Mar. 11, 1952
(Pounds)
(Pounds)

3,81$,000
2 k ,000
13,000
13,000
,
8,000
75,ooo
1,000
5,000

3,815,000
—
—

11,200
•mm

62

,

5,000

mm

.

1

mm

1,000
1,000
1,000
11*,000
2,000
12,000
1,000
1,000
1*000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

0m
mm
mm

-

1,639
115
—

p:
,I

—

■—
_

-

— R'nn
rv\n
ouu,uuu

U,000,000
580,107

3,828,016

1

505

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, March 13

S-2991

1952

The Bureau of Customs announced today preliminary 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 President’s
proclamation of May 28, 19ll, as modified by the President’s proclamation of
April 13, 19l2, for the 12 months commencing May 29, 1951, as follows:

Whesit

Established :
Imports
Quota
fay 29, 1951, to
•j
/larch 115. 1952
(Bushexs)
CBushels)

5 8 o ,io t

u

580,097

cc

795,000
Canada
China
Hungary
Hong Kong
tlcljpo.il
100
United Kingdom
Australia
100
Germany
Syria
100
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
Prance
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
o
o.
o
o
o

Country
.n
of
Origin

-

•
-

-

10
-

"Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established :
Quota
: May 29, 1951,
.* to Mar. 11, 1952
(Pounds)
(Pounds)
3,815,000
21,000
13,000
13,000
8,000
75,000
1,000

5,000
5,000

1,000
1,000
1,000
11,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000
11,200
62
-

-

1,639
115
mm
mm
m.

mm

-

-

-

-

-

-

~

-

-

-

_

mm

mm

•*

•*

F,000,000

3,828,bl6

/

U

r I-I

a «■*&***”"

1p

f
U

IMMEDIATE RELEASE
larch ~Æ...............................
1952 ............
--------------------- ym

•« ‘v&n*'1* r~ÿèma, /

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 19U6, from January 1, 19§2, to
larch 1, 1952, inclusive, as follows:

#
¿Products of the
Philippines

:
:
0»

Established Quota
Quantity

Buttons ..........

850,000

Cigars •••••••••••
Coconut Oil .

:
:

Unit of
Quantity

:
:
•»

Imports as of
March 1, 1952

dx UQO

122,092

200,000,000

Number

182*505

1^8,000,000

Pound

Cordage ••••«•»•»•

6,000,000

rt

Ri ce .............

l,0l|0,000

tt

(refined *..«
Sugars
(unrefined •»

l,90li,000,000

tt

Tobacco ..........

6 ,500,000

9,3014,031;
637,815

126,797,311
it

l439,l;60

/
/

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, March 13? 1952

S-2995

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 191*6, from January 1, 1952, to
March 1, 1952, inclusive, as follows:

Products of the
Philippines

: Established Quota
Quantity
:

:
:

Unit of :
Quantity :

Imports as of
March 1, 1952

•
•

Buttons .........

8<0,000

Gross

122,092
182,505

Cigars .........

200,000,000

Number

Coconut Oil .....

1*1*8,000,000

Pound

9,30h,03h

Cordage .........

6,000,000

Pound

637,815

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

1,01*0,000

Pound

(refined .....
Sugars
(unrefined ...

l,90l*,000,000

Tobacco ........ .

6,500,000

■a

Pound
126,797,311
Pound

¡439,1*60

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 .................
C h i n a ................
Egypt ---- ----------- C u b a .................
Germany............ ..
Italy *...............

: Total imports
: Sept. 20,1951 to
: March 11. 1952

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,133
6,544
76,329
21.263

27,370
234,666
—
—

5,482,509

262.036

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

—

—
—
—

Imports
1/
: Established :
:
33-1/3? of r Sept. 20, 1951
: Total Quota : to Mar. 11, 1952___

27,370

1,441,152
-

75,807
22,747

14,796
12,853
—

—
—

—
—

— '
25,443
7,088

1 .599,886

- •
-

—

_________ z j U 3 m _____

Tr'
7

/
'i/<vAS.

IMMEDIATE RELEASE
March 3%, 1952

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President’s Proclamation of September 5, 1939* as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4”
Imports Sept. 20^-1951, to March 11. 1952. inclusive_________
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
P e r u .....
British India ......
China .............
Mexico .............
Brazil ............
Union of Soviet
Socialist Republics
Argentina .........
H a i t i .............
Ecuador ...........

Imports
® ■

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

—
66,526
—
—

8,883,259
142,837
—■
—
—
-

Country of Origin

Established Quota

Honduras ............
Paraguay........
Colombia . . . ..........
I r a q .............. ..
British East Africa ...
Netherlands E. Indies
.......
Barbados
l/0ther British W. Indies
Nigeria
2/0ther British W. Africa
¿/Other French Africa ...
Algeria and Tunisia ...

Imports

752
871
124
195
2,240
71,388
_

mm

Established Quota (Global)

Established Quota (Global)

45,656,420

_

mm

Cotton 1-1/8” or more, but less than 1-11/16”
Imports Feb, 1,1952, to March 11. 1952_____

1,063,864

mm

-

Cotton« harsh or rough, of less than 3/4”
Imports Sept. 20,1951, to March 1, 1952

70,000,000

mm

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.

Imports

'mm

Imports

17,090,615

mm
mm

‘

: *

TI&ASUHI DEPARTMENT
/
Washington

IMMEDIATE RELEASE
Thursday5 March 13, I952

S-2996

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 1-1/3 inches other' than rough or harsh under 3/k”
Imports Sept. 20, .1951, to March 11, 1952, Inclusive
,,Country of Origin

Imports

Established Quota

Egypt and the AngloEgyptian Sudan .....
PfifU .............. .
British -India .......
China
Mexico
7.i1 *«******«*»»«..»
Union of Soviet
Socialist Republics
Argentina ...........
Haiti
Ecucidox* •••••••••••«*

783,316
217,952
2,003,1*83
1,370,791
8,883,259
618,723

-

66,526
-

8,883,259
11*2,837

1*75,121*
5,203
237
9,333

,

.1 -

Country of Origin ''' '‘
Honduras ..............
Paraguay
*...•
Col ornbn a..«.....*!..,!..
Iraq
*•.
British East Africa’...v
Netherlands E. Indies.’.
Barbados ..............
l/0ther British W. Indies
Nigeria. .... ;..........
- 2/0trier British W, Africa
'3/0ther French Africa ... •
~ Algeria and Tunisia ...

Established Quota

Imports

.

■ 752
. ,4 . 87I
.... -12k
T f W -w
... -2,2k0
. .
71,388

»
-

. 21,321

-

5,377

-

16,00k
•" 6 8 9

-

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/k"
Imports Sept. 20, 1951, to March 1, 1952
Established Quota (Global)
Imports
70,000,000
1,063,86^

Cotton 1-1/8” or more, but less than 1-11/16”
Imports Feb. 1, 1952, to March 11, 1952
Established Quota (Global)
Imports
k5,656,i|20
17,090,615

cn

-

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...... .
5,323,557
Canada
'• -239,690.
22?,R20
i*ranee ^
British India
6?, 627
Netherlands
^
.
68,21*0
tzerlancS •♦•♦»•••••#• v>r 1*U,388 •
Belgium
38,559
tJ3.p3n
.351,535
17,322
China .................
Egypt ..................
8,135
Cuba
6,5Ui
76,329
Germany •••• ••♦#••••••♦*
Italy
21,263
. 5,582,509

1/ Included in total imports, column 2.

Prepared by the Bureau of Customs

: Total imports
: Sept. 20, 1951 to
: March 11, 1952
27,370'
23U,666

ï

:
:

Imports
; 1/
Established :
33-1/3SS of : Sept. 20,-195'! Total vuota : to Mar. 11, 195>2- -*
,

1,51*1,152
75,807
22,7U7

?

-

27*370----

-- « •-••-• * ■
- ... •-?----.
-•

■>-•

^
'

. .

15,796

-.
..0

12,853
-■
i. -

-

25,553
7,088

262,036

: 1,599,886

,.

;

.-*• -* **
.vt:: ;3- - 1¡¡f
»>? .‘••..*'.•65'
.
.- - '•
'.1/ -»
: 27>>7Q.

•

TREASU RY DEPARTM ENT

IMMEDIATE RELEASE
Thursday5 March 135

1952

s-2997

The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the calendar year
19£l.

D.S. purchases of gold exceeded sales by

$75 million last year, with net sales of $932 million
in the first half of 1951 offset by net purchases of
$1,007 million in the second half*
A table showing total 1951 and quarterly
net transactions by country is attached.

UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES, 1951
____ _____________(in millions of dollars)__________________
Negative figures represent net sales by the
United States; positive figures, net purchases.'*
Country
Argentina ..........
Belgium ............
Belgian Congo .......
Canada.......... .
C h i l e .............

1st
Quarter

2nd
Quarter
$

-12,3*
-8,0
-5.0

3rd
Quarter
$

2.0
-10.0
-

.1

Uth
Quarter
$

.1

Total
1951
-$>li9.9
-10.3
-8.0
-10.0
-U. 8

Colombia..........
lluO
3*5
C u b a ..............
-20.0
Denmark .......... .
»13
-2.1
-lu2
Dominican Reoublic ..
-2.0
-2.0
-luO
Ecuador.......... ...... - 3 . 5 ____-_________ -________ -

17*5
-20.0
-19.7
-8.0
-3*5

E g y p t ..... ........
Fiji Islands ........
Finland...........
F r a n c e............
Greece ......... .
Indonesia......
L e b a n o n ...........

Mexico ......... .
Netherlands ..... .
P e r u ..............

-20.0
2.2
-91.7
-6.2

-25.0
.3
-

-31.0
1.1
-2.8
-

-2.0
71.6
-lui

-76.0
3.6
-U.8
-20.1
-10.3

-20.0
-1.1
-12iuii
-lu 5
-15.0

6lul
-

-lu 3
-

-25.0
-

-ii5.0
-5.1;
-60.3
-iu5
-15.0

1.0
-15.0
-3.0
-

.3
-5.0
-17.0

.6
-5.0
-

3*5
-3lu9
-3,0
-.8
-32.0

-15«0
-2lu8
-9*1
3*5
-.7
-3.8
-1.1
12.7
20.3
-UOO.O_____-80.0____ 320.0

-.7
19.2
629.9

-15.0
-30.h
-6.3
52.1
¿169.9

Philippines ...........
1.6
-10.0
Portugal ;.........
Salvador ..............
Saudi A r a b i a .... .
-.8
-15« 0
S w e d e n ..........
Switzerland ........
Switzerland-®.I.S. ..
Syria ........... .
South A f r i c a .......
United Kingdom ......

Uruguay ........ .
Vatican C i t y ......
Venezuela.... .
All Other ...........
Total

-50.9
-.1

15.0
-.9
.1

28.0
-

30.0
5.0
.1

22.1
5.0
-.9
.1

-$876.3

-$55.5

-$291.U

$715.7

$75.2

* Transactions with each country in each quarter were all purchases or
all sales with one exception; i.e., the net figures for each quarter,
shown above, also represent the gross transactions for the quarter,
except for Belgium which in the first quarter purchased $15.6 million
and sold $3.3 million.
Figures will not add to totals because of rounding.

I am sure the action of the Senate in voting
favorably on the P r e s i d e n t s Internal Revenue Service
reorganization plan will meet with the widest public
approval.
The adoption of this plan is a progressive move
in the improvement of our governmental machinery.

By

authorizing organizational changes necessary to meet
present-day requirements, the plan opens the way for
further development of a Revenue Service of the highest
efficiency and integrity.
Steps to put the plan into effect will be under­
taken at once under the direction of Commissioner of
Internal Revenue John B. Dunlap.

The transition will

be orderly to assure that the work of the Bureau will
not be interfered with.
as circumstances permit.

But we shall act as speedily
1 feel confident that the

requirements of the December 1st deadline will be met.
The public will be kept fully informed, so that
the change-over into a thoroughly modernized Revenue
Service may be accomplished without causing any con­
fusion or inconvenience to the taxpayer.

TREA SU RY DEPARTM ENT
Information Service

Wa s h in g t o n , d . c .

IMMEDIATE RELEASE,
Thursday, March 13. 1952-

S -2998

Secretary Snyder today issued the following
statement:
I am sure the action of the Senate in
voting favorably on the President's Internal
Revenue Service reorganization plan will meet
with the widest public approval.
The adoption of this plan is a progressive
move in the improvement of our governmental
machinery.
By authorizing organizational
changes necessary to meet present-day require­
ments, the plan opens the way for further
development of a Revenue Service of the
highest efficiency and integrity.
Steps to put the plan into effect will
be undertaken at once under the direction of
Commissioner of Internal Revenue John B. Dunlap.
The transition will be orderly to assure that
the work of the Bureau will not be interfered
with. But we shall act as speedily as
circumstances permit.
I feel confident that
the requirements of the December 1st deadline
will be met.
The public will be kept fully informed,
so that the change-over into a thoroughly
modernized Revenue Service may be accomplished
without causing any confusion or inconvenience
to the taxpayer.

0O 0

/

\

Me
w m m , mmim
Tneeday» March

J '- H

h ptspaítos ,

W*

fhe Seeretary

TI

19$2»
o£

the Treasury announced last evening that the tender©

to r

$X,2QG*0001000# or tlMnreafeoat©, of 9X~day Treaswry bilí© to b© datad March 20 and to
aatur© June 19, 19$2* nhicfa ©ere offered on Uareh 13, ©ara operad at the Federal Reserve Banks on üvreh 1?«
The detalle of thle leen© are a» folie*©*
fetal applted fef * $1$962,982*000
fetal aeoepted
- 1,2OO,S9?»0OQ

Average prloe

{lacladas $199,?kl#000 enterad on a
non-coapetitlve baels and accaptad in
fnll at the average prlce shcwn hele*)
- 99*595/ icjulvaleat rate of dlseount approau 1*601$ per amana I

Eange of accepted competitiva bidet

Hldi

* 99*603

j¿¡¡

iqpiT&lent rate of dlsoouzxt aprese* 1«5?X$ P®r
*
«
«
»
»
1*618$ «

w anm

{hl peroent of the a s « t bid for at the lo* prloe ©as aocepted)

Federal Reserve
D is tric t

fe ta l
Applied f or

fe ta l
Aocepted

Beatón
Hew York
Fhiladelphla
Cleveland
Elchaond
Atlanta
Chicago
S t. lóale
Hinrasp1
d i©
Sansas C ity
failü
San Franeieco

f

$

tOIAL

38,963,000
1,320,512,000
26.950.000
87.882.000
21.003.000
32.302.000
217,860,000
30.363.000
9,092,000
1*7,815,000
61.763.000
68.677.000

11,962,982,000

21*,868,000
657,1*92,000
11.050.000
71*.1*52,000
15.803.000
30 . 802.000
189,921*,000
23.596.000
8,662,000
1*3,538,000
56.133.000
61*. 277,000

$1,200,597*000

*

I

TREA SU RY DEPARTM ENT
Information Service

WASHINGTON, D .C .

515
RELEASE MORN I N G NEWSPAPERS,
Tuesdayj March 18, 1952.

S-2999

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 20 and to mature June 19, 1952, which were offered
on March 13, were opened at the Federal Reserve Banks on March 17.
The details of this issue are as follows: .
Total applied for - $1,962,982,000
- 1 ,200 ,597,000 (includes $199,741,000
Total accepted
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99.595/ Equivalent rate of discount approx,
Average price
1 .601$ per annum
Range of accepted competitive bids:
- 99.603 Equivalent rate
1.571$
- 99.591 Equivalent rate
■ 1 .6 l 8$

High
Low

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

(4 l percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Accepted

Total
Applied for
$ 38 ,963,000
1 ,320 ,512,000
26 ,950,000
87 ,882,000
21 ,003,000
32 ,302,000
217 ,860,000
30 ,163,000
9 ,092,000
4 7 ,815,000
61 ,763,000
68 ,677,000
$ 1 ,962 ,982,000

0O 0

$

24,868,000

657 ,^92,000
1 1 ,050,000
7 ^,452 ,000
15 ,803,000
30 ,802,000
189 ,924,000
23 ,596,000
8 ,662,000
4 3 ,538 ,000.
56 ,133,000
64,277,000
$ 1 ,200 ,597,000

Comptroller of the Currency Preston Delano today an­
nounced the appointment, effective April 1, 1952, of James C.
Osborn as District Chief National Bank Examiner of the Fifth
Federal Reserve District in Richmond, Virginia to succeed Robert
S. Beatty, whose transfer as of the same date to Kansas City,
Missouri as District Chief National Bank Examiner of the Tenth
Federal Reserve District has already been announced.
Mr. Osborn, a native of Oregon, entered the service of
the Comptroller*s office in 1930 as an Assistant National Bank
Examiner in the Twelfth Federal Reserve District and, in 1939,
was commissioned a National Bank Examiner in the Twelfth District.
He was transferred to the Washington office in March, 1951 as an
Assistant Chief National Bank Examiner.

IMMEDIATE RELEASE,
Tuesday, March 18, 1952.

S-3000

Comptroller of the Currency Preston Delano
today announced the appointment, effective
April 1, 1952, of James C. Osborn as District
Chief National Bank Examiner of the Fifth
Federal Reserve District in Richmond, Virginia
to succeed Robert S. Beatty, whose transfer as
of the same date to Kansas City, Missouri as
District Chief National Bank Examiner of the
Tenth Federal Reserve District has already been
announced.
Mr. Osborn, a native of Oregon, entered the
service of the Comptroller’s office in 1930 as
an Assistant National Bank Examiner in the
Twelfth Federal Reserve District and, in 1939,
was commissioned a National Bank Examiner in the
Twelfth District,
He was transferred to the
Washington office in March, 1951 as an Assistant
Chief National Bank Examiner.

0 O0

^ T f l T r tfTTlT f O I i TTTTT H iT Y i ii

Secretary of the Treasury John W. Snyder stated today that the
President had authorized him to announce his acceptance of the resigna­
tions of George Hofferbert, Collector of Internal Revenue for the
District of Maryland with headquarters at Baltimore, and Vincent I.
Dallman, Collector for the 8th Illinois District with headquarters
at Springfield.

Both resignations are effective March 31, 1952.

The Secretary said that both Collectors had rendered excellent
service«
Mr. Hofferbert has been Collector for the Maryland District since
19hk»

His resignation was prompted by his wish to return to the

private practice of law.
Mr. Dallman assumed office as Collector in 1933 and he is leaving
the position so that he may devote his full time to newspaper interests.
The Secretary announced that, pending reorganization of the
Collectors» offices under the President *s Reorganization Plan recently
approved by the Congress, the following career revenue officials will be
named as Acting Collectors to fill the two vacancies:
For the Maryland District, Assistant Collector Eugene Travers.
For the 8th Illinois District, Assistant Collector Heber D. Lukenbill.

519

IMMEDIATE RELEASE,
Wednesday, March 1 9 3 1952»

S-3001

Secretary of the Treasury John W. Snyder stated
today that the President had authorized h im to
anno linee his acceptance of the resignations of
George Hofferbert,. Collector of Internal Revenue for
the District of Maryland with headquarters at
Baltimore, and Vincent Y , Dallman, Collector for the
8th Illinois District with headquarters at Springfield.
Both resignations are effective March 31, 1952.
The Secretary said that both Collectors had
rendered excellent service.
Mr. Hofferbert has been Collector for the Maryland
District since 19^^•
His resignation was prompted by
his wish to return to the private practice of law.
Mr. D allman assumed office as Collector in 1933 and
he is leaving the position so that he m ay devote his full
time to newspaper interests.
The Secretary announced that, pending reorganization
of the Collectors' offices under the President's
Reorganization Plan recently approved by the Congress,
the following career revenue officials will be named
as A c t i n g Collectors to fill the two vacancies:
For the Maryland District, Assistant Collector
Eugene Travers.
F or the 8th Illinois District, Assistant Collector
He b e r D. Lukenbill.

0 O0

- 3 MriSH&g

any State, or any of the possessions of the United States, or by any local tax­
ing authority.

For purposes of taxation the amount of discount at which

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

Under Sections

as amended by Section

11$

bZ

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

of the Revenue Act of 19U1, the amount of discount at

which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.

Accordingly, the owner of

Treasury bills (other than life insurance companies) issued hereunder need in­
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No.

h 18,

as amended, and this notice, prescribe

the terms of the Treasury bills and govern the conditions of their issue,
of the circular may be obtained from any Federal Reserve Bank or Branch.

Copies

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

be final.

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

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

Settlement for

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

March

1952
, in cash or other immediately avail-|
pgyris * --- —
able funds or in a like face amount of Treasury bills maturing March
2 ?,

i .

M

Gash and exchange tenders will receive equ^l treatment.

Cash adjustments will M

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,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Gode, 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

DÓP

FOR RELEASE, MORNING NEWSPAPERS,

Thursday, March 20, 195?______•

The Secretary of the Treasury, by this public notice, invites tenders for
« « — bouts, Of
in exchange for Treasury bills maturing

gqSfio,
March 27, 195.2------->/to be issued on

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

The bills of this series will be dated__ March

will mature
interest.

June 26, 1952

27,

195g-------- » 311(1

, when the face amount will be payable without

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

£1, 000, $5, 000, $10, 000, $100, 000, $500, 000, and $1, 000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, March

2k,

19$2_-

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1, 000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g.,

99.925-

Fractions may not be used.

It is urged that tenders

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

Tenders will be received without deposit from

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

Tenders from others must be accompanied

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

TREASURY DEPARTMENT
Information

Service

RELEASE MORNING NEWSPAPERS,
Thursday, March ,20, 1952»

WASHINGTON, O

,

S-3002

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 March 27, 1952,
in the amount of $1,204,475,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated March 27, 1952,
and will mature June 26, 1952, when the face amount will be payable
without interest.
They will be issued in bearer form only, and in
denominations of $ 1 ,000 , $ 5 ,000, $ 10 ,000 , $ 100 ,000 , $ 500 ,000 , and
$ 1 ,000,000 (maturity value).
,
’
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two.o'clock p.m., Eastern Standard timer
Monday, March. 24, 1952.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
multiple of $ 1 ,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100 , with not more
than three decimals, e. g., 99»925.
Fractions may not be used.
It
is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and
from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for", unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $ 200,000 or less without stated price
from any one bidder will be accepted in full at the average price

-

2

-

(in throe decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on March 27 , 1952, in cash
or other immediately available funds or in a like face amount of
Treasury bills maturing March 27, 1952.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary•thereto. The bills shall be subject to estate,''
inheritance, gift or other excise taxes, whether Federal or State,
but -shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year ibr which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l 8, as amended,- and this l
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

m i p i 1IGEI1IG NEWSPAPERS,
Tuesday, March 25, 1952.
The Secretary of the Treasury announced last evening that the tenders for
$1,200,000,000, or thereabouts, of 91-day Treasury bills to be dated March 27 and
to nature June 26, 1952, which were offered on March 20, were opened at the Federal
Reserve Banks on March 2ii.
The details of this issue are as follows t
Total applied for - $2,067,766,000
Total accepted
* 1,201,069,000 (includes $175,363,000 entered on a
non-competitive basis and accepted in
full at the average prlee shown below)
Average price
• 99*597/ Equivalent rate of discount approx* 1.592* per annua
Range of accepted competitive bidet
High
Low

- 99.620 Equivalent rate of discount approx. 1.503* per annum
- 99.595
11
•
«
*
n
1.602* •
*

(56 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
New fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

1

#

Total

UU ,866,000
l ,t i 8 2 ,670,000
26,282,000
U7.523.000
25,9U3,ooo
27,783,000
196,610,800
35.90U.ooo
19,659,000
33,982,000
3 7,U 77,0 0 0
89,067,000

12,0 6 7,76 6 ,0 0 0

29,080,000
738,710,000
8,282,000
38,323,000
2 U ,181,000
25,123,000
l6 i,U U 5 ,o o o
27,765,000
11,069,000
26,102,000
3U.973.000
76,016,000

•1,2 0 1,0 6 9 ,0 0 0

TREA SU RY DEPARTM ENT
WASHINGTON, D

Information Service

524
RELEASE MORNING NEWSPAPERS,
Tuesday, March 25, 1952.

S-3003

The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 27 and to mature June 26, 1952, which were offered
on March 20, were opened at the Federal Reserve Banks on March 24.
The details of this issue are as follows:
Total applied for - $ 2 ,067 ,766,000
Total accepted
- 1 ,201 ,069,000 (includes $ 175 ,363,000
entered on a non-competitive
basis and accepted, in full at
the average price shown
below)
Average
price
~ 99*597/ Equivalent rate of discount approx.
1.592$ per annum
Range of accepted competitive bids:
High

-

Equivalent rate
1 .503$
- 99*595 Equivalent rate
1 .602$

Low

(58

99.620

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

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

Fe d e r a l R e s e r v e

Total

Total

District

Applied for

Accepted

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

$ 44,866,000
1,482,670,000
26 ,282,000
4 7 ,523,000
25 ,943,000
2 7 ,783,000
196 ,610,000
35,904,000
19 ,659,000
3 3 ,982,000
37,477,000
89 ,067,000
$ 2 ,067 ,766,000

0 O0

$

29 ,080,000
738 ,710,000
8 ,282,000
38 ,323,000
24 ,181,000
25,123,000
161,445,000
27,765,000
11 ,069,000
26 ,102,000
34,973,000
76 ,016,000

$ 1 ,201 ,069,000

- 3 -

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

as amended by Section 11$ of the Revenue Act of l$>Ul, 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

■l

-

2

-

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

Subject to these reservations, non-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 I

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

April 3. 1952

able funds or in a like face amount of

> ^-n cas^ or other immediately availj
•easury bills maturing April 3,^952. ^

Cash and exchange tenders will receive
made for differences between the par value of maturing bills accepted in exchange
-and the issue price of the nevf bills •

The income derived from Treasury b ills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift

The bills shall be subject to estate, inheritance,

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

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

TREASURY DEPARTMENT

Washington

3

&

L

FOR RELEASE, MORNING NEWSPAPERS,

Thursday, March 27. 1952_____
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,200,000.000 > or thereabouts, of
9 1 _ -day Treasury b ills, for cash and
— 1--- fay“*
in the amount of $ l , 201,lli8.Q00
in exchange for Treasury bills maturing April 3, 1952
" to oe issued oft
a discount basis under competitive and non-competitive bidding as hereinafter
provided.

The bills of this series will be dated

will mature
interest.

J u l v ^ 1952

Apri! 3^1?5.L---------- P and

> when the face amount vdll be payable without

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

$1, 000, $5, 000, $10, 000, $100, 000, $500, 000, and $1, 000,000 (maturity value).
Tenders vdll be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.nu, Eastern Standard time, Monday, March 31« 1952 *
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 vdll not be permitted to submit tenders
except for their own account.

Tenders vdll be received without deposit from

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

Tenders frcm others must be accompanied

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

TREA SU RY DEPARTM ENT
Information Service

WASHINGTON, D .C .

527
RELEASE MORNING NEWSPAPERS,
Thursday, March-27, 1952.

S-3004

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
A pri! 3, 1952 , in the amount.of $ 1 ,201 ,1 ^ 8 ,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
April 3 , 1952 ,..and will mature July 3 s 1952, when the face amount
will be payable without...interest. They will be issued in bearer
form only, and in denominations of $1,000, $5,000, $10,000
$100,000,. $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, ;two 0 »clock p.m., Ea stern Standard time,
Monday, March 31* 1952,
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even '
mùltiple of $1,000, and: in the case of competitive tenders the
?iiCe^ ffer?d ? ust 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 trustcompanies and from responsible and recognized dealers in Investment
securities,
Tenders from others must be accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of payment by
an Incorporated bank or trust company.
: •• •
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted b i d s . Those submitting tenders
w i n 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 pri^e
from any one bidder will be accepted in full at the average price

2
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on April 3, 1952, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing April 3* 1952. Cash and exchange tenders
will receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any .local taxing authority,
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections k2 and 11.7 (a) (l) of the. Internal
Revenue Code, as amended by Section 115 of the Revenue Act of-1 9 %
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

- s '-

Frank Dow, Commissioner of Customs, today eaMPCCt attention of
United States manufacturers to new,simplified procedures for pro­
cessing claims for drawback, which become effective April 1.
"Drawback" is a refunding of customs duties collected on imported
(uJ& hA *

M fa

3 t * * a 4 + * * ^ i* 4 *

merchandise,^^ually^e cause of ijfr usejin the manufacture of goods in
the United States which subsequently are exported.

Similar refunds of

internal-revenue taxes are authorized in the case of flavoring ex­
tracts and medicinal and toilet preparations manufactured with the use
of domestic tax-paid alcohol, and then exported.
The new regulations, which are expected to effect considerable
reduction in paper work for both commercial interests and customs of­
fices , were

•December j to fracome ■
effootiv©

1, 195 3 j

^ after advance notice and solicitation of views of interested parties
under the Administrative Procedure Act.

They constitute another step

in the continuing program of the Bureau of Customs to simplify its

‘opies of the regulations and supplies of the new
drawback forms can be obtained from collectors of customs.

529

IMMEDIATE RELEASE
Friday, March 28, 1952

S-3005

Frank Dow, Commissioner of Customs, today invited attention
of United States manufacturers to new, simplified procedures for
processing claims for drawback, which become effective April 1,
’Drawback" is a refunding of customs duties collected on
imported merchandise, the refund usually being made because
of use of the merchandise in the manufacture of goods in the
United States which subsequently are exported. Similar
refunds of internal-revenue taxes are authorized in the case
of flavoring extracts and medicinal and toilet preparations
manufactured with the use of domestic tax-paid alcohol, and
then exported.
The new regulations, which are expected to effect consider­
able reduction in paper work for both commercial interests
and customs offices, were approved after advance notice and
solicitation of views of interested parties under the
Administrative Procedure Act. They constitute another step
in the continuing program of the Bureau of Customs to simplify
its operations wherever possible.
Commissioner Dow said that copies of the regulations and
supplies of the new drawback forms can be obtained from
collectors of customs.

oOo