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6^.3 .
L!
ROOM 5030
JUN 141972
TREASURY DEPARTMENT
I
mium$ mmm s
if
M
;
Tuesday, igiil S 1952,
the secretary of the treasury announced last evening that the tenders for
11,200*000*000, or thereabout#, of 91~day treasury bills to be dated April J and to
Mature duly
3f
1952, thisfe vers offered
m
March 2?, ear# opened at the Federal Eeeni
Banka on lurch 31*
fhe detail# of thla issue are ae felloes t
total applied for * #2,185,837,000
total accepted
- 1,201,355,000
Average prise
(includes 8188,612,000 entered on a
baeia and accepted In
full at the average prise sheen belos)
* fp*$$0- Svalvstat rate of discount approx. Xfgft| per asua
lange of accepted competitive bidai
Sigjh
Lour
- 9 9 M $ Equivalent rate of discount approx. 1.5235 per e a t
«
s e a
e
- *3p$
1.606, •
s
(I# percent of the anouat bid for at the loir price « n accepted)
Federal Beaerve
oicmst
total
Applied for
fetal
Accepted
Boston
P f I»s
philarfglphi^
Cleveland
Richmond
Atlanta
Chicago
St. louis
Minneapolis
Kansas tity
1 32,129,000
1^179,215,000
29,220,000
Jt9,350,000
11»,16?,000
21,782.000
883,555,000
39,970.000
15,060,000
52,662,000
hi,736,000
125.991.000
t
*2,185,837,000
$1,201,355,000
San Francisco
TOTAL
27,Ut9.000
738,550,000
10,998,000
26,650,000
6,667,000
18,U1»,000
160,135.000
29,103,000
12.360,000
M,702,000
28,196,000
95,131,000
TREASURY
DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
REIEASE MORNING NEWSPAPERS,
Tuesday, April 1 , 1 9 5 2 .
S-30.06
The Secretary of the Treasury announced last evening that the
tenders for $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 9 1 -day Treasury bills
to be dated April 3 and to mature July 3 * 1 9 5 2 , which were offered
on March 2 7 , were opened at the Federal Reserve Banks on March 3 1 .
The details of this issue are as follows:
Total applied for - $2 ,1 8 5 ,8 3 7 * 0 0 0
Total accepted
. - 1 ,2 0 1 ,3 5 5 * 0 0 0
Average price
(includes $1 6 8 ,6 1 2 , 0 0 0
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99.598/ Equivalent rates of discount' approx.
1 .5 9 8 $ per annum
Range of accepted competitive bids:
- 9 9 . 5 1 5 Equivalent rate
1.523$
- 9 9 *5 9 ^ Equivalent rate
1 .6 o6 $
High
Low
of discount approx.
per annum
of discount approx.
per annum
(26 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
Hew York
■Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Applied for
$
TOTAL
3 2 ,1 2 9 , 0 0 0
1 ,4 7 9 *2 1 5 * 0 0 0
29,220,000
49,350,000
14,167,000
21,782,000
283,555,000
3 9 *9 7 0 , 0 0 0
16,060,000
52,662,000
41,736,000
125,991,000
$2,185,837,000
oOo
Total
Accepted
$
27*149,000
738,550,000
10,998,000
26,650,000
6,667,000
1 8 ,4 1 4 , 0 0 0
1 6 0 ,1 3 5 * 0 0 0
29,103,000
12,360,000
4 7 ,7 0 2 , 0 0 0
2 8 ,4 9 6 , 0 0 0
95*131,000
$1,201,355,000
The Treasury Department In response to a rrambero/inquiries
announced today that no change is contemplated in its P^*?y °
not authorizing support remittances to Chinese ^ Communist
from their relatives in this country. Such remittances «? "s11
as ill other unlicensed trade and financial transactions with
Communist China, are prohibited by the F o n i & k w t B
lations which were issued by the Treasury on December 17, 1950.
The Treasury stated that it had carefully reviewed all the
factors involved, including the humanitarian aspects
It was
concluded that major consideration should b e « £ “? ^.~ui£itton
tjurpose of the Regulations, which is to preclude the acquisition
cS^foreign exchange by the Chinese Communists •, Th8.
said that if such support remittances were to be authorized th
Communist Chinese authorities would obtain foreign exchange of
which they are in great need.
TREASURY
DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v ic e
RELEASE MORNING NEWSPAPERS
Wednesday, April 2 , 1 9 5 2 .
S-3007
The Treasury Department in response to a
number of inquiries announced today that no
change is contemplated in its policy of not
authorising support remittances to Chinese in
Communist China from their relatives in this
country.
Such remittances, as veil as all
other unlicensed trade and financial transactions
with Communist China, are prohibited by the
Foreign Assets Control Regulations which were
issued by the Treasury on December 1 7 , 1950.
The Treasury stated that it had carefully
reviewed all the factors involved, including
the humanitarian aspects.
It was concluded
that major consideration should be given to
the basic purpose of the Regulations, which is
to preclude the acquisition of foreign exchange
by the Chinese Communists.
The Department said
that if such support remittances were to be
authorized the Communist Chinese authorities
would obtain foreign exchange- of which they are
in great n e e d .
0O0
- 3 -
any State, or any of the possessions of the United States, or by any local tax
ing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered to
be interest.
Under Sections
bZ and 11? (a) (1) of the Internal Revenue Code,
as amended by Section 11$ of the Revenue Act of
19bX, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-
2
-
unless the tenders are accompanied by an express guaranty of payment by an in
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for ;)200,000
or less without stated price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
April ln
1952
, in cash or other immediately avail-1
able funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
April 10. 1952.
Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchangej
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under the Internal Revenue Code, or laws amendatory
or supplementary thereto.
gift
The bills shall be subject to estate, inheritance,
or other excise taxes, whether Federal or State, but shall be exempt from
all taxation now or hereafter imposed on the principal or interest thereof by
m m x& a
TREASURY DEPARTMENT
Washington
4
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 3 , 1952------- •
tk k
The Secretary of the Treasury, by this public notice, invites tenders for
4
1*1100.000.000 i or thereabouts, of
91 ,-day Treasury bills, for cash and
'
’S S c---'
in the amount of $ 1 .201.177.000
in exchange for Treasury bills maturing April 1 0 . 1952
>/t o m 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
July 1 0 . 19£2
.
April 1 0 . 1952
J
311(1
* when the face amount vail be payable without
They Tall 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 , Apri
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.92£.
Fractions may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
TREASURY
DEPARTMENT
In fo rm a tio n S e r v ic e
RELEASE MORNING NEWSPAPERS,
Thursday, April 3 , 1 9 5 2 ,
WASHINGTON, D .C .
Sr 30.08
The Secretary of the Treasury, by this public notice, invites
tenders for $1 ,4 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 9 1 -day Treasury bills,
for cash and in exchange for Treasury bills maturing April 1 0 , 1 9 5 2 ,
in the amount of $1,201,177,000, 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 1 0 , 1 9 5 2 , and
will mature July 1 0 , 1 9 5 2 , 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■va l u e ).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o' clock p.m., Eastern Standard time,
Monday, April 7, 1 9 5 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., 9 9 *9 2 5 . Fractions may not be used.
It is
urged that tenders be made on the printed forms a n d .forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not bo permitted to
submit tenders except for their own account.
Tenders will be
received without deposit from incorporated banks and trust companies
and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price .range of accepted b i d s . Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
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 10, 1952, in cash or
other immediately available funds or in a like face amount oi
Treasury bills maturing April 10, 1952.
Cash and^exchange tenders
will receive equal treatment. Cash adjustments will be made for
differences between the par value of maturing b i l l s 'accepted in
exchange and the issue price of the new b i l l s .
'The i n c o m e
derived
.from T r e a s u r y b i l l s ,
whether
interest
or
sain from' the sale or other disposition of the bills, shall n o h a v e
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 o f /
taxation the amount of discount at which Treasury bills are
originally 'sold by the United States shall be considered to be
in t e r e s t / Under Sections 42 and. 117 (a) (l) of the Ihternal^Rev^nea
Code, as amended by Section 115 o f the Revenue Act of 1941, tho_
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 hisincome-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.
,rtment L-ix^uxai'
Circular N
o . 4l8,
: Treasury- Department
wv-,
-rxv, as amended, and this
notice,, prescribe the terms of the Treasury -hills and govern the " v
conditions' of their issue.
Copies of the circular may be obtained
from any.Federal Reserve Bank or Branch,
oQo
determination and in the same spirit
of mutual cooperation that we have
developed in the past three years
in NATO, we shall see a continuous
lifting of.the clouds which have
weighed upon us so heavily in recent
years*
which they must have t h r o u g h their
own efforts»
5 Î have t o u c h e d upon some of the
d i f f i c u l t i e s with which we have been
d e a l i n g and some of those w h i c h
ahead.
Yet
lie
I am most e n c o u r a g e d by
what we have a c c o m p l i s h e d
in three
short years*
In this generation, we have had
to mime quiCK adjustment to changes
in the InternatîonaI situation,
am sure that, if we continue with
f
10 I
assured internal longj flow of goods.
Wh 11 e it is necessary to allocate
essential materials to defense, It
Is important to bear in mind the
advantages of the greatest possible
freedom for Inter fist jona I trade
among ail the free countries,
$© shall not have an entirely
sound, normal and stable
internetionaI trading world until
a greater number of the free countries
can carry on their internat iona I
must
in
responsibility to ms«©
}I I be
^Ifll**
assoc ia
ense
over
oeriod.
5i
tona
shouId
ective of a
*
ML- 0.
economtc
a II the
» 1
disi ocat ions
i
-
7
Wm
f i n a n c e their defe n s e
from c o u n t r y
jf '
p r o d u c t io n
ic must s
increases,
3#
Ci
government
will
w h ich
js
e o n s u m p ti o n , especially
in
so-caI Ied hard
It is of
the world that
carried
wtth o u t
basic economic and financial
I I tty.
costs <
on a sound
m
Q
occas ions
our
To
has on
separate
level
memb e r s
of
5
o
Our modern e c o n o m i e s have g r eat
c a p a c i t y to
improve e fficiency,
to cut real
costs and to
Increase
o u t p u t under the stim u l u s of
d e f e n s e needs.
Nevertheless,
we
have to r e c o g n i ze that a joint
effort to build the kind of s t r e n g t h
n e e d e d to make us secure must
inevitably mean p o s t p o n e m e n t of
investment and capital
programs,
development
andf jsome temporary
limitations on the
level of
VJ
substantial achIe
in
f i x i n g
'*• I t
a
and
is I
objectives for the next
es to current
It is quite evident that
our
cr
cl
of secur ity will
upon
S
8
express
m inat ion
a
II the
ticipating countries to assure
u n c o o r d irated
efforts
to obtain the best resu
cost
of m i I itary
strength
inevitably
Such
become even more
s im i Iar
e c o n o m i es
of such
and their national
thi g
to
ve e f f o r t
improve their
to c o m b i n e
our m i l i t a r y s t r e n g t h
each partici
11
can provide
st c o n t r i bute to
common
our total
in such a way
Iv W •
St
In this
more
Mr,
Secretary,
Representatives
our N ATO Partners,
of
Distinguished
Guests:
p,
,f || it| | ' |
*
| »|
||;3
|
*
I
i
S§S|
in c o w m e m o r a t i n g the third
a n n i v e r s a r y of the N o r t h A t l a n t i c
Treaty O r g a n i z a t i o n we
look back
on a reco r d of a c h i e v e m e n t
s t r e n g t h e n i n g our mutual
in
defense.
The N o r t h Atlan t i c Treaty
O r g a n i z a t i o n was e s t a b l i s h e d
b e c a u s e our peoples r e a l i z e d that
they faced a threat to their f r e e d o m
ADDRESS SS SECRETAS! SHXDKE
H D AH8ITE8SASS
G? SBSÏS®
Of HORTS ATUHTIC m i l l
COHSTITOTK» S i l i , WASHINGTON, B , C.
u n m , k , i?S2
22
TREASURY DEPARTIJENT
Washington
The following address by Secretary Snyder at
ceremonies in Constitution Hall, 'Washington, D.C.,
marking the third anniversary of the signing of
the North Atlantic Treaty, is scheduled for
delivery at 11:13 a.in» Friday, April
f and
is for release at that time *
Mr* Secretary, Representatives of our NATO Partners, Distinguished
Guests:
In commemorating the third anniversaiy of the North Atlantic
Treaty Organization we look back on a record of achievement in
strengthening our mutual defense.
The North Atlantic Treaty Organization was established because
our peoples realized that they faced a threat to their freedom and
their national concepts of life, and that the best way to deal with
this threat was a cooperative effort to improve their defenses.
We have endeavored to combine our military strength in such a
way that each participant can provide the manpower and the materials
which it can best contribute to the common objective. In this way
our total strength is made more effective than the sum of uncoordinated
individual efforts would have been. In this way we also hope to obtain
the best results for the cost entailed.
A rapid build-up of military strength inevitably poses many
questions for the government of a complex modern economy. Such
questions become even mois complicated when we endeavor to mesh similar
programs of a number of such economies. However, we have made sub
stantial achievements in fixing agreed military goals for this year,
and adopting provisional objectives for the next two years, as guides
to current national planning. It is quite evident that our further
progress toward a greater degree of security will depend upon the
practical expression of a determination by all the participating
countries to assure that progress.
Our modern economies have great capacity to improve efficiency,
to cut real costs and to increase output under the stimulus of de
fense needs. Nevertheless, we have to recognize that a joint effort
to build the kind of strength needed to make us secure must inevitably
mean postponement of investment and capital development programs, and
S-3009
• 2
r>^
¿10
some temporary limitations on the level of consumption, especially
in the so-called hard goods.
It is of great importance to the world that the defense program
be carried out without impairing basic economic and financial
stability. To meet the increased costs of defense on a sound basis
the United States has on three separate occasions increased the level
of our taxes. Other NATO members have faced the same problem. The
ways and means by which they finance their defense programs may of
course differ from country to country. But broadly the essential
need is the same. Except as production increases, the public must
spend less as the government spends more, or defense will tend to be
financed through the undesirable and expensive form of taxation which
is called inflation.
We realize that the effort of defense is being made in the NATO
area after a relatively short period of recovery from the economic
dislocations of Wfs&\Ld War II. For this reason, the U. S. has under
taken a program of security assistance to supplement its own
strenuous efforts in rebuilding its national defense forces and in
participating in the United Nations campaign against aggression in
Korea.
We must look to our associates in NATO, however, for the
primary responsibility to make the necessary economic adjustments
which will be associated with European defense over the longer period.
In proceeding with regional cooperation in defense, we should
not forget the broad objective of a unified economic world among all
the free nations. The complex modern economies rest increasingly
upon an assured international flow of goods. While it is necessary
to allocate essential materials to defense, it is important to bear
in mind the advantages of the greatest possible freedom for inter
national trade among all the free countries.
We shall not have an entirely sound, normal and stable inter
national trading world until a greater number of the free countries
can carry on their international trade more freely, and without
excessive reliance on restrictions which protect their industries
against the healthy stimulus of world-wide competition. Nor shall
we have completed our recovery from the economic effects of the war
until the channels of international finance are restored to normal
’kyp6s of capital investment, and until the major industrial countries
again pay for the vital raw materials and foods which they must have
through their own efforts.
24
- 3 -
I have touched upon some of the difficulties with which we
have been dealing and some of those which lie ahead. Yet I am
most encouraged by what we have accomplished in three short years.
In this generation we have had to make quick adjustment to
changes in the international situation. I am sure that, if we
continue with determination and in the same spirit of mutual co~
operation that we have developed in the past three years in NATO,
we shall see a continuous lifting of the clouds which have weighed
upon us so heavily in recent years.
I
0O0
*
Mr. Predmore is an experienced executive and admin
istrator.
His early training was in the field of
agriculture.
After graduating from Ohio State University
in 1938 with a degree in Agriculture, he worked in sales
and administration with an Ohio milk cooperative.
Following that, he joined his father in the management
of their 160-acre farm near Columbus, Ohio.
In 1934,
Mr>
Predmore joined the Resettlement Administration in
Columbus, Ohio, as District Supervisor.
He later repre
sented the Department of Agriculture in Ohio.
Mr. Predmore
joined the U. S. Savings Bonds Division as Deputy Director
at Columbus, Ohio, in 1942.
He was appointed State Direc
tor of the U. S. Savings Bonds activities in Ohio in May,
1948.
2
Mr. Clark, a native of Nebraska, had early
experience as an advertising man and salesman.
Later,
he became president of the Des Moines Sawmill Co., and
then vice-president and sales promotion manager of the
Penrod, Jurden and Clark C o . , Des Moines lumber concern
He was recognized as a leading executive in the lumber
industry.
Mr. Clark has participated in many public
service activities.
In August,
1941, he was drafted
to be Iowa,s State Administrator of the Office of
Production Management as a dollar-a-year man.
In
1941 the Treasury Department appointed him Iowa State
Administrator of the Defense Savings Staff, and in
1943 named him executive manager of ,the Iowa War
Finance Committee.
In January,
1946, Mr. Clark ac
cepted appointment as National Director of the U. S.
Savings Bonds Division.
In that capacity he had charge
of postwar operations of the Savings Bonds Division,
including the Security Loan Drive, Opportunity Drive,
Independence Drive and Defense Bonds Drive.
Mr. Clark*s new designation establishes an office
in Washington paralleling that of State Chairman in
v
the volunteer State Savings Bonds organizations.
Secretary Snyder announced today that he had desig
nated Vernon L. Clark as an Assistant to the Secretary,
to serve in this capacity as National Chairman of the
Defense Bond Program.
Mr. Clark will consult with and
advise the Treasury on Defense Bonds sales promotion
policies other than those which relate to the management
and day-to-day operations of the Savings Bonds Division
of the Treasury.
The Secretary at the same time designated Merrill L.
Predmore of Columbus, Ohio, as Acting National Director
of the Savings Bonds Division.
Mr. Predmore succeeds
Mr. Clark in this capacity.
Both appointments are effective immediately.
Mr. Clark, whose home is in Des Moines,
Iowa,
became National Director of the Savings Bonds Division
on a volunteer basis in 1946.
Mr. Predmore has been serving recently as Acting
Director of the Sales Operations Branch in the Washington
offices of the U. S. Savings Bonds Division.
His new
appointment places him in charge of the over-all
management and direction of the operating functions
of the national program to promote the sale of Defense
Bonds to the American public.
TREASURY
DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Monday, April 7 , 1 9 5 2 ._____
S- 3 0 1 0
Secretary Snyder announced, today that he had designated
Vernon L. Clark as an Assistant to the Secretary, to serve in
this capacity as National Chairman of* the Defense Bond Program.
Mr. Clark Fill consult with and advise the Treasury on Defense*
Bonds sales promotion policies other than those which relate
to the management and day-to-day operations of the Savings
Bonds Division of the Treasury.
The Secretary at the same time designated Merrill L. Predmore
of Columbus, Ohio, as Acting National Director of the Savings
Bonds Division.
Mr. Predmore succeeds Mr. Clark in this capacity.
Both appointments are effective immediately.
Mr. Clark, whose home is in Des Moines, Iowa, became
National Director of the Savings Bonds Division on a volunteer
basis in 1946.
Mr. Predmore has been serving recently as Acting Director
of the Sales Operations Branch in the Washington offices of the
U. S. Savings Bonds Division.
His new appointment places him
m charge of the over-all management and direction of the
operating functions of the national program to promote the sale
of Defense Bonds to the American public.
Mr. Clark, a native of Nebraska, had early experience as
an advertising man and salesman.
Later, he became president of
the Des Moines Sawmill Company, and then vice-president and
sales promotion manager of the Penrod, Jurden and Clark Company
des Moines lumber concern.
He was recognized as a leading
executive in the lumber industry.
Mr. Clark has particjoated in
many public service activities.
In August, 1 9 4 1 , he was drafted
to oe I o w a ’s State Administrator of the Office of Production
Management as a dollar-a-year man.
In 1 9 4 1 the Treasury
epartment appointed him Iowa State Administrator of the Defense
payings Staff, and in 1 9 4 3 named him executive manager of the
lowa War Finance Committee.
In January, 1946, Mr. Clark accepted
PP^~.ntment as National Director of the U, S. Savings Bonds
nfV-tv!10? ’
capacity he had charge of oostwar operations
n L 2 SavinSs Bonds Division, including the Security Loan Drive
opportunity Drive, Independence Drive and Defense Bonds Drive
?Q
-
2
-
Mr. Clark's new designation establishes an office in
Washington paralleling that of State Chairman in the volunteer
State Savings Bonds organizations.
Mr. Predmore is an experienced executive and administrator.
His early training was in the field of agriculture.
After
graduating from Ohio State University in 1 9 3 8 with a degree in
Agriculture, he worked in sales and administration with an
Ohio milk cooperative.
Following that, he joined his father
in the management of their 1 6 0 -acre farm near Columbus, Ohio.
In 1 9 3 4 , Mr. Predmore joined the Resettlement Administration
in Columbus, Ohio, as District Supervisor.
He later represented
the Department of Agriculture in Ohio.
Mr. Predmore joined the
U. S, Savings Bonds Division as Deputy Director at Columbus,
Ohio, in 1 9 4 2 . He was appointed State Director of the
U. S, Savings Bonds activities in Ohio in May, 1 9 4 8 .
- o -
o
RELEASE, HœSUlO * » ! * » § ,
Tuesday, A
April
Tuesday,
pril 8, 1952.
The Secretary of the Treasury
last seeming that the tenders far
|l,to,000,003, er tha*ealK>ut»# of fM&f Treasury hills to be dated April 10 and to
mature ,*% 10, Ä
sere offered on April I, mere apernad at the lierai Besom
Backs m April ?*
The stalls of thi* i t » »
as follassi
Total applied for * |2,312,92?,000
Total accepted ♦ 1,1^01,8?2,000
(include« P03,83^,000 entered on a
Hjuritt awqi SOCCpted in
fall at the average prise attesa halos)
Average prisa
« 99*588/ Equivalent rate of discount appresi* 1*629$ per i «
ialine of accepted competitive hides
High
ïm
(10 percent of the eaaaunt hid for at Mm loe prise mas accepted)
fetal
total
District
topllxl lor
Aceptad
Bortón
I
t
Federal Basarse
13,280,000
1,527,808,000
8wr Torfe
30.718.000
99.298.000
18.113.000
31.695.000
Cleveland
Atlanta
280,8 27,W O
1 6 .586 .000
¿biotas
St# Louis
18.979.000
51,176,000
51.176.000
55.913.000
ffl. n rra n p tV H a
Saneas City
Sta Francisco
| K
O
82,312,927,000
38, 3» , »
750,988,000
U,là8,000
89 ,298,000
18,673,000
38.795.000
8l»7#m,OQû
Ä,751,000
10.779.000
11.076.000
18.113.000
77.680.000
,m aa
*1,101,872,000
RELEASE MORNING NEWSPAPERS,
Tuesday, April 8,1952._____
S-3011
The Secretary of the Treasury announced last evening that the
tenders for $1,400,000,000, or thereabouts, of 91~day Treasury bills
to be dated April 10 and to mature July 10, 1952, which were offered
on April 3* were opened at the Federal Reserve Banks on April 7*
The details of this issue are as follows*.
Total applied for - $2,312,927*000
Total accepted
- 1,401,872,000
Average price
(includes $203*834,000
entered on a non-competitive
basis and accepted in full
at the average' price shown
below)
- 99-508/ Equivalent rate o.f discount approx.
1 .6 2 9 $ pei1 annum
Range of accepted competitive bids:
- 9 9 . 6 1 5 Equivalent rate of discount approx.
1 .5 2 3 $ per annum
- 99.585 Equivalent rate of discount approx.
1.642$ per annum
High
Low
(1 0 percent of the amount bid for at the low price was accepted)
Federal Reserve
District _____
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
43*280,000
1 ,5 2 7 *8 0 8 ,0 0 0
30.748.000
99*292,000
1 8 ,1 7 3 * 0 0 0
34.695.000
2 8 0 ,8 2 7 * 0 0 0
46.586.000
1 2 ,9 7 9 * 0 0 0
5 1 *176,000
55*9^3*000
111,420,000
3 8 ,3 3 0 , 0 0 0
7 5 0 .9 8 8 .0 0 0
11.448.000
8 9 .2 9 2 .0 0 0
1 6 .6 7 3 . 0 0 0
32.795.000
247.977.000
34.751.000
10.779.000
4 3 .0 7 6 .0 0 0
48.143.000
___7 7 ,6 2 0 ,0 0 0
$ 2 ,312 ,927*000
0 O0
$1 ,4 0 1 ,8 7 2 , 0 0 0
$
TOTAL
Total
Accepted
$
treasury : department
WASHINGTON
FOR RELEASE
Thursday, April 5, 1952
Press Service
No« S-3012
Preliminary statistics from corporation income tax returns
for 1949, filed through December 31,1950, were today made public by
Secretary of the Treasury John ¥« Snyder* These data, prepared
under the direction of Commissioner of Internal Revenue John B.
Dunlap, will be published in the preliminary report, ftStatistics
of Income for 1949, Part 2 . 11
SUMMARY DATA
The number of corporation income tax returns for 1949, filed
through December 31, 1950, is 649,957, of Which 384,772 show net
income of $30,576,517,000, while 230,070 show deficit of $2,381,600,000,
and 35,115 have no income data (inactive corporations)*
The income tax liability reported on these returns is
$9,817 ,308,000, representing a decrease of 18 percent as compared with
the total for 1948* The amount of income tax does not take into
account any credit claimed for income and profits taxes paid to a
foreign country or United States possessione
A comparison of the 1949 returns with the 1948 returns is provided
in the following summary:
Corporation income tax returns, 1/
1949 and 1948:
Summary data .
(Money figures in thousands of dollars)
•
♦
Total number of returns
Returns with net income: 2/
Number
Net income 2/
Income tax 3/
Returns with no net income: 2/
Number
Deficit 2/
Number of returns of inactive
corporations
For footnotes, see pp. 9 - 10.
'1949
(p'reliminary)
649,957
384,772
30,576,517
. 9,817,308
:-Increase-or
I
■1948
: decrease (-)
.
Number of :Per~
! (complete) *amount
:cent
630,670
19,287
3
395,860
-11,088
36,273,250 -5,696,733
11,920,260 -2,102,952
-3
-16
-18
230,070
2,381,680
198,383
1,848,226
31,687
■ 533,454
16
29
35,115
36,427
-1,312
-4
Allowance of the net operating loss deduction reduced the net
income for tax computation by $196,304,000 on 39,709 returns filed
for 1949, as compared with $203,835,000 on 36,197 returns filed for
1948 » See note 22, page 10,
RETURNS INCLUDED
The returns included in this release are the corporation income
tax returns filed for the calendar year ending December 31, 1949, a
fiscal year ending within the period July 1949 through June 1950, and
a part year with the greater portion of the accounting period m 1949,
The data are from corporation income tax returns. Form 11205 life
insurance company income tax returns, Form 1120L 5 and mutual insurance
company income tax returns, Form lJ-,20M* Included for this purpose in
addition to returns filed by domestic corporations are^the returns
filed by foreign corporations engaged in business within the United
States, The complete report, Statistics of Income for 1949, Part 2,
will contain more detailed statistics from corporation income tax re
turns as well as data from personal holding company returns, Form 1120H,
The statistics are compiled from the returns as filed, prior to
revisions that may be made as a result of audit by the Bureau of Internal
Revenue and prior to changes resulting from carry-oacks, after the
returns were filed, Data from amended returns and -tentative returns are
not Included in the tabulations*
COMPARABILITY ÛF DATA
The provisions of the Internal Revenue Code as amended by the
Revenue Act of 1945 continue in effect for the calendar year 1949 and
fiscal years ending in the period J.rdy 1949 through June 1950*
Accordingly, the data for 1949 are generally comparable with those for 194b
CONSOLIDATED RETURNS OF AFFILIATED CORPORATIONS
For 1949 the number of consolidated returns is 1,684, of which 936
show net income amounting to $2,220,950,000, while 743 show deficit of
$187,596,000, and 5 have no income data (inactive corporations)* The
number of consolidated returns filed is only 0 *3 percent of all corpora
tion returns* However, the net- income reported in consolidated returns
is 7*3 percent of the net income of all returns showing net income, and
the income tax reported therein, amounting to $733,637,000, is 7*5
percent of the income tax for all corporations*
The privilege of filing a consolidated return is granted^to affili
ated domestic corporations which meet specified requirements in respect
to their connection through stock ownership wiln a common parent
corporation*
Data from the consolidated returns are shown as a separate
tabulation in table 1-A, p a g e 6 , and are combined with data from
other returns in the tabulations presented elsewhere in this release«
The following summary shows, by industrial divisions, the number of
consolidated income tax returns and the number of subsidiaries included
therein, for both the years 1949 and 1948,
Consolidated corporation returns, 1949 and 1948,
by industrial divisions, showing number of con
solidated returns and number of subsidiaries
(Excludes consolidated returns of inactive corporations)
■•
• Number of conî Number of sub
Industrial divisions 4/
: solidated returns : sidiaries 5/
• 1949 : 1948 : 1949 î 1948
All industrial divisions.......* *,
1,679
1,418 6,825
6,373
Agriculture, forestry,
ana ilShSPy*
11
10
56
50
Mining and quarrying«,.,..... .
79
71
229
237
Construction«« « , « « « « « • • « • • «
49
53
104
138
Manufacturing»o.
505
435 1,842
1,699
Public utilities..
185
175 1,236
1,166
381
289 1,162
985
Finance, insurance, real estate,
and lessors of real property«.«..
514
269 1,171
1,303
S6rVlC0S #O«O©0OC©0d©00©<5«©©G©©G©©4>
153
110 1 ,0 2 1
787
Nature of business not allocable..
4
6
4
8
For footnotes, see pp. 9-10.
INDUSTRIAL GROUPS
The distribution of the corporation income tax
major industrial groups for returns with net income
net income is shown in tables 1, 1-A, and 2, pages
Tables 1 and 2 include all returns, while table 1-A
solidated returns.
returns for 1949 by
and returns with no
5-7 , of this release«
includes only con
The industrial classification is based on the business activity
reported on the return. When multiple businesses are reported on a
return, the classification is determined by the business activity
which accounts for the largest percentage of total receipts. Therefore,
the industrial groups do not reflect pure industry classifications« It is
important to note that the industrial classification of a consolidated
return is based on the. predominant business of the affiliated corporations
f or which the consolidated return is filed« If it were possible to
segregate the income of the subsidiary or affiliated concerns, the data
for such concerns might fall in industrial divisions other than the ones
in which they are here included.
In analyzing the data compiled from returns classified under the major
group «Insurance carriers, and ^ f.^e-e,; it should be noted that life
insurance companies, in reporting their income for tax purposes, are
required to include only their investment income, i, e«, interest, dividends
-4 -
and rents. Beginning 1942, life insurance companies are allowed a
wreserve and other policy liability creditH equal to a flat pro
portion of net investment income less tax-exempt interest. This
credit, which is deducted after arriving at net income and is re
ported only on returns with net income, takes the place of the de
ductions for reserve earnings, deferred dividends, and interest paid,
which formerly were allowed in computing net income. An amendment
introduced by the Revenue Act of 1950 lowered the credit ratio for 1949
and 1950, pending further revisions in the method of taxing life
insurance companies.
For 1949 the credit ratio is .9355 and for normal tax purposes
the aggregate amount of reserve and other policy liability credit is
$1,484,349,523, of which $1,481,595,889 is reported on returns with
balance sheets. As an offset to this credit, adjustment for certain
non-life insurance reserves is reported in total amount of $12 ,393,734 ,
of which $12,327,656 is reported on returns with balance sheets. The
latter- adjustment, which is made in order to include in the tax base
the interest received on non-life insurance reserves, applies only to
life insurance companies deriving a portion of their income from con
tracts other than life insurance, annuities, or noncancellable health
and accident insurance.
HISTORICAL SUMMARY
A historical summary for each of the years 1940-1949 is presented
in table 3, p a g e 8 . In comparing the data throughout the 10-year
period, the various changes in law must be taken into consideration,
especially the discontinuance for 1934-1941 of the privilege of filing
consolidated returns for income tax purposes (except by railroad cor
porations and their related holding or leasing companies and, in 1940
and 1941, by Pan-American trade corporations) and the restoration of
this privilege beginning 1942.
Table 1. - Corporation income tax return«, 1/ 1949, by major industrial groups, for returns with net income
and returns with no net income: Number of returns, total compiled receipts, net income or deficit, and
dividends paid in cash and assets other than own stock; also, for returns with net income, the income tax
_— -----------------------------------Major industrial
groups 4/
ill industrial groups
Agriculture, forestry, and fishery
Farms and agricultural services
Forestry
Fishery
Mining and quarrying
Metal mining
Anthracite mining
Bituminous coal and lignite mining
Crude petroleum and natural gas
production
Monaetallic mining and quarrying
Construction
Manufacturing
Beverages
Food and kindred products
Tobacco manufactures
Textile-mill products
Apparel and products mads from fabrics
limber and wood products, except furniture
Furniture and fixtures
Paper and allied products
Printing, publishing, and allied
industries
Chemicals and allied products
Petroleum and coal products
Rubber products
leather and products
Stone, clay, and glass products
Primary metal industries
Fabricated metal products, exoept
ordnance, machinery, and transporta
tion equipment
Machinery, except transportation equipment and electrical
Electrical machinery and equipment
Transportation equipment, except motor
vehicles
Motor vehicles and equipment, except
electrical
Ordnance and accessories
Scientific instruments; photographic
equipment; watches, clocks
Other manufacturing
Public utilities
Transportation
Communication
Electric and gas utilities
Other public utilities
Trade
Wholesale
Commission merchants
Other wholesalers
Retail
Food
General merchandise
Apparel and accessories
Furniture and house furnishings
Automotive dealers and filling stations
Drug stores
Eating and drinking places
Building materials and hardware
Other retail trade
Trade not allocable
Finance, insurance, real estate, and
lessors of real property
Finance
Banks and trust companies
Credit agencies other than banks
Holding and other investment companies
Security and commodity-exchange
brokers and dealers
Insurance carriers and agents
Insurance carriers
Insurance agents and brokers
Real estate, except lessors of real
property other than buildings
lessors of real property, except buildings
Services
r
Hotels and other lodging places
Personal services
Business services
Automotive repair services and garages
Miscellaneous repair services, hand trades
Motion pictures
Jhmisement, except motion pictures
„.yttsr services, including schools
manure of business not allocable______ _
For footnotes, see pp,
9 _io.
Number Total
Total
compiled
Net
number
of
returns receipts 7/ income 2/
of re
turns 6/
Income
tax 5/
o net income 2/
Dividends
Dividends
laid in
Number Total
paid in
cash and
compiled
3f
cash and
Deficit Zj
assets
returns receipts 7(
assets
other than
other than
own stock
own stock
649,957 584,772 550,168,722 50,576,517 9,817,508 9,514,365 250,070
3,694
58,722
66,657
209,591
4,512
1,616,005
8,562
56,295
5,526
64,619
1,568,878
202,056
7,642
4,010
2,174
128
1,457
25,094
5,481
288
159
240
255
2,054
561
452
165
24,055
4,585
408,045
267,682
5,865,422
804,561
4,766
11,029
6S5
109,474
48,554
854,624
151,989
175
1,696
115
15,544
5,285
21,877
95
516,177
218
1,057
55,552
45,058
122,805
1,055
1,578,787
2,210
195,010
1,850
151,825
2,595,858
597,956
4,585
2,276
2,520
27,041
120,502
5,555
11,665
206
6,145
14,759
5,959
4,572
2,627
15,125
43,280,970
286,205
269,754
3,725
12,728
962,051
111,499
116,245
548,511
555f152
2,381,680
32,249
2d,538
1,042
1,669
108,784
10,416
4,448
25,480
60,494
160,027
1,245
980
225
40
12,587
2,412
2,552
2,096
5,457
54,485
110,156
59,202
1,189
717,978
68,585
8,676,151
200,106
591,250
16,290
68,517 167,554,041 15,542,017 5,497,255 4,785,674
107,185
171,910
471,046
1,786
4,957,057
546,790
428,965
7,056 25,644,861 1,181,586
95,055
5,200,425
260,259
97,599
114
219,465
9,459,265
275,575
756,805
5,892
42,714
81,822
259,516
7,615
6,125,972
105,711
78,964
519,599
5,565
5,562,450
51,624
54,565
155,115
1,955,255
2,581
154,247
214,666
585,745
1,898
5,002,550
145,024
5,858,845
557,700
194,540
8,547
750
9,456
48,955
1,581
4,265
85
2,541
6,985
2,454
1,727
888
4,259
50,664
1,241,459
19,812,782
497,425
6,266,668
54,795
1,565,451
1,672,547
669,875
557,855
465,226
595,156
7,946
75,757
1,095,151
57,912
107,860
1,526
87,558
88,142
52,150
25,715
28,507
41,056
510
2,857
66,608
1,102
7,960
64
8,746
3,185
1,987
860
1,458
1,978
7,790
704
665
2,959
4,526
5,085
9,792
4,275
428
427
1,620
2,750
1,775
5,798
12,491,358
17,528,579
2,875,770
2,420,065
5,758,426
15,740,551
7,655,478
1,715,658
1,169,222
164,597
114,010
520,957
1,544,828
765,548
606,108
544,484
58,596
40,658
190,574
497,810
279,287
587,784
845,516
56,615
56,661
143,527
551,690
199,509
5,240
258
221
1,297
1,474
1,224
5,806
845,515
663,574
193,506
502,253
232,166
897,854
925,806
61,154
50,929
11,871
26,297
18,419
49,721
87,068
9,595
1,920
991
2,296
459
6,462
5,728
10,095
5,607
12,516,574
1,454,196
551,508
364,476
4,252
1,119,427
96,685
5,981
5,146
1,152
1,656
526
7,689,844
5,568,648
744,086
251,747
270,251
85,875
222,771
90,748
1,411
554
5Ì5,055
485,946
47,518
57,018
1,844
5 ,426
1,588
695
14,406,605
2,112,098
790,077
529,047
651
540,449
75,500
655
5,420
68,505
6,289
64,525
51
785
1,713
129,853
504
17,653
•*
475
67,854
5,250
107,555
501,965
5,676,172
5,285
14,810 26,199,477 5,024,045 1,056,198 1,317,550 11,098
561,849
8,506
447,855
10,274 15,714,956 1,296,100
1,768
237,124
156,452
572,006
2,415
5,424,906
705,748
276
1,524,254
461,774
6,897,649
968
748
12,829
51,705
10,119
1,155
161,966
946,753 74,705
129,520 116,457,145 4,587,406 1,492,595
572,285
25,581
575,979
42,546 55,759,552 1,694,825
4,262
54,996
140,744
44,112
5,441
2,988,920
557,287 21,519
551,867
56,906 52,770,452 1,554,081
551,041 45,160
858,775
75,652 54,105,286 2,449,197
5,808
56,455
115,290
512,969
5,257 11,820,096
2,589
278,567
525,096
880,480
5,095 14,111,411
6,215
54,255
58,960
172,951
4,571,404
9,745
5,766
11,822
29,462
97,065
2,017,865
6,497
6,105
69,662
198,549
586,696
16,756 12,704,457
1,624
12,427
15,855
45,759
1,208,115
5,556
8,555
11,452
57,148
17,102
1,559,155
6,612
2,915
28,588
44,655
148,628
2,766,608
8,960
8,029
25,548
42,551
147,521
5,746,215
15,178
5,964
77,843
45,409
243,584
6,592,507
11,542
49,690
1,750,758
1,010,579
5,525,919
116,587 16,182,500
857,095
2,524,271
2,092,880
527,078
75,202
51,111
15,854,124
8,125,009
615,505
7,509,704
6,553,525
666,244
652,940
904,260
515,099
1,552,850
501,118
699,799
568,557
912,476
1,155,792
865,559
67,050
150,282
125,981
17,554
4,070
2,897
547,048
257,442
24,741
252,701
247,296
16,555
21,556
41,469
24,015
50,791
6,412
51,917
15,811
58,970
42,510
241,952
1,660
12,187
11,424
585
226
154
29,524
11,085
1,560
9,725
14,511
258
7,907
1,046
1,522
1,264
562
529
717
1,106
5,950
50,266
64
1,850
11,117
27,450
19,592
4,466
1,507
2,085
207,955
69,571
9,985
59,588
120^617
9,295
7,570
16,166
10,405
25,241
5,240
15,225
11,989
21,510
17,965
174,057
25
1,008
180,401
1,727,660
14,962
186,778
58,955
14,992
14,651
7,764
1,546
29,489
14,255
'9,128
5,285
845
6,505,245
5^766^917
964,850
1,425,149
148,549
2,282,950
1,051,541
295,141
929,224
29,224
494,975
510,677
98,199
78,752
7,565
1,525,192
464,411
90,592
761,751
6,658
8,568
611
4,910
2,228
619
156,617
42,255
58,944
19,756
55,702
91,087
15,297
25,107
47,104
5,579
15,890
5,459
4,126
8,142
183
10,166
2^556
7,610
118,706
7,499
2,158
5,541
76,010
6,709,986
6,550,697
579,289
2,896,984
2,555,770
2,295,155
60,615
741,256
261,418
244,050
17,588
201,925
197,550
178,778
18,552
158,152
2,415
557
2,078
56,605
175,299
119,457
55,842
525,118
17,761
12,272
5,489
125,145
1,002
865
157
12,517
5,589
6,252
57,555 29,468
3,584
6,287
6,689
11^950
11,448
6,067
4,589
2,488
2,411
1,190
3,558
5,811
2,822
7,555
7,682
5,070
902
16,050
272,285
7,556,451
1,267,249
1,191,895
1,827,057
295,286
205,081
1,751^826
505,054
555,025
85,570
147,965
682,510
115,486
78,044
155,279
27,911
14,145
182,756
62,262
48,447
9,420
52,065
225,745
57,904
22,765
51,076
7,911
4,545
60,682
25,955
14,908
2,711
92,104
176,740
22,875
14,588
57,082
5,518
1,274
75,265
15,055
7,485
1,758
2,504
24,510
2,547
4,922
4,757
1,776
1,174
1,967
4,008
5,579
5,579
50,525
1,729,144
264,255
516,611
552,179
86,292
65,845
515,593
178,909
171,660
25,575
9,941
124,911
18,944
16,048
25,059
5,445
4,849
22,770
19,188
14,628
7,586
857
5,825
170
272
849
148
65
764
1,171
384
1*150
SO
55
able U .
Consolidated corporation income tax returns, \j 1949, 1* major Industrial «roups, for returns with net income and returns with no net lnoomei N u » W
return(Twith'net"incone^1^ « ^incowe
receipts, net income or deficit, and dividends paid in cash and assets other than a m stock} also, for
Major industrial groups 4/
1 All Industrial groups
2 Agriculture, forestry, and fishery
Farms and agricultural services
4
Forestry
5
Fishery
6 Mining and quarrying
7
Metal wining
8
Anthracite wining
9
Bituminous coal and lignite wining
10
Crude petroleum and natural gas
production
Nonmetallic mining and quarrying
Construction
13 Manufacturing
14
Beverages
15
Food and kindred products
16
Tobacco manufactures
17
Textile-mill products
18
Apparel and products made from fabrics
19
Lumber and wood products, except
furniture
Furniture and fixtures
Paper and allied products
Printing, publishing, and allied
industries
23
Chemicals and allied products
24
Petroleum and coal products
25
Rubber products
■26
Leather and products
27
Stone, clay, and glass products
28
Primary metal industries
29
Fabricated metal products, except
ordnance, machinery, and transportation
equipment
Machinery, except transportation
equipment and electrical
31
Electrical machinery and equipment
32
Transportation equipment, except motor
'vehicles
33
Motor vehicles and equipment, except
electrical
34
Ordnance and accessories
35
Scientific instruments; pihotographic
equipment; watches, clocks
56
Other manufacturing
37 Public utilities
38
Transportation
39
Communication
40
Electric and gas utilities
41
Other public utilities
42 rrade
Wholesale
43
44
Commission merchants
45
Other wholesalers
Retail
46
47
Food
48
General merchandise
49
Appjarel and accessories
50
Furniture and house furnishings
51
Automotive dealers and filling stations
52
Drug stores
53
Eating and drinking places
54
Building materials and hardware
55
Other retail trade
56
Trade not allocable
57 rinance, insurance, real estate, and lessor«
of real property
58
Finance
59
Banks and trust comjoanles
60
Credit agencies other than banks
61
Holding and other investment companies
62
Security and commodity-exchange brokers
and dealers
63
Insurance carriers and agents
64
Insurance carriers
65
Insurance agents and brokers
66
Real estate, except lessors of real
property other than buildings
67
Lessors of real property, except
buildings
68
lervices
69
Hotels and other lodging places
70
Personal services
71
Business services
72
Automotive repair services and garages
73
Miscellaneous repair services, hand
trades
74
Motion pictures
75
Amusement, except motion pictures
76
Other services, Including schools
77
ature of business not allocable__________
S
11
J
12
20
21
22
30
'or footnotes, see pp. 9-10.
number
of con
Number
Number
Total
soli
of re of sub compiled
dated
sidi
turns
re
aries 5/ receipts
turns 6/
1,684
11
10
1
79
11
5
20
55
986
4
4
44
4
1
11
21
Tj
4,856 27,273,775 2,220,950 733,637
58
490,832
87,199 28,579
58
490,832
87,199 28,579
Dividends
Dividends
paid in
Number
paid in
Number
Total
cash and
of
sub
of re
compiled
Deficit 2/ cash and
assets
assets
turns sidi
receipts
7/
other than
aries S/
other than
own stock
1,065,915
55,516
35,516
743
7
6
1,989
18
11
2,873,026
2,854
2,542
187,396
395
371
43,176 13,744
8,764
2,907
2,484
918
4,066
1,562
27,518
8,155
21,244
2,853
2,211
2,344
13,797
1
55
7
4
9
14
7
91
12
10
52
36
312
101,115
5,945
57,265
19,968
37i920
24
7,870
'480
1,039
1,346
5^000
8
9,625
544
202
66
168,493
15,890
5,875
1,287 16,941,560 1,245,722 410,601
28
25,854
i;i37
257
134
1,059,918
59,716 25,818
—
—
14
49,579
2,045
774
52
19,802
428
159
14
29,523
2,584
864
39
5,606
599,985
218
14,888
1,536
73
455
1
24
232
6
21
2
15
20
7
1
38
555
13
85
6
41
26
16
19
28,544
1,512,440
35,165
215,142
2,608
103,048
57,277
28,768
S
1,592
114'OK)
2,406
4,050
44
4,442
1,300
1,660
178
417
7,400
66
524
6,595
2
5
16
3
8
40
13,875
15,882
36,480
1,857
487
1,473
45
88
52,703 19,712
577,434 156,407
302
115
483
182
1,326
520
443,858 168,685
2,027
772
16,292
387,995
20
6
52
23
233,122
69,431
16,004
7,046
5,816
'395
16,194
4,296
28,565
50,316
511
707
1,982
3",790
163
96
133
138
7
26
59
58
.
528,365
55,112
52,518
99,543
311,767
8
50
505
17
41
2
25
32
19
7
25
271
11
19
6
12
46
4
7
30
4
18
91
6,749
42,264
299,961
52
21
1
12
14
26
30
52
15
1
7
8
18
12
159
325
1
9
11
208
17
509,296
8,896,579
4,409
15,754
23,939
4,624,584
43,225
9
12
12
Net
Income
inocme 2/ tax 3/
466
1,181
19,645
—
•
38
225
138,258
718
m
«
5
6
8
18
28
15
16
S3
_
26,B>5
25
2,857
580
770
1,675
590
10,966
158
295
1,685
' 77
51
40
20
45
558,894
51,742
20,632
12,092
20
40
46,818
4,951
868
29
19
14
8
41
59
189,525
595,906
7,941
13,798
2,550
4,532
611
17,997
15
11
39
14
47,576
89,835
5,223
8,838
384
12
5
11
34,456
1,604
655
100
7
22
217,645
45,905
1
14
1
7
2
55
5,358
64,184
234
1,838
86
695
7
934
34
186
128
9
45
6
382
161
21
140
193
16
17
37
15
29
10
25
11
33
28
314
19
116
70
5
38
3
198
86
15
73
97
9
9
20
9
17
5
10
5
13
15
181
29
1,052
484
37
380
151
603
172
19
153
408
13
125
96
15
22
42
34
7
54
23
811
42,221
5,675,583
3,711,363
21,663
1,916,310
26,227
1,262,480
564,509
27,064
557,445
683,520
66,429
239,834
78,605
14,531
41,976
84,787
59,645
9,494
88,019
14,651
1,171,578
5,234
1,213
512,585 169,011
155,930 50,724
1,418
510
351,061 116,827
4,174
950
38,853 13,956
22,450
8,329
986
297
21,444
8,032
15,988
5,469
1,109
121
6,944
2,537
1,759
685
208
46
1,970
627
812
304
1,741
659
207
48
1,238
444
435
158
185,780 59,690
585
271,597
52,577
236
217,738
1,046
14,123
6,038
224
5,814
7,864
61
6,009
547
64
67
163
795
2
156
221
64,586
82
15
55
29
5
46
10
22
14
*
510
61
171
78
“
573,477
78,665
196,606
98,206
-
81,154 26,554
12,861
3,692
50,765 19,742
17,550
2,920
-
37
22
15
186
26
19
7
101
97
80
17
389
727,125
709,230
17,895
64,583
90,135 29,277
86,695 28,504
5,440
773
11,056
2,855
9
8
15
6,393
153
22
11
29
9
5
96
16
5
22
5
1
860
71
19
58
9
2
1,054,718
51,447
15,254
45,652
2,614
8,264
50
15
12
4
50
9
8
1
654
55
12
1
887,180
22,261
4,046
1661
3,435
1,204
7
11
5,617
1,632
11
15
69
57
4
5
5
183
75
8
16,980
617,401
577,239
22,856
17,202
104
598,616
112,998
4,998
108,000
327,304
4,968
7,549
7},995
7,401
6,803
155,888
47,594
1,884
23,422
158,514
46,874
1,722
50,878
29,112
714
840
212
10,964
4,781
157
4,644
4,846
256
132
825
217
208
1,667
976
73
492
1,337
17,260
47
95
7
8
17
6
11
5
15
6
20
13
133
24
204
165
6
25
12
559
126
10
116
408
25
13
178
20
15
72
38
7
42
25
560
59,496
7,360
14,955
17,203
-
56
5
13
IS
5
62
9
27
18
8
25,950
13,447
2,980
477
9,026
10,542
8,472
801
538
731
885
20,619
17,659
2,980
5,147
11
5
8
85
19
5
16
278
5,758
5,572:
2,186
15,167
975
869
104
5,718
110
104
6
1,324
1
1
91,744 52,181
2,379
8,725
571
215
2,528
887
61
18
583
154
53,258
2,895
125
235
27,757
728
65
49,397
586
24
77,390
1,875
211
3
676
-
-
e r
19
8,065
8,0 6 2
2,734
177
174
578
47
37
7
300
140
-
43
1,979
1,070
755
124
4
”
77
27
-
57
6
6
7
4
4
161
6
10
15
4
6
165,062
4,205
2,745
1,607
2,257
1,049
4,422
552
131
105
116
111
418
20
6
4
3
101
14
5
3
144,772
7,281
1,146
120
3,396
200
35
5
561
5
5
15
10
7
Table 2« - Corporation incase tax returns 1 / 1949, bynajor industrial groups, for returns with net incase and returns with
no set incase: Dividends received en stoic
m k of dome tie corporations and interest received on Governsent obligations
Major industrial groups
4/
ill industrial groups
»prHculture, forestry, and fishery'
Pams and agricultural services
Forestry
Fishery
Mining and quarrying
Metal wining
Anthracite M i n i n g
Bituminous coal and lignite Mining
Crude petroleum and natural gas production
Nonnetallio mining and quarrying
Construction
Manufacturing
Beverages
Food and kindred products
Tobacco manufactures
'fertile-mill products
Apparel and products made frost fabrics
lumber and wood products, except furniture
Furniture and fixtures
Paper and allied products
Printing, publishing, and allied
industries
Chemicals and allied products
Petroleum and coal products
Rubber products
Leather and products
Stone, olsy, and. glass products
Primary metal industries
Fabricated metal products, except
ordnance, machinery, and transportation
equipment
Machinery, except transportation equipment and electrical
Electrical machinery and equipment
Transportation equipment, except motor
vehicles
Motor vehicles and equipment, except
eleotrical
Ordnance and accessories
Scientific instruments; photographic
equipment; watches, clocks
Other manufacturing
Public utilities
Transportation
Communication
Electric and gas utilities
Other public utilities
Trade
Wholesale
Commission merchants
Other wholesalers
Retail
Food
General merchandise
Apparel and accessories
Furniture and house furnishings
Automotive dealers and filling stations
Drug stores
Eating and drinking places
Building materials and hardware
Other retail trade
Trade not allocable
Finance, insurance, real estate, and lesson
of real property
Finance
Banks and trust companies
Credit agencies other than banks
Holding and other investment companies
Security and coranodlty—exchange brokers
and dealers
Insurance carriers and agents
Insurance carriers
Insurance agents and broken
Real estate, except lesson of real
property other than buildings
°f real Property, except buildings
Hotels and other lodging places
Personal services
Business services
Automotive repair services and garages
Miscellaneous repair services, hand trades
Motion pictures
*®usement, except motion pictures
H a w aT 71068» including schools
Eigture of hnaineaa not allocable
Returns with nst ineerne 8/
interest received on Government obligations Dividends
(lass amortisable bond premium)
received on
Dividends
received.am
stock of
domestic
corpora
tions 8/
Total
2,159,580
4,714
4,501
178
57
80,645
19,717
8,417
6,555
45,887
2,269
7,868
667,750
11,046
27,147
5,165
24,661
2,168
6,498
1,525
12,059
21,554
1,872,664
1,08C
953
111
24
9,027
5,941
560
2,144
1,949
661
1,847
107,691
1,825
5,545
22E
7,215
1,182
2,500
877
4,746
4,658
1,475,507
745
652
89
24
8,650
5,851
556
2,011
1,895
557
1,584
100,973
1,671
4,977
129
6,722
1,069
2,315
817
4,445
4,019
210,363
39'
195
2
189,196
144
124
2C
195
202
8<
119,515
272,057
10,484
1,810
8,817
40,502
10,742
9,755
9,083
1,454
684
5,225
15,704
4,475
9,127
8,607
1,432
652
2,990
15,459
4,090
187
245
15
27
145
157
229
U
25
86
54
48
58
5,515
47
278
55
160
79
72
20
159
596
Total
Subject
Wholly
Wholly
surtax taxw
taxable 9/ to
only 10/ exempt 31/
22,806
637
620
8
9
1,199
259
8
665
283
4
167
6,755
128
752
16
545
931
248
179
188
551
25,331
154
124
19,565
126
116
1,170
2,576
474
58
84
247
62
25
130
5,651
87
214
574
45
72
184
57
16
317
5,528
85
195
85
10
12
5(
17
5
172
3LI
502
185
157
40
155
247
475
180
149
59
121
178
25
92
86
154
475
67
50
168
78
1,555
'314
440
55
18
84
72
225
246
419
48
17
82
64
199
217
25
24
59
67
20
28
205
5,405
307
290
46
555
54
115
40
144
215
459
253
19,657
8,777
7,997
407
57!
504
482
435
27,580
6,851
4,692
2,670
4,552
2,409
76
64
264
197
102.
94
150
138
116
154
52,205
18,150
17,652
577
123
91
56
52
195
5,846
270
785
225
754
25
25
20
26
9
1
19
19
4,110
191,425
94,417
3,915
91,022
2,071
82,421
40,705
10,225
50,480
36,765
1,640
15,975
6,664
1,255
4,588
2,949
972
2,172
2,770
4,955
1,079,449
1,595
27,526
16,979
657
9,546
164
319,998
7,888
1,555
6,555
31,046
463
6,089
1,155
645
1,096
145
275
495
687
1,064
1,700,760
1,275
22,085
15,106
. 577
6,265
159
17,722
7,156
1,256
5,900
9,696
425
5,319
1,122
515
1,051
121
255
472
640
870
1,517,452
74
1,458
1,380
23
29
6
657
255
51
204
550
21
185
19
16
54
31
9
13
22
52
204,185
46
8,805
495
37
5,254
' 19
1,659
477
46
453
1,020
19
785
34
314
31
11
XI
10
25
142
179,125
174
5,981
5^029
828
319
5
2,454
1,091
207
884
705
55
155
90
55
80
31
138
1,716
'825
447
459
7
1,524
815
133
682
655
32
91
148
67
45
6
845,192
17,446
17,460
805,185
7,101
1,154,575
1,315,245
5,790
21,248
14,292
852,675
799,422
5,456
17,920
9,897
190,480
186,559
120
1,210
2,631
204,211
199,658
4,575
26,818
552,548
551,954
414
9,566
472,062
471,689
375
8,631
5,228
24,108
4,785
1,564
4,271
4,850
1,214
504
845
128
27
1,590
566
578
4,084
4,075
1,394
259
754
326
24
1,041
558
559
41
225
15
11,884
984
556
-_________ 79
For footnotes, ses pp. 9_io.
Wholly
Subject
Wholly
demestio
taxable 9/ to surtax tax*
corpora
only 10/ exempt 31/
tions 8/
Sébums with no net income 2/
Interest received on Government obligetiona (lass amortisable bond premium)
31
g
30
21
16
55
30
11
1
5
127
1,622
'748
450
8
55
29
6
59
46
11
5
1,451
764
72
39
2
21
12
70
32
209
145
640
74
6,931 15,064
634
601
28
85
159
65
45
4
64
51
144
66
12,082
1
8
751
2,251
151,420
127,284
254
2,118
1,784
4,521 10,865
365
7,550
74
466
5,625
1,888
659
-961
8,851
5,968
381
1,719
765
565
258
44
56
45
1,671
1,544
41
155
153
15,521
15,297
24
514
46,965
46,948
17
621
1,459 .2,950
1,262
2,904
177
26
892
1,189
2,127
2,305
22
1,067
531
307
4
58
492
492
70
325
8
31
69
1
5
7
6
18
117
652
12
54
40
1
57
469
331
58
45
6
2
ISO
59
60
39
51
9
1
5
15
4
88
1
_________
AS
542
2
21
25
79
659
46
15
89
2
4
28
87
588
________ _ 85
80
588
321
59
46
19
2
215
60
66
SO
....
39
25
2
6
5
2
2
2
9
9
2
4
2
1
64
85
1
4
IS._________1&
2
Table 8. - Corporation return«, 1/ 1940-1949*
Historical suamary of selected items from income and declared value excess-profits tax returns, and
excess profits tax returns
*
KCP'S
INCOME AND DECLARED VALUE EXCESS-PROFITS TAX RETURNS
All income and declared value excess-profits
returns*
Number (excluding returns of inactive
corporations)
Total compiled receipts 7/
Net income less deficit 2/
Total tax liability
Income tax
Declared value excess-profits tax.
Excess profits tax 12/
Dividends paid in casITand assets
other than own stock
Returns with net income* 2/
Number
Total ccapHed receipts if
Net income 2/
Total tax liability
Income
Declared value excess-profits tax
Excess profits tax 12/
Dividends paid in casITand assets
other than own stock
Returns with no net income* 2/
tax
Number
21
Total compiled receipts 7/
Deficit 2/
Dividends paid in cash and assets
other than own stock
Returns of inactive corporations*
Number
614,842
594,245
551,807
491,152
421,125
412,467
420,521
442,665
468,906
473,042
595,449,692
28,194,857
9.817.508
9.817.508
410,965,648
54,425,024
11.920.260
11.920.260
567,745,578
51,422,728
10.981.482
10.981.482
9,674,592
9,586,475
8,565,046
288,954,237
25,192,886
8,874,840
8,606,695
(16)
268,145
7,496,755
255,447,755
21,138,957
10,794,750
4,182,705
55,059
6,557,006
6,080,766
262,200,551
26,504,481
14,884,050
4,355,620
98,668
10,431,762
6,057,045
249,682,495
27,819,245
15,925,582
18/4,479,166
154,934
11,291,483
5,727,676
217,680,512
25,051,611
12,256,596
18/4,557,728
66,854
7,851,814
5,607,085
190,432,017
16,532,542
7,167,902
19/5,744,568
64,149
5,559,186
6,700,787
148,256,787
8,919,429
2,548,546
20/2,144,292
21/30,744
“"573,511
6,088,781
584,772
550,168,722
50,576,517
9.817.508
9.817.508
595,860
579,509,471
56,275,250
11.920.260
11.920.260
582,551
543,275,851
53,581,291
10.981.482
10.981.482
9,514,565
9,278,856
8,222,121
559,510
265,597,448
27,184,592
8,874,840
8,606,695
(16)
268,145
7,241,416
503,019
259,045,611
22,165,806
10,794,750
4,182,705
55,039
6,557,006
5,917,615
288,904
252,962,944
27,125,741
14,884,050
4,555,620
98,668
10,451,762
5,968,526
283,755
240,766,898
28,717,966
15,925,582
18/4,479,166
154,934
11,291,483
5,651,023
269,942
206,160,215
24,052,358
12,256,596
18/4,557,728
66,854
7,851,814
5,490,167
264,628
175,181,820
18,111,095
7,167,902
19/5,744,568
64,149
3,559,186
8,518,177
220,977
125,180,472
11,205,224
2,548,546
20/2,144,292
21/30,744
575,511
5,888,325
250,070
45,280,970
2,581,680
160,027
198,585
31,656,177
1,848,226
107,659
169,276
24,471,727
1,958,563
142,925
151,842
25,556,789
1,991,706
255.517
118,108
16,402,141
1,026,850
168,152
123,563
9,257,587
819,260
88,517
136,786
8,915,595
898,722
96,655
172,723
11,520,297
1,000,743
116,918
204,278
15,250,197
1,778,555
182,610
252,065
23,056,516
2,285,795
200,457
56,427
55,876
55,611
38.335
54,529
§5.378
37,012
40,160
45,741
21
52,097
55,912
14,165,567
80,471,652
8,567,927
17/12,955,510
(See line 15 above)
22,806,885
14,552,878
54,002
17,084,370
10,494,667
42,412
12,072,516
6,354,864
15,440
,997,957
911,605
U
SS
55,115 I
17
19
EXCESS PROFITS TAX RETURNS
Taxable excess profits tax returns* 12/
Number
Excess profits net income 15/
Adjusted excess profits neVincmas 14/
Excess profits tax
11,055
2,191,222
1,474,490
68,202
For footnotes, see pp. 9-10.
O*
9MBep>4eiDH'OitHP’
H
ct-
Cl
I—• p. O.
to d* *# c+ c** H>
CD H * J » Sr
—’
C** O
c*
c-<D jr
*3 t—* 5 » j2j
cf* 0 H* 1
—1o î g J
O CiQ.□ P o TTm
24
-*
Footnotes for tables in this release
]/ The information contained in this release is
„«»rviied from the returns as filed, prior to re
visions that may be made as a result o f a u ^ t by the
Sreau of Internal Revenue. Data are likewise prior
hTanv other changes made after the returns were
filed! as the result of carry-backs and, for 1940
through 1945, relief granted under section 722 of
the intern”1 Revenue Code, recomputation of amorti
zation of emergency facilities, or the renegotia
tion of war contracts. The effect of renegotiation
settlements reached after the returns were filed is
shown in special tabulations which appear in the com
pete reports, "Statistics of Income, Part 2," for
each of the years 1942 through 1945.
2/ "Net income" or "Deficit" for 1946-49 is the
difference between the total income and the total
deductions reported, exclusive of the net operating
loss deduction; for 1944 and 1945 is the amount re
ported for declared value excess-profits tax computa
tion. adjusted by excluding net operating loss
deduction and adding Government interest subject to
surtax only and excess of net long-term capital gain
over net short-term capital loss; for 1940-45 is the
amount reported for declared value excess-profxts
tax computation, adjusted by excluding net operating
loss deduction. Net income or deficit as here de
fined is the basis for classification of the returns
by those with net income and those with no net income«
3/ "Income tax" consists of normal t^x, surtax,
and alternative tax reported in lieu of normal tax and
surtax where the income includes an excess of
net long-term capital gain over net short-term
capital loss, if and only if such tax is less than
the normal tax and surtax. Tabulated with the in
come tax for returns with net income is a small
amount of tax reported oh returns with no net in
come, under the special provisions applicable to
certain mutual insurance companies, other than life
or marine.
y
The industrial classification is based on the
business activity reported on the return* When
multiple businesses are reported on a return, the
classification is determined by the business activity
, which accounts for the largest percentage of total
receipts. Therefore, the industrial groups do not
reflect pure industry classifications.
5/ "Number of subsidiaries" is the number of
affiliated corporations which together with the comp*
mon parent corporation file a consolidated corporaI tion income tax return.
6/ Total number of returns includes returns of
I inactive corporations.
l j
"Total compiled receipts" consists of gross
sales (less returns and allowances), gross receipts
from operations (where inventories are not an incomedeteimining factor), all interest received on
Government obligations (less amortizable bond pre
mium), other interest, rents, royalties, excess of
net short-term capital gain over net long-term
capital loss, excess of net long-term capital gain
over net short-term capital loss, net gain from
sale or exchange of property other than capital
assets, dividends, and other receipts required to be
included in gross income. "Total compiled receipts*
excludes nontaxable income other than tax-exempt
interest received on certain Government obligations.
8/ "Dividends, domestic corporations" consists
of dividends received from domestic corporations
subject to income taxation under chapter 1 of the
Internal Revenue Code. This item is reported in
column 2, schedule E, page 2, Form 1120, and is the
amount used for computation of the dividends re
ceived credit.
9/ "Interest received on Government obligations,
wholly taxable" consists of interest on Treasury
notes issued on or after December 1, 1940, and obli
gations issued on or after March 1, 1941, by the
United States or any agency or instrumentality there
of, reported as item 9(c), page 1, Form 1120.
10/ "Interest received on Government obliga
tions, subject to surtax only" consists of interest
on United States savings bonds and Treasury bonds
owned in principal amount of over $5,000 issued
prior to March 1, 1941, reported as item 9(a),
page 1, Form 1120; and interest on obligations of
instrumentalities of the United States (other than
obligations of Federal land banks, joint stock
land banks, and Federal intermediate credit banks)
issued prior to March 1, 1941, reported as item 9(b),
page 1, Form 1120.
11/ "interest received on Government obliga
tions, wholly tax-exempt" consists of interest on
obligations of States, Territories, or political sub
divisions thereof, the District of Columbia, and
United States possessions; obligations of the United
States issued on or before September 1, 1917; all
postal savings bonds; Treasury notes issued prior to
December 1, 1940; Treasury bills issued prior to
March 1, 1941; United States savings bonds and
Treasury bonds owned in principal amount of $5,000
or less issued prior to March 1, 1941; and obli
gations issued prior to March 1, 1941, by Federal
land banks, joint stock land banks, and Federal in
termediate credit banks. Interest from such sources
is reported under item 19(a), (b), and (c) of
schedule M, page 4, Form 1120.
12/ The excess profits tax shown is that inqposed
by secfeLon 710 of the Internal Revenue Code as
amended and should not be confused with the declared
value excess-profits tax. Effective January 1, 1946,
the corporate excess profits tax was repealed. For
1946 the excess profits tax data shown are from
excess profits tax returns for fiscal years ending
in the period July through November 1946, and part
years beginning in 1945 and ending in 1946 with the
greater part of the accounting period in 1946. (For
fiscal years beginning in 1945 and ending in 1946,
the excess profits tax is retained for the 1945 por
tion of the year. In such cases the tax is de
termined by first computing a tentative tax under the
provisions applicable to taxable years beginning on
January 1, 1945. The tentative tax is then prorated
on the basis of the number of days in the taxable
year before January 1, 1946.) As in 1945, the amount
shown is the excess profits tax less the 10 percent
credit.
The allowance of the current credit of 10
percent against the excess profits tax in lieu of
the post-war refund and the credit for debt retire
ment was provided by the Tax Adjustment Act of 1945
for taxable years beginning after December 51, 1945,
but this change was not taken into account in the
1944 data for the reason that a majority of the re
turns for 1944 were filed previous to July 51, 1945,
-
footnotes for tables
the date of the Tax Adjustment Act of 1945, and ac
cordingly shew post-war refund and credit for debt
for 1944, as in 1942 and 1945,
,.g||
of *s»cea profits tax shown in table 8 is
t£® m r n 'm profits tax liability reported on corpora
tion ike® ss profits tax returns, less the credit for
debt Switirement and the net post-war refund»
The amounts for the years 1943 through 1946 are
before the amount deferred under section 710(a) (6)
(relating to abnormalities under section 722) and
after any adjustments reported on the returns under
other relief provisions. The amount for 1942 is
after both the section 710(a) (5) deferment and any
adjustments reported on the returns under other re
lief provisions.
The amount for 1941; shown in table 5* is the
excess profits tax deduction (item 55, page 1, Form
1120 for 1941) allowed in. the computation of normaltax net income, except that for fiscal years beginning
in 1940, with the greater part of the accounting
period in 1941, there is tabulated the amount of ex
cess profits tax liability (item 52, page 1, Form
1121 for 1940).
The amount for 1940, shewn in table 5, is
tabulated from corporation excess profits tax returns
for the calendar year 1940 and for fiscal years
beginning in 1940 with the greater part of the ac
counting period in 1940 (item 52, page 1, Form 1121).
The excess profits tax provisions apply only to
taxable years beginning after December 51, 1959.
rat&rment. Thus,
15/ The excess profits net income for 1942
through 1945 is obtained from the noimal—tax net
income (computed without allowance of credit for
income subject to excess profits tax and without
allowance of dividends received credit) by making
certain adjustments, consisting principally of the
exclusion of long-term capital gains and losses,,
and dividends received from domestic corporations.
For returns with taxable year beginning in 1940,
the excess profits net income is obtained from the
normal-tax net income by making certain adjustments,
consisting principally of the deduction of income and
income defense taxes for the taxable year, and the
exclusion of (1) dividends received from domestic
corporations (this adjustment refers to that portion
of dividends not deducted as dividends received
credit in computing normal-tax net income), and (2)
gains or losses from sale or exchange of capital
assets (depreciable or nondepreciable) held for more
than 18 months. For returns with taxable years
beginning in 1941, the income tax is not deducted in
arriving.at excess profits net income, instead, the
excess profits tax is allowed as a deduction in the
computation of normal-tax net income. (The starting
point, in the computation of excess profits net income
for 1941 remains the normal-tax net income computed
without deduction of excess profits tax.)
14/ The adjusted excess profits net income, as reportea on Form 1121, is the excess profits net income
less the sum of the specific exemption, excess profits
credit, and unused excess profits credit adjustment.
For part year returns, the amounts of excess profits
net income and adjusted excess profits net income
have been placed on an annual basis.
1 0 -
'■■ II
----- ---
16/ The declared value excess-profits tax is
repealea, effective with respect to income-tax tax
able years ending after June 30, 1946.
17/ The total amount of
net income for 1944 does not
$6 ,579,255 reported on 2,556
tax returns with no adjusted
adjusted excess profits
include a deficit, of
taxable excess profits
excess profits net
com.
18/ »Income tax" for the years 1942 and 1945 consists of normal tax, surtax, and for taxable years be«
ginning after December 51, 1941, alternative tax re«
ported in lieu of normal tax and surtax where the
income includes an excess of net long-term capital
gain over net short-tern capital loss, if and only if
such tax is less than the normal tax and surtax.
Tabulated with the income tax for returns with net
income is a small amount of tax reported on returns
with no net income, under the special provisions
applicable to certain mutual insurance companies,
other than life or marine', or where receipts for the
taxable year include interest on obligations of cei>
tain instrumentalities of the United States, described
in note 10.
19/ "Income tax* for 1941 consists of income agd
income defense taxes reported on returns for a fiscal
year ending in the period July through 'November 1941
(and on returns for a part year beginning in 1940 and
ending in 1941, the greater part of the accounting
period falling in 1941) j and normal tax and surtax
reported on returns for the calendar year 1941 and on
returns for a fiscal year ending in the period
January through June 1942 (and on returns for a part
year beginning and ending in 1941, and for a part
year beginning in 1941 and ending in 1942, the greater
part of the accounting period falling in 1941).
Tabulated with the income tax for returns with net
income is a small amount of surtax reported on re
turns with no net income, there receipts for the tax*
able year include interest on obligations of certain
instrumentalities of the United States, described in
note 10.
20/ Income tax shewn for 1940 includes income defense- Eax.
21/ Declared value excess-profits tax shewn for
1940 IHcludes declared value excess-profits defense
tax. reported on returns for a fiscal year ending in
period July 1, 1940, through June 50, 1941.
22/ The net operating loss deduction tabulated
herein id the amount originally reported, consisting
only of the net operating loss carry-over reduced bj
certain adjustments, and does not take into account
whatever revisions may subsequently be made as the
result of any carry-back of net operating loss from
the two succeeding tax years. In general, fir 1M6, theni
operating loss carry-over is the sum of the net operat*,
ing losses, if any, for the two preceding taxable yew»
If there is net income in the first preceding taxable
year, the net operating loss for the second preceding
taxable year is reduced to the extent such loss has
been absorbed by such net income«
15/ Preliminary figures.
Treasury - Internal Revenue, Washington, D. C
TREASURY DEPARTMENT
F is c a l Service
STATUTORY DEBT LIMITATION
AS OF Marck ••3 1 , %f$jk
Washington,
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S.C., title 31 , sec. 757b), outstanding at
any one time. For purposes of this section the current redemption value of any obi 1gat ion issued on a discount
basis which is rcdecmabl 6 prior to maturi ty at the option of the hoi dar shall ba consi darad as its faca 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
$ 2 7 5 , 0 0 0 , OOO, 000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
V S y S i l i T .............. $ 16,862,799,000
Certificates of indebtedness..
2 9 ,079,235,000
Treasury no t e s .....................
26.361,623.860 $
Bonds Treasury...........
76,841,616,600
Savings (current redemp. value)
Deposi tary.......... ............
Armed Forces Leave
........
Investment series................
Special Funds Certificates of indebtedness
'Treasury notes..............
Total interest-bearing
71,303.557.850
57,680,184,003
363,51^.500
•»
12,969,»28,000
147,854,743,103
22.189.165.000
14.304.243.000
36.403.408.000
255.651,708,953
476,712,400
Matured, interest-ceased..........
Bearing no interest:
War savings stamps ................
Excess profits tax refund bonds...
48,971,463
1 ,763,616
Special notes of the United States:
Internat'l Monetary Fund series...
1,263.000,000
1,303,735.079
257,432,156,432
Total.................. ...'.. ... ......
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.a . ........
37,^17,336
Demand obligations: C.C.C.........
__________ 1 « 5 0 9 . 8 2 1
Matured, interest-ceased .................................... _
38,927,157
1.655.660
40,582,807
257.472,739.239
17.527.260.761
Grand total outstanding .....
Balance face amount of obligations issuable under above authority
Reconcilement with statement of the Public Debt
(Daily Statement of the United states Treasury,
March 31, 1952
.......... (Datei
A p r i l 1,
(Date)
1952)
Outstanding Total gross public debt .........................................................
Guaranteed obligations not owned by the Treasury ...............................
Total gross public debt and guaranteed obligations .......... ..................
Deduct - other outstanding public debt obligations not subject^to debt limitation
258,083,50^,236
h o , 582,807
258,1 2 k , 08?,043
651.347.804
257,472,739,239
38
STATUTORY DEBT LIKETATION
AS OF BARCH 31, 1952
April 10, 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 obligations
guaranteed as to principal and interest by the United States (except such guaranteed
obligations as may be held by the Secretary of the Treasury), "shall not exceed in
the aggregate $275,000,000,000 (Act of June 26, 19h6; U.S.C., title 31, sec. 757b),
outstanding at any one time.
For purposes of this section the current redemption
yalue of any obligation issued on a discount basis which is redeemable prior to
maturity at the option of the holder shall be considered as its face amount,"
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitations
Total face amount that may be outstanding at any one time
Outstanding
$275,000,000,000
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing s
Treasury bills,.......•*«•*•»•»$ 16,862,799,000
Certificates of indebtedness..• 29,079,235*000
25,361,523,850 $71,303,557,850
Treasury notes........ .
Bonds Treasury....... e
• 76,81|.l,6l6,600
Savings (current redemp, value)57,680,1814.,003
Depositary
363,5lli,500
Armed Forces Leave..,.*,....,
Investment series.,,,.,,.,,.. 12,969,1428,000 ll47,851i,7li.3,103
Special Funds Certificates of indebtedness,
22,189,165,000
Treasury notes,,«* *,««••*.a., II4,30l4,2l[3,000 36,1493,1408,000
Total i n t e r e s t - b e a r i n g . .77777 255,651,7ÖTf,951
Matured, interest—c
e
a
s
e
d
.
,.«,.,«,,
lj.76,712,1400
Bearing no interest;
War savings stamps.
I|.8,971,l463
Excess profits tax refund bonds.,
1 ,763,616
Special notes of the United States:
Internat>1 Monetary Fund series
1,253,000,000
Total
"
’
!
1,303,735,079
~ “..... "
¡Guaranteed obligations (not held by Treasury) t
!Interest-bearing:
Debentures:
P «H, A® «,
,
.
3
7
,
14I7 ,336
Demand obligations; C.CoC«> ,*®«0 _
1,509*821
Matured, interest-ceased,« • O O
«o
« • 0 Q • ß C • .0 • ©9 9
38,927,157
1,655,650
7 o75F278o7
| Grand total outstanding. ,
r........
_____
______ ...........
KKKKKM H H
# *• «90 .W 257,172,739,239
■Balance face amount of obligations issuable under above authority,« ~T77527,76o^761
Reconcilement with Statement of the Public'Debt - March 31, 1952
(Daily Statement of the United States Treasury, April 1, 1952)
Outstanding -
I
Total gross public debt,.,,..... ....... ............. .......... .
258,083,50*4,236
Guaranteed obligations not owned by the Treasury.••••»....,••••.«
I4O,582,807
Total gross public debt and guaranteed obligations,,,....,«••••«• ¿58,121},087,0L3
peduct - other outstanding public debt obligations not subject to
debt l i m i t a t i o n . o •«.«,««•«,•««,..#
65l,3 li-7 ,80I4
■
2 57,1472,739 ,239
$-3013
- 3 -
m st
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 111? of the Revenue Act of 19U1, the amount of discount at
‘Which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
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 writhout 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
'1'7
* * * * *
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.
Apr-*] ^17. 1952, I
Cash adjustments will be I
made for differences between the par value of maturing bills accepted in exchange I
and the issue price of the new bills.
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 nowr or hereafter imposed on the principal or interest thereof by
1i
TREASURY DEPARTMENT
Washington
- 3 d
/
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 10, 1952_____
A,
/
.
The Secretary of the Treasury, by this public notice, invites tenders for
& i l.nn nnn.nnn . or thereabouts, of
91 -day Treasury bills, for cash and
* ^
.in the amount of $ 1.202.liQl.QQP. ,
in exchange for Treasury bills maturing
April 17» 1952 --->/t o be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
will mature
interest.
The bills of this series will be dated__April 17, jjgg------> and
July 17, 19$2___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, Apri l ,l^j 195.?— *
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 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 m i l 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 hews papers ,
Thursday, Apri1 10, 1952.
WASHINGTON, D .C .
S-S014
The Secretary of the Treasury, hy this public notice, invites
tenders for $1,400,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills-maturing April 17, 1952,
in the amount of $1,202,401,000, 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 17, 1952, and will
mature July 17, 1952, when the face amount will be payable without
interest.
They will be issued in bearer form only, and in
denominations of $ 1 ,0 0 0 , $5 ,0 0 0 , $1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and
$1 ,0 0 0 ,0 0 0 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up t o ■the closing hour, two o ’clock p.m*, Eastern Standard time,
Monday, April 14, 1952.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
multiple of $1 ,0 0 0 , and in the case of competitive tenders the price
offered must be expressed on the basis of 1 0 0 , with not more than
three decimals, e. g., 99.925.
Fractions may not be used.
It is
urged that tenders be ma.de on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Res'erve Banks or
Branches on application therefor.
Others than banking institutions will not bo 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 fbr 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 announce
ment 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
te final.
Subject to these reservations, non-competitive tenders
for $2 0 0 ,0 0 0 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted
2
competitive bids.
Settlement for accepted tenders in accordance with
tne bids must be made or completed at the Federal Reserve Bank on
April 17, 1952, in cash or other immediately*available funds or in
a like face amount of Treasury bills maturing April 1 7
1 9 5 2 . Cash
f
^ c h a n g e 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.. l hQ income derived from Treasury bills, whether interest or
g a m from the sale or other disposition of the bills, shall not
have any -exemption, as such, and loss .from the sale or other
disposition of Treasury bills shall not have any special treatment
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
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 hereaf ten imposed 'on* the
2r .i^ efest: thereof> by any State, or any of the possessions
o.t 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 1 1 5 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 hills (other
than life insurance companies) issued hereunder need include in his
income-tax 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 redemation*at
maturity during the taxable year for which the return is mode os
ordinary gain or loss.
' 5
Treasury Department Circular W o . 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular mav he obtained
irom any Federal Reserve Bank or Branch.
0O0
58
-
-
cuen as you m e m b e r s of the
Inland
Empire e d u cation A s s o c i a t i o n should
be proud of the fine work you have
□one
and are doing
understand,
to help the people
y e s , to bring to alI
A m e r i c a n s the truth that makes
free.
Because of
f|i
loyal
them
and effectual
|
public service such as yours,
productive' of an alert u n d e r s t a n d i n g
J§jf§
and s t e a d f a st good citizenship,
iliay.
riia y
w ith
¡Wm
m
we
look aneaci to A m e r i c a ’s f u t u r e
iaence.
■Hi
I I recefve
must
ica t civili zation
further
develop the techn
has been a rea
the Council
m e e t i n g s to see a m o * g the
3
fcj
and a d e t e r m i n a t i o n on the part of
their n a t i o n s to s h o u l d e r s h a r e s of
the mutual
defense burden to the
limit of their abilities.
Both our will
to remain free and
our e c o n o m i c c a p a c i t y to meet the
dangers of dictatorial
a g g r e s s i o n will
owe much to the t r a i n i n g that
54
S e p t e m b er he has attended three
meetings
in Ottawa,
Rome and L i s b o n
of the Treaty Q r g a n i z a t i o n ’s Councii,
made up of the foreign m i n i s t e r s and
‘
f i n a n c e m i n i s t e r s of the North
A t l a n t i c c o u n t r i e s u n i t e d under the
Treaty
in p l a n n i n g ways and means of
mutual
defense#
Each of these c o u n t r i es has
its
own p e c u l i a r p r o b l e m s of participation
in defense affairs,
have not stood
but these problems
in the way of progress.
b u i l d i n g the d e f e n s e s r e q u i r e d by
cannot
merits Is of Marx is.T:- Leri inis®
tnat
it is a basic tenet of
re
p a r t i c u l a r l y bitter about such
/
betrayal
in t ime of national
asked to give their very
raj
48
o f f i c e r or empl o y e e who has been
g u i l t y of
irregularity or w r o n g d o i n g
in the d i s c h a r g e of his duties.
On
the c o n d u c t of those r e s p o n s i b l e for
the c o l l e c t i o n of taxes d e p e n d s the
f a i t h of the c i t i z e n s
in the fairness
of the w h o l e tax structure.
Those Treasury D e p a r t m e n t e m p l o y e e s
who have b e t r a y e d the trust
reposed
in them by the A m e r i c a n people,
have been,
and will
tracked down,
punished.
c o n t i n u e to be,
r e m o v e d and c o n d i g n l y
B e t r a y e r s of public trust
have been faithful
ofithis cooperation
to their trust a
is r e f l e c t e d by
l fcish to m ake
at there
it
is no room
for
r e g r e t to sty,
a, few c o l l e c t o r s and
s u b o r d i n a t e e m p l o y e es of the Bureau
of internal
R e v e n u e s u c c u m b e d to
| |;||pIfMgllllftl
temptation.
In this connection*
I
want to say that those o f f i c i a l s
and e m p l o y e e s whom we have found
unfaithful
made up only the smallest
fract i o n of the R e v e n u e B u r e a u ' s
personnel,
in the year
1951
the
Bureau empl o y e d m ore than fifty-seven
thous a n d persons,
and all
save a
m ere fraction of one percent o f these
r e v e n u e - c o 1 1 e c t ini
O
a c c o r d a n c e with
reou i
II he Ip to
cIrcumstance
C o m m i s s i o n e r s will be 21 to 25
D i s t r i c t Commi ss ioners,
who wiI I
repo r t to the Revenue Service
headquarters
in Washington.
One benefit of the r e o r g a n iz a t i o n
will
be that the number of field
o f f i c e s r e p o r t i n g direc t l y to
W a s h i n g to n will be greatly reduced.
This will speed up as well
as simplify
service to taxpayers.
To any of you who are especially
interested
in the R e v e n u e Service
be a b o l i s h e d under the reorgan I?at Ion
plan.
But the off Ices of the present
Co I Iectors will
same c i t i e s «
effected,
be c o n t i n u ed
in the
As r e o r g a n {zation
is
the o u t g o i n g C o l l e c t o r s will
be r e p l a c e d by D e puty D i s t r i c t
Count! ss
ioners*
The n u mber of Deputy D i s t r i c t
C o m m i s s i o n e r s will be between
60 and 70, r e p l a c i n g the 64 Collectors
of the old organiz at i o n *
Supervising
the work of the D e p u t y D i s t r i c t
• 42 |
roof.
An
Independent
S e r v i c e will
Inspection
keep const a n t check
on the p e r f o r m a n c e and conduct of
the R e v e n u e S e r v i c e staffs.
pi
.v . '
/Direct
L^*
lines of control
t
will
-^'
be e s t a b l i s h e d thro u g h ou t the
Service,
so as to pin point
r e s p o n s ibI 111y,
I
|I p
I
v
||| .
I want to mention one detail
on w h i c h there has been some
! Vi'"P'.V
mi s u n d e r s t a n d ing.
/ ,pM i «
■
fi
The title of
C o l l e c t o r of internal
Revenue will
new R e v e n u e S e r v i c e e m b o d y i n g the
g r e a t e s t p o s s i b l e c o n v e n i e n c e to
the taxpayer as we I I as a s s u r a n c e s
of the h i g h e s t e f f i c i e n c y and
strictest
integrity.
Every official
and emplo y e e
in
the r e o r g a n i s e d S e r v i c e e x c e p t the
C o m m i s s i o n e r of
will
internal
be under Civil
Revenue
Service,
many c i t i e s as possible,
in as
the now
widely s c a t t e r e d R e v e n u e S e r vice
offices w H i
be b r o u g h t under one
m i l l i o n through fiscal
and dollar s a v i n g s
year
1949
in excess of
4 million and 8 million r e s p e c t i v e l y
for the fiscal
years
1950 and
1951.
The Treasury D e p a r t m e n t also
has had valua b l e a s s i s t a n c e from
outside m a n a g e m e n t e n g i n e e r s whom
the S e c r e t a ry of the Treasury brought
in, with the approval
of Congress,
to e x a m i n e the fundamental
structure,
m e t h o o s and p r o c e d u re s of some of
the bureaus and make r e c o m m e n d a t ions
for
improvements.
¡nan-hour savings
In the case of t
ur eau
nto additional revenue
work.
An over-all result has been
the provision of better service to
the public inrou&hout
»
36
bond holders a b o u t
optional
this v a l u a b l e
privilege, w i t h the r e s u l t
S
|;
|||Sj|
that bond owners are freely a v a i l i n g
t h e m s e l v e s of
it.
In t e l l i n g you about our borrowing
and deficit problems,
to
leave the
i
do not want
Impression that they
are c o n s i d e r e d more
important than
coIlecti on of r e v e n u e or economical
and sound a d m i n i s
i r a t
ion.
t wish
briefly to tel I you s o m e t h i n g of
what we are d o i n g
in these areas
34
to present
he may,
hold
-
it for redemption.
if he so wishes,
it, and simple
Instead
continue
to
interest will
a c c r u e at 2-1/2 percent per a n n u m
_^
on the face value for an additional
p e riod of 7-1/2 years.
he may still
an additional
c o n t i n u e to ho Id it for
period of 2-1/2 years
d u r i n g w h i c h the
so that
After that,
interest steps up
if the bond
is held to the
end of the second
ten year period,
the
average 2.9 percent
interest will
c o u l d not possibly by Its own efforts
have b r o u g h t so many m i l l i o n s of
Americans
into this u n i q u e p r o j e c t
in national
national
t h rift and pat r i o t ic
support,
and did -- appeal
volunteers,
ft
could,
however
for the aid of
and t h r o u g h them we
spread far a n d wide an u n d e r s t a n d i n g
of t h e s a f e t y of the bonds,
of
their c o n t r i b u t i o n to economic
s t a b i l i t y and the fight a g a i n s t
inflation,
of t h e i r part
in defense.
m
because
its o p e r a t i o n s well
Illustrate
the extent to which the Treasury
D e p a r t m e n t d e p e n d s on educational
p r o c e s s e s -- and through them on
public s u p p o r t and cooperati on -in the d i s c h a r g e of
its
r e s p o n s I b 1 1i ties.
D e s p i t e the bond p r o g r a m ' s
size,
it is d i r e c t e d by a paid
staff of only a few hundred persons,
of whom t h r e e - f o u r t h s are s t a t i o n e d
in the field.
S uch a small
staff
addition,
the Defense Bond prog r a m
helps provide wider o w n e r s h i p of
the public debt,
further
and thereby stimulates
individual
Interest
affairs of the Nation.
my basic beliefs that so
there
is e x t e n s i v e
in National
It is one
long as
Individual
affairs,
g o v e r n m e n t and our
in the
interest
our form of
liberties are
secure
I have m e n t i o n e d the bond
p r o g r a m not only b e c a u s e
important national
it serves
ends, b u t also
The D e f e n s e Bond P r o g r a m
s t r e n g t h to the economy
degree.
lends
In no small
It enables us to fight
Inflation
a v o i d s the
in two ways.
First,
it
inflationary p r e s s u r e
that arises f r o m b o r r o w i n g from
commercial
banks.
Second,
by
increasing widespread saving and
thri f t
it takes s p e n d i n g power
out of the m a r k e t place where
it
might o t h e r w i s e be used to bid up
p r i c e s of scarce articles,
in
We have c o n c e n t r a t e d
In thè
last year on the sale of bonds
through the Payroll
and
latest e s t i m a t e s
S a v i n g s Plan,
indicate that
about seven m i l l i o n p e r s o n s now
buy bonds r e g u I a r I y on this plan.
You will be
interested in
Knowing that the cash value of
Series £ bonds now o u t s t a n d i n g
amounts to m o r e
billion
than £34.8
an a i l - t i m e record*
C o n t r a r y to reports which
have c i r c u l a t e d
In some Quarters,
the D e f e n s e B o n d s p r o g r a m c o n t i n u e s
to be a v i g o r o u s and w o r t h - w h i l e
institution.
In the first two
m o n t h s of this year,
the sale of
Seri e s £ bonds amoun t e d to $651
million,
a gain of 6 p e r c e n t over
the same p e riod
in 1951, w h i l e
r e d e m p t i o n s d e c r e a s e d f percent.
rt leu isr
-
22
I
-
remains to be seen, but It appears
I
probable the public debt will
I
again
be in the neighborhood of % 2 7 0
I
bi I Iion•by the end of the present
I
calendar year.
I
$hen the Treasury has to borrow
I
funds, it is advantageous to avoid
borrowing from commercial banKS,
Financing a significant deficit by
# '
borrowing from bairns would tend
strongly to build up new inflation
pressures.
You teachers of economics
|
debt stood at some $270 bfIi Ions in
the five succeeding years we were
able to bring about a reduction of
some $15 bill ion.
In three of the
five years, the Government realized
a surplus of receipts over expenses
One of those surpluses, that of the
fiscal year 1948, reached the
record-breax ing amount of almost
$8.5 billion.
The fulI extent of
new deficit financing into which
defense expenditures will force us
■¡Ifrb Ic f
J f
c n p
ime 1 ic?t íons
0
amee
A
p.11 onery
isy to see.
ary
-W
Trcé sur*y í%f'ij5 the
i nfI
*
'W
pons ib i}iiy fo r
rt is ifig' tee for?cis to cover defic Its,
anc. the cornos i ion re spons. ib i 1 ity for
iRsnep: tno the »Iré ady fuete pu.b! 1c
i
j ta,. H
i., i
i,*t
4v**fH* l«ia ■«
o*
%§gfjg } c o n c e r n *to th 0
W
* 0 1
?tion Is of direct a
C
tine
& * §(**
IW I
1reas
5
same Secretary
f94 I tne filié i 1c
A . i* »
íl
.
i
*
tendencies.
If cannot with prudence,
however, regard the upward price
pressures as things of the past.
The defense program must continue
to move ahead, and there remains
the prospect of deficit financing
operations in connection with it.
In a situation where the nation must
draw heavily on its physical resources
for mtfitary production, and where
at the same time deficit financing
is adding to the supply of funds
m
«»
|0
«*
Taxes were s u b s t a n t i a l l y
increased,
so that the G o v e r n m e n t ’s finances
m i g h t be Kept as nearly as p o s s i b l e
on a b a l a n c e d budget basis.
With
the aid of m i l l i o n s of v o l u n t e e r s -~
including,
1 am sure,
many of you
in
this a u d i e n c e -- t h e . T r e a s u r y stepped
up the p r o m o t i o n of S a v i n g s Bonds
to s t i m u l a t e t h r i f t and e n c o u r a g e
a b s t e n t i o n from u n n e c e s s a r y buying.
At the m o m e n t there
appa r e n t s u b s i d i n g of
is an
inflationary
- 17
&M
prime threat a g a i n s t economic strength
and s t a bility has been the t h r e a t
of
inflation.
of f i g h t i n g
Since the o u t b r e a k
in Korea we have f o u n d
it n e c e s s a r y to m ove f o r w a r d on
n u m e r o u s f r ents to c o m b a t
pressures.
As you know,
c o n t r o l s on prices,
inf Iat ionary
cert a i n
wages,
rents,
and
c r e d i t were f o u n d essential.
S c a r c i t i e s arose
in the a v a i IabIe
suppI y of certa in mat e r i a ls ,
and'a
s y s t e m of a l l o c a t i o n s b e c a m e necessary
i§
crude petroIeum
higher
is thirty p e r c e n t
than the record m o n t h of
WorId War
11.
I could
list many
other e v i d e n c es of our b r o a d e n in g
c a p a c i t y to p r o d u c e m a t e r i a l s for
both c i v i l i a n and m i l i t a r y use, as
proof that our
today
Industrial
Is far g r e a t e r
than
strength
it ever
was before
But we m u s t rema i n c o n s t a n t l y
alert agal'nst p e r m i t t i n g the strength
of our economy to be undermined,
A
The second basic reason that
educators can face the future with
assurance is the fact that American
liberties are suoported by a vigorous
and healthy economy.
! Ii*e to
thin« of this factor as analogous
to the truth expressed in the Latin
phrase * mens sana in corpore sanoH.
||i1| the sphere of the intellect
Is spiritual In the true sense of
that word, still It develops and
functions best in a sound body.
So
p
**
10 *
t h e m s e l v e s free to blaze new trails
I
of
I
Individual
accomplishment.
This
freedom from barriers against
I
ambit i o n and from mental
I
checKreins
is the best g u a r a n t e e that for the
I
p r o b l e m s of the epochal
I
days to come,
the g r a d u a t e s of your c l a s s e s will
I
find a d e q u a t e solutions.
I
p a r a p h r a s e the
To .
late Mr. J u s t i c e Brandeisl
we A m e r i c a n s can be ruled by the
of r e a s o n b e c a u s e we can
be bold,
light I
Jet our minds I
you as e d u c a t o r s should face with
a s s u r a n c e the task of t r a i n i n g young
sign and women to meet such
o p p o r t u n i t i e s and r e s p o n s ib i I i t i e s .
One of these r e a s o n s
liberty w i t h which,
all
people,
is the
in free America,
young and old,
can face
their c o mmon problems.
No d i c t a t o r
tells us how we shall
plan for either
today or tomorrow.
Young and
a m b i t i o u s A m e r i c a n s e n c o u n t er no
b r a k e s on
ingenuity;
they find
Ç
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w
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used these
in s t r u m e n t a I i t i e s can
give to America a w i d e s p r e a d and
%m
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■.
popular c i v i l i s a t i o n g r e a t e r
■/ '
.
pi
in this
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m o d e r n world than even the Athens of
- . •/;>.; , r ' i
.
- v^: - V
' t,
Plato and Aristotle,
Sharp p o p u l a t i o n
increases serve
n o t i c e that further growth and
e x p a n s i o n are domestic factors
¡¡¡ft' ' |p|
American
',r ‘
V
M
,
life very m u c h to be
in
|| i§ 0
reCKoned with.
industrial
e n t e r p r i s e throughout
the whole e n o r m o u s field of production
EH i
1 I .IfliWl I
£
.
ever
to meet.
S t a t e s has reached a
scientific
n
Oeve iooments
the p e r f e c t i o n
methods of
•
w i t
. 5 responsibi IitIes e s p e c i a l l y
c h a l l e n g i n g and the
worK espe c i a ll y
There
results of your
satisfying.
is great need,
certainly,
for the fuI Iest m e a s u r e of sk iI led,
far-seeing,
and d e v o t e d a t t e n t i on to
educational
efforts
of today.
Let me
in the America
itemize a few
things which e m p h a s i z e that need.
Our country has r e a c h e d a
p o s i t i o n of w o r l d
leadership which
c a r r i e s greater responsibiI ities than
only
in part m a terial*
As t e a c h e r s
anil school .executives you have to
deal
directly with other very
important e l e m e n t s of m a n p o w e r and
w o m a n p o w e r and of stren g t h of splrl
The following address by Under Secretary
¿ Z flh ‘
*
Edward H. Foley before
of the Treasury
of the
Inland Empire Education Association in the Fox Theater,
Spokane, Washington, is scheduledIfor delivery at
10:15 a.m.PST (1:15 p.m.EST) Thursday, April 10, 1952,
and is for release at that time.
TREASURY DEPARTMENT
Washington
102
The following address by Under Secretary of the Treasury
Edward H, Foley before the 3>Oth Annual Session of the
Inland Empire Education Association in the Fox Theater,
Spokane, Washington, is scheduled for delivery at
I P a*nuPST (1:15 p,m,BSf)'' Thursday, April 10, 19l?2,
arid is for release at 'ths/b'Time«
LOOKING AHEAD
It is a genuine pleasure to meet with you here today, I am always
glad to have an opportunity to visit the Pacific Northwest and see
again the striking evidences of its vigor and strength« It is particularly
pleasing to have the privilege of participating in this great conference
of Inland Empire educators, and of meeting with you men and women to whom
the citizenry of this area have entrusted the cultivation of coming
generations to the end that they may be ready and fitted to carry on the
democracy and traditions that we call in brief the American Way of Life«
With each successive journey to this favored area I marvel at the
variety and vast extent of its natural wealth. Signs of that wealth are
particularly impressive in days such as these when we are giving so
much thought to our defense program and its far-reaching material needs*
This is one of the sections of our country to which the American people
look with assurance, knowing that in this section are resources which
will never fail them. But the elements of American strength are only
in part material. As teachers and school executives you have to deal
directly with other very important elements of manpower and womanpower
and of strength of spirit. In these non-material resources the Inland
Empire is also rich,
I am sure you consider yourselves fortunate to have the Pacific
Northwest as the field of your educational efforts. The Inland Empire
is a young, enterprising, and venturesome land, still far removed from
that stage when lifefs activities begin to fall into fixed patterns*
I know that in such a land you find educational responsibilities
especially challenging and the results of your work especially satisfying.
There is great need, certainly, for the fullest measure of skilled,
far-seeing, and devoted attention to educational efforts in the America
of today. Let me itemize a few things which emphasize that need*
Our country has reached a position of world leadership which
carries greater responsibilities than we as a people have ever before
had to meet.
S-301Ç
-
2
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0
^
W KJ
Simultaneously, the United States has reached a position of high
scientific achievement, with atomic energy as only one of many
developments*
Through the perfection of new methods of communication there are
opportunities for the diffusion of knowledge and culture undreamed of
only a few generations ago* Properly used these instrumentalities can
give to America a widespread and popular civilization greater in this
modern world than even the Athens of Plato and Aristotle*
Sharp population increases serve notice that further growth and
expansion are domestic factors in American life very much to be reckoned
with*
Industrial enterprise throughout the whole enormous field of
production knows almost no technical limitations on its continued progress.
In circumstances such as these — and there are many more I could
mention — it is obvious that in the America of the future there will
be not only opportunities, but responsibilities demanding everything that
the mind and heart and soul can offer in the way of competence, confidence,
and character*
There are two basic reasons why you as educators should face with
assurance the task of training young men and women to meet such
opportunities and responsibilities*
One of these reasons is the liberty with which, in free America,
all people, young and old, can face their common problems* No dictator
tells us how we shall plan for either today or tomorrow. Young and
ambitious Americans encounter no brakes on ingenuity; they find them
selves free to blaze new trails of individual accomplishment* This
freedom from barriers against ambition and from mental checkreins is
the best guarantee that for the problems of the epochal days to come,
the graduates of your classes will find adequate solutions. To
paraphrase the late Mr. Justice Brandéis, we Americans can be ruled by
the light of reason because we can let our minds be bold*
The second basic reason that educators can face the future with
assurance is the fact that American liberties are supported by a
vigorous and healthy economy. I like to think of this factor as
analogous to the truth expressed in the Latin phrase »mens sana in
corpore sano»* While the sphere of the intellect is spiritual™"in”the
true sense of that word, still it develops and functions best in a
sound body. So it is with liberty; if not of the spirit, liberty is
closely akin to it* The great natural law jurists tell us that liberties
are Divine in origin, and it was this view that was adopted by those who
made us a Nation* Thus Jefferson told us, in the Declaration of
S-3015
- 3 -
1 0
«-MU
Independence* that it was a self-evident truth that all men "are endowed
by their Creator with certain unalienable Rights, that among these are
Life* Liberty and the pursuit of Happiness»" But all history teaches
that for liberty to develop and function — yes* to live
there must
be a society in which the economy is strong» The material basis must
be sturdy for the proper flowering of democracy and the freedom that is
inherent in it»
It is with this economic aspect of American life that we in the
Treasury Department are particularly concerned* and I should like briefly
to discuss with you our economic status and what the Treasury Department
is trying to do about it*
Despite all the stresses of the past decade, we find the United
States in 1952 in a stronger economic position than ever« While we have
been building our own military strength and aiding that of the other
free nations of the world, we have increased our capacity for producing
basic industrial materials to an amazing degree»
There are many striking indications of this*
Steel output in
January rose above that of the highest month of World War II by nearly
a million and a half tons, and the weekly output increased further in
February and March. Electric power recently has risen more than sixty
percent above the record war-time level. The flow of crude petroleum
is thirty percent higher than the record month of World War II. I
could list many other evidences of our broadening capacity to produce
materials for both civilian and military use, as pfoof that our industrial
strength today is far greater than it ever was before.
But we must remain constantly alert against permitting the strength
of our economy to be undermined. A prime threat against economic strength
and stability has been the threat of inflation0 Since the outbreak
of fighting in Korea we have found it necessary to move forward on
numerous fronts to combat inflationary pressures. As you know, certain
controls on prices, wages, rents, and credit were found essential.
Scarcities arose in the available supply of certain materials, and a
system of allocations became necessary* Taxes were substantially
increased, so that the Governments finances might be kept as nearly as
possible on a balanced budget basis» With the aid of millions of
volunteers -- including, I am sure, many of you in this audience —
the Treasury stepped up the promotion of Savings Bonds to stimulate
thrift and encourage abstention from unnecessary buying*
At the moment there is an apparent subsiding of inflationary
tendencies© We cannot with prudence, however, regard the upward price
pressures as things of the past. The defense program must continue to
move ahead, and there remains the prospect of deficit financing
operations in connection with it* In a situation where the nation must
draw heavily on its physical resources for military production, and where
at the same time deficit financing is adding to the supply of funds
available for spending, inflationary implications are easy to see©
S-3015
4
- k i nr
— uO
Since the Secretary of the Treasury has the responsibility for
raising the funds to cover deficits, and the companion responsibility
for managing the already huge public debt, the situation is of direct
and weighty personal concern to the Treasury Department*
When Mr* Snyder became Secretary of the Treasury in I9I46 the public
debt stood at some $270 billion^ in the five succeeding years we were
able to bring about a reduction of some $15 billion. In three of the
five years, the Government realized a surplus of receipts over expenses*
One of those surpluses, that of the fiscal year I9I48, reached the recordbreaking amount of almost $8*5 billion. The full extent of new deficit
financing into which defense expenditures will force us remains to be
seen, but it appears probable the public debt will again be in the
neighborhood of $270 billion by the end of the present calendar year#
When the Treasury has to borrow funds, it is advantageous to avoid
borrowing from commercial banks. Financing a significant deficit by
borrowing from banks would tend strongly to build up new inflation
pressures. You teachers of economics in the audience readily understand
the reason for this, and I believe that one of the great services you
can perform is to explain to as many people as possible
adults and
the young — why Government borrowing from commercial banks is
inflationary.
The Treasury!s ability to borrow from nonbank sources depends on
many factors, such as the investment position of large institutional
investors and the preferences of individuals.
I have already mentioned the Defense Bonds program, which not only
plays an important part in the Government's fiscal affairs but also is
of vital importance in encouraging the habits of thrift and selfreliance. A feature of the bond program which is of particular interest
to you is the School Savings Program, Among well-known people of the
States represented here who have participated actively as volunteers
in the promotion of school savings are Mrs. John E. Hayes of Idaho,
President of the National Congress of Parents and Teachersj Miss Mary M.
Condon, State Superintendent of Public Instruction for Montana*
Mrs. Pearl A. Wanamaker, State Superintendent of Public Instruction for
Washington; and Dr. Rex Putnam, State Superintendent of Public Instruction
for Oregon, There are many more, and to all of them the Treasury
Department extends its thanks.
Fromthe middle of last November to the end of January more than
5,000 additional schools adopted School Savings, in a stimulation effort
which saw the States of the Inland Empire Conference meet their State
goals by scores of 100 to 210 percent.
Contrary to reports which have circulated in some Quarters, the
Defense Bonds program continues to be a vigorous and worth-while institution.
+ *5? ■^-fs‘
k ‘two months of this year, the sale of Series E bonds amounted
to #651 million, a gain of 6 percent over the same period in 1951. while
redemptions decreased 9 percent.
S-301.5
- 5 We have concentrated in the last year on the sale of bonds through
the Payroll Savings Plan, and latest estimates indicate that about
seven million persons now buy bonds regularly on this plan*
You will be interested in knowing that the cash value of Series E
bonds now outstanding amounts to more than $3iu8 billion — an all-time
record®
The Defense Bond Program lends strength to the econony in no small
degree® It enables us to fight inflation in two x^ays* First, it
avoids the inflationary pressure that arises from borrowing from
commercial banks. Second, by increasing widespread saving and thrift
it takes spending power out of the market place where it might otherwise
be used to bid up prices of scarce articles. In addition, the Defense
Bond program helps provide wider ownership of the public debt, and
thereby stimulates further individual interest in the affairs of the
Nation* It is one of my basic beliefs that so long as there is extensive
individual interest in National affairs, our form of government and our
liberties are secure©
I have mentioned the bond program not only because it serves
important national ends, but also because its operations well illustrate
the extent to which the Treasury Department depends on educational
processes — and through them on public support and cooperation _ in
the discharge of its responsibilities.
Despite the bond program's size, it is directed by a paid staff of
only a few hundred persons, of whom three-fourths are stationed in the
field. Such a small staff could not possibly by its own efforts have
brought so many millions of Americans into this unique project in
national, thrift and patriotic national support* We could, however -and did — appeal for the aid of volunteers, and through them we spread
far and wide an understanding of the safety of the bonds, of their
contribution to economic stability and the fight against inflation,
of their part in defense, and of the value of wide public debt ownership.
And the public responded. The record of the Defense Bond program
became one of the great success stories of all time.
Last year the Congress authorized an optional ten-year extension
of the life of maturing Series E bonds, with liberal provisions for
continuing redemption privileges and interest earnings. That is, since
May I, 1951, when a person owns a Series E Savings Bond which matures
he does not have to present it for redemption. Instead he may, if he
so wishes, continue to hold it, and simple interest will accrue at
additional period of 2-1 /2 years during which the interest
that if the bond is held to the end of the second ten year
interest will average 2*9 percent compounded semi-annually
ten-year period beyond maturity* To put it another way, a
S-3015
steps up so
period, the
for the full
man, who on
-
6
-
107
May 1, 1 9 h l , paid $75*00 for a $100 Series E Savings Bond and who avails
himself of the new law and holds the bond to May 1, 1961, will collect
$133«33# During the extension
the bond holder continues to have
the right to cash his bond at any time he desires* Our volunteers helped
us spread information among bond holders about this valuable optional
privilege, with the result that bond owners are freely availing themselves
of it#
In telling you about our borrowing and deficit problems, I do not
want to leave the impression that they are considered more important
than collection of revenue or economical and sound administration* I
wish briefly to tell you something of what we are doing in these areas
which are of great importance in keeping the economy healthy*
Soon after Mr* Snyder took office as Secretary of the Treasury in
19^6, he initiated a Treasury Department management improvement program*
Through a series of intensive studies of management problems, and through
a parallel program of interesting employees in conserving time and effort
by simplifying procedures, very iarge man-hour savings were accomplished*
In the case of the Bureau of Internal Revenue, these savings have*been
translated into additional revenue, for the man-hours saved have been
expended in front-line enforcement work* An over-all result has been
the provision of better service to the public throughout the Treasury
Department. In addition, the Department was able to report to the
Congress dollar savings of 56 million through fiscal year 19 k 9 and
dollar savings in excess of 1* million and 8 million respectively for
the fiscal years 1950 and 1951®
The Treasury Department also has had valuable assistance from out
side management engineers whom the Secretary of the Treasury brought
in, with the approval of Congress, to examine the fundamental structure,
methods and procedures of some of the bureaus and make recommendations
for improvements*
As a direct outgrowth of all these surveys and of studies by
Congressional and citizen groups, a plan for basic reorganization of the
Internal Revenue Service was worked out* In January the President
submitted this plan to the Congress where it was approved* We are now
in process of putting the plan into effect*
By the end of this year we expect to have in full operation a new
Revenue Service embodying the greatest possible convenience to the tax
payer as well as assurances of the highest efficiency and strictest
integrity#
Every official and employee in the reorganized Service except the
Commissioner of Internal Revenue will be under Civil Service* In as
many cities as possible, the now widely scattered Revenue Service offices
will be brought under one roof. An independent Inspection Service will
keep constant check on the performance and conduct of the Revenue Service
staffs.
S-3015
- 7 -
108
Direct lines of control will be established throughout the Service,
so as to pin point responsibility*
I want to mention one detail on which there has been some misunder*
standing* The title of Collector of Internal Revenue will be abolished
under the reorganization plan. But the offices of the present Collectors
will be continued in the same cities. A s reorganization is effected,
the outgoing Collectors will be replaced by Deputy District Commissioners*
The number of Deputy District Commissioners will be between 60 and
70 , replacing the 6U Collectors of the old organization. Supervising
the work of the Deputy District Commissioners will be 21 to 2£ District
Commissioners, who will report to the Revenue Service headquarters in
Washington«
One benefit of the reorganization will be that the number of field
offices reporting directly to Washington will be greatly reduced. This
will speed up as well as simplify service to taxpayers.
To any of you who are especially interested in the Revenue Service
reorganization as a progressive step in the improvement of our government
machinery, I shall be glad upon request to send full information about
the plan and the changes by which it modernizes the revenue-collecting
agency in accordance with present day requirements*
We are certain that the plan will help to prevent any repetition
of the circumstance where, I deeply regret to say, a few collectors
and subordinate employees of the Bureau of Internal Revenue succumbed
to temptation* In this connection, I want to say that those officials
and employees whom we have found unfaithful made up only the smallest
fraction of the Revenue Bureau’s personnel. In the year 19£L the Bureau
employed more than fifty-seven thousand persons, and all save a mere
fraction of one percent of these have been faithful to their trust and
have done a splendid job. They collected more than $50 billion in
taxes, and they had wonderful cooperation from those who paid the taxes*
The extent of this cooperation is reflected by the fact that to collect
$100 in federal revenue in 1866 cost $2 *h7 , whereas the cost of collect
ing $100 revenue in 19f?l was $0 .U9.
However, I wish to make it crystal clear that there is no room in
the Treasury Department for any officer or employee who has been guilty
of irregularity or wrongdoing in the discharge of his duties. On the
conduct of those responsible for the collection of taxes depends the
faith of the citizens in the fairness of the whole tax structure*
Those Treasury Department employees who have betrayed the trust reposed
in them by the American people, have been, and will continue to be,
tracked down, removed and condignly punished* Betrayers of public trust
are always contemptible, but I feel particularly bitter about such
betrayal in time of national emergency when thousands of men have been
asked to give their very lives to hold back the Communist menace that
broods in Asia north of the 38th parallel*
S-3015
-
8
1 Q QV
*ai. V
-
As you are aware a very large percentage of today1s federal revenues
are pledged for defense, I have found the American taxpayer as a rule
ready to bear his full share of the cost of insuring our freedom against
Connmnism. Let me emphasize that in addition to paying for munitions
and for the support of our armed forces and for necessary aid to other
nations of the free world, we must make certain that the powerful
American economy is not weakened in any manner. You educators who have
taken the time to study the fundamentals of Marxism-Leninism know that
it is a basic tenet of the Communist dialectician that the free enterprise
economy of the United States will collapse. The Red doctrine teaches
that a free economy cannot bear the strain of modern defense preparations*
Thus, it is argued, the free world faces a dilemma — either the free
world cannot build military defenses sufficiently strong to withstand
Communist aggression or5 if the defenses are built, the supporting economy
will fail and the defense crumble* I need not tell you that this is
false philosophy, but, to prove it false in practice is going to require
both sweat and sacrificea It will be a real service to America if you
who are gathered here today keep firmly in mind, and call strongly to
the attention of others, the vital importance of avoiding any contribution
to economic dangers*
I can report to you that our Nation is making good progress in build
ing the defenses required by present day conditions*
To my mind, the steps we have taken toward more effective international
cooperation are momentous ones, full of promise for mankind*
Secretary Snyder has had the privilege of personal association with
some of these steps, notably, the proceedings of the North Atlantic
Treaty Organization. Since last September he has attended three meetings
in Ottawa, Rome and Lisbon of the Treaty Organization^ Council, made
up of the foreign ministers and finance ministers of the North Atlantic
countries united under the Treaty in planning ways and means of mutual
defense*
Each of these countries has its own peculiar problems of participation
in defense affairs, but these problems have not stood in the way of progress*
Secretary Snyder has told me that it has been a real inspiration to him
at the Council meetings to see among the ministers a high spirit of
cooperation, and a determination on the part of their nations- to shoulder
shares of the mutual defense burden to the limit of their abilities*
Both our will to remain free and our economic capacity to meet the
dangers of dictatorial aggression will owe much to the training that
succeeding generations will receive from our educators. You must prepare
young people to assume the responsibilities of a complex and highly
technical civilization and further to develop the techniques necessary
to preserve a flexible and shock-resistant economy* Above all you must
send into the world new generations with minds equipped to realize the
priceless values of freedom and democratic government*
S-301S
- 9 -
110
Let us remember that in a Republic such as ours public leaders
and officials must have the support and cooperation of the citizenry if
any national effort is to be effective. This is one of the great
sources of our strength, but it requires that the people understand the
nature and scope of the problems at which the national effort is directed.
One of the great eternal verities is uye shall know the truth, and the
truth shall make you free.” Educators such as you members of the Inland
Empire Education Association should be proud of the fine work you have
done and are doing to help the people understand, yes, to bring to all
Americans the truth that makes them free. Because of loyal and
effectual public service such as yours, productive of an alert under
standing and steadfast good citizenship, we may look ahead to America*s
future with every confidence.
0O0
S-3015
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.and | . a m ^ o p l n g
to
M m bacK to;.Washington with me
some. helpful
advice,. and suggestions,,
fr-r, ypu p e o p l e hef.ei in the p a c i f i c
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climate*
î n is uc h| s n II jw
there c a n n o t I h e l o ^ u t be|a
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is|the
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d i s c u s s i o n s ( In w h i c h the Federal
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l e a d i n g f I n v e s t o r ! a n d I f I n a n c i *1
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l l l l l 1 have found genera I
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(need f o r
on the
s e c u r i n g the n e c e s s a r y amounts
from nonbanK
investors,
there Is
g§# Idel d i v e r g e n c e fI f 1 1 # i o n i h o w I
we ought ta go a b o u t sècurîhg the
funis; a n d ¡there a r e I d îffer* 1 1 es of
opinion,
a iso, ss to m e a s u r e s which
jS'-'jpr
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order to f o r m u l a t e a p r o g r a m
to tre curr
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Treasury O e p artment -in <1éìjì iiection with taCr
done
In
Importanl i f in a n c i n g ope
A
pas t * - 1IIS been making
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ai
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ves of the
m
Hi
c o n d u c t i ng
of the Government,
«Hi
not solve our c u r r e n t deficit
f i n a n c i n g problem.
e x p e n d i t u r e s are
and
these, ende a v o rs
Our ret 11y big
in the d e f e n s e area,
| s e r iously doubt that the
C o n g r e s s will
find that these
e x p e n d i t u r e s can be cut d r a s t i c a l l y ■
w i t h o u t e n d a n g e r i n g the d e f e n s e
effort.
There
‘
It,
s i ngle a p p r o a c h which
of o
c urse,
is going to
solve the e n tire deficit p r o b l e m for
no
for the reorgan izat I on of the Bureau
of Internal
Revenue.
T h r o u g h this
r e o r g a n Ization we are going to f orge
W
m'
f
|i"
■
a truly r e v i t a l i z e d agency of
G o v e r n m e n t »hie;h will not only render
bett e r serv i c e to the taxpayers but
w h i c h will
tax
he 1; to assure that our
laws are a<jminlstered without
favor or dlscri miration.
While we
ioust
c o n t i n u e our
e f f o r t s to b r i n g about the u t m o s t
e f f i c i e n c y and economy
in all
branches
I 44 I
d e f e n s e areas,
g e n e r a t io n and
transni ssI on of power for atomic
e n e r g y and d e f e n s e plants.
It c e r t a i n ly
is proper to
effect all the e c o n o m i e s
in
g o v e r n m e n t o p e r a t i on s that
c i r e u m s t a n c e s permit.
D u r i n g my
t e n u r e as S e c retary of the Treasury
I have c a r r i e d on an
management
intensive
improvement p r o g r a m to
m o d e r n i z e o p e r a t i o n s toward
b u s i n e s s efficiency,
increased
better service
relations,
atomic energy,
defense
p r o d u c t i o n and economic stabilization,
civil
defense,
activities.
and m e r c h a n t m a r i n e
Here art w h e r e the
big cuts would have to be made.
E x p e n d Itures for all other Government
p r o g r a m s combi n e d have declined
since
1950, a l t h o u g h some of these
p r o g r a m s c o n t r i b u t e d i r e c t l y to
the d e f e n s e effort and have been
e x p a n d e d -- such as d e f ense
housing,
aid for s c h o o l s
In
4" 0%
£¡0
fl|
In
p o i n t where they would equal
revenues.
theory,
It sounds good
in
but here are some s a l ient
facts which do not make who l e s a le
e x p e n d i t u r e slash i n g very practical
from a national
More
security standpoint.
than t h r e e - f o u r t h s of total
budget expenditures
in 1953 will
be for major national
security
p r o g r a m s such as m i l i t a r y services,
internationaI
security and foreign
mm
$|
|
«*
In contrast to the «orId far II
situation, for example, a large
sector of industry and trade is
engaged in substantially normal
operations, including capital
expenditure programs, which draw
heavily on investment funds.
There are those, of course,
who would solve our deficit
financing problem simply by cutting
Government expenditures to the
ô: yWÿfr
■
«
î îI a
'ic
i t
o
vpliable
fo r - s p e n d i n g o r s a v i n g
T
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W §
i
aiei® w»
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iT I
fi rs
S t#ff
i I r, ne »
,»s
n o s
W 1
Tr i ss
mt :
'■ f
«» wPt*fl
f
r."-g
o©
■ v-
;JPsf
y| U 2. #I
r
i
i
|g y f*C0
g §
who wrote
long ago |f t
M* %I S
i
i
in
%#
M
€i
I I
n®
t o no l í b e r «
ne
£»
I> li
F*
w P 'SafL ^
i^ P 1
$ 10
m Séâm
m ■.-■%*?
© W
m0%
f
Invest
*wjf
#
4.
%
I#'
ti ¡fe,
y e a r
in
d e f e n s e e x p e n d i t u r e s have forced
us
into deficit financing.
Some of the additional
b o r r o w i n g which we shall
have
to do can be taken care of
by the
investment of trust
accounts
fund
in Gove r n m en t securities.
But a major portion must
V
over-all
budget surplus of close
to $8 billion,
surplus,
and by u s i n g that
plus excess funds
remaining
in the cash b a l a n c e
at the end of World War
II
we were
r e d u c e the total
public debt
by some $15 billion.
last June,
however,
Since
heavy
\
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m f * Tfe I
S§
f0
Ííjf
O
* ft
n a n e In i
Mm
m
Ä
!Ä
69MQHHPI!S,W
I1!R?^99BBHRKH
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y<tiífiriü&±
. Ármm
financial operations of the Treasury
in a. manner most conducive to the
maintenance of sound conditions in
the Government’s financial markets*
And, finaliy. In the Internat lorni
area, it requires 1
iremant of the
country’s Internst ions I monetary
relations w Ith the aIm of
maintaining a sound currency
domestically and internationaIly, and
Promoting a better trade and exchange
situation eith friendly countries.
*1 ,“
provides securities to meet
til current needs of various investor
g r o u p st tod which succeeds in
mairttainlng an orderly situation In
the pub Iic ?iar
for United States
G o v e r n m e n t securities,
it requires
the use of debt management policy
cooperatively with monetary-credit
policy to contribute toward healthy
economic growth and reasonable
stability In the value of the dollar.
It requires the conduct of day-to-day
within the
of a
Federal budget policy which it
appropriate to economic conditions
it requires continuing attention
to greater efficiency end
lower costs of government»I
operations.
It requires a
debt management policy which
acts to counter any
pronounced inf Iat ionary
or deflationary pressures;
for the support of public credit.
/Ever since that time, maintenance
of c o n f i d e n c e
In the c r e d i t of the
U n i t e d States has been the No.
I
o b j e c t i v e of the Treasury Department.
At the p r e s e n t time,
It Is the
c o r n e r s t o n e of the financial
s o u n d n e s s of -this country,
vital
factor
and a
In the d e f e n s e effort
of the entire free «or Id,
In the b r o a d e s t sense,
s a f e g u a r d i n g the c r e d i t of t h e
country, the Secretary of the
Treasury has beer charged by law
wlth Imoortant responsibiJItIts
affecting almost ©very sector.of
our economic life.
The first and
basic policy directive laid upon
■' | ■
the Secretary of the Treasury in
the origin.fl Act creating the
Department in 1789 was to ^prepare
plans for the Improvem*nt and
ms nag ear nt of the revenue, end
this
care
As you are u n d o u b t e d Iy aware,
the
Patm a n S u b c o m m i t t e e has r e c e n t l y
Issued a study that promi s e s to be a
best-seller
1 refer,
in the financial
of course,
world.
to the two-volume
c o m p i l a t i o n of replies to the
s
!
S u b c o m m i t t e e ' s q u e s t i o n n a i r e s on
G o v e r n m e n t fiscal
p o l i c i e s which
and m o n e t a r y
it a d d r e s s e d to the
Federal
o f f i c i a l s direc t l y concerned
as well
as private financial
e c o n o m i c authorities.
and
c o n t r i b u t i o n toward keeping our domestic
d e f e n s e s at fu iI s t r e n g t h and our
p r o d u c t i v e power unimpaired*
response Id i i ities as well
more particularly
Your
as mine are
in this field,
and
as a p r o fessor of mine used to constant!
r e mark
"it
But b e f o r e
is time we got down to cases.
I take up some of the more
s p e c i f i c prob l e m s of c o n c e r n
area,
f should
in this
like to again b o r r o w fro»
tne p r o f e s s or and his c l a s s r o o m techniqu
and suggest some o u t s i d e r e a d i n g which |
i a m .sure you will
find
invaluable*
22
-
and above ali the m e a s u r e s we take
right here at home to protect the
s o u n d n e ss and s t a bility of our
d o m e s t i c economy,
if
in the process
of defense c o n v e r s i o n we were to
a i ist our home front e c o n o m y to
I is integrate*
battle
we would
lose the
for f r e e d o m as surely as
if
we were c o n quered on m i l i t a r y
b a t t i ef ields.
The financial
pursue can make an
polic i e s which we
important
-
20
p r o v i n g to be more valuable than
the gold that the early
p r o s p e c t o r s were seeking.
The
rare earth metals to be
found
in this sand have
long
been used for a variety of
industrial
purposes but for
years our supply had to
come mainly from
imports.
19
atomic exper imentat ion.
the national
s p o t l i g ht
Likewise
is
c u r r e n t iy being focused on new
mineral
d i s c o v e r i e s out here
w h i c h are useful
in our
d e f e n s e preparations*
a b a ndoned
Once
Idaho gold fields are
y ielding up inonazite sands which are
-
16
-
what is more important you are
continuing to grow in productive
»
r.
Prctö «fe iy the most spectacular
utilization of Northwest resources
for defense purposes■comes fro® th
power generated from your roaring
mountain streams.
It has not only
been the key to increased production
in many of our essential defense
industries, but it is making this
region a great ^roving ground for
IÜ têk
li <jßkF*
I b#
% ? f
tu#
- Ii Right
country
h it ir #
i n
this N o r t h w e s t
is th© R#y to much of
American's p r o d u c t i v e s i g h t
powerful
asset
defenses.
in b u i l d i n g
©
impregnable
Your r a p i d d e v e l o p m e n t
in
recent years of the vast natural
r e s o u r c e s of this region has
r e s p e c t s made
giant.
in many
it A m e r i c a ’s young
With about
10 percent of the
N a t i o n ’s land area and 3 percent of
its people,
produces,
the P a c i f i c N o r t h w e s t
for example.
ithout
14
Kremlin
"waiting g a m e ” poses.
It is
not an all-out thrust -- a l t h o u g h
it
could become one at the option of a
few r u t h l e s s men --/but a n i b b l i n g
p r o c e s s of slow»
p o i sonous
inf i Itratiorj
from within to weaken first one sector
and then another of the free world.
The C o m m u n i s t s hope e v e n t u a ll y to
succeed
in w e a k e n i ng the defe n s i ve
s t r e n g t h of their grea t e s t target,
our own democracy,
then come
and that they can
in for the "kill."
F i g h t i n g such tactics
new to us.
is
somethin
It is not all-out war.
This is. of course, not the first
time
that we have had serious threats
to the peace and secur i t y
Nation,
of our
ft have fought costly wars --
and many of us here today were active
c o m b a t a n t s --
in the hope that we
were c r u s h i n g once and
attempt
for ail the
of p o w e r - m ad d i c t a t o r s to
d e s t r o y the American way
But
of life.
i am sure you w.f 11 agree that
n e v e r b e fore have we had to face
such sinis t e r t a c t i c s as the present
aware of the c o m m u n i s t menace than
some other secti o n s of our country.
If Red imperialism were a l l o w e d to
have
its way every f r e e d o m
which we
c h e r i s h would be destroyed.
the material
All of
gains which have come
to us as a result of our free
e n t e r p r i s e society w o u l d be wiped
out.
it would be the a u t o c r a t i c
state and not the
individual
and
his happiness and p r o s p e r it y that
would count.
in every national
H i m
it®«#
ende a v o r at the
present time •** is the n e c e s s i t y
of b u i l d i n g
impregnable d e f e n s e s
a g a i n s t the c o n s t a n t threat of
C o m m u n i s t aggression.
here
You people
in the Pacific Northwest»
b e c a u s e of your closer geographlicaI
p r o ximity to the scene of the first
iftsj o r si11 ltary a t t a c k by the
C o m m u n i s t s on the free world —
the
a t t e m p t to crush Korea u n d e r the
Red boot
are p r o b a b l y more keenly
leaders
in the financial
and b usiness
|jfe of the P a c i f i c Northwest,
you
p e o p l e are the pivot around which
much of your coflwftunIty and regional
activity and thought revolve.
t h e r e f o r e welcome
I
this oppo.rtwnlty
to talk over with you and nave your
counsel
on sc?fat of the very g r a v e
p r o b l e m s which c o n f r o n t all of us
in the present w o r l d crisis.
The a 11 - iw p o r t a n t task before us
and one w h i c h d o m i n a t es our thinking
p r o g r a m ©fio your c o o p e r a t i o n
In
voluntary c r edit r e s t r a i n t p rograms
have been n o t a b l e e x a m p l e s of your
service
above
in placing national
immediate personal
interest
interests.
Qur Nat i o n ’s p r o b l e m s are
final analysis,
o
f
course,
in the
tn
ep
ro
o
f
«
of every
Individual
American,
national
p r o g r a m or effort can be
fully e f f e c t i v e without
for no
the
w n o I © h e a r t e d support and c o o p e r a t i o n
of the people tnewselves.
As
-
7
-
generous c o o p e r a t i o n I have r eceived
fra® b a n k e r s and the
b a n k i n g
profession
g e n e r a l ly throughout the country.
Their assistance' has not only beeh
invaluable but a source of real
inspiration
to m .
Tour
represen tat ives **- and some very
p r o minent ones are here
in tnis room
today -- have answered itf call on
n u m e r o u s occasions to co®6 to
Was h i n g to n and give me the benefit
of tneir advice ana r e c o m m e n d a t i o n s
e x a m p l e of this type of c o n t i n u i n g
education
is to be found r i g h t here
In your annual
banning c o n f e r e n c e s
to better a c q u a i n t y o u r s e l v e s with
the current p0 r o b l e m s of your
'■
•
p r o f e s s i o n and your region,
to discover
how these p r o b l e m s fit into the
national
p i c t u r e and to find ways
and m e a n s of d i r e c t i n g your energies
for being here - - a s
campuses
it was on
In former days —
Is to
better equip o u r s e l v e s p r o f e s s i o n s Ily
and
individually to meet the
challenges which
fortunate
living
in
land brings us,
mind one of the
potency
s i g n i f i c a n t factors
in
of our Nation today
Is that we
GOVe RHMENT FINANCE AND IIS SETTING
It serves wet I the progress
pg American life and affairs that
the banners of the Pacific Northwest
join in this annual conference at
f y I { m a n .
Ahile these sessions on the
State College campus could
undoubtedly be spent most enjoyably
In swapping college yarns, that, of
course, Is but « pleasant sidelight
of these meetings.
Our reai reason
The following address, to be delivered for
Secretary of the Treasury John W. Snyder by Under
Secretary Edward H. Foley
before the Pacific
Northwest Conference on Banking at State College,
Pullman, Washington, is scheduled for
(11:00 p.m. EST ), Friday,
release at that time.
uwiiwmim-i— 1 r-mrn -i, ■»»--------------
$
cn
TREASURY DEPARTMENT
Washington
The following address, to be delivered for Secretary of the
Treasury John W. Snyder by Under Secretary Edward H. Foley
before the Pacific Northwest Conference on Banking at State
College, Pullman, Washington, is scheduled for 8 ;00 p.m* PST
(11:00 p.m. EST), Friday, April 11, 19^2, and is for release
at that time*
GOVERNMENT FINANCE AND ITS SETTING
It serves well the progress of American life and affairs that the
bankers of the Pacific Northwest join in this annual conference at
Pullman*
While these sessions on the State College campus could undoubtedly
be spent most enjoyably in swapping college yarns, that, of course, is
but a pleasant sidelight of these meetings. Our real reason for being
here — as it was on campuses in former days — is to better equip
ourselves professionally and individually to meet the challenges which
living in this fortunate land brings us*
To uy mind one of the most significant factors in the potency of
our Nation today is that we Americans, by and large, do not stop our
learning when we close our school books or get a formal degree from
some college. We are ever seeking knowledge and understanding so that
we can work together more effectively for the continuing advancement of
our Nation and its people. Certainly a splendid example of this type
of continuing education is to be found right here in your annual bank
ing conferences to better acquaint yourselves with the current problems
of your profession and your region, to discover how these problems fit
into the national picture and to find ways and means of directing your
energies toward national advancement and progress.
As the years take their toll, some of us may bring a little less
youth each year to these conferences, but we have an invaluable substitute,
to offer and that is experience. In sharing our experiences there is
much knowledge to be gained — not abstract theory but practical knowledge
which has every day application in carrying out the responsibilities
which fall to us as community and national leaders.
In ny own position as Secretary of the Treasury, I have found that
the road has been made much easier because I have been able to draw
upon the experience and thinking of leaders in every sector of our
financial and economic life. And I am especially grateful for the
generous cooperation I have received from bankers and the banking
S-3016
-
2
-
166
profession generally throughout the country* Their assistance has not
only been invaluable but a source of real inspiration to me. Your
representatives — and some very prominent ones are here in this room
today — have answered my call on numerous occasions to come to Washington
and give me the benefit of their advice and recommendations on important
debt management problems. They have had to take time out from already
overcrowded business schedules, but they have done so.
An important service has been performed not only by those who
helped work out financial policy decisions, but also by every country
banker and every city banker who in his own community has helped carry
out these policy decisions. lour solid support of the savings bond
program and your cooperation in voluntary credit restraint programs
have been notable examples of your service in placing national interest
above immediate personal interests*
Our Nation’s problems are in the final analysis, of course, the
problems of every individual American, for no national program or
effort can be fully effective without the wholehearted support and
cooperation of the people themselves. As leaders in the financial and
business life of the Pacific Northwest, you people are the pivot around
which much of your community and regional activity and thought revolve.
I therefore welcome this opportunity to talk over with you and have
your counsel on some of the very grave problems which confront all of
us in the present world crisis.
The all-important task before us -- and one which dominates our
thinking in every national endeavor at the present time — is the
necessity of building impregnable defenses against the constant threat
of Communist aggression. You people here in the Pacific Northwest,
because of your closer geographical proximityto the scene of the first
major military attack by the Communists on the free world — the attempt
to crush Korea under the Red boot — are probably more keenly aware of
the communist menace than some other sections of our country. If Red
imperialism were allowed to have its way every freedom which we cherish
would be destroyed. All of the material gains which have come to us
as a result of our free enterprise society would be wiped out. It would
be the autocratic state and not the individual and his happiness and
prosperity that would count.
This is, of course, not the first time that we have had serious
threats to the peace and security of our Nation. We have fought costly
wars — and many of us here today were active combatants — in the hope
that we were crushing once and for all the attempt of power-mad
dictators to destroy the American way of life. But I am sure you will
agree that never before have we had to face such sinister tactics as
the present Kremlin "waiting game" poses. It is not an all-out thrust —
although it could become one at the option of a few ruthless men —
- 3 -
IS7
but a nibbling process of slow, poisonous infiltration from within to
weaken first one sector and then another of the free world. The
Communists hope eventually to succeed in weakening the defensive strength
of their greatest target, our own democracy, and that they can then
come in for the "kill,”
Fighting such tactics is something new to us. It is not all-out
war. Nevertheless it means continually taking a large share of our
resources, our manpower, and our talents which could otherwise be devoted
to human happiness and prosperity and applying them to building strong
defenses. It is a costly process. It is an unhappy process. let it
is a challenge we must meet if we are to preserve freedom in our own
land and help secure a peaceful world in which men can live without fear.
Right here in this Northwest country is the key to much of Americans
productive might — a powerful asset in building impregnable defenses,
lour rapid development in recent years of the vast natural resources
of this region has in many respects made it America *s young giant. With
about 10 percent of the Nation*s land area and 3 percent of its people,
the Pacific Northwest produces, for example,
25 percent of the total lumber cut;
1*5 percent of aluminum pig,
20 percent of thelead,
18 percent
of thezinc, and
10 percent of thecopper produced in the nation;
7 percentof all electric energy and
22 percent of all hydroelectric power;
6 percent of all paper and allied products; and
1* percent of the value of farm marketings.
These are impressive statistics. But what is more important you are
continuing to grow in productive might year after year.
Probably the most spectacular utilization of Northwest resources
for defense purposes comes from the power generated from your roaring
mountain streams, It has not only been the key to increased production
m many of our essential defense industries, but it is making* this region
a great proving ground for atomic experimentation. Likewise the national
spotlight is currently be5.ng focused on new mineral discoveries out here
which are useful in our defense preparations. Once abandoned Idaho gold
Helds are yielding up monazite sands which are proving to be more
valuable than the gold that the early prospectors were seeking. The
rare earth metals to be found in this sand have long been used for a
variety of industrial purposes but for years our supply had to come
mainly from imports.
This rich and growing Northwest can indeed be proud of the many
ways its productive might is strengthening our Nation's defenses. But
at the same time we must be ever mindful that tremendous productive
168
- k capacity alone will not assure the successful outcome of our present
defense effort* Equally important are the steps we take to coordinate
our actions with other free nations allied with us in this very great
cause, and above all the measures we take right here at home to protect
the soundness and stability of our domestic economy* If in the process
of defense conversion we were to allow our home front economy to
disintegrate, we would lose the battle for freedom as surely as if we
were conquered on military battlefields.
The financial policies which we pursue can make an important
contribution toward keeping our domestic defenses at full strength and
our productive power unimpaired. Your responsibilities as well as mine
are more particularly in this field, and as a professor of mine used to
constantly remark **It is time we got down to cases. 11 But before I take
up some of the more specific problems of concern in this area, I should
like to again borrow from the professor and his classroom technique and
suggest some outside reading which I am sure you will find invaluable*
As you are undoubtedly aware, the Patman Subcommittee has recently
issued a study that promises to be a best-seller in the financial world.
I refer, of course, to the two-volume comoilation of replies to the
Subcommittee's questionnaires on Government fiscal and monetary policies
which^it addressed to the Federal officials directly concerned as well
as private financial and economic authorities.
I know that in the case of my own answers, my staff and I took a
lot of time and care to give full and considered replies to every
question. We endeavored to make the postwar policy record as complete
as possible not only by setting out the decisions made and actions taken
in the field of debt management, but also by reconstructing them in the
ight or the circumstances at the time and pointing out the appraisals,
conclusions and judgments which governed our decisions. X am sure that
the others who submitted replies to the Subcommittee's questions sought
to be equally responsive.
&
. To be sure in Perusing this study you will find many points of
view on major policy questions. And after reading the record you may
0ti1!r viewP°ints* But the important contribution which this
Will ^
i u
Seei1S
m * is in the keener appreciation its reader
ill have of the role of monetary and debt management policy in the
continued growth and stability of our econony.
has h l l T n h ì t e^ ien
St da;T L of our countlT> the Secretary of the Treasury
everv seotnr ^
by U w W1^h *mPortant responsibilities affecting almost
l l i d n l l n f L Ì our+econof-c life. The first and basic policy directive
Department
* Treasur^ 111 the original Act creating the
merit of +U in
WaS to Prepare plans for the improvement and manage
ment of the revenue, and for the support of public credit.»»
8
- s Ever since that time, maintenance of confidence in the credit of
the United States has been the No. 1 objective of the Treasury Department.
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,
depends upon our ability as
healthy and growing, and to
promoting this end. In the
of confidence in the credit
fronts*
safeguarding the credit of the Government
a Nation to keep our free enterprise economy
use our governmental instruments wisely in
financial area alone, however, maintenance
of the Government requires actjon on many
*
With respect to our domestic policies, it requires sound revenue
and expenditure programs, operating within the framework of a Federal
budget policy which is appropriate to economic conditions. It requires
continuing attention to greater efficiency and lower costs of govern
mental operations. It requires a debt management policy which acts to
counter any pronounced inflationary or deflationary pressures: which
provides securities to meet the current needs of various investor
groups^ and which succeeds in maintaining an orderly situation in the
public market for United States Government securities. It requires the
use of debt management policy cooperatively with monetary-credit policy
to contribute toward healthy economic growth and reasonable stability
in the value of the dollar* It requires the conduct of day-to-day
financial operations of the. Treasury in a manner most conducive to the
maintenance of sound conditions in the Government's financial markets.
And, finally, in the international area, it requires management of the
coun ry s international monetary relations with the aim of maintaining
a sound currency domestically and internationally, and promoting a
better trade and exchange situation with friendly countries.
In the light of these responsibilities and these objectives, I
should like to take up a very practical financing problem which currently
laces us and that is the financing of a substantial budget deficit.
As most of you probably know, last June marked my fifth year as
¡secretary of the Treasury. I am very proud of the fact that in those
+
were able to show an over-all budget surplus of close
•° L
and by using that surplus, plus excess funds remaining
in the cash balance at the end of World War II financing, we were able
o reduce the total public debt by some ;1$ billion. Since last June,
however, heavy defense expenditures have forced us into deficit financing.
Some ox the additional borrowing which we shall have to do can be
taken care of by the investment of trust fund accounts in Government
securities. But a major portion must be financed by borrowing from
Sound debt management dictates that as much as possible of this
public borrowing be from nonbank sources. It is generally agreed that
this must be done if we are to avoid inflationary pressures which would
result from financing the entire deficit through the banking system.
In this connection I should like to emphasize that while there appears
to be a lull, at present, in inflationary pressures, 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*
To some it might seem at first glance that it ought to be a pretty
simple matter for the Treasury to finance the entire deficit through
nonbank sources -- as it did to the gentleman who wrote us not long
ago that the Treasury could easily sell an additional $10 billion in
Government securities each year to nonbank investors by “sweetening"
the interest rate on Series E bonds and by offering an especially
attractive security for institutional investors* That in itself is far
from the whole story. The Treasury's ability to borrow from nonbank
sources depends upon many factors, not the least of which is the invest
ment position and preference of institutional investors- as well as
individuals. In contrast to the World War II situation, for example,
a large sector of industry and trade is engaged in substantially normal
operations, including capital expenditure programs, which draw heavily
on investment funds.
There are those, of course, who would solve our deficit financing
problem simply by cutting Government expenditures to the point where
they would equal revenues. It sounds good in theory, but here are some
salient facts which do not make wholesale expenditure slashing very
practical from a national security standpoint. More than three-fourths
of total budget expenditures in 1953 will be for major national security
programs such as military services, international security and foreign
relations, atomic energy, defense production and economic stabilization,
civil defense, and merchant marine activities* Here are where the big
cuts would have to be made. Expenditures for all other Government
programs combined have declined since 1950, although some of these
programs contribute directly to the defense effort and have been expanded
such as defense housing, aid for schools in defense areas, generation
and transmission of power for atomic energy and defense plants.
It certainly is proper to effect all the economies in government
operations that circumstances permit. During ny tenure as Secretary of
he Treasury I have carried on an intensive management improvement
program to modernize operations toward increased business efficiency,
better service to the public, and the reduction of operating costs
whenever possible,^ As a result of these efforts I have been able to
report to the public and to Congress dollar savings in excess of $56
million through the fiscal year 19^9 and dollar savings in excess of $4
million and $8 million respectively for fiscal years 1950 and 19 5 1,
-7-
171
I have been deeply gratified by the Congress» recent approval of
the President's and my recommendations for the reorganization of the
Bureau of Internal Revenue* Through this reorganization we are going
to forge a truly revitalized agency of Government which will not only
render better service to the taxpayers but which will help to assure that
our tax laws are administered without favor or discrimination*
While we must continue our efforts to bring about the utmost
efficiency and economy in all branches of the Government, these endeavors
will not solve our current deficit financing problem. Our really big
expenditures are in the defense area, and I seriously doubt that the
Congress will find that these expenditures can be cut drastically with
out endangering the defense effort.
There is, of course, no one single approach which is going to solve
the entire deficit problem for us* In order to formulate a program suited
to the current situation, the Treasury Department — 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 partici
pates) 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 widtf 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*
But one thing I am sure of — we are going to come out with better
answers to our problems because of the sharing of views and experiences,
we are all on the same team — democracy's team — and I am hoping to
take back to Washington with me some helpful advice and suggestions from
you people here in the Pacific Northwest* In such an invigorating climate,
there cannot help but be a lot of clear thinking.
and
° g Am?ri=a js t?le p°wer of its people, throughout the length
fn-r +J;eadth of this l^d, freely and voluntarily thinking and working together
° T the common g°od* -We have forged a great Nation, we have risen to world
p wer, because we were willing to give to society more than we exacted from
d° ^ g
have found not °nly great material enrichment but joy in
mrvrfl-iing for.the future of mankind* So long as we hold fast to this great
frppHnSoeCeSt-."C t]i e guiding ldght of our democracy — our Nation and the
eedoms and liberty for which it stands will be immortal.
0O0
April 2 , 1952
Commissioner Dunlap:
Please note carefully the final
paragraph of this proposed release
which indicates that most of the new
jobs will be filled by promotion«
This, so far as I know, is the first
time we have made this statement to the
press but, since this is our honest
expectation, I think there is consider
able virtue in making it known.
- Assistant Commissioner
3
will insure th» selection of personnel on the basis of
he said,
merit alone,"
"They are being announced so that the publie may know that
the Heron»© Sendee, in accordance with the spirit of the He organisation
Plan, will have a merit system based upon the highest standards of
competence, integrity and loyalty**
2,
As soon as the qualification standards for these positions
have been approved by the Civil Service Commission they will be
forwarded to the heads of all principal Internal Revenue field offices.
Full publicity will be given to these standards in order that there
may be added to the list of personnel under consideration by the
Board any others whose names were not presented in the first assembly
of information described in the preceding paragraph,
3,
All names submitted will be referred to the Selection Board
which, after careful evaluation of the qualifications of the persons
under consideration, will prepare a list of proposed candidates for
consideration by the 001^ 1801 ™'*’'*, ranked according to such order of
consideration as the qualifications and record of each candidate
Justifies,
4,
After consideration of the Board*s recommendations, the names
of candidates selected for the various positions will be submitted
to the Civil Service Commission,
The Civil Service Commission will investigate the quail*
fioations of the nominees before acting on the recommendation,
6*
If a sufficient number of qualified employees are not found
within the Revenue Service, the Civil Service Commission will be
requested to hold an open competitive examination in the regions
where the vacancies exist.
for these positions,
*The safeguards that have been ©st&bjLiSìhod
Proposed Press Release
treasury
mpmimm
f
Bureau of Internal Revenue
Commissioner of Internal Revenue John 3« Dunlap announced today
the procedure to be used la selecting officials promoted or appointed
under the Civil Service who are to replace the politically appointed
Collectors abolished by the Presidents Reorganisation Plan*
A key feature of the procedure is the establishment of a
Selection Board designed to insure that all promotions of career
personnel to the positions are made strictly on a merit basis*
The
Board will be composed of an-impartial group of ¿uts liaitiilfcii^ officials
A
with broad experience in personnel selection*
tinder Civil Service rules, the Bureau can fill the positions
of District Ccsnaissianers and Deputy District Commissioners either
by promotion of qualified career employees who already have civil
service status or by appointment of one of the top candidates in a
competitive examination open to the publle#
There will be no blanketing in of present incumbents, Commissioner
Dunlap said*
The present Collectors without civil service status
will net be appointed to any of these positions unless they qualify
through open competitive examinations*
The steps being taken by the Bureau, which have been developed
in consultation with the Civil Service Commission, follows
1*
Pertinent performance information Is now being assembled on
all employees of the Revenue Service in each district who, by reason
of their present positions or other qualifications, appear to merit
consideration for appointment to these positions*
j
3
r\x~ f"
will insure the selection of personnel on the basis of merit alone,"
he said.
"They are being announced so that the public may know that
the Re-venue Service, in accordance with the spirit of the Reorganization
Plan, will have a merit system based upon the highest standards of
competence, integrity and loyalty."
2
2.
As soon as the qualification standards for these positions
j have been approved by the Civil Service Commission they will be
forwarded to the heads of all principal Internal Revenue field offices.
Full publicity will be given to these standards in order that there
may be added to the list of personnel under consideration by the
Board any others whose names were not presented in the first assembly
of information described in the preceding paragraph.
3.
All names submitted will be referred to the Selection Board
which, after careful evaluation of the qualifications of the persons
under consideration, will prepare a list of proposed candidates for
*f
t
| nj "tUt*
consideration fcy the Commissioner^ ranked according to such order of
consideration as the qualifications and record of each candidate
justifies•
4.
After consideration of the Board’s recommendations, the names
J of candidates selected for the various positions will be submitted
¡to the Civil Service Commission*
5*
The Civil Service Commission will investigate the quali-
| fications of the nominees before acting on the recommendation#
6.
If a sufficient number of qualified employees are not found
|within the Revenue Service, the Civil Service Commission will be
1
I
,
I
^requested to hold an open competitive examination in the regions
I where
the vacancies exist.
Commissioner Dunlap expressed the belief that jatKasfc of the aaur
jn-ha .wm
fry -hhfl pT-omnfirn -~f career
officials
whn
u iu
the qualification standards established by the Civil Service Commission
for these positions.
’’The safeguards that have been established
Proposed Press Release
TREASURY DEPARTMENT
itÂM>
Bureau of Internal Revenue
r«T *-
Vf
\j
f
I
Commissioner of Internal Revenue John B. Dunlap announced today
the procedure to he used in selecting officials promoted or appointed
under the Civil Service who are to replace the politically appointed
Collectors abolished by the President’s Reorganization Plan.
A key feature of the procedure is the establishment of a
Selection Board designed to insure that all promotions of career
personnel to the positions are made strictly on
Board will be composed of an impartial group of
with broad experience in personnel selection.
Under Civil Service rules, the Bureau can fill the positions
of District Commissioners and Deputy District Commissioners either
by promotion of qualified career employees who already have civil
service status or by appointment of one of the top candidates in a
competitive examination open to the public.
There will be no blanketing in of present incumbents, Commissioner
Dunlap said.
The present Collectors without civil service status
will not be appointed to any of these positions unless they qualify
through open competitive examinations.
The steps being taken by the Bureau, which have been developed
in consultation with the Civil Service Commission, follow:
1.
Pertinent performance information is now being assembled on
all employees of the Revenue Service in each district who, by reason
V
7IQ
KJ
TREASURY DEPARTMENT
Bureau of Internal Revenue
k
IMMEDIATE RELEASE,
Thursday3 April 10, 1952..
S-3017
Commissioner of Internal Revenue John B. Dunlap announced
today the procedure to be used in selecting officials promoted
or appointed under the Civil Service who are to replace the
politically appointed Collectors abolished by the P r e s i d e n t s
Reorganization Plan.
A key feature of the procedure is the establishment of
a Selection Board designed to insure that all promotions of
career personnel to the positions are made strictly on a merit
basis. The Board will be composed of an impartial group of
leading career officials with broad experience in personnel
selection.
/
Under Civil Service rules, the Bureau can fill the positions
of District Commissioners and Deputy District Commissioners
either by promotion of qualified career employees who already
have civil service status or by appointment of one of the top
candidates in a competitive examination open to the public.
There will be no blanketing in of present incumbents,
Commissioner Dunlap said.
The present Collectors without civil
service status will not be appointed to any of these positions
unless they qualify through open competitive examinations.
The steps being taken by the Bureau, which have been
developed in consultation with the Civil Service Commission,
follow:
1.
Pertinent performance information Is now being
assembled on all employees of the Revenue Service
in each district who, by reason of their present
positions or other qualifications, appear to merit
consideration for appointment to these positions.
ISO
2
2.
As soon as tho qualification standards for these
positions have been approved by the Civil Service
Commission they will be forwarded to the heads of
all principal Internal Revenue field offices.
Pull publicity will be given to these standards
in order that there may be added to the list of
personnel under consideration by the Board any
others whosq/'names were not presented in the
first assembly of information described in the
preceding paragraph.
3.
All names submitted will be referred to the
Selection Board which, after careful evaluation
of the qualifications of the persons under
consideration, will prepare a list of proposed
candidates for consideration by the Commissioner
and the Secretary of the Treasury, ranked
according to such order of consideration as the
qualifications and record of each candidate justifies.
After consideration of the B o a r d ’s recommendations,
the names of candidates selected for the various
positions will be submitted to the Civil Service
Commission.
5.
The Civil Service Commission will investigate the
qualifications of the nominees before acting on
the recommendation.
6.
If a sufficient number of qualified employees are
not found within the Revenue Service, the Civil
Service Commission will be requested to hold an
open competitive examination in the regions where
the vacancies exist.
Commissioner Dunlap expressed the belief that many of the
present career officials in the Bureau will meet the qualification
standards established by the Civil Service Commission for these
positions.
MThe safeguards that have been established will insure
the selection of personnel on the basis of merit alone,” he said.
They are being announced so that the public may know that the
Revenue^Service, in accordance with the spirit of the
©organization Plan, will have a merit system based upon the'
highest standards of competence, integrity and loyalty.”
oOo
TREASURY DEPARTMENT
Washington
W k IMMEDIATE RELEASE,
---- April 9.
^-19$?
feeBureau of Customs announced t^aj^relinDjiary figures showing the
quantities of wheat and wheat flour/%w6%^¥,^r^tiidrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 19bl, as modified by the President's proclamation of April 13, 19b2,
for the 12 months commencing May 29, 1951? as follows:
Wheat
Country
of
Origin
Imports
s Established 1
#
Quota
•
8May 29,-1553.,
#.
4
îiügril 8, 1952
(Bushels)
(Bushels)
795,000
Canada
—
China
—
Hungary
—
Hong Kong
■
Japan
100
United Kingdom
—
Australia
100
Germany
* 100
Syria
—
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
—
Cuba
1,000
France
—
Greece
100
Mexico
—
Panama
—
Uruguay
—
Poland and Danzig
—
Sweden
—
Yugoslavia
—
Norway
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Repi&lics
100
100
Belgium
z '
tiUU,000
\\
680,099
Wheat flour, semolina,
crushed or cracked
wheat, and similar
______ wheat products
Established:
Imports
Quota
: May 29, 1951)
x
» to April 8, 1#2
(Pounds)
C (Pounds)
3 ,815,000
2b ,000
13,000
13,000
8,000
75,000
1,000
**
—
37
—
—
—
—
3, 815,000
11,200
*62
5.000
5.000
1.000
1,000
1,000
lb,ooo
2,000
10
—
—
—
—
—
—
-
12,000
1,000
1,000
1*000
1,000
2,000
u5
1,000
1,000
1 ,00 0
1,000
1,000
1,000
mm
b,ÖÖÜ,ÜÖÖ
680,lbó
3,828,377
TREASURY DEPARTMENT
Washington
foh immediate
182
RELEASE,
S-3018
Thursday, April 10, 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, 19hl, as modified by the President’s proclamation of
April 13, l ? h 2 , for the 12 months commencing May 29, 1951* as follows:
IW Warn is
*
•
Country
of
Origin
Wheat
:
:
Imports
: Established
;
Quota
May 2 9 , 1951 , to
:
April 8 , 1952
(Bushels)
(Bushels)
7 9 5 ,0 0 0
Canada
China
m
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
. 100
New Zealand
m.
Chile
Netherlands
100
Argentina
2,000
Italy
100
..
Cuba
Prance
1,000
Greece
Mexico
100
Panama
—
Uruguay
am
Poland and Danzig
M,
Sweden
mm
Yugoslavia
Norway
—
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Nttion of Soviet
Socialist Republics
100
digiuni
100
680,099
800,000
680,1R6
-
W Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
•
Imports
Established :
Quota
s May 2 9 , 1951,
: to April 8 , 1952
(Pounds)
(Pounds) .
3,815,000
2lt,000
13,000
1 3 ,0 0 0
-
8,000
7 5 ,0 0 0
37
1,000
5,000
5,000
1,000
1,000
1,000
ih,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
•
«
•
10
-
mm
mm
mm
mm
mm
*■
-
:
h ,
3,815,000
11,000
62
-
.2,000
-
115
-
mm
mm
mm
mm
mm
-
-
-
-
000,000
3 ,8 2 8,37 7
/
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
vjUr
April
1952
7
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within tariff-rate qpota limitations
from the beginning of the quota periods to March 29, 19#, inclusive, as
follows:
period and Quantity
Commodity
Whole milk, fresh or
Imports as of
March 29, 1952
Calendar year
3,000,000 Gallon
12,1*92
Calendar year
1,500,000 Gallon
23O
50,000,000 Pound
Nov. 1, 1951Mar. 31, 1952
Fish, fresh or frozen,
filleted, etc#, cod,
haddock, hake, pollock,
cusk, and rosefish...•*• Calendar year
31,1*72,108 Pound
White or Irish Potatoes:
, 12 months from
, Sept# 15, 1951
. Calendar year
Petroleum and petroleum
products...............
Unit
of
Quantity
63,037
(1)
Quota filled
150,000,000 Pound
21*9,600,000 Pound
3U,910 ,38O
13,067,230
5,000,000 Pound
2,903,656
Calendar year .
1,1*00,033,787
Vene zuela
Netherlands
Other countries
Almonds:
shelled.... •
2 , 9 # ,81*1',9U9 Gallon
930,8#, 65l Gallon
1,090,11*8,800 Gallon
1,573,373
12 months from
#1*,500,000 Pound
prepared, etc
915,209,265
753,03^,338
UU0,780
October 1, 1951
*nr the total
not more than 500,000 pounds shall be blanched, roasted, or
otherwise°prepared or preserved kmonds (not including almond paste).
(1)
(
imports for consumption at the quota rate are limited to 7,868,027 Poun
during the first three months of the calendar year.
184
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, April IO , 1952
S-3019
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 29, 1952, inclusive, as
follows:
Period and Quantity
Commodity
Whole milk, fresh or
s o u r C a l e n d a r
Unit
of
Quantity
Imports as of
March 29, 1952
year
3,000,000 Gallon
1 2 ,U?2
Cream,,*..**.....
Calendar year
1,500,000 Gallon
230
Butter..... ........ .
Nov* 1, 1951Mar* 31, 1952
Fish, fresh or frozen,
filleted, etc,, cod,
haddock, hake, pollock,
cusk, and rosefish..* *.• Calendar year
50,000,000 Pound
63,037
31,^72,108 Pound
Quota filled
( 1)
White or.Irish Potatoes:
certified seed.*0...*... 12 months from 150,000,000 Pound
other................ Sept. 15, 1951 2U9,600,000 Pound
Walnuts
Calendar year
5,000,000 Pound
5U,910,380
13,067,230
2,903,656
Petroleum and petroleum
products••..**•,.••••••* Calendar year
Venezuela
Netherlands
Other Countries
2,956,8Ul,9U9 Gallon
930,857,651 Gallon
l,090,lU8,800 Gallon
1,[¡.00,033,787
915,209,265
753,03U,338
Almonds:
shelled................. 12 months from
1,573,373
■ail,500,000 Pound
prepared, etc........... October 1, 1951
Ulj.0,780
*0f the total, not more than 500,000 pounds shall be blanched, roasted, or
otherwise prepared or preserved almonds (not including almond paste).
(1) Inports 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
AprilN9, 1952
Ihe 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, 195>2, to
March 29, 1952, inclusive, as follows:
Products of the
Philippines
*
5
Established Quota
Quantity
Unit of
Quantity
s
5
Imports as of
March 29, 19£2
Gross
152,09$
200,000,000
Number
3$0,U30
14$,000,000
Pound
li,82H,83U
Cordage.........
6,000,000
Pound
1,062,U23
Rice............
1,0U0,000
Pound
-
l,90i»,000,000
Pound
Buttons........ .
8£0,000
Cigars..........
Coconut Oil......
(refined....
Sugars
(unrefined. ♦.
Tobacco.... .
303,U89,697
6,£00,000
Pound
U39,U60
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, April 10, 1952
S-3020
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.
l6, from January 1 , 1952, to
March 29, 1952, inclusive, as follows:
Products of the
Philippines
Buttons••«•*•••*«.
Established Quota
Quantity
850,000
»
: Unit of
s Quantity
I
:
:
•
«
Impoi-ts as of
March 29, 1952
Gross
152,095
350,1*30
Cigars
200,000,000
Number
Coconut Oil*....*.
Ul8,000,000
Pound
.11,821*, 83U
Cordage
6,000,000
Pound
1,062,1*23
Rice.......... .
1,01*0,000
Pound
-
(refined,....
Sugars
(unrefined.*«
l,90ii, 000,000
Pound
Tobacco «•*•«•«•...
6 ,500,000
303,1*89,697
Pound
1*39,1*60
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 ..........
P.anaHa ...............
l?Y«aru»ft ...............
British India ........
Netherlands ..... ..
Switzerland .........
crinm . . . . . . . . . . . . . .
Janan ..... .
PVvinA . . . . . . . . . . . . . . . .
i
lcrr
tP
m*
t'
. ...............
...._........
■“Sj
HnVia ..... .
ft^TMitanv .... ..
jluajiy
: Total imports
: Sept . 20', 1951 to
: Aoril 8. 1952
4,323,457
239,690
227,420
69,627
68,240
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 of Customs
27;370
233,803
-
mm
mm
mm
261.173
Imports
1/
: Established :
Sept.'
20,
1951
:
33-1/3* of !
: Total Quota : to Aoril 8. 1952 ...
1,441,152
27,376
75,807
-
22,747
14,796
12,853
25,443
7,088
-
1.599,886
27.370
Si
IMMEDIATE RELEASE' '
5
_______ April 9w 1952
V
■p
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 listers) (in pounds)
Cotton under 1-1/8 inched other than rough or harsh under 3/4”
Imports Sept. 20,19^1, to April 8, 1952, inclusive
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan . . . .
P e r u .... .. ; .... .......
British India ......
China ................................
M e x i c o .............. ..
Brazil ............ ..
Union of Soviet
Socialist Republics
Argentina ... .........
Haiti . . . . . . . . . . . . . . . .
Ecuador .............
783,016
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
Imports
.• »
40,185
—
8,883;259
142,837
•u
Country of Origin
Established Quota
Honduras . . . . . t...... ..
P a r a g u a y .............
Colombia.... ...... ..
Iraq ............ .............
British East Africa . . .
Netherlands E. Indies
Barbados ... i........................
l/0ther British W. Indies
Nigeria ................
2/0ther British W. Africa
p o t h e r French Africa . . .
Algeria and Tunisia . . .
Imports
752
871
124
*
195
mm
2,240
71,388
mm
mm
mm
—
21,321
5,377
16,004
689
—
—
***
—
*•
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, erf less than 3/4”
Imports Sept. 20, TQcfrj to March 29, 1952
Established Quota (Global)
,
70 000,000
' Imports
1 ,281,110
Cotton 1-1/8“ or more / but less^ than l-ll/l6a
Imports Feb » 1,1952 to April 8A JL992.
Established Quota (Global)
,
45 656,420
Imports
17,10*5,076
TREASURY DEPARTMENT
Washington
H-iMEDI/TE RELEASE
S-3021
Thursday, April 10, 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 l~l/ 8 inches other than rough or harsh under 3/hn
Imports Sept« 20^1951 > to April 8, 1952, Inclusive' ~
Country of Origin
Egypt and the Anglo^
Egyptian Sudan .•.«
Peru or*...........
British India
»
China
Mbxxco 9 ###o#•» «« •«i
By3.2xX i^to••••§j »«o
Union of Soviet
Socialist Republics
Argentina ......... .
Haiti
*&«*«••••• •»
EdI8.dOI* deoeoo«>0d0eO0
Established Quota
7 8 3 ,8X6
2li7,952
2,003,^83
1,370,791
8,883,259
6X8,723
U75,X2l*
5,203
237
9,333
Imports
1*0,X85
8,883,259
Xll2,837
«-
Country of Origin
Established Quota
Imports
Honduras «.»o..e.e.e«
Paraguay «t»«».
Colombia
Iraq ««»co.«.»».»..©«
British East Africa •
Netherlands E» Indies
Barbados e«o..o...r.«
l/Other British ¥, Indies
Nigeria (?«oc«o®»»»ooo
2/0ther British W* Africa
3/other French Africa «
Algeria and Tunisia.»
l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago*
2/ Other than Gold Coast and Nigeria»
3/ Other than Algeria, Tunisia, and Madagascar«
Cotton, harsh or rough, of less than 3 / h n
Imports Sept» 20, 1951«, to March 29, 195>2
Cotton 1-1/8M or more, but less than 1-11/16”
Imports Feb0 1, 1952“to April 8, 1952
~
Established Quota (Global)
Established Quota (Global)
70,000,000
Imports
1 ,281,110
>£,656,1120
Imports
X7,Wi5,076
g
CD
COTTON HASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE LAP WASTE, SLIVER WASTE, MID ROVING WASTE, WHETHER OR MOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled b y cotton wastes other than comber wastes made from cottons of l-3/lo inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy;
■ ■■ ■ ■ ■ ■ ■ I...,?
r-
-
u
i
#
Country of Origin
:
o
United Kingdom
Canada e e » Q * o e * e
France » « * « • « «
British India
Netherlands
Switzerland
B
e
l
o • $
o c > c « < k a o «
«
•
« » •■ < »
. < > » • « « * »
£ ^ IL "iX i7 i
JSpS.ll
China
Egypt o , « e * » » a » 4 »
Cuba
Germany e « » * * « * »
Itsly Q ® <5 C © O
o
»
* o
«
»
©
»
o
«
o « e
»
«
«
Established : Total imports
TOTAL QUOTA : Sept, 20, 1951 to
April 8, 1952
;
U,323,1*57
239,690
227,1*20
69,627
68,21*0
11,388
38,559
310-,535
17,322
8,335
6,51*1*
76,329
21,263
1 1*82,509
1/ Included in total imports, column 2«
Prepared by the Bureau of Customs
27,370
233,803
-
-
: Established”
:
:
Imports
Sept»
20, 1951
33-1/3? of :
Total Quota : to April 8, 1952
1 ,1*1*1,152
27,370
*»
* *
75,807
—
22,7U7
11*,796
12,853
—
—
* *
OKI
—
—
-
261,173
:
mm
«
e»
—
tm
«a
mm
*■
25,1*1*3
7,088
90
1,599,886
27,370
—
U
' o eo r
àiarii 10, 1952
to
«K. m i m f s
the following transactions were mads in direct and guaranteed
securities of the Government for Treasury investment and other
accounts during the month of March, 1952s
Purchases * . * • • • • • •
.
«13,830,000
Sales • • * * • • • « « * •
*
13.3faU.800
Met psrehases
* * * * * * *
* * # * • * # ♦
«
fa85,200
(EEû .) *. 0. Basi«»
Chief, Division of Investments
D. of I.
m* 36
Wisecarver U/l0/52
TREASURY
DEPARTMENT
WASHINGTON, D .C .
Information Service
RELEASE MORNING NEWSPAPERS,
tur da y . Me,r eh 1 5 -, 1 9 5 2 .
During the month of -February^ 1952
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
Snyder announced today.
0 O0
TR EA SU R Y D E P A R T M E N T
RELEASE MORNING NEWSPAPERS,
Tuesday, April 15, 1952.
During the month of March,
S-3G22
1952
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $^85,200, Secretary Snyder
announced today.
oOo
CO t
ì
a wàÈÈMwM
.
\$È im
Ai
firn Secretary «£ thè freeeexy asmoonsed lest evenlng M
$l,kGOfOQQ,QQQ, or
freaeory bilia to be datad Aprii 17 and io
mature July 17# 1952» whieii «or« effered m Aprii 10» w
eerwi Sarte
or
thè tender* iter
opened et thè Federai Ea-
Aprii là,
The deteìle of this leene ara a» folloni
fatai apolli ter - #2f2^»^0»000
fotal acc«pt®d
-
1*1*00»313 »ODO
(lusiade» $ao&,925#000 eatered oa a
basì» and accepted la
Average prie»
• '^SÉp * dqaivalftat rate ai dieeeenfc appreae.
f € ll a t tbe M
p
prie# ehown belo»)
per g w
Range of aceepted competitive bidet
ilifii
m
99*608 Sqaivaleafe rete of discount appresa. 1*551$ per aa*aa
im
*
9 9 * ì$ ì
*
«
*
*
*
U 6$B $
*
(81* perorai of thè aiacimt h U for et thè lee pirico m i eeeepted)
Federe! Reeerve
fotel
M
Bistrict
i
B o sto n
to#W4#c^0
Q®
1*0 ,871,000
1*6,58 5,0 0 0
80.325.000
37.069.000
i * S S M éèM
Ree Xork
Ph i p f o l f r
Cleveland
Richmond
Atlante
Chicago
Si* Leale
bisneepolle
i n i City
61 315.000
18.785.000
27.289.000
169,780,000
36.773.000
7,167,000
65.270.000
87,895,0«»
22,286,620,000
|1,800,318,O®3
233, 118,000
t»7,681,900
12,1*67,000
82.530.000
.
Putiififf
|
'ttLti&.OQO
-V |
San ywnoi«eo
70741.
*
TREASURY
DEPARTMENT
RELEASE MORNING NEWSPAPERS,
Euesday, April 15» 1952 >
S~3023
The Secretary of the Treasury announced last evening that the
tenders for $1,400,000,000, or thereabouts, of 91-day Treasury bills
to he dated April 17 and to mature July 17, 1952, -which were offered
on April 10, were opened at the Federal Reserve Banks on April 14.
The details of this issue are as follows:
Total applied for
Total accepted
Average price
$2 ,2 8 6 ,6 2 0 ,0 0 0
1,400,318,000 (includes $2 0 8 ,9 2 5 ,0 0 0
entered on a non-competitive
basis and accepted in full at
the average price shown .
below)
9 9 .5 8 3
Equivalent rate of discount approx.
1 .6 5 0 $. per annum
Range of accepted competitive bids:
- 9 9 .6 0 8 Equivalent
1
- 9 9 . 5 8 1 Equivalent
1
High
Low
rate
.5 5 1 $
rate
.6 5 8 $
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
Total
Applied for
___ 11 0 .983,000
76,354 ,000
863,532 ,000
17.745 ,000
46,585 ,0 0 0
18.745 ,000
27,249 ,000
169,740 ,000
36,773 ,000
7,167 ,000
6 5 , 2 7 0 ,000
47,895 ,000
6 3 , 2 6 3 ,0 0 0
$2 ,2 8 6 ,6 2 0 ,0 0 0
$1,400, 3 1 8 ,0 0 <
$
New York
P h ila d e lp h ia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Accepted
40,434,000
1,553,642,000
40.471.000
46.585.000
2 0 .3 2 5 .0 0 0
37.069.000
2 3 3 ,1 1 8 , 0 0 0
47.681.000
12.467.000
82.530.000
61,315,000
0O O 0
3 -
any State, or any of the possessions of the United States, or by any local tax
ing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered to
be interest.
Under Sections
bZ and 117 (a) (1) of the Internal Revenue Code,
as amended by Section 115> of the Revenue Act of 19Ul, the amount of discount at
which bills issued hereunder are sold shall not be considered to accrue until
such bills shall be sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder need in
clude in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue.
of the circular may be obtained from any Federal Reserve Bank or Branch.
Copies
-
2
-
unless the tenders are accompanied by an express guaranty of payment by an in
corporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final.
Subject to these reservations, non-competitive tenders for i)200,000
or less without stated price frcaa any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on
April 2 k , 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.
April 2 k , 1952»—
Cash adjustments Till be
made for differences between the par value of maturing bills accepted in exchange S
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
m
all taxation now or hereafter Imposed on the principal or interest thereof by
TREASURY DEPARTMENT
Washington
I
FOR RELEASE, MORNING NEWSPAPERS,
Thursdayf April IT, 1932.____ _•
7
The Secretary of the Treasury, by this public notice, invites tenders for
Si. UOO. OOP. OOP ... or thereabouts, of _2 i _ - d a y J r e a s ^ b i l l S f, f ^ c a s h ^ ^ ^
in exchange for Treasury bills maturing
April 2k. IfiSg.
7 to be issued on
a discount basis under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series «ill be dated. A?r11^ '
will mature
interest.
July 2k, 1952
^
----- ’ M d
, when the face amount «ill be payable without
They willbe issued in bearer form only, and in denominations of
SI,000, $5 ,000, $1 0 ,000, $100,000, $500,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, Agrll 21,
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1 ,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 10 0, with not more than thr
99.9 2
5.
decimals, e. g.,
Fractions may not be used.
It is urged tha
be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Brandies on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their c m account.
Tenders rail be received without deposit from
incorporated banks and trust companies and from responsible and recognised
dealers in investment securities.
Tenders iron others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
RELEASE MORNING NEWSPAPERS,
Thursday, April 17, 1952.
S - 3 024
The Secretary of the Treasury, by this public notice, invites. .
tenders for $1,400,000,000* or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing April 24, 1952,
in the amount of $1 ,2 0 0 ,6 9 0 ,0 0 0 , 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 24, 1952,
and will mature July 24, 1952, when the face amount will be payable
without interest.
They will be issued in bearer form only, and in
denominations of $1 ,0 0 0 , $5 ,0 0 0 , $1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and
$1 ,0 0 0 ,0 0 0 (maturity value).
•Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, April 21, 1952.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
multiple of $ 1 ,0 0 0 , and in the case of competitive tenders the price
offered must be expressed on the basis of 1 0 0 , with not more than
three decimals, e, g., 99.925.
Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Others than banking institutions will not be permitted to
submit tenders except for their own account.
Tenders will be
received without deposit from incorporated banks and trust companies
and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted 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
deject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $2 0 0 ,0 0 0 or less without stated price
fnom any one bidder will be accepted in full at the average price
2
(in three decimals) of accepted competitive /bids. Settlement for
accepted tenders in accordance with the hids must be made or
completed at the Federal Reserve Bank on April -2b j 1952, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing April 24, 1952.
Cash a n d e x c h a n g e 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 ine bills, shall nou
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,
i n h e r i t a n c e g i f t 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 9 .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 b 2 and 117 (a) (1) of thè 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
v
a
•1
^
~
the
include in hi: income tax return only- the difference between
price'paid for such bills, whether on original iss ue 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. 5 Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
oOo
Thè Troncar/ also rattarntod ti# ?o ì H ! ò b vi%h raspaot to blocked
fund* Iß th« United State» and ln which «ntfearitia« «r other portons
ln Conwmnlat Chino h«?o mn Interest, direct or indirect,
ft*? applications
b|r concerns festini; raprasantnliwa* In Chian rainaittag the nablocktag of
«och fonda will not fee granted*
1§
'!
11 jfi
-
S- I
" I I-P
In roe one© to inquirid# fro® interested k m v ì c m bus!ass® concern*,
‘
Secretary of the •Treasury Snyder* with the concurrence of Secretary
Acheson, today issued the follow!ng stmteme&ti
*
*
State
JL_ )
A»^rican concern* who*® rep resent stives are detained In^China v!ll be
licenced under the foreign Meet* Control Kegul&tlo»» to pay claim* against
their China»© ageacls* only on the baci* of arrangement* assuring that the
interetted concern1» representatives are safely released to an area outside
Communiet China, such a» Hong Kong, before the funds are sent into China,
Chine«« Communist author!tie* hare detained a number of »neh representa
tive* and have indicated that until the local obligation» of the companies
are paid these representatives will not be released.
In various cases the
represent stives have been threatened with ismrlsnnmeni or even more drastic
treatment if the payments were not forthcoming.
&« * result », number of American concerns whose representative* h.-ve
been detained is Chine have filed Replications for licenses requesting per
mission to pay such local claims,
the Mwriees concerns hsve stated that
the claims against them are of a lawful nature
m d arose as a result of the
closing of their Chinese offices.
in approximately a doses Case* the Treasury Department has in the past
licensed the payment of claims which appeared to be of such & nature and
were reasonable In amount, but the payment of the claims did not brin^
about the release of a number of the representatives Is Chins,.
Accordingly*
the two .Departments are now convinced that it 1* impossible to issue licenses
on any basis other than that of arrangements insuring the safe arrival
oi tht
representatives in a non-Communist area befor * payment 1» made to mainland
China.
TREASURY
DEPARTMENT
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
RELEASE MORNING NEWSPAPERS
Thürsday, April 17, 1 9 5 2 .
S- 3 0 2 5
In response to inquiries from interested American business
concerns, Secretary of the Treasury Snyder, with the concurrence
of Secretary of State Acheson, today issued the following
statement:
American concerns whose representatives are detained
in Communist China will be licensed under the Foreign
Assets Control Regulations to pay claims against their
Chinese agencies only on the basis of arrangements assuring
that the interested concern’s representatives are safely
released to an area outside Communist China, such as
Hong Kong, before the funds are sent into China.
Chinese Communist authorities have detained a number
of such representatives and have indicated that until the
local obligations of the companies are paid these
representatives will not be released.
In various cases
the representatives have been threatened with imprison
ment or even more drastic treatment if the payments were
not forthcoming.
As a result a number of American concerns whose
representatives have been detained in China have filed
applications for licenses requesting permission to pay
such local claims. The American concerns have stated
that the claims against them are of a lawful nature and
arose as a result of the closing of their Chinese offices.
In approximately a dozen cases the Treasury Department
has in the past licensed the payment of claims which
appeared to be of such a nature and were reasonable in
amount, but the payment of the claims did not bring
about the release of a number of the representatives in
China. Accordingly, the two Departments are now
convinced that it is impossible to issue licenses on any
basis other than that of arrangements insuring the safe
arrival of the representatives in a non-Communist area
before payment is made to mainland China.
The Treasury also reiterated its position with respect
to blocked funds in the United States and in which
authorities or other persons in Communist China have an
interest, direct or indirect.
Any applications by concerns
having representatives in China requesting the unblocking of
such funds will not be granted.
0O 0
defense,
but of the defen
a g g r e s s i o n for the entire
cO
Ah
- 36
economy.
The p r o d u c t i o n record of the
postwar period
Is a c h r o n i c l e of
u n p r e c e d e n t e d a c h i e v e m e n t under a
free e n t e r p r is e system,
and a
d e m o n s t r a t i o n of the v Ita I ity and
force of a democracy.
It is
e s s e n t i a l , therefore,
that we
use every m e a n s at our c o m m a n d
not only to preserve,
increase this economic
for
but to
s t r e n g t h --
it is the m a i n s t a y not only of
it —
to safeguard
f
t
in
ts
s o u n d n e s s of our Nation a
e n t e r p r i s e economy
u l t i m a t e test
hn
n
s f
t*
rem ind
of our d e f e n s e s
is not alone
n u mber of tariKs, or guns,
n asseti^
h w
or bombs
on
enemies
Iron C u r t a i n
we
powerful
a w a r e , the
in t h<
£
w>■
weap o n of d e m o c r a c y
strength
O
iy
is
c a p t o ity
of the A m e r i c a n free e n t e r p r i s e
which encourage
the savings bond
ir ITt .
program
oeooIe
the firs
have become
time in their
substant ia I savers
This nat ionaI thr ift program has
paid impressive dividends in
trig to Keep our economy healthy
j strong.
In closing,
In g
Iet me point out
operations today
main goat bef
policy which acts to c o u n t e r any
pronounced
inflationary or
deflationary pressures
C
ines
jc are a Iso requi r e d
rec to succeed
ai
if we
in Keep ing ava i isoie
asing power from e x e r ci s i n g
its full
That
force on the price
is why the T r e a s u r y
level
is so
deep l y c o n c e r n e d with p r o t e c t i n g
the
incentive to save,
and with
o r o m o t i n g all m e a s u r e s and progra
G o v e r n m e n t can mane an e f f e c t i v e
c o n t r i b u t i o n toward K e e p i n g the
economy
in a sound and h e a lthy
condition
in this p e r i o d of
intens ive strain on our reso u r c es
With respedt to our domestic
policies,
this r e q u i r e s sound
r e v e n u e and e x p e n d i t u r e programs;
it r e q u i r e s c o n t i n u i n g a t t e n t i o n
to greater e f f i c i e n c y and
costs of governmental
lower
operations;
it r e q u i r e s a debt m a n a g e m e n t
31
U Zi
expandi ture
on
Sound debt
as much as possi
G o v e r n m e n t ' s bor r o w i ng
n o n b a n K sources.
from
It is g e n e r a l ly
that this m u s t be done
we are to avoid
if
inflationary
sures w h i c h would r e sult from
f jnanc ing
entire defic it through
the banxing system.
The fiscal
p o li c i e s of
When
in J une
I came to the Treasury
1946, the public
debt was
a p p r o x i m a t e Iy $270 billion.
June of
Through
last year we w e r e able to
r e duce the debt by nearly $15
billion.
Sinee t h e n , h o w e v e r , our
increased d ef e n s e e x p e n d i t u r e s
have m a d e d e f i c i t f i n a n c i ng
necessary.
The amount of borrowing
that we shall
have to do through
the r e m a i n i n g m o n t h s of this year
depends
largely on how the defense
infl a t i on a r y p r e s s u r e s that may
arise d u r i n g the d e f e n s e effort.
One f a ctor c o n t a i n i n g
i n flationary p o s s i b i l i t i e s
fact that,
is the
as a r e s u l t of heavy
G o v e r n m e n t e x p e n d i t u r e s required
to meet m o b i l i z a t i o n needs,
we are
faced with the n e c e s s i t y of
f i n a n c i n g a substantial
budget
d e f i c i t d u r i n g the r e m a i n d e r of
28
rc
JLJk
in the past
12 m o nths s u g g e s t s the
m a g n i t u d e of our annual
new
capital
expansion
need for
investment and
in civil i a n production.
If we can m a i n t a i n a healthy
e c o n o m y t h r o u g h o u t the defe n s e
program,
we have every reason to
expe c t a c o n t i n u e d p r o s p e r o u s and
e x p a n d i n g economy after the present
emergency
is over.
To m a i n t a i n
a healthy economy, we m u s t strive
p a r t i c u l a r y to prevent
"» *■O
vis
*
which have been e x p r e s s e d by some
people.
On the contrary,
the
leveling out of the defense prog r a m
should f a c i l i t a t e the t r an s i t i o n to
increased civil i a n
production.
Our rapid g r o w t h
in population
insures a s t e a d i l y e x p a n d i n g
economy,
require
with all
in new p r od u c t i o n capacity,
n e w homes,
new highways,
construction.
y
that this will
and other
The addit i o n of
2 , 7 0 0 , 0 00 people
ko our p o p u l a t io n
CO
noticeably in January, after
allowance for seasonal trends, and
increased somewhat further in
February.
The upturn was most
apparent in the durable goods
industr ies.
Retail sales, after seasonal
adjustment, also showed some increase
in January and February, particularly
in sales of' durable goods.
Despite these cross currents, I
see nothing to warrant the fears
N e v e r t h el e s s ,
total
inventories,
p a r t i c u l a r l y those of manufacturers,
remain u n u s u a l l y high.
general,
Also,
in
c o m m o d i ty prices have shown
a declining tendency
in recent months
after having stead i e d d u r i n g the
latter part of
1951.
On the other hand,
national
output
q u a r t e r of
in the first
1952 reached a new
r e cord annual rate,
sales,
our total
Manufacturers*
in the aggregate,
rose
ostri
industriai
general
price
p r o d u c t i o n and the
level
held
p r a c t i c a l l y stationary.
Today businessmen face
important c r o s s - c u r r e n t s
generai
b u s i n e s s o u t Io
o k
in the
.
H e t e i i e r s and w h o l e s a l e r s have
gone far toward
liquidating their
e x c e s s i v e stocKS of goods.
of retail
Inventories I
stores it the end of
February were
12
I
percent lower
^~T
- 23 b u y i n g wave subsided.
For more than
a y e a r , the civi iian economy has
been under p r e s s u r e as c o n s u m e r s
have been using up their accumulated
s u p p l i e s and r e t a i l e r s
have been
r e d u c i n g their s u r p l u s
inventories.
O u r i n g this r e a d j u s t m e n t , the
defense program effectively
s t a b i l i z e d the economy,
as civilian
p r o d u c t io n was adjusted to the
expanded
defense
production.
d u r i n g most of the past
Thus,
12 months,
amount of our o u t s t a n d i n g debt.
This helped m a t e r i a l l y
in restraining
InfI at io n .
But the e a r l y months of the
K o rean c o n f l i c t b r o u g h t a great
wave of overbuying, a s c o n s u m e r s and
b u s i n e s s m e n sought,
due to fear of
s h o r t a g es and price
inflation,
to
a n t i c i p a t e their future needs.
You are all
fami l i a r with the
c o n s e q u e n c e s of that wave of
overbuying.
Early
last year,
the
have sought p a r t i c u l a r l y to forestall,
y__
rby all practical
'■
‘i’'“■'
•
-....
■
'
means,
'” ■, /<•'
any weakening
■ .V1
v
of the e c o n o m y d u r i n g the d e f ense
e m e r g e n c y that m i g h t a d v e r s e ly affect
our future prosperity.
O u r i n g the five fiscal
ended
last June,
c a r r i e d out
years
the G o v e r n m e n t
its revenue and
e x p e n d i t u r e s p r o g r a m s w i t h a net
b u dget surplus of close to $8
billion for the full f i v e - y e a r period
t h e r e b y e n a b l i n g us to r e duce the
an
increasingly sound and productive
civilian e c o n o m y .
These are still
the aims of the p r o g r a m w h i c h
wi III not only develop the m i l i t a r y
s t r en g t h of our country and the rest
of the free world,
but will
also
ensu r e that that stre n g t h will be
m a i n t a i n e d for a long time to come.
in c a r r y i n g out this program, a
s e r i o u s task has been to prevent any
harmful
e f f e c t s on the economy.
We
D:
pro
ion has had four principal
directions:
(I) To produce military
equipment for our forces in Korea
ne, for aid to our allies
nd at
and for reserve stocKS; (2) to
I
: lH
-.v , ÊÈ ,• ■ ;tp 'V; .
♦'
'
provide additional production lines
ose needed for curre
military production, so they wil
e available in case of ful I-sc m
war: (3) to further develop o
aste reso
es; and (4) consis
th these objectives, to m a i n t a i n
D e f e n s e effort,
it is essentia!
that
we e n o e a v o r to work out
e f f e c t i v e and b alanced
maintain stabiIity
within our own economy.
Let us examine b r i e f l y the
n a t u r e of the defens
m o b i l i z a t i o n program.
The
invasion of
K o r e a c r e a t e d a national
which r e q u i r e d
intensive effort
to build up A m e r i c a ' s m i li t a r y might.
Since that time,
the batt l e for
u n li Ke any other
in the world.
The key to our national
strength,
fulfill
and to our ability to
our world r e s p o n s i b i Iities,
is our capac i t y to produce.
p r o d u c t iv e power
That
is the fruit of
the hard work and t h rift of
s u c c e e d i n g g e n e r a t i o n s of Americans.
F o r t u n a t e l y we have built w e l l
upon the f o u n d a t i o n s which were
for us.
laic
Our plants and f a c t o r i e s
p e r f o r m m i r a c l e s of production,
not
huge store of capital
by factories,
represented
railroads,
mines,
power
plants,
farms,
stores,
and
homes.
But this e n o r m o u s accumulation
of d e v e l o p e d r e s o u r c e s and capital
is the r e sult of
initiative;
•'"i ;V
individual
it shows what a free
;
p e ople can a c c o m p l i s h «
is the real
Truly,
And that
answ e r to our greatness.
the g r e a t n e s s of Amer i c a
is the r e s u l t of
individual
f r e e d o m u n d e r a free g o v e r n m e n t
leadership has come to us because
the rest of the free world has
looked to us for aid and g u i d a n c e
in d e f e n d i n g and a d v a n c i n g the
fllfii ill
peaceful
|
p r o g r e s s of other peoples
To help achieve these g r e a t
objectives
people.
is the desire of our
It is our national
It is true that our
policy
land
is
blessed with a weal t h of national
resources.
It is also true that
part of our g r e a t n e s s
lies
in our
—
13
“
d e v o t e their e f f o r t s to e c o n o m i c
progress»
The e c o n o m i c s t r e n g t h
of one part of the world,
however,
d e p e n d s to a c o n s i d e r a b l e extent on
the economic s t r e n g t h of other parts.
That
is why the d e f e n s e o b j e c t i v e s of
the free n a t i o n s are
Free men
inseparable.
in free nations,
the f r e e d o m - s t a r v e d p e o p l e s now
behind the
Iron Curtain,
U n i t e d S t a t e s for
locked
look to the
leadership
great d e f e n s e effort.
and
This
in this
ce
is an unier
world aimed
îne
of
w
secur in-.
free countries
e f ree
A
le safety o
I f
W •I%?;
In this comm
C£>
o
o
0
Ü
01
enterprise, eacn nation aus*t con tr
f*A
SdÈ#sisources
ing to Its particular 1
and ab i 1it ie s.
aid
♦
Our country I.¡*J 1 1v Îrig
both material and mor o | -- to
help o ther free countries to b uiId the
yn t\f* [Cl
mi 1it a ry sir■ength necessary to 1 O i•v5V
commun 1st ificroachmsnt, so t.ha t free
p IîJ«y/s)r 1d ne y aga in
men ever ywi1 er e În fWilliü
Kno!v peace a no ¿31¿wg, f\Wur Îty and iii3 y
-
11 -
a t t e m p t s of d i c t a t o r s to destroy
the basic freedom of manKind.
But never befo r e have we had to
face such s i n i s t e r tactics, ss
the
p r e s e n t S o v i e t "wait i n g game"
employs.
It is not an a l l - o u t thrust,
a slow p o i s o n o u s
but
Infiltration from
y
with i n to w e a K e n first one sector
and then another of the free world.
Defense mobilization
m ore than a national
is therefore
objective.
It
North and South Carolina, by the
Bureau of Internal Revenue, will
be continued here, and instead of
being diminished, these facilities
will be augmented in many cases.
Our country is now faced with
the most serious problem in all our
history,
fie
have fought cost Iy
wars -- and many of us here today
were active combatants in one or
two of them •• in the hope that we
were crushing once and for all the
1
o p e r a t i n g e f f i c i e n c y and economy will
be obtained,
that t a x p a y e rs will
be
served with g r e a t e r c o n v e n i e n c e and
dispatch,
in the
and that p u blic confidence
integrity and c o m p e t e n c e of
R e v e n u e S e r v i c e personnel
will
be
strengthened.
1 shall
not ta«e t ime ,to
d e s c r i b e the r e o r g a n i z a t I o n plan
you that every
i I ity
serv ice to the t a x p a y e r s
in
organ izat io n ,
f
_
ic
a
#
À
0
it is grati
aw
it
ui
p 1an submitted
President
recami;
Truman,
on my
& s
a.
#
to ach ieve our g o s I .
put
•
inmg
to p r o c e e d with the
s now
US
steps
sola
into effect under
by the C o m m i s s i o n e r of
it are c e r t a i n
that under
it, a higher
A
economic
you briefly
development
in a
m i l l i o n s of A m e r i c a n s c l o s e l y with
the Treas u r y
in a very personal
re Iat ionsh ip .
v’
V
I refer to the
/
steps being taKtn c u r r e n t l y to
As
long ago as
1948,
the
T r e a s u r y D e p a r t m e n t was a d v o c a t i n g
legislation to
improve the
vP yP CJ
¡cations which
th îs
dpk
|
-V
in
Ç>
ship.
icaIi y
ons
They serve to
on Iy
fiscal
b
étions
the
ssyry
'nistrative o p e r a t i o n s and
r espons ib i I¡ties
Before
affecting
in the non-fiscal
I ttKi up some quest4*
the
out Io o k
I A fl c
in our fiscal
responsibilities of very great
importance of which l want to talk
resuons ib i Ii 11 es
have
tf
wt
'0
with the maintenance of
stable national economy under the
trying conditions of an internat ionaI
o
J»
HartsviIie,
South Carol ina served
ve Iy as
sur y
are va
ious
e n t e r p r ise.
Thera
is much Kinship betw e e n
the T r e a s u r y D e p a r t m e n t and the
C a r o l i n as .
I have one of your native
sons c l o s e l y a s s o c i a t e d with me as !
an A s s i s t a n t S e c r e t a ry of the
Treasury.
all
He
is,
as
I am sure you
Know, John S. G r a h a m of
W inston-SaIem.
Two other
j
d i s t i n g u i s h e d C a r o l i n ia n s ,
0. M a x Gardner of Shelby,
the
North
C a r o l i n a and Lee W i g g i n s of
late
♦
H
B
&
■«*
|
I
frlend Iiness.
I
ihat
is true of C h a r l o t t e
true equally,
of course,
is
of m a n y
I
I
other of the o r o g r e s s ive c o m m u n i t i e s
I
of the C a r o Iinas.
I
It
Is a g e n u i n e pIeasure,then,
to m eet with you here today,
to
I
I
sense the v i t a l i t y and a l e r t n e ss
I
of your two states,
I
and to t a I k
with so many o u t s t a n d i n g representative!!
of N o r t h and South Carol Ina business
|l
T h e f o l l o w i n g a d d ress b y S e c r e t a r y
S n y d e r b e f o r e the F o u r t h A n n u a l
P i e d m o n t Sales C o n f e r e n c e at the
H o t e l C h a r lotte, C h a r l o t t e , N. C.,
TREASURY DEPARTMENT
Washington
0
c.
The following address by Secretary Snyder
before the Fourth Annual Piedmont Sales
Conference at the Hotel Charlotte, Charlotte,
N# C#, is scheduled for delivery at 1:00 p.m#
ESTj Friday^ April 18, 1952, and is for
release at that time#
The Defense Program in Relation to the National Economy
The charm of the Carolinas and the warmth of their hospitality arc
a combination which delights any guest. Charlotte is among the first
cities of this area, and its swift advancement in recent years is evidence
that the Carolinas are as well marked by commercial and industrial vigor
as they are by physical attractiveness and friendliness.
What is true of Charlotte is true equally, of course, of many other
of the progressive communities of the Carolinas#
It is a genuine pleasure, then, to meet with you here today, to sense
the vitality and alternes s of your two states, and to talk with so many
outstanding representatives of North and South Carolina business enterprise
There is much kinship between the Treasury Department and the
Carolinas# I have one of your native sons closely associated with me as
an Assistant Secretary of the Treasury. He is, as I am sure you all know,
John S. Graham of Winston-Salem. Two other distinguished Carolinians,
the late 0. Max Gardner of Shelby, North Carolina and Lee Wiggins of
Hartsville, South Carolina served consecutively as Under Secretaries of
the Treasury during the earlier years of my tenure as Secretary, and Lee
Wiggins continues to give me the benefit of his wisdom in the capacity
of counselor and adviser#
I
could go on to compile a lengthy list of Carolinians who are valued
members of the various Treasury staffs#
The Treasury Department and the Carolinas, along with all the other
States, have some mutual responsibilities of very great importance of
which I want to talk to you today# These responsibilities have to do
with the maintenance of a stable national economy under the trying
conditions of an international emergency# Many of the problems of this
period have implications which directly affect those of you who are
-
2
-
241
engaged in salesmanship. Indeed, they have implications for practically
everyone* They serve to complicate not only the fiscal operations of
the Treasury Department, but also our administrative operations and
responsibilities in the non-fiscal area.
Before I take up some questions affecting the outlook in our fiscal
and economic affairs, I want to tell you briefly about a very significant
development in a field which links millions of Americans closely with
the Treasury in a very personal relationship*
I refer to the steps hew
ing taken currently to reorganize the Bureau of Internal Revenue,
As long ago as 19U8, the Treasury Department was advocating
legislation to improve the organization, operations and efficiency of
the Revenue Bureau, and it is gratifying that Congress has now approved
a plan submitted by President Truman, on my recommendation, which enables
us to proceed with the remaining steps to achieve our goal. This plan
is now being put into effect under my direction by the Commissioner of
Internal Revenue, We are certain that under it, a higher degree of
operating efficiency and economy will be obtained, that taxpayers will
be served with greater convenience and dispatch, and that public confidence
in the integrity and coirpetence of Revenue Service personnel will be
strengthened,
I
shall not take time to describe the reorganization plan in detail,
but I do want to assure each of you that every facility to render service
to the taxpayers of North and South Carolina, by the Bureau of Internal
Revenue, will be continued here, and instead of being diminished, these
facilities will be augmented in many cases.
Our country is now faced with the most serious problem in all our
history. We have fought costly wars — and many of us here today were
active combatants in one or two of them -- in the hope that we were
crushing once and for all the attempts of dictators to destroy the basic
freedom of mankind. But never before have we had to face such sinister
tactics as the present Soviet “waiting game” employs. It is not an allout thrust, but a slow poisonous infiltration from within to weaken
first one sector and then another of the free world.
Defense mobilisation is therefore more than a national objective.
It is an undertaking of the whole free world aimed at securing the safety
of all free countries.
In this common enterprise, each nation must
contribute according to its particular resources and abilities. Our
country is giving aid — both material and moral — to help other free
countries to build the military strength necessary to resist communist
encroachment, so that free men everywhere in the world may again know
peace and security and may devote their efforts to economic progress.
The economic strength of one part of the world, however, depends to a
considerable extent on the economic strength of other parts* That is why
the defense objectives of the free nations are inseparable.
Free men in free nations, and the freedom-starved peoples now locked
behind the Iron Curtain, look to the United States for leadership in this
great defense effort. This leadership has come to us because the rest
of the free world has looked to us for aid and guidance in defending and
advancing the peaceful progress of other peoples. To help achieve these
great objectives is the desire of our people. It is our national policy*
It is true that our land is blessed with a wealth of national
resources. It is also true that part of our greatness lies in our huge
store of capital represented by factories, railroads, power plants,
farms, mines', stores, and homes. But this enormous accumulation of
developed resources and capital is the result of individual initiative;
it shows what a free people can accomplish. And that is the real answer
to our greatness. Truly, the greatness of America is the result of
individual freedom under a free government unlike any other in the world.
The key to our national strength, and to our ability to fulfill
our world responsibilities, is our capacity to produce. That productive
power is the fruit of the hard work and thrift of succeeding generations
of Americans©
Fortunately we have built well upon the foundations which were laid
for us. Our plants and factories perform miracles of production, not
only of civilian goods but of all kinds of military materials when those
are required. Our farms have never had greater capacity for producing
food and other essential fruits of agriculture. Our economy is strong
and can be made stronger.
Maintaining and nourishing the tremendous productive capacity of
America is, of course, our primary responsibility. But, to insure a
successful outcome of our great defense effort, it is essential that as
we endeavor to work out an effective and balanced defense program, we
maintain stability within our own economy.
Let us examine briefly the objectives and the nature of the defense
mobilization program. The invasion of Korea created a national emergency
which required an intensive effort to build up America's military might.
Since that time, the battle for production has had four principal
directions? (1) To produce military equipment for our forces in Korea
and at home, for aid to our allies, and for reserve stocks; (2) to
provide additional production lines beyond those needed for current
military production, so they will be available in case of full-scale
war5 (3) to further develop our basic resources; and (U) consistent with
these objectives, to maintain an increasingly sound and productive civilian
economy. These are still the aims of the program which will not only
develop the military strength of our country and the rest of the free
world, but will also ensure that that strength will be maintained for a
long time to come.
In carrying out this program, a serious task has been to prevent any
harmful effects on the economy. We have sought particularly to forestall,
- k -
243
by all practical means, any weakening of the economy during the defense
emergency that might adversely affect our future prosperity#
During the five fiscal years ended last June, the Government carried
out its revenue and expenditures programs with a net budget surplus of
close to i$8 billion for the full five-year period, thereby enabling us
to reduce the amount of our outstanding debt# This helped materially
in restraining inflation#
But the early months of the Korean conf3.ict brought a great wave of
overbuying, as consumers and businessmen sought, due to fear of shortages
and price inflation, to anticipate their future needs* You are all
familiar with the consequences of that wave of overbuying» Early last
year, the buying wave subsided* For more than a year, the civilian^
econony has been under pressure as consumers have been using up their
accumulated supplies and retailers have been reducing their surplus
inventories#
J
During this readjustment, the defense program effectively stabilized
the economy, as civilian production was adjusted to the expanded defense
production. Thus, during most of the past 12 months, both industrial
production and the general price level held practically stationary.
Today businessmen face important cross-currents in the general business
outlook#
Retailers and wholesalers have gone far toward liquidating their
excessive stocks of goods* Inventories of retail stores at the end of
February were 12 percent lower than at the peak last May* Nevertheless,
total inventories, particularly those of manufacturers, remain unusually
high* Also, in general, commodity prices have shown a declining tendency
in recent months after having steadied during the latter part of 19hi*
On the other hand, our total national output in tne first quarter
of 19^2 reached a new record annual rate* Manufacturers1 sales, in the
aggregate, rose noticeably in January, after allowance for seasonal
trends, and increased somewhat further in February# The upturn was most
apparent in the durable goods industries*
Retail sales, after seasonal adjustment, also showed some increase
in January and February, particularly in sales of durable goods#
Despite these cross currents, I see nothing to warrant the fears^
which have been expressed by some people* On the contrary, the leveling
out of the defense program should facilitate the transition to increased
civilian production.
Our rapid growth in population insures a steadily expanding economy,
with all that this will require in new production capacity, new homes,
new highways, and other construction# The addition of 2,700,000 people
- 5 -
244
to our population in the past 12 months suggests the magnitude of our
annual need for new capital investment and expansion in civilian
production#
If we can maintain a healthy economy throughout the defense program,
we have every reason to expect a continued prosperous and expanding
economy after the present emergency is over* To maintain a healthy
economy, we must strive particularly to prevent inflationary pressures
that may arise during the defense effort*
One factor containing inflationary possibilities is the fact^that,^
as a result of heavy Government expenditures required to meet mobilization
needs, we are faced with the necessity of financing a substantial budget
deficit during the remainder of the calendar year*
When I came to the Treasury in June 1?U6, the public debt was
approximately $270 billion. Through June of last year we were able to
reduce the debt by nearly $1$ billion* Since then, however, our increased
defense expenditures have made deficit financing necessary. The amount
of borrowing that we shall have to do through the remaining months of
this year depends largely on how the defense expenditure program shapes
up and on the amount of tax receipts. Sound debt management dictates
that as much, as possible of the Government's borrowing be from nonbank
sources* It is generally agreed that this must be done if we are to
avoid inflationary pressures which would result from financing the entire
deficit through the banking system#
The fiscal policies of the Government can make an effective
contribution toward keeping the economy in a sound and healthy condition
in this period of intensive strain on our resources. With respect to
our domestic policies, this requires sound revenue and expenditure
programs; it requires continuing attention to greater efficiency and
lower costs of governmental operations; it requires a debt management
policy which acts to counter any pronounced inflationary or deflationary
pressures*
Increased savings by the public are also required if we are to
succeed in keeping available purchasing power from exercising its full
force on the price level. That is why the Treasury is so deeply concerned
with protecting the incentive to save, and with promoting all measures
and programs which encourage the habit of thrift. Through the savings
bond program many people, for the first time in their lives, have become
systematic and substantial savers# This national thrift program has paid
impressive dividends in helping to keep our economy healthy and strong#
In closing, let me point out that in all its operations today the
Treasury has one main goal before it — - to safeguard the financial
soundness of our Nation and its free enterprise economy. I need not
remind you that the ultimate test of our defenses is not alone in the
number of tanks, or guns, or bombs which we can assemble on this side
OA s
-
6
-
of the Iron Curtain* As our enemies are well aware, the one uniquely
powerful weapon of democracy is the productive strength and capacity
of the American free enterprise economy*
The production record of the postwar period is a chronicle of
unprecedented achievement under a free enterprise system, and a
demonstration of the vitality and force of a democracy* It is essential,
therefore, that we use every means at our command not only to preserve,
but to increase this economic strength — for it is the mainstay not
only of our own defense, but of the defense against aggression for the
entire free world*
0O0
SIISPÀFERS,
Tuesday* April 92» 1952*
3
fhi §#(aütw r ©f ibi Treasury i®s<weid l u t eventtig that the
^
».,1100,000,000, or thereabouts, of 91-day Treasury bills to be dated April fl* mi te
sature July
2k*
1952, which were offered cm April 1?, were opened et the Federal
Reserve Beni» on April 21.
The details of this issue sre as follows*
Total applied for « $2,385,235,000
1,1*00,786,000
Total aeeepted
- 1,1*00,786,000
Average pries
(includes »15,260,000 entered on a
n o n -competitive basis and accepted in
full at tiie «tarage pries shown below)
* 99*591/ Icpdvsleut rate of diseount appro*. I«6l6£ per
mm
Range of aeeepted ceopetitive bidet
« 99.608 Bouivalent rate of diseount appro;«. 1*5515 P«** b®81®
High
Low
***99.590
w
•
a
a
a
1*6225 *
(25 pereant of the amount bid for at the low prise was accepted)
Federal Reserve
District_______
Total
Applied
Boston
$
Hew fork
Philadelphia
Cleveland
M einend
Atlanta
Chicago
St* Louis
linneapolis
Kansas City
Dallas
San ftmeisee
total
Total
for
272,100,000
56.117.000
15.785.000
$2,277,000
36,85b,000
11*8,539.000
33,656,000
875,b6l,000
16.113.000
60,1*31,000
26.872.000
25,2b3,000
173,800,000
30.299.000
9,565,000
bO,327,000
2b,377,000
8b.61*2,000
12,383,235,000
» , bOO,786,000
1*8 ,256,000
1,583,Wl,000
3b,250,000
67.131.000
32,81*7,000
35.618.000
t
247
RELEASE MORNING NEWSPAPERS,
Tuesday, April 22, 1952.
s- 3 0 2 7
The Secretary of the Treasury announced last evening that the
tenders for $1,400,000,000, or thereabouts, of 91-day Treasury bills
to be dated April 24 and to mature July 24, 1952, which were offered
on April 17, were opened at the Federal Reserve Banks on April 21,
The details of this issue are as follows;
Total applied for - $2,3$3,235*000
Total accepted
- 1,400,786,000 (includes $215,260,000
entered on a non-competitive
basis and accepted in full
at the average price shown .
below)
Average price
- 99*591/ Equivalent rate of discount approx.
1.6l6$ per annum
Range of accepted competitive bids;
- 9 9 .6 0 8 Equivalent rate
1 .5 5 1 $
- 99.590 Equivalent rate
1 .622 $
High
Low
of discount approx.
per annum
of discount approx.
per annum
(25 percent of the amount bid for at the low price was accepted)
Federal Reserve
District^___
Boston
Rev York
P h ila d e lp h ia
C lev ela n d
Richmond
A tla n ta
Chicago
L o u is
M in n eap olis
Kansas" City
Balias
San F r a n c is co
Total
Applied for
4 8 ,2 5 6 ,000
1,583,461, 000
34,250, 000
67,131, 000
32,847, 000
35,618, 000
2 7 2 ,1 0 0 ,000
56,117, 000
15,785, 000
52,277, 000
36,854, 000
148,539, 000
TOTAL
$2,383,235,000
0 O0
Total
Accepted
$
33, 6 5 6 ,000
8 7 5 ,461, 000
1 6 ,113, 000
6 0 ,4 3 1 , 000
2 6 ,8 7 2 ,000
2 5 ,243, 000
1 7 3 ,8 0 0 ,000
3 0 ,2 9 9 ,000
9 9 5 6 5 ,000
4o, 3 2 7 ,000
24, 377, 000
84, 642, 000
$1,400,786,000
Committee, I believe that Section 13 la the most important provision
In the bill* 1 have explained the substantial benefit« we expect td ^
gain from it, particularly from the elimination of «foreign valugX T 4
which was ptrongiy reoommended by the McKinsey and Co* survey*^<wfchr_
any projuf^t
paragraph« 2 and 3 if the General Agreement* We also belxeve that
Section 20 of the proposed bill which is in accord with Article til,
paragraph U, of GATT will simplify the work of the Customs Bureau and
establish a practical operating basis for the conversion of foreign
exchange rates*
The need for the individual provisions of this bill and their
relationship to the General Agreement on Tariffs and Trade was care
fully studied by the Bouse of Representatives• As a result, two pro
visions which caused particular concern, those relating to »American
selling Fries« and the repeal of discrimination against iiq>ort8 in
certain internal revenue taxes, were deleted by the Bouse* As previously
stated, we do not ask that this Committee give further consideration to
these provisions* The Bouse of Representatives, as indicated by their
approval of the present bill, considered the remaining sections of the
bill to be worthy ef enactment*
Jxl order to avoid any possible misunderstanding about the relation
of this bfii to the General Agreement on Tariffs and Trade, the House
inserted Section 2h* This provides that the Customs Simplification Act
shall not be construed to indicate approval or disapproval by the Congress
of the General Agreement on Tariffs and Trade* The Treasury Department
has no objection to this provision as it does not detract f r o m the admin
istrative simplification we desire to obtain by the enactment of this bill
We trust, therefore, that this Committee and the Senate will agree
with us and with the Bouse of Representatives that the provisions of
H*K* 5505 will be helpful and should be enacted*
©ei Hearn
Chambe
'aham> Carlool^ Nichols, Str^binger>v1
and Brens
©huso'll, \
In anticipation
of the provisions of
General Agreement on
ment which, with the
of the Committee's interest in the relationship
the proposed Customs Simplification Act to the
Tariffs and Trade, we have prepared a short state
approval of the Committee, I would like to read*
Sections 2, 3# li, 13, 20, and 22 of the present bill cover subjects
which are referred to by parts of the General Agreement on Tariffs and
Trade. It should be noted, however, that there is no legal obligation
on the UhitedxStates to enact provisions in accordance with the General
Agreement on Tariffs and Trade since the United States and other signatory
countries have adhered to the General Agreement only on a provisional
basis which does not require any change in existing legislation. I would
like the Committee to understand clearly that we in the Treasury support
the enactment of all the provisions of H.K. 5505 whether or not the
General Agreement contains similar provisions«
Brief additional comments on these sections of the bill may be
helpful« Sections 3 and it of the present bill relate to the repeal of
certain unnecessary special marking requirements and obsolete reciprocal
provisions« These sections have not aroused any controversy av*A are
consistent with the provisions of the General Agreement contained in
5 » £*r>Er*ph 2*
Article I, paragraph 1, respectively.
Seotion 22 of the Customs Simplification Aot changes some processing
taxes applicable only to imported products, to import taxes. This
WP '1 make toe administration of these duties more efficient
previotaa:iy «horded, it is consistent
with the general principle set forth in Article III of the General
f ° r " ^ « « im in a to r y * * U n » l * ■ » £ . ^ S o r t e d
U ^ r S 8^ n^ . ^ t T n i h,,ndir « a8 r 88ed «*• Cu»te*» b r r i e r r ’L duties 4« B i f i r e l a t i n g to antidumping and countervailing
existing interpretation, of the lav
the imposition of\oimt«t*v*rM
in^ury 40 àewestte industry before
reaso^ Î-^„ .
t!
U iJ3|[ dutlaa‘ Since there would be Httle
this ehange*would sav^th^BurMu ih !?
*** absenoe of s**eb injury,
bounties which are of no coneom
of Investigating possible
o o M i s t e n r X . ^ ^ n
indu8tl7- This provision is
Sec.
Description
McKtnsw and Co. Surrey
Number of
recommen
dations
2k
Signing and delivery
of manifests
15
Certified invoices and
informal entri»«
ProrUlon °* 0*W
Uwatlnna
Voi* i n ,
3
pp* 17-131
voi* IV,
pp* I4O-I4I 1
voi* v i n ,
p
16
17
Verification of
documenta
Amendment of entries
and duties on under
valuation
1
* 25
voi* i n ,
p* 23
3
v a * in,
p * 2S 1
volt IV,
pp* 32-36
18
Commingled merchandise
1
13
Corroetion of errors
and mistakes
20
Conversion of currency
21
Customs supervision
22
Conversion of processing
taxes to import taxes
23
Saving clause
2h
Relation to G M f
Voi. IV,
pp. 50, S3
(U)
Art. VII, p*r. U
Art. Ill
one general
recommendation
to «keep lavs
simple” was made
in voi* H * P»6fa
Total
r
15
T
xt
>ut was not specific
Cinsey and Co* mentioned tills prol
legislative action*
_ .
»
»Eliminate certification of automobiles brougit in for temporary s w «
MeKinsey and Co* recommended a 10-year bend period 1 Treasury found ? j
would be better*
._
McKinsey and Co* recognised «
there was a currency conversion prow.^
needing new legislation or a ehange In praotiee. See dlncusslen of h .k
80th Cong., woi. IV, pp. 30-32.
^
Ä «rlJi
..-in
H. R. 5505
X t>>
Table of Belated Provisions of
Heginsoy and Co* Survey and
General Agreement on Tariffs aft&..Trsde
See#
Description
MeKinsey and Go* Survey
Humber of
recommen
dations
Provision of GATT
Locations
Short title and effec
tive date
1
Art* 17, pars* It, 5
Deling and counter
vailing duties
2
(1 )
3
Repeal of special
marking requirements
u
Repeal of certain
obsolete reciprocal
provisions
5
American goods
returned
6
Free entry provisions
for travelers
7
Free entry for noncom
mercial exhibitions
a
Temporary free entry for
samples and othor articles
under bond
9
Supplies and equipment for
vessels and aircraft
10
Drawback on expert of
imports not ordered
11
Administrative
Art* I, par. 1
Vol. XXX,
p* 28
1
1
International traffic
and rescue cork
13
Value
v * u zu.
p. Ii7 (2)
Vol* IH,
p. S3 (3)
s
voi* m ,
pp* U2-U7
h
V o l.J
examptiona
12
Art* IX, par* 2
Art. m , P»»* 2*
- 17 -
The six; provisions which have been discussed above constitute
the most important aspects of H*R* 5f>05 as they relate to commercial
transactions from a Customs viewpoint*
There were two provisions in
!
the original (bill which apparently caused some concern to certain
elements of American industry*
Briefly, these two provisions related
to what is known as the nAmerican selling price** method of valuation
and the basis for taxing distilled/spirits*
¿¿■Apt
the House*
p fLA s/ts
h-æ ù
Both were eliminated by
rtM
£ îZ l T
Although
by bringing about uniformity
in
customs
administration, the Treasury does not propose that they be reinstated
in the bill by this Committee*
I have endeavored to highlight the principal
provisions of this bill which affect foreign trade*
Other provisions
of the bill, such as the restatement and simplification of the
statutes relating to the personal effects of travelers, can be dis
cussed in such detail as your Committee may desire*
I wish to assure
you that the personnel of the Treasury is available at all times to
assist your Committee in its consideration of this bill*
oOo
the International Monetary Fund are dependable as a "benchmark” in
the sense that the rates actually employed in commercial transactions
do not deviate substantially from them* The provision for cases of
deviation will have to be invoked, we hope, in exceptional oases only*
I
come now to Section Ip which would permit the correction of
errors and mistakes of importers or the Customs Service in customs
transactions which are adverse to the importer and which cannot be
corrected under existing law* In the thousands of Customs transactions,
many such mistakes occur which should be corrected in order to do
justice to the importing public* The Government has no interest in
retaining duties which were improperly collected as a result of clerical
error, mistake of fact, or inadvertence* The inability to make refunds
in such cases results in great dissatisfaction and a feeling of in
justice among importers, particularly among those who are not regularly
engaged in importing* Under existing law, it is impossible to correct,
by administrative action, any error in appraisement, irrespective of
the nature of the error* Under this section, certain errors in
appraisement which result from inadvertencies and clerical errors may
be corrected
by
administrative action* This will eliminate the
necessity for assessing duties in many instances on merchandise far in
excess of its admitted value*
- 15 Monetary Fund*
Some countries do not maintain such a par value, and,
for these countries, the conversion rate is to be determined by the
New York buying rate as certified by the Federal Reserve Bank, just
as at present*
The advantage to be derived is that, whenever a par
value is maintained, a constant figure can be use} and it will not be
necessaiy for Customs officers to follow the daily minute fluctuations
that occur in the buying rate, nor will it be necessary for the Bank
to supply certifications with respect to these currencies which are
maintained at par*
‘tEMMR*
aPPiy*
When multiple rate currencies i i 1j g immm. i..
Bank is to certify these rates and the Secretary is to
Tor
customs purposes, the rate or rates which reflect effectively
the value of that currency in commercial transactions*
This follows
the rule set down by the Supreme Court in Barr v* United States* When
a country having a par value established pursuant to the Fund Articles
permits the actual commercial rate of exchange to deviate from that
1M M
wul .j
i. t a & m W
certifications furnished by the
M&,
the Secretary likewise is te use
m
whether or not the deviation is recognised as valid
under the Fund Articles.
The.intent is that the rate eaplsyed for
customs purposes shall always be the realistic aomraeroial rate actually
applicable to imports of the class of products such as the product under
going appraisement. Experience has shown that par values established with
- li* currency whenever the applicable export price is in a foreign currency«
In recent years, conversion troubles have multiplied as countries have
imposed exchange restrictions, Have permitted black markets to develop
in their currencies, and have even developed »multiple rate currencies«»
They are systems whereby an exporter who sells one product for dollars
will get more of hie own currency per dollar than the exporter who sells
some other product«
In other words, there are several exchange rates
for the currency, depending on the commodity to be exported»
i 20 repeals the obsolete provision of
The firs*
thi
Acfywhich ««^requires the Secretary of the Treasuiy to
publish periodically the gold content of foreign coinage«
This infor
mation was intended to be used for customs purposes but is now useless
for that purpose, since foreign countries either do not announce the
gold content of
their money, or, if they do, the figure has no
significance in international trade«
Practically all currency conver
sions for customs purposes today are made under the provisions of Sec
tion 522 of the Tariff Act, which requires the Secretary of the Treasuiy
to make use of conversion rates certified daily by the Federal Reserve
Bank of New York whenever the rates actually employed in commercial
transactions vary by more than 5 percent from the gold content rate»
Practically all commercial rates do vary by more than 5 percent, and
this provision thus applies»
\
^Section 20 of the bill will permit the Customs Service to employ
as the basic conversion rate the par values of foreign currencies main
tained pursuant to the Articles of Agreement of the international
- 13 -
The next section I would like to discuss in Section 15, Certified
Invoices and Informal Entries* I have already explained what an entry
is in Customs language* Present law permits the entry
of
a shipment
valued at $100 or less to be «informal,« which means that it is on a
special simplified form and is filled out by the Customs inspector for
the importer*
The '
would increase the dollar ceiling on such
informal entries to $250, and, by an amendment introduced in the House,
would permit informal entries for certain importations for schools,
churches, and libraries, principally of books and pictures, without
limitation as to value*
Formal entries require an amount of detail
for the importer and for the Customs which is excessive for shipments
of under $250 in value*
The
permit small value shipments
to be handled a great deal faster, to the benefit of both the inporter
and the Government*
Next, I would like to refer to Section 20 of the bill, which
deals with conversion of currency*
In recent years we have had a
great deal of difficulty in operating satisfactorily in cases where
it is necessaiy to convert a foreign currency into dollars for some
Customs purpose*
We have to do that whenever we appraise merchandise
which is bought by payment in a foreign currency * ^ / l l «foreign value«
appraisements are necessarily in the foreign currency and have to be
converted*
less acute*
If we eliminate «foreign value,« this problem will become
The problem will not be eliminated, however, for the
determination of export value will require a conversion of foreign
-
12
derelict in performing their obligation« under the law.
Third, in cases
of doubt the question whether or not undervaluation duties have been
incurred will be determined much more quickly and cheaply.
The final
•word still remains with the Customs Court#
Another provision of the bill* Section 3, deals with certain
special iwwiHng requirements#
There is a provision of the customs
laws which requires that all imported merchandise be marked to show the
country of origin, with certain obvious exceptions such as bulk goods*
We are not re commending any change in tkfs provision#
Elsewhere in the
customs laws there are certain additional requirements#
For example
let me invite your attention to paragraphs 35U and 355$
They require
that most knives when imported be marked with the name of the maker or
purchaser, and beneath the same, the name of the country of origin,
die sunk conspicuously and indelibly on the blade, or on the shank or
tang#
It is not sufficient if the name of the maker be on the other
side of the blade from the country of origin, nor may these markings
be added after importation#
In actual practice these provisions have
been found to constitute traps for inexperienced importers seeking to
market new lines of merchandise in this country#
Moreover, they serve
little useful purpose because the general marking requirements would
insure that consumers would know what was the country of origin#
These
special marking requirements xaocbi have no provision for unusual or hard
ship cases#
Consequently, they often produce irritating wrangles such as
occur when an American doctor orders specially designed surgical
instruments abroad and then finds that the special marking requirements
prevent their coming in#
-11
-
even if the appraiser has advanced the entered value®
Furthermore, if
the appraised value should happen to he less than the entered value
he will get the benefit of the difference*
A.
.
Under present law, if the
entered value !exceeds the appraised value, the entered value governs,
and the importer gets no benefit from the lower appraisement*
Therefore,
amendment of entries under the bill ceases to have any legal consequence,
and can be done away with as unnecessary*
Section 17 further provides that when undervaluation duties are
assessed they are subject to protest and review procedure the same as
any other duties*
Consequently, if the importer believes that the
appraiser has been arbitrary in his demands for information, he can
obtain administrative and judicial review*
The bill also eliminates
the presumption of fraud which arises under present law if the under
valuation is 100JÊ, or more*
We believe that such undervaluations a w
frequently innocent and result from misunderstanding of the applicable
method of valuation, and therefore no presumption is justified*
Of
course, if there is actual fraud other provisions of the customs laws
can be invoked*
We believe that there will be three principal advantages to be
derived from these provisions*
First, the Customhouses will not be
cluttered up with useless amendments of entries*
Second, importers will
not be assessed undervaluation duties unless they have in some way been
-
10
-
Next I would like to invite your attention to section 17 of
the bill, which deals with the amendment of entries and undervaluation
duties*
Under present law, whenever the appraiser finds a value in
excess of the value at which the importer entered his merchandise,
there must be assessed undervaluation duties, which are measured
the difference©
by
They are heavy monetary exactions and, from the
importer's point of view, actually penalties, although not so designated
in the statute©
Under present law the importer has a chance to escape
the undervaluation duties if the appraiser tells him what advance he
proposes to make in the value, and if the importer amends his entered
value to correspond©
"Customs regulations permit appraisers to furnish
this information if the importer has cooperated by supplying all the
information in his possession which will help the appraiser.
Further
more, even after the undervaluation duties are assessed, the importer
can petition the Customs Court, which will remit them if. the importer
has acted in good faith©
The trouble with this procedure is that the provisions to protect
the innocent importer are not sufficient to prevent undervaluation
duties from being assessed in many cases where they are not deserved*
To avoid them the procedure is extremely cumbersome and roundabout,
and involves a lot of unnecessary paper-work in amending entries,
which is a burden both on the importer and on the collectors of customs*
Section 17 seeks to eliminate both the amendment of entries and
the circumstances which now make amendments necessary©
The importer
who cooperates by supplying all information in his possession, or
available to him, will be no longer subject to undervaluation duties,
- 9 countries is not large and the usual “
wholesale prices in that country
enhanced by internal taxes which do not apply to the merchandise when
_Pm
0 % T &* M
0 f(è H
Tt$%
Vwfff
exported, and recent coeurt decisions
as to when these taxes have to be added in order to arrive at the dutiable
value«
The bill proposes to meet these problems by making the so-called
nexport value0 the method which the appraisers must employ whenever
they are able to do so«
States value«0
Failing in this, they are to use the nUnited
We propose to eliminate the “foreign value0 as a method
of appraisement entirely*
McKinsey and Company«
This change was strongly recommended by
The advantage of this will be that the information
necessary to make an appraisement will usually be available to the
appraiser in the Uhlted States*
Either the very merchandise he is
appraising will have been freely offered, so that the sale will be
a satisfactory basis for appraisal, or he will have knowledge of the
prices paid for similar merchandise imported by other parties.«
Section 13 contains a number of other technical provisions which
•re designed to make it easier to find a value and to make the value
idien found more commercially realistic*
erolamti
One of the main objec-
tions to our present value method is that it takes so long to find the
vain*, and we are confident that If this bill is enacted appraisements
will be made much more rapidly*
The appraiser, in determining value under the present statutory
alternatives, must first ascertain both the “foreign value“ and the “export
value“ and then appraise the merchandise according to whichever is higher«
It will be observed that this valuation is made with reference to prices in
both the home market and the export trade, of the particular country from
which the merchandise is shipped to the United States«
Generally speaking,
the value of the bulk of all dutiable imported merchandise is determined in
this manner rather than by value in the United States«
Often there are various technical restrictions involving either the
"foreign value" or "export value" determinations, and, if the appraiser cannot
ascertain such values, he must then appraise according to "United States value,"
In essence, this value is based on offers of the imported product in the
United States«
If this method does not produce the determination of value,
then the appraiser must resort, to what the present statute terms "cost of
production."
We are suggesting a change of name to "constructed value" as
more descriptive of the process of determining this type of value in the
foreign country«
It will be noted that the appraiser must know a great deal about offers
to sell or sales of the same or like merchandise in the home markets of the
country from which the merchandise is shipped, in order to determine "foreign
value."
In order to secure this information, there is often involved a
large expenditure of time and effort on the part of the importer in finding
out about transactions in a foreign country which he may know nothing about.
Likewise, there is an obvious and inherent difficulty in requiring an
American
Customs official, or an importer, to obtain detailed information as to
operations in a foreign country*
b usiness
te Tfe
c
.«Jk
■/
/
/cj
t
l^pSw3'f 4
/'
*
4 .*
already have explained, matoy duties are stated as a percentage of the
w-
-rr.-mr x*r-
~
j
I
Rvalue, so that the value has to be known before the duty can be assessed«
.
.......
.
.
the
value\and the »export value" and appraise the merchandise^¿c^ording to
whicheveXi-s the higher«
However, because of various t^chnicfl
restrictions^ often he can determine neither a foreign value nor an
export value,
then he must appraise according bo "United ¡States
value," a value basfed on offers of the imposed product in this United
States«
If this also d^pnot be determine, he must appraise Recording
to the "cost of production^*
As I y e -
Indicated, thi^ means
that at the outset the apprai^kir jfust know about offers to seljl or sales
of the same or like merchandise 'ik the home markets of the country
the merchandise comes from
J
These p^visions, therefore, often pivolve
a large expenditure of J&ne and effort of^the part of the iinportdr in
/
\
finding out about transactions in a foreign country which he may \
know nothing abowi/*
Unless the importer can getSiull and dependable
information\p3ft the appraiser, customs may have to make a foreign v^lLu ®
investigation«
There is an obvious and inherent difficulty in requiring
or an importer, to obtain detailed
as to business operations in a foreign country«
Furthermore, the "foreign value" standard sometimes produces
the inequitable result that exports from a small country have a
higher valuation for customs purposes than the same exports from
larger countries«
This happens because the home market in small
- ?
respect to the
36 legislative
proposals, two of these have
effective due to legislative enactment since the « j a e ^ ’à^eiving the
McKinsey'sçport.
Existing laws permit a c eo»^l»ent of the^jeotivj^
of a third TC^NModation.
It was decj^dnot to sponsor thre^ojjief
recwmendations. T«K> reoomi«ndaj#on8 are pending in b U l a ^ f o r é this
X
X
Congress, other than H . \ ^ .
H. R. 5505.
¿r
‘
\
Twenty recommendation^ are involved in
At the |i^e thd^shili was submitted, the other eight
\
recommendations,*^re still under s^u^y*
section by section,
The
¡e Commit tee
of the
Wey*fould/suggest.
f the Commi
to Nthis Jftatement
As you know, the customs laws are usually specific and detailed
as to what can be done by * customs officer in administering the Tariff
Act*
Therefore, it is generally conceded that there is a great deal of
technicality involved in customs, and the Treasury and Customs people
are here to assist in answering any questions which you may have in
mind*
However, I believe that your valuable time will be better served
if I may confine
my comments
to the more general features of H*R. 5505,
from the customs viewpoint*
Section 13 is undoubtedly the most Important single provision of
this bill*
It amends section 1*02 of the Tariff Act which tells the
customs appraiser how to find the value of imported merchandise* As I
7
With respect to the 36 legislative proposals
contained in the McKinsey & Company study, the
following tabulation shows the action takens
00 co co CJi
Incorporated in H*R. 5505------------21
Became effective due to passage of
other legislation after the
^
McKinsey report---- -----7------------- 2
Covered by pending legislation,
other than H.R* 5505------------Existing laws permit accomplishment
Under study-----------------------Rejected------------------
-
6-
McKinsey and Company, after completing their study, made a report which
stated, among iothr}things, that “All things considered, the Customs
Service is as well operated as the average business concern*
we believe it can be improved*"
recommendations •
However,
The report made many suggestions and
For statistical purposes we considered that the report
contained 1?8 recommendations*
The majority of these recommendations,
or ll;2 in number, were termed "administrative•"
That is to say, the
recommendations, if approved, could be placed in effect by order of the
Secretary, or the Commissioner of Customs, as the case might be*
On the
other hand, the recommendations which would require changes in existing
law, were termed "legislative*"
There were 36 such recommendations* A
Steering Committee was appointed by the then Under Secretary A* L* N* Wiggins*
consisting
of men selected from the Department, the Bureau, and the fiilAj
to direct the study*
The report was then divided into 15 functional areas*
and a "Task Force" leader was assigned to each.area*
Qualified people
were then chosen from both the headquarters and field offices to assist
the leader*
^
a
majority of the administrative proposals were accepted and put
into effect*
Some were found to be undesirable*
Many required a
partial modification of the proposal so as to be more practicable or
workable*
A "box score" of the administrative recommendations follows:
TOTAL ADMINISTRATIVE
12*2
Approved and in effect
Approved and in process of
becoming effected
Miscellaneous (additional
funds required, etc»)
Not adopted
l2i2
- $ -
determined to be due, a refund is given the iaporter.
If, however,
duties are owing the Government, collection is made fro«
the importer of the Increased amount.
In the example which I have given, all went well.
The iaporter
did not encounter the impediments which we are trying to minimize
and some of which will be mentioned in this statement.
This proposed legislation is part of the over-all management
improvement program of the Department which was instituted by
Secretary Snyder when he became Secretary of the Treasury,
ptafeeraef
The Secretary desired that an outside management firm of industrial
engineers make an evaluation of the Customs Service.
The Congress
concurred, and the 80th Congress, First Session, appropriated a specific
sum of money for this purpose in 19U7*
After careful study the fir«
McKinsey & Company, of Sew York, was selected to do this work.
In the
letter of authorization the objectives of the survey were stated to
the management firm as follows t
ttTo study the operations of the Bureau of Customs and the
Customs Servi« with a view to promoting the efficiency of
operations to the end of performing the duties and respon
sibilities with which the Customs Service is charged by
7mi and in a manner that will protect the revenues and
afford ttie greatest degree of service to the public. The
end objective is to accomplish these results with the
greatest degree of econony and the least possible cost to
the government."
ot
These certified consular invoices are then sent to the American importer,
who supplies this value information and any other information he has
concerning value to the appraiser* who, in this axanqple, is in Hew Toxic«
The valuation of merchandise is not* however* a simple process*
Under the present law* which provisions of this bill would amend* there
are several methods of valuing merchandise* depending on a large number
of factors*
The principal methods of valuation* however* are "foreign
value*" or "export value*" whichever is higher*
This means that* at
the present time* not only must the forei&i shipper and the American
importer furnish information concerning both values of merchandise* but
Customs must make both determinations in order to value the impcrtations
at the higher of the two figures*
Briefly* foreign value is the price
at which the specific commodity is offered for sale in wholesale
quantities cm the home market* that is* in the country from which
it is shipped*
Similarly* the export value is the price at which this
commodity* is offered for sale in wholesale quantities for export to the
United States*
In cases where there is a doubt as to the correctness
or sufficiency of the Information available* a detailed investigation
by Customs representatives in the foreign country is required*
The "appraiser* reports his findings to the collector who uses
them* together with information on quantities* weights* et cetera*
to make a final determination of the duties owed by the importer*
If* at the time of entry* a larger payment was made than is finally
- 3 -
have not been selected for examination are usually immediately released
to the importer, after their number has been verified, and go immediately
into the course of trade®
The packages selected for examination are, in most cases, carted
to the »appraisers1 stores."
This is a building which has both office
space and warehouse space in which the packages are opened and the con
tents are counted to see that the quantity and kind of items indicated
to be contained in a particular package are actually in it.
Many rates of duty are stated as a percentage of value, and we
them "ad valorem" duties.
To assess am" "ad valorem" duty, Customs
must "appraise," or value, the merchandise.
Records have been carefully
kept of previous shipments of the same or similar articles.
Through
an information exchange, value information has also been secured fro»
the other ports throughout the united States as to the values declared
by importers at those ports for like items.
In connection with the present shipment, the importer has arranged,
through his foreign representative or the company from which he procured
the merchandise, for an "invoice®"
This means that the merchandise being
exported from the foreign country has been described and listed and
information concerning the value of the articles being exported is
contained on the invoice®
In many cases, this invoice is a "consular
invoice," which is required to be certified by an American Consul, who
makes such verification of the information
as he considers necessary.
a ship arriving at the Port of New York*
The master of the vessel
has already prepared a "manifest,11 whieh is a list of the articles of
merchandise.
This serves as the first paper control of the merchandise
coming into the United States«
After the vessel arrives at New York* the importer* or a custom
house broker acting for him, files and "entry1* at the Customhouse. This
entry is a list of the merchandise which the importer wants to clear
through Customs.
It contains detailed information concerning quantities,
value* country of exportation and other information which will be needed
by Customs.
This entry also has the importer’s estimate of the amount
of customs duties which will have to be paid on the merchandise.
The
entry officer examines these computations and* if the estimated amount
appears to be correct* that amount of money is collected from the importer*
If obvious errors have been made in estimating the amount of duty due,
the entry officer requires the form to be revised and the correct esti
mated amount of duty is collected.
On the basis of this entry* a permit
is /issued which tells the Customs employees on the dock what merchandise
may be immediately released to the importer and which packages are to
be held for opening and detailed physical examination«
Generally speak
ing, the numbers of packages to be retained for physical opening and
inspection would be no more than one package out of each ten of a
similar lot.
The Customs employees check to see whether the number of
packages landed from the vessel agrees with the number shown on the
manifest and listed by the importer on the entry.
JHHeKsaeS®»
Those packages whieh
-
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^UrtJKU \j^*XJi
+ {
KGMvSiCs1ftp'tUffCaWHiTt f *■ *
I
appreciate the opportunity which you have aixoraed the Treasury
to present its views on H.R. 550$, the proposed "Customs Simplification
Act of 1951 •*
H.R# 5SÔ5 is sponsored by the Treasuiy Department#
It has to do
with procedure in administering the customs laws and not with rates of
duty, and it is not intended to effect any substantial change in
customs revenue#
We believe that, its enactment will enable Customs to
render improved service to the public and to reduce its own operating
costs#
We further believe that the net effect of the enactment of
H.R# 5f>0£> would be to remove many unnecessary procedural restrictions
on imports#
Host of the provisions of H#R# 5f>05 relate to the commercial
importation of merchandise from foreign countries#
Therefore, I should
like to mention, in layman’s language, the process which is involved
in a commercial importation#
This not only will help to identify the
steps which must be taken by the importer and by Customs but also will
clarity some of the terminology which is used in Customs commercial
transactions#
f
Let us assume that the importer has purchased merchandise in
Europe which will require the payment of duties after it has been landed
in the United States#
Let us further assume that the merchandise is on
Y
_ $ 0JLt
\
TREASURY DEPARTMENT
Washington
Statement of Assistant Secretary Graham
before the Committee on Finance of the
United States Senate, April 22, 193>2.
Mr* Chairman and Members of the Committee:
I appreciate the opportunity which you have afforded the Treasury to
present its views on H. R. 5505, the proposed "Customs Simplification Act
of 1951."
H* R. 5505 is sponsored by the Treasury Department* It has to do
with procedure in administering the customs laws and not with rates of
duty, and it is not intended to effect any substantial change in customs
revenue* We believe that its enactment will enable Customs to render
improved service to the public and to reduce its own operating costs* We
further believe that the net effect of the enactment of H* R* 5505 would
be to remove many unnecessary procedural restrictions on imports*
Most of the provisions of H* R* 5505 relate to the commercial impor
tation of merchandise from foreign countries* Therefore, I should like
to mention, in laymans language, the process which is involved in a
commercial importation* This not only will help to identify the steps
which must be taken by the importer and by Customs, but also will clarify
some of the terminology which is used in Customs commercial transactions#
Let us assume that the importer has purchased merchandise in Europe
which will require the payment of duties after it has been landed in the
United States. Let us further assume that the merchandise is on a ship
arriving at the Port of New York. The master of the vessel has already
prepared a "manifest," which is a list of the articles of merchandise#
This serves as the first paper control of the merchandise coming into the
United States#
After the vessel arrives at New York, the importer, or a customhouse
broker acting for him, files an "entry" at the Customhouse. This entry
is a list of the merchandise which the importer wants to clear through
Customs. It contains detailed information concerning quantities, value,
country of exportation and other information which will be needed by
Customs* This entry also has the importer* s estimate of the amount of
customs duties which will have to be paid on the merchandise. The entry
officer examines these computations and, if the estimated amount appears
to be correct, that amount of money is collected from the importer. If
obvious errors have been made in estimating the amount of duty due, the
entry officer requires the form to be revised and the correct estimated
amount of duty is collected. On the basis of this entry, a permit is
S-3028
-
2
-
issued which tells the Customs employees on the dock what merchandise may
be immediately released to the importer and which packages are to be held
for opening and detailed physical examination. Generally speakings the
numbers of packages to be retained for physical opening and inspection would
be no more than one package out of each ten of a similar lot* The Customs
employees check to see whether the number of packages landed from the
vessel agrees with the number shown on the manifest and listed by the im
porter on the entry. Those packages which have not been selected for
examination are usually immediately released to the importer, after their
number has been verified, and go immediately into the course of trade.
The packages selected for examination are, in most cases, carted to
the "appraisers1 stores." This is a building which has both office space
and warehouse space in which the packages are opened and the contents are
counted to see that the quantity and kind of ^items indicated to be con
tained in a particular package are actually in it.
Many rates of duty are stated as a percentage of value, and we call
them "ad valorem" duties. To assess an "ad valorem" duty, Customs musV
"appraise," or value, the merchandise. Records have been carefully kep
of previous shipments of the same or similar articles. Through an infor
mation exchange, value information has also been secured from the other
ports throughout the United States as to the values declared by importers
at those ports for like items.
In connection with the present shipment, the importer has arranged,
through his foreign representative or the company from which he procured
the merchandise, for an "invoice." This means that the merchandise being
exported from the foreign country has been described and listed and
information concerning the value of the articles being exported is con
tained on the invoice. In many cases, this invoice is a "consular
invoice," which is required to be certified by an American Consul, who
makes such verification of the information as he considers necessary.
These certified consular invoices are then sent to the American importer,
who supplies this value information and any other information he has
concerning value to the appraiser, who, in this example, is in New York*
The valuation of merchandise is not, however, a simple process. Under
the present law, which provisions of this bill would amend, there are
several methods of valuing merchandise, depending on a large number of
factors* The principal methods of valuation, however, are "foreign value,"
or "export value," whichever is higher. This means that, at the present
time, not only must the foreign shipper and the American importer furnish
information concerning both values of merchandise, but Customs must make
both determinations in order to value the importations at the higher of ^
the two figures. Briefly, foreign value is the price at which the specific
commodity is offered for sale in wholesale quantities on the home market,
that is, in the country from which it is shipped. Similarly, the export
value is the price at which this commodity is offered for sale in whole
sale quantities for export to the United States. In cases where there is
a doubt as to the correctness or sufficiency of the information available,
a detailed investigation by Customs representatives in the foreign country
is required.
- 3 The »appraiser» reports his findings to the collector who uses them,
together with information on quantities, weights, et cetera, to make a
final determination of the duties owed by the importer# If, at the time
of entry, a larger payment was made than is finally ^determined to be due,
a refund is given the importer. If, however, more duties are owing the
Government, collection is made from the importer of the increased amount*
In the example which I have given, all went well. The importer did
not encounter the impediments which we are trying to minimize and some of
which will be mentioned in this statement*
This proposed legislation is part of the over-all management improvement
program of the Department which was instituted by Secretary Snyder when he
became Secretary of the Treasury#
The Secretary desired that an outside management firm of industrial
engineers make an evaluation of the Customs Service. The Congress concurred,
and the 80th Congress, First Session, appropriated a specific sum of^
money for this purpose in 19U7* After careful study the firm of TicKinsey &
Company, of New York, was selected to do this work. In the letter of
authorization the objectives of the survey were stated to the management
firm as follows:
»To study the operations of the Bureau of Customs and the
Customs Service with a view to promoting the efficiency of
operations to the end of performing the duties and respon
sibilities with which the Customs Service is charged by
law and in a manner that will protect the revenues and
afford the greatest degree of service to the public# The
end objective is to accomplish these results with the
greatest degree of economy and the least possible cost to
the government#»
MeKinsey and. Company, after completing their study, made a report which stated,
among other things, that »all things considered, the Customs Service is as well
operated as the average business concern. However, we believe it can be
improved#» The report made many suggestions and recommendations. For
statistical purposes we considered that the report contained 178 recommendations.
The majority of these recommendations, or li|2 in number, were termed '
9administrative•» That is to say, the recommendations, if approved, could be
placed in effect by order of the Secretary, or the Commissioner of Customs,^as
the case might be* On the other hand, the recommendations which would require
changes in existing law, were termed »legislative.» There were 36 such
recommendations. A Steering Committee was appointed by the then Under
Secretary A. L. M. Wiggins, consisting of men selected from the Department,
the Bureau, and the field, to direct the study. The report was then divided
into 15> functional areas, and a »Task Force» leader was assigned to each area.
Qualified people were then chosen from both the headquarters and field offices
to assist the leader.
274
- u A maiority of the administrative proposals were accepted and put into
pffect
Some were found to be undesirable. Many required a partial m ficaSon of*the proposal so as to be more practicable or workable. A -box
score” of the administrative reommendations follows.
TOTAL ADMINISTRATIVE
Approved and in effect
97
Approved and in process of
becoming effected
6
Miscellaneous (additional
funds required, etc#)
9
Under consideration
2
Not adopted
28
With respect to the 36 legislative proposals contained in the
McKinsey & Company study, the following tabulation shows the action
taken:
Incorporated in H#R* 5>£0!?-— -— — —
Became effective due to passage of
other legislation after the
McKinsey report---- ------------Covered by pending legislation,
other than H#R# 5505— *•— ~—
**'
Existing laws permit accomplishment'
Under study------- ---------------Rejected— — — — -------- ----
21
2
S
2
3
_3
36
As you know, the customs laws are usually specific and^detailed as t
what can be done by a customs officer in administering the Tariff Ac •
Therefore, it is generally conceded that there is a great deal of techn cality involved in customs, and the Treasury and Customs peop e
to assist in answering any questions which you may have in m m •
9
I believe that your valuable time will be better served if I may confme
my comments to the more general features of H*R# !?3>0ï>, from
e eus
viewpoint.
-5Section 13 is undoubtedly the most important single provision of this
bill. It amends section ij.02 of the Tariff Act which tells the customs
appraiser how to find the value of imported merchandise* As I already
have explained, many duties are stated as a percentage of the value, so
that the value has to be known before the duty can be assessed«
The appraiser, in determining value under the present statutory
alternatives, must first ascertain both the ’’foreign value” and the ’’export
value” and then appraise the merchandise according to whichever is higher*
It will be observed that this valuation is made with reference to prices
in both the home market and the export trade, of the particular country
from which the merchandise is shipped to the United States* Generally
speaking, the value of the bulk of all dutiable imported merchandise is
determined in this manner rather than by value in the United States«
Often there are various technical restrictions involving either the
"foreign value” or ’’export value” determinations, and, if the appraiser cannot
ascertain such values, he must then appraise according to ’’United States value.”
In essence, this value is based on offers of the imported product in the
United States* If this method does not produce the determination of value,
then the appraiser must resort to what the present statute terms ’’cost of
production*” We are suggesting a change of name to ’’constructed value” as
more descriptive of the process of determining this type of value in the
foreign country*
It will be noted that the appraiser must know a great deal about offers
to sell or sales of the same or like merchandise in the home markets of the
country from which the merchandise is shipped, in order to determine
"foreign value*” In order to secure this information, there is often in
volved. a large expenditure of time and effort on the part of the importer
in finding out about transactions in a foreign country which he may know
nothing about* Likewise, there is an obvious and inherent difficulty in
requiring an American Customs official, or an importer, to obtain detailed
information as to business operations in a foreign country*
Furthermore, the ’’foreign value” standard sometimes produces the
inequitable result that exports from a small country have a higher
valuation for customs purposes than the same exports from larger countries*
This happens because the home market in small countries is not large and
the usual wholesale prices in that country may not reflect the discounts
available for large-quantity sales to importers in the United States.
Another difficulty is that the prices in the home market are frequently
enhanced by internal taxes which do not 3pply to the merchandise when ex
ported, and recent court decisions do not completely remove the doubt as
o when these taxes have to be added in order to arrive at the dutiable
value.
n *7 a
C /0
- m6 m
The bill proposes to meet these problems by making the so-called ’’export
value” the method which the appraisers must employ whenever they are able to
do so* Failing in this, they are to use the ’’United States value*” We pro
pose to eliminate the "foreign value" as a method of appraisement entirely*
This change was strongly recommended by McKinsey and Company* The advantage
of this will be that the information necessary to make an appraisement will
usually be available to the appraiser in the United States. Either the very
merchandise he is appraising will have been freely offered, so that the sale
will be a satisfactory basis for appraisal, or he will have knowledge of the
prices paid for similar merchandise imported by other parties.
Section 13 contains a number of other technical provisions which are
designed to make it easier to find a value and to make the value when found
more commercially realistic* One of the main objections to our present
value method is that it takes so long to find the value, and we are confident
that if this bill is enacted appraisements will be made much more rapidly.
Next I would like to invite your attention to section 17 of the bill,
which deals with the amendment of entries and undervaluation duties* Under
present law, whenever the appraiser finds a value in excess of the value at
which the importer entered his merchandise, there must be assessed under
valuation duties, which are measured by the difference. They are heavy
monetary exactions and, from the importer^ point of view, actually
penalties, although not so designated in the statute. Under present law
the importer has a chance to escape the undervaluation duties if the
appraiser tells him what advance he proposes to make in the value, and if
the importer amends his entered value to correspond« Customs regulations
permit appraisers to furnish this information if the importer has cooperated
by supplying all the information in his possession which will help the
appraiser. Furthermore, even after the undervaluation duties are assessed,
the importer can petition the Customs Court, which will remit them if the
importer has acted in good faith.
The trouble with this procedure is that the provisions to protect the
innocent importer are not sufficient to prevent undervaluation duties from
being assessed in many cases where they are not deserved. To avoid them
the procedure is extremely cumbersome and roundabout, and involves a lot
of unnecessary paper-work in amending entries, which is a burden both on
the importer and on the collectors of customs.
Section 17 seeks to eliminate both the amendment of entries and the
circumstances which now make amendments necessary. The importer who
cooperates by supplying all information in his possession, or available
to him, will be no longer subject to undervaluation duties, even if the
appraiser has advanced the entered value. Furthermore, if the appraised
value should happen to be less than the entered value he will get the
benefit of the difference. Under present law, if the entered value
0
éL
- 7 -
exceeds the appraised value, the entered value governs, and the importer
gets no benefit from the lower appraisement« <■Therefore, amendment of
entries under the bill ceases to have any legal consequence, and can be
done away with as unnecessary«
Section 17 further provides that when undervaluation duties are
assessed they are subject to protest and review procedure the same as
any other duties« Consequently, if the importer believes that the
appraiser has been arbitrary in his demands for information, he can obtain
administrative and judicial review. The bill also eliminates the presumption
of fraud which arises under present law if the undervaluation is 100$>, or
more. We believe that such undervaluations are frequently innocent and
result from misunderstanding of the applicable method of valuation, and
therefore no presumption is justified. Of course, if there is actual
fraud other provisions of the customs laws can be invoked.
We believe that there will be three principal advantages to be
derived from these provisions. First, the Customhouses will not be
cluttered up with useless amendments of entries. Second, importers will
not be assessed undervaluation duties unless they have in some way been
derelict in performing their obligations under the law. Third, in cases
of doubt the question whether or not undervaluation duties have been
incurred will be determined much more quickly and cheaply. The final word
still remains with the Customs Court.
Another provision of the bill, Section 3, deals with certain special
marking requirements. There is a provision of the customs laws which
requires that all imported merchandise be marked to show the country of
origin, with certain obvious exceptions such as bulk goods. We are not
recommending any change in this provision. Elsewhere in the customs laws
there are certain additional requirements. For example, let me invite
your attention to paragraphs 35U and 355 of the Tariff Act of 1930« They
require that most knives when imported be marked with the name of the
maker or purchaser, and beneath the same, the name of the country of
origin* die sunk conspicuously and indelibly on the blade, or on the shank
or tang, it is not sufficient if the name of the maker be on the other
S^le^0f the ]?lade from the c°untry of origin, nor may these markings be
added after importation. In actual practice these provisions have been
ound to constitute traps for inexperienced importers seeking to market
new iines of merchandise in this country. Moreover, they serve little
■jV *
purP°se because the general marking requirements would insure
nat consumers would know what was the country of origin. These special
narking requirements have no provision for unusual or hardship cases,
onsequently, they often produce irritating wrangles such as occur when
and +^riC^ doctor orders specially designed surgical instruments abroad
^then finds that the special marking requirements prevent their
coming in*
278
The next section I would like to discuss is Section 15 , Certified
Invoices and Informal Entries. I have already explained what an entry is
in Customs language. Present law permits the entry of a shipment valued
at $100 or less to be "informal," which means that it is on a special
simplified form and is filled out by the Customs inspector for the
importer* The proposed bill would increase the dollar ceiling on such
informal entries to $ 250 , and, by an amendment introduced in the House,
would permit informal entries for certain importations for schools,
churches, and libraries, principally of books and pictures, without
limitation as to value. Formal entries require an amount of detail for
the importer and for the Customs which is excessive for shipments of
under $250 in value. The revised section will permit small value shipments
to be handled a great deal faster, to the benefit of both the importer
and the Government.
Next, I would like to refer to Section 20 of the bill, which deals
with conversion of currency. In recent years we have had a great deal
of difficulty in operating satisfactorily in cases where it is necessary
to convert a foreign currency into dollars for some Customs purpose.
¥e have to do that whenever we appraise merchandise which is bought by
payment in a foreign currency. Almost all "foreign value" appraisements
are necessarily in the foreign currency and have to be converted. If we
eliminate "foreign value," this problem will become less acute. The problem
will not be eliminated, however, for the determination of export value
will require a conversion of foreign currency whenever the applicable
export price is in a foreign currency, In recent years, conversion
troubles have multiplied as countries have imposed exchange restrictions,
have permitted black markets to develop in their currencies, and have even
developed "multiple rate currencies," They are systems whereby an exporter
who sells one product for dollars will get more of his own currency per
dollar than the exporter who sells some other product. In other words, there
are several exchange rates for the currency, depending on the commodity to
be exported.
The first part of Section 20 repeals the obsolete provision of an ‘
Act of 1891; which still requires the Secretary of the Treasury to publish
periodically the gold content of foreign coinage. This information was
intended to be used for customs purposes but is now useless for that
purpose, since foreign countries either do not announce the gold content
of tneir money, or, if they do, the figure has no significance in
international trade. Practically all currency conversions for customs
purposes today are made under the provisions of Section 522 of the
Tariff Act, which requires the Secretary of the Treasury to make use of
conversion rates certified daily by the Federal Reserve Bank of New York
w enever the rates actually employed in commercial transactions vary by
more than 5 percent from the gold content rate. Practically all commercial
rates do vary by more than 5 percent, and this provision thus applies.
r y jQ
£. i v
- 9 Section 20 of the bill will permit the Customs Service to employ as
.. h _ie conversion rate the par values of foreign currencies maintained
rmrsuant to the Articles of Agreement of the International Monetary Fun .
Some countries do not maintain such a par value, and, for these countries,
the conversion rate is to be determined by the New York buying rate as
certified by the Federal Reserve Bank, just as at present. The advantage
to be derived is that, whenever a par value is maintained, a constant
firnre canbe used, and it will not be necessary_for Customs officers to
follow the daily minute fluctuations that occur in the buying ra e*
will it be necessary for the Bank to supply certifications with respect to
thete'currencies which are maintained at par. When multiple rate currencies
£rt , t h e B a n k is to certify these rates and the Secretary is to apply,
for customs purposes, the rate or rates which refl.set e f f ? ° ^ ^ yt^ eruie
value of that currency in commercial transactions. This xollows the rule
set down by the Supreme Court in Barr v. United States. When a country
having a p L value established pursuant to the Fund Articles Permitsthe
actual commercial rate of exchange to deviate from that par, the Secret ry
likewise is to use certifications furnished by the Bank whetheror notthe
deviation is recognized as valid under the Fund - f e ^ h e ^ e a l i s t i c
that the rate employed for customs purposes shall always be ^he reali
commercial rate actually applicable to imports of the
such as the product undergoing appraisement. Experience has shown that
par values established with the International Monetary Fund are_dependable
as a "benchmark" in the sense that the rates actually employedin commercial
transactions do not deviate substantially from themo The provision for
cases of deviation will have to be invoked, we hope, in exceptional cases
only.
I
come now to Section 19 which would permit the correction of errors
and mistakes of importers or the Customs Service in customs transactions
which are adverse to the importer and which cannot be correc e un e3f
existing law« In the thousands of Customs transactions, many such mistakes
occur which should be corrected in order to do justice to the importing
public» The Government has no interest in retaining duties which were
improperly collected as a result of clerical error, mistake of fact, or
inadvertence* The inability to make refunds in such cases results in
great dissatisfaction and a feeling of injustice among importers,
particularly among those who are not regularly engaged in importing«
Under existing law, it is impossible to correct, by administrative action,
any error in appraisement, irrespective of the nature of the error#
Under this section, certain errors in appraisement which result from
inadvertencies and clerical errors may be corrected b y administrative
action. This will eliminate the necessity for assessing duties in many
instances on merchandise far in excess of its admitted value#
The six provisions which have been discussed above constitute the
most important aspects of H»R.
as they relate to commercial trans- ^
actions from a Customs viewpoint# There were two provisions m the original
10
bill which apparently caused some concern to certain elements of American
industry* Briefly, these two provisions related to what is known as the
"American selling price” method of valuation and the basis for taxing
distilled spirits* Both were eliminated by the House* Although such
provisions had the merit of producing simplification by bringing about
uniformity in customs administration, the Treasury does not propose that
they be reinstated in the bill by this Committee*
I have endeavored to highlight the principal provisions of this bill
which affect foreign trade* Other provisions of the bill, such as the
restatement and simplification of the statutes relating to the personal
effects of travelers, can be discussed in such detail as your Committee
may desire* I wish to assure you that the personnel of the Treasury is
available at all times to assist your Committee in its consideration of
this bill*
i
0O0
- 7 -
imported raw materials) will benefit the United States.
For these reasons,
the Treasury has sponsored and strongly supports the proposal that the
amendments to the Tariff >ct make provision for the determination of injury
as one part of the process leading up to the imposition of countervailing
duties.
I should, however \ like to take this opportunity to indicate certain
administrative aspects o A t h i s provision of the Bill.
The admijlistration
of the countervailing duty \rovisions will involve two separable determina
tions:
the determination of Vxistence and the amount ofi^any bounty or
grant, and the deterrain-?tion o A injury to domestic pso^ucers.
The
Secretary of the Treasury shouldVjontinue to be responsible for determining
whether a bounty exists in multiplV rate c a s e s t h e
bounty, if any*
extent of such
These are function A which sure closely related to the
continuing responsibilities of the Tr^suf^r in the Customs and foreignexchange fields.
It is the view of t^eVinterested agencies of the
Executive Branch of the Goverumen tfthe t
interests of economy for the
Government as a whole would be ifetter serveckif the responsibility for
establishing injury to domestic producers in countervailing duty as well as
in dumping cases were delegated to the Tariff Comission.
In anticipation Qi consideration of this aspect of the problem by
your Committee, th^s Department has been in consults iVon with the Tariff
'“'oamission and jfe a result thereof we are prepared to swomit for your
consideration« a further a.endment to Section 2 (c) which t%ovides for such
transfer gn functions.
the production of c o m o d i ties on which they do not wish to be too
dependent, it is extremely difficult in these circumstances to determine
that a system of multiple rates of exchange bestows a bounty or grant.
The Treasury submits that the adoption of a rigid formula or "rule
of thumb" is not well-calculated to deal with these complex situations.
Application of any such rigid formula would almost certainly result in
some determinations which Congress did not intend and would not wish.
For this reason, provisions such as those proposed in S„ 2668 ,
Senator Mundt* s Bill, do not appear to us to provide a suitable procedure
for operating in 'this field.
Section 2 (c) of the> proposed Customs Simplification Act provides in
substance for a determination of injury to American producers before
countervailing duties may be imposed.
In every matter relating to the
cost of imported goods, there are conflicting interests.
Particularly
where raw or semi-processed commodities are concerned, the American
processor has an active interest in obtaining his imports at the lowest
cost possible.
In many cases, keeping these costs at a minimum permits
the American producer to pass the savings on to the ultimate consumer.
On the other hand, American producers facing competition from imports
have a legitimate interest in making certain that the imports enter the
country under conditions of fair competition.
The countervailing duty
provisions of the Act are intended to prevent unfair practices arising
out of subsidies, where they cause or threaten to cause injury to American
producers,
Where they do not cause injury to American producers, then the
resulting lower prices to American consumers (including consumers who use
- 5 -
that there has been an intensification of the use of multiple exchange
rates In the period since 1939 *
I should like now to indicate how these factors of the modern world
make it extremely difficult for the .Treasury to arrive at simple
conclusions respecting the levying of-countervailing duties.
rates of exchange are utilized for various' reasons.
Multiple
They provide a
means of partial devaluation from an overvalued rate of exchange.
In
many countries they provide s convenient and efficient means of "collecting
revenue from important sectors of the economy,
In others they are an
important means' of countering inflation.. In njany foreign countries we
can point to concrete examples of the use of multiple rates of exchange
for the purpose of achieving one or more of these .results.
This is not to say that multiple rates of exchange may not be used
in order to bestow bounties or grants.
As I have indicated earlier, the
Treasury has always felt tha t it is possible for a foreign country to
utilize a multiple exchange rate system in order to bestow such bounties
or grants.
For example, a country whose prevailing export rate of
exchange fairly reflects its internal costs and degree p? efficiency,
could institute a more favorable rate for the specific and express
purpose of giving one of its export commodities an unfair competitive
advantage in entering the markets of the United States.
-But, given the
extreme complexity of the motives and economic results attaching to the
use of multiple rate systems throughout the world, and giver; the tendency
since the war for currencies to be overvalued rather thgn u n d e r v a lu e d
by their basic rates of exchange, and given the fact that many countries
retain their base rates of exchange so as to acquire revenue or penalize
pll
-4-|
eosimocities on which the burden is placed, receive fewer units of
locel currency for every pound or ton exported than they would receive
if they were permitted to operate at the newer and more realistic rate
of exchange*
Since the government pays out a smaller amount of money to
these producers tnan it would otherwise, it is able to provide a, very
important source of revenue for the national treasury*
This ca’
n also
be an effective means of controlling the inflationaiy effects of large
earnings ¡.n a few» export industries at a time when other export industries
are not booming.
I move now to another characteristic of the m o d e m world which impinges
directly on the problem before U3*
Since the outbreak of World Ylar II end
in some cases even more severely since the end of that war, many foreign
countries have found it exceedingly difficult to maintain stable economies
and balanced international payments.
Relatively few countries of the world
have gone through this whole period without balance—of-payments crises and
severe depletion of their foreign exchange reserves *
The devastation of
the war, the relative lack of materials, and the pressure of inflation
in many degrees and of many kinds, has placed a great many foreign countries
in a very difficult position.
W e have tried to do our best to assist those
foreign countries in their efforts to improve their position.
The world
is substantially better off than it was at the end of the war and in the
years immediately following the war.
Increasing efficiency, increasing
1
production and successive devaluations of foreign currencies have aided
materially in stabilizing the situation*
Nevertheless, we must admit that
today there are still problems of adjustment which countries Must find ways
of dealing with.
Given this fact and given the fact that multiple rates
provide an avenue for partial devaluations which in many instances causes
less repercussion than more complete devaluations , it is .not
surprising
- 3 -
the imposition of countervailing duties on all exports from such a
country merely because such exports would'be enjoying better rates
of exchange as compared with the rates formerly in effect.
However,
there are many cases where for various reasons countries have not
found it feasible to resort to general devaluation as a means of solving
their currency problems.
What they do as an alternative is to devalue
their currencies, so to speak, with respect to particular exports.
Do
the new rates in such cases always represent bounties or grants conferred
upon such exports?
The Treasury Department thinks not.
Thus far I have stated the problem in general terras.
I should now
like to relate it to the very real and veitr important economic develop-
t
ments which are taking place in the world around us.
There are several
characteristics of this world which impinge directly upon the problem at
hand.
One is that countries often find it difficult or impracticable to
levy income or other adequate taxes upon important segments' of their
economies.
In these circumstances these countries often find it much
easier to collect revenue through their central barks and exchange
authorities than through their internal revenue departments.
While we
may wish that such circumstances did not exist we must recognize that
they do exist in many countries*
We must recognize also that multiple
rates of exchange.p^vide a very effective instrument of taxation m
countries with relatively undeveloped tax systems.
simple.
The process is quite
A country whose currency is overvalued may devalue it's rate
of exchange for certain export commodities, but retain the old rate on
those commodities which it desires to tax.
This means that exporters
-
2
-
This is also the constant effort of the International Monetary Fund,
in which the United States actively participates.
Some progress has
been made in this direction, albeit slow progress, and we are hopeful
of tasking further progress as world conditions make it possible*
t
-trrrVl j T —
— 7— , —
the unsettled economic, political,
military, and financial state of the world today.
In circumstances such
as these, financial and monetary practices become particularly difficult
to deal with, making the economic implications of systems of multiple rates
especially complex and diverse.
Whei s country shifts to a system of multiple rates there may be
a partial devaluation of the currency of the country in question or there
may be a deliberate taxing or other burdening of a portion of the exports,
or both of the elements may be present.
If a bounty or grant is involved,
it will be in some of the cases of partial devaluation*
The existence of two or more export retes automatically opens up
the question of what is the appropriate rate, deviations from which may
involve unfair trade practice.
A. determin' tic-n of the appropriate basing
point or benchmark becomes necessary and until that determination Ce.n be
made it is simply not possible to find whether the
f o r e i g n
‘country is
engaging in that kind of unfair trade practice which the -law was intended
to offset by the instrument of countervailing duties.
Xt Is not proper to adopt as a general rule that the least dev.
rate is the benchmark.
If a country were to devalue its currency and
establish a more realistic unitary rate] the law of course does not re q u ir e
Z
T T*.. .
T4--'
-^gr
t
#sr
The Secretary has asked me to appear on his behalf to discuss one
particular aspect of the Bill before the Committee.
That is, the aspect
relating to the imposition of countervailing duties in cases where bounties
or grants on exports are found to exist in foreign countries.
If a foreign country bestows s Pash bounty on seme commodity in
order to facilitate its export to the United States, we have a clear-cut
set of facts and a finding of grant or bounty can be made promptly.
Perhaps because of the existence of our l r w t h e r e have, however, been
relatively few circumstances in which a country has seen fit to bestow
cash bounties on exports which are dutiable on entry into the United
States.
In those few cases the Treasury has acted.v Sometimes counter
vailing duties have been imposed and several of them are still on the
books.
In other cases the knowledge that the Treasury was about to
levy duties caused the foreign country to withdraw its bounty or
otherwise rectify the situation.
I should like to point*out that in
the cases of cash bounties the question of whether the hate of exchange
being used was an equitable or a fair rate of exchange 'does not arise.
Nor does it arise where there is only a single rate of* exchange.
I am sure you will appreciate, however, that the problem is greatly
complicated for us by the growth in recent years of complex systems of
multiple export or buying exchange rates.
In effect, a
m
u
l t i p
l e
export
rate means that the country is unable or unwilling to place ,s definite
single value on its currency.
Let me make it perfectly clear that the United States Government
does not like multiple exchange uvtes and has worked constantly to
simplify and abolish them wherever the circumstances would permit.
Treasruy Department
Washington-
Statement by Frank A* Southard ^ S p e c i a l Assistant to
the Secretary of the Treasury, before The Committee on Finance
of the United States Senate, on the Customs Simplification
Bill (H.R. 5595) h
T_ 2^
•7 '
if:
3 0
(P ^
Treasury Department
Washington
289
Statement by Frank A# Southard, Jr«,
Special Assistant to the Secretary of the
Treasury, before the Committee on Finance
of the United States Senate, on the Customs
Simplification Bill (H«R*
April 22,; 1952
Mr« Chairman and Members of the Committee:
The Secretary has asked me to appear on his behalf to discuss one
particular aspect of the Bill before the Committee« That is, the aspect^
relating to the imposition of countervailing duties in cases where bounties
or grants on exports are found to exist in foreign countries«
If a foreign country bestows a cash bounty on some commodity in
order to facilitate its export to the United States, we have a clear-cut
set of facts and a finding of grant or bounty can be made promptly*
Perhaps because of the existence of our law there have, however, been
relatively few circumstances in which a country has seen fit to bestow
cash bounties on exports which are dutiable on entry into the United
States« In those few cases the Treasury has acted. Sometimes counter
vailing duties have been imposed and several of them are still on the
books# In other cases the knowledge that the Treasury was about to
levy duties caused the foreign country to withdraw its bounty ox
otherwise rectify the situation« I should like to point out that in
the cases of cash bounties the question of whether the rate of exchange
being used was an equitable or a fair rate of exchange does not arise«
Nor does it arise where there is only a single rate of exchange«
I am sure you will appreciate, however, that the problem is greatly
complicated for us by the growth in recent years of complex systems of
multiple export or buying exchange rates« In effect, a multiple export
rate means that the country is unable or unwilling to place a definite
single value on its currency*
Let me make it perfectly clear that the United States Government
does not like multiple exchange rates and has worked constantly to
simplify and abolish them wherever the circumstances would permit#
This is also the constant effort of the International Monetary Fund,
in which the United States actively participates. Some progress has
been made in this direction, albeit slow progress, and we are hopeful
of making further progress as world conditions make it possible« The
Committee is well aware of the unsettled economic, political, military,
and financial state of the world today« In circumstances such as these,
financial and monetary practices become particularly difficult to deal
with, making the economic implications of systems of multiple rates
especially complex and diverse.
S-3029
- 2 -
2S0
When a country shifts to a system of multiple rates there may be a
partial devaluation of the currency of the country in question or there
may be a deliberate taxing or other burdening of a portion of the exports,
or both of the elements may be present* If a bounty or grant is involved,
it will be in some of the cases of partial devaluation*
The existence of two or more export rates automatically opens up the
question of what is the appropriate rate, deviations from which may in
volve unfair trade practice* A determination of the appropriate basing
point or benchmark becomes necessary and until that determination can be
made it is simply not possible to find whether the foreign country is
engaging in that kind of unfair trade practice which the law was intended
to offset by the instrument of countervailing duties*
It is not proper to adopt as a general rule that the least devalued
rate is the benchmark. If a country were to devalue its currency and
establish a more realistic unitary rate the law of course does not require
the imposition of countervailing duties on all exports from such a country
merely because such exports would be enjoying better rates of exchange
as compared with the rates formerly in effect. However, there are many
cases where for various reasons countries have not found it feasible to
resort to general devaluation as a means of solving their currency problems*
What they do as an alternative is to devalue their currencies, so to
speak, with respect to particular exports* Do the new rates in such
cases always represent bounties or grants conferred upon such exports?
The Treasury Department thinks not*
Thus far I have stated the problem in general terms. I should now
like to relate it to the very real and very important economic develop
ments which are taking place in the world around U 3 .
There are several
characteristics of this world which impinge directly upon the problem at
hand.
One is that countries often find it difficult or impracticable to
levy income or other adequate taxes upon important segments of their
economies. In these circumstances these countries often find it much
easier to collect revenue through their central banks and exchange
authorities than through their internal revenue departments. While we
may wish that such circumstances did not exist we must recognize that
they do exist in many countries. We must recognize also that multiple
rates of exchange may provide a very effective instrument of taxation in
countries with relatively undeveloped tax systems* The process is quite
simple. A country whose currency is overvalued may devalue its rate
of exchange for certain export commodities, but retain the old rate on
those commodities which it desires to tax. This means that exporters
of commodities on which the burden is placed, receive feiier units of local
currency for every pound or ton exported than they would receive if they
were permitted to operate at the newer and more realistic rate of exchange*
Since the government pays out a smaller amount of money to these producers
than it would otherwise*, it is able to provide a very important source of
revenue for the national treasury* This can also be an effective means
of controlling the inflationary effects of large earnings in a few export
industries at a time when other export industries are not booming*
I move now to another characteristic of the modern world which impinges
directly on the problem before us« Since the outbreak of World War II and
in some cases even more severely since the end of that war, many foreign
countries have found it exceedingly difficult to maintain stable economies
and balanced international payments« Relatively few countries of the world
have gone through this whole period without balance-of-payments crises and
severe depletion of their foreign exchange reserves« The devastation of
the war, the relative lack of materials, and the pressure of inflation in
many degrees and of many kinds, has placed a great many foreign countries
in a very difficult position* We have tried to do our best to assist
those foreign countries in their efforts to improve their position« The
world is substantially better off than it was at the end of the war and in the
years immediately following the war* Increasing efficiency, increasing
production and successive devaluations of foreign currencies have aided
materially in stabilizing the situation« Nevertheless, we must admit that
today there are still problems of adjustment which countries must find ways
of dealing with* Given this fact and given the fact that multiple rates
provide an avenue for partial devaluations which in many instances causes
less repercussion than more complete devaluations, it is not surprising
that there has been an intensification of the use of multiple exchange
rates in the period since 1939*
I should like now to indicate how these factors of the modern world
make it extremely difficult for the Treasury to arrive at simple conclusions
respecting the levying of countervailing duties* Multiple rates of exchange
are utilised for various reasons. They provide a means of partial de
valuation from an overvalued rate of exchanged In many countries they
provide a convenient and efficient means of collecting revenue from important
sectors of the econoity. In others they are an important means of countering
inflation* In many foreign countries we can point to concrete examples of
the use of multiple rates of exchange for the purpose of achieving one or
more of these results*
This is not to say that multiple rates of exchange may not be used in
order to bestow bounties or grants* As I have indicated earlier, the
Treasury has always felt that it is possible for a foreign country to
utilize a multiple exchange rate system in order to bestow such bounties
or grants* For example, a country whose prevailing export rate of exchange
fairly reflects its internal costs and degree of efficiency, could institute
a more favorable rate for the specific and express purpose of giving one of
its export commodities an unfair competitive advantage in entering the
markets of the United States* But, given the extreme complexity of the
motives and economic results attaching to the use of multiple rate systems
r^^Stout the world, and given the tendency since the war for currencies
° be overvalued rather than undervalued .by their basic rates of exchange,
and given the fact that many countries retain their base rates of exchange
th
acc^ re revenue or penalize the production of commodities on which
ey do not wish to be too dependent, it is extremely difficult in these
lrcumstances to determine that a system of multiple rates of exchange
bestows a bounty or grant.
- u The Treasury submits that the adoption of a rigid formula or »rule
of thumb» is not well-calculated to deal with these complex situations.
Application of any such rigid formula would almost certainly result in
some determinations which Congress did not intend and would not wish.
For this reason, provisions such as those proposed in S. 2668,
Senator Mundt*s Bill, do not appear to us to provide a suitable procedure
for operating in this field.
Section 2(c) of the proposed Customs Simplification Act provides in
substance for a determination of injury to American producers before
countervailing duties may be imposed. In e v e r y matter relating to the
cost of imported goods, there are conflicting interests. Particularly
where raw or semi-processed commodities are concerned, the American
processor has an active interest in obtaining his imports at the lowest
cost possible. In many cases, keeping these costs at a minimum permits
the American producer to pass the savings on to the ultimate consumer.
On the other hand, American producers facing competition from imports
have a legitimate interest in making certain that the imports enter the
country under conditions of fair competition. The countervailing duty
provisions of the Act are intended to prevent unfair practices arising
out of subsidies, where they cause or threaten to cause injury to American
producers. Where they do not cause injury to American producers, then the
resulting lower prices to American consumers (including consumers who use
imported raw materials) will benefit the United States. For these reasons,
the Treasury has sponsored and strongly supports the proposal that the
amendments to the Tariff Act make provision for the determination of injury
as one part of the process leading up to the imposition of countervailing
duties.
0O0
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 ll£ of the Revenue Act of 19l*l, 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.
Accord
ingly, 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. iil8, 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.
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 accept
ance 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 reserva
tions, 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 Re
serve Bank on
May 1, 1952
, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
May 1, 195— ___
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
e
M
fimi
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 2 b , 1952
/
"d *
S\j <-* ^30
.
The Secretary of the Treasury, by this public notice, invites tenders
for $1 ,5QQtOOQ,pop
, or thereabouts, of
91
-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 1, 1952
the amount of $1 ,3 0 1 A 3 5 ,OOP
______, in
, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
May 1, 1952
The bills
, and will mature
July 31, 1952
, when the face amount will be payable without in
fear)?
terest. They will be issued in bearer form only, and in denominations of
$1 ,000, $5 ,000, $1 0 ,000, $100,000, $500,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two oiclock p.m., Eastern/Staeranfea®afc time, Monday April 28, 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 competi
tive 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
TREASURY
..... .
DEPARTM ENT
I ,|i|W|iii m iiirifîm iB r— .......................... .............................................................................
Information Service
PLEASE MORNING NEWSPAPERS,
Thursday; April 24, 1952 >
Wa s h in g t o n , d .c
S-3030
The Secretary of the Treasury* by this public notice / invites
tenders for $1,500,000,000/ or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing May 1, 1952, in
the amount of $1,301,435,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The
bills of this series will be dated May 1, 1952, and will mature
July 3 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 ,0 0 0 , $1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and $1 ,0 0 0 ,0 0 0
(maturity value).
’ '*
,
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Daylight Saving
time, Monday, April 28, 1952.
Tenders will not be received at the
TreasuryJDepartment, Washington.
Each tender must be for an even
multiple of $1 ,0 0 0 , and in the case of competitive tenders the price
offered must be expressed on the basis of 1 0 0 , with not more than
three decimals, e. g., 9 9 . 9 2 5 . Fractions may not be used.
It is
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 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, 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 announce
ment will be made by the Secretary of the Treasury of the amount and
P^ice 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
^11 tenders, in whole or in part, and his action in any such respect
small be final.
Subject to these reservations, non-competitive
benders for $2 0 0 ,0 0 0 or less without stated price from any one
idder will be accepted in full at the average price (in three
ecimals) of accepted competitive bids.
Settlement for accepted
emders in accordance with the bids must be made or completed at the
2
Federal Reserve Bank on May 1, 1952, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
May 1 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, o p any. of the
possessions of the United States, or by any local taxing authori y.
For purposes of taxation the amount of discount at; which Treasury
bills are originally sold by the United States shall be, considere
to be interest. U^der Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended...by Section 115 of the Revenue .Act .of 19^1,
the amount of discount, at which bills, issued hereunder are sold,
shall not be considered to accrue until such bills s h a l l ,be. sola,
redeemed or otherwise disposed of, a n d . such bills.are exclude
consideration as capital as s e t s . Accordingly, the^owner of . ^
Treasury bills (other than life, insurance companied) issued hereund
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 P
sale or redemption at maturity'during .the .taxable year for whicn ^
return is made, as ordinary gain or lo s s ,
Treasury Department Circular U o . 4l8, as amended, and this
notice, prescribe the terms of the Treasury.bills and govern tne^.
conditions of their issue. Copies o f .the circular may be obtained
from any Federal Reserve Bank or B r a n c h .
0 O0
BABBINOS, EXPENSES, AND DIVIDENDS PF NATIONAL BANKS POE YEAES
ENDED DECitfBER 31, 1951 AND 195O - Continued
(Amounts in thousands of dollars)
1951
Escovaries, transfers from valuation
reserves and profits!
On securitiesS
E e c o v e x i e s » *
Transfers from valuation reserves» ••
Profits an securities sold or redeemed
*
5.6l4
7,058
39.723
On loans!
Eeeoveri es»
12» 125
Transfers from valuation reserves.«•*• 12,129
All other»*•*•••••••••»•••••*•.••••••
. _ J £ a 22it__
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS......
q<;.643
81^950
1950
9,670
-¥,056
- 21,941
-a, 22«
28,999
60,951
15,»101
13.333
-3.276
-i,ao4
___
153.732 ....
—O. jO*t.
-58,089
Losses, charge-off8. and transfers to valfr*
ation reserves*
On securities*
51.191
Losses and charga-offs»....•••••«»**•*. 51*191
17,162
Transfers to valuation reserves.••••♦•. 17,lo2
On loans!
9,606
Losses and charge-offs*»•••• »«•*«.••••.
9*°06
125.596
Transfers to valuation reserves..... . 125»596
27.1*52
A H other»
....... ............ . . <4 27*452
24,010
41,360
+27,181
-24,198
10,909
109,258
30.740
-I.303
+16,338
-3.288
TOTAL LOSSES, GHABGIUQFFS,AND TRANS*►
231.007
FEES TO VALUATION RESERVES....... ,» 231*007,
. 839.591
PROFITS BEFORE INCOME TAXES»........
216.277
793.100
+14.730.
+46.491
^ 1,949
13.*)4l
2S5.490
537.610
+75,481
•*•77*5
-30.915
712
228.792,
229,504
-97
+18.438
+18,341
Taxes on net income!
Federal........
..
317,430
15 .*¿66
TOTAL TAXES ON NET INCOME..........,» 332.896
.. 506.695
Cash dividends declared!
On preferred stock*..................
On common stock»
Number of hanks 2/................. .
..
615
.. 2^7.230
.. 247,845
..
î+,9^0
*+»9^
4,965
“
-IS
Percent
Percent
Percent
Rate of net -profits!
-.95
8.74
To capital funds.................. .. ...
7*79
7.79
Rate of cash dividends?
+»08
3.73
...
3.81
To capital funds.......................
3*81________
1j Averages of amounts reported for the June and December call dates in year
indicated and the December call date in the previous year»
2
BASHINGS, EXPENSES, AND DIVIDENDS 0? NATIONAL BANKS FOR YEARS
ENDED DECEMBER 31, 1931 and 1930
(Amounts in thousands of dollars)
*
*
*
Capital stock, par value* 1/
1951
*
*
*
1950
t
* Change since
1950
*
16,079
....... $
1?,032 $
1.949,898
....... 2.046.018
.... .
TOTAL CAPITAL STOCK*♦..*..... <
.......
-4,04?
*96.120
2.0*58.090
1.963.977
6,506,37s
6,152» 799
+353.579
590.533
132,330
1,103,360
119,604
-a, 7a
+15,875
♦237.382
+9.576
Earnings from, current operations*
Interest and dividends*
568,812
On U. S. Government obligations* •••*.»•
148,205
On other securities,,.....*.... ..*•••
Interest and discount on loans*********** 1,340,742
129.180
Service charges on deposit accounts******
Other service charges, commissions, fees,
and collection and exchange charges*•»•
70,^59
75,130
Trust department**................ ••*••
121.8*50
Other current earnings*******************
•»92*073_
112.938
+6,603
+5.038
+8.892
2.Wk*558
2.192.713
+26l.®£
250,318
482,447
230,331
421,741
+19.987
♦60,706
12,957
11,775
+1,182
218,626
76,958
190,374
74,4l6
+28,252
+2,542
37.141
1100.9*56
33,619
^7«..812
+3.522
TOTAL CURRENT OPERATING EXPENSES*.... l.h79.iK>*5
1.337.068
+142.335.
TOTAL EARNINGS FROM CURRENT
OPERATIONS................... .
Current operating expenses I
Salaries and wages*
Officers* *.....••••••••..... *.......
Employees other than officers*•»••••**•
Fees paid to directors and members of
executive, discount, and advisory
committees*•«•*.... .
Interest on time deposits (including
savings deposits) •••••••••«•»»•••*•••«•
Taxes other than on uet i n c o m e * •*».****
Recurring depreciation on banking house,
furniture and fixtures*•• »•*•••• ••••«**
Other current operating expenses*•»••••• •
NET EARNINGS FROM CURRENT OPERATIONS......*
974.955
63,856
70,092
855.645- ♦119.3m
- 2 -
employees and fees paid to directors, an increase of #32,000,000 over 1950,
and #218,000,000 expended for interest on time deposits, an increase of
$28,000,000*
Cash dividends declared on common and preferred stock in 1951 totaled
$248,000,000 in comparison with #230,000,000 in the previous year*
rate of cash dividends was 3*81 percent of average capital funds*
The
The
cash dividends in 1951 were 49 percent of net profits available for the
year.
The remaining 51 percent of net profits, or #259,000,000, was
retained by the banks in their capital funds.
On December 31, 1951 there were 4,946 national banks in operation,
as compared to 4,965 at the end of 1950*
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MCJpNING NEWSPAPERS
^
2-—
¿P 3 /
S~
National banks in the United States and possessions had net profits before
dividends for the year 1951 of
$507,000,000 which
amounts to
7*79 percent
of
average capital funds, Comptroller of the Currency Preston Delano announced
today.
Net profits for the previous year were $536,000,000, or
9 percent
of
average capital funds.
Net earnings from operations for the calendar year 1951 °f $975,000,000
showed an increase of $119*000,000 over the year 1950*
However, after adding
to net earnings from operations profits on securities sold of $40*000,000 and
recoveries on loans and investments, etc. (including adjustments in valuation
reserves) of $56,000,000 and deducting losses and charge-offs (including
current additions to valuation reserves) of $2 31*000*000 and taxes on net
income of $3 3 3 ,000,000, the net profits of the banks before dividends for
the year 1951* cs noted above, were $3 1 *000,000 less than for the year 1950»
Gross earnings were $2,454*000,000, an increase of $261,000,000 over 1950»
Principal items of operating earnings in 1951 were $1,341*000,000 from interest
and discount on loans, an increase of $2 3 7 ,000,000 over 1950, and $569,000,000
from interest on United States Government obligations, a decrease of $22,000,0
Other principal operating earnings were $146,000,000 from interest and dividen
on securities other than United States Government, and $129,000,000 from
service charges on deposit accounts.
Operating expenses, excluding taxes
net income, were $1,479,000,000 as against $1,337,000,000 in 1950»
Princip
operating expenses were $746,000,000 for salaries and wages of officers an
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS
Wednesday, April 23, 195?2,
S**3031
National banks in the United States and possessions had net profits before
dividends for the year 1951 of 150 7,000,000 which amounts to 7*79 percent of
average capital funds, Comptroller of the Currency Preston Delano announced
today# Net profits for the previous year were $538,000,000 or 9 percent of
average capital funds#
Net earnings from operations for the calendar year 1951 of $975,000,000
showed an increase of .$119,000,000 over the year 1950. However, after adding
to net earnings from operations profits on securities sold of $lj.0,000,000 and
recoveries on loans and investments, etc# (including adjustments in valuation
reserves) of $56,000,000 and deducting losses and charge-offs (including
current additions to valuation reserves) of $231,000,000 and taxes on net
income of $3 3 3 ,000,000, the net profits of the banks before dividends for
the year 1951, as noted above, were $3 1 ,000,000 less than for the year 1950*
Gross earnings were $2,U5U,000,000, an increase of $261,000,000 over 1950#
Principal items of operating earnings in 1951 were $1,3^1,000,000 from interest
and discount on loans, an increase of $237,000*000 over 1950, and $569,000,000
from interest on United States Government obligations, a decrease of $22,000,000#
Other principal operating earnings were $114.8*000,000 from interest and dividends
on securities other than United States Government, and $129,000,000 from
service charges on deposit accounts# Operating expenses, excluding taxes on
net income, were $1,1*79,000,000 as against $1,337,000,000 in 1950# Principal
operating expenses were $71*6 ,000,000 for salaries and wages of officers and
employees and fees paid to directors, an increase of $82,000,000 over 1950,
and $218,000,000 expended for interest on time deposits, an increase of
$28,000,000#
Cash dividends declared on common and preferred stock in 1951 totaled
$21*8,000,000 in comparison with $230,000,000 in the previous year. The rate
of cash dividends was 3#81 percent of average capital funds# The cash
dividends in 1951 were 1*9 percent of net profits available for the year. The
remaining 51 percent of net profits, or $259,000,000, was retained by the
banks in their capital funds.
On December 31, 1951 there were [*,91*6 national banks in operation, as
compared to I4.,965 at the end of 1950#
VI
302
- 2 EARNINGS, ’‘XPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 31> 1951 and 1?50
(Amounts in thousands of dollars)
1951
Capital stock, par value: 1/
Preferred.
Coinraon.
:
•
^
:
1950
l Change since
1 2 9032 $
16,079
1,91*9,898
2 ,Oli6 ',Ol8
-l*,0l*7
¿96,120
¿92,073
TOTAL CAPITAL STOCK.
2,058,050
1,965,977
Capital funds !/••• •••••«•
6,506,378
6,152,799 ¿353,579
568,812
11*8,205
1,31*0,71*2
129,180
590,533 -21,721
132,330 ¿15,875
1,103,360 ¿237,382
119,601*
¿9,576
Earnings from current operations?
Interest and dividends?
On U. S. Government obligations...••••••
On other securities..••«•••*•..*••••••••
Interest and discount on loans.
Service charges on deposit accounts.••••••
Other service charges, commissions, fees,
and collection and exchange charges...*.
Trust department.
Other current earnings.
TOTAL EARNINGS FROM CURRENT
OPERATIONS............••••••**•«•••••
Current operating expenses:
Salaries and wages:.Officers. ••.•••••••••«
Employees other than officers...••*•*«..
Fees paid to directors and members of
executive, discount, and advisory
committees.
Interest on time deposits (including
savings deposits)..........
Taxes other than on net income............
Recurring depreciation on banking house,
furniture and fixtures......... .... .
Other current operating expenses.........
70,1*59
75,130
12 1,8 30
6 3,856
70,092
112,938
¿6,603
¿5,038
¿8,892
2,1*51*,358
2,192,713 ¿261,61*5
250,318
1*82,1*1*7
230,331 ¿19,987
U21,7lil ¿60,706
i
12,957
11,775
/1,18 2
218,626
76,958
190,371* ¿28,252
71*,1*16 ¿2,51*2
37,11*1
1*00,956
33,619
371*,812
¿3.522
¿26,11*1*
TOTAL CURRENT OPERATING EXPENSES......
1,1*79,1*03
1 ,33 7,0 6 8 ¿11*2,335
NET EARNINGS FROM CURRENT OPERATIONS........
971*,955
855,61*5 ¿119,310
- 3 -
OUu
EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 3 1 , 1931 AND 1930 - Continued
(Amounts in thousands of dollars)
1950
1951
Recoveries, transfers from valuation
reserves and profits«
5n securities:^
Change
iince 1930
9 ,6 7 0
2 8 ,9 9 9
6 0 ,9 5 1
-U ,o 3 6
- 2 1 ,9 l | l
-2 1 ,2 2 8
Transfers from valuation reserves,•«
All other,
1 2 ,1 2 5
1 2 ,1 2 9
18 ,9 9U
1 5 ,5 0 1
13,3 33
25 ,3 78
-3 ,2 7 6
-1 ,2 0 5
-6 ,3 8 5
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND FROFITS.,.,
95,653
1 5 3,73 2
-5 8 ,0 8 9
§
Recoveries ,• • •
Transfers from valuation reserves.
d
Profits on securities sold or redeemed
5 ,6 l 5
7 ,0 5 8
3 9 ,7 2 3
On loansi
Recoveries.
|i
Losses, charge-offs, and transfers to valuatioh reserves*
On securities s
Losses and charge-offs,,
Transfers to valuation reserves,,,,,
On loans:
Losses and charge-offs*,,...........
Transfers to valuation reserves,,,..
All other
5 1 ,1 9 1
1 7 ,1 6 2
2 5 ,0 1 0
5 1 ,3 6 0
¿ 2 7 ,1 8 1
-2 5 ,1 9 8
9 ,6 0 6
12 5,596
2 7 ,5 5 2
1 0 ,9 0 9
109,23 8
30 ,7 U 0
-1 ,3 0 3
¿1 6 ,3 3 8
- 3 ,2 8 8
TOTAL LOSSES, CHARGE-OFFS, AND TRANS
FERS TO VALUATION RESERVES........
PROFITS BEFORE INCOME TAXES...............
216,277
231,007
839,591'“ ” 793,100”
Taxes on net income:
Federal,
S t a t e . ,.•••••«.•••*•••«*»*•
TOTAL TAXES ON NET INCOME........
NET PROFITS BEFORE DIVIDENDS..............
Cash dividends declared:
On preferred stock.
On common stock.0......................
TOTAL CASH DIVIDENDS DECLARED.....
^ e r of banks'2/ ..“.'.T.'.“.. 7 7 7 ......'.'.'.7
3 1 7 ,5 3 0
l5 ,5 6 6
" 3 3 2 ,5 9 6
pUO,0/3
615
25 7,230
5,955
25 1,959
1 3 ,5 5 1
...2 3 3 ,1 ^ 0 “
(a0J.U
712
228,792
¿ 1 5 ,7 3 0
¿ 7 5 ,5 8 1
¿ 1 ,9 2 5
"■ 7777555
"^3(57913
-9 7
¿ 1 8 ,5 3 8
-1 9
Percent
Percent
Percent
To capitaTTunds................
-*»93
7,79“
877IT
Rate of cash d iv iHpnH«.
,.Tplcapical furRIs r '
_ /,08
3.61
3 .7 3
J Averages of amounts repiorted for the June and DeceirSer call dates in year
indicated and the December call date in the previous year.
U At end of period.
0O0
"As a matter of convenience, the office of the Director will
be identified by the city in which his headquarters is located.
For
example, the Director of Internal Revenue for the present Eighth
Illinois Collection District (headquarters at Springfield) will be
known as
»Director of Internal Revenue, Springfield'.
"The Plan also provides for District Commissioners' offices
which will be in the nature of regional administrative offices having
A
supervision over two or more Directors of Internal Revenue.
"District Commissioners» offices will also be identified ty
their headquarters city*
For example, the District Commissioner
who will supervise Directors' offices in Illinois will have his
headquarters in Chicago and will have the operating title 'District
Commissioner, Chicago»."
TREASURY DEPARTMENT
Bureau of Internal Revenue
IMMEDIATE RELEASE
f Jl
/fir
Commissioner of Internal Revenue John Be Dunlap announced today that
the title "Director of Internal Revenue” will be used to designate each
of the 6k Revenue offices which will replace the Collectors1 offices
abolished under the President’s Reorganization Plan»
During earlier consideration of Reorganization Plan No, 1 of 1952.
the title "Deputy District Commissioner" w æ
^ n r - ~ ç m m h — , +Tnn
i
ilA- ’H
fȓ c U A -
q
f-P-j
nm
f?h
UT 1 1
oppiar»/*
ft f n l
e f 'f i e o and utlTU'l f i e l d u f f lu
Commissioner Dunlap said that the title "Director of Internal Revenue"
has been chosen because the Director will really be the operating head of
all Revenue activities in his area.
In announcing the title for this new
office the Commissioner also said:
"It is the Director’s office which will embrace the functions
of the old Collector’s office on a reorganized basis, as well as all
other Revenue functions within his area which have not been a part of
the Collector’s office.
Taxpayers will pay their taxes to the
’Director of Internal Revenue’ for their district when the Director’s
office is installed.
However, pending such installation, the
Collectors’ offices and other Revenue offices will function as
usual.
TREASURY DEPARTMENT
Bureau of Internal Revenue
IMMEDIATE RELEASE,
Friday^ April 25, 1952 .
S- 3 0 3 2
.Commissioner of Internal Revenue John B. Dunlap announced
today that the title "Director of Internal Revenue" will he
used to designate each of the 64 Internal Revenue Service
offices which will replace the Collectors' offices abolished
under the President’s Reorganization Plan.
During earlier consideration of Reorganization Plan No. 1 of
1952, the title "Deputy District Commissioner" was tentatively used
for these new offices.
Commissioner Dunlap
Revenue" has been chosen
be the operating head of
announcing the title for
said:
said that the title "Director of Internal
instead because the Director will really
all Revenue activities in his area.
In
this new office the Commissioner also
"It is the Director’s office which will embrace
the functions of the old Collector’s office on a
reorganized basis, as well as all other Revenue functions
within his area which have not been a part of the
Collector’s office.
Taxpayers will pay their taxes to the
’Director of Internal R e venue’ for their district when the
Director’s office is installed.
However, pending such
installation, the Collectors’ offices and other Revenue
offices will function as usual.
"As a matter of convenience, the office of the
Director will be identified by the city in which his
headquarters is located.
For example, the Director
of Internal Revenue for the present Eighth Illinois
Collection District (headquarters at Springfield) will
be known as ’Director of Internal Revenue, Springfield’.
"The Plan also provides for District Commissioners’
offices, which will be in the nature of regional
administrative offices, each having supervision over two
or more Directors of Internal R e venue.
"District Commissioners’ offices will also be
identified by their headquarters city.
For example,
the District Commissioner who will supervise Directors’
offices in Illinois will have his headquarters in Chicago
and will have the operating title 'District Commissioner,
Chicago’."
0O0
3o
JffiiaUSE MISI» HESSPATOS,
twwdmr. Aprii gg, 1958.
The Secretary of thè
m m m m i s & 1eet
$1,500,000*000, er thareabeet«,
mmàMg
mi 91*4«? frmtmvxf
7 7
j ^
thai tlm U m A m m for
¥111« to b* datai bay
X «ad to
attor* «?tOjr 31, 1952, *kti«h aere offerti o» Aprii 2b, atre ©pened *t tl» federai
Reeerve Bank* ©a Aprii SS*
firn dettile of thie Ittuo tre «a follo*«*
fotti Applied for - $2,¿*92,320,000
fotti acoepted
-
1,£02,9*3,000 (Ì»dLtsd*t $175,728,000 enterea ©a t
k m m m prie©
»on-coapetitir* beale end «eotpted in
full tt th* «vtrt|t prie© ©dota belo*)
- 99.573 l^tlvaltat rat* of ditcount appresa. 1.6915 par m m
Età«* of aeeepted competitive bidet
- 99.635 Equivalentirat* of ditoouat approx. 1.5235 P©* w»*
» 99,571
•
» #
»
» 1,697 *
Mlgb
im
(65 parolai of thè «aount bid fer et tb© lo* pria* ©et aeeopted)
Federai Reterre
District
fotti
Applied for
fatei
Boatcm
lew Tork
phìladelpfcia
Glereland
Rlebnond
i
I
$2,1*92,320,000
$1,502,963,000
Atlanta
Chicago
Si. toni*
HinxMiapolia
Renata City
Pallae
San Franeiaeo
fotti
28,91,7,000
1,691»,765,000
1,7,272,000
53,598,000
31,853,000
1W,083,000
307,217,000
39,207,000
8,265,000
59,583,000
50,227,000
131,303.000
Aeeepted
18,51*7,000
91*8,795,000
15,672,000
W , 398,000
25,178,000
27,513,000
209,367,000
21,350,000
6,265,000
52,083,000
39,1*77,000
95.318,000
t r e a s u r y
d e p a r t m e n t
WASHINGTON, D .C .
Inform ation S e r v i c e
release
morning
Tue scici'
newspapers
,
April 2 9 1 9 5 2 .
The Secretary of the Treasury announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills
to he dated May 1 and to mature July 31, 1952, which were offered on
April 24, were* opened at the Federal Reserve Banks on April 28.
The details of this issue are as follows:
Total a p p l i e d for
Total e x c e p t e d
Average p r i c e
èp 4 q ? 820 000
l'5 0 2 ^9 6 3 * 0 0 0 (includes $175,728,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
99.573 Equivalent rate of discount approx.
.1 .6 9 1 $ per annum
Range of accepted competitive bids
- 9 9 . 6 1 5 Equivalent
1
- 99.571 Equivalent
1
High
Low
rate
.5 2 3 $
rate
.6 9 '?$
of discount approx
per annum
of discount approx
per annum
(85 percent of the amount bid for at the low price was accepted)
Total
Applied for
Federal Reserve
District^
Boston
Nev York
P h ila d e lp h ia
C le v e la n d
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a n c is c o
TOTAL
Total
Accepted
28,947, 000
1 ,6 9 4 ,7 6 5 ,000
47,272, 000
53,598, 000
31,853, 000
40,083, 000
307,217, 000
39,207, 000
8 ,2 6 5 ,000
59,583, 000
50,227, 000
I3 I/3 0 3 ,000
000
1 8>,^7,
,5
948,795 000
1 5 ,6 7 2 ,000
4 3 ,3 9 8 ,000
2 5 ,1 7 8 ,000
2 7 ,5 1 3 ,000
2 0 9 ,3 6 7 ,000
2 1 ,3 5 0 ,000
6 ,2 6 5 ,000
5 2 ,0 8 3 ,000
39,^77, 000
9 5 ,3 1 8 ,000
$2 ,4 9 2 ,3 2 0 ,0 0 0
$1 ,5 0 2 ,9 6 3 , 0 0 0
$
0 O0
j
^
S
r
»
£ n t i r
Frank £ow, Commissioner of Customs, announced today that pre
flight examination of baggage of passengers embarking at Malton
Airport, Toronto, Canada, for United States ports, is being estab
lished on a^pe^^SJSir^asls* Such passengers will ^M^Unlted States
duties, if any, prior to departure rather than upon arrival in the
United States* The nee system, which greatly speeds the release of
plane passengers and their baggage upon arrival has been in operation
on a trial basis since January lh.
Mr. Dow said the procedures had met enthusiastic approval of plane
ny^jsK
y~zzz****
passengers; and that trial'period experience indicates thftt^the safe
guards established e^ade^iate to protect customs rey$nue*£
This is the first application by United States cua^|oms & pre|- ^
' jg*
flight baggage examination to international air trafng*
; fa -
iio i
£ui
2*
cmcsiv W 5-52
«5-30
f
^p»
£/>
og
IMMEDIATE R E L E A S E ,
Tuesday, April 29, 1952 •
S -3034
Frank Dow, Commissioner of Customs, announced today
that preflight’examination of baggage of passengers embark
ing at Maiton Airport, Toronto, Canada, for United States
ports, is being established on a continuing oasis. Such
passengers will deposit United States duties, if any,
prior to departure rather than upon arrival in the
United States. The new system, which greatly speeds the
release of plane passengers and their baggage upon arrival
has been in operation on a trial basis since January 14.
Mr. Dow said the procedures had met enthusiastic,
approval of plane passengers* and that trial period experience
indicates that present volume of traffic justifies continuation.
He said the safe-guards established are proving adequate to
protect customs revenues.
This is the first application by United States customs
of preflight bagge^ge examination to international air traffic.
oOo
VIRGINIA
Colgate W* Darden, President
University of Virginia
Charlottesville, Virginia
WASHINGTON
Reno Odlin, President
The Puget Sound National Bank
Tacoma, Washington
WEST VIRGINIA
Lewis C. Tierney, President
The Tierney Company
P. 0 . Box 1153
Charleston, West Virginia
WISCONSIN
William i'aylor, President
First Wisconsin National Bank
Milwaukee, Wiseonsin
WIOMING
Fred W. Marble, President
Stock Growers National Bank
Cheyenne, Wyoming
- 3 -
NEVADA
A* G, Grant
Ford Agency
300 North 5th Street
Lab Vegas, Nevada
OREGON
E. C, Sammons, President
United States National Bank
Broadway and 6 th at Stark
Portland 8 , Oregon
N M HAMPSHIRE
Norwin S. Bean
Chairman of the Board
The Manchester National Bank
Manchester, New Hampshire
PENNSYLVANIA
Arthur C. Kaufmann
Executive Head
Gimbel Brothers, Inc,
Philadelphia 5, 'Pennsylvania
NEW JERSEY
Elmer H, Bobst
c/o Wm, R, Warner Company
113 West 18 th Street
New York 18 , New York
RHODE ISLAND
N M MEXICO
SOUTH CAROLINA
Burnell Sloan," Executive Vice Pres.
The First National Bank of
South Carolina
Columbia, South Carolina
NEW YORK
Lewis E, Pierson
Metropolitan Club
Fifth Avenue and 60 th Street
New York 23 , New York
NORTH CAROLINA
William H, Neal
Senior Vice President
Wachovia Bank and Trust Company
Winston-Salem, North Carolina
NORTH DAKOTA
LeRoy A* Pease, Secretary
Greater North Dakota Association
Fargo, North Dakota
OHIO
Loring L, Gelbach, President
Central National Bank of Cleveland
Cleveland, Ohio
OKLAHOMA
A. E, Bradshaw, President
National Bank of Tulsa
Boston Avenue and Third Street
Tulsa 2 , Oklahoma
Chester R, Martin, Asst, Dir,
Dept, of Social Vielfare for
State of Rhode Island
hO Fountain St,
Providence 3> Rhode Island
SOUTH DAKOTA
TENNESSEE
Vanee J. Alexander, President
Union Planters National Bank
Memphis, Tennessee
TEXAS
Nathan Adams, Chairm an
U, S, S a v in g s Bonds Committee
for Texas
c/o First National Bank in Dallas
Dallas 1 , Texas
UTAH
Charles L, Smith
Chairman of the ]3oard
First Security Bank of Utah
79 South Main Street
Sait Lake City 1 , Utah
VERMQNT
Levi F , Smith, President
The Burlington Savings Bank
Burlington, Vermont
- 2 -
IDAHO
Charles C. Adams
M a m s Auto Sales
Lewiston, Idaho
MAINE
A. J » Cole, President
Cole’s Express
76 Dutton Street
Bangor, Maine
■la
ILLINOIS
Roy Tuchbreiter, President
Continental Casualty and
Assurance Companies
310 South Michigan Avenue
Chicago It, Illinois
MARYLAND
Colonel Roy Barton White, President
Baltimore and Ohio Railroad
Charles and Baltimore Streets
Baltimore, Maryland
Vice Chairman
Norman B. Collins, President
National Security Bank of Chicago
Chicago, Illinois
MASSACHUSETTS
Corodon S. Fuller, Vice President
Foxboro Company
Foxboro, Massachusetts
INDIANA
Eugene C. Pulliam
Radio Station WIRE
Indianapolis, Indiana
MICHIGAN
IOWA
(!ierard S. Nollen
Chairman of the Board
Bankers Life Company
Des Moines, Iowa
vgO"Chairman
D F v ^ J o p n o T Nollen
9l 6 ^ 8^venth Avenue
£&*inneri, Iowa
KANSAS
Evan Griffith
Chairman of the Board
Union N at i onal B ank
Manhattan, Kansas
KENTUCKY
Wilson W. Wyatt
Wyatt, Grafton & Grafton
Marion E* Taylor Building
Louisville, Kentucky
LOUISIANA
Harold Mischler, Vice President
National American Bank of New Orleans
New Orleans, Louisiana
Frank N. Isbey, President
Detroit Fruit Auction
Detroit, Michigan
MINNESOTA
John C* Cornelius
Executive Vice President
Batten, Barton, Durstine & Osborn
l6 )j.O Northwestern Bank Building
Minneapolis., Minnesota
MISSISSIPPI
Rex I. Brown, President
Mississippi Power & Light Company
Jackson, Mississippi
MISSOURI
Robert E# Lee Hill
U# S. Savings Bonds Division
330 East High Street
Jefferson City, Missouri
MONTANA
|U T. Hibbard, President
Union Bank & Trust Company
Helena, Montana
NEBRASKA
Wade R.’"Martin, Executive Vice Pres»
Livestock National Bank
k 81|0 South 2l|th Street
Omaha 7 , Nebraska
Treasury Department
U« S. Savings Bonds Division
Washington Building
Washington 25>s D* C.
STATE ADVISORY CHAIRMEN
COLORADO
p. K. Alexander, Vice President
First National Bank of Denver
17 th and Stout Streets
Denver 17 * Colorado
ALABAMA
Ed Leigh McMillan, President
Brewton, Alabama//
T. R. Miller Lumber Company
ARIZONA
Hugh C. Gruwell, President
First National Bank of Arizona
Phoenix, Arizona
ARKANSAS
W. W. Campbell, President
National Bank of Eastern Arkansas
Forrest City, Arkansas
CALIFORNIA (Northern)
W. W. Crocker
U. S. Savings Bonds
Division
Room 611 , Pacific Building
821 Market Street
San Francisco, California
Co-Chairman
Merriel Cooley
U. S, Savings Bonds Division
Room 611 , Pacific Building
821 Market Street
San Francisco, California
CALIFORNIA (Southern)
R. H. Moulton
,£l0 South Spring Street
Los Angeles 13 * California
r j/
2
/^\r2-
CONNECTICUT
6 . Harold" Welch, Vice President
The New Haven Bank
New Haven, Connecticut
DELAWARE
Willard Springer, Jr., President
Industrial Trust Company
Wilmington 99 * Delaware
DISTRICT OF COLUMBIA
E. C. Baltz, President
Perpetual Building Association
Eleventh and E Streets, N. W%
Washington 1*, D* C.
FLORIDA
V. H. Northcutt, President
The First National Bank of Tampa
Tampa, Florida
GEORGIA
Jackson P. Dick
Chairman of the Board
Atlanta Transit Company
Transit Building
Atlanta, Georgia
HAWAII
G. S. Waterhouse
Bishop National Bank of Hawaii
Honolulu, Hawaii
-6-
STATE DIRECTOR
WEST VIRGINIA
Thoms H. Vanderford
Acting State Director
WISCONSIN
Harold F. Dickens
WYOMING
A* E* Wilde
ADDRESS
I4.O5 Terminal Building
8 Capitpl Street
Charleston 1, West Virginia
phones 3-7677
7012 Plankinton Bldg*
l6l West Wisconsin Avenue
Milwaukee 3$ Wisconsin
PHONEi Broadway 2-2632
301 Federal Office Building
21st & Carey Avenue
Cheyenne 9 Wyoming
PHONEs 8-8931
Ext* 62
-5-
STATE DIRECTOR
•ADDRESS
PENNSYLVANIA
Thomas Hughes
Suite 500
Land Title Building
Broad & Chestnut Streets
Philadelphia 10, Pennsylvania
PHONE j Locust lj.-0li.00
RHODE ISLAND
Joseph Lombardo
305 Post Office Annex Building
Providence
Rhode Island
Phones Gaspee 1-097U
SOUTH CAROLINA
W. Brooks Stuckey
Federal Land Bank Building
IÍ4.OI Hampton Street
Columbia 1, South Carolina
PHONEs 2-6637
SOUTH DAKOTA
305 Federal Building
12th & Phillip Avenue
Sioux Falls, South Dakota
PHONEs ,2-3751
Charles S. Winner
Acting State Director
TENNESSEE
James M. Rountree
Suite 262, The Maxwell House
207 Fourth Avenue North
Nashville 35 Tennessee
PHONEs 5-7661
TEXAS
Tolbert E* Crabb
mil Commerce Street, Rm0l8lU
Dallas 2, Texas
Phones: Riverside U581
UTAH
508 Federal Building
350 South Main Street
Salt Lake City 1, Utah
Phones 14-2552 - Ext. 2I4O
Merchants National Bank Bldg®
l66 College Street
Burlington, Vermont
PHONEs Burlington U-UU63
Clem S. Schramm
VERMONT
Leslie Wo Parker
Acting State Director
VIRGINIA
Chapman Ho Edwards
720 E Grace Street
Richmond 19, Virginia
PHONEs 7-67U8
WASHINGTON
William C. H. Lewis
603 Federal Office Bldg«
909 First Avenue
Seattle I4, Washington
PHONEs Seneca 3100 Ext*255
(Ship bulk material to Rm*602)
-4-
STATE DIRECTOR
NEVADA
Earl T. Ross
NEW HAMPSHIRE
Loren A. Littlefield
ADDRESS
.......
213 Professional Building
l£0 No Center Street
Reno,, Nevada
Phones 2-2390
Rm® 231
Federal Building
Manchesterj New Hampshire
PHONEs 3-3213
NEW JERSEY
Raymond A* Glennon
972 Broad Street (Rm®22l)
Newark 2, New Jersey
PHONEs: Market 3-6170
NEW MEXICO
Edwin G, Hobbs
k th & Gold Streets
NEW YORK .
Philip M. Light
NORTH CAROLINA
A. Allison James
NORTH DAKOTA
Harold G. Tdheeler
OHIO
Merrill L. Predmore
OKLAHOMA
Sidney C. Bray
OREGON
George W. Mimnaugh
306 Post Office Building
Albuquerquep New Mexico
Phone si 2-6381
2nd Floor
2^3 Broadway
New York 1 3 New York
PHONEs Rector 2-8000
20h Sutton Bldg®
103 So Greene St®
P„ 0® Box G-2
Greensboro9 North Carolina
PHQNEs 3-3U82 or 3-3U83
Rm® 12 Zappas Building
108J First Street East
Jamestown^ North Dakota
PHONEs 21*1
37 East Gay Street
Columbus l3j Ohio
PHONEs Main b !9 k or U195
U26 Oklahoma Natural Building
3rd & Harvey Streets
Oklahoma City 2<> Oklahoma
PHONEs 7-3601 - Ext® 139
14.06 U*S®National Bank Bldg.
309 S® W. Sixth Street
Portland U, Oregon
PHONEs Atwater 6661
-3-
STATE DEEHECTOR
ADDRESS
LOUISIANA
Joseph J. Knecht
Rm0 7lU Masonic Temple Bldg.
333 St. Charles Street
New Orleans 12, Louisiana
PHONE& Canal 3.U81 - Ext. 162 or 163
MAINE
Harvey Mo Fickett
309 Court House Annex
76 Pearl Street
Portland 3? Maine
Phones £-0861
MARTLAND
Richard H. Dixon, Jr.
1235> Calvert Building
St. Paul & Fayette Sts.
Baltimore 2, Maryland
PHONEs Plaza 6300
MASSACHUSETTS
Francis E. Burke
600 Post Office Square Building
79 Milk Street
Boston 9, Massachusetts
PHONE? Liberty 2-H06£
MICHIGAN
Delmar V. Cote*
1702 United Artists Bldg.
l£U Bagley Street
Detroit 26, Michigan
PHONES Woodward 2-8208
MINNESOTA
Darrell D. Bandy
61;£ Northwestern Bank Bldg.
6th Street & Marquette Ave.
Minneapolis 2, Minnesota
PHONEs Bridgeport 8763
MISSISSIPPI
Newell N. McAlpin
£26 Post Office Building
P. Oo Box 7U7
Jackson £, Mississippi
•PHONE? 3“i?U93 or 3-£U9U
MISSOURI
Earl H. Shackelford
Commerce Building
330 East High Street
Jefferson City, Missouri
PHONEs 6-8323
MONTANA
Arthur Nelson
28, Union Bank Bldg.
Cor. of Main & Edwards Sts.
Helena. Montana
PHONE? 19£8
NEBRASKA
Leland R. Hall
636 Kilpatrick Bldg.
l£th & Farnam Streets
Omaha 2, Nebraska
PHONE? Jackson 7900 - Ext.695
STATE DIHECTOR
ADDRESS
FLORIDA
Hhlph Lo Markham
Sendf eheeUb, Spe/. Deliveries, bonds
tel/gramq^ and milk to/
30/ Tamj^f Steej Builcrfng, Rm.2lUi.
Tapipa 2/ Florida
/
Sfend alft, othejr mail »tos
Po OoBox 3109
Tampa 1, Florida
PHONEs 2-3657 - Ext* 8
GEORGIA
Joseph Go Woodruff
319 Western Union Building
I4.8 Marietta Street, N.W.
Atlanta 3$ Georgia
PHONEs Lamar 8621
HAWAII
Laurence Mo Glney
(Territorial Director)
Maloney Building
l50? Kapiolani Blvd*
Honolulu, Territory of Hawaii
PHONEs 979325
IDAHO
Harold W„ Ellsworth
632 Idaho First Natl* Bank Bldg*
208 North 10th Street
Boise, Idaho
Phones 61}.98
ILLINOIS
Arnold Jo Rauen
300 Bankers Building
105 West Adams Street
Chicago 3i> Illinois
PHONEs State 2-29UO
INDIANA
3rd Floor, Old Trails Bldg*
309 Wo Washington Street
Indianapolis h$ Indiana
PHONEs Market 1581 - Ext, 266
Herbert A. Beuermann
Acting State Director
IOWA
Roger Fo War in
KANSAS
Lorin E. Sibley
Acting Siate Director
KENTUCKY
John Uo Courtney
301 Old Federal Building
5th & Court Avenues
Des Moines 8, Iowa
Phones 3-U1U6
208 Federal Building
Fifth & Kansas Avenue
Topeka, Kansas
Phones 2-7251 or 2-7252
6U3 Federal Building
Sixth & Broadway
Louisville. 1, Kentucky
PHONEs Jackson 1361 - Ext. 2U1
Uo So SAVINGS BONDS DIVISION
STATE HEADQUARTERS OFFICES
—
_____
STATE DIRECTOR
ADDRESS
ALABAMA
Young Jo Boozer
2027 Comer Building
2026 Second Avenue, North
Birmingham 3 S Alabama
PHONEs 53-3^21 - Exto 331 or 332
ARIZONA
Oren Ro Frasier
213' New Post Office Building
Central Avenue at Fillmore
Phoenix, Arizona
PHONEs L-2921
ARKANSAS
Pat Caviness
20Ù Old Post Office Building
312 West Second Street
Little Hock, Arkansas
Phonet 2-U3Ó1 - Exto L50
CALIFORNIA (Northern)
Harold Ro Stone
Ririo òli, Pacific Building
621 Market Street
San Francisco 3$ California
PHONE? Garfield 1-8236
CALIFORNIA (Southern)
Joseph Bo Messick
709 Wo Mo Garland Building
117 West Ninth Street
Los Angeles Ip* California
PHONEs Prospect L711 - Ext0301
COLORADO
Dewey M» Smith
719 Equitable Building
730 - 17th Street
Denver 2, Colorado
.
PHONEs Keystone L'l5l - Exto 590-3.7f
CONNECTICUT
Kenneth M» Crane
1+03 Federal Building
135 High Street
Hartford 1«, Connecticut
PHONEs 7-3281 ~ Exto 298
DELAWARE
Alexander Do Cobb
DISTRICT OF COLUMBIA
Hugh Lynch
6/V / < z e , / f ' T ' * -
Room 9 3 901 West Eighth Street
Wilmington 6, Delaware
PHONEs U-7709
Room 2015 - Temporary V Building
1)|0Q Pennsylvania Ave., N»Wo
Washington 25, D. Co
. „
PHONE? Executive 61*00 - Ext. 3
c
_
If m.
Series J and K bonds will pay approximately 1-lA percent if held for one
year, l-l/2 percent if held for 2 years, 2-l/8 percent if held for 5 years,
and so on.
The combined annual purchase limit for Series J and K bonds
has been doubled to $200,000, as compared with $100,000 for Series P and G
"bonds.
To save administrative expense the $100 denomination that was
available in the Series G bond has been dropped, but all of the Series F
denominations will be continued.
Further details regarding the new savings bonds are attached.
- 3 -
This bond will be available beginning on June 1*
redeemable at par.
It will be issued and
Interest will be paid by check semiannually on a
graduated scale of rates which has been put as close as possible to the E
bond scale.
It will be issued only to individuals; will have the same
9 year, 8 month term as E bonds; and will have a similar annual purchase
limit of $20,000 maturity value.
Unlike E bonds, however, it must be held
6 months, rather than two months, before it can be redeemed and it will be
redeemable only on one month*s notice; it will be issued and redeemable only
at Federal Reserve Banks and branches and at the Treasury; and it will be
offered with a minimum denomination of $500.
Administratively, it is too
costly to pay interest checks semiannually on bonds in denominations of less
than $500.
Because the Series H bond and the E bond are sold exclusively
to individuals, and because they so closely resemble each other in interest
return, the Treasury will report combined sales of Series E and Series H bonds
in the same way that Series F and Series G sales have been reported together.
3«
Series F and G bonds.
The Treasury is also making significant changes and improvements in
the F and G savings bond picture.
These two particular series are being
withdrawn effective May 1, and two new series of savings bonds to be known
as Series J and Series K are being substituted for them.
Series J will be
a revised Series F bond, and Series K will be a revised Series G bond.
B»
new series will differ from the old series primarily in their higher
interest rate schedules.
They will pay 2-3/k percent if held 12 years to
maturity, and will pay much higher intermediate yields than F and G bonds.
2
In addition to these changes in the terms of E "bonds, the Treasury has
doubled the annual limit on E bond purchases from the $10,000 maturity value
now in effect to $20,000 maturity value.
New stocks of bonds with the new intermediate redemption values and the
new maturity will not physically be available on May 1.
The existing stock
of E bonds will be sold throughout the period prior to the availability of
new bond stock.
Every E bond sold after May 1 will by regulation, however,
/obtain the revised terms and conditions.
As soon as new stock is available,
any purchaser who wishes will be entitled to exchange his old bond (if purchased on or after May i ^ f o r a new one; but if he does not make the exchange,
he will still obtain the benefits of the revised scale, and paying agents will
be furnished new redemption schedules applying to the bonds issued on or after
May 1, 1952.
The new'’TU Idlest rate oehodulo does11not aupl,y IU bblUQ-t? uUt'S'taadlng fcg
t K p errod,,W ,,^o.CKeir ' o r i j ^ ^ l KXQ&\AxrltY . ¿However7^>ecause there is no interest
return on t h e ^ f s e n t Series E bonds i ^ i i ^ e y have^be^nheld one year, the
maturity on thes^C^ST"increase^tfharply after the bonds
outstanding fo^^sliort period.^j^cial attention is
fact that
E bonds ffow outstanding which were purchasedupj^*xo January
original terms a^ck^onditions, wl^.^'iiinterest in exce^j^f*3 percent compounded semiannually if thefare held from now Co maturity??
2.
New current income bond.
The Treasury is also offering an entirely new current income savings
bond to be designated Series H which will have interest paid by check
annually instead of having the interest accrue.
This bond will be a com
panion to the discount E bond and will be promoted along with the E bond.
c q t
j)/?
n -
70T
in SaWBSgi
aSonds
ement ^T^the Details of
ftC' /3
a. *
n*t«i—ab.*
e—r of w
changes
i*n*/.
Secretary aAapM*Amfcp«*r today
«*«•«* announced «
..w—0~.. •
/<
savings bonds to go into effect on May 1 — • the eleventh anniversary of
the original offering of Series 33, F, and G bonds.
Briefly* the changes are as follows:
1 # Series 33 bonds.
$he first t*^”g that has been done with respect to 38bonds issued
on and after May 1« 1952 4ae9fc Improve the Intermediate redemption schedule
to give a higher return in the earlier years. Interest will start at the
end of 6 months instead of at the end of one year as formerly. She rate
accrued at the end of 6 months will he 1 .0 7 percent; at the end of one year,
1 .5 9 percent; at the end of 2 years, 2 .1 0 percent; at the end of 3
2 .2 5 percent; at the end of 5 years, 2 .5 2 percent; and so on.
She over
all interest rate on It bonds has also been raised — from 2.9 percent to
3 percent compounded semiannually, the maximum permitted by the law.
The $18.75 issue price on a $25 bond has been retained — as has the
$h return for a $3 investment. The change in the over-all return has been
effected by shortening the length of the Series B bond from 10 years to
9 years, 8 months.
M*.
. ■
a
.
/
J' •
j.
vJ
' 1Vf. interest rate on the E boncTtaring the extension period after
maturity has also been raised for all bonds which have not yet matured,
so that the return will be 3 percent, confounded semiannually, (taring the
additional 10 years of an X bond's life under the extension privilege.
The new rates on the extension will not «fly to bonds which have matured
prior to May 1# 1952.
★
TREASURY
DEPARTMENT
Info rm ation S e r v i c e
WASHINGTON, D .C .
Release 12 0*Clock Noon EDT
Tuesday, April 29» 195?2
Secretary Snyder today announced a number of changes in United States
savings bonds to go into effect on May 1^— the eleventh anniversary of
the original offering of Series E, F, and G bonds*
Briefly, the changes are as follows:
1* Series E bonds*
The first thing that has been done with respect to E bonds issued on
and after May 1, 195?2 has been to improve the intermediate redemption
schedule to give a higher return in the earlier years. Interest will start
at the end of 6 months instead of at the end of one year as formerly* The
rate accrued at the end of 6 months will be 1*07 percent; at the end of
one year, 1*59 percent; at the end of 2 years, 2*10 percent; at the end of
3 years, 2*25 percentj at the end of 5? years, 2*5>2 percent; and so on*
The over-all interest rate on E bonds has also been raised — from 2*9
percent to 3 percent compounded semiannually, the maximum permitted by the
law* The $18»75> issue price on a f>25> bond has been retained «- as has the
fl return for a $3 investment* The change in the over-all return has been
effected by shortening the length of the Series E bond from 10 years to
9 years, 8 months* The new interest rate schedule does not apply to
bonds outstanding for the period up to their original maturity*
The interest rate on the E bond during the extension period after
maturity has also been raised for all bonds which have not yet matured,
so that the return will be 3 percent, compounded semiannually, during the
additional 10 years of an E bond*s life under the extension privilege.
The new rates on the extension will not apply to bonds which have matured
Prior to May 1, 19^2.
In addition to these changes in the terms of E bonds, the Treasury
has doubled the annual limit on E bond purchases from the $10,000 maturity
value now in effect to ^20,000 maturity value*
New stocks of bonds with the new intermediate redemption values and
we new maturity will not physically be available on May 1. * The existing
stock of E bonds will be sold throughout the period prior to the availability
°f new bond stock. Every E bond sold after May 1 will by regulation, however,
-
2
-
if Lj
obtain the revised terms and conditions. As soon as new stock is available,
any purchaser who wishes will be entitled to exchange his old bond (if
purchased on or after May* 1, 1952) for a new one; but if he does not make
the exchange, he will still obtain the benefits of the revised scale, and
paying agents will be furnished new redemption schedules applying to the
bonds issued on or after May 1, 1952®
2.
New current income bond.
The Treasury is also offering an entirely new current income savings
bond to be designated Series H which will have interest paid by check semi
annually instead of having the interest accrue. This bond will be a com
panion to the discount E bond and will be promoted along with the E bond.
This bond will be available beginning on June 1. It will be issued and
redeemable at par. Interest will be paid by check semi-annually on a
graduated scale of rates which has been put as close as possible to the E
bond scale. It will be issued only to individuals! will have the same
9 year, 8 month term as E bonds; and will have a similar annual purchase
limit of S20,000 maturity value. Unlike E bonds, however, it must be held
6 months, rather than two months, before it can be redeemed and it will be
redeemable only on one month*s notice; it will be issued and redeemable only
at Federal Reserve Banks and branches and at the Treasury; and it will be
offered with a minimum denomination of $500 , Administratively, it is too
costly to pay interest checks semi-annually on bonds in denominations of less
than ?>500. Because the Series H bond and the E bond are sold exclusively v''\
to individuals, and because they so closely resemble each other in interest ]
return, the Treasury will report combined sales of Series E and Series H
bonds in the same way that Series F and Series G sales have been reported
/
together,
3* Series F and G bonds.
The Treasury is also making significant changes and improvements in
the F and G savings bond picture. These two particular series are being
withdrawn effective May 1, and two new series of savings bonds to be known
as Series J and Series K are being substituted for them. Series J will be
a revised Series F bond, and Series K will be a revised Series G bond. The
new series will differ from the old series primarily in their higher
interest rate schedules. They will pay 2—3/U percent if held 12 years to
maturity, and will pay much higher intermediate yields than F and G bonds.
Series J and K bonds will pay approximately 1-l/U percent if held for one
year, 1-1/2 percent if held for 2 years, 2-1/8 percent if held for 5 years,
and so on. The combined annual purchase limit for Series J and K bonds
has been doubled to ^200,000, as compared with ^100,000 for Series F and G
bonds, To save administrative expense the $100 denomination that was
available in the Series G bond has been dropped, but all of the Series F
denominations will be continued.
Further details regarding the new savings bonds are attached.
Attachments
oOo
Revised Series E Bond
Summary of Tenns and Conditions
(1) Date of announcement — April 29, 1952.
(2) Effective date — The revised terms apply to all bonds sold on
or after May 1, 1952#
(3) Issue price — >75# of maturity (par) value.
(4)
Issue date — First day of month in which payment is received
by an authorized issuing agent.
(5) Maturity date — 9 years and 8 months from issue date.
(6 ) Interest — Accrues to par to provide an investment yield of
3 .00# compounded semi-annually if held to maturity; lesser
yields if redeemed at earlier dates. 1 /
(7) Redeemability prior to maturity at option of Treasury — None.
(8 ) Redeemability prior to maturity at option of holder — At any
time not less than 2 months from issue date without notice, at
stated redemption values, at any qualified bank or other paying
agent, any Federal Reserve Bank or branch, or at the United
States Treasury. 1/
(9) Negotiability — None.
(10) Eligibility as collateral for loans — None.
(11) Eligible subscribers — Natural persons only.
(12) Limits on subscriptions by eligible subscribers — Annual limit
on new purchases of $20,000 maturity value ($15,000 issue price),
including all Series E bonds already purchased since January 1,
1952.
(13) Denominations — $25, $50, $100, $200, $500, $1,000, and $10,000
(maturity value).
(14)
Bearer or registered — Registered form only; may be registered
in name of single owner (with or without beneficiary) or in
co-ownership form.
l/ For schedule of redemption values and investment yields see table
attach©d•
3?a
- 2M?.
(15) Extension privileges — If owner does not wish to cash his bond
at maturity he may (1 ) hold his bond for a period not to exceed
10 years more and have interest accrue at a rate of approximately
5.0$ compounded semi-annually regardless of when he may redeem
the bond (with a final maturity value of $154.68 per $100 bond),
or (2) exchange his bond at any Federal Reserve Bank or branch,
or at the United States Treasury for a Series K bond ($500 de
nomination minimum) and receive semi-annual interest checks to
give him a current income for up to 12 years thereafter at the
rate of 2*76$ compounded semi-annually, said bond to be redeemable
at par at any time, (after the first 6 months) on 1 calendar month*s
notice•
(16) Handling of subscriptions before new bonds are printed — Old stock
will be used until new bonds are available. In all cases the pur
chaser would be informed that the new terms and conditions will
apply. If he wishes, he may exchange any bond issued after May 1,
1952 on old stock for a new bond with the same dating when new
stock is available* although his rights would be in no way impaired
if he does not do so.
990
¿L v
Revised Series E Bond
Schedule of Redemption Values and Investment Yields
(Based on $1,000 Bond)
to: APPROXIMATE INVESTMENT YIELDS l/
*Redemption¡Addition
¡redemption
:
value : value at :
¡On current redempduring ¡beginning ;On issue price to: tion value from
each : of each :beginning of each¡beginning of each
period
] period
¡period to maturity
: period _ :
•
______
ISSUE PRICE..... ........ $ 750.00
ORIGINALMATURITY VALUE..... 1,000.00
Forperiod beginning:
At issue date••••••••••••••
750.00
l/2 year after issue date..
754.00
1 year after issue date..
762.00
1-1/2 years after issue date.
772.00
2 years after issue date.
782.00
2-1/2 years after issue date.
792.00
5 years after issue date.
802.00
5-1/2 years after issue date.
812.00
4 years after issue date.
822.00
4-1/2 years after issue date.
856.00
5 years after issue date.
850.00
5-1/2 years after issue date.
864.00
6
years after issue date.
878.00
6-1/2 years after issue date.
892.00
7 years after issue date.
906.00
7-1/g years after issue date.
920.00
8 'years after issue date.
956.00
8*1/2 years after issue date.
952.00
9 years after issue date.
968.00
;9-1/2 years after issue date.
984.00
9-2/5 years after issue date. 1,000.00
1/ Compounded semi-annually,
$ 4.00
8.00
10.00
10.00
10.00
10.00
10.00
10.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
16.00
16.00
16.00
16.00
16.00
1.07#
1.59
1.94
2.10
2.19
2.25
2.28
2.50
2.45
2.52
2.59
2.64
2.69
2.72
2.74
2.79
2.85
2.86
2.88
5.00
5.00#
5.10
5.16
5.19
5.25
5.28
5.54
5.41
5.49
5.50
5.51
5.54
5.58
5.64
5.74
5.89
4.01
4.26
4.94
9.92
-
Revised Extension of Series E Bonds
Summary of Terms and Conditions
(1) Date of announcement — April 29» 1952«
(2) Effective date — The revised extension terms will apply
equally to unmatured E bonds now outstanding (bonds dated
May 1942-April 1952) and to new E bonds sold on or after
May 1» 1952. 1/
(3) Extension privileges — If owner does not wish to cash his
bond at maturity he may (l) hold his bond for a period not
to exceed 10 years more and have interest accrue at a rate
of approximately 3»0% compounded semi-annually regardless
of when he may redeem the bond (with a final maturity value
of $134 *6# per $100 bond), or (2 ) exchange his bond at any
Federal Reserve Bank or branch, or at the United States
Treasury for a Series K bond ($500 denomination minimum)
and receive semi-annual interest checks to give him a
current income for up to 12 years thereafter at the rate
of 2 .76 $ compounded semi-annually, said bond to be re
deemable at par at any time, (after first 6 months) on
1 calendar month*s notice.
3/ For schedule of redemption values and investment yields see
table attached.
Revised Extension of Series E Bonds
Schedule of Redemption Values and Investment Yields
(Based on $1,000 Bond)
APPROXIMATE INVESTMENT YIELDsTZ
To beginning
of each period
:Addition
On issue
Redemption: to re
price
value
:demption
On face
for bonds
during :value at
value
sold
each
:beginning
during
period : of each TUfy™50n or
Beforeîafter extension
: period
^sMay 1,
1952 : 1952*
ISSUS PR ICE...**...............
ORIGINAL MATURITY VALUE
EXTENDED MATURITY VALUE
$ 750.00
1,000.00
1,346.80
for period beginning:
At original maturity date.••••••
1/2 year after maturity date...
1
year after maturity date...
1- 1/2 years after maturity date.•
2
years after maturity date..
2- 1/2 years after maturity date..
3
years after maturity date..
3- 1/2 years after maturity date..
4
years after maturity date..
4- 1/2 years after maturity date..
5
years after maturity date..
5- 1/2 years after maturity date..
°
years after maturity date..
6- 1/2 years after maturity date..
P
years after maturity date..
7- 1/2 years after maturity date.,
r
years after maturity date..
q 1/2 years after maturity date..
'
years after maturity date..
9-1/2 years after maturity date..
years after maturity date..
y Compounded semi-annually
On current
redemption
value from
beginning of
each period
to
extended
maturity
1,000.00
1,015.00
1 ,030.00
1,045.00
1,060.00
1,076.00
1,092.00
1,108.00
1,124.00
1,140.00
1,158.00
1,176.00
1,194.00
1,212.00
1,230.00
1,248.00
1,266.00
1,286.00
1,306.00
1,326.00
1,346.80
•••
$ 15.00
15.00
15.00
15.00
16.00
16.00
16.00
16.00
16.00
18.00
18.00
18.00
18.00
18.00
18.00
18.00
20.00
20.00
20.00
20.80
2.90$
2.90
2.90
2.91
2.90
2.91
2.91
2.91
2.91
2.91
2.92
2.92
2.93
2.93
2.93
2.93
2.93
2.94
2.94
2.94
2.95
3*00$
3.00
3.00
2.99
2.99
2.99
2.99
2.99
2.98
2.98
2.98
2.99
2.99
2.99
2.99
2.99
2.99
2.99
2.99
3.00
3.00
-
3.00$
2.98
2.96
2.93
2.95
2.96
2.95
2.94
2.93
2.96
2.97
2.98
2.98
2.98
2.98
2.97
2.98
2.99
2.99
3.00
3.00#
3.00
3.00
3.01
3.02
3.02
3.02
_ 3.03
3.04
3.05
3.04
3.04
3.03
3.04
3.05
3.07
3.12
3.10
3.10
3.14
Mi
New Series H Bond
Summary of Terms and Conditions
(1) Date of announcement — April 29, 1952«
(2) Effective date — This bond will be available beginning June 1, 1952
(3) Issue price — Par*
(4) Issue date — First day of month in which payment is received
by a Federal Reserve Bank or branch, or the United States
Treasury.
(5) Maturity date — 9 years and 8 months from issue date.
(6) Interest — Varying semi-annual interest checks to provide an
investment yield of approximately 3,00$ per annum if held to
maturity; lesser yields if redeemed at earlier dates. 1 /
(7) Redeemabilitv prior to maturity at option of Treasury — None.
(8) Redeemabilitv prior to maturity at option of holder — On first
day of any month after 6 months from issue date on 1 month*s
notice, at par, at any Federal Reserve Bank or branch, or at
the United States Treasury. 1/
(9) Negotiability — None.
(10) Eligibility as collateral for loans — None.
(11) Eligible subscribers — Natural persons only.
(12) Limits on subscriptions by eligible subscribers — Annual limit
on new purchases of $20,000 maturity value.
(13) Denominations <
— $500, $1,000, $5,000, and $10,000.
(14) Bearer or registered — Registered form only; may be registered
in the name of single owner (with or without beneficiary) or in
co-ownership form.
(15) Extension privileges — None.
(16) Handling of subscriptions before new bonds are printed — Interim
receipts will be used until new bonds are printed.
1 / For schedule of varying amounts of checks and investment yields see
table attached.
9QO
New Series H Bond
For period beginning:
At issue date.... ...............
1/2 year after issue date.......
1
year after issue date
1- 1/2 years after issue date...
2
years after issue date,«....
2- 1/2 years after issue date......
5
years after issue date.....
3- 1/2 years after issue date......
4
years after issue date.•••••
4- 1/2 years after issue date...
5
years after issue date......
5- 1/2 years after issue date......
6
years after issue date......
6- 1/2 years after issue date..••••
7
years after issue date•••.••
7- 1/2 years after issue date......
8
years after issue date••••..
8- 1/2 years after issue date...
9
years after issue date......
9- 1/2 years after issue date......
9"£/3 years after issue date.....
¿7 Bedemption value at all times » $1,000
y Compounded semi-annually•
$ 4.00
12.50
12.50
12.50
12.50
12.50
12.50
12.50
17.00
17.00
17.00
17.00
17.00
17.00
17.00
17.00
17.00
17.00
17.00
17.00
.8056
1.65
1.95
2.07
2.15
2.2 1
2.25
2.28
2.40
2.49
2.57
2.65
2.69
2.75
2.77
2.81
2.84
2.87
2.89
5.00
5.00*
5.15
5.18
5.22
5.27
5.54
5.41
5.49
5.58
5.60
5.65
5.66
5.69
5.74
5.81
5.91
4.07
4.56
5.10
10.57
-
New Series J Bond
Summary of Terms and Conditions
(1) Date of announcement — April 29» 1952*
(2) Effective date — May 1, 1952; sales of Series F bonds will
terminate as of April 30» 1952*
(3) Issue price — 72% of maturity (par) value*
(4) Issue date — First of month in which payment is received by
Federal Reserve Bank or branch or the United States Treasury*
(5) Maturity date — 12 years from issue date*
(6) Interest — Accrues to par to provide 2*76$ compounded semi
annually if held to maturity; lesser yields if redeemed at
earlier dates* 1/
(7) Rsdsemability prior to maturity at option of Treasury —— None*
(8) Rede^^bilityjprior to* maturity at option of holder — On first
day of any month after 6 months from issue date on 1 months
notice» at stated redemption values» at any Federal Reserve
Bank or branch» or at the United States Treasury*
(9) Negotiability — None*
(10) ETH inhility as collateral for loans — None*
(11) ~sn-ifHKift subscribers — All, except that banks which accept
demand deposits are excluded*
(12) Limits on subscriptions by eligible subscribers — Annual limit
of $200,000 issue price jointly with Series K bonds•
(13) Denominaticna — $25, $1QQ, $500, $1,000, $5,000, $10,000 and
$100,000 (maturity value).
(14) Bearer or registered — Registered form only; may be registered
in the name of single owner (with or without a beneficiary), or
in co-ownership form*
(15) Extension privileges — None*
(16) Handling of subscriptions before new bends are printed — Interim
receipts will be used until new bonds are printed*
3/ For schedule of redemption values and investment yields see table
attached*
New Series J Bond
Schedule of Redemption Values and Investment Yields
(Based on $1,000 Bond)
to: Approximate Investment Yields 1 /
Redemption{Addition
{redemption {,
value : value at :
{On current redempduring {beginning {On issue price to{ tion value from
beginning of each{beginning of each
each
of each :
period
period {
{period to maturity
{ period_i
Issue price...
$ 720*00
;Maturity v a lu e
1,000.00
)rperiod beginning at1j
Issue date
|year after issue date••••
1 year after issue date...•
l|years after issue date*.
Z years after issue date••
years after issue date**
5 years after issue date•*
3§years after issue date••
4 years after issue date••
4|years after issue date.*
5 years after issue date••
5|years after issue date••
6 years after issue date.•
years after issue date.•
7 years after issue date*.
7?years after issue date.•
8 years after issue date.•
years after issue date•.
9 years after issue date.•
9jryears after issue date.•
10 years after issue date•.
years after issue date..
^ years after issue date••
,^-tyears after issue date••
years after issue date•.
F Compounded semi-annually
720.00
724.00
729.00
735.00
742.00
750.00
759.00
768.00
778.00
789.00
800.00
812.00
824.00
837.00
850.00
864.00
878.00
892.00
906.00
921.00
936.00
952.00
968.00
984.00
1 ,000.00
14.00
5.00
6.00
7.00
8.00
9.00
9.00
10.00
11.00
11.00
12.00
12.00
13.00
13.00
14.00
14.00
14.00
14.00
15.00
15.00
16.00
16.00
16.00
16.00
1 .1 #
1.25
1.38
1.51
1.64
1.77
1.85
1.95
2.04
2.12
2.20
2.26
2.33
2.39
2.45
2.50
2.54
2.57
2.61
2.64
2.68
2.71
2.73
2.76
2.76$
2.83
2.89
2.95
3.01
5.05
3.09
3.13
3.16
3.18
3.21
3.23
3.25
3.26
3.28
3.28
3.28
3.29
3.32
3.32
3.33
3.31
3.28
3.25
«*•
New Series K Bond
Summary of Terms and Conditions
(1) Date of announcement •— April 29, 1952*
(2) Effective date — Hay 1, 1952; sales of Series G bonds will
terminate as of April 30, 1952.
(3) Issue price — Par«
(4) Issue date — First of month in which payment is received by
Federal Reserve Bank or branch, or the United States Treasury.
(5) Maturity date — 12 years from issue date#
(6 ) Interest —— Paid semi-annually at the rate of 2*76?» P®r annum,
redemption values cut back below par to provide lesser yields
if redeemed at earlier dates; 1 / but, redeemable at par in
event of death or if issued in exchange for a maturing Series E
bond#
(7 ) Redeemabilitv prior to maturity at option of Treasury — None•
(8 ) Redeemablety prior to maturity at option of holder — On first
day of any month after 6 months from issue date on 1 month’s
notice, at stated redemption values, at any Federal Reserve
Bank or branch, or at the United States Treasury# 1/
(9) Negotiability — None#
(10) nn-ifHVvmty as collateral for loans — None#
(11 ) THifrihift subscribers — All, except that banks which accept
demand deposits are excluded#
(12) Limits on subscriptions by eligible, subscribers — Annual limit
of $200,000 issue price jointly with Series J bonds#
(13) Denomination» — $500, $1,000, $5,000, $10,000, and $100,000.
(li,) Bearer or registered — Registered form only; may be registered
in the name of single owner (with or without a beneficiary) or
in co-ownership form#
(15) Extension privileges —*None#
(16) Han^ng of subscriptions before new bonds are printed — Interim
receipts will be used until new bonds are printed#
1/ For schedule of redemption values and investment yields see table
attached#
oop
V/o ^
New Series K Bond
Schedule of Redemption Values and Investment Yields
(Based on $1,000 Bond)
1Change in
Approximate Investment Yields 1/
Redemption redemption
* value
1On current redempvalue at
from
during beginning On issue price tos tion
beginning
of
eachibeginning
of
each
each
of each
period
tvnrLod ___ period^___ ineriod to maturity
Forperiod beginning at:
Issue date............ . $1,000.00
992.00 $—8.00
| year after issue date...
-7.00
985.00
I year after issue date....
-6.00
979.00
l| years after issue date....
—4.00
975.00
Z years after issue date....
-4.00
971.00
years after issue date••••
-2.00
969.00
5 years after issue date....
-2.00
967.00
3|years after issue date....
-1.00
966.00
4 years after issue date....
M
966.00
4§ years after issue date....
♦1.00
967.00
5 years after issue date...*
♦1.00
968.00
5§years after issue date....
♦1.00
969.00
6 years after issue date....
♦1.00
970.00
6§ years after issue date....
+2.00
972.00
7 years after issue date....
♦2.00
974.00
7§years after issue date....
+2.00
976.00
8 years after issue date....
♦2.00
978.00
8f years after issue date....
♦5.00
981.00
9 years after issue date....
♦5.00
984.00
9? years after issue date..••
+5.00
987.00
10 years after issue date....
+5.00
990.00
1(4 years after issue date....
+5.00
995.00
II years after issue date••••
♦5.00
996.00
H2 years after issue date....
♦4.00
12 years after issue date.... 1,000.00
Compounded semi-annually
—
1.16*
-1*26
1.57
1.52
1.62
1.75
1.84
1.94
2.05
2.15
2.21
2.27
2.55
2.59
2.44
2.49
2.55
2.57
2.61
2.65
2.68
2.70
2.75
2.76
2.76*
2.84
2.92
2.99
5.05
5.12
5.16
5.21
5.25
5.27
5.29
5.51
5.55
5.56
5.57
5.59
5.41
5.45
5.45
5.45
5.44
5.45
5.48
5.57
**
U, S. SAVINGS BONDS DIVISION
337
STATE HEADQUARTERS OFFICES
STATE DIRECTOR
ADDRESS
ALABAMA
Young J* Boozer
2027 Comer Building
2026 Second Avenue* North
Birmingham 3* Alabama
PHONE: 53-3^21 - Ext* 331 or 332
ARIZONA
Oren R* Frasier
21^ New Post Office Building
Central Avenue at Fillmore
Phoenix* Arizona
PHONE? u-2921
ARKANSAS
Pat Caviness
20U Old Post Office Building
312 West Second Street
Little Rock* Arkansas
PHONE: 2—U36l - Ext, l£0
CALIFORNIA (Northern)
Harold R» Stone
Rm* 611* Pacific Building
821 Market Street
San Francisco 3* California
PHONE: Garfield 1-8236
CALIFORNIA (Southern)
Joseph B. Messick
709 W 0 M* Garland Building
117 West Ninth Street
Los Angeles 15* California
PHONE: Prospect U711 - Ext* 301
COLORADO
Dewey M* Smith
719 Equitable Building
730 - 17th Street
Denver 2* Colorado
PHONE: Keystone lj;l51 - Ext* 596-597
CONNECTICUT
Kenneth M* Crane
1|03 Federal Building
135 High Street
Hartford 1* Connecticut
PHONE: 7-3281 - Ext* 298
DELAWARE
Alexander D. Cobb
Room 9* 901 West Eighth Street
Wilmington 6* Delaware
PHONE: U-7709
DISTRICT OF COLUMBIA
Hugh Lynch
Room 2015 - Temporary V Building
II4OO Pennsylvania Ave** N* W,
Washington 25* D* C*
PHONE: Executive 6I4OO - Ext. 5217
April 28, 1952
•5Q0
- 2 -
STATE DIRECTOR
ADDRESS
.FLORIDA
Ralph L# Markham
P. 0. Box 3109
Tampa 1* Florida
PHONE: 2-3657 - Ext, 8
GEORGIA
Joseph G, Woodruff
319 Western Union Building
[*8 Marietta Street, N, W,
Atlanta 39 Georgia
PHONE: Lamar 8621
HAWAII
Laurence M# Olney
(Territorial Director)
Maloney Building
1507 Kapiolani Blvd,
Honolulu, Territory of Hawaii
PHONE: 979325
IDAHO
Harold W. Ellsworth
632 Idaho First Natl, Bank Bldg#
208 North 10th Street
Boise, Idaho
PHONE: 61*98
ILLINOIS
Arnold J# Rauen
300 Bankers Building
105 West Adams Street
Chicago 3, Illinois
PHONE: State 2-291*0
INDIANA
Herbert A* Beuermann
Acting State Director
3rd Floor, Old Trails Bldg,
309 W, Washington Street
Indianapolis 1*, Indiana
PHONE: Market 1581 - Ext# 266
IOWA
301 Old Federal Building
5th & Court A ven u es
Des Moines 8, Iowa
PHONE: 3-1*11*6
Roger F# War in
KANSAS
Lorin E# Sibley
Acting State Director
208 Federal Building
Fifth & Kansas Avenue
Topeka, Kansas
PHONE: 2-7251 or 2-7252
KENTUCKY
John U, Courtney
61*3 Federal Building
Sixth & Broadway
Louisville 1, Kentucky
PHONE: Jackson 1361 - Ext, 2l*l
- 3 -
9 K?*/ vQ
W
STATE DIRECTOR
ADDRESS
LOUISIANA.
Joseph J* Knecht
Rm* 7lU Masonic Temple Bldg*
333 St* Charles Street
New Orleans 12, Louisiana
PHONE: Canal 3U81 » Ext* 162 or I63
MAINE
Harvey M* Fickett
309 Court House Annex
76 Pearl Street
Portland 3, Maine
PHONE: 5-0861
MARYLAND
Richard H« Dixon, Jr*
1235 Calvert Building
St0 Paul & Fayette Sts*
Baltimore 2, Maryland
PHONE: Plaza 6300
MASSACHUSETTS
Francis E* Burke
600 Post Office Square Building
79 Milk Street
Boston 99 Massachusetts
PHONE: Liberty 2-1*065
MICHIGAN
Delmar V« Cote*
1702 United Artists Bldg«
15)4 Bagley Street
Detroit 26, Michigan
PHONE: Woodward 2-8208
MINNESOTA
Darrell D* Bandy
6U5 Northwestern Bank Bldg©
6th Street & Marquette Ave*
Minneapolis 2, Minnesota
PHONE: Bridgeport 8763
MISSISSIPPI
Newell N* McAlpin
526 Post Office Building
P* 0© Box 7U7
Jackson 5, Mississippi
PHONE: 3-5^93 or 3~$h9h
MISSOURI
Earl H* Shackelford
Commerce Building
330 East High Street
Jefferson City, Missouri
PHONE: 6-8323
MONTANA
Arthur Nelson
28 Union Bank Bldg*
Cor* of Main & Edwards Sts*
Helena, Montana
PHONE: 1958
NEBRASKA.
Leland R* Hall
636 Kilpatrick Bldg«
15th & Farnam Streets
Omaha 2, Nebraska
PHONE: Jackson 7900 - Ext* 695
Q rifi
- h -
state d i r e c t o r
NEVADA
Earl T. Ross
NEW HAMPSHIRE
Loren A# Littlefield
M
jersey
Raymond A. Glennpn
NEW MEXICO
Edwin G# Hobbs
ADDRESS
213 Professional Building
1$0 N* Center Street
Reno, Nevada
PHONE: 2-2390
Rm« 231
Federal Building
Manchester, New Hampshire
PHONE: 3-5213
972 Broad Street (Rm« 221)
Newark 2, New Jersey
PHONE: Market 3-6170
306 Post Office Building
Uth & Gold Streets
Albuquerque, New Mexico
PHONE: 2-6381
NEW YORK
Philip M« Light
2nd Floor
253 Broadway
New York 7, New York
PHONE: Rector 2-8000
NORTH CAROLINA
A. Allison James
20h Sutton Bldg«
103 $« Greene St«
P« 0« Box G-2
Greensboro, North Carolina
PHONE: 3-3U82 or 3-3U83
NORTH DAKOTA
Harold G# Wheeler
Rm« 12 Zappas Building
108i First Street East
Jamestown, North Dakota
PHONE: 2 h l
OHIO
£7 East Gay Street
Columbus 15, Ohio
PHONE: Main bX9k or lp.95
Merrill L* Predmore
OKLAHOMA
Sidney C« Bray
U26 Oklahoma Natural Building
3rd & Harvey Streets
Oklahoma City 2, Oklahoma
PHONE: 7-5601 - Ext« 139
OREGON
George W* Mimnaugh
I4.O6 U* S* National Bank Bldg«
309 S« W* Sixth Street
Portland U, Oregon
PHONE: Atwater 6661
9 A1
v*îi
- 5
state d i r e c t o r
PENNSYLVANIA
Thomas Hughes
RHODE ISLAND
Joseph Lombardo
ADDRESS_____________________ ,____
Suite ^00
Land Title Building
Broad & Chestnut Streets
Philadelphia 10, Pennsylvania
PHONE: Locust k~QhOO
305 Post Office Annex Building
Providence 3, Rhode Island
PHONE: Gaspee 1-097U
SOUTH CAROLINA
W. Brooks Stuckey
Federal Land Bank Building
1U01 Hampton Street
Columbia 1, South Carolina
PHONE: 2-6637
SOUTH DAKOTA
Charles S. Winner
Acting State Director
305 Federal Building
12th & Phillip Avenue
Sioux Falls, South Dakota
PHONE: 2-3751
TENNESSEE
James M. Rountree
Suite 262, The Maxwell House
207 Fourth Avenue North
Nashville 3, Tennessee
PHONE: 5-7661
TEXAS
Tolbert E. Crabb
H 1)| Commerce Street, Rm» 1811*
Dallas 2, Texas
PHONE: River side 1*581
UTAH
Clem S. Schramm
VERMONT
Leslie ¥. Parker
Acting State Director
VIRGINIA
Chapman H« Edwards
WASHINGTON
William C» H. Lewis
508 Federal Building
350 South Main Street
Salt Lake City 1, Utah
PHONE: U-2552 - Ext. 2l*0
Merchants National Bank Bldg.
166 College Street
Burlington, Vermont
PHONE: Burlington U—UU63
720 E. Grace Street
Richmond 19, Virginia
PHONE: 7-67U8
603 Federal Office Bldg.
909 First Avenue
Seattle l*, Washington
PHONE: Seneca 3100 Ext. 255
(Ship bulk material to Rm. 602)
342
- 6 -
STATE DIRECTOR
ADDRESS
VEST VIRGINIA
l05> Terminal Building
8 Capitol Street
Charleston 1, West Virginia
PHONE: 3-7677
Thomas H. Vanderford
Acting State Director
7012 Plankinton Bldg.
l6l West Wisconsin Avenue
Milwaukee 3 * Wisconsin
PHONE : Broadway 2-2632
WISCONSIN
Harold F. Dickens
WYOMING
A* E. Wilde
'x
301 Federal Office Building
21st & Carey A,venue
Cheyenne, Wyoming
PHONE: 8-8931
Ext. 62
o
“tw
oa
Treasury Department
U* S« Savings Bonds Division
Washington Building
Washington 2£, D« C«
STATE ADVISORY CHAIRMEN
ALABAMA.
Ed Leigh McMillan, President
T. R. Miller Lumber Company
Brewton, Alabama
ARIZONA
Hugh C* Gruwell, President
First National Bank of Arizona
Phoenix, Arizona
ARKANSAS
¥. W, Campbell, President
National Bank of Eastern Arkansas
Forrest City, Arkansas
CALIFORNIA (Northern)
Wt W. Crocker
U. S. Savings Bonds
Division
Room 611, Pacific Building
821 Market Street
San Francisco, California
Co-Chairman
MerrieXcooley
D» S, Savings Bonds Division
Room 6ll, Pacific Building
821 Market Street
San Francisco, California
CALIFORNIA (Southern)
ft« H. Moulton
510 South Spring Street
tos Angeles 1 3 , California
COLORADO
P* K, A.lexander, Vice President
First National Bank of Denver
17th and Stout Streets
Denver 1 7 , Colorado
APril 28, 1952
CONNECTICUT
G» Harold Welch, Vice President
The New Haven Bank
New Haven, Connecticut
DELAWARE
Willard- Springer, Jr«, President
Industrial Trust Company
Wilmington 9 9 , Delaware
DISTRICT OF COLUMBIA
E. C* Baltz, President
Perpetual Building Association
Eleventh and E Streets, N. W*
Washington h , D. C.
FLORIDA
V# H«, Northcutt, President
The First National Bank of Tampa
Tampa, Florida
GEORGIA
Jackson P. Dick
Chairman of the Board
Atlanta Transit Company
Transit Building
Atlanta, Georgia
HAWAII
G* S* Waterhouse
Bishop National Bank of Hawaii
Honolulu, Hawaii
IDAHO
Charles C. Adams
Adams Auto Sales
Lewiston, Idaho
-
ILLINOIS
Roy Tuchbreiter, President
Continental Casualty and
Assurance Companies
310 South Michigan Avenue
Chicago li, Illinois
Vice Chairman
Norman B. Collins, President
National Security Bank of Chicago
Chicago, Illinois
INDIANA
Eugene C* Pulliam
Radio Station WIRE
Indianapolis, Indiana
IOWA
Gerard S. Nollen
Chairman of the Board
Bankers Life Company
Des Moines, Iowa
KANSAS
Evan Griffith
Chairman of the Board
Union National Bank
Manhattan, Kansas
KENTUCKY
Wilson W. Wyatt
Wyatt, Grafton & Grafton
Márion E, Taylor Building
Louisville, Kentucky
LOUISIANA
Harold Mischler, Vice President
National American Bank of New Orleans
New Orleans, Louisiana
MAINE
A* J. Cole, President
Coléis Express
76 Dutton Street
Bangor, Maine
2
-
OA A
\J KT i
MARYLAND
Colonel Roy Barton White, President
Baltimore and Ohio Railroad
Charles and Baltimore Streets
Baltimore, Maryland
MASSACHUSETTS
Corodon S* Puller, Vice President
Foxboro Company
Foxboro, Massachusetts
MICHIGAN
Frank Nu Isbey, President
Detroit Fruit Auction
Detroit, Michigan
MINNESOTA
John C. Cornelius
Executive Vice President
Batten, Barton, Durstine & Osborn
16!|0 Northwestern Bank Building
Minneapolis, Minnesota
MISSISSIPPI
Rex I* Brown, President
Mississippi Power & Light Company
Jackson, Mississippi
MISSOURI
Robert E* Lee Hill
Ue S. Savings Bonds Division
330 East High Street
Jefferson City, Missouri
MONTANA
A 9 T. Hibbard, President
Union Bank & Trust Company
Helena, Montana
NEBRASKA
Wade R. Martin, Executive Vice Pres#
Livestock National Bank
USli-O South 2l}-th Street
Omaha 7, Nebraska
NEVADA
JU e# Grant
Ford Agency
300 North £th Street
Las Vegas, Nevada
OREGON
E» Ci Sammons, President
United States National Bank
Broadway and 6th at Stark
Portland 8, Oregon
NEW HAMPSHIRE
Norwin S. Bean
Chairman of the Board
The Manchester National Bank
Manchester, New Hampshire
PENNSYLVANIA
Arthur C. Kaufm§nn
Executive Head
Gimbel Brothers, Inc,
Philadelphia 5, Pennsylvania
NEW JERSEY
'Eimer H, Bobst
c/o Wm* R, Warner Company
113 West 18th Street
New York 18, New York
RHODE ISLAND
Chester R, Martin, Assistant Director
Department of Social Welfare for
State of Rhode Island
!|0 Fountain Street
Providence 3, Rhode Island
NEW MEXICO
NEW YORK
lewis”'El. Pierson
Metropolitan Club
Fifth Avenue and 60th Street
New York 23, New York
NORTH CAROLINA
William!!• Neal
Senior Vice President
Wachovia Bank and Trust Company
Winston-Salem, North Carolina
NORTH DAKOTA
LeRoy A* Pease, Secretary
Greater North Dakota Association
Fargo, North Dakota
OHIO
l°ring Lo Gelbach, President
Central Nationa Bank of Cleveland
Cleveland, Ohio
OKLAHOMA
E. Bradshaw, President
National Bank of Tulsa
Boston Avenue and Third Street
iülsa 2, Oklahoma
SOUTH CAROLINA
Burnell Sloan, Executive Vice Pres*
The First National Bank of
South Carolina
Columbia, South Carolina
SOUTH DAKOTA
TENNESSEE
Vance J» Alexander, President
Union Planters National Bank
Memphis, Tennessee
TEXAS
Nathan Adams, Chairman
U« S« Savings Bonds Committee
for Texas
c/o First National Bank in Dallas
Dallas 1, Texas
UTAH
Charles L. Smith
Chairman of the Board
First Security Bank of Utah
79 South Main Street
Salt Lake City 3-, Utah
VERMONT
Levi P«, Smith, President
The Burlington Savings Bank
Burlington, Vermont
^A Q
OtD
- h
VIRGINIA
Colgate W, Darden, President
University of Virginia
Charlottesville, Virginia
WASHINGTON
Reno cTdlin, President
The Puget Sound National Bank
Tacoma, Washington
WEST VIRGINIA
Lewis C. Tierney, President
The Tierney Company
P0 0. Box 1153
Charleston, West Virginia
WISCONSIN
William Taylor, President
First Wisconsin National Bank
Milwaukee, Wisconsin
WYOMING
Fred W. Marble, President
Stock Growers National Bank
Cheyenne, Wyoming
0O0
TREASURY DEPARTMENT
Bureau of Internal Revenue
M E D I A T E RELEASE,
Monday3 April
, 1952
The time within which
on Internal Revenue Forms 1096 and 1099 as to patronage dividends,
rebates, or refunds allocated to patrons during the calendar year 1951
will be extended until June 15, 1952, Commissioner of Internal Revenue
John B. Dunlap announced today.
Previously, by publication in the Federal Register on February 26,
1952, the filing date for these returns had been tentatively set at
May 15, 1952.
The extension of this date until June 15, 1952 will be
fixed in the final regulations to be promulgated under section 3lh (e)
and (d) of the Revenue Act of 1951# '
TREASURY DEPARTMENT
Bureau of Internal Revenue
IMMEDIATE RELEASE,
Tu2 adDEi_ April 29 .¿„1952^
.
S-oCoO
The time within which cooperative ‘associations must
file information returns on Internal Revenue Forms IO90
and 1099 as to patronage dividends, rebates, or refunds
allocated to patrons during the calendàri? year 1951 yull
be extended until June 15* 1952, Commissioner of Interna,!
Revenue John B. Dunlap announced today.
Previously, by publication in the Federal Regisoer
on February 26, 1952, the filing date for these returns
had been tentatively sot at May 15, 1952. ^Tho extension
of this date until June 15, 1952 will be fixed^in the
final regulations to be promulgated under section 314
(c) and (d) of the Revenue Act of 1951»
0O0
- 3 -APT - H T T A
™ hhe
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 h2 and 117 (a) (l) 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.
Accord
ingly, 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. 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.
A -r T > T T A
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 accept
ance 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 reserva
tions, non-competitive tenders for 1200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids.
Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Re
serve Bank on
May 8 j ^19^>2
> in cash or other immediately availabl
May Q?
funds or in a like face amount of Treasury bills maturing
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
e
miM X X
arefimar
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, May 1, 1952
' 4aqc
The Secretary of the Treasury, by this public notice, invites tenders
for $1,300,000*000 , or thereabouts, of
91 -day Treasury bills, for
*5É5r—
..
cash and in exchange for Treasury bills maturing May 8, 1952
, in
the amount of $1,3Q2.17U.OOO , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
The bills
May 8, 1952 ________ , and will mature
m
August 7. 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
Daylight Saving
closing hour, two o ’clock p.m., EasternjAbrnriamric time, Monday, May 5, 1952
Tenders will not be received at the Treasury Department, Washington. . Each
tender must be for an even multiple of $1,000, and in the case of competi
tive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
TREASURY
DEPARTMENT
Information Service
release m o r n i n g n e w s p a p e r s ,
Thursday^ _May 1, 1952._____
WASHINGTON, D .C .
S- 3 0 3 7
The Secretary of the Treasury, by this public notice, invites
tenders for ■$!,300,000,000, or thereabouts, of 9 .
1 -day Treasury. oxlls;
for cash and in exchange for Treasury bills-maturing: May 0 , 1952* /i»
the amount of $1 ,3 0 2 ,1 7 ^ 0 0 0 , to be issued on -a discount basis .xmder
competitive and non-competitive bidding as hereinafter provided.
The bills' of this series will be dated May 8 , 1952, and will mature
iugust 7 , 19 52 , when the .face amount will be,payable without
interest! They will be issued in bearer form only, and in ;
denominations of $ 1 ,000 , $ 5 ,0 0 0 , $ 1 0 ,000 , :$ 1 0 0 ,000 , $5 0 0 ,0 0 0 , and
11,000,000 (maturity value) .
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p . m ., Eastern Daylight Saving
time, Monday, May 5, 1952, Tenders will not be received at uhe
Treasury Department, Washington. Each tender must oe for an even^
multiple of "$ 1 ,000 , and in the case of >competitive tenders the price
offered must he expressed on the basis of 1 0 0 , with not more than
three, decimals,. e . g., 99*925* Fractions may not he used. It^is —
urged that tenders be made on the printed forms and forwarded in tne
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted^to suomi o
tenders except for their own account. Tenders will.be received /
without deposit from incorporated banks and trust companies ano. from
responsible and “re cognized deal.ers 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 oank
°r trust company.
Immediately after the closing hour, tenders will be opened at uhe
Federal Reserve Banks and Branches, following which public announce
ment will be made by the Secretary of the Treasury of the amount ano.
price range of accepted bids , Those submitting tenders will be
aavised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
tenders, in whole or in part, and his action in any such respoct
shall be final. Subject to these reservations, non-competitive
tenders for $200,000 or less without stated price from any one
idder will he accented in full at the average price ( m three
2
decimals^i of accepted competitive bids * Settlement .for accepted
tenders in accordance with the bids must be made or completed at
the Federal Reserve Bank on May 8, 2 3 5 2 *
in cash or °ther
immediately available funds or in a like face amount of Treasury
bills maturing May 8, 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
sain from the sale or other disposition of the bills, shall not
&
' and" loss
-—
*
*--- •
*-'uo sale -or other
have
any exemption, •.as such,
from
th
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 xcise 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
b i l l s a r ° originally sola by the United States-shall be considered
to be i n t o r e s t P Under Sections 42 and 117 (a) (l) of the Interna
Revenue Code, as amended by Section 115 of the Revenue Act of m
t which bills issued hereunder are sold
the amount of discount
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of and such bills arc excluded from
consideration as capital ______
assets _ Accordingly, the owner of Treasury
bills (oth r 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 uponthe
sale or redemption at matur:’ty during the taxable year for which
return is made, as ordinary gain or loss
Treasury Department
Circular
Ho. 4l8, as amended, a n d this
li
J-X
scribe
the
terms
of
the
Treasury bills a n d govern tn
notice
pr<
of
their
issue.
Copies
of
the circular may be obtains
conditions
from an: Federal Reserve Bank or Branch.
UlUvs
O
v-/
i i v
0 O0
.
I
--------
7
4 .■ U p
- 45 -
And finally,
Chairman Hall,
1
have the p r i vilege and honor of
p r e s e n t i n g to you,
as the
r e p r é s e n t â t ive of the public-spirited
c i t i z e n s of Akron,
|fi |Igip'
flag -- won
-, ¡¡I !
in the campaign which
you so a b Iy neaded.
over
may
this Treasury
As
it flies
this busy and prod u c t iv e city,
it be a reminder to all
of the
great things which can be
accompIi shed when free men act
together for the common good*
44
the campaign c e r t a i n ly performed a
s i g n i f i c a n t public service.
The second
is for Vance C. Hall
the Summit County bond chairman who
headed the Flag City drive.
And now four for some members
of the Women's D i v i s i o n
of the Flag
City C o m m i t t ee whose work was
outstanding
in every way --
Mrs.
William G. Kearney
Mrs.
W i l l i a m D. PI ant
Mrs.
W i lIi am M. M e t t I e r
Mrs.
George P. B o s o mw o r t h
*
A Z
*r o
foundation
**
of the s t a b i l i ty of
our national
economy.
For the
important parts they
V -* ■;
played
•- i| t)
„■' s
■
|
in the Akron Flag City
campaign,
it is now my pleasure and
p r i v i l e ge to p r e s e n t six citations,
issued by the Treasury
in
r e c o g n i t i o n of o u t s t a n d i n g volunteer
s e r v i c e to c o m m u n i t y and nation.
The first citation
Kiwanis Club,
..
.... I.,;;*
which
-
is for the
in s p o n s o r i n g
■
for the F and G bonds.
The modernized defense bond
I have out Ii ned to
you, and which goes into effect
y, is one to which we have given
considerable time and thought
Before making our t inai decisions
C;
through literally hundreds
n
& ?tions which had come to us
u f QiidP
w c w
from individual bondholders, fro m
the volunteers who have been seI
these bonds, arid from our various
wnef
ü^r
Series K.
Series J will be a revised
K will
Series f bona,
nii#¡pip
G bond*
m
b
Th© n ©w s©ri 0$
differ from the old series primarily
in their interest rate scheda
i 1I pay 2-3/4 percent if
to maturity
the Ir
much hig
ano 11 Ii
yields than the f and G
annua I
se
Series J and K bonds has
^ Oil
i,
as
Ii m 11 on
1 fv jfcpft !
V *•
%Jf■1W
feel
& :fti
tne
ill 1 ino s reaoy mar
Í' t r i e r
et
i n v e s t o r s and p a r t i c u l a r l y among aider
dece''
e -Ï*: ;£ -s J»
»»r
V# *##•
n vestment
inc
iMÇ •
Treasury
C
3S &
ni
a I
w
Donas
bona
also
made
in
picture
bonos will no
issued.
-
U €fs
ings
tou&y
c
has
In
11 u t in g
r*\
:
;L-i
their
place
t
ser
Ci ippr*
c
&
les
>erî es
o Î
J
anc
and
It will
be r e d e e m a b l e only on
one m o n t h ’s notice;
it »ill
be
Issued
and r e d e e m a b l e only at Federal. Reserve
Bbhks and b r a n c h e s and the Treasury;
and it will be o f f e r e d with t minlmuw
d e n o m i n a t i o n of $500.
These current
income bonds art not b e in g
issued in
smaller d e n o m i n a t i o n s b e c a u s e we have
found that, from an administrative
standpoint,
it is too c o s t l y to nay
interest checKS semi-annua 11y
on bonds of
lower, denominations.
a p p r o x i m a t e iy 3 percent,
s e m i -annually,
compounded
r e g a r d l e s s of when
the holder redeems his bond during
this exten d e d period.
This
is not ail*
however,
that
we are oo ing in the savings bond
f ield,
if; are a d d i n g a new current
income s av i n g s bond to be designated
S e r i e s H. which will
be a companion
to the | bond and w h i c h will
be
p r o m o t e d along with the E bond.
bond will
Thf&
be a v a i l a b le b e g i n n i ng on
be entitled to exch a n g e his
old bond for a new one, but
if he
does not nsa k e the exchange,
he
will
still
obtain the benefits
of the r e v i s e d
interest rates and
the shorter matur i t y provision.
Another
important c h a n g e has
conditions.
»
- 30 -
par
V
V
V
First,
all
£ bonds sold on
and after today will
interest,
earn
3
percent
c o m p o u n d e d semi-annually,
if held to maturity.
The new E
bond will be simiIsr to the old E
bond in that you will get baCK $4
for every $3 you invest, but you
will
not h:ave to hold the new
bond quite so
1o ng
earn
that r e t u r n .
will
reach
in order to
The new E b
its or igi n a 1
to investors in sma II denominot ion
bonus, out likewise to the largerinvestors.
Substantial new
savings from all income classes
and from all occupational groups
must be made avai table to the
Government if we are to attain our
go a I*
Here art the principal changes
in the savings bond program and
what they mean to the investing
a substantial
have
portion
to bt financed by
b o r r o w i n g from inoi vi
other
than the commercial
b a n k i n g system.
E x t e n s i ve
a n a l y s e s w h i c h have been made of
the money and
as well
investment markets,
as consuI tations which the
Treasury has had with various
investor and financial
groups,
s e e m to 5noicate that n o n b a n k
institutions,
cor p o r a ti o n s ,
pension trusts, etc.,
will
b e f o r e the end of the present
c a l e n d a r year.
course»
The budg e t
is» of
subject to r e v i s i o n as the
year progresses,
and p a r t i c u l a r l y
as we see how the e x p e n d i tu r e
p r o g r a m shapes up.'
final
W h a t e v e r the
f i g u r e s turn out to be,
however,
the a m o u n t s which we shall
have to borrow wi11 be substantial*
Sound debt m a n a g e m e n t dictates
that as much as possi b l e of this
d e f i c i t b o r r o w i n g be f r o m sources
Know, has just a n n o u n c e d some
important revisions
bond
issues.
M o s t of these changes
are effective today.
therefore*
in the savings
1 should
IUe,
to tax« a m o m e n t to
discuss what these r e v i s i o n s will
mean.
f
On the basis of the est imates
in the P r e s i d e n t ’s budget,
as much
as $10 billion of the d e f e n s e program
may have to be financed by
ional
b o r rowing from the public
•• 24
your wortiers in taKing advantage of
the plan.
I stated earlier that today
a m e m o r a b l e one
history.
is
in savings bond
It is m e m o r a b l e not
only for past accompl is h m e n t s ,
it is equally m e m o r a b l e for
its
s ign if ’
r cance to the future development
of this great American Savings
Program.
The Treasury,
as you undoubtedly
alt iS|i
In p e r c e n t a g e of ?/-•*r< ' * £
sales
in i9 5 i c o m p a r e d to
bond
1350.
A H r o n ' s gain was just u n d e r 24
percent —
r W'-¡Ss«.'«?
and I repeat,
ail !o ther citi es J o t
popu iati on or
s.
larger
this topped
100
in
M u c h of the cred i t for this
goes to the
industry-wi de campaign
in the rubber
industry and the
e f f e c t i v e p r o motion given the
payroll
savings plan by your rubber
companies,
and to the good sense of
the r e c e n t growth
in E bond
sav ings.
| d o n ’t know w h e t h e r this
fact has been p u b lished here,
but I am informed by the Savings
Bonds D i v i s i o n that among the
106 cities of the Nation with
100,000 p o p u l a t io n or over,
Akron ranked
"Number One"
21
4 - 1 / 2 percent compa r e d to the
first quarter of
last year,
and cash - i n s before m aturity
were down 29 percent.
The expansion of payroll
savings,
through
industry-wide
d r i v e s such as you have made
here
in Akron,
is r e s p o n s ib l e
more than anyt h i n g else for
20
there are an e s t i m a t e d 7 will ion
participants
in the plan.
Largely as a result of
this
increased part ic ipat ion
payroll
savings,
in
bond sales are
again on the upswing.
In the
first quarter of this year
dollar saies of E bonds were up
story.
Tne ce'aseiess c a m p a i g ni n g
for bond s a v i n g has p e rsuaded the
Amer i c a n people of the benefits of
thrift in general ana of regular
saving
in all forms,
A m e r i c a ns today have
w o r t h over
$200
indlviaual
lieu id savings
billion,
and
a p p r o x i m a t e l y t h r e e - p u a r t e r s of
was a c c u m u l a t e d
in the
it
II years
since the Treasury expanded »
a i r e c t - by - m a i I
"baby b o n d ” operation
into a v o l unteer p r o g r a m carried on
i Ii I
- 15 -
sa les p r o m o t i on -- and this
is still
true nearly s e v e n years after
war's
W
The cash v a l u e of savings bonds
o u t s t a n d i n g today,
b i I I ion.
is nearly $58
the end of the
the p r o p o r t io n of t h e national
in savings
17 percent
if,V it is 22 percent.
Clearly,
we have been able to spre a d the
o w n e r s h i p of the debt considerably
wider during the postwar years.
and p a r t leu !ar iy from
business.
advert
Contr ibut ions of
a d v e rt i s i n g s p o nsored through the
A d v e r t i si n g Council
a m o u n t e d during
the war financing period to more than
$400 million,
b e s i d e s a vast amount
of p u b l i c i ty and p r o m o t i o n that could
not be m e a s u r e d
in dollars.
No other
article ever o f f e r e d for sale has
had a n y t h i n g near
that amount of
as the country
was hastily arming
for defense against the Axis
aggressors.
later,
Less than five years
when the period of war
f i n a n c i ng ended with the V i c tory
Loan,
the American p e o p l e had
total
of $48-1/2 billion
a
invested
in Series E, F , and G savings
bonds.
Some 6 mi I I iori v o l u n t e e r s
had h e lped sell
this t r e m endous
voIume.
The v o l u n t e e r s had powerful
a s s i s t a n c e from A m e r i c a n business
these bonds had been sold to the
American people.
selling small
The p u r p o s e of
d e n o m i n at i o n
G o v e r n m e n t b o n d s then as
to e n c ourage
well
individual
later was
thrift,
as
as to w i d e n the o w n e r s h i p of
the national
debt and thus oromote
wider public
interest
p r o b l e m s of Federal
in the
finance.
The Series E savings bonds— '
supe r s e de d the last of the ’’baby
b o n d ” issues
I I years ago today,
This
is a m e m o r a b l e day f o r
the D ef e n s e bond p r o g r a m
C
o t t fi
it fsiarKS the
in many
I 1th anniversary
j
&H- 1S
K y I1f the first United
SE
ft
-***n' M
ctc*■
5**fvi4 1
3 K
ww
> t\n
w**
ser ies p | P id*
y
194 1,
hen the T -p 0»o sury first placed
s bonds on ss l e in Perch 1935,
ere the so-c aided "b a b y bond"
; vb icn WQt* ® sold t h r ough
l | ftiB i 1 a n o m¡8ga t Ine advertising
ly
194 i some ■ | 4
billion of
much to our N a t i o n ’s t r e m endous
p r o d u c t i v e power,
should also
be assu m i n g
its full
share
in
the equally
important tasK of
Keeping our economy healthy and
strong through e n c o u r a g e m e n t of
P QQ
}
of our Nation
. 9 is through the
syst e m a ti c p u r c h a s e and holding of
United States D e f e n s e bonds.
It
for all
is an
inspiring thing
America that s city
line
A n r o n , whose c r e a t i v e genius and
SKilled m a n p o w e r have added so
of our country.
celled uoon to build powerful
defenses for our Nation.
And once
again, A«ron has Its answer.
In attaining Flag City ranK in
the Defense bond program, the
citizens of AKron have shown their
determination to add their
individual might as well as their
collective productive might to the
great cause in which we are engaged
They Know that the future of
America lies not alone in the
cut
off from us,
Akron had
its
answer -- synthetic r u b b e r .
not only helped spell
World War
11, but
It
victory
in
its a d a p tation
to endless varieties of consumer
goods
in the postwar years has
added greatly to the wealth of
good
living
in Ameri ca.
Once again our
liberties and
our f r e e d o m s are being t h r e a t e ne d
Once agaifl our people are being
5
one great people.
As t r a n s p o r t â t ion was
revo Iu t i onized by rubber,
m o dern warfare.
so was
The c o n t r i b u t i o n
w h i c h A k r o n ' s rubber prod u c t s made
to our w i n n i n g of two great world
wars
in this c e n t u r y can hardly be
measured.
men,
In m e c h a n i z e d warfare,
equipment and ammunition roll
on rubber.
In t h e dark days of
early World War
natural
II when the w o r l d ’s
rubber s u p p l y was
largely
rubber capital.
Few m a t e r i a ls have had a
greater effe c t on t h e e x p a n s i on of
our N a tion than rubber.
It helped
put A m e r i c a on the h i g h w a y s and
the air.
in
The r e v o I u t i o n a r y changes
it made possible
in t r a n s p o r t â t ion
f ac i l i t i e s made n e i g h b o r s of
adjacent communities, e l i m i n a t e d
d i s t a n c e barriers
commerce,
in trade and
and w e l d e d our 48 states
together more than ever before as
the first city
in Ohio to win this
coveted award.
Akron has
long been noted as
a city of great a c h i e v e m e n t s -p a r t i c u la r l y
industrial
its sci e n t i fi c and
achievements
in the field
of rubber that have sparked,
m a j o r degree,
to a
the s t r e n g t h and the
power of 20th C e n t u r y America.
indeed
is the b i rt h p l a c e of the
American
today
rubber
industry.
is the w o r l d ' s
Akron
industrial
Here
estabIi shments.
To the Kiwanis Club which
sponsored this campaign,
to your
F lag City Chairman and the dozens
of men and women v o l u n t e e r s who
assisted
him,
to all
of you who
helped bring this drive to a
successful
conclusion,
I extend
my thanks and my a d m i r a t i o n for a
job well
done.
Akron can
indeed
be proud of the fact that she
is
t
P P;
a oart
43 C L A
lïïr «ffiA1V*
of
har r
■
>r k
in canvassîng
bus îness
i§j
The following address-by Secretary Snyder before
the Flag City luncheon of the Akron Kiwanis Club/
at the Mayflower Hotel, Akron, Ohio, is scheduled
for delivery at 12:30 p.iru EDT Thursday, May 1,
1952, and_is for release at that time.
0
900
O \J w
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder before
the Flag City luncheon of the Akron Kiwanis Club
at the Mayflower Hotel, Akron, Ohio, is scheduled
for delivery at 12:30 p*m*, EDT, Thursday, May lj
I 9 & 3 and is for release at that time»
I
am honored to have a part in these ceremonies today which bring new
distinction to this fine American city and its enterprising citizens*
For a city the size of Akron to become a Flag City is no small accom
plishment* It took a lot of systematic organization and planning, city-.wide
cooperation, and endless hours of hard work in canvassing hundreds of your
business establishments*
To the Kiwanis Club which sponsored this campaign, to your Flag City
Chairman and the dozens of men and women volunteers who assisted him, to all
of you who helped bring this drive to a successful conclusion, I extend ray
thanks and ray admiration for a job well done* Akron can indeed be proud of
the fact that she is the first city in Ohio to win this coveted award*
Akron has long been noted as a city of great achievements — particularly
its scientific and industrial achievements in the field of rubber that have
sparked, to a major degree, the strength and the power of 20th Century America*
Here indeed is the birthplace of the American rubber industry* Akron today
is the world*s industrial rubber capital.
Few materials have had a greater effect on the expansion of our Nation
than rubber* It helped put America on the highways and in the air. The
revolutionary changes it made possible in transportation facilities made
neighbors of adjacent communities, eliminated distance barriers in trade and
commerce, and welded our i*8 states together more than ever before as one
great people*
As transportation was revolutionized by rubber, so was modern warfare*
The contribution which Akron*s rubber products made to our winning of two
great world wars in this century can hardly be measured* In mechanized
warfare, men, equipment and ammunition roll on rubber, In the dark days of
o
^ar II when the world* s natural rubber supply was largely cut
off from us, Akron had its answer — snythetic rubber. It not only helped
spell victory in World War II, but its adaptation to endless varieties of
consumer goods in the postwar years has added greatly to the wealth of good
■Living in America*
S-3038
- 2 -
Once again our liberties and our freedoms are being threatened. Once
again our people are being called upon to build powerful defenses for
our Nation. And once again, Akron has its answer.
In attaining Flag City rank in the Defense bond program, the citizens
of Akron have shown their determination to add their individual might as
well as their collective productive might to the great cause in which we
are engaged. They know that the future of America lies not alone in the
number of planes, tanks and guns which we are able to assemble on this
side of the Iron Curtain. They know it lies also in the measures we take
here at home to preserve the financial and economic stability of our
country.
You are demonstrating in a very practical way to other communities
throughout America that one of the very best ways that individuals can
help assure the financial soundness of our Nation is through the system
atic purchase and holding of United States Defense bonds.
It is an inspiring thing for all America that a city like Akron,
whose creative genius and skilled manpower have added so much to our
Nationfs tremendous productive power, should also be assuming its full
share in the equally important task of keeping our economy healthy and
strong through encouragement of thrift.
This is a memorable day for the Defense bond program in many ways*
It marks the 11th anniversary of the sale of the first United States
series E, F and G bonds on May 1, I9I4.I®
When the Treasury first placed savings bonds on sale in March 193£,
they were the so-called 11baby bond” issues which were sold through
limited mail and magazine advertising. By early 191*1 some $1* billion of
these bonds had been sold to the American people. The purpose of selling
small denomination Government bonds then as later was to encourage
individual thrift, as well as to widen the ownership of the national debt
and thus promote wider public interest in the problems of Federal finance.
The Series E savings bonds superseded the last of the "baby bond”
issues 11 years ago today, as the country was hastily arming for defense
against the Axis aggressors. Less than five years later, when the period
of war financing ended with the Victory Loan, the American people had a
total of $1*8 1/2 billion invested in Series E, F, and G savings bonds.
Some 6 million volunteers had helped sell this tremendous volume.
The volunteers had powerful assistance from American business, and
particularity- from the advertising business© Contributions of advertising
sponsored through the Advertising Council amounted during the war financing
period to more than $1*00 million, besides a vast amount of publicity and
promotion that could not be measured in dollars. No other article ever
offered for sale has had anything near that amount of sales promotion —
ana this is still true nearly seven years after the war*s end.
~ 3The cash value of savings bonds outstanding today, is nearly 158
billion. At the end of the war, the proportion of the national debt in
savings bonds was 17 percent. Today it is 22 percent* Clearly, we
have been able to spread the ownership of the debt considerably wider
during the postwar years*
As for one of the primary purposes of the savings bond program —
encouraging the people in habits of thrift — I think these figures speak
for themselves. E bond holdings at the end of the war financing period
were 130.8 billion. Today they are almost $35 billion — a gain of 13
percent in cash value in six years and two months*
And that does not tell the whole story. The ceaseless campaigning
for bond saving has persuaded the American people of the benefits of
thrift in general and of regular saving in all-forms. Individual
Americans today have liquid savings worth over $200 billion, and approxi
mately three-quarters of it was accumulated in the 11 years since the
Treasury expanded a direct-by-mail “baby bond” operation into a volunteer
program carried on by volunteers like yourselves.
As you may know, the chief source of E bond sales has been the pay
roll savings plan. The Treasury adopted it in 19hX and by Pearl Harbor
700,000 payroll savers were using it*
After Pearl Harbor, volunteer promotion expanded payroll savings
manyfold, aided by the patriotic fervor of wartime and the scarcity of
many kinds of consumer goods. After the war, the number of payroll
savers markedly decreased. But since the fall of 1950, when the Treasury
called for all the volunteer help that could be mustered to expand pay
roll savings, as part of our stepped-up national defense program, many
thousands of establishments have installed or reinstated the payroll
savings plan, and some 2 million payroll savers have been added to the
rolls. Today there are an estimated 7 million participants in the plan*
Largely as a result of this increased participation in payroll
savings, bond sales are again on the upswing. In the first quarter of
this year dollar sales of E bonds were up U-l/2 percent compared to the
first quarter of last year, and cash-ins before maturity were down 29
percent*
•The expansion of payroll savings, through industry-wide drives such
as you have made here in Akron, is responsible more than anything else for
the recent growth in E bond savings*
I don*t know whether this fact has been published here, but I am
informed by the Savings Bonds Division that among the 106 cities of the
Nation with 100,000 population or over, Akron ranked “Number One” in per
centage of gain in E bond sales in 1951 compared to 1950* Akron*s gain
was just under 2k percent — and I repeat, this topped all other cities
•m-
)J
mm
4T2
of 100,000 population or larger in the United States* Much of the credit
for this goes to the industry-wide campaign in the rubber industry and the
effective promotion given the payroll savings plan by your rubber compa
nies, and to the good sense of your workers in taking advantage of the
plan«
I stated earlier that today is a memorable one in savings bond
history« It is memorable not only for past accomplishments, it is equally
memorable for its significance to the future development of this great
American Savings Program«
The Treasury, as you undoubtedly know, has just announced some
inportant revisions in the savings bond issues* Most of these changes
are effective today* I should like, therefore, to take a moment to dis
cuss what these revisions will mean *
On the basis of the estimates in the Presidentas 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*
Sound debt management dictates that as much as possible of this
deficit borrowing be from sources other than the commercial banking system«
Extensive analyses which have been made of the money and investment markets,
as well as consultations which the Treasury has had with various investor
and financial groups, seem to indicate that nonbank institutions, corpo
rations, pension trusts, etc«, will be able to absorb some of the new
borrowing* Nevertheless, a substantial portion will have to be financed
by borrowing from individuals*
To induce substantial new investment by individuals in United
States savings bonds, their terms and conditions have been made more
attractive than ever before* They will not only be more attractive to
investors in small denomination bonds, but likewise to the larger investors*
Substantial new savings from all income classes and from all occupational
groups must be made available to the Government if we are to attain our
goal*
Here are the principal changes in the savings bond program and what
t-ney mean to the investing public*
.
First, all E bonds sold on and after today will earn 3 percent
interest,^compounded semi-annually, if held to maturity. The new E bond
U1 be similar to the old E bond in that you will get back $ k for every
in ^ invest* but 3 ™ w il1 not bave to hold the new E bond quite so long
in order to earn that return* The new E bond will reach its original
tunty in 9 years and 8 months from issue date*
- 5 -
Purchasers
same redemption
interest on the
one year — and
holding than is
403
of the new E bond will, of course, continue to have the
privileges as were attached to the old bond* However,
new E bond will begin earlier — at 6 months instead of
will accrue at a higher rate in the earlier years of
now the case*
The Treasury has also raised the limit on new purchases of Series E
bonds by an individual in any one calendar year — from $10,000 maturity
value to $20,000 maturity value*
These are the changes we have made in the terms of the E bond for
the period up to the original maturity date* Obviously it will take a
little time to print and distribute new stocks of bonds with the new
terms and conditions* Until such time as the new bond stock is available,
we shall continue to use the existing stock of E bonds* However that
need not concern the purchaser* Every E bond sold on and after this date
will by regulation obtain the revised terms and conditions* As soon as
new stock is available, any purchaser who wishes will be entitled to
exchange his old bond for a new one, but if he does not make the exchange,
he will still obtain the benefits of the revised interest rates and the
shorter maturity provision*
Another important change has been made in the rate of interest which
the Government will pay on extended E bonds. All E bonds reaching their
original maturity on or after May 1, 1952, if not cashed by the holder,
will continue to draw interest for a period not to exceed 10 years at a
rate of approximately 3 percent, compounded semi-annually, regardless
of when the holder redeems his bond during this extended period©
This is not all, however, that we are doing in the savings bond
field* We are adding a new current income savings bond, to be designated
Series H, which will be a companion to the E bond and which will be
promoted along with the E bond* This bond will be available beginning
on June 1. It will be issued and redeemable at par* Interest will be
paid by check semi-annually on a graduated scale of rates which has been
put as close as possible to the new E bond scale* It will be issued
only to individualsj will have the same 9 year, 8 month maturity as Ev
bonds; and will have a similar annual purchase limit of $20,000 maturity
value* Unlike E bonds, however, it must be held six months, rather than
two months, before it can be redeemed, and it will be redeemable only on
one month*s notice; it will be issued and redeemable only at Federal
Reserve Banks and branches and the Treasury; and it will be offered with
? thulium denomination of $500» These current income bonds are not being
issued in smaller denominations because we have found that, from an
administrative standpoint, it is too costly to pay interest checks semi-»
annually on bonds of lower denominations*
We feel the new Series H bond will find a ready market among larger
investors and particularly among older people who are dependent upon
current investment income*
~ 6 -
The Treasury has also made substantial changes in the Series F and
G savings bond picture# Effective today these bonds will no longer be
issued# In their place we are substituting two new series of savings
bonds to be known as Series J and Series K# Series J will be a revised
Series F bond, and Series K will be a revised Series G bond# The new
series differ from the old series primarily in their interest rate
schedules# They will pay 2-3/U percent if held their full twelve years
to maturity, and will pay much higher intermediate yields than the F
and G bonds# The combined annual purchase limit on the Series J and K
bonds has been raised to $200,000, as compared to $100,000 for the F
and G bonds*
The modernized defense bond program which I have outlined to you,
and which goes into effect today, is one to which we have given consider
able time and thought# Before making our final decisions, we sifted
through literally hundreds of suggestions which had come to us from
individual bondholders, from the volunteers who haye been selling these
bonds, and from our various state and national advisory committees#
I am confident that the improved terms of the various issues will
appeal strongly to the American people#
With the enthusiastic approval and support of the citizens of this
country, such as has been so remarkably evidenced here in Akron, thrift,
as symbolized by United States Savings Bonds, will continue to be a major
element of the foundation of the stability of our national economy#
For the important parts they played in the Akron Flag City campaign,
it is now my pleasure and privilege to present six citations, issued by
the Treasury in recognition of outstanding volunteer service to community
and nation#
The first citation is for the Kiwanis Club, which in sponsoring the
campaign certainly performed a significant public service#
The second is for Vance C# Hall, the Summit County bond chairman who
headed the Flag City drive#
And now four for some members of the Women*s Division of the Flag
City Committee whose work was outstanding in every way — Mrs# William G#
Kearney, Mrs# William D# Plant, Mrs# William M# Mettler, Mrs# George P#
Bosomworth#
And finally, Chairman Hall, I have the privilege and honor of
presenting to you, as the representative of the public-spirited citizens
of Akron, this Treasury flag — won in the campaign which you so ably
headed# As it flies over this busy and productive city, may it be a
reminder to all of the great things which can be accomplished when free
men act together for the common good#
oOo
taken action, to provide for their settlement«
With the virtual completion of its initial job of investigating
and recommending disposition of relief olaims, the duties of the Counoil
have been undergoing a change and hereafter will involve continuing
effort to arrive at settlements in oases docketed by the Tax Court,
as well as assistance in the preparation of the Government’s defense
in such oases*
In a letter to Senator Walter F. George,
Chairman of the
Joint Committee on Internal Revenue Taxation, Commissioner Dunlap de
scribed the changes as ”a significant organisational adjustment made to
conform the Council to the change in character of its future work,”
In announcing the change in the Council’s organisation. Commissioner
Dunlap paid tribute to the Council’s former chairman, Henry J# Merry,
who, he said, had done ”an outstandingly able job” in the important post
he had held since 194?.
Mr, Merry, a native of Pontiao, Michigan, joined the Council at the
time of its formation in 1946, prior to which he wag associated with the
Hew York City law firm of Milbank, Tweed and Hope, He has served as
Chairman of the Council since 1947, Mr. Merry has joined the Mutual
Security Agency and will be stationed in Paris,
TREASURY DEPARTMENT
BUREAU OF INTERNAL REVENUE
Immediate Release
' '1
'L v*
Friday» May 2» 1962.
Changes in the organisation of the Excess Profits Tax Council
of the Bureau of Internal Revenue were announced today by Commissioner
John tbk Dunlap, The work of the Counoil» ^he Commissioner said» has
progressed to such a stage that its future operations can be handled
with greater effectiveness if the Counoil is tied in more elosely with
the Bureau*s Appellate Staff. Accordingly» the exeoutive direotion of
the Counoil has been vested in Clifford If* Stowe» Head of the Appellate
Staff. Robert W. Andrews has been appointed to the new position of
Coordinator of the Counoil.
In the position of Coordinator, Mr. Andrews will exercise for the
Commissioner final authority in the Bureau on all issues arising out of
Council determinations in respect to relief claims under section 722
of the Internal Revenue Code.
Since July^ 1951» Mr. Andrews has been a member of the Council*«
Executive Committee. That Committee has now been abolished as a
simplification measure, together with the offices of chairman and
vioe-ohairaan. Incumbent* of the Committee and of the office of
vice-chairman
continue to serve as full-time members of the Council,
and all council members will continue their participation in the
establishment of interpretative policies.
Sinoe its inception the Council has received nearly 11,000 claims for
relief under the excess profits tax law enacted in World War II# Oorpo
tlons filing these claims sought nearly #7 billion in tax relief. Thsr«
remain only slightly over 200 of these oases on which the Council has »
-
2-
.
yet taken action to provide for their settlement*
With the virtual completion of its initial job of investigating
and recommending disposition of relief claims, the duties of the Council
have been undergoing a change and hereafter will involve continuing
effort to arrive at settlements in oases docketed by the Tax Court,
as well as assistance in the preparation of the Governments defense
in such cases
In a^JLetter to Senator Walter F. George, n.7 *1*11-; Chairman of the
Joint Committee on Internal Revenue Taxation, Commissioner Dunlap de
scribed the changes as **a significant organizational adjustment made to
conform the Comicil to the change in character of its future work*”
In announcing the change in the Councils organization, Commissioner
Dunlap paid tribute to the Councils former chairman, Henry J. Merry,
who, he said, had done Man outstandingly able job” in the important post
he had held since 1947#
Mr* Merry, a native of Pontiac, Michigan, joined the Council at the
time of its formation in 1946, prior to which he was associated with the
New York City law firm of Milbank, Tweed and Hope* He has served as
Chairman of the Council since 1947* Mr* Merry has joined the Mutual
Security Agency and will be stationed in Paris*
0-O-0
TREASURY DEPARTMENT
^B^feSAU OF IN T E R N A L
REVENUE
^'t/'
//
Immediate Release
*
_
Friday, May 2, 1952..Changes in the organization of the Excess Profits Tax Council
of the Bureau of Internal Revenue were announced today by Commissioner
% •
John>9* Dunlap« The work of the Council, the Commissioner said,h a s
progressed to such a stage that its future operations can be handled
with greater effectiveness if the Council is tied in more closely with
the Bureau1s appellate Staff. Accordingly, the executive direction of
the Council has been vested in Clifford W. Stowe, Head of the Appellate
Staff. Robert W. Andrews has been appointed to the new position of
Coordinator of the Council.
In the position of Coordinator, Mr. Andrews will exercise for the
Commissioner final authority in the Bureau on all issues arising out of
Council determinations in respect to relief claims under seotion 722
of the Internal Revenue Code.
Since Julyj 1951, Mr. Andrews has been a member of the Council*s
Executive Committee. That Committee has now been abolished as a
simplification measure, ¿^gether with the offices of chairman and
Tioe-oM i M a» Incumbents of the Committee and of the offioe ox
Tice-ohairman continue to serve as full-time members of the Council,
and all oounoil members will oontinue their participation in the
establishment of interpretative policies.
,
¡or
Since its inception the Council has received nearly 11,000 claim
relief under the exoess profits tax law enaoted in World War II. Corpor
tions filing these claims sought nearly $7 billion in tax relief.
ot
remain only slightly over 200 of these cases on which the Council has no
TREASURY DEPARTMENT
BUREAU OP INTERNAL REVENUE
Washington
)IATE RELEASE
Y 3 May 2, 1952
S-S03Q
Changes in the organization of the Excess Profits Tax
Counc 1 of the Bureau of Internal Revenue were announced
today by Commissioner John B. Dunlap* The work of the Council
the Commissioner said, has progressed to such
stage that its
futur
Iterations can be handled with greater _ffectiveness
if a
Council is tied in more closely with the Bureau’s
Appo 1late Staff. .Accordingly, the executive di rection of the
Counc 11 has been vested in Clifford. ¥. Stowe, H ead of the
Appe 1late Staff. Robert ¥. Andrews has been ap pointed, to the
new p sition of Coordinator of the Council
In the position of Coordinator, Mr. Andrews will exercise
for the Commissioner final authority in the Bureau on all
issues arising out of Council determinations in respect to
relief claims under section 722 of the Internal Revenue Code.
Since July, 1951* Mr. Andrews has been a member of the
^i
ouri9”" ,s Executive Committee. That Committee has now been
abolished as a simplification measure, together with the office;
of chairman and vice-chairman of the Council. Incumbents of
the Committee and of the office of vice-chairman continue to
serve as full-time members of the Council, and all Council
members will continue their participation in thi e stab 1 i shment
of interpretative policies
Since its inception the Council has received nearly
for relief under the excess profits tax law
enacted in World War II. Corporations filing these claims
sought nearly $7 billion in tax relief. There remain only
slightly over 200 of these cases on which the Council has not
yet taken action to provide for their settlement.
11 ,000 ^claims
With the virtual completion of its initial job of
investigating and recommending disposition of relief claims,
the duties of the Council have been undergoing a change and/
hereafter will involve continuing effort to arrive at^settle
ments in cases docketed by the Tax Court, as well as assistance
m the preparation of the Government’s defense in such cases.
n
2
In a recent letter to Senator Walter F. George, Chairman
of the Joint Committee on Internal Revenue Taxation,
Commissioner Dunlap described the changes as "a significant
organizational adjustment made to conform the Council to the
change in character of its future work."
In announcing the change in the Council’s organization,
Commissioner Dunlap paid tribute to the Council’s former
chairman, Henry J. Merry, who, he said, had done "an out
standingly able job” in the important post he has held since
19^7.
Mr. Merry, a native of Pontiac, Michigan, joined the
Council at the time of its formation in 19?6, prior to which
he was associated with the New York City law firm of
Milbank, Tweed and H o p e . He has served as Chairman of the
Council since 19^7. Mr. Merry has joined the Mutual Security
Agency and will be stationed in Paris.
0O 0
y\
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TREASURY D EPA RTM EN T
WASHINGTON, D .C .
In fo rm a tio n S e r v i c e
IMMEDIATE RELEASE,
Wednesday, April 30* 1 9 5 2 -
S-3040
Secretary of the Treasury Snyder today announced an
additional step in the Treasury’s program to raise funds required
in financing the defense program from nonbank sources.
On
May 19, 1952, there will be offered for subscription for a
limited period additional amounts of the 2-3/4 percent Treasury
Bonds, Investment Series B-1975-80.
These bonds were originally
issued April 1, 1951* they are nontransferable, but may at the
owner's option be exchanged for 1 -1 / 2 percent five-year
marketable Treasury notes to be dated April 1 and October 1 of
each year during the life of the b o n d .
Subscriptions to the new 2-3/4 percent Treasury Bonds may
be paid for in full in cash, or not less than one-quarter of
the amount subscribed for may be paid for in cash and the
remainder by exchange, par for par, 01 bonds of any of the
four outstanding restricted Tr asury bonds with the longest
maturities. The issues eligible for exchange under this
offering are the 2 -1 / 2 percent bonds of 1 9 6 5 -7 0 , the 2 -1 / 2
percent bonds of 1 9 6 6 -7 1 , and the two issues of 2 -1 / 2 percent
bonds of June 1 5 and December 1 5 , 1 9 6 7 -7 2 . The two latter
issues are the issues which were exchangeable for the 2 -3 / 4
percent Treasury Bonds originally issued April 1, 1951, which
arc now outstanding in the amount of about $ 1 1 ,5 0 0 ,0 0 0 ,0 0 0 .
Payment for the new bonds may be made in full on June 4,
1952, or may be made in four equal installments on June 4,
August l,^0 ctober 1 , and December 1 , 1 9 5 2 , with provision for
acceleration of payments if desired by subscribers.
Commercial banks are excluded from this offering, except
to the extent that they turn in restricted bonds acquired prior
to December 31, 19^5, for the partial investment of their
savings accounts.
Further details with respect to this offering will be made
available somewhat in advance of the opening of the subscription
oooks on May 1 9 , 1 9 5 2 .
0O0
toge t h e r and «prying together for
I the c o m m o n g o o d . I St h§v® forged
a .great Nation.
S# Have r i s e n to
our p o s i t i o n of world power because
we were willing to give »ore-fthan
we e x p e c t e d ! i n return. § By doing
so, *e Have found material
enrichment
and the greater s a t i s f a c t i o n of
accomplishment
future.
our
So
In b u i l d i n g for the
long as we hold fast to
ideals, our N a tion and the
freedom- and justice under
law which
hand!el our ’debt « a n a g e m t n t j o p e r a t i
through four jshar lng'# of views and
exper lances.-''"You,
too* a r e - g b i n g
to come §it frith bett e r a n s w e r s to
your banning p r o b l e m s
same way,
and that
in. just the
Is b y l g e t t l n g
[together i n d l t p p l y i n g your Ijoint!
e x p e r i e n c e and u n d e r s t a n d i n g i i o t
so Iut ion I f
those problems*
The
power of America sis the power of
its people,
t h r o u g h o u t the
length
and b r e a d t h oflthls land, thinning
investors,
but a iso to e n c o u r a g e
g r o u o s to r e tain their c u r r e n t
holdings,
rte shei I also be alert
to p o s s i b l e c h a n g e s
situation,
in the economic
and be p r e p a r e d to try
to msKe baI arced use of all the
tools a v a ilable to us,
in addition
to debt m a n a g e m e n t and c r e d i t
policies,
to hold
d e v e l o p m e n t of
In checn the
inflationary or
d e f l a t i o n a r y forces.
■
A
In meeting the s i t u a t i o n s that
■/;
face us
.•
in the year ahead,
we are
going to be better p r e p a r e d to
Announcements w
in
m
due course
ty-pes of s e c u r i t ie s which the
G o v e r n m e n t wiIi
issue to m e e t
b o r r o w i ng reou ir e m e n t s .
its
But,
r e g a r d l e s s of how the complete
f i n a n c i n g program develops,
an
what s e c u r i t i e s the Treasury offers,
our o b j e c t i ve will
investor conf iaence
secur it ies.
be to maintain
in Government
11 is our responsibiIity
not only to promote the purchase of
new G o v e r n m e n t s e c u r i t i e s by nonbank
iC'N
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be held
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i 2?
p o s s i b l e from nonbanK sources.
H ere are some of the highlights
of the m o d e r n i z e d savings bond
program.
All
after May
1st of this year will earn
3 percent
interest, c o m p o u n d e d
sem i»annua M y ,
E bonds sold on and
if held to their new
matur i t y of 9 years and 8 months.
Interest on t h e s e bonds begins at
T r e a s u r y ’s policy d e c i s i o ns are
made.
Two of these a n n o u n c e m e n t s have
been made dur irig the past wee*«
first c o n c e r n e d S a v i n g s Bonds,
The
and the
other a n n o u n c ed the offe r i n g for a
limited period of additional
amounts
of 2-3/4 p e r c e n t Treasury Bonds,
originally
year.
issued
in April
of
last
These o f f e r i n g s are part' of
the T r e a s u r y ' s p r o g r a m to raise as
much of the r e q u i r e d funds as
that the Government i l l | be opera 11 rig
a | th
a. cash d e f i c i t instead of n
surplus.
The d e f i c i t , and the
p o s s i b i l i t y of a recurrence of
/
i n f l a t i o n a r y pressure, however, will
be smaller than previously
a nt i ci pat e d because of the military
" s t r e t c h - o u t " embodied ift the
decision to proceed somewhat more
sl owl y with the defense program than
was or i g i na l l y planned.
This wi l l
iiatct i t easier to maintain a. strong
prices,
as shown by the D e p a rtment
of Labor a l l - c o m m o d i t y wholesale price
index, levelled off in Febr u a r y 1351,
It nd
hive since declined on net
balance.
prices,
The
which c o n t i n u e d
that time,
before,
index of c onsumer
to rise after
a l t h o u g h more slowly than
began
to
level off
last
|1
December.
t
NevertheI ess,
lert against further
we must remain
inflationary
p r e s s u r es which may develop,
particularly
In view of the fact
p e r i 0 cl
pch
-
W V i
made
18
in the common
to me to augur well
-
interest seem
for the future
of democracy.
To assure the success of the
mutual
d e f e n s e program,
however,
we
p a r t i c u l a r l y must c o n t i n u e to keep
our own economy
strong and growing,
as a key barrier to C o m m u n i s t
aggression.
On the production side,
this means that we must both produce
the arms that are needed
and continue to
immediately
increase our
I
pc
*»
} {J
«*
1 have had the p r i v i l e g e of
being a s s o c i a t e d with some of the
steps we have ta»<en toward m o r e
effective
internatI one I
coop e r a ti o n .
Since
last September
Î have a t t e n d e d m e e t i n g s
H
in Ottawa
o m e , and L i sbon of the North
tiantic
Treaty Organ!zatI on* s
Council.
The Council
is comp
£¿81« *w*k
of the foreign ministers,
ministers,
defense
and finance m i n i s t e r s
of the North Atlantic c o u n t r i e s
short space since then,
the North
Atlantic c o m m u n i t y has grown
.steadily
in strength a n d unity,
and.has expanded
its scope to
include Greece and Turney.
If we
c o n t i n u e the v i g o r o u s s u s t a i n ed
effort we have begun to p r o v i d e
mutual
s e I f - p r o t e c t l o n , 'we can
foresee clearly
the time when our
c o m m o n m i l i t a r y defe n s e s will
be
strong enough to d e f e n d us against
O? K
mm
ena su h
Si
M? *
u
fore
m
a '6b
%
/\
\ Ji f ¥ i
tn our
*çc
and for aiI
ai roust
â if
%#*
ives against t
W
ister tactics ever employees oy
Ô ty
r e e u Q m .
Isi
f irm |y
being coropro-®! ■*£*^ d
O T
O
"* rea§ i
&
i
U I
I f l
Æm,
Wl
in j** jî> -«*£ .-a.
t*
;èÉMW«i
V W
iy sî< ice
a C i *
C. »»
•If ¡¡¡I jr*
¿S
f
%**
m .R a
t f r e e d oro ano
y#
fl%j
_
M
i&
J»-, I §f*.
I-,: ft tï *fi
- i W
O
1M M &
gp
-■i :f : f
• *‘ *
«hich *# cherish w p u tfl be destroyed.
US«
oefftocratie way of life would be
(iyr
■
crushed beneath'the yoke of tyranny.
Ae owe
all■'#1;
’*
■
It to ourselves,
, ' • * , /
A s ■ .\ r f l M m
'gentrations*
V ;' V S % ^ ‘m
to our future
’/:"■: ;Vy;V/f.;;:-':V''-;oa;--V':,;'y ; .
ah# to the past generation
#ho fought and died for our freedo«,
to'oppose this threat with all our
strength.
There have been other times when
our Nation has been faced by threats
to its peace and security.
W# have
engaged in costly wars in the hope
that by one supreme effort we coula
f
i jpi f* ili
i f fb# %#
t
sar i «y
s r
W* tI» i a n ¿s f
t or
d u
l I u sng
is
jimpregna b i e
defénses
Commun isi
-ta*
'«fl
I
4
ä
ä c û r l f û f*
IS
w1feÿ** V 0& t*
- - r*?
;5» »
*>
ancis rwQCKe
ôtMnyn
persona I I y » and as P r e s i d e n t of tr
mer ican Bankers Association
ti!M.
come to 'ía
.«%-*.
t
,;j f A
f it
the
i
st .nj ifrit.
trie if
jp *
v'U ;
O
occasions to
Ci w tW
ti ?i-j
A t
V i
a
importent aebt ¡«ana cernent proniems
decisions in the oebt man n
1 1 e !u
n ■%*
»ho Ië economy
u n i
esk
t?
e
î ^*n t
«Sïfito
ects on tu
/ïu
<
•'*1
S"•O/Vil#!
U ri u
e c is ions is obvious, ano t hav fe
een e/treme Iy fortunate m hav
s e c t o r
our financial
business
i ife.
i aw especta
grateful
for trie g e n e r o u s co
i nave recei v e d f r o m bankers
and
bank Irig p r o f e s s io n generally
a s s i s t a n c e has
invaluable
to me
a sour c e of real
it has also be
inspiration.
it Is a r@aI
here
plea s u r e to be
in fioanoke, at F r a n c i s Cocke's
invitation,
to p a r t i c i p a t e
in the
f e l l o w s h i p of this meeting.
Fotnoke
where the Blue Ridge and the
A l l e g h e n i e s join,
and this part of
the Old Domi n i o n arid its
n e i g h b o r i n g states,
with some of
provide America
its most
seenic grandeur,
impressive
and i a l w a y s
look
'
TREASURY DEPARTMENT
W a s h in g to n
The f o l l o w i n g a d d r e s s b y S e c r e t a r y S n y d e r b e f o r e
a d in n e r m e e t in g o f a g g B M g g n iiB in U fr a n k * » * b a n k in g
c o rre s p o n d e n ts
0
o f th e
Roanoke, V a . ,
F i r s t N a t io n a l E xch an ge Bank,
a t th e H o te l R oanoke i s
s c h e d u le d
f o r d e l i v e r y a t 8 p .m . EDT S a t u r d a y , M ay 3 , 1 9 5 2 ,
and i s
fo r r e le a s e
a t th a t tim e .
/
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder
before a dinner meeting of banking
correspondents of the First National
Exchange Bank, Roanoke, Va,, at the Hotel
Roanoke is scheduled for delivery at
8:00 p,m, BDT, Saturday, May 3, 1952, and
is for release at that time»
Some Financial Aspects of the Defense Program
It is a real pleasure to be here in Roanoke, at Francis Cockers
invitation, to participate in the fellowship of this meeting* Roanoke,
where the Blue Ridge and the Alleghenies join, and this part of the Old
Dominion and its neighboring states, provide America with some of its
most impressive scenic grandeur, and I always look forward with keen
anticipation to being with groups such as this, because you and thé
institutions you represent constitute the real fiber of community-service
banking in this country,
I am glad, too, to have this opportunity to repay a small part of
the debt of gratitude I owe to Francis Cocke and to all of you. Through
the years in my Treasury post, I have found that my job has been made
much easier because I have been able to draw upon the knowledge and
experience of men in every sector of our financial and business life, I
am especially grateful for the generous cooperation I have received from
bankers and the banking profession generally throughout the country.
Their assistance has not only been invaluable to me, it has also been a
source of real inspiration. Your representatives, and Francis Cocke
personally, and as President of the American Bankers Association, have
come to Washington on numerous occasions to give me the benefit of their
understanding and advice on important debt management problems*
Decisions in the debt management field have important effects on
the whole economy. The need for sound decisions is obvious, and I have
been extremely fortunate in having the willing assistance and advice of
leaders in every field. While the advice I have received from various
groups has differed at times, all of it has been extremely worthwhile in
giving me a solid framework within which to make necessary decisions,
without this fine cooperation from men closely in touch with the needs of
their own institutions and communities, and with the needs of the Nation
as a whole, it would be extremely difficult to make the proper debt
^nagement decisions.
But it is not only the help whtich has been at hand in arriving at
policy decisions that has made an invaluable contribution to our financial
policies. All of you here, every country banker and every city banker,
S-30liY
452
who in your own communities have helped to carry out these policy
decisions, have also played an important role® Your contributions in
promoting the savings bond pnogram and your cooperation with the
Voluntary Credit Restraint Program are notable examples of your service
in placing the national interest above what may be, at times, your own
immediate personal interests®
As leaders in the financial and business life of your communities,
you are the pivot around which much of the thought and activity of this
region revolves® Through your familiarity with the needs and prospects
of your local communities, you have it in your power, as few others have,
to contribute to the root-strength of our Nation*
I have full confidence
in your ability to assist this country in meeting the challenge which lies
ahead for America and the other democratic nations© For all these reasons,
I welcome this opportunity to talk over with you some of the grave problems
that confront us all at the present time.
Today, we and the other free peoples of the world are faced with a
grave threat to our liberties® The all-important task before us, and the
task which necessarily must dominate our national actions, is the need
for building impregnable defenses against the threat of Communist ag
gression® The Red attempt to crush Korea by the brutal use of military
power has made us all keenly aware of the consequences for the future of
America if the Communist menace is permitted to go unchecked. If we stood
by with folded arms and allowed Red imperialism to have free rein, all of
the material gains which have resulted from our free enterprise system
would be wiped out® Every freedom which we cherish would be destroyed®
Our democratic way of life would be crushed beneath the yoke of tyranny®
We owe it to ourselves, to our future generations, and to the past gener
ations who fought and died for our freedom, to oppose this threat with
all our strength®
There have been other times when our Nation has been faced by threats
to its peace and security® We have engaged in costly wars in the hope
that by one supreme effort we could end such threats once and for all®
Yet, we face graver threats now than ever before in our history, and we
must defend ourselves against the most sinister tactics ever employed by
the enemies of freedom. This requires that we continue firmly to resist
being compromised, at the expense of our real goal of peace with freedom
and justice throughout the world. For without freedom and justice, there
can be no lasting peace®
The Communist ’'waiting11 tactics with which we have to cope rely,
first, on the use of internal subversion to weaken the victim, followed by
the threat or open use of military force to complete the grab whenever the
Communists believe that the democracies have lost the will or lack the means
to take a stand.
Fighting such tactics is still something new to us, and the job ahead
promises to be long and arduous® Yet, we have already made notable
progress in building a world based upon the rules of law and justice in
- 3 which men can live in freedom and tranquility. Just over three years
ago, on April U, 19k9* twelve nations of Europe and North America, in
cluding our own Nation, met together to sign the North Atlantic Treaty
for the purpose of preserving peace and defending freedom. In the short
space since then, the North Atlantic community has grown steadily in
strength and unity, and has expanded its scope to include Greece and
Turkey. If we continue the vigorous sustained effort we have begun to
provide mutual self-protection, we can foresee clearly the time when our
common military defenses will be strong enough to defend us against any
attack*
I have had the privilege of being associated with some of the steps
we have taken toward more effective international cooperation. Since
last September, I have attended meetings in Ottawa, Rome, and Lisbon of
the North Atlantic Treaty Organization^ Council. The Council is composed
of the foreign ministers, defense ministers, and finance ministers of the
North Atlantic countries* Each of these countries has its own individual
problems of participation in defense, but these problems have not stood
in the way of progress. It has been inspiring to see among the ministers
at these Council meetings the high spirit of cooperation and of determi
nation to shoulder to the limit of their abilities their part of the
mutual defense burden. The sincere efforts and sacrifices they have
made in the common interest seem to me to augur well for the future of
democracy.
To assure the success of the mutual defense program, however, we
particularly must continue to keep our own economy strong and growing,
as a key barrier to Communist aggression. On the production side,
this means that we must both produce the arms that are needed immediately
and continue to increase our productive power. On the financial side, it
means that we must do all we can to prevent either inflationary or de
flationary forces from developing, and to continue to build our productive
capital.For some months we have had a period of general price stability
following the sharp increases in prices that occurred after the invasion
of Korea and the Chinese intervention there. Wholesale prices, as shown
by the Department of Labor all-commodity wholesale price index, levelled
off in February 195>1, and have since declined on net balance. The index
of consumer prices, which continued to rise after that time, although
more slowly than before, began to level off last December. Nevertheless,
we must remain alert against further inflationary pressures which may
develop, particularly in view of the fact that the Government will be
operating with a cash deficit instead of a surplus* The deficit, and the
possibility of a recurrence of inflationary pressure, however, will be
smaller than previously anticipated because of the military "stretch-out”
embodied in the decision to proceed somewhat more slowly with the defense
program than was originally planned. This will make it easier to maintain
a strong and healthy econoiry and to assure the maximum of military strength
over the long run.
- k I said the job will be an easier one, but I must hasten to add that
it will not be an easy one* Federal budget estimates are subject to
revision as this year progresses, but whatever the final figures turn out
to be, the Treasury will have to raise Substantial funds to meet the
deficit arising from the Nation’s military preparedness expenditures* The
Treasury has been making extensive analyses of the money and investment
markets and has been discussing our problem with representatives of the
Federal Reserve System and of leading investor and financial groups#
There has been general agreement among all these groups that as much as
possible of our borrowing requirements should be met from nonbank sources,
that is, from individuals, nonfinancial corporations, and institutional
investors such as life insurance companies and pension trust funds#
Despite this strong agreement as to the desirability of borrowing the
necessary amounts from nonbank investors, there have, however, been wide
spread differences in the recommendations as to how to go about securing
the funds#
Some of these proposals have been widely reported and discussed in
the press and elsewhere* For example, in recent months various groups
and individuals suggested changes in the terms of Savings Bonds Or the
issuance of entirely new types of Savings Bonds* It has also beén suggest*
ed that the Treasury should meet part of its new money needs by further
increases in its weekly bill offerings, or by offering additional
certificates or short notes* On the other hand, it has als& been recom
mended that the Treasury ought to put more reliance on borrowing in the
long-term area, and the issue of both marketable and nonmarketable long*
term securities has been proposed#
We are of course considering all the possibilities, and announcements
will be made as rapidly as the Treasury’s policy decisions are made#
Two of these announcements have been made during the past week* The
first concerned Savings Bonds, and the other announced the offering for a
limited period of additional amounts of 2 -3 /b percent Treasury Bonds,
originally issued in April of last year# These offerings are part of the
Treasury’s program to raise as much of the required funds as possible
from nonbank sources#
Here are some of the highlights of the modernized savings bond
program* All E bonds sold on and after May 1st of this year will earn 3
percent interest, compounded semi-annually^ if held to their new maturity
of 9 years and 8 months* Interest on these bonds begins at the end of 6
months and accrues at a higher rate in the éarlier years of holding than
previously was the case# The yearly limit on new purchases of these bonds
has been raised from $10,000 to ?>20,00Q‘maturity value*
Likewise, all Series E bonds reaching their original maturity on or
after May 1, 19^2, if not cashed, will continue to earn interest for a
Period not to exceed 10 more years at a rate of approximately 3 percent,
compounded semi-annually, regardless of when the holder redeems his bond
during the extended period*
A ^
As a companion to the discount E bond* an entirely new current
income bond, designated Series H, will be issued on June 1, 195>21 It
will be issued and redeemed at par and interest will be paid semi
annually, by check, on a graduated scale of rates similar to that applied
to the new E bond. Like Series E bonds, the new Series H bonds will be
issued only to individuals; will have the same 9 year, 8 month term; and
will have the same annual purchase limit of $20,000 maturity value*
Unlike E bonds, however, they must be held six months, rather than two,
before they can be redeemed, and a month*s notice of intention to redeem
will be required. These bonds^will be issued and redeemed only by
Federal Reserve Banks and branches and at the Treasury. The smallest
denomination issued will be $f?00*
Substantial changes have also been made in the Series F and G savings
bond picture. Effective May 1, these bonds were superseded by Series J
and K bonds respectively. The new series differ from the old series
primarily in their interest rate schedules. They will pay 2-3/h percent
if held their full 12 years to maturity, and will pay much higher inter
mediate yields than the F and G bonds. The combined annual purchase limit
on the Series J and K bonds has been raised to $200,000, as compared to
f100,000 for the F and G bonds*
The new program which I have just outlined is one to which we have
given a great amount of study and one which we are confident will encourage
substantial new investment by individuals in United States savings bonds.
Announcements will be made in due course with respect to other types
of securities which the Government will issue to meet its borrowing
requirements* But* regardless of how the complete financing program
develops, and what securities the Treasury offers, our objective will be
to maintain investor confidence in Government securities* It is our
responsibility not only to promote the purchase of new Government securities
by nonbank investors, but also to encourage these groups to retain their
current holdings. We shall also be alert to possible changes in the
economic situation, and be prepared to try to make balanced use of all the
tools available to us, in addition to debt management and credit policies,
to hold in check the development of inflationary or deflationary forces*.
In meeting the situations that face us in the year ahead, we are
going to be better prepared to handle our debt management operations
through our sharing of views and experiences* You, too, are going to come
out with better answers to your banking problems in just the same way,
and that is by getting together and applying your joint experience and
understanding to the solution of those problems. The power of America
is the power^of its people, throughout the length and breadth of this land,
thinking together and working together for the common good* lie have forged
a great Nation* We have risen to our position of world power because we
were willing to give more than we expected in return. By doing so, we have
found material enrichment and the greater satisfaction of accomplishment
in building for the future. So long as we hold fast to our ideals, our
Nation and the freedom and justice under law which it symbolizes need have
no fear of the future.
oOo
X? h
3
RE m m MCRHBïQ HERSPAFERS,
Tuesday, May 6, 1952.
ocf
¿,,
^
The Secretary of tbd Treasury announced last evening that the tenders for
$1,300,000,000, or thereabout*, of 91-day Treasury bills to be dated lay 8 and to mature
August ?, 1952, which were offered
on lay
1, were opened at the Federal Reserve Banks oa,
m y 5*
The detail* of this issue are as follows*
Total applied for - $2,225,987,000
Total accepted
- 1,303,14(3,000
Average price
(includes $181*,926,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99*568 Equivalent rate of discount appro*. 1,7105 per annua
(Excepting one tender of $200,000)
Bange of accepted competitive bids*
- 99*592 Equivalent rate of discount approx. 1.611*5 per annua
High
low
- 9 9 *56 6
1. 7175
«
*;
(87 percent of the amount bid for at the low price was accepted^
Total
Federal Reserve
District
Boston
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* boule
Minneapolis
Kansas City
Balias
San Francisco
Total
Applied for
Accepted
$
I
39,609,000
1,1*58,058,000
50.596.000
l*ÿ,6Uo,ooo
22.250.000
29 ,722,000
271,937,000
W , 786,000
15.135.000
57,51U,000
65.315.000
35,1*59,00°
710,005,000
13,3itl»0°°
36.6W.ooo
18,068,000
at,397.000
pmiQ92.000
' 122,W 5 , 000
W
#2,225,987,000
#1,303,1*1*8,000
TREASURY DEPARTM ENT
Information Service
WASHINGTON, D .C
Hww
release m o r n i n g
newspapers,
S-3042
Tuesday, May 6 , 1 9 5 2 -______
The Secretary of the Treasury announced last evening that the
tenders for $1,300,000 ,DQO, or thereabouts, of 91-day Treasury bills
to be dated M a y 8 end to mature August 7, 1952, which were offered on
May 1, were opened at the Federal Reserve Banks on May 5.
The details of this issue are as follows:
ha 1 ,r>rpplied.
i
for - $ 2 ,2 2 5 ,9 8 7 , 0 0 0
Tot;
1,303,448,000 (includes $184,926,000
Total accepted
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
9
9
.
5
6
8
Equivalent
rate of discount a p p r o x .
Average ,-price
1 .7 1 0 $ . per annum
Range of accepted competitive bids:
High
(Excepting one tender of
$200 ■C
- 99.592 Equivalent rate
1.6145g
- 99.566 Equivalent rate
1.717$
Boy
of discount approx
per annum
of discount approx
pe r annum
(87 percent of the amount bid for at the low price, was accepted)
Boston
Ifov York
Philadelphia
Clove land
Richmond
Atlanta
Chicago
Bt. Louis
Minneapolis
Kansas City
Balias
San Francisco
TOTAL
Total
Accepted
Total
A p p i ied f o r _____
Federal Reserve
District
$
39,609,000
1,458,05'8,000
5 0 ,5 9 6 , 0 0 0
49,640,000
2 2 ,2 5 0 , 0 0 0
2 9 ,7 2 2 , 0 0 0
271.937,000
43,786,000
15,135,000
57,514,000
6 5 ,3 1 5 , 0 0 0
122,425,000
$2,225,987,000
0 O0
$
35,459,000
710,005,000
13,341,000
36,640,000
Ì 8 ,0 6 8 , 0 0 0
24,397,000
2 0 5 ,9 2 2 , 0 0 0
29,293,000
12,979,000
4 9 ,0 7 4 , 0 0 0
64,815,000
103,455,000
$1,303,448,000
L
L
tA
V" ^
Xx.
^Wrfu*,*# &
i
_ / / _ -3 * j f
^7 v
7 T
¿/
Secretary Snyder today announced the appointment of Charles
{0****‘
W. Davis to the position of Assistant General Counsel, created
by Reorganization Plan No, 1 J*or the Bureau of Internal Revenue.
Mr, Davis ■will serve as chief counsel for the Bureau of Internal
Revenue^
__
This is the first appointment, in accord
ance with the Reorganization Plan for the Bureau of Internal Revenue,
to be made under the Civil Service merit system to a post hereto/ A ¿ > p » & * * * & & sv?
fore subject to^Senate confirmation. The appointment was made after
full compliance with procedures for qualification and clearance by
the Civil Service Commission.
Mr. Davis is a legal resident of Vandalia, Illinois.
He
graduated from the College of Law of the University of Illinois,
where he was an editor of the Illinois Bar Journal.
Following
private practice of law he served for three years in the Office
of the Tax Legislative Counsel of the Treasury Department.
For
the past three years he has been Clerk of the Committee on Ways
and Means of the House of Representatives.
During World War II
he served for three years in the Army of the United States and
was released as Captain, Army Air Forces, AUS.
TREASU RY DEPARTM ENT
Information Service
WASHINGTON, D .C .
IMMEDIATE REIEASE,
Monday, May 5, 1952.
S-3043
Secretary Snyder today announced the appointment of
Charles W. Davis to the position of Assistant General
Counsel, created by Reorganization Plan No. 1 of 1952
for the Bureau of Internal Revenue.
Mr. Davis will serve
as chief counsel for the Bureau of Internal R e v e n u e .
This is the first appointment, in accordance with the
Reorganization Plan for the Bureau of Internal Revenue,
to be made under the Civil Service merit system to a
post heretofore subject to Presidential appointment and
Senate confirmation.
The appointment was made after
full compliance with procedures for qualification, and
clearance by the Civil Service Commission.
Mr. Davis is a legal resident of Vandalia, Illinois.
He graduated from the College of Law of the University of
Illinois, where he was an editor of the Illinois Bar
Journal.
Following private practice of law he served for
three years in the Office of the Tax Legislative Counsel
of the Treasury Department.
For the past three years he
has been Clerk of the Committee on Ways and Means of the
House of Representatives.
During World War II he served
for three years in the Army of the United States and was
released as Captain, Army Air Forces, AUS.
0 O0
|h -*> $ >
1
STATUTORY DEBT LIMITATION
AS OF April 30, I9 5 2 ..
^Hscli^îvlce^
Washin9ton»
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S.C., title 31 , sec. 757b), outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face'amount which can still
be issued under this limitation:
$275,000,000,000
Total face amount that may be outstanding at any one time
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills.....................
Certifixates of indebtedness..... .
Treasury n o t e s....................
Bonds T reasu ry.........................
Savings (current redemp. value)
Deposi tary......... ..............
$ 1 7 ,4 6 2 ,1 3 5 ,0 0 0
2 8 ,4 2 3 ,0 7 0 ,0 0 0
2 6 .0 0 9 .2 5 8 .9 5 04
7 1 ,8 9 4 ,4 6 3 ,9 5 0
7 6 ,8 4 0 ,7 2 3 ,1 0 0
57,643,585,353
3 6 7 ,2 8 4 ,5 0 0
Armed Forces Leave ..............
Investment series...............
Special Funds Certificates of indebtedness
Treasury notes..................
Total interest-bearing
1 2 ,4 6 7 ,2 3 0 ;0 0 0
2 2 ,4 3 0 ,4 6 5 ,0 0 0
14.316.7*38. OOP
Matured, interest-ceased..............
Bearing no interest:
War savings stamps ................
Excess profits tax refund bonds...
1 4 7 ,3 1 8 ,8 2 2 ,9 5 3
36 , 746, 203,000
2 5 5 ,9 5 9 ,4 8 9 ,9 0 3
380,545,40©
4 9 ,7 0 7 ,5 7 4
1 ,7 4 4 ,4 6 9
Special notes of the United states:
Internat'l Monetary Fund series...
Total.................................
1 ,2 5 3 ,0 0 0 ,0 0 0
.................................
1 .3 0 4 .4 6 2 .0 ^ 3
2 5 7 ,6 4 4 ,4 8 7 ,3 4 6
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H. a. .................
i n , 938.^36
Demand obligations: C.C.C.
... .......................8 1 1 .1 4 6
4 2 ,7 6 9 ,5 8 2
Matured, interest-ceased
.................................................................. ..................... 1 .6 2 0 .0 7 6
4 4 ,3 8 9 ,6 5 7
Grand total outstanding........... .......... .......................... ................ ................................................. ......
Balance face amount of obligations issuable under above authority......................................
Reconcilement with statement of the Public Debt
(Daily statement of the United states Treasury,
267.688.877,001
17.311.122^21
April 3©, 1.952
(Datei
May 1, 195? )
(Date)
Outstanding Total gross public debt ...........................................................
Guaranteed obligations not owned by the Treasury .................................
Total gross public debt and guaranteed obligations ...............................
Deduct - other outstanding public debt obligations not subject to debt limitation
258,292,339,862
¿0lrr38QJ & 258,336,729,51?
-— 647,852^510257,688,877,003
STATUTORY DEBT LIM IT A T IO N
A S OF A P R IL 3 0 , 195>2
May 7, 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 $ 2 7 £ ,0 0 0 ,0 0 0 ,0 0 0 (Act of June 2 6 , 191*6; U.S.C., title 3 1 ,
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 fa c e amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury, bills. ............. ♦$ 17,1*62,135,000
Certificates of indebtedness... 28,1*23,070,000
Treasury notes.......
26,009,258,950 $71,891*,1*63,950
Bonds Treasury................ .. 76,81*0,723,100
Savings (current rederap.value) £7,61*3,585,353
Depositary.••••••••••••••••••
367,281*,500
Armed Forces Leave........ .
Investment series
12,1*673230,000 11*7,318,822,953
Special Funds Certificates of indebtedness# 22,1*30,1*65,000
Treasury notes.............
ll*,315,738,000 36,71*6,203,000
Total interest-bearing..................... 255,959,1*89,903
Matured, interests eased*.
.... •••••.... .
380,51*5,1*00
Bearing no interest*
War savings stamps,
.....
1*9,707,571*
Excess profits tax refund bonds»#
1,71*1*,1*69
Special notes of the United States* .
Internat*1 Monetary Fundseries
1,253,000,000
l,30l*,1*52,01*3
Total...... ..... ...................... ..... . 257,61*1*,1*87,31*6
Guaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures : F.H.A...............
1*1,938,1*36
Demand obligations: C.C.C# ..... ______ 831,11*6
Matured,interest-ceased...,»..,...............
1*2,769,582
1,620,075
--- I È 7 T O 5 7
^Grand total outstanding
2 57 ,688 ,8 77,0 0 3
glance face amount of obligations issuable under above authority... "TT73ii,122,^9 7
Reconcilement with Statement of the Public Debt - April 30, 1952
1 , 1952 )
°»tstanding(Daily Statement of the United States Treasury, May
Total gross public debt.
►. 258 ,292 ,339,862
uaranteed obligations not owned by the Treasury*•«.•••••••••••<
1*1*,389,657
otal gross public debt and guaranteed obligations*.....,..,,..,
258 336 729,519
uct - other outstanding public debt obligations not subject to
debt l
i
m
i
t
a
t
i
o
n
......
61*7,852,516
2 5 7 ,688 ,0 77,0 0 3
- ,,
M okk
- 3 m m i
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 l\2 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 191*1> the amount of discount
x 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 sucfy bills are excluded from consideration as capital assets.
Accord
ingly, 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. I4I8, 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 tn m
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 accept
ance 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 reserva
tions, non-competitive tenders for<^20ojo0^ 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 Re
serve Bank on
May 15. 1952
, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
Hay IS.
—
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
-•
m
m
m
TREASURY DEPARTMENT
Washington
(S
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. May 8 , 1952
H R
The Secretary of the Treasury, by this public notice, invites tenders
$ 1,500,000,000 , or thereabouts, of
91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing
May 15* 1952
. in
---'■-*. *n~r—-- ***— *r
(JQ0C
the amount of $ 1.301.570*000 » to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
May 15» 1952
The bills
, and will mature
_____ August lli. 1952
when the face amount will be payable without injcraiac
terest. They will be issued in bearer form only, and in denominations of
$1 ,000, $5 ,000, $1 0 ,000, $100,000, $500,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o^lock p.m., Eastern/fetaxEtaasl time, Monday, May 12, 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 competi
tive 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
RELEASE MORNING NEWSPAPERS
Thursday^-1May 8, 1952._____
•3045.
The Secretary of the Treasury, by this public notice invites
tenders i or T_,5Q0,000,000, or thereabouts, of 91-day Treasury
cash and in exchange for Treasury b i l l s ‘maturing
b ills ,
15, 1952, in the amount of $1,301,570*000, to be .issued, on a
discount basis tinder competitive and non-competitive bidding Os
hereinafter provided. . The bills of this series will be dated
May 15, 1952, and will mature August 14, 1952 when the .face a m o u n t .
will be payable without interest.
They Will be issued in bearer
form onlyi and in denominations of $1,000,$5>000, $10,000, $100,000,
$500,00o" -and $1,000,000 (maturity value).
- ' ;/! ,//, 1
Tenders•will be, received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Daylight Saving
tim e, Monday.,- May 1 2 , 1 9 5 2 .
Tenders will not. be, received at the
Treasury Department, Washington. Each tender must- be for. an even
multiple of $i;000, anduin 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 submitenders 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.
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
vill 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
ahy respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
fnom 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 May 15, 1952, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing May 15, 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 o.r hereafter imposed on '
the principal or ;interest thereof, by any State, or any of the
possessions of the United States, o r by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills a;
re; originally sold by the United States shall be considered
to be. i n t e r e s t . Under Sections 42 and.'117 (a) (T) of the Internal .
Revenue Code-, as amended- by '.Section 115" of .the Revenue Act of 1941,
the amount of discount at which bills issued-hereunder are sold
shall not be considered to accrue .until, such bills shall be sold,
redeemed or -otherwise, disposed of, and such bills- are .excluded from
consideration as capital assets;*. Accordingly-, the' owner of Treasury
bills (other than life .insurance: companies) issued hereunder need
include in his income tax return only the difference between the.
price paid for such bills, whether on original issue or on |
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity/ during the taxable year for which
the return is made, as ordinary gain, or loss.
Treasury Department, Circular .No.. 4l8, as amended, and this
notice, prescribe the terms, of the. Troasury bills and govern 'the
conditions, of their issue. Copies o,f the circular may be obtained ;
from any Federal Reserve. Bank or Branch.
oOo
.ff
-t
mokkiho w a m m m $
M
Tuesday* May
13»
7
v
n
W-P
{
1952*
Th« Secretary of the Treasury announced last evening that the/ tender« Ihr
11,500,000,000, or thereabout«, of 91-day Treasury bill» to be dated hay
IS
and to maturi
August llif 1952, which vere offered on Hay 8, were opened at the Federal Reserve Banks on
May 12«
The details of this Issue are as followst
Total applied for - 12,l»3M6X,OQO
Total accepted
- 1,500,772,000
,
(includes 2203,033,000/ entered on a
non-competitive /basic and accepted in
fell/at the average price shown* below)
Average price
rate of discount approx* 1*725$ P*? annua
Range
- 99«56M
of accepted competitive bidet
* 99*583 Bquivalent rate of discount approx* 1*650$ per annual
High
Low
- 99*562
«
»
•
»
«
1.733$
*
*
(29 percent of the amount bid for at the low price wae accepted)
Federal Reserve
District_______
Total
Boston
How Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
it* Louis
Minneapolis
Kansas City
Dallas
San Francisco
I
Total
for
3 3 ,180,000
1,599,818,000
57.021.000
Sl,6lU,000
30.681.000
35.528.000
250.1198.000
181,022,000
52.829.000
9,372,000
96.305.000
62 076.000
130.285.000
35.988.000
9,172,000
71.915.000
10.526.000
78.008.000
12 ,1(38 ,761,000
11,500,772,000
.
WTkl
(/
27 , 760,000
683,1(57,000
37.211.000
71.688.000
27,116,0«)
33.957.000
TR EA SU R Y DEPARTM ENT
Information Service
■
I
I
Wa s h in g t o n , d . c .
RELEASE MORNING NEWSPAPERS,
T u e s d a y M a y 13* 1952.
S-3046
The Secretary of the Treasury announced last evening that the
tenders for $1,5^0,000*000* or thereabouts, of 91-day Treasury bills
to be dated May Ifj and to mature August 14* 1952* which were offered
on May 8 * were opened at the Federal Reserve Banks on May 12,
The details of this issue are as follows:
Total applied for - $2*438*761,000
Total accepted
- 1*500*772*000 (includes $203*033*000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99-564/ Equivalent rate of discount approx,
I.725 % per annum
ff\
Range of accepted competitive bids*.
High
Low
I
(29
-
99.583
Equivalent rate of discount approx.
1 .650 $ per annum
9 9 .56 2
Equivalent rate of discount approx *
1 -7 3 3 $ per annum.
percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Total
Applied for
57 , 021*000
81*614*000
30*641*000
35,522*000
250*498*000
52,429*000
9*372*000
96*305,000
6 2 * 076*000
130 * 285^000
2 7 *760*000
883,457*000
3 7 ,2 1 1 * 0 0 0
71.644*000
27*13-6*00®
33.957.000
1 8 1 *0 2 2 * 0 0 0
35.988.000
9 ,172*000
7 1 ,915*000
4 3 *526*000
7 8 ,004^000
$2*438*761*000
$ 1 *50 0 *772*000
$
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas-Citv
Dallas
San Francisco
TOTAL
Total
Accepted
33 , 180*000
1 *59 9 *818*000
$
- 3 -
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 I9I4I, 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.
Accord-
ingly, 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. I4I8, 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.
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 accept
ance 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 reserva
tions, 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 Re
serve Bank on
May 22, 1952
___ i in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
May 22. 1952
ap^c
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
'
ALPHA
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, May 15T 1952
---
The Secretary of the Treasury, by this public notice, invites tenders
for t_l,300^000tOOO., or thereabouts, of
91
-day Treasury bills, for
cash and in exchange for Treasury bills maturing
the amount of 1 1.Q99.998.000
May 22, 1952
. in
--jyhr'v ------— 9
, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated____May 22, 1952
"2Z3T
terest.
The bills
> and will mature
when the face amount will be payable without in-
They will be issued in bearer form only, and in denominations of
#1 ,000, #5 ,000, $1 0 ,000, $100,000, $500,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/Stanriaadc: time, Monday. May 19, 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 competi
tive 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
TREASURY
DEPARTMENT
In fo rm a tio n S e r v i c e
RELEASE MORNING NEWSPAPERS,
^ u r s&ay 3 Hay 15» 19 5 _
WASHINGTON, D .C .
S-304?
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
May 22, 1952, in the amount of $1,099,998,000, to be issued on a
discount basis under competitive and non-competitive bidding as
hereinafter provided. The bills of this series will be -dated
May 22, 1952, and will mature August 21, 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, $ 50 0 ,000 , and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
x up to the closing hour, two o'clock p.m., Eastern Daylight Saving
time, Monday, May 19, 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 bo 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 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,
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
vill be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action"in
any such respect shall be final. Subject to those reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
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 May 22, 1952, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing May 22, 1952.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the par value of maturing bills accepted inexchange 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 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 retuiwi 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 o f 'the circular may be
obtained from any Federal Reserve Bank or Branch.
oOo
IMMEDIATE RELEASE
^ I
7
l?p^' ^
l'ìs&ts
/***,$
/*% /
? & ß litó*5*!
*St*t
*6&
K
Mar 13» 1952
/V
The Bureau of Customs announced today preliminary figures showing the im
ports for consumption of commodities within tariff-rate quota limitations from
the beginning of the quota periods to May 3, 1952, inclusive, as followst
period and Quantity
Commodity
Whole 'milk, fresh or
sour * • • • • • • • •
unit of
Quantity
Imports ¡
May 3»
/Calendar year
3 ,000,000
Gallon
ll*,811
Calendar year
1 ,500,000
Gallon
291
C r e a m ........... • • •
(No t . 1, 1951 (liar. 31, 1952
50 ,000,000
Pound
61*,31*1
(A p r . 1 , 1 9 5 2 (July 15, 1952
5 ,000,000
Pound
1,787
3 1 ,1*72 ,10 8
pound
Quota :
12 months from 1 ^ 0 ,000,000
Sept. 15, 1951 21*9,600,000
Pound
Pbund
62,267,685
27,181*, 751
5 ,000,000
Pound
3,552,726
Butter • • • • • • • •
Fish, fresh or frozen,
filleted, etc;, cod,
haddock, hake, pollock,
cusk, and rosefish • « •
White or Irish Potatoesr
certified seed . . . . .
other ................. .
(i)
Calendar year
Walnuts • • • • • * • • < , Calendar year
Petroleum and petroleum
products • • • • « . • • •
Calendar year
Venezuela
2,956,81*1,91*9
Netherlands
930,857,651
Other Countries 1,090,11*8,800
Almonds r
shelled ........ , . • . •
prepared, etc. • ........
12 months from
* l*,5oo,ooo
October 1, 1951
Gallon
Gallon
Gallon
1 ,997 ,911,769
Quota filled
1,079,379,215
1,782,558
Pound
1*51,903
4F 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 15,736,051* pounds
during the first six months of the calendar year.
474
TREASURY DEPARTMENT
Washington
IMMEDIATE release
Thursday, May 1$, 1952
S-30U8
The Bureau of Customs announced today preliminary figures showing the im
ports for consumption of commodities within tariff-rate quota limitations from
the beginning of the quota periods to May 3, 1952, inclusive as follows:
“ Unit1of
Quantity
Import;
May 3;
Commodity
Period and Quantity
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
lit,811
Calendar year
1,500,000
Gallon
29I
(Nov, 1, 1951 (Mar. 31, 1952
50,000,000
Pound
61,3ll
(Apr. 1 , 1952 (July 15, 1952
5 ,000,000
Pound
1,787
cusk, and rosefish . . .
Calendar year
31,U72,108
Pound
Quota .
White or Irish Potatoes:
certified seed • • • • •
other
12 months from 150,000,000
Sept. 15, 1951 219,600,000
Pound
Pound
62,267,685
27,181,751
Walnuts. • • • • • • • •
Calendar year
5 ,000,000
Pound
3 ,552,726
Petroleum and petroleum
products • • • • • • • •
Calendar year
Butter . . • • • • • • •
V
Fish, fresh or frozen,
filleted, etc*, cod,
(1)
Venezuela
Netherlands
Other Countries
Almonds:
shelled. • • • • • • • .
2, 956,81,1,9^9
930,857,651
1,090,118,800
Gallon 1,997,911,769
Gallon Quota filled
Gallon 1,079,379,215
12 months from
1 ,782,558
*1,500,000
Pound
Prepared, etc. • • • • •
October 1, 1951
¿151,903
# 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 15*736,051 pounds
during the first six months of the calendar year.
4 - 3 ° ? ?
FOR IMMEDIATE RELEASE,
ifey..|3» 1552.*-------
The Bureau of Customs announced today .Dreliuninary figures showing the
quantities of wheat and wheat floui^JSteFeJ, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 19^1, as modified by the President’s proclamation of April 13, 191*2,
for the 12 months commencing May 29, 1 9 as follows:
Wheat
Country
of
Origin
Established i
Imports
Quota
iMay 29, 1S£>1 , to
* May 12, 1952
(Bushels)
(Busnels)
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
1,0 0 0
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
*
Canary Islands
Rumania
1,0 0 0
Guatemala
100
100
Brazil
Union of Soviet
Socialist Republics
100
Belgium
100
800,dOU
776,1*77
—
mm
mm
mm
‘mm
37
mm
mm
mm
p*
mm
mm
mm
id
mm
mm
_
mm
mm
mm
mm
mm
mm
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
t May 29, 19 %
f
s to May 12, 1952
(Pounds)
-- (Pounds)—
3 ,815,000
2i*,000
1 3,0 0 0
1 3,0 0 0
8,000
75,000
1,0 0 0
5,000
£,000
1 ,0 0 0
1,0 0 0
1,0 0 0
U *,000
2,000
12,0 00
1,0 0 0
1,0 0 0
1*000
1,0 0 0
1,0 0 0
1,0 0 0
1,0 0 0
1,0 0 0
1,0 0 0
1,0 0 0
3 ,815,000
m
_
11,209
62
•
—
-
•
2:,000
'im
n5
mm
mm
mm
mm
m
mm
—
_
-
- m
—
mm
M
— ■
»■
7V6,m
I*,Odd,000
378257377
4^
TREASURY DEPARTMENT
Washington
IM M ED IATE R E L E A S E
Thursday, May 15, 1952
:
î
Country
of
Origin
_______ ?
i
Wheat
î
*
i Established ;
Imports
:
Quota
sMay 29, 1 9 5 1 , to
: May 1 2 , 19 5 2
(Bushels)
(Bushels)
795,000
776,¡(77
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
Mew Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Jugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
—
—
•
—
-
m
—
100
100
mm
m
m
37
100
2,000
100
mm
1,0 0 0
10
100
mm
mm
mm
-
•N»
1,0 0 0
100
100
-
100
100
-
800,000
,
13,000
-
100
: Wheat flour* semolina*
:
crushed or cracked
•
wheat, and similar
:______ wheat products
: Established :
ImportsT"
:
Quota
: May 2 9 , 1 9 5 1 ,
:___ ________ ito May 12, 1 9 5 2
(Pounds)
(Pounds)
3,815,000
3 815,000
2^,000
776,521*
13,000
8,000
75,0 0 0
1,000
5,0 00
5.000
1.0 0 0
1,0 0 0
1,0 0 0
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
k , 000,000
11,200
62
2,000
115
3,828,377
IMMEDIATE R ELEA SE
The Bureau of Customs announced today preliminary figures showing the
inports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 19U6, from January 1, 1952, to May 3> 1952,
inclusive, as follows t
\•
•
1
Products of the
Philippines
s
:
•
#
Established Quota
Quantity
8 5 0,00 0
Buttons •
Unit of
Quantity
s
i
Imports as of
May 3, 1952
Gross
231,807
1*02,310
Cigars
2 0 0 ,0 0 0 ,0 0 0
Number
Coconut Oil • • . • ♦
I1I4.8,
000,000
Pound.
20,571,81*0
Cordage ........... •
6 ,0 0 0 ,0 0 0
Pound
1 ,5 1 2 ,0 3 2
Rice . « • • • • • • •
l,0 li0 ,0 Q Q )
pound
-
1 ,9 0 li,0 0 0 ,0 0 0
Pound
(refined, • • •
Sugars
1*80',589,1*91*
(unrefined • • •
Tobacco . . . . . . .
6, 500,000
Pound
li)46,o5U
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, May 15, 1952
S-3050
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 19)46, from January 1, 1952, to May 3, 1952,
inclusive, as followss
Products of the
Philippines
• Established Quota
•
Quantity
•
•
Buttons . . . . . .
•
Cigars
......
Coconut Oil . . . .
Cordage
Rice
•
• • • • . •
......
(refined
850,000
: Unit of
s Quantity
Imports as of
: May 3, 1952
î
Gross
231,807
200,000,000
Number
1*02,310
ljii.8,000,000
Pound
20,5 7 1 ,81+0
6,000,000
Pound
1 ,512,032
1 ,01*0,000
Pound
-
1,90^,000,000
Pound
. . •
Sugars
(unrefined
Tobacco .........
• •
1*80,589,1+91»
6,500,000
Pound
14*6,051*
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 VALUES Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes'made from cottons of 1-3 /1 6 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
: Established
: TOTAL QUOTA
ft
United Kingdom ...... ...
4,323,457
239,690
Canada ..............
227,420
France ...............
British India .......
69,627
68,240
Netherlands .........
44,388
Switzerland .........
Belgium ..............
38,559
J a p a n ........ .
341,535
17,322
C h i n a ........ .
Egypt .... ...........
8,135
C u b a ..... ...........
6,544
Germany .............
76,329
Italy ............... ... '
21.263
5,482,509
1/ Included in total imports, column 2.
prepared by the Bureau of Customs
: Total imports
s Sept. 20,1951 to
: May 12, 1952
27¿370
233,8o3
mm
«
: Established :
Imports
;
33-1/3* of : Sept ¡20,1951
: Total Quota : to May 12, 1952
1,441,152
—
75,807
22,747
14,796
12,853
-
~
261.173_______
27,370
§
-
—; ■
—
—
—
—
-
25,443
7,088
—
1.599,886
27,370
-
1/
I
IMMEDIATE RELEASE
v
m y 1 :3 , 1 9 ^2
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 May 12, 1952, inclusive
Country of Origin
Egypt and the AngloEgyptian Sudan ....
Peru ......;........
British India ......
China ..............
Mexico .............
Brazil .............
Union of Soviet
Socialist Republics
Argentina ..........
H a i t i .... ..........
Ecuador ............
Established Quota
,
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
Imports
1MM —
Î|0 ,18 Ç
—
' "
—
8,883i2$9
1U2.837
»
—
-
Country of Origin
Established Quota
Honduras ............ .
Pa r a g u a y .............
Colombia ..............
Iraq ......;..........
British East Africa ...
Netherlands E. Indies
Barbados
l/0ther British W. Indies
Nigeria ... s.... ......
2/0ther British W. Africa
¿/Other French Africa ...
Algeria and Tunisia ...
Imports
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689
-
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
¿/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4”
Imports Sept. 20,1951« to May 35 195*
Cotton 1-1/8” or more, but less than 1-11/16**
Imports Feb, 1,1952, to May 1 2 $ 1932
Established Quota (Global)
Established Quota (Global)
70,000,000
Imports
l,3U6,7lO.
45,656,420
Imports
18,030,095
—
—
—
«
—
—
—
—
—
—
TEFASUET DEPARTMENT
IMM E D I á TE RELEASE
Washington
Thursday, May 15, 1952
S -3 0 5 I
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Presidents Proclamation of September 5, 1939, as amended
COTTON (other than 1 inters) (in pounds)
Cotton under l~l/8 inches other than rough or harsh under 3/ZP
Imports Sept» 20, 1951, to May 12, 1952, inclusive
Country of Origin
Established Quota
Egypt and the Anglo-.
Egyptian Sudan *••*
British India •«•<>•••
China
Mexico «*•««•««• ¡9••**
Brazil *o.3*oc**o**c**
Union of Soviet
Socialist Republics
Argentina ••«•».»••**
Haiti •••*••*•••*«**«
Ecuador *• •****<>• •*•*
783,816
247,952
2 ,003,483
1,370,791
8,883,259
618,723
4 75 ,1 2 4
5,203
237
9,333
Imports
40,185
8,883,259
142,837
1M»
mm
-
Country of Origin
Established Quota
Honduras •*«•••••*••«••
Paraguay ••»•••••••••*•
Colombia *••»•«***•*«**
Iraq •*•***...*,.**>*...
British Fast Africa ...
Netherlands F, Indies. *
Barbados
I/Other British W • Indies
Nigeria «•»*«*«•**••*••*
2/0ther British W. Africa
2/0ther French Africa*«••
Algeria and Tunisia „•*
Imports
752
871
124195
2,24.0
71,388
~
-
21,321
5,377
16,004
689
—
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago*
2j Other than Gold Coas t and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar*
Cotton, harsh or rough. of less than 3/4”
Imports Sept* 20, 1951, to May 3 , 1952
Established Quota (Global)
70,000,000
Imoorts
1 ,3 4 6 ,74 1
Cotton 1-1/8» or more, but less than 1-11/l6*
Imports Feb* 1, 1952, to May 12, 1952
Established Quota (Global)
45,656,420
Imports
18,030,095
4^
CO
h-4
-
2
-
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/L6 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT. MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more, than 33-1/3 percent of the quotas shall
be filled by cotton Wastes other than comber wastes made from cottons of 1 - 3 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin :
United Kingdom •••••••
France
•••o•••
British India *•••••»•
Netherlands ••«*•••»••
Switzerland «•«••••••»
Belgium
«Japan
«•<*•©
China ©so»••«>•©•*«••••
Egypt •««(<!•««•(••«••
Germany «««o©•••©••©«©
Italy 0900009900000000
1/
Established : Total Imports
TOTAL QUOTA . Sept* 20, 1951 to
: May 12, 1952
Imports
Established ;
33-1/3# of : Sept© 20,, I95I
Total Quota ; to fey' 12, 1952
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
27,370
233,803
-
—
22,747
1 4 ,79 6
12,8 53
—
—
25,443
7,088
5,482,509
. 261,173
1,599,886
—
— ■ ..
**
—
—
-
Included in total imports, column 2*
Prepared by the Bureau of Customs
1,441,152
—
* 75,807
—
27,370
— y* '
—
—
— ;
—
—
—
—
—
—
w
27,370
y
■,•
|jj
,¿ m :,
• 2 •
it o » su b e e rip tlo » a n t t l » p a li fé » la SiH *taU i»iito» d e liv e iy
18» t e t t i per mmmt et ta o » m b eexitod te r , adjuetod te te e t a x i td&met ft-nta,
t e t t e Se te e tsta la w deaentnatloB et te e m
ten d e, « S U te « it e t e li fin a e l i
e te a e te b e » « sca p i In e o rp e n te d tema m i to n a i «sognate« u n t il p y e it et tee
t e t t i an eo tt su b e e rlto i ter te e te e a
te eteerp e u e te m a permei Sa
t e i w eo ap lato d , te e U H re « it e t e li t e e ll epe» d e e la re tie n t e tee c e e n ta iy te
te e Xim unajr la h le d ie e e e ile n t e terteì& eà to te e U nited S te tte .
S u to etep tlsB e «SU te le e e tm i a i te» r e t e r a i se a e rm Barn» «te sanate« «al
a i te e txeeasejr a p e r t a m i, W aahtneton. S u b je ct t e te e n e t t i ro e e rw tio n e , and
te e aaldag ear e e n p ie tiag te
à
repet ae p ro v lte d la te e o m
« d tee rip tio n « «SU te a lla t t a i Sa fu ll. tte a u te e rtp tisn te o ta «1U pwiaJ% te
opra te r tee » « U nd e r t e te e « an te, « U te n te tte See r n ttry te te e trem im p
« t a t a » tte r i t e i to e la rn te e te s te a i angr l i * « S ite a i a e t& tt.
i
,N
l ' fK
in
_
yrm
etet n ta t e la i wgr te ta a d a te i Sa
estima®tee
■ » Steue « e ie t» M d w ttg te e in e r t e , r if t e , S ia t e , end
Mar { « % end
te e V icfew y la n a . S te se tenda a re id M y b e li tgr ia d lv lfo e le aad e t t e » thrau^h*
o u t tea eeuntty. tee S e e re te ry tea aeted ta a k la g S a a ilttiS s a a te bftag tee
e tte ria e to t t e a tte a tte a te « te le c ia t o » » la e n t e th a t In fo rm ilo « atout
t e le « ¿ fe r it e « s u » a r t t o lt e » e t tee to u r i t t i m m tlsa e i Tnm m ur t e t t a ,
t t e ta sti te te e a f f i s i l i eSxeu tar te e tta e te d .
Ite 2-2/2 p a n a « *
t te S e e re ta ijr et tee tre a e se y a le e annsuneed te a t te e o p its a te e a U ter
n d a t e t is a on teotaater 15« i?5S tte 9 peremA treemu? Bende et ÌSSl-Sìa * t e d
35, 1 » 3 , tee S e p ta rtsr 15C 1»5J* « IU n e i te « a sse ia a d .
®0tmm
A tta rta ra i
KUSUgrieU» 5-13*52
"
« vum, r m m m
watmwm,
Thuraday. Mer 15. 1958.
Sacrat«y of tte Î N t m i y teyder today nalcaaed tiw officiai elrculnr
iW W W h f tb* offuring o f additlonal a m a n t e of tiw 2 - j A percent f t u m ÿ a « ^ .
ünreatmnt B a n c o B-îftS-iO* fer cash or, aa previde* la Section XV of Capcrtmnt
Circuler Ho* $07 A I A la tiw official, eiacular geaenUag U a efferlng, for eaab
aaC la e m h a n g e for banda of any of tiw four eutetaadlag icctrlctod Treaeunr taci*
«iti» tha longeât aeturitloo. Aa oteted la tba Beerstaiy«» initial aaBouoMtmt
of telo efforiag on Aprii 30* 1952« tiw steaerlptloB bocks «ili opea oa Hondagr«
Migr19*
B w f w r laauaa of 2-1/2 perçant
fallami
2-3/2
2-1/2
2-3/2
2-1/2
perçant
percent
perçant
parcaat
team
tenda
tenda
tende
of 1965-70,
of 1966-73«
of 1967-72,
of 1967-72,
tmmm
tends
stiglia»
far exetema ara as
data« Feb. 1* 19fafa, duo Marte
detod tes. 3«
fafa, duo Marte
datte Jvam li ljA5, due Jutw
datte M m . 15, 1965» due tea.
19
1970
1?72
15«
15« 1971
15,
35, 1972
Ail aateeriterc, a w w p t eomnrelal tente teite fer «tic purpeaa ara daflned
aa tente aooopting détend daposita, aay aate p a y a n t la full in eate for tiw
tente eteeerlted for ot par and accruod internat fron April 1, 1952, or tiwy ta?
atea p o p w m t of net loan tiwa
of tte par « m u â t of tiw tende mtecrited for
Sa eate and tiw maaladar f «change, par for par, of
of tiw tende of tiw
four i a m e a oliglM o fer oateangu, vite date adjmtmiite of accruod iatorest te
tiw date of payant. Suteeriptioao « * * cornerclul tente ara nrclated fron tel*
offerte« « s e p t te tiw «seteat tiwt thagr présent rcatrlctod tende of tiw oUgiblo
i e m m aequlrcd prlor te Baeaater 31, 1965, ia p a y m a t of 759 of tiwir nitecriptloa and oate for tiw otter
, «ith oate adjuataente of aeoraad internat te
1
<És.t®
ïaMmfea
255
«7
255
Itgmant ter tee noe tende aay te stufe la full ea luna fa, 1952, or sa? te «ad»
la tour equa1 laatellwmta oa Jmm fa, Aaignat 1, Oettear 1« and Deeeteer 1, 1952.
Oa iaotallnont payaente, iwt Icaa tban
of tiw par amena* of noe tendo paid
for far f t e l a a t e H m a t aaat te paid ia oate, feUocteg tette tte m v tenda «ili
te dellvmcd te tea suteeriter la duo eearao. Sateeriters mm* if tiwy «ite,
aoetearcto tee Ir teataUaeot permeata la tedio or la par*«
255
A H mteerltera eaaopt o o m e n l a l tetea are requeated te tee* aoparctely tee
anouata of cete and tea a m a n t e of tende teey psepofle to t m d e r la piyanBt f»r
tea a w tenda mteerlted far. Xt « H I aat te naooaaaxy far auteeritere te iaddeata
et tiw ttee of eaterlag «utecrlptitee ite « m u s t * of eote of tte w r i o u c «eatricted
o l l g U O o iaauea of tenda ttey propeso to appi? la paywnt, and a*v lastaUaant pay■ant m y vary f « w tte payaenta Indiestod la tea originai application oweapt test
set l e m ttea 8 » of tte par acewrt of new tendo pcld far tv eate iaotaUwnad * W t
fog gililt $J$ ygftfry
TREASURY
DEPARTMENT
Information Service
WASHINGTON, D .C .
RELEASE MORNING NEWSPAPERS,
Thursday, May 1 5 , 1952.
S -3052
Secretary of the Treasury Snyder today released the official
circular governing the offering of additional amounts of the
2-3A percent Treasury Bonds, Investment Series B-1975-80, for
cash or, as provided in Section IV of Department Circular No. 907
which Is the official circular governing the offering, for cash
and in exchange for bonds of any of the four outstanding restricted
Treasury bonds with the longest maturities. As stated in the
Secretary's initial announcement of this offering on April 30, 1952,
the subscription books will open* on Monday, May 1 9 .
The four issues of 2-1/2 percent Treasury bonds eligible for
exchange are as follows:
2-1/2 percent bonds
March 15, 1970.
2-1/2 percent bonds
March 15, 1971.
2-1/2 percent bonds
June 1 5 , 1 9 7 2 .
2-1/2 percent bonds
Dec. 15, 1 9 7 2 .
of
1965 -7 0 ,
dated Feb. 1,
1944 ,
duo
of
1966 -7 1 ,
dated D e c . 1,
19 4 4 ,
due
of
19 6 7 -7 2 ,
dated Juno 1,
19 4 5 ,
due
of
19 6 7 -7 2 ,
ds,ted N o v . 15,
1945 ,
due
The 2-1/2 percent Treasury bonds which may be tendered in
exchange for the new issue were sold during the Fourth, Fifth,
Sixth, and Seventh War Loans, and the Victory Loan. Those bonds
are widely held by individuals and others throughout the country.
The Secretary has asked banking institutions to bring the! offering
to the attention of their customers in order that information
about this offering will roach holders of the four above-mentioned
Treasury bonds. The text of the official circular is attached.
All subscribers, except commercial banks which for this
purpose arc defined as banks accepting demand deposits, may make
payment in full in cash for the bonds subscribed for at par and
accrued interest from April 1, 1952, or they may make payment of
not less than 25 /^ of the par amount of the bonds subscribed for
in cash and the remainder by exchange, par for par, of any of the
bonds of the four issues eligible for exchange, with cash adjust
ments of accrued interest to the date of payment.
Subscriptions
from commercial banks are excluded from this offering except to
the extent that they present restricted bonds of the eligible
issues acquired prior to December 31, 19^-5, in payment of 75 $ of
their subscription and cash for the other 25 $, with cash adjustments
of accrued Interest to date of payment.
485
-
2
-
Payment for the new bonds may be made in full on June 4,
1952, or may be made in four equal installments on Juno 4,
August 1, October 1, and December 1, 1952. On installment payments,
not less than 25 $ of the par amount of new bonds paid for by each
installment must bo paid in cash, following which the new bonds
will bo delivered to the subscriber in due course. Subscribers
may, if they wish, accelerate their installment payments in whole
or in part.
All subscribers: except commercial banks are requested to show
separately the amounts of cash and the amounts of bonds they
propose to tender in payment for the new bonds subscribed for.
It will not be necessary for subscribers to indicate at the time
of entering subscriptions the amounts of each of the various
restricted eligible issued of bonds they propose to apply in
payment, and any installment payment may vary from the payments
indicated in the original application except that not loss than
25$ of the par amount of new bonds paid for by each installment
must be paid ip.cash.
Where subscriptions
to tee paid for in installments,
delivery of 10$ of tho total par amount of bonds subscribed for,
adjusted to the next highest $1,000, which is the minimum
denomination of the new bonds, will bo withheld from all
subscribers except incorporated banks and trust companies- until
payment of the total, amount subscribed for has boon completed. In
every case where payment is not so completed, the 10$ so withheld
shall upon declaration of the Secretary of the Treasury in his
discretion be forfeited to tho United States.
Subscriptions will be received at the Federal Reserve Banks
and Branches and at the Treasury Department, Washington. ‘ Subject
to the usual reservations, and the making or completing of payments
as provided in the official circular, all subscriptions will be
allotted in full. The subscription books will probably be open
for the remainder of tho month, although the Secretary of the
Treasury reserves the right to close the books at any time without
notice.
'
The Secretary of the Treasury also announced that the option
to call for redemption on September 15, 1952 the 2 percent Treasury
Bonds of 1951-53> dated September 15. 1943, dúo September 15 1953j
will not be exercised.
0 O0
Attachment
UNITED STATES OF AMERICA
2 -3 A
PERCENT TREASURY BONDS, INVESTMENT SERIES B -197 5-80
Nontransferable
Dated April 1,
1951, with
interest from April 1 or October
1, 1952
Due April 1, 1980
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST
ON AND AFTER APRIL 1, 197$
Interest payable April 1 and October 1
ADDITIONAL ISSUE
1952
Department Circular No. 907
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, May 19, 1952.
Fiscal Service
Bureau of the Public Debt
I .
1*
O F F E R IN G O F BON D S
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
interest, from the people of the United States for bonds of the United States,
designated 2-3A
percent Treasury Bonds, Investment Series B-1975-80, for cash or,
as provided in Section IV hereof, for cash and in exchange for the following listed
Treasury bends:
2-1/2
2-1/2
2-1/2
2-1/2
2.
percentbonds of
percentbonds of
percentbonds of
percentbonds of
1965-70,
1966-71,
1967-72,
1967-72,
dated Feb. 1,
dated Dec. 1,
dated June 1,
dated Nov. 1$,
19UU,
.19UU,
19i*5,
19U5,
due March 1^,
due March 15,
due June 13,
due Dec. 15,
1970
1971
1972
1972
Commercial banks (which for this purpose are defined as banks accepting
demand deposits) are excluded from this offering except to the extent they may
offer to exchange bonds of the four issues enumerated above which they acquired
prior to December 31, 19U3, on a basis of 25 percent cash and 75 percent bonds.
3.
The amount of the offering under this circular is not specifically
limited, but the bases upon which subscriptions will be accepted are restricted
as set forth in Section IV hereof.
- 2 II.
1,
description and
terms
of
bonds
The bonds now offered will be an addition to and vdll form a part of the
series of 2-3/h percent Treasury Bonds, Investment Series 3-1975-30, issued pursuant
to Department Circular No. 383, dated March 26, 1951, will be freely interchangeable
therewith, are identical in all respects therewith (except that interest on the
bonds issued under this circular will accrue from April 1 or October 1, 1952 next
preceding the date of payment therefor), and are described in the following quota
tion from Department Circular No. 883:
'
Ml*
bonds will be dated April 1, 1951, and will bear interest from
that date at the rate of 2-3/h percent per annum, payable semiannually by
check on October 1, 1951, and thereafter on April 1 and October 1 in each
year until the principal amount becomes payable. They will mature April 1,
1980, and m i l not be redeemable prior thereto except as follows:
(a) They may be redeemed at the option of the United States on and
after April 1, 1975, in whole or in part, at par and accrued in
terest, on any interest day or days, on h months’ notice of
redemption given in such manner as the Secretary of the Treasury
shall prescribe. In case of partial redemption the bonds to be
redeemed will be determined by such method as may be prescribed
by the Secretary of the Treasury. From the date of redemption
designated in any such notice, interest on the bonds called for
redemption shall cease.
(b) They may be redeemed at the option of the duly constituted re
presentatives of a deceased owner’s estate, at par and accrued
interest to the date of pay m e n t V if at the time of death they
constitute part of the decedent’s estate and the Secretary of
the Treasury is authorized by the representatives to apply the
entire proceeds of redemption to the payment of Federal estate
taxes. Bonds submitted for redemption hereunder must be duly
assigned to “The Secretary of the Treasury for redemption, the
proceeds to be paid to the Collector of Internal Revenue at
for credit on Federal estate taxes due from
estate of
___ The bonds must be accompanied
by Fona P
FD 1?82 j2/ properly completed, signed and sworn to, and
by a certificate of the appointment of the personal representa
tives, under seal of the court, dated not more than six months
prior to the submission of the bonds, which shall show that at
the date thereof the appointment was still in force and effect.
Upon payment of the bonds appropriate memorandum receipt will
be forwarded to the representatives, which will be followed in
due course by formal receipt from the Collector of Internal Revenue.
An exact half-year’s interest is computed for each full half-year period irre
spective of the actual number of days in the half year. For a fractional part of
say half year, computation is on the basis of the actual number of days in such half year.
2/ Copies of Form PD 1782 nay be obtained from any Federal Reserve Bank or fresa the
I* :aaury Department, Washington, D. C.
T T
- 3 -
w2* Although the bonds are payable only at maturity except as pro
vided In the preceding paragraph, they may, at the owner* s option, as
provided in Department Circular No. 88U, be exchanged for 1-1/2 percent
five-year marketable Treasury Notes to be dated April 1 and October 1 of
each year during the life of the bond. If the bonds surrendered are in
order for exchange, the new notes will ordinarily be issued within ten
calendar days from the date of surrender to the Treasury Department or to
a Federal Reserve Bank or Branch. The notes to be issued will bear the
April 1 or October 1 date next preceding the date of the exchange. In
terest will be adjusted to the date on which the exchange is made. Partial
exchange of the bonds in multiples of $1 ,000, and reissue of the remainder,
will be permitted.
M3 • The bonds will not be acceptable to secure deposits of public
moneys, but they may be used as collateral for loans and may be pledged
as security for the performance of an obligation or for any other purpose.
In the event of a default on the loan or in the performance of the obliga
tion, the pledgee will have the right only to exchange the bonds for
1-1/2 percent five-year marketable Treasury notes. The bonds may not be
sold or discounted, and are not transferable in ordinary course, but they
may be transferred (by way of reissue) (1 ) to successors in title,
(2 ) (in the event of the death of the owner) to legatees, next of kin,
and other persons entitled, in accordance with the provisions of Depart
ment Circular No. 300, and (3) to State supervisory authorities in
pursuance of any pledge required under State law. A bond which has been
registered in the title of a State supervisory authority may be reissued
in the name of the original owner upon assignment by such authority for
that purpose. The term 11successors11 as used in this paragraph includes
but is not limited to succeeding organizations, succeeding trustees, and
persons entitled upon the termination of a trust or the dissolution of a
fund or organization. Judgment creditors, trustees in bankruptcy, and
receivers of insolvents* estates will be entitled only to exchange the
bonds for 1-1/2 percent five-year marketable Treasury notes. Persons
entitled to reissue under the provisions of this paragraph will succeed
to ail the rights and privileges of the registered owners.
The income derived from the bonds shall be subject to all taxes
now or hereafter imposed under the Internal Revenue Code, or laws amenda
tory or supplementary thereto. The bonds shall be subject to estate, in
heritance, 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.
»»£. The bonds will be issued only in registered form, and in denomina
tions of $1 ,000, $5 ,000, $10,000, $100,000, $1 ,000,000 and $10,000,000.
•*6 . Except as otherwise specifically provided in this circular,
Treasury Bonds of Investment Series B-1975-0O issued hereunder will be
4 PC!
Tvy
I
subject to the general regulations of the Treasury Department, now or
hereafter prescribed, governing United States bonds. The regulations in
Department Circular No. 815 (which govern 2-1/2 percent Treasury Bonds of
Investment Series A-1965)* will not govern Treasury Bonds of Investment
Series B-1975-0O. All questions concerning bonds issued hereunder and
transactions pertaining thereto should be submitted to a Federal Reserve
Bank or Branch or to the Treasury Department, Division of Loans and
Currency, Washington 25, D. C*M
III. SUBSCiii FTION AND ALLOTMENT
1.
Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington.
Banking institutions generally may sub
mit subscriptions for account of customers, but only the Federal Reserve Banks and
the Treasury Department are authorized to act as official agencies.'
Where subscrip
tions are to be paid for in installments, as provided in Section IV hereof, delivery
of 10 percent of the total par amount of bonds subscribed for, adjusted to the next
highest $1,000, will be withheld from all subscribers except incorporated banks
and trust companies
completed.
until payment of the total amount subscribed for has been
In every case where payment is not so completed the 10 percent so with
held shall, upon declaration made by the Secretary of the Treasury in hifc discretion,
be forfeited to the United States.
2.
The Secretary of the Treasury reserves the right to reject any subscription,
in whole or in part, to allot less than the amount of bonds applied for, and to
close the books as to any or all subscriptions at any time without notice; and any
action he may take in these respects shall be final.
all subscriptions will be allotted in full.
Subject to these reservations,
Allotment notices will be sent out
promptly upon allotment.
IV.
1.
BASES FOR ENTERING SUBSCRIPTIONS AND MAKING PAYMENT
Subscriptions for the 2-3/h percent Treasury Bonds, Investment Series
B-1975-80, offered hereunder may be entered, except by commercial banks as defined
in Section I hereof, as follows:
- s ~
2«
(a)
The new bonds subscribed for may be paid for in full in
cash, at par and accrued interest from April 1, 19£2, or
(b)
Not less than 25 percent of the par amount of the bonds
subscribed for must be paid in cash and the remainder by
exchange, par for par, of any of the bonds of the four
issues enumerated in Section I hereof, with cash adjust*
ments of accrued interest to date of payment«
The par amount of new bonds subscribed for by commercial banks as defined
in Section I hereof may be paid for only on the basis of 25 percent cash and 75
percent in bonds eligible for exchange hereunder, with cash adjustments of accrued
interest to date of payment*
3®
Payment for the new bonds may be made in full on June U, 1952, or may be
made in four equal installments on June U, August 1, October 1, and December 1,
195>2* On installment payments, not less than 2f> percent of the par amount of new
bonds paid for by each installment must be paid in cash, following which the new
bonds will be delivered to the subscriber in due course*
Subscribers may, if they
wish, accelerate their installment payments in whole or in part*
4»
Where the new bonds are paid for in full in cash, the appropriate amount
of accrued interest calculated in accordance with the table at the end of this cir
cular should be included in the payment*
Accrued interest on bonds to be exchanged
will be credited, and accrued interest on the new bonds to be issued will be charged
as shown in the table, except as to registered bonds presented during periods the
transfer books are closed.
Where a net amount is to be collected from the sub
scriber, the remittance should accompany the securities tendered in exchange*
Where a net amount is to be paid to the subscriber, it will be paid, in the case
of coupon bonds following their acceptance, and in the case of registered bonds
following discharge of registration*
Current and all subsequent coupons should be
attaclied to coupon bonds presented for exchange.
In the case of registered bonds
tendered in exchange during the period the transfer books therefor are closed»
491
-
6
-
Intel est on such bonds from the date of payment for the new bonds to the next in
terest payment date will be collected from the subscriber and the owner of record
will receive the full half-year* s interest due on that date in regular course.
The
transfer books are closed for one month prior to each interest payment date.
Any qualified depositary will be permitted to make payment by credit for
the cash portion of the payment for new bonds allotted to it for itself and its
customers up to any amount for which it may be qualified in excess of existing
deposits.
V.
1.
ASSIGNMENT CF REGISTERED BONDS
Treasury Bonds of 1965-70, Treasury Bonds of 1966-71, Treasury Bonds of
1967-72, due June 15, 1972, or Treasury Bonds of 1967-72, due December 15, 1972, in
registered form tendered in exchange for bonds offered hereunder should be assigned
by the registered payees or assignees thereof in accordance with the general regu
lations 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 to a Federal Reserve Bank or Branch or to the Treasury Department,
Division of Loans and Currency, Washington, D* C,
If the new bonds are desired
registered in the same name as the bonds surrendered, the assignment should be to
"The Secretary of the Treasury for exchange for 2-3/U percent Treasury Bonds,
Investment Series B-1975-ÔO.**
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/U percent
Treasury Bonds, Investment Series B-1975-80,
VI.
1.
in the
name o f _____ _.*•
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve Banks are authorized
an'! requested to reçoive subscriptions, to make allotments on the basis and up to
492
- 7 -
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 and to
make delivery of bonds as provided herein, 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, pre
scribe 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.
UNDER DEPARTMENT CIRCULAR NO. 907
Accrued interest
to be credited
on bonds
surrendered
BONDS SURRENDERED*
Exchange as of June A. 1952
2-1/2# Treasury Bonds of 1965-70 )
2-1/2$ Treasury Bonds of 1966-71 )
Accrued interest
to be charged on
bonds issued
$5.50272
$4.80874
11.74863
4.80874
9.44293
9.16667
3.21038
9.1666?
_____
1 -.0 i q 7
Mone
wone
2-1/2$ Treasury Bonds of June 1967-72 )___
2-1/2$ Treasury Bonds of Dec. 1967-72 )
7 37705
None
2-1/2$ Treasury Bonds of June 1967-72 )
2-1/2$ Treasury Bonds of Dec. 1967-72 )
Exchange as of August 1 , 1952
2-1/2$ Treasury Bonds of 1965-70 )
2-1/2$ Treasury Bonds of 1966-71 )
2-1/2$ Treasury Bonds of June 1967-72 )
2-1/2$ Treasury Bonds of Dec. 1967-72 )
Exchange as of October 1, 1952
2-1/2$ Treasury Bonds of 1965-70 )_
2-1/2$ Treasury Bonds of 1966-71 )
Exchange as of December 1» 1952
~~2-l/2$ Treasury Bonds of 1965-70 )________
2-1/2$ Treasury Bonds of 1966-71 )
2-1/2$ Treasury Bonds of June 1967-72 )___
2-1/2$ Treasury Bonds of Dec. 1967-72 )
5.31768 .
11.54372
4.60852
4.60852
Y/here installment payments are accelerated and made on dates other than the
four dates specified, accrued interest will be computed in accordance with the
follovdng daily decimals:
On bonds of 1965-70 and 1966-71 to Sept. 15, 1952 --------------- - $0.067934783
On bonds of 1965-70 and 1966-71 from Sept. 15, 1952 -------------0.069060773
On the two bonds of 1967-72 — — — ------------ *— ----------------- 0.068306011
On bonds o f B -19 75 -80 to O cto b e r 1, 1952 ---------------- ;----- — On bonds of B -1975-80 from October 1, 1952 ----------------- — —
0.075136612
0.075549451
♦IMPORTANT: For adjustments with respect to registered bonds tendered in exchange
d^ing~th (3 period the transfer books therefor are closed, see Section IV, para
graph 4 , of this circular.
m
May 5, 1952
TO ME» M K T ^ T i
The following transactions wars mads in direct and guaranteed
securities of the Government for Treasury investment and other
accounts during the month of April, 1952 s
Purchases
$21,9^8,000
S a l e s ............ . . . ...........
Het purchases
... . . .
2,087,700
$19,860,300
(%d*) K*.0« Barns#
Chief, Division of Investments
D« of I. So, 36
Wisecarver 5/5/52
TREASURY
DEPARTM ENT
Information Service
WASHINGTON, D .C
RELEASE MORNING NEWSPAPERS,
rpn^.p^y |
Apr i1
i/
'
J
'
During the month of iftfeefe, 3.952
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of r ^ M S K . .
announced today.
oOo
Secretary Snyder
TR EA SU R Y DEPARTM ENT
Information Service
WASHINGTON, D .C .
4t \JQC
RELEASE MORNING NEWSPAPERS,
Thursday, May 15s 1952•
a..
During the month of April, 1952
market transactions in direct and
guaranteed securities of the
Government for Treasury investment
and other accounts resulted in net
purchases of $19*860,300, Secretary
Snyder announced today.
oOo
053
TP
ìcans
>T s u c c e e d i n g
have built the dynamic force
Ameri c a n dem o c r a cy
America
is
work In
object Ìve
wer of its
a common
QmI
34
g e n e r a t i o n s of A m e r i c a n s have
d e v e l o p e d this c o u n t r y
into the
J W K s t r o n g e s t nation of the world,
with the highest stan d a r d of
w e l l - b e i n g for
III;.'
^
its people.
. 0 We have become a powerful
N a t i o n because we have r e c o g n i z e d
that a country can be s t rong only
when
its individual
citiz e n s are
free to work t o g e t h e r to p reserve
their persona I liberties and their
national
freedom.
In this spirit.
? d ebt m a n a g e m e n t
maintenance
p o l ic i e s w h i c h act to c o u n t e r any
p r o n o u n ce d
inflationary or
d e f l a t i o n a r y pressures.
By giving s u p p o r t to such
safeguards,
all
of us can contribute
toward m a i n t a i n i n g and exp a n d i ng
our economy,
our e n t e r p r i s e s y s t e m
and the great h e r i t a g e passed down
to us from the W i l l i a m s b u r g of
early days.
By personal
w i l l i n g ne s s
ism
«J'HS»®
iJ0
municipal
and better
deve
fac i I it ies.
To achieve the f u l l e s t results
f r o m this economic expansion,
to m a i n t a i n nati
and
ty
to be conti n u a I Iy on
alert.
We need to safeguard
of the economy
by such means as a d h e r e n ce to sound
revenue and e x p e n di t u r e p r o g r a m s
con t !
ing a t t e n t i o n to grea
f ic i€
governmental
costs
operations,
in
and
in the American economy,
era
and
is this more true than
gg A
period of
discovery.
in no
in
invention and
Our r e s o u r c e s and
production techniques stimulate a
economy as
stead iI y
our
in popu Iat io n .
, more than
At
10 m i I Iion
p e ople are being added to our domestic
four years*
r e q u i r e new
industrial
$
They
consumer
capacity,
schools,
a« .
credit.
These r e s t r i c t i o n s had
been a f a ctor
in holding down
c i v i l i a n demand t h ro u g h o u t
1951,
and their easing should aid
c i v i l i a n demand
in 1952.
L oo k i n g further ahead to a
time when the need for heavy defense
e x p e n d i t u r e s will
begin to decline,
strong supporting factors
civilian
economy will
the slack.
in the
help take up
New s t r e n g t h e n i n g
influences are c o n t i n u a l l y appearing
e x p e c t e d to be m a i n t a i n e d through
1953 and
1954.
In recent months,
w h i l e d e f e n s e p r o d u c t i o n has been
expanding,
a g r o w i n g improvement
in s u p p l i e s of many
industrial
m a t e r i a l s has m ade poss i b l e a
r e l a x a t i o n of c o n t r o I s on the
use of these m a t e r i a l s
goods,
in civilian
There has also been a
re Iaxat ion of the V o l u n t a ry Credit
Control
p r o g r a m and of the
R e g u l a t i o n W r e s t r a i n t s on consumer
- 28
t e m p o r a r i l y by the supply of goods
p r e v i o u s I y purchased.
c o n s u m e r_ § ’ p u r c h a s es
their
The fact that
in r e l a t i o n to
income have been b e l o w normal
is one of the strong factors
in
the o u t l o o k for the future.
The defense program,
scheduled,
as now
c o n t e m p la t e s a r i s i n g
trend of e x p e n d i tu r e s t h r o u g h
the present c a l en d a r year.
The
p r o g r a m will r e a c h a plateau at
the b e g i n n i n g of
1953 that may be
- 27
taxes,
in the
last six months,
were at a record
level.
Because of the
savings,
volume of
hands of
there
increase
in
is a t r e m e n d o u s
•
liquid a s s e t s now in the
individuals.
This drives
home the fact that r e l u c t a n c e on
the part of buye r s to increase their
purchases
is not p r i m a r i l y due to a
lack of money.
Their recent
h e s i t a n cy refl e c t s a d e t e r m i n a t i o n
on the part of c o n s u m e r s to gei
their m o n e y ' s worth,
fortified
- 26
c o r r e c t i o n s have already been made.
R e t a i l e r s and w h o l e s a l e r s have
gone far toward * Iiquidating their
e x c e s s i ve stocks of goods.
i
I n v e ntories of retai I stores at the
end of M a r c h were
than at the peak
14 percent
last May.
lower
The
p r o d u c t i o n of various c o ns u m e r goods
has been sharp Iy curtailed.
in the meantime,
consumer
But,
incomes
have been m a i n t a i n e d near peak
levels.
Personal
incomes after
Inventories,
p a r t i c u l a r l y those
of m a n u f a c t u r e r s , are still
high,
C o m m o d i t y prices
fairly
in general
have shown a d e c l i n i n g tend e n c y
r e c e n t months,
d u r i n g the
in
a f t e r stea d y i ng
latter half of
and c o n s u m e r d e mand
1951,
in s o m e
lines
r e c e n t l y has been d i s a p p o i n t i n g
to retaiIers.
These factors,
in my opinion,
r e p r e s e n t no m o r e than n e c e s s a r y
e c o n o m i c readjustment.
Substantial
while consume rs have been using
up their a c c u m u l at e d supplies.
- F o r t u n a t e Iy, the d e f e n s e p r o g r a m
.p
served as an e f f e c t i v e s t a b i l i zi n g
factor during this period,
and
the net result has been a general
levelling out of p r o d u c t i o n and
prices over most of the past twelve
months.
There has been some feeling'
of concern recent Iy over several
factors
in the c u r r e n t situation.
m a n y business p r ob l e m s
in its waKe.
C i v i l i a n p r o d u c t i o n was cut bacK to
adjust to demand,
a year,
and for more than
r e t a i l e r s have been
reduc ing their surpI us
inventories,
p r ices s t i m u l a t e d buying by
both c o n s u m e r s and business,
f inaIly br inging on
o v e r s t o c K ing in. many
Ear iy last year,
the
lines.
increasingly s o u n d and p r o d u c t i v e
civilian e c o n o m y ,
If we are to s u c c e e d
in our
goa I of buil d i n g up a solid
d e f e n s e against C o m m u n i s t
aggression,
we must guard
c a r e f u l i y a g a i n s t serious
weaKnesses that m i g h t j e o p a r d i z e
our economic future.
Our
is o r g a n i z e d with four principal
aims:
(I) To p r o d u c e m i l i t a r y
e q u i p m e nt for our forces
and at home,
in Korea
for aid to our allies,
and for r e s e r v e stocKs;
p r o v i d e additional
(2) to
production
Iines beyond those needed for
■ r _ ’j11
c u r r e n t military production,
be a v a i l a b l e
war;
(3)
to
in case of f u l l - s c a l e
to develop
further our
r e s o u r c e s for basic mate r i a ls ;
(4) at the same time,
and
to m a i n t a i n an
t r e m e n d o u s Iy d e pe n d a b l e plan e s of
today.
No one can fail
to have deep
r e s p e c t for a I I Amer i c a n
industry
for the g r e a t p r o d u c t i v e c a p a c i t y
has d e m o n s t r a t e d
as well as
in times of peace
in war.
That c a p a c i t y
is the chief material
national
source of our
stre n g t h and the chief
insurance of our security.
by spiritual
fail
it
strength,
BacKed
it will
never
us.
Our defense p r o d u c t i o n p r o gram
the first s i g n i f i c a n t j e t - d r i ve n
s c h e d u l e d p a s s e n g er flight.
*
ican aircraft
m a n u facturers,
But
ican d i lots
a
In
have never been
m o dern aeronautical
competition.
they usually have been far
in
forefront
I have great a d m i ra t i o n
men of the a v i a t i o n
industry
the ability to des ign
t h o u s a n d s the very
p r o d u c e by
powered,
Kill
year,
heav ier-than-a ir flight at
Devil
Hill
is o b s e r v e d next
h i s t o r i an s will
be able to
rela t e a half c e n t u r y of American
achievements
in a irborne t r a n s p o r t â t Î on
c o n s t i t u t i n g a story of world
leadership for which there are few
equaIs*
We have not,
first
to be sure » been
in e v e r y t h i n g a v i a t i o n w i s e ;
the B r i t i s h have just scooped us on
B.
.
m r -3
M m A ,:l,Q
have not
forgotten
t r e m endous
c a r r y i n g c a p a c i t y of American planes
in a i r l i f t
taught them by the
And the d e s t r u c t i v e capac i t y of
A m e r ican
ers
in c o m b a t has
given them a heaI thy respect for
Amer i c a n airm e n and Amer lean planes.
The p u r p o s e s of peaceful
livi
have been served by Ameri c a n av
Iy as s p e c t a c u l a r Iy as
ir e m e n ts of def
the
C p
the sem i-centenn ia I of the first
In the world struggle against
C o m m u n I s t dom in at Io n , the American
aircraft
industry plays an
ind ispensabIe role.
The C o mm u n i s t
d i c t a t o r s fully r e c o g n i z e
it as a
form idab Ie barrier to the ir
a g g r e s s i v e designs.
They have not
f o r g o t t en the t r e m e n d o u s output
of Amer ¡can airc r a f t plan t s
World War
in
II, when p r o d u c t i o n of
m i l i t a r y planes jumped from 6,000
in 1940 to 96,000
in 1944.
They
The fact that A m e r i c a n w o r k i n g
people have the w o r l d ’s highest
- stan d a r d of
living seems
u n b e l i e v a b l e to the advocates of
Communism.
sell
They are tryi n g to
their s y s t e m as a new and
r e v o l u t i o n a r y one;
imperialism,
but the
terrorism,
exploitation
and e x p r o p r ia t i o n of C o m m u n i s m are
as old as history.
Its threat
is
e q u a l l y against our form of
g o v e r n m e n t and our economic system.
2
I » -j
IS:r*.
all
It is a
an enterpr
and
W lm i
actions
Initiated by the c o u r a g e ou s
conscientious
generation wr
f o u n d a t io n for our free
s y s t e m has carried this
ind iv *
plenty.
The d e m o n s t r a t e d
product iveness of the e n t e r p r is e
s y s t e m has a
ent ire
io n .
— II —
Near here,
first successful
at Jamestown,
the
E n g l i s h colony
on this c o n t i n e n t was established.
At Y o r k t o w n , the end of the Isr
for
I n d ependence
launched our
N a t i o n on a steady course of
p r o g r e s s that has b r o u g h t this
C o u n t r y to
its high soc ia I and
econo m i c d e v e l o p me n t today.
Our economic s y s t e m has often
d e s c r i b ed as a cap itaIi st ic
system,
but
it is far more than that.
as i center of political
p a t r i o t i c activity..
t h o u g h t and
Here was
d e v e l o p e d much of the thinking
embodied
Rights,
in the Virg i n i a BiI I of
which stron g l y
the D e c l a r a t i o n of
influenced
I n dependence and
the C o n s t i t u t i o n of the United
States.
spirit of
freedom,
Here was d e v e l o p ed the
i n dependence and personal
which has played such a
d o m in a n t part
a Nation.
in our progress as
- I .
closer
#
,
#
the
in spir»
Ideals
m o t i v a t e d the o b j e c t i v e s of the people
of this c o u n t r y
throughout
its history.
Through the halls of the o r i g i n a l s
of these b u i l d i n g s sounded the steps
and the voices of George Washington,
Thomas Jefferson,
P a t r i c k H e n r y , and
many others who helped to shape the
y e ï 11ny
our N a t i o n
Williamsburg,
the capital
city of the most p r o s p e r o u s of
r i11sh colonies,
was
o u t s t a n d Ing
8
over the past year have helped
put an effective damper on
inflationary pressures.
And the
reserve of purchasing power they
have built up will help provide
' strong resistance against any
possible business setback in
future years.
As we meet today in this
historic city, so near to the scenes
of outstanding events in early
America, we are brought a little
-
?
f i n a n c i n g drive
it i
’f icant that
In
d é n o m m â t ions,
£ bonas of
but
in
forms of thri
s is in
savIngs
over-a
to e n c o u r a g e thrift
as a national
habit.
been a c c u m u l a t i n g
ê
payroll
s a v i n g s plan,
h i g h e r than
were 36 percent
In the same quarter of
1950', b e fore Korea.
City after city
across the country d u r i n g the past
y e a r ■has q u a l i f i ed to win a Treasury
flag for the e x p a n s i o n of the
Payroll
Savings Plan among
its
b u s i n e s s firms.
Today,
the total
cash value of
| bonds owned by individuals has
r e a c h e d a record
high of almost
This
is $4 billion
Knowing that they have aided in
m a i n t a i n i n g the Nat ion's e c o n o m ic
stabiIi t y .
In our savings bona program,
we are c o ming to rely more and more
on the payroiI
savings pian because
«
it is a d m i r a b l y adapted to the
financial
needs of w o r k i n g people.
D u r i n g the first q u a r t e r of this
year,
sales of bonds
den o m i n at i o n s ,
in $25 and $50
w h ic h are bought
largely by savers t h r o u g h the
GO
in all
history,
the U n i t e d States
S a v i n g s Bona program.
I espe c i a ll y
General
Echols,
his experience,
thank Major
who so ably
lent
his prestige,
e x e c u t i v e ability,
his
and much of his
time and energy to the successful
m a n a g e m e n t of this campaign.
to your President,
Admiral
And
Ramsey,
go my sincere than k s for his
c o o p e r a t i v e support and assistance.
The workers
in your plants,
\
\*
2 -
the most successful
industry-wide
c a m p a i g n s we nave undertaken.
a result of your efforts,
125,000 n e w payroll
As
more than
s a v e r s nave been
adaed to the rolls.
s
On benalf of the Treasury
Department,
Î extend to you our
congratuI ations on this s p l e n d i d
achievement.
You can take pride
in tne fact trial you have m a d ® such
a s i g n i f i c a n t c o n t r i b u t i o n to the
g r e a t e s t o r g a n i z e d t h r i f t prog r a m
I
The following address, to be delivered for
Secretary of the Treasury John W. Snyder by
Assistant Secretary Andrew N. Overby, before
the Aircraft Industries Association at the
Williams bur g^Inn^J^Jl^liams bur g , Virginia,
is scheduled for^2:30 p.m.EDT (1:30 p.m.EST)»
Thursday, May 15, 1952, and is for release at
that time.
2*
TREASURY DEPARTMENT
Washington
The following address, to be delivered for
Secretary of the Treasury John W. Snyder
by Assistant Secretary Andrew N. Overby,
before the Aircraft Industries Association
at the Williamsburg Inn, Williamsburg,
Virginia, is scheduled for presentation at
2;30 P . m . EDT ~p-■:30 P >m. E S T ), Thursday,__
M ay 15, 195^j and is for release at that t i m e .
BUSINESS FACTORS IN A DEFENSE ECONOMY
When I was asked to talk at this meeting of the Aircraft
Industries Association, the invitation was very welcome because
it gave me an opportunity to thank you in person for the
remarkable work your member firms have done in promoting the
payroll savings plan among your employees.
The payroll savings
campaign in the aircraft industry has proved to be one of the
most successful industry-wide campaigns we have undertaken. As
a result of your efforts, more than 1 2 5 ,0 0 0 new payroll savers
have been added to the r o l l s .
On behalf of the Treasury Department, I extend to you our
congratulations on this splendid achievement. Yo u can take pride
in the fact that you have made such a significant contribution to
the greatest organized thrift program in all history, the
United States Savings Bond program.
I especially thank Major General Echols, who so ably lent
his experience, his prestige, his executive ability, and much
of his time and energy to the successful management of this
campaign. And to your President, Admiral Ramsey, go my sincere
thanks for his cooperative support and assistance.
S-3054
2
The vorkers in your plants, too, are to be complimented on
taking this important step toward building a financial reserve
for their future.
In the years ahead, the backlog of savings
represented by the bonds they are purchasing will mean greater
financial security for their families, more educational
opportunities for their children, and an assurance of available
funds for future needs. Your workers will also have the
satisfaction of knowing that they have aided in maintaining the
Nation’s economic stability.
In our savings bond program, we are coming to rely more and
more on the payroll savings plan because it is admirably adapted
to the financial needs of working people. During the firsts
quarter of this year, sales of bonds in $25 and $50 denominations,
which are bought largely by savers through the payroll savings
plan, were 36 percent higher than in the same quarter of 19 5 0 ,
before Korea. City after city across the country during the
past year has qualified to win a Treasury flag for the expansion
of the Payroll Savings Plan among its business firms.
Today, the total cash value of E bonds owned by individuals
has reached a record high of almost $35 billion.
This is
$*[ billion higher than at the end of the last wartime financing
drive.
It is significant that increased savings are reflected not
only in E bonds of the smaller denominations, but in other forms
of thrift as well, including savings bank deposits.
This is in
line with the over-all objective of the savings bond program to
encourage thrift as a national habit.
The savings which people
have been accumulating over the past year have helped put an
effective damper on inflationary pressures. And the reserve of
purchasing power they have built up will help provide strong
resistance against any possible business setback in future years.
As we meet today in this historic city, so near to the scenes
of outstanding events in early America, we are brought a little
closer in spirit to the ideals that motivated the objectives of
the people of this country throughout its history.
Through the
halls of the originals of these buildings sounded the steps and
the voices of George Washington, Thomas Jefferson, Patrick Henry,
and many others who helped to shape the destiny of our Nation.
- 3 Williamsburg, the capital city of the most prosperous of
the British colonies, was long outstanding as a center of
political thought and patriotic activity. Here was developed
much of the thinking embodied in the Virginia Bill of Rights,
which strongly influenced the Declaration of Independence and
the Constitution of the United States. Here was developed the
spirit of independence and personal freedom, which has played
such a dominant part in our progress as a Nation.
Near here, at Jamestown, the first successful English colony
on this continent was established.
At Yorktown, the end of the
War for Ind.ependence launched our Nation on a steady course of
progress that has brought this Country to its high social and
economic development today.
Our economic system has often been described as a
capitalistic system, but it is far more than that.
It is above
all an enterprise system.
The tide of ideas and actions initiated
by the courageous and conscientious men of that earlier
generation who helped lay the foundation for our free enterprise
system has carried this Nation onward toward individual freedom
and plenty.
The demonstrated productiveness of the enterprise
system has advanced the welfare of the entire Nation.
The fact that American working people have the world's
highest standard of living seems unbelievable to the advocates
of Communism.
They are trying to sell their system as a new and
revolutionary one; but the imperialism, terrorism, exploitation
and expropriation of Communism are as old as history.
Its
threat is equally against our form of government and our economic
system.
In the world struggle against Communist domination, the
American aircraft industry plays an indispensable r o l e . The
Communist dictators fully recognize it as a formidable barrier
to their aggressive designs.
They have not forgotten the
tremendous output of American aircraft plants in World War II,
when production of military planes jumped from 6,000 in 1940
to 96,000 in 1944.
They have not forgotten the tremendous
carrying capacity of American planes, taught them by the Berlin
airlift. And the destructive capacity of American bombers in
combat has given them a healthy respect for American airmen and
American p l a n e s .
cqp
w
- 4 The purposes of peaceful living have been served by American
aviation fully as spectacularly as have the requirements of
defense.
When the semi-centennial of the first powered/
heavier-than-air flight at Kill Devil Hill is observed next
year, historians will be able to relate a half century of
American achievements in airborne transportation constituting
a story of world leadership for which there are few equals.
We have not, to be sure, been first in everything
aviationwise; the British have just scooped us on the first
significant jet-driven scheduled passenger flight.
But American
aircraft designers and manufacturers, and American pilots, have
never been very far behind in modern aeronautical competition.
And they usually have been far in the forefront.
I have great admiration for the men of the aviation industry
who have the ability to design and produce by thousands the very
fast and tremendously dependable planes of today.
No one can
fail to have deep respect for all American industry for the great
productive capacity it has demonstrated in times of peace as well
as in war.
That capacity is the chief material source of our
national strength and the chief insurance of our security.
Backed
by spiritual strength, it will never fail u s .
Our defense production program is organized with four
principal aims:
(l) To produce military equipment for our forces
in Korea and at home, for aid to our allies, and for reserve
stocks; (2) to provide additional production lines beyond those
needed for current military production, to be available in case
of full-scale war: (3) to develop further our resources for basic
materials; and (4) at the same time, to maintain an increasingly
sound and productive civilian economy.
If we are to succeed in our goal of building up a solid
defense against Communist aggression, we must guard carefully
against serious weaknesses that might jeopardize our economic
future.
Our capacity for producing civilian goods should be
utilized as fully as possible, consistent with needs of the
defense program.
Only in this way can we maintain the highest
amount of personal and business income and maintain a resilient
civilian economy for any possible future war emergency.
r.
37
5
After the outbreak of hostilities in Korea, rising prices
stimulated buying by both consumers and business, finally
bringing on overstocking in many lines. Early last year, the
general buying wave was brought to a halt, but it left many
business problems in its wake. Civilian production was cut back
to adjust to demand,and for more than a year, retailers have been
reducing their surplus inventories, while consumers have been
using up their accumulated supplies. Fortunately, the defense
program served as an effective stabilizing factor during this
period, and the net result has been a general levelling out of
production and prices over most of the past twelve months.
There has been some feeling of concern recently over several
factors in the current situation.
Inventories, particularly those
of manufacturers, are still fairly high. Commodity prices in
general have shown a declining tendency in recent months, after
steadying during the latter half of 1 9 5 1 * and consumer demand in
some lines recently has been disappointing to retailers.
These factors, in my opinion, represent no more than necessary
economic readjustment.
Substantial corrections have already been
made. Retailers and wholesalers have gone far toward liquidating
their excessive stocks of goods. Inventories of retail stores
at the end of March were 14 percent lower than at the peak last
May. The production of various consumer goods has been sharply
curtailed. But, in the meantime, consumer incomes have been
maintained near peak levels.
Personal incomes after taxes, in
the last six months, were at a record level.
Because of the increase in savings, there is a tremendous
volume of liquid assets now in the hands of individuals. This
drives home the fact that reluctance on the part of buyers to
increase their purchases is not primarily due to a lack of money.
Their recent hesitancy reflects a determination on the part of
consumers to get their money’s worth, fortified temporarily by
the supply of goods previously purchased. The fact that
consumers’ purchases in relation to their income have been below
normal is one of the strong factors in the outlook for the future.
The defense program, as now scheduled, contemplates a rising
trend of expenditures through the present calendar year. The
program will reach a plateau at the beginning of 1953 that may
be expected to be maintained through 1953 and 1954. In recent
months, while defense production has been expanding, a growing
improvement in supplies of many industrial materials has made
-
6
-
possible a relaxation of controls on the use of these materials
in cj.vilian goods . There has also been a relaxation of the
Voluntary Credit Control program and of the Regulation W
restraints on consumer credit.
These restrictions had been
a factor in holding down civilian demand throughout 1951* and
their easing should aid civilian demand in 1 9 5 2 .
Looking further ahead to a time when the need for heavy
defense expenditures will begin to decline, strong supporting
factors in the civilian economy will help take up the slack.
New strengthening influep.ees are continually appearing in the
American economy, and in no era is this more true than in the
present period of invention and discovery.
Our resources and
production techniques stimulate a steadily expanding economy as
does our rapid growth in population.
At the present time, more
than 10 million people are being added to our domestic market
every four years.
They require new homes, new consumer goods,
new Industrial capacity, schools, municipal development, new
and better highways and transportation facilities.
To achieve the fullest results from this economic expansion,
and to maintain national propserity, we need to be continually on
the alert.
We need to safeguard the health and soundness of the
economy by such means as adherence to sound revenue and
expenditure programs, continuing attention to greater efficiency
and lower costs in .governmental operations, and the maintenance
of debt management policies which act to counter any pronounced
inflationary or deflationary pressures.
By giving support to such safeguards, all of us can
contribute toward maintaining and expanding our economy, our
enterprise system and the groat heritage passed down to us from
the Williamsburg of early days.
By personal willingness to
protect that heritage, successive generations of Americans have
developed this country into the strongest nation of the world,
with the highest standard of well-being for its p e o p l e .
We have become a powerful Nation because we have recognized
that a country can be strong only when its individual citizens are
free to work together to preserve their personal liberties and
their national freedom.
In this spirit, Americans of succeeding
generations have built the dynamic force of American democracy.
The power of America is the power of its people working together
towards a common objective.
oOo
Under Secretary Foley introduced a number of
distinguished guests, and then presented Commissioner of
In tern a l Revenue Dunlap, Executive Director L .A . Moyer
of the United States C iv il Service Commission, and Secretary
of the Treasury John W. Snyder in that order as speakers*
t
The Under Secretary noted that
Mr. Dunlap
fgm wa Texan who has earned in a comparatively short time
recognition as a very able Commissioner of Internal Revenue.”
He referred to the fa c t that Mr. Mojrer is WSL a veteran
o f f i c i a l of the C iv il Service Commission, having served in i t since
1914, and now holds the highest career post in that agency.
He spoke of Secretary Snyder as ttthe man who has
motivated reorganization of the Revenue Service from the very
s t a r t , and with a combination of patience and firm resolve
has seen i t through to accomplishment.*
your cooperation may properly be regarded as manifesting
your complete approval of the improved procedures» the
forward-looking personnel policy» the advanced design
for operating efficiency» and the A)uilt-la^ assurances of
trustworthy performance which the Reorganisation flan
provides *
1 am confident» and X know Secretary Snyder is
confident» that your and our expectations in these respects
S/
Iscathe course of this morning’h program» X
venue
John p. Dunlap, Executive Director L. A* Moyezy of the United
States Civil Service Ccpfimlsslon» and Secretary Snyder» whom
dfieance of this
exception of a single office —
that of the Commissioner
of Internal Revenue — it call# for complete conversion
of the Bureau into a strictly career service*
\V
The schedule under which we are operating calls for
that conversion to he completed by the end of this year.
To effectuate this schedule, the installations of new
Revenue Service officials which we are about to witness
here in Illinois will be repeated in hey localities all over
the country in the coming months.
itf
w
thou, I want to express to the people
of Chicago and of Illinois^the feliawEb uf
mysel f 7"Cuamieejbeaei;*
Deere.tayy
lEayder,-
otto *1 Treasury peupTt*
'inravrim ' m b & m r the cooperation which has been
arranging for these installation ceremonies*
us in
1 am sure that
ExecutiveÆlrector Moyer
Mr. Secreti
.ssioner
Dunlap, Judge LaBuy, D l ä z v l e t Commi s s I o m t Wright, Director
Director Somber, dlstinguiaifed guests, tritisene of
Tai
Chicago and I!
tola
\\
The purpose of this gathering Is to formally institute
foM^r $i*j^ to*
y\ the reorganisation of the field service of the Bureau of
Internal Revenue in accordance with the President's Reorgan
isation Plan Mo. 1 of 1952.
\VAs
you Jcnow, this plan, on the recommendation of
Secretary Snyder, was submitted to Congress by the President
early In January, and was given overwhelming Congressional
' The reorganisation embodies one of the most progressive
steps in^Oovernaent In the history of this country.
With the
Info Service heading
Release 10:30 A.M. CDT (11:30 A.M. EDT)
Tues day , May 20, 1952
—
S-
Chicago, 111., May 20 - j ^
^^00*0*0**™***.. .
*Under Secretary of the Treasury Edward H. Foley said
todqgy
in opening the ceremonies for in s ta lla tio n of
o f f i c i a ls of the reorganized In tern al Revenue Service for
Illin o is :
RELEASE 10:30 A.M. CDT (11:30 A.M. E D T )
Tuesday, May 20, 1932.__________________ S-3055
Chicago, Illinois, May 20 -- Under Secretary of the Treasury
Edward H. Foley said today in opening the ceremonies for
installation of officials of the reorganized Internal Revenue
Service for Illinois:
"The purpose of this gathering is to formally
institute the first steps in the reorganization of
the field service of the Bureau of Internal Revenue
in accordance with the President's Reorganization
Plan No. 1 of 1952.
"As you know, this plan, on the recommendation of
Secretary Snyder, was submitted to Congress by the
President early in January, and was given overwhelming
Congressional approval.
"The reorganization embodies one of the most
progressive steps in good Government in the history
of this country. With the exception of a single
office -- that of the Commissioner of Internal
Revenue -- it calls for complete conversion of the
Bureau into a strictly career service .
"The schedule under which we are operating calls
for that conversion to be completed by the end of this
year. To effectuate this schedule, the installations
of new Revenue Service officials which we are about
to witness here in Illinois will be repeated in key
localities all over the country in the coming months.
"I want to express to the people of Chicago and
of Illinois our appreciation of the cooperation which
has been accorded us in arranging for these
installation ceremonies/. I am sure that your
cooperation may properly be regarded as manifesting
your complete approval of the improved procedures, the
forward-looking personnel policy, the advanced design
for operating efficiency, and the 'built-in' assurances
of trustworthy performance which the Reorganization Plan
provides.
- 2 -
”1 am confident, and I know Secretary Snyder
is confident, that your apd our expectations in
these respects will he realized in very gratifying
measure."
Under Secretary Foley introduced a number of distinguished
guests, and then presented Commissioner of Internal Revenue
Dunlap, Executive Director L. A. Moyer of the United States
Civil Service Commission, and Secretary of the Treasury
John ¥. Snyder in that order as speakers.
The Under Secretary noted that Mr. Dunlap is "a Texan
who has earned in a comparatively short time recognition
as a very able Commissioner of Internal Revenue.”
He referred to the fact that Mr. Moyer is a veteran official
of the Civil Service Commission, having served in it since 1914,
and now holds the highest career post in that agency.
He spoke of Secretary Snyder as "the man who ha s motivated
reorganization of the Revenue Service from the very start, and
with a combination of patience and firm resolve has seen it
through to accomplishment."
0O0
g u a r a n t e e of the c o n t i n u e d success
of our v o l u n t a r y s y s t e m of t a x p a y e r
^
. .
comp I lance.
( fiu .A
J f i k j f s m U 0
AU
iji
^
$
A
‘'vy ' <
\\ | have h i g h l i g h t e d here today
many of the p r o b l e m s w h i c h have faced
t h e ^ B u r e a u of
Internal Revenue,
* JU t\
¡ .M ^
the actions gm* chave. t i w e n
A
its services.
to
and
improve
All the steps lexer -gap
un’y1'itewie
clur Ing t h e
past six y e a r s . p a v e d the way for
a d o p t i o n of the P r e s i d e n t ’s
R e o r g a n i z a t i o n Plan.
J am c o n f i d e n t
that the t a x p a y e r s of
Illinois » H i
8
that kind of service.
succumbed In the past
(ixMAJ
1 f■t
-ft#
A
clw
Ken positive
Iff
steps to eliminate those employees
who have failed In their public
l
trust,&&<►•
fully * with
/v have cooperated
* " >
W\
&0
Congress Iona I ipFoups
y,yj<ly
J
^
4
'j) xu! ,
The American people are entitled
to a revenue service of top'efficiency,
of unquestioned Integrity, and of
maximum operating economy,
Ma intenance
of such a service is the strongest
succumbed
in the past.
The Treasury
and the B u reau have taken positive
steps to e l i m i n a t e those e m p l o y e e s
who have failed
trust.
ail
in their public
We have c o o p e r a t e d f u l l y with
c o n g r e s s ÌonaI
investigati ve
%
jp Igli *r . {g
g r o u p s ana will c o n t i n u e to do so.
The American people are entitled
to a r e v e n u e service of top efficiency,
of u n q u e s t i o n e d
integrity, and of
m a x i m u m o p e r a t i n g economy.
of such a service
Maintenance
is the s t r o n g e s t
I
I
' The reorganisation »III
streamline revenue ooerations,
p In-polnt responsiblIIty and
authority, and tighten up the whole
structure of the Bureau.
The
estab't Ishment of a new, independent
Inspection service, with i day-to-day
checK on employe# conduct and all of
the other operations of the Bureau of
Internal Revenue, will help remove
temptations to which, unfortunate!y »
some revenue service employees have
fuIf i iImtnt the
intensive s t u d i e s
und e f f o r t s we have m ade s i n c e
when the m a n a g e m e n t
improvement
p r o g r a m was first begun.
to p r o v i d i ng
|
In a d d i t i o n
improved o r g a n i c a t l o n s I
s t r u c t u r e for the e n t i r e Bureau,
the
new reorganljrstl®« p l a n will assist
the-b u r e a u in perform.»rig a more -
I
thorough audit o f all tyoes of returns. I
This,
in turn, will
to d e v o t e still
enable the bureau
further e f fort to
a p p r e h e n d r a c n e t e e r s and other tax
dodgers,
|
;
lection and
in e f f i c i e nc y
are a source of
have
pride to us all.
want to extend congratuI at ions
Î shed
u n der
Ìcu 11 ci rcu
7
so
enthuslast lea Ily
contributed to the successful
outcome of the taste:« Including
¿ongressional groups*.the personnel
of the revenue service, consultants
of business.management firms, end
others »ho-sided us In various
advisory capacities.
All who htve
tided in this tasK have shown
renrsarxable Initiative, ingenuity and
efficiency, and it must be remembered"
that the job had to be done
expenses. Improved services for the
taxpayers, and a »ore effective
and equitable collection of the
revenues#
a i{
these Iatprov events
have taxon time to plan and Install.
©■ ^ The years 1950 and IHII wtrt a
period for testing and study of the
many Improvements that had already
been
still
\|
will
and the development of
further organlzatIona I a d v a n c e s
' The record is caw*r as to
actions taxon.
#
*
I »ant to thanx til
expenses,
taxpayers,
improved s e r v i c e s for
and a more effective
and e q u i t a b l e c o l l e c t i o n of the
revenues.
AIf t h e s e
i m p r o v e me n t s
have taken time to plan and install.
The years
i§50 and
period for t e s t i n g
many
1951 were a
and study of the
improvements that had a l r e a d y
been made and the d e v e l o p m e n t of
still f u r t h e r o r g a nizational
The r e c o r d
advances
Is Impressive as to
the actions taken.
I w ant to thank a 11
3 3
sîflîplîflcatlons in îts accounting
system,
i
The Alcohol and Tobacco Tax
Divisions of the Bureau were
subsequently consoI{dated, an
Independent Inspection service was
established within the Bureau, and
Its Income Tax Division was reorganized
These and the many other
improvements which we have made
.*
since
I9&6 have resulted In the saving of
\
millions of dollars In operating
tässssMm
19
-
of j/ongressfonaI
-
groups.
Immediate
steps were taxer to effect
improvements
and we also b e g a n then to plan c h a nges
in the f?ureau*s organ I ¡rational
structure.
but very
One of the m any
incidental
important b e n e f i t s which
r e s u l t e d from this c o n c e n t r a t e d drive
was the a d o p t i o n of m o d e r n tabulating
e q u i p m e n t to handle the g r e a t v o lume of
income tax returns
in the
larger
Co I lectors' O ffices.
\l O u r next step
was my r e c o m m e n d s tio
iiw i
- IT In 194?,
Many t h o u s a n d s of m a n - h o u r s
of feorK w e r e saved as a r e s u l t of
s u g g e s t i o n s for
improved o p e r a t i ng
m e t h o d s made by the B u r e a u ’s employees
\ Although
the worK-simp I If l e a n on
p r o g r a m brought
in the a c c u m u l a t e d
K n o w l e d g e of the r a n K a n d file
e m p l o y e e s of the Bureau,
It w a s c l e a r
that s c o n c e n t r e ted drive by the
d e p a r t m en t a l
and field o f f i c e r s
the B u r e a u w a s n e e d e d to p r o d u c e
structural
a s -well as o p e r a t i n g
Giving csreful
c o n s t d e r a t i o n to
these facts, w e u n d e r t o o k a p r o g r a m
of m a n a g e m e n t
improvement
in the Sur (ft$
On O c t o b e r lift of t hat year, an
rder was a d d r e s s e d to a Ii o f f i c i a l s
of th# Treasury D e p a r t m e n t
in r e g a r d
to s t r e a m l i n i n g o p e r a t i o n s and
effecting other administrative
imp rove me-nt 5.
on N o v e m b e r
This
15th by the establishment
of a Special C o m m i t t e e on
Administration
in t h e B u r e a u of
13 changes
In the Bureau *s o r g a n i z a t i o n
and o p e r a t i o n s s h ould be wade
without disturbing
its vital
d a y - t o - d a y f u n c t i o n s of c o l l e c t i n g
r e v e n u e s and e n f o r c i n g
laws.
the tax
Every c h a n g e wade
in its
o p e r a t i o n s n e c e s s a r i l y had to be
carefully
proposal
thought out,
and every
had to r e c e i v e d e t a i l e d
study before
it could be
' In order to
initiated.
lay the f o u n dation
for a b u r e a u - w i d e a p p r o a c h to solving
12
W
When
Treasury
I assumed office
in
1946,
that the Internal
required
in the
it was e v i d e n t
R e v e n u e serv i c e
improved m a n a g e m e n t
t e c h n i q u e s and n e w , more e f f i c i e n t
o p e r a t i n g m e t h o d s and procedures,
to enable
its vastly
it to h a ndle properly
increased worl^oad.
M o d e r n b u s i n e s s m a c h i n e r y and
e q u i p m e n t had not been a v a i l a b l e
to the Bureau t h r o u g h ou t the war
It was
important
that any postwar
B u r e a u ’s tax c o l l e c t i o n m a c h i n e r y
has had to b e r e - g e a r e d
to f o u r
m a j o r tax e n a c t m e n t s of C o n g r e s s
d u r i n g the past year.
the e x p a n d e d Social
of
These are
S e c u r i t y Act
1350, the Excess P r o f i t s Tax
Act of
Acts of
1350, and the R e v enue
1350 and
I f f 1.
There has
also been a c o r r e s p o n d i n g
increase
in the n u m b e r of tax a p p e a l s and
in the a m ount of tax
litigation
w h i c h the Bureau must handle.
U" 3
4MÉ)
many n e w tasks and additional
p r o b l e m s for the Bureau of Internal
Revenue,
including mass tax
r e f u n d i n g operations.
The Excess
P r o f i t s Tax and the Wagering
nave also
increased
Tax
the B u r e a u ’s
burden.
New tax
legislation enactea by
the C o n g r e s s d u r i n g the past year to
finance d e f e n s e e x p e n d i t u r e s has
further added m a t e r i a l l y to the
tasks of the r e v e n u e service.
The
volume of taxes the Bureau c o l l e c t s
is n o w ten times g r e a t e r
amount.
in d o l l a r
N inety m i l l i o n r e t u r n s and
o t h e r tax forms are now p r o c e s s e d
by t h e B u r e a u annually.
\
This
increased w o r k load has
b een b r o u g h t about by the g r e a t
rise
in the personal
Income of
AinerJcan c i t i z e n s w h i c h has increased
the n u m b e r of taxpayers.
of the personal
Broadening
income tax b a s e and
w age and salary w i t h h o l d i n g s c r e a t e d
years.
The great
Increase
in
n u m b e r of tax r e t u r n s filed,
c o m m e n c i n g curi n g WorId War
i
placed a trem e n d ou s burden on
B u reau *s c o l l e c t i o n and audit
machinery.
The n u m b e r of tax
r e t u r n s filed has
f o u r-fold
increased
in ten years,
and t
II
• 7 Plan
into effect t h r o u g h o u t the
U n i t e d States,
feaer&l
it will
taxpayers
provide
in the State of
Illinois with the most e f f i c i e n t
tax c o l l e c t i o n s y s t e m
in the history
of the Bureau of internal
it will
serve as a model
Revenue,
for the
i n stallation of r e o r g a n i z e d
R e v e n u e D i s t r i c t s which will
internal
he
e s t a b l i s h e d thro u g h ou t the country.
J The reorgan ization plan for
the Bureau
is the c u l m i n a t i o n of a
their s e r v i c e s
the
initial
in
r o v i s i o n s of the Bres
Internal
Revenue Bur
îzat ion
E f fect ive
of the P r e s i d e n t ' s
F t
Inì
p Ì& n ,
offices
under
in Illinois
now will
_ ...
jpiTiirinmiiinr
ision of a D i r e c t o r of
s
hevenue.
©^
ices
these two c i ties wiI I not
the ir
locati ons
§
in
or"7
0 VI)
- 4 This c e r e m o n y today will
place
in
offi c e a D i s t r i c t C o m m i s s i o n e r of
Internal
Revenue for
two D i r e c t o r s of
Illinois,
Internal
whose h e a d q u a r t e r s will
in C h i c a g o and
and
Revenue,
be
iocated
in Springfield.
\\ prior to a d o p t i o n of the
P r e s i d e n t * s R e o r g a n i z a t i o n Flan
No.
I of
1952,
there have been
iTrt r -four C o l l e c t o r s of
Internal
R e v e n u e O f f i c e s t h r o u g h o u t the
U n i t e d States,
with at
b T
least
provide
improved Federal
tax
c o l l e c t i o n s e r v i c e s for the n e wly
reorganized
internal
Revenue
D i s t r i c t of I I I inois.
\\
v F r o m the s t a n d p o i n t of the
n u m b e r of tax r e t u r n s r e c e i v e d and
processed,
the C h i c a g o office
c o n s t i t u t e s the
internal
largest single
R e v e n u e Offi c e
C o u n t r y , and
in the
Illinois ranks f o u r t h
111
among the forty-ei g M
' : ¡¡I ' Iftf f| I H ' '■
states
v;■!
in the
H
n u m b e r of tax r e t u r n s handled.
1
üistrict
Internal
in thè U n i t e d Sta
insta Ileo
in th is c i t y .
I t wi l l
I#ad îrtg r e p r e s e n tat ives of the
courts,
of the Congress,
of Federal
state and
local governments,
of the
churches,
the a c c o u n t i n g and
legal
professions,
of b a n k i n g and
business, a n d the press.
Today,
in a c c o r d a n c e with the P r e s i d e n t ' s
R e o r g a n i z a t i o n Plan for the B u r e a u
of
Internal
District
Revenue,
internal
initial
Revenue Office
in the U n i t e d Stat e s
installed
the
is b e i n g
in this city.
It will
oppo r t u n î
ceremonies
Illinois and
Info service heading
Release 10:30 AJ k J S B ! L l l l : 30 A.M. EDT)
Tuesday, May 20,
1952~
~~~--------k
y
i
Chicago, I ll.,s M a y 20 - Secretary of the Treasury
/<
John W. Snyder said t H a y ,i n
i f t i m
a
a
i fliy
in discussing "A R ev italized In térn al Revenue S e rv ic e "
ceremonies for the in s ta lla tio n of o ff ic ia ls of the
A
reorganized Internal Revenue Service WÊB3L in I lli n o i s :
at
TREASURY
DEPARTMENT
Information Service
WASHINGTON, D .C .
Release lOQO A.M. CPT (lli.30 A.M. EOT)
Tuesday, May 20, Ilffig
Chicago, Illinois, May 20 - Secretary of the Treasury John ¥. Snyder
said today, in discussing "A Revitalized Internal Revenue Service" at
ceremonies here for the installation of officials of the reorganized Internal
Revenue Service in Illinoisj
"On behalf of the Treasury Department, we welcome this opportunity to
hold these ceremonies in the State of Illinois and the City of Chicago»
,l¥e are highly honored to have here with us on this occasion so many
distinguished citizens of this city, State and Nation. Among those who
have gathered with us to share in this significant event are leading
representatives of the courts, of the Congress, of Federal, state and local
governments, of the churches, the accounting and legal professions, of
banking and business, and the press. Today, in accordance with the
Presidentfs Reorganization Plan for the Bureau of Internal Revenue, the
initial District Internal Revenue Officfe in the United States is being
installed in this city. It will provide improved Federal tax collection
services for the newly reorganized Internal Revenue District of Illinois«
"From the standpoint of the number of tax returns received and
processed, the Chicago office constitutes the largest single Internal
Revenue Office in the country, and Illinois ranks fourth among the U8
states in the number of tax returns handled. This ceremony today will
place in office a District Commissioner of Internal Revenue for Illinois,
and two Directors of Internal Revenue, whose headquarters will be located
in Chicago and in Springfield,
"Prior to adoption of the President*s Reorganization Plan No. 1 of
19£2, there have been 6U Collectors of Internal Revenue Offices throughout
the United States, with at least one Collector*s Office in each state.
Illinois has had two such offices, one located in Chicago and the other in
Springfield, Effective today, with the adoption of the President*s
Reorganization Plan, each of these two revenue offices in Illinois now will
be under the supervision of a Director of Internal Revenue. The offices in
these two cities will not be removed from their present locations, and their
services to the taxpayers will be improved, not curtailed. Additional
revenue services will be installed in each of the two Directors* Offices,
including the audit operations of Internal Revenue Agents, and the
Intelligence facilities of the Bureau*s special agents.
‘»This event in Chicago today is the initial operation in putting the
provisions of the President?s Internal Revenue Bureau Reorganization Plan
into effect throughout the United States* It will provide Federal tax
payers in the State of Illinois with the most efficient tax collection
system in the history of the Bureau of Internal Revenue» It will serve as
a model for the installation of reorganized Internal Revenue Districts
which will be established throughout the country«,
“The reorganization plan for the Bureau is the culmination of a long
series of actions taken by the Treasury Department to improve and stream
line the Federal tax collection system during the past six years* The
great increase in the number of tax returns filed, commencing during World
War II, placed a tremendous burden on the Bureau*s collection and auditing
machinery* The number of tax returns filed has increased four-fold in ten
years, and the volume of taxes the Bureau collects is now ten times greater
in dollar amount. Ninety million returns and other tax forms are now
processed by the Bureau annually»
“This increased work load has been brought about by the great rise
in the personal income of American citizens which has increased the number
of taxpayerSo Broadening of the personal income tax base and wage and
salary withholdings created many new tasks and additional problems for the
Bureau of Internal Revenue, including mass tax refunding operations* The
Excess Profits Tax and the Wagering Tax have also increased the Bureau*s
burden*
“New tax legislation enacted by the Congress during the past year to
finance defense expenditures has further added materially to the tasks of
the revenue service* The Bureau*s tax collection machinery has had to be
re-geared to four major tax enactments of Congress during the pact year.
These are the expanded Social Security Act of 1950, the Excess Profits Tax
Act of 1950, and the Revenue Acts of 1950 and 1951« There has also been a
corresponding increase in the number of tax appeals and in the amount of
tax litigation which the Bureau must handle.
“When I assumed office in the Treasury in 19l|6, it was evident that
the Internal Revenue service required improved management techniques and
new, more efficient operating methods and procedures, to enable., it to
handle properly its vastly increased work load© Modern business machinery
and equipment had not been available to the Bureau throughout the war. It
was important that any postwar changes in the Bureau*s organization and
operations should be made without disturbing its vital day-to-day functions
of collecting revenues and enforcing the tax laws© Every change made in
its operations necessarily had to be carefully thought out, and every
proposal had to receive detailed study before it could be initiated.
“In order to lay the foundation for a bureau-wide approach to solving
these managerial and operational problems, a conference with all Collectors
of Internal Revenue and Revenue Agents in Charge was conducted in Washington
on October 7 - 9, 19U6. At this conference,many of the basic difficulties
were discussed and pertinent facts as to necessary reorganization steps to
be taken were explored*
w
3
"Giving careful consideration to these facts, we undertook a program
of management improvement in the Bureau«
"On October 31st of that year, an order was addressed to all officials
of the Treasury Department in regard to streamlining operations and
effecting other administrative improvements« This order was followed on
November l£th by the establishment of a Special Committee on Administration
in the Bureau of Internal Revenue0 As a first step, a work-simplification
program was introduced on a trial basis® This program was designed to
utilize the knowledge and experience of every employee to improve the
Bureau*s efficiency* This was only the first of many steps on the road
to reorganization of the Bureau# The work-simplification program was
officially adopted and expanded to include the entire revenue service in
19)47• Many thousands of man-hours of work were saved as a result of
suggestions for improved operating methods made by the Bureau*s employees«
"Although the work-simplification program brought in the accumulated
knowledge of the rank and file employees of the Bureau, it was clear that
a concentrated drive by the departmental and field officers of the Bureau
was needed to produce structural as well as operating improvements«
Further conferences of key officials of the revenue service were held in
Washington to survey and report on the administrative as well as the
operational problems of Bureau offices® A number of task forces were set
up to make special studies of specific operations# At the same time, we
established a special committee to analyze the reports of these officials,
as well as various reports and recommendations of congressional groups«
Immediate steps were taken to effect improvements and we also began then
to plan changes in the Bureau*s organizational structure« One of the many
incidental but very important benefits which resulted from this concentrated
drive was the adoption of modern tabulating equipment to handle the great
volume of income tax returns in the larger Collectors* Offices*
"Our next step was my recommendation to Congress that the Treasury
Department be authorized to employ an outstanding firm of management
engineers to maice a broad study of the revenue bureau and its operations*
After thorough study and analysis, the report of these experts enabled us
to make many operating improvements in the Bureau, including installation
of additional modern business machinery in the field offices, and
simplifications in its accounting system*
"The Alcohol and Tobacco Tax Divisions of the Bureau were subsequently
consolidated, an independent inspection service was established within the
Bureau, and its Income Tax Division was reorganized«
"These and the many other improvements which we have made since 19 k 6
have resulted in the saving of millions of dollars in operating expenses,
improved services for the taxpayers, and a more effective and equitable
collection of the revenues« All these improvements have taken time to
plan and install«
KJ
S PC K'sJ
-li"The years 1950 and 1951 were a period for testing and study of the
many improvements that had already been made and the development of still
further organizational advances«
"The record is impressive as to the actions taken*
”1 want to thank all who have so enthusiastically contributed to the
successful outcome of the task, including congressional groups, the
personnel of the revenue service, consultants of business management firms,
and others who aided us in various advisory capacities« All who have aided
in this task have shown remarkable initiative, ingenuity and efficiency,
and it must be remembered that the job had to be done while the Bureau
carried on its regular tasks of tax collection and tax law enforcement. The
gains in efficiency we have achieved are a source of pride to us all.
••To Commissioner Dunlap and hit able group of associates, I especially
want to extend congratulations on the splendid work they have accomplished
under most difficult circumstances,
nThe Reorganization Plan we are putting into effect today brings to
fulfillment the intensive studies and efforts we have made since 1956, when
the management improvement program was first begun. In addition to providing
improved organizational structure for the entire Bureau, the new reorganiza
tion plan will assist the Bureau in performing a more thorough audit of all
types of returns. This, in turn, will enable the Bureau to devote still
further effort to apprehend racketeers and other tax dodgers,
"The reorganization will streamline revenue operations, pin-point
responsibility and authority, and tighten up the whole structure of the
Bureau« The establishment of a new, independent inspection service, with
a day-to-day check on employee conduct and all of the other operations of
the Bureau of Internal Revenue, will help remove temptations to which,
unfortunately, some revenue service employees have.succumbed in the past.
The Treasury and the Bureau have taken positive steps to eliminate those
employees who have failed in their public trust© We have cooperated fully
with all congressional investigative groups and will continue to do so*
"The American people are entitled to
of unquestioned Integrity, and of maximum
such a service is the strongest guarantee
voluntary system of taxpayer compliance.
of service,
a revenue service of top efficiency,
operating economy. Maintenance of
of the continued success of our
Our goal is to provide that kind
"I have highlighted here today many of the problems which have faced the
Bureau of Internal Revenue, ana the actions that have been taken to improve
its services. All the steps taken during the past six years paved the way
for adoption of the President’s Reorganization Plan.
I am confident that the
taxpayers of Illinois will promptly see the beneficial results of the plan in
the improved day-to-day operations of the Bureau and their contacts with it.
Today we are making a major advance in modernizing the organization.of the
Bureau of Internal Revenue, and we shall continue to strive for improvement
of its services."
oOo
rp ;i
IO w
wmm mmtm uonems»
Tuesday* Ifty 20* Xg^«
the Secretary of Ihe treasury announced last evening that the tendere for
$1*300*000» 000, or thereabouts* of 91-day Treasury tàlli to be dated May 22 and to
mature August 21* I f J Ä which mere offered on May If# were opened at the Federal Reserve
Banka
on
May 19.
the detalla of thia issue are as follaras
Total applied far - $2*1*16* $33*000
Total accepted
- 1*303*1*S&»000
Average price
(Includes $195*k36#QOO entered on a
non-competitive basis and accepted In
full at the average price s h a m below)
* 99.572 Equivalent rate of discount approac. X.69l$ per annua
Hange of accepted competitive bids:
High
im
-» 99*59$ Equivalent rate of discount approac. 1.602$ per annua
~ 99t$71
•
«
a
«
»
1.697$ »
(70 percent of tbs amount bid for at the lev prie» «as accepted)
Federal Reserve
District
total
Applied for
Total
Accepted
Boston
1
i
Be* Torfe
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
PalijMs
San Francisco
TOTAL
29,078,000
1,721*,731,000
1*1,592,000
55,091,000
lit,639,000
27,637,000
262,620,000
38,155,qoo
10,011*000
60,1(92,000
55,819,000
97,068*000
82,106,933,000
13,078,000
900,Ä » 000
19,092,000
39,391,000
11»829,000
17,79k,000
153,910,000
18,oóli,ooo
9,106,000
1*0,127,000
27,579,000
53,1*83,000
$1,303,U9l*,000
«
RELEASE MORNING NEWSPAPERS,
Tuesday, May 20, 1,952 ._____
S-3057
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 May 22 and to mature August 21, 1952, which were offered
on May 15, were opened at the Federal Reserve Banks on May 19 .
The details of this issue are as follows:
Total applied for - $2,416,933,000
Total accepted
- 1,303,405,000 (includes $195,4-36,000
entered on a non-competitive
basis and accepted, in full at
the average price shown
below)
Average price
- 99*57*2 Equivalent rate of discount approx.
1*694$ per annum
Range of accepted competitive bid.s:
High
99*595 Equivalent rate of discount approx,
Low
99*571 Equivalent rate of discount approx,
1 .602$ per annum
1 .697$ per annum
(70 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
$ 2 9 ,0 78 ,0 0 0
1,724,731,000
4.1,592,000
55,091,000
14,639,000
...2 7 ,6 3 7 ,0 0 0
262 ,6 20 ,00 0
3 8 ,1 5 5 ,0 0 0
1 0 ,011,000
6 0 ,49 2,000
55, 8 19 ,0 0 0
9 7 ,068,000
Boston
New York
Philadelphia
Cleveland
Ri chmond
Atlanta
Chicago
St. Louis
Minneapolis
•Kansas' City
Dallas
San Francisco
TOTAL
$2-, 416,933 ,000
0O0
Total
.Accepted
A
f
1 3 ,0 78 ,0 0 0
900,041,000
19 »092,000
39,301,000
1 1 ,829,000
17,794,000
I5 3 ,910,000
18,064,000
9 ,10 6 ,0 0 0
40,127,000
2 7 .5 7 9 ,0 0 0
53,483,000
$1, 303,494,000
-
technical assistance activities*
2-
Economic development, which must,
however, depend primarily on the efforts of individual countries
themselves, lays the foundation for an expansion of commerce*
Higher
productivity, rising living standards, and the growth of international
trade go hand in hand; each promotes the other.
\\
International trade affords a country a means of buying the goods
and services it can most advantageously obtain abroad*
The task of
statesmanship in this field is to move steadily in the direction which
promotes the expansion of international trade but with due regard to
the difficulties which may ensue for particular groups*
In inter-
national trade based on free enterprise, adaptation and adjustment to
changing conditions are essential elements in the process of develop
ment.
A country which desires a large export trade must also be
prepared to have a large import trade*
^
We are currently engaged in a great defense effort in cooperation
with other free peoples*
Our common objective is the preservation of
the democratic way of life against the threat of Communist aggression.
While building up our military strength we must keep clearly in mind
that a sound and flourishing world trade system remains essential for
the achievement and maintenance of a peaceful and progressive world
order .
//
vital importance of international trade to the welfare of mankind*
The interchange among the peoples of the world of the products which
each country produces to the best advantage brings national gains to
all*
It increases the variety and abundance of goods and services
available in each country and so helps to raise living standards
everywhere*
^
The full benefits of international trade cannot be realized
unless it is freed from the undue restrictions which impede its
healthy growth*
High protective tariffs, quotas, discriminations,
foreign exchange controls, and the inconvertibility of currencies
are factors which militate against a vigorous system of multilateral
trade*
During the past few years substantial progress has been made
toward restoring and revitalizing the network of global commerce which
was shattered by the war*
Much, however, still remains to be accom
plished*
The post-war rehabilitation of disrupted economies was an
essential basis for the rebuilding of world trade*
We contributed
materially to this rehabilitation through our foreign economic
assistance programs*
We have also used other means to aid the
economic development of friendly countries*
These include the
operations of the Export-Inport Bank, our participation in the
International Bank and other international institutions, and our
fox
TREASURY
DEPAR
Information Service
IMMEDIATE RELEASE,
Monday, May 19, 1952.
Secretary Snyder today issj
concerning World Trade Week, whi
"The observance of Wo)
belief in the vital import!
to the welfare of mankind.!
peoples of the world of thj
country produces to the bef
gains to all. It increase!
of goods and services avail
so helps to raise living stf
The Secretary
The State Department has
requested that cabinet members
make statements on World Trade
Week, which begins May 18*
The attached release (as
a statement by the Secretary),
prepared by the Office of
Internatioml Trade and approved
by Mr. Overby, is submitted n
for approval.
"The full benefits of!
be realized unless it is f)
FROM:
Îepn M, Siler
which impede its healthy g)
Room 3450
tariffs, quotas, discriminj
controls, and the inconvertibility of currencies are
factors which militate against a vigorous system of
multilateral trade. During the past few years
substantial progress has been made toward restoring
and revitalizing the network of global commerce which
was shattered by the war. Much, however, still
remains to be accomplished.
"The post-war rehabilitation of disrupted economies
was an essential basis for the rebuilding of world trade.
We contributed materially to this rehabilitation through*
our foreign economic assistance programs. We have also
used other means to aid the economic development of
friendly countries. These include the operations of
the Export-Import Bank, our participation in the
International Bank and other international institutions,
and our technical assistance activities. Economic
development, which must, however, depend* primarily on
the efforts of individual countries themselves, lays
the foundation for an expansion of' commerce. Higher
productivity, rising living standards, and the growth
of international trade go hand in hand* each promotes
the other.
TREA SU RY DEPARTM ENT
Information Service
IMMEDIATE RELEASE,
Monday, May 1 9 , 1952.
Wa s h in g t o n , d . c .
S-3 0 5 8
Secretary Snyder today issued the following statement
concerning World Trade Week, which begins today:
"The observance of World Trade Week manifests our
belief in the vital importance of international trade
to the welfare of mankind.
The interchange among the
peoples of the world of the products which each
country produces to the best advantage brings national
gains to all.
It increases the variety and abundance
of goods and services available in each country and
so helps to raise living standards everywhere.
"The full benefits of international trade cannot
be realized unless it is freed from the undue restrictions
which impede its healthy growth. High protective
tariffs, quotas, discriminations, foreign exchange
controls, and the inconvertibility of currencies are
factors which militate against a vigorous system of
multilateral trade. During the past few years
substantial progress has been made
toward restoring
and revitalizing the network of global commerce which
was shattered by the war.
Much, however, still
remains to be accomplished.
"The post-war rehabilitation of disrupted economies
was an essential basis for the rebuilding of world trade.
We contributed materially to this rehabilitation through
our foreign economic assistance p r o grams. We have also
used other means to aid the economic development of
friendly countries.
These include the operations of
the Export-Import Bank, our participation in the
International Bank and other international institutions,
and our technical assistance activities.
Economic
development, which must, however, depend* primarily on
the efforts of individual countries themselves, lays
the foundation for an expansion of' commerce. Higher
productivity, rising living standards, and the growth
of international trade go hand in hand* each promotes
the o t h e r .
ÇQQ
O
' v»/
-
2
International trade affords a country a m e a m of
uying the goods and services it can most advantageously
obtain abroad.
The task of statemanship in this field
is to move steadily in the direction which promotes the
expansion of international trade but with due regard to
the^difficulties which may ensue for particular ¿roues
In international trade based on free enterprise
adaptation and adjustment to changing conditions aue
essential elements in the process of development
A country which desires a. large exoort trade must
also be prepared to have a large import trade.
"We are currently engaged in a great defense effort
in ^cooperation, with other free peoples.
Our common
objective is the preservation of the democratic way of
l u e against the threat of Communist aggression.
While
wöobuilding
up
our
military
strength
W(
.
-,
- --Ä t/ ----- o | r * must keep clearly
in mind that a sound and flourishing world trade system
remains essential for the achievement and maintenance
of
peaceful and progressive world order.11
0 O0
- 3 -
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) (1) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 19lfL, 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.
Accord
ingly, 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. 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 aOBBBBL
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 accept
ance 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 reserva
tions, 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 Re
serve Bank on
May 29, 1952____ , in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
May 29, 1952____
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
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
3
Thursday. May 22. 1Q52_________.
o î
The Secretary of the Treasury, by this public notice, invites tenders
^cr $1»300,000,000_, cr thereabouts, of
91
-day Treasury bills, for
cash and in exchange for Treasury bills maturing
the amount of $1,101,051,000
t to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
--A”gus'fc 2 8 , 1992
terest.
. in
May 29, 1952
The bills
May 29, 1^52________ , and will mature
, when the face amount will be payable without in
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.nu, Eastern/fiifeiaanriamri time,
Monday, May 26. 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 competi
tive 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
TREA SU RY DEPARTM ENT
Information Service
WASHINGTON, D .C
ÇJQ 7I
v
RELEASE MORNING NEWSPAPERS,
Thursday, May 22, 1952.
S-3059
The Secretary of the Treasury, by this public notice, invites
tend ers for $1,300,000,000, or thereabouts, of 91 -day Treasury
bill s, for cash and in exchange for Treasury bills maturing
May 29 5 1952 , in the amount of $1 ,101 ,051 ,000 , to be issued on a .
disc ount basis under competitive and non-competitive bidding as
here inafter provided. The bills of this series will be dated
May 29 ) 1952, and will mature August 28, 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 Daylight Saving
time, Monday, May 26 , 1952. Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
mutliple 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 bo 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
rom 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 May 29, 1952, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing May 29, 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 for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4lS, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. .Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0 O0
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s y s t e m t o b a c k ajs o u r w i l l f o r p e a e e .
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th is
c o u n try
t h e p r o d u c t o f co m m u n ity a c t i v i t y , b a s e d o n t h e
v o lu n t a r y c o o p e r a tio n o f in d iv id u a l c i t i z e n s .
I n t h e s e p e r i lo u s tim e s e a c h o f u s n e e d s t o a p p ly
e v e r y o u n c e o f e d u c a t i o n , e x p e r i e n c e , a n d Ju d g m e n t
IS !
f o r fr e e d o m a n d j u s t i c «
th ro u g h o u t th e s o r l d , th e
need fo r t h is s p i r i t has n ever b e e s g r e a te r *
Our
f a i t h , c o u r a g e , a a d d e te r m in a tio n to p r e s e r v e th e
in d e p e n d e n c e f o r w h ic h w e a n d o u r f o r e f a t h e r s h a t e
fo u g h t h a s n e v e r b e fo r e a e t a g r e a t e r c h a lle n g e .
C o m u n i sat i s
a m en a ce w h ic h c o u l d d e s t r o y a l l
th e p ro d u c ts o f th e th o u g h t a n d e f f o r t so
m a g n i f i c e n t l y e v id e n c e d i n
p r iv a te
e n te r p r is e s y s te m .
t h e a c h ie v e m e n t s o f o u r
It
e o u ld d e s t r o y
e v e r y t h i n g t h a t we h a v e d o n e t o b u i l d u p t h i s
N a t io n and t h e w ay o f l i f e
f o r o u r s e lv e s .
t h a t we h a v e f a s h i o n e d
I t c o u ld b lo t o u t , a s i f
th e y had
n e v e r e x i s t e d , t h e I n s t i t u t i o n s o f d e m o c r a c y w h ic h
h ave aad c a l l o f th e s e
It
is
th in g s p o s s ib le .
r e g r e t t a b l e t h a t w# h a v e n o t y e t r e a c h e d
d e v e lo p n e s t a s d e q u a ll y ia p r e a a iv e « t r i d a s
la
a g r i c u l t u r a a a d e s m e r o e v h io h h a r é « n r i c h e d o u r
o o u n try aad i t a
p e o p la »
T h ia o s o s o s ! o p o w e r h a s
p r o r e d a g r e a t b u lw a r lc t o o u r B a t i o s l a
s u o c e s s íu lly
t h w a r t i a g t v o g l o b a l e o a f l l e t a w h lo h t b r e & t e n e d o s r
d e m o o ra e y «
T o d a y , P a n n a y l v a a l a 'a
e c o n o s le s i g h t i a
a g a ia p r o r id ia g is d ia p a n a a b la s is e a s o f s t r e s g t h i a
tb a la t e a t a t r o f i a
f e r fr a id o s
ia v h i o h
ve aro
esgagad.
T oara i a a g r e a t h e r it a g e *
*■ «*
mé
1 b a r a a lw a y s f o s a d
a l * # f & w & r#a«ss @1 t k a t k t r i t a g e
a á e t e r a i n & t i o n t o © a r r y fo p w a r á tk© láeals u p o n
w k ie k Á m o r ic a ii d a & o a r a e y « a s fo tm d e d »
iñ
tk© p r o s o a t o r l á i s w k io h f a c e s o u r H & t io a *
and o th o r i r t e
n a tie r n a o a l t e d « i t k
u s l o tk© f i g h t
V i s t a s s u c h a s P e n n s y l v a n i a * s m u st h a v e
a ffo r d e d g r e a t in s p ir a t io n
to th e s t u r d y p io n e e r s
who o p e n e d u p t h i s h i s t o r i c
s t a t e t o new f r o n t i e r s
o f c iv ilis a tio n *
P e n n s y l v a n i a h a s a lw a y s p l a y e d a l e a d i n g r o l e
in
t h e dram a o f A m e r i c a .
T h e v e r y nam e o f t h i s
C o m o n w e a lt h b r i n g s i n s t a n t l y t o m in d t h e s i g n i n g
o f t h e D e c l a r a t i o n o f In d e p e n d e n c e a n d t h e f r a m i n g
o f th e F e d e ra l C o n s tit u t io n ,
h e r e w as t h e s e a t o f
o u r G o v e rn m e n t f o r m an y y e a r s , a n d h e r e w e re o r u o i a l
s tr u g g le s in
R e v o lu tio n a r y an d C i v i l f a r d a y s to
p r e s e r v e a n d p r o t e s t o u r o o n o o p ts o f l i b e r t y a n d
fr e e d o m f o r a l l men»
H e r# a l s o h a s b e e n t h e k e y s t o n e t o m uch o f o u r
R a t i o n ’ s e c o n o m ic p o w e r —
tr e m e n d o u s i n d u s t r i a l
A S O L ID F IS C A L P O L IC Y
I t h a s b e a n ssy p r i v i l e g e
o n n u m e ro u s o c c a s i o n s
i n r e c e n t y e a r s t© a d d r e s s v a r i o u s e d u c a t i o n a l ,
b u s in e s s , p r o fe s s io n a l, and c iv ic
grou p s l a
P e a n s y lv a n i
I h a v e a lw a y s e n jo y e d t h e f e l l o w s h i p o f t h e s e
m e e t in g s an d t h e o p p o r t u n i t i e s
th e y h ave a ffo r d e d
t o t a l k o v e r w it h e n t e r p r i s i n g o l t i i e n s
o f th is
g r e a t K e y s t o n e S t a t e som e o f t h e m u tu a l p r o b le m s
w h ic h c o n f r o n t u s o n t h e n a t i o n a l s c e n e *
to d a y th e r e i s
added p le a s u r e i n
jo in in g you
her© I n t h e c e n t r a l P e n n s y l v a n i a r e g i o n *
lo n g b een s a id
I t has
//
t h a t wP e n n s y l v a n i a h a s e v e r y t h i n g ! ,, )
C e r t a i n l y o n e o f t h e m o s t im p o r t a n t e le m e n t s i n
th is
c o m p o s it e
to ta l is
s c e n ic b e a u ty to in s p ir e
t h e h e a r t s a n d s o u l s o f men*
T h e f o l l o w i n g a d d r e s s , to b e d e l i v e r e d f o r
Secretary Snyder by Assistant Secretary
J o h n S. G r a h a m / b e f o r e a j o i n t m e e t i n g of
the P e n n s y l v a n i a C h a p t e r of the S o c i e t y
f o r the A d v a n c e m e n t of M a n a g e m e n t and the
P e n n s y l v a n i a T a x I n s t i t u t e , at C a m p
H a t e t o l e a v i t y B e l i e f o n t ^ P e n n s y l v a n i a , is
s c h e d u l e d f o r d e l i v e r y at 8 : 0 0 p . m . E D T,
T h u r s d a y 7 ~ M a y ££, 1 9 5 2 / a n d is f o r r e l e a s e
at t h a t t i m e .
''foi*-
TREASURY DEPARTMENT
Washington
The following address, to be delivered for
Secretary Snyder by Assistant Secretary
Jonn S* Graham before a joint meeting of
the Pennsylvania Chapter of the Society
for the Advancement of Management and the
Pennsylvania Tax Institute, at Cairo
Hatetoleav.it, Beliefonte, Pennsylvania,
is scheduled for delivery at 8:00 p Gms EDT,
Thursday, May~lT2', 19 ^ 2 , and is Tbr’~release
at that time«
~
*
A SOUND FISCAL POLICY
It has been my privilege on numerous occasions in recent years to
address various educational, business, professional, and civic groups «
in^Pf?nSylvania* 1 have a^waYs enjoyed the fellowship of these meetings
and the opportunities they have afforded to talk over with enterprising
citizens of this great Keystone State some of the mutual problems which
confront us on the national scene.
Today there is added pleasure in joining you here in the central
Pennsylvania region. It has long been said that ’»Pennsylvania has
everything.” Certainly one of the most important elements in this
composite total is scenic beauty to inspire the hearts and souls of men.
Vistas such as Pennsylvania*s must have afforded great inspiration
* . ayurdY pioneers who opened up this historic State to new" frontiei
of civilization«
Pennsylvania has always played a leading role in the drama of
America \ ^ e ver7 name of this Commonwealth brings instantly to mind
the signing of the Declaration of Independence and the framing of the
Federal Constitution© Here was the seat of our Government for many
years, and here were crucial struggles in Revolutionary and Civil War
days to preserve and protect our concepts of liberty and freedom for all
men,
S-3060
R25
-
2
-
Here also has been the keystone to much of our Nations economic
power — tremendous industrial development and equally impressive strides
in agriculture and commerce which have enriched our country and its
peopleo This economic power has proved a great bulwark to our Nation in
successfully thwarting two global conflicts which threatened our democ
racy o Today, Pennsylvania*s economic might is again providing indispen
sable sinews of strength in the latest struggle for freedom in which we
are engaged»
Yours is a great heritage* I have always found among Pennsylvanians
a deep awareness of that heritage and a determination to carry forward the
ideals upon which American democracy was founded*
In the present crisis which faces our Nation, and other free nations
united with us in the fight for freedom and justice throughout the world,
the need for this spirit has never been greater. Our faith, courage, and
determination to preserve the independence for which we and our forefathers
have fought has never before met a greater challenge*
Communism is a menace which could destroy all the products of the
thought and effort so magnificently evidenced in the achievements of our
private enterprise system* It could destroy everything that we have done
to build up this Nation and the way of life that we have fashioned for
ourselves* It could blot out, as if they had never existed, the institu
tions of democracy which have made all of these things possible*
It is regrettable that we have not yet reached that period in history
when nations can sit down across the table and work out their problems
without the force of arms* But the hard fact is that today we must have a
convincingly strong defense system to back up our will for peace*
More than at any other time in the history of the world, our military
power depends upon a strong and smoothly functioning econoirgr in which all
the myriad decisions inherent in a competitive free enterprise system work
together for the common goal*; Leadership is essential, and in this country
^
, ^ e Proc*uct °£ community activity, based on the voluntary cooperation
of individual citizens*
In these perilous times each of us needs to apply everv ounce of
education, experience, and judgment to the tremendous task of maintaining
our national strength* No American citizen, whatever his position, can
afford to be an onlooker*
P
*
The financial policies which are pursued by this Nation have an
important bearing on our total strength* X welcome this opportunity to
discuss with you what I consider to be the essential elements of a sound
fiscal policy*
626
- 3 I appreciate the fact that I am talking to citizens of a State whose
roots are deeply embedded in the financial history of our Nation® From
the Revolutionary War days when Robert Morris was nicknamed the "Financier11
in recognition of his financial prowess — especially his ability to
deliver money and food quickly on emergency call from General Washington —
Pennsylvanians have played a conspicuous role in administering our Nation-s
finances» Since the post of the Secretary of the Treasury was created in
1789, it has been occupied more than one-fifth of the time by Pennsylvania
citizens» Their total tenure in that office has been longer than that of
the representatives of any other state*
Most of you are probably familiar with one of the basic tenets which
has guided ire since I took over the office of Secretary of the Treasury*
that it ‘is the responsibility of Government to reduce expenditures in every
possible way, to maintain adequate tax rates, and to achieve a balanced
budget, or better, whenever possible*
I have been deeply gratified by the fact that, in three of the six
years that I have been in office, we were able to show a budget surplus®
In one of those years, fiscal I9I4.8, the surplus amounted to almost
$8-l/2 billion, the largest budget surplus in the history of the United
States Government» Even in the 19:>1 fiscal year ended last June, we were
able to show a surplus of some $3-l/2 billion» Now, however, the require
ments of national defense have greatly expanded Government expenditures*
Despite the increased taxes which have gone into effect since the invasion
of Korea, we are no longer able to keep the Government?s outgo within its
income* On the contrary, we face the problem of substantial deficit
financing®
Nevertheless, the job of financing this defense effort has been made
much easier because of the financial policies we have pursued in the post
war years* Increased revenues and strengthened tax laws have enabled us
to finance our defense requirements to a greater extent out of current in
come* The amount of deficit borrowing we must do is much less than would
have been the case if we had not sought to keep our defense expenditures
as nearly as possible on a pay-as-we-go basis*
There are those, of course,, who feel that even now the Government
should not be operating at a deficit; that we should avoid it by simply
cutting Government expenditures to the point where they would equal
revenues, I am a strong believer myself in cutting Government expenditures
wherever possible, but there are some salient facts which do not make
wholesale expenditure slashing at the present time very practical from a
national security standpoint*
627
- 1* More than three-fourths of total budget expenditures in 1953 will be
for major national security programs such as military services* inter
national security and foreign relations* atomic energy* defense production
and economic stabilization* civil defense* and merchant marine activities.
Expenditures for all other Government programs combined have declined
since 1950* although some of these programs contribute directly to the
defense effort and have been expanded — such as defense housing* aid for
schools in defense areas* generation and transmission of power for atomic
energy and defense plants.
It certainly is proper to effect all the economies in government
operations that circumstances permit. During my tenure as Secretary of
the Treasury I have carried on an intensive management improvement program
to modernize operations toward increased business efficiency* better service
to the public* and the reduction of operating costs. As a result of these
efforts I have been able to report to the public and to Congress dollar
•savings in excess of $56 million through the fiscal year 19i¡9* and dollar
savings in excess of $Ij, million and $8 million respectively for fiscal
years 1950 and 1951*
I have been deeply gratified by the Congress» approval of the
Presidentas and my recommendations for the reorganization of the Bureau of
Internal Revenue« Through this reorganization we are forging a revitalized
agency of Government which will not only render better service to the
taxpayers* but also will help to assure that our tax laws are administered
without favor or discrimination.
While we must continue our efforts to bring about the utmost efficiency
and economy in all branches of the Government, these endeavors will not
solve our deficit financing problem. Our really big expenditures are in
the defense area* and I seriously doubt that the Congress will find that
these expenditures can be cut drastically without endangering our national
security.
Nevertheless* we must not lose sight of our goal of a balanced budget
as soon as circumstances permit. When we have reached the point where
defense expenditures can be levelled off, or safely reduced* without
endangering the security of our country and its people* we should once
again carry on our finances within the framework of a balanced budget,
I said earlier that the job of financing this defense effort has been
made easier because of financial policies we have pursued in the postwar
years. I hasten to add* however* that the job before us is not an easy
one*
628
- 5 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 svibstantial*
Sound debs management dictates that as much as possible of the
borrowing we shall have to do for the defense program should be from non
bank sources* Xt is generally agreed that this must be done if we are to
avoid inflationary pressures which would result fron financing the entire
deficit through the banking system* The Treasury*s ability to borrow
from nonbank sources, however, depends upon many factors, not the least
of which is the investment position and preference of institutional in
vestors as well as individuals*
Extensive analyses which have been made of the money and investment
markets, as well as consultations which the Treasury has had with various
investor and financial groups, seem to indicate that nonbank institutions,
corporations, pension trusts, et cetera, will be able to absorb some of
the new borrowing. Nevertheless, a substantial portion will have to be
financed by borrowing from individuals.
Despite the fact that individuals are carrying a heavier tax burden
than ever before in our histoiy, they are in a financial position to
acquire substantial new holdings of Government securities. I want to take
a moment to point out some significant personal income and savings figures.
Disposable personal income last year, that is, individual income
after taxes, was at an all-time peak of $223 billion. This is more than
$18 billion above the 1950 level, and almost $35 billion above either 19li8
or 19ii9*
Likewise, personal savings increased sharply. In 1951* the amount of
income that individuals had left after all taxes were paid, and after all
spending for current consumption, was $17 billion. Personal savings in
1951 were $6 billion more than in 1950 and almost $11 billion more than in
19u9. In the current year personal savings may be even higher than last
year*
Another significant factor in assessing the ability of individuals to
absorb additional Government securities is the increased growth of personal
savings in the form of currency and demand deposits. At the end of 1951,
individuals' holdings of currency and demand deposits were at an all-time
peak of almost $70 billion. The increase during 1951 alone was more than
$i; billion.
- 6
To attract a larger proportion of individual savings into Government
securities, extensive changes have recently been made in the savings bond
program® The new terms and conditions will make savings bonds more
attractive not only to the buyers of small., denomination bonds, but also
to the larger investors® If substantial new savings from all income
classes and from all occupational groups are invested in savings bonds,
this will help greatly in attaining our goal of financing the deficit out
side the commercial banking system®
One of the first things we did was to improve the intermediate re
demption schedules and intermediate'interest yields on all types of
savings bonds, to give a higher rate of return in the earlier years*
A second important feature of the new program relates to the over
all interest rate on savings bonds held to maturity — or, in the case
of E bonds, those held to original maturity or beyond® The new E bonds
now carry a rate of 3 percent if held to their new maturity of 9 years
and 8 months© Moreover, all E bonds reaching their original maturity
on or after May 1st of this year, if not cashed by the holder, will
continue to draw interest for a period not to exceed 10 additional
years at a rate of approximately 3 percent, compounded semi-annually,
regardless of when the holder redeems his bond during this extended
period* The rate obtainable on the new Series J and K savings bonds has
been raised to 2*76 percent at maturity, a. considerable increase over
the yields formerly obtainable on the comparable Series F and G bonds®
The most interesting feature of the new program to many investors
will perhaps be the new current income savings bond which the Treasury
is making available as of June 1 in denominations starting at $5>00® This
bond, which is designated Series H, is a companion to the E bond and will
have the same maturity as the new E bond, namely, 9 years and 8 months9
It will be issued at par; and interest will be paid semiannually by check,
on a graduated scale of rates which has been tied as closely as possible
to the E bond scale© It is expected that E bonds of the accrual type will
continue to have great popular appeal, especially in connection with our
payroll savings and our bond-a-month plans® However, the Treasury felt
that an additional service could be performed for investors in Government
securities who are thinking in terms of current income but who are not
prepared to undertake the risks and inconveniences inherent in marketable
obligations© The Series H new current income bond will meet this need®
Finally, in connection with the new program, maximum amounts which
can be purchased by a single individual in any one year have been doubled
with respect to each type of issue formerly available; and there is, of
course, the additional privilege of purchasing up to the maximum ($20,000)
of the new current income H bond®
- 7In addition to the savings bond program, we are also giving constant
thought to other types of Government securities which will help raise the
necessary defense funds from nonbank sources. A current step in this
direction was taken on Monday of this week when the Treasury opened its
books for additional subscriptions by nonbank investors to the 2-3/U per
cent Investment Series B bonds« Other financing arrangements will be
announced as soon as decisions are made.
Nonbank -- and particularly individual — ownership of public debt
obligations is the foundation of sound debt management at any time. But
the necessity for deficit financing in connection with our defense program
underscores the importance of this goal. We must raise the necessary
funds without weakening in any way the financial structure of the economy;
and, as I have already emphasized, this means keeping bank participation
in Government financing at a minimum.
I have stressed tonight the importance of a strong fiscal policy in
enhancing the domestic strength of our Nation«. But we must be ever mindful..
that the roots of our national strength are not found alone in the area
of public policy. They spring from the actions of millions of free
individuals, expressed in the many thousands of decisions, large and small*
which all of us make in the course of our daily living. In this area of
individual action our strength as a Nation during the critical years ahead
of us will be shown.
Here tonight, close to the scene of many of Americans early struggles
for freedom, we can reflect upon the heritage which the early defenders of
freedom left us. That heritage is instilled in the character of our
people. It is expressed in the fortitude, determination, and courage which
unite us in common bond to work together, ever willing to nake whatever
sacrifices may be necessary to defend the liberties which freedom brings us.
I know that Pennsylvanians will continue in the future, as they have
in the past, to carry forward this very great heritage.
0O0
LZ a
cy
BELEASK liORKIHG HEWSFAFEHS,
Tuesday, May 27» Ifjgf»
/
The Secretary of the treasury announced last evening that the tenders for
$1,300,000,000, or thereabout», of 91-day Treasury bill» te be dated hay £9 and to
mature August 28, 1952, which were offered on hay 22, were opened et the Federal
Reserve Banka on lay 26,
The detail* of this issue are aa follows t
Total applied for - $2,061,81*1,000
Total accepted
« 1,300,6714,000 (Includes $160,5147,000 entered on a
non-competitive beai» «ad accepted in
full at the average pries shown below)
Average prise
« 99*563/ Equivalent rate of dlaeount approx. 1.728$ per annum
Range of accepted competitive bidet
High
- 99.596
LOW
- 99.560
Equivalent rate of discount approx. 1.598$ per annua
«
a
a
a
a
1*710$ *
(5 percent of the amount bid far at the low price was accepted)
Federal Reserve
Metri et
Total
Applied for
Beeten
Hew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Bailee
Sen Francisco
1
21,720,000
1,102,870,000
3ii,530,000
62,01*6,000
12,422,000
23*569,000
266,101,000,
36,500,000
11,570,000
49,707,000
43,880,000
86,926,000 ;
$2,061,8141,000
Total
&
Total
Accepted
t
16,820,000
719,125,000
23,580,000
62,046,000
11,447,000
22,619,000
244,339,000
35,105,000
8,720,000
49,607,000
31,930,000
75,336,000
tl,3O0,671»,000
*
632
RELEASE MORNING NEWSPAPERS,
Tuesday, May 27, 1952.____
S-30Ö1
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 M ay 29 and to mature, August 28, 1952, which were
offered on M a y 22, were opened at the Federal Reserve Banks p n May 26.
The details of this .issue are as follows:
Total applied for - $2, Obi, 84-1,000
v
Total accepted
- 1,300,674-,, 000 (includes $160,547,000
entered on a non-competitive
b a s i s 'and accepted in full at
the average price shown
below)
Average price
- 99-563/ Equivalent rate of discount approx.
1.728$ per annum
Range of accepted competitive bids:
High
- 99.596 Equivalent pate
1.598$
- 99-560 Equivalent rate
1.741$
Low
of discount approx.
per annum
of discount approx.
per annum
(5 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
A p p l ied for_____ __
$
TOTAL
2 1 ,7 2 0 , 0 0 0
1,412,870,000
' 34,530'000
62.046.000
12.422.000
23.569.000
2 6 6 ,1 0 1 , 0 0 0
3 6 .5 0 0 . 0 0 0
1 1 .5 7 0 . 0 0 0
4 9 .7 0 7 . 0 0 0
4 3 .8 8 0 . 0 0 0
8 6 .9 2 6 . 0 0 0
$2,o 6 i,8 4 i,o o o
0O0
Total
__ Accepted
$
1 6 ,8 2 0 , 0 0 0
7 1 9 .1 2 5 . 0 0 0
2 3 .5 8 0 . 0 0 0
62,046'000
1 1 .4 4 7 . 0 0 0
22.619.000
244.339.000
35.105.000
8 ,720,000
49.607.000
3 Ï , 930 ,000
7 5 . 3 36.000
$ 1 ,3 0 0 ,6 7 4 , 0 0 0
_5 "_ 3 * 4 Q
M tam TB BEiEiSE,
Tnagday, May 2?,
1952.
Secretary of thè Treasury Snyder announced taday that thè subeeription boofcs for thè current offering of 2~3/k per«est Treasury Bonds*
Tmrestioent Series B~1975~80, ehieh are no* open far cash or far cash and
In eacchange far 2-1/2 percent Treasury Bande of 196£-?0, 1966-71« end
tea leene® af 1967-72# *111 dose at thè dose of busineaa Thuraday»
May 29» 1952.
Subscriptiene addressed to a Federai Bseerve Bank
or
Branch, or to
thè Treasury Department» and plaeed In thè mali before midnight of May 29
*111 be oansldered as havìng been entered before thè alesa of thè subsorlptlon books.
Annouacement of thè total amounfc of subecriptions and their diTlslon
amng
thè severa! Federai Reserve Distriate vili be Bade later.
T
REASURY DEPARTMENT
......................................................................................................................
Information Service
IMMEDIATE RELEASE,
Tuesday, May 2 7 3 1952 .
Wa s h in g t o n , d . c .
S -30 6 2
Secretary of the Treasury Snyder announced today
that the subscription books for the current offering of
2-3/^- percent Treasury Bonds, Investment Series
B - 1 9 7 5 -8 0 , which are now open for cash or for cash and
in exchange for 2-1/2 percent Treasury Bonds- of 1965-70,
19 6 6 -7 1 , and two issues of 1 9 6 7 -7 2 , will close at the
close of business Thursday, May 29^ 1952.
Subscriptions addressed to a Federal Reserve Bank
or Branch, or to the Treasury Department, and placed
in the mail before midnight of May 29 will be considered
as having been entered before the close of the subscription
books.
Announcement of the total amount of subscriptions and
their division among the several Federal Reserve Districts
will be made later.
- 3 -
tm m
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 i|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.
Accord
ingly, 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. lj.18, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.
Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.
v
-
»
2
-
-T-NT.T.A .
jQy&Ka.
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 accept
ance 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 reserva
tions, 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 Re
serve Bank on
. 19i?2
, i*1 cash or other immediately available
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
June ^19.52
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
>
TREASURY DEPARTMENT
Washington
? Ù Cd
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, May 28, 1952
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1,300»OCX),OOP , or thereabouts, of
91 -day Treasury bills, for
TOC
5fiET
cash and in exchange for Treasury bills maturing
June 5« 1952____ , in
4^9 '
the amount of $ 1 *1 0 0 ,1191.000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
The bills
, and will mature
September li, 1952
terest.
, when the face amount will be payable without in
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o ’clock p.m., Eastern
?n
time
time, Monday. June 2. 1952
iM
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 competi
tive 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„tfust companies and from responsible and recognized
TREASURY
DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Wednesd a y , May 28, 1952.
WASHINGTON, D .C .
838
s-3063
The Secretary of the Treasury, hy this public notice , invites
tenders for $1,300,000,000, or thereabouts, of 93--&ay Treasury bills,
for cash and in exchange for Treasury bills maturing, June 5, 1952,
in the amount of $1,100,491,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided.
The bills of this series will be dated June 5, 1952, and
will mature September 4, 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, $ 5 0 0 ,0 0 0 , and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing houj°, two o ’clock p.m., Eastern Daylight Saving
time, Monday, June 2, 1952.
Tenders'will not be received at the
Treasury Department, Washington.
Each tender must be for an even
mutliple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g ., 99.925«
Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and
from responsible and recognized dealers in Investment securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted b i d s . Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted, in full at the average price
>
•- 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 June
1953, in cash or
-other immediately available funds or in a like face amount of
Treasury -bills maturing June 5’, 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 billsj whether interest or
gain, from the .sale or other disposition o f 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 194.1, the
•amount of discount at which bills issued hereunder are sold shall
not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and t h e ■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
@FedFRASER