Full text of Press Releases of the United States Department of the Treasury : Volume 94

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Ir e a s .

HI

JUN

141972

TREASURY DEPARTMENT

as political and military strength.
These are measures which will
achieve internal and external
balance.

These are measures »itieft

will stabilize and maintain the
purchasing power of currencies and
preserve the value of savings.
These are measures which will help
achieve and maintain the social and
economic stability which are
necessary for the preservation of
freedom and for higher standards

These measures are well known.
They are hard and difficult.

But

they are the road to real strength
and i«dependence.
responsibility of

it is the heavy
colleagues

here -- of Finance Ministers,
Central Sank Sovernors» anu their
associates ~ to take the lead in
their countries in waking effective
the difficult but rewarding
policies which will* in fact,
produce increased economic as well

mm

expenditures and to the
promotion of essential and
efficient production.
5.

Encouragement of savings.

S,

Minimum reliance on controls
and restrictions domestically
and internationally.

7.

Rates of exchange which are
realistic and which
contribute to international
balance and the removal of
restri ct ions <

increased productivity
from available capacity
and resources.
2 . Postponement of less

essential government and
civilian expendí tures.

3 . Restriction of investment
and credit to essential
purposes.
4. increased taxation directed
to reduction of less
essential civilian

threatening both domestic savings
and monetary reserves, and by
enhancing balance of payments
difficulties, which would lead to
the introduction or strengthening
of undesirable foreign exchange
and trade practices.
The measures to be taken are
well known to you gentlemen.

They

include:
1.

increased production of
essential goods and

ü ca»ar«rttí

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ói fe
part

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susta irte'tí
t h ®y r t

nt
ewi §t

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ü*r
against our peaceful aiii* and
.

desires, quite correctly are
receiving our soberest thought and
attention.

They add to the

demands on our resources and to
the inflationary pressures.

It

is tempting to temporize wi th
these burdens and to improvise
emergency policies or measures to
deal with them in the hope they
will be short-lived,

heali ty and

ic, however, would seem to
I

■

cr
■Jl

-'t

11

* *, $pt|

1

- ¿3 t

Encouraging as this progress
in facilitating imports has bean,
I am hopeful that future years
will see further action by the
United States in implementing its
liberal trade policy to permit
our friends abroad to earn their
way inert and more through trad®
based on competitive production
and prices and sound international
investment rather than on
extraordinary assistance tnd.

21 cheaply from the American economy.
«

Our tariff rate® have been
substantially reduced by a
succession of steps resulting
1rs« agreements with other countries
directly, or through the mechanism
of the General Agreement on
vTariff® and Trade.
it was pointed
I|g|
out to us by some of our friends
that in some ways the procedures
of our customs administration
placed unnecessary obstacles in
the way of imports.

I am pleased

Although part of this represents
price increases, the actual
volume of imports has about
doubled since the end of the
war.
Here, too, there have been
imperfections of which we are aware.
Over a period of years, however, we
have shared the views expressed in
Bili’
the Fund Report and have made it
easier for other countries to pay for
?oods which they can obtain more

b i 11 i ons

ifìtti'

8$

!

ta international
nonotar y stabilii

S S:8

fita 3 uree % o have «ehi avori e hat the
Un itad fili is 4IO
¡M| Ä

reoontit

reported to be the s.'•'*«liest ineit&se
n the cost of lip fig ¿»Many the
' poporo of the 1 re# world iIf
r t o 6fit veal s .

5rat i1y srrfe as thi 8 txper ienee
hi.a been, thii liréís» ci i¥H U¡elicit
we face in this cun ent f is cal
year leaves ft with the hope

I 16 Through these and other measures we
have been enabled to complete six
years of postwar finance with a net
budget surplus of over $3 billion.
This surplus, and increased holdings
of government bonds by non-bank
investors, has helped to reduce
government debt held by the banking
system by $24 billion in the last
six years.
These and other measures
have helped us to make our

Because of the permeating
and corroding effects of
inflation on economic and
social stability, it it a
source of deep gratification
to me that our #. 3.
Congress has been willing
to increase taxes three
times in less than two years
in order to help meet our
necessarily increased expenditure

eountri

y ¡¡i

of the Fund §fo the Bank.
This is the Seventh Annual
Meeting I have had the
pleasure of attending and,
as most of you know, the
work of the Fund and the Sank
has always been close to my
heart for these more than six

• 2 in recent year« —

namely, the close

and inseparable connection between
internal fiscal, monetary and
economic policies and external
equilibr ium .and balance in
international payments./ Although
there is a natural and understandable
tendency to look elsewhere in
assigning responsibility for our
difficult and seemingly intractable
problems, it is our unpopular
function as Finance Ministers,

it Is i pleasant to compllatent
the Managing fiirector of the Fund
on his statement presenting the
Annual Report of the Executive
Crectors of th® Fund to the Board
of Governors.

We are fortunate

to have at the head of the Fund
11 'I

so experienced a financial leader
as M r . Rooth.
The Fund*s report very properly
reemphasizes what has* 1 fear, all
too often been forgotten or neglected

K•s<**v
\J
Remarks by Secretary Snyder in connection
with the presentation of the Lnnual Report
of the International Monetary Fund
scheduled for delivery at 11:00 a. m», CST,
Thursday/ September
1952“
, Hotel Del Prado»
Mexico City*
It is a pleasure to compliment the Managing Director of the Fund on
his statement presenting the Annual Report of the Executive Directors of
the Fund to the Board of Governors. We are fortunate to have at the head
of the Fund so experienced a financial leader as Mr. Rooth.
The Fund‘
s report very properly reemphasizes what has, I fear, all
too often been forgotten or neglected in recent years — namely, the close
and inseparable connection between internal fiscal, monetary and economic
policies and external equilibrium and balance in international payments.
Although there is a natural and understandable tendency to look elsewhere
in assigning responsibility for our difficult and seemingly intractable
problems, it is our unpopular function as Finance Ministers, Central Bank
Governors and others concerned with the hard facts of finance and trade,
to focus the responsibility where it so often belongs — i.e., on our in­
ternal fiscal, monetary and economic policies.
It has been my honor and privilege for more than six years to serve
as Secretary of the U* S. Treasury and as U. S. Governor of the Fund and
the Bank. This is the Seventh Annual Meeting I have had the pleasure of
attending and, as most of you know, the work of the Fund and the Bank has
always been close to my heart for these more than six years. I have
watched the Fund and the Bank grow and I have shared with you the dif­
ficulties and problems which have confronted us during these postwar years —
years which seem to have been characterized b 3r the recurring problems of
postwar rehabilitation and reconstruction, economic development, and now
the unwelcome but necessary burdens of increased defense — all of which
have placed new demands on us and taxed our resources, our energies and
our imagination.
ky fellow Governors will bear
occasion I touch briefly on some of
six years and their relation to the
international financial problems of
in the Fund!s Annual Report.

with me, I trust, if on this particular
the financial developments of these
Fund and Bank objectives and to the
today which are set forth so effectively

I believe we agree that the major objective of the Fund is inter­
national cooperation in the promotion of high levels of useful production,
employment and international trade, leading to higher real standards of
living for all people. We hope to achieve this goal through internal

s-3iSi

-

2

-

37

financial stability and through expanded multilateral trade and world­
wide currency convertibility based on realistic exchange rates and on an
internationally competitive price mechanism0 This means we should free our­
selves as much as possible from hampering restrictions whether they take the
form of restrictive tariffs, quotas, prohibitions, exchange restrictions, or
other artificial supports or devices* In this way we hope to foster sound
and efficient production and trade at a high level and to assure the best
possible allocation of resources for the benefit of all of us#

In this connection, I have noted with satisfaction the Managing
Director’
s reference to the Fund consultations on exchange restrictions# The
United States has always stressed the need to make as rapid progress as pos­
sible towards the objectives of freedom from exchange restrictions, non­
discrimination and multilateral trade and payments# I wish to express my
gratification with the careful and substantive manner in which the Fund has
undertaken these consultations# I am confident that they are not only help­
ing to bring the Fund into close and meaningful relations with its member
countries, but are also an important part of our efforts to achieve sound
and stable economies and to promote freer and mutually advantageous relations
with each other#
Unfortunately, we are too aware that the Fund objectives are easily ex­
pressed, but are only imperfectly achieved and then only with great dif­
ficulty# Constant pressures — and pressure groups — are arrayed against
their accomplishment# The immediately popular road usually leads away from
their accomplishment# It is too often only a small and determined minority
in any country — a minority well represented here — which strives to keep
to the difficult but rewarding road of internal financial stability aiad ex­
ternal equilibrium free from artificial supports or controls or restrictions#
i!y own country has shared with other countries the belief that this hard
and difficult road is the responsible path to follow — the path to strength
and independence# Although we have met with many difficulties and obstacles,
our efforts have been in this direction not only because we have believed it
is the right course for us but because we have felt it important to preserve
international monetary stability and the value of a freely convertible dollar
as a stable point of reference in an unstable world#
In common with many other countries we have seen our Government ex­
penditures mount sharply during these postwar years under the impact of in­
creased defense and international aid programs#
colleagues are all too
aware of the reluctance of citizens anywhere to see their taxes sharply in­
creased to provide funds for increased responsibilities#
But if we are to preserve our internal and external stability we must merit
the unpopular role our office calls upon us to play, and take the difficult
road of those fiscal and monetary measures suggested in the Fund Report
which can minimize inflationary pressures rather than relying — with more or
less futility — on measures to control them once they are created# Because
of the permeating and corroding effects of inflation on economic and social
stability, it is a source of deep gratification to me that our U*S# Congress
has been willing to increase taxes three times in less than two years in order
to help meet our necessarily increased expenditures# Through these and other
measures we have been enabled to complete six years of postwar finance with a
net budget surplus of over $3 billion# This surplus, and increased holdings
of Government bonds by non-bank investors, has helped to reduce Government debt
held by the banking system by ^2h billion in the last six years#

o

A Q
v

- 3 These and other measures have helped us to make our contribution
to international monetary stability«, Through these measures we have
achieved what the United Nations has recently reported to be the smallest
increase in the cost of living among the major powers of the free world
in recent years*.
Gratifying as this experience has been, the prospective deficit we
face in this current fiscal year leaves me with the hope that resolute
action may continue to be taken in the future to keep our expenditures
in the United States within our revenues on a pay-as-we-go basis.
In the field of international aid and trade, we have in the postwar years financed economic aid programs in the amount cf $33 billions,
a figure which I believe would have been regarded as fanciful even by an
optimist in 19h%o We have been pleased to see our imports grow signifi­
cantly, and we hope increasingly to see our friends abroad enabled to pay
their way by selling more goods competitively in the world markets, in­
cluding our own, which has been one of sustained high level demand for
many years. At the end of World War II our imports amounted to ,f!j billion
annually. Today the annual rate is $11 billions«, Although part of this
represents price increases, the actual volume of imports has about doubled
since the end of the war*
Here, too, there have been imperfections of which we are aware*
Over a period of years, however, we have shared the views expressed in
the Fund Report and have made it easier for other countries to pay for
goods which they can obtain more cheaply from the American economy. Oixr
tariff rates have been substantially reduced by a succession of steps re­
sulting from agreements with other countries directly, or through the
mechanism of the General Agreement on Tariffs and Trade, It was pointed
out to us by some of our friends that in some ways the procedures of our
customs administration placed unnecessary obstacles in the way of imports*
I am pleased to say we recognized these difficulties and many of the
cumbersome procedures which could be corrected by administrative action
have been removed. We have recommended to the Congress the modification
of a number of items which have been embodied in our statutes and it is my
hope and expectation that the next Congress will complete action on the
Customs Simplification Bill,
Encouraging as this progress in facilitating imports has been, I am
hopeful that future years will see further action by the United States in
implementing its liberal trade policy to permit our friends abroad to earn
their way more and more through trade based on competitive production and
prices and sound international investment rather than on extraordinary
assistance and continuing aid programs* In short, I should like to add
my hearty endorsement to the recently expressed motto of one of our
colleagues when he called for ”
Trade not aid*H

oq
- UIt would not be appropriate for me to fail bo refer again to the
defense programs to which so many countries are now giving priority*
These new burdens, which have been forced upon us against our peaceful
aims and desires, quite correctly are receiving our soberest thought and
attention» They add to the demands on our resources and to the in­
flationary pressures» It is tempting to temporize with these burdens and
to improvise emergency policies or measures to deal with them in the hope
they will be short-lived» Reality and logic, however, would seem to
commend that we absorb these demands as we go unless we wish to suffer the
evils of inflation and its harmful effects on the best utilization of re­
sources aid further progress in efficient production and monetary stability.
Burdensome as present defense programs are, they seera likely to continue
for a sustained period. Moreover, they represent only part of the total
domestic economic activities of some countries and only a small or in­
significant part in other countries. The bulk of the economies of the
world are still devoted to civilian activities* Financing our defense
burdens through the easy policy of inflation can only hinder our progress in
sound reconstruction and development, by distorting our allocation of re­
sources and our production, by threatening both domestic savings and
monetaiy reserves, and by enhancing balance of payments difficulties, which
would lead to the introduction ot strengthening of undesirable foreign ex­
change and trade practices.
The measures to be taken are well known to you gentlemen.
clude î
1.

They in­

Increased production of essential goods and increased
productivity from available capacity and resources*

2* Postponement of less essential government and civilian
expenditures.
3o

Restriction of investment and credit to essential purposes.

he

Increased taxation directed to reduction of less essential
civilian expenditures and to the promotion of essential
and efficient production.

5>. Encouragement of savings,
6.

Minimum reliance on controls and restrictions domestically
and internationally.

7*

Rates of exchange which are realistic and which contribute
to international balance and the removal of restrictions.

These measures are well known» They are hard and difficult. But they
are the road to real strength and independence. It is the heavy responsi­
bility of ity colleagues here — of Finance Ministers, Central Bank Governors,

40
- $ -

and their associates — to take the lead in their countries in making ef­
fective the difficult but rewarding policies which will, in fact, produce
increased economic as well as political and military strength* These are
measures which will achieve internal and external balance# These are
measures which will stabilize and maintain the purchasing power of cur­
rencies and preserve the value of savings# These are measures which will
help achieve and maintain the social and economic stability which are
necessary for the preservation of freedom and for higher standards of
living for alio
We have a choice, We can take the easy road of inflation and re­
strictionism which leads to instability and weakness* Or we can take the
hard road to strength and independence — the road to monetary stability
and freedom. These are the Fund and Bank objectives. It is my fervent
hope that for the sake of the future of our countries and for the future
of the Fund and Bank we will all take the more constructive road*

oOo

* /■%'
rm i '

feit f I
K

Iü
ö

í La 11 ti Amor i c& h&

%.ír

^ r-v- H y

«i i

tú inip iii other ir
the »orid.

ig#

ti

iü

fney,

developing a deep
for

IO

eooper a t i o n ,

in the defense of

of th
of «or*. »rift
i t t world

acreage and improve farming
techniques is & tremendous
contribution to a greater and better
world of tomorrow.
fhis confidence is one. which,
I assure you, the people of the
United States share with you.

ft

realise fully th*t the progress of
your nations helps to give the
whole world assurance that the
conquest of man over his domestic
and economic problems is far more

24
the forces of oppression.
courage

The

men
ho till their 1 ields

or go about their work in shops
and factories, the courage of the
dier on the field of battle,
the courage of the statesman who
directs the destiny of his nation,
are siIe xamples that the world
can follow
id of confidence, you «Iso
are amply possessed.

The confidence

in tí®élin

22
come to realize that only through
cour«ge, confidence and determi
efforts can *1 strip this cloak
from the destructive forces
and expose the tyranny which
threatens so much of the world
courage, your country
have a f u l l
messore.

tit

overflowin

Courage serves as'a

years to earns.

These human relationsh

*r@ of i«measurable value to Mankind,
in increasing our mutual understanding
and in preserving # democratic spirit
among people.
In the free world we face the
ch&ilengi of trying to continue
economic and social growth and
expansion in a world filled with
uncertainties' imposed by the old and
familiar forces of tyranny disguised
rn a new cloak.

We have

- 19

Q

iS

beautiful avenues
They have visited
your national galler
Many of them have
vistas of your mount
and broad plains.

©

appreciated the anci
significance of
early civilizati

m

better understanding of our mutual
interests in development and in
achieving financial stability.

|p

are also very proud that the
txport3

Import Sana hi® been able to

furnish such significant aid
through constructive loans.
It is highly pleasing to see
this economic progress throughout
this Hemisphere.

Such progress

builds a strong bulwark against the
aggressive forces of Communism and
other reactionary forces.

Your

«sbassa

wmm
- i

through both public and private
n
financial institutions, to insure
all-round and general economic
;

/N-*

'expansion,

The records show that

much progress ta^/baing made through
the use of your own financial
resources, frequently with the help
of private investment

the

United Stits# and other countries.
Aa an example of this type of
development, the Economic Commission
for Latin America has pointed to the

problems

h »uh lie ah© aà for ail

0,1 us.
President Truman has recognizea
the Vital importance of nations
working together itwtri the common
objective of world peace and "arid
prosperity.

Through our Point IV

Program we have undertaken to
activate this conception and are
cooperating with nations in applying
bettor techniques to industry ana
aariculture «

In the vital work of

8
achieved in many of your countries.
You h*ve proved young in spirit
and you &ie young in energy.

Your

Oickgruund of ancient civilization«,
your inheritance of European traditio
and the lustration efforts of nan suchj
as Miguel Hidalgo and i iinon Bolivar,
ail have served to set the stage for t!
present ¡wodern era.
The statement made cy secretary

of state /-ehe son concerning Brazil

■p '■ I —

—

B H ,:f

when he visited there recently,

| :

r

almost universally.

This is the

direct, forceful and vigorous way
1-'■

in which you are moving forward
with economic development.
in the capitals of your nations,
and in your growing industrial
centers, the results of your plans
and of your work toward economic
progress can readily be identified.
New industries are developing and
older ones are expanding.

Great

buildings are rising in many of your

Central and South America.

Through

these personal experiences I have
gained an understand!ng insight into
your culture and way of lite.

I

have learned to appreciate the
profound sense of international honor
of our sister republics in this
ere.

During the past decade

our appreciation of your significa
important place in the community
of nations has been even further
enhanced.

IgSM

F'
,
'-I:• |S
"v
fr
*',

n

4

H S -- ** if

B M|
#
j
** r \

4'

mm-'

$ b $&E1Pl»S59BMi

I

th«,-

jf r. of your delegations

n*ve 'represented your nations in
Uni xed States.

They have Drought

with them to Washington the
intelligence and dignity and the
capacity for warm friendships which
are so characteristic of your peoples.
These qualities «re, I believe, among

the most valued ’
'exports” of any
n&tion.
I also have had the opportunity
to visit a number of countries in

TREASURY DEPARTMENT
Washington

—3 /^

The followimg address by Secretary of the Treasury
John W* Snyder before the Latin-American
delegates of the Seventy Annual Meeting,
Boards of Governors, International Bank for
Reconstruction and Development and the
International Monetary Fund, at the Bankers
Club, Mexico Cityh
at g pAa. CST T
is for release aw
v bine.

77
i w
TREASURY DEPARTMENT
Washington

The following address by Secretary of the Treasury
John W. Snyder before the.Latin-American delegates
of the Seventh Annual Meeting, Boards of Governors,
International Bank for Reconstruction and Development
and the International Monetary Fund, at the Bankers
Club, Mexico City, is scheduled for delivery at
2:00 p,m,, CST, Monday, September 8 , l9?2, and is
for release at that time.
My distinguished colleagues and friends: I am delighted to gather
here with you in this lovely city of Mexico as the guests of President
Aleman and his great countrymen. It has been my pleasure to have had the
personal friendship of President Aleman for many years and it affords
me much satisfaction for us to be honored with his invitation to hold our
annual meeting here, just before he retires after a brilliant and produc­
tive term of office as President of the United Mexican States,
I bear to each of you the greetings of President Truman and have the
privilege of extending to you his cordial good wishes.
To be together again with you distinguished gentlemen, and to address
you as colleagues participating in the World Bank and the International
Monetary Fund is a privilege and a pleasure which I shall long remember.
On all previous occasions of the annual meetings of the Bank and the Fund,
we have gathered to break bread in this pleasant informal fashion. And
so through the years I have come to know and appreciate your sterling
friendship.
In the capital of my country, in Washington, I have had the privilege
of meeting and knowing most of the members of $rour delegations who have
represented your nations in the United States. They have brought with
them to Washington the intelligence and dignity and the capacity for warm
friendships which are so characteristic of your peoples. These qualities
are, I believe, among the most valued ’
‘
exports”of any nation,
I also have had the opportunity to visit a number of countries in
Central and South America, Through these personal experiences I have
gained an understanding insight into your culture and way of life, I
have learned to appreciate the profound sense of international honor of
our sister republics in this Hemisphere, During the past decade our
appreciation of your significant and important place in the community
of nations has been even further enhanced.
S-3152

2 -

/

4

Through the years, as Secretary of the Treasury, and as my country»s
Governor on the Bank and ‘
the Fund, I have observed from an excellent
vantage point your economic and social progress* lour countries present
a wide variation in topography, climate and natural resources* But
throughout the diversified areas within your borders, it seems to me
there is one major characteristic which appears almost universally. This
is the direct, forceful and vigorous way in which you are moving forward
with economic development*
In the capitals of your nations, and in your growing industrial centers,
the results of your plans and of your work toward economic progress can
readily be identified* New industries are developing and older ones are
expanding. Great buildings are rising in many of your cities. Transportation
and power projects are moving forward swiftly in many new areas.
The over-all expanding production of Latin America is becoming more
and more impressive« During the past decade your industrial growth has
been particularly significant.
Agricultural progress, while less spectacular', has in many ways proved
more fundamental, as it has been noted that increases in production ranging
from 30 to 60 percent have been achieved in many of your countries.
You have proved young in spirit and you are young in energy. Your
background of ancient civilizations, your inheritance of European traditions
and the liberation efforts of men such as Miguel Hidalgo and Simon Bolivar,
all have served to set the stage for the present modern era.
The statement made by Secretary of State Acheson concerning Brazil
when he visited there recently, applies equally well to all the. nations of
our hemisphere. »»Here**, he said, nI feel the surging energy of a new
country, which, like my own, has confidence in its ability to provide for
the future, to provide a great flow of material goods and the great
inspiration of firm belief in freedom and the dignity of man."
Signs of progress, of hope, and of achievement should not, of course,
make us less conscious.of the many problems which lie ahead for all of us.

inrough our Point IV Program we have undertaken to activate this conception
and are^ cooperating with nations in applying better techniques to industry
and agriculture. In the vital work of improving health and education, we
are working together more effectively than ever before.
_

Experience in my country has been that industrial progress requires

institutions, to insure all-round and general

- 3 expansion* The records show that much progress is being made through the
use of your own financial resources, frequently with the help of private
investment from the United States and other countries. As an example of
this type of development, the Economic Commission for Latin America has
pointed to the increasing production in your countries of building
materials, light chemicals and a wide variety of products.
A large number of projects, I find, have been developed through inter­
national loans for constructive purposes. These include the Miguel
Aleman hydroelectric system in Mexico, power developments on the Rio Lempa
in El Salvador and at the Paulo Afonso Falls in Brazil, transportation
projects in Brazil and Colombia, and steel industries in Brazil and Chile*
International loans, carefully conceived and carefully related/to capacity
to administer and service them, can make a very important contribution to
economic expansion. We have been happy to participate with'you in the
World Bank and the International Monetary Fund and through these institutions
to foster a closer and better understanding of our mutual interests in
development and in achieving financial stability* We are also very proud
that the Export-Import Bank has been able to furnish such significant aid
through constructive loans*
It is highly pleasing to see this economic progress throughout this
Hemisphere. Such progress builds a strong bulwark against the aggressive
forces of Communism and other reactionary forces* Your increased industrial
production means a higher level of international trade that is mutually
beneficial to all countries of our Hemisphere and the world at large* The
trade experience of the United States, alone, points up the growing impor­
tance of Latin American exports. Before World War II our imports from
Latin America represented about 20 percent of the total imports into the
United States* In recent years, approximately 30 percent of our total Imports
have come from your countries. The value of these imports is now more than
six times its value in prewar years* The dollars earned in.this way have,
in turn, helped to finance your purchases in other countries of such urgently
needed goods as electrical, industrial and agricultural machinery.
^ These matters I have been discussing deal with practical economic and
business considerations* But they provide a basic common ground upon which
we meet in mutual understanding*
Beyond the range of business relations,
which your nations possess are of increasing
part of our Hemisphere* While many hundreds
seen your beautiful and inspiring lands, all
time for only a visit of brief duration*

the culture, customs and heritage
interest to us in the northern
of thousands of visitors have
too frequently they have found

They have viewed the splendid public buildings located on the beautiful
avenues of your cities* They have visited your museums and your national
galleries of arts* Many of them have seen the beautiful vistas of your
mountains, valleys and broad plains. They have appreciated the ancient
historical significance of early civilizations*

- h-

7
i p
\ ji

*

But although they have seen many magnificent things, and visited many
renowned places, too few have been able to stay long enough to appreciate
fully the character and the warmth of your people* From my association
with you gentlemen and from my visit here, I shall carry home with me again
an appreciation of our comradeship* I ^hall remember this, and our
previous associations, for many years to come# These human relationships
are of immeasurable value to mankind, in increasing our mutual understanding
and in preserving a democratic spirit among people*
In the free world we face the challenge of trying to continue economic
and social growth and expansion in a world filled with uncertainties
imposed by the old and familiar forces of tyranny disguised in a new cloak*
We have come to realize that only through courage, confidence, and determined
exforts can we strip this cloak from the destructive forces and expose the
tyranny which threatens so much of the world.
Of courage, your countrymen have a full and overflowing measure. Courage
serves as a standard for the world to respect* This is true, whether we are
speaking of the courage of the businessman, the farmer, or the financier.
We are speaking of those Ttfho take financial risks for sound and useful eco­
nomic advancement, of those who take risks in dealing with the forces of
nature, or in opposing the forces of oppression* The courage of men who till
their fields or go about their work in shops and factories, the courage of
the soldier on the field of battle, the courage of the statesman xfho directs
the destiny of his nation, are all examples that the world can follow.
And of confidence, you also are amply possessed. The confidence you
have shown and continue to demonstrate in the development and progress of
your own nations is an example for all to admire. Your confidence in your
countries and their future is not based upon many centuries of history
alone. It is based also upon the realization that what you are doing today
to expand your industries and trade, to develop your national resources,
and to increase your agricultural acreage and improve farming techniques is
a tremendous contribution to a greater and better world of tomorrow.
qx . Thlf confidence is one, which, I assure you, the people of the United
S a t es share with you. We realize fully that the progress of your nations
! w PS+ • gXTe the wl?ole worad assurance that the conquest of man over his
and ecoJomic Problems is far more important, and far more worthy,
than the conquest of man over man.
*
^

as men who are engaged in this worthy type of conquest of the
are
+ hl?h t]?e RePublics of Latin America have been blessed, you
devpwg
t 0 insplre other free nations of the world. They, too, are
tocrA-n^111? a.^eep sense oi> the need for cooperation, and of working
together in the defense of the free world.
S
stand-alone “m ! 7 •? ma3? tain its freedom and “s independence, it cannot
t h o u g h it must preserve its individuality and its integrity,
participation in the family of nations of the Western Hemisphere, in

77
-

5

-

the United Nations and in the World Bank and International Monetary Fund
has gone far toward creating the cooperative spirit — the mutuality
of effort — which must exist if all our nations are to be defended* against
aggression, and the welfare of our people increased*
The material and cultural values you have given the world, and the
sense of dignity and cordiality you have so graciously accorded to other
nations are cherished by the rest of the free world*
With understanding, with conscientiousness, and with loyalty you have
shared your development with my country and other countries of the world,
I express to you, here ana now, the gratitude of my fellow countrymen, and
our appreciation of your friendship, your hospitality, and your warmth of
heart,

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 b2 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section Uf> of the Revenue Act of 19i|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. I4.I8 , 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

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 aiy 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

September 11. 19S2 > in cash or other immediately available
fcopc
funds or in a like face amount of Treasury bills maturing September 11 19%
iSx
Cash and exchange tenders will receive equal treatment. Cash adjustments
j

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

K S M X I

^Wa'Fhlngtnn

JT-

FOR RELEASE, HORNING NEWSPAPERS,
Thursday, September U, 1952
HSJT

3/"J

The Secretary of the Treasury, by this public notice, invites tenders
for $ I ,200,OOP3 000 , or thereabouts, of

91 -day Treasury bills, for

cash and in exchange for Treasury bills maturing September n , 1952 , in
the amount of $ 1,200.78U.000 > to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided*
of this series will be dated
December 11, 1952'
terest*

September
j g jli, 1952

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, 15,000, $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 rclock p*m., East ern ¿¿kbandarok t ime, Monday, Sept ember 8, 195^
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 MORNING NEWSPAPERS,
Thursday, September 4, 1952

WASHINGTON, D .C .

S-3153

The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
September 11, 1952, in the amount of $1,200,784,000, to be issued
on a discount basis under competitive and non-competitive bidding
as hereinafter provided* The bills of this series will be dated
September 11, 1952, and will mature December 11, 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, September 8 , 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 sub­
mit 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 incorpo­
rated 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

-

2

-

Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final* Subject to these reservations,
non-competitive tenders for $2 0 0 , 0 0 0 or less without stated price
’from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on September 11, 1952, in
cash or other immediately available funds or in a like face amount
of Treasury bills maturing September 11, 1952._ Cash and exchange
tenders will receive equal treatment. Cash adjustments will be
made for differences between the oar value of maturing bills accept
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 havd
any exemption, as such, and loss from the sale or other disposition^
ofvTreasury bills shall not'have any special treatment, as such,
under the Internal Revenue Code, or laws amendatory or supplementär;
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 origi­
nally 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 I
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
income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, &ij
the^amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, .as
ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch,
oOo

¡Ill' '

S3

*• 1 0 *

many steps we have taken to achieve modernisation will
be the source of even greater improvements and progress
in the days to come. This the taxpaying public expects
of us ~~ and this it shall receive!^

9

directly concerned with the operation of the tax laws.
//t

I

want to acknowledge on behalf of the Treasury,

particularly, the support given Reorganization by the
Congressional delegations from Maryland, Virginia and
West Virginia* Senator

O'Conor

and other members of the Maryland delegation were most
effective in their support# In accomplishing reorgani­
zation we also had the effective support of Senators
Byrd and .y BBW fe Robertson of Virginia and
Senators m*tm**L Kilgore a n d N e e l y of
West Virginia#
^The tightened supervision of the conduct of
employees inaugurated with the establishment of the
Inspection Service is part of the over-all taut
operations of the Bureau made possible by the shorter

lines of authority between Washington and the field
resulting from modernization*
^Secretary Snyder, Commissioner Dunlap, and all of
us In the Treasury Department are determined that the
reorganized Revenue Service will be of unquestioned
integrity and will operate with the greatest possible
efficiency and economy. We also are certain that the

«» Q *»

*8
^Thls gathering together in one piece of ell the
different jobs to be done in the Revenue Service is one
of the biggest steps taken to meet the taxpayer1®
problems a little easier*
trAn integral part of the Reorganisation of the

Revenue Service has been the creation of an independent
Inspection Service, under direction of an Assistant
Commissioner, to carry on hereafter a day-by-day check
on employee conduct and all of the other operations of
the Serviei
"It is

^

“"')
true that in the very busy

days of World War II, some of those placed in
positions of responsibility have not measured up to

the demands upon them* But where such failures in the
public trust have been discovered, the Bureau has
moved quickly to dismiss the guilty* And in doing
this, the Treasury and the Bureau have cooperated in
every way with Committees of Congress that have
investigated affairs of the Revenue Service*
* As you know, the Congress has been deeply

interested

in the modernisation of the Service and its attendant
problems ever since the beginning and many fine sugges­
tions have come from members of Congressional committees

7*
'¿8

not exist before* He will have responsibility for
supervising the three Directors of Internal Revenue
whose offices will he located in Baltimore, Richmond,
and Parkersburg* nttHMIfitaflM^u And the
District ConHfliagioMr will report directly to the
/t&i^t**A*

Commissioner in Washington*

**It is with the Directors of Internal Revenue—
who are the men replacing the Collectors of Internal
Revenue— that the taxpayer will do practically all
of his business*
* In each of the offices of the Director of
Internal Revenue will be incorporated not only the
function of tax collection, but the work previously
done by Internal Revenue Agents, Special Agents,
Alcohol and Tobacco Tax Division investigators and
inspectors and others* In fact, about 90 per cent
of the people who work for the Bureau of Internal
Revenue throughout the country will work in the
offices of the Directors of Internal Revenue*

~ 6 *■

making merit the sola basis for the selection

of Revenue Service personnel the nation has been
assured greater efficiency, high integrity and fair
and equitable administration of the tax laws*
/;The reorganised offices of the Internal Revenue
Service her© in this new Baltimore District and
throughout the Service are going to give the taxpayer
fast and efficient service* The most important thing,
from the taxpayer’s viewpoint, will be his ability
hereafter to transact all his business with the
Revenue Bureau in one place*
M Instead of having to deal, as in the past, with

different offices according to the type of tax he paid,
the taxpayer will now deal with just one office,
regardless of the type of tax* And if he wants advice,
or if he has a complaint, he will go to that same
office*
it

As a major step in Reorganisation the administra­

tion of the Revenue Service has been simplified and
its lines of authority leading Hit to the Commissioner
of Internal Revenue in Washington tightened*
Mr* Callahan, the District Commissioner who is
taking charge here today has a new jobj one which did

TB
ideas from which, more than 2,(XX) were adopted and will save the
■ w » « .
tf

It

* * .

^

w

on this firm hast of employee cooperation that the suceesi

is

of our modernization program rests»

governed by Civil Service regulations»

I
«•S*“

88
to collect In full from those seeking to evade their taxes*
^The end of the second world %

and the return to civilian lift

¿vyyn*****

of the men too had been serving their country relieved the manpower
A
nroblem and made it possible six years aro to begin the Job of
modernisation in earnest* Also* more and better business machines
became available with which the Job could be done more efficiently
and at less coat*
# But to modernise a system almost a century old was not a Job
to be done ouickly. Every suggested change in procedure had to be
carefully tested before making it part of the Bureau's way of doing
business* And all the time, the Bureau had to do its regular daily
Job of gathering taxes and enforcing the many new laws, such as the
excess profits tax*
*7his job of modernising the Revenue Service has been a big Job,
It has been

a

tough Job*

But

the fact that we are here today is
*

full proof that it has been done and done well* The six years of to
m

work have borne fruit.
^ Reorganization has been made possible by the efforts of the
men and women who work for the Revenue Service both at the top in
Washington and at the grass roots in all the offices of the Revenue
Services throughout the land*
* Many of the suggestions for improving the Revenue service have
come from emoloyees in

th e

ranks who, after the Treasury Department

set uo its committee on awards in 1947, submitted more than 14,000
4

r> Hn
VW \
r)

"But even as the first steps toward reorganisation were
taken six years ago, the job of the Revenue Servlet still was ex­
panding, under the impact of a post-war business boom* Between 1946
and 19S2 the number of Income tax returns filed annually rose 25
percent and the number of cornorate returns expanded 47 percent* Bui
the number of workers in the Bureau rose only 2*5 percent*
*That small rise in the number of workers employed by the Bureau
simply meant more work for everyone and made modernization more in*
oerative than ever*
l#3ut as modernized operations were gradually introduced, more j
workers were freed from burdensome daily chores no longer required
and put to work on other more productive operations*
^The redistribution of the work-load helped to Improve Revenue
Service operations in many ways* Investigators were freed for a
more intensive fight against tax evaders and perpetrators of tax
frauds* In the fiscal year ended last June 20, the Intelligence
Division of the Revenue ferries investigated 2,855 cases and re­
commended the assessment of additional taxes and penalties in excess
of f950jmillion* It also recommended prosecution

of

>t#§§®cases,

• percent were in the gambler and racketeer category, and
o b t a i n e d ^ ^ r c o n v i c t i & £ O f ^ r i c t & b?'©
lir*his increased pressure against tax evaders recognises that thfj
average taxpayer meets bis obligations to the Government

h o n e s t ly

and in full, and expects his Revenue Service to exert every effort
-3-

uG

- 2& -

The problem, however, had been fully recognized and when
Secretary Snyder became head of the Treasury in 1946 he
immediately set in motion the six-year-long program of
self-improvement which culminated in Reorganization Plan No# 1
for 1952, adopted by the Congress on March 13 of this year#

had been installed and

ju st

a few weeks ago the headquarters

of the Bureau of Internal Revenue in v<&shington was
reorganised#
f^This program,of modernizing the business methods of the
^

up to-date

tools with which to operate the world*s biggest business
enterprise, the collection of the revenues of the United States»
^The submission to Congress last January of Reorganization
Plan Ho. 1 for 1952 marked the start of a new era in the
operation of that vast business, an era in which the monumental
task of collecting taxes will be carried out more efficiently
and at less cost to the taxpayer*
#Until the outbreak of the second World War in 1939 and the
succeeding years of extraordinary demands upon the Bureau of
Internal Revenue, the system of tax gathering that had grown
up/since 1862 -forked well enough# But when, beginning In
1940, the job suddenly expanded beyond all anticipation, the
infirmities of the ancien^s^^m became quickly apparent*
*however, there was nothis**that could be done to modernize
the system during the war because both men and machines were
scarce and the Bureau had a tremendous day-to-day job to do
in enforcing the multitude of new war-time revenue laws#

A FORWARD

STEP

IN TAX ADMINISTRATION

Mayor D*Alessandro, Judge Soper, Commissioner Dunlap,
dlstingulslied guests and employees of the Revenue Service;
it is with great pleasure that I speak to you this morning*
I am particularly glad to have Mayor D#Ale

ndro with us.

Some 20 year3 ago he was employed as a general office deputy
in the Maryland collection district*of the Bureau of
Internal Revenue. While he has gone far in the intervening
years I am happy to observe that he still retains a personal
interest in our service*
^This is an occasion of much satisfaction to all of us in
the Treasury Department* Baltimore holds an enviable place
in the history of the United States and can be proud of her
role as the nerve center of a great new collection district
in the nation* s revenue system*
^Today*s installation of a new District Commissioner to
supervise the operations of the Revenue Service in the
States of Maryland, Virginia and West Virginia and the
District of Columbia is another great forward stride in
carrying out the modernization of the nation*s 90-year-old
Revenue Service*
4

^frhis is the third District in which reorganization has

become effective* Previously, Chicago and New York City

§
§
g|

|ü$

R e le a se 10:30 A.M. EDT
Monday, September 8 , 1952

B altim o re , Md., September 8 - Under S e c re ta ry o f the
T reasu ry Edward H. F o ley s a id to d ay , in d is c u s s in g "A Forward Step
in Tax A d m in istratio n ” a t cerem onies here fo r the i n s t a l l a t i o n of
o f f i c i a l s f o r the reo rg an ize d I n t e r n a l Revenue S e r v ic e fo r the
d istr ic t

com prisin g M aryland, V ir g in ia , West V ir g in ia and the

D i s t r i c t o f Columbia:

RELEASE 10:30 A.M.,-EDT
Monday, September 8, 1952

S-3154

Baltimore, Md,, September 8 - Under Secretary of the Treasury
Edward Ha Foley said today, in discussing nA Forward Step in Tax
Administration ^at ceremonies here for the installation of officials
for the reorganized^Internal Revenue Service for the district com­
prising Maryland, Virginia, West Virginia and the District of
Columbia:
This is an occasion of much satisfaction to all of .us in the
Treasury Department, Baltimore holds an enviable place in the
history of the United States and can be proud of her role as the
nerve center of a great new collection district in the nation's
revenue system.
Today's installation of a new District Commissioner to super*
vise the operations of the Revenue Service in the States of
Maryland, Virginia and West Virginia and the District of Columbia
is another^great forward stride in carrying
rying cut the modernization
of the nation's 90-year-old Revenue Service,
tf m*L. •

•

,
ruis 1S the third District in which reorganization has
become effective. Previously, Chicago and New York City had been
installed and just a few weeks ago the headquarters of the Bureau
ox internal Revenue in Washington was reorganized.
_"This program of modernizing the business methods of the
service is giving our employees up-to-date tools with which to
operate the world's biggest business enterprise, the collection of
the revenues of the United States.
pi y^^^^JHission to Congress last January of Reorganization
xan no, l for 1952 marked the start of a new era in the operation
i at yast Business, an era in which the monumental task of col!?xe®
wil1 be carried out more efficiently and at less
oost ?g
to the
taxpayer.
tbe outbreak of the second World War in 1939 and the
InW i ! years;Of, extraordinary demands upon the Bureau of
ernai Revenue, the system of tax gathering that had grown up

-

2

-

qç

'L.w? I_J

since 1862 worked well enough* But when, beginning^ in#1940, the
job suddenly expanded beyond all anticipation, the infirmities of
the ancient system became quickly apparent.
"However, there was little that Could be done to modernize
the system during the war because both men and machines were scarce
and the Bureau had a tremendous day-to-day job to do in enforcing
the multitude of new war-time revenue laws.
"The problem, however, had been fully recognized and when
Secretary Snyder became head of the Treasury in 1946 he immediately
set in motion the six-year-long program of self-improvement which
culminated in Reorganization Plan No. 1 for 1952, adopted by the
Congress on March 13 of this year.
"But even as the first steps toward reorganization were taken
six years ago, the job of the Revenue Service still was expanding,
under the impact of a post-war business boom. Between 1946 and
1952 the number of income tax returns filed annually rose 25 percent
and the number of corporate returns expanded 47 percent. But the
number of workers in the Bureau rose only 2*5 percent.
"That small rise in the number of workers employed by the
Bureau simply meant more work for everyone and made modernization,
more imperative than ever.
"But as modernized operations were gradually introduced, more
workers were freed from burdensome daily chores no longer required
and put to work on other more productive operations.
#’’The redistribution of the work-load helped to improve Revenue
Service operations in many ways. Investigators were freed for a
more intensive fight against tax evaders and perpetrators of tax
frauds. In the fiscal year ended last June 30$ the Intelligence
division of the Revenue Service investigated 3,855 cases and
recommended the assessment of additional taxes and penalties in
excess of $250 million. It also recommended prosecution of 1,284
cases, of which approximately 50 percent were in the gambler and
racketeer category, and obtained 563 convictions and pleas of nolo
contendere.
If nr

This increased pressure against tax evaders recognizes that
tbe average taxpayer meets his obligations to the Government
honestly and in full, and expects his Revenue Service to exert every
eifort to collect in full from those seeking to evade their taxes.

-3-

98

’’The end of the second World War and the return to civilian
life of the men and women who had been serving their^ country
relieved the manpower problem and made it possible six years ago
to begin the job of modernization in earnest* Also, more^and
better business machines became available with which the job could
be done more efficiently and at less cost*
’’But to modernize a system almost a century old was not a job
to be done quickly* Every suggested change in procedure had to be
carefully tested before making it part of the Bureau’s way of doing
business* And all the time, the Bureau had to do its regular daily
job of gathering taxes and.enforcing the many new laws, such as the
excess profits tax*
’’This job of modernizing the Revenue Service has been a big
job* It has been a tough job« But the fact that we are here today
is full proof that it has been done and done well® The six years
of hard work have borne fruit.
’’Reorganization has been made possible by the efforts of the
men and women who work for the Revenue Service both at the top in
Washington and at the grass roots in all the offices of the Revenue
Services throughout the land.
’’Many of the suggestions for improving the Revenue service
have come from employees in the ranks who, after the Treasury
Department set up its committee on awards in 1947, submitted more
than 14,000 ideas from which more than 2,000 were adopted and will
save the Bureau more than half a million dollars every year.
”lt is on this firm base of employee cooperation that the
success of our modernization program rests.
"Furthermore, the Reorganized Revenue Service wall be a career
service from top to bottom and one which will reward ability,
integrity and devotion to duty* Only the Commissioner ■of Internal
Revenue himself, remains an appointee of the President, by and with
the advice and consent of the Senate. Civil Service rules have
governed the selection of the men who are being sworn in here today
ana those previously sworn in at Chicago and New York and at the
headquarters of the Bureau in Washington. And all future selections
will be governed by Civil Service regulations.
^"By making merit the sole basis for the selection of Revenue
Service personnel the nation has been assured greater efficiency,
high integrity and fair and equitable administration of the tax
laws.

-4-

37

’’The reorganized offices of the Internal Revenue Service
here in this new Baltimore District and throughout the Service
are going to give the taxpayer fast and efficient service. The
most important thing, from the taxpayer’s viewpoint, will be
his ability hereafter to transact all his business with the
Revenue Bureau in one place.
’’Instead of having to deal, as in the past, with different
offices according to the type-of tax he paid,the taxpayer will
now deal with just one office, regardless of the type of tax.
And if he wants advice, or if he has a complaint, he will go to
that same office«
”As a major step in Reorganization the administration of the
Revenue Service has been simplified and its lines of authority
leading to the Commissioner of Internal Revenue in Washington
tightened,
”Mr. Gallahan, the District Commissioner who is taking charge
here today has a new job; one which did not exist before« He will
have responsibility for supervising the three Directors of
Internal Revenue whose offices will be located in Baltimore, Richmond,
and Parkersburg* And the District Commissioner will report directly
to the Commissioner of Internal Revenue in Washington*
"It is with the Directors of Internal Revenue--who are the men
replacing the Collectors of Internal Revenue--that the taxpayer
will do practically all of his business.
’In each of the offices of the Director of Internal Revenue
will be incorporated not only the function of tax collection, but
the work previously done by Internal Revenue Agents, Special
Agents, Alcohol and Tobacco Tax Division investigators ana inspec­
tors and others* In fact, about 90 per cent of the people who
work for the Bureau of Internal Revenue throughout the country
will work in the offices of the Directors of Internal Revenue.
* This gathering together in one place of all the different
jots to be done in the Revenue Service is one of the biggest steps
taken to meet the taxpayer’s problems a little easier.
An integral part of the Reorganization of the Revenue Service
jj?? boon the creation of an independent Inspection Service, under
direction of an Assistant Commissioner, to carry on hereafter a
check on employee conduct and all of the other operations
°t the Service.

-

5

-

!,It is regrettably true that in the very busy days of World
War II, some of those placed in positions of responsibility have
not measured up to the demands upon them* But where such failures
in the public trust have been discovered, the Bureau has moved
quickly to dismiss the guilty* And in doing this, the Treasury
and the Bureau have cooperated in every way with Committees^of
Congress that have investigated affairs of the Revenue Service#
nAs you know, the Congress has been deeply interested in the
modernization of the Service and its attendant problems ever since
the beginning and many fine suggestions have come from members of
Congressional committees directly concerned with the operation of
the tax laws*
"I want to acknowledge on behalf of the Treasury, particularly
the support given Reorganization by the Congressional delegations
from Maryland, Virginia and West Virginia* Senator O’Conor and
other members of the Maryland delegation were most effective in
their support* In accomplishing reorganization we also had the
effective support of Senators Byrd and Robertson of Virginia and
Senators Kilgore and Neely of West Virginia.
"The tightened supervision of the conduct of employees inau­
gurated with the establishment of the Inspection Service is part
of the over-all taut operations of the Bureau made possible by
the shorter lines of authority between V/ashington and the field
resulting from modernization.
"Secretary Snyder, Commissioner Dunlap, and all of us in the
Treasury Department are determined that the reorganized Revenue
Service will be of unquestioned integrity and will operate with
the greatest possible efficiency and economy. We also are certain
that the many steps we have taken to achieve modernization will
be the source of even greater improvements and progress in the
iays to come. This the taxpaying public expects of us -- and this
it shall receive!"
0O 0

p
v/pw
RELEASE SB ffllSS W S M JW g ,
TueaAay. Sapteaber 9 , X g gt.

Y-~ 3/5'J;

T he S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t t h e t e n d e r s f o r
$ 1 , 2 0 0 , (XX),0 0 0 , o r t h e r e a b o u t s , o f 9 1 - d a y T r e a s u r y b i l l s t o b e d a t e d S e p te m b e r 11 and
t o m a t u r e D ecem b er 1 1 , 1 9 5 2 , w h ic h s e r e o f f e r e d on S e p te m b e r b , s e r e o p e n e d a t tb#
F e d e r a l R e s e r v e B a n k s o n S e p te m b e r

S#

T he d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s *
T o t a l a p p l ie d f o r - $ 2 ,2 7 7 ,6 0 3 ,0 0 0
T o ta l ac c e p te d
*
1 ,2 0 1 ,0 3 3 ,0 0 0

A v e rag e p r ic e

-

( I n c l u d e s $ 2 1 * 1 ,9 0 2 ,0 0 0 e n t e r e d on a
n o n - c o m p e t i t i v e b a s i s a n d a c c e p t e d in
f u l l a t t h e a v e r a g e p r i c e show n below)
9 9 * 5 3 2 / E q u i v a l e n t r a t e o f d i s c o u n t ap p rcoc* 1 * 8 5 0 $ p e r anmi

R ange o f a c c e p te d c o m p e titiv e b i d s *
H ig h
how

( E x c e p t i n g tw o t e n d e r s t o t a l i n g $325,000)

- 9 9 *5 3 6 E q u i v a l e n t r a t e o f d i s c o u n t ap p rcoc* 1 * 8 2 8 $ p e r anna
- 9 9 *5 3 1
8
«
»
«
«
1 .8 5 5 $ H

( 8 0 p e r c e n t o f t h e am oun t b i d f o r a t t h e lo w p r i c e w a s a c c e p t e d )

F e d e r a l R ese rv e
D istr ic t

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

T o ta l
A c c e p te d

B o sto n
New Y o rk
P h ila d e lp h ia
C le v e la n d
R ichm ond
A tla n ta
C h ic a g o
S t * L o u is
M in n e a p o lis
K an sas C ity
D a lla s
San F r a n c isc o

|

$

TOTAL

2Q,9ZOf OOO
1 ,5 7 9 ,1 0 3 ,0 0 0
36,1*23,000
6 3 ,1 2 0 ,0 0 0
2 9 ,7 2 9 ,0 0 0
3 5 ,8 6 0 ,0 0 0
2 3 6 ,6 0 7 ,0 0 0
3U ,60 3 ,0 0 0
2 2 ,6 6 0 ,0 0 0
1*8,163,000
5 3 ,8 1 1 ,0 0 0
U 6 .2 9 U .0 0 0

$ 2 ,2 7 7 ,6 0 3 ,0 0 0

,

13,220,000
802,708,000
18,103,000
38,1*58,000
19,971*,000
2U ,280,000
126,917,000
18,003,000
19,21*0,000
16,61*8,000
38,61*1,000
6U.8U1.OO0

$1,201,033,000

TREASURY D EPARTMENT
Information Service

WASHINGTON, D .C .
IUiM
U

RELEASE M O R N I N G NEWSPAPERS,
Tuesday,-September 9,1952,

S-3 1 5 5

The Secretary of the T r e a s u r y announced, last even i n g that the
tenders for $1,200,000,000, or thereabouts, of 91-day Trea s u r y bills
to be dated September 11 and to matu r e December 1 1 , 1 9 5 2 , w h i c h were
offered on September 4, were opened at the Federal Reserve Banks on
September 8 .
The details of this issue are as follows:
Total applied for - $ 2 , 2 77,603,000
Total accepted
- 1,201,033,000 (includes $241,902,000
entered on a. n o n - c ompetitive
basis and. a c c e p t e d i n full
at the average price shown
below)
Average price
- 9 9 .5 3 2 / Equivalent rate of d i s c o u n t .approx.
1 ,8 5 0 $ per annum
Range of accepted competitive bids;
High

- 9 9 . 5 3 8 Equiv a l e n t rate
1 .8 2 8 $
- 99.531 E q u ivalent rate
1 .8 5 5 ^

Low
(8 0

(Excepting two tenders
totaling $ 3 2 5 , 0 0 0 )
of discount approx.
per a n num
of discount approx.
per a n n u m

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

Federal Reserve
D i s t r i c t ______
Boston
New York
Philadelphia
Cleveland
Richmond.
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
A p p l i e d for
i
2 0 ,9 2 0 , 0 0 0
1,579,413,000
36.423.000
6 3 .1 2 0 . 0 0 0
29.729.000
3 5 .8 6 0 .0 0 0
2 3 6 .6 0 7 . 0 0 0
34.603.000
22.660.000
48.163.000
53.811.000
116.294.000

TOTAL

$2 , 277 , 603,000
0 O0

Total
Accepted
1 3 ,2 2 0 , 0 0 0
8 0 2 .7 0 8 . 0 0 0

18.103.000
38.458.000
19.974.000
24.280.000
1 2 6 .9 1 7 . 0 0 0
18.003.000
19.240.000
16.648.000
38.641.000

6 4 .8 4 1 .0 0 0
$1 ,2 0 1 , 0 3 3 , 0 0 0

T R E A S U R Y DEPARTMENT'
F is c al S e r v ic e

STATUTORY DEBT LIMITATION

Washington* S e p t . 4 ,

AS OF August 31, 1952

1952

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of ob lig ation s iiswd
under authority of that Act, and the face amount of o b lig ation s guaranteed as to prin cip al and interest by the I
United States (except such guaranteed o b lig a tio n s as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $ 275 , 000 , 000,000 (Act of June 26 , 1946; U .S .C ., t i t l e 3 1 , sec. 757b ) , outstanding at
any one time.
For purposes of th is section the current redemption value of any ob lig ation issued on a discount
basis which is redeemable p rio r to maturity at the option of the holder shall be considered as it s face amount.'
The following table shows the face amount o f o b lig atio n s outstanding and the face* amount which can still
be issued under th is lim ita tio n :
Total

$275, OOO, 000,000

face amount that may be outstanding at any one time

Outstanding
Obligations

issued under Second Liberty Bond Act,, as amended

Interest-beari ng:
Treasury b i l l s ..................................
C e r t ific a t e s of

indebtedness.......

Treasury n o te s .................................

$ 1 7 ,2 0 5 ,7 4 2 ,0 0 0
2 8 ,0 1 9 ,4 7 8 ,0 6 6

70,529,638,800

2 5 ,3 0 4 ,4 1 8 ,8 6 6 $

Bonds Treasury.........................................

7 9 ,8 1 4 ,3 6 5 ,6 6 0

Savings (current redemp. value)

5 7 .7 5 3 ,1 7 1 ,4 6 3

Deposi tary......................................

3 8 5 ,0 9 3 ,5 0 0

Armed Forces Leave ......................
Investment series .......................
Special Funds C e r t ific a t e s of indebtedness.......
Treasury notes.............
Total
Matured,

1 4 ,1 3 7 .0 4 4 ,0 0 0

2 3 * 3 7 ©#9©5*®®®

260 ,926 ,020,163

interest-bearing

314,197,801

in terest-ceased...............................................................

4 8 ,1 6 1 ,5 7 8

Excess p r o fits tax refund bonds......

1 ,6 4 4 ,8 4 4

notes of the United states:

1,263,000,000

Internat'l Monetary Fund s e r ie s ...

Guaranteed o b lig ation s

1 ,3 1 2 ,8 0 6 ,4 2 2

262,553,024,386

Total
(not held by Treasury):

Interest-bearing:
Debentures: F. H. A. .................................
Demand ob lig ation s: C .C .C .................... .......
Matured,

38,306,706,800

1 4 .9 3 5 .7 4 1 ,8 0 0

Bearing no interest:
War savings stamps .............................
Special

1 5 2 ,0 8 9 ,6 7 4 ,5 6 3

37,531,836
92,876

3 7 ,6 2 4 ,7 1 2
1 ,5 9 2 ,6 7 5

interest-ceased ..................................

Grand total ou tsta n d in g ..........|J|.....I .................
Balance face amount of ob lig ation s

39,217,387
. . . . .... .

12,467,7587727

issuable under above authority

Reconcilement with statement of the Public

D e b t

(Daily statement of the United States Treasury, S ® p t .

Total

gross public debt

l£,

1952
1953^

.................................. ................. .'.’..v...............................................

Guaranteed o b lig ation s not owned by the Treasury
Total

31,

(Date)

Outstanding -

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

gross public debt and guaranteed o b lig a tio n s

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

Deduct - other outstanding public debt o b ligation s not subject to debt lim ita t io n .

-P

TD •OAS •DC

/s'

i

2 6 2 ,5 9 2 ,2 4 1 ,7 7 3

26 3 , 18 5 , 643,372
...... 39 , 217.381

263,224,8667739
•6 3 2 .6 1 8 .9 8 1

262,592.*®^

STATUTORY DEBT LIMITATION
AS OF AUGUST 31, 1952

September ll/Ï95>2

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
If 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
luaranteed obligations as may be held by the Secretary of the Treasury), "shall not
Ixceed in the aggregate $275,000,000,000 (Act of June 26, 19U6$ U.S.C., title 31,
Eec, 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
fcrior to maturity at the option of the holder shall be considered as its face amounts
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
I Obligations issued under Second Liberty Bond Act, as amended
Interest bearing:
Treasury bills**•»•*•«•••*•••••$ 17,205,71+2,000
Certificates of indebtedness*»* 28,019,l'78,000
Treasury notes•••««■•••a****«*« 25,301;, 118,800 $70,529,638,800

Bonds Treasury••••••«»a************ 79,811;,365,600
Savings (current redemp*value) 5?,753,171,1*63
Depositary e#*«*******«»**®**»
3 85,093,500
Armed Forces Leave*.
Investment series•o**»*».««** li;,137,0l;U,000 152,089,671;,563
Special Funds 23,370,965,000
Certificates of indebtedness
ll;, 935,7l;l, 800 38,306,706,800
Treasury notes••••«#•.«••••*
Total interest“
"bearing****o***««o♦»«**»»*<>« 260,926,020,163
31h,197,801
0«? •
Matured, interest-ceased*•••••«•••
Bearing no interest:
ii8,l6l,5?8
War savings stamps*••• o « * e e * 3 » 6 C *
l,61;l;,81|i;
Excess profits tax refund bonds**
Special notes of the United States:
Internat11 Monetary Fund series
1,263,000,000
1,312,806,1422
I 1 Otal•(•*«•**••*«,. « • • « • • • • • • • * e * * * * * e * « e * * » * * 3 * * c * 262,553,02ij!,3 Ô6
guaranteed obligations (not held by Treasury):
I Interest-bearing:
,
Debentures: F . H . A . .
37,531,836
Demand obligations: C.G.C.........
92,876
37,621;,712
I Matured, interest-ceased*...............«•••«•»•••*
1,592,675
39,217,387
arand total outstanding**«******#***********»*«««**
262,592,2l;l,773
balance face amount of obligations issuable under above authority**,, 1 2 ,1407,7 5 8 ,2 2 ?
€

"Reconcilement with' Statement of the Public Debt - August 3Ï, 1952
(Daily Statement of the United States Treasury, September 2, 1952)
^standing Total gross public debt•»••«•****«***a**«**o**«o*************••*•«•263,185,61;3,372
Guaranteed obligations not owned by the Treasury*«*•»*•••••••»•••
39 j 217j387
Total gross public debt and guaranteed obligations ***** ••••*.*.•• 263,2 ¿I4,860,759
peduct - other outstanding public debt obligations not subject to
debt limitation
6 3 2 ,6 18 ,9 8 6
262,592,2^1,773
P-3156

y

j

/(/Op*'

>/ y

3//
v.

-SerIMMEDIATE RELEASE,

A

<i

S e p te m b e r Sj>rJ.9 ^ 2 -------

The Bureau of Customs announced tQday.preliminary figures shoeing the
quantities of wheat and wheat floui/SiStePed:,ear1 i9iu8drawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 19hl, as modified by the President's proclamation of April 13, 191*2,
for the 12 months commencing May 29, 19£2, as follows: 1

Bieat
Country
of
Origin

Established :
Imports
Quota
:May 29, 19£2, to
JSeptember 9* 19£2
(Bushels)
(Bushels)

795,000
Canada
China
Hungary
Hong Kong
Japan
10
0
United Kingdom
—
Australia
10 0
Germany
* 10 0
Syria
New Zealand
Chile
10 0
Netherlands
2 ,0 0 0
Argentina
10 0
Italy
Cuba
1 ,0 0 0
France
Greece
10 0
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
*
Canary Islands
1 ,0 0 0
Rumania
10 0
Guatemala
10 0
Brazil
Union of Soviet
Socialist R e p u b l i c s
100
10 0
Belgium
800,000

79k,576
—
mm

mm

-J-g

•K
mm
mm

mm.

mm
mm
mm
mm

mm
mm
mm

Bieat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
: May 29, |9#
•• to September )
(Pounds)
(Pounds)
3 ,8 15 ,0 0 0
2 h ,000
1 3 ,0 0 0
1 3 ,0 0 0
8 ,0 0 0

993,232
-

-

75,000

u

m

1 ,0 0 0
£ ,0 0 0
£ ,0 0 0
1 ,00 Q
1 ,0 0 0
1 ,0 0 0

m
m
m
m
m

H *,ooo

m

2 ,0 0 0
1 2 ,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
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0

—

m
«.

m
-

m

•

-

-

mm

-

mm

-

-

--

-

-

M»
m

—

79k,5^6

I*,000 ,o00

993,276

■

ID '

TREASURY DEPARTMENT
Washington
m e d ia t e r e le a se

S-31$?

Wed n esd ay , S e p te m b e r 1 0 , 1 9 5 2

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorised to be entered, or withdrawn from
warehouse, for consumption under the import quotas established in the President* s
proclamation of May 28, 19i|i, as modified by the President’
s proclamation of
April 13, 19i|2, for the 22 months commencing May 29, 1952, as followsi

C oun try
of
O r ig in

Canada
China
Hungary
Hong Kong
Japan
United Kingdom
A u s tr a lia
Germany
Sy ria
New Z ealan d
Chile
N etherlands
A rgentina
I ta ly
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and D a n z ig
Sweden
Y u go slavia
Norway
Canary I s l a n d s

Rumania

Wheat flour, semolina,
crushed or cracked
Wheat
wheat, and similar
.
wheat products
Established :
Imports
Established
Imports
Quota
:May 29, 1952, to
Quota
May ?9, 1952,
sSeptember 9, 3952
to September 9, 1952
(Bushels)
(Bushels)
(Pounds)
(Founds)
795,000
79 )4 ,5 7 6
3,815,000
993,232
*
2h,000
13,000
•
—
13,000
„■
8,000
100
75,oco
itit
1,000
100
5 ,0 0 0
10 0
_
5 ,0 0 0
1 ,0 0 0
“
—
1 ,0 0 0
10 0
«ft
1 ,0 0 0
2 ,0 0 0
—
lit,000
10 0
_
2 ,0 0 0
m
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
“
-1 ,0 0 0
10 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
1 ,0 0 0 .
«
ft
1 ,0 0 0
—
1 ,0 0 0
mm
100

. Guatemala
B r a z il
Union o f S o v i e t
S o c ia lis t R e p u b lic s
Belgium

100
100

100
800,000

79^,576

it,000,000

993,276

IMMEDIATE RELEASE
S e p te m b e r ^ , 1952

IS
T he B u r e a u o f C u sto m s an n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s sh o w in g th e
im p o r t s f o r c o n su m p tio n o f c o m m o d itie s on w h ic h q u o t a s w e r e p r e s c r i b e d b y
t h e P h i l i p p i n e T r a d e A c t o f 1 9 U 6 , fr o m J a n u a r y 1 , 1 9 5 2 , t o A u g u st 3 0 , 1 9 5 2 ,
in c lu s iv e , a s fo llo w st

£i
s
:
j

p r o d u c ts o f th e
P h ilip p in e s

E s t a b l i s h e d Q u o ta
Q u a n tity

B u tto n s • • • • • » • •

8 5 0 ,0 0 0

*•
:
:
••

*•
U n it o f
Q u a n tity

G ro ss

x

:
e*

I m p o r t s a s of
A u g u s t 3 0 , W$

1*20,258

C ig a r s • • • • • • « •

2 0 0 , 0 0 0 ,0 0 0

Number

C oconut O il ♦

1 *1 *8 ,0 0 0 ,0 0 0

Pound

6 5 ,1 7 3 ,0 1 3

6 ,0 0 0 *0 0 0

P oun d

2,1*19,513

1 ,0 1 * 0 ,0 0 0

Poun d

-

C ord age • • • • • • • •
R i c e * ................................ .
(R e fin e d

•

♦

.

• .

.

* ♦

Su gars

m

l,9 0 li,0 0 0 ,0 0 0
( U n r e f in e d

T o b a c c o ....................................

1,135,1*52

P oun d
1,1*09,220^568

6 , 5 0 0 ,0 0 0

P oun d

1,1*35,052

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, September 10, 1952

S-3158

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 1 9ho, from January 1, 195'2S,to August 30, 1952 9
inclusive, as follows:

Products of the
Philippines

: Established Quota : Unit of
:
Quantity
: Quantity

Buttons...... .*.......

8 5 0 ,0 0 0

Gross

: Imports as of
: August 30, 19 5 2
1*20,258

Cigars........... .

200,000,000

•Number

1,135,1*52

Coconut Oil.... ..... .

l4i4.8,000,000

Pound

65,173,013

Cordage

6,000,000

Pound

2,1*19,513

Pice......... .

1 ,0140,000

Pound

-

1,90U,000,000

Pound

Sugars

(Refined........
(Unrefined.......

Tobacco ..............

1 ,1*09 ,2 2 0 ,5 6 8
6 ,50 0 ,0 0 0

Pound

1,1*35,052

2

-

-

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than l-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 / 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

: Total imports
: Sept. 20, 1 9 £ l to
: Sept. 9, 19^2

: Established
: TOTAL QUOTA
•

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

4,323,457
239,690
227,420
69,627
68,240
44,3&8
38,559
341,535
17,322
8,135
6,544
76,329
21.263
5.482.509

1*1*1,647
233,803
69,627

mm
. .
«

Prepared, b y the

Bureau o f

Customs

1,441,152
75,807
22,747
1 4 ,7 9 6
1 2 ,8 5 3
-

441,647
mm
mm
mm
mm
mm
mm

mm

—

mm

mm

-

mm

—

mm

mm

24,890
7,049
_____ 777,016________

1/ Included in total imports, column 2.

Imports
l/
: Established :
( 33-1/32 of : Sept. 20, 19^1
: Total Quota : to Sept. 9, 19!>2

2 5 ,4 4 3

7.088

24,890
7,049

1 ,59 9 .886

______473,586

IMMEDIATE RELEASE
September ft, 1
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 inche s other than rough or harsh Under 3/4”
Imports Sept. 2 0 , 1 9 5 1 , to September 9, 1952, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
Peru *.... ..........
British India ......
C h i n a ..... .........
M e x i c o ..... .......
Brazil .............
Union of Soviet
Socialist Republics
Argentina ..........
Haiti ...............
Ecuador .............

Imports

7 8 3 ,8 16

247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

t o

,

185
mm

8 ,8 8 3 ,2 5 9

lii2,837
mm

■

-

mm

Country of Origin

Imports

Established Quota

Honduras ...... ......
Paraguay ........ .....
Colombia ............... .
Iraq
British East Africa ...
Netherlands E. Indies
Barbados .. i...........
l/0ther British W. Indies
Nigeria ...;..........
2/0ther British 1. Africa
3|/0ther French Africa ...
Algeria and Tunisia ...

752
871
124
195

.

2 ,2 4 0

Established Quota (Global)
70 , 000,000

Imports
6 ,lj.0 1 ,llU

Cotton 1-1/8* or more, but less than 1-11/16”
Imports Feb, 1, 19f>2, to September 9? 1952
Established Quota (Global)
45,656,420

»
mm
mm

71,388
21,321
5,377
16,004
689
-

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
* '■
;
Cotton, harsh or rough« of less than 3/4”
Imports Sept. 20,l9gl, to August 30, 1952

—

Imports
21,909,123

mm
mm-

mt
«M
mm

n

—

««£

'

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE

Wednesdays September 10, 1952

S-3159

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/i*n
liï^orts
£*® ;9 1951* to September 9* 1952, inclusive
tlv.

Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan
Peru
British India
China
Mexico
Brazil
Union of Soviet
Socialist Republics
Argentina
Haiti
Ecuador #*«»**«•««»$»
0 9 A « o « a * * a * o * 9 0

783,816
21*7,952
2,003,1*83
1,370,791
8,883,259
618,723

Imports

*»
1*0,185
CC»

«B»
8,883,259
11*2,837

1*75,121*
5,203
237
9,333

~
tm

10

»

Country of Origin

Established

Honduras *»•«•&«•»»«»•«•
Paraguay **•
Columbia ©o* *oo«&•<
>©<»o
Iraq
British East Africa
Netherlands E© Indies
Barbados
l/Qther British W* Indies
Nigeria «ee»«***«««»*»*
2/other British W* Africa
J/Other French Africa „.,
Algeria and Tunisia

Import;

752
871
121*
195
2,21*0
71,388
»
21,321
5*377
1 6 ,001*
689
ÇJ»

1/ Other than Barbados,» Bermuda, Jamaica, Trinidad, and Tobago,

2/ Other than Gold Coast and Nigeria*

Established Quota (Global)
70,000,000

Imports
6,1*01,111*

Cotton 1-1/8" or more, but less than l~il/l6n
Imports Feb^ 1, 1952, to September 9, 19%2
Established Quota (Global)
1*536>6,1*20

Imports
21,909,123
i"A
bu

3/ Other tlian Algeria, Tunisia, and Madagascar*
Cotton, harsh or rough, of less than 3/V*
Imports-Septa 20, Iffflo to August 30r. 1952

2

-

-

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1 -3 / 1 6 inches or more
in staple length in the case of the following countries; United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Established
: TOTAL QUOTA

Or
•

Country of Origin

•

United Kingdom
France
British India
Netherlands
Switzerland
Belgium
Japan
China
Egypt
Cuba
Germany
Italy

•

•

« » *

*

•

« «

< • ■ • » • « * • « • » * • • • • •

•

« « « •

•

« •

•

« •

« •

•

•

•

•

« » «

•

e

31*1,535
$

« « • « » « • » • • # • •

« « « » •

•

•

»

«

«

«

«

«

* « > «
«

«

c

e

14*1,647
233,803
«

69,627
«

3 8 ,5 5 9

» • • • • » • • * » • • • • • •

*

1»,323,1*57
239,690
227,420
69,627
68,240
44,388

: Total imports
: Sept* 2Ò, 1951 to
: Sept* 9 5 19£2

17 * 3 2 2
8 ,1 3 5
6 ,£14;

1 ,1*1*1 , 1 5 2
«

75,807

441,647
»
-

«9

22,71*7
11*,796
12,853

*•
<*»

»

-

«

*»

M*

-

21 *,890

5 ,1*8 2 ,50 9

777,016

Prepared by the Bureau of Customs

,

•»

76,329
21,263

1/ Included in total imports, column 2*

Established :
Imports
1/
33-1/3? Of s Sept« 20, 19£l
Total Quota : to Sept, 9 1952

7,01*9

«

-

«

•

7 ,0 8 8

2lt,890
7,01*9

1,599,886

1*73,586

25,1*1*3

IMMEDIATE RELEASE
W

A

Í

J

S e p te m b e r 9 , 1 9 5 2

¡V

The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s sh o w in g t h e im ports
f o r c o n su m p tio n o f c o m m o d itie s w i t h i n t a r i f f - r a t e q u o t a l i m i t a t i o n s fr o m t h e be­
g i n n i n g o f t h e q u o t a p e r i o d s t o A u g u st 3 0 , 1 9 5 2 , i n c l u s i v e , a s f o l l o w s ?

Commodity__________: Period and Quantity

n Quantity

I m p o r ts as of
A u g u s t 30« M

W hole m i l k , f r e s h o r s o u r •

• C a le n d a r y e a r

3 , 000,000

G a llo n

19,307

C ream « • • • • • • • * * •

* C a le n d a r y e a r

1 , 500,000

G a llo n

673

5 , 000,000

pound

3 1 ,1 (7 2 ,1 0 8

pDund

Q u o ta fille d

1 5 0 ,0 0 0 ,0 0 0 1
21(9 , 600,000

P oun d
P oun d

55,353,213

5 , 000,000

P oun d

1*,669,606

B u tte r

•

F is h , fr e s h o r fro z e n ,
f i lle t e d , e t c *, cod,
h addock, h a k e , p o llo c k ,
c u s k , an d r o s e f i s h • • •

(Ju ly 16 , 1952( o c t . 3 1 , 1952

• • C a le n d a r y e a r

W h ite o r I r i s h p o t a t o e s *
c e r t i f ie d see d • • • • • •
• 1 2 m on th s fr o m
o th e r • • • « • • • • • • < ► .S e p t . 1 5 , 1951
W a ln u ts • • • • •

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

Petroleum and petroleum
products • • • * • • • • • •

• C a le n d a r y e a r

*

78,065,1(70

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

G a llo n
G a llo n

Q u o ta fille d
Q u o ta fille d

1 ,0 9 0 ,1 1 * 8 ,8 0 0

G a llo n

Q u o ta fille d

2,885,904

1 2 m on th s fr o m

* l*,5 o o ,o o o
p r e p a r e d .....................

w

Calendar year
V e n e z u e la
N e th e rla n d s
O th e r
C o u n tr ie s

A lm o n d s?
s h e l l e d ...............................................

301,$0lj

P oun d

..................... O c t o b e r 1 , 1 9 5 1

1(75,7«

o f t h e t o t a l , n o t m ore t h a n 5 0 0 ,0 0 0 p o u n d s s h a l l b e b l a n c h e d , r o a s t e d , o r
o t h e r w i s e p r e p a r e d o r p r e s e r v e d a lm o n d s ( n o t i n c l u d i n g alm o n d p a s t e } *

( 1 ) I m p o r t s f o r c o n s u m p tio n a t t h e q u o t a r a t e a r e l i m i t e d t o 2 3 , 6 0 i * , 0 8 l poun ds
d u r i n g t h e f i r s t n in e m o n th s o f t h e c a l e n d a r y e a r *

111

TREASURY DEPARTMENT
Washington
immediate r e l e a s e

Wednesday, September 10, 1952

S-3160

The Bureau of Customs announced today preliminary figures showing the imports
[for consumption of commodities within tariff-rate quota limitations from the be­
ginning of the quota periods to August 30* 1952, inclusive, as follows:

Commodity

:

Period and Quantity

: Unit
: of
:Qu:-xntity

•
*

: Imports as of
:August 30, 1952

Whole milk, fresh or sour ... Calendar year

3,000,000 Gallon

19*307

Cream... .......... ........ Calendar year

1,500,000 Gallon

673

5,000,000 Pound

3 0 1 ,50 !»

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

31,U72,108 Pound

(1 )
Quota filled

[White or Irish potatoes:
12 months from
certified seed.........
I other............... ....... Sept. 15, 1951

150,000,000 Pound
2^9,600,000 Pound

78,065,1*70
55,353,213

5> 000,000 Pound

li,669,606

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

(Jvly 16, 1952(Oct. 31, 1952

Walnuts.......... ........... Calendar year
[Petroleum and petroleum
products...................

[Almonds:
I shelled..................

Calendar year
Venezuela
2,956,814.1,9U9 Gallon
•Netherlands
930,857,651 Gallon
Other
Countries
l,090,ll|.8,800 Gallon
12 months from

prepared.............. ..... October 1, 1951
.___

5oo,ooo Pound

Quota filled
Quota filled
Quota filled
0~m£ OO
QQr^ y n(-0iI
(

^7 5 ,7 0 9

w Of the total, not more than 500,000 pounds shall be blancliec| roasted, or
otherwise prepared or preserved almonds (not including almond paste).
;U) Imports for consumption at the quota rate are limited to 23>60li.,08l pounds
during the first nine months of the calendar year.

f
- 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 bZ and 117 (a) (l) of the Internal Revenue Code, as
amended by Section ll£ of the Revenue Act of 191*1* the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets.

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, I;l8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.

Copies of the circular may be obtained from any Federal

Reserve Bank or Branch.

-

2

-

mm
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 $20 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 competitive bids.

Settlement for accepted tenders

in accordance with the bids must be made or completed at the Federal Re­
serve Bank on September 18. 1952 , in cash or other immediately available
funds or in a like face amount of Treasury bills maturing September 18. 195L1
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

tSWdSSXM.
m m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 11. 1952
*

mThe Secretary of the Treasury, by this public notice, invites tenders
fcr $1,200,000,000

, or thereabouts, of

91

-day Treasury bills, for

cash and in exchange for Treasury bills maturing September 18, 1952 , in
iSqc
the amount of $l,2Q2,i|l6,000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
December 18, 1952
terest.

September
jgj-18, 1952

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, 15,000, $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
time, Monday, September 15« I#
fcST
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

r e le a se m o r n in g n e w s p a p e r s ,

Thursday, September II, 1952.

WASHINGTON, D .C .

S-3 1 6 I

The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91-day T r e a s u r y bills,
for cash and in exchange for Treas u r y bills m a t u r i n g September 18,
1 9 5 2 , in the amount of $1,202,416,000, to be issued on a discount
basis under competitive and n on-competitive b i d d i n g as h e r e i n a f t e r
provided. The bills of this series will be dated September 1 8 ,
1952, and will mature D e c e m b e r 18, 1952, w h e n 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 ,
$500 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 (maturity value;.
Tenders will be received at F e d e r a l Reserve Eanks and Branches
up to the closing hour, two o ’
clock p.rti,, E a s t e r n D aylight Saving,
time, Monday, September 15, 1952. Tenders will not be received at
the Treasury Department, Washington. E a c h tender must be for an
even multiple of $ 1 , 0 0 0 , and in the case of competitive tenders the
price offered m u s t be expressed on the basis of 1 0 0 , w ith not m o r e
than three decimals, e. g., 99*925. Fractions m a y not be used. It
is urged that tenders be made on the printed forms and forwarded in
the special envelopes w h i c h will be supplied by Federal Reserve
Banks or Branches on a p p l i c a t i o n therefor.
Others than b a n king institutions w i l 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 a ccompanied 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
hank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following w h i c h public
announcement will be made by the Secretary of the Treas u r y of the
amount and price range of accepted b i d s . Those submitting tenders
will be advised of the acceptance or rejec t i o n thereof.
The
Secretary of the Treasury expressly reserves the right to accept
0r reject any or all tenders, in whole or in part, and his acti o n in
any such respect shall be final. Subject to these reservations,
non-competitive tenders for $ 2 0 0 , 0 0 0 or less without stated price
from any one bidder will bo a ccepted in full at the average price

2

(in three decimals) of accepted competitive bids.
Settlement for
a ccepted tenders in accordance with the bids must be made or
completed at the F e d e r a l Reserve B ank on September 18, 1952, in
cash or other immediately available funds or in a like face amount
of T r e a s u r y bills m a t u r i n g September 18, 1952.
Cash and exchange
tenders will receive equal t r e a t m e n t . Cash adjustments will bo
made for differences b e t w e e n the par value of m a t u r i n g bills
accep t e d in exchange and the issue price of the new bills.
The income derived f rom T r e a s u r y bills, w h e t h e r interest or
gain from the sale or other d i s p o s i t i o n of the bills, shall not
have any exemption, as such, and loss from the sale or other
d i s p o s i t i o n of T reasury 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 h e r e a f t e r imposed on
the principal or interest thereof by a n y 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 w h i c h Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections k2 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19^1,
the amount of discount at w h i c h bills issued h e r e u n d e r are sold
shall not be considered to accrue until such bills shall be sold,
r edeemed or otherwise disposed of, and such bills are excluded iron
c o n s i deration as capital assets. Accordingly, the owner of Treasury!
bills (other than life insurance companies) issued h e r e u n d e r need
include in his income tax r e t u r n only the difference between the
price paid for such bills, whet h e r on original issue or on
subsequent purchase, and the amount a ctually received either upon
sale or r e d e m p t i o n at m a t u r i t y during the taxable y ear for which
the r e t u r n is made, as ordinary gain or loss.
T r e a s u r y D e p artment Circular Wo. 4l8, as amended, and this
notice, prescribe the terms of the Treas u r y bills and govern the
conditions of their issue.
Copies of the circular m a y be obtained
from a n y F e d e r a l Reserve B a n k or Branch.

oOo

^ I (p

September 8 , 1952

wmcmmm to m. wmmf%
the following transactions were mad# in diroot and
guaranteed securities of the Government for treasury iwrestment and other accounts during the smith of August, 1 9 5 2 t
Purchases * # # . * • # « * * * * # • # • * * $lt,100,Q00

Sales • # * * • * ♦ • • « # • * • # * * * #
Set jsurcliases * * • « ♦ « ♦ » * * * » ♦ * * jËajÎm22jJ^^

Charles T. Braiman
Chief, Division of Xarestaents

D . o f X« Mo« 3 6

W is© c a r v e r 9 / 8 / 5 2

”~

117
RELE A S E MORN I N G NEWSPAPERS,
M o n d ay, September 15, 1952 .

S -3162

D u r i n g the m o n t h of August, 1952
mark e t transactions in direct and
guaranteed securities of the
Government for Treas u r y investment
a,nd other accounts resulted in net
purchases of $1,877,150, Secretary
Snyder announced today.

oOo

2

\

The proposed new system would set up by formula, allowances to

cov$r estimated fiber losses in processing the various types of wool
and hair.

The base allowance would be five one-thousandths (0.005) of

the ascertained weight of the clean wool or hair fibers, and an addi­
tional allowdr^ce of six-tenths (0.6) of a pound for each pound of ascer­
tained vegetablematter, but with the combined allowance not to exceed
\
1 5 percent of the ascertained weight of the clean wool or hair fibers.
\

\
\
This formula hasNbeen
tested against actual commercial yield of\
\
a number of lots of various types of wool. Experiments indicate the

V

average fiber loss in processing clear wool to be less than 1 percent
of the clean content, but witV extremely burry wool, such as was
involved in the Whitaker test case, exceeding 5 percent
It is estimated that the proposed allowances will result in re­
ductions of from 1 to 2 percent in duties assessed on importations of
raw wool and hair.J Such duties currents are at a rate of some
$50,000,000 annually, and have exceeded $10&^000,000 in a year
The proposed regulations changes were publ »hed in the Fe<
J

Register of Tuesday, September 9, 1952 at page 8l20Sd?ursuant
to the Administrative Procedure Act.

Representations \ o m interested

parties will be received in writing by the Commissioner of \!ustoms during
a period of 30 days following such publication, for consideration before
final action is takenX No hearings will be held./ !
L——
-

pursuant to the Administrative Procedure Act, Representations
from interested parties will be received in writing by the
Commissioner of Customs during a period of 30 days following
such publication, for consideration before final action is
taken.

-

2

-

The proposed new system would set up by formula, allowances
to cover estimated fiber losses in processing the various types
of wool and hair. The base allowance would be five onethousandths (0.005) of the ascertained weight of the clean wool
or hair fibers, and an additional allowance of six-tenths (0.6)
of a pound for each pound of ascertained vegetable matter, but
with the combined allowance not to exceed 15 percent of the
ascertained weight of the clean wool or hair fibers.
This formula has been tested against the actual commercial
yield of a number of lots of various types of wool and takes
into account the varying percentages of fiber loss in the
cleaning of different types of wool^^xperiments indicated
that the average fiber loss in processing wool with relatively
little vegetable matter is less than one percent of the clean
content. However, burry wools such as that involved in the
Whitaker test case contain a large amount of vegetable matter,
and therefore require additional cleansing operations. This
results in a greater loss of wool fiber, sometimes exceeding
five percent of the clean content.
It is estimated that the proposed allowances will result
in reductions of from 1 to 2 percent in duties assessed on
importations of raw wool and hair.
The proposed regulations changes.were published in the
Federal Register of Tuesday, September 9, 1952 at page 8124

Frank Dow, Commissioner of Customs, announced today that the
Bureau of Customs has under consideration changes in practices fol­
lowed in determining the "clean content" of raw wool and hair importa­
tions, the basis upon which duties on these commodities are assessed.
The purpose of the proposed changes is to define "clean content*."
in conformity with the commercial yield of wool fibers from.1phe pro­
cessing of the raw wool, that is to make allowance f^,such fibers
ordinarily lost in commercial cleaning processes.

Present customs

laboratory procedures, which have been in effect for a number of years,
take cognizance of the amount of grease and fti'hgT. foreign matter in an
importation of wool, as revealed by sampling and testing, but do not
make any allowance for fibers lost by the processor during commercial
cleaning o

p

e

r

a

t

i

o

n

s

^

A recent ruling of the United States Court of Customs and Patent
Appeals, United States v. Fred Whitaker Co. Inc., (decided June 2k, 1952)
C.A.D. k92, which affirmed an earlier United States Customs Court
decision, held in effect that the term "clean content" as employed in
the Tariff Act of 1930 was intended by Congress to mean "commercial
yield" of imported wool, that is, as the court stated...."the wool from
which all the weight of grease and foreign material has been removed,
including the wool fibers which are unavoidably and irrevocably lost"
as a result of commercially applied cleaning processes.
Mr. Dow said the proposed changes in customs procedures are designed
to bring laboratory practices^ and the ultimate assessment of duties^ in
line with the court's decision.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .
ioO
-L c

IMMEDIATE RELEASE
Friday, September 12, 1952

S-3163

Frank Dew, Commissioner of Customs, announced today that the Bureau
of Customs has under consideration changes in practices followed in
determining the "clean content" of raw wool and hair importations, the
basis upon which duties on these commodities are assessed.
The purpose of the proposed changes is to define "clean content" in
conformity with the commercial yield of wool fibers from the processing
of the raw wool, that is to make allowance for the quantities of such
fibers ordinarily lost in commercial cleaning processes. Present customs
laboratory procedures, which have been in effect for a number of years,
take cognizance of the amount of grease and foreign matter in an impor­
tation of wool, as revealed by sampling and testing, but do not make any
allowance for fibers lost by the processor during commercial cleaning
operations performed after importation.
A recent ruling of the United States Court of Customs and Patent
Appeals, United States v. Fred Whitaker Co. Inc*, (decided June 2k, 1952)
C.A.D. b 9 2 , which affirmed an earlier United States Customs Court decision,
held in effect that the term "clean content" as employed in the Tariff
Act of 1930 was intended by Congress to mean "commercial yield." of
imported wool, that is, as the court stated... ."the wool from which all
the weight of grease and foreign material has been removed, including
the wool fibers which are unavoidably and irrevocably lost" as a result
of commercially applied cleaning processes.
Mr. Dow said the proposed changes in customs procedures are designed
to bring laboratory practices and the ultimate assessment of duties in
line with the court’
s decision.
The proposed new system would set up by formula, allowances to cover
estimated fiber losses in processing the various types of wool and hair.
The base allowance would be five one-thousandths (0.005) of the ascertained
weight of the clean wool or hair fibers, and an additional allowance of
six-tenths (0.6) of a pound for each pound of ascertained vegetable matter,
but with the combined allowance not to exceed 1 5 percent of the ascertained
weight of the clean wool or hair fibers.
This formula has been tested against the actual commercial yield of

f number of lots of various types of wool and takes into account the vary­

ing percentages of fiber loss in the cleaning of different types of wool.

1 Q Qvy

«i.

L ..

- 2 Experiments indicated that the average fiber loss in processing wool with

relatively little vegetable matter is less than one percent of the clean
content. However, burry wools such as that involved in the Whitaker test
case contain a large amount of vegetable matter, and therefore require
additional cleansing operations. This results in a greater loss of wool
fiber, sometimes exceeding five percent of the clean content.
It is estimated that the proposed allowances will result in reductions
of from 1 to 2 percent in duties assessed on importations of raw wool and
hair*
The proposed regulations changes were published in the Federal Register
of Tuesday, September ^9 19$2 at page 8121+ pursuant to the Administrative
Procedure Act. Representations from interested parties will be received
in writing by the Commissioner of Customs during a period of 30 days follow­
ing such publication, for consideration before final action is taken.

L

P RESS RELEASE - Page 2:

9 /1 2 /5 2

autho r i z e d representatives to the same extent as it would
have b e e n made available to Federal authorities in the case
of a Federal prosecution*

The remainder of the information

conta i n e d in these e x a m i n a t i o n reports and not pertinent to
the case, following m y usual policy, will not be made
available to Mr* G u l otta.^^Because of the refusal to make
available the exam i n a t i o n reports in their entirety, it has
b e e n charged that passive resistance is b e i n g offered to
the efforts of the p r o secuting authorities.

This charge

is, of course, without validity as the b a n k officials have
no authority to disclose the contents of these reports.

It

is h o p e d this statement of facts will serve to clarify what
appears to be a grave m i s u n d e r s t a n d i n g . ^

.5- 3/i*{
v B e c a u se o f v a r io u s s t a t e m e n t s w hich h ave ap p eared
i n t h e p u b l i c ^ h e s s and a t t r i b u t e d to N a ssa u C ou n ty D i s t r i c t
A tto rn e y F ran k A. G u lo t t a c o n c e rn in g th e r e c e n t f r a u d a lle g e d
to h ave b een p e r p e t r a t e d on th e C e n t r a l N a t io n a l Bank o f
/? o

pH* < & y

M in e o la , New Y o rk , th e C o m p t r o lle r o f th e C u rren cy o o » 0'ldc»-re
A
±4>- degiia& ble to i s s u e i t h e fo llo w in g s t a t e m e n t :
1

1I n a l l i n s t a n c e s in v o l v in g d e f a l c a t i o n s , em b ez

m ents o r f r a u d i n n a t i o n a l b a n k s , i t

i s th e e s t a b l i s h e d

p r a c t i c e o f my o f f i c e to make a v a i l a b l e to th e U n ite d S t a t e s
D i s t r i c t A t to r n e y , F e d e r a l B u reau o f I n v e s t i g a t i o n and S ta te
P r o s e c u t in g A u t h o r i t i e s a l l in f o r m a t io n p e r t i n e n t to such
a c t s w hich a p p e a r i n r e p o r t s o f e x a m in a tio n p r e p a r e d by
n a t i o n a l bank e x a m in e r s.

A l l o t h e r p o r t i o n s o f th e examination

r e p o r t s n o t p e r t in e n t to th e c a s e a t i s s u e a r e h e ld to be
c o n f i d e n t i a l and a r e n e v e r made p u b lic t o th e p r o s e c u t in g
a u t h o r i t i e s b e c a u se o f th e i n j u r y t h a t m igh t be s u s t a i n e d
by in n o c e n t i n d i v i d u a l s whose f i n a n c i a l s t a t u s , l o a n s , o r
o t h e r b a n k in g t r a n s a c t i o n s may h ave b een commented upon
th e r e in .

The r e p o r t s o f e x a m in a tio n p r e p a r e d by n a t i o n a l

bank e x a m in e rs a r e th e p r o p e r t y o f my o f f i c e and c o p i e s are
f u r n is h e d to th e d i r e c t o r s o f th e b an k s co n cern ed f o r t h e ir
c o n f i d e n t i a l u se and a r e s u b j e c t to r e c a l l a t any t i m e A s
r e g a r d s th e C e n t r a l N a t io n a l Bank o f M in e o la , New Y o rk , a l l
in f o r m a t io n a p p e a r in g i n e x a m in a tio n r e p o r t s t h a t c o u ld be
o f any a s s i s t a n c e

to N a ssa u C ounty D i s t r i c t A tto rn e y

F ran k A. G u lo t t a h a s b een made a v a i l a b l e to him o r h i s

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE
Friday» September 12, 195>2

WASHINGTON,

S-316L

Because of various statements which have appeared in the public press
and attributed to Nassau County District Attorney Frank A* Gulotta con­
cerning the recent fraud alleged to have been perpetrated on the Central
National Bank of Mineola, New York* Preston Delano the Comptroller of the
Currency today issued the following statement:
"In all instances involving defalcations» embezzlements or fraud in
national banks» it is the established practice of my office to make available
to the United States District Attorney, Federal Bureau of Investigation and
State Prosecuting Authorities all informa.tion pertinent to such acts which
appear in reports of examination prepared by national bank examiners. All
other portions of the examination reports not pertinent to the case at issue
are held to be confidential and are never made public to the prosecuting
authorities because of the injury that might be sustained by innocent indi­
viduals whose financial Status, loans, or other banking transactions may
have been commented upon therein. The reports of examination prepared by
national bank examiners are the property of my office and copies are furnished
to the directors of the banks concerned for their confidential use and are
subject to recall at any time.
"As regards the Central National Bank of Mineola, New York, all infor­
mation appearing in examination reports that could be of any assistance to
Nassau County District Attorney Frank A. Gulotta has been made available to
him or his authorized representatives to the same extent as it would have
been made available to Federal authorities in the case of a Federal prose­
cution* The remainder of the information contained in these examination
reports and not pertinent to the case, following my usual policy, will not
be made available to Fir. Gulotta.
"Because of the refusal to make available the examination reports in
their entirety, it has been charged that passive resistance is being offered
to the efforts of the prosecuting authorities* This charge is, of course,
without validity as the bank officials have no authority to disclose the
contents of these reports. It is hoped this statement of facts will serve to
clarify what appears to be a grave misunderstanding."

IMMEDIATE RELEASE
Friday. September U . 1952

3 / ^ sT

A c t in g S e c r e t a r y o f t h e t r e a s u r y F o l e y a n n o u n c e d t o d a y
t h a t t h e s u b s c r i p t i o n b o o k s w i l l o p en on H o n d ay , S e p te m b e r 1 5 »
fo r a lir e m th i l l / #

p e r c e n t t r e a s u r y n o te t o b e is s u e d In

exchan ge f o r th e 1 - 7 /8 p e rc e n t T re a su ry c e r t i f i c a t e s o f in ­
d e b t e d n e s s w h ic h w i l l n a t u r e O c t o b e r 1 » 1 9 5 2 » i n t h e am oun t
o f $ K ) , 8 6 1 » 02 ?,O Q O .
t h e new n o t e s w i l l b e d a t e d O c t o b e r 1 » 1 9 5 2 » a n d w i l l
n a t u r e D ecem ber 1 » 1 9 5 3

TREASURY D EPARTMENT
Information Service

WASHINGTON,

IMMEDIATE RELEASE
Friday, September 12 , 1952

S-3165

Acting Secretary of the Treasury Foley announced today that the
subscription books will open on Monday, September 15, for a lU-month
2-1/8 percent Treasury note to be issued in exchange for the 1-7/8
percent Treasury certificates of indebtedness which will mature
October 1, 19?2, in the amount of $10*861,027,000*
The new notes will be dated October 1, 195>2, and will mature
December 1, 1953«

oOo

1 £?Q
L.. KJ

-3 -W

|

:

payment for notes allo tted , to make delivery of notes on fall-p aid subscription!
allo tted , and they may issue interim receipt® pending delivery o f the definitive
note®.
?.

The Secretary of the Treasury may at any time, or f*om time to time,

prescribe supplemental or amendatory rules and regulations governing the offer­
ing, which w ill be communicated promptly to the Federal Reserve Banks.

£• H. FOLEY,
Acting Secretary of the Treasury.

«► 3? «*
\
r> f
} w' JL

5.

The notes wiU be subject to the general regulations of the treasury

Department, now or hereafter prescribed, governing United States notes.
XXX. SOTKCftimON AND AlLOtKHif
1.

Subscriptions w ill be received at the Federal Heserve Banks and Branches

and a t the treasury Department, Washington. Banking in stitu tion s generally mj
submit subscriptions for account o f customers, but only the Federal Reserve Banks
and the Treasury Department are authorised to act as o ffic ia l agencies.
(¿ )

2.

The Secretary of the treasury reserves the right to reject any subscrip­

tio n , in whole or in p art, to a llo t le ss than the amount of notes applied for,
and to close the books as to any or a l l subscriptions a t any tine without not!««)
and any action he stay take in these respects sh all be fin a l.
reservations, a ll subscriptions w ill be allotted in f u ll.

Subject to these

Allotment notices

w ill be sent out promptly upon allotment.
1?.
1.

PAIH2S8T

Payment at par for notas allo tted hereunder must be made on or before

October 1, 1952, or on la te r allotment, and stay be made only in Treasury Certifi­
cates o f Indebtedness of Series 1 ~19$t, maturing October 1 , 1952, which will be
accepted at par, and should accompany the subscription.

The fu ll amount of

in terest due on the c e rtific a te s surrendered w ill be paid to tha subscriber
following acceptance o f the c e rtific a te s.

?. ommkt fmvuxms
1.

As fis c a l agents of the United sta te s, Federal Beaerre Banks are author

lead and requested to receive subscriptions, to make allotments on the basis wd
up to the amounts indicated by the Secretary of the Treasury to the Federal Beserve Banks o f the respective D istric ts, to issue allotment notices, to receive

JX X

IHSESD STATES OF AMERICA
2-1/8 PE8CS8T TREASUKI SSflf* OF SERIES A-1953

Dated and bearing intereet fro« October 1, 1958
l 952

TREASURE DEPARTMENT, \

Beparteent Cireul«r So. 913
___
F iscal Service
Bureau o f the Public Debt

O ffice of the Secretary,
Washington, September 15,1952, I

I.

1,

The

Bo, Deeeaber I , 1953

Secretary ®f the

O FT ESIS3 OF » I K S

Treasury, pursuant to the authority ©f the Second

Liberty Bond Act, m amended, invitee «subscription*, a t par, fro» the people of
the bolted Stetee for notes of the United S tates, designated 2-1/8 percent
Treasury Hbtes o f Series A-1953, in exchange for Treasury C ertificates of In­
debtedness of Series E-1952, maturing October 1, 1952*
II,
la

BKSCRIPTZ0H 0? HOTSS

The notes w ill be dated October 1, 1952, and w ill bear interest trm

that date at the rate o f 2-1/8 percent per annus, payable on a semiannual basil
on June 1 and December 1, 1953* They w ill mature December 1, 1953, and will
not be subject t© c a ll for redesptiem prior to maturity*
2,

The income derived from the notes sh all be subject to a l l taxes now or

hereafter imposed under the Internal Revenue Code, or laws amendatory or suppl«mentary thereto.

The notes sh all be subject to e sta te , inheritance, g ift or

other excise taxes, whether Federal or sta te , but sh all be exempt from a ll tax»*
tion now or hereafter imposed on the principal or in terest thereof by any tati>
or any o f the possessions o f the United Stetee, or by any lo cal taxing authority.
3,

The notes w ill be acceptable to secure deposits of public moneys.

They w ill not be acceptable in payment o f taxes,
J|w Bearer notes tilth interest coupons attached w ill be Issued in denomin*tion* o f *1,000, 15,000, *10,000, *100,000 and *1,000,000. 12» notos M ill not»
Issued in registered form.

m i l » m m i m wmmtmm#
H o lid a y , S e p te m b e r 1 5 * 1 9 5 ? »

.5-

S/C 0

A c t i n g S e e r a t a r y o f t h e T r e a s u r y F o l e y t o d a y an n o u n c e d t h e o f f e r i n g ,
th ro u g h th e F e d e r a l R e se rv e B an k s, o f 2 - 1 /8 p e r c e n t T r e a su r y N o te s o f
S e r i e s A - 1 9 5 3 , o p e n o n a n e x c h a n g e b a s i s , p a r f o r p a r , t o h o l d e r s o f 1 -7 /8
p e r c e n t T r e a s u r y C e r t i f i c a t e s o f I n d e b t e d n e s s o f S e r i e s K - 1 9 5 2 , m a tu r in g
O cto b e r 1 , 2 9 ft # i n t h e M
i o f $ 1 0 ,8 6 1 ,0 2 7 ,0 0 0 , C a d * s u b s c r i p t i o n s
w i l l n o t b e r e c e iv e d «
t h e n o t e s o f S e r i e s A -1 9 5 3 now o f f e r e d w i l l b e d a t e d O c t o b e r 1 , 1952,
an d w i l l b e a r i n t e r e s t f r o » t h a t d a t e a t t h e r a t e o f 2 - 1 / 8 p e r c e n t p e r
a n n u a , p a y a b l e o n a s e m ia n n u a l b a s i s o n J u a s 1 a n d D ecem b er 1 , 1 9 5 3 * Thsy
w i l l m a t u r e D ecem b er 1 , 1 9 5 3 * T h e y w i l l b e i s s u e d i n b e a r e r fo r m o n l y ,
w i t h i n t e r e s t c o u p o n s a t t a c h e d , i n d e n o m in a t io n s o f $ 1 , 0 0 0 , $ 5 , 0 0 0 , $10,000, |
$ 1 0 0 ,0 0 0 a n d $ 1 , 0 0 0 , 0 0 0 *
P u r s u a n t t o t h e p r o v i s i o n s o f t h e P u b l i c D e b t A c t o f 1 9 l i l , a s amended,
i n t e r e s t u p o n t h e n o t e s now o f f e r e d s h a l l n o t h a v e a n y e x e m p t io n , a s su ch ,
u n d e r 5th e I n t e r n a l le v e m t e C e d e , o r la w s a m e n d a to r y o r s u p p le m e n t a r y
th e re to *
T he f u l l p r o v i s i o n s r e l a t i n g t o t a x a b i l i t y a r e s e t f o r t h I n the
o f f i c i a l c ir c u la r r e le a s e d to d a y *
S u b s c r i p t i o n s w i l l b s r e c e i v e d a t t h e F e d e r a l R e s e r v e B a n k s an d
B r a n c h e s , a n d a t t h e T r e a s u r y D e p a r tm e n t, W a sh in g to n , * * *d e h o u ld b s accom­
p a n i e d b y a l i k e f a c e am oun t o f t h e m a t u r in g c e r t i f i c a t e s *
S u b j e c t t o the
u su a l r e se r v a tio n s, a l l su b sc rip tio n s w ill b s a llo t t e d in f u l l *
The s u b s c r i p t i o n b o o k s w i l l c l o s e f o r th e r e c e i p t o f a l l s u b s c r ip tio n !
a t t h e c l o s e o f b u s i n e s s T h u r s d a y , S e p te m b e r 1 1 «
S u b s c r i p t i o n s a d d r e s s e d t o a F e d e r a l R e s e r v e B an k o r B r a n c h o r t o the
T r e a s u r y D e p a r t m e n t , an d p l a c e d i n t h e m a i l b e f o r e m id n ig h t S e p te m b e r 1 8 ,
w i l l b e c o n s i d e r e d a s h a v in g b e e n e n t e r e d b e f o r e t h e c l o s e o f t h e s u b s c r i p ­
t io n b o o k s*
The t e x t o f t h e o f f i c i a l c i r c u l a r f o l l o w s t

TREASURY D EPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS*
Monday, September 35, 1952 •

S-3166

Acting Secretary of the Treasury Foley today announced the offering,
through the Federal Reserve Banks, of 2-1/8 percent Treasury Notes of
Series A-1953, open on an exchange basis, par for par, to holders of 1-7/8
percent Treasury Certificates cf Indebtedness of Series E-0L952, maturing
October 1, 1952, in the amount of $10,861,027,000« Cash subscriptions
will not be received.
The notes of S e ries A-1953 now offered w ill be dated October 1, 1<?52,
and w ill bear in te re st from th at date a t the rate of 2-1/8 percent per
annum, payable on a semiannual b a sis on June 1 and December 1, 1953® They
will mature December 1, 1953« They w ill be issu ed in bearer form only,
with in te re st coupons attached, in denominations of $1,000, $5,000, $10,000,
$100,000 and $1,000,000*
Pursuant to the provisions of the Public Debt Act of 19i*l, as amended,
interest upon the notes now offered shall not have any exemption, as such,
under the Internal Revenue Code, or laws amendatory or supplementary
thereto* The full provisions relating to taxability are set forth in the
official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington, and should be accompanied by
a like face amount of the maturing certificates* Subject to the usual
reservations, all subscriptions will be allotted in full*
The subscription books will close for the receipt of all subscriptions
at the close of business Thursday, September 18*
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight September 18,
will be considered as having been entered before the close of the subscrip­
tion books*
The text of the official circular follows}

UNITED STATES OF AFRICA
2-1/8 PERCENT TREASURY NOTES OF SERIES A-1953
Dated and bearing interest from October 1, 1952

1952
Department Circular No, 913
____
Fiscal Service
Bureau of the public Debt

Due December 1, 1953

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 15> 1952.

I,

OFFERING OF NOTES

1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
[the United States for notes of the United States, designated 2-1/8 percent
Treasury Notes of Series A-1953, in exchange for Treasury Certificates of In~
Idebtedness of Series E-1952, maturing October 1, 1952.
II.

DESCRIPTION OF NOTES

1. The notes will be dated October 1, 1952, and will bear interest from'
[that date at the rate of 2-1/8 percent per annum, payable on a semiannual basis
ion June 1 and December 1, 1953. They will mature December 1, 1953, and will
not be subject to call for redemption prior to maturity.
2. The income derived from the notes shall be subject to all taxes now or
■hereafter imposed under the Internal Revenue Code, or laws amendatory or supple|uientary thereto. The notes shall be subject to estate, inheritance, gift or
■other excise taxes, whether Federal or State, but shall be exempt from all taxaItio n now or hereafter imposed on the principal or interest thereof by any State,
lor any of the possessions of the United States, or by any local taxing authority.
I
3. The notes will be acceptable to secure deposits of public moneys.
■'hey will not be acceptable in payment of taxes.
i|. Bearer notes with in te r e st coupons attached w ill be issu ed in denomina­
t e s of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The notes w ill not
■ e issued in registered form.
•
1
5» The notes will be subject to the general regulations of the Treasury
Pepartment, now or hereafter prescribed, governing United States notes.
Ill. SUBSCRIPTION AND ALLOTMENT
I

1. Subscriptions will be received at the Federal Reserve Banks and Branches
at the Treasury Department, Washington. Banicing institutions generally may
■ucmit subscriptions for account of customers, but only the Federal Reserve Banks
P^d the Treasury Department are authorized to act as official agencies.

2. The Secretary of the Treasury reserves the right to reject any sub*
jscription, in whole or in part, to allot less than the amount of notes applied

for, and to close the books as to any or all subscriptions at any time without
notice; and any action he may take in these respects shall be final, Subject
to these reservations, all subscriptions will be allotted in full. Allotment
notices will be sent out promptly upon allotment*
IV*

PAYMENT

1, Payment at par for notes allotted hereunder must be made on or before
October 1, 1952, or on later allotment, and may be made only in Treasury Certifi­
cates of Indebtedness of Series E-1952, maturing October 1, 1952, which will be
accepted at par, and should accompany the subscription. The full amount of
interest due on the certificates surrendered will be paid to the subscriber
following acceptance of the certificates*
V,

GENERAL PROVISIONS

1, As fiscal agents of the United States, Federal Reserve Banks are author­
ized and requested to receive subscriptions, to make allotments on the basis and
mp to the amounts indicated by the Secretary of the Treasury to the Federal
Bteserve Banks of the respective Districts, to issue allotment notices, to receive
payment for notes allotted, to make delivery of notes on full-paid subscriptions
[allotted, and they may issue interim receipts pending delivery of the definitive
botes,
2, The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offerling, which will be communicated promptly to the Federal Reserve Banks*

E, H. FOLEY
Acting Secretary of the Treasury

// **'■*-J
3?/ /te*

io B x iK a m m m m i s ,
T u e s d a y f S e p te m b e r 1 6 . 1 9 5 2 *

r elea se

The S e c r e t a r y o f th e T r e a s u r y an n oun ced l a s t e v e n in g t h a t t h e t e n d e r s f o r
$ 1 , 2 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t » , o f 9 1 - d a y T r e a s u r y b i l l s t o b e d a t e d S e p te m b e r 18
a n d t o m a t u r e D ecem ber 1 8 , 1 9 5 2 , w h ic h w e r e o f f e r e d on S e p te m b e r 1 1 , w e r e opened at
t h e F e d e r a l R e s e r v e B a n k s o n S e p te m b e r 1 5 »
T he d e t a i l s o f t h i s i s s u e a x e a s f o l l o w s t
T o t a l a p p l i e d f o r - f | L 2 7 1 , 3 9 0 ,0 0 0
T o ta l a c c e p te d
- 1 ,2 0 2 ,0 9 3 ,0 0 0

A v e rag e f r i e s

- 9 9 *5 5 2

( i n c l u d e s $ 2 5 1 ,7 2 2 ,0 0 0 e n t e r e d on a
n o n - c o m p e t it iv e b a s i s a n d a c c e p t e d in
f u l l a t t h e a v e r a g e p r i c e shown below )
E q u i v a l e n t r a t e o f d i s c o u n t a p p r o x * 1 *7 7 1 $ per ansi

R an ge o f a c c e p te d c o m p e titiv e b id e t

99.557

H igh
lo w

99,551

E q u iv a le n t r a t e o f d is c o u n t a p p ro x .
»

*

»

*

m

( 9 0 5 o f t b s am o u n t b i d f o r a t t b s lo w p r i e s w a s a c c e p t e d )
F e d e r a l R ese rv e
D istr ic t

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

T o ta l

B o sto n
Raw Y o rk
P h ila d e lp h ia
C le v e la n d
R ichm ond
A tla n ta
C h ic a g o
S t* lo u is
M in n e a p o lis
K an sas C ity
D a lla s
San F r a n c isc o

$

I

T o tal

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

11,768,000
8 6 1 *,1 »S 2 ,0 0 0
1 3 ,1 (7 1 ,0 0 0

66 .6 0 0 .0 0 0

20,882,000

3 7 .7 5 1 .0 0 0
3 7 ,6 3 1 » ,0 0 0
251», 2 0 7 ,0 0 0
2 2 .1 9 7 .0 0 0
2 1 . 6 5 2 .0 0 0
5 5 . 6 3 3 .0 0 0
1 ,3 ,521»,o o o
U 2 .9 h 7 .O O Q

1 7 ,8 h 9 ,0 0 0
2 1 . 1 6 9 .0 0 0
7 6 ,h h l,0 0 0

» 2 , 2 7 h , 3 9 0 ,0 0 0

1 1 ,2 0 2 ,0 9 3 ,0 0 0

13 ,1*31,000
1 9 . 1 5 2 .0 0 0
2 9 .9 8 2 .0 0 0
3 2 ,1 (9 3 ,0 0 0

.

80 998.000

1*7535

1.7765

per ansi
*

*

TREASURY DEPARTMENT
Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
[Tuesday, Septem ber 1.6, 1 9 5 2 .

S-3 1 6 7

The S e c r e t a r y o f th e T r e a s u r y announced l a s t e v e n in g t h a t th e
tenders f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 I - ^ a y T r e a s u r y b i l l s
fco be d ated Sep tem b er 18 and to m atu re December 18, 19 5 2 , which, were
offered Gn Sep tem b er 1 1 , were opened a t th e F e d e r a l R e se rv e Banks on
September 1 5 .
•The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T o ta l a p p l ie d f o r - $ 2 ,2 7 4 ,3 9 0 * 0 0 0
T o tal a c c e p te d
- 1 ,2 0 2 ,0 9 3 *0 0 0 . ( i n c l u d e s $ 2 5 4 ,7 2 2 ,0 0 0
e n te r e d on a n o n -c o m p e titiv e
b a s i s and a c c e p t e d in f u l l
a t th e a v e r a g e p r i c e shown
below )
Average p r i c e
- 9 9 *5 5 2 E q u iv a le n t r a t e o f d is c o u n t a p p r o x .
1 . 7 7 4$ p e r annum
Range o f a c c e p te d competitive bids:
~ 99 •557 Equivalent rate
1 .7 5 3 $
- 99*551 Equiv a l e n t rate
1 .*7.7*6»

High
Low

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

(98fo per o f th e amount b id f o r a t th e low p r i c e was a c c e p t e d )
Bederal R eserv e
•district

Boston

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

pew York

piilade lp h ia
■ 1©ve land

2 3 ,2 7 9 ,0 0 0
1 ,5 6 6 ,4 9 5 * 0 0 0
3 2 .4 7 1 .0 0 0

66.600.000

Richmond

3 7 *7 5 1 *0 0 0
3 7 *6 3 4 ,0 0 0
2 5 4 ,2 0 7 *0 0 0

Atlanta

22.197.000
21,652,000

5 5 *6 3 3 *0 0 0
4 3 ,5 2 4 ,0 0 0
___ 1 1 2 ,9 4 7 , 000
T OTAL

$ 2 ,2 7 4 ,3 9 0 ,0 0 0

T o ta l
A ccepted,
$

11,768,000
8 6 4 ,4 5 2 ,0 0 0
1 3 ,4 7 1 *0 0 0
20,882,000
1 7 *8 4 9 *0 0 0

21,169*000

7 6 .4 4 1 .0 0 0
1 3 *4 3 1 *0 0 0
1 9 .1 5 2 .0 0 0

29.982.000

3 2 .4 9 8 .0 0 0
80.998.000
$1,202,093*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 h2 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section ll£ of the Revenue Act of 19l&, 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. I|l8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.

Copies of the circular may be obtained from any Federal

Reserve Bank or Branch.

2

-

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 wil.1 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 September 25, 1952

9

in cash or other immediately available

funds or in a like face amount of Treasury bills maturing September 25,
Cash and exchange tenders will receive equal treatment.

W

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

Exhibitxl

TREASURY DEPARTMENT
Washington

J -

r'/cr

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, September 18, 1952
#
The Secretary of the Treasury, by th is public n otice, in v ite s tenders
fo r $1,200,000,000

, or thereabouts, o f

92

-day Treasury b i l l s , for

cash and in exchange fo r Treasury b i l l s maturing September 25, 1952

# in

the amount o f $ 1 , 200, 060,000 , to be issued on a discount b a sis under
competitive and non-competitive bidding as h erein after provided.
o f th is se rie s w ill be dated September 25, 1952
December 26, 1952

------------------ g g . ------------------

te re st.

The b ills

and wjjj_ mature

, when the face amount w ill be payable without in-

They w ill be issu ed in bearer form only, and in denominations of

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value),
Tenders w ill be received at Federal Reserve Banks and ¿ranches up to the
Daylight Saving
closin g hour, two o ’ clock p.m ., Eastern/S&&2td3txd: tim e,Monday, September 22, 19$
Tenders w ill not be received at the Treasury Department, Washington,

Each

tender must be fo r an even m ultiple of $1,000, and in the case o f competi­
tiv e tenders the price offered must be expressed on the b a sis o f 100, with
not more than three decimals, e. g ., 99.925.

Fractions may not be used.

It i s urged th at tenders be made on the printed forms and forwarded in the
sp e c ia l envelopes which w ill be supplied by Federal Reserve Banks or

Branches

on application th erefor.
Others than banking in stitu tio n s w ill not be permitted to submit tenders
except fo r th eir own account.

Tenders w ill be received without deposit from

incorporated banks and tr u st companies and from responsible and recognized

REIEASE MORNING NEWSPAPERS,
[Thursday, Septem ber 18, 1 9 5 2 .

S -3 1 6 8

The S e c r e t a r y o f th e T r e a s u r y , by t h i s p u b l i c n o t i c e , i n v i t e s
[tenders f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 2 -d a y T r e a s u r y b i l l s ,
[for cash and in exch an ge f o r T r e a s u r y b i l l s m a tu rin g Sep tem b er 2 5 ,
I1952, in the amount o f $ 1 , 20 0 , 06p , 000, to be i s s u e d on a d is c o u n t
[basis under c o m p e t itiv e and n o n - c o m p e titiv e b id d in g a s h e r e i n a f t e r
[provided. The b i l l s o f t h i s s e r i e s w i l l be d a te d Sep tem b er 2 5 , 1 9 5 2 ,
fend w ill m ature December 2 6 , 1 9 5 2 , when th e f a c e amount w i l l be
[payable w ith o u t i n t e r e s t .
They w i l l be i s s u e d i n b e a r e r form o n ly ,
fend in d en o m in atio n s o f $ 1 , 000. $ 5 , 000, $1 0 , 000, $1 0 0 , 000, $ 5 0 0 , 000,
fend $1 , 000,000 ( m a t u r it y v a lu e
Tenders w i l l be r e c e i v e d a t F e d e r a l R e se rv e Banks and B ra n c h e s
|P to the c l o s i n g h o u r, two o 'c l o c k p .m ., E a s t e r n D a y lig h t S a v in g
piffle, Monday, Sep tem b er 2 2 , 1 9 5 2 . T en d e rs w i l l n o t be r e c e i v e d a t
[the T reasury D ep artm en t, W ash in g to n . ' Each te n d e r m ust be f o r an even
multiple o f $ 1 , 000, and in th e c a s e o f c o m p e t itiv e t e n d e r s th e p r i c e
p fe r e d must be e x p r e s s e d on th e b a s i s o f 1 0 0 , w ith n o t more th a n
three d e c im a ls, e . g . , 9 9 . 9 2 5 . F r a c t i o n s may n o t be u s e d .
It is
ferged th at te n d e r s be made on th e p r i n t e d form s and fo rw a rd e d in th e
(special e n v e lo p e s w hich w i l l be s u p p li e d by F e d e r a l R e se rv e Banks or
■ ranches on a p p l i c a t i o n t h e r e f o r .
I
Others th an b a n k in g i n s t i t u t i o n s w i l l n o t be p e r m it t e d to su b m it
lenders e x c e p t f o r t h e i r own a c c o u n t . T e n d e rs w i l l be r e c e iv e d
fithout d e p o s it from in c o r p o r a t e d ban ks and t r u s t com pan ies and from
responsible and r e c o g n iz e d d e a l e r s in in v e stm e n t s e c u r i t i e s .
T en d ers
pom o th ers m ust be acco m p an ied by paym ent o f 2 p e r c e n t o f th e f a c e
pount o f T r e a su r y b i l l s a p p l i e d f o r , u n le s s th e t e n d e r s a r e
^companied by an e x p r e s s g u a r a n ty o f paym ent by an in c o r p o r a t e d bank
p tru st company.
| r.

Im m ediately a f t e r th e c l o s i n g h o u r, t e n d e r s w i l l be opened a t th e
, , 3eTVG Banks and B r a n c h e s, f o l l o w i n g which p u b l ic an n o u n ce■ Z ¥ l 1 1 be siade By th e S e c r e t a r y o f th e T r e a s u r y o f th e amount and
■ -ce range o f a c c e p t e d b i d s . Those s u b m it t in g t e n d e r s w i l l be
Ih /m
° f th e a c c e Pta n c a o r r e j e c t i o n t h e r e o f .
The S e c r e t a r y o f
L/n + ° ? su ry e x P r e s s l y r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any o r
[shall0- l33 in whole o r in Pa r t * and & is a c t i o n in any su ch r e s p e c t
t^ H L DeJ,f l n 5'1 * S u b je c t to t h e s e r e s e r v a t i o n s , n o n - c o m p e titiv e
■ aers f o r $20 0 ,0 0 0 o r l e s s w ith o u t s t a t e d p r i c e from anv one

2

b id d e r w i l l be a c c e p te d in f u l l a t th e a v e r a g e p r i c e ( i n th r e e
d e d m a l s ) o f a c c e p te d c o m p e t itiv e b i d s .
S e ttle m e n t f o r a c c e p te d
t e n d e r s in a c c o r d a n c e w ith th e b id s m ust be made o r co m p leted a t the
F e d e r a l R e se rv e Bank *on Septem b er 2 5 , 1 9 5 2 , in c a sh o r o th e r
im m e d ia te ly a v a i l a b l e fu n d s o r in a l i k e f a c e amount o f T re a su ry
b i l l s m a tu r in g Sep tem b er 25, 1952. Cash and exch an g e t e n d e r s w ill
r e c e i v e e q u a l t r e a t m e n t .. Cash a d ju s tm e n ts w i l l be made f o r
d i f f e r e n c e s betw een th e p a r v a lu e o f m a tu r in g b i l l s a c c e p te d in
ex ch an g e and th e i s s u e p r i c e o f th e new b i l l s .
The income derived from Treasury bills, w h e ther interest or gain
from the sale or other d i s p o s i t i o n of the bills, shall not have any
exemption, as such, and loss from the sale or other disposition of
Trea s u r y 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 t axation n o w or h e r e a f t e r imposed on the princ i p a l or
interest thereof by any State, or any of the possessions of the
U n i t e d States, or by any local t a xing authority. For purposes of
taxation the amount of discount at w h i c h Treasury bills are
originally sold by the United States shall be considered to be
interest. U n d e r Sections 42 and 117 (a) (l) of the. Internal Revenue
Code, as amended by S e c tion 115 of the Revenue Act of 1941, the
amount of discount at w h i c h bills issued h e r e u n d e r are sold shall
not be considered to accrue until such bills shall be sold, redeem©
or otherwise d isposed o f , and such bills are e x c lu d e d from .consid© r a t i o n as capital assets. Accordingly, the owner o f T r e a su r y bills
(other than life insurance companies) issued h e re u n d e r n eed include
in his income tax r e t u r n only the difference betw een th e p r i c e paid
for such bills, w h e ther on original issue or on su b se q u e n t purchase,
and the amount a ctually received either u p o n s a l e o r red em p tio n at
m a t u r i t y d u r i n g the taxable y e a r f o r which th e r e t u r n i s m ade, as
ordinary gain or loss.
T r e a s u r y D epartm en t C i r c u l a r No. 418, as am ended, and t h i s
n o t i c e . p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and g o v e rn the
c o n d it io n s o f t h e i r i s s u e .
C o p ie s o f th e c i r c u l a r may be obtained
from any F e d e r a l R e se rv e Bank o r B ra n c h .

oOo

QK

UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES

January 1 , 1952 - Ju n e 3 0 , 1952, and Calendar 1 9 5 1
(in millions of dollars at $35 per o u n c e )
Negative figures represent net sales by the
United states; politive figures, net purchases.#
1st Quarter
2nd Quarter *
1952
Country
1952
mm
-$2.5
- - . ...............

Af*crVimri s t a n
irtre n + .i n a
P ftl cri nm

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

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

Belgian Congo

. • • • « . « . * . . • • • *•

Panada

___ . . . . . . . . . . . . . . . . . . . .

flhile

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

P rtl fflnhi a

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

T lftrm iflt'k '__ _ _ .

. . . . . . . . ««. . . .

Dominican Republic ........................
Ecuador » • • • * • * * * * . . * * . « • • • • * •
. . . . . . . . . . . . . . . . . . . . . . . .

US
. .—. . . . . . .^. . . . . . .
JL* Ji i T
«vs la n d «— -. —
TPt n la n d . . . . . . . . . . . . . . . . . . . . . .
TPnanna

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

nr>PA(*ft

. . . . . . . . . . . . . . . . . . . . . . a

T n d fin a s i ft

M o v ir* n

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

. . . . . _____ . . . . . . . . . . . . .

1*8

P rtH ’.iiir a l

«•«»
—

—

—

—

••

—

mm

—

mm

mm

mm

•5.U

11.3

—
60 «3 ^
-U.5
-1 5 .0
3.5
-3U.9
-3.0

•U

-U.o

TTni +.«d TCincrdrwn . . . . . . . . . . . . .

Vf t +d n

a r i

..

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

ni

All Other

tv

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

T o tal

.3
«ft«ft

d.

1.

----------—

22.5
2.3

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

772---—
—

—

U.3
520.0
10.0
—

—

—
-.2

$105.7

1557.3

—
..............................................

mm

mm

a n d __ . . . . . . . . . . . . . . .

TTim trnftv

-¡*.8
-20.0*
-10.3
-U5.0

-1.1

Switzerland-Bank for International
Settlements • • • ............
S y r i a ......................... . ........... ................... ..
..

17*5r * ~
-2 0 .0
-19.7
-8 .0
-3 »5
-7 6 .0

-1.3

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

â f V i r»ft . . . . . . . . . . . . . . .

i..—..... .... -*|-*r

-12.3

Stffftdftn . . . . . . . . . . . . . . . . . . . . . . .

QmvhVt

-$U9.9
—
10.3*
-8.0
-10.0
-U.8*

—

—

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

..aqr i.pf.ll«l i. i■■■■■ .
-17.5

—

.....-...loiilf—..

Salvador • • • • • • . • • . . . • • . .............
Saudi Arabia ...............• • ............. . .

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

mm

Mo+.Vip>r*l a n d ft . . . . . . . . . . . . . . . . . .

Peru
Philippines

£.69

«5.2

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

Cuba

THcnrnt

20.2

mm

Calendar
1951

-32.0
-15.0

-3 0 .U*
-6 .3
--------

$zrr~

U69 .9*
2 2 .2*
5 .0
-.9

.1

* Transactions with each country in the first two quarters of 1952 were all pur­
chases or all sales. Net figures for total 1951 also represent annual gross
transactions with each country with the exception of countries marked with
asterisks; for these countries the net figures represent the difference between
gross purchases and gross sales. Net sales of $932 million in the first half of
1951 were offset by net purchases of $1,007 million in the second half. Gross
purchases of gold in 1951 amounted to $1,2$0 million, and gross s a l e s w e re
$ 1 ,1 7 5 million.

cn

5 -

The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the second quarter
of 1952*

U. S. purchases of gold exceeded sales by

$10$.7 million in this period.

Net gold purchases

amounted to $557 million in the first quarter of 1952
and, in the entire calendar year 1951* to $75 million.
A

table showing net transactions

by

country

for the first and second quarters of 1952 and calendar
1951 is attached.

3 /(A

treasury

department

Information Service

IMMEDIATE RELEASE
Wednesday, September 17, 1952

WASHINGTON, D .C .

S-31Ó9

The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the second quarter
of 1952»

U. S* purchases of gold exceeded sales by

f105.7 million in this period.

Net gold purchases

amounted to $557 million in the first quarter of 1952
and, in the entire calendar year 1951^ to $75 million.
A table showing net transactions by country
for the first and second quarters of 1952 and calendar
1951 is attached.

UNIT?#

("OLD T R.PusAC TIONS WITH FOREIGN COUNTRIES

January 1 , 1 9 5 2 - June 3 0 , 1 9 5 2 , and C alendar 1 9 5 1
(in m illio n s of d o l l a r s a t $35 p er ounce)

145

N egative f i g u r e s re p re se n t n et s a l e s by the
U nited s t a t e s ; p o s it i v e f i g u r e s , n et p u rch ase s«#
2nd Q u a r t e r #
1 952

Country
Afghanistan .,
i/rgentina «...
¡Belgium.....

1 s t O uarter #
1952

C alendar

1951

-$¡2.5
20.2

B e lg i a n Congo
¡Canada . . . . . . .

[Chile ........

$6.9
1.8

¡Colombia........ ,

-5.2

Cuba..........

-Mi 9 . 9
- 1 0 .3 #
-

- 8.0
10.0

—If • 8 #

-17.5

D e n m a rk ......................
Bom inican Republic
¡E c u a d o r .................... .,
P e y p t .......... ..................
F i j i I s l a n d s ............................... ........................
¡Finland
,
France ..............................
Greece . . . * • • • .................. ..
In d o n e sia ............................
........................
Lebanon ................................... ..
.........................

¡Mexico ........................... ..
[N etherlands . . . . . . . . . . . . .
{Peru ..............................................
P h ilip p in e s ............................... ................ .. • • •
P o rtu g al .....................................
S a lv a d o r ............................T. . . ..........................
Saudi A r a b ia ............... ................ .
Sweden ........................... T,
■ f i t z e r l a n d ....................... .
® it z e r la n d - B a n k f o r I n t e r n a t i o n a l
S e t t l e m e n t s ............... .
fy r i a ...............T. TT.
South A f r i c a ............................
■ n ite d Kingdom ..................
Uruguay
V atican C it y ......
Venezuela ......
All Other ................

Total

—

- 1 2 .3
-1 , ^
im

1,

•h

J- * X
in
l J - On

.3

j i. n

2 2 .5

•
K

4,1.5
7 0

♦8
- 3 2 .0
- 1 5 .0
-3 ,0 . it#
- 6 ."
3¿Z

4 .3

5 2 .1

- .2
*1 0 5 .7

- 60 . 3 #
}. ci
-4 « b
V A
—-Lp.
w
3 .5
- 3 U .9
- 3 .0

2 .3

1 0 .0

l

3 .6
- U .8
o
un
V| Pit
\J
- 1 0 .3
- I i5 .o
- 5 .U

*5 5 7 .3

-1r,—
.t-

I469.9 *
2 2 .2 #
5 .0
- .9
.1
* 7 5 .2

_
oaviii t;uuuur,y jlii one i i r a u uwo q u c u 'o e rs o i x y j c . w eru ¿uix u u r —
■ a s e s or a l l s a l e s .
The f i g u r e s f o r t o t a l 1 9 5 1 a l s o r e p r e s e n t a n n u a l g r o s s
■ R e a c t i o n s w ith e a c h c o u n t r y w ith t h e e x c e p t i o n o f c o u n t r i e s m ark e d w it h
■
e r i s k s j f o r t h e s e c o u n t r i e s t h e n e t f i g u r e s r e p r e s e n t t h e d i f f e r e n c e b e tw e e n
■ i s s P u r c h a se s an d g r o s s s a l e s .
N e t s a l e s o f k p32 m i l l i o n in t h e f i r s t h a l f o f
Vwere o f f s e t b y n e t p u r c h a s e s o f ,111,007 m i l l i o n i n t h e s e c o n d h a l f .
G ro ss
^-7r Sef °~ ^ o ld i n 1 9 5 1 am oun ted t o (3 1 ,2 5 0 m i l l i o n , and g r o s s s a l e s w e re
B A 7 5 m illio n .

ene y

outdoor

sing;

fi

f

ionai

and locai advertisers; and

the invaluable creative
I ^ V ä ft C# w

w I

c,. ut • Ülas "ford Co nipany
ton, burst ine &
Inc.
Öent o n I? Io *i e s , Inc.
twaid Company,
id-Sample,

Q

FO R

S T E N C IL L IN G

S IN G L E

In
to
th e

(ON P L A I N P A G E ) -

SPA C E

p r e se n tin g

C h a irm a n

H ow ard

A d v e r tisin g

a
J.

sta tu e tte

of

M orgen s o f

C o u n c il,

th e
th e

S e c re ta ry

M in u te
B o ard

Snyder

of

M an o f

1775

D ir e c to r s

said :

/

of

** 31 •*

m i your job is ntver
A

f inishad.
i/ personally. fervently hope
for » continuation of the 1 riendly
stn.fi effective rei aftonsbi p of the

Advertising Counc iX with the
in
Treasury and the bond pro "iirif»
mf

Ac t ing as an

the years ahead.

i»separable team. .i nope that the

treasury, with your aid, will be
able to continue to effectively

iiiii thrift to t|ie Americ'Ilf people
—

eight leading advertising agencies/
nbich serve as your t*sk-force/
i n performing an important function
in the development of Defense Send
advertising.

During the last ten

years, public service advertising,
under your leadership and guidance
hat performed many miracles of
persuasion.

it has sold many

worth-while ideas; it has delivered
impressive results; it has done
an important job for the public

P

•

£6

-

is the reason why it has been so
important to increase our revenue
during the past few years.

This

is why it is so important that we
double and redouble our efforts i
the months ahead
to sell and res©
t
the Defense Bond program to the
people of America.
The tremendous part whicft
advertising h«s so far played in
«taking the Savinge«iBonds Program
success cannot adequately be fees

indivi m

the power of the cowbined four

§
!§
!!§

engines of a w-t# Superfortress -have required the use of new
heat-resisting alloys demanding
larger amounts of metals already
in short supply.
1 need not till youA when •##
consider the defense program as
a »hole,that all of this is
expensive; that all of this
necessary preparation place® a
burden on our economy.

It has been

I ap«¡ai1 i

mough.

fhe
to il

StiífHi

is¡fTy¡ih %>*
2o,ü-Jü iic#ri-«sa«ir -

1

'« f

- IS only id»000 man-hours for the first
■ I 1 ■;■;;■'•■■■/1 | | :| l 8

i , ' * ||raffiragjm I f tfi I P f i w i

product ion model of the 8-17 —
our standard heavy bomber during most
of sv*rifc Oaf II.
Today’s Navy or Air force jet
ghter we i

nearly as much §§

the old 8-17 bomber» and today's
1*36 weighs 2-1/2 times'as much
as the older 8-29.
Illfl

devices —

Automatic

many of them electronic

to provide the pilot with greater
and more accurate fire power or

elriidI well nciV#no•d # Dtliverioo o*
all military procurement itome have
risen s teach Ì,y 'aim are ria® proceed in
at 1 rate tn excess of three-fourth#
thy jj«tic fit* st wí'i*líh they sre

scheduled to level off.
mais# notable progress in further
developing oijr basic rasouroes and
in expanding our industrial capacity
well ss in providing additions!

u s e s

i c t u s 1 war --

^ if”da? thè burri

■

requtre s a tough m d lofif-list Mif
brand |f pi tr iot sm.

It r equ»res t

ts ft sai usti ip Iti thè
ree of Si;

filliW ®

a.ir t pi M0 4|Xi of u .

11 requir»8

c yyr i uB to f a c0

^e faci* and io hold

fé ciaf pur put® /

f or eventi ni anothrr

tCftlf W V t /fi*«
umiferi'
w

tte

fa

If

i r|

f#:»rt etnee thè il
Ol

ion in thè tw
»on of Korea.

nat tonai defunse procrai

fè.T

future of Kmi r ica .
s t raonscs whi
thè

mnel3,
i
thè sititii

ao ' ,«vernerò;

.$ystem.
tilt,

iim $

11

tJ f

cui,

uur fr#e ersterpr ise
U

ws bave dune

M
f'téfiÌ*1ÌC

■
*w

5# I» '#
II v
ii

Siiid up Ih i&
IXIi T% HM
■

thè pattern of tifo thsi

1f|absh ioned f or oursslve®JJ
|| ot ■v y|X% «

% **feirì* **-»»<

*

tht

tn 1 1 h 8.V é H i

:$Ìlv f e t

1ÌI@ Ti I

a

t ci u

if thoy tsad ne ver

.# • * ' i

0 X 1 s HhgÉft

» A «S ■
•f’
f» /%
%*#W SS" V,I W

fre®. institytions
a thase thirt-S li ® e

IT

1

conclusively demonstrates that
lii Savings Bonds Pi 1 ,r1 «» and
particularly its Payroll Savings
Plan feature, has served to ittit
millions of Americans conscious
of the benefits of personal saving.
It has stimulated them to carry out
planned thrift programs to meet
future ant 1 c 1 gated expenditures.

It

has, it well, enabled them, through
their own efforts, to provide
themselves with financial security

Sg|§
§
§
|

TREASURY DEPARTMENT
Washington

The^ollowing address by Secretary Snyder before the tenth
annual meeting of the Board o f D irectors o f the Advertising
Council, Inc., at the Pierre Hotel, New York City, is
EDT
scheduled for delivery at 1:30 p.m./Thursd#^Sept ember 18, 1952
and is for release at that time.

3

'1

°

1
TREASURY DEPARTMENT
Washington
The following address by Secretary Snyder before the
tenth annual meeting of the Board of Directors of the
Advertising Council, Inc,, at the Pierre Hotel, New
York City, is scheduled for delivery at 1:30 p.m,, EDT,
Thursday, September 1$, 1952, and is for release at
that time,
The privilege of joining with you in this meeting of the Board of
Directors of the Advertising Council is a pleasure to which I have looked
forward with great anticipation. This is particularly true in view of
the long association between the Advertising Council and the Treasury
Department,
It has now been more than ten years since the Advertising Council
was established as a non-profit organization for the purpose of
marshalling the forces of advertising to promote voluntary, individual
interest in solving national problems and in making our democracy
stronger and more effective.
Back in 19^2 the War Advertising Council — as the Advertising
Council was then known — accepted the Savings Bonds Program as one of
its first important undertakings. In succeeding years it has conducted
advertising programs in support of many other worth-while causes. This
year alone the Council is supporting nearly a score of public service
programs.
Yet, I frankly believe that the Savings Bonds Program has remained
your biggest single accomplishment. In fact, it is my understanding
that about half of all the space and time being donated to public
service advertising is devoted to the Savings Bonds Program, and that the
total value of the advertising contributed to this program is now amount­
ing to more than $50 million annually.
Businessmen have recognized that business can prosper and remain
secure only so long as the country prospers and is secure, and it can
be truly said that what is good for the people is good for business.
For this reason I think you may be justly proud of the prominent role
that advertising has played in promoting nationwide thrift through the
Savings Bonds Program, particularly in the years since the end of World
War ii.
Today, individual Americans own a cash value of more than $k9 billion
in Savings Bonds. Their holdings of Series E bonds alone are now $35
billion — $5 billion greater than at'the end of the war and about $U*l/U
illion greater than the level reached at the end of the war financing
Period immediately following the Victory Loan Drive. This is a remarkable
record.

S-3170

184
- 2 During World War I I , sa le s of Savings Bonds were stim ulated by the
twin forces of patrio tism and the shortage of goods. People bought
Savings Bonds then both as a d ire c t, individual contribution to winning
the war and as a convenient way of saving funds to be spent a t a la te r
time when consumer goods would be more re a d ily a v a ila b le e
After the close of World War I I , m illions o f fa m ilies in ev&iy
community throughout the Nation, through th eir accumulated savings were
able to purchase the things they desired: homes, automobiles, e le c tr ic a l
appliances, home fu rn ish in gs, and a thousand other things. Many young
people were able to go to college and p ro fessio n al schools because of
the fam ily*s savin gs. Yet, despite the fa c t th at many chose, or found
it necessary, to spend a p art of th eir savin gs, the American people, as
a whole, kept on buying Savings Bonds regu larly .
This, i t seems to me, conclusively demonstrates th at the Savings
Bonds Program, and p a rtic u la rly i t s Payroll Savings Plan featu re, has
served to make m illion s of Americans conscious of the b en efits of
personal saving. I t has stim ulated them to carry out planned t h r i f t
programs to meet future an ticip ated expenditures. I t has, as w ell,
enabled them, through th eir own e ff o r t s , to provide themselves with
financial secu rity again st emergencies and fo r old age. The tangible
stake in America and in the future of America represented by these hold­
ings of savings bonds has made many people b etter c itiz e n s and has made
our country a b etter place in which to liv e .
But unfortunately th is country of ours i s today involved in a
world-wide stru gg le. You recognize as tru ly as do I what the communist
menace, i f l e f t unchecked, would sig n ify fo r the future of America. I t
is a menace which could destroy the minds, the ambitions and the
achievements of our fre e enterprise system. I t could destroy everything
that we have done to bu ild up th is Nation, I t could l i t e r a l l y destroy
the pattern of l i f e that we have fashioned fo r ourselves. I t could
blot out, as i f they had never ex iste d , the fre e in stitu tio n s that have
made these things p o ssib le .
All of th is means that we are faced now with a new t e s t of our
citizenship0 Our form of Government r e s t s squarely on the concept of
individual re sp o n sib ility in the formation of national p o lic ie s and
programs. And every national policy or program, to be su cce ssfu l, must
represent the w ill of individual c itiz e n s actin g jo in tly .
This present situ a tio n — one short of a ll- o u t war, but with
many of the burdens of actual war — requires a tough and lo n g-lastin g
orand of patriotism . I t requires a new degree o f statesmanship on the
part of a l l of u s. I t requires courage to face the fa c ts and to hold
o our purpose of preventing another fu ll- s c a le war and preserving freedom
and decency in the world.

cn

- 3 We have, I think, made substantial progress in that direction in
the two years since the invasion of Korea®
Our national defense program is already well advanced. Deliveries
of all military procurement items have risen steadily and are now
proceeding at a rate in excess of three-fourths the peak rate at which
they are scheduled to level off. We have made notable progress in
further developing our basic resources and in expanding our industrial
capacity, as well as in providing additional military production capacity
to be used in the event the communist leaders insist on bringing about
full-scale war«
We should not, however, underestimate the magnitude of the job
still before us. National security in these troubled times does not come
cheaply or without effort. This fact is apparent, if only because of the
growing complexity of military weapons, of which our aircraft is a
particularly significant example. The first B-U? "stratojet1* medium
bomber required 3-1/2 million engineering man-hours, compared to only
85,000 man-hours for the first production model of the B-17 — our
standard heavy bomber during most of World War II®
Todayls Navy or Air Force jet fighter weighs nearly as much as the
old B-17 bomber, and today Js B-36 weighs 2-1/2 times as much as the
older B-29, Automatic devices — many of them electronic — to provide
the pilot with greater and more accurate fire power or bombing performance,
more maneuverability, day and night combat capability, and a better chance
of combat success, require tons cf equipment in a plane where a few
hundred pounds used to be enough. The stronger construction needed to
withstand high-speed conditions demands tougher and heavier materials,
while new jet engines, developing as much as 2 5 ,0 0 0 horsepower — 2-1/2
times the power of the combined four engines of a B-29 Superfortress —
have required the use of new heat-resisting alloys demanding larger
amounts of metals already in short supply®
I need not tell you then, when we consider the defense program as
a whole, that all of this is expensive; that all of this necessary
preparation places a burden on our economy. It has been a most remarkable
experience that through the ingenuity, the will to do and the clarity
of thinking of the American people that while we have met the demands
of the defense program, we have at the same time enjoyed a real prosperity
in this country.
The prosperity, which we are now enjoying however, can neither be
measured by nor based upon our defense effort. While our defense
Program has, it is 'true, resulted in increased productivity and employ­
ment in defense and defense-related industries, our real prosperity,
now as in the past, is derived from more permanent factors — the growth
of our population, the dynamic force of individual enterprise and productive
power in a country of abundant natural resources, the wide distribution
of income, and the increasing pace of scientific discoveries®

- hA most vital elemsnt in welding these permanent factors into
u n p a ra lle le d personal and national prosperity is the increased utilization

which is being made of product advertising* Inventive minds can make
new discoveries, and business management can devise the efficient pro­
duction techniques for new products, but neither will prove profitable
unless the product is effectively brought to the attention of the masses
of our people who furnish the great market potential for these goods and
serviceso Advertising is assuredly the great connecting link between
business productivity and mass markets0
At no time has advertising been more vital to our business economy
than in the recent postwar years* As American business converted from
wartime production to peacetime products, new markets had to be found
for the increased supply of goods and services which it was capable of
producing;. Advertising helped find those markets0 Not only has
American business substantially increased its advertising budget, but
new communication mediums, such as television, have made it possible
for advertising to be more effective than ever before«

The result has been to create a solid and expanding demand for
consumer goods and services, and to provide business with new and grow­
ing opportunities for profitable production and the expansion of production
facilities* Our people have benefited from the increased incomes which
have been generated by the resulting high-level business activity, and
from the increasing array of new products and personal living conveniences
which are daily enriching our lives0
If we are to assure the continuance of this real prosperity, however,
we need to take positive steps to maintain the strength of our financial
system, which is basic to the smooth functioning of all sectors of the
economy* This is the burden pla.ced upon our tax system and on the
Savings Bonds Program by our defense effort* This is the reason why it
has been so important to increase our revenues during the past few years#
This is why it is so important that we double and redouble our efforts
in the months ahead to sell and resell the Defense Bond program to the
people of America«
The tremendous part which advertising has so far played in making
the Savings Bonds Program a success cannot adequately be measured,
although its results are obvious« Advertising holds a position*in the
United States which, in comparison to its position in other countries,
is unique# Nowhere else is advertising so highly developed or so
important in the economy. It is to convincing advertising that I
attribute a major credit for the fact that today over one-fifth of our
public debt is in the form of Savings Bonds, In other countries —
such as England, France, and Canada — which have also made efforts to
sell Government securities particularly designed to attract the savings
of small investors, the corresponding figure is not more than one-tenth,
and in some cases is much less than that. Advertising has, indeed, been
one of the key forces in the achievement of our sales goals through the
years and will remain a key force in the future®

1 Q7
-

¡5

-

To stead ily maintain a su ccessfu l sa le s program, even a fte r such
astounding r e su lts have been achieved, i s a d if f ic u lt job. We cannot,
rest on our oars«, We cannot assume that our job, or your job , i s ever
done.
I want to pay a sincere trib u te to the Advertising Council which
has so well served the Savings Bonds program. The creative planning and
the technical s k i l l s which have been brought to th is program by the
eight leading ad vertisin g agencies which serve as your task -force are
performing an important function in the development of Defense Bond
advertising. During the l a s t ten y e a rs, public service ad v ertisin g , under
your leadership and guidance has performed many m iracles of persuasion*
It has sold many worth-while id eas; i t has delivered impressive r e s u lts ;
it has done an important job fo r the public w elfare. But as I have sa id
your job is never fin ish ed *
I personally, ferven tly hope fo r a continuation of the frien d ly
and effective relation sh ip of the Advertising Council with the Treasury
and the bond program in the years ahead. Acting as an inseparable team,
I hope that the Treasury, with your a id , w ill be able to continue to
effectively s e l l t h r i f t to the American people*

0O 0

Septem ber 18, 1 9 5 2

In presenting a statuette of the Minute Ban of 1775 to Chairman
Howard J# Morgens of the Board of Directors of the Advertising Council,
Secretary Snyder said:
M0n the occasion of this tenth anniversary meeting ox' the Board
of Directors of the Advertising Council, I want to further document the
Treasury »s recognition of the extraordinary aid which the advertising
industry has given it#
’
’
The documentation I have for you is a symbol which has been as
basic to the Savings Bonds Program as it was to the American Revolution —
this figure of Concord* s Minute Man#
”
1 do not present this statuette to the Council, Mr# Chairman,
simply as a token of appreciation. It is much more than that# It is a
tribute and a record. It is a sign that business and Government will
work together without stint for the common good. It is today, as it was
in 1775$ an emblem of Americanism in action.
’
’
May I read the inscriptions
i

?’
To America's Advertising Industry, through The Advertising Council’
,
Incorporated, on its tenth anniversary of distinguished volunteer leader­
ship and patriotic service to its oldest and largest campaign, the
United States Savings Bonds Program —
’
for 4692,000,000 of donated space and time in daily and weekly
newspapers, general magazines, network and local radio and television,
farm magazines, business publications, and outdoor and transit advertising;
*for the cooperation of national and local advertisers; and for
the invaluable creative assistance of
*Albert Frank-Guenther Law, Inc.
G. M. Basford Company
Batten, Barton, Durstine &
03borne, Inc.
Benton & Bowles, Inc.
Campbell-Swald Company, Inc.
Dancer-Fitzger*ald~ Sample, Inc.
Srwin, Wasey & Co., Inc#
Foote, Cone & Belding

Grey Advertising Agency,
Inc.
Lester Harrison, Inc#
The Joseph Katz Company
Kuthrauff & Ryan, Inc*
Schwab & Beatty, Inc*
Schwimmer &. Scott, Inc#
J. Walter Thompson Company
Young & Rubicam, Inc#,tt

a
Assistant CkxaBlisionWi which will hereafter carry on a dsy**to-day check
on the conduct of employees and watch all ether operations of the Kevonts
dorr loo as well*

\

*

The activities of the Inspect! <m Service may serve to prevent recur»
rence in the future of tfrose i m f o r t A t e incidents in the past where mn
in authority in the Bureau have failed to measure up to their response
bill ties.

It is regrettably true that in the busy «toys of the ear such

human failures occurred, but when they were discovered the guilty weie
quickly dismissed and punished*

In this connection, the Bureau sad the

Treasury have always cooperated fully with Committees of Congress invest!*
gating into affairs of the Revenue Service*
Tightened supervision of the conduct of employees through the Shapes*
tlon service is but a part of the over-all improvement in operations
resulting from shorter lines of authority between Washington and the
field offices*
But the Installation of the last District Comcdasionar will not ho
a final step in completion of the Secretary*» program of improvement*
Instead, constant improvement can be expected through the years,
as further new and improved methods of doing business are developed and
the Hsvsmaa Service continues to expand in response to the demands of a
growing nation*
* * * * *
see

m
* Hr* Plming m thè n m Distriot Corami©si oner for instata K««r York
la startlng a new Job| one which

w m

oreatad by Seorganiset ion*

Ha

w ill bave d irect supervisión ovar three Directora of Internai Bevenu®
«hoe® ofiloes « i U be la Buffalo» Syracuse and Albany# Ho» in tura,
will he direotly responsable to th© Comisa toner of Internai R m m m in
f&ahington for thè premer adrainistration of those offices#
Sino® thè Dlreotcrs of Internai Reverme are replacing thè Colleotow
of Internai ilsvenue» whose Jobs bave been oboli shed» it is thè Director«
wtth whom thè |»stayer is chiefly oonoemed*
V n # toxp^rer, in fact* will do virfcually a U of his business with
thè office of his locai Director of Internai Revsnue» sinoe in eaoh
office will be ineoiporated not only thè funeti on of tox oollectioa,
but thè work desio prsvioualy by Internai Bsvenue Agente» Special Agent®,
Alcohol and Tobacco fax División investigatore and others#
5In faci, about 90 per cent of ©mployess of thè Bureau of Internai
Bevami© will woxk in offices of thè Directora of Internai Scremi©
throughout thè country#
/
1b
gatheriag into one place all of thè different Jobs perfora»! by
4ie Hevenue Service» thè Bureau has tried tc laake ih e taxpayer1* Job
a little aasier*

It has aleo guamnteed thè taxp^rer that he will loso

none of thè serviaes he reoaived under thè fbimer System*

thè moderni*©*

servio«» in faot» will make it silfio r than befere for thè taxpayer to
reaoh a solution of some of his p róblame#
' a s pari of thè reorgsnisation of thè Bureau» thè re has been established an independent Ihspootion Soiwioe, under thè direction of a»

f

"

District Comisaioner Fleraiag and his assistants who arc being

sworn in hare today were chosen through Civil Service processes, Just
as were the m m installed in the Districts previously reorganised.
And ell future appointments will bo made In the sane manner.
»*
In making merit the sole basis for tbs selection and advancement
of Revenue Service personnel, Reorganisation is giving the nation acre
efficient administration of the tax laws by m m and women of the highest
integrity»
it

_

■

While officials of tbs Treasury «id the Bureau of Internal Revenue

have bent ovary effort in the past six years totsard giving the taxpayer
a more efficient end more economical Bavmue service, the most important
thing — from the taxpayer1s viewpoint — will be the oac»atop service
now available to him»
it

Until Reorganisation, the taxpayer, especially if he happened to

be a bminmmmtoi often had to deal with half a dosen Revenue offices
before settling his tax problems*

Sometimes, as in th© case of residents

of Albany and Syracuse, the business man had to go to another oity for
assistance#

Before today, for Instance, taxpayers in Albany and %raoua9

had to oemo to the office of the Revenue Agent in Charge here in Buffalo,
if the incomes involved were $8,000 or more.

Hereafter, whatever his

difficulty, whatever the type of tax involved, the taxpayer in Syracuse,
or Albany, or Buffalo, will get all the help he needs rl$it at home*
Bvary taxpayer should be able to have all of his contacts with the
Bureau of Internal Revenue without going outside his own collection
district*

CO

5 •*

i t mads available morqlim>iitigators for the f t # t on tax dodgers
and perpetrators of teas frauds#
As on© resu lt o f th is greeter pressure m ta s ch ise lle r s
the T m a n y i s I f 52 has coHosted #800 sd llio n d ollars more in
unpaid lasses and additional assessments than It did in I f 16* 3& the
f is c a l year ended le s t Jan© 30* the Intelligence Unit investigated
3*855 eases$ recommended prosecution o f 1*281* case©! and obtained 563

convictions and pleas o f nolo contendere*

;v

'th is drive m tax evaders recognises that the am ra$$m arlGm
taxpayer readily r e sts h is obligations to the G arm nrai fbHy and on
tin s and ©greets every effo rt to be made to collect from those she
would attempt to escape th eir tax resp o n sib ilities*
** 0m o f the goals of Reorganisation has bean the creation o f a
career service in ah l& ab ility * integrity and devotion to doty sh all

have th eir Just rewards in promotion and increased remuneration*
f(e lo q u e n tly * «hen December 1 r o lls around and a l l o f the
Revenue D istric ts sh all have been reorganised* only the Casmissioner
o f Internal Revenue himself sh all remain an appointee of the President!
by and with bsnsent and advice o f the Senate# AH other Jobs In
the modernized Revenue Sendee sh all have been fille d * and future
vacancies sh all be fille d , under the regulations of the C ivil Service
Commission*

I* 1{ «

11But ssodomisaticm. o f mw organisation nearly one butórod years old
eotòd not be acxoai&ished overnight* I t ìms taken a 1 st o f planning «id
mmh mtrnfrxl petiJx&xmxj study before Reorganisation eould M a g es imm
today*
m ás the task so d iffic u lt « mi the aeeosaitgr fo r doing the
d a ily

f l > otóle m klBi plans I f e r ü s i w i w r ^ dolag tn slaeiis* ffoe

fOsBWixtao Service iM so t 3UU$ a mœiiaf&cturlng; plant* I t could not shot
"¿tm fo r a few seeks *tiilc the old filter? was tossed out ató a asir one
ìà it l a »

place» The

had to be m à without stepping operations

for a single dip#
*|É | ®ven during th ose six years o f advance pleasing and the- istroáactifl8
o f tmt methods* the Bureau's Job kept getting bigger and bigger as a
re su lt o f the bacines» boom that tblleeied the e ar* Bets»»«« 19W «ad ifff
there- bft#1 been a r ise of 25 p sr cant in the msaber o f iaoerae tax sotim s
file d M b year ami an expansion of 1*7 per sent in the ms&ar o f
corporate tak returns th at the Buneaa has to bissile each year* But
there has been no

increase in the nwsher of employee» hired

by the Bureau* • the tettò, number o f employees has arisen e®3y 2*5 per east
since 191*6*
'*As a consequence all of the es^loyoos of the Revenue Service
they bad

mots

aitò more work to do aitò the need for modernisation thus

became greater than ever*
^Jtae gradual introduction of m o d e m operations* however* helped
free M g r a^ployees fron routine tasks for other and more important job»#
Ibis redistribution of work helped in numerous ways, but particularly

»0»
!«

lÉ® City o f BuffaXo om taks particular pplde in tbe e f forte of Anthccy

T aarlello* *&tfa a maciber of the 0 lst Congreso» to obfcs&n fo r the netioo aa
Jia^arovid hevome Seri-lc»« OtSher stauncb M onde of xacrgonieatian in the 8Xst
Congrees «ere John Cavia# of Utloa and tbe la te lilXIam Serrón o f XoudonTllls,
fl iith the 0Qtnkiasion to tb * Cm trem la e t Jkxnxey o f BoocgmiMtion Han \
for 1952* a nm ara Irt reraenue ocilaotion m s laonched» Tim oid ayates* wMé

faad ntarly

brokeri

dom during

ti» «s*r# had baen

built vp So a bodge-podge JfcÉjf

atitio& sim a 1862 «heo the íir e t CatóLesioner of Interne! Ü H W

«a s appointed,

^hat i® noir being doro through »M epnittl&oit i s to- give the Beveaie Serslct
t*feritieth*eeritmy to áis with «&deh to do i t s twentietb-KH&sttiry Job»

<:— -the mmm&

tWÈâmü wûX enoagfrm Bat t ï * «ætwsord&iary émanég

ihrust upon tm Bureau of XrÆexnal Avenue during tb» m r quickly revealed the
need for modernisation*
Ü ttle could be don« thon, lK W »r, beoause neither » p w r nor vmWxm
,_

,A

could b© apared fre » the higipr job of sinaing the «a rt Àlthoogh ftbe probhe
had to be pat temporarily «aide» i f m b ndt forge tten mx% ¿»©cretary fîbyder»a
p o s tie r plans fo r modernisâtion found rntînaiasM s ehasapims fraa headquartexi
la Washington to the gras» roots o ffice s o f the Service throughout the countay.
IL

If «

fra a the «Eployées theasaelvea, in faot# tbat msny o f the acceptable

suggestion» cane fe r improvliig the %vem© Servies* Bollowing the estabUshaat
by the îreaaury Bepartoeiât in X947 o f Ite ecm&dttee en

aor© the» 14^000

idea© «are aobadttaà by men and eæ&en eorklng fo r the Treasury* Ànd more tbu
2#0QÛ «er© adopted reaulting in a aaviag of aore tban h alf a m illion dollar»
a year in operating Costa*
Kany oiber fim rmammnüe&ïœm mrû siiggeetione omm £vm Wm to Use fffl
the Qmgmm mû partioularly frota tha Coaaitteee d irectly ocncemad «ith tle
a ffa ir a of the bureau o f Internai

Of tha utzaost importance to tbs

musôaaaful réorganisation of the 1 m m Ser^dc© m a t l * «uthority granted by
C«ngreea in the early planning day» to bir® tha servie«» of an indépendant fl»
o f management origineera to study the ptotilm and

rseommendatlons* w y $

ehich m re embodiad in reor^n iaaticn *
|

Ch behalf of the freasuiy X sen t to ackrowledgB the fin e «apport givei

&©organiaatlan by Senator h*hsm and by me&bere of the iïm Xork State dfeeüagatiaJ
to Congres»* «orne o f «ho% X m ÿ M to se© aaaong yoa today to v&tnees t&s
introduction of the ooderoised service Into th i» d is tr ic t*

f*

,Tnr^n
t bff

^ m lrpf

anfwfm» CTl tm lì r ^ fi of

The in/staUjation bere tciday of e D lstrio t Co^Elssimesp of

Internai » t a n a * fo r upetat* I » Xorfc i s o f s p o e ti I*Uaw » to
A

« s « nativa

:.ew Xortcer «tose taìrthplaoe « sa Cfcwnda«» Coartar,
" i Som» tbat tte tw psgw e in tSrta nawiy-creatad d ia ta ie t, «fateh «sbracea
tea fom er Fawrteenth, SW RtaH^nt and TwmtjisEigfatti CollacUon D ietriete, «SU
ftnd th eir nca^at.iaad Hawiua 3«r»So* saach «ore yp»to«date and efficier t t i»
-I
thè ouetoereooMi System véitch i s being r*jpa«c«W
,lHeorgaidaation o f thè Bureau o f Internai arvataa» bas ìmm aotivaly under
w

fo r m m to si a i * mm®m fo llw in g fin a l C aigro aataal approvai of Bewpoki

?lm $«*# X for 1952 m March 1%

But thè hardest pax* of thè

o£ aodeRiiaiUaj

has tem i going on fo r isore th a» else ym am *

" Mm% Seeretasy Bendar bacale bMd o f t i» Irmmxe^ Bepartaasnt in 19# 1»
kaear that thè extriK3rdÌnary dteands o f thè « r yea«» ^

xw teted asny i®ak spoìij

in thè old mzm of doing business and he iw ed lately teck th» £ U *t «top® tcraard
modsmiaing operatilo* of th» Bevesus Servi**«
" ni® installatioEi o f A# 1» £ M & g as B trtrto * Geeedeeteeer bere today ad
thè e srlie r in®mMt%nm in CMnsgo* % r

City and Baltisaore —* as m tt a*

thè xecrganisatijn reeentiy o f l&ashingtcn kNtetyMrUMi —* aro thè euii&ìn&tlfl»
o f thom six ye&rs of work*
'vC o n c e tto o f t i » reiam es of thè Sfottaci Btatee has becca» thè biggssfc
teaaimm in th» w&U m à 1% waa orOy fa ir thafc thè mm and troaen sfco jfc thè
work should hai» th * beat to o l* se oould glv® thea#
'’ u n ta e » te sim i» o f tte 3*oo»d W«*M t e r , thè flOd « M B mthodB of

RELEASE 10:30 A.M., EDT
Monday, September 22, 1952

S- 3 / 7 /

Buffalo, N. I., September 22 - Under Secretary of the
Treasury Edward

Eoley said today* in .discussing A Modern­

ized Revenue Service” at ceremonies here for the installation
of officials for the reorganized Internal Revenue Service for
the Upstate New York Districts

RELEASE 10:30 A.M., EDT
Monday, September 22, 1952

S-3171

Buffalo, N* Y ., September 22 - Under Secretary of the Treasury

Edward H. Foley said today, in discussing "A Modernized Revenue Service”

at ceremonies here-for the in stallatio n o f o ffic ia ls for the reorganized
Internal Revenue Service for the Upstate New York D istrict:

,!The in stallatio n here today of a D istrict Commissioner of Internal
Revenue for upstate New York is of special in terest to me as a native
New Yorker whose birthplace was Onondaga County.
"I know that the taxpayers in th is newly-created d istr ic t, which
embraces the former Fourteenth, Twenty-First and Twenty-Eighth Collection
D istricts, w ill find their reorganized Revenue Service much more up-todate and effic ie n t than the cumbersome system which is being replaced.
"Reorganization of the Bureau of Internal Revenue has been
actively under way for more than six months following fin a l Congressional
approval of Reorganization Plan No. 1 for 195>2 on March 13* But the
hardest part of the job of modernization has been going on for more than
six years*
"When Secretary Snyder became head of the Treasury Department in
191*6 he knew that the extraordinary demands of the war years had revealed
many weak spots in the old ways of doing business and he immediately
took the f ir s t steps toward modernizing operations of the Revenue Service.
"The in stallatio n of A. W. Fleming as D istric t Commissioner here
today and the earlier in stallatio n s in Chicago, New York City and
Baltimore — as well as the reorganization recently of Washington head«*
quarters — are the culmination of those six years of work*
"Collection of the revenues of the United States has become the
biggest business in the world and i t was only fa ir that the men and
women who do the work should have the best tools we could give them.
"Until the beginning of the Second World War, the old business
methods of the Revenue Service worked well enough. But the extraordinary
demands thrust upon the Bureau of Internal Revenue during the war
quickly revealed the need for modernization.
"L ittle could be done then, however, because neither manpower nor
machines could be spared from the bigger job of winning the war. Although

1 wQ Qv

-

2

-

the problem had to be put temporarily aside, it was not forgotten and
Secretary Snyder*s post-war plans for modernization found enthusiastic
champions from headquarters in Washington to the grass roots offices
of the Service throughout the country»
“It was from the employees themselves, in fact, that many of the
acceptable suggestions came for improving the Revenue Service. Following
the establishment by the Treasury Department In 19^7 of its committee on
awards, more than lli,COO ideas were submitted by men and women working
for the Treasury. And more than 2,000 were adopted resulting in a
saving of more than half a million dollars a year in operating costs*
“
Many other fine recommendations and suggestions came from time to
time from the Congress and particularly from the Committees directly
concerned with the affairs of the Bureau of Internal Revenue. Of the
utmost imoortance to the successful reorganization of the Revenue
Service was the authority granted by Congress in the early planning days
to hire the services of an independent firm of management engineers to
study the problem and make recommendations, many of which were embodied
in reorganization.
“
On behalf of the Treasury I want to acknowledge the fine support
given Reorganization by Senator Lehman and by members of the New York
State delegation to Congress, some of whom, I am glad to see among you
today to witness the introduction of the modernized service into this
district#
“
The City of Buffalo can take particular pride in the efforts of
Anthony Tauriello, when a member of the 8lst Congress, to obtain for the
nation an improved Revenue Service. Other staunch friends of reorgani­
zation in the Slst Congress were John Davies of Utica and the late
William Byron of Loudonville*
“
With the submission to the Congress last January of Reorganization
Plan No. 1 for 1952, a new era in revenue collection was launched* The
old system, which had nearly broken down during the war, had been built
up in a hodge-podge fashion since 1862 when the first Commissioner of
Interna]. Revenue was appointed. What is now being done through reorgani­
zation is to give the Revenue Service twentieth-century tools with which
to do its twentieth-century job.
“
But modernization of any organization nearly one hundred years old
could not be accomplished overnight. It has taken a lot of planning
and much careful preliminary study before Reorganization could bring us
here today»
“
What made the task so difficult was the necessity for doing the
daily job while making plans for the new way of doing business. The
Revenue Service is not like a manufacturing plant, It could not* shut

- 3 down for a few weeks while the old system was tossed out and a new one
put in its place* The changes had to be made without stopping operations
for a single day.
"And even during those six years of advance planning and the intro­
duction of new methods., the Bureaufs job kept getting bigger and bigger
as a result of the business boom that followed the war. Between 19U6
and 19^2 there has been a rise of 2 5 percent in the number of income tax
returns filed each year and an expansion of U7 percent in the number of
corporate tax returns that the Bureau has to handle each year. But
there has been no comparable increase in the number of employees hired
by the Bureau,; The total number of employees has risen only 2.5 percent
since 19U6.
uAs a consequence all of the employees of the Revenue Service found
they had more and more work to do and the need for modernization thus
became greater than ever.
«The gradual introduction of modern operations* however, helped
free many employees from routine tasks for other and more important jobs.
This redistribution of work helped in numerous ways, but particularly
it made available more investigators for the fight on tax dodgers and
perpetrators of tax frauds.
«As one result of this greater pressure on tax chisellers the
Treasury in 1952 has collected $800 million dollars more in unpaid taxes
and•additional assessments than it did in 19U6. In the fiscal year ended
last June 30, the Intelligence Unit investigated 3,85$ cases; recommended
prosecution of l,28lj. cases; and obtained 56 3 convictions and pleas of
nolo contendere.
«This drive on tax evaders recognizes that the average American
taxpayer readily meets his obligations to the Government fully and on
time and expects every effort to be made to collect from those who would
attempt to escape their tax responsibilities.
«One of the goals of Reorganization has been the creation of a
career service in which ability, integrity and devotion to duty shall
have their just rewards in promotion and increased remuneration.
«Consequently, when December 1 rolls around and all of the Revenue
Districts shall have been reorganized, only the Commissioner of Internal
Revenue himself shall remain an appointee of the President, by and with
consent and advice of the Senate. All other jobs in the modernized
Revenue Service shall have been filled, and future vacancies shall be
filled, under the regulations of the Civil Service Commission.

201
-hu D i s t r i c t C o m m issio n e r F le m in g a n d h i s a s s i s t a n t s who a r e b e i n g
sworn i n h e r e t o d a y w e re c h o s e n t h r o u g h C i v i l S e r v i c e p r o c e s s e s , j u s t
a s w ere th e men i n s t a l l e d i n t h e D i s t r i c t s p r e v i o u s l y r e o r g a n i z e d #
And
a l l f u t u r e a p p o in t m e n t s w i l l b e .made i n t h e sam e m an n er»
“ I n m ak in g m e r i t t h e s o l e b a s i s f o r t h e s e l e c t i o n a n d a d v a n c e m e n t
o f R evenue S e r v i c e p e r s o n n e l , R e o r g a n i z a t i o n i s g i v i n g t h e n a t i o n m ore
e f f i c i e n t a d m i n i s t r a t i o n o f t h e t a x la w s b y men a n d women o f t h e h i g h e s t
in te g r ity #
“ W hile o f f i c i a l s o f t h e T r e a s u r y a n d t h e B u r e a u o f I n t e r n a l R ev en u e
have b e n t e v e r y e f f o r t i n th e p a s t s i x y e a r s to w a r d g i v i n g t h e t a x p a y e r
a more e f f i c i e n t a n d m ore e c o n o m ic a l R ev en u e s e r v i c e , t h e m o st im p o r t a n t
th in g — fro m t h e t a x p a y e r ’ s v i e w p o in t — w i l l b e t h e o n e - s t e p s e r v i c e
now a v a i l a b l e t o him *
“ U n t i l R e o r g a n i z a t i o n , t h e t a x p a y e r , e s p e c i a l l y i f he h a p p e n e d t o
be a b u s in e s s m a n , o f t e n h a d t o d e a l w it h h a l f a d o z e n R ev en u e o f f i c e s
b e fo r e s e t t l i n g h i s t a x p r o b le m s #
S o m e t im e s , a s i n t h e c a s e o f r e s i d e n t s
o f A lb an y an d S y r a c u s e , t h e b u s i n e s s man h a d t o go t o a n o t h e r c i t y f o r
a ss ista n c e #
B e f o r e t o d a y , f o r i n s t a n c e , t a x p a y e r s i n A lb a n y a n d S y r a c u s e ,
had t o come t o th e o f f i c e o f t h e R ev en u e A g e n t i n C h a rg e h e r e i n B u f f a l o ,
i f th e in c o m e s i n v o l v e d w ere $ 8 ,0 0 0 o r m ore#
H e r e a f t e r , w h a te v e r h i s
d i f f i c u l t y , w h ate v e r th e ty p e o f t a x in v o lv e d , th e t a x p a y e r in S y r a c u s e ,
or A lb a n y , o r B u f f a l o , w i l l g e t a l l t h e h e lp he n e e d s r i g h t a t home#
E very t a x p a y e r s h o u ld b e a b l e t o h a v e a l l o f h i s c o n t a c t s w it h t h e
B u reau o f I n t e r n a l R ev en u e w i t h o u t g o in g o u t s i d e h i s own c o l l e c t i o n
d is tr ic t#
“ Mr# F le m in g a s t h e new D i s t r i c t C o m m issio n e r f o r u p s t a t e New Y o rk
i s s t a r t i n g a new j o b ; o n e w h ic h w as c i ‘e a t e d b y R e o r g a n i z a t i o n 3 He
w il.l h ave d i r e c t s u p e r v i s i o n o v e r t h r e e D i r e c t o r s o f I n t e r n a l R ev en u e
whose o f f i c e s w i l l b e i n B u f f a l o , S y r a c u s e a n d A lb an y #
H e, in t u r n ,
w i l l b e d i r e c t l y r e s p o n s i b l e t o t h e C o m m issio n e r o f I n t e r n a l R ev en u e i n
W ashington f o r t h e p r o p e r a d m i n i s t r a t i o n o f t h o s e o f f i c e s #
“ S i n c e th e D i r e c t o r s o f I n t e r n a l R ev en u e a r e r e p l a c i n g t h e C o l l e c t o r s
o f I n t e r n a l R e v e n u e , w h ose j o b s h a v e b e e n a b o l i s h e d , i t i s t h e D i r e c t o r s
w ith whom th e t a x p a y e r i s c h i e f l y c o n c e r n e d #
“ The t a x p a y e r , i n f a c t , w i l l do v i r t u a l l y a l l o f h i s b u s i n e s s w it h
th e o f f i c e o f h i s l o c a l D i r e c t o r o f I n t e r n a l R e v e n u e , s i n c e i n e a c h
o f f i c e w i l l b e i n c o r p o r a t e d n o t o n ly t h e f u n c t i o n o f t a x c o l l e c t i o n ,
b u t th e w ork done p r e v i o u s l y b y I n t e r n a l R ev en u e A g e n t s , S p e c i a l A g e n t s ,
A lc o h o l an d T o b a c c o T a x D i v i s i o n i n v e s t i g a t o r s a n d o t h e r s #
“ I n f a c t , a b o u t 9 0 p e r c e n t o f e m p lo y e e s o f t h e B u r e a u o f I n t e r n a l
Revenue w i l l w ork i n o f f i c e s o f t h e D i r e c t o r s o f I n t e r n a l R ev en u e
th ro u g h o u t t h e c o u n tr y #

- 5"By gath erin g in to one p la c e a l l o f the d if f e r e n t jo b s perform ed by
the Revenue S e r v ic e , the Bureau has t r i e d to make the t a x p a y e r 's jo b
a l i t t l e easier® I t has a ls o gu aran teed the taxp ay er th a t he w i l l lo s e
none o f the s e r v ic e s he re c e iv e d under the form er system « The modernized
se rv ic e , in f a c t , w i l l make i t sim p ler than b e fo re f o r the taxp ay er to
reach a so lu tio n o f some o f h is problem s*
"As p a r t o f the re o rg a n iz a tio n o f the Bureau, th ere has been e sta b ­
lish e d an independent In sp e c tio n S e r v ic e , under the d ir e c tio n o f an
A ssista n t Commissioner, which w ill h e r e a fte r c a r r y on a d ay -to-d ay check
on the conduct o f employees and watch a l l oth er o p e ratio n s' o f the Revenue
Service as w ell«
"The a c t i v i t i e s o f the In sp e c tio n S e rv ic e may se rv e to p reven t
recurrence in the fu tu re o f th o se u n fo rtu n ate in c id e n ts in the p a s t where
men in a u th o rity in the Bureau have f a i l e d to measure up to t h e ir re sp o n si­
b ilitie s® I t i s r e g r e t t a b ly tru e th a t in the busy days o f the war such
human f a i l u r e s o ccu rred , but when they were d isco v e re d the g u il t y were
quickly d ism issed and punished® In t h i s co n n ectio n , the Bureau and the
Treasury have alw ays co o p erated f u l l y w ith Committees o f Congress in v e s t i ­
gating in to a f f a i r s o f the Revenue Service®
"Tightened su p e rv isio n o f the conduct o f employees through the
Inspection S e rv ic e i s bu t a p a r t o f the o v e r - a ll improvement in o p e ratio n s
re su ltin g from sh o rte r l i n e s o f a u th o r ity between Washington and the f i e l d
offices®
"But the i n s t a l l a t i o n o f the l a s t D i s t r i c t Commissioner w il l not
be a f i n a l ste p in com pletion o f the S e c r e t a r y 's program o f improvement®
"In ste a d , c o n stan t improvement can be exp ected through the y e a r s ,
as fu rth er new and improved methods o f doing b u sin e ss a r e developed and
the Revenue S e rv ic e co n tin u es to expand in resp o n se to the demands o f a
growing nation®"

0O 0

Cp c

w -ji"’
*

’

R SD SA SI MORHIHG H M SPA FERS,
T u e s d a y * S e p te m b e r 23* 1952.

The S e c r e t a r y o f t h e T r e a s u r y
$ 1 * 200 * 000 ,

000 * o r t h e r e a b o u t s * o f

t o m a tu r e D ecem ber 2 6 * 1 9 5 2 * w h ic h
F e d e r a l R e s e r v e B a n k s o n S e p te m b e r 2 2 *
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s !
T o t a l applied for T o ta l a c c e p te d
-

12,109*01*9*000

A v e rag e p r i c e

99*5 8 2 /

Range

s

-

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

( i n c l u d e s $ 2 3 1 ,0 7 8 * 0 0 0 e n t e r e d on a

E q u iv a le n t

non-competitive basis and accepted in
full at the average price shown below)
rate of d i s c o u n t approx* 1.635$ per

o f a c c e p te d c o m p e titiv e b id e s

H ig h

Low

-

99*605

- 99.579

E q u iv a le n t r a t e o f d is c o u n t a p p ro x *

«

h

n

it

tt

1*5U6$ per

1.61*7$ *

(89 percent of the amount bid fo r a t the low price was accepted)
F e d e r a l R e se rv e
D istr ic t

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

B o sto n
Hew Y o rk
P h ila d e lp h ia
C le v e la n d
R ichm ond
A tla n ta
C h ic a g o
S t * L o u is
M in n e a p o lis
K an sas C ity
D a lla s
San F r a n c isc o

|

314, 160,000
1 , 101 , 653,000
35 , 720,000

T o ta l
A c c e p te d
|

20,085,000
680.053.0 0 0
1 9 ,7 U *,000
1*8 , 202,000
16,1*1*7,000
19,291*,000
H O *, 6U , 000
20.591.000
11 , 1*00,000
69.109.000
37.105.000
113.865.000

*

1 , 200 , 506,000

1 *8 ,6 1 2 ,0 0 0
2 1 ,9 1 *7 ,0 0 0
29 , 781* , 000
221* , 901, 000
29 , 368,000
12 , 100,000
? U , 691»,000
1* 1 , 035,000
1 1 *5 ,0 7 5 ,0 0 0
TOTAL

j

' / J 1

1 2 ,1 0 9 ,0 1 * 9 ,0 0 0

"

treasury

department

Information Service

WASHINGTON, D .C .

204
PLEASE MORNING NEWSPAPERS,
luesday, September 23, 1952

9: - 3 1 7 $

The S e c r e t a r y o f the T r e a s u r y announced l a s t e v e n in g t h a t th e
lenders f o r $ 1 , 2 0 0 , COO,0 0 0 , o r t h e r e a b o u t s , o f 92 -d a y T r e a s u r y b i l l s
(tote dated Septem ber 25 and t o m ature December 2 6 , 1 952, which were
¡offered on .Septem ber 18, were opened a t th e F e d e r a l R e s e r v e Banks on
September 22 .
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T o tal a p p l i e d f o r - $ 2 ,1 0 9 ,0 4 9 > 0 0 0
- 1 , 2 0 0 , 50 6,00 0 ( i n c l u d e s $2 3 1 , 078,0 00
T otal a c c e p t e d
e n t e r e d on a n o n **c o m p e titiv e
b a s i s and a c c e p t e d i n f u l l
a t th e a v e r a g e p r i c e shown
below )
- 9 9 .5 8 2 / E q u iv a le n t r a t e o f d isc o u n t ap p ro x.
Average p r i c e
1 . 635$ p u r annum
Range o f a c c e p t e d c o m p e t i t i v e b i d s
High

- 9 9 *6 0 5 E q u i v a l e n t r a t e
1 .5 4 6 $
“ 9 9 .5 7 9 E q u i v a l e n t r a t e
1 .6 4 7 $

Low

o f d isc o u n t ap prox.
p o r annum
o f d isc o u n t ap prox.
PQr annum

I89 percent o f the amount b i d f o r a t th e low p r i c e was a c c e p te d .)
T o tal
A p p lie d f o r

le d e ra i R e s e r v e

Ifs tric t

¡Boston
Bw York
Philadelphia
Be ve land
lichmond
Stianta
Ihicago ■
ft . LouisJnneapolis
Kansas Ci tv
»lias
I0'11 Francisco

$

3 4 , 1 6 0 ,0 0 0
,4 1 1 ,6 5 3 , 0 0 0
3 5 .7 2 0 .0 0 0
4 8 .6 1 2 .0 0 0
2 1 .9 4 7 .0 0 0
2 9 .7 8 4 .0 0 0
2 2 4 ,9 0 1 ,0 0 0
2 9 .3 6 8 . 0 0 0
12 100,000
7 4 ,6 9 4 , 0 0 0

__ 145,075,000

2 0 ,0 8 5 ,0 0 0
6 8 0 . 0 5 7 .0 0 0
1 9 ,7-44,000
4 8 .2 0 2 .0 0 0
1 6 . 4 4 7.0 0 0
1 9 . 29 4 .0 0 0
1 4 4 .6 1 1 .0 0 0
2 0 .5 9 1 . 0 0 0
1 1 .4 0 0 .0 0 0
6 9 . 10 9 .0 0 0
3 7 . 10 5 .0 0 0
___ 1 1 3 , 6 6 5 , 0 0 0 .

$ 2 ,1 0 9 , 0 4 9 , 0 0 0

$ 1 , 20 0 , 50 6,00 0

1

,

4 1 , 0 3 5 *, 0 0 0

TOTAL

T o tal
_______ A c c e p t ed
$

/■
'■
.

*-

... . ..■’ 1 ;;
-

41

-

system over a system based on
democratic principles and
individual freedom?
The continued soundness of
our economy is a crushing defeat
for the communist leaders.

It is

also the ultimate Hope of all of
the free nations and of the
millions of freedom-loving people
behind the Iron Curtain.

To

continue this sound economy is
our challenge.

One of the

K

-

n QJiS
•vJiU

collapse of

c s t r t f i ffe

to their reckoning* our way at
doing things should by now have
started our system to crumble.
How can they explain our
continued and growing prosperity
to the Millions of iiapoverished
people behind the Iron Curtain?
how long can they rati anali m
their miscalculations to
convince these mi 11ions of the
supe riority of a brutal tyranni

efficienoy
in Sovernment operations, although
we n t

necessarily list#

increased outlays for national
%r

defense.

And, underlying the
>

productivenose of agriculture,
industry and c o « m r e i , there

hrouoh cunt t

this sträng ocanoisy,
cantinue
ir tíS th

rtfi'yfrsi tho uuoporatio

-%

M
L JL
«= 1
>m

sautors of t-' 3 aconoray.
must bü car*

3u i

rsvenu®

and oxpenti iture projrtfflS an thô

part uf th® Fodtrtl Sovornmant,
Tharo must ip uontinuao striving
toward groator production

oy6
ttaw io§® oonas,
'%iJiL

»

m.f
ip-jg| g$$¿¡jk
f. 'WM
'liÉf

'%#?'

and

S'

ih§

f

p i ,0 #

Stat

tod

the N a t i o n ’s
V

*m* ?■??

i li O

«P

»

f«

* in
Io1*'mill

Iiilh

JÉÉji

&I O8 É
‘« t r i a l

I

.sortit

forms

$

ins no ill tea

ifoe

w

s t o u r t

wf'

1 1 8

t i ii stcur

new and improved consumer goods
was i strong influence in our
economic advance prior to Korea.
Many other inventions, now ift
process of development * will
provide farther support to
business when a slackening in the
defense effort croates more
favorable condition» for b i w
.
premati one.
Another factor in our dynamic

flourish —

will do »ora thin

expand- the markst for consumer
goods.

It «ill erovise a

i

continuing demand for now
housing.

It will put further

strains on our already
inadequate hioh«ty system,
and on our inadequate supply Iof
?|
schools, churches, hasp«tilt,
and ayiiiciHi facilities.
Thus it will force a continuing

•

30

-

a. nt«1 tint# with § popui
about th# ® i1# of Wyap»
iii montha, | populatio

«s»

vrumic
as

Ii I

fit Hl

yur tng thy past
month® a Xony, our ciiMS#at i© mar k 1.1
for I i i

k t f i a i of ¿uaclt has been

o n l i r - j o c by t r a p i d l y
population.

insrtasing

ft is. 501119 up i t

tho r»tu of nearly a quarter
of 8 million persons f
month —

2-3/4 mi Ilian persons

s year,

This 1 § equivalent

to adding* 1 n a stuple month.

hu-ViíVísr,

that

w h ile

ths

defence

fif'èirlé has tñero »sed product ¡o
a n ■$s
#K ! ! •m T'.#»
11 ' II Sfâ‘ m$t
w

ti

r e l a t a d
iW'k áíg¡fe-

?£& íSf

pr # 8 $
f t o*'*

11

4S

#%.'il%
yt s

w h ich

d e r i v e d

i¡».

m u r u

f tutor i

p ro so ar i

§
►*£*xjj#

S %? ^

a

i¡0-Sp! §

Ip f

uf 6 1 t©fi i

salid »fttí expanding demand for
consumer good"- and services.

producing food, fiber, livestock
in quantities which were thought
impossible § decide ago.

The

level of personal income after
taxes in terms of purchasing
power is within a fraction of
the all-time peak.

Personal

savings continue high;

and the

gross national product is at a
n « *

M

in our history.

en

the world In camba'tt ii?g the
ooBimuni st threat♦

Those

res pons ib 1 1 1 1 1 &s l*i*ve been
for cea upon.u s . Mra had no
cha ico . ^ìf h i i to rise to
fits t the«.

Today w s «ir 0

pr oii uc ifig military tquipraent
for our forces in Korea, for
our• torcos at home , and for
S 1 c1 to our allies.

If# AT É

pravi ding further military

QL)

it i| basic to the success of
the defense program, which we
must continue so long as Soviet
communism remain® a threat to
the fret world.
It i« through no desire on .
our part that we are maintaining
i costly defense program.

It

it through no desire on our part
that we will have spent 1130 billion
for defense and national security

P

to provide t!* country with
a strong btrsking system which
«ill give itr.fiigth to the

ntir® economy

S

of our financial system i§
basso to the smooth functioning

the economy

of all sector

It is basic to th© financial
and economic policies of the
cour

It

is

il

to public

confidence in the Government.

\

r1s«r vis , ara

to s izo of transact ion® we pay
wy©ii wore attention now to the
flow of oath in and out of the
Treasury than «as the ease in
the past.

I need not go into

detail on this matter with you
except to.mention that such
important changes in the
Treasury’s relationship with
the banks as the tunneling of
tax receipts directly into

Il

% |th t w cash balsno© running
irom

$4 to $10 billion, and

with weekly natyri t ies of ®
billion dollars or mar® of
Treasury bills, and Quarterly
maturities of certificates of

indebtean

and notes that

gometime® roach
wb

10 billion,

have had to create and

develop now procedures.

My

opinion i s that in proport ic

iKlIÉMi

predecessors of snare than a
century ago were so much
concerned.
On© would think, however,
that after more than i
century’s activity, procedures
would have been worked out to
asifit completely the needs of
the Treasury and the banking
system.

But with Federal

receipts in excess of $60 bill»

II

of stupendous magnitude -- a
billion pennies« nickels and dimes
|

I

and 2 billion pieces of paper
currency are issued annually to
replace money which has become
worn out or mutilated.

It is clear

that one of the real problems
has, therefore, been to develop
|

procedures of a character which would
permit those in the banking world

adapted itself year after year to
the changes that have occurred in,
the Awerioin seen®.
§| are in | changing world
with a multitude of problems for
cusiness and hanking which three

or four decades ago war#, loss
impart ant because of the ir »«sailer
magnitude.

The Treasury, for

example, now i»sues more than
250 Billion checks every year.

| 1)|
oar pattern ofs
doing things,
5H|Y
I'

".I

|i|ia %s it ia upon personal
incentive and local initiative;
and that we want to keep* it
that way.
-;

But a tU‘ -

banking

system such as we have in
this country can be useful
to the people of the country
only / i t £ w.e,/ar• able to
:;
/V'/ ./
adapt:
it to the needs of our
r
W
'
jT'-m /

:•:_v::

H # r o

country wo havö 15,000 b
Tfpi ¿re mostly
ownep and operatoci.
under the etipervi si on
variety of agtneia®.

ä ÄJ #€
Ä |
ff,9fW. f# W

ircums

Ä -1tm
C{
■

c$s undör

aast y^t-r|te .
t0

IS;g

ÉO

M I’'

’

|

mm 11

«ft

1 hiivo, as you know, just
returned from a meeting of the
. internatii.onal Bank and the
I
International Monetary Fund in Maxic
C ity,

In attendance at that

«eating

were financial repretentatives of 51
the leading countries ©f the world sien with the responsibility for the
administration of the financial
systems of hundreds of millions of
people.

1 have net with most of

these woin a great many times during

If

IS

r|

1

$i pleasure

to m m t with your group today.

have \ iffi a-dvsnt

you ;Cnew, I

§
1

Hm if ym

m»ot»rs§ »1
:jT

%#«

¿1*§ m |p

d iscuss 1
■¿Si #5

tan>& of views

w r% w *

is important to the w
t *£

ortumy aria

1.

bank i

or

The follow ing address by Secretary Snyder before
51 st annual convention of the N ational A ssociation of
Supervisors of S tate Banks a t fche Lord Baltim ore Hotel
B altim ore, Md., i s scheduled fo r d eliv ery

a t 2:10 p.m

EDT Wednesday, S e p te m b e r ^ . ^1952 r and i s, .fa r re lease
a t th a t tim e.

-5'- ß / 7 5

O fiO

¿48
TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder before
51st annual convention of the National Association of
Supervisors of State Banks at the Lord Baltimore Hotel*
Baltimore* Md,* Is scheduled for delivery at 2?10 p,m, *
EDT* Wednesday* September 2U* 195*2* and is for release
at that time.
It is a real pleasure for me to meet with your group today. As you
know* I have taken advantage of the opportunity of being with you on a
number of occasions during the 6 years that I have been Secretary of the
Treasury« I have enjoyed meeting with you and discussing our mutual
problems* because I feel that an exchange of views between us is
important to the welfare of our economy and to the banking community
as a whole,
I have* as you know* just returned from a meeting of the
International Bank and the International Monetary Fund in Mexico City,
In attendance at that meeting were financial representatives of $h of
the leading countries of the world — men with the responsibility for
the administration of the financial systems of hundreds of millions of
people, I have met with most of these men a great many times during ny
term of office as Secretary of the Treasury arid United States Governor of
the International Bank and the International Monetary Fund, I am well
acquainted with many of their problems* many of their personalities and
many of the economic and political circumstances under which they must
operate,
It was interesting to me while meeting with them in Mexico City to
realize that in the United States we have a banking system that is totally
different in its elementary concepts from the banking systems of most of
the other countries of the free world, It is different from the British
system with its eleven large clearing banks and their branches* the
Canadian system with its 10 chartered banks and 3>000 branches* the
French and Belgian systems* and the systems in Australia and in most of
Latin America* Here in this country we have 15 *000 banks. They are
mostly individually owned and operated. They are under the supervision
of a variety of agencies. They are subject to a wide variety of laws.
They have been built up over a period of time under a wide variety of
economic circumstances. No two are exactly alike, and their number and
diversity testify magnificently* it seems to me* to the strength and
effectiveness of the free enterprise system as it has developed with
respect to banking in the United States during the past 175 years. No
S-3173

one tries to claim that ours is the best system in the world« But we
can say that it is well adapted to our pattern of doing things* based
as it is upon personal incentive and loc au initiative; and that we want
to keep it that way«
But a complex banking system such as we have in this country can be
useful to the people of the country only if we are aide to adapt it to
the needs of our economy as the economy grows and changes over the years.
That is where American ingenuity has done a remarkable job. I have, as
you know, been in banking for more than 30 years« Some of you here were
in banking before mec It is clear to all of us that banking today bears
little resemblance to banking 30 or J4O years ago. It has changed and
adapted itself year after year to the changes that have occurred in the
American scene.
We are in a changing world with a multitude of problems for business
and banking which three or four decades ago were less important because
of their smaller magnitude« The Treasury, for example, now issues more
than 2^0 million checks every year. It maintains deposits in some 12,000
banks, and we make calls on those deposits sometimes as often as twice a
week. It issues millions of separate savings bonds a year through the
banks. It issues and redeems tens of billions of dollars of marketable
securities« As for currency items, the very figures are cf stupendous
magnitude -- a billion pennies, nickels and dimes and 2 billion pieces of
paper currency are issued annually to replace money which has become worn
out or mutilated; It is clear that one of the real problems has, there­
fore, been to develop procedures of a character which would permit those
in the banicing world to handle the vast volume of transactions that are
required not only by Government operations, but by business operations
that are comparable in their magnitude« A country with a $35>0 billion
gross national product requires an extraordinary financial system.
The banks, as you well know, have risen to the challenge. They have
provided leadership and imagination in all parts of the banking field to
such an extent that banking today is integrally woven into the fabric of
our growing national community. They have deve3.oped flexible lending
policies and embraced new ideas. New techniques and procedures have
marked banking during the past few years. The use of bookkeeping and
accounting machines, punch cards, photo recording devices, and the like,
have made it possible to do the job that has been required — to do it
well, economically and expeditiously.
Frequently it has been possible for those on the policy-making end
of Government operations to facilitate efficiency by adapting our pro­
cedures to the mechanics of the banking system. This is not a new
problem as far as the Treasury is concerned« More thai a century ago,

01

o

- 3 the records Indicate that the Secretary of the Treasury was trying to
handle the Government's financial affairs with one eye focused on the
necessities of the Treasury and the other on the economic welfare of the
country. It is needless to Say that today* too* we are paying close
attention to the very matters with which my predecessors of more than a
century ago were so much concerned*
One would think* however* that after more than a century's activity*
procedures would have been worked out to meet completely the needs of the
Treasury and the banking system. But with Federal receipts in excess of
$60 billion, with the cash balance running from $ 4. to $10 billion* aid
with weekly maturities of a billion dollars or more of Treasury bills, and
quarterly maturities of certificates of indebtedness and notes that some­
times reach $10 billion* we have had to create and develop new procedures.
Fy opinion is that in proportion to size of transactions we pay much more
attention now to the flow of cash in and out of the Treasury than was the
case in the past. I need not go into detail on this matter with you*
except to mention that such important changes in the Treasury's relation­
ship with the banks as the funneling of tax receipts directly into tax
and loan accounts* the use of the X account during major tax collection
dates* and the provision of new types of securities maturing at tax dates
for the investment of corporate tax reserves* are matters which have taken
place during my own term as Secretary of the Treasury.
The strong financial system that we have in this country today has
developed over the years because of the close cooperation between Govern­
ment* business* bank supervisors* and the banking industry generally.
The members of the banicing community are diverse in their operations* but
they are united in the common aim to provide the country with a strong
banking system which will give strength to the entire economy. The
strength of our financial system is basic to the smooth functioning of
all sectors of the economy* It is basic to the financial and economic
policies of the country. It is basic to public confidence in the Govern­
ment. It is basic to the success of the defense program* which we must
continue so long as Soviet communism remains a threat to the free world*
It is through no desire on our part that we are maintaining a costly
defense program. It is through no desire on our part that we will have
spent $130 billion for defense and national security by the end of the
third year after the invasion of Korea* It is through no desire on our
part that we have 3-1/2 million men in our Armed Forces* and that their
very maintenance costs the American people $12 billion a year* It is a
grave responsibility for this Nation to have become the leader of the
free nations of the world in combatting the communist threat. These
responsibilities have been forced upon us. We had no choice. We had
to rise to meet them* Today we are producing military equipment for our

o r1o

- U forces in Korea, for our forces at home, and for aid to our allies0
We are providing farther military production capacity which we hope
we will never have to use, but which we will use if the communists
should ever force us to do so« We are developing still further our
basic resources and expanding our industrial capacity« All of this
has meant heavy demands upon our economy. Nevertheless, despite
defense demands, we have managed to maintain a strong and growing
domestic ecohony« Today we have far greater industrial capacity than
ever before*. Manufacturing capacity is $0 percent greater than at the
end of World War II* Our steel capacity is up by 20 percent; electric
power capacity by £0 percent; petroleum capacity by 63 percento Our
farms are producing food, fiber, livestock in quantities which were
thought impossible a decade ago. The level of personal income alter
taxes in terms of purchasing power is within a fraction of the all-time
peak. Personal savings continue high; and the gross national product
is at a new peak in our history.
X should like to point out, however, that while the defense program
has increased production and employment in defense industries and related
lines, our country has a real prosperity at present which is derived from
more permanent factors
factors which have created a solid and expand­
ing demand for consumer goods and services.
For one thing, our prosperity is based on a broad distribution of
income which has effectively enlarged the consumer goods market-, This
mass consumption, together with increased productivity in manufacturing,
agriculture, and other fields, has raised our national standard of living
substantially above the prewar level.
Another basis for our prosperity is our rapidly growing population.
During the past 12 months a],one, our domestic market for all kinds of
goods has been enlarged by a rapidly increasing population*, It is going
up at the rate of nearly a quarter of a million persons a month — 2-3 At
million persons a year. This is equivalent to adding, in a single month,
a new state with a population of about the size of Wyoming; in six months,
a population larger than Colorado!s; in a year, a population as large as
Iowais* This strong national growth — taking place as it is in a dynamic
and productive economy, which has abundant natural resources, where free
enterprise and entrepreneural ability flourish — will do more than expand
the market for consumer goods. It will provide a continuing demand for
new housing. It will put further strains on our already inadequate high­
way system and on our inadequate supply of schools, churches, hospitals,
and municipal facilities;, Thus it will force a continuing construction
program that may well be expedited when a decline in defense production
makes materials and labor more freely available.

Oe_qw Q^

-5 Moreover4 this Nation is in the midst of a tremendous period of
new discovery and invention* The application of new discoveries and
new Industrial techniques in the production of new and improved con­
sumer goods was a strong influence in our economic advance prior to
Korea» Many other inventions * now in process of development* will pro­
vide further support to business when a slackening in the defense effort
creates more favorable conditions for new promotions.
Another factor in our dynamic economy will be the volume of demand
for consumer goods* coming as a result of the large supply of stored-up
savings. Liquid assets of individuals expanded by about 4P billion
daring 19 ?1 * reaching a total of approximately $ 2 1 0 billion at the end
of the year. It is a source of pride to the Treasury Department that
billion of this amount represents investment of individuals in
United States savings bonds* and we are deeply grateful for the assistance
and support of the Nation*s banks in furthering the savings bond program.
The present high level of personal savings forms a financial backlog
which gives a sense of security to its owners. With this security* they
can more freely spend their current income«» Such a backlog also represents
a reserve of purchasing power for future use.
These are some of the basic factors underlying the present strength
of our economy and.pointing toward a continuation of that strength for
seme time to come. But if we are to maintain and expand this strong
economy* we must continue in our united efforts towards that goal0 This
requires the cooperation of all sectors of the economy. There must be
continued sound revenue and expenditure programs on the part of the
Federal Government. There must be continued striving toward greater
production efficiency and lower costs in Government operations* although
we must necessarily make increased outlays for national defense. And*
underlying the productiveness of agriculture* industry and commerce* there
must continue to be a sound financial system.
Through continuation of our united efforts* each of us can contribute
toward helping to maintain and expand our economy* the enterprise system
and the heritage of freedom which is ours.
The continued prosperity and strength of our free enterprise system
is our strongest weapon against communism. The waiting game being played
by communist leaders is predicated on the collapse of our system.
According to their reckoning* our way of doing things should by now have
started our system to crumble. How can they explain our continued and
growing prosperity to the millions of impoverished people behind the Iron
Curtain? How long can they rationalize their miscalculations to convince
these millions of the superiority of a brutal tyrannical system over a
system based on democratic principles and individual freedom?

oL
(

- 6 The continued soundness of our econoiry is a crushing defeat for the
communist leaders*. It is also the ultimate hope of all of the free nations
and of the millions of freedom-loving people behind the Iron Curtain« To
continu« this sound economy is our challenge«, One of the important factors
in attaining this goal is the maintenance of a sound banicing system«
Therein lies a great responsibility for you gentlemen.

0O 0

- 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 1;2 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section 113 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. 1*18, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.

Copies of the circular may be obtained from any Federal

Reserve Bank or Branch.

-

2

-

ra 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 $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

, in cash or other immediately available
------;
.
funds or in a like face amount of Treasury bills maturing
October 2» 19SL
JjtJt
Cash and exchange tenders will receive equal treatment. Cash adjustm ents
O c t o b e r 2 , 19f>2

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
th e 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

XXHK
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
T h u rsd a y » S e p te m b e r

25»

3 /1 H

195>2

3Ë6E
The Secretary of the Treasury, by this public notice, invites tenders
fcr $1«200,000,000

— W

—

, or thereabouts, of

92 -day Treasury bills, for

~ m ~

cash and in exchange for Treasury bills maturing
the amount of $1,200» 257,000

October^., 1952

, to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided.
of this series will be dated

, in

The bills

October 2» 1 9 5 2 ____ , and will mature

January 2» 19f>3______, 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 , 1 5 , 0 0 0 , $ 1 0 , 0 0 0 , $ 1 0 0 ,0 0 0 , $ 500 , 000 ,

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» September 29, 1%
Tenders will not be received at the Treasury Department, Washington.
tender must be for an even multiple of

$ 1 ,0 0 0 ,

and in the case of competi­

tive tenders the price offered must be expressed on the basis of
not more than three decimals, e. g.,

9 9 .9 2 5 *

Each

100,

with

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

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

release m o r n in g n e w s p a p e r s ,

Thursday, Septem ber 2 5 .

1952.

S-317^

The S e c r e t a r y o f th e T r e a s u r y , "by t h i s p u b l ic n o t i c e , i n v i t e s
tenders f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 2 -d a y T r e a s u r y b i l l s ,
for cash and in exch an ge f o r T r e a s u r y b i l l s m a tu rin g O ctob er 2 , 1952,
in the amount o f $ 1 , 20 0 , 2 5 7 , 000, to be i s s u e d on a d is c o u n t b a s i s
under c o m p e titiv e and n o n -c o m p e titiv e b id d in g a s h e r e i n a f t e r
provided. The b i l l s o f t h i s s e r i e s w i l l be d a te d O ctob er 2 , 1952,
and w ill m ature Ja n u a r y 2 , 1 9 5 3 , 'when th e f a c e amount w i l l be
payable w ith ou t i n t e r e s t .
They w i l l be is s u e d in b e a r e r form o n ly ,
and in d en o m in atio n s o f $ 1 , 000, $ 5 , 000, $ 1 0 , 000, $10 0 , 000, $50 0 , 000,
and $1 , 000,000 ( m a t u r it y v a l u e ) .
Tenders w i l l be r e c e iv e d a t F e d e r a l R e se rv e Banks and B ra n ch e s
up to the c l o s i n g h o u r, two o 'c l o c k p .m ., E a s t e r n S ta n d a r d tim e ,
Monday, Septem ber 2 9 , 1 9 5 2 . T en d e rs w i l l n o t be r e c e iv e d a t th e
Treasury D epartm en t, W ash in g to n . Each te n d e r m ust be f o r an even
multiple o f $ 1 , 000, and in th e c a s e o f c o m p e t itiv e t e n d e r s th e
price o ffe re d m ust be e x p r e s s e d on th e b a s i s o f 10 0 , w ith n o t more
than three d e c im a ls , e . g . , 9 9 *9 2 5 * F r a c t i o n s may n o t be u s e d .
It is urged t h a t t e n d e r s be made on th e p r i n t e d fo rm s and. fo rw ard e d
in tho s p e c i a l e n v e lo p e s which w i l l be s u p p lie d by F e d e r a l R e se rv e
Banks or B ran ch es on a p p l i c a t i o n t h e r e f o r .
Others th an b a n k in g i n s t i t u t i o n s w i l l n o t be p e r m itte d to
submit te n d e rs e x c e p t f o r t h e i r own a c c o u n t. T e n d e rs w i l l be
received w ith o u t d e p o s i t from in c o r p o r a t e d ban ks and t r u s t com pan ies
and from r e s p o n s i b le and r e c o g n iz e d d e a l e r s in in v e stm e n t
se c u ritie s. T en d ers from o t h e r s m ust be accom panied, by payment o f
2 percent o f th e fa c e , amount o f T r e a s u r y b i l l s a p p l i e d f o r , u n le s s
the tenders a r e accom p an ied by an e x p r e s s g u a r a n ty o f paym ent by
an in co rp o rated bank o r t r u s t company.
Im m ediately a f t e r th e c l o s i n g h o u r, t e n d e r s w i l l be opened
at tho F e d e r a l R e se rv e Banks and B r a n c h e s, f o l l o w i n g which p u b l ic
announcement w i l l be made by th e S e c r e t a r y o f th e T r e a s u r y o f th e "
Iamount-and p r i c e ra n g e o f a c c e p te d b i d s .
Those s u b m it t in g t e n d e r s
be a d v ise d o f th e a c c e p ta n c e o r re j e c t i o n t h e r e o f . The
p e r e ta r y o f th e T r e a s u r y e x p r e s s l y r e s e r v e s th e r i g h t to a c c e p t or
jreJcct any or a l l t e n d e r s , in whole o r in p a r t , and h i s a c t i o n in
W such r e s p e c t s h a l l be . f i n a l .
S u b je c t to th e s e r e s e r v a t i o n s ,
on-com petitive t e n d e r s f o r $ 20 0 ,0 0 0 o r l e s s w ith o u t s t a t e d p r i c e
rom W one b id d e r w i l l be a c c e p te d in f u l l a t th e a v e r a g e p r i c e

2
(in th r o e decimals) of accepted competitive "bids. Settlement for
a c c e p t e d t e n d e r s in a c c o rd a n c e w ith th e b id s m ust bo made or
c o m p leted a t th e F e d e r a l R e se rv e Bank on O cto b e r 2 , 1952, in cash .
o r o th e r im m e d ia te ly a v a i l a b l e fu n d s o r i n a l i k e f a c e amount of
T r e a s u r y b i l l s m a tu rin g O cto b e r 2 , 1 9 5 2 . C ash and exchange tenders!
w il l r e c e iv e e q u a l tre a tm e n t.
Cash a d ju s tm e n ts w i l l be made far
d i f f e r e n c e s betw een th e p a r v a lu e o f m a tu rin g b i l l s a c c e p te d in
exch an g e and th e i s s u e p r ic e , o f th e new b i l l s .
The income d e r iv e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t or
g a in from th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l not havi
any e x e m p tio n , a s su c h , and l o s s from th e s a l e o r o th e r disposition
o f T r e a s u r y b i l l s s h a l l n o t h ave any s p e c i a l t r e a t m e n t , a s suth,
un der th e i n t e r n a l Revenue Code, or law s am en d atory o r supplemental!
t h e r e t o . The b i l l s s h a l l be s u b je c t to e s t a t e , i n h e r i t a n c e , gift oij
o th e r e x c i s e t a x e s , w hether F e d e r a l o r S t a t e , b u t s h a ll^ b e exempt
from a l l t a x a t i o n now o r h e r e a f t e r im posed on th e p r i n c i p a l or
i n t e r e s t t h e r e o f by any S t a t e , o r any o f th e p o s s e s s i o n s o f tho
U n ite d S t a t e s , o r by any l o c a l t a x in g a u t h o r i t y . F o r pu rposes of
t a x a t i o n th e amount o f d is c o u n t a t which T r e a s u r y b i l l s are
o r i g i n a l l y s o ld by th e U n ite d S t a t e s s h a l l be c o n s id e r e d to be
i n t e r e s t . Under S e c t io n s 42 and 11? ( a ) ( l ) o f th e I n t e r n a l RevenuJ
Code, a s amended by S e c t io n 115 o f th e Revenue A ct o f 1941, the
amount o f d is c o u n t at. which, b i l l s i s s u e d h e re u n d e r a r c so ld shall
n o t be c o n s id e r e d to a c c r u e u n t i l su ch b i l l s s h a l l be s o l d ,
redeem ed o r o th e rw ise d is p o s e d o f , and su ch b i l l s a r e excluded fromj
c o n s i d e r a t i o n a s c a p i t a l a s s e t s . A c c o r d in g ly , th o owner o f
T r e a s u r y b i l l s ( o t h e r th a n l i f e in s u r a n c e co m p an ie s) is s u e d hereumel
need in c lu d e in h i s incom e t a x r e t u r n o n ly the d i f f e r e n c e between
th e p r i c e p a id f o r su ch b i l l s , w hether on o r i g i n a l I s s u e or on
su b se q u e n t p u r c h a s e , and th e amount a c t u a l l y r e c e i v e d e i t h e r upon
s a l e o r re d e m p tio n a t m a t u r it y d u r in g th e t a x a b l e y e a r f o r which
th e r e t u r n i s made, a s o r d in a r y g a in o r l o s s .
"T re a su ry D epartm en t C i r c u l a r No. 4 l 8 , a s am ended, and th is
n o t i c e , p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and govern the
c o n d it io n s o f t h e i r i s s u e .
C o p ie s o f th e c i r c u l a r may be obt ined
from any F e d e r a l R e se rv e Bank o r B ra n c h .

oOo

I U S E B U t E ______ „

aedneeday, Septeaber %

W fài

s J 77J

soareterc a i ttoe freaaarF Sx&é$r annoonoeà teaclay teliate tenderà « ili
Im
oa oetteber 3» 15Ìft af M és to «a iaaue of ÈA*4éW Tt*&mf
t u * 2 thè aaount of «2,500,000,0», to be « a t e * .O e t s f c e * « *
to motore on Sardi 28» Ì$S$* thoee b ilie w ill be deelgnated leu
tóticipotion Serie." « a l e i l i b . « « p U b * * | J * * « ^
» g
of ineome end p ro fits ta»w due ao March 15* 1953« P5 * S ^ * * * ®isa,,
M U . o l i i be S
lo cadi <m thè to te
e y e p t that aor W
Mari flftrtfMTltrfliTY iim*f aejG0

ì%f C M Ó i t ÌM xte» Ti^iWBfJT 1**» 6®“ iA*ft

Accorate fa r tremai!ry U lto alloteteA to ite f«P ita e lf •*** ite® costipar»
fep ta « T a^mmt for *tet©h ite sh a ll te® %mkì£iaà ili «*£ *«» 5
deposita. Form i im ritatio» f or tender» wUI
isaued #« Saptesl»* 26,
1952*

fhM s b ill« are teeteisg im m é tea M««te ai&teieipeted cash requirenti#
of tei» treaaar^f « ¿ t o t e » Vanite tim i tteay are
£T
mtfo of incede and o re fiia tassa doe on
15» 1551» tteegr «IH
p®M in caeh a i natorltgr»
iSeeretarr ¡jHsyfley fri®!* aiifeiisisisd teliate tenia la tene firate stop la
tu« tteaaaiy 1« i a l l tea» M E fiaaaciag gm & m * thm im m m
paté® teliate ftsrteteer tea» m ila «teli tee «ffered la te r i » tehe 5 «^ » ^
tba& t t * m*»t a ffa rn e ia note Hfe&lr tea talee f i n » «ateU aeae tose la
Momiaber.

treasury

department

Information Service

WASHINGTON, D .C .

IMMEDIATE RELEASE,
Wednesday, Septem ber 2 4 , 1 9 5 2 .

S -3 1 7 5

Secretary o f th e T r e a s u r y Sn y d er announced to d a y t h a t t e n d e r s
will be accepted on O ctob er 3* 1 9 5 2 , o f b id s to an i s s u e o f 16 1 day T reasury b i l l s in th e amount o f $ 2 ,5 0 0 ,0 0 0 ,0 0 0 , to be d a te d
October 8, 1952, and to m atu re on March 1 8 , 1 9 5 3 , T h ese b i l l s
will be d e s ig n a te d "T ax A n t i c i p a t i o n S e r i e s " and w i l l be
acceptable a t f a c e v a lu e in paym ent o f incom e and p r o f i t s t a x e s
due on March 1 5 , 1 9 5 3 . Payment f o r su ch b i l l s w i l l be made in
cash on the d a te o f i s s u e , e x c e p t t h a t any q u a l i f i e d d e p o s i t a r y
may make payment by c r e d i t i n i t s T r e a s u r y Tax and Loan A ccou n t
for T reasury b i l l s a l l o t t e d to i t f o r i t s e l f and i t s c u sto m e rs up
to any amount f o r which . i t s h a l l be q u a l i f i e d in excess o f e x i s t i n g
d epo sits. Form al i n v i t a t i o n f o r t e n d e r s w i l l be i s s u e d on
September 26, 1 9 5 2 .
These b i l l s a r e b e in g i s s u e d to m eet a n t i c i p a t e d c a sh r e q u i r e ­
ments o f the T r e a s u r y ; and to th e e x t e n t t h a t th e y a r e n o t p r e s e n t e d
in payment o f income and p r o f i t s t a x e s due on March 1 5 , 1 9 5 3 , th e y
will be p a id in c a sh a t m a t u r i t y .
S e c r e ta r y Sn y der a l s o announced t h a t t h i s i s th e f i r s t s t e p in
the T re a su ry ’ s f a l l t a x b i l l f i n a n c in g p ro g ram . The T r e a s u r y
a n tic ip a te s t h a t f u r t h e r t a x b i l l s w i l l be o f f e r e d l a t e r in th e
year, but t h a t th e n e x t o f f e r i n g i s n o t l i k e l y t o ta k e p l a c e u n t i l
some time in Novem ber.

oOo

HASTINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 3O, 1 9 5 2 AND JUNE 30 , 1 9 5 1 , AND THE
YEAR ENDED DECEMBER 31, 1951 — C o n tin u e d
(A m ou n ts i n t h o u s a n d s o f d o l l a r s )
6 m o n th s e n d e d
:
f• J u n e 30 » : J u n e 30 ,
!
1951
e• 19 52
R e c o v e r i e s , t r a n s f e r s fro m v a l u a t i o n
r e s e r v e s , and p r o f i t s :
On s e c u r i t i e s :
R e c o v e r i e s * ..........................* ............ * ................. .. $ 3.1-35
T r a n s f e r s fr o m v a l u a t i o n r e s e r v e s . • • •
3 ,9 *6
P r o f i t s on s e c u r i t i e s s o l d o r r e 11,6 9 6
deem ed * • • • • • • .............................. ........................
On l o a n s :
R e c o v e r i e s * • • • • • ...................* ...........................
4 , 985
* ,3 8 2
T r a n s f e r s fr o m v a l u a t i o n r e s e r v e s * • • •
5 ,9 1 4
A l l o t h e r * .................................................* * . * ...............

$

3,638
3 .8 7 1

1
:
:

Year ended*
Dec. 31, I
1951

$

5 ,6 ll*|
7. 05s ■

13 .6 7 9

39.72}1

5 .15 6
4 ,15 7

12.125 1
12,129 I

8 ,9 5 6

18,994 1

3 9 ,0 5 8

3 9 .4 5 7

95.643 I

1 3 ,0 7 1
6 ,7 7 ^

2 0 ,7 8 0
8 ,6 0 S

51.191 I
17.162 I

3,694
3 4 , 5# *
10,906

4 ,0 7 2
1 *2 ,8 1 2

9,606 I

12 ,6 2 8

125.596 1
27.4521

69,029

88,900

231.007 I

PROFITS BEFORE INCOME TAXES....................................

501,699

1 *2 3 ,1 2 8

239. 591]

T a x e s on n e t in c o m e :
F e d e r a l . .......................... « • • • • .......................................
S t a t e .......................................................................................
TOTAL TAXES ON NET INCOME..........................

2 1 3 ,9 5 9

158 .50 3

317.4g
15,4661
3 3 2 .$ ]

NET PROFITS BEFORE DIVIDENDS....................................

2 7 S , 919

TOTAL RECOVERIES, TRANSFERS PROM
VALUATION RESERVES AND PRO PITS...........
L o s s e s , c h a r g e - o f f s , an d t r a n s f e r s to
v a lu a tio n r e s e r v e s :
On s e c u r i t i e s :
L o s s e s an d c h a r g e - o f f s * .................................
T r a n s f e r s t o v a l u a t i o n r e s e r v e s .............
On l o a n s :
L o s s e s a n d c h a r g e - o f f s . ...............................
T r a n sfe r s to v a lu a tio n r e s e r v e s * * . . • •
A l l o t h e r ................................................. * ............ .......
TOTAL L O SSE S, CHARjGE-OFFS AND TRANS­
FERS TO VALUATION RESERVES.....................

C a sh d i v i d e n d s d e c l a r e d :
On p r e f e r r e d s t o c k * • * • • • « ........... * ................... ..
On common s t o c k .......................... . * • • • ......................
TOTAL CASH DIVIDENDS DECLARED................
Number o f h a n k s J / . .......................... . . * * .......................
A n n u al r a t e o f n e t p r o f i t s :
To c a p i t a l f u n d s . ............................ ..
A n n u al r a t e o f c a s h d i v i d e n d s :
To c a p i t a l f u n d s . . * .................................... * ............
1 / A v e r a g e s o f am o u n ts r e p o r t e d f o r t h e J u n e
D ecem b er c a l l d a t e i n t h e p r e v i o u s y e a r .
2 / A v e r a g e s o f am o u n ts r e p o r t e d f o r t h e J u n e
i n d i c a t e d a n d t h e D ecem ber c a l l d a t e i n
¿ / A t en d o f p e r i o d .

- 0Q 0

8 ,8 2 1

2 2 2 ,7 8 0

8 ,0 0 9

16 6 ,5 12
" 255 : 61 F "

50b. ¿951

331
111*, 8 8 9

615
247. 230]

*.9 3 2

115 ,2 2 0
4,9 53

247.«tLl
i*,9 $ r

P ercen t
8 .2 2

P ercen t
7 .9 9

Percent
7*79

206
1 2 6 ,2 7 2
1 2 6 ,4 7 8

3 »< L .
3-5 9
3 .7 3
c a l l d a t e i n y e a r i n d i c a t e d and bne
a n d D ecem ber c a l l d a t e s i n y e a r
th e p r e v i o u s y e a r .

BASHINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE S IX
MONTH PERIODS ENDED JUNE 3 O, 1 9 5 2 AND JUNE 3 0 , 1 9 5 1 , AND THE
YEAS ENDED DECEMBER 3 1 , 1 9 5 1
(A m ou n ts i n t h o u s a n d s o f d o l l a r s )
:
,
;

6 m o n th s e n d e d
J u n e 30>
1952

C a p it a l s to c k , p a r v a lu e :
7,*460
P r e f e r r e d ..................... .................................................... . $
2 ,1*46,9*46
Common*.............................................................................. .

*

J u n e 30 »

:
*

19 5 1

$

Y ear ended 1
Dec, 31,

•
;

13 .7 7 5
2 , 020,628

1951

$

12,032 I
2,0*46,018 I

. 1 / 2 , 15 *+,*406

1 / 2 , 03^ , 1*03

2 / 2 , 058, 0501

C a p i t a l f u n d s * ................................................................. . 1 / 6 , 78 3.0 9 1

1 / 6 , *42*4,508

2 / 6 , 506,378 I

TOTAL CAPITAL STOCK............................... ..

E a r n i n g s fr o m c u r r e n t o p e r a t i o n s :
I n t e r e s t and d iv id e n d s :
On U * S * G overnm ent o b l i g a t i o n s * * . *
On o t h e r s e c u r i t i e s * ................................. .. .
I n t e r e s t a n d d i s c o u n t on l o a n s * * * * * * .
S e r v i c e c h a r g e s on d e p o s i t a c c o u n t s . .
O th e r s e r v i c e c h a r g e s , c o m m i s s i o n s , f e e s ,
a n d c o l l e c t i o n an d e x c h a n g e c h a r g e s • •
T r u s t d e p a r t m e n t ................ ................................... .
O th e r c u r r e n t e a r n i n g s * • * • • • • • • • • • • • • .

299,800

277.9117

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

7 2 , *4*4*4
6*4*4, *415
6*4,28*4

38 ' 09$
3 7 .1 6 5
6 1 , 76s

311,036
33.296
6 1.5 13

1 , 3 1 S , S 30

1 . 1 8 7 .9 3 5

2,U5»i .35S

.
.

1 2 8 ,0 9 0
252,1*4*4

1 1 8 ,1 3 2
2 2 7 ,9 4 1

250. 3“
*4S2,*4*47

•

6 ,6 6 *4

6 ,0 1 8

12,957

.
.

1 2 6 ,0 8 9
3 8 ,8 1 *4

10 *4,290
39 ,10 6

a s , 626

.
*

1 8 ,7 1 6
216 ,6 *4 3

16 ,8 5 5
20 3,0 22

37.1*11
lioo,9§L

TOTAL CURRENT OPERATING E X P E N S E S ... .

7 8 7 .1 6 0

7 15 . 36 »!

l.W .'W

531,6 70 __________ *4 7 2 .5 7 1

97^.951

TOTAL EARNINGS PROM CURRENT
OPERATIONS........................................................ .
C u rren t o p e r a tin g e x p e n se s:
S a l a r i e s a n d w a g e s:
O f f i c e r s * ....................... * ......................................
E m p lo y e e s o t h e r t h a n o f f i c e r s ..............
P e e s p a i d t o d i r e c t o r s a n d m em bers o f
e x e c u t iv e , d is c o u n t , and a d v is o r y
c o m m it t e e s .......................
I n t e r e s t on tim e d e p o s i t s ( i n c l u d i n g
s a v i n g s d e p o s i t s ) ........... * ....................• • • * «
T a x e s o t h e r t h a n o n n e t in c o m e ................
R e c u r r i n g d e p r e c i a t i o n on b a n k in g
h o u s e , f u r n i t u r e a n d f i x t u r e s ................
O th e r c u r r e n t o p e r a t i n g e x p e n s e s * • • * •

NET EARNINGS FROM CURRENT OPERATIONS. ...........

568,812
1*48,205
l.iw jte
129,180
,'^59
75.130 1
m , S 30 1
1 0

76,95^

-

2

-

d i v i d e n d s f o r t h e s i x m o n th s e n d e d J u n e 30 * 19 52 w e re $ 279 * 000 , 000 , which
a t a n a n n u a l r a t e am o u n ts t o S .2 2 p e r c e n t o f a v e r a g e c a p i t a l f u n d s .

Het

p r o f i t s f o r t h e sam e p e r i o d o f t h e p r e v i o u s y e a r w e re $ 25 7 * 000 , 000 , o r 7.99
p e r c e n t o f a v e ra g e c a p i t a l fu n d s.
C a sh d i v i d e n d s d e c l a r e d on common an d p r e f e r r e d s t o c k t o t a l e d $ 126 ,OOG,QOq|
i n c o m p a r is o n w i t h $ 1 1 5 ,0 0 0 ,0 0 0 i n t h e f i r s t

h a lf o f 1951*

The a n n u a l rate

o f c a s h , d i v i d e n d s w as 3 .7 3 p e r c e n t o f a v e r a g e c a p i t a l f u n d s an d w as ^ 5.35 per­
c e n t o f th e n e t p r o f i t s a v a i l a b l e .

T he r e m a in in g 5^*65 p e r c e n t o f n e t profits,

o r $ 15 3 , 000,000 w as r e t a i n e d b y t h e b a n k s i n t h e i r c a p i t a l a c c o u n t s .
On J u n e 30 , 1 9 5 2 t h e r e w e re ^ , 9 3 2 n a t i o n a l b a n k s i n o p e r a t i o n , which vas
a d e c r e a s e o f 2 1 b a n k s s i n c e J u n e 30 * 1 9 5 1 *

ïjkeasubi

mpàsmMsm

C o m p t r o l le r o f t h e C u r r e n c y
W ash in gton .

"jt %

f Ÿ **

,j~

C o m p t r o l le r o f t h e C u r r e n c y P r e s t o n D e la n o a n n o u n c e d t o d a y t h a t th e
n a t i o n a l b a n k s i n t h e U n it e d S t a t e s a n d p o s s e s s i o n s r e p o r t e d n e t o p e r a t in g
e a r n i n g s o f $ 5 3 2 ,0 0 0 ,0 0 0 f o r t h e s i x m o n th s e n d e d J u n e 30 , 1 9 5 2 » a n in c r e a se
o f $ 59 , 000,000 o v e r t h e f i r s t h a l f o f 1 9 5 1 *
G r o s s e a r n i n g s w e re $ 1 , 3 1 9 , 0 0 0 , 0 0 0 ,
o v e r th e g r o s s e a r n in g s f o r th e f i r s t

T h i s w as a n i n c r e a s e o f $131,000,000

s i x m on th s o f 19 5 1 *

p r i n c i p a l item

o f o p e r a t i n g e a r n i n g s i n t h e f i r s t h a l f o f 19 52 w as $ 73 5 » 000,000 fr o m in te r ­
est

d i s c o u n t on l o a n s , w h ic h w as a n i n c r e a s e o f $ 9 1 * 000,000 com pared with

th e c o r r e s p o n d in g p e r io d i n 1951»

O th e r p r i n c i p a l i t e m s o f o p e r a t i n g earn­

i n g s w e re $ 3 0 0 ,0 0 0 ,0 0 0 fr o m i n t e r e s t o n U n it e d S t a t e s G overn m en t o b l ig a t io n s
$ 80 , 000,000 i n t e r e s t a n d d i v i d e n d s on o t h e r s e c u r i t i e s , a t o t a l o f
$ 380 , 000 , 000 , w h ic h w as a n i n c r e a s e o f $ 29 , 000,000 c o m p a re d t o t h e f i r s t half
o f t h e p r e v i o u s y e a r , a n d $ 67 * 000,000 fr o m s e r v i c e c h a r g e s on d e p o s i t accounts,
an i n c r e a s e o f $ 3 *0 0 0 ,0 0 0 ,

O p e r a t in g e x p e n s e s , e x c l u d i n g t a x e s on n e t income,

w e re $ 787 , 000,000 a s a g a i n s t $ 7 15 * 000,000 f o r t h e f i r s t h a l f o f 19 5 1 *

Ilie

p r i n c i p a l o p e r a t i n g e x p e n s e s w e re $ 3^ 6 , 000,000 f o r s a l a r i e s an d w a g e s o f
o f f i c e r s a n d e m p lo y e e s a n d f e e s p a i d t o d i r e c t o r s ,

a n i n c r e a s e o f $ 3 ^ * 000,000

o v e r t h e f i r s t h a l f o f 19 5 1 » a n d $ 12 6 , 000,000 e x p e n d e d f o r i n t e r e s t on t in s
a n d s a v i n g s d e p o s i t s , a n i n c r e a s e o f $ 2 2 , 000 , 000 ,
A d d in g t o t h e n e t o p e r a t i n g e a r n i n g s p r o f i t s on s e c u r i t i e s s o l d o f
$ 1 2 , 000,000 a n d r e c o v e r i e s o n l o a n s a n d i n v e s t m e n t s , e t c , ( i n c l u d i n g a d ju s t ­
m e n ts i n v a l u a t i o n r e s e r v e s ) o f $ 2 7 * 000 , 000 , a n d d e d u c t i n g l o s s e s a n d chargeo f f s ( i n c l u d i n g c u r r e n t a d d i t i o n s t o v a l u a t i o n r e s e r v e s ) o f $ 69 , 000 , 000, and
t a x e s on n e t in co m e o f $ 22 3 * 000 , 000 , t h e n e t p r o f i t s o f t h e b a n k s b e f o r e

TREASURY D EPARTMENT
Information Service

WASHINGTON, D .C
on

RELEASE MOOTING NEWSPAPERS,
Monday, Sep t ember 2 9 , 1 9 5 2 .

S-3176

¿ 0

C o m p tro lle r o f th e C u rren cy P r e s t o n D elan o announced to d a y t h a t
the n a tio n a l h an ks in th e U n ite d S t a t e s and p o s s e s s i o n s r e p o r t e d n e t
operating e a r n in g s o f $ 5 3 2 ,0 0 0 ,0 0 0 f o r th e s i x m onths ended Ju n e 3 0 ,
1952, an i n c r e a s e o f $ 5 9 , 000,000 o v e r th e f i r s t h a l f o f 1 9 5 1 ,
G ross e a r n in g s were $ 1 ,3 1 9 ,0 0 0 ,0 0 0 . T h is was an i n c r e a s e o f
$13 1, 000,000 o v e r th e g r o s s e a r n in g s f o r th e f i r s t s i x m onths o f
1951. The p r i n c i p a l ite m o f o p e r a t in g e a r n in g s i n th e f i r s t h a l f o f
1952 was $7 3 5 , 000,000 from i n t e r e s t and d is c o u n t on l o a n s , which was
an in c r e a se o f $ 9 1 , 000,000 com pared w ith th e c o r r e s p o n d in g p e r io d in
1951. Other p r i n c i p a l ite m s o f o p e r a t in g e a r n in g s were
$300,000,000 from i n t e r e s t on U n ite d S t a t e s Government o b l i g a t i o n s
and $80, 000,000 i n t e r e s t and d iv id e n d s on o th e r s e c u r i t i e s , a t o t a l
of $380, 000, 000, w hich was an in c r e a s e ; o f $2 9 , 000,000 com pared to
the f i r s t h a l f o f th e p r e v io u s y e a r , and $6 7 , 000,000 from s e r v i c e
charges on d e p o s i t a c c o u n t s , an i n c r e a s e o f $ 3 ,0 0 0 ,0 0 0 . O p e r a tin g
expenses, e x c lu d in g t a x e s on n e t in com e, w ere $7 8 7 , 000,000 a s
against $ 7 1 5 ,0 0 0 ,0 0 0 f o r th e f i r s t h a l f o f 1 9 5 1 . The p r i n c i p a l
operating e x p e n se s were $ 386, 000,000 f o r s a l a r i e s and w ages o f
o ffic e rs and em p lo y ees and f e e s p a id to d i r e c t o r s , an i n c r e a s e o f
$34,000,000 o v e r th e f i r s t h a l f o f 1 9 5 1 , and $ 1 2 6 ,0 0 0 ,0 0 0 exp en d ed
for i n t e r e s t on tim e and s a v i n g s d e p o s i t s , an in c r e a s e o f
$22 , 0 0 0 , 0 0 0 .

Adding to th e n e t o p e r a t in g e a r n in g s p r o f i t s on s e c u r i t i e s s o l d
of $1 2 , 000,000 and r e c o v e r i e s on lo a n s and in v e s t m e n t s , e t c .
(in cludin g a d ju s tm e n ts i n v a l u a t i o n r e s e r v e s ) o f $2 7 , 000, 000, and
deducting l o s s e s and c h a r g e - o f f s ( i n c l u d i n g c u r r e n t a d d i t i o n s to
valuation r e s e r v e s ) o f $6 9 , 000, 000, and t a x e s on n e t incom e o f
1223,000,000, th e n e t p r o f i t s o f th e b an k s b e f o r e d iv id e n d s f o r th e
six months ended Ju n e 3 0 , 1952 were $ 2 7 9 ,0 0 0 ,0 0 0 , w hich a t an a n n u a l
I’ate amounts t o 3 .2 2 p e r c e n t o f a v e r a g e c a p i t a l f u n d s . N et p r o f i t s
lor the same p e r io d o f th e p r e v io u s y e a r were $2 5 7 , 000, 000, o r 7 .9 9
percent o f a v e r a g e c a p i t a l fu n d s .
Cash d iv id e n d s d e c l a r e d on common and p r e f e r r e d s t o c k t o t a l e d
2 5 ,0 0 0 ,0 0 0 i n co m p ariso n w ith $ 1 1 5 , 000,000 i n th e f i r s t h a l f o f
9.U. The a n n u a l r a t e o f c a sh d iv id e n d s was 3 *7 3 p e r c e n t o f a v e r a g e
c ap ital fu n d s and was 4 5 .3 5 p e r c e n t o f th e n e t p r o f i t s a v a i l a b l e .
II Rem aining 5 4 .6 5 p e r c e n t o f n e t p r o f i t s , o r $ 1 5 3 , 000,000 was
retained by th e ban k s in t h e i r c a p i t a l a c c o u n t s .
June 3 0 , 19 5 2 th e r e w ere 4 ,9 3 2 n a t i o n a l ban k s i n o p e r a t io n ,
tticn was a d e c r e a s e o f 2 1 b an k s s i n c e Ju n e 3 0 , 1 9 5 1 .
oOc

r>c Q
-

2

uO

-

EARNINGS, EXPENSES, AND DIVIDENDS'OF NATIONAL BANKS IN THE S IX
MONTH PERIODS ENDED JUNE 30, 1 9 3 2 AND JUNE 30, 19.31 > AND THE
\
YEAR ENDED DECEMBER 3 1 , 1 9 3 1

(Amounts in thousands of dollars)
6 months ended
s Ju n e 3 0 , :
;

1932

kpital stock, par value:

?,U60

Preferred. . . . . . . . . . . . . .

fapital f u n d s . .................................

jjarnlngs from current operations;
Interest™and dividends:
On U. S. Government obligati«
On other securities.........
Interest and discount on loans,

Trust department..........
Other current earnings••••••.,
TOTAL EARNINGS FROM CURRENT

13,773

D ec* 3 1 ,
1931

$

12,032

.1 /2 ,1 5 4 ,4 0 6

1 /2 ,0 3 4 ,4 0 3

2 /2 ,0 3 8 ,0 3 0

.1 /6 ,7 8 3 ,0 9 1

I / 6 , lj.21|., 3 0 8
1,

2/ 6 , 506,378

299,800
7 9 ,5 8 8
7 3 5 ,0 8 9
6 7 ,3 2 2

2 7 7 ,9 4 7
7 2 ,4 4 4
6 4 4 ,4 1 5
6 4 ,2 8 4

3 6 8 ,8 1 2
1 )4 8 ,2 0 3
1 , 3 )40, 7)42
1 2 9 ,1 8 0

3 8 ,0 9 8
3 7 ,1 6 5
6 1 ,7 6 8

3 4 ,0 3 6
3 3 ,2 9 6
6 1 ,5 1 3

70,1439
7 3 ,1 3 0
1 2 1 ,8 3 0

1 , 3 1 8 ,3 3 0

1 , 1 8 7 ,9 3 5

2 ,)43)i ,3 3 8

1 2 8 ,0 9 0
2 5 2 ,1 1 4 *

1 1 8 ,1 3 2
2 2 7 ,9 4 1

25 0 ,318

.

6 , 66)4

6 ,0 1 8

1 2 ,9 5 7

.
.

126,089
3 8 ,8 1 4

1 0 4 ,2 9 0
3 9 ,1 0 6

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

1 8 ,7 1 6
2 1 6 ,6 4 3

203,022

1 6 ,8 3 3

3 7 ,1 4 1
4 0 0 ,9 5 6

7 8 7 ,1 6 0

7 1 5 ,3 6 4

1 , 4 7 9 ,4 0 3

5 3 1 ,6 7 0

4 7 2 ,5 7 1

9 7 4 ,9 5 5

.
.
.
.
fe e s,
s
.
.
.

lirren t o p e r a t i n g e x p e n s e s ;•
l a r i e s a n d ~ w a g e¥ ;
O f f i c e r s ...............................
Em ployees o t h e r t h a n o f f i c e r s , . . ,
Fees p a i d t o d i r e c t o r s a n d m em bers
e x e c u tiv e , d i s c o u n t , a n d a d v i s o r y
c o m m ittees..........................
I n t e r e s t on tim e d e p o s i t s ( i n c l u d i i
sa v in g s d e p o s i t s )
Taxes o t h e r t h a n on n e t i n c o m e . . . . ,
R ecu rrin g d e p r e c i a t i o n on b a n k in g

:

Year ended

Ju n e 3 0 ,
1931

„
.
of

Ip*

F EârNINGS FROM CURRENT OPERATIONS.,.,

4 8 2 ,4 4 7

- 3 -

?p

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1952 AND JUNE 30, 1951, AND THE
TEAR ENDED DECEMBER 31, 1951 — Continued
_____ __________ (Amounts In thousands of dollars)
:"
6 months ended **"
fTSSI ’30/
run«
t 1952
1951

Recoveries, t r a n s f e r s from v a l u a t i o n
""'reserves? and p r o f i t s :

~~

O r T s e c u r it ie s ;
R e c o v e r ie s
1 3 ,1 3 5
T r a n s f e r s fr o m v a l u a t i o n r e s e r v e s » • «
8,91*6
P r o f i t s on s e c u r i t i e s s o l d o r r e ­
deemed#
1 1 ,6 9 6
On l o a n s ;
R e c o v e r ie s » * • « » * . * * * * . . , * # . . * * . * . » « »
¡1,985
T r a n s f e r s fr o m v a l u a t i o n r e s e r v e s . ##
¡(,382
A ll o t h e r ............ .. * ............... ..
5,911*
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND P R O F I T S ..# .

3,638
3,871

$

39,058

[Taxes on n e t in co m e :
F e d e r a l . . . ............................................. ..
S t a t e » , . . . . . ........... ...............................................
TOTAL TAXES ON NET INCOME.. . . . . .

1 3 *9 5 9
. 2213,959
.
8,821

[NET PROFITS BEFORE DIVIDENDS.............

.." 2278,919
7 8 ,9 1 9

|to m a l_ ra te o f n e t p r o f i t s ;
"
To c a p i t a l f u n d s . . .
[_nnual r a t e o f c a s h d i v i d e n d s ;

"

"

39,723

5,156
¡*,157
8,956

12,125

~

7777...........

p ercen t
— 8Ï 2 T ”

1 2 ,1 2 9

18,99!*

95,m

20,780

51,191

8,6 0 8

17,162

¡i,0 7 2

¡4.2,812

J.«-,VJ«-U

9,606
125,596
-1

88,900
¡*23,128

231,007
839,591

158,503
256,6l6

317, ¡(30
15, ¡*66
.. JJc
qo O ,oyO
Uni " 1
506,695

- 331
lll*,889

6i5
21*7,230

8,009

,l

5>6lU
7,058

13,679

10*5 ,pic

[Cash d iv id e n d s d e c l a r e d :
On p r e f e r r e d s t o c k . » .
.
.
.
,
.
206
On common s t o c k . ........................................................ . 12
6 ,2 7 2
126,272
"'T,7v/8-n-U ^ J i A L CASH DIVIDENDS DECLARED.. . . . . . “--ÏT2o6Z'
.R
[Number o f b a n k s 3 7 7 7 7 .......................... ..
777
T */9 3 2

.1

39, 7

Lo sses, c h a r g e - o f f s , a n d t r a n s f e r s t o
valu ation r é s e r v e s :
— —
O iT s e c u f T t lis l
L o sse s and c h a r g e - o f f s
13,071
T ra n sfe rs to v a lu a t io n r e s e r v e s . . . . . .
6,771*
On lo a n s :
L o sse s and c h a r g e - o f f s . . . . . . . . . . . . . . „
3 ,6 9 1 *
T ra n sfe rs to v a lu a t io n r e s e r v e s . * . . , .
3U>58U
A ll o t h e r ............. ................. . ............ ...................... ............10, QQ6

*
..
1
TOTAL LO SSE S, CHARGE-OFFS AND TRANS
FERS TO VALUATION R E S E R V E S ..................
669,029
9 , 0 29
[PROFITS BEFORE INCOME T A X E S . . . . . . . . . . . ............ 501,699
5 q i 56 9 9

Year ended
Dec. 31,
1951

-1

~~5795T
Percent
• 7 .9

‘

1795f
Percent
7 .7 9

o capital funds,
*••••••«
3.73
3 .8 1
3.59
Peerages of amounts reported Tor the June call date in year indicated and the
12/ .^ecern^er call date in the previous year.
1 / Averages of amounts-reported for the June and December call dates in year
I>/ Jndioated and the December call date in the previous year.
W At end Of period*
0O 0-

f-

2

-

M r.
in

th e

Sp ark s

A rm y d u r i n g

n e w sp a p e r w o rk
an

e x e c u tiv e

a p p o in te d
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RELEASE WEDNESDAY NEWSPAPERS
October 1, 1952__________
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TREASURY DEPARTMENT
WASHINGTON, D .C .

Information Service

0.7I0
c

RELEASE WEDNESDAY NEWSPAPERS
October 1* 195 2 .__________ ____

o- Ü 7 7

Secretary Snyder has appointed Robert W. S p a r k s , First
Vic0 President and Treas u r e r of the B o w e r y Savings B a n k of
lev York, chairman of the U.S.Savings Bonds A d v i s o r y Committee for
the State of New York. The appointment is effective immediately.
Mr. Sparks succeeds Lewis Pierson, N e w Y o r k banker and
financier, who requested that he be allo w e d to retire as the
New York State Chairman, a fter serving in that capacity for more
than six y e a r s . Mr, Pierson, whose w o r k as State C h a i r m a n w o n
Secretary S n y d e r ’
s h i g h praise, will continue to serve on^the
Executive Committee of State C hairmen and as H o n o r a r y C hairman of
the New Y o r k State A d v i s o r y Committee.
In commenting on Mr. S p a r k s ’acceptance of the appointment,
the Secretary said:
“It is reassuring, indeed, to our Savings
Bonds Program to k n o w that one who help e d to j.nitiate the p r o g r a m
and has been a n active supporter throughout is n o w w i l l i n g to
take on a further role of l e a d e r s h i p . ”
Mr. Sparks work e d closely with the Secretary of the Treas u r y
in 1 9 4 1 in o r g anizing the W a r Bonds* D i v i s i o n of the U. S. Treas u r y
and later became its nati o n a l field director, h e a d i n g its^
activities in 48 states, Alaska, Puerto Rico and the Philippines.
He served in that capacity until 1943.
Mr. Sparks saw active service in France as a lieutenant in
the Army during the first W o r l d War, A f t e r a p e riod in newspaper
work and a d v e r t i s i n g foll o w i n g the war, he became a n executive of
an insurance company. In 1928 he was appointed dire c t o r of
business extension at the B o w e r y Savings B a n k and. in 1931 was
named assistant treasurer. He has b e e n its F irst Vice President
and Treasurer since 1949*
In addition to serv i n g as a consultant to the U. S. Treasury,
Mr. Sparks is a d irector of the F i nancial Public Relations
Association; a trustee of the B r o o k l y n Masonic Guild, a m e m b e r of
the Board of Managers, F inancial Public Relations School ot
Northwestern University; a m e mber of the N e w Y o r k Public Library
: Advisory Board; a m e m b e r of the Board of Regents of the Graduate
School of Banking, Rutgers University; a m e mber of the A d v i s o r y
Board, Chemical Bank & Trust Company, and a direc t o r of the
National Thrift C o m m i t t e e .
oOo

- 3 -

b e e x c e p t f r e e e l l t a x a t i o n now o r h e r e a f t e r im p o se d o n t h e p r i n c i p a l o r in­
t e r e s t t h e r e o f b y a n y S t a t e , o r a n y o f t h e p o s s e s s i o n s o f t h e U n it e d S t a t e s ,
o r by any l o c a l ta x in g a u th o r ity *

F o r p u r p o s e s o f t a x a t i o n t h e asio u n t o f

d i s c o u n t a t w h ic h T r e a s u x y b i l l s a r e o r i g i n a l l y s o l d b y t h e U n it e d S t a t e *
s h a l l b s c o n sid e r e d t o b e i n t e r e s t *

U n d er S e c t i o n s 1*2 a n d 1 1 7 ( * )

( 1 ) o f the

I n t e r n a l R ev en u e C o d e , a s am en ded b y S e c t i o n 1 1 5 o f t h e R e v e n u e A c t o f 1 9la,
t h e am oun t o f d i s c o u n t a t w h ic h b i l l s

i s s u e d h e r e u n d e r a r e s o l d s h a l l n ot be

c o n s i d e r e d t o a c c r u e u n t i l s u c h b i l l s s h a l l b e s o l d , r e d s s m s d o r o th e r w ise
d i s p o s e d o f , a n d s u c h b i l l s a r e e x c lu d e d fr o m c o n s i d e r a t i o n a s c a p i t a l asse t«,
A c c o r d i n g l y , t h e o w n er o f T r e a s u r y b i l l s

(o th e r th a n l i f e

i n s u r a n c e companies)

i s s u e d h e r e u n d e r n e e d i n c l u d e i n h i s in co m e t a x r e t u r n o n l y t h e d i f f e r e n c e
b e tw e e n t h e p r i c e p a i d f o r s u c h b i l l s , w h e th e r o n o r i g i n a l i s s u e o r on sub­
s e q u e n t p u r c h a s e , an d t h e a sio u n t a c t u a l l y r e c e i v e d e i t h e r u p o n s a l e o r r e ­
d a c t i o n a t m a t u r i t y , o r t h e am oun t o f in co m e o r p r o f i t s t a x e s p a i d b y weans
o f t h e b i l l s , d u r i n g t h e t a x a b l e y e a r f o r w h ic h t h e r e t u r n i s m a d s , a s
o r d in a r y g a in o r l o s s *
T r e a s u r y D e p a rtm e n t C i r c u l a r Re# 1*18, a e am en d ed , an d t h i s n o t i c e , pre­
s c r i b e t h e te x m s o f t h e T r e a s u r y b i l l s a n d g o v e r n t h e c o n d i t i o n s o f t h e i r
iss u e *

C o p ie s o f t h e c i r c u l a r may b s o b t a i n e d fro m a n y F e d e r a l R e s e r v e Bank

o r B ran ch *

- * -

p ay m en t o f 2 p e r c e n t o f t h e f a c e am ount o f T r e a s u r y b i l l « a p p l i e d f o r , unless
t h e t e n d e r » a r e a c c o m p a n ie d b y a n e x p r e s s g u a r a n t y o f p ay m en t b y a n in corpo­
r a t e d b a n k o r t r u s t com pan y*
I m m e d ia t e ly a f t e r t h e c l o s i n g h o u r , t e n d e r s m i l l b e o p e n e d a t t h e Federal I
R e s e r v e B a n k s an d B r a n c h e s , f© H o m in g w h ic h p u b l i c an n o u n cem en t m i l l b e made
b y t h e S e c r e t a r y o f t h e T r e a s u r y o f t h e am oun t a n d p r i c e r a n g e o f ac c e p te d
b id s.

T h o se s u b m i t t i n g t e n d e r s w i l l b e a d v i s e d o f t h e a c c e p t a n c e o r rejectio n

th e re o f*

T h e S e c r e t a r y o f t h e T r e a s u r y e x p r e s s l y r e s e r v e s t h e r i g h t t o accept

o r r e j e c t a n y o r a l l t e n d e r s , i n » h o l e o r i n p a r t , an d h i s a c t i o n i n any such
re sp e c t s h a ll be f in a l*

S u b j e c t t o t h e s e r e s e r v a t i o n s , n o n - c o m p e t it iv e

t e n d e r s f o r $ 2 0 0 ,0 0 0 o r l e s s w i t h o u t s t a t e d p r i c e fro m a n y o n e b i d d e r m i l l be
a c c e p te d

i n f u l l a t t h e a v e r a g e p r i c e ( i n t h r e e d e c i m a l s ) o f a c c e p t e d compe­

t it iv e b id s.

S e t t l e m e n t f o r a c c e p t e d t e n d e r s i n a c c o r d a n c e w i t h t h e b id s

m u st b e m ade o r c o m p le t e d a t t h e F e d e r a l R e s e r v e B an k i n c a s h o r o t h e r imme­
d i a t e l y a v a i l a b l e f u n d s o n O c t o b e r 8 , 1 9 5 2 , p r o v i d e d , h o w e v e r , a n y q u a lif ie d
d e p o s i t a r y w i l l b e p e r m i t t e d t o m ake p ay m en t b y c r e d i t i n i t s T r e a s u r y

T«x

an d L o a n A c c o u n t f o r T r e a s u r y b i l l s a l l o t t e d t o i t f o r I t s e l f a n d i t s custom««
u p t o a n y am oun t f o r w h ic h i t s h a l l b e q u a l i f i e d i n e x c e s s o f e x i s t i n g deposit#
when s o n o t i f i e d b y t h e F e d e r a l R e s e r v e B an k o f i t s D i s t r i c t *
T he in co m e d e r i v e d fro m T r e a s u r y b i l l s , w h e th e r i n t e r e s t o r g a i n fro®
t h e s a l s o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l n o t h a v e a n y e x e m p tio n , * *
s u c h , a n d l o s s fro m t h e s a l e o r o t h e r d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l not
h a v e a n y s p e c i a l t r e a t m e n t , a s s u c h , u n d e r t h e I n t e r n a l R e v e n u e C o d e , o r lave
a m e n d a to r y o r s u p p le m e n t a r y t h e r e t o .

T he b i l l s s h a l l b e s u b j e c t t o e state,

i n h e r i t a n c e , g i f t o r o t h e r e x c i s e t a x e s , w h e th e r F e d e r a l o r S t a t e , b u t s h a ll

CT 0

A J

«

RELEASE MO FaiHEWSFAPERS,

JT_

F r i d a y # S e p te m b e r 2 6 , 1 9 5 2 »

3/i7

Tha S e c r e t a r y o f t h e T r e a s u r y , b y t h i s p u b l i c n o t i c e , i n v i t e e te n d e r s
f o r $ 2 , 5 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , o f l 6 l - d a y T r e a s u r y b i l l s , t o b e issu e d
o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d n o n - c o m p e t it iv e b i d d i n g a s h erein ­
a f t e r p r o v id e d .

T h e b i l l s o f t h i s s e r i e s w i n b e d e s i g n a t e d T a x A n tic ip a tio n

S e r i e s , th e y w i l l b e d a te d O cto b e r 8 , 1 9 5 2 ,

and w i l l m a t u r e M arch 1 8 , 1953»

T h ey w i l l b e a c c e p t e d a t f a c e v a l u e i n p ay m en t o f in co m e a n d p r o f i t s t a x e s
d u e o n M arch 1 5 , 1 9 5 3 , an d t o t h e e x t e n t t h e y a r e n o t p r e s e n t e d f o r t h i s
p u r p o s e t h e f a c e am oun t o f t h e s e b i l l s w i l l b e p a y a b l e w i t h o u t i n t e r e s t a t
m a tu rity .

T h e y w i l l b e i s s u e d i n b e a r e r fo rm o n l y , a n d i n d e n o m in a tio n s o f

$ 1 , 0 0 0 , 1 5 , 0 0 0 , $ 1 0 ,0 0 0 ,

1100, 000,

$ 5 0 0 ,0 0 0 , a n d $ 1 , 0 0 0 ,0 0 0 ( m a t u r i t y v alu e).

T e n d e r s w i l l b e r e c e i v e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s up to the
c l o s i n g h o u r , tw o o ’ c l o c k p . m . , E a s t e r n S t a n d a r d t i m e , F r i d a y , O c to b e r 3#
1952.

T e n d e r s w i l l n o t b e r e c e i v e d a t t h e T r e a s u r y D e p a r t m e n t , W ashington.

E a c h t e n d e r m u st b e f o r a n e v e n m u l t i p l e o f $ 1 , 0 0 0 , a n d i n t h e c a s e o f compe­
titiv e

t e n d e r s t h e p r i c e o f f e r e d m u st b e e x p r e s s e d o n t h e b a s i s o f 1 0 0 , with

n o t m ore t h a n t h r e e d e c i m a l s , e . g . , 9 9 * 9 2 5 *

F r a c t i o n s m ay n o t b e u s e d .

I t i s u r g e d t h a t t e n d e r s b e m ade o n t h e p r i n t e d fo r m a a n d fo r w a r d e d in the
s p e c i a l e n v e l o p e s w h ic h w i l l b e s u p p l i e d b y F e d e r a l R e s e r v e B a n k s o r Branches
)

on a p p lic a tio n th e r e fo r .
O t h e r s t h a n b a n k in g i n s t i t u t i o n s w i l l n o t b e p e r m i t t e d t o su b m it tenders
e x c e p t f o r t h e i r own a c c o u n t .

T e n d e r s w i l l b e r e c e i v e d w i t h o u t d e p o s i t from

i n c o r p o r a t e d b a n k s a n d t r u s t c o m p a n ie s a n d fro m r e s p o n s i b l e a n d
d e a l e r s i n in v e s t m e n t s e c u r i t i e s *

recognised

T e n d e r s fro m o t h e r s m u st b e accompanied by

TREASURY D EPARTMENT
Information Service

WASHINGTON, D .C .
o *7 4

heiease morning n e w sp a p e r s ,

Friday, Septem b er 2 6 , 1 9 5 2 .

S -3 1 7 8

The S e c r e t a r y o f th e T r e a s u r y , by t h i s p u b l ic n o t i c e , i n v i t e s
tenders f o r $2,500,000,000, o r t h e r e a b o u t s , o f l 6l - d a y T r e a s u r y
b ills, to be i s s u e d on a d is c o u n t b a s i s u n d er c o m p e t itiv e and
non-com petitive b id d in g a s h e r e i n a f t e r p r o v id e d .
The b i l l s o f
this s e r i e s w i l l be d e s ig n a t e d Tax A n t i c i p a t i o n S e r i e s , th e y w i l l
be dated O ctob er 8, 1952, and w i l l m atu re March 18, 1953. They
will be a c c e p te d a t f a c e v a lu e in payment o f incom e and p r o f i t s
taxes due on March 15, 1953^ and to th e e x t e n t th e y a r e n o t
presented f o r t h i s p u rp o se th e f a c e amount o f th e s e b i l l s w i l l be
payable w ith o u t i n t e r e s t a t m a t u r i t y . They w i l l b e 'i s s u e d in
bearer form o n ly , and in d e n o m in a tio n s o f $ 1 , 000, $ 5 , 000, $ 1 0 , 000,
$100, 000, $ 500, 000, and $ 1 , 000,000 ( m a t u r it y v a l u e ) .
Tenders w i l l be r e c e i v e d a t F e d e r a l R e se rv e B an ks and B ra n ch e s
up to the c l o s i n g h o u r, two o 'c l o c k p .m ., E a s t e r n S ta n d a r d tim e ,
Friday, O ctober 3, 1 9 5 2 . T en d e rs w i l l n o t be r e c e iv e d a t th e
Treasury D ep artm en t, W ash in g to n . Each te n d e r m ust be f o r an even
multiple o f $ 1 , 000, and i n th e c a s e o f c o m p e t itiv e t e n d e r s th e
price o ffe r e d m ust be e x p r e s s e d on th e b a s i s o f 10 0 , w ith n o t more
than th ree d e c im a ls , e . g . , 9 9 *9 2 5 . F r a c t i o n s may n o t be u s e d .
It is urged t h a t t e n d e r s be made on th e p r i n t e d fo rm s and
forwarded in th e s p e c i a l e n v e lo p e s which w i l l be s u p p lie d by
Federal R e se rv e Banks o r B ra n ch e s on a p p l i c a t i o n t h e r e f o r .
Others th a n b an k in g i n s t i t u t i o n s w i l l n o t be p e r m itte d to
submit te n d e r s e x c e p t f o r t h e i r own a c c o u n t . T en d e rs w i l l be
received w ith o u t d e p o s i t from in c o r p o r a t e d ban k s and t r u s t com pan ies
and from r e s p o n s i b l e and r e c o g n iz e d d e a l e r s i n in v e stm e n t
s e c u r it ie s . T en d ers from o t h e r s m ust be acco m p an ied by paym ent o f
2 percent o f th e f a c e amount o f T r e a s u r y b i l l s a p p l i e d f o r , u n le s s
the ten d ers a r e accom pan ied by an e x p r e s s g u a r a n ty o f paym ent by
an in c o rp o ra te d bank o r t r u s t company.
Im m ed iately a f t e r th e c l o s i n g h o u r, te n d e r s w i l l be opened a t
the F e d e ra l R e se rv e Banks and B ra n c h e s, f o llo w in g w hich p u b lic
announcement w i l l be made by th e S e c r e t a r y o f th e T r e a s u r y o f th e
amount and p r i c e ra n g e o f a c c e p te d b i d s . T hose s u b m it t in g te n d e r s
jp-ll be a d v is e d o f th e a c c e p ta n c e o r r e j e c t i o n t h e r e o f . The
Secretary o f th e T r e a s u r y e x p r e s s l y r e s e r v e s th e r i g h t to a c c e p t
or r e je c t any o r a l l t e n d e r s , in whole o r i n p a r t , and h i s a c t i o n
ln any such r e s p e c t s h a l l be f i n a l .
S u b je c t to th e s e r e s e r v a t i o n s ,

') f
-

2

-

c o m p e titiv e t e n d e r s f o r $ 2 0 0 ,0 0 0 o r l e s s w ith o u t s t a t e d p r i c e
from any one b id d e r w i l l be a c c e p te d in f u l l a t th e a v e r a g e p r i c e
(in th ree d e c im a ls ) o f a c c e p te d c o m p e t itiv e b i d s .
S e t t le m e n t f o r
accepted t e n d e r s in a c c o rd a n c e w ith th e b id s m ust be made o r
completed a t th e F e d e r a l R e se rv e Bank in c a sh o r o th e r im m e d ia te ly
av ailab le fu n d s on O cto b e r 8 , 1 9 5 2 , p r o v id e d , h ow ever, any
q u a lifie d d e p o s i t a r y w i l l be p e r m itte d to make paym ent by c r e d i t
in i t s T r e a su r y Tax and Loan A ccoun t f o r T r e a s u r y b i l l s a l l o t t e d
to i t f o r i t s e l f and i t s c u sto m e rs up to any amount f o r which i t
sh all be q u a l i f i e d in e x c e s s o f e x i s t i n g d e p o s i t s when so n o t i f i e d
by the F e d e r a l R e se rv e Bank o f i t s D i s t r i c t .
n o n -

The income d e r iv e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t o r
gain from th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l n o t
have any e x e m p tio n , a s su c h , and l o s s from th e s a l e o r o th e r
d isp o s itio n o f T r e a s u r y b i l l s s h a l l n o t h ave any s p e c i a l tr e a tm e n t,
as such, un der th e I n t e r n a l Revenue Code, o r law s am en d ato ry o r
supplementary t h e r e t o . The b i l l s s h a l l be s u b j e c t t o e s t a t e ,
in h eritan ce, g i f t o r o th e r e x c i s e t a x e s , w h eth er F e d e r a l o r
State, bu t s h a l l be exem pt from a l l t a x a t i o n now o r h e r e a f t e r
imposed on th e p r i n c i p a l o r i n t e r e s t t h e r e o f by any S t a t e , o r any
of the p o s s e s s i o n s o f th e U n ite d S t a t e s , o r by any l o c a l t a x i n g
au th o rity . F o r p u r p o s e s o f t a x a t i o n th e amount o f d is c o u n t a t *
which T r e a su r y b i l l s a r e o r i g i n a l l y s o l d by th e U n ite d S t a t e s s h a l l
be c o n sid e re d to be i n t e r e s t . Under S e c t io n s 42 and 117 ( a ) ( l )
of the I n t e r n a l Revenue Code, a s amended by S e c t i o n 1 1 5 o f th e
Revenue A ct o f 1 9 4 1 , th e amount o f d is c o u n t a t which b i l l s i s s u e d
hereunder a r e s o l d s h a l l n o t be c o n s id e r e d to a c c r u e u n t i l su ch
b ills s h a l l be s o l d , redeem ed o r o th e r w ise d is p o s e d o f , and such
b ills ^ a r e e x c lu d e d from c o n s i d e r a t i o n a s c a p i t a l a s s e t s .
A ccordingly, th e owner o f T r e a s u r y b i l l s ( o t h e r th an l i f e in s u r a n c e
companies) i s s u e d h e re u n d e r need in c lu d e i n h i s incom e t a x r e t u r n
only the d i f f e r e n c e betw een th e p r i c e p a id f o r su ch b i l l s , w hether
on o r i g i n a l i s s u e o r on su b se q u e n t p u r c h a s e , and th e amount
a c tu a lly r e c e iv e d e i t h e r upon s a l e o r re d e m p tio n a t m a t u r i t y , o r
tne amount o f income o r p r o f i t s t a x e s p a id by means o f th e b i l l s ,
during1 th e t a x a b l e y e a r f o r which th e r e t u r n i s m ade, a s o r d in a r y
gain or l o s s .
Tr< ^su r y D epartm en t C i r c u l a r ïïo . 4 l 8 ,

a s am ended, and t h i s
n o tice, p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and g o v e rn th e
co n dition s o f t h e i r i s s u e .
C o p ie s o f th e c i r c u l a r may be o b ta in e d
irom any F e d e r a l R e se rv e Bank o r B ra n c h ,

oOo

encouragement to other similar
endeavors throughout the Nation.
And of all of you, I shall warmly
oherish the heartening recollecti
'

-

' '

,

;

;

t

of your unwavering support and
fr isneigh ia .

-\

ingenu ity

nee in the debt management
ield ; to Chairman Fred Hagemann
the United
¿ofiffintta© for
w Us M w

ve eff

21 V

ones

tirino and

in the promotion

of thrift; to Chairman Edgar
Johnson and the Committee or
Federal Depository Functions and
Fiscal Procedures for their able
uggestions and assistance in
handling the heavy volume of
Treasury-banking transactions;

the devotion to high purpose which
have characterized this country in
the past, I have no doubt of the
outcome.

Aggression will be stopped,

fhe traditions of freedom and justice
which are the legacy of western
civilization will be preserved for
future generations.
3; j# .

11||

||

In closing, gentlemen, I want
f

to thank the many members of your
:! .'</‘
II ' I*|:y\•"

*<%«<rc»*tiftn .who individually and
.:1'i

"••

collectively have given so generously

supporting a military establishment
of 3-1/2 million men, building
production adequate for an all-out
war emergency, if it should come,
and extending necessary aid to our
allies in our mutual struggle
against communist aggression.
These achievements are most
impressive,

if we continue to make

full use of the material resources,
fife ti ©odom of inventive w

and

us, both on the domestic and on the
international fronts.

But at the

same time, ws can derive new
resolution fro» the record of our
accomplishments in the brief years
since the close of World War II.
It is of overwhelming significance
that our Nation has come out of
this period strong enough to
maintain a healthy and growing
economy while producing the material
for our immediate defense needs.

it finally arrives.

There have

been many new development® in the
record of partnership betweerf
banking and business in this country
during recent years, and I am sure
that your own era of expanded service
and of greater efficiency of
operation is only in its beginning
stages.
I have dwelt on the strong .
features of our economy today,

prosperity could provide the
basis tor a strong forward
movement when defense production
eases off.

The peacetime markets

existing in this country alone
are almost limitless; and American
business has already proved that
it is well aware of the opportumtIts
which this situation provides.
As bankers» you will play an
important part in our post-defense
economy when -- as we all hope --

/>"<jiKS'pV
w ..a

**

¿O

"•

postwar otífíod, i# slackening

increased taxes —

high

enaujh to provide strong
incentive® far development
and promotion pro rams.
The result is that mass
consumpt ior», together
with greatly increased
productivity« has raised our
national standard- of living
substantially above
prewar levels.

to foretell the future, particularly
in vit* :i1 the m a n y imponderables
in the iintern«tional situation.
I do not think it is harmful to
take a 'look at the factor®/which
e responsible Ifor our present
oaaic prosperity.
Outstanding is the broad
distribution of income.
People have.the money to
buy; and business has
enioyed profits

even after

But

■m

Jjf4

*

anxiety, we must conclude that
we have all fared far better than
we could have foretold in 1346.
This is. of course,
reminiscing.'

lit what we are

really concerned with always is
what will happen in the future,
aether we can maintain our high
level economy is the real question
before us today.

It is, without

doubt, a dangerous indulgence to ait##

over If-Mf; billion.

And the

government security holdings of
the commercial banking system
had been reduced by #24 billion.
Curing the present fiseal
year, however, our national
security expenditures have
necessarily increased, and we
again face deficit financing.
This course of action was

20

expenditures of our security and
defense programs changed the financin
outlook.
During the six years ending
June 30, 1352, in fact, the
Sovernment’
s finances were better
than balanced.

This occurred despite

the increase in expenditures following
the communist invasion of Korea,
in this six year period, there
was a net budget surplus of
t

fact that a debt of the present
magnitude can be managed
successfully.

Debt management

operations of vast proportions
can be conducted without setting
off harmful repercussions in
¡88f

the economy. Substantial
reductions were made in the
wartime total of the debt, bringing
it down from $270 billion in June
1946 to $255 billion in early 1950,
just before the rising

“17 of the greatly enlarged personal
services to customers, the banks
have naturally experienced a
substantial increase in operating
expenses.

Yerthe truth of the matter

is, that after absorbing these
r/

additional costs and the increased
taxes made necessary by our stepped-up
defense program following the
communist invasion of Korea, it is
estimated that the

^

^

^ ®

taxes, of all insured commercial

tlits tremendous volume of
government business which flows
into and out of the banking
system.
In handling the expanded
volume of business incident
to the growth in national
production and income, taking
care of the greatly expanded
deposits, servicing the increased
loan portfolio, and taking care

banking system.

The vastly

inereased financial services
necessitated by expanding
business and widening markets
he

have been
highest degree of #f
t no sk

n 8

1.

fit%

P m *i

a commendable
O& tftS*

Ih Is

personal

e

7-9
b a s t «4»

o w i s a i e

,

g

«

m.

|p|

3

1x years, Amor icafi tnoenuity
a O

u

e n

o a a n

ftitii

■@w 8 farmhouses of resources -

nown If yrinlvtlfe»i hi the
€
i.

it before world
y d&y -- we fii

e v a rv hour --

SI

rI m
a
I# m

S

I

PtMlfl
i iwA• ] . M l ,V

w

w

i bei ieve
opinion among bankers is that
considerable success has been
chieved in those three wain
areas
re that I need not
recount to an audience as well
informed as the present one the
success experienced in the area
of bus inti t readjustment following
the war.

Among the significant

economic developments of the

p

0

p

60 percent of all outstanding debt,
public and private.

There was no

way of predicting what would
happen to Government security holding1
when private business and investment
pro rams began to take hold.

There

were no guides from the past to
tell us how the problems of debt
management could best be
handled.

Under these

circumstances, could we possibly
steer clear of the obvious dangers?

f" T i’
K
J*,Xiw |I

1

ft

•«**

.*«*

step-by-step -- ii©n aocomplished
with conspicuous success.
Let us recall for a moment
some of the problems which
were the subject of genuine

concern in 1946.

We might single

out three, in parti cular, which
were in the forefront of many
of our discussions at the time of
your Association meeting in
that year,
The first and most serious,

— r re

3

IH
ana

%

fri o n d a .

1 |S

f »e 1 1n0

¿sciape flap w ith tnc yatr $.

vs

ut n

vali

%fi4 #•
I #& f& tt*fIl
f> f| W11
>'•'fi
i i w

ary hi g
»

i

h$É

ta

oy

in

f i # #t

with

ma n n p
■
-vi* S i

a n .

in

# i;lìtr# » ta ai scusa

arabisras.

s p a r a c i « t|

thè cooperative spirit
é .v

i h iu h
m o

m e a t »

&a o a r a & c h a

a f i CI t Ti a

|l*

par so tisi f r icnash ip 3 whioh bave

iltaci fra® th»»/

f#**.é&lm>:i_
| f 3(1

p«rt of the Nation's financial and
economic life,

Ii m b !' everyone

is aware of the indispensable need
for sound banicing, to aid in the
progress of the national economy and
advance the welfare of the country
and our people.
when 1 first addressed your
annual convention in 1946, I
expressed the pleasure which I
•felt in being among colleagues

i ri ri ti a

The follow ing addrews by Secretary Snyder before the
annual convention of the American Bankers Association
in Convention i a l l f A tlan tic C ity , N .J ., i s scheduled
fo r d eliv ery at 10 A.M* EST Tuesday, September 30,
1952, and is fo r re le a se a t that time«

......... ...................----------------------------------------

s- s m

<

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder before the
annual convention of the American Bankers Association
in Convention Hall, Atlantic City, N.J., is scheduled
for delivery at 10 A.M. EST Tuesday, September 30,
1 9$2s and is for release at that time.
"
It is a real privilege to be here with you at this annual convention
of the American Bankers Association* This is the sixth time I have been
your guest at your annual gathering since I became Secretary of the
Treasury. Each time, I have looked forward with keen anticipation to
this event* You, and the banking institutions you represent, constitute
a very important part of the Nation*s financial and economic life.
Almost everyone is aware of the indispensable need for sound banking,
to aid in the progress of the national economy and advance the welfare
of the country and our people*
When I first addressed your annual convention in 19l|6, I e;xpressed
the pleasure which I felt in being among colleagues and friends*
This feeling has deepened with the years# I value very highly the
opportunities which I have had to meet with many of you in Washington,
and elsewhere, to discuss our mutual problems* I greatly appreciate the
cooperative spirit in which you have approached these meetings, and the
many personal friendships which have resulted from them.
Our country has had to face many difficult problems in these past
six years# When we view the period as a whole, however, I believe that
we can all share a sense of very real accomplishment*. There may be
differences of opinion as to particular actions which were taken at
particular times. But the fundamental tasks which loomed so large then,
have —• step-by-step -- been accomplished with conspicuous success#
. Let us recall for a moment some of
subject of genuine concern in 19W># We
particular, which were in the forefront
the time of your Association meeting in

the problems which were the
might single out three, in
of many of our discussions at
that year.

The first and most serious, of course, was the question of business
readjustment* War production had been cut back severely. The military
budget was slashed and millions.of citizens recently in the Armed Services
were reentering civilian life* Every other large-scale war in our
history had been followed by widespread unemployment and economic
islocation* Would we be able to avoid a major depression this time?
S-3179

Ì

f

-

2

-

There were very few, in the fall of 191+6, who would have been willing
to give a strongly positive answer to that question*
A second matter particularly concerned you, as bankers* Would the
commercial banks of the country be able to perform their necessary peace­
time functions, and maintain profitable operations, in view of their
large holdings of Government securities, and the uncertainties of the
business outlook? Here, again, the prospects were far from clear*
Finally, there were many doubts as to whether we would be able to
manage our huge Government debt successfully. In June 191+6, the public
debt amounted to $270 billion* It represented 60 percent of all out­
standing debt, public and private* There was no way of predicting what
would happen to Government security holdings when private business and
investment programs began to take hold* There were no guides from the
past to tell us how the problems of debt management could best be handled*
Under these circumstances, could we possibly steer clear of the obvious
dangers?
I believe the majority opinion among bankers is that considerable
success has been achieved in those three main areas*
I am sure that I need not recount to an audience as well informed
as the present one the success experienced in the area of business
readjustment following the war* Among the significant economic developments
of the past six years, however, I should like to single out one in
particular.
That is the fact that we have been able to achieve an economic
climate favorable not only to a high level of current activity, but also
to a very large volume of long-term investment* It is extremely
significant that private industry has invested over $l6o billion in new
plant and equipment in that relatively brief period. This dynamic
expansion increased manufacturing capacity by f>0 per cent, steel capacity
by 2o percent, electric power capacity by 5>0 percent, and petroleum
capacity by 63 percent*
Our farms are producing food, fiber, and livestock in quantities which
were thought impossible a few years ago*
Yet the figures tell only a part of the story* In the past six years,
American ingenuity has been opening up tremendous new storehouses of
resources — unknown or undeveloped in the years before World War II*
Every day — we might almost say, every hour — the stream of materials
available to American industry and agriculture is being broadened and
altered by discovery, by development, and by the constant push of
American enterprise*

- 3 —

w91i. Q

Among the important factors which have contributed to the remarkable
upsurge of American business in the postwar period has been the performance
of your own institutions of the banking system. The vastly increased
financial services necessitated by expanding business and widening markets
have been handled with the highest degree of efficiency and skill. The
banks have done a commendable job — and I say this on the basis of
personal knowledge — for many of your duties have involved the tremendous
volume of Government business which flows into and out of the banking
system.
In handling the expanded volume of business incident to the growth
in national production and income, taking care of the greatly expanded
deposits, servicing the increased loan portfolio, and taking care of the
greatly enlarged personal services to customers, the banks have naturally
experienced a substantial increase in operating expenses. Yet the truth
of the matter is, that after absorbing these additional costs and the
increased taxes made necessary by our stepped-up defense program following
the communist invasion of Korea, it is estimated that the net profits, after
taxes, of all insured commercial banks, amounted to $5 billion during the
six years ending last June 30, This is. a yearly average of over $800
million as compared with less than $i*00 million in 1939. Or expressed
another way, the rate of net profits on total capital accounts was
5.98 percent in 1939 as compared with the yearly average of 8,10 percent
in the last six years.
And now for a brief look at the remaining area of major concern six
years ago
the finances of the Government, It is now a demonstrated fact
that a debt of the present magnitude can be managed successfully. Debt
management operations of vast proportions can be conducted without setting
off harmful repercussions in the economy. Substantial reductions were made
in the wartime total of the debt, bringing it down from $270 billion in June
191*6 to $25# billion in early 1930, just before the rising expenditures of
our security and defense, programs changed the financing outlook.
During the six years ending June 30, 19!?2, in fact, the Governments
finances were better than balanced. This occurred despite the increase in
expenditures following the communist invasion of Korea. In this six year
period, there was a net budget surplus of over $3-1/2 billion. And the
Government security holdings of the commercial banking system had been
reduced by $21* billion.
During the present fiscal year, however, our national security
expenditures have necessarily increased, and we again face deficit
financing. This course of action was forced upon us by the ruthless
program of the communists for world domination.

With the fine working arrangement existing between the Treasury
and the Federal Reserve System, and with the continued staunch support
of the banking system whose cooperation the Treasury has enjoyed
throughout the postwar period, the continued successful management of
the debt, though formidable, is attainable®
Certainly we have had our ups and downs in the postwar period —
business, banking and the Treasury. But when we look in retrospect at
our experience during the past six years, with all the problems, the
trials., the moments of anxiety, we must conclude that we have all fared
far better than we could have foretold in 191*6*
This is, of course, reminiscing. But what we are really concerned
with always is what will happen in the future. Whether we can maintain
our high level economy is the real question before us today. It is,
without doubt, a dangerous indulgence to attempt to foretell the future,
particularly in view of the many imponderables in the international
situation. But I do not think it is harmful to take a look at the factors
which are responsible for our present basic prosperity.
Outstanding is the broad distribution of income. People have the
money to buyj and business has enjoyed profits — even after increased
taxes — high enough to provide strong incentives for development and
promotion programs. The result is that mass consumption, together with
greatly increased productivity, has raised our national standard of living
substantially above prewar levels.
Another strong support for business prosperity is our rapidly
growing population. In a cfcmamic economy characterized by efficient use
of resources and highly developed technical and managerial skills, a
growing population means a continually enlarging market* It means a
continually increasing demand for new houses, shopping centers, highways,
schools, municipal facilities, and consumer goods of all kinds. It means
a continual search on the part of business for new products which will
have a mass appeal.
I find no evidence that the flow of new inventions and discoveries,
which has provided such strong stimulus to our economy in the postwar
period, is slackening off.
let another factor of basic strength in our dynamic economy is the
sound financial position of both business and individuals. A significant
part of the capital funds used in the development programs of American
business during the past six years came from retained earnings. , Individuals
were able to expand their liquid assets by about |6 billion during 195>1,
reaching a total of approximately $210 billion at the end of the year.

091
- 5 These sav in g s g iv e a sen se o f s e c u r it y which p ro v id e s stro n g su p p o rt to
a high le v e l o f cu rre n t buying*

All in all, there seems no doubt but that the long-term factors
underlying our present prosperity could provide the basis for a strong
forward movement when defense production eases off* The peacetime
markets existing in this country alone are almost limitlessj and American
b u sin e ss has already proved that it is well aware of the opportunities
which this situation provides*
As bankers, you will play an important part in our post-defense
econoiry when — as we all hope — it finally arrives* There have been
many new developments in the record of partnership between banking and
business in this country during recent years, and I am sure that your own
era of expanded service and of greater efficiency of operation is only in
its beginning stages*
I have dwelt on the strong features of our economy today, rather than
on its problems, because we Americans have always been our own best critics*
When we look back over the past, we are apt to give first thought to
goals which were not completely realized, and to dangers and threats which
have not yet been eliminated*
Certainly, it is of the greatest importance today that all of us
make every effort to grapple with the serious problems which confront us,
both on the domestic and on the international fronts* But at the same
time, we can derive new resolution from the record of our accomplishments
in the brief years since the close of World War I I . It is of overwhelming
significance that our Nation has come out of this period strong enough to
maintain a healthy and growing economy while producing the material for
our immediate defense needs, supporting a military establishment of
3-1/2 million men, building production adequate for an all-out war
emergency, if it should come, and extending necessary aid to our allies in
our mutual struggle against communist aggression*
These achievements are most impressive* If we continue to make full
use of the material resources, the freedom of inventive minds, and the
devotion to high purpose which have characterized this country in the
Past, I have no doubt of the outcome* Aggression will be stopped* The
traditions of freedom and justice which are the legacy of western civiliza­
tion will be preserved for future generations©
In closing, gentlemen, I want to thank the many members of your
Association who individually and collectively have given so generously of
your time and talents to the Treasury during my six years1 service as
Secretary of that Department* Your advice, your counsel, and your active
cooperation have been continually helpful*

OOO

Cdti

-

6

-

I particularly want to express my sincere appreciation to
Chairman Robert Fleming and the Government Borrowing Committee for patient,
constructive and understanding assistance in the debt management field;
to Chairman Fred Hagemann and the United States Savings Bonds Committee
for their untiring and productive efforts in the promotion of thrift; to
Chairman Edgar Johnson and the Committee on Federal Depository Functions
and Fiscal Procedures for their able suggestions and assistance in handling
the heavy volume of Treasury-banking transactions; and finally, I want to
pay a sincere and deserved tribute to Dr. Harold Stonier for his inspired
leadership, his unfailing ingenuity, and his continued counsel and
cooperation in matters arising between the banking fraternity and the
Treasury Department and for his exceptional zeal and skill in developing
the American Institute of Banking, the Rutgers Graduate School of Banking,
and his encouragement to other similar endeavors throughout the Nation*
And of all of you, I shall warmly cherish the heartening recollection of
your unwavering support and friendship#

0 O0

RKTJABB HCBSIBQ KEWSPAPStS,

O/f«

Tuesday» September 30> 1952

The S e c r e t a r y o f th e T r e a s u r y an n o u n ced l a s t e v e n in g t h a t th e t e n d e r s f o r
$ 1 ,2 0 0 ,0 0 0 ,0 0 0 * o r t h e r e a b o u t s , o f 9 2 - d a y T r e a s u r y b i l l s

t o b e d a t e d O cto b e r 2 , 1952,

a n d t o m a tu re J a n u a r y 2 » 1 9 5 3 , w h ic h w e re o f f e r e d o n S e p te m b e r 25# w e re / opened a t the
F e d e r a l R e se rv e B an k s

o n

/S e p te m b e r 2 9 *

The d e t a i l s o f t h i s is s u e a r e a s fo llo w s t
T o t a l a p p l i e d f o r - $ 1 ,9 1 5 » 9 2 3 ,0 0 0
t o t a l a c c e p te d
1 ,2 0 0 ,0 9 0 ,0 0 0

A v e ra g e p r i c e
R an g e

a t

-

(I n c lu d e # $ 1 9 5 ,3 6 1 ,0 0 0 e n t e r e d on a
n o n - c a a p e t it iv e b a s i s a n d a c c e p te d in
f u l l a t « b e a v e r a g e p r i c e afaoira below)
9 9 .5 5 0 / E q u iv a le n t r a t e a t d is c o u n t a p p r o x . 1 .7 6 0 )8 par am i)

a c c e p t e d c o m p e t it iv e b i d s i

Hi#
Low

9 9 .6 1 7 E q u iv a le n t r a t e o f d is c o u n t a p p r o x . 1 .1 *9 9 5 p er anna

99.5b3

*

•

*

•

»

1.788)8 *

(32 p e r c e n t o f t h e am oun t b id f o r a t t h e lo w p r i c e w a s a c c e p t e d )

F e d e r a l R e se rv e
D is t r ic t

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

B o sto n
M e m fo r k
P h ila d e lp h ia
C le v e la n d
R ichm ond
A t la n t a
C h is a g o
S t# L o u is
M in n e a p o lis
K a n s a s C it y
D a lla s
S a n F r a n c is c o

i

TOTAL

T o ta l
A c c e p te d

2 6 ,8 8 7 ,0 0 0
1 ,2 7 8 ,5 3 5 ,0 0 0
2 5 ,1 0 2 ,0 0 0
3 0 ,2 5 5 ,0 0 0
2 1 ,0 3 8 ,0 0 0
2 6 ,6 6 0 ,0 0 0
2 5 0 ,3 3 1 *,0 0 0
3 5 ,7 8 9 ,0 0 0
1 5 ,6 1 3 ,0 0 0
h S ,5 5 0 ,0 0 0
5 8 ,1 1 (6 ,0 0 0
1 0 2 ,0 1 9 ,0 0 0

2 6 .8 8 7 .0 0 0
5 9 6 ,0 8 5 ,0 0 0

$ 1 ,9 1 5 ,9 2 8 ,0 0 0

$ 1 ,2 0 0 ,0 9 0 ,0 0 0

10.102.000

2 9 .2 5 5 .0 0 0
2 1 .0 3 8 .0 0 0
2 6 .6 6 0 .0 0 0
2 1 (0 ,2 8 1 ,0 0 0
3 3 ,8 1 (1 ,0 0 0
1 5 ,6 1 3 ,0 0 0
1*5 ,200,00 0
58, 11(6,000

9 6 .9 7 9 .0 0 Q

"

treasury

department
W ASHINGTON, D .C

Information Service

324
^release

morning n e w s p a p e r s ,

Tuesday, Sep tem ber 3 0 ,

S -3 1 8 0

1952.

Th© S e c r e t a r y o f th e T r e a s u r y announced. l a s t e v e n in g t h a t th e
tenders f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 2 -d a y T r e a s u r y b i l l s
to be d ated O ctob er 2 , 1 9 5 2 , and to m atu re J a n u a r y 2 , 1 9 5 3 , which
[were o ffe r e d on Sep tem b er 2 5 , w ere opened a t th e F e d e r a l R e se rv e
Banks on Septem ber 2 9 .
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
’o t a l a p p l ie d f o r - $ 1 , 9 1 5 ?9 28 ,0 0 0
20 0 , 090,000 ( i n c l u d e s $ 1 9 5 , 3 8 1,0 0 0
T o tal a c c e p te d
e n te r e d on a n o n - c o m p e titiv e
b a s i s and a c c e p t e d in f u l l
a t t h e .a v e r a g e p r i c e shown
b elo w )
9
9
.
550
/
E
q
u
iv
a
le
n
t r a t e o f d is c o u n t a p p r o x .
Average price
1 . 760$ p e r annum
Range o f a c c e p te d c o m p e t itiv e b i d s :
High

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

Low

ra te
. 499$
ra te
. 788$

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

(32 percen t o f th e amount b id f o r a t th e low p r i c e was a c c e p t e d )
Federal Reserve
District

$
2 6 , 887,0 0 0
•: 1 ,2 7 8 ,5 3 5 ,0 0 0
2 5 , 10 2 ,0 0 0
3 0 , 2 5 5 ,0 0 0
2 1 , 0 38 ,000
2 6 , 660,000
2 5 0 ,3 3 4 ,0 0 0
3 5 ,7 8 9 ,0 0 0
1 5 , 6 13 ,0 0 0
4 5 , 5 50 ,0 0 0
5 8 , 14 6 ,0 0 0
1 0 2 ,0 1 9 ,0 0 0

Boston
Few York
Bhilade India
Cleveland
¡Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Pallas
Ban Francisco
TOTAL

Total
Accepted

Total
A p p l i e d for

$1 , 9 1 5 , 9 28 ,0 0 0
0O0

$

2 6 , 88 7,0 0 0
5 9 6 , 0 85,000
1 0 , 10 2 ,0 0 0
2 9 ,2 5 5 ,0 0 0
2 1 , 038 ,0 0 0
2 6 , 660,000
2 4 0 ,2 8 4 ,0 0 0
3 3 ,8 4 1 ,0 0 0
1 5 , 6 13 ,0 0 0
4 5 ,2 0 0 ,0 0 0
5 8 ,1 4 6 ,0 0 0
9 6 ,9 7 9 ,0 0 0

$1 , 20 0 , 090,000

cu

mmun mmm,

Tuesday# September 30» 19^2«
T he S e c r e t a r y o f t h e T r e a s u r y to d a y an n o u n c ed t h e s u b s c r i p t i o n an d
a llo t m e n t f i g u r e s w ith r e s p e c t t o t h e c u r r e n t o f f e r i n g o f 2 - 1 / 8 p e r c e n t
T r e a s u r y n o t e s o f S e r i e s A -1 9 $ 3 # t o b e d a t e d O c to b e r 1# 1 9 5 2 «
S u b s c r i p t i o n s an d a l lo t m e n t s w e re d iv id e d am ong t h e s e v e r a l F e d e r a l
R e se rv e D i s t r i c t s an d th e T r e a su r y a s fo llo w s *
T o t a l S u b s c r ip t io n s
R e c e iv e d a n d A l l o t t e d

F e d e r a l R e se rv e
D is t r ic t

I

B o s to n
Hew f o r k
P h ila d e lp h ia
C le v e la n d
R ich m on d
A t la n t a
C h ic a g o
S t * L o u is
M in n e a p o lis
K a n s a s C it y
D a lla s
S a n F r a n c is c o
T re a su ry

7 6 *1 7 3 *0 0 0
8 ,7 1 3 ,3 5 0 ,0 0 0

108, 215,000
1 7 9 ,8 7 1 ,0 0 0

8U,125,000

.

1 2 5 .7 7 3 .0 0 0

502 603 .0 0 0
1 1 7 ,8 1 *9 ,0 0 0

101,1)68,000
1 8 8 ,U à , 0 0 0

,

135,361»,000
166 833,000
1)2,960,000
T o rn .

8 1 0 ,5 1 ) 2 ,5 3 3 ,0 0 0

TREASURY DEPARTMENT

IMMEDIATE RELEASE,
Tuesday . Sep tem b er 30» 1952 .
The S e c r e t a r y o f th e T r e a s u r y to d a y announced th e
s u b s c r ip t io n and a llo t m e n t f i g u r e s w ith r e s p e c t to th e c u r r e n t
o ffe r in g o f 2 - 1 / 8 p e r c e n t T r e a s u r y N o te s o f S e r i e s A -1 9 5 3 ,
to be d a te d O cto b e r 1, 1 9 5 2 .
S u b s c r i p t i o n s and a l l o t m e n t s were d iv id e d among th e s e v e r a l
F e d e r a l R e se r v e D i s t r i c t s and th e T r e a s u r y a s f o l l o w s :

F e d e r a l R e se r v e
D istr ic t

T o ta l S u b sc rip tio n s
R e c e iv e d and A l l o t t e d

B o sto n
New Y ork
P h il a d e lp h ia
C le v e la n d
Richmond
A tla n ta
C h icag o
S t . L o u is
M in n e a p o lis
K a n sa s C ity
D a lla s
San F r a n c i s c o
T reasu ry

$

7 6 ,1 7 8 , 0 0 0

8,713,150,000
108.215.000
179.871.000
8 4 ,1 2 5 ,0 0 0

125.773.000
502.603.000
1 1 7 .8 4 9 .0 0 0
1 0 1 .4 6 8 .0 0 0
1 8 8 .1 4 4 .0 0 0
1 3 5 .3 6 4 .0 0 0

166.
833.000
_42.960.000
$ 1 0 ,5 4 2 ,5 3 3 ,0 0 0

TOTAL

0O0

- 3 -

fftx
s u b je c t to e s t a t e ,

i n h e r i t a n c e , g i f t o r o t h e r e x c i s e t a x e s , w h e th e r

F e d e r a l o r S t a t e , b u t s h a l l b e ex em p t fro m a l l t a x a t i o n now o r h e r e a f t e r
im p o se d on t h e p r i n c i p a l o r i n t e r e s t t h e r e o f b y a n y S t a t e , o r an y o f the
p o s s e s s i o n s o f t h e U n it e d S t a t e s ,

o r b y an y l o c a l t a x in g a u t h o r ity .

For

p u r p o s e s o f t a x a t i o n t h e am ount o f d i s c o u n t a t w h ich T r e a s u r y b i l l s are
o r i g i n a l l y s o l d b y t h e U n it e d S t a t e s s h a l l b e c o n s i d e r e d t o b e i n t e r e s t .
U n d er S e c t i o n s

hZ

an d 117 ( a )

( 1 ) o f t h e I n t e r n a l R ev en u e C o d e , a s

am ended b y S e c t i o n llf> o f t h e R ev en u e A c t o f 1 9 U l, t h e am ount o f d isco u n t
a t w h ic h b i l l s

i s s u e d h e r e u n d e r a r e s o l d s h a l l n o t b e c o n s i d e r e d to

a c c r u e u n t i l su c h b i l l s

s h a l l b e s o l d , re d e e m e d o r o t h e r w i s e d i s p o s e d o f,

a n d su c h b i l l s a r e e x c lu d e d fro m c o n s i d e r a t i o n a s c a p i t a l a s s e t s .
i n g l y , t h e ow ner o f T r e a s u r y b i l l s

(o th e r th an l i f e

Accord­

i n s u r a n c e com pan ies)

i s s u e d h e r e u n d e r n e e d in c l u d e i n h i s in co m e t a x r e t u r n o n l y t h e d iffe r e n c e
b e tw e e n t h e p r i c e p a i d f o r s u c h b i l l s , w h e th e r on o r i g i n a l i s s u e o r on
s u b s e q u e n t p u r c h a s e , an d t h e am ount a c t u a l l y r e c e i v e d e i t h e r u pon s a l e
o r r e d e m p tio n a t m a t u r i t y d u r in g t h e t a x a b l e y e a r f o r w h ic h t h e r e t u r n
i s m ad e , a s o r d i n a r y g a i n o r l o s s .

T reasu ry Department C ir c u la r No. iil8 , a s amended, and t h i s notice,
p r e sc r ib e the term s o f the T reasu ry b i l l s and govern the co n d itio n s of
t h e ir is s u e .

Copies o f the c i r c u l a r may be o b tain ed from any Federal

R eserve Bank or Branch.

-

dealers in investment securities.

2

-

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 e'xpress 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

October

^952

, in cash or other immediately available

funds or in a like face amount of Treasury bills maturing October
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
thé 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 net have any special treatment, as such, under the Internal Revenue
Code, or laws amendatory or supplementary thereto,

The bills shall be

*

TREASURY DEPARTMENT
W a sh in g to n

3/f ^

FOR RELEASE, MORNING NEWSPAPERS

Thursday, October 2, 1952_____

The S e c r e t a r y o f t h e T r e a s u r y , b y t h i s p u b l i c n o t i c e , i n v i t e s te n d e rs
f o r $ 1 ,^ 0 0 ,0 0 0 ,0 0 0

, o r th e re a b o u ts, o f

91

-d a y T r e a s u r y b i l l s , fo r

c a s h an d i n e x c h a n g e f o r T r e a s u r y b i l l s m a t u r in g
t h e am ount o f $ 1 , ^ 0 0 , 3 6 8 » 0 0 0

O cto b e r 9 , 1952

, t o b e i s s u e d on a d i s c o u n t b a s i s u n d er

c o m p e t i t i v e an d n o n - c o m p e t it iv e b i d d i n g a s h e r e i n a f t e r p r o v i d e d .
o f t h i s s e r i e s w i l l b e d a te d

January 8, 1953

, in

O cto b e r

9,

The b i l l s

1 9 5 2 _________ , an d w i l l m atu re

5®
, when t h e f a c e am ount w i l l b e p a y a b l e w ith o u t in -

m
te re st.

T h ey w i l l b e i s s u e d i n b e a r e r fo rm o n l y , an d i n d e n o m in a tio n s o f

T e n d e r s w i l l b e r e c e i v e d a t F e d e r a l R e s e r v e B a n k s an d B r a n c h e s up to the
c l o s i n g h o u r , two o ^ l o c k p . m . , E a s t e r n S t a n d a r d t i m e ,

Monday, October 6,

T e n d e r s w i l l n o t b e r e c e i v e d a t t h e T r e a s u r y D e p a r tm e n t, W a sh in g to n .

1952.

Each

t e n d e r m u st b e f o r a n e v e n m u l t i p l e o f $ 1 , 0 0 0 , an d i n t h e c a s e o f co m p e ti­
t i v e t e n d e r s t h e p r i c e o f f e r e d m u st b e e x p r e s s e d on t h e b a s i s o f 1 0 0 , w ith
n o t m ore t h a n t h r e e d e c i m a l s , e . g . ,

9 9 .9 2 5 .

F r a c t i o n s m ay n o t b e u s e d .

I t i s u r g e d t h a t t e n d e r s b e made on t h e p r i n t e d fo r m s an d fo r w a r d e d in the
s p e c i a l e n v e l o p e s w h ich w i l l b e s u p p l i e d b y F e d e r a l R e s e r v e B a n k s o r Branches
on a p p l i c a t i o n t h e r e f o r .
O th e r s t h a n b a n k in g i n s t i t u t i o n s w i l l n o t b e p e r m i t t e d t o
e x c e p t f o r t h e i r own a c c o u n t .

su b m it tenders

T e n d e r s w i l l b e r e c e i v e d w it h o u t d e p o s i t from

i n c o r p o r a t e d b a n k s an d t r u s t c o m p a n ie s a n d fro m r e s p o n s i b l e a n d r e c o g n iz e d

330
RELEASE MORNING NEWSPAPERS,
Thursday, October 2, 1 9 5 2 .

S -3 1 8 2

Tenders w i l l be received at F e d eral Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., E a s t e r n Standard time,
Monday, October 6, 1952.
Tenders w ill not be r e ceived at the
Treasury Department, Washington.
B a c h tender must be for a n e v e n
multiple of $1,000, and in the case of competitive tenders the price
offered must be e x pressed on the basis of 100, w i t h not more than
three decimals, e. g., 99.9-25*
Fractions m a y not be used.
It is
urged that tenders be made on the printed forms and f o r w a r d e d .in the
special envelopes w h ich will be supplied by F e d e r a l R e s e r v e Banks or
Branches on a p p l i c a t i o n therefor.
Others than b a n k i n g institutions w i l l not be p e r m i t t e d to submit
tenders except for their own account.
Tenders w i l l be r eceived
without deposit from incorporated banks and trust companies, and from
responsible and recognized dealers in investment s e c u r i t i e s . Tenders
from other's must be a c c o mpanied by p a y ment of 2 p e r cent of the face
amount of Treasury bills applied for, unless the tenders are v
accompanied by a n express guarant y of payment by a n incorpo r a t e d
bank: or trust company.
Immediately after the closing hour, tenders w i l l be opened at
the Federal Reserve Banks and Branches, f o l l o w i n g w h i c h public
announcement will be made by the S e c r e t a r y of the T r e a s u r y of the
amount and price range of accepte d b i d s . Those s u b m i t t i n g tenders
bo advised of the acceptance or r e j e c t i o n thereof.
The
becrotary of the Treasury e xpress l y reserves the right to accept or
reJect any or all tenders, in whole or in part, and his a c t i o n in
anF such respect shall be f i n a l . Subject to these reservations,
^on-competitive tenders for $200,000 or less w i t h o u t stated price
370111 any one bidder will be a ccep t e d in full at the average price

2

( i n th r e e d e c im a ls ) o f a c c e p te d c o m p e t itiv e "b id s. S e ttle m e n t for
a c c e p te d t e n d e r s in a c c o rd a n c e w ith th e b id s m ust be made or
co m p leted a t th e F e d e r a l R e se rv e Bank on O ctob er 9, 1 9 5 2 , in cash or
o th e r im m e d ia te ly a v a i l a b l e .fu n d s • o r in a l i k e fa c e .a m o u n t of
T r e a s u r y . b i l l s m a tu rin g O cto b e r 9, 1 9 5 2 . C ash and exch an ge tenders
w ill r e c e iv e e q u al tre a tm e n t.
Cash a d ju s tm e n ts w i l l - b e made for
d i f f e r e n c e s betw een th e p a r v a lu e o f m a tu rin g b i l l s a c c e p te d in
ex ch an ge and th e i s s u e p r i c e o f th e new b i l l s .
The income d e r iv e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t or gain)
from th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l n o t have any]
e x e m p tio n , a s su c h , and l o s s from th e s a l e o r o th e r d i s p o s i t i o n of
T r e a s u r y b i l l s s h a l l n o t h ave any s p e c i a l tr e a t m e n t , a s su ch , under
th e I n t e r n a l Revenue Code, o r law s am en d atory o r su p p lem e n tary there­
t o . The b i l l s s h a l l be s u b j e c t to e s t a t e , i n h e r i t a n c e , g i f t or
o th e r e x c i s e t a x e s , w hether F e d e r a l o r S t a t e , b u t s h a l l be exempt
from a l l t a x a t i o n now or h e r e a f t e r im posed on th e p r i n c i p a l or
i n t e r e s t t h e r e o f by any S t a t e , o r any o f th e p o s s e s s i o n s o f the
U n ite d S t a t e s , o r by .any l o c a l t a x i n g a u t h o r i t y . F o r p u rp o ses of
t a x a t i o n th e. amount o f d is c o u n t a t .which T r e a s u r y b i l l s a r e
o r i g i n a l l y s o l d by th e U n ite d S t a t e s s h a l l be c o n s id e r e d to be
i n t e r e s t * Under S e c tio n s- 42 and 117 ( a ) ( l ) o f th e I n t e r n a l Revenue
Code, a s amended by S e c t io n 115 o f th e Revenue A ct o f 1941, the
amount o f d is c o u n t a t w hich b i l l s i s s u e d h e re u n d e r a r e s o ld sh a ll not
be c o n s id e r e d t o a c c r u e u n t i l su ch b i l l s s h a l l be s o l d , redeemed or
o th e r w ise d is p o s e d o f , and su ch b i l l s a r e e x c lu d e d from consideration
a s c a p i t a l a s s e t s . A c c o r d in g ly , th e owner o f T r e a s u r y b i l l s (other
th a n l i f e in s u r a n c e co m p an ies) i s s u e d h e re u n d e r need in c lu d e in his
incom e t a x r e t u r n o n ly th e d i f f e r e n c e betw een th e p r i c e p a id fo r
su ch b i l l s , w h eth er on o r i g i n a l i s s u e o r on su b se q u e n t p u rch ase , and
th e amount a c t u a l l y r e c e iv e d e i t h e r upon s a l e o r re d e m p tio n a t
m a t u r it y d u r in g th e t a x a b l e y e a r f o r which th e r e t u r n i s made, as
o r d in a r y g a in o r l o s s .
T r e a s u r y D epartm en t C i r c u l a r No. 4 l 8 , a s am ended, and t h is
n o t i c e , p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and govern the
c o n d it io n s o f t h e i r i s s u e .
C o p ie s o f th e c i r c u l a r may be obtained
from any F e d e r a l R e se rv e Bank o r B ran ch

oOo

accept this challenge. With them
as the future standard bearers of
this flaming beacon guiding the
way to thrift, we can have every
confidence that the torch will
alow with even greater intensity
as it lights the way for human

progress and freedom in the days

to come.

strength and have the vision to
carry it forward.
Just as our forefathers were
pioneers in opening up geographic
frontiers and the raw resources of
a new country, so today we are
pioneers in opening up new economic
frontiers through scientific
discoveries which are capable of
adding immeasurable new wealth to
our Nation and vast new opportuniti®s
for our people.

m 31

**

vital product to sell.
** can indeed taae pride in
the role that Amer ican thrift has
played in every scene of our national
progress.
m

But our pride is

justifiable only so long as past
is prologue, and our past
accomplishments sill be but a
prelude to the future that can be
ours if we recognize this great
source of individual and national

n«?w$p§p#fi which could

o f

CO
@v0fì

j r s & *to r

m » s p s p f f

serv »cas of tir

ntí

1

the news sources of the
tlìti newso9parboys ® better

- w I ÖÖ

*

2 8

~

opportuni 1 1 es tor our children, the
increased medical aids which assure
sounder health, and the added
recreational and entertainment
facilities we enjoy.
evidenced by

the

It is also

improved equipment

with which wt work, which, in turn,
enables us to produce these things
more easily and in greater abundance.
I am sure no one is more cognizant
than America*s newspaperbcys of
the effect such industrial

1 1tli"'_tl'f #ifi til fiift## ti bu iid our
great industrial empire.
■;«riat this induetrial progression
ha® meant in terms of human progressio
it evidenced in the daily lives of
millions of American® —

by such

things as the better homes in litiit
we live, the (sore nutritious food
we eat, the higher quality clothing
we wear, the fine automobiles we
drive, the advanced educational

**

i :.i§ *
III ?.'■r

As a former newspaparboy
Myself ““ siy ",ir«t business
experience c#,a# i,i a c«rrier t
the Jonesboro Tribune of Jonesboro,
Arkansas — it has given

me

a great

deal of personal satisfaction to have
the enthusiastic support of the great
Hiifrrcan nsvspaptrboy fraternity
behind

me

in

m y

efforts to direct

this national thrift enterprise.
■

It also bodes well for the future of
America that these young citizens,

- 24 Newspaperboy ¿lay —

their
i

day —

this year by again

distributing savings bonds literature
to the doorsteps of America to
call attention to the recent
improvements in the Series E liefones
Bond which makes it a better
investment than ever.

the fsonsages #f those peacetime
dr i v » 8 .

In the Opportunity Bond
Oriva of 1949, 165,000 carriers
represent»ng 327 ntpspiptri
volunteered and distributed 13-1/2
«iilion 1stfltts into ¿merican
howes.
of

In thf Independence Orivt

1950, 152,000 ctrriers

representing 345 newspapers
distributed literature into
15 i«iII ion homes.

Last year,

efforts, s o p s
li>£

ftr saving* ft i» pi word sal«
olle

arici

ISO million of

wy

IPIIil

i cice I s *

do ilare that would other*iA»

never bava been contributed
too

c .

their t art i« f |erv»ce

value o
1s

not to

be üo.iS ureo, hawever, $ imply by
dollar bales of v?vr ss vingt
gìamp« IimI the or aera they ti•%f'¿t£iè
fur war bonds, but A1§a in
listerai effect their a«r

x t%gl

States savings bonds program.

For

eleven consecutive years they have
been carrying to the doorsteps
of America the message of thri ft
and regular saving through the
purchase of United States ear,
pavings, and defense |onds »•
one of the longest sustaining
savings bonds services by a single
group on record.
«hen Pearl Harbor was
attached on December 7, 1941,

m #4%

- 15
art taking an early lead in

assuming American citizenship
responsibilities,

Newspaperboys

of almost every community have
supported public drives of
various kinds whenever asked
to do so.

A splendid example of

the effective results they
produce in civic endeavors
of this nature is one furnished
by Philadolphia’
s own newspaperboys.

-

10

-

boys who were needed to
distribute the early colonial
weeklies to 1 legion of a
half mi 11ion boys who are

§

responsible for the circulation
of ou percent of the more
than 62 million newspapers
read every day by the American
public.-'

._

The newspaperboys are the largest
junior business group in the
country and one of our largest

l o a d e r s h i p.
S Of Ä»«*
i f

n?

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U

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tnaneo, ineustry t

Fr

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in sarvi0 « to

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'üs)««u n it y a mi ftí s t i o n wa s r

i f t t r I I of Irti Amanean l e i
orfani ¿or of the alitai ty® iaß?
.I-J$5î*
I#

IS

a

il t m

» y

m§

w0a X$

l,íH I 1 I i

ff

m e r i 0 1

of ihr«ft --

r # a t exu

Ate s«rviui which %a¥m
n o w a y a p b r b o y s i

i t

t o e * y

«re

Ä jtty ©

ri t h u 3 1 ost ï e alXÿ suppor 1 1 n

b.

e r V i

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lï

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b»«

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« « n o t dttffionstrtti
1!

r,';

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turpri

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sftö t u e e y ns f t Hü q u a l i t y

iÆ
ut

âme r i ut n c»t » i « fi h i p wh i u| ì r é

thè very foundation stones
4®#iûor aoy
il » f f t

in

f» #1
r i i 11 » y

i r. ,1

issuos

of

the

.îh i a
i ir

öö-fiiiaw iif a t i ¥ *

a

upon the newspaperboys of the
country an extraordinary national
tribute —

the issuance of a

commemorative United States postage
stamp in their honor.
few individuals or groups
have attained such distinction
and few individual® or groups have
been wore deserving of such tribute.
Our newspaperboys are Young

TREASURY DEPARTMENT
W ash in g to a

The f o l l o w i n g a d d r e s s by S e c r e t a r y S n y d e r a t
th e P h il a d e lp h ia B u l l e t i n d in n e r h o n o rin g A m e ric a 's
news p a p e r b o y s , B e l l e v u e - S t r a t f ord Hot e l , P h ila d e lp h ia ,
P a . , i s s e h ed u led f p r d e l i v e r y a t

8 :0 0 P#M# EST

F r i d a y , O cto b e r 3 , 1 9 5 2 , an d i s f o r r e l e a s e a t th a t
....***'**9+
tim e «

w

1 „

•

iim
ii—
m
iiiihij.jin.

m
il

...........................■■«— —

«I

T»m

•

•

AMERICA'S NEWSPAPERBOYS - STANDARD BEARERS OF FREE ENTM

36 8
TREASURY DEPARTMENT

Washington

The following address by Secretary Snyder at the
Philadelphia Bulletin dinner honoring Americans
newspaperboys, Bellevue-Strat-ford Hotel, Philadelphia,
Pennsylvania, is scheduled for delivery at 8:00 P«M*
EST, Friday, October 37
and is for release at #
that time*
AMERICA *S NEWSPAPERSOYS » STANDARD BEARERS OF FREE ENTERPRISE
I am delighted to be here in Philadelphia for the kick-off of
National Newspaperboy Day in 1952, and to pay my respects, along with
those of an entire Nation, to the Newspaperboys of America for their
splendid record of service to community and Nation® The national
observance of Newspaperboy Day this year holds special significance,
for our Government is taking this occasion to bestow upon the newspaperboys of the country an extraordinary national tribute — the
issuance of a commemorative United States postage stamp in their honor«
Few individuals or groups have attained such distinction and few
individuals or groups have been more deserving of such tribute« Our
newspaperboys are Young America demonstrating at an early age the vigor
of free enterprise and the dynamic quality of American citizenship which
are the very foundation stones of .our democracy«
Here in Philadelphia tomorrow morning the first issues of the
commemorative stamp to America* s Newspaperboys will go on sale* There
are many reasons why the selection of your city for these ceremonies is
particularly appropriate® Philadelphia is, first of all, the birthplace
of American democracy« Philadelphia* s “
first citizen”and noted colonial
leader, Benjamin Franklin, was America*s first newspaperboy of record
and later the most famous of all our pioneering journalists« Among
Franklin* s many firsts in service to community and Nation was Postmaster
General of the American. Colonies and organizer of the postal system
eventually adopted by the United States« Ke was also America’
s great
exponent of thrift «- a public service which our newspaperboys of today
are enthusiastically supporting and a service which has: been largely
instrumental in their winning current national acclaim*
The building of our Nation from thirteen struggling colonies
to the world’
s most powerful nation in little more than a century
and a half is a story of unsurpassed human accomplishment. It is the

S-3183

WQ CV QSJ

-

2

«

romance and adventure of free men working together to give fullest
expression to individual talents and the utilization of those
talents for the mutual advancement of our people and the democratic
institutions they hold sacred*
In this magnificent drama, America*s newspaperboys have played
a vital role* They have been the messengers of a free press which
has made our people the best informed anywhere in the world* They
have been early participants themselves in business enterprise and
gained therefrom invaluable training for adult leadership* From
the ranks of American newspaperboys have come outstanding leaders
in the fields of business, finance, industry, journalism, science,
and governmental and world affairs* In fact, I venture to say
there is no American business or profession which is not distin­
guished by its famous alumni from the newspaperboys* school*
While American newspaperboys have long been serving their
Nation, at no time in our histroy have their opportunities for
service been greater than in recent years* Their ranks have grown
from a comparatively few boys who were needed to distribute the early
colonial weeklies to a legion of a half million boys who are re­
sponsible for the circulation of 80 percent of the more than £2 million
newspapers read every day by the American public*
The newspaperboys are the largest junior business group in the
country and one of our largest independent business groups — junior
or senior« It requires about 66,000 reporters, editors, printers,
and others to produce the Nation’
s newspapers but about 5>00,000
newspaperboys t© deliver the finished product* Each of these news­
paperboys learns merchandising, and many of the other fundamentals
of business activity* Each one learns the importance of accurate
service to both employer and customer, including adherence to close
timing schedules. Each one learns bookkeeping, the handling of
money, and good public relations. In addition to their regular
earnings, the boys have an opportunity to earn incentive awards
in the form of trips, merchandise and cash prizes for the production
of new business on their routes. In many instances their earnings
provide for their own clothing, books, movies, entertainment, and
college education*
Because of the efficiency and dependability of the American
newspaperboy, the importance of his service is too often taken for
granted. But for his enterprise and industry many millions of
Americans would be unable to get a daily newspaper except at con­
siderable inconvenience to themselves*

- 3 Equally important to the modern business training these boys
are getting and the vital business service they render are the
many ways in which they are taking an early lead in assuming
American citizenship responsibilities* Newspaperboys of almost
every community have supported public drives of various kinds when’
»
ever asked to do so. A splendid example of the effective results
they produce in civic endeavors of this nature is one furnisned by
Philadelphia’
s own newspaperboys* During the first Freedom Crusade
in 1950 the carriers of the Philadelphia Bulletin collected $26,000
and obtained 200,000 signatures on Freedom Scrolls in approximately
three hours time*
The best national illustration of voluntary support of public
causes by America’
s newspaperboys has been their coordinated
activities in behalf of the .United States Savings Bonds Program.
For eleven consecutive years they have been carrying to the door­
steps of America the message of thrift and regular saving through
the purchase of United States War, Savings, and Defense Bonds —
one of the longest sustaining savings bonds services by a single
group on record*
When Pearl Harbor was attacked on December 7 , 19hl> the Nation’
s
newspaperboys had already launched their Stamp Sale offensive. A
total of 939 newspapers with more than 300,000 newspaperboys, under
the auspices of the International Circulation Managers' Association,
participated in the campaign* Each week from November 19hl through
December
the boys sold and delivered Stamps to their customers*
As a result of their efforts some 180 million of 100 War Savings
Stamps were sold* They collected nickels, dimes and dollars that
would, otherwise never have been contributed to the war effort. The
value of their wartime service is not to be measured, however,
simply by dollar sales of War Savings Stamps and the orders they
took for War Bonds, but also in the collateral effect their per­
sistent efforts had in keeping the families of the Nation constantly
reminded of the need for savings throughout that crucial period in
our history*
Moreover, this national service was only the beginning of a long
and beneficial relationship, between the newspaperboys and their
Government* After the close qf their War Stamp Program, Thrift
Clubs among the newspaperboys were launched to encourage the carriers
to continue the habit of putting aside regular savings for the
purchase of United States Savings Bonds* And America’
s newspaper­
boys have been on the front line in each of the nationwide bond drives
in recent years by carrying to their customers in millions of homes
throughout our country the message of those peacetime drives*

In the Opportunity Bond Drive of 1 9 h 9 , 165,000^carriers representing
newspapers volunteered and distributed 13-1/2 million leaflets into
American homes» In the Independence Drive of 19i>0* 192*000 carriers
representing 3h% newspapers distributed literature into 1 $ million homes*
Last year^ during the Defense Bond Drive* a total of /85> newspapers and
2£c*Q00 newspaper!oys joined in making a distribution of 20 million
leaflets to their home customers*
327

And to my mind* one of the finest tributes that can be paid to the
worthwhileness of the Savings Bonds Program is that the Newspaperboys of
America are celebrating National Newspaper!oy Day
their day » this
year by again distributing Savings Bonds literature to the doorsteps of
America to call attention to the recent improvements in the Series E
Defense Bond which makes it a better investment than ever*
As a former newspaperboy myself -- my first business experience
came as a carrier for the Jonesboro Tribune of Jonesboro* Arkansas — it
has given me a great deal of personal satisfaction to have the enthusiastic
support of the great American newspaperboy fraternity behind me in my
■
efforts to direct this national thrift enterprise* It also bodes well
for the future of America that these young citizens* in whose hands our
Nation5s destiny will lie in the years to come* are already helping to
build solid foundations for the continued growth and progress of our Nation
American thrift has always been one of the great cornerstones of
our progress© I think one of the greatest inspirations we have in this
country is the knowledge that the cumulative savings of our people
through the years have provided us with the capital funds to build our
great industrial empire»
What this industrial progression has meant in terms of human
progression is evidenced in the daily lives of millions of Americans --•
by such things as the better homes in which we live* the more nutritious
food we eat* the higher quality clothing we wear* the fine automobiles
we drive* the advanced educational opportunities for our children*
the increased medical aids which assure sounder health* and the added
recreational and entertainment facilities itfe enjoy# It is also
evidenced by the improved equipment with which we work* which* in turn*
enables us to produce these things more easily and in greater abundance*
I am sure no one is more cognizant than America's newspaperboys
of the effect such industrial progress has had on their own business
enterprise* With the invention of the steam engine and railroad and the

steam-driven p r e s s , newspaper c ir c u la t io n began to sp re ad r a p id ly
from the la r g e r c i t i e s where the f i r s t newspapers were p r in te d *
This expansion meant the employment o f hundreds o f boys in sm a lle r
towns reached by the new r a i l r o a d s , to d e liv e r and s e l l th e news­
papers which co u ld be produced in g r e a te r abundance# The in t r o ­
duction o f the autom obile and the a irp la n e in j u s t t h i s cen tu ry
proved to be an even g r e a te r s t i m i a n t to newspaper c ir c u la t io n
and the demand fo r the s e r v ic e s o f the newspaper c a r r i e r boy# L ik e ­
wise the advent o f the ra d io and a world-wide communication system
widened th e news so u rce s o f th e p r e s s and gave the newspaperboys a
better and more v i t a l product to s e l l #
We can indeed tak e p rid e in the r o le th a t American t h r i f t has
played in every scene o f our n ation al, p ro g re ss# But our p rid e i s
ju s t if ia b le only so lo n g a s p a s t i s p ro lo g u e , and our p a s t accom­
plishments w ill be but a p relu d e to the fu tu re th a t can be ours
i f we reco gn ize t h is g r e a t source of in d iv id u a l and n a tio n a l stre n g th
and have the v is io n to c a rry i t forw ard.
Ju s t a s our fo r e fa t h e r s were p io n e e rs in opening up geographic
fro n tiers and the raw re so u rc e s o f a new co u n try , so today we are
pioneers in opening up new economic f r o n t i e r s through s c i e n t i f i c
d isco veries which a re cap ab le o f adding imm easurable new w ealth to
our R ation and v a s t new o p p o rtu n itie s f o r our people#
We have a lre a d y had some v ery dram atic exam ples in the postw ar
years o f how scientific d is c o v e r ie s devoted to peacetim e p u r s p it s
can enrich humanity and re v o lu tio n iz e our mode o f l i v i n g * We want
to make sure th a t to d a y ’ s s c i e n t i f i c dreams do not d ie in the t e s t
tubes. We want to make sure th a t to d a y ’ s dreams w ill a g a in be
tomorrow’ s r e a l i t i e s # And we want to make su re th a t we are going
to be ab le to enjoy them#
American t h r i f t i s our b e s t assu ran ce# For i t w i l l not only
furnish the c a p i t a l to fin a n c e th ese b o ld new ad ven tu res in American
free e n te r p r is e , but i t w ill help p ro vid e a su s ta in e d market f o r the
constantly improved goods and s e r v ic e s which we are ca p a b le o f p ro ­
ducing. E q u ally im p o rtan t, American t h r i f t w ill p ro v id e the funds to
educate our c h ild r e n and develop t h e ir t a l e n t s and s k i l l s fox' even
greater ven tu res in the fu tu re#
The ch allen g e o f America h as ever been a ch alle n g e o f b u ild in g
for the fu t u r e • I t i s a ch allen g e to our youth a s w e ll a s a ch alle n g e
to .our ad u lts# The Newspaperboys o f Am erica, by h elp in g to f u e l the
torch of f r e e e n te r p r is e through t h e ir many s e r v ic e s to t h e ir
communities and N ation , have dem onstrated t h e ir w illin g n e s s to ac ce p t
this challenge# With them a s the fu tu re sta n d a rd b e a re rs of t h is
flaming beacon g u ll d in g the way to t h r i f t , we can have every con fiden ce
that the to rch w ill glow with even g r e a te r i n t e n s it y a s i t l i g h t s the
way fo r human p ro g re ss and freedom, in the days to come#

pw ri:cw
r--

tB S M M

MS?4ímS,,
Oateter k. 1958»

t t e s e a r a ta r y o í « w T m aaorjr a m m m a d la«% « s s á s g t e a t te a te s te r a f *
1 2 ,5 0 0 ,0 0 0 ,0 0 0 , « r I w É M t ) « f T a * A n b ia ip a tia a S a r i * » 3 Ü ’*4 ajf Traaeury M il» t»

te tete»» a e te te r I * l t f t » s a l t e « a t e n M i s Ü # 1953» « A
s a p te te w t i , m

« *

oa

« p a M * t e t e » F a t e r a l t e w i Bank» an Q a te te r 3#

thm t e t e U s aC t e l a l a s o * a r a a a f o l l a « » »

T o ta l a i» s li« 4 f o r •
T atel. b a t e a d
Av arare r r lo a

„
( im l a t e a $ 2 0 0 ,8 0 0 *0 0 0 en terad « a
» » • s t e p a t l t l t » t e s i s a t e aooapud la
f n l l a t t e a « w r a g » p r is a te c a s balar)
- 99 .2 3 1 » p ii r a la n t r a t a o f d la o o te t a p a r a s . X.?8Q¿ par «w
2 ,5 0 0 ,0 9 0 ,0 0 0

H aas» o f ao o o p ted e m p a t iU m t e t e » 0¿*»#í?U n t¡ te m a t e s t e r a t e t e lt e g
99.281, »ptealsab »ate «f diaconart appro*. 1.6011 P « ana
% ¡$ $
*
•
•
«
«
1.780$ *
"

SI#

im

( 8f im r s ite « T t e a ssa w fe te d f a r a t t e a l a » p r to » * a a ae e ap te í)
l a t e r a l R e aarw
O la k te a t

T ab al

ta ta l

ROSiáOB,
fPSw
T**i
ClsWlsná
B í*ébi0®S
AtpliSIlfeB
OHS6SS6I

|

f

HW iii )>i

S ta UWá&
W S m m p & l i »

¡canaas C ity
B a ila s
San F ra a a le o o
« T il

1 3 6 ,1 8 0 ,0 0 0
1 * 6 5 9 ,3 3 3 ,« »
• M t ó .o o o
1 6 7 .8 0 9 .0 0 0
1 1 3 *8 5 8 ,0 0 0
98*960*000
3 7 6 .7 7 3 .0 0 0
7 8 ,1 9 k ,0 0 0
9 2 *9 9 8 ,0 0 0
M k ,875,000
9 0 ,0 9 5 ,0 0 0

110,870,000
1*063,058,000
83*9)8,000
118,639,000
iao ,k 5 í,o o o
9 6 ,« ,»
29b*523,000

66,666,000
7 5 ,5 9 5 ,0 »
97,175,0®
7 8 ,3 9 0 »°°°

S i 670,000

Jfiááffi

1 3 ,2 7 8 ,1 0 5 ,0 0 0

«2,500,090,000

newspapers,
.Saturday, October 4 , 1 9 5 2 ,

release m o o t i n g

S -3184

The Secretary of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 2 , 5 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of Tax A n t i c i p a t i o n
Series l6l-day T r e a s u r y bills to be dated October 8, 1 9 5 2 , and to
mature March 1 8 , 1 9 5 3 , w h i c h were offered on S e p t ember 2 6 , were
opened at the Federal Reserve Banks on October 3 .
The details of this issue are as follows:
Total applied for - $ 3 ,2 7 8 , 1 0 5 , 0 0 0
Total accepted
- 2 , 5 0 0 , 0 9 0 , 0 0 0 (includes ^ 2 0 0 ,8 0 0 , 0 0 0
e n t ered on a n o n - c o m p e t i ti v e
basis and a c c e p t e d in full
at the average price shown
below)
Average Price
- 9 9 , 2 3 1 E q u i v a l e n t rate of d i scount approx,
1.720$ per ann u m

Range of accepted competitive bids:

(Excepting three tenders
t o t a l i n g $1,270,000)

- 9 9 , 2 8 4 E q u i v a l e n t rate of discount approx,
1,601$ per a n n u m
Low
- 9 9 . 2 0 4 E q u i v a l e n t rate of d i scount approx.
1.780$ per a n n u m
(85 percent of the amount bid for at the low price was accepted)
High.

Total
A p p l i e d for

Federal R eserve
D istrict
Boston
New York
Philadelphia
Cleveland

$

Richmond

Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
San F ran cisco
TOTAL

116,180, 000
1 ,6 5 9 ,3 3 3 ,000
88,663, 000
167,509, 000
111,858, 000
98,960, 000
3 7 6 ,7 7 3 ,000
7 8 ,1 9 4 ,000
8 2 ,9 9 5 ,000
1 0 4 ,8 7 5 ,000
9 0 , 0 9 5 ,000
302,670, 000

TO s,2 7 8 ,1 0 5 , 000
0O0

T o tal
Accepted
$

110,870,000

1 i,063,058,000
83,938,00»

1 4 8 ,6 3 9 , 0 0 0
100,458,000
96,985,000
2 9 4 ,5 2 3 , 0 0 0
6 6 ,6 6 4 , 0 0 0
7 5 ,5 9 5 , 0 0 0
97,375,000
78,390,000
2 8 3 ,5 9 5 , 0 0 0
$2.,500,090,000

- 43
their many services to their
communities and Nation, have
demonstrated their willingness to
accept this challenge.

With them

as the future standard bearers of
this flamina beacon
to thrift, we can have every
confidence that the torch will glow
with even greater intensity as it
lights the way for human progress
and freedom in the days to come.

important, .Americanthrift will
provide the fund# to educate our
children and develop their talents
and skill® for even greater ventures
in the future.
The challenge of America
has ever been a challenge of building
for the future.

It is a challenge

to our youth as well as a challenge
to our adults.

The Newepaperboye

of #t»s«fiea, by helping to fuel the
torch of free enterprise through

States savings bonds by 14 percent
Savings accounts in commercial
banks, mutual savings, postal
savings, and savings and loan
associations show a total gain
of 44 percent, and individual
investment in life insurance has
increased by 55 percent since 1945
The widespread practice of t hr ift

■$0?f

years.

«1 til this huge reservoir*

of savings hack of them, our
people had the courage to spend
freely fro® their current inco&es
for the new goods and services
which industry and business were
turning out in increasing amounts.
At the • » # time our people
have continued to build their
financial reserves.

Since the

close of 1!i§» individuals have
increased their ownership of United

1

I|||

I I I
I§
■’ ''

or

Q

1 | , | 11 |

I I■*•

.

33

energies toward peacetime building.
Faith in our future potenti»11 ties
it one of the strongest traits of
our A«trican character, and I
think no finer expression of
this faith can be found than in
the record expansion program that
business and industry has carried
out in recent years.

Private

business went ahead In the postwar
period and up to the time of the

-w
ife-

follow on the heels of a highly
expanded wartime economy.
Those who rstsinwi that
roerica <au$t gpfbackward^! netead
of forward did not take into
account the will and detersjination
of i people who knew that what
they had accomplished in warti*#
was but a stepping stone to what
they could do when they had the
opportunity to direct their

hop# for Hi# to maintain that
peak after various wartime
*
industries had converted to
peacetime production.

There were

still others who felt that we
could not even hope to maintain the
peak; on the contrary, we should he
cutting down production in order to
shelter ourselves as much as
possible fra« the severe effects of
a depression which was sure to

**

d>si

•*

we thought of these gains as
they exist in the form of useful
things -- such things as the
better howes in which we live,
the »art nutritious food we eat,
the higher quality clothing wt wear,
the fine automobiles we drive, the
advances educational opportunities
1 or Iur children, the increased
medical aids which- assure sounder
health, and the added recreational

f

rpc>üf'
«
À» \

:^

;■

r* ,v v"5,i - J

- 4217 ~

have fesen ours fr.oto the productive
us# of our savings, »* are oftin
apt to thin* in terms of dollars
■invested and dollars returned,
whether in the for» of interest on
the investment or in tit broader
sense of the increased national
income which it has generated.

Sot

our gains fro» savings and investment
have not been simply dollar gains.
I® would comprehend them better if

As a farmer newspspsrboy
myself —

®y first business

experience case as a carrier for
the Jonesboro Tribune of Jonesboro,
Arkansas —

it has given m

a

great dssJL of personal satisfaction
to have the enthusiastic support
of the great American nsesoaperboy
fraternity behind «e in ®y efforts
to direct this national thrift
enterpriss.

it alto bodes wsil

Managers' Associt

in the csampa fan.
from Wovomfaor iS41 through
decesiber It?*;* th® boys sole! End
delivered stamps to their

customers.
effort® »o«i®

As a renult of th®ir
ISO million of lie

■
war s av i fig-« s t s©pt were s o ld .
IIf# y oo •looted ru okelst, dimes and
dollars that would otherwise never
have been contributed to the

-- one of

»m
Q

consecuti ve

and ittiitien* are preparing

smi equipping thtmselvee to
asitane » responsi bio place in
the adult lite of their
community in year® to cotie.
Most of(the® have a deep sense
of civic responsibility, as
demonstrated by their willingness
to volunteer support of important
worthy causes.

1he Pest national

illustration if this •** and a

often taken for granted*

Ho

is a very important link
between his community anil the
nows sources, of the pr #®§»

But

for hi « sfityr.;,*’iIf and industry,
»any mi¿Irons of ¿merleans
would b® unable to got i daily
newspaper except at considerable
inconvonsonce to themselves.

Equally important, those
boys, through their own initiative

m*

i#f

earniftg®,
•WF W th« b 0 yi hav©

opportun! ty to IIü rn inee

v&

y%
iii^i| of tr
©warft* fco th# 4i'f
?f| m

■fr; M i

lEff

Jh.

y m
61
4$f5#$$f;,

for tb* wfoiwötisn of ftt#
liy® ifi«i« ön thtnr route®.
iiiö t ü t t

thfii

fie w ip ip s r f e ö j'

ias toten a famiXtar part of
A ü t r i e i n lifo im nee if*@ early
&k

ttnes itrt h *3

#i

/ic®
1£1¡|3

h©
Cmk

1720 -- th© third newspaper
in Button and tfi* fourth in

Aliar tca •*- young Son also
assumed th# rolt of newspaper
carrier.

As franklin himself

r «11t#s this ®xpsriif»g#i tn
his autobiography,

, I was

employed to carry the pa port
to th# customers, after
having worked in composing
the types and printing off th#

axis St

*

the pr

It J»sw® s #a sit pus

had America's

!f st

rii;Âipâpif* h
ItiBúàr s sn

La m outStan
I d t

0

t

oy ä in b.§b , ff nsnc9 , industry,
jour Adi ilifty -se» «ne®, tnd
vovernmootdi and '»arid aff sirs,
fn fs et, î venture to tay tttar$
is no ssiarican by y|é #it or

orofosaion whi ot

t§
s not

distingui»had by its famous
ä

iunid i ifuil îh# riyw sß êp ar b ay *1

SChüolI

CP

TREASURE DEPARTMENT
Washington

The following address by Secretary Snyder before
a luncheon meeting of the Boston -Advertising
Club rtor.ltiiiiritrlr honoring the news paperboys of
America, S t a t le r H otel, Boston, M ass*, is
scheduled fo r d e liv e ry a t 1 P.M. EST Tuesday,
we—ewnmnTnnn~mnen

mi iwer*—

-

i i» i

i

m

"rnrniiiiimi.il,
■■■^wRjuMuiiLiuwuLii

w *
’ ■ ■ » •u iiiiiiiiim M a n ig M M M ia n

October 7, 1952, aid. is fo r re le a se a t th a t time.

THRIFT — THE INSURANCE POLICY OF PROGRESS
i

\

S - 3 lt f

TREASURY DEPARTMENT
Washington

The following address by Secretary Snyder
before a luncheon meeting of the Boston
Advertising Club honoring the Newspaperboys
of America, Stabler Hotel, Boston,
Massachusetts, is scheduled for delivery
at 1:00 p#m# EST* Tuesday, October T,
1 9 $ 2 , "and Ts~*for release* at that time*

THRIFT

THE INSURANCE POLICY OF PROGRESS

It is a very real pleasure for me to be here today and to join with
the Advertising Club and its guests in honoring the Newspaperboys of
America, This is, of course, part of a nationwide tribute which is
being paid the newspaperboys through the issuance of a special
commemorative United States postage stamp in their honor. As inscribed
on the face of the stamp, it is issued nIn recognition of the important
service rendered their communities and their nation by America’
s
Newspaperboys
This is an honor of which every newspaperboy —■past and present —
can be justly proud, and one which his Government is proud to bestow
upon him# From the ranks of American newspaperboys have come outstanding
leaders in the fields of business, finance, industry* journalism,
science, and governmental and world affairs# In fact, I venture to say
there is no American business or profession which is not distinguished" by
its famous alumni from the newspaperboys1 school#
As you are no doubt aware, this tribute is one which holds particular
significance for the city of Boston and its newspaperboys• It was here
in Boston in. 17OU'that America’
s first regular newspaper, ’
’
The Boston
News-Letter”was published, and it is Boston that has the distinction
of having had America’
s first newspaperboy of record# That newspaperboy
was none other than Benjamin Franklin, who was later to become one of
our great colonial leaders and one of America's most famous citizens of
all time#
History tells us that as a Boston lad, young Ben dreamed, as so many
of the ^New England boys of that era did, of finding his fortunes in
seafaring. At the age of ten, he broached the matter of going to sea to
his father, but was soon dissuaded by parental objections. Two years

2
later, when his eldest brother James returned from England with a
printing press, young Ben was apprenticed to his brother in the printing
business® As James began publishing ¿he New England Courant around
1720 -«* the third newspaper in Boston and the fourth in America —
young Ben also assumed the role of newspaper carrierG As Franklin himself
relates this experience in his autobiography, tt* «> « I was employed to
carry the papers to the customers, after having worked in composing the
types and printing off the sheets8n
For more than 230 years American newspaperboys, following in the
steps of Ben Franklin, have played an essential part in making the
American public the best informed anywhere in the world© And the enterprise
of these young businessmen from early colonial days down to the present
time is a thrilling chapter in American business adventures®
There were the pioneering newspaperboys of the New England Colony who
took upon themselves the responsibility of making deliveries not only
in the towns but to outlying settlements and nearby villages when their
only means of delivery was by foot or by horseback«» Often they were in
danger of attack by roving bands of Indians* Always they had rough roads
and long distances to travel in order to reach their scattered customers*
While the modern day newspaperboy has no such physical hazards to
ecpe with, he faces close timing schedules, competitive business conditions,
and complex bookkeeping transactions that would have left the pioneers
in a daze® The newspaper carriers of today are participants in big
business
£00,000 of them selling more than lj.0 million newspapers every
day to the people of the United States0 These boys are in business*
They are learning the basic rales of merchandising and public relations®
They are, as a rule, earning money for the first time® In addition to
their regular earnings, the boys have an opportunity to earn incentive
awards in the form of trips, merchandise and cash prizes for the production
of new business on their routes®
Because the newspaperboy has been a familiar part of American life
since the early days of our history, the importance of the service he
renders his community is too often taken for granted® He is a very
important link between his community and the news sources of the press«
But for his enterprise and industry, many millions of Americans would be
unable to get a daily newspaper except at considerable inconvenience to
themselves®
Equally important, these boys, through their own initiative and
ambition, are preparing and equipping themselves to assume a responsible
place in the adult life of their community in years to come* Most of

42
•» 3 *•
them have a deep sense of civic responsibility, as demonstrated by their
willingness to volunteer support of important ■worthy causes* The best,
national illustration of this
and a major factor in their winning
this current nationwide tribute -«* has been their coordinated activities
in behalf of the United States Savings Bonds Program*
For eleven consecutive years the newspaperboys have been carrying
to the doorsteps of America the message of thrift and regular saving
through the purchase of United States War, Savings, and Defense bonds «•«
one of the longest sustaining Savings Bonds services by a,single group
on record*
When Pearl Harbor was attacked on December 7, lpltl, the Nation *s
newspaperboys had already launched their Stamp Sale offensive. A total
of 939 newspapers with more than 300,000 newspaperboys, under the
auspices of the International Circulation Managers* Association,
participated in the campaign* Each week from November 19Ul tiirough
December 19^5> the boys sold and delivered stamps to their customers* As
a result of their efforts somefL80 million of 10$ war savings stamps were
ssld. They collected nickels, dimes and dollars that would otherwise
never have been contributed to the war effort. The value pf their
wartime service is not to be measured, however, simply by dollar sales of
war savings stamps, and the orders they took for War Bonds, but also in
the collateral effect their persistent efforts had in keeping the families
of the Nation constantly reminded of the need for savings throughout that
crucial period in our history*
Moreover, this national service was only the beginning of a long and
beneficial relationship between the newspaperboys and their Government*
After the close of their war stamp program, Thrift Clubs among the
newspaperboys were launched to encourage the carriers to continue the
habit of putting aside regular savings for the purchase of United States
Savings Bonds. And America*s newspaperboys have been on the front line
in each of the nationwide bond drives in recent years by carrying to their
customers in millions of homes throughout our country the messages of those
peacetime drives. Since the war*s end in 19h59 they have delivered over
60 million information pieces on United States Savings Bonds and Defense
Bonds to the homes of America.
And to my mind, one of the finest tributes that can be paid to the
worthwhileness of the Savings Bonds Program is that the Newspaperboys of
America celebrated National Newspaperboy Day — their day
this year by
Jgain distributing Savings Bonds literature to the doorsteps of America
w^call attention to the recent inprovements in the Series E Defense Bond
which makes it a better investment than ever*

*• [j. *•
As a former newspaperboy nyself — my first business experience came
as a carrier for the Jonesboro Tribune of Jonesboro, Arkansas — it has
given me a great deal of personal satisfaction to have the enthusiastic
support of the great American newspaperboy fraternity behind me in iry
e ffo rts to direct this national thrift enterprise« It also bodes well
for the future of America that these young citizens, in whose hands our
Nation’ s destiny will lie in the years to come, are already helping to
build solid foundations for the continued growth and progress of our
Nation*
I realize that I hardly need remind a New England audience of the
dominant role that thrift has already played in building our Nation* It
was the Yankee thrift of your forebears that made possible not only the
great industrial development of this area but to a great extent the vast
development of much of our Nation’
s resources*
It was the savings of the Mew England colonists that furnished the
capital to start their first adventures in shipbuilding and world trade*
As these ventures were successful, more and more money was saved* The
capital fund grew larger and larger until eventually the profits from one
great industry were furnishing the capital for the development of entirely
new industries* The chain effect of Yankee capital in the industrial
progression of our Nation is illustrated by the fact that out of New
England’
s profits in shipbuilding and world trade came capital to build
our textile industry, construct our railroads, chid, to open up great copper
mines of the west* And the chain .effect went on and on as other industries
and regions added to the capital fund of our free enterprise system from
their own profits*
When we assess the gains that have been ours from the productive use
of our savings, we are often apt to think in terms of dollars invested
apd dollars returned, whether in the form of interest on the investment
or in the broader sense of the increased national income which it has
generated* .But our gains from savings and investment have not been simply
dollar gains* We would comprehend them better if we thought of these gains
as they exist in the form of useful things — such things as the better
nomes in which we live, the more nutritious food we eat, the higher quality
clothing we wear, the fine automobiles we drive, the advanced educational
opportunities for our children, the increased medical aids which assure
sounder health, and the added recreational and entertainment facilities
^
vital gain, of course, has been the improved equipment
Wlu wb^oh we work, which has, in turn, enabled us to produce these things
wore easily and in greater abundance*
^We^can indeed take pride in our past accomplishments and the role that
V^n£s^and investment have played in our national progress* But our pride
^justifiabiQ only so long as past is prologue, and our past accomplishf
be
a prelude to the future that can be ours if we recognize
ne Sources of our strength and have the vision to carry them forward*

dp
T L L2

You may recall that there were some who felt that America had reached
its zenith in productive power during World War II, and that the very
most we could possibly hope for was to maintain that peak after various
wartime industries had converted to peacetime production« There were
still others who felt that we could not even hope to maintain the peak;
on the contrary, we should be cutting down production in order to shelter
ourselves as much as possible from the severe effects of a depression
which was sure to follow on the heels of a highly expanded wartime
economy.
Those who reckoned that America must go backward instead of forward
did not take into account the will and determination of a people who
knew that what they had accomplished in wartime was but a stepping stone
to what they could do when they had the opportunity to direct their
energies toward peacetime building. Faith in our future potentialities
is one of the strongest traits of our* American character, and I think
no finer expression of this faith can be found than in the record
expansion program that business and industry has carried out in recent
years» Private business wrent ahead in the postwar period and up to the
time of the Korean invasion had, by its own financing, invested nearly
$100 billion in new plant and equipment — a far greater investment
than in any other comparable period in our history© Since Korea, American
industry has invested another $65> billion in new plant and equipment»
This record expansion has broughtin its wake new production peaks in
practically all of our major industries, and the new techniques and
methods of production which are being put into effect each year are
constantly adding to our Nation's productivity.
Similar expressions of faith in America's future are to be found in
the daily lives of millions of our people as they invest their savings
to strengthen our economy. During World War II, due to shortages of many
goods ana services, our people were urged to save, and they aid save in
unprecendented amounts* At the close of World War II, they held close
to $200 billion in liquid savings. These savings not only helped
stabilize our economy during the war years, but were a major factor in
sustaining high levels of business activity in the postwar years© With
this huge reservoir of savings back of them, our people had the courage
to^spend freely from their current incomes for the new goods.and services
which industry and business were turning out in increasing amounts®
At the same time our people have continued to build their financial
reserves. Since the close of 1 9h$9 individuals have increased their owner­
ship of United States savings bonds by l!i percent. Savings accounts in
commercial banks, mutual savings, postal savings, and savings and loan
associations show a total gain of kh percent, and individual investment
ln life insurance has increased by $$ percent since I9h%* The widespread
practice of thrift continues to be one of the great bulwarks.to a dynamic
American economy.

- 6 -

Just as thrift was important to our pioneering forefathers in
opening up geographic frontiers and the raw resources of a new country,
so today it is essential if we are to take full advantage of the
scientific discoveries that are opening up new economic frontiers for
our Nation and bringing vast new opportunities for our people.
We have already had some very dramatic examples in the postwar
years of how scientific discoveries devoted to peacetime pursuits can
enrich humanity and revolutionize our mode of living. ¥e want to make
sure that today’
s scientific dreams do not die in the test tubes*
We want to make sure that today’
s dreams will again be tomorrow’
s
realities. And we want to make sure that we are going to be able to
enjoy them.
American thrift is our best assurance. For it will not only furnish
the capital to finance these bold new adventures in American free
enterprise, but it will help provide a sustained market for the constantly
improved goods and services which we are capable of producing., Equally
important, American thrift will provide the funds to educate our
children and develop their talents and skills for even greater ventures
in the future.
The challenge of America has ever been a challenge of building for
the future. It is a challenge to our youth as well as a challenge to
our adults. The Newspaperboys of America, by helping to fuel the torch
of free enterprise through their many services to their communities and
Nation, have demonstrated their willingness to accept this challenge,
With them as the future standard bearers of this flaming beacon guiding
the way to thrift, we can have every confidence that the torch will glow
with even greater intensity as it lights the way for human progress
and freedom in the days to come»

oOo

0A
¿14

I n tr o d u c in g S e c r e t a r y Sn y d er a s th e p r i n c i p a l sp e a k e r
a t th e cerem on y, Under S e c r e t a r y F o l e y s a i d th e r e o r g a n is a tio n
p la n w as th e p ro d u c t o f th e S e c r e t a r y ' s g u id a n c e an d in sp ira tio n

niifiT* '
p l u s h i s fir m r e s o l v e ^ e x e r c i s e d o v e r th e p a s t s i x y e a r s *

Me s a i d th e S e c r e t a r y ’’m o tiv a te d r e o r g a n i z a t i o n o f th e
Revenue S e r v i c e from the v e ry s t a r t « ”

-5
r\iv
0^?-

and

and the officials of Massachus

the rest of New England have given us i
arranging for this ceremony.

We have hal
I

similar cooperation in every locality
where these installations have taken
place.

This is sure proof to me that

efficient design, the sound personnel
policy, and the assurances of trustworttj
performance
¥

which are inherent in the

reorganization plan have won full
conf id ©.nee.
\\

it is my firm belief, and I know N

is Secretary Snyder’
s, that this public
tum

T-r* fc.
■
AS P

iartwent

in t
\x

entire
4%

re

here today is
structure

4» f-*

L*

or
\v

jWk £» JM*
1 X7 o o

our appreci

r—
i

very vita

administering the respons ib i1 it ies of thl
Bureau of Intern al Revenue.

This action!

embodies one of the most progressive stel
in good government in the history of thii
country.
^ As you know, that Bureau of the
Treasury Department is one of the world*
greatest business activities.

Its ;utid

involve not only receiving and processin
the tax reports of tens of millions of
Americans each year, but also the
handling of tax returns from proprietore
and corporations, excess profits taxes,
-the-

0

RELEASE 10 A.M. EST
Monday^ October 6 , 1952

s-

3/

v Boston, M ass«, Oct« 6 « Under Secretary of the flE iP
Treasury Edward I S

B. Foley s a id today in opening the ceremonies

fo r in s ta lla t io n o f o f f i c i a l s of the reorganized In tern al Revenue
Service for New England:

TREASURY D EPARTM ENT
Information Service

RELEASE 10:00 A.M. EST
Monday, October 6, 1952

WASHINGTON, D .C .

S-3186

Boston, Massachusetts, October 6 - 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 New England:
»We are gathered this morning in historic New England premises,
and I think most appropriately so, for the proceedings which,we now
begin are of far-reaching importance to all New England citizens. They
affect the New England taxpayer both directly and indirectly! they
involve his money and his government! therefore, they are very much
his business*
"Our purpose is to institute for the six New England states a
new manner of administering the responsibilities of the Bureau of
Internal Revenue. This action embodies one of the most progressive
steps in good government in the history of this country.
"As you know, that Bureau of the Treasury Department is one of
the world*s greatest business activities. Its duties involve not
only receiving and processing the tax reports of tens of millions of
Americans each year, but also the handling of tax returns from pro­
prietorships and corporations, excess profits taxes, the excises on
cigarettes and liquor and jewelry and many other items, the taxes on
the gains of gamblers, and a long list of other levies*
"In addition to collecting and recording these taxes, the Bureau
checks the accuracy of returns, investigates a large number of them in
detail, collects billions in taxes not voluntarily reported and makes
refunds on overpayments running into billions.
"That is still not the last of the Bureau*s duties. It had ad*
difcional tasks such as issuing permits for distillers and the manufacture
of firearms, and the supervision of various angles of the alcholic
beverage business*

-

2

-

" I t i s the la r g e s t bureau o f the T reasu ry Department, and one o f
the la r g e s t in th e e n tir e Government«
"What we are t o do here today i s b rin g up to d ate th e s tru c tu re
and the o p e ratin g procedures o f t h i s v ery v i t a l arm o f th e Government*
" I want to e x p re ss our a p p re c ia tio n o f the ready co o p eratio n
which the people and th e o f f i c i a l s o f M assach u se tts and th e r e s t o f
New England have given u s in arran g in g fo r t h i s ceremony* We have
had sim ila r co o p eratio n in every l o c a l i t y where th e se i n s t a l l a t i o n s
have taken p la c e * T h is i s su re p ro o f to me th a t the e f f i c i e n t d e sig n ,
the sound p erson n el p o lic y , and th e a ssu ra n c e s o f tru stw o rth y p e r­
formance which are in h eren t in th e re o rg a n iz a tio n p lan have won f u l l
public con fiden ce*
" I t i s my firm b e l i e f , and I know i t i s S e c re ta ry Sn yder1s ,
that t h i s p u b lic confiden ce w i l l prove w e ll p la c e d *"
In troducin g S e c re ta ry Snyder a s th e p r in c ip a l sp eak er a t the
ceremony, Under S e c re ta ry F oley s a id th e re g oran i z at. ion p lan was th e
product o f th e S e c r e t a r y *s guidance and i n s p ir a t io n , p lu s h is firm
reso lv e, e x e rc ise d over the p a s t s i x y e a r s . He s a id th e S e c re ta ry
"motivated re o rg a n iz a tio n o f th e Revenue S e rv ic e from th e very s t a r t . "

oOo

in the six New Engiaftfi states.
^Thi s six-st<*te region h*s
rjiIy|i a leading economic role
in the nation since the very

earliest days.

Income payments

of wore than $16 billion to
individuals, in the six states,

were 10 per cent greater in
Idol than in 1000.
^Here, in his home city,
1 want to went ion an outstanding
citizen of Massachusetts -- he

of its far-reach»rg and constantly
¿rowing respons ib1 1 it i#s.
its personnel, it i• to b® *
career service, in which merit i®
the controlling basis for
original selection and subsequent
advancement,
ffF t 0® the very beginning of

the reorganization task f have
t

had enthusiastic cooperation **from the President, the Treasury
St 1 .If and Revenue Bureau official-*

-

18

Coramisti oner » w h o w i l l r e p o r t

directly to'Washington.
|J| |

direct

l i n e of A u t h o r i t y

|

between ‘
Washington Ifti the field

offices is one of the chief
aeoomplishwents of the reorganizatioij
When the Revenue Service operated
in the past through a multiplicity
of o f f i c e s ,

a l l of t h e m m o r e or

less independent, it was diffic
to exercise efficient over-all

were

p r o v i d e d for

in the

R e o r g a n i z a t I on P l a n .

Formerly

t h e r e w a s no c o u n t e r p a r t
Revenue

in the

S e r v i c e for this position.

I District

internal R e v e n u e

is b e i n g e s t a b l i s h e d

here

o f f i c e

in

Üoaton, h e a d e d by a D i s t r i c t
Commissioner«
all r e v e n u e

who will

operations

New England District.
positions,

the D i s t r i c t

supervise

in the
All

of these

C o m m i s s i o n e r

I

«But even as the work began,
our rapid postwar r e c o n v e r s i o n ,
with

its a t t e n d a n t p r o s p e r i t y ,

a d d e d to the d i m e n s i o n s of the

problem . Between 1946 and 1952
the number
both

of i n c o m e tax r e t u r n s

individual

enormously.

increased
Bureau

and corporate,
Today the

of internal Revenue

receives

about 9 0 million tax

r e t u r n ® of

all k i n d s , and in the

aiir

jpl¿S46*

however* ths

s i t u a t i o n hud c h m s ® ^ •

Mof 6 i i f i

and worsen &ec*we tvi. I i t s i 6 tor
civilian

er.pioyffient

ab

the

number in the Artseci forces

It w « » t h e n t h a t

tin w o r k of
O a u

i&j#* •$*> •.$&
*$ m mi #

*

*

rect jf
that

8

^Virtually overnight the task
of the Revenue Service had
undergone a historic change at the
war's outset.

The Service

suddenly had to handle millions
of returns from taxpayers who had
never before been required to pay
Federal income taxes.

New kinds

of Federal taxes were levied,
and rates were sharply increased.
Income tax withholding
drastically changed collection

and strict adherence to exacting
standards of integrity throughout
the Revenue Service personnel,
''first steps toward
r ■|

|SllsIiiSfP

eliminating weak spots from the
Bureau of internal Revenue, and
improving it® operational methods,
began it my direction soon after
I became Secretary of the Treasury
in 1 9 4 6 .

It was §«attar of

sheer necessity that such action

OH i

appiicati

Release 10:00 A*M* EST
Monday, October 6, 1952

Boston, Massachusetts, October 6s

S

Secretary of the Treasury

John W. Snyder speaking at ceremonies for the installation of officials of
the reorganized Internal Revenue Service for New England said todays

treasury

department

Information Service

WASHINGTON, D .C .

46 5
RELEASE 10:00 A . M . , E S T
Monday , Oct ober 5, 19 5 2.

1187

Boston, Massachusetts, October 6 : Sec r e t a r y of the T r e a s u r y
John W. Snyder spea k i n g at ceremonies for the i n s t a l l a t i o n of
officials of the reorganized Internal Revenue Service for
New England said, today:
"It is with m u c h sat i s f a c t i o n that we extend today
to the N e w Engl a n d area, where so m u c h important A m e r i c a n
h i s tory has b e e n written, the m o d e r n i z i n g and r e v i t a l i z i n g
of the Federal Revenue S e r v i c e ,
"This is b e i n g a ccom p l i s h e d through the a p p l i c a t i o n
to the New E n g land States of the President's R e o r g a n i z a t i o n
Plan No. 1 of 1952 ~~ a p l a n w h ich culminated six years of
persistent effort to remold the B u r e a u of I n ternal Revenue
into a service fully adequate to meet its r e s p o n s i b i l it i e s
and fully m e r i t i n g the confidence of the p u b l i c .
"Reorganization Plan No. 1 of 19 5 2 was intro d u c e d into
Congress, as y o u know, by President T r u m a n on J a n uary 14,
of this year.
It received strong suppox^t f rom interested
groups of private citizens.
F o l l o w i n g Congr e s s i o n al
approval, we have been w o r k i n g rapi d l y to put the p l a n into
effect.
The B u r e a u of Internal Revenue is not like a
factory, or an asse m b l y plant.
It could not -be closed
down for a w e e k or a m o n t h while a n old system was
abolished and a n e w system installed.
The B u r e a u h a d to go
right on collecting the N ation's revenues and d o i n g the rest
of its huge daily job, while m a k i n g the changes called for
in the plan.
"This is the fifth area in w h i c h the r e o r g a n i z a t i o n
plan has b een put into effect.
In addition, we have
extensively reorganized the h e a d q u a r t e r s of the B u r e a u of
Internal Revenue in Washington,
W e ; s h a l l p r o ceed w i t h
reorganization in other districts, on a schedule w h i c h calls
■for completion of the p r o g r a m by D e c e m b e r 1 st of this year.

4GS
-

2

-

"The imp l e m e n t a t io n of the changes in the o p e r a t i n g
m a c h i n e r y of the Revenue Service provides increased
efficiency, more equitable and impartial a d m i n i s t r a t i o n of
the tax laws, and s t r i c t .adherence to e x a c t i n g standards of
integrity throughout the Revenue Service personnel.
"First steps toward e l i m i n a t i n g w e a k spots f r o m the
B u r e a u of Internal Revenue, and imp r o v i n g its o p e r ational
methods, b egan at m y d i r e c t i o n soon after I became
Secretary of the Treas u r y in 1946.
It was a. m a t t e r of
sheer n e c e s s i t y that such a c t i o n be taken.
"An o rganization w h i c h had wo r k e d fairly w e l l in its
earlier years, w h e n it collected what today w o u l d s e e m a
rather modest amount of taxes, and collected them from
comparatively few people, h a d b e e n almost o v e r w h e l m e d by
the unprec e d e n t ed demands of the Wor l d W a r II era and the
immediate postwar days.
"Virtually overnight the task
undergone a h i s t o r i c change at the
suddenly h a d to handle m i l l i o n s of
who h a d never before been required
taxes.
N e w kinds of F e d e r a l taxes
were s h a rply i n c r e a s e d .

■

of the Revenue Service h a d
war's outset.
The Service
returns f r o m taxpayers
to pa y F e d e r a l income
were levied,- and rates

r'Income tax w i t h h o l d i n g d r a s t i c a l l y changed co l l e c t i o n
methods, and the rapid rise in wartime incomes f o stered tax
evasions that had to be d i scovered and rectified.

" I t had become a p p a r e n t t h a t th e o l d sy s te m had t o be
m o d e rn iz e d . B u t d u r i n g th e war n e i t h e r t i m e , .nor men, n or
m achin ery were a v a i l a b l e f o r such a p u r p o s e . The p ro b lem
had t o be p u t a s i d e , t e m p o r a r i l y .
"By 1946, however, the situation h a d changed.
More m e n
and w o m e n became available for c i v i l i a n em p l o y m e n t as the
number in the A r m e d Forces declined.
More m a c h i n e r y became
available w i t h the reduc t i o n In w a r purpose demand.
It was
then that the w o r k of m o d e r n i z i n g the B u r e a u of Inte r n a l
Revenue was started.'
"But e v e n as the w o r k began, our rapid p o s t w a r
reconversion, w i t h its attendant prosperity, added to the
dimensions of the problem.
B e t w e e n 1946 and 19 5 2 the n u m b e r
of income tax returns, both Indiv i d u a l and corporate,
increased enormously.
T o d a y the B u r e a u of I n ternal Revenue
receives about 90 m i l l i o n tax returns of all kinds, and in
the latest fiscal year its collections reac h e d the r e cord sum
of $65 billion.

467
- 3 "That, in brief, is the backg r o u n d against w h i c h
reorganization is being a f f e c t e d ,
''Reorganization Plan No. 1 is not a complicated
blueprint understandable only by experts.
It is simple,
■ "Basically, reo r g a n i z a t i o n means the e l i m i n a t i o n of all
non-career offices in the Revenue Service b e l o w the
Commissioner of Internal Revenue,
The collectors, who were
formerly Presidential appointees, are n o w b e i n g r e p l a c e d by
Civil Service employees to be k n o w n as Directors of
Internal R e v e n u e .
"To streamline the a d m i n i s t r a t i o n of I nternal Revenue
operations, Dist r i c t Commissioners were p r ovided for in the
reorganization Plan.
F ormerl y there was no counterpart in
the Revenue Service for this position,
A D i s t r i c t inte r n a l
Revenue office is b eing estab l i s h e d here in Boston, h e a d e d
by a District Commissioner, who w i l l supervise all revenue
operations in the N e w E n g l a n d District.
A l l of these
positions, the District Commiss i o n e r and the six Directors,
are being filled today through Civil Service, and w ill
continue to he filled in that manner.
"This r e o r g a n i z a t io n has an important advantage to
liew E n g l a n d ’s 3.7 m i l l i o n taxpayers.
H e r e a f t e r they can
get one-stop service and not h a v e to visit several offices
to get answers to their tax questions.
"One of the most burdensome things about the old w a y
of doing business was that there were d i f f erent offices
for almost every m a j o r type of tax.
"From n o w on m ost of the t a x p a y e r s ' dealings w i t h the
Revenue Service are going to be w i t h the D i r e c t o r of I n t e r n a l
Revenue, in whose office will be pe r f o r m e d all of the
functions of the Revenue S e r v i c e . No longer will there he
separate offices for Collectors, I n ternal Revenue
Agents-in-Charge, Special Agents, and -so on. A l l w i l l n o w
be combined in the office of the local D i r e c t o r of Internal
Revenue, who is going to have the r e s p o n s i b i l i t y of
supervising thoso jobs.
The Director, in turn, is
responsible to the District Commissioner, who w i l l report
directly to Washington,

4
" T h i s d i r e c t l i n e o f a u t h o r i t y betw een W ashington and
the f i e l d o f f i c e s i s one o f th e c h i e f a c c o m p lish m e n ts o f
the r e o r g a n i z a t i o n . "When th e Revenue S e r v i c e o p e r a t e d i n
the p a s t th ro u gh a m u l t i p l i c i t y o f o f f i c e s , a l l " o f them
more or l e s s in d e p e n d e n t, i t was d i f f i c u l t to e x e r c i s e
e ffic ie n t o v e r - a ll su p e rv isio n .
The new a d m i n i s t r a t i v e
arrangem ent makes i t much e a s i e r now f o r th e C o m m ission er
of I n t e r n a l Revenue and h i s s t a f f to s u p e r v i s e f i e l d
a c tiv itie s .
" I n s t r e a m l i n i n g o p e r a t i o n s o f the Revenue S e r v i c e ,
ste p s a l s o have b een ta k e n to im prove th e s u p e r v i s i o n o f
employee c o n d u c t, and h e l p e l i m i n a t e the t e m p t a t i o n s to
which some em p lo yees o f th e Revenue S e r v i c e h ave succumbed
in the p a s t .
"T h ere h a s been e s t a b l i s h e d a s p a r t o f r e o r g a n i z a t i o n
an in d ep e n d en t I n s p e c t i o n S e r v i c e , un der d i r e c t i o n o f an
A s s i s t a n t C o m m issio n er, which w i l l m a i n t a i n a d a y - t o - d a y
check on f u t u r e em ployee co n d u ct and w atch o t h e r Revenue
Serv ice a c t i v i t i e s a s w e l l .
''The T r e a s u r y and th e B u re a u have ta k e n p o s i t i v e s t e p s
to e l i m i n a t e from th e S e r v i c e t h o s e em plo yees who have
f a i l e d i n t h e i r p u b l i c t r u s t . ¥ e h ave c o o p e r a t e d f u l l y w ith
a l l c o n g r e s s i o n a l i n v e s t i g a t i v e g ro u p s and w i l l c o n tin u e
to do s o .
As a r e s u l t o f th e ch an ges I h ave d e s c r ib e d ., th e N a tio n
is b e in g g iv e n a m o d ern ized Revenue S e r v i c e b e t t e r e q u ip p e d
to keep a b r e a s t o f i t s f a r - r e a c h i n g and c o n s t a n t l y grow in g
r e s p o n s i b i l i t i e s . As to i t s p e r s o n n e l , i t i s t o be a
career s e r v i c e , i n which m e r i t I t the c o n t r o l l i n g b a s i s f o r
o r i g i n a l s e l e c t i o n and s u b s e q u e n t ad v an cem en t.
"Prom th e v e r y b e g i n n i n g o f the r e o r g a n i z a t i o n t a s k
I have had e n t h u s i a s t i c c o o p e r a t i o n - - from the P r e s i d e n t ,
the T r e a s u r y S t a f f and Revenue B u re a u o f f i c i a l s .
Em ployees
down^the l i n e have a l s o t a k e n a deep i n t e r e s t i n our p l a n s
o give the N a t io n a u n i f i e d , s i m p l i f i e d and d e c e n t r a l i z e d
Revenue S e r v i c e . • Prom the em p lo yees th e m s e lv e s came more
than^1 4 ,0 0 0 s u g g e s t i o n s f o r im p r o v in g o p e r a t i o n s o f the
s e r v ic e . More th a n 2 ,0 0 0 o f t h e s e have a l r e a d y been
accepted and p u t i n t o o p e r a t i o n a s p a r t o f th e
r e o r g a n i z a t i o n , and a r e a l r e a d y p r o v i d i n g i n c r e a s e d
e f f i c i e n c i e s and e c o n o m ie s.

- 5 U nder the skillful d i r e c t i o n of C o m m i s s i o n e r D u n l a p
and his a s s o c i a t e s , the transition is b e i n g a c c o m p l i s h e d
smoothly, and without inconvenience to taxpayers.
"The District C ommissio n e r who is b e i n g i n s t alled here
today, ^and is to have his headqua r t e r s in Boston, will
supervise the activities of six Dir e c t o r s of Internal
Revenue who will have their offices in Hartford, Connecticut:
Augusta, M a i n e ; Providence, Rhode Island,* Portsmouth,
New Hampshire; Burlington, Vermont, and here in Boston.
"These m e n are taking charge of a n area of great
economic importance, and one in w h i c h the co l l e c t i o n of
revenues is a most important job.
T r easury records show
tn at in the fiscal year w h i c h ended last June 3 0 , m o r e than
$3-5 billion in Fede r a l taxes were paid in the six
New England states.
^This six-state r e gion has p l ayed a leading economic
role in the n a t i o n since the v e r y earliest days.
Income
payments of more than $16 bil l i o n to individuals, in the
six states, were 10 per cent greater in 19.51 t h a n in I9 5 0 .
Here, in his home city, I want to m e n t i o n a n o u t s t a n d i n g
Cp azG:n °'^ Massachusetts
he also is an o u t s t a n d i n g m e m b e r
OL thL O'Onsr0SS
vho ^ as one
e n t h u s i a s t i c and
e, fective proponents in Congress of the r e o r g a n i z a t i o n
authority which we are e x e r c i s i n g here today.
I refer to
Congressman John W. McCormack, the d i s t i n g u i s h ed m a j o r i t y
loader^of the H ouse - - a m a n who has the e s t e e m and the
affection of the m e m bers of the House on both sides of the
aisle.
course of consideration of the R e o r g a n i z a t i o n
n a n by the House, Cong r e s s m a n M c C o r m a c k was -- as always
an active and tireless worker for good government.
. . 1 also want t0 express our a p p r e c i a t i o n of the support
wnicn was given the reor g a n i z a t i o n p l a n b y m a n y other
i.ew England members of the Hou s e of Representatives, and by
almost all of the New England S e n a t o r s .
,!lt is m y firm belief that the r esult of today's
n ? ^ g^n i z a t i o n P r o c e edings here, and those h e l d or to be
npnrn k r o a Shout the nation, w ill be to give the A m e r i c a n
rm
Revenue Service of m a x i m u m e f f i c i e n c y and
economy, m a n n e d by employees of u n q u e s t i o n e d
integrity ,

0O0

J / f

RELEASE MORMIJiG ITO5PAPER3,
T u e sd a y , O cto b e r 7 , 1 9 5 ? *

^

T he S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t t h e t e n d e r s f o r
H , 2 * 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 1 - d a y T r e a s u r y b i l l s t o b e d a t e d O c to b e r 9, X952I
an d t o n a tu r e Ja n u a ry

8,

1 9 53# w h ic h w e re o f f e r e d o n O c t o b e r 2# 1 9 5 2 , w e re opened

at]

t h e F e d e r a l R e s e r v e B a n k s on O c t o b e r 6«
T he d e t a i l s o f t h i s i s s u e a r e e s f o l l o w s »
T o t a l a p p l i e d f o r - $ 2 , 1 0 8 ,1 1 5 , 0 0 0
T o ta l a c c e p te d
- 1 ,1 * 0 0 ,1 1 5 ,0 0 0 ( i n c l u d e s $ 2 1 5 ,2 3 7 ,0 0 0 e n t e r e d o n a
n o n - c o m p e t i t i v e b a s i s en d a c c e p t e d In
f u l l a t t h e a v e r a g e p r i c e shown below)
A v e rag e p r i c e
- 99*53$ E q u i v a l e n t r a t e o f discount a p p r o x . 1 .8 2 9 5 per
R ange o f a c c e p t e d c o m p e titiv e b id s »
H ig h
Low

-

99.575
99*531

E q u i v a l e n t r a t e o f d i s c o u n t a p p r o x . 1 *6 8 1 5 per anr
*
»
»
"
*
1*8555 *

( 5 0 p e r c e n t o f t h e am o u n t b i d f o r a t t h e lo w p r i c e w as a c c e p t e d )
F e d e r a l R ese rv e
D is tr ic t

T o tal
A p p lie d f o r

T o ta l
A c c e p te d

B o sto n
Hew f o r k
P h ila d e lp h ia
C le v e l a n d
R ichm ond
A tla n ta
C h ic a g o
S t . L o u is
M in n e a p o lis
K an sas C ity
D a lla s
San F r a n c isc o

f

$

T o ta l

1 6 , 9 1 8 ,0 0 0
1 ,1 * 7 5 ,6 3 0 ,0 0 0
1*0,31*1*,000
5 7 , 1 6 9 ,0 0 0
2 1 , 2 7 9 ,0 0 0
2 9 ,7 0 1 *,0 0 0
2 3 2 , 1 2 6 ,0 0 0
3 2 , 3 8 1 ,0 0 0
1 0 , 1 0 1 ,0 0 0
5 0 ,8 7 1 ,0 0 0
6 3 , 7 0 7 ,0 0 0
7 7 , 3 8 5 ,0 0 0

$ 2 , 1 0 8 ,1 1 5 , 0 0 0

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

$ 1 ,1 *3 0 ,1 1 5 ,0 0 0

TREASURY DEPARTMENT
Information Service

WASHINGTON, D C .

Irklease morning n e w s p a p e r s ,
Tuesday, O ctob er 7 , 1 952.

s -3 1 8 8

The S e c r e t a r y o f th e T r e a s u r y announced l a s t e v e n in g t h a t th e
jtenders f o r $ 1 , 4 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , o f 91-clay T r e a s u r y b i l l ;
|to be dated O cto b er 9 , 1952, and t o m ature J a n u a r y 8 , 1953, which
vere o ffe re d on O cto b er 2 , 1 952, were opened a t th e F e d e r a l R e se r v e
SBanks on O ctober 6 .
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T o tal a p p l i e d f o r
T o ta l a c c e p t e d

Average p r i c e

$2,108,115,000
1 , 4 0 0 , 1 1 5 , 0 0 0 ( i n c l u d e s $2 1 5 , 2 3 7 ,0 0 0
e n t e r e d on a n o n - c o m p e t it iv e
b a s i s and a c c e p t e d i n f u l l
a t th e a v e r a g e p r i c e shown
below )
9 9 *5 3 8 E q u i v a l e n t r a t e o f d i s c o u n t a p p r o x .
1 . 829$ p e r annum

Range o f a c c e p t e d c o m p e t i t i v e b i d s :
- 9 9 *5 7 5 E q u i v a l e n t
'1
- 9 9 .5 3 1 E q u i v a l e n t
1

High

Low

rate
. 68l $
rate
. 855$

o f d isc o u n t approx.
p e r annum
o f d isc o u n t ap p rox.
p o r annum

(50 p e rc e n t o f th e amount b i d f o r a t the low p r i c e was a c c e p t e d )
Föderal R eserv e
District
Boston

T o tal
A p p lie d f o r
$

New York
P h ila d e lp h ia
Cleveland
Richmond
Atlanta
Chicago

pt. Louis

Minneapolis
Kansas C it y

Pallas

pan F r a n c is c o

TOTAL

1 6 ,9 1 8 ,000
1 ,4 7 5 ,6 3 0 , 0 0 0
4 0 ,8 4 4 ,000
5 7 ,1 6 9 , 0 0 0
2 1 ,2 7 9 , 0 0 0
2 9 ,7 0 4 , 0 0 0
2 3 2 ,1 2 6 , 0 0 0
3 2 ,3 8 1 ,000
10,101 , 0 0 0
5 0 ,8 7 1 ,000
6 3 ,7 0 7 , 0 0 0
7 7 ,3 8 5 ,000

$2,108,115,000
0O0

T o tal
A c c e p te d
$

1 5 ,9 1 8 , 000

816 , 880 , 000

2 5 ,8 4 4 , 0 0 0
5 2 ,1 6 9 , 000
2 0 , 7 7 9 , 000
29,704, 000
2 1 0 , 8 7 6 , 000

31 , 881 , 0 0 0
10 , 101, 0 0 0

5 0 ,8 7 1 , 0 0 0
5 7 ,7 0 7 , 0 0 0
7 7 ,3 8 5 , 000
$ 1 ,4 0 0 ,1 1 5 ,0 0 0

s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t o r o t h e r e x c i s e t a x e s , w h eth e r
F e d e r a l o r S t a t e , b u t s h a l l b e ex em p t fro m a l l t a x a t i o n now o r h e r e a f t e r
im p o se d on t h e p r i n c i p a l o r i n t e r e s t t h e r e o f b y a n y S t a t e , o r an y o f the
p o s s e s s i o n s o f t h e U n it e d S t a t e s ,

o r b y any l o c a l ta x in g a u th o r ity .

For

p u r p o s e s o f t a x a t i o n t h e am ount o f d i s c o u n t a t w h ic h T r e a s u r y b i l l s are
o r i g i n a l l y s o l d b y t h e U n it e d S t a t e s s h a l l b e c o n s i d e r e d t o b e i n t e r e s t .
U n d er S e c t i o n s R2 an d 1 1 7 ( a )

(l)

o f t h e I n t e r n a l R ev en u e C o d e, a s

am ended b y S e c t i o n 1 1 5 o f t h e R ev en u e A c t o f 191*1, t h e am ount o f discou n t
a t w h ic h b i l l s

i s s u e d h e r e u n d e r a r e s o l d s h a l l n o t b e c o n s i d e r e d to

a c c r u e u n t i l su c h b i l l s

s h a l l b e s o l d , re d e e m e d o r o t h e r w i s e d is p o s e d o f,

a n d su c h b i l l s a r e e x c lu d e d fro m c o n s i d e r a t i o n a s c a p i t a l a s s e t s .
i n g l y , t h e ow ner o f T r e a s u r y b i l l s

(o th e r th a n l i f e

Accord­

i n s u r a n c e com panies)

i s s u e d h e r e u n d e r n e e d i n c l u d e i n h i s in co m e t a x r e t u r n o n l y t h e d iffe r e n c e
b e tw e e n t h e p r i c e p a i d f o r s u c h b i l l s , w h e th e r on o r i g i n a l i s s u e o r on
s u b s e q u e n t p u r c h a s e , an d t h e am ount a c t u a l l y r e c e i v e d e i t h e r upon s a l e
o r r e d e m p tio n a t m a t u r i t y d u r in g t h e t a x a b l e y e a r f o r w h ic h t h e r e tu r n
i s m ad e , a s o r d i n a r y g a i n o r l o s s .
T r e a s u r y D e p a rtm e n t C i r c u l a r Mo. 1*18, a s am en ded , an d t h i s n o t ic e ,
p r e s c r ib e th e term s o f th e T r e a s u r y b i l l s
th e ir issu e .

an d g o v e r n t h e c o n d i t i o n s o f

C o p ie s o f t h e c i r c u l a r may b e o b t a i n e d fro m a n y F e d e r a l

R e s e r v e B an k 'o r B r a n c h .

yi '
-

dealers in investment securities.

2

-

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- j

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

October 16, 1952

5 in cash or other immediately available

funds or in a like face amount of Treasury bills maturing October lo, 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

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, October 7> 1952
The Secretary of the Treasury, by this public notice, invites tenders
fo r

$ 1 ,1 ^ 0 0 ,0 0 0 ,0 0 0

, or thereabouts, of

-day Treasury bills

91

cash and in exchange for Treasury bills maturing

O c to b e r 1 6, 1952

fo r

t j.n

the amount of $1,1*00,395>000 ♦ to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
January
terest.

O cto b e r 16, 1952

m

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

The bills

, and will mature

1953_____ > when the face amount will be payable without inThey 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 I
closing hour, two o ’
clock p.m., Eastern Standard time,F r i d a y ,

O c to b e r 10,

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

1952,|

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

/ ~y
i l
Release morning n e w s p a p e r s ,

fhiesday, O ctob er 7, 1 9 5 2 ,

S -3 1 8 9

The S e c r e t a r y o f th e T r e a s u r y , by t h i s p u b l ic n o t i c e , i n v i t e s
tenders f o r $ 1 ,4 0 0 , 0 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 1 -d a y T r e a s u r y b i l l s ,
for cash and in exch an g e f o r T r e a s u r y b i l l s m a tu r in g O cto b e r 1 6 ,
1952, in the amount o f $ 1 ,4 0 0 ,3 9 5 ,0 0 0 , to be i s s u e d on a d is c o u n t
Kasis under c o m p e t itiv e and. n o n -c o m p e titiv e b id d in g a s h e r e i n a f t e r
Provided. The b i l l s o f t h i s s e r i e s w i l l be d a te d O ctob er 3.6, 1 9 5 2 ,
and w ill m ature Ja n u a r y 1 5 , 1 9 5 3 ,when th e f a c e amount w i l l be
payable w ith o u t i n t e r e s t .
They w i l l be i s s u e d i n b e a r e r form o n ly ,
End in d en o m in atio n s o f $ 1 , 000, $ 5 , 000, $ 1 0 , 000, $ 10 0 , 000, $ 500, 000,
pnd $1 , 000,000 ( m a t u r it y v a l u e ) .

Tenders w i l l be r e c e i v e d a t F e d e r a l R e se rv e B an ks and B ra n ch e s
jup to the c l o s i n g h o u r, two o 'c l o c k p .m ., E a s t e r n S ta n d a r d tim e ,
Friday, O ctober 1 0 , 1 9 5 2 .
T en d ers w i l l n o t be r e c e iv e d a t th e
treasury D ep artm en t, W ash in g to n .
Each te n d e r m ust be f o r an even
multiple o f $ 1 ,0 0 0 , and in th e c a s e o f c o m p e t itiv e t e n d e r s th e p r i c e
[offered m ust be e x p r e s s e d on th e b a s i s o f 1 0 0 , w ith n o t more th an
pree d e c im a ls, e . g . , 9 9 . 9 2 5 . F r a c t i o n s may n o t
be u s e d .
It is
[urged th a t t e n d e r s be made on th e p r i n t e d form s and fo rw a rd e d in th e
special e n v e lo p e s which w i l l bo s u p p lie d by F e d e r a l R e se rv e Banks
or Branches on a p p l i c a t i o n t h e r e f o r .
Others th a n b a n k in g i n s t i t u t i o n s w i l l n o t be p e r m itte d to
pubmit te n d e rs e x c e p t f o r t h e i r own a c c o u n t. T e n d e rs w i l l be
received w ith o u t d e p o s i t from in c o r p o r a t e d ban k s arid t r u s t com pan ies
fend from r e s p o n s i b l e and r e c o g n iz e d d e a l e r s in in v e stm e n t s e c u r i t i e s ,
fenders from o t h e r s m ust be accom p an ied by paym ent o f 2 p e r c e n t o f
pe face amount o f T r e a s u r y b i l l s a p p l ie d f o r , u n l e s s th e t e n d e r s
pre accompanied by an e x p r e s s g u a r a n ty o f paym ent by an in c o r p o r a t e d
pmk or t r u s t company.
I
Im m ediately a f t e r th e c l o s i n g h o u r, t e n d e r s w i l l be opened a t
m Federal R e se r v e Banks and B r a n c h e s, f o l l o w i n g which p u b l ic
Innouneeracnt w i l l be made by th e S e c r e t a r y o f th e T r e a s u r y o f th e
piount and p r i c e ra n g e o f a c c e p te d b i d s .
T hose s u b m it t in g t e n d e r s
U ho a d v is e d o f th e a c c e p ta n c e o r r e j e c t i o n t h e r e o f . The
R otary o f th e T r e a su r y e x p r e s s l y r e s e r v e s th e r i g h t to a c c e p t o r
joct any c r a l l t e n d e r s , in w hole o r i n p a r t , and h i s a c t i o n in
such r e s p e c t s h a ,ll be f i n a l .
S u b je c t t o th e s e r e s e r v a t i o n s ,
^ -c o m p etitiv e t e n d e r s f o r $ 2 0 0 ,0 0 0 o r l e s s w ith o u t s t a t e d p r i c e
roni &&y one b id d e r w i l l be a c c e p te d in f u l l a t th e a v e r a g e p r i c e

2

( i n th r e e d e c im a ls ) o f a c c e p te d c o m p e t itiv e b i d s .
S e ttle m e n t for
a c c e p t e d t e n d e r s in a c c o r d a n c e w ith th e b i d s m ust he made or
co m p le te d a t th e F e d e r a l R e se r v e Bank on O cto b e r 1 6 , 1952, in cash I
o r o th e r im m e d ia te ly a v a i l a b l e fu n d s o r in a l i k e f a c e amount of
T r e a s u r y b i l l s m a tu r in g O cto b e r l 6 , 1 9 5 2 . C ash and exchange tenders
w il l r e c e iv e e q u a l tre a tm e n t.
Cash a d ju s tm e n ts w i l l be made for
d i f f e r e n c e s betw een th e p a r v a lu e o f m a tu r in g b i l l s a c c e p te d in
ex ch an g e and th e i s s u e p r i c e o f th e new b i l l s ,
The income d e r iv e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t or
g a in from th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l not
h av e any e x e m p tio n , a s su c h , and l o s s from the. s a l e o r o th e r
d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l n o t h ave any s p e c i a l treatment,
a s su c h , u n d er th e I n t e r n a l Revenue Code, o r law s am en datory or
I
su p p le m e n ta ry t h e r e t o . The b i l l s s h a l l be s u b je c t t o e s t a t e ,
i n h e r i t a n c e , g i f t o r o th e r e x c i s e t a x e s , w h eth er F e d e r a l or State,
b u t s h a l l be exem pt from a l l t a x a t i o n now o r h e r e a f t e r imposed on
th e p r i n c i p a l o r i n t e r e s t t h e r e o f by any S t a t e , o r any o f the
p o s s e s s i o n s o f th e U n ite d S t a t e s , o r by an y l o c a l t a x i n g authority.I
F o r p u r p o s e s o f t a x a t i o n th e amount o f d is c o u n t a t w hich Treasury
b i l l s a r e o r i g i n a l l y s o l d by th e U n ite d S t a t e s s h a l l be considered ]
to be i n t e r e s t . Under S e c t io n s 42 and 117 ( a ) ( l ) o f the Internal 1
Revenue Code, a s amended by S e c t io n 115 o f th e Revenue A ct o f 1941,1
th e amount o f d is c o u n t a t which b i l l s i s s u e d h e re u n d e r are sold
s h a l l n o t be c o n s id e r e d to a c c r u e u n t i l su ch b i l l s s h a l l be sold,
redeem ed o r o th e r w ise d is p o s e d o f , and su ch b i l l s a r e exclu d ed from]
c o n s i d e r a t i o n a s c a p i t a l a s s e t s . A c c o r d in g ly , th e owner o f Treasury]
b i l l s ( o t h e r th a n l i f e in s u r a n c e co m p an ie s) i s s u e d h e reu n d er need
in c lu d e i n h i s income t a x r e t u r n o n ly th e d i f f e r e n c e betw een the
p r i c e p a id f o r su ch b i l l s , w hether on o r i g i n a l i s s u e o r on
su b se q u e n t p u r c h a s e , and th e amount a c t u a l l y r e c e i v e d e i t h e r upon
s a l e o r re d e m p tio n a t m a t u r it y d u r in g th e t a x a b l e y e a r f o r which
th e r e t u r n i s m ade, a s o r d in a r y g a in o r l o s s .
T r e a s u r y D epartm en t C i r c u l a r No. 4 l 8 , a s am ended, and th is
n o t i c e , p r e s c r i b e th e term s o f th e T r e a s u r y b i l l s and govern the
c o n d i t io n s o f t h e i r i s s u e .
C o p ie s o f th e c i r c u l a r may be obtained
from any F e d e r a l R e se rv e Bank o r B ra n c h .

oOo

COTTON WASTES
(In poxmds)
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

: Total imports
: Sept. 20, 19$2 to
: October
1952

Established
: TOTAL QUOTA
•

United Kingdom ........
Canada .................
France ................
British India .... .....
Netherlands ......... ..
Switzerland ............
Belgium ................
J a p a n .......... .......
C h i n a ...... ...........
E g y p t .... .............
Cuba
Germany ...............
I t a l y ..... ........

7

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5.482,509

127,$08
8,961»
mm

_
—
^M .
mm

mm

6**77

--- l)t3,ote---------

1/ Included in total imports, column 2.
Prepared, b y tb.e 'Bixr*oa\x o f

Customs

f

Imports
1/
: Established :
i 33-1/3? of Sept. 20, 1952
? Total Quota
to October
1952
i

t

1,441,152
75,807
-

22,747

14,796

12,853
—
—
-

25,443
7,088

7

f

-

—
—
—

6,977

1 .599.886 _________ 6,577_______

3/?o

IMMEDIATE RELEASE

UZ

October 7. 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 , 1 9 3 9 , as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3
Imports Sept. 20, 1952, to October 7, 1952, inclusive

/

Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
P e r u .... .%.........
British India .......
China ...............
Mexico ............ .
Brazil .............
Union of Soviet
Socialist Republics
Argentina ...........
Haiti ...............
Ecuador ............

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

Imports
«
—
5,020,582
_

475,124
5,203
237
9,333

-1

'—
,-

Country of Origin

L

n

Imports

Established

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

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
Cotton» harsh or rough, of less than 3/4"
Imports Sept. 20, 1952, to September 27» 1952

Cotton 1-1/8* or more, but less than 1-11/16"
Imports Feb, l, 1952, to October 7» 1952

Established Quota (Global)

Established Quota (Global)

70,000,000

IM M jSJD XA TS H Î X 3 A S S

Imports

45,656,420

2 0 4 ,7 0 9

TR3ASTIRY DHPABCDK
1QK9

Washington

Imports
2 2 ,4 4 9 ,1 6 5

s—3 19 0

TH3ASURT DSPAHTKB3W
X M M S D IA T S

Vednesday,

O c to b e r

S-33-90

Washington

R S I S A S S

8,

3-95^

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 emended
COTTON (other than linters) (in pounds)
Cotton under 1— 1/8 inches other than rough or harsh under 3/4W
Imports Sept» 20, 1952» to October 7, 1952, inclusive_________

Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan ....
Peru......... ........
British India.........
China................
Mexico. ...... .
Brazil.... ........
Union of Soviet
Socialist Republics
Argentina............
Haiti..... ...........
Ecuador.... ..........
l/
2/
¿/

7S3,8l6
2 ^ 7 ,9 5 2
2,003,>*83
1 ,3 7 0 ,7 9 1
8,883,259
618,723

Imports
—
—
5,020,582
—

4 7 5 ,124
5 .2 0 3
237

9,333

—
—

Country of Orgin

Established Quota

Honduras........... .
Paraguay..... ..........
Colombia...... .........
Iraq. •............. .
British East Africa«....
Netherlands E. Indies...
Barbados.............
l/other British T*1‘
. Indies.
Nigeria........ ........
2/0ther British W. Africa
¿/Other French Africa....
Algeria, and Tunisia....

752
871
124
195
2,240
71,388
—
2 1 ,3 2 1

5,377
16 ,0 0 4
689

-

Imports
—
_
—
—
—
—

_

mm
—
-

Other than Barbados , Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.

Cotton, harsh or rough, of less than 3/4"
imports Sept. 20, 1952, to September 27, 1952

Cotton l-l/8H or more, but less than l-ll/l6n
Imports Feb. 1, 1952, to October 7 , 1952

Established Quota (Global

Established Quota (Global)

70,000,000

Imports
204,709

45,656,420

Imports
22,449,165

CO

—2 —

COTTON WASTES

(In "oounds)

COTTON CARD STRIPS made from cotton having a staple of less than I-3 /1 6 inches in length, COMBER
•'ÎASTE, LAP ¥ASTE, SLIVER HASTE, AND ROVING WASTE, WHETHER OR NOT MANÜPACTTTËBD OR OTHERWISE
ADVAnCED IN VALUE: Provided, however, that not more than 33—1/3 percent of thé quotas shall
he filled by cotton wastes other than comber wastes made from cottons of 1 —3 /1 6 inches or more
in staole length in the case of the following countries: United Kingdom, Prance, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin

:

United Kingdom.........
Canada*•*•••••••••••••##
Prance.. *....... .
British India...... .
Netherlands.......... .
Switzerland.............
Belgium...... ..........
Japan...................
China.................. •
Egypt............ ......
Cuba*...............
Germany...............
Italy........ .. ........

Established
TOTAL QJJOTA

Total imports
: Sept. 20, 1952 to
October 7, 1952

7
2 3 9 .6 9 0

227,1*20
6 9 ,6 2 7

38.559
3M.535
17,322
8*135
6,5l&
76,329
21,263

Included in total imports, column 2•
Prepared by the Bureau of Customs

S-3 19 O

12 7*50 8

8,961*

6 6 ,21*0
1*1*.388

Imports
l/
Sept. 2 0 f 1 9 5 2 to
October 7, 1952

.

1 ,1*1+1 , 1 5 2

^.3 2 3 ,^

‘>,HS2,')09

1J

:

Established
33-1/3# of :
Total Qpota

-,
—
6 ,5 7 7

^3.tf*9_______

75,807
2 2 .7 ^ 7
1U.796
12,853
25.^3
7,088
1 .5 9 9 .8 8 6

- ' -- ------f—
■‘y *£ &>!£
■
— *
- ■
.. .
—
—
•—
6 .5 7 7
6 .5 7 7

-

2

-

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes-made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin

: Total imports
: Sept. 20, U g l to
.5 Sept» 19, 1992

: Established
: TOTAL QUOTA
*
•

United Kingdom ...... ..
Canada ..............
France ..............
British India ...... .
Netherlands .........
Switzerland .........
Belgium ..............
J a p a n .............. .
China ...............
Egypt ................
C u b a ..... ...........
G e r m a n y .............
Italy ...............

4,323,457
2 3 9 ,6 9 0

41*1,647
233,803

6 9 ,6 2 7

69,627

227,420

68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5.482,509

mm
mm

Customs

1,441,152
75,80?

l/

441,647

-

22,747
1 4 ,7 9 6

12,853
-

mm

24,890
7*049

----- 7 7 7 ,0 1 6 --------

1/ Included in total imports, column 2.
■ prepared, lay the Bureau o f

: Established :
Imports
* 33-1/3? of : Sept. 20, 195 ft
: Total Quota t to Sept. IQ,

-

25,443
7,088
1 .59 9 .886

24,890
7'0i|Q
------ 473,586— -----

r=y

7 3/ ff

IMMEDIATE RELEASE

y V

-October-7,.195>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/A”
Imports Sept. 20, I95>1, to September 19, 1952, inclusive
Country of Origin

Established Quota

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

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

Imports

Uo,l85
_

8,883,259
lii2,837

475,124
5,203
237
9,333

mm
mm

-

Country of Origin

Imports

Established

Honduras .... .........
Paraguay ..............
Colombia ..............
Iraq ..................
British East Africa ...
Netherlands E. Indies
Barbados ...'...........
l/Other British W. Indies
Nigeria
2/0ther British 1. Africa
3/Other French Africa ...
Algeria and Tunisia ...

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
v
Cotton, harsh or rough, of less than 3/4*
Imports Sept. 20, iffgl, to September 19, 1952

Cotton 1-1/8* or more, but less than 1-11/161
Imports Feb, 1, 1952, to September 19, 1952~

Established Quota (Global)

Established Quota (Global)

7 0 ,0 0 0,000

H4iHLDIA.T.U RDIi3ASJ3

Imports
7 ,12 6 ,6 2 8

45,656,420

TRSA.SUHY DEPARTKBiH:

Washington

Imports
22 ,211,756

S-3X9X

TRSASURY

DEPARTMSiiT

S-3X9i

Washington

H-faULDIAT.-H BJJlu 3ASJS

Wednesday. Octo'ber 8 , 19 5 2
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 linters) (in pounds)
Cottpn under 1-l/g,inches other than rough or harsh under 3/4”
Imports Sept. 20* I9 5 I, to September 19, 1952, inclusive
Country of Origin

Established Quota

Egypt and the Anglo—
Egyptian Sudan....
Peru.................
British India......••
China........... .
Mexico. ...... .
Brazil..............
Union of Soviet
Socialist Republics
Argentina............
Haiti...............
Ecuador..............
Xj

2/
¿/

783,816
¿47.952
1 J
2,003,483
1,370,791
g,SS3.259
618,723
r

9

475.124
5,203
237
9,333

Imports
*

Country of Origin

Established Quota

Honduras..............
Paraguay....... .
Cn]ombia*.......___ ,»
40,185
Iraq............ .
.British East Africa...
8 ,3 3 3 ,2 5 9
Netherlands E. Indies.
142,837
Barbados........ .
1/Other British w . Indies
Nigeria................
2 J Other British Tf. Africa
3/Other French Africa....
Algeria and Tunisia

Imports
_

752

871
124
I9 5
2,240
71,388
,
—

. r

• ’«
•- —

2 1 ,3 2 1

—

5,377
16,004

—

689

—

''
■ ‘—

Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.

Cotton, harsh or rough, of less than 3/*+”
Imports S e p t / PC, 1 9 5 1 , t o S e p te m b e r 1 9 , 1 9 5 ?

Cotton l-l/8H or more, but less than l-ll/l6H
Imports Feb. 1, 1952, to September 19» 1952

Established Quota (Global)

Established Quota (Global)

70 ,000,000

Imports

7,126,628

1*5 .6 5 6 ,^ 2 0

N

Imports
2 2 ,2 1 1 ,7 5 6

jp*
CO

COT-rO J »2ASTE3

(In pounds)

S O T ON CARD STRIPS made from cotton having a staple of less than l-*3/6 inches in length, COt®SR
WASTE, LAP WASTE, SLIVER WASTE, AID ROVING tr\STE, WHETHER OR TOT KANUFiC'FIRED OR OTHERWISE
ADV\;JGSD IN VALUE: Provided, however, that not more than 33““l/3 "Percent of the quotas she.ll
he filled by cotton wastes other than comber wastes made from cottons of I-3 /I6 inches or more
in stanle length in the case of the following countries: TTnitedKingdom, Prance, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin

:

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

Established
TOTAL QUOTA

:

A 323. **57
2 3 9 ,6 9 0
2 2 7 ,1*20
6 9 ,6 2 7
6 8 ,2 H 0

UH,3 8 g
38*553
3 ^1 . 5 3 5
1 7 ,3 2 2

8,135
6 ,5 HH
7 6 ,3 2 9
2 1 ,2 6 3

5,482,509
JL/

Include!in total imports, column 2*
Prepared by the Bureau of Customs

Total imports
Sent. 20, 1 9 5 1 to
Sent. 19, 1952
HHl,6H7
233,803
—
6 9 ,6 2 7
—
—

2 U, 89 O

:

Established
33-1/3# of
Total 'Quota

«1»

2 U ,8 9 0

—

25.443
7,088

7 7 7 .0 1 6

1 ,5 9 9 ,8 8 6

Imports
1/
Sept. 20, 1951 to
Sept. 19* 1952
UU1 ,6U 7
—
-

l,UUl, 1 5 2
75,807
22,747
14,796
12,853
-

7 ,0 4 9

:

7 ,0 4 9

473,586

\

'Twtv

/

IMMEDIATE RELEASE
L u / O cto b e r ^ 1952

^ £/

V' <•*»■
W”75// /■

The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s sh o w in g t h e imports
f o r c o n s u m p t io n o f c o m m o d itie s w i t h i n t a r i f f - r a t e q u o t a l i m i t a t i o n s fro m th e begin­
n i n g o f t h e q u o t a p e r i o d s t o S e p te m b e r 2 7 * 1 9 5 2 * i n c l u s i v e , a s f o l l o w s *

Unit
of
C om m odity

P e r io d an d Q u a n tity
3 ,0 0 0 ,0 0 0

G a llo n

20,boli

C a le n d a r y e a r

1 , 500,000

G a llo n

73«

(Ju ly 16, 1952(O c t. 3 1 , 1952

5 , 000,000

P oun d

302,6lb

3 1 ,1 *7 2 ,1 0 8

Pound

a)
Q uota fille d

1 5 0 , 0 0 0 ,0 0 0
7 9 8 , 9 0 0 ,0 0 0

Pound
Pound

86,8ij7

5 ,0 0 0 ,0 0 0

Poun d

Quota fille d

G a llo n
G a llo n

Q uota fille d
Q uota fille d

G a llo n

Q uota filled!

C a le n d a r y e a r

W h ite o r I r i s h p o t a t o e s *
c e r t i f ie d see d * * * * *
o th e r • • • * • • • • • *

1 2 m on th s fr o m
S e p t. 1 5 , 1952

W a l n u t s ................................* *

C a le n d a r y e a r

A lm o n d s*
sh e lle d * • • • • • * • •

C a le n d a r y e a r
V e n e z u e la
2 * 9 5 6 * 8 U l,9 U 9
N e th e rla n d s
9 3 0 , 8 5 7 ,6 5 1
O th e r
C o u n tr ie s
l,0 9 0 *ll;8 ,8 0 0

3,619,87b

1 2 m on th s fr o m
*

p rep ared

*

* * * .....................

: Inports as
t September 27

.C a le n d a r y e a r

P ish * fr e s h o r fro z e n *
f ille t e d , e t c *, cod,
haddock, h a k e , p o llo c k ,
c u s k , an d r o s e f i s h , . ,

P e tro le u m an d p e tr o le u m
p ro d u c ts • * • • • • * • <

I

U ,5 0 0 ,0 0 0

O cto b e r 1 , 1 9 5 1

P oun d

1*98,109 j

O f t h e t o t a l , n o t m ore t h a n 5 0 0 ,0 0 0 p o u n d s s h a l l b e b l a n c h e d , r o a s t e d , o r other­
w i s e p r e p a r e d o r p r e s e r v e d a lm o n d s ( n o t i n c l u d i n g alm o n d p a s t e ) *

( 1 ) I m p o r t s f o r c o n s u m p tio n a t t h e q u o t a r a t e a r e l i m i t e d t o
t h e f i r s t n in e m o n th s o f t h e c a l e n d a r y e a r *

23,6oU*08l pounds

during

48

m e d i a t e RELEASE
Wednesday» October 8, 1952

GO

TREASURY DEPARTMENT
Washington
S-3192

The Bureau of Customs announced today preliminary figures showing the importsfor consumption of commodities within tariff-rate quota limitations from the begin­
ning of the quota periods to September 27, 1952, inclusive, as follows:
:
j
:

Commodity

Period and Quantity

: Unit
•#
of
: Quantity

Imports as of
Sept* 27,1952

Whole milk, fresh or sour ... Calendar year

3,000,000

Gallon

20,1*01*

Cream *»»•»•••••**•*•*••** ... Calendar year

1 ,50 0 ,0 0 0

Gallon

738

5 ,0 0 0 ,0 0 0

Pound

Butter. ••..••••••••*.....

(July 16, 1952 ••’(Oct. 31, 1952

Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish ..... ... Calendar year
White or Irish potatoes:
certified seed
other

t#* 12 months from
. Sept. 15, 1952

m

Walnuts .................. ,•• Calendar year
Petroleum and petroleum
proaucts

••• Calendar year
Venzuela
Netherlands
Other
Countries

I
31,U72,108

Pound

(1)
Quota filled

1 5 0 ,0 0 0 ,0 0 0

798,900,000

Pound
Pound

86,8h7

5 ,00 0 ,0 0 0

Pound

Quota filled

2 ,956,81*1,91*9 Gallon
930,857,651 Gallon

Quota filled
Quota filled

1,090 ,1 )4.8 ,8 0 0

Quota filled

Gallon

Almonds:
shelled ...............
preoared ...... .

••*

October 1,1951

302,611*

* U, 500,000

Pound

3,619,871+
1*98,109

* Of the total, not more than 500,000 pounds shall be blanched, roasted, or other­
wise prepared or preserved almonds (not including almond paste)*

(l) Imports for consumption at the quota rate are limited to 2 3 »60 l4.,08 l pounds
during the first nine months of the calendar year*

f

t

j

IMMEDIATE RE1EASE
O c to b e r 7 , 1 9 5 2

&
The B u r e a u o f C u sto m s an n o u n ced t o d a y p r e l i m i n a r y f i g u r e s sh ow in g the
im p o r t s f o r c o n su m p tio n o f c o m m o d itie s o n w h ich q u o t a s w e re p r e s c r i b e d by
t h e P h i l i p p i n e T r a d e A c t o f 19U6, fr o m J a n u a r y 1, 195>2, t o S e p te m b e r 27,
19 5 2 , in c lu s iv e , a s fo llo w s$

P ro d u c ts o f th e
P h ilip p in e s

1
:
*»

m

B u tto n s » » » • • « » ,

i
E s t a b l i s h e d Q u o ta :
Q u a n tity
:
•
8 5 0 ,0 0 0

u n it o f
Q u a n t it y

G ro ss

?
I n p o r t s as of
: Septem ber 2 7 , 1$

1*95,622

C ig a rs » « « » • • • •

200 , 000,000

Humber

C oconut O il

14*8, 000, 000)

Pound

75,920,187

1,151,177

C ord age • • • • • • • •

6 , 000,000

Pound

2,677,569

H ic e • • « • • • • • • «

1 , 01*0,000

pound

m

l,9 d i,0 0 0 ,0 0 0

P oun d

( R e f in e d • • • •
Su gars

m

(U n r e fin e d • » •
T obacco * * « • » « • • «

1,5110,705,25?

6 , 500,000

Pound

1 ,8 9 6 ,W

TREASURY DEPARTMENT

Washington
3-3193
IMMEDIATE RELEASE

Wednesday, October 8, 1932
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which quotas were prescribed by
the Philippine Trade Act of 191*6, from January 1, 1932, to September .27,
1952, inclusive, as follows:
••
••
••
••

Products of the
Philippines
Buttons • • • • • •

Established Quota
Quantity

•t
: Unit of
: Quantity
••

••
: Imports as of
: September 27,1952
••

0

850,000

•

200,000,000

Number

1,151,177

Coconut Oil • * • • # •

1*1*8,000,000

Pound

75,920,187

Cigars • • • • • •

ft

Gross

1*95,622

Cordage • • • • • •

• ft

6,000,000

Pound

2,677,569

Rice

ft

•

1,01*0,000

Pound

-

1 ,90)4,0 0 0 ,0 0 0

Pound

1,5)40,705,257

6,500>000

Pound

1,896,14*8

Sugars

(Refined

• ft •

(Unrefined
Tobacco • • • • • • •

ft

•
•

J - 31?*/

_gO R rIMMEDIATE RELEASE,
i

U

^

O c t o b e r J U 1 9 9 2 -----------

The Bureau of Customs announced
prell lary figures showing the
sec
quantities of wheat and wheat flouij
idrawn from warehouse, foy
consumption under the import quotas established in the President’
s proclamation!
of May 2 8 , 1 9 U l , as modified by the President’
s proclamation of April 13 loKpI
for the 1 2 months commencing May 2 9 , 1 $ $ 2 :, as follows:

Country
of
Origin

Wheat
Established s
Imports
Quota
iMay 29, 1992b to
«October 7t 1992

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

7 9 5 ,0 0 0

-

100

—

100
*1 0 0

-

100
2 ,0 0 0
100

C -'Os

i , oÖö
-

1,212,250

2 h ,0 0 Q

'

mm

13,000
13,000

mm

75,000

mm

8 ,0 0 0
1 ,0 0 0
■mm
mm
mm
mm

1m
m
mm
I*

-

mm

-

mm

-

mm

mm

-,

1 ,0 0 0
100
100

9,000
9,000
1,000
1 ,0 0 0
1 ,0 0 0
H i,000
2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
l x0 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
1 ,0 0 0
—

—

100
100
8 0 0 ,0 0 o

3 , 815,000

7 9 k ,^

100

-

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
: May 29, I9$d
s to October ?

—
m & s

I l , 0 0 0 ,0 0 0

là

TREASURY DEPARTMENT
Washington

4
S-319U

IMMEDIATE r e le a se ,

Wednesday, October 8, 1952
The Bureau of Customs announced today preliminary figures showing the

quantities o f wheat and wheat flour authorized to be entered, or withdrawn from
warehouse, for consumption under the import quotas established in the President1
proclamation of May 28, 19)41, as modified by the President1s proclamation of
April 13? 19U2, for the 12 months commencing May 29, 1952, as follows:

Mie at
Country
of
Origin

Established
: May 29, 1952, to
Quota
•
«

•
0

(B u sh e ls)
7 9 5 ,0 0 0
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
A u stralia
Germany
100
Syria
100
New Z ealand
Chile
100
Netherlands
2,000
Argentina
Italy
100
Cuba
'10 0
—
France
Greece
Mexico
100
mm
Panama
Uruguay
Poland and D a n z ig
mm
Sweden
mm
Yugoslavia
_
Norway
mm
Canary I s l a n d s
Rumania
1,0 0 0
Quatemala
100
Brazil
100
Union o f S o v i e t
S o c ia lis t R e p u b lic s
100
Belgium
100

800,000

O c to b e r 7 , 1 9 5 2
(B u sh e ls)

794,576
*•

-

-

-

—
—

m
mm
mm
-

■

-

.

mm
mmmm
mm

«
•

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established;
Imports
Quota
: May 29, 1952
: October
7

>

( P o u n d s;

3 , 815,000
2^,000
13,0 0 0
13,0 0 0
8,000
75,000
1,0 0 0
5,000
5,o o o
1,0 0 0
1,0 0 0
1,0 0 0
l i +,000
2,000
12,0 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
1,0 0 0
1,0 0 0
1,0 0 0
1,0 0 0

1 , 2 12 ,2 6 0

«■»

-

-

-

-

**

»
«
*
mm

«
—

mm

-

»

(P o u n d s )

-

-

«•

«

-

-

-

-

'79li, 5'7o

IT,000,000

1 , 2 12 , 30 k

HILASE

mmim mm?kms$

S a tu rd a y s O cto b e r Ä

1952.

T he S e c r e t a r y o f t h e t r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t t h e t e n d e r s f o r
1 1 *1 *0 0 *0 0 0 ,0 0 0 » o r t h e r e a b o u t s * o f 9 1 - d a y T r e a s u r y h i l l s t o h e d a t e d O c to b e r 16,
in d t o e a t e r s J a n u a r y 1 5 » 1 9 5 3 , w h ic h w e r e o f f e r e d o n O c t o b e r 7 , w e re op en ed a t the
¡f e d e r a l R e s e r v e B a n k s o n O c t o b e r 1 0 «
T he d e t a i l s o f t h i s i s s u e a r e a s f e l l e m i
T o t a l a p p l i e d f o r - £ 2 » 2 3 ? « 7 3 2 .0 0 0
T o ta l a c c e p te d
~ X *b Q l,0 8 U *0 0 0

A v erag e p r ic e
R ange

( i n c l u d e s £ 2 0 9 , 8 5 5 , 0 0 0 e n t e r e d on a
n o n ~ e a a p e t i t i v » b a s i s a n d accepted in
f u l l a t t h e a v e r a g e p r i c e shown below)
- 9 9 * 5 3 6 E q u i v a l e n t r a t e o f d i s c o u n t a p p r e s e . 1.836$ per

of accented competitive bidet
- 99 «580
- 9 9 *5 3 3

H ig h

£300,000)

(E x c e p tin g on » te n d e r o f

äquivalent

r a t e of
«
«

«

discount
«

a p p r o x . 1*662$
»
x «8 h 7 ^

per
»

*

( 2 1 p e r c e n t o f t h e am o u n t b i d f o r a t t h e le w p r i c e w a s a c c e p t e d )

f e d e r a l R ese rv e
D istr ic t

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

Accepted

B o sto n
Hew f o r k
P h ila d e lp h ia
C le v e la n d
R ich m on d
A tla n ta

1

«

19,035,000
1 ,5 2 8 ,2 1 3 ,0 0 0
1 0 9 , 2 9 5 ,0 0 0
5 5 ,o o ÿ ,o o o
2 0 ,5 6 2 ,0 0 0
3 5 ,1 3 3 ,0 0 0

&1ÌC&F
0
*^>*wy*

2 U»,b5 i»,000

«P
*—

a t * lo u is

3 7 ,3 1 7 ,0 0 0
1 3 ,5 7 1 » , o o o
5 U ,3 1 *0 ,0 0 0

t#4ran»«y«Vti «

K an sas C it y
D a lla s
Sen F ra n c isc o

6l , 80U,0 0 0
TO SAI

T o ta l

lS ,5 3 5 ,o o o

888,556,000
9b,2 9 5 , 000
u , 009,000
17,967,000
27 , 133,000
135,166,000
30,938,000
33,371»,000
b it,632,000
b 7 , 25b,OOO

6 8 ,9 9 6 ,0 0 0

60.225.OCO

« 2 ,2 3 7 ,7 3 2 ,0 0 0

|l ,b 0 1 , 08b,000

83
release morning n e w sp a p e r s ,

Saturday, O ctob er 1 1 , 1 9 5 2 .

S-3195

The S e c r e t a r y o f th e T r e a s u r y announced l a s t e v e n in g t h a t th e
tenders f o r $ 1 ,4 0 0 ,9 0 0 ,0 0 0 , o r t h e r e a b o u t s , o f 9 1 -d a y T r e a s u r y b i l l s
to be d ate d O ctob er 1 6 , 1 9 5 2 , and t o m atu re Ja n u a r y 1 5 , 1 9 5 3 , w hich
were o ffe r e d on O ctob er 7 , w ere opened a t th e F e d e r a l R e se rv e B an ks
on October 1 0 .
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T o tal a p p l i e d f o r - $ 2 ,2 3 7 ,7 3 2 ,0 0 0
T o tal a c c e p te d
- 1 ,4 0 1 ,0 8 4 ,0 0 0 ( in c lu d e s $ 2 0 9 ,8 5 5 ,0 0 0

Average price

entered on a non-competitive
basis and accepted in full
at the average price shown
below)
- 99,536 Equivalent rate of discount approx.
1 . 836$ p e r annum

Range of accepted competitive bids:

(Excepting one tender of
$300, 0 0 0 )

High

- 9 9 . 58O E q u iv a le n t r a t e o f d is c o u n t a p p r o x .

1 .662$ per annum
- 99.533 Equivalent rate of discount approx.
.1,847$ per annum

Low

(21 percent of the amount bid for at the low price was accepted)
Federal R e se rv e
D istrict

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

Boston
New York
Philadelphia

8 8 3 9 9 6 ,0 0 0

000
18,535,
OQO
r-r-r
uoo,bpo,
000
9 4 , 2 9 5 . 000
4 3 , 009, 000
1 7 , 9 67, 000
2 7 , 1 3 3 , 000
1 1 5 , 16 6 , 000
3 0 , 9 38, 000
1 3 , 3 7 4 , 000
4 4 , 6 3 2 , 000
4 7 , 2 5 4 , 000
60,225 ,000

$2, 237,732,000

a,4oi,o84, 000

$

C lev elan d
Richmond'

Atlanta

TOTAL

T o ta l
.A c c e p ted

1 9 ,0 3 5 ,0 0 0
1 , 5 2 8 , 2 13 ,0 0 0
1 0 9 .2 9 5 .0 0 0
5 5 .0 0 9 .0 0 0
2 0 . 5 6 2 .0 0 0
35.133.000
2 1 4 .4 5 4 .0 0 0
3 7 .3 1 7 .0 0 0
1 3 .5 7 4 .0 0 0
5 4 .3 4 0 .0 0 0
61.80 4 . 0 0 0

0O0

w h ic h ho c o n o i d « « o b j e c t i o n a b l e fr o m a n y s t a n d p o i n t . X a s s n » t h a t
y o n w i l l t e l e p h o n e W a i u s o o n a s i n d i c t w s n t h a s b e e n h a n d e d down
ai»d t h a t i n s u c h t e l e p h o n e c o n v e r s a t i o n y o u w i l l i n d i c t s a n y ch an ge«
w h ic h o u g h t t o a p p e a r i n p r e s s r e l e a s e .
w o u ld p r e f e r t h a t y o u t e l e ­
ph on e m
a t h o n e t e l e p h o n e ( J a c k s o n 7 - 1 7 5 9 ) i f i n d i c t iae n t I s handed
down a f t e r h a s h in g t o n o f f l e e h o u r s .
...................

X

3 . X s*x > rt l i c e n s e d i s c u s s e d w ith d e T e v m llo s h a s a l r e a d y b een
s e n t o u t . He i s a r r i v i n g S a n F r a n c i s c o 1 6 3 0 F r i d a y on U n ite d & ir l i n e s f l i g h t 6 2 1 . S u g g e s t y o u n ake h o t e l r e s e r v a t i o n fo p F rid a y
n i g h t . L u n n 's a d v a n c e i s b e i t « t a k e n c a r e o f . T o u r 1 3 5 0 a d v a n c e
h a s a lr e a d y been se n t o u t .

4 . I f e e l c e r t a in th a t i t w i l l n ot be n e c e ssa r y f o r you to
r e g a i n i n S a n F r a n c i s c o b e c a u s e o f l i n g S i n g C hong c a s e h o w ev er
b e f o r e w a k in g d e c i s i o n r e g a r d i n g y o u r r e t u r n we w o u ld l i k e t o h e a r
f u r t h e r a b o u t y o u r f i n d i n g s ©a B an k o f C a n t o n . X w o u ld l i k e t o
f e e l t h a t B a n k o f C a n to n p r o b le m I s u n d e r c o n t r o l b e f o r e y o u le a v e
C o a st.

( S p u d ) Mattliew J. M a t s
M ark s

ccs

l a s e r s . M ark s,

h JM a rk ssb l
10/8/52

London (NT),

R o s e , FAC F i l e s

rPfc

- 2
/ t h e T r e a s u r y D e p a r tm s n t s t a t e d t h a t t h e d e f e n d a n t s e n g a g e d v e iy
a c t i v e l y i n t h e b u s i n e s s i t s l i d i n g i l l e g a l r e m i t t a n c e s t o Communist
C h in a f r o m J a n u a r y t h r o u g h N ovem ber 1 9 5 1 * t h e y a d v e r t i s s d t h e i r
f a c i l i t i e s i n t h e Sam F r a n c i s c o C h in e s e n e w s p a p e r s , n o t w it h s t a n d in g
t h a f a s t t h a t t h e y a r e n o r m a l l y e n g a g e d i n a r e t a i l b u s i n e s s u n r e la te d
t o t h e h a n d l i n g o f r e m i t t a n c e s f o r o t h e r p e r s o n s * t h e b u lk o f t h s
d e f e n d a n t s 1 b u s i n e s s w as d e r i v e d f r o m t h e l a r g e C h i n e s e p o p u la t io n o f
S a n F r a n c i s o o a n d O a k la n d , C a l i f o r n i a , b u t many o f t h e i r r e m it t a n c e s
w e re r e c e i v e d b y m a l l fr o m p o i n t s a s f a r d i s t a n t a s hew F o r k C i t y ,
S e a t t l e , and. M e x ic o * T h e s e n d in g o f I l l e g a l r e m i t t a n c e s t o Communist
C h in a a p p e a r s t o h a v e b e e n s u d d e n l y h a l t e d b y t h e d e f e n d a n t s i n th e
m id d le o f N ovem ber 1 9 5 1 when I t w as p r o m i n e n t l y a n n o u n c e d i n t h e San
F r a n c i s c o p a p e r s t h a t o f f i c i a l s o f t h e T r e a s u r y D e p a r tm e n t h ad a r r iv e d
i n S a n F r a n c i s c o t o i n v e s t i g a t e t h e C h in e s e e x t o r t i o n r a c k e t mud
i l l e g a l r e m i t t a n c e s t o C om m un ist C h in a *
/ t h e T r e a s u r y D e p a r tm e n t s t a t e d t h a t t h e in d i c t m e n t a n d th e con­
t e m p l a t e d p r o s e c u t i o n o f t h i s c h a n n e l b y A s s i s t a n t U n ite d S t a t e s
A t t o r n e y D raw ee o f t e F r a n c i s c o i s b u t o n e o f a s c r i e s o f m e asu re s
r e c e n t l y u n d e r t a k e n t o e f f e c t a m ore s t r i c t c o m p lia n c e w it h t h e
o r s i g n A s s e t s C o n t r o l H c g u l a t t o n a . Among t h e m ore r e c e n t o f su c h
m e a su re s a r e t h e in d ic tm e n ts r e tu r n e d i n Ju n e o f t h i s y e a r a g a in s t
t h e f o l l o w i n g S a n F r a n c i s c o f i r m s a n d i n d i v i d u a l s t G e o r g e Chew
d o in g b u s i n e s s a s t h s C o m fo r t S h o e S t o r e a n d t h e Chew C o m m e rc ial
C om pany, 7 5 4 G r a n t A ven u e j í n u l a Phong d o in g b u s i n e s s a s t h e S e r v ic e
S u p p ly C om pany, 8 3 1 - 8 3 3 G r a n t A v e n u e | a n d Book flin g C h a n , a n in d iv id u a l
a n d Bock K in g t r a d i n g € o r p * f 7 2 9 G r a n t A v e n u e * I n a d d i t i o n , t h e T rsa sj u r y D e p a r tm e n t c a l l e d
a t t e n t i o n t e oS épwt m e a s u r e s t a k e n b y th e Foreign
A s s e t s C o n t r o l i n l a t e 1 9 5 1 t o s t a m p o u t t h e e x t o r t i o n r a c k e t y iariw ri/ 9 m t h e i n d i c t m e n t o f t h e C h in a B a l l y h e w s, s C o a a a u n ist d a i l y pu b lish ed
/ i n Hew f o r k , f o r v i o l a t i o n s o f t h e F o r e i g n A s s e t s C o n t r o l R e g u la t io n s }
a n d t h e s e i z u r e f r o » t h e m i l s u n d e r s e a r c h w a r r a n t s o f a number o f
j
r e m i t t a n c e s i n t e n d e d f o r b e n e f i c i a r i e s r e s i d i n g i n Com m unist C h in s
I an d t h e su b se q u e n t b lo c k in g o f th e s e i s e d in str u m e n ts*

^

/ ^ S i m u l t a n e o u s l y w i t h t h e r e l e a s e o f i n f o r m a t i o n c o n c e r n in g th e
in d i c t m e n t o f t h e ü j i b a n T r a d i n g Company a s a r e m i t t a n c e c h a n n e l
t o C om m unist C h i n a , t h e T r e a s u r y D e p a r tm e n t H a t e d t h a t t h e f u l l e s t
a t t a i n m e n t o f F o r e i g n A s s e t s C o n t r o l o b j e c t i v e s I s d e p e n d e n t o n th e
c o n t i n u i n g p a t r i o t i c c o o p e r a t i o n o f i n d i v i d u a l m em bers o f t h e C hinese
c o m m u n itie s
i s r e q u e s t e d t h a t y o u e x a m in e p r o p o s e d r e l e a s e f o r s c c u r a c y p a r t i c u l a r l y s e c o n d p a r a g r a p h s p e c i f y i n g t o t a l o f r e m it t a n c e s
c h a rg e d i n f i n a l co u n t o f in d ic tm e n t*
I t i s a l s o r e q u e s t e d t h a t you
s u p p l y n e c e s s a r y i n f o r m a t i o n r e g a r d i n g num ber o f c o u n t s i n in d ic tm en t.
P l e a s e c l e a r p r o p o s e d p r e s s r e l e a s e s o o n e s t w i t h P r i m e s * I t I s su g ­
g e s t e d t h a t y o u c o n s u l t h im p a r t i c u l a r l y w i t h r e s p e c t t o f o u r t h p a r ^
g r a p h o f p r o p o s e d p r e s s r e l e a s e t o s e e i f t h e r e i s a n y m a t e r i a l t V/

jfetthew d. Hurle»
Foreign Asseta Control
l&ehaoge Stabilisation
OCT

81981

wmrm
to
Btm Rose
Bah Franoisco
1. Following i» tex t of proposed proas release m Mm San indictswnt
foderai grand jury a t San Francisco today iwlicte«
Francisco f i n s f o r violation» o f the Foreign Acacia Control Rx _
which were leaned by the Treasury Department on Decenber 1?, 1V$Q. The
Andletsent* announced fey «Astted State» Attorney Chauneey Traautele and
Asslatent Qnlted State» Attorney Robert Irenes a t San Francisco* charged
the f i r e with affecting unlicensed reagitane«» to Cenaamist C h in * over
a period o f approatnately one year. Tide 1 » the f o u r t h » n e h in d ic t a e n t
«G lieli )ua been fpturned In th® San Francisco area 1» recent « o a t h s .
In c.* 59 Beverly Placo, 3an Franeiaeo
Street* San Franeiaeo. the
the la st of «Men charge« the Mm San
re^ ttan ces to
7 4 4 tifo id i

and it a »onager* Tea Ranbock,
Indictment contain»
count»,
trading Ccngmsqr with sensing
to Communist China
f M W

/ f lie v i o l a t i e n » w e re u n c o v e r e d b y F o r e i g n A s s e t s C o n t r o l r e p r e ­
s e n t a t i v e » t a i d e d by U n ite d S t a t e « C u sto m « a g e n t e * s p e c i a l l y assigned
t o t h e s e S a n F r a n e i a e o i n v e s t i g a t i o n e • E v i d e n c e o f t h e v i o l a t i o n s was
s u b m it t e d t o t h e U n ite d S t a t e s A t t o r n e y ^ O f f i c e fo r t h e n o r th e r n Dis­
t r i c t of C a l i f e r n i a i n S a n F r a n c i s c o .
h e T r e a s u r y D e p a r tm e n t e l a t e d t h a t s p e c i a l r e p r e s e n t a t i v e s o f
t h e F o r e i g n A s s e t s C o n t r o l i n v e s t i g a i i n g t h e M r B an T r a d in g Company
u n c o v e r e d a n e l a b o r a t e sc h e w e d e v i s e d fey t h e e o a p a n y t o e v a d e th e
F o r e i g n A s s e t s C o n t r o l R e g u l a t i o n s • W h ile t h e t t b t S a n r e c o r d s p u r­
p o r t e d t o show p r a c t i c a l l y a l l t h e D o n e fl e i a r i e # o f t h e r e m i t t a n c e s
t o fee r e a l m e n t e o f t h e B r i t i s h Crow n C o lo a y o f Bong K o n g* t h e n a se
an d t h e t r u e a d d r e s s o f t h o s e b e n e f i c i a r l e » who l i v e d i n C e w s e n is t
C h in a w e re s e p a r a t e l y a t t a c h e d t o t h e r e n t t t a n c e s l i p » a c t u a l l y
fo r w a r d e d t o t h e a s s o c i a t e o f t h e w in S a n T r a d i n g Company i n lo n g
l o n g * I n t h i s w ay I t w a s p o s s i b l e t o i n s t r u c t t h e Hong Kong a s s o ­
c i a t e o f t h e m n S a » T r a d i n g Company t o f o r w a r d s p e c i f i c r e m it t a n c e *
t o t h e i r d e s t i n a t i o n i n C a a e u n l s t C h i n a * w h ile a t t h e s a n e t i n s th e
l o c a l r e c o r d s o f t h e com pan y i n S a n F r a n c i s c o V iew ed a n a p p a r e n t l y
l e g i t i m a t e r e m i t t a n c e t o Hong Kong.

fc>

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5- 3
t o s t o fi

I .p »p *
Pm

itut
Èfàmctomâ

I s & i e l t o p ® w h ic h I w i l l b * ^ c i t i n g

m i

ta

3a... lias# w ithin ibm m & cb ctr m inutes* f<m f « $ #1 courte*.
psrMc^&rly ini&reotod in that part #£ tis# teletype whisfe
¡¡¡p propemi p m i nsfeMt e& th* Min 3 m trading
C o q p M « m y m « H I nota i t o tèa t « t of M ©cosmee to
•to to«» I w ill b» iM u d % todgpsoMi of «egr «toga« toeh
IHhl ta bo made in t M propoasil press release*

In order tboet yw mgr bo ready to go into action when
m m m im a p im lig h t from t o ftoaeîsee» % suggest triai

you sito a auftlaftr of copies of the draft n im m ms It son
BtmâM* ৠm<m as I hecr I m Se© Base in B m Froeoimo ï

sbadì im l^m w t o «lib a r ftt tbo offioo or mi your t o o t o
indioato to you Oboi to u te s t o o bom mû® in o tr d raft*

T®n orni tèrni m b

tèa changes by h t o on jraar «totf# t o h t o

theot out to the Chines© im m in t o Xartetoth a sria te a o f
doler*
X

that tèlo to c noi &ae»s ug> to ' sooiml piane which

j#e

*soy b««® bod for tasaocrow night*
t o l t o fir n m on i t o to te r#

Too a t t i bm to rin g

t o t riàrde»

(Signed) Matthew J. Marks
Hr* S t o tentai
s^pm^ialag Agent* S n t o m e M i t Field Offio«
loroign Assets Control* Treasury Deportami
C* 5* t o n i m i » « Building* torn 6
F o ia? Square

Mm Torte* t o forte

MJMarkeie©
10/ 2/52

TREASURY DEPARTMENT
Information S e rv ice

WASHINGTON, D .C .
àc

[IMMEDIATE RELEASE *

Friday^ October 10, 195:

S -3 1 9 6

A federal grand jury at San Francisco today indicted a
Francisco firm for violations of the Foreign Assets Control
Regulations, which were issued by the Treasury Department on
December 17, 1950. The indictment, announced by United States
Attorney Chauncey Tramutolo and Assistant United States Attorney
Robert brewes at San Francisco, charged the firm with effecting
unlicensed remittances to Communist China over a period of
approximately one year. This is the fourth such indictment which
has been returned in the Sa.n Francisco area in recent months.
San

The indictment was returned against the Min San Trading
[Company, Incorporated, 59 Waverly Place, San Francisco and its
manager, Tom Hanbock, 7 ^ Union Street, San Francisco. The
indictment contains 17 counts, the last of which charges the
Min San Trading Company with sending remittances totaling
)>l6l,848.39 to Communist China.
The violations were uncovered by Foreign Assets Control^
representatives, aided by United States Customs agents, specially
assigned to these San Francisco investigations. Evidence of the
[violations was submitted to the United States Attorney’
s Office
for the Northern District of California in San Francisco.
The Treasury Department stated that special representatives of
[the Foreign Assets Control investigating the Min San Trading Company
[uncovered an elaborate scheme devised by the company to evade the
[Foreign Assets Control Regulations. While the Min San records
[purported to show practically all the beneficiaries of the
Iremittance s to be residents of the British Crown Colony of
Hong Kong, the name and the true address of those beneficiaries
[who lived in Communist China were separately attached to the
[remittance slips actually forwarded to the associate of the
[Min San Trading Company in Hong Kong. In this way it was possible
ho instruct the Hong Kong associate of the Min San Trading Company
[to^forward specific remittances to their destination in Communist
[China, while at the same time the local records of the company in
Han Francisco showed an apparently legitimate remittance to
H°ng Kong.

43
-

2

-

The Treasury Department stated that the defendants engaged
very actively in the business of sending illegal remittances to
Communist China from January through November 1 9 5 1 .
They advertis­
ed their facilities in the San Francisco Chinese newspapers,
notwithstanding the fact that they are normally engaged in a
retail business unrelated to the handling of remittances for other
persons. The bulk of the defendants’business was derived from
the large Chinese population of San Francisco and Oakland,
California, but many of their remittances were received by mail
from points as far distant as New York City, Seattle, and Mexico.
The sending of illegal remittances to Communist China appears to
have been suddenly halted by the defendants in the middle of
November 1951 when it was prominently announced in the San. Francisco
papers that officials of the Treasury Department had arrived in
San .Francisco to investigate the Chinese extortion racket and
illegal remittances to Communist China.
co m

The Treasury Department stated that the indictment and the
contemplated prosecution of this channel by Assistant United State
Attorney Drewes of San Francisco is but one of a series of measure
recently undertaken to effect a more strict compliance with the
Foreign Assets Control Regulations. Among the more recent of such
measures are theLe inuiecmeats returned in June of this year against
the follow ing San Francisco firms and individuals: George Chew
[doing business as the Comfort oiioe fstore
t*“
*** ana the Chew Commercial
Company, 75^ Grant Avenue; Louis Phong doing business .as the
Service Supply Company, 831-833 Grant Avenue; and Bock King Chan,
an individual and Bock King Trading Corporation, 729 Grant Avenue.
In addition, the Treasury Department called attention to measures
taken by the Foreign Assets Control in late 1951 to stamp out the
extortion racket; the indictment of the China Daily News, a
Communist daily published in New York, for violations of the
Foreign Assets Control Regulations; and the seizure from the mails
under search warrants of a number of remittances intended for
beneficiaries residing in Communist China and the subsequent block­
ing of the seized instruments.
Simultaneously with the release of information concerning the
indictment of the Min San Trading Company as a remittance channel
p°Communist China* the Treasury Department stated that the fullest
attainment of Foreign Assets Control objectives is dependent on
the continuing patriotic cooperation of individual members of the
Chinese communities.
oOo

O cto b e r

«MQftUBw« to

9» 195a

m. temuti

t h e fo llo w in g t r a n s a c t i o n s « e x e « a d e 4 a d i r e c t and
g u a ra n te e d s e c u r i t i e s o f th e O o v eraaen t f o r T re a su ry in v e s t s
« e n t an d o t h e r a c c o u n t s d a r tin g t h e « c a t t e o f S e p t e m b e r , 1 9 5 a *

ihin^ase» ♦ * # # ♦ * * * * • * * * « • ♦ ♦ ♦

$3*900*000

Solos ♦ ♦ # # * « » ♦ * * • ■ * * * • » * • *

rn3 ^ » 550

H st p u r c h a se s • ♦

* * • • • * • • * » • * ♦

1 3 » 51*5,1*50

Braoa»»
0\>.afle~
C h ie f , D iv is io n o f In v e stm e n ts

TREASURY DEPARTMENT
Wa s h i n g t o n , d . c .

Information S e rv ic e

RELEASE MORNING NEWSPAPERS,
Wednesday, October 15* 1952.

S-3197

During the month of September, 1952
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$3>5 ^ 5 ^ 5 0 , Secretary Snyder announced
today.

oOo

STATUTORY DEBT LIMITATION
AS OF (S e p t e m b e r J O ,

washingto^Oct* ^

19)$B

195I

Section 2 1 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 o b lig atio n s guaranteed as to prin cip al and interest by th e !
United States (except such guaranteed o b lig a tio n s as may be held by the Secretary of the Treasury), " s h a ll n o t!
exceed in the aggregate $275,000,000,000 (Act of June 2 6 , 1 9 4 6 ; U .S .C ., t i t l e 3 1 , sec. 757b|, outstanding at ■
any one time.
For purposes of th is section the current redemption value of any ob lig ation issued on a d isc o u n t
basis which is redeemable p rio r to maturity at the option of the holder shall be considered as its face amount!
The following table shows the face amount of ob lig atio n s outstanding and the face* amount which can still
be issued under th is lim ita tio n :
face amount that may be outstanding at any one time

Total

$275,000,000,000

Outstanding
Obligations issued under Second Liberty Bond Act,
Interest-beari ng.:
Treasury b i l l s ......................
C e r t ific a t e s of indebtedness.......
Treasury notes .................................

as amended

$1 7 ,£06,894,0 0 0
27.762.961,000
gq.Qgo.6Ls.Uoo $ 69.990.L9g.Loo

Bonds Treasury.........................................
Savings (current redemp. value)
Deposi tary......................................

79.g09.Lg3.600
57. 758. 330.813
390.6L3.500

Armed Forces Leave ......................
Investment s e r ie s ........................

Special Funds C e r tific a te s of indebtedness
Treasury notes.........................
Total
Matured,

14. 155. 000.000 15 2 .0 9 1.L57. 9X3
23,^,S65,000
1L.955.575.L00

interest-bearing

interest-ceased.................

Bearing no interest:
war savings stamps .............................

Lg.123. 99l
1,6 2 7.2 27

Excess p r o fits tax refund bonds.....
Special

5g.560.LL0.L00
260,LLg,396,713
296. l 99.Lo6

notes of the United states:

Internat'l

Monetary Fund series...

T o ta l................................................ .........

1. 265, 000.000
1. 512. 751. 21g
.......................... 26 2 ,0 51.3L7.337

Guaranteed o b lig atio n s (not held by Treasury):
Interest-bearing:
Debentures: F .H . a . .................................
Demand o bligations: C .C .C .................... .......
Matured,

3« . 59L .236
25-479

38.679,715
1. 521.775
L0.06l.L90

interest-ceased ..................................

Grand total outstanding ..........................................................................
Balance face amount of o b lig ation s

issuable under above authority

Reconcilement with statement of the Public Debt
(Daily Statement of the United States Treasury,

gross p u blic debt

September 3P, 1952
October!, 1952)

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

Guaranteed o b lig ation s not owned by the Treasury

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

Total gross pu b lic debt and guaranteed o b lig a tio n s

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

Deduct - other outstanding p ublic debt ob lig atio n s not subject to debt lim ita tio n ...

fD» 0AS • DC

■ig.qog.59ua

........... (bate!

Outstanding Total

g6p.091.L08.8Z7_

2,681,570.7*2
hn,o6i.L90_
2JÌ032T32
650.223^05-

STATUTORY DEBT LIMITATION
AS OF SEPTEMBER 3 0 . 19 5 p

439
October 1$, 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), Hshall not
exceed in the aggregate $27£,000,000,000 (Act of June 26, 191*6; U.S.C., title 31,
sec. 757b), outstanding at any one time* For purposes of this section the current
Iredemption value of any obligation issued on a discount basis which is redeemable
¡prior to maturity at the option of the holder shall be considered as its face amount*’
’
The following table shows the face amount of obligations outstanding and the
[face amount which can still be issued under this limitation;
¡Total face amount that may be outstanding at any one time
-3273,000,000,000
¡Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing ;

Treasury balls**.****»******««*^ 17,*-06,89I*,000
Certificates of indebtedness*«* 27,762,961,000
Treasury notes*.............. * 23,020,61*3,1400
Bonds Treasury ****«#.**«« o***««.«««« , 79.809,1+83,600
Savings (current redemp© value) 37,733,330,813
Depositary
<>#«.**«•«««
390,61*3,300
Armed Forces Leave.«.*«*.*,**
Investment series••«••••*•••• 11*,133,00 0 ,000
Special Funds Certificates of indebtedness* 23, !*0l|.,86-3,000
Treasury notes,«••«••«••.••«» ll*,933,373,1*00
Total interest-bearing*.•*••«***•*#*•*•*•«.
Mured, interest-ceased**••••••••«•••••••••••••«.*
Bearing no interests
i/far savings stamps*«e***«*•«*•>**•
1*8,123,991
Excess profits tax refund bonds*«
1,627,227
Special notes of the United States;
Internat’
l Monetary Fund series
1,263,000,000
Total*.........*.*...... ....................

$69 ,990,1*98,UOO

132,091,1437,913

38,360,1*1*0 ,1+00
29 6 ,19 9 ,1*06

1,312,731,218
^62,031,31*7,337

¡Guaranteed obligations (not held by Treasury);
I I n t e r e s t - b e a r in g ;

38,39*4,236
I Debentures; F.H.A* ...........
Demand obligations; C*C.0......
83,1*79
I iMured, interest-ceased ................ .......

38,679,715
1,381,775
~

1*0 ,0 6 1,5 9 0

|p ?rand tQtal outstanding* ****................... *
262,091,1*08,827
fiance face amount of obligations issuable under above authority**** 127c>08.991..173
Reconcilement with Statement; of the""Public Débt - September 50,
(Daily Statement of the United States Treasury, October 1, 1932)
ptstanding Total gross public debt.*****.***....... .........................«262,681,370,71*2

uaranteed obligations not owned by the Treasury*.*.*,*..**......
1*0,061,1*90
Lf*°f ^ross Pu^iio debt and guaranteed obligations...... .... ****.262,721,632,232
uct - oth^r outstanding public debt obligations not subject to
debt limitation*...... *........................ .
630,223,lj.03

- 3 SSSLBBC

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

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

amended by Section 115 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. I4I 8 , 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

R e s e r v e B an k o r B r a n c h .

-

dealers in investment securities.

2

-

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

October^2^. 19!>2

» 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.

Qeti
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 net 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,
T h u rsd a y , O cto b e r 1 6 , 1952

The Secretary of the Treasury, by this public notice, invites tenders
for $1.1*00.000,000 , or thereabouts, of
91 “day Treasury bills, for
— W
----m
cash and in exchange for Treasury bills maturing
O c t o b e r 2 3 , 1 9 5 2 , in
the amount of

$ 1 ,3 9 9 ,9 1 0 ,0 0 0

9

to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided.
of this series will be dated_____ O c t o b e r
January 22, 1953
terest.

23« 1 9 5 2

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, $10,000, $100,000, $5 0 0 ,000 , and $1,000,000 (maturity value),
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’
clock p.m., Eastern Standard time, Monday, October 20, 19ff,
5S T "
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of 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, October. 16,

WASHINGTON, D .C .

S-3 1 9 9

The Secretary of the Treasury, b y this p ublic notice, invites
tenders for $1,400,000,000, or thereabouts, of 9 1 - G a y T r e a s u r y bills,
forcash and in exchange for Treasury bills m a t u r i n g October 2 3 /
1952, in the amount of $1 ,3 9 9 *9 1 0 ,000, to be issued on a discount
basis under competitive and n o n-c o m p e t i ti v e b i d d i n g as h e r e i n a f t e r
provided.
The bills of this series will be dated October 23, 1952,
and w i ll mature January 2 2 , 1953* w h e n the face amount will be
payable without i n t e r e s t . They will be issued in b e a r e r f o r m only,
land in denominations of $1 ,000, $5 ,000, $1 0 ,0 0 0 $1 0 0 ,000, $5 0 0 ,000, "
and $1 ,000,000 (maturity value)
Tenders will be received at Federal Reserve Banks a n d Bran c h e s
up to the closing hour, two o ’clock p.m., E a s tern Standard time,
Monday, October 20 , 1952,
Tenders will not be r e c e i v e d at the
Treasury Department, Washington.
Each tender m u s t be for a n even
multiple of $1 ,000, and in the case of competitive tenders^ the
price offered must be expressed on the basis of 10 0 , w i t h not more
than three decimals, e. g., 99.925.
F r a ctions m a y not be u s e d ^
It is urged that tenders be m a d e on the p r i n t e d ..forms and f o r w arded
In the special envelopes w h i c h will be supplied b y Federal Reserve
Banks or Branches on a p p l i c a t i o n therefor.
Others than b a n k i n g institut i o n s will not be p e r m i t t e d to submit
tenders except for their own account.
Tenders will be rece i v e d
without deposit from incorporated banks and trust companies and
from responsible and recognized dealers in investment securities..
Tenders from others must be accompanied b y p a y m e n t of 2 p e r c e n t of
the face amount of T r e a s u r y bills applied for, u nless the tenders
are accompanied b y «
,** express g ua r a n t y of p a y m e n t b y an
an
incorporated b a n k or trust company
Immediately after the closing hour, tenders w i l l be o pened at
the Federal Reserve Banks and Branches, f o l l o w i n g w h i c h p ublic
announcement will be made b y the S e c r etary of the Trea s u r y of -the
amount and price range of accepted bids.
Those submitting tenders
pill be advised of the acceptance or rej e c t i o n thereof.
The
Secretary of the Treas u r y express l y reserves the right to accept or
M e e t any or all tenders, in whole or in part, and his ac t i o n in
[¡W Such respect shall be final.
Subject to these reservations,
/°n-competitive tenders for $200,000 or less without stated price
horn any one b i d d e r will be accepted in full at the average pri c e

* 2 (in t h r e e . d e c i m a l s )"of a ccep t e d competitive bids.
Settlement for
accepted tenders in a c c o r d a n c e w i th'the bids m ust be m ade or
completed at the Federal Reserve B a n k on October 2 3 , 1952, in cash
or o ther immediately available funds or in a like face amount of
I
T rea s u r y b i lls m a t u r i n g October 23, 1952.
C ash and exchange tender!
will receive equal treatment.
Cash a d j u stments will be made for
d ifferences b e t w e e n the p a r value of m a t u r i n g bil l s accepted in
exchange and the issue p rice o i the n e w bills.
The income derived from T r e a s u r y bills, w h e t h e r interest or
g ain f r o m the sale or other d i s p o s i t i o n of the bills, shall not
have any exemption, as such, and loss f r o m the sale or other
d i s p o s i t i o n of T reasury bill s shall not have any special treatment, I
as such, u n d e r the Internal Revenue Code, or laws amendatory or
*
s upplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, w h e t h e r Federal or State, but shall be exempt f r o m all t a x a t i o n n o w or h e r e a f t e r imposed on
the p r incipal or interest thereof b y an y State, or any of the
p o s s e s s i o n s of the United States, or b y any local taxing authority. I
For purp o s e s of- t axation the amount of d i scount at whi c h Treasury
bills-are o r i ginally sold b y the U n i t e d States shall be considered
to be interest. ; Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended b y Section 115 of the Revenue Act of 1941,1
the amount of discount at w h i c h bills issued h e r e u n d e r are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise dispo s e d of, and such bil l s axe excluded from
c ons i d e r a t i on as capital assets.
Accordingly, the owner of
T reasury bills (other than life Insurance companies) issued hereundd
need include in his Income tax r e t u r n only the difference between
the price paid for such bills, wh e t h e r on original issue or on
subsequent purchase, and the amount a c t u a l l y r e c e i v e d either upon
sale or rede m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for which
the r e turn is made, as ordina r y g a i n or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, p r escribe the terms of the Trea s u r y bills and govern the
conditions of their issue.
Copies of the circular m a y be obtained I
f rom any Federal Reserve B a n k or Branch.

oOo

It is my f i r m b e l i e f » and-I linuw 11 1U- Sucretar y
that this public confid e n c e w i l l prove well

//
placed.
/

'The man who motiv a t e d r e o r g a n i z a t io n of the Revenue

Service f r o m the very start, and who s e guidance,

inspiration

and f i r m resolve saw it through to accomplishment^

-ia

4£-3>

'/

3
It is the
and one of the

\\

largest b u r e a u of the T r e a s u r y Department,
largest in the entire Government.

What we are to do here today is bring up to date the

structure and the o p erat i n g proce d u r e s of this very vital
arm of the Government.
I want to

express to the people of the St. Paul

District —

the people

of all five States comprising

district —

and to their local officials, our

this

at

a p p r e c i a t i o n of^the c o o p e r a t i o n w h i c h we have had in
arranging for this ceremony.
t We have had similar c o o p e r a t i o n in every locality
w h e r e these installations have taken place.
to me that the improve»*»* procedures,
p e r s o n n e l policy,
efficiency,

This signifies

the forward-looking

the a dvanced d esign for o p e r ating

and the ♦»built-in’* a s surances of trustworthy

perfo r m a n c e w h ich the R e o r g a n i z a t i o n P l a n provides have won
full public confidence.

2

♦The

duties of the B ureau involve not only receiving

and p r o c e s s i n g the tax reports of tens of mill i o n s of
A m e r i c a n s each year, but* also the hand l i n g of tax returns
f r o m prop r i e t o r s hi p s and corporations,
taxes,

excess profits

the excises on cigarettes and liquor and jewelry

and m a n y other items,

the taxes on the gains of gamblers,

and a long list of other levies.
* In addition to collec t i n g and rec o r d i n g these taxes,
the Bureau checks the a c curacy of returns,
a large number of them in detail,

investigates

collects billions in

taxes not voluntarily r e ported and makes refunds on
o v e r p a y m e n t s running into billions.
^ That is still not the last of the B u r e a u ’s duties.
It has additional tasks such as issuing permits for
distillers and the m a n u f a c t u r e of firearms,

and the

s u p e r v i s i o n of various angles of the alc^iolic beverage
business.

MR.

ffOT»¥■

» T t .&&W

We are gathered today to institute for an important
g r o u p of States a n e w m a n n e r of a d m i n i s t e r i ng the
r e s p o n s i b i l it i e s of the Bu r e a u of Internal Revenue.
five States —
South D a k o t a —

Minnesota,

The

Iowa, N e b r a s k a and N o r t h and

f orm a r e g i o n w h i c h for purp o s e s of

Internal Revenue Service a d m i n i s t r a t io n w i l l be known
h e r e a f t e r as the St. Paul District.

\\

We welcome all of you w a r m l y to the proceedings.

The action whi<

of the most

p r o g r e s s i v e steps in good g o vernment in the history of
his country y j Your support of i t , as indicated by your
pres e n c e here this morning,

is g r a t i f y i n g to all who have

had a hand in maki n g this a c tion possible.
' The manner in w h i c h the Bu r e a u of Internal Revenue
func t i o n s is of direct concern to every taxpayer.

Its

activ i t i e s affect the w e l f a r e of the t a x p a y e r ’s government
as w e l l as the financial affairs of the taxpayer himself.
Therefore, basic improvement in the B u r e a u ’s organization
and methods is very m u c h to the t a x p a y e r ’s interest.

Info Service heading

RELEASE 10 A.M. CST
Monday, October 20, 1952

S -

S t . Paul, M inn.,Oct.20 — Under S ecretary of the Treasury
Edward H. Foley sa id today, in opening ceremonies at the Municija
Auditorium

fo r the in s t a lla t io n of o f f i c i a l s of the

reorganized In tern al Revenue Serv ice fo r Minnesota, Iowa,
Nebraska, and North and South Dakota:

treasury

Information

department

Service

RELEASE 10 A.M. CST
Monday, October 20, 1952.

WASHINGTON,

S- 3 2 0 0

St. Paul, Minneaota, October 20 — U n d e r S e c r e t a r y of the
Treasury Edward H. F o l e y said today, in open i n g ceremonies at
the Municipal A u d i t o r i u m for the ins t a l l a t i o n of officials of the
reorganized Internal Revenue Service for Minnesota, Iowa,
Nebraska, and N o r t h and S o uth Dakota:
"We are gathered today to institute for an important group
of States a n e w m a n n e r of a d m i n i s t e r i ng the r e s p o n s i b i l it i e s of
the Bureau of Internal Revenue.
The five States — Minnesota,
Iowa, Nebraska and N orth and South D a k o t a — f o r m a r e g i o n w h i c h
for purposes of Internal Revenue Service a d m i n i s t r a t i o n will be
known hereafter as the St. Paul District.
"We welcome
all of y o u w a r m l y to the proceedings.
The
action which we are taking to reorganize the Revenue Service
embodies one of the most p r o g r e s s i v e steps in g ood g o v e r n m e n t in
the history of this country.
As you know, the R e o r g a n i z a t i o n
Plan now b eing p l a c e d in effect received a f e w m o n t h s ago the
overwhelming approval of the Congress.
Y our support of it, as
indicated b y y o u r p resence here this morning, is g r a t i f y i n g to
all who have had a hand in m a k i n g this a ction possible.
"The m a n n e r in w h i c h the B u r e a u of Internal Reve n u e f u n ctions
is of direct concern to every taxpayer.
Its a c tivities affect
the welfare of the t a x p a y e r ’s government as well as the financial
affairs of the taxpayer himself.
Therefore, basic improvement in
the B u r e a u ’s o r g a n i z a t i o n and m e t h o d s is v e r y m u c h to the
taxpayer’s interest.
"The duties of the B u r e a u involve not* o nly r e c e i v i n g and
processing the tax reports of tens of m i l l i o n s of Americans each
year, but also the h a n d l i n g of tax returns f r o m p r o p r i e t o r s h i p s
and corporations, excess prof i t s taxes, the excises on
cigarettes and liquor and jewelry and m a n y other items, the taxes
on the gains of gamblers, and a long list of ether levies.
"In addi t i o n to collecting and r e c o r d i n g these taxes, the
Bureau checks the a ccuracy of returns, investigates a large n u m b er
of them in detail, collects bi llions in taxes not v o l u n t a r i l y
reported and makes refunds on o v erpayments r u n n i n g into billions.

2
"That is still not the last of the B u r e a u Ts duties.
It has
additional tasks such as issuing p e r m i t s f o r d i stillers and the
manufacture of firearms, and the super v i s i o n of vari o u s angles
of the alcoholic b everage business.
”It is the largest b u r e a u of the T r e a s u r y Department,
one of the largest in the entire Government.

and

"What we are to do here today is b r i n g up to date the
structure and the oper a t i n g p r o c e d u r e s of this v e r y vital a r m of
the Government.
"I want to express to the p e o p l e of the St. Paul District ~~
the people of all five States c o m p r i s i n g this district -- and to
their local officials, our a p p r e c i a t i o n of y o u r h o s p i t a l i t y and
of the cooperation w h i c h we have h a d in a r r anging for this
ceremony.
"We have h a d similar c o o p e r a t i o n in every l o c a l i t y where
these installations have taken place.
This signifies to me that
the improved procedures, the fo r w a r d - l o o ki n g p e r s o n n e l policy,
the advanced d e s i g n for opera t i n g efficiency, and the »built-in*
assurances of t r u s tworthy p e r f o r m a n c e w h i c h the R e o r g a n i z a t i o n
Plan provides have w o n full public confidence.
"It is m y f i r m belief that this p u blic confidence will
prove well placed,"
Under Secre t a r y F o l e y intro d u c e d S e c r e t a r y S nyder as the
principal speaker.
He r eferred to the Secretary^as, "the m a n
who motivated r e o r g a n i z a t io n of the Revenue Service f r o m t h e ^ v e r y
start, and whose guidance, insp i r a t i o n and f i r m r e s olve saw it
through to accomplishment."

0 O0

S -3 2 0 0

HfWp

States consulted with us while
the ieorganination Plan was in
course of preparation*
Congressmen and Senators fro©
this area gave the plan their
support.
i want particularly to
mention Senator Hubert «usphrey,
who was an especially
enthusiastic and effective supporter
of the ^organization Plan while
it was before the Congress.

very properly expect the
H

£

I

I

|

| /

hover niner»t agency charged with
the collection ot these taxes
to o p e r a t e w i t h all p o s s i b l e
\

efficiency, econoray and
integrity,

it is with «inch

satisfaction that we hr n ig to
you, in the reorganization of
the liftvenue Service, assurance
of earnest adherence to those
ends.
Many citizens trow your

38
?v>irp
.V

incawti

0

excise taxes from your States
numbered approximately
111"

5

any' as war»

million
tfl

ii the fiscal year lu*0 .
| I !§if nearly three-quarters
of our total budget expenditure m
■J

o »ng for major national security
programs, the taxes which wo
must pay to keep our government
on a ".found financial footing
fi
t
&'W
Clt111’

rentin

I•

country
By the efficient use of

it# human and natural resource«
in Agriculture, in trade, and
in industry, this iorth^Central
group of States has tripled its
|,gl1'p|SIÉ|P| 1

«

-! ‘
| ;

..*

per capita income, in the last
decade, and remarkably increased
the general welfare of its
people,

iecords of the Treasury

department reflect this
«•

progress,

in the fiscal year

1S52 tax returns covering all

supply far at least a half-dozen
generations to come.
iltjf twin cities of St. Paul

and Minneapolis have long
constituted one of our country's
great distribution centers, and
the gateway to much of the trade
and commerce of this area.

They

also are recognized as financial
centers for much of the
agricultural and industrial
development of this part of the

p

| & 131

t%.m 1 1 Q 6

ih i i ijgSl developm ent in the
a r t o1 » i Si i fl '’
»iW* i fill 11 f f1ST 0.1
p r o c e s s »fi u I 141 pi ov^ &J,¡®SIll't 1
Oi oo 1 ®I c *iflt ft i Xfi ft 01* i | i flftl
a i i jt .i t

i-s *
r S jl l i i
ver s0

11| 0 !#ll S * 13I Rm 0
§m

tti&t

f i l s ¿1 .¡us ore
*

It

t « * o u n i %&

1
in

9#
1 fe

to 20 > ® ir s w i l l s u p p ly t r o a
o n e -t il *rtil to o » e -h * if o 1 tne

fiction.*®- iron ore need», and
•|i 1

| 1

the backbone of our

\ü

r:

34
ly the end of July

i

si

field, the isaver Lodge field in
North flakota, had 23 producing
•ells on its 23,000 acres
u

fhe other development

which is making economic
history here is the opening
up of vast nee iron ore reserves
«

through the successful processing
of taconite.

Last year

construction was begun on a
SIS million taconite treati

prom

i

tive-State reaion ace
E XBO S t

the

I

rece i¡P «•«

I#% M

.

Last year

¡cetinas a
3 1 X Jl 1 0 i'l.

ization and

•1V3r*-*•'

■
.,'V'■■
l■
-■
|||oil
** 3'
of district Corami
Internal Revenue,

,

Internal Revenue,

ifactor of
tr

supervisory posts
confidant that our selections
ice of district
uun»»ni ssi oner here in St. ray A
offices of director
of Internal Revenue in Oes
Moines, Omaha, Fargo, Aberdeen,
and here, will measure sj| to
every expectation.

e m p l o y h a v e succumbed in
the past.

There has § i#ft

« i S t s b i i s l i t # an independent

1n s-3 iic 11 an Serving, under the
direct»an of another Assistant
Commissioner, which will
iitintatn a constant chock on
¡ait conduct and
other Revenue Service activities
a s

i;l *

*T k

Sr

ti ft

ti

Itvfnu#

yrety have taken positive ft

lf|$k

«a»

- 23
matters in his locality.

For

convenience* local representatives
will be stationed throughout
these five States in 136
presently located offices and
posts of duty.
The geographic area
served by the Directors in these
five States will be supervised
and coordinated by the District
Commissioner in St. Paul.

ifU i#

w

MdP £

t

the taxpayer

and »®prov» sitttwiis
m-

\\

,»
1i* ts
:@p

f S C m of lit§ f »va S t i f f

a It. ftil distr

£%
U TI

tit&fa 1 1 flih «*.'M

if

if
{|j§

Ih <Jr s

**%■

J***-

Collector of

¿ .a

-C

ri; vanu

9

im a r

In going about this ta.su,
we fi*» to reetsmfeer constantly that
the bureau of internal Hevenue is
not like a factory, or an
assembly plant.

it could not

closed down for a week or a month
while an old system was abolished
and a new system installed.

The

Bureau had to go right on
collecting the Nation's revenues
and doing the rest of its huge
daily job, while making the

1 8

#

military equipment.

It

| f{

then

that the work of modernizing
the dqreau of Internal Revenue
was started.
|I
111®
tven as we too* the first
steps, our rapid postwar
reconversion, with its attendant
prosperity, added to the
dimenai ans of the problem.

The

period from 1946 to 1902 saw a
large increase in the number of
income t*x returns, both individual

ifiitailat ian ol the incuse tax
withhold» rig system.

Still another

complication waa the tact that
the rapid rise in wartime incomes
am»

fostered tax evasions that had to
Pc discovered and rectified.
1

The inadequacy of the

Revenue Service’
s equipment and
methods was plainly apparent, and
the need for a thorough
overhauling was conspicuous,
out temporarily, the problem had

Our »arti -»

-> ne

in

the Sert ici hrtí demonstratod
the nocas®tty fur such action.
An df gin urtiti! which had wort ei
f.i sr iy well in its earlier f »*ri
whan «Í eoi ¿«fìttici comparai ivaly
«oda it sue writs of taxas trois
relatively few p §#fil>«» had been
almost overwhelmed by the
unprscodsntsd demands #»«d # on it
in the tor Id tar Ii trs.

The

terV ica suddenly had to handle

covered several years of intensive
work, ana the final drafting of
the plan was not completed until
after a long series of preparatory
steps had been taken.
If Fhe elimination

of

weak

spots from the Internal hevenue
Service, and improvements in its
operational nethois* began at
my direction in 1848, soon after
I became Secretary of the Treasury.

gm

eccoti*.

§ the Congress, o
fi*Ip11t

a'g#fieitf*

b u s i n e a

ma riI§ H§ept t irasa,

organi zàt ions —

in short, t

cowsusite of the most capato!
c u n s u x t«in ts ava iA,a to!e ,
Q o k l s tot

ar e a w«xi mura
o l i l e » e n c y

e c o n o m y

convenient,, and accurate s«r
to

« a !

a te rsa tfs

transact inassiP

enthusiastic cooperation -

fro.- '

the President, Under Secretary
foxey, the Treasury Staff,
Gown !i?s ioner flunlap and hie
assoc iat ©s' in the revenue bur eau.
v The heoraaniaation Pian is
the product of earnest study *net
d iii ¿ant effort not only by
exrtti

jr # k a ui y

j 8p s
t| t

($

%ftx no fl titk§

k # v# riyn 3$fef v io 0 itself but allô
ô y . iini iy tcfy* is âftd group*

service to the Nation have real
meaning tor the people of this
group of States, «hose history
is replete with contributions
to Asterica's progress.

it is a

region in which only a century
ago frontiersmen braved danger
artif hardship to build the first
settlements and open up a vast
new treasure cheat of natural
resources and agricultural
poasibilltiSt, such as furs,

fin reorgan*zation of the
Bureau of Internai Kevenue îs
Belng .effected rapidly
throughout the country, pursuant
to the provisions of the
President’s fceorgani aat ion Plan
ho. 1 of 1902.

That plan, as

you know, received the
emphatic approval of the Congress.
Today the plan decodes effective
lor the important area made up of
the States of Minnesota, Iowa,

in fo Serv ice heading

2

) >

RELEASE 10 A.M. CST
Meed ay , October 20« 1952

S t , Paul, Mian., Oct. 20 - Secretary o f the Treasury
John W. Snyder ,uillTCHfky

speaking a t ceremonies in the

Municipal Auditorium fo r the in s t a lla t io n of o f f i c i a l s of the
reorganised In te rn a l Rnranue S erv ice fo r Minnesota, Iowa,
Nebraska, and North and South Dakota, s a id today:

TREASURY DEPARTMENT
Information Service

R51KASE 10 A.M. CST
Monday, October 2 0 ? 1 9^2

WASHINGTON, D .C .

S-3201

St* P a u l,M in n e so ta , Qctober 20 - S e c re ta ry o f the T reasu ry John
W* Snyder, speaking a t cerem onies in the M unicipal Auditorium f o r the
in stalla tio n o f o f f i c i a l s o f the reo rg an ize d In te rn a l Revenue S e rv ic e f o r
Minnesota, Iowa, N ebraska, and North and South Dakota, s a i d today:
” The r e o r g a n isa tio n o f the Bureau o f I n te r n a l Revenue i s being
effected r a p id ly throughout the co u n try , p u rsu an t to the o r o v is io n s o f th e
President5s R eo rgan izatio n Plan No» 1 o f 19^2» That p la n , a s you know, r e ­
ceived the emphatic ap p roval o f the C ongress» Today the p la n becomes
effective fo r the im portan t a re a made up o f the S t a t e s of M innesota, Iowa,
Nebraska, North Dakota and South Dakota»
" I am happy to be here to p a r t i c i p a t e in the in au g u ratio n o f the new
era in Revenue S e rv ic e a f f a i r s which the R e o rgan izatio n P lan so c l e a r l y
narks* The changes bein g i n s t i t u t e d tod ay f o r your f i v e - S t a t e re g io n are
sign ificant a s a long ste p toward b e t t e r government, and they are advantageous
in many re sp e c ts to every ta x p a y e r 0 They modernize and r e v i t a l i z e the
Internal Revenue S e r v ic e , remove w eaknesses from i t s o r g a n iz a tio n a l s t r u c t u r e ,
provide fo r sp e e d ie r , more convenient and more ac cu rate s e r v ic e to the
American p u b lic , and help make c e r t a in th a t the Revenue S e rv ic e w il l enjoy
the public *s f u l l confiden ce»
’’B etter s e r v ic e to the American c i t i z e n s and b e t t e r s e r v ic e to the
Nation have r e a l meaning fo r the p eople o f t h i s group o f S t a t e s , whose
history i s r e p le t e with c o n trib u tio n s to America *s p ro g re ss» I t i s a re g io n
in which only a cen tury ago fro n tiersm en braved danger and h ardsh ip to b u ild
the f i r s t se ttle m e n ts and open up a v a s t new tr e a s u r e c h e st o f n a tu ra l re ­
sources^ and a g r i c u lt u r a l p o s s i b i l i t i e s , such a s f u r s , tim ber, iro n mines
and grain f i e l d s » In the wake o f the fro n tiersm en came e n t e r p r is in g men
and women o f many n a t i o n a l i t i e s who undertook the tremendous jo b o f t r a n s ­
lating raw re so u rc e s in to m an ufactures, and developin g f e r t i l e v a lle y and
prairie s o i l s in to one o f the w o rld *s most p ro d u ctiv e a g r i c u l t u r a l em pires»
''Somewhat more p r o s a i c , b u t none the l e s s a u th e n tic , i s the re co rd o f
ne development o f the Bureau o f In te r n a l Revenue in to one o f the w orld ’ s
argest b u sin e ss o r g a n iz a tio n s; and o f out e f f o r t s in re c e n t y e a rs to improve
the Bureau’ s s tr u c tu r e and o p eratin g methods so a s to keep i t f u l l y a b r e s t
0 t t s g re a t r e s p o n s i b i l i t i e s * . Those e f f o r t s culm inate in to d a y ’ s
reorganization p ro ceed in g s»

- 2 ~

VJw

’
’
From the very beginning of the reorganization task I have had
enthusiastic cooperation — from the President, Under Secretary Foley, the
Treasury Staff, Commissioner Dunlap and his associates in the Revenue Bureau#
’
’
The Reorganization Plan is the product of earnest study and diligent
effort not only by administrative experts of the Treasury Department and the
Revenue Service itself but also by individuals and groups representing the
Congress, other Government agencies, business management firms, and tax­
payer organizations — in short, the composite of the most capable consultants
available•
”
The goals of this action are a maximum of operating efficiency and
economy, fast,convenient, and accurate service to all persons transacting
business, with the Bureau, scrupulous protection of the Government revenues,
and the maintenance of unquestioned integrity among the employees of the
Bureaua I have every confidence that these goals will be realized#
’
’
The preparation of the Reorganization Plan was a tremendous task, and
it was not accomplished overnight# The study given to the problem covered
several years of intensive work, and the final drafting of the plan was not
completed until after a long series of preparatory steps had been taken#
’
’
The elimination of weak spots from the Internal Revenue Service, and
improvements in its operational methods, began at my direction in 19^6,
soon after I became Secretary of the Treasury.
15Our wartime experience in the Service had demonstrated the necessity
for such action. An organization which had worked fairly well in its earlier
years, when it collected comparatively modest amounts of taxes from
relatively few people, had been almost overwhelmed by the unprecedented
demands made on it in the World War II era. The Service suddenly had to
handle millions of returns from taxpayers who never before had been required
to pay Federal income taxes. It had to assume responsibility almost over­
night for the collection of new kinds of taxes, and the application of
sharply increased rates on those taxes already in existence#
’
’
Collection methods were drastically changed by the installation of the
income tax withholding system# Still another complication was the fact that
the rapid rise in wartime incomes fostered tax evasions that had to be
discovered and rectified#
’
’
The inadequacy of the Revenue Service’
s equipment and methods was
plainly apparent, and the need for a thorough overhauling was conspicuous.
Biit temporarily, the problem had to be put aside* So long as the war con­
tinued we had neither the time, the men, nor the machinery to accomplish
the necessary overhauling#

w w

3
11By 19U6, the situation had changed. More men and women became
available for civilian employment as the strength of the Armed Forces de­
cline d« More machinery became available with the reduction in the demands
for military equipment. It was then that the work of modernizing the Bureau
of Internal Revenue was started*
"Even as we took the first steps, our rapid postwar reconversion, with
its attendant prosperity, added to the dimensions of the problem« The
period from I 9 I4.6 to 1 9 i?2 saw a large increase in the number of income tax
returns, both individual and corporate, and tax collections increased
proportionately. Today the Bureau of Internal Revenue receives about
90 million tax returns of all kinds annually, and in the latest fiscal year
its collections reached the record sum of $65 billion«
"That, in brief, is the historical background against which reorgani­
zation of the Revenue Service is being effected«
"In going about this task, we had to remember constantly that the Bureau
of Internal Revenue is not like a factory, or an assembly plant« It could
not be closed down for a week or a month while and old system was abolished
and a new system installed. The Bureau had to go right on collecting; the
Nation’
s revenues and doing the rest of its huge daily job, while making the
changes called for in the plan«
"This is the sixth area in which’
the reorganization plan has been put
into effect. In addition,, we have extensively reorganized the headquarters
of the Bureau of Internal Revenue in Washington« We shall proceed with
reorganization in other districts, on a schedule which calls for completion
of the program by December 1st of this year«
"Under the skillful direction of Commissioner of Internal Revenue,
John B. Dunlap, and his associates, the transition is being accomplished
smoothly and without inconvenience to taxpayers0
"Reorganization Plan No. 1 is not a complicated blueprint understandable
only by experts« It is simple«
"One of its provisions is to eliminate all non-career offices in the
Revenue Service, with the single exception of the Commissioner of Internal
Revenue* Every post in the service, with that one exception, will now be
filled by Civil Service appointees«
"Another important feature is the simplification and streamlining of
administrative authority, so as to eliminate complexities for the taxpayer
and improve methods of supervision.
"In each of the five States of the St. Paul district there is being
established an office of Director of Internal Revenue« The office of each
Director will be in the same location as that of the State’
s former Collector
of Internal Revenue, whom the Director replaces.«

7

-h~
"Each D ire c to r w i l l m aintain su p e rv isio n over a l l F e d e ra l Revenue
Service m atters w ith in h is S ta te » Taxpayers are a ssu r e d of* improved s e r v ic e
and g re ate r convenience because h en ceforth th e D ire c to r, or h is l o c a l
rep resen tative* w il l be r e sp o n sib le f o r com plete handling o f a ll. F e d e ra l ta x
matters in h is l o c a l i t y » For convenience* l o c a l r e p r e s e n ta tiv e s w i l l be
stationed throughout th ese f i v e S t a t e s in 136 p r e s e n tly lo c a te d o f f i c e s
and p o sts o f duty©

•’
The geographic area served by the Directors in these five States w il l
be supervised and coordinated by the District Commissioner in St* Paul
This office is a new oosition in the reorganization« The District
Commissioner has full responsibility for all field activities of the Bureau
in the five States of Minnesota* Iowa* Nebraska*.North Dakota and South
Dakota<, Under the reorganization* there are clear and direct lines of
authority and accountability from the Directors of Internal Revenue to the
District Commissioner and from the District Commissioner to the Commissioner
in Washington«
,fOne of the members of the District Commissioner^ staff will be the
Assistant District Commissioner for Intelligence* Under his direction there
will be intensified efforts to see that every fraudulent attempt to evade
Federal taxes will bring quick investigation and action»
11The task of fighting tax frauds never was an easy one© In recent years
element has attempted tax evasion with greater persistence than
ever before. It is our determination that this persistence will be met by
the special agents of the Revenue Service with even greater enforcement
diligence» The Assistant District Commissioner for Intelligence will see
that the full limit of available manpower is applied to the tax evasion
problem«
the 'C r im in a l

”
In streamlining the Revenue Bureau*s operations* we have provided for
improved supervision of employee conduct* and helped eliminate the temptations
to which some employees have succumbed In the past» There has been estab­
lished an independent Inspection Service* under the direction of another
Assistant Commissioner* which will maintain a constant chock on employee
conduct and watch other Revenue Service activities as well*
p’
tfte Treasury and the Revenue Bureau have taken positive steps to
eliminate from the Service those employees who have failed in their public
trust. The work of Congressional investigative groups has had* and will
continue to have* our full cooperation^
uIn placing the Reorganization Plan in effect* we have made it our
objective that only the most caoable persons available would be named to the
Positions of District Commissioner of Internal Revenue* Director of Internal
'■cvenue* and other supervisory posts» I am confident that our selections
h>r the office of District Commissioner here in St* Paul and the offices of
irector of Internal Revenue in Des Moines, Omaha* Fargo* Aberdeen* and here*
ill measure up to every expectation*

tn

- 5 "With only 12 percent of the Nation*s land area, this five-State
region accounts for almost 20 percent of the total cash receipts from
the marketing'of farm products» Last year your farm marketings
amounted to approximately $6 ballion» By increased mechanization and
the improvement of techniques, your progressive farm people are
continually adding to the richness of this agricultural domain*
"B ut the new economic h is t o r y you are w ritin g i s n ot r e s t r i c t e d
to a g r ic u lt u r a l development alo n e» I t extends a l s o to the c re a tio n
of g re a t i n d u s t r i a l e n t e r p r is e s * Two developments in p a r t i c u l a r have
recently p la c e d the N atio n *s economic s p o t lig h t on t h i s a r e a ,

"Spectacular new oil discoveries, in the Williston Basin, hold
promise of making this a major oil-producing area. By the end of July,
19^2, a single field, the Beaver Lodge field in North Dakota, had
23 producing wells cn its 2^,000 acres,
•'The other,development which is making economic history here is
the opening up of vast new iron ore reserves through the successful
processing of taconite« Last year construction was begun on a
175 million taconite treating plant on the Mesabi Range*, This new
development in the art of mining and mineral processing may prove almost
as Significant as the original discovery of the fabulous ore of the
Mesabi Range, It is expected that taconite in 10 to 2 q years will
supply from one-third to one-half of the Nation*s iron ore needs, and
will be the backbone of our supply for at least a half-dozen generations
to come*
"The twin c i t i e s o f S t * Paul and M inneapolis have long c o n s titu te d
one of our co u n try *s g r e a t d is t r ib u t io n c e n te r s , and the gateway to
much of the tra d e and commerce o f t h i s are a« They a ls o are reco g n ized
as fin a n c ia l c e n te rs fo r much o f the a g r i c u l t u r a l and I n d u s t r ia l
development o f t h i s p a r t o f the country»

uBy the efficient use of its human and natural resources in
agriculture, in trade, and in industry, this North-Central group of
States has tripled its per capita income, in the last decade, and
remarkably increased the general welfare of its people® Records of the
Treasury Department reflect this'progress» In the fiscal year 19^2 tax
returns covering all Federal income, profits and excise taxes from your
States numbered approximately S> million —
times as many as were filed
in the fiscal year 19l;0«
"With n e a rly th re e - q u a rte r s o f our t o t a l budget exp en d itu res
going fo r m ajor n a tio n a l s e c u r it y program s, the ta x e s which we must
pay to keep our Government on a sound f i n a n c ia l fo o tin g n e c e s s a r ily
remain high» You v ery p ro p e rly exp ect the Government agency charged
with the c o lle c t io n o f th ese ta x e s to o p erate w ith a l l p o s s ib le
o fficien cy , economy and in te g r ity # I t i s w ith much s a t i s f a c t i o n th a t
we bring to you, in the re o rg a n iz a tio n o f the Revenue S e r v ic e ,
assurance o f e a r n e st adherence to th ose ends«

"Many c i t i z e n s from your S t a t e s c o n su lte d with u s w hile the
Reorganization Plan was in co u rse o f p r e p a r a tio n . Congressmen and S e n ato rs
from th is a re a gave the p lan t h e ir su p p o rt.
,lI want p a r t i c u l a r ly to mention Sen ator Hubert Humphrey, who was an
esp ecially e n t h u s ia s tic and e f f e c t iv e su p p o rter o f the R eo rgan izatio n P lan
while i t i)as b efo re the C ongress«
n¥e have had most generous co o p eratio n in arran g in g to d a y 1s ceremony.
X want to e x p ress our warm a p p re c ia tio n to a l l those who have taken a p a r t
in making t h is o ccasio n p o s s i b l e .
nI t i s my firm b e l i e f th a t the r e s u l t o f to d a y ’ s r e o rg a n iz a tio n

proceedings h ere 5 and those h eld or to be h e ld throughout the N ation , w il l
be to giv e the American p eo p le a Revenue S e rv ic e of maximum e f f ic ie n c y
and operating economy, manned by employees o f un questioned i n t e g r i t y »11

miMAm m m m a

Tuesday, October 21, I9ÿ2»

the secretary c£ the fresmiry œmemmâ laut evening itü t Ihe tenders ter
$1, iiOO|QÛQ,QOÖ, or thereabouts, if fl*4 a f i i p l p r f b illa to be l â M October 23, i$d
and f i mature Smmmr 22, W$3, vhicti «ere Ü ü i eft October là , wore opened at thi
Federal Beeerve Bads* m October f t *
3*he *&e t y f jÉ c f W i Ifi p n a r e a e f o l l o e s *

fe t a l applied te r - 12,1*08,1*30,000

to tal accepted
A v e ra g e p r ic e

« l,k0l,£bÔ,OÛO (iacliidee $272,s£i*,000 entered m a

« 99*$éá¿

a o o r - c o K ^ e t it iv e b a d e a n d a c c e p t e d In
f d l e t t h e a v e r a g e p r i c e sh e e n b a io *)
B c |a i * » l e n t r a t e i f d le e o o n t a p p ro « :» 1*735# per

Hanna ef accepted competitive bidai
** f t # f § su iv a ie n t rate of diecouut apprese» i»?m$ per asmi
«
*
a a
a
a
i.?to a «

m #
loir

{ f f percent of t ie amount bid fo r a t tie leer price m e accepted)
F e d e r a l H eeerve

D istrict

ïo t « l
•iaglâeê fo r

Boston

1

ü e lo rie
P h ila d e lp h ia

Cleveland
fjfiiflhmáiiA
A d e rta

Chicago
at« lo d e
d a n e a p d is
Kansas City
p a llyy
San F ra n o ie e e
to ta l

fa ta l

$é,5$2,ooo

2 $ ,0 0 5 ,0 0 0
3 6 9 ,4 4 3 ,0 0 0
8 5 ,2 9 3 ,0 0 0
1,9,291»,000
1 8 ,4 0 0 ,0 0 0
2 3 ,$ 0 4 ,0 0 0
1 5 7 ,3 4 2 ,0 0 0
4 5 ,7 1 6 ,0 0 0

2 6 ,8 8 0 ,0 0 0
5 5 ,7 7 8 ,0 0 0
5 6 ,9 8 9 ,0 0 0
H it ,80 1 ,0 0 0

4 2 ,5 6 6 ,0 0 0
4 1 , 291», 000
8 8 ,1 9 1 ,0 0 0

$ 2 ,4 0 8 ,4 3 0 ,0 0 0

8 1 ,1 ^ 1 ,5 4 8 ,0 0 0

4 0 ,5 2 8 ,0 0 0
1 ,5 9 2 ,$ 2 1 ,0 0 0
1*2,103,000
7 6 ,2 8 5 ,0 0 0
3 6 ,5 1 5 ,0 0 0
3 8 ,1 4 5 ,0 0 0
2 7 1 ,3 3 3 ,0 0 0

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any
n|

TREASURY DEPARTMEN T
Information Service

WASHINGTON, D .C .

RELEASE MORNING NEWSPAPERS,
Tuesday, October 21, 1 9 5 2.

S-3202

The Secretary of the T r e a s u r y ann o u n c e d last evening that the
te n d e r s for $1,400,000,000, or thereabouts, of 9 1-day Trea s u r y bills
to b e dated October 23, 1952, and to ma t u r e J a n u a r y 22, 1953* w h ich
were offered on October 16, were opened at the Federal Reserve Banks
Ion October 20.
The details of this issue are as follows
Total applied for
Total accepted

Average price

$2,408,43 0 , 00 0
1,401, 5 4 8 , 0 00 (includes $272,55 4 , 0 0 0
ente r e d on a n o n - c o m p e t i ti v e
basis and a c c e p t e d in full
at the average p r i c e shown
below)
9 9 .5 6 1 / Equivalent rate of discount approx.
1 . 7 3 5 $ pe r a n n u m

Range of acce p t e d competitive bids:
High

- 99.570 Equivalent rate
1.701$
~ 99.560 Equiva l e n t rate
.1.741$

Low

of d iscount a pprox
per annum
of discount ap p r o x
per annum

179 percent of the amount bid for at the low p r i c e was accepted)
Nderal Reserve
District
os ton
flew York
Philadelphia
Cleveland
Richmond
R an t a
Lcago
L o u is

Total
A p p i led for
>
40 * 528 , 000
1*592 *521, 000
42 *103* 000

76 *285* 000
36 *515* 000
U 4 5 * 000
*333* 000

Napolis

TOTAL

**4 4 3 *000
»*293* 000

f, 284, 000
>,400, 000

;*5o4, 000

',8 8 0 , 000

■,8 0 1 ,000

*2 9 4 ,000
QQ0
0
*1 9 1 *000

$2 ,40 8,4 3 0 ,0 0 0

$ 1 , 4 0 1 , 5 4 8 , 00 0

'*778, 000
*989* 000

an Francisco

>,0 0 5* 000

■*342, 0 0 0
*7 1 6 , 000
*5 1 0 , 000

'*552, 000

änsas City
"lias

Total
Accepted

0O0

000

-

i
- 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 191*1* the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets.

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.
T reasu ry Department C ir c u la r No. Ijl8 , a s amended, and t h i s notice,
p r e s c r ib e the term s o f the T reasu ry b i l l s and govern the con dition s of
th e ir issu e .

Copies o f the c i r c u l a r may be o btain ed from any Federal

R eserve 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 October 30, 1952

, in cash or other immediately available

funds or in a like face amount of Treasury bills maturing October 30,
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

S x k ik x f c x l

m m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
T h u rsd a y , O cto b e r 2 3 , 1952

.

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

$ 1 ,5 0 0 ,0 0 0 ,0 0 0

, or thereabouts, of

91

cash and in exchange for Treasury bills maturing
the amount of $ 1 ,500 ,^2 2 ,0 0 0

-day Treasury bills, for

555
9 to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
Ja n u a ry 2 9 , 1953

terest.

in

O cto b e r 30? 1952

O cto b e r 3 0 , 1952

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, $10,000, $100,000, $50cf,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

t i m e , M onday, O c to b e r 27, 1952)

555
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 j
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, October 23, 1 9 5 2 .

WASHINGTON, D .C .

S r 3303

The Secretary of the Treasury, by this public notice,, invites
tenders for $1,500, 000, 000, or thereabouts, of 9 1-day T r e a s u r y bills
for cash and in exchange 'for T r e a s u r y bills m a t u r i n g October 30.,
1952, in the amount of $1,500,422,000, to be issued on a discount
basis under competitive and non- c o m p e t i ti v e b i d d i n g as h e r e i n a f t e r
provided. The bills of this series will be dat e d October 30, 1952,
and will mature J a n uary 29, 1 9 5 3 / w h e n the face amount will be p a y ­
able without-: interest.
T h e y will be issued in b e a r e r f o r m only, and
in denominations of $1 ,000, $5 ,000, $1 0 ,000, $1 0 0 ,000, $ 5 0 0 ,000, and
$1,000,000 (maturity v a l u e ) . !
Tenders will be received at F e d e r a l ' R e s er v e Banks and Bran c h e s
up to the closing hour, two o ’clock p.m., E a s t e r n Sta n d a r d time,
Monday, October 27, 1952.
Tenders will not be r e c e i v e d 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 1 0 0 , w i t h not more than
three decimals, e. g., 99.925«
Fractions m a y not be used.
It is
urged that tenders be made on the p r i n t e d forms and f o r w a r d e d in the
special envelopes w h i c h will be supplied by Federal R e s e r v e B a nks or
Branches on a p p l i c a t i o n therefor.
Others than b a n k i n g institutions will not be p e r m i t t e d to
submit tenders except for their own account,
Tenders will be
received without deposit from in corporated banks and trust companies
and from responsible and recogniz e d dealers in investment securities
Tenders from others must be acco m p a n i e d by p a y m e n t of 2 p e r c e n t of
the face amount of T r e a s u r y bills applied for, unl e s s the tenders
are accompanied by an express gua r a n t y of p a y m e n t b y an inco r p o r a t e d
bank or trust company.
Immediately a f ter the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, f o l l o w i n g w h i c h pub l i c
announcement will be made b y the Secretary of the T r e a s u r y of' the
amount and price range of accepted bids.
Those s u bmitting tenders
will be advised of the acceptance or r e j e c t i o n thereof.
The *
Secretary of the T r e a s u r y expressly reserves the right to accept or
pject any or all tenders, in whole or in part, and, his ac t i o n in
p y such respect shall be final.
Subject to these reservations,
Ijon-competitive bonders for $200,000 or less with o u t stated pri c e
p o m any one b i d d e r will be accep t e d in full at the average price

2
(in three decimals) of accep t e d competitive bids.
Settlement for
a c c e p t e d tenders in accordan c e w i t h the b ids m u s t be made or
completed at the Federal Reserve B a n k on O c t ober 30* 1952, in cash I
or other i m m ediately available funds or in a like face amount of
T r e a s u r y bills m a t u r i n g October 30* 1952.
Cash and exchange
tenders will receive equal treatment.
Cash a d j u s t m e n t s will be
1
made for d i f f erences b e t w e e n the p a r value of m a t u r i n g bills accepted
in exchange and the issue pri c e of the n e w bills.
The. income derived f r o m T r e a s u r y bills, 'whether interest or
g ain from the sale or other d i s p o s i t i o n of the bills, shall not
have any exemption, as such, and loss f r o m the sale or other
I
d i s p o s i t i o n of T r e a s u r y bills shall not have any special treatment, I
as such, .under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The b i l l s shall be subject to estate,
.inheritance, gift or other excise taxes, w h e t h e r Federal or State, 1
•but shall be exempt f r o m all t a x a t i o n n o w o r h e r e a f t e r imposed on
the princ i p a l or interest thereof b y an y .State, or an y of the
p o s s e s s i o n s of the United States, or by any local taxing authority.I
For p u r p o s e s of t a x a t i o n the amount of d i scount at w h i c h Treasury’
bills are o r i g i n a l l y sold by the U n ited States shall be considered I
to be interest.
Under Sections 42 and 117
(l) P ? the Internal 1
Revenue Code, as amended b y S e c t i o n 115 of the Revenue Act of 1941,1
the amount of discount at w h i c h bills i ssued h e r e u n d e r are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise dispos e d of, and such bills are excluded from!
c o n s i d e r a t i on as capital assets.
Accordingly, the owner of TreasurJ
bills (other than' life insurance companies) issued hereunder need
include in his income tax r e t u r n o nly the differ e n c e between the
price p a i d for such bills, w h e t h e r on original issue or on
subsequent purchase, and the amount a c t u a l l y rece i v e d either upon^ I
sale or redem p t i o n at m a t u r i t y during ' t h e taxable year for which
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y Department Circular No. 4l8, as amended, and this
notice, p r e s c r i b e the terms of the T r e a s u r y bills and govern the . I
conditions of their issue.
Copies of the c i r c u l a r m a y be obtained |
from any Federal Reserve B a n k or Branch.

pOo

3
That
It

has

is

s t i l l

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and

su p e rv isio n

not

th e

task s

th e

la st

su ch

of

as

m an u factu re

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B u re au *s

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of

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p e rm its

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th e

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T reasu ry

th e
beverage

b u sin e ss.
^
and

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th e

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and

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^

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2
The

m anner

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th at

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now

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rep o rts

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c o rp o ra tio n s,

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In

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checks

num ber o f

not

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in to

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accuracy

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c o lle c tin g

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a d d itio n

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on

m anner o f

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of

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p ro p rie to rsh ip s

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a

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and

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MF I y^itfrìV '----- ATfiftNTiitAi

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Info Service heading
f

RELEASE 10 A.M. gsT
T h u rsd a y » O ctob er 2 3» 1952

A t l a n t a , G a . , O c t. 2 ^

“*

••

Under Secretary of the Treasury

Edward H. Foley said today, in opening ceremonies at
th e a te r

the Tower

for the in stallatio n of o ffic ia ls of the

reorganized Internal Revenue Service for
and N o rth and Sou<fch

C a rb lin a :

G e o r g i a , F l o r id a ,

RELEASE 10 A.M. EST
Thursday, October 23, 1952.

A

S-3204

Atlanta, Georgia, October 23 — U n d e r S e c r e t a r y of the
Treasury Edward II, F o l e y said today, in o p e n i n g ceremonies at
the Tower Theater for the i n s t a l l a t i o n of officials of the
reorganized Internal Revenue Service for Georgia, Florida, and
North and South Carolina:
"The p u r pose of this g a t h e r i n g is to inaugurate for four
vital Southeastern States a reo r g a n i s e d Internal Revenue Service,
up-to-date and efficient, to replace the cumbersome and outm o d e d
Revenue Service w h i c h we have k n o w n for m a n y decades.
The four
States — Georgia, F l o r i d a and N o rth and South Carolina
f orm
a region which, for p u r p o s e s of Internal Revenue Service
administration will be k n o w n her e a f t e r as the Atlanta District.
"We welcome all of y o u ' w a r m l y to the proceedings.
The
action which we are taking to r e organise the Revenue Service
embodies one of the most prog r e s s i v e steps in g ood g o vernment i n
the history of this country.
As y o u know, the R e o r g a n i z a t i o n
Plan now b e i n g p l a c e d in effect r e ceived a f e w m o n t h s ago the
overwhelming approval of the Congress.
Your support of it,
as indicated b y y o u r prese n c e here this morning, is gr a t i f y i n g
to all who have had a hand in m a k i n g this ac t i o n possible.
"The m a n n e r in w hich the B u r e a u of Internal Revenue functions
is of direct c o n c e r n to every taxpayer.
Its a c tivities affect
the welfare of the t a x p a y e r !s government as well as the financial
affairs of the taxpayer himself.
Therefore, it is v e r y m u c h to
the^ taxp a y e r ’s interest that we are n o w i n s t i t u t i n g a n e w and
better m a nner of a d m i n i s t e r i ng the Revenue B u r e a u ’s

re sp o n sib ilitie s.

"The duties of the B u r e a u involve not only r e c e i v i n g and
processing the tax reports of tens of m i l l i o n s of Americans each
year, but also the h a n d l i n g of tax returns f r o m p r o p r i e t o r s h i p s
and corporations, excess p r o fits taxes, the excises on
cigarettes and liquor and jewelry and m a n y other items, the taxes
on the gains of gamblers, and a long list of other levies.
"In addi
i o n ^o collecting and r e c o rding these ;axes, the
■
-----t---bureau checks the accur a c y of returns, Investigates t large n umber
of ihem
j
"
in detail, collects
billions in taxes not v o l u n t a r i l y
Sported and m a k e s refunds on o v e rpayments r u n n i n g into billions.

£ 719c.

\J

-

2

-

"That is still not the last of the B u r e a u ’s duties.

It has

additional tasks such as issuing permits for d i stillers and the
manufacture of firearms, and the supervision of various angles
of the alcoholic b everage business.
"It is the largest b u r e a u of the Treasury Department,
one of the largest in the entire Government.

and

"What we are to do here toda y is bring up to date the
structure and the operating proce d u r e s of this v e r y vital ar m of
the Government.
"I want to express to the people of the four States c o mprising
the Atlanta District, and to their local officials, our
appreciation of y o u r h o s p i t a l i t y and of the c o o p e r a t i o n w h i c h we
have had in arranging for this ceremony.
"We have had similar cooperation in every loca l i t y where
these installations have taken place.
This signifies to me that
the improved procedures, the forw a r d - l o o ki n g p e r sonnel policy,
the advanced d e s i g n for operating efficiency, and the ’built-in*
assurances of t r u stworthy perform a n c e w h i c h the R e o r g a n i z a t i o n
Plan provides have w o n full public confidence.
"It is m y f i r m belief that this public confidence will
prove well placed."
•

Secretary Snyder was introduced by Und e r S e c r e t a r y F o l e y as
the principal speaker.
The Under Secretary r e f e r r e d to the
Secretary as "the m a n who moti v a t e d r e o r g a n i z a t io n of the Revenue
Service from the v e r y start, and whose guidance, i n s p i r a t i o n and
firm resolve saw it throu^ito a c c o m p l i s h m e n t . ”

oOo

S-3204

34
vrs
w.\m*

a itô.«i#nt of America an i»pr®¥fii©rit
service of the federal

« n a v i

fiuvernment such as that
i«corporated in the Internal
nue Reorganization flan.
^

<-?.V© had Most generous

cooperation in arranging
ceremony.

1 want to express

our warm appreciation to all
those who have taécen a part in
ing this occasion pots
^lt is my firm belief

*3srru.»ci higher stinetrás
e r t a t er

f

1 prosperi

tim I

ÈÈjf»

a d d e d

is sign if
ri

f#

i íití i *

V*

liti

ina and louth Garuli

Ss*

txoàsdeo
i

1 # * ¡la

r»

IX ♦ s i

..•reas#

» o r #

rcent
rr

wi

Mi

í

South’s war ti Rie factor see w fitre

outstanding importance in the
economic progress of Amene®,
feat which it no time in our
history has been so dynamic
as it is today.
"Out of wartime necessity
the South sot out in the early
forties on its greatest
industrial experiment.

Factories

were built to utilize mora of

.y1;QHur*

hiri in Atlanta and thè office
of Birootor of Internai Revenoe
in Atlanta, Jacksonville,
.

r&ensboro and Columbi a vili
measuraup tu avery
expeetation.
/
t/

6 ff

new 0 tetri et Ocuim ies tonar

and h ts associ a tee take eharge
lisM;-;vi
f
E M

o1 Federai tax «attere in an

r - ’. i i ' - i

area whicb always hat boen of

l

conduct and watch other hevenue
Service activities as well.
ft

The Treasury and the Revenue

Bureau have taken positive steps
to ei. imi nate from the Service
those employees who have failed
in their public trust.

The work

of Congress tonal investigative
groups has had, and will
continue to have, our full
cooper at ion.

- 24 clement has attempted tax evasion
with greater persistence than
ever before.

it is our

determination that this persistence
will be met by the special agents
of the kevenue Service with even
greater enforcement diligence.
The Assistant district Commissioner
for Intelligence will see that
the full limit of available
manpower is applied to the tax
evasion problem*

iistrict yowisiias»oner a staff
will be the Assistant Oistrict
Commissioner for Intelligence.
Under his direction there will
be intensified efforts to see
that every fraudulent attempt
to evade federal taxes will
bring guicic investigation and
action.
*YlU tasK of fighting tax
frauds never was an easy one.
lft recent years the criminai

Sr

17
December 1 st of this year.
*Under the sfc i I l f ill direction
of Commissioner of Internal hevenue,
John i, Ouniap,

asso c î sites,

the transition is being accompli shed
smoothly and without inconve riienee
to taxpayers.
^keorganizat ion
m

. l i t

not a complicated blueprint
understandable only by experts.
it is si»

reor

Revenue Service is being effected.
jftit going about this task, we
had

to remember constantly that

the Bureau of internal Revenue
is not like a factory, or an
assembly plant.

It could not be

closed down for a week or a month
while an old system was abolished
and a new system installed.

The

Bureau had to go right on
collecting the Nation's revenues
and doing the rest of its huge

both individual and corporati,
and tax collectioris increased
proportionately.

Today the

bureau of internal hevenue
receives about 90 mi 11ion tax
returns of all kinds annually,
and in the latest fiscal year
its collections reached the
record sum of $65 billion.
^Fhat, in brief, is the
historical background against
ehIif reoraanization of the

the reduction in the demands fo r
military equipment.

it was then that

the work of modernizing the Bureau
of internal revenue was started.
¡3

I*£ven as we too* the first

steps, our rapid postwar
reconversion, with its attendant
prosperity, added to the
*

dimensions of the problem,

fhe

period from 1946 to 1952 saw
a large increase in the number
of income tax returns,

ffist til it i

of tft9

sing s

w ■i t o

ft

Hi II

ft -

tI

»I

I» I

TP

the rapid rise i

war t i

sd tax

evasions that

W »

and rectified
/T«

II H I l i f i i

ft

Hevanue service's equipment and
stethoas was plainly apparent, a
the need for a thorough
overhauling was conspicuous.

-

9

-

Our wartime experience in
the Service had demonstrated
the necessity for such action.
An organization which had
worked fairly well in its
earlier years, when it collected
comparatively modest amounts of
taxes from relatively few people,
had been almost overwhelmed
by the unprecedented
demands

made on it in the World

War Ii era. The Service

transacting business with the
Sureau, scrupulous protection
of the ioverm.ient revenues, and
the Maintenance of yncfutitioned
integrity among the employees of
the Bureau.

I have every

confidence that these goals will
be realized.
«

fhe preparation of the

heorgani zat ion Plan was a tremendous
task, and it was not accomplished
overni

Fhe study given to the

TO'

lievenu© Service 1uiiy adeguate to
meet its increased responsibilities
itine the confidence of

and fully
the public
H

From the 'Very beginning of
reorganization tamii I have had
enthusiastic cooperation

fra» the

President, Under secretary Folev, thd
iseioner

ury itali

&

and his associates in the hevenue

eor
p r o d u c t

ziti in Plan is the

earnest

U

MSI

tirât you appreciate the

'feíi*

f #

¥1»Ü
W m
I*
flClji
%*•*%
§ ¿É ft

i ii-ftft# ÎS #vi-i4l W!

f t SS i OH
m

w ®

wê

that

et » '

Mt o'

POP
■SUO,

-

3

-

of industrial» financial and
agricultural growth and
development, as new energy,
vigor and vision take an
active role in building a new
South.
^Th is city now becomes a
regional center for the supervision
of a large share of the business
affairs of the Revenue Bureau -one of the world’
s largest

2
30

reorganized, modernized and
revitalized Internal Revenue
Service.
^Atlanta was selected as
the home of the principal
headquarters for Internal Revenue
activities in the four

J
v

because of its central location
and its transportation
accessibility.
«

Atlanta is an excellent example

¥
I
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M* 0t*

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ftp)

■
■
1 MJ 0

to«*ay to ta|c0A m ilètfifenal/ e w t i
the installât ion of :fiew Sureau of

|ill||H H ^ ^ M i

I

]

Internal Revenue officials
||9g
.J|■
.|lor four
great southeastern States -- North
Carolina, Sooth Carolina, Georgia
and Florida -- a region ¿here
evidences of marked economic
progress are to be seen on every hai
Nle bring to you today, under
the authority of
Reorgan Ization

Pres io
:l o .

I

s

&m&m m

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At

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XOlOO A*«*

Info Serv letter head

RELEASE 10 A.M. EST
Thursday, October £3, 1952,

S-

#\T

Atlanta, Georgia, October 23 — Secretary of the
Treasury John W. Snyder, speaking at ceremonies in the
Tower Theater for the installation of officials of the
reorganized Internal Revenue Service for Georgia, Florida,
and North and South Carolina, said today:
»

i

TREASURY DEPARTMENT
Information Service

RELEASE 10 A.M. EST
Thursday, October 23, 1952 0

WASHINGTON, D .C .

S-3205

Atlanta, Georgia, October 23 -- Secretary of the Treasury John W*
Snyder, speaking at ceremonies in the Tower Theater for the installation
of officials of the reorganized Internal Revenue Service for Georgia,
Florida, and North and South Carolina, said today;
"I am happy to be in Atlanta today to take a personal part in the
installation of new Bureau of Internal Revenue officials for four great
southeastern States — North Carolina, South Carolina, Georgia and Florida a region where evidences of marked economic progress are to be seen on
every hand»
”¥e bring to you today, under the authority of the President’s
Reorganization Plan No, 1 of 1952, a reorganized, modernized and revitalized
Internal Revenue Service*
’’Atlanta was selected as the home of the principal headquarters for
Internal Revenue activities in the four States, because of its central
location and its transportation accessibility»
’’Atlanta is an excellent example of industrial, financial and
agricultural growth and development, as new energy, vigor and vision take
an active role in building a new South»
"This city now becomes a regional center for the supervision of a
large share of the business affairs of the Revenue Bureau — one of the
world’s largest business organizations»
"Your presence here indicates that you appreciate the importance of
the progressive action which we are taking* Your presence is also an
expression of confidence that, through the operation of the plan, we shall
bring to the taxpayers a Revenue Service fully adequate to meet its in­
creased responsibilities and fully meriting the confidence of the public*
"Prom the very beginning of the reorganization task I have had
enthusiastic cooperation — from the president. Under Secretary Foley, the
Treasury Staff, Commissioner Dunlap and his associates in the Revenue
Bureau*

- 2 -

G

»The Reorganization Plan is the product of earnest study and diligent
effort not only by administrative experts of the Treasury Department and
the Revenue Service itself but also by individuals and groups representing
the Congress, other Government agencies, business management firms, and
tsxpsyer organizations —— In short, the composite of the most capable
consultants available*
»The goals of tnis action are a maximum of operating efficiency and
economy, fast, convenient, and accurate service to all persons transact-*
ing business with the Bureau, scrupulous protection of the Government
revenues, ana the maintenance of unquestioned integrity among the employees
of the Bureau* I have every confidence that these goals will be realized*
»The preparation of the Reorganization Plan was a tremendous task*
and it was not accomplished overnight* The study given to the problem'
covered several years of intensive work, and the final drafting of the plan
was not completed until after a long series of preparatory steps had been
taken*
»The elimination of weak spots from the Internal Revenue Service,
and improvements in its operational methods, began at ny direction in 1 9 h 6 ,
soon after I became Secretary of the Treasury*
»Our wartime eoqoerxence in the Service had demonstrated the necessity
for such action* An organization which had worked fairly well in its
earlier years, when it collected comparatively modest amounts of taxes
from relatively fex^ people, had been almost overwhelmed by the unprecedented
demands made on it in the World War II era* The Service suddenly had to
handle millions of returns from taxpayers who never before had been required
to pay Federal income taxes* It had to assume responsibility almost over­
night for the collection of new kinds of taxes, and the application of
sharply increased rates on those taxes already in existence*
»Collection methods were drastically changed by the installation of
the income tax withholding system, Still another complication was the
fact that the rapid rise in wartime incomes fostered tax evasions that
had to be discovered and rectified*
»The inadequacy of the Revenue Service*s equipment and methods was
Plainly apparent, and the need for a thorough overhauling was conspicuous*
But temporarily, the problem had to be put aside* So long as the war
continued we had neither the time, the men, nor the machinery to accomplish
the necessary overhauling*
»By 19U6, the situation had changed* More men and women became
available for civilian employment as the strength of the Armed Forces
eclined* More machinery became available with the reduction in the demands
or military equipment* It was then that the work of modernizing the Bureau
01 Internal Revenue was started*
S-3205

- 3 -

612

"Even as we took the first steps, our rapid postwar reconversion,
with its attendant prosperity, added to the dimensions, of the problem®
The period from 19)46 to 19^2 saw a large increase in the number of income
tax returns, both individual and corporate, and tax collections increased
proportionately* Today the Bureau of Internal Revenue receives about 90
million tax returns o.f all kinds annually, and in the latest fiscal year
its collections reached the record, spun of
billion®
"That, in brief, is the historical background against which
reorganization of the Revenue Service is being effected®
"In going about this task, we had to remember constantly that the
Bureau of Internal Revenue is not like a factory, or an assembly plant«
It could not be closed down for a week or a month while an old system was
abolished and a new system installed® The Bureau had to go right on
collecting the Nation*s revenues and doing the rest of its huge daily job,
while making the changes called for in the plan®
"This is the seventh area in which the reorganization plan has been
put into effect® In addition, we have extensively reorganized the head­
quarters of the Bureau of Internal Revenue in Washington® We shall proceed
with reorganization in other districts, on a schedule which calls for
completion of the program by December 1st of this year*
"Under the skillful direction of Commissioner of Internal Revenue,
John Be Dunlap, and his associates, the transition is being accomplished
smoothly and without inconvenience to taxpayers*
"Reorganization Plan No® 1 is not a complicated blueprint under­
standable only by experts* It is simple®'
"One of its provisions is to eliminate all non-career offices in
the Revenue Service, with the single exception of the Commissioner of
Internal Revenue* Every post in the service, with that one exception, will
now be filled by Civil Service appointees*
"Another important feature is the simplification and streamlining
of administrative authority, so as to eliminate comolexities for the tax­
payer and improve methods of supervision#
"In each of the four States of the Atlanta district there is being
established an office of Director of Internal Revenue# The office of each
Director will be in the same location as that of the State’s former
Collector of Internal Revenue, whom the Director replaces.
"Each Director will maintain supervision over all Federal Revenue
Service matters within his State® Taxpayers are assured of improved
service and greater convenience because henceforth the Director, or his
local representative, will be responsible for complete handling of all

S-3205

613
-

h

»

Federal tax matters in his locality* For convenience, local representatives
will be stationed throughout these four States in 108 presently located
offices and posts of duty,
"The geographic area served by the Directors in these four States
will be oupervised and coordinated by the District Commissioner in Atlanta*
This office is a new provision in the reorganization* The District
Commissioner has full responsibility for all field activities of the Bureau
in the four States of Georgia, Florida, North Carolina and South Carolina*
Under the reorganization, there are clear and direct lines of authority
and accountability from the Directors of Internal Revenue to the District
Coramiosioner and from the District Commissioner to the Commissioner in
Washington*
"One of the members of the District Commissioner’s staff will be the
Assistant District Commissioner for Intelligence. Under his direction
there will be intensified efforts to see that every fraudulent attempt
to evade Federal taxes will bring quick investigation and action*
"The task^of fighting tax frauds never was an easy one. In recent
years the criminal element has attempted tax evasion with greater
persistence than ever before* It is our determination that this persistence
will be met by the special agents of the Revenue Service with even greater
enforcement diligence* The Assistant District Commissioner for Intelligence
will see that the full limit of available manpower is applied to the tax
evasion problem*
nIn streamlining the ¡Revenue Bureau’s operations, we have provided
for improved supervision of employee conduct, and helped eliminate the
temptations to which some employees have succumbed in the past* There has
been established an independent Inspection Service, under the direction
of another Assistant Commissioner, which will maintain a constant check
on employee conduct and watch other Revenue Service activities as well*

1■‘•he Treasury and the Revenue Bureau have taken positive steps to
o iminate from the Service those employees who have failed in their public
trust. The work of Congressional investigative groups has had, and will
continue to have, our full cooperation.
"In placing the Reorganization Plan in effect, we have made it our
objective that only the most capable persons available would be named to
he positions of District Commissioner of Internal Revenue, Director of
.nternal Revenue, and other supervisory posts* I am confident that our
selections for the office of District Commissioner here in Atlanta and
o offices of Director of Internal Revenue in Atlanta, Jacksonville,
reensboro and Columbia will measure u p to every expectation*

S-3205

, 5.”The new District Commissioner and his associates take charge of
Federal tax matters in an area which always has been of outstanding im­
portance in the economic progress of America, but which at no time in our
history has been so dynamic as it is today*
n0ut of wartime necessity the South set out in the early forties on
its greatest industrial experiment. Factories were built to utilize more
of its raw resources, and manpower was trained for skilled production work
to help meet the Nation’s defense needs. In a very short time, the South
was outdistancing its original defense production blueprints, and was
sending planes, ships and munitions in vast quantities into the fight for
freedom,
11In the postwar years, the South’s wartime factories were converted
into peacetime industrial enterprises. Now industries and new businesses
appeared in almost every city and town. Since the end of the war, well
over 2,000 factories have been built in the South, The value of this
plant expansion runs into billions of dollars. Led by construction, every
segment of the southern economy has stepped up its onward march — a
steady, sustained miarch rarely matched in the annals of peacetime enter­
prise, As a region, the South is setting new records in real advancement
every year,
’’Along with this spectacular industrial progress, the citizens of
the South have earned higher standards of living, greater financial
prosperity and added security,
"It is significant that income payments to individuals in Georgia,
Florida, North Carolina and South Carolina, exceeded $Xh billion in 19i?l,
an increase of more than 1)4 percent over 19^0,
”It is with much satisfaction that we bring to so progressive a
segment of America an improvement in a vital service of the Federal
Government such as that incorporated in the Internal Revenue Reorganization
Plan,
”¥e have had most generous cooperation in arranging today’s ceremony*
I want to express our warm appreciation to all those who have taken a part
in making this occasion possible,
”It is my firm belief that the result of today’s reorganization
proceedings here, and those held or to be held throughout the Nation, will
be to give the American people a Revenue Service of maximum efficiency and
operating economy, manned by employees of unquestioned integrity,”
0O0

S~320£

4
p erso n n el

p o lic y ,

e ffic ie n c y ,

and

p erfo rm an ce

w h ic h

won

fu ll
It

p u b lic
is

th e

advanced

(
7
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th e

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R e o rg a n iz a tio n

prove

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th at

p la c e d .

th is

fro m

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p ro v id e s

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have

very

c o n fid e n c e

fi|lll gfc

,

'W iie m an w ho m o t i v a t e d
S e rv ic e

tru stw o rth y

c o n fid e n c e .

my f i r m
w e ll

of

P la n

//
w ill

o p e ra tin g

re o rg a n iz a tio n

sta rt,

and

w h ose

of

th e

g u id a n c e ,

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in sp ira tio n
//

and

firm

re so lv e

saw

it

th ro u g h

to

a c c o m p lish m e n t^

w as

th e -

That
It

has

is

s t i l l

a d d itio n a l

d is tille r s

and

su p e rv isio n

not

th e

task s

th e

la st

su ch

of

as

m an u factu re

th e

issu in g
of

B ureau’ s

d u tie s.

p e rm its

fire a rm s,

fo r

and

of

v a rio u s

a n g le s

of

th e

a lc o h o lic

th e

T reasu ry

th e
beverage

b u sin e ss.
^
and

It

is

th e

la rg e st

bu reau

of

one

of

th e

la rg e st

in

e n tire

W hat we a r e
stru ctu re
arm

of

^

I

and

th e

to

th e

do

th e

h ere

o p e ra tin g

is

G o v e rn m en t.
b rin g

procedures

of

up

to

th is

d ate

very

th e

v ita l

G o v e rn m en t.

w ant

to

exp ress

to

th e

c o m p risin g

th e

L o u isv ille

o ffic ia ls,

our

a p p re c ia tio n

th e

to d ay

D ep artm en t,

c o o p e ra tio n

w h ic h

p e o p le

D istric t,
of

we h a v e

your
had

in

of
and

th e
to

th ree
th e ir

h o sp ita lity
a rra n g in g

S tates
lo c a l

and
fo r

of
th is

cerem on y.
^

We h a v e

w here

th ese

to

th at

me

had

sim ila r

c o o p e ra tio n

in sta lla tio n s
th e

im p ro v e d

have

tak en

proced ures,

in

every

p la c e .
th e

lo c a lity
T h is

sig n ifie s

fo rw a rd -lo o k in g

The manner in wh i c h the Bureau of Internal Revenue
f u n c t i o n s is of direct concern to every taxpayer.

Its

a c t i v ities affect the welfare of the t a x p a y e r ’
s government
as w e l l as the financial affairs of the taxpayer himself.
Therefore, it is very m uch to the t a x p a y e r ’
s interest
that we are now inaugurating a new and better manner of
a d m i n is t e r i n g the Revenue B u r e a u ’
s responsibilities.
^ The duties of the Bureau involve not only receiving
and p ro c e s s i n g the tax reports of tens of millions of
A m e r i c a n s each year, but also the handling of tax returns
f r o m propri e t o r s h i p s and corporations, excess profits
taxes, the excises on cigarettes and liquor and jewelry
and m any other items, the taxes on the gains of gamblers,
and a long list of other levies.
V*

1

In addition to collecting and recording these taxes,

the B ureau checks the accuracy of returns, investigates
a large number of them in detail, collects billions in
taxes not voluntarily reported and makes refunds on
overp ayments running into billions.

mi

--

b û jjü y

LûüX Sm ü

On b e h a l f
w e lc o m e
of

tio n

of

you

is

to

in stitu te

and

The

of

th ree

In te rn al

h e re afte r

th e

a c tio n

in

govern m en t

know,

th e

of

C on gress.

p resen ce
had

a

hand

th e

a

fe w

m on th s

Your

h ere

th is

in

m a k in g

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to

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purpose

in

In te rn al

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Revenue.

w h ic h

fo r
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be

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re o rg a n iz ará «1

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to

of

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P la n
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K en tu ck y ,

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R e o rg a n iz a tio n

re c e iv e d

th e

re g io n

one

of

im p ro v e m e n t

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e m b o d ie s

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S tates

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we a r e

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I

p ro c e e d in g s,

B ureau

S e rv ic e

w h ic h

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fo r

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S e rv ic e

you

to

b a sic

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R evenue

as

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R evenue
good

w a rm ly

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\V

T reasu ry

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a ll

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co u n try .

now b e i n g
th e

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as

in d ic a te d

g ra tify in g
p o ssib le .

to

a ll

th e
step s

As
in
approval
by your
who h a v e

Info Service heading
f

s*

RELEASE 10 A.M. CST

° -

F r id a y # O ctob e r 24# 1952

Louisville,Ky«,

Under Secretary of the

Treasury

Edward H. Foley sa id today, in opening ceremonies at

Columbi»

A u d ito r io »

O ct« 2 ÎÎ —

fo r the in s t a lla t io n of o f f i c i a l s of the

reorganized In tern al Revenue Serv ice fo r
an d T an n as• • • :

K e n tu c k y , In dian a

TREASURY DEPARTMENT
Information S e rv ic e

WASHINGTON, D .C .

6
RELEASE 10 A.M. CST
Friday, Octob er 24, 1 9 5 2 .

S-3206

Louisville, Kentucky, October 2 k -- Under Secretary of the
Treasury Edward H. F o l e y said today, in opening ceremonies at
Columbia A u d i t o r i u m for the installation of officials of the
reorganized Internal Revenue Service for Kentucky, Indiana and
Tennessee:
"On b e half of the T reasury Department, I want to welcome
all of you w a r m l y to these proceedings, the purpose of w h ich is
to institute for the States of Kentucky, Indiana and Tennessee
a basic improvement in the o r g a n ization and methods of the
Bureau of Internal Revenue.
"These three States f orm a regi o n w h i c h for p u r p o s e s of
Internal Revenue Service admini s t r a t io n will be k n o w n h e r e a f t e r
as the Louisville District.
"The action w h i c h we are taking to reorganize the Revenue
Service embodies one of the m ost progressive steps in good
government in the h i s t o r y of this country.
As y o u know, the
Reorganization Plan n o w b e i n g p l a c e d in effect received a f e w
months ago the o v e r w helming approval of the Congress.
Your
support of it, as indicated b y your presence here this morning,
Is gratifying to all who have had a hand in m a k i n g this action
possible.
"The m a n n e r in w h i c h the B u r e a u of Internal Revenue functions
is of direct c o n cern to e v ery t a x p a y e r „
Its activities affect
the welfare of the taxpayer's government as well as the financial
affairs of the taxpayer himself.
Therefore, it is very m u c h to
the taxpayer's interest that we are n o w i n a u gurating a new and
better manner of adm i n i s t e r i ng the Revenue Bureau's responsibiliti
"The duties of the B u r e a u involve not only recei v i n g and
Processing the tax reports of tens of m illions of Americans each
par, but also the h a n d l i n g of tax returns f r o m p r oprietorships
and corporations, excess p r o f i t s taxes, the excises on
cigarettes and l i q u o r and jewelry and m a n y other items, the taxes
°n the gains of gamblers, and a long list of other levies.

;

e
C os-

~

2

-

"In addition to collecting and recording these taxes* the
Bureau checks the accuracy of returns* investigates a large
number oi them in detail* collects billions In taxes not
voluntarily reported and makes refunds on overpayments running
into billions.
"That is still not the last of the B u r e a u 1s duties.
It has
additional t a sks^such as issuing permits for distillers and the
manufacture of firearms* and the supervision of various angles
of the alcoholic beverage business.
"It is the largest b u r e a u of the Treasury Department*
one of the largest in the entire Government.

and

"What we are to do here today is b ring up to date the
structure and the operating procedures of -this very vital arm of
the G o v e r n m e n t ,
'I want to express to the people 0.1 the three States
comprising^the Louisville District* and to their local officials,
our appreciation of your hospi t a l i t y and of the c o o p eration which
we have had in a rranging for this ceremony.
"We have had similar cooperation in every locality where
these installations have taken place.
This signifies to me that
the improved procedures* the forward-looking p ersonnel policy*
the advanced d e s i g n for operating efficiency* and the » b u i l t - i n1
assurances- of t r u s t w o r t h y p e r f ormance w h ich the Reor g a n i z a t io n
Planprovid.es have w o n full public confidence.
"It is m y firm belief that this public confidence will
prove well placed."
Under S e cretary F oley Introduced Secretary Snyder* the
principal speaker* as "the m a n who motiv a t e d r e o r g a n i z a t io n of
the Revenue Service from the very start* and whose guidance*
inspiration and f i r m resolve saw it through to a c c o m p l i s h m e n t ."

0O0

S-3206

warm appreciation to all those
§ |||t! 1 •

f ||||B p |l | ; , |

|| |g H

who have taken a part in aiak m g
this occasion possible.
I

It is my fir® belief that the

result of today *s reorganization
proceedings here, and those held
or to be held throughout the
Hatton, will be to give the
American people a Revenue Service
of is»itinil-» efficiency and operatic

economy, manned by employees of
unquestioned integrity.

//

over $700

mi11ion, or «sore tha

one-foutib of the total alcohol
taxes collected during fiscal
year 1352 over the entire
United States, was collected from
the States in the Louisville
D istrict.
1 It is with »lists satisfaction
that we bring to a region so
progressive, and a people so
forward-looking, an improvement
in a vital service of the Federal

(,The district’s importance at
i source of Federal revenues
is manifest in tbs fact that total
Federal tax collections in the
three states in the fiscal year
1352 were more than 13 billion.
:! l am impressed with the
growing importance of the three
States in this "S1strict to our
country’s revenue system.

By

virtue of the concentration of
alcohol production in this area,

TS3
it

i1# there art 110 longer

geographic frontiers to conquer,
and one© rugged terrain is now a
panorama of acientif ically-tilled
farms and busy induttrisl centers,
the pioneer ing spirit is still
very much in evidence in Kentucky
and her sister States

it

is

evident in the daily live® of
millions of your people as they
work together to open up new

32
U,

É t

artsy pioneers
first
ària

use
C U

w>

È

.$Ét

xn i*

®#iai

efii

(U<

other important p
citarti ini line's
#| *«#s

k- w i 1
a*

0 li C$ *S: é

d

W M I 4*

y ¡M» %

* & t

Il ® I

t towns «rd li tier,

ait# ©e l a b r i fthsci a wide v a n e
ttì yt iX

th is

’® vast natural resources.

fl1Bii(l£«./0J
, \ ^

**- 3Q **

colonies* and through the
enterprise of your pioneering
forefathers it decants the
crossroads lor the first great
territorial expansion of our
country.

Ibruugh the

Wilderness fcoad, a pioneer
trail laid out by 3aniei ioone
through the Gumeerland 6ap
in 177o, came the first colon!
settlers to Kentucky and

»

i

**

¿ 6

ï'V®

#I

unser tot üireetiun ot

Assistant vci«ta iss Ioner , which
saints in i constant cr

m
I#'M

w

$
%
%#

employee conduct and witch otter
Htvenue Servio-» activities' as
(i

It
•#■■■¿
;:vI«fi*i
t>
#
4fft
f¡?
—■•

n a v a
Sureau p

to eliw

»

1

y and the Revenue

tafeen

IS

positivo stops
the hervifs| those
failed iri their

ül 41HI

\r
Vm'* ît?**

Î
.-i®

S§
?

nvesticativo groups

**

¿¡4*

**

G

"The tick of fighting tax
frauds never was an ®isy one.
in recent yfii*« tha criminal
element ha* attempted tax evasion
with greater per*istance than
ever before.

it is our

dotar«mat ion that this persistence
ilP'i

I
f

1
k|

¡i•M'

w ill

ha « e t by

of the items nue
treater enforcement diligence
The Assistant District Commissi oner
illii'RCi will see that

I

rector«

,(IJnder the skillful direction
of §#siti!issioner of Internal
Revenue, John 8. IJunlap, and hi®
associates, the transition is
being accomplished smoothly and
without tnconvefii©nee to
taxpayers.
Reorganization
Plan Bo. 1
#
is not a com piieated blueprint
understandable only by experts.
It is simple.
wOne of its provisions is

of thö Sur ri « of Infornai
Hevs mia in Washington,

if

shall proosod with roorgt mz
in

districts, on t

sohodui# which calls for
ooßtpiötion of this program
by fitc«»h«r 1st of this, year

asary
at íon
W ü i ' 6 ft

sharply increased ratés sn tiiss e
taxes already in existence.
I
^Collection methods were
drastically changed fcy the
installation of the income-tax
withholding system.

Still

another complication was the
fact that the rapid rise in
wartime i n t o i i i fostered tax
evasion® that had to
discovered a

root if19p

^The lilt

j

I

spot-s froii! the Internai |«v , |•
Servie©, and ispr®v#»fat» in iis
©eentional
p t p i i i fetgan a t
Ir
«y direction in 1946, soon after
i itôi®« Socro tarif of th© Troasury.
Our warti»® i||ifisne® in
th® Service htd dofuonstratofll
th® fieeetsity for sueh action.
An organisation which h»d
workod ta,tri.y wall în it®
©tr 11®r years, wti#n it collocta-d
comparât »vely modost araount s of

mmtt

diligent effort
adisi Bi it rt
Treasury Ciepar tilelit and

representiog the Congress,, other
G o v e r n ® # fit

« a g e n c i e s ,

b u s i n e s s

management f if os, and taxpayer •

organizations —

in short,- the

composite of the moat capable
consultants available*

responsivi liti es an e fai,if
aeri tins the confidence of the
public*
(t

Front th© very heginn lug sf

the reorganise!ion task ! have
had enthusiast le cooperation —
fro,»« th e P r e s id e n t » Untier

Secretary Foley9 the Treasury
Stiff, Conni eel oner Ounlap ah d
his assn©lates in the Revenue
iurtssu*
^Th« Reorganise!ion ?l*n is

this vital fsovern«

funeti on,

as Ȥ41 tt; of your follow
oitliens who will tiletlitl§f#r
the woior.niztd internal Revenue
operations in this district*,
that wo shall bring tenths
taxpayers a service fully adequa
t o ’«eat its increased
responsibilities and fully
«writing -the confidtne# of the
public.
•'As sons trip' daughters of a
region whoso roots are dsap in

"i aril happy, to join in these
egressiontes • hieft install tor
Kentucky, 11 lifts, and fini'ii
region«!. otfifiis of our ooderni zed

ami f « v i t a i l z e d iecletai revenue
Service.

'

apici i& ever

pioneering 1

and better uays ot doing things
in Government as veil as in private

enterpri£#•

11 is the hope ot

those in 'Washington who have
q i

i eoiVi*

the reoraam

Info Serv Letter head

RELEASE 10 A.M. GST
Friday, October 24, 1952,
Louisville, Kentucky, October 24 — Secretary of the
Treasury John W# Snyder, speaking at ceremonies in the
Columbia Auditorium for the installation of officials of
the reorganized Internal Revenue Service for Kentucky,
Indiana and Tennessee, said today*

TREASURY DEPARTMEN T
Information

Service

RELEASE 1 0 A * M* GST
F r id a y , O c to b e r 21+3 195>2 „

WASHINGTON, D .C .

S-3 2 0 7

L o u i s v i l l e , K e n tu c k y , O c to b e r 2 k — S e c r e t a r y o f t h e T r e a s u r y Jo h n W*
Sn yd er, s p e a k i n g a t c e r e m o n ie s i n t h e C o lu m b ia A u d it o r iu m f o r t h e
i n s t a l l a t i o n o f o f f i c i a l s o f t h e r e o r g a n i s e d I n t e r n a l R ev en u e S e r v i c e f o r
K entucky, I n d i a n a a n d T e n n e s s e e , s a i d t o d a y :
UI am h a p p y t o j o i n i n t h e s e c e r e m o n ie s w h ic h i n s t a l l f o r K e n tu c k y ,
In d ian a a n d T e n n e s s e e r e g i o n a l o f f i c e s o f o u r m o d e r n iz e d a n d r e v i t a l i z e d
F e d e ra l R ev en u e S e r v i c e 0
nA m eric a i s e v e r p i o n e e r i n g i n new a n d b e t t e r w ays o f d o in g t h i n g s ,
in G overnm ent a s w e l l a s i n p r i v a t e e n t e r p r i s e *
f t i s th e hope o f th o se
in W ash in gton who h a v e d i r e c t e d t h e r e o r g a n i z a t i o n o f t h i s v i t a l
Government f u n c t i o n , a s w e l l a s o f y o u r f e l l o w c i t i z e n s who w i l l a d m i n i s t e r
the m o d e rn iz e d I n t e r n a l R ev en u e o p e r a t i o n s i n t h i s d i s t r i c t , t h a t we s h a l l
b rin g t o th e t a x p a y e r s a s e r v i c e f u l l y a d e q u a t e t o m e e t i t s i n c r e a s e d
r e s p o n s i b i l i t i e s an d f u l l y m e r it in g th e c o n fid e n c e o f th e p u b l i c .
nAs s o n s a n d d a u g h t e r s o f a r e g i o n w h ose r o o t s a r e d e e p i n A m e ric a n
t r a i l - b l a z i n g e n t e r p r i s e , I know t h a t y o u a p p r e c i a t e t h e im p o r ta n c e o f
p r o g r e s s iv e a c t i o n i n a l l l i n e s o f n a t i o n a l a s w e l l a s p e r s o n a l e n d e a v o r .
¥e a r e c o n f i d e n t t h a t t h e p r o g r e s s i v e a c t i o n b e i n g t a k e n h e r e t o d a y ,
under th e a u t h o r i t y o f th e P r e s i d e n t ' s R e o r g a n i z a t i o n P la n N o. 1 o f 19ü>2,
w ill b r i n g t o t h e t a x p a y e r s a R e v e n u e S e r v i c e f u l l y a d e q u a t e t o m eet i t s
in c r e a s e d r e s p o n s i b i l i t i e s a n d f u l l y m e r i t i n g t h e c o n f i d e n c e o f th e p u b l i c .
nProm t h e v e r y b e g i n n in g o f t h e r e o r g a n i z a t i o n t a s k X h a v e h a d
e n t h u s i a s t i c c o o p e r a t i o n — fr o m t h e P r e s i d e n t , U n der S e c r e t a r y F o l e y , t h e
T re asu ry S t a f f , C o m m is sio n e r D u n lap a n d h i s a s s o c i a t e s i n t h e R ev en u e
Bureau*
.nThe R e o r g a n i z a t i o n P la n i s t h e p r o d u c t o f e a r n e s t s t u d y a n d d i l i g e n t
e f i o r t n o t o n ly b y a d m i n i s t r a t i v e e x p e r t s o f t h e T r e a s u r y D e p a r tm e n t a n d
the R evenue S e r v i c e i t s e l f b u t a l s o b y i n d i v i d u a l s a n d g r o u p s r e p r e s e n t i n g
the C o n g r e s s , o t h e r G overn m en t a g e n c i e s , b u s i n e s s m an agem en t f i r m s , a n d
tax p ay er o r g a n i z a t i o n s — i n s h o r t , th e c o m p o s it e o f t h e m o st c a p a b l e
c o n s u lt a n t s a v a i l a b l e .

-

2

662
-

11The g o a l s o f t h i s a c t i o n a r e a maximum o f o p e r a t i n g e f f i c i e n c y a n d
econony, f a s t , c o n v e n ie n t a n d a c c u r a t e s e r v i c e t o a l l p e r s o n s t r a n s a c t i n g
b u sin ess w ith t h e B u r e a u , s c r u p u l o u s p r o t e c t i o n o f t h e G ov ern m en t r e v e n u e s ,
and th e m a in te n a n c e o f u n q u e s t i o n e d i n t e g r i t y among t h e e m p lo y e e s o f t h e
Bureau. I h a v e e v e r y c o n f i d e n c e t h a t t h o s e g o a l s w i l l b e r e a l i z e d «
"The p r e p a r a t i o n o f th e R e o r g a n i z a t i o n P la n w as a tre m e n d o u s t a s k *
and i t w as n o t a c c o m p l is h e d o v e r n i g h t »
The s t u d y g i v e n t o t h e p r o b le m
covered s e v e r a l y e a r s o f i n t e n s i v e w o r k , a n d t h e f i n a l d r a f t i n g o f t h e p l a n
was n o t c o m p le t e d u n t i l a f t e r a l o n g s e r i e s o f p r e p a r a t o r y s t e p s h a d b e e n
taken.
"T h e e l i m i n a t i o n o f w eak s p o t s fr o m t h e I n t e r n a l R ev en u e S e r v i c e ,
and im p ro v em en ts i n i t s o p e r a t i o n a l m e th o d s, b e g a n a t my d i r e c t i o n i n 19 h 6 ,
soon a f t e r I b ecam e S e c r e t a r y o f t h e T r e a s u r y .
"O ur w a r tim e e x p e r i e n c e i n t h e S e r v i c e h a d d e m o n s t r a t e d t h e n e c e s s i t y
for such a c t i o n . An o r g a n i z a t i o n w h ich h a d w o rk e d f a i r l y w e l l i n i t s
e a r li e r y e a r s , when i t c o l l e c t e d c o m p a r a t i v e l y m o d e s t am o u n ts o f t a x e s
from r e l a t i v e l y fe w p e o p l e , h a d b e e n a l m o s t o v erw h elm e d b y t h e u n p r e c e d e n t e d
demands made on i t i n t h e W o rld War I I e r a .
The S e r v i c e s u d d e n l y h a d t o
handle m i l l i o n s o f r e t u r n s fr o m t a x p a y e r s who n e v e r b e f o r e h a d b e e n
req u ired t o p a y F e d e r a l in co m e t a x e s .
I t h a d t o a ssu m e r e s p o n s i b i l i t y
alm ost o v e r n i g h t f o r t h e c o l l e c t i o n o f new k in d s o f t a x e s , a n d th e
a p p lic a t io n o f s h a r p l y i n c r e a s e d r a t e s on t h o s e t a x e s a l r e a d y i n e x i s t e n c e .
" C o l l e c t i o n m e th o d s w ere d r a s t i c a l l y c h a n g e d b y t h e i n s t a l l a t i o n o f
the incom e t a x w i t h h o ld i n g s y s t e m . S t i l l a n o t h e r c o m p l i c a t i o n w as t h e
fa c t t h a t t h e r a p i d r i s e i n w a rtim e in c o m e s f o s t e r e d t a x e v a s i o n s t h a t h a d
to be d i s c o v e r e d a n d r e c t i f i e d .
"The in a d e q u a c y o f t h e R ev en u e S e r v i c e d e q u ip m e n t a n d m eth o d s w as
p la in ly a p p a r e n t , a n d t h e n e e d f o r a t h o r o u g h o v e r h a u l i n g w as c o n s p i c u o u s .
But t e m p o r a r i l y , th e o r o b le m h a d t o b e p u t a s i d e .
S o lo n g, a s t h e w ar
continued we h a d n e i t h e r t h e t i m e , t h e m en, n o r t h e m a c h in e ry t o a c c o m p l is h
the n e c e s s a r y o v e r h a u l i n g .
"3 y I 9I1.6 , t h e s i t u a t i o n h a d c h a n g e d *
More men a n d women b ecam e
a v a ila b le f o r c i v i l i a n em p loy m en t a s t h e s t r e n g t h o f t h e Arm ed F o r c e s
d ec lin ed . More m a c h in e r y b ecam e a v a i l a b l e w i t h t h e r e d u c t i o n i n t h e dem ands
for m i l i t a r y e q u ip m e n t .
I t w as th e n t h a t t h e w ork o f m o d e r n iz in g t h e
Bureau o f I n t e r n a l R ev en u e w as s t a r t e d .
nEven a s we t o o k t h e f i r s t s t e p s , o u r r a p i d p o s t w a r r e c o n v e r s i o n ,
with i t s a t t e n d a n t p r o s p e r i t y , a d d e d t o t h e d im e n s io n s o f t h e p r o b le m *
The p e r io d fr o m 19R6 t o 1 9^2 saw a l a r g e i n c r e a s e i n t h e num ber o f in co m e
tax r e t u r n s , b o t h i n d i v i d u a l a n d c o r p o r a t e , a n d t a x c o l l e c t i o n s i n c r e a s e d
p r o p o r t io n a t e ly . T o d ay t h e B u r e a u o f I n t e r n a l R ev en u e r e c e i v e s a b o u t 90
m illion t a x r e t u r n s o f a l l k i n d s a n n u a l l y , a n d i n t h e l a t e s t f i s c a l y e a r
it s c o l l e c t i o n s r e a c h e d th e r e c o r d sum o f $6i> b i l l i o n *

S-320?

GB3
- 3 " T h a t , i n b r i e f , i s t h e h i s t o r i c a l b a c k g r o u n d a g a i n s t w h ic h
r e o r g a n i z a t i o n o f t h e R ev en u e S e r v i c e i s b e in g e f f e c t e d »
" I n g o in g a b o u t t h i s t a s k , we h a d t o rem em b er c o n s t a n t l y t h a t th e
Bureau o f I n t e r n a l R ev en u e i s n o t l i k e a f a c t o r y , o r a n a s s e m b l y p l a n t «
I t c o u ld n o t b e c l o s e d down f o r a w eek o r a m onth w h ile a n o l d s y s t e m w as
a b o l is h e d a n d a new s y s t e m i n s t a l l e d .
The B u r e a u h a d t o g o r i g h t on
c o l l e c t i n g t h e N a t i o n ’ s r e v e n u e s a n d d o in g t h e r e s t o f i t s h u ge d a i l y j o b ,
w hile m ak in g t h e c h a n g e s c a l l e d f o r i n t h e p l a n «
,!T h is i s t h e e i g h t h a r e a i n w h ic h t h e R e o r g a n i z a t i o n P la n h a s b e e n
put i n t o e f f e c t «
I n a d d i t i o n , we -have e x t e n s i v e l y r e o r g a n i z e d t h e h e a d ­
q u a r t e r s o f t h e B u r e a u o f I n t e r n a l R ev en u e i n W ashington® We s h a l l
p ro c e e d w it h r e o r g a n i z a t i o n i n o t h e r d i s t r i c t s , on a s c h e d u le w h ic h c a l l s
fo r c o m p le t io n o f t h e p r o g r a m b y D ecem ber 1 s t o f t h i s y e a r «
’’ U nder t h e s k i l l f u l d i r e c t i o n o f C o m m issio n e r o f I n t e r n a l R e v e n u e ,
John B . D u n la p , a n d h i s a s s o c i a t e s , t h e t r a n s i t i o n i s b e in g a c c o m p l is h e d
sm oothly a n d w i t h o u t in c o n v e n ie n c e t o t a x p a y e r s «
" R e o r g a n i z a t i o n P la n No« 1 i s n o t a c o m p l i c a t e d b l u e p r i n t u n d e r ­
s ta n d a b le o n ly b y e x p e r t s «
I t i s s im p l e «
"One o f i t s p r o v i s i o n s i s t o e l i m i n a t e a l l n o n - c a r e e r o f f i c e s i n t h e
Revenue S e r v i c e , w i t h t h e s i n g l e e x c e p t i o n o f th e C o m m issio n e r o f I n t e r n a l
Revenue. E v e r y p o s t i n t h e s e r v i c e , w i t h t h a t on e e x c e p t i o n , w i l l now
be f i l l e d b y C i v i l S e r v i c e a p p o i n t e e s «
"A n o th e r i m p o r t a n t f e a t u r e i s t h e s i m p l i f i c a t i o n a n d s t r e a m l i n i n g o f
a d m in istr a tiv e a u t h o r i t y , so a s to e lim in a te c o m p le x it ie s f o r th e ta x p a y e r
and im p ro ve m e th o d s o f s u p e r v i s i o n «
" I n each o f th e th r e e s t a t e s o f th e L o u i s v i l l e d i s t r i c t th e r e i s
being e s t a b l i s h e d an o f f i c e o f D i r e c t o r o f I n t e r n a l R e v e n u e «
The o f f i c e
of each D i r e c t o r w i l l b e i n th e sam e l o c a t i o n a s t h a t o f t h e S t a t e ’ s
form er C o l l e c t o r o f I n t e r n a l R e v e n u e , whom t h e D i r e c t o r r e p l a c e s «
"E a c h D i r e c t o r w i l l m a i n t a i n s u p e r v i s i o n o v e r a l l F e d e r a l R ev en u e
S e rv ic e m a t t e r s w i t h i n h i s S t a t e «
T a x p a y e r s a r e a s s u r e d o f im p r o v e d
se r v ic e a n d g r e a t e r c o n v e n ie n c e b e c a u s e h e n c e f o r t h t h e D i r e c t o r , o r h i s
lo c a l r e p r e s e n t a t i v e , w i l l b e r e s o o n s i b l e f o r c o m p le te h a n d l in g o f a l l
F e d e ral t a x m a t t e r s i n h i s l o c a l i t y .
F o r c o n v e n ie n c e , l o c a l r e p r e s e n t a t i v e s
w ill be s t a t i o n e d t h r o u g h o u t t h e s e t h r e e s t a t e s i n 125 > l o c a l o f f i c e s a n d
p o sts o f d u ty »
"T he g e o g r a p h ic a r e a s e r v e d b y t h e D i r e c t o r s i n t h e s e t h r e e S t a t e s
w ill be s u p e r v i s e d a n d c o o r d i n a t e d b y th e D i s t r i c t C o m m is sio n e r i n
L o u i s v i l l e , T h is o f f i c e i s a new p r o v i s i o n i n t h e r e o r g a n i z a t i o n .
The

S-3207

684
- kDistrict Commissioner has full responsibility for all field activities of
the Bureau in the three States of Kentucky, Indiana and Tennessee. Under
the reorganization, there are clear and direct lines of authority and
accountability from the Directors of Internal Revenue to the District
Commissioner and from the District Comroissioner to the Commissioner in
Washington*
“ One o f t h e m em bers o f t h e D i s t r i c t C o m m is s io n e r ’ s s t a f f w i l l b e the
A s s i s t a n t D i s t r i c t C o m m issio n e r f o r I n t e l l i g e n c e .
U n d er h i s d i r e c t i o n
there w i l l b e i n t e n s i f i e d e f f o r t s t o s e e t h a t e v e r y f r a u d u l e n t a t t e m p t to
evade F e d e r a l t a x e s w i l l b r i n g q u i c k i n v e s t i g a t i o n a n d a c t i o n .
“ The t a s k o f f i g h t i n g t a x f r a u d s n e v e r w as an e a s y o n e .
In r e c e n t
y e ars th e c r i m i n a l e le m e n t h a s a t t e m p t e d t a x e v a s i o n w ith g r e a t e r
p e r sis te n c e th a n e v e r b e f o r e .
I t i s ou r d e te r m in a tio n t h a t t h i s p e r s i s t ­
ence w i l l b e m et b y t h e s p e c i a l a g e n t s o f th e R ev en u e S e r v i c e w it h e v e n
g r e a te r e n fo r c e m e n t d i l i g e n c e .
The A s s i s t a n t D i s t r i c t C o m m is sio n e r f o r
I n t e l l i g e n c e w i l l s e e t h a t t h e f u l l l i m i t o f a v a i l a b l e m anpow er i s a p p l i e d
to th e t a x e v a s i o n p r o b le m *
“ In s t r e a m l i n i n g t h e R ev en u e B u r e a u ’ s o p e r a t i o n s , we h a v e p r o v i d e d
fo r im p ro v e d s u p e r v i s i o n o f e m p lo y e e c o n d u c t , a n d h e l p e d e l i m i n a t e t h e
te m p ta tio n s t o w h ic h some e m p lo y e e s h a v e su c cu m b ed i n t h e p a s t .
T h ere
has b een e s t a b l i s h e d an in d e p e n d e n t I n s p e c t i o n S e r v i c e , u n d e r t h e
d ir e c t io n o f a n o t h e r A s s i s t a n t C o m m is s io n e r , w h ic h w i l l m a i n t a i n a
c o n sta n t c h e c k on e m p lo y e e c o n d u c t a n d w a tc h o t h e r R ev en u e S e r v i c e
a c tiv itie s a s w e ll.
“ The T r e a s u r y a n d t h e R ev en u e B u r e a u h a v e t a k e n p o s i t i v e s t e p s t o
e lim in a te fr o m t h e S e r v i c e t h o s e e m p lo y e e s who h a v e f a i l e d i n t h e i r p u b l i c
t r u s t . The w ork o f C o n g r e s s i o n a l i n v e s t i g a t i v e g r o u p s h a s h a d , a n d w i l l
con tin u e t o h a v e , o u r f u l l c o o p e r a t i o n *
“ In p l a c i n g t h e R e o r g a n i z a t i o n P la n i n e f f e c t , we h a v e made i t o u r
o b je c t iv e t h a t o n ly t h e m o st c a p a b l e p e r s o n s a v a i l a b l e w o u ld b e nam ed t o
the p o s i t i o n s o f D i s t r i c t C o m m issio n e r o f I n t e r n a l R e v e n u e , D i r e c t o r o f
I n te r n a l R e v e n u e , a n d o t h e r s u p e r v i s o r y p o s t s .
I am c o n f i d e n t t h a t o u r
s e l e c t i o n s f o r t h e o f f i c e o f D i s t r i c t C o m m issio n e r h e r e i n L o u i s v i l l e a n d
the o f f i c e s o f D i r e c t o r o f I n t e r n a l R ev en u e i n L o u i s v i l l e , I n d i a n a p o l i s
and N a s h v i l l e w i l l m e a su r e up t o e v e r y e x p e c t a t i o n *
“ H i s t o r i c a l l y , t h i s D i s t r i c t h a s h a d a n im p o r t a n t p l a c e i n t h e B u r e a u
of I n t e r n a l R ev en u e s i n c e i t s c r e a t i o n b y C o n g r e s s on J u l y 1 , 1 8 6 2 .
S in c e
then, t h e r e h a v e b e e n 3 0 C o m m is sio n e r s o f I n t e r n a l R ev en u e o f whom f o u r
came fro m t h i s D i s t r i c t .
“ I am c o n s c i o u s o f t h e g r e a t im p o r ta n c e o f t h i s t h r e e - s t a t e a r e a t o
the A m erican econom y a s w e l l a s t o th e c o u n t r y ’ s r e v e n u e s y s t e m .

S-3207

- 9 -

’
’
In Revolutionary War days this area was America’
s beckoning new.
frontier for the young colonies, and through the enterprise of your
pioneering forefathers it became the crossroads for the first great
territorial expansion of our country* Through the Wilderness Road, a
pioneer trail laid out by Daniel Boone through the Cumberland Gap in 1775>>
came the first colonial settlers to Kentucky and Tennessee. At about the
same time another great American pioneer came to the Kentucky country —
Colonel George Rogers Clark* On the present site of Louisville in 1779
he established the supply base for his famous expeditions which were to
culminate in the conquest of the original Northwest country, of which
Indiana was a choice part*
’
’
Following in the footsteps of the hardy pioneers who first opened
up this rich new area came hundreds of thousands of other important
pioneers who cleared the lands for productive agriculture, opened roads
and.built towns and cities, and established a wide variety of industry to
utilize this region’
s vast natural resources*
’
’
While there are no longer geographic frontiers to conquer, and once
rugged terrain is now a panorama of scientifically-tilled farms and busy
industrial centers, the pioneering spirit is still very much in evidence
in Kentucky and her sister States. It is evident in the daily lives of
millions of your people as they work together to open up new economic
frontiers to assure the continued growth and progress of region and Nation*
’
’
Economic history of recent years clearly reflects the upward surge
of business activity and individual prosperity which these states have en­
joyed* Income payments, to individuals in Kentucky, Indiana and Tennessee
were $13*3 billion in 1951* an increase of lij. percent over 1990*
nThe district’
s importance as a source of Federal revenues is manifest
in the fact that total Federal tax collections in the three states in the
fiscal year 1992 were more than $3 billion.
”1 am impressed with the growing importance of the three States in
this District to our country’
s revenue system* By virtue of the
concentration of alcohol production in this area, over $700 million, or
more than one-fourth of the total alcohol taxes collected during fiscal
year 1992 over the entire United States, was collected from the States in
the Louisville District.
”
It is with much satisfaction that we bring to a region so progressive,
and a people so forward-looking, an improvement in a vital service of the
Federal Government such as that incorporated in the Internal Revenue
Reorganization Plan*
’
’
Many citizens from your States consulted with us while the reorgan­
ization plan was in course of preparation* Congressmen and Senators from
this area gave the plan their strong support.
S-3207

666
-

6

-

”We have had m o st g e n e r o u s c o o p e r a t i o n i n a r r a n g i n g t o d a y ’ s cerem o n y «
I w ant t o e x p r e s s o u r warm a p p r e c i a t i o n t o a l l t h o s e who h a v e t a k e n a
p a r t i n m ak in g t h i s o c c a s i o n p o s s i b l e *
11I t i s ny f i r m b e l i e f t h a t t h e r e s u l t o f t o d a y ’ s r e o r g a n i z a t i o n
p r o c e e d in g s h e r e , a n d t h o s e h e l d o r t o b e h e l d t h r o u g h o u t t h e N a t i o n , w i l l
be t o g i v e t h e A m e ric a n p e o p l e a R ev en u e S e r v i c e o f maximum e f f i c i e n c y a n d
o p e r a t i n g econ om y , m anned b y e m p lo y e e s o f u n q u e s t io n e d i n t e g r i t y •'*

S-3207

t B 1 A 8 g K T j.J J .4 g f J l i J J
Washington, D. 0.

Information Service

FOE M

i 0»
3

X 6$

The Treasury Department announced today that Clanby Company, I n c ., 111
E i^ith Avanue, Mew Fork City» Mew York, has pleaded g u ilty to a charge of
having rem itted more than $13,000 to Communist China in v io latio n of the
T r e a s u r y Department ’ s Foreign A ssets Control Eegulations.
The Olemby Company pleaded g u ilty to an information which had been filed
hy the U. S. Attorney fo r the Southern D istric t of Mew fork . The Treasury De­
partment in dicated that the unlawful $13,000 remittance to Communist China
was made by the Clemby Company through i t s Bong Kong agent, Mu Pei Chi, in
connection with & shipment from China o f yak h a ir , human h air and hairnets
which had been ordered by the Clemby Comoany p rio r to December 17, 1950, the
e ffe c tiv e date of the Foreign A ssets Control Eegulations. These Eegulations
prohibit a l l unlicensed trade and fin a n c ia l tran saction s with Communist China
or fo rth Korea and were issu ed on December 17, 1950 a fte r the Chinese Commu­
n is t s entered Korea*
The Treasury revealed that the Bong Kong agent of Clemby Cob io any had been
directed to remit the funds to fia o Tuan Ban, a partner in the Eternal Trading
Company, T ien tsin , China. The In vestigation o f the Clemby Company was con­
ducted by the Mew fork Enforcement O ffice of the Foreign A ssets Control as
5S.° ;
Mtw Ytrrfr. has been under in v estigatio n fo r several months.

MJMarks: MDMai denshb

10/21/52

* ' *■ *

IMMEDIATE RELEASE
F rid ay , October 24, 1 9 5 2 .

S -3208

The T r e a s u r y Department anno u n c e d today that Gl e m b y Company,
Incorporated, 111 E i g h t h Avenue, N e w Y o r k City, New York, has
pleaded guilty to a charge of h a v i n g r e m i t t e d more t han $ 1 3 *000
to Communist China in v i o l a l a t i o n of the T r e a s u r y D e p a r t m e n t ’s
Foreign Assets Control Regulations.
The Glemby Company p l e a d e d gu i l t y to a n i n f o r m a t i o n w h i c h
had been filed b y the U. S, A ttor n e y for the S o u t h e r n District
of New York.
The T r e a s u r y Depart m e n t indicated that the unlawful
$13,000 remittance to Communist China was made b y the Gl e m b y Company
through its Hong Kong agent, W u Pei Chi, in c o n n e c t i o n w i t h a
shipment from China of y a k hair, h u m a n h air and hai r n e t s w h i c h had
been ordered by the Glemby Company p r i o r to D e c e m b e r 17, 1950,
the effective date of the F o r e i g n Assets Control Regulations.
These Regulations p r o h i b i t all u n l i c e n s e d trade and financial
transactions w i t h Communist China or Nor t h Kor e a and were issued
on December 17, 1950 after the Chinese Communists e n t ered Korea.
The T reasury revea l e d that the Kong Kong agent of Gl e m b y
Company had b e e n d i r e c t e d to remit the funds to Tiao Y uan Han,
a partner in the Eternal T r a d i n g Company, Tientsin, China.
The
investigation of the G l emby Company was c o n ducted b y the
New York Enforcement Office of the F o r e i g n Assets Control as part
of a campaign to halt all remittances to Communist China.
The
Glemby Company, a manufacturer, importer, and w h o l e s a l e r of hair­
nets and accessories has b e e n u n d e r i n v e s t i g a t i o n for several
months.

oOo

ii
ic.

onoratuictior O

»

Commanier, to

v

you and to ail your personnel.
(Commander Taylor

ôCCâjûij')

Tf»

i 'IL-».

t. for enrollment of

m u **• v i

33 percent o f -Ip ¿To0 éitspi oy eets,
Í present this Minute Man flag
to the Command» no tiff ioer of the
*

Ü n V ft JL

?%

i¿>ious Bate

Littie Creek, Virginia -« Captain
offner.

My hearties

United States Savings Bonds
Program,

I have my first

opportunity to present Minute
Man flags to two Navy commands.
First,

for enrollment of 92.7

percent of A,Old employees in
the Payroll Savings Plan,

i

present this Minute Wan flag to
the Commanding Officer of the
§» I . Naval Ammunition depot,
St. duller»’® Creek,
Commander

Virginia —

.. C. Taylor.

standard
Man flags

«wards for
Four

w

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pofltvf§.f* pfe*r i o cl s.fs'd. up

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. 9jf*J
Uti u

interest on the investment
in the broader sense of the
increased national income which
our c a m s

it has generated

from savings and investment
have not been simply dollar
ga ins

i would comprehend

them better if

thought of

these gains as they exist in the
term of useful things
things as the better homes
in which we live, the more

nue

«eB*

in i

determined to do everyth ing
within your power to help keep
our country strong and free.
That is why you have
attained your outstanding record
in supporting the United States
Defense Bonds Program.

I am

advised that the Navy
Department leads all government
agencies with 73,1 percent
of all its civilian employees
keeping part of their pay in

n ati onal

great shipyard, and at the supply
center, the iir station, the
ammunition depot, the amphibious
base and the other activities
which comprise the Norfolk Naval
iff®, the service you render
your Nation in this perilous
period goes beyond the quantity
and quality of the work you do
in supporting the United States
Fleet.

You have set an

inspiring example for all

i

ironclad warships.

Momentous

events that have occurred here
and hereabouts are too numerous
to mention.

It suffices to

recall that in every crucial
period of our past, from our
earliest colonial times through
two world wars, the people of
this area have played an
outstanding and influential role
That is equally true today.
At no other time in our

The
Joh n

fo llo w in g
W.

N o rfo lk
fo r

Snyder
N aval

d eliv ery

O ctober

address

27,

at

a

by

D efen se

Sh ip y ard ,
at

12

1952,

Secretary

N o rfo lk ,

o*clock
and

is

Bonds

noon,

for

of

the

T reasury

Cerem ony

in

V a.,

is

EST,

M onday,

rele ase

at

sch ed u led

th at

tim e/

T R E A S U R Y DE P A R T M E N T
Wa s h i n g t o n

The f o llowing address by Secretary
of the Treasury John W. Snyder at
a Defense Bonds Cer e m o n y in N o r f o l k
Naval Shipyard, Norfolk, Virginia,
is scheduled for d e l i v e r y _at
12 o ’clock noon, EST, M onday,
October 27s 1952, and is for 'release
at that time.

It is a v ery h a p p y experience for me to m eet w i t h y o u here
this morning at this great N o r f o l k Naval Base.
This is an insp i r i n
place. No other local i t y in our N a t i o n has a richer t r a d i t i o n of
American enterprise and achievement.
This area is a focal p oint of our history.
The first English
settlement in the N e w World was e s t a b l i s h e d at n e a r b y J a m e stown
3^5 years ago.^ At n e arby Y o r k t o w n the Amer i c a n colonies 171 years
ago won their independence.
In the n e a r b y waters of H a m p t o n Roads
the concept of sea p o w e r was rev o l u t i o n i z e d 90 years ago in the
first engagement of ironclad warships.
Mom e n t o u s events that have
occurred here and here a b o u t s are too n umerous to mention.
It
suffices to recall that In every crucial p e r i o d of our past, from
our earliest colonial times through two w o rld wars, the
ìopie ox
this area have p l a y e d an o u t s tan d i n g and influential rol
That
is equally true today.
At no other time in our h i s t o r y has government "by the consent
of the governed", and the p r i n c i p l e s of l i b e r t y and justice
enunciated^by such Virgi n i a n s as George Mason, P a t r i c k Henry,
Thomas Jefferson and W o o d r o w Wilson, b e e n in grea t e r peril than
they are today.
The Godless p h i l o s o p h y of the Communist
conspiracy against h u m a n f r e e d o m has f orced us to r e a r m and meet
ruthless aggre ssion w i t h m i l i t a r y force.
Today, as in our
struggles In our past, the m i l i t a r y i n stallations of N o r f o l k f orm
a strong bastion f o r our d e f e n s e .

S-3209

I am here this m o r n i n g to c o ngratulate the p e r s o n n e l of the
Fifth Naval District., e s p e c i a l l y the e m p l oyees of the naval
commands in the N o r f o l k area., for y o u r leadership in our defense
effort. Here at this great shipyard., and at the supply center,
the air station, the a m m u n i t i o n depot, the a m p h i b i o u s base and
the other a c t ivities w h i c h comprise the N o r f o l k Naval Base, the
service y o u render y o u r N a t i o n in this p e r i l o u s p e r i o d goes b e y o n d
the quantity and quality of the w o r k y o u do in s u pporting the
United States Fleet.
Y o u have set an i n s p i r i n g example f o r all
American citizens in the p e r s o n a l confidence y o u evidence in our
Government and in y o u r future.
It is obvious that y o u have a v e r y clear u n d e r s t a n d i n g of the
fact that our m i l i t a r y p o w e r to d e f e n d h u m a n f r e e d o m is d e r ived
from our economic strength and stability.
As a nation, we have
the will and the d e t e r m i n a t i o n to p r e s e r v e the . f r e e w o r l d against
the most; insidious force that ever sought the ensla v e m e n t of
mankind, but y o u are well aware that our n ational a b i l i t y to
defend is created t h r o u g h no oth e r source than the enterprise, the
industry, the productivity, and the thrift of our individual
citizens.
Y o u have a c c e p t e d your, p e r s o n a l r e s p o n s i b i l i t y as a
participating citizen, d e t e r m i n e d to do e v e r y t h i n g w i t h i n your
power to help keep oui^ c o u ntry strong and free.
That is w h y y o u have attai n e d y o u r o u t s t a n d i n g re c o r d in
supporting the United States Defense Bon d s Program.
I am a d v i s e d
that the Navy Department leads all g o v e r n m e n t a g e n c i e s w i t h 73.1
percent of all its c i v i l i a n employees k e e p i n g p a r t of their p a y
in Defense Bonds t h r o u g h the aut o matic Payroll Savings Plan.
This
is a magnificent record.
But 84.9 p e r c e n t of all em p l o y e e s in
the Fifth Naval District are p a y r o l l savers.
Y o u r d istrict leads
all naval d i stricts w i t h i n the c o n t inental limits, a p r o u d
position gained d u ring the m o n t h of September.
I have not e d that
’there are 3 7 .,227 payroll savers a m o n g F i f t h Naval District
employees and 33.?647 of t h e m are e m p l o y e d in the N o r f o l k area.

_

A primary factor in the Navy recor’
d and the Fifth Naval
strict leadership in this patriotic and p e r s o n a l l y beneficial
program is the remarkable p a r t i c i p a t i o n of the N o r f o l k Naval
ipyard. With more than 1 5 ^ 0 0 0 workers, the N o r f o l k shipyard has
maintained more than 99 p e r cent p a r t i c i p a t i o n in the Payroll
avings Plan since M a y of 1949.
During that p e r i o d the average of
individuai savings has increased from $ 2 7 . 4 7 to $ 3 0 . 5 0 a month.
e Norfolk shipyard is first in this p r o g r a m amo n g the e l e v e n
f l R f >,shipyards, w h i c h have avera g e 95 p e r c e n t p a r t i c i p a t i o n for
e las-c five months.
No other group of i n dustrial w o r k e r s in
QT'ioa. has equalled that pers o n a l thrift record.

709
- Jo It seems to me that the impor t a n c e of h i g h p a r t i c i p a t i o n in
the Payroll Savings Plan cannot be over-emphasized.
Since the
outbreak of hos t i l i t i e s in K orea in June 1 9 5 0 , employees of thé
Fifth Naval District have investe d m o r e than $ 2 5 , 3 0 0 , 0 0 0 f r o m
their pay in United States Defense Bonds, and for the last six
months these p a y roll savings have a v e r a g e d more t han one m i l l i o n
dollars a month.
You have m a i n t a i n e d a p e r s o n a l thrift r ecord in the finest
American tradition.
Thrift has played, and m ust continue to
play, a dominant role in the building, of our Nation.
W h e n we
assess the gains that have b e e n ours f r o m the p r o d u c t i v e use of
our savings, we are often apt to t h i n k in terms of dollar’s
invested and do llars returned, w h e t h e r in the f o r m o f . i nterest on
the investment *or in the b r o a d e r sense of the i n c r eased national
income which it has generated.
But our gains f r o m savings and
investment have not b e e n simply d o l l a r gains.
We w o u l d compre h e n d
them better if we thought of these gains as they exist in the f o r m
of useful things -- such things as the b e t t e r homes in w h i c h we
live, the more nutritious food we eat, the h i g h e r q u a l i t y c l othing
we wear, the fine a u t o mobiles we drive, the a d v a n c e d educational
opportunities for our children, the i n c r eased m e d i c a l aids which,
assure sounder health, and the added rec r e a t i o n a l and e n t e r t a i n m e nt
facilities we enjoy.
A most vital gain, of course, has b e e n the
improved equipment w i t h w h i c h we work, w h i c h has, in turn, enabled
us to produce these things more e a s i l y and in g r e a t e r abundance.
We can indeed take p r ide in our p a s t a c c o m p l i s h m e n t s and the
role that savings and investment have p l a y e d in our national
progress.
But our pride is justifiable o nly so long as p a s t is
prologue, and our past acco m p l i s h m e n t s will be but a p r e l u d e to
the future that can be ours if we r e c o gnize the sources of our
strength and have the v i s i o n to carry them forward.
You may recall that there were some who felt that America had
reached its zenith in p r o d u c t i v e p o w e r d u r i n g World War II, and
that the very most we could p o s s i b l y hope for was to m a i n t a i n that
peak after various wartime industries had c o n v erted to p e a c e t i m e
production.
There were still others who felt that we could not
even hope to m a i n t a i n the peakj they even felt we should be cutting
down, production in order to shelter ourselves as m u c h as p o s s i b l e
from the severe effects of a d e p r e s s i o n w h i c h was sure to f o l l o w on
the heels of a h i ghly expanded wartime economy.

71Q
- 4 Those'who reckoned that America m u s t go b a c k w a r d instead of
forward did not take into account the will and d e t e r m i n a t i o n of
a people who k n e w that what they h a d a c c o m p l i s h e d in w a r t i m e was
but a stepping stone to what they could, do w h e n t hey had the
opportunity to direct their energies t oward p e a c e t i m e building.
Faith in our future p o t e n t i a l i t i e s is one of the strongest traits
of our American c h a r a c t e r * and I t h i n k no f i n e r e x p r e s s i o n of this
faith can be found t han in the record e x p a n s i o n p r o g r a m that
business and indus t r y has carried out in recent years.
Private busin e s s went ahead in the po3tivar p e r i o d and up to
the time of the K o r e a n invas i o n had., b y its own financing.,
invested near l y $100 b i l l i o n in n e w p l a n t and equipment -- a far
greater investment than in a n y other c o mparable p e r i o d in our
history.
Since Korea., A m e r i c a n i n d u s t r y has inv e s t e d a n o t h e r
$65 billion in n e w plant and equipment.
This re c o r d e x p a n s i o n has
brought in its wake n e w p r o d u c t i o n p e a k s in p r a c t i c a l l y all of our
major industries* and the n e w techn i q u e s and m e t h o d s of p r o d u c t i o n
which are b eing p u t into effect e ach y e a r are c o n s t a n t l y a d d i n g to
our N a t i o n ’s productivity.
Similar e x p r essions of f a ith in A m e r i c a ’s fixture are to be
found in the d aily lives of m i l l i o n s of our p e o p l e as t hey invest
their savings to s t r engthen our economy.
D u r i n g Wor l d W a r II* due
to shortages of many goods and services* our p eople were u r g e d to
save* and they did save in u n p r e c e d e n t e d amounts.
At the close
of World War II* t hey h eld close to $200 b i l l i o n in liquid savings.
These savings not only h e lped stabilize our e c o n o m y d u r i n g the
war-years* but were a m a j o r f a ctor in s u staining h i g h levels of
business activity in the p o s t w a r y e a r s . W i t h this huge r e s e r v o i r
of savings b a c k of them* our peopl e had the courage to spend
fre e ly from their current incomes for the n e w goods and services
which industry and busin e s s were t u r n i n g out in i n c r e a s i n g amounts.

A t .the same time p u r p e o p l e have con t i n u e d to b u i l d the i r
financial reserves.
Since the close of 1945* indi v i d u a l s have
increased their ownership of Unit e d States Savings B o n d s b y

percent.
Savings accounts in commercial banks* mutual savings*
postal savings* and savings and loan associations show a total
gain of |£4 percent* and individual investment in life insurance
has increased by 55 percent since 1945. The w i d e spread practice
01 thrift continues to be one of the great bulwarks to a dynamic
American economy.

711
- 5 -

Continuance of the type of A m e rican thrift y o u practice here
in the Fifth Naval District is our best assurance that t o d a y ’
s
dreams for p eace and p r o s p e r i t y will be t o m o r r o w ’
s realities.
The
conspirators in the K r e m l i n will be foiled, as all tyrannies have
been foiled in the past, because they fail to understand the
dynamics of our free enterprise system in wh i c h workers hold the
rewards of their own efforts and accumulate the capital that opens
vast new economic frontiers for our Nation and brings vast new
opportunities for our people.
S in c e the inception of the Payroll Savings Plan ten years ago,
the Treasury Department has recognized 90 percent p a r t i c i p a t i o n as
the h ig h e st standard of excellence. Minute M a n flags are
presented as honor awards for that achievement.
Four commands in
the F i f t h Naval District are eligible to fly the Minute Man flag.
In addition to the N o r f o l k Naval Shipyard, w h i c h w o n the first
flag presented after World War II in October 1947, the Norfolk
Supply Center w o n its flag in August 1950 and now has 97 p e r cent
of its 7^418 employees enrolled as payroll savers.
Now, in r ecognition of outstanding achievement in the
United States Savings Bonds Program, I have m y first opportunity
to p r e se n t Minute M a n flags to two Navy commands.
First, for
enrollment of 92.7 percent of 1,018 employees In the Payroll
Savings P la n , I present this Minute M a n flag to the Commanding
O fficer of the U. S . Naval A m m u nition Depot, St. J u l i e n ’
s Creek,
V irgin ia -- Commander W. C. Taylor,
Congratulations, Commander,
to you and to all your personnel.
(Commander Taylor accepts)
Next, for enrollment of 93 percent of 1 , 3 8 0 employees,
i Present this Minute Man flag to the Commanding Officer of the
r n Na^ 1 AmP ^ i o u s Base, Little Creek, Virginia -- Captain
w 0 . Hoffner. My heartiest congratulations, Captain, to you and
your personnel.
(Captain Hoffner accepts)

6
The Naval Supply Center, Norfolk, p r o u d l y flies its M inute
Han flag but has continued to increase its support of the Defense
Bonds Program.
In r e c o g n i t i o n of the o u t s t a n d i n g achi e v e m e n t of
these employees w i t h 97 p e r c e n t p a r t i c i p a t i o n in the Payroll
Savings Plan, I a m h a p p y now to p r e s e n t a special h o n o r award
plaque to the Commanding Officer of the N o r f o l k Naval Supply
Center
Rear Admiral John W. Wood.
(Admiral Wood accepts)
Now, in r e c o g n i t i o n of the long leadership of the w o r k e r s of
the Norfolk Naval Shipyard in the B o n d Program and e n rollment of
99.8 percent of 15^ 333 employees, I have the p l e a s u r e of p r e s e n t i n g
this special h onor a ward to the C o m mander of the N o r f o l k Naval
Shipyard, Rear Admiral David H. Clark.
(Admiral Clark accepts)
It is a m a t t e r of k e e n regret to me that the Commandant of
¡the Fifth Naval District, Rear Admiral R a l p h 0. Davis, is
hospitalized and unable to be here in p e r s o n today.
For him, in
recognition of the leadership of the F i f t h Naval D i strict a m o n g
|continental naval districts, I have the p l e a s u r e of p r e s e n t i n g this
award to the Acting Commandant and Commander of the N o r f o l k Naval
Base ~~ Rear Admiral T r B. Brittain.
(Admiral B r i t t a i n accepts)

oOo

release

n

im sp m B s,

T u e s d a y , O c to b e r

3 ¿2 / (

v

28, 1952«

T h e S e c r e t a r y o f t h e T r e a s u r y an n o u n c e d l a s t e v e n in g t h a t t h e t e n d e r s fe ar
$ 1 ,5 0 0 ,0 0 0 ,0 0 0 ,

car

t h e r e a b o u t s , o f 9 1 - d a y T r e a s u r y b i l l s t o b e d a t e d O c to b e r 3 0 , 1 9 5 2 ,

a n d t o m a tu re Ja n u a r y 2 9 , 1953, w h ic h w e re o f f e r e d o n O c to b e r 2 3 , w e re o p e n e d a t th e
F e d e r a l R e se r v e B a n k s o n O c to b e r 2 ? «
The d e t a i l s o f t h i s is s u e a r e a s fo llo w s f

T o tal applied fo r - $ 2 ,3 2 ? ,3 !il,0 0 0
T o t a l a c c e p te d

-

A v e rag e p r ic e

-

1,501,296,000

( in c lu d e s |2 l5 ,U 7 ,0 0 0 e n t e r e d on a
n o n - c o m p e t it iv e b a s i s a n d a c c e p t e d i n
f u l l a t t h e a v e r a g e p r i c e show n b e lo w )
99*556 E q u iv a le n t r a t e o f d is c o u n t a p p r o x . 1.75W P© r an n u a

H an g s o f a c c e p t e d c o m p e t it iv e b id e s
-

High

9 9 .5 8 0 E q u iv a le n t r a t e o f d is c o u n t a p p r o x .

~ 99.55b

Low

"

«

«

«

»

1 * 6 6 2 $

p e r annum

1*761$ ”

(9 2 p e r c e n t of t h e am o u n t b i d f o r a t t h e lo w p r i c e w a s a c c e p t e d )

F e d e r a l R e se rv e
D is tr ic t
B o s to n
New Y o rk
P h ila d e lp h ia
C le v e la n d
R ich m ond
A t la n ta
C h ic a g o
S t . L o u is
M in n e a p o lis
K a n sa s C i t y
D a lla s
S a n F r a n c is c o

tau x

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

T o ta l
A c c e p te d

•

$

25,271.000
1,526,31*6,000
30,238,000
72,590,000
52,609,000
3U,396,000
301,512,000
50,393,000
11,170,000
59,031,000
6l,733,ooo
102,002,000

* 2, 327, 31a , 000

19,191,000
850,533,000
lit,288,000
63,859»000
50,1*89,000
29,756,000
255,892,000
30,597,000
11,170,000
52,951,000
L 5 , o5 i , ooû
77,5111,000

11,501,296,000

*

7]
RELEASE M O R N ING NEWSPAPERS,
Tuesday, O c t o b e r 2 8 , 1 9 5 2 ,

S-3210

The S e c r e t a r y of the Trea s u r y a n n o u n c e d last even i n g that the
tenders for $1,500,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be dated October5 30, 1952, and to ma t u r e J a n uary 29* 1953, w h i c h
were offered on October 23, were ope n e d at the Federal Reserve
Banks on October 27.
The details of this issue are as follows:
Total applied for
Total a ccepted

Average price

$2,3 2 7 , 3 4 1 , 0 0 0
1 ,5 0 1 ,2 9 6 ,0 0 0

(includes $ 2 1 5 , 4 1 7 , 0 0 0
e n t ered on a n o n - c o m p e t i ti v e
basis and a c c e p t e d in full
at the average pri c e shown
below)
99.556 Equiv a l e n t rate of d i scount approx.
1 .7 5 7 $ pe r ann u m

Range of accep t e d competitive bids:
High

- 99.530 E q u i v a l e n t rate
1 .662$
- 99.554 Eq u i v a l e n t rate
1.764$

Low

of d i scount ap p r o x
per annum
of d i s c o u n t ap p r o x
per annum

(9 2 p e r c e n t of the amount bid for at the low pri c e was accepted)
Federal Reserve
District
Boston
New Y o r k
Philadelphia
Cleveland
Richmond ■
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Deilias
San Francisco

Total
Applied for
$

TOTAL

2 5 ,2 7 1 ,0 0 0 .
1 ,5 2 6 ,3 4 6 ,0 0 0
3 0 ,28 8,0 0 0
72,590,000
5 2 ,60 9,0 0 0
34,396,000
3 0 1 ,5 1 2 ,0 0 0
50,393,000
1 1 ,17 0 ,0 0 0
59,031,000
61,733^000
1 0 2 ,0 02,000

$ 2 , 3 2 7 , 3 4 1 , 00 0
0 O0

Total
A ccepted
$

19 , 1 9 1 , 0 0 0
8 5 0 ,5 3 8 ,0 0 0
14 , 2 8 8 , 0 0 0
6 3 ,8 5 9 ,0 0 0
50,489,000
2 9 ,7*5 6 ,0 0 0
2 5 5 ,8 9 2 ,0 0 0
3 0 ,5 9 7 ,0 0 0
1 1 ,1 7 0 ,0 0 0
5 2 ,9 5 1 ,0 0 0
4 5 ,0 5 1,0 0 0
77,514,000

$1 ,5 0 1 ,2 9 6 ,0 0 0

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 1;2 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section ll£ 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.
T reasu ry Department C ir c u la r No. I|l8 , a s amended, and t h i s n o tic e ,
p r e s c r ib e th e term s o f th e T reasu ry b i l l s and govern the c o n d itio n s o f
th e ir is s u e .

Copies o f the c i r c u l a r may be o b tain ed from any F e d e ra l

R eserve Bank o r Branch.

-

2

-

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 $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

y»wihflr6. 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.

November 6. 1932

Sx

Cash adjustments

will be made for differences between the par value of maturing bills
accepted in exchange and the iss^ue 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

I

raxm xx
m m
treììgQ
rydej

^

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, October 30, 1952
£ £ ..

.5-

The Secretary of the Treasury, by this public notice, invites tenders
for $ 1.300.000,000 , or thereabouts, of
91 -day Treasury bills, for
— W c —
^
m
’
cash and in exchange for Treasury bills maturing November^ ^ 1952
» in
the amount of $ 1.300.lift.OOP , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.

The bills

of this series will be dated
•Feh-rnfl-ny
terest.

19^3

November 6, 1952
j an<i will mature
--------- m
x~ zj—
, when the face amount will be payable without in-

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

Si,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, November 3> 195%«
jtxfcÀ ~
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 DEPARTMEN T
Information Service

EELEASE MORNING n e s s p i p e r s ,
Thursday, October 3Ö, 1952

WASHINGTON, D .C .

S-3211

The Secretary of the Treasury, by this public notice, invites tenders
for 11,300,000,000, or thereabouts, of 91-day Treasury bills, for cash
and in exchange for Treasury bills maturing November 6, 1952, in the
amount of 11,300,141,000, to be issued on a discount basis under competitive
and non—competitive bidding as hereinafter provided# The bills of this
series will be dated November 6, 1952, and will mature February 5, 1953,
when the face amount will be payable without interest# They will be issued
in bearer form only, and in denominations of |l,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 Tclock p#m#, Eastern Standard time, Monday,
November 3, 1952. Tenders will not be received at the Treasury Department,
Washington# E'ach tender must be for an even multiple of $1,000, and in
the case of competitive tenders the price offered must be expressed on the
basis of 100, with not more than three decimals, e# g#, 99.925# Fractions
may not be used. It is urged that tenders be made on the printed forms
and forwarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account# Tenders will be received without
deposit from incorporated banks and trust companies and from responsible ;
and 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 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

2

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 November 6, 1952, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing November 6, 1952#
Cash and exchange tenders will receive equal treatment# Cash adjustments
will be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new 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# 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# 418, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve
Bank or Branch#

oOo

P t

the Revenue service

II

ft
yK $3
v if*

the

design for

ciency
of trus tworthy
the Reorg
full public

will prove

aced

a etu re

ion of v a r i o u s
business
of

tructure

Government
to

OPT"
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e jss

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or ietor

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«■X fc o §

excises
and

.
w.>. ft
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other items, the taxes on the gain
list of other levies.
dition to collecting am
4» fc

ff

ml

r"'&W W' §

s, investigates a large numbe
t ¡em in detail,

bi

on overpayments

into

t is still not tfi%
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uc

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It

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s in taxes

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«•*

it ional

permits for distillers
$$tHf"***

fit
SKS

- 3 »

AlIlk a,forra a region wh ich for purposes of
Interinai Revenue Service administration win
be known hereafter as the Seattle District,
» The act ion which we are taking to
reorganize the Revenue Service embodies one
of the most progressive steps in
government in the history of this country.
As you know, the Reorganization Plan now
being placed in effect received a few
months ago the overwhelming approval of the
Congress.

Your support of it,

a s

indicated

by your presence here this morning,

is

gratifying to all who have had a hand in
making this action possible,
-Tire

f—
r<

ceeretjfry ^nyaer

On behalf of the Treasury Department,
) want to welcome all of you warmly to thea
proceedings, the purpose of which is to
institute for the States of Washington,
Oregon, Montana and Idaho, and the Territorj
of Alaska, a basic improvement in the
organization and methods of the Bureau of

and the Territory 4

FOR RELEASE 10:00 a.m.PST(l:00 p.m.EST),
Friday, October 31, 1952.______________

Seattle, Washtogten, October 31 — Under Secretary
of the Treasury E. H. Foley said today, in opening
ceremonies at the Health and Science Auditorium of the
University of Washington for the installation of
officials of the reorganized Internal Revenue Service
for Washington, Oregon, Idaho, Montana and the Territory
of Alaska:

FOR RELEASE 1 0 : 0 0 a ,m . PST ( 1 : 0 0 p .m . E S T ) ,
Fr i d a y , O c to b e r 31., 1 9 $ 2 , ___________

S-3212

S e a t t l e , W ash «, O c to b e r 3 1 — U n der S e c r e t a r y o f t h e T r e a s u r y
E . H. F o l e y s a i d t o d a y , i n o p e n in g c e r e m o n ie s a t t h e H e a lt h a n d S c i e n c e
A u d ito r iu m o f t h e U n i v e r s i t y o f W a sh in g to n f o r th e i n s t a l l a t i o n o f
o f f i c i a l s o f t h e r e o r g a n i z e d I n t e r n a l R ev en u e S e r v i c e f o r W a s h in g to n ,
O regon , I d a h o , M on tan a a n d t h e T e r r i t o r y o f A l a s k a :
11On b e h a l f o f t h e T r e a s u r y D e p a r tm e n t, I w an t t o w elcom e a l l o f y o u
warm ly t o t h e s e p r o c e e d i n g s , t h e p u r p o s e o f w h ic h i s t o i n s t i t u t e f o r t h e
S t a t e s o f W a sh in g to n , O re g o n , M on tan a a n d I d a h o , a n d t h e T e r r i t o r y o f
A la s k a , a b a s i c im p ro v e m e n t i n t h e o r g a n i z a t i o n a n d m e th o d s o f t h e B u r e a u
o f I n te r n a l R evenue•
“ T h e se f o u r S t a t e s , a n d t h e T e r r i t o r y o f A l a s k a , fo r m a r e g i o n w h ic h
f o r p u r p o s e s o f I n t e r n a l R ev en u e S e r v i c e a d m i n i s t r a t i o n w i l l b e known h e r e ­
a f t e r a s th e S e a t t l e D i s t r i c t ,
"T h e a c t i o n w h ic h w e ''a r e t a k i n g t o r e o r g a n i z e t h e R ev en u e S e r v i c e
em b o d ies on e o f t h e m o st p r o g r e s s i v e s t e p s i n g o o d g o v e rn m e n t i n t h e h i s t o r y
o f t h i s c o u n tr y t, A s y o u know , t h e R e o r g a n i z a t i o n P la n now b e i n g p l a c e d i n
e f f e c t r e c e i v e d a fe w m on th s a g o th e o v e rw h e lm in g a p p r o v a l o f t h e C o n g r e s s ,
lo u r s u p p o r t o f i t , a s i n d i c a t e d b y y o u r p r e s e n c e h e r e t h i s m o r n in g , i s
g r a t i f y i n g t o a l l who h a v e h a d a h an d i n m ak in g t h i s a c t i o n p o s s i b l e ,
u The m anner i n w h ic h t h e B u r e a u o f I n t e r n a l R ev en u e f u n c t i o n s i s o f
d ir e c t co n cern to e v e ry ta x p a y e r .
I t s a c t i v i t i e s a f f e c t th e w e lfa r e o f
the t a x o a y e r ’ s g o v e rn m e n t a s w e l l a s t h e f i n a n c i a l a f f a i r s o f t h e t a x p a y e r
h im s e lfo
T h e r e f o r e , i t i s v e r y much t o t h e t a x p a y e r ’ s i n t e r e s t t h a t we a r e
now i n a u g u r a t i n g a new a n d b e t t e r m anner o f a d m i n i s t e r i n g t h e R ev en u e
B u reau ’ s r e s p o n s i b i l i t i e s ,
"T h e d u t i e s o f t h e B u r e a u i n v o l v e n o t o n ly r e c e i v i n g a n d p r o c e s s i n g
the t a x r e p o r t s o f t e n s o f m i l l i o n s o f A m e r ic a n s e a c h y e a r , b u t a l s o t h e
h a n d lin g o f t a x r e t u r n s fr o m p r o p r i e t o r s h i p s a n d c o r p o r a t i o n s , e x c e s s
p r o f i t s t a x e s , t h e e x c i s e s on c i g a r e t t e s a n d l i q u o r a n d j e w e l r y a n d many
o th e r i t e m s , t h e t a x e s on t h e g a i n s o f g a m b l e r s , a n d a l o n g l i s t o f o t h e r
le v ie s .

729
-

2

-

nIn a d d it io n t o c o l l e c t i n g an d r e c o r d in g t h e s e t a x e s , th e B u reau
c h e c k s t h e a c c u r a c y o f r e t u r n s , i n v e s t i g a t e s a l a r g e num ber o f them i n
d e t a i l , c o l l e c t s b i l l i o n s i n t a x e s n o t v o l u n t a r i l y r e p o r t e d a n d m ak es
r e f u n d s on o v e r p a y m e n ts r u n n in g i n t o b i l l i o n s .
,fT h a t i s s t i l l n o t t h e l a s t o f th e B u r e a u * s d u t i e s .
I t h as a d d itio n a l
t a s k s su c h a s i s s u i n g p e r m it s f o r d i s t i l l e r s an d th e m a n u fa c tu re o f f i r e arm s, a n d th e s u p e r v i s i o n o f v a r i o u s a n g l e s o f t h e a l c o h o l i c b e v e r a g e
b u sin e ss.
" I t i s t h e l a r g e s t b u r e a u o f t h e T r e a s u r y D e p a r tm e n t, a n d on e o f t h e
l a r g e s t i n t h e e n t i r e G o v e rn m e n t,
"W hat ^we a r e t o do h e r e t o d a y i s b r i n g up t o d a t e t h e s t r u c t u r e a n d ’
th e o p e r a t i n g p r o c e d u r e s o f t h i s v e r y v i t a l arm o f t h e G o v e rn m e n t*
" I w ant to e x p r e s s to th e p e o p le o f th e f o u r S t a t e s an d th e T e r r i t o r y
of A la s k a , c o m p r isin g th e S e a t t l e D i s t r i c t , an d to t h e i r l o c a l o f f i c i a l s ,
our a p p r e c i a t i o n o f y o u r h o s p i t a l i t y a n d o f t h e c o o p e r a t i o n w h ic h we h a v e
had i n a r r a n g i n g f o r t h i s c e r e m o n y ,
"We h â v e h a d s i m i l a r c o o p e r a t i o n i n e v e r y l o c a l i t y w h ere t h e s e
i n s t a l l a t i o n s h ave ta k e n p l a c e .
T h is s i g n i f i e s t o me t h a t t h e im p r o v e d
p r o c e d u r e s , t h e ' fo r w a r d - lo o k in g p e r s o n n e l p o l i c y , th e ad v a n c e d d e s ig n f o r
o p e r a tin g e f f i c i e n c y , an d th e ’b u i l t - i n 1 a s s u r a n c e s o f t r u s t w o r t h y p e r fo r m ­
ance w h ich t h e R e o r g a n i z a t i o n P la n p r o v i d e s h a v e won f u l l p u b l i c c o n f i d e n c e .
" I t i s my f i r m b e l i e f t h a t t h i s p u b l i c c o n f i d e n c e w i l l p r o v e w e l l
p l a c e d ."
U n der S e c r e t a r y F o l e y in t r o d u c e d S e c r e t a r y S n y d e r a s th e c h i e f
s p e a k e r , ^He r e f e r r e d t o S e c r e t a r y S n y d e r a s " t h e man who m o t i v a t e d r e ­
o r g a n i z a t i o n o f t h e R ev en u e S e r v i c e fr o m th e v e r y s t a r t , a n d w h ose g u id a n c e
i n s p i r a t i o n a n d f i r m r e s o l v e saw i t t h r o u g h t o a c c o m p l is h m e n t ,"

0O 0

■**

4 y

4;

lllil Ili those lili ôr to he
1 1 1 t h r o u g h o u t the Nation,

* §il fat to give the ä «§« lean
people « Revenue Servio« of

w

than humanity's destruction,
within its border® are vaet
potentialities tor future growth
in almost every line of industry
and trade.
H a most significant factor
in assuring industrial expansion
j| the recent discovery of large
petroleum and gas reserves in
western Canada which will make
it possible to bring a large
supply of natural gas and

port

productive rauscle®
is tr#«©«aous

fpt|r aspL

«avena®, S i r t c t o r

©f Internai Revtnua, and other
supervisory poste.

f am

confident that | l r eelectione
f or thè off i ©§ of 0 1 atr i et
Corami ss toner boro in S e i t t l e
and

thè offices of Otrsctor

of Internal

Revonuo in

S e a t t l e , Portland, Melane,
ariti Sai te, « i l i metiwre np
il

«¥«ry e x p e c t a t ion.

public t r u s t .

Tilt work of

Con sf * s a i onal s ñ¥ « at * :s %1y #
U raui
i

f h a s 1 a d,w ans « iA 1

continu# ta have, our full
0 a;
nJ^ &'*r t t son.
^

In p ii e iftI t i a lîeor y a f«1 z 1

y1 ari sn offset, wi n Iva ?#«ct§
11

our olí jact i v» that only the

» o 't ö »p® li1« parsons a v a i ia.b 1#

would bo named to the position
hf

o i*triot Cown iss ionar of

«stfti&ll'ftsië an indépendant
Inspect ion .Ssrvic», under tha
direction of another Assistant
Ûomm i s fi i orî#r, which *111

«a i n t a in a constant chick on
employee conduct l o i watch
other Revenu« 3#rv»e«
a c t i v i t j o s as w e l l .
'

The

Treasury and

Revenue Sureau

have

the

taken

posit ive i t tps tu eliminate,
f r o m the

Service

those employees

fefel:9#

i i

A «

I (8 f

iet

C o m m i t s
A #■ ■
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11 j

f u l l l ient of available manpower
is applied to the t i

wA. %
Vi£5I
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ni problem,

streamlining the Revenue
L—
-

Bureau’ s operations, we have
provided for improved supervision
rfi'-i- s&'i

ll iff

Ü

I be]

€C

to which

eliminate the /ten
some
the pa s t .

have succumbed
There

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if*

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ifgì?
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ri I

m

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fi i n

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3

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ie io
n

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li II w

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y in the four

O r t o e fi, tóo n t a n a
«r

i s r< ir triiA

tod posts of duty.

are

supervision and

na

r$presentativ|s

stationed thr at.

I

the four states of this
ere is being established

R e v e n u e

these offices

its provisions is
to ill i

IR a t ©

career
If f ¥ ICli ,

in the

s e r v i c e ,

XO90t IQ

i

0 I

he

ill

ir* ■ \ fei 1 11 rtoroani iat I'tm
plan has boon put »nta -«ffa c t .
addition, wet have extensively
t.e ijr§ aip|zod tha headquarters
of the Surety of Internal
Revenusin Washington,

f# shall

proceed with-reorganisation in

If %*

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jpt
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4

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a factor
a 1 1 n t .

an

could not be closed
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31

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u

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r »

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so tim
W 4#

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■

-m ,

the

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w

*

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^P'

tax returns of all kinds
annually, and ¡n the 1»test
fiscal y«ftf its collections
reached the record s u p of
$65 billion.
That, in hriif, is
the historical background
against which roorgamzation
of the Revenue Service is
being effected.

civilian Miplsyiitri't as the
j;

strength of the Armed forces
ci«cl inod. Hero machinery
beeiffit available with the
reduction in the demands

\

for military equipment.
It was then that the work.of
modernising the Bureau of
Internal Revenue was started

sharply tnoreaied rate« on these
taxes already In existence.
\\

Collection

,
,
t-niss

were

drastically changed by the
i n s t a l l â t ion of the income
fax withholding system.

Still

another complication was
ti ô fact that the rapid rise
in wartime incomes fostered
tax evasions that had to bo
discovered and rectified.

ovtrw
döman

nt y tir

- i.o
tremendous
\Ji -i,r

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Ä:

severa! yo art o

in •:y ns iv© ••■;ork . and th 0 f m a i
drafting of the plan » as not
completes! until a f tur a long
IÙ1

iu s sI preparatory et #¡¡f

atí been t»k
The § I ¡ss
soots

Of

-VrâK

from the Intoroai Revenue

.ìrvice, and improvements 1 n 1

■-#«§ accurate

per so
snsact

1 1 n- ® 1?

protacti
tfis 6ovcirnmant
of unqytsts

tH#

lyrtsii.
sa goal«
will fe# rttliisd.
*

Th® preparation of th&
ion

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r e t u r n s t i i#d i fi t h è $«setti«
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for fise*»! 13o2 «wouiitini# to
&PdUt Si.o fei ili on.

éii this.

underbcore® thè i»portane.« .Qf
oiir ij&theri 09 here 1 0 3 &y to .
br iny to you, under thè stuthori fy

té our country's rsvsnus ifit#«*
12
In thè i || fìsca! ysar tfiìu
istriet «fobraosd a popuiation
cf a little lisi ih* b 4 miiiion
inoi vi duali) *ho f11 rf about
260,uuO incoi»# tax rattiras *
A decade la ter th# popuiati un
had Ilìfjrtttti by over one-thi'rd
to | total st S>| ttiiiion, and
by fistiai la,.:?> th# siliai §r ©f
individuai inco©# tax rtturns
f il«d had tncr easod almost

%p

RELEASE 10:00 a.m.PST(l:00 p.m.EST)
Friday, October 31, 1952___________
Seattle, Wash., October 31 — Secretary of the
Treasury John W. Snyder, speaking at ceremonies in the
Health and Science Auditorium of the University of
Washington for the installation of officials of the
reorganized Internal Revenue Service for Washington,
Oregon, Idaho, Montana and the Territory of Alaska,
said today;

771Í

TR EASUR Y DEPARTMENT
Information Service

RELEASE 10:00 a.m.PST(l:00 p.m.EST)
Friday, October 31, 195>2________

WASHINGTON, D.

S-3213

Seattle, Wash., October 31 — Secretary of the Treasury John W.
Snyder, speaking at ceremonies in the Health and Science Auditorium of the
University of Washington for the installation of officials of the reorgan­
ized Internal Revenue Service for Washington, Oregon, Idaho, Montana and
the Territory of Alaska, said today*
nI am delighted to be with you for these ceremonies which install a
revitalized Federal Revenue Service for the Pacific Northwest States of
Washington, Oregon, Montana and Idaho, and the Territory of Alaska.
Seattle, as you know, has been selected as the home of the principal head­
quarters for this district. It is fitting that this progressive city,
which has long served as the major trade and distribution center for the
Pacific Northwest, should constantly be enlarging the many ways in which
it serves this most progressive region.
"Each time I visit this invigorating and magnificent Northwest
country I am impressed anew with the vibrance of its economy, the enter­
prise of its citizens, and the great potential it holds for the future
progress of our Nation.
•'While the country as a whole has shown a three-fold increase in
income payments to individuals since 19i|0, the Pacific Northwest States
have done even better. The percentage gains in these States was 27 percent
greater than that for the Nation.
"As your'economy has expanded, so has its importance grown to our
country's revenue system.
"In the 19U0 fiscal year this district embraced a population of a
little less than U million individuals who filed about 250,000 income tax
returns. A decade later the population had increased by over one-third
to a total of 5.2 million, and by fiscal 1952 the number of individual
income tax returns filed had increased almost eight-fold to about 2 million.
"The total number of tax returns filed in the Seattle District for
the fiscal year I9U0 numbered about 650,000, as compared with 3.3 million
in fiscal 1 9 5 2 , with collections for fiscal 1952 amounting to about $1.5
billion. All this underscores the importance of our gathering here today
to bring to you, under the authority of the President's Reorganization

772
-

2

-

Plan No. 1 of 19i>2, a reorganized and modernized Internal Revenue Service.
Your presence indicates that you appreciate the importance of the pro­
gressive action which we are taking. Your presence is also an expression
of confidence that, through the operation of the plan, we shall bring to
the taxpayers a Revenue Service fully adequate to meet its increased
responsibilities and fully meriting the confidence of the public.
’
’
From the very beginning of the reorganization task I have had
enthusiastic cooperation — from the President, Under Secretary Foley, the
Treasury Staff, Commissioner Dunlap and his associates in the Revenue Bureau.
’
’
The Reorganization Plan is the product of earnest study and diligent
effort not only by administrative experts of the Treasury Department and
the Revenue Service itself but also by individuals and groups representing
the Congress, other Government agencies, business management firms, and
taxpayer organizations — in short, the composite of the most capable
consultants available.
"The goals of this action are a maximum of operating efficiency and
economy, fast, convenient, and accurate service to all persons transacting
business with the Bureau, scrupulous protection of the Government revenues,
and the maintenance of unquestioned integrity among the employees of the
Bureau. I have every confidence that these goals will be realized.
’
’
The preparation of the Reorganization Plan was a tremendous task,
and it was not accomplished overnight* The study given to the problem
covered several years of intensive work, and the final drafting of the plan
was not completed until after a long series of preparatory steps had been
taken.
’
’
The elimination of weak spots from the Internal Revenue Service, and
improvements in its operational methods, began at ny direction in 19U6,
soon after I became Secretary of the Treasury.
’
’
Our wartime experience in the Service had demonstrated the necessity
for such action. An organization which had worked fairly well in its
earlier years, when it collected comparatively modest amounts of taxes
from relatively few people, had been almost overwhelmed by the unprecedented
demands made on it in the World War II era. The Service suddenly had to
handle millions of returns from taxpayers who never before had been required
to pay Federal income taxes. It had to assume responsibility almost over­
night for the collection of new kinds of taxes, and the application of
sharply increased rates on those taxes already in existence*
’
’
Collection methods were drastically changed by the installation of
the income tax withholding system. Still another complication was the fact
that the rapid rise in wartime incomes fostered tax evasions that had to
be discovered and rectified*

”The inadequacy of the Revenue Service’
s equipment and methods was
plainly apparent, and the need for a thorough overhauling was conspicuous«
But temporarily, the problem had to be put aside* So long as the war
continued we had neither the time, the men, nor the machinery to accomplish
the necessary overhauling*
,fBy 19U6, the situation had changed* More men and women became
available for civilian employment as the strength of the Armed Forces
declined* More machinery became available with the reduction in the demands
for military equipment. It was then that the work of modernizing the Bureau
pf Internal Revenue was started*
"Even as we took the first steps, our rapid postwar reconversion,
with its attendant prosperity, added to the dimensions of the problem. The
period from 19U6 to 1952 saw a large increase in the number of income tax
returns, both individual and corporate, and tax collections increased
proportionately. Today the Bureau of Internal Revenue receives about 90
million tax returns of all kinds annually, and in the latest fiscal year
its collections reached the record sum of $65 billion*
’
’
That, in brief, is the historical background against which reorgan­
ization of the Revenue Service is being effected.
”In going about this task, we had to remember constantly that the
Bureau of Internal Revenue is not like a factory, or an assembly plant*.
It could not be closed doim for a week or a month while an old system was
abolished and a new system installed* The Bureau had to go right on
collecting the Nation’
s revenues and doing the rest of its huge daily job,
while making the changes called for in the plan*
’
’
This is the ninth area in which the reorganization plan has been
put into effect. In addition, we have extensively reorganized the head­
quarters of the Bureau of Internal Revenue in Washington* ¥e shall proceed
with reorganization in other districts, on a schedule which calls for
completion of the program by December 1st of this year.
’
’
Under the skillful direction of Commissioner of Internal Revenue*
John Bo Dunlap, and his associates, the transition is being accomplished
smoothly and without inconvenience to taxpayers*
’
’
Reorganization Plan No. 1 is not a complicated blueprint under­
standable only by experts* It i3 simple*
’
’
One of its provisions is to eliminate all non-career offices in the
Revenue Service, with the single exception of the Commissioner of Internal
Revenue* Every post in the service, with that one exception, will now be
filled by Civil Service appointees.

u

7

"Another important feature is the simplification and streamlining of
administrative authority, so as to eliminate complexities for the taxpayer
and improve methods of supervision*
"Here is how the Seattle District will be administered. In each of
the four states of this district there is being established an office of
Director of Internal Revenue. Except in the State of Washington, these
offices will be in the same locations as the offices of the former
Collectors of Internal Revenue. The office of the Washington Director
will be in Seattle. The Collector for Washington has heretofore been
stationed at Tacoma, and full service to taxpayers will be continued from
that point through a division office»
"Taxpayers are assured of improved service and greater convenience
because henceforth the Director, or his local representative, will be
responsible for complete handling of all Federal tax matters- in his area.
For convenience, local representatives will be stationed throughout these
four States and Alaska, in 81 presently located offices and posts of duty*
"For the convenience of the people of Alaska, that Territory will be
under the jurisdiction of the Director to be stationed in Seattle* Local
Revenue Service offices will continue to be maintained in Alaska as now*
"For purposes of general area .supervision and coordination of
local tax administration, there is being established in Seattle the office
of District Commissioner. This office is a new provision in the reorgan­
ization. The District Commissioner for Seattle has full responsibility
for all field activities of the Bureau in the four states of Washington,
Oregon, Montana, and Idaho and the Territory of Alaska. Under this
reorganization, there are clear and direct lines of authority and
accountability from the Directors of Internal Revenue to the District
Commissioner and from the District Commissioner to the Commissioner in
Washington.
"One of the members of the District Commissionerfs staff will be the
Assistant District Commissioner for Intelligence. Under his direction
there will be intensified efforts to see that every fraudulent attempt to
evade Federal taxes will bring quick investigation and action.
"The task of fighting tax frauds never was an easy one» In recent
years the criminal element has attempted tax evasion with greater
persistence than ever before. It is our determination that this persistence
will be met by the special agents of the Revenue Service with even greater
enforcement diligence» The Assistant District Commissioner for Intelligence
will see that the full limit of available manpower is applied to the tax
evasion problem,
"In streamlining the Revenue Bureau*s operations, we have provided
for improved supervision of employee conduct, and helped eliminate the

-5 -

775

temptations to which some employees have succumbed in the past* There has
been established an independent Inspection Service, under the direction of
another Assistant Commissioner, which will maintain a constant check on
employee conduct and watch other Revenue Service activities as well*
"The Treasury and the Revenue Bureau have taken positive steps to
eliminate from the Service those employees who have failed in their public
trust* The work of Congressional investigative groups has had, and will
continue to have, our full cooperation*
"In placing the Reorganization Plan in effect, we have made it our
objective, that only the most capable persons available would be named to
the positions of District Commissioner of Internal Revenue, Director of
Internal Revenue, and other supervisory posts* I am confident that our
selections for the office of District Commissioner here in Seattle and the
offices of Director of Internal Revenue in Seattle, Portland, Helena, and
Boise, will measure up to every expectation*
"The Pacific Northwest which these officers will serve is, as I
mentioned earlier, one of the most important economic areas in our country*
"As a young economic giant, this area has just started to flex its
productive muscles* We know of the tremendous strides which have been
made in the past decade, and we know that sensational developments going
on right non in this region promise even greater productivity and progress
in the years ahead.
"The Pacific Northwest is today a proving ground for great atomic
experimentations, formidable to those who seek to destroy us, but of greatest
portent to us for the limitless possibilities they hold for humanity's
advancement rather than humanity’
s destruction*- Within its borders are
vast potentialities for future growth in almost every line of industry and
trade 0
"A most significant factor in assuring industrial expansion is the
recent discovery of large petroleum and gas reserves in western Canada which
will make it possible to bring a large supply of natural gas and petroleum
into the Pacific Northwest by pipeline* The availability of natural gas
for the first time, a large nearby supply of petroleum, and an estimated
I4O percent of the Nation’
s potential hydroelectric power, provide a firm
base for the introduction of many, new industries to this area as well as
the expansion of existing ones*
"Equally impressive is the enterprise of your citizens in enlarging
the foreign as well as domestic trade of this area* Excluding military
shipments, exports in 195>1 from the Oregon customs district were three
times the value of IRAQ’
S exports, while exports from the Washington
district were double the 195>0 level*

- 6 nYour own city of Seattle has been doing an outstanding job in
developing an intensive and widespread campaign to attract foreign and
domestic shippers* particularly with respect to trade with the Far East«
nIt has given me a great deal of personal satisfaction to meet here
today with the enterprising citizens of such an enterprising city and
region, I wish to thank you for your generous cooperation in arranging
today*s ceremony® I also wish to join Under Secretary Foley and Commissioner
Dunlap in expressing our warm appreciation to all those who have taken a
part in making this occasion possible«
11It is my firm belief that the result of today’s reorganization
proceedings here* and those held or to be held throughout the Nation* will •
be to give the American people a Revenue Service of maximum efficiency and
operating economy* .manned by employees of unquestioned integrity«”'

0O 0

FOR IMMEDIATE RELEASE:

The following telegram was sent today from Seattle by
Secretary Snyder to Representative Cecil R* King, Chairman of
the Sub-committee on Administration of the internal revenue

*>

v*

laws, House Ways and Means Committee:
«1 am shocked at the politically-inspired, false charges
and innuendoes that have issued from members of your
Sub-committee in the last twenty-four hours*

I demand

that you personally in your responsbility as Chairman
of the Sub-committee take action immediately to correct
these completely unfounded and irresponsible election
eve statements*w

(Issue immediately*

Send copies at once to Saxon, Henry

Schneider in Revenue and Rayburn*

Tell Dillon we are

sending telegram now from here - Seattle*)

TR E AS U R Y DEPARTMENT
Information Service

IMMEDIATE RELEASE

Friday , October 31* 1952.

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

S-3214

The f o l l o w i n g telegram'was. sent today from
Seattle b y S e c r e t a r y Snyder to R e p r e s e n t a t iv e
Cecil R. King., Chair m a n of the S u b - c o m m i t t ee on
A d m i n i s t r a t i o n of the Internal Revenue L a w s ,
House Ways and Means C o m m i t t e e :
’T am shocked at the pol i t i c a l l y inspired, false charges and innuendoes
that have issued f r o m memb e r s of your
Sub- c o m m i t t ee in the last t w e n ty-four
hours.
I deman d that y o u p e r s o n a l l y in ‘
y o u r r e s p o n s i b i l i t y as C h airman of the
Sub-commietee take a c t i o n i m m e d i a t e l y to
correct these c o m p l e t e l y unf o u n d e d and
irresp o n s i b le e l e c t i o n eve statements."