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el $
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JUH
■ u v e a * o t p w n » 1^
■» » *
- 3--
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For
purposes of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be interest.
Under Sections k2 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 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. Ijl8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue,
Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.
-
dealers in investment securities.
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 January 29, 1953
, in cash or other immediately available
.. «.. " U H
M S
funds or in a like face amount of Treasury bills maturing
January 29, 1953 ,|
Xs)
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
' Cd
iBliüBlBiWratt
TREASURY DEPARTMENT
Washington
H ~ ~
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 22, 1953____ *
!
The Secretary of the Treasury, by this public notice, invites tenders
for $1,500,000,000
j^WV1
, or thereabouts, of
91
'
uL..+\'
-day Treasury bills, for
cash and in exchange for Treasury bills maturing
the amount of $1 ,501,^16,000
January 29, 1953 _, in
apajm
, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
January 29, 1953
The bills
« and will mature
April 30, 1953________ , when the face amount will be payable without in
terest.
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 fclock p.m., Eastern Standard time, Monday, January 26, 1953«
— ,
............... .
f - v
,r
Ini IIf III
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
Information Service
WASHINGTON, D .C.
4
RELEASE MORNING NEWSPAPERS,
Thursday,
J a n u a r y 22,
1953.
H-l
Thi i S e c r e t a r y of the. Treasury, b y this publ: .c notice, i n v ites
tenders fo r $ 1 ,500 ,000,000, or t h e r e a b o u t s , o f 91' ■day T r e a s u r y bills,
[for cash a nd in 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 i n g J a n u a r y 29,1953,
in the a m o u n t of $ 1 , 5 0 1 , 4 l o , 000, to be issued, on a d i s c o u n t b a s i s
under c o m p e t i t i v e a nd n o n - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r
provided.
The b i l l s of this series w ill be d a t e d J a n u a r y 29, 1953,
and w i l l ^ m a t u r e April 30, 1953* w h e n the f ace a m o u n t wil l be p a y a b l e
|without interest.
T h e y w i l l be i s s u e d in b e a r e r f o r m only, a nd in
denominations of $1,000, $5*000, $10,000, $100,000, $500,000, and
$1,000,000 ( m a t urity value).
T e n d e r s w ill be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a nd B r a n c h e s
up to the c l o s i n g h o u r two o ’c l o c k p.m., E a s t e r n S t a n d a r d time,
Monday, J a n u a r y 2b, 1953T e n d e r s will not be r e c e i v e d at the
Treasury Department, W a s h i n g t o n .
E a c h t e n d e r m u s t be f or an e v e n
multiple of $1,000, a nd in the case of c o m p e t i t i v e t e n d e r s the p r i c e
cffered m u s t be e x p r e s s e d on the b a s i s of 100, w i t h not m o r e t h a n
(three decimals, e. g., 99.925.
F r a c t i o n s m a y not be used. It is
(Urged that t e n d e r s be m a d e on the p r i n t e d f o rms a nd f o r w a r d e d in the
¡special e n v e l o p e s w h i c h will be s u p p l i e d b y F e d e r a l R e s e r v e B a n k s or
Branches on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s w ill not be p e r m i t t e d to submit
tenders except f or t h e i r own account.
T e n d e r s will be r e c e i v e d
[without d e p o s i t f r o m i n c o r p o r a t e d b a n k s an d trust c o m p a n i e s a nd f r o m
responsible and r e c o g n i z e d d e a l e r s in i n v e s t m e n t securities.
Te n d e r s
irom others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n d e r s are
accompanied b y an e x p r e s s g u a r a n t y of p a y m e n t b y a n I n c o r p o r a t e d b a n k
or trust company.
p j
I m m e d i a t e l y a f t e r the c l o s i n g hour,
t e n d e r s wil l be o p e n e d at the
t r l ral^ eSQrve B a n k s a nd B r a n ches, f o l l o w i n g w h i c h p u b l i c a n n o u n c e
ment will be m a d e b y the S e c r e t a r y of the T r e a s u r y of the a m o u n t and
price range of a c c e p t e d bids.
T h o s e s u b m i t t i n g t e n d e r s w i l l be
advised of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of the
treasury e x p r e s s l y r e s e r v e s the r i ght to a c c e p t or r e j e c t a p y or all
^
in w h o l e or .in Part, a n d h i s a c t i o n in a n y such r e s p e c t
ail be final.
S u b ject to these r e s e r v a t i o n s , n o n - c o m o e t i t i v e
L * ers f o r $ 2 0 0 , 0 0 0 or less w i t h o u t stat e d p r i c e f r o m a n y one
piaaer wili be a c c e p t e d in full at the a v e r a g e p r i c e (in three
•-cimals) of a c c e p t e d c o m p e t i t i v e b i d s . S e t t l e m e n t f o r a c c e p t e d
s
t e n d e r s in a c c o r d a n c e w i t h the bids m u s t be m a d e or c o m p l e t e d at the
F e d e r a l R e s e r v e B a n k on J a n u a r y 29;* 1953:? in c a s h or o t her immediately
a v a i l a b l e funds or in a like face a m o u n t of T r e a s u r y b i l l s m a t u r i n g
J a n u a r y 29, 1953.
C a s h and e x c h a n g e te n d e r s will r e c e i v e equal
treatment.
C ash a d j u s t m e n t s will be m a d e f or d i f f e r e n c e s b e t w e e n the
p a r v a l u e of m a t u r i n g b i l l s a c c e p t e d in e x c h a n g e a nd the issue pric<
of the n e w ‘bills.
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r in t e r ë s t or gain
f r o m the sale or o t her d i s p o s i t i o n of the bills, shall not have any
exemption, as such, and loss f r o m the sale or o t h e r d i s p o s i t i o n ofT r e a s u r y b i l l s shall not have a ny special treatment, as such, u n d e r
the Internal Re v e n u e Code, or laws a m e n d a t o r y or supplementary^
thereto.
The b i l l s shall be subject to estate, Inheritance, gift or
o t h e r exci s e taxes, w h e t h e r F e d e r a l or State, but shall be exem p t
f r o m a l l t a x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n c i p a l or
int e r e s t t h e r e o f by a n y State, or an y of the p o s s e s s i o n s of the
U n i t e d States, or by a ny local t a x i n g authority.
F o r p u r p o s e s of
t a x a t i o n the amou n t of d i s c o u n t at w h i c h T r e a s u r y b i lls are
o r i g i n a l l y sold b y the U n i t e d S t a t e s . s h a l l be c o n s i d e r e d to be
Interest.
Under1 Se c t i o n s 42 and 117 (a) (l) of the I n t ernal Rev nm
Code, as a m e n d e d by S e c t i o n 115 of the R e v e n u e Act of 1941, the
a m o u n t of d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are sold shall not
old, r e d e e m e d or
be c o n s i d e r e d to a c crue u n til such b i l l s shall be
o t h e r w i s e d i s p o s e d of, and such b i l l s are. e x c l u d e d f r o m co n s i d e r a t i o n
s (other
a s ' c a p i t a l assets.
Accordingly, the o w n e r of Treasui
lude
in his
t h a n life ins u r a n c e com p a n i e s ) issu e d h e r e u n d e r n e e d Inc
p
a
i
d
f
o r such
in come tax r e t u r n only the d i f f e r e n c e b e t w e e n the p r i c e
.se,
an
d
the
bills, w h e t h e r on or i g i n a l issue or on sub s e q u e n t purchc
at
m
a
t
u
r
i
ty
a m ount a c t u a l l y r e c e i v e d e i t h e r u p o n sale or r e d e m p t i o n
o
r
d
i
n
a
r
y
d u r i n g the taxable y e a r for w h i c h the r e t u r n is made, ac
g a i n or l o s s ..
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s and g o v e r n the
c o n d i t i o n s of t h e i r issue.
Copies of the c i r c u l a r m a y be o b t a i n e d
f r o m a n y F e d e r a l R e s erve B a n k or Branch.
oOo
tec*
Secretary of the Treasury George M. Humphrey addressed a
letter to the National and State Chairmen and Directors of the United
States Savings Bonds Program advising them of his wholehearted support
of the program and his intention to continue its vigorous promotion.
The Secretary asked that his letter be made public at once, so
that the host of volunteer workers in this program throughout the
Country would know his views and that he is enlisting their enter-
Secretary* s letter to the Chairmen and Directors is as follows.
«As I assume my duties as Secretary of the Treasury, I
want to send a special message to the public-spirited men and^
Yiomen who are engaged in the vitally important task of promoting
the sale of U. S. Savings Bonds.
nit is our intention to review carefully all Treasury
operations to consider what adjustments may be required in the
interest of efficient operations, but, in advance of this
review, I wish to tell all of you that President Eisenhower
and I recognize fully the value of the Savings Bond program
and are prepared to give it our enthusiastic support.
MThe sale of U* S. Savings Bonds promotes thrift, gives
the holder a buffer against misfortunes, and makes him a
partner of the Government. The sale of Government bonds to
millions of the citizens of this Country is a vital part of a
sound debt management policy.
l!The Savings Bond program will be under the general super
vision of W. Randolph Burgess and Andrew N. Overby, i/tio will
keep in touch with you.
it'lfe appreciate what you have done and ask your cooperation
as we go forward.”
IMMEDIATE RELEASE,
Thursday, J a n u a r y 22,
1953«
H-2
S e c r e t a r y of the T r e a s u r y G e o r g e M, H u m p h r e y t o d a y a d d r e s s e d
a letter to the N a t i o n a l and S t ate C h a i r m e n and D i r e c t o r s of the
United States S a v i n g s B o n d s P r o g r a m a d v i s i n g t h e m of h i s w h o l e
hearted support of the p r o g r a m a n d h i s i n t e n t i o n to c o n t i n u e its
vigorous prom o t i o n .
The S e c r e t a r y a s k e d that his l e t t e r be m a d e p u b l i c at once, so
that the h o s t of v o l u n t e e r w o r k e r s in this p r o g r a m t h r o u g h o u t the
Country w o u l d k n o w h is v i e w s and that he is e n l i s t i n g t h e i r e n t e r | prising c o o p e r a t i o n in this v e r y i m p o r t a n t activity.
The text of the S e c r e t a r y ’s l e t t e r to the C h a i r m e n and
Directors is as follows:
"As I a s s u m e
I w a n t to send a
m e n an d w o m e n w h o
t a s k of p r o m o t i n g
m y d u t i e s as S e c r e t a r y of the Treasury,
special m e s s a g e to the p u b l i c - s p i r i t e d
are e n g a g e d in the v i t a l l y i m p o r t a n t
the sale of U. 8. S a v i n g s Bonds.
"It is o ur i n t e n t i o n to r e v i e w c a r e f u l l y all
T r e a s u r y o p e r a t i o n s to c o n s i d e r w h a t a d j u s t m e n t s m a y
be r e q u i r e d in the i n t e r e s t of e f f i c i e n t operations,
but, in a d v a n c e of this review, I w i s h to tell all of
y o u that P r e s i d e n t E i s e n h o w e r a nd I r e c o g n i z e f u l l y
the v a l u e of the S a v i n g s B o n d p r o g r a m a n d are p r e p a r e d
to give it o ur e n t h u s i a s t i c s u p p o r t .
"The sale of U. S. S a v i n g s B o n d s p r o m o t e s thrift,
gives the h o l d e r a b u f f e r a g a i n s t m i s f o r t u n e s , and
m a k e s h i m a p a r t n e r of the G o v e r n m e n t . The sale of
G o v e r n m e n t b o n d s to m i l l i o n s of the c i t i z e n s of this
C o u n t r y is a v i t a l p a r t of a sound debt m a n a g e m e n t policy.
"The S a v i n g s B o n d p r o g r a m w ill be u n d e r the g e n e r a l
s u p e r v i s i o n of W. R a n d o l p h B u r g e s s and A n d r e w N. Overby,
who w ill keep in t o u c h w i t h you.
"We a p p r e c i a t e w h a t y o u h a v e don e a nd a s k y o u r
c o o p e r a t i o n ,as we go f o r w a r d , "
oOo
RELEASE MORNIMQ MEWS PAPERS
Tuesdayf January 27» 1953«
5
T fj
the Secretary of the Treasury announced last evening that the tenders for
f
$1,500,000,000, or thereabouts, of 91-day Treasury bills to be dated January 29 and
to mature April 30, 1953» which were offered on January 22, were opened at the
Federal Reserve Banks on January 26♦
The details of this issue are as follows s
Total applied for - $2,383*559,000
Total accepted
*> 1,500,18?,000 {Includes $262,638,000 watered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
* 99*5Ok/ Equivalent rate of discount approx* 1*961% per annuo
Range of accepted competitive bids :
High
Low
* 99*575 Equivalent rate of discount approx. 1*681$ per annuo
* 99*500
•
«
a
»
»
1,970$ «
»
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Ne* fork
Philadelphia
Cleveland
Riolmond
Atlanta
Chisago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
22,215,000
1 ,636 ,091,000
I
Total
32,001»,000
57,065,000
19.120.000
.
37 865.000
260,357,000
Mt, 718,000
13, 91*2,000
62, 576,000
62, 522,000
S^e*»*»wwe<«M«Sewaw»sn>«*wiii,ii in
19,580,000
978,571»,000
13.976.000
38 ,81*0 ,0 0 0
lit,875,000
3l»,125,000
166,337,000
27,331»,000
13,l»i»li,000
.
53 026.000
1*2 , 789,000
135.08h.000
97,287,000
12,383,559,000
$1,500,187,000
TREASU RY
D EPA RTM EN T
Information Service
WASHINGTON, D .C .
RELEASE MORNING NEWSPAPERS,
Tuesday, January 27, 1953-
H-3
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 5 0 0 ,000,000, or ther e a b o u t s , of 9 1 -day T r e a s u r y b i lls
to be dated J a n u a r y 29 and to m a t u r e April 30, 1953, w h i c h w e r e
offered on J a n u a r y 22, wer & o p e n e d at the F e d e r a l R e s e r v e B a n k s on
January 26.
The de t a i l s of this issue are as follows:
Total a p p l i e d f or - $ 2 , 3 8 3 , 5 5 9 , 0 0 0
Total a c c e p t e d
1,500,187,000
Average p r i c e
(includes $ 2 6 2 , 6 3 8 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a s i s . a n d a c c e p t e d in full
at the a v e r a g e p r i c e shown
below)
- 99 ,504/ E q u i v a l e n t rate of d i s c o u n t approx.
1.961/ per annum
Range of a c c e p t e d c o m p e t i t i v e bids:
High
- 99*575 Equivalent rate of discount approx.
I. 68I / p e r a n n u m
- 9 9 . 5 0 0 E q u i v a l e n t rate of d i s c o u n t approx.
1 .978/ p e r a n n u m
How
(31 percent of the amount bid for at the low price was accepted)
[Federal Reserve
District '
Total
A p p l i e d for
[Boston
New York
Philadelphia
[Cleveland
[Richmond
Atlanta
[Chicago
p t . Louis
Minneapolis
p n s a s City
Pallas
ISan Francisco
$
TOTAL
22 , 215,000
1,636,091,000
32.004.000
■ 57,065,000
19.120.000
37.865.000
260, 357,000
44.718.000
13.942.000
62 .576.000
62 ,522,000
135,084,000
$2,383,559,000
0O 0
Total
Accepted
$
19 ,580,000
978 .574.000
13 . 976.000
38.840.000
14 . 875.000
34.125.000
166.337.000
27.334.000
13.444.000
53.026.000
42 .789.000
9 7 . 2 8 7 .000
$ 1 ,500 , 187 , .000
4 § thè intenti©» ni
T&mm&T to offer thè h o ì é ^
®£ « * #8*860,000,000 of 1 - 7 / W nomil e » * » « of
Indebtednoae meturing on fWa^aaiy 35* 1|$|* f « M g #
of eaeehanglng thea ^ÈWàm tov m
certificate
or « H ip» to eie*?**? esecriti* thè termo *f thè
m o leene® « I H he announced ©n r # r M p ^ jmxmxf 3ó*
«od thè
hook» « H I open Mònday* February I
*0£ thè certificate® aatmlng Feferuary 35# about
#3*? binimi «re hsld hy thè lederei teserv® bank»*
ebout p i i M 1 H » hgr commercial bank»* and th»
remainder bgr corporation« and other non-banJiJ irrvestora*
•ih» bolle of
b»*d br inrwitor«
iti» a«« offering*
« 1 » to io «a
maturiti©«.*
EFBartelt/ahh
fh* aotarlng certificate« 1« tini#
«he prefer
«eeuritles*
hewwrer* « H i gl«« any ridere «ho
an opportunità t© «stand their
TREASU RY
D EPA RTM EN T
Information Service
Wa s h in g t o n , d .c .
IMMEDIATE RELEASE,
Tuesday, January 27, 1953. .*
H -4
S e c r e t a r y H u m p h r e y a n n o u n c e d t o d a y that
it is the i n t e n t i o n of the T r e a s u r y to o f fer
the h o l d e r s of the $ 8 , 8 6 8 , 0 0 0 , 0 0 0 of l-T/òfó
c e r t i f i c a t e s of i n d e b t e d n e s s m a t u r i n g on
F e b r u a r y 15, 1953, a choice of e x c h a n g i n g
t hem e i t h e r for a o n e - y e a r c e r t i f i c a t e or
a five to s i x - y e a r security.
The terms
of the n e w i s sues will be a n n o u n c e d on
Friday, J a n u a r y 30, a nd the s u b s c r iptionbooks will o p e n Monday, F e b r u a r y 2.
Of the c e r t i f i c a t e s m a t u r i n g F e b r u a r y 15 ,
about $3;7 b i l l i o n are h e l d b y t h e - F e d e r a l
Reserve banks, a b o u t $2*3 billion, b y 'Commercial
banks, an d the r e m a i n d e r b y c o r p o r a t i o n s and
other n o n - b a n k investors.
The b u l k of the m a t u r i n g c e r t i f i c a t e s is
thus h e l d b y i n v e s t o r s w h o p r e f e r s h o r t - t e r m
securities.
The n e w offering, however, w i l l
give a n y h o l d e r s w ho m a y w i s h to do so an
o p p o r t u n i t y to e x t e n d t h e i r m a t u r i t i e s .
oOo
addressed the following message to all Treasury Department
employees:
As I take up my duties as Secretary of the Treasury, I
should like to tell each of you how proud I am to head the
Treasury team.,
I hope that I may soon be able to meet as
many of you as possible and to visit our field offices.
It is my intention to review as rapidly as possible
all Treasury operations in order to familiarize myself with
the many important activities of the Treasury and to consider
improvements that may be required in the interests of con
tinued effective operations.
I am sure you have heard or read many fine things of
the men who will fill the other high posts in the Treasury
Department.
I am looking to my associates to assist me in
providing effective leadership and take real responsibility
for the activities in each of their respective areas.
I know that we can depend on the complete cooperation of
the fine men and women in the Treasury, and on your continued
determination to render outstanding service to the Government
and to the public.
In return, my associates and I pledge our
best efforts and abilities in carrying out the vital objectives
of the Department as ,the business arm of the Government devoted
to sound finance and the highest standards of public service.
TREASU RY
D EPA RTM EN T
Information Service
WASHINGTON, D .C
12
[ M E D I A T E RELEASE,
Tuesday, J a n u a r y 27 ^ 1953
H-5
Secretary H u m p h r e y t o d a y a d d r e s s e d the f o l l o w i n g m e s s a g e
[all Treasury D e p a r t m e n t emp l o y e e s :
,!A s I take up m y d u t i e s as S e c r e t a r y of the Treasury,
should like to tell e ach of y o u h o w p r o u d I a m to h e a d the
Treasury team.
I hope that I m a y soo n be able to m e e t as
many of y o u as p o s s i b l e an d to v i s i t o ur f i e l d offices.
to
I
“It is m y i n t e n t i o n to r e v i e w as r a p i d l y as p o s s i b l e all
Treasury o p e r a t i o n s in o r d e r to f a m i l i a r i z e m y s e l f w i t h the
many important a c t i v i t i e s of the T r e a s u r y a n d to c o n s i d e r
improvements that m a y be r e q u i r e d in the i n t e r e s t s of c o n
tinued e f f e ctive operations.
"I am sure y o u h a v e h e a r d or r e a d m a n y f ine t h i n g s of the
men who will fill the o t h e r h i g h p o s t s in the T r e a s u r y
Department.
I a m l o o k i n g to m y a s s o c i a t e s to a s s i s t m e in
providing e f f e c t i v e l e a d e r s h i p a nd take real r e s p o n s i b i l i t y
j.or the a c t i v i t i e s in e a c h of t h e i r r e s p e c t i v e areas.
I know
that we can d e p e n d on the c o m p l e t e c o o p e r a t i o n of the fine
men and w o m e n in the Tre a s u r y , and on y o u r c o n t i n u e d
determination to r e n d e r o u t s t a n d i n g service to the G o v e r n m e n t
and to the p u b l i c . In return, m y a s s o c i a t e s and I p l e d g e our
test efforts an d a b i l i t i e s in c a r r y i n g out the v i t a l o b j e c t i v e s
ox the D e p a r t m e n t as the b u s i n e s s a r m of the G o v e r n m e n t
devoted to sound f i n a n c e a nd the h i g h e s t s t a n d a r d s of p u b l i c
service.
G.
M. H U M P H R E Y
S e c r e t a r y of the T r e a s u r y "
oOo
- 3 k . T ..- r > r r *
WBSEnM
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 lj.2 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of l?ijl, 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
-
* Y Tvr T A
M B M iI
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 February
1953
, in cash or other immediately available
WSS
funds or in a like face amount of Treasury bills maturing
Cash and exchange tenders will receive equal treatment.
February
1953
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
,
Ifadaateatofe
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 29» 1953____ *
The Secretary of the Treasury, by this public notice, invites tenders
for $1,300,OCX),OOO
, or thereabouts, of
91
-day Treasury bills, for
cash and in exchange for Treasury bills maturing February
the amount of $ 1 ,301,003>000
1933
, in
, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated February 5> 1953
The bills
and will mature
when the face amount will be payable without in*
terest.
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
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, and in the case of competi
tive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.925»
Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
TREA SU RY
D EPA RTM EN T
Information Service
WASHINGTON,
16
RELEASE M O R N I N G N E W S P A P E R S >
Thursday, J a n u a r y 29* 1953.
■■
. H-o
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n v ites
tenders f or $1, 3 0 0 , 0 0 0 , 0 0 0 , or t hereabouts, of 9 1 -day T r e a s u r y
bills, for c a s h and in e x c h a n g e for T r e a s u r y b i l l s m a t u r i n g
February 5, 1953* in the a m o u n t of $1, 3 0 1 , 0 0 3 * 0 0 0 , to be i s s u e d on
a discount b a s i s u n d e r c o m p e t i t i v e and n o n - c o m p e t i t i v e b i d d i n g as
hereinafter pro v i d e d .
The b i l l s of this series w i l l be d a t e d
February 5, 1953* a nd wil l m a t u r e M a y 7* 1953* w h e n the face
•;
amount will be p a y a b l e w i t h o u t interest.
T h e y w i l l be i s s u e d in
bearer f o r m only, a nd in d e n o m i n a t i o n s of $1,000, $5*000, $10,000,
$100,000, $ 500 , 000, a nd $ 1 , 0 0 0 , 0 0 0 (maturity value).
Tenders w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s an d B r a n c h e s
up to the c l o s i n g hour, two o ’c l o c k p.m., E a s t e r n S t a n d a r d time,
Monday, F e b r u a r y 2, 1953»
T e n d e r s will not be r e c e i v e d at the
Treasury D epartment, W a s h i n g t o n .
E a c h t e n d e r m u s t be f o r a n e v e n
multiple of $1,000, a n d in the case o f - c o m p e t i t i v e t e n d e r s the p r i c e
offered m u s t be e x p r e s s e d on the b a s i s of 100, w i t h not m o r e t h a n
three decimals, e. g . , 99.925.
F r a c t i o n s m a y not be used.
It is
urged that t e n d e r s be m a d e on the p r i n t e d f o r m s a n d f o r w a r d e d in the
special e n v e l o p e s w h i c h w i l l be s u p p l i e d b y F e d e r a l R e s e r v e B a n k s or
Branches on a p p l i c a t i o n therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s w i l l not be p e r m i t t e d to
submit tenders e x c e p t f o r t h e i r o w n account.
T e n d e r s w i l l be
received w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d b a n k s a nd trust
companies and f r o m r e s p o n s i b l e a nd r e c o g n i z e d d e a l e r s in i n v e s t m e n t
securities.
T e n d e r s f r o m o t h e r s m u s t be a c c o m p a n i e d b y p a y m e n t of
2 percent of the face a m o u n t of T r e a s u r y b i l l s a p p l i e d for, u n l e s s
the tenders are a c c o m p a n i e d b y a n e x p r e s s g u a r a n t y of p a y m e n t by
an incorporated b a n k or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s w i l l be o p e n e d at
the Federal R e s e r v e B a n k s a n d Branches, f o l l o w i n g w h i c h p u b l i c
announcement w i l l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i e e ^ r a n g e of a c c e p t e d bids.
T h ose s u b m i t t i n g t e n d e r s
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
reject any or all tenders, in w h o l e or in part, a n d h i s a c t i o n in
any such r e s p e c t shall be final.
S u b j e c t to t h ese re s e r v a t i o n s ,
non-competitive t e n d e r s f o r $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t e d p r i c e
from any one b i d d e r w i l l be a c c e p t e d in full at the a v e r a g e p r i c e
(in three d e c i m a l s ) of a c c e p t e d c o m p e t i t i v e bids.
S e t t l e m e n t f or
2
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 i t h the b ids m u s t be m a d e or
c o m p l e t e d at the F e d e r a l Re s e r v e B a n k on F e b r u a r y 5* 1953^ in cash
or other i m m e d i a t e l y a v a i l a b l e f u nds or in a like face a m o u n t of .
T r e a s u r y b i l l s m a t u r i n g F e b r u a r y 5* 1953.
Cas h a nd ex c h a n g e
t e n d e r s will r e c e i v e equal treatment.
C ash a d j u s t m e n t s will be
m a d e f or d i f f e r e n c e s b e t w e e n the p a r v a lue of m a t u r i n g b i l l s
a c c e p t e d in e x c h a n g e a nd the issue p r i c e of the n e w bills..
The income derived, f r o m T r e a s u r y bills, w h e t h e r int e r e s t or
g a i n f r o m the sale or o t h e r d i s p o s i t i o n of the bills, shall not
h a v e a n y exemption, .as such, a nd loss f r o m the sale or o t h e r
d i s p o s i t i o n of T r e a s u r y b i l l s shall not have a n y special treatment,
as such, u n d e r the I n t ernal R e v e n u e Code, or laws a m e n d a t o r y or
s u p p l e m e n t a r y thereto.
The b i l l s shall be subject to estate,
inheritance, gift or o t h e r exci s e taxes, w h e t h e r F e d e r a l or State,
but' shall be exem p t f r o m all t a x a t i o n n o w or h e r e a f t e r im p o s e d on
the p r i n c i p a l or in t e r e s t th e r e o f b y a ny State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y a n y local t a x i n g authority.
For--purposes of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h Treasury
b i l l s are o r i g i n a l l y sold b y the U n i t e d States shall be considered
to be interest.
U n d e r S e c t i o n s 42 a nd 117 (a) (l) of the Internal
R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 of the Revenue. Act of
1941, the a m o u n t of d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are
sol d ' s h a l l not be c o n s i d e r e d to a c c r u e u n t i l such b i l l s shall be
sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, and such b i l l s are
e x c l u d e d f r o m c o n s i d e r a t i o n as c a p ital assets.
Accordingly, the
o w n e r of T r e a s u r y b i l l s (other t h a n life i n s u r a n c e companies)
i s s u e d h e r e u n d e r n e e d i n c lude i n hi s income tax r e t u r n only the
d i f f e r e n c e b e t w e e n the p r i c e p a i d f o r such bills, w h e t h e r on
o r i g i n a l issue or on s u b s e q u e n t purchase, and the a m o u n t actually
r e c e i v e d e i t h e r u p o n sdle or r e d e m p t i o n at m a t u r i t y d u r i n g the
taxable y e a r for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
, T r e a s u r y D e p a r t m e n t C i r c u l a r No. 4l8, as amended, and this
notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s and g o v e r n the
c o n d i t i o n s of their i s s u e . C o pies of the c i r c u l a r m a y be
o b t a i n e d f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.
oOo
f
She certification agreement announced today m m adopted bar the
Governments ef Japan and the United States te «set tills specific
problem« The operation ef this certification system will be a natter
of continuing close consultation between tbs two
Person* »bo desire to import bog bristles from Japan, or any
other commodity to which the Japanese certification procedure beomaes
applicable in the future, may file applications for this purpose on
P o m TFAO-1 with the Federal Reserve Inal of $ew Tork settle forth
the prednet to ho imported, the purchase price, and the cares and
addresses of all parsons who it is contemplated will he involved as
sellers, shippers, agents, er intermediaries.of m y sort« Licenses
granted upon such ^jpXAeatieiis will authorise the importation on
condition that the importer present» to the Collector of Customs at
tha time ef entry an appropriate certificate of origin issued by the
Japanese Ministry ef International trade and Industry under the m m
arrangements«
Applications may also he filed on Fora 1FMMI with the Federal
Reserve Basic of lew Tork for the release from Huetoms custody of
merchandise of Japanese origin now 1® Customs or on root# frost Japan
to the United States« Suoh applications should describe the mer
chandise and giro the port of entry and must he accompanied by an
appropriate letter from the Japanese Mintetry of International frado
and Industry is support of the application for release of the particular
shipment« These support letters will attest that the merchandise in
voiced la not of Communist Chinese origin Mid will be issued by the
Ministry of International trade and Industry only with respect to
those kinds of produets to which the certification procedure applies
at the time of issuance*
In cases where the Japanese Government is not able to certify
a particular commodity, the procedure will be the sane as heretofore«
Applicants for licenses to import Chinese type goods in such cases
will be required to submit to tins Treasury full and satisfactory
documentary proof that goods are not oj^Chlnese origin«
^p ^
A similar agreement with the Bong Kong Government was recently
announced«
fb© IFeasary pepartaiiit teday annotmced that m agreement
h m bea» reacheo uL%h thè Qwtmrmmt ef Japaa t© facilitate thè
importati©© ©f geode ©f 1igAitlirrtr dopai)©«© origin and at ih© ««a©
^
timo preveat Gmmmàst Chine*© export« freni entering th© United
State© diogaised a© Japanese prednete* The agreement contemplate©
¿y
ili# Ìistnn« hy thè Japan«*© aulharities ©f ©ertifleatea ©f erigi© <
co*«ring tb© importati©© iato th© United ¿tate© of geode of Chine#«
tgrp© prediali i» dopa© vhleh ar© enbjeet te th© fereign Asseta
Central legni# tiene of thè freasxrry Department*
Staila th© ¿©penose 3©trera©ent 1© prepered at present te leene
certificata© of erigi© ©aly sith raspe©t te hog brietlee» it le
expected that 1© thè ©ear fetore it «111 he prepared te eertlfy etfeer ©inediti©© ef Chine©© typ© a© holag ef 1| ciTOra, irI ifftpetmi©
erigi©* 8©i feristi©*, ©Meli ©re © e e m U y lnperted late thè M i e i
State© largely f r m m a & M M M China, are mie of thè prlnelpal dapaneee
eepmoditiee affested fey thè Fereign Asseta Destre! Regalati ©ne*
Ih© basic purpese ef thè Fereiga issate Cernirei 1© to prevent
Cenmunlet China and ierth Aerea IFem obtatoing fereign exchange wlth
ehieh te fnrther thèir aggrersion la Aerea* fa, Beees&er lé, 1950»
felletdag thè unprevoked aggreggio» fey thè Chine se demmiist© la
Aerea» thè Heited State© Clereraiaent, la snppert ef ih© ohjeetlre©
ef th© tkilted istim i • ©ette» i» I w n # aimmmced neaseres d«elg©©d
te placai mùrn? control all eecmenie reiatiene *&th QmmmAst China
in arder that th© Chine*© Cemnunlsts shenld he deaied aeeeee te
Bnibed State© sappile© er asseta A® thè United States* la ©esentisi
pari ef tèda program eas th© isseanee hy U m t<ed State© freasury
Depertaeat, under th© trading wiih th© fea©ay Aet, ef thè Feretri
Asseta centrai iugulati co» ef Beesnfeer 1?» 1950, sdiieh ferhade all
trade and fiuanoial trans©«tiene invelvÌBg thè QmmmXst Cì&mm and
iierth Aerea» regi»©© and thaìr natiesials hy persene smbjeet te th©
feriscilotion ef th© tJhited State© «alisi Treaeury oprerai «a© ehteined*
Ih© freaenry ha© mmtémè th» Fereign a ©set* Control «egnlations
fra» timo te ti©» in arder te mak© cortola that geed© ef C©smisni#t
Chine#« erigi© ©er© kepi est ef Wnited State© market©* fihder th©
S g e l atimi Ile©»©#© ar» ne© i*©qeir*d far thè importati©» ef r n s m t e n di«« ef iMmsm typ© eeen «he» it 1© all«ged te bere town prodeeed
ontside ef C m n m l e t China* Only a few ©neh lie«n©©« beve he©» greated
hy th© Treasnry beeane© iaperter© fenad li difUeult te fumisli eatlsfeetery proef that thè epeeifie ©ar^ancHee ef Chine©© type effered
far importatlim «¡me net ef CMnese erigi»«
A ,,
//
—
y*»
TREA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, D .C .
Q
RELEASE AFTERNOON NEWSPAPERS
Thursc1ay» January 29 > 19>3
H-7
The Treasury Department today announced that an agreement has been
reached with the Government of Japan to facilitate the importation of
goods of Japanese origin and at the same time prevent Communist Chinese
exports from entering the United States disguised as Japanese products*
The agreement contemplates the issuance by the Japanese authorities of
certificates of origin covering the importation into the United States
of goods of Chinese type produced in Japan which are subject to the
Foreign Assets Control Regulations of the Treasury Department*
While the Japanese Government is prepared at present to issue certif
icates of origin only with respect to hog bristles, it is expected that
in the near future it will be prepared to certify other commodities of
Chinese type as being of Japanese origin* Hog bristles, which are normally
imported into the United States largely from mainland China, are one of the
principal Japanese commodities affected by the Foreign Assets Control
Regulations•
The basic purpose of the Foreign Assets Control is to prevent Communist
China and North Korea from obtaining foreign exchange with which to further
their aggression in Korea* On December 16, 1950, following the unprovoked
aggression by the Chinese Communists in Korea, the United States Government,
in support of the objectives of the United Nations* action in Korea, an
nounced measures designed to place under control all economic relations with
Communist China in order that the Chinese Communists should be denied access
to United States supplies or assets in the United States9 An essential part
of this program was the issuance by the United States Treasury Department,
under the Trading with the Enemy Act, of the Foreign Assets Control
Regulations of December 17, 1950, which forbade all trade and financial
transactions involving the Communist Chinese and North Korean regimes end
their nationals by persons subject to the jurisdiction of the United States
unless Treasury approval was obtained.
The Treasury has amended the Foreign Assets Control Regulations from
time to time in order to make certain that goods of Communist Chinese origin
were kept out of United States markets* Under the Regulations licenses are
now required for the importation of merchandise of Chinese type even when
it is alleged to have been produced outside of Communist China* Only a few
such licenses have been granted by the Treasury because importers found it
difficult to furnish satisfactory proof that the specific merchandise of
Chinese type offered for importation was not of Commmist Chinese origin*
/
The certification agreement announced today was adopted by the
Governments of Japan and the United States to meet this specific problem*
The operation of this certification system will be a matter of continuing
close consultation between the two Governments#
Persons who desire to import hog bristles from Japan, or any other
commodity to which the Japanese certification procedure becomes applicable
in the future, may file applications for this purpose on Form TFAC-1 with
the Federal Reserve Bank of New York setting forth the product to be im
ported, the purchase price, and the names and addresses of all persons who
it is contemplated will be involved as sellers, shippers, agents, or
intermediaries of any sort# Licenses granted upon such applications will
authorize the importation on condition that the importer presents to the
Collector of Customs at the time of entry an appropriate certificate of
origin issued by the Japanese Ministry of International Trade and Industry
under the new arrangements*
Applications may also be filed on F'orm TFAC—l with the Federal Reserve
Bank of New York for the release from Customs custody of merchandise of
Japanese origin now in Customs or en route from Japan to the United States#
Such applications should describe the merchandise and give the port of
entry and must be accompanied by an appropriate letter from the Japanese
Ministry of International Trade and Industry in support of the application
for release of the particular shipment# These support letters will attest
that the merchandise involved is not of Communist Chinese origin and will
be issued by the Ministry of International Trade and Industry only with re
spect to those kinds of products to which the certification procedure applies
at the time of issuance#
In cases where the Japanese Government is not able to certify a par
ticular commodity, the procedure will be the same as heretofore* Applicants
for licenses to import Chinese type goods in such cases will be required to
submit to the Treasury full and satisfactory documentary proof that goods
are not of Communist Chinese origin#
A similar agreement with the Hong Kong Government was recently announced#
Secretary Humphrey administered the oath of office
to three new officers of the Treasury Department at
3:30 p.m. today. The ceremony took place at the Treasury.
Those sworn in were:
Marion B. Folsom, Under Secretary.
H. Chapman Rose, Assistant Secretary.
Mrs. Ivy Baker Priest, Treasurer of the U.S.
Nominations of the three by President Eisenhower
were confirmed yesterday by the Senate.
W. Randolph Burgess was sworn in on January 21
^
ci*e Lav j , iri’tii.
1
&£ Deputy to the Secretary .
It is expected that Elbert P. Tuttle, nominated
and confirmed as General Counsel of the Treasury, and
T. Coleman Andrews, nominated and confirmed as Commissioner
of Internal Revenue, will be sworn in within the next
few days.
~
TREA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
IMMEDIATE RELEASE,
Wednesday, January 28, 1953«
H-8
Secretary Humphrey administered the oath of office
to three new officers of the Treasury Department at
3:30 p.m. today.
The ceremony took place at the Treasury.
Those sworn in w e r e :
Marion B. Folsom, Under Secretary.
H. Chapman Rose, Assistant Secretary.
Mrs. Ivy Baker Priest, Treasurer of the U.S.
Nominations of the three by President Eisenhower were
confirmed yesterday by the Senate.
W. Randolph Burgess was sworn in on January 21 as
Deputy to the Secretary.
It is expected that Elbert P. Tuttle, nominated and
confirmed as General Counsel of the Treasury, and
T. Coleman Andrews, nominated and confirmed as Commissioner
of Internal Revenue, will be sworn in within the next few
days.
I fl It
oOo
/
V
-
■
y »■G ujrgu Mr Humphrey today
Secretary o£*tia
apoointed Dan Throop Smith of Concord, Massachusetts,
an Assistant to the Secretary*
Mr* Smith has been assigned to the Under Secretary
with responsibility for analysis and planning on tax
policy.
He will assume operating control of such
activities as may be delegated to him by the Under
Secretary.
Mr. Smith, who is Professor of Finance at the
Harvard Graduate School of Business Administration, is
on an extended leave from Harvard University*
x
k
y f
TREA SU R Y
D EPA RTM EN T
Information Service
IMMEDIATE RELEASE,
Wednesday, January
Wa s h in g t o n , d .c .
28,
1953>
H-9
Secretary Humphrey today appointed
Dan Throop Smith of Concord, Massachusetts,
an Assistant to the Secretary*
Mr. Smith has been assigned to the
Under Secretary with responsibility for
analysis and planning on tax policy.
He
will assume operating control of such
activities as may be delegated to him by
the Under Secretary.
Mr. Smith, who is Professor of Finance
at the Harvard Graduate School of Business
Administration, is on an extended leave
from Harvard University*
0O 0
RELEASE, MORNING NEWSPAPERS,
Fridays January 30, 1953*
Secretary Humphrey announced today the term« of the new
issues on which the subscription books will open Monday,
February 2, for the exchange of $8,868,000,000 certificate
of indebtedness, maturing on February IS, 1953.
Holders of the maturing certificates will have the option
of exchanging them for 2-1/** percent one-year certificates or
2-1/2 percent five-year ten-month bonds*
Full details will be given in the press statement and
official circulars which will be made public Monday morning,
February 2#
/
Deputy to the
Secretary of the Treasury
TREA SU R Y
D EPA RTM EN T
WASHINGTON, D .C .
Information Service
RELEASE MORNING NEWSPAPERS
Friday, January 30* 1953»
H-10
S e c r e t a r y H u m p h r e y a n n o u n c e d t o d a y the t e rms
of the n e w issu e s on w h i c h the
subscription books
$8,868,000,000 certificates of indebtedness, maturing
on February
1953»
H o l d e r s of the maturing certificates will have
the option of exchanging them for 2-1/4 percent
one-year certificates or 2-1/2 percent five-year
ten-month bonds.
Full details will be given in the press
statement and official circulars which will be
made public Monday morning, February 2.
oOo
In concluding its report, the Advisory Committee
stated;
"We wish to reiterate that throughout our
studies we have been most favorably impressed
by the strict accounting and audit procedures
in force in all Divisions and Bureaus with which
we dealt and by the capacity of the gentlemen
charged with their supervision. It would seem
that every feasible safeguard has been thrown
around the Treasuryvs assets. Our broader
recommendations above are made solely out of
an abundance of caution as prudent measures
designed to provide complete assurance to you
with respect to the existence of Treasury assets
and their appropriate reflection by the Treasury9s
records."
- 4 -
ac
In making its recommendations for verification of
the gold and silver assets in the custody of the seven
Bureau of the Mint institutions, the report of the Advisory
Committee said:
"Approximately 97£ percent of the gold and
silver bullion in these Mint institutions is held
in compartments under joint seal. The contents
of some of these compartments have not been counted
for a considerable period of time, although the
seals have been checked and examined annually
and. of course, the compartments are under shat
would appear to be very offactive guard. We
believe that in general the bullion under joint
seal can be accepted according to the inventory,
but we suggest that* to make doubly sure of the
accuracy of the audit, there should be a _pot
check of the gold bullion by (1) making actual
i 10 percent of the com-
counted compartments, the exact percentages
and numbers to be specified by tne Continuing
Committee. The compartments should then be
resealed accordingto the methods now in practice
by the various Mints and other depositories. At
tha time such soot check is made, there should be
observe ?hevv$r£fication and report
mittee with respect thereto.
to
o the Cbm-
"It seems to us that silver bars or any
substantial amount of silver coin under seal are
amount of
sequently, we are not including in our recommenda
tions the same sort of spot checking "Of the
holdings of silver as we are with respect to
gold,"
assure itself of the sufficiency of the regular (and,
if necessary| special) confirmation from all Federal
Reserve banks of the Treasury balances, including the
tax and loan accounts.
In the course of its work, the Advisory Committee
reviewed audit and control procedures in present use by
the Treasury Department« and interrogated responsible
officials with respect to the character of accounting«
auditing and safekeeping practices.
The committee also
conferred with officials of the General Accounting Office
and stated in its report that the GAO "is fully satisfied
with respect to the adequacy and effectiveness of the
internal control and accounting procedures presently in
use by the Treasury Department" for controlling the money
assets and securities in its custody.
The report continued:
"Your committee was impressed with the
evidence of the adequacy ana effectiveness of
the audit and control methods that are being
followed, methods and practices which have
resulted from years of experience and intelli~
gent planning. Your committee has no reason
to doubt the accuracy of the Treasury9s
accounts. Furthermore, we have no reason to
doubt that the assets reflected in those
records are intact. However, we desire to make
certain recommendations for augmenting the
regular procedures with the view of making
doubly sure that both the incoming and outgoing
officials may justifiably rely on their accuracy."
*m 111
The report of the consultants was accepted by both
former Secretary Snyder and Secretary Humphrey.
The Advisory Committee suggested that the steps it
recommended be taken under the general supervision of a
Continuing Committee representing both incoming and
outgoing Treasury officials and also the Comptroller
General of the United States.
Members of the Continuing
Committee, M B » agreed upon by former Secretary Snyder
and Secretary Humphrey, are:
Eugene G. Shreve, of the
Bureau of Engraving and Printing, representing former
Secretary Snyder; Maurice Melvin Washburn, office of the
Comptroller of the Currency, representing Secretary
Humphrey; George Reeves, office of the General Counsel,
representing Mrs. Ivy Baker Priest, incoming Treasurer
of the United States.
Representatives of the Comptroller General of the
United States, as part of the continuing audit of Treasury
accounts by the General Accounting Office, will observe
and review the audits to be made in accordance with the
Advisory Committee’s recommendation.
The Comptroller
General has directed his staff to cooperate in every way
with the incoming and outgoing Treasury officials in
connection with the transfer of assets.
In addition to supervising the verification of assets
held by the Bureau of the Mint, the Treasurer of the
United States and the Division of Loans and Currency,
the Continuing Committee will take appropriate steps to
i
//-/I
S', /£?r$
oday announced the completion of
plans for the verification of gold and silver bullion and
other assets in the custody of the Treasury Department,
and for the transfer of these assets to officials of the
new Administration,
The procedures to be followed were recommended by
an Advisory Committee of consultants, appointed Jointly by
Secretary Humphrey and former Secretary Snyder•
The pro
cedures will Include test checks of gold bullion held
under seal in the various institutions of the Bureau of
the Mint; a full audit of all assets in the Mint institu
tions which are not under seal; an audit, in accordance
with established procedure, of currency, coin, securities
and other assets in the custody of the Treasurer of the
United States in Washington as of the date on which the
new Treasurer of the United States assumes office; and
a similar audit of securities held in safekeeping in the
Treasuryfs Division of Loans and Currency for account
of various trust funds administered by the Secretary of
the Treasury.,
The members of the Advisory Committee which reviewed
the problem of verifying and transferring the Treasury
assets and agreed on the recommended procedures were:
W. L. Hemingway, Chairman of the Board, Mercantile Trust
Company, St. Louis, Chairman of the Consultants* Committee;
Wm. Fulton Kurtz, Chairman of the Board, Hie Pennsylvania
Company, Philadelphia; Sidney B. Congdon, President, National
City Bank of Cleveland, Cleveland; J m M * L. Robertson, member
Board of Governors, Federal Reserve System, Washington.
TREA SU RY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
2
RELEASE morning n ew spa pers
S a tu rd a y , J a n u a ry 3 1 , 1 9 5 3
S e c r e t a r y Humphrey to d a y announced th e c o m p le tio n o f p la n s f o r th e
v e r i f i c a t i o n o f g o ld and s i l v e r b u l l i o n and o t h e r a s s e t s i n t h e c u s to d y
o f th e T r e a s u ry D ep artm en t, and f o r th e t r a n s f e r o f t h e s e a s s e t s t o
o f f i c i a l s o f th e new A d m in is tr a tio n ,
The p ro ce d u re s t o be fo llo w e d were recommended, t y an A d v iso ry Com m ittee
of c o n s u l t a n t s , ap p o in te d j o i n t l y by S e c r e t a r y Humphrey and fo rm er S e c r e t a r y
Snyder. The p ro c e d u re s w i l l in c lu d e t e s t ch e c k s o f g o ld b u l l i o n h e ld under
s e a l i n th e v a r io u s i n s t i t u t i o n s o f t h e B u reau o f th e M int* a f u l l a u d i t o f
a l l a s s e t s i n th e M int i n s t i t u t i o n s w hich a r e n o t under s e a l ; an a u d i t , i n
acco rd an ce w ith e s t a b l i s h e d p r o c e d u r e , o f c u r r e n c y , c o i n , s e c u r i t i e s and
o th e r a s s e t s i n th e c u s to d y o f th e T r e a s u r e r o f t h e U n ited S t a t e s i n
W ashington a s o f th e d a te on w hich th e new T r e a s u r e r o f th e u n i t e d ^ S t a t e s
assumes o f f ic e ,* and a s i m i l a r a u d it o f s e c u r i t i e s h e ld i n s a fe k e e p in g i n
the T r e a s u r y 1 s D iv is i o n o f Loans and C u rren cy f o r a c c o u n t o f v a r io u s t r u s t
funds a d m in is te re d by th e S e c r e t a r y o f th e T r e a s u r y .
The members o f th e A d v iso ry Com m ittee w hich re v ie w e d th e problem o f
v e r if y in g and t r a n s f e r r i n g th e T re a s u ry a s s e t s and a g re e d on th e recommended
p ro ced u res w ere? W* L , Hemingway, Chairm an o f th e B o a rd , M e r c a n t ile T r u s t
Company, S t . L o u is , Chairm an o f th e C o n s u l ta n ts ’ C o m m ittee; W illia m F u lto n
K u rtz, Chairm an o f th e B o a rd , The P e n n s y lv a n ia Company, P h i l a d e l p h i a ;
Sidney B* Congdon, P r e s i d e n t , N a tio n a l C ity Bank o f C le v e la n d , C le v e la n d ;
J . Lo R o b e r ts o n , member, B oard o f G o v e rn o rs, F e d e r a l R e s e rv e S y ste m ,
W ashington*
The r e p o r t o f th e c o n s u l t a n t s was a c c e p te d by b o th fo rm e r S e c r e t a r y
Snyder and S e c r e t a r y Humphrey*
The A d v iso ry Com m ittee s u g g e s te d t h a t th e s t e p s i t recommended be ta k e n
under th e g e n e r a l s u p e r v is io n o f a C o n tin u in g Com m ittee r e p r e s e n t i n g b o th
incoming and o u tg o in g T re a s u ry o f f i c i a l s and a l s o t h e C o m p tro lle r G e n e ra l o f
the U n ited S t a t e s .
Members o f t h e C o n tin u in g Committee, a g re e d upon t y fo rm e r
S e c r e ta r y Snyder and S e c r e t a r y Humphrey, a r e ; Eugene G* S h r e v e , o f th e B u reau
of E n g ra v in g and p r i n t i n g , r e p r e s e n t i n g fo rm e r S e c r e t a r y S n y d e r; M au rice
Melvin W ashburn, O f f ic e o f th e C o m p tro lle r o f th e C u rre n c y , r e p r e s e n t i n g
S e c r e ta r y Humphrey; G eorge R e e v e s , O ffic© o f th e G e n e ra l C o u n s e l, re p re se n t**
ing M rs. Iv y B ak er P r i e s t , incom ing T r e a s u r e r o f t h e U n ited S t a t e s .
-
2
-
R e p r e s e n t a t i v e s o f th e C o m p tro lle r G e n e ra l o f th e U n ited S t a t e s , as
p a r t o f th e c o n tin u in g a u d it o f T r e a s u r y a c c o u n ts by th e G e n e ra l A cco u n tin g
O f f ic e , w i l l o b se rv e and re v ie w th e a u d it s t o be made i n a c c o rd a n c e w ith
th e A d v iso ry C om m itteef s recom m endation* The C o m p tro lle r G e n e ra l h as d i
re (’ted h i s s t a f f t o c o o p e r a te in e v e r y way w ith t h e incom ing and o u tg o in g
T re a su ry o f f i c i a l s i n c o n n e c tio n w ith th e t r a n s f e r o f a s s e t s .
I n a d d it io n t o s u p e r v is in g th e v e r i f i c a t i o n o f a s s e t s h e ld by th e
Bureau o f t h e M in t, th e T r e a s u r e r o f th e U n ite d S t a t e s and th e D iv is i o n o f
Loans and C u rre n c y , th e C o n tin u in g Com m ittee w i l l ta k e a p p r o p r ia te s t e p s t o
a ssu re i t s e l f o f t h e s u f f i c i e n c y Of th e r e g u l a r (a n d , i f n e c e s s a r y , s p e c i a l )
c o n firm a tio n from a l l F e d e r a l R e se rv e banks o f th e T r e a s u r y b a l a n c e s , i n
clu d in g th e t a x and lo a n a c c o u n t s .
i n th e c o u r s e o f i t s w ork, th e A d v iso ry Com m ittee re v ie w e d a u d it and
c o n tr o l p r o c e d u re s i n p r e s e n t u se by th e T r e a s u r y D ep a rtm e n t, and i n t e r r o g a t e d
re s p o n s ib le o f f i c i a l s w ith r e s p e c t t o th e c h a r a c t e r o f a c c o u n t in g , a u d itin g
and s a fe k e e p in g p r a c t i c e s .
The co m m ittee a l s o c o n f e r r e d w ith o f f i c i a l s o f
th e G en eral A cco u n tin g O f f i c e , and s t a t e d i n i t s r e p o r t t h a t th e GAO " i s
f u ll y s a t i s f i e d w ith r e s p e c t t o th e adequacy and e f f e c t i v e n e s s o f th e i n t e r n a l
c o n tr o l and a c c o u n tin g p ro c e d u re s p r e s e n t l y i n u se by th e T r e a s u r y D ep artm en t"
f o r c o n t r o l l i n g th e money a s s e t s and s e c u r i t i e s i n i t s c u s to d y .
The r e p o r t c o n tin u e d :
"Y o u r com m ittee was im p re sse d w ith th e e v id e n c e o f th e
adequacy and e f f e c t i v e n e s s o f th e a u d it and c o n t r o l m ethods
t h a t a r e b e in g f o llo w e d , m ethods and p r a c t i c e s w hich have r e
s u l t e d from y e a r s o f e x p e r ie n c e and i n t e l l i g e n t p la n n in g . Y ou r
com m ittee h as no r e a s o n t o doubt th e a c c u r a c y o f th e T r e a s u r y ’ s
a cco u n ts,
F u rth e rm o re , we have no re a s o n t o doubt t h a t th e
a s s e t s r e f l e c t e d i n th o s e r e c o r d s a r e i n t a c t .
However, we d e s i r e
t o make c e r t a i n recom m endations f o r augm enting th e r e g u l a r p ro
ce d u re s w ith th e view o f m aking d o u b ly s u re t h a t b o th th e incom ing
and o u tg o in g o f f i c i a l s may j u s t i f i a b l y r e l y on t h e i r a c c u r a c y ."
In m aking i t s recom m endations f o r v e r i f i c a t i o n o f th e g o ld and s i l v e r
a s s e ts i n th e c u s to d y o f th e sev en B ureau o f t h e M int i n s t i t u t i o n s , th e
re p o rt o f th e A d v iso ry Com m ittee s a i d :
"A p p ro x im a te ly 9 7 i p e r c e n t o f th e g o ld and s i l v e r b u l l i o n
in th e s e M int i n s t i t u t i o n s i s h e ld i n com partm ents under j o i n t
se a l.
The c o n t e n t s o f some o f th e s e com partm ents have n o t been
co u n ted f o r a c o n s i d e r a b le p e rio d o f t i m e , a lth o u g h th e s e a l s
have been ch eck ed and exam ined a n n u a lly and, o f c o u r s e , th e
com partm ents a re u n d er what would ap p ear t o be v e r y e f f e c t i v e
g u a rd . We b e l i e v e t h a t i n g e n e r a l th e b u l l i o n un d er j o i n t s e a l
can be a c c e p te d a c c o r d in g t o th e in v e n to r y , b u t we s u g g e s t t h a t to
make d o u b ly s u re o f t h e a c c u r a c y o f th e a u d i t , t h e r e sh o u ld be a
a p o t ch e ck o f th e g o ld b u l l i o n by ( 1 ) making a c t u a l co u n t o f
a p p ro x im a te ly 1 0 p e r c e n t o f th e com partm ents i n w hich th e g o ld i s
4
- 3 •
s t o r e d , ( 2 ) w eigh in g a p p ro x im a te ly 1 0 p e r c e n t o f th e g o ld
in th e co u n te d co m p artm en ts, and ( ^ ) a s s a y in g a m oderate
number o f th e b a r s in each o f such co u n ted co m p artm en ts, th e
e x a c t p e r c e n t a g e s and numbers t o be s p e c i f i e d by th e C o n tin u in g
C om m ittee. The com partm ents sh o u ld th e n be r e s e a l e d a c c o r d in g
t o th e m ethods now i n p r a c t i c e by th e v a r i o u s M ints and o th e r
d e p o sito rie s.
At th e tim e such s p o t ch eck i s made, t h e r e
sh ou ld be p r e s e n t a s a r e p r e s e n t a t i v e o f t h e C o n tin u in g
Com m ittee, a p e rso n d e s ig n a te d by i t ( p o s s i b l y an em ployee o f
th e G e n e ra l A cco u n tin g O f f i c e ) t o o b se rv e th e v e r i f i c a t i o n and
r e p o r t t o th e Committee w ith r e s p e c t t h e r e t o .
,fI t seems t o us t h a t s i l v e r b a r s o r any s u b s t a n t i a l
amount o f s i l v e r c o in un d er s e a l a r e so b u lk y a s t o d is c o u ra g e
t h e f t o f any amount o f im p o rta n ce t o th e T r e a s u r y , and t h a t
th e c o s t o f an a u d i t t h e r e o f would n o t be w a rra n te d #
Conse
q u e n tly , we a r e n o t in c lu d in g in our recom m endations th e same
s o r t o f sp o t ch e ck in g o f th e h o ld in g s o f s i l v e r a s we a r e w ith
re s p e c t to g o l d .” .
In co n clu d in g i t s r e p o r t , th e A d v iso ry Committee s t a t e d :
nWe w ish t o r e i t e r a t e t h a t th ro u g h o u t o u r s t u d i e s we have
been m ost f a v o r a b ly im p ressed by th e s t r i c t a c c o u n tin g and a u d it
p ro c e d u re s in f o r c e in a l l D iv is io n s and B u reau s w ith w hich we
d e a l t and by th e c a p a c i t y o f th e g en tlem en ch a rg e d w ith t h e i r
s u p e r v is io n #
I t would seem t n a t e v e ry f e a s i b l e s a f e g u a r d h as
been throw n around th e T r e a s u r y 1 s a s s e t s .
Our b r o a d e r recom
m en d ation s above a r e made s o l e l y o u t o f an abundance o f c a u tio n
as p ru d en t m easu res d e sig n e d t o p ro v id e co m p lete a s s u r a n c e t o
you w ith r e s p e c t t o th e e x i s t e n c e o f T r e a s u r y a s s e t s and t h e i r
a p p r o p r ia te r e f l e c t i o n by th e T r e a s u r y 1s r e c o r d s , "
oOo
p-r*
• 3 -
W V
to these reservations, all subscriptions will be allotted in fall«
Allotment
notices will be sent out promptly upon allotment«
IV.
1«
PAtKEHT
Payment at par for beads allotted hereunder must be made on or before
February 16, 1953* or on later allotment, and may be made only in Treasury Cer
tificates of Indebtedness of Series 1-1953, maturing February 15, 1953* which
will be accepted at par, and should accompany the subscription«
The full mount
of interest due on the certificates surrendered will be paid to the subscriber
following acceptance of the certificates«
¥«
1«
W
PROVISIONS
As fiscal agents of the United States, Federal Reserve Banks are author
ised and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for bonds allotted, to make delivery of bonds on full-paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
bonds«
2*
The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules end regulations governing the offer
ing, which will be communicated promptly to the Federal Reserve Beaks«
G. I* HUMPHREY,
Secretary of the Treasury«
'- 2 -
rejjfcption prior to maturity*
2.
The income derived from the bonds shell be subject to a U taxes now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supple
mentary thereto*
The bonds shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt from all taxa
tion now or hereafter Imposed on the principal or interest thereof by any Stats,
or any of the possessions of the United States, or by any local taxing authority.
3*
The bonds will be acceptable to secure deposits of public moneys*
4«
Bearer bonds with interest coupons attached, and bonds registered as
to principal and Interest, will be Issued in denominations of $500, $1,000,
$5*000, $10,000, $100,000 and $1,000,000*
Provision will be made for the inter
change of bonds of different denominations and of coupon and registered bonds,
and for the transfer of registered bonde, under rules and regulations prescribed
by the Secretary of the Treasury*
5«
The bonds will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States bonds*
m.
1.
subscription
Ȥ m m m m
Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington*
Banking institutions
generally may submit subscriptions for account of customers, but only the
Federal Reserve Bsnks and the Treasury Department are authorised to act as
official agencies*
2*
The Secretary of the Treasury reserves the right to reject any sub
scription, in whole or in part, to allot less than the amount of bonds applied
for, and to close the books as to any or all subscriptions at any time without
notieef ***d *oy action he may take in these respects shall be final*
Subject
|
**"»¡P
\o
UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURE BONDS OF 1958
Dated and bearing Interest from February 15, 1953
Due December 15» 1958
Interest payable June 15 and December 15
1953
Department Circular No* 920
___
TKEASUKT DEPARTMENT,
Office of the Secretary,
Washington, February 2, 1953*
Fiscal Sendee
Bureau of the Public Debt
I. OFFERING OF BONDS
1.
The Secretary of the Treasury,pursuant to the authority of the second
Liberty Bond Act, as amended, Invitessubscriptions, at par, from the people of
the United States for bonds of the United States, designated 2-1/2 percent
Treasury Bonds of 1958, in exchange for 1-7/8 percent Treasury Certificates of
Indebtedness of Series A-1953» maturing February 15, 1953*
The amount of the
offering under this circular will be limited to the amount of maturing certifi
cates tendered in exchange and accepted*
2.
In addition to the offering under this circular, holders of the matur
ing certificates are offered the privilege of exchanging all or any part of such
certificates for 2-1/4 Percent Treasury Certificates of Indebtedness of Series
A-1954, which offering la set forth in Department Circular No. 919, issued
simultaneously with this circular.
II.
1,
DESCRIPTION OF BONDS
The bonds will be dated February 15» 1953, and w i n bear interest from
that date at the rate of 2-1/2 percent per annum, payable cm a semiannual basis
on June 15 and December 15 in each year until the principal amount becomes paya
ble.
They w i n mature December 15, 1958, and will not be subject to c a n for
VP JP de
8
E
I
theee reeervationa, all eubacrlptione vili be allottad in full»
Àllotrcent notices I
vili ba aant ani proaptly upon aHatieant»
1?.
1#
PATMEIfT
Payment ai par far eartifiaataa allottad hereunder »uat ba nada an or
bafara February 16, 1953, or an baiar allotneni, and nay ba nada only in
Treaeury Certificate® of Indebtedneee of Sariaa 4*1953, waturing Februaiy 15,
1953# vfcleh vili ba aceepted ai par, and ehould accowpany iha eubseriptioa.
The
fall anount of internai dna ou thè certificate® eurrandered vili ba paid folloving accapianea of tha certificatea•
?»
1»
i i w ì
mmmimB
Aa fiaeal agonie of iha Ifciitsd Staiaa, Fadaral Beaerve Banke ara auihor-
ised and requeeted io receive subscriptione, to naka allotmente on tha baeia ani
up to tha amounte indieeted by tha Sacrata?? of tha Traaeury to tha Fadaral Ha*
•arra Banks of tha raapactira Dietriste, to leena allotment notieas, to racelre
paynent for certificate® allottad, to naka delirar? of aartifieatae on full-paid
enhecriptlone allottad, and iha? aay lesua interi» raeaipte pending delirar? of
tha definitire certif icatea.
?»
The Secretar? of tha Traaeur? na? at an? tina, or fro» tina to tino,
praecrlba eupplanantal or anandator? rulae «ad regulationa gorernlng tha offarlag, vhich vili ba eosnnunicatad proroptly to tha Fadaral Beeerre Banka.
0» K* mmPffitET,
Secretar? of thè treaeury.
*
2
-
Of*"
wv
SU
The income derived fro» the certificates shall he subject to all taxes,
eon or hereafter imposed under the Internal Revenue Code, or latte amendatory or
supplementary thereto»
The certificates shall be subject to estato, Inheritance!
gift or other excise taxes, whether Federal or State, but shall be exempt from
all taxation no* or hereafter Imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local taxing
authority»
3«
The certificates will be acceptable to secure deposits of public money«.
They will not be acceptable in payment of taxes.
It. Bearer certificates will be issued in denominations of $1,000, $5,000,
$10,000, $100,000 and $1,000,000»
The certificates will not be issued in regis
tered form»
5»
The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States cer
tificates»
III.
1»
SUBSCRIPTION AND ALLOmjfT
Subscriptions will be received at the Federal Reserve Banks and Branchs«
and at the Treasury Department, Washington.
Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorised to act as official agencies»
2»
The Secretary of the Treasury reserves ths right to reject any subscrip*
tion, in whole or in part, to allot less than the amount of certificates applied
for, and to close the books as to any or all subscriptions at any time without
notice! and any action he may take in these respects shall be final»
Subject to
UNITED STATES OF AMERICA
t - 8 A PERCENT TSEASURT CERTIFICATES OF H83MT1DN!$S OF SERIES A~155fc
D«t«cS and bearing interest from February 15, 1553
Urns February 15,
IfSk
wmmx mu,stumst,
1^53
Department Circular So* 515
Office of tho Secretary,
Washington, February 2, 1553,
Fiscal Service
Bureau of the Public M l
I. 0FIES2SS OF CESTXFICA1ES
1*
The Secretary of the Treasury, pursuant to the authority of the Second
liberty Bond Act, as amended, invites subscriptions, at par, from ths people of
the United States for certificates of indebtedness of the United Statee, desig
nated 2-1/lt percent Treasury Certificates of Indebtedness of Series A-155U, in
exchange for 1-7/8 percent Treasury Certificates of Indebtedness
A-1953, maturing February 35, 1953.
of Series
The amount of the offering under this cir
cular will be limited to the amount of maturing certificate# tendered in exchange
and accepted,
2*
In addition to the offering under this cireular, holders of the maturing
certificates are offered the privilege of exchanging all or any part of such cer
tificates for 2-1/2 percent Treasury Bonis of 1558, which offering is set forth
in Department Circular So* 520, Issued simultaneously with m s
II.
!•
circular,
DESCRIPTION OP CERTIFICATES
the certificates will be dated February 15, 1553, and will bear interest
from that date at the rate of 2-l/it percent per annum, payable with the principal
at maturity on February 15, 155fc.
tion prior to maturity.
They will not be subject to call for redemp
RELEASE, MORNING NEWSPAPERS,
Monday» February 2, 1953«
Secretary of the Treasury Humphrey today announced the details of the offer
ing, through the Federal Reserve Banks, of 2*1/2* percent Treasury Certificates of
Indebtedness of Series A-19$2* and 2-1/2 percent Treasury Bonds of 1958, open on
an exchange basis, par for par, to holders of 1-7/8 percent Treasury Certificates
of Indebtedness of Series A-1953, maturing February 15, 1953* in the amount of
18,867,962,000* Cash subscriptions will not be received.
The certificates now offered will be dated February 15, 1953, and will bear
Interest from that date at the rate of 2-1/1* percent per annua, payable with the
principal at maturity on February 15, 1952*. They will be issued in bearer fora
only, in denominations of $1,000, $5,000, $10,000, #100,000 and $1,000,000*
The bonds now offered will be dated February 15, 1953, and will bear in
terest from that date at the rate of 2*1/2 pare «it per annum, payable on a ««siannual basis on June 15 and December 15 in each year until the principal amount
becomes payable. They will mature December 15, 1958, and will not be subject to
call for redemption prior to maturity. Bearer bonds with interest coupons
attached and bonds registered as to principal and interest will be Issued in
denominations of $500, #1,000, $5,000, #10,000, 1100,000 and 11,000,000.
Pursuant to the provisions of the Public Debt Act of 192a, as amended,
interest upon the securities now offered shall not have any exemption, as such,
under the Internal Revenue Code, or laws amendatory or supplementary thereto.
The full provisions relating to taxability are set forth in the official circu
lars released today.
Subscriptions for both issues will be received at the Federal Reserve Banks
and Branches, and at the Treasury Department, Washington. Subscriptions for the
new securities should be accompanied by the certificates to be exchanged.
The subscription books will close for the receipt of all subscriptions to
both issues at the close of business Thursday, February 5.
Subscriptions addressed to a Federal Reserve Bank or Branch, or to the
Treasury Department, and placed in the mail before midnight February 5, will be
considered as having been entered before the close of the subscription books.
The texts of the official circulars follows
TREA SU RY
D EPA RTM EN T
Information Service
RELEASE MORNING'NEWSPAPERS,
Monday, February 2, 1953-
WASHINGTON, D .C.
-
H-12
4
Secretary of the Treasury Humphrey today announced the details
of the offering, through the Federal Reserve Banks, of 2-1/4 percent
Treasury Certificates of Indebtedness of Series A-1954 and 2-1/2
percent Treasury Bonds of 1958, open on an exchange basis, par
for par, to holders of 1-7/8 percent Treasury Certificates of
Indebtedness of Series A-1953, maturing February 15 , 1953, in the
amount of $8,867,962,000.
Cash subscriptions will not be
received.
The certificates now offered will be dated February 15, 1953,
and will bear interest from that date at the rate of 2 -1/4 percent
per annum, payable with the principal at maturity on February 15,
1954. They will be issued in bearer form only, in denominations
of $1 ,000, $5 ,000, $ 10 ,000, $ 100,000 and $ 1 ,000 ,000 .
The bonds now offered will be dated February 15 , 1953, and will
bear interest from that date at the rate of 2 -1/2 percent per annum,
payable on a semi-annual basis on June 15 and December 15 in each
year until the principal amount becomes payable.
They will mature
December 15, 1958, and will not be subject to call for redemption
prior to maturity.
Bearer bonds with interest coupons attached
and bonds registered as to principal and interest will be issued
in denominations of $500 , $ 1 ,000, $5 ,000 , $ 10 ,000, $ 100,000 and
$1,0 0 0 ,0 0 0 .
Pursuant to the provisions of the Public Debt Act of 1941, as
jamended, interest upon the securities now offered shall not have
|any exemption, as such, under the Internal Revenue Code, or laws
amendatory or supplementary thereto.
The full provisions relating
/o taxability are set forth in the official circulars released
today.
Subscriptions for both issues
^serve Banks and Branches, and at
Washington.
Subscriptions for the
accompanied by the certificates to
will be received at the Federal
the Treasury Department,
new securities should be
be exchanged.
T^e subscription books will close for the receipt of all
S
r
Pti°nS
t0
b°th issues at the close of business Thursday,
or f Subscriptions addressed to a Federal Reserve Bank or Branch,
mirt ? ihe Treasury Department, and placed in the mail before
anight February 5 , will be considered as having been entered
j-ore the close of the subscription books.
The texts 'of the official circulars follows
UNITED STATES OF AMERICA
2 -1/1* PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES A -195U
Dated and bearing interest from February 1 5 * 1 9 5 3
Due February 1 5 * 1951*
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, February 2 , 1 9 5 3 #
1953
Department C i r c u l a r No, 9 1 9
Fiscal Service
Bureau of the Public Debt
I*
OFFERING OF CERTIFICATES
1 A The S e c r e t a r y o f t h e T r e a s u r y , p u rs u a n t t o t h e a u t h o r i t y o f th e Second
L ib e rty Bond A c t , a s amended, i n v i t e s s u b s c r i p t i o n s , a t p a r , from t h e p e o p le o f
the U n ited S t a t e s f o r c e r t i f i c a t e s o f in d e b te d n e s s o f t h e U n ite d S t a t e s , d e s i g
nated 2 “l/l * 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 In d e b te d n e ss o f S e r i e s A -1951*, i n
exchange f o r 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 In d e b te d n e ss o f S e r i e s
A-1 9 5 3 , m a tu rin g F e b ru a ry 1 5 , 1 9 5 3 « The amount o f t h e o f f e r i n g u n d er t h i s c i r
c u la r w i l l be l i m i t e d t o th e amount o f m a tu rin g c e r t i f i c a t e s te n d e re d i n exch an g e
and accepted®
2« In a d d i t i o n t o t h e o f f e r i n g under t h i s c i r c u l a r , h o ld e r s o f t h e m a tu rin g
c e r t i f i c a t e s a r e o f f e r e d t h e p r i v i l e g e o f e x ch a n g in g a l l o r any p a r t o f such c e r
t i f i c a t e s f o r 2-1/2 p e r c e n t T r e a s u r y Bonds o f 1 9 5 8 , w hich o f f e r i n g i s s e t f o r t h
in Departm ent C i r c u l a r No® 920, is s u e d s im u lta n e o u s ly w ith t h i s c i r c u l a r ,
II,
DESCRIPTION OF CERTIFICATES
1« The c e r t i f i c a t e s w i l l be d a te d F e b ru a ry 1 5 * 1 9 5 3 * and w i l l b e a r i n t e r e s t
from t h a t d a te a t t h e r a t e o f
p e r c e n t p e r annum, p a y a b le w ith th e p r i n c i p a l
a t m a tu r ity on F e b ru a ry 1 5 , 19 5 U , They w i l l n o t be s u b j e c t t o c a l l f o r redem p
tio n p r i o r t o m a tu r ity »
2-lA
2« The incom e d e r iv e d from th e c e r t i f i c a t e s s h a l l be s u b j e c t t o a l l t a x e s ,
now o r h e r e a f t e r im posed u n d er t h e I n t e r n a l Revenue C ode, o r law s am en d atory o r
supplem entary th e re to ®
The c e r t i f i c a t e s s h a l l be 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 or o th 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 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 im posed 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 th e p o s s e s s io n s o f t h 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
a u th o r ity *
3« The c e r t i f i c a t e s w i l l b e a c c e p t a b l e t o s e c u r e d e p o s i t s o f p u b lic moneys*
They w i l l n o t be a c c e p t a b l e i n paym ent o f t a x e s *
ii*
B e a r e r c e r t i f i c a t e ^ w i l l b e is s u e d i n d en o m in atio n s o f $ 1,000, $5*000,
The c e r t i f i c a t e s w i l l n o t be is s u e d in r e g i s
te r e d form*
$10,000, $100,000 and $1,000,000»
-
2
-
5* The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States cer
tificates*
III*
SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington* Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorized to act as official agencies*
2» The Secretary of the Treasury reserves the right to reject any subscrip
tion, in whole or in part, to allot less than the amount of certificates applied
for, and to close the books as to any or all subscriptions at any time without
notice; and any action he may take in these respects shall be final. Subject to
these reservations, all subscriptions will be allotted in full* Allotment notices
will be sent out promptly upon allotment,
IV*
PAYMENT
'
1* Payment at par for certificates allotted hereunder must be made on or
before February 16, 195>3* or on later allotment, and may be made only in
Treasury Certificates of Indebtedness of Series A-19f?3* maturing February 15,
19.93, which will be accepted at par, and should accompany the subscription# The
full amount of interest due on the certificates surrendered will be paid follow
ing 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
up to the amounts indicated by the Secretary of the Treasury to the Federal Re
serve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery of
the definitive certificates«
2* The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, which will be communicated promptly to the Federal Reserve Banks*
G* M. HUMPHREY,
Secretary of the Treasury*
UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY BONDS OF 1958
'
t Ì +: r
i
l: •
Dhted and bearing interest from Februaiy 15, 1953
Due December 15, 1958
Interest payable June 15 and December 15
TREASURY DEPARTMENT ,
Office of the Secretary,
Washington, Februaiy 2, 1953
1953
Department Circular No* 920
Fiscal Service
Bureau of the Public Debt
I*
OFFERING OF BONDS
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 bonds of the United States, designated
2«l/2 percent Treasury Bonds of 1958, in exchange for 1-7/8 percent
Treasury Certificates of Indebtedness of Series A-1953, maturing February I5j
1953« The amount of the offering under this circular will be limited to the
amount of maturing certificates tendered in exchange and accepted*
2« In addition to the offering under this circular, holders of the
maturing certificates are offered the privilege of exchanging all or any
part of such certificates for 2«1/h percent Treasury Certificates of
Indebtedness of Series A^l95U, which offering is set forth in Department
Circular No« 919, issued simultaneously with this circular«
II*
DESCRIPTION OF BONDS
Its The bonds will be dated February 15, 1953, and will bear interest
from that date at the rate of 2-1/2 percent per annum, payable on a serai-?
annual basis on June 15 and December 15 in each year until the principal
amount becomes payable* They will mature December 15, 1958, and will not
be subject to call for redemption prior to maturity«
2« The income derived from the bonds shall be subject to all taxes now
or hereafter imposed under the Internal Revenue Code, or laws amendatory or
supplementary thereto* The bonds shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but. shall be exempt
from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United States, or by
any local taxing authority*
3*
The bonds will be acceptable to secure deposits of public moneys*
m 2 •»
h* Bearer bonds with interest coupons attached, and bonds registered
as to principal and interest, will be issued in denominations of $f>00,
$1,000, $>£,000, $10,000, $100,000 and $1,000,000* Provision will be made
for^the interchange of bonds of different denominations and of coupon and
registered bonds, and for the transfer of registered bonds, under rules and
regulations prescribed by the Secretary of the Treasury.
£p The bonas will be subject to the general regulations of the
Treasury-Department, now or hereafter prescribed, governing United States
bonds.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington* Banking institutions
generally may submit subscriptions for account of customers, but only the
Federal Reserve Banks and the Treasury Department are authorized to act as
official agencies.
2.
The Secretary of the Treasury reserves the right to reject any sub
scription, in whole or in part, to allot less than the amount of bonds
applied for, and to close the books as to any or all subscriptions at any
time without notice $ and any action he may take in these respects shall be
final. Subject to these reservations, all subscriptions will be allotted in
^ull» Allotment notices will be sent out promptly upon allotment.:
IV.
PAYMENT
1. Payment at par for bonds allotted hereunder must be made on or before
February 16, 195>3> or on later allotment, and may be made only in Treasury
Certificates of Indebtedness of Series A-1953, maturing Feoruaiy l£, 19<3, 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
As fiscal agents of the united States, Federal Reserve Banks are
authorised and requested to receive subscriptions, to make allotments on the
oasis and ap to the amounts indicated by the Secretary of the Treasury to
the Federal Reserve Banks of the respective Districts, to issue allotment
notices, to receive payment for bonds allotted, to make delivery of bonds on
*
subscriptions allotted, and they may issue interim receipts pend
ing delivery of the definitive bonds.
' 2?, rhe Secretary of the Treasury may at any time, or from time to time,
offSC. e supplemental or amendatory rules and regulations governing the
liering, which will be communicated promptly to the Federal Reserve Banks.
G. M.- HUMPHREY,
Secretary of the Treasury.
He is a brigadier general in the U.S. Army Reserve.
Mr. Tuttle was born in Pasadena, California on July
17, 1897.
He was graduated from
Connell University
wktoh in 1918 and received his law degree from the
Connell University Law School in 1923#
3
,y^~\Jw
Secretary Humphrey today administered the oath of
office to Elbert P. Tuttle
as General Counsel of the
Treasury Department*
Mr* Tuttle was nominated by President Eisenhower
on January 22, 1958, and confirmed by the °enate on
January 2 H , 1953.
As the chief legal officer of the Treasury Department,
the General Counsel has supervision over and coordinates the
work of the Legal Division* He is directly responsible to
the Secretary
of tbs Treasury, and performs such additional
duties as are assigned by the Secretary or required by law.
Mr* Tuttle is a resident of Atlanta, Georgia. He was
a member of the law firm of Sutherland, Tuttle and Brennan,
with officers in Atlanta and Washington, until he was
designated to be General Counsel of the Treasury Department
in the new Administration*
Me is a member of the American Bar Association, and was
President of the Georgia Bar Association in 194?-48. In
1949 he was President of the Atlanta Chamber of Commerce.
Mr. Tuttle was in the military service for five years
during World War II* He entered on active duty as a major
in the national Guard , and had service in the Pacific theater
TREA SU RY
D EPARTM EN T
Information Service
WASHINGTON, D .C.
IMMEDIATE RELEASE,
Friday,January 3 0 * 195 3 .
H -13
Secretary Humphrey today administered the oath of office to
Elbert P. Tuttle as General Counsel of the Treasury Department.
Mr. Tuttle was nominated by President Eisenhower on
January 22 , 1953 , and confirmed by the Senate on January 27 , J-9 5 3 .
As the chief legal officer of the Treasury Department, the
General Counsel has supervision over and coordinates the work of
the Legal Division.
He is directly responsible to the Secretary
of the Treasury, and performs such additional duties as are
assigned by the Secretary or required by law,
Mr. Tuttle is a resident of Atlanta, Georgia.
He was a member
of the law firm of Sutherland, Tuttle and Brennan, with offices
in Atlanta and Washington, until he was designated to be General
Counsel of the Treasury Department in the new Administration.
He is a member of the American Bar Association, and was
President of the Atlanta Bar Association in 19^7-^8.
In 19^9 he
was President of the Atlanta Chamber of Commerce.
Mr. Tuttle was in the military service for five years during
World War II.
He entered on active duty as a major in the
National Guard, and had service in the Pacific theater.
He is
a brigadier general in the U. S. Army Reserve.
Mr. Tuttle was b o r n in Pasadena, California, on Jul y 17 , 1897 ,
He was graduated fr o m Cornell University in 1918 and received his
law degree fro m the Cornell University Law School in 1923 .
oOo
/
CP
W vp
m im M MORNING HSWSPAPE&S,
Tuesday, February 3» 1953»
The Secretary of the Treasury announced last evening that the tenders for
$1,300,000,000, or thereabouts, of 91-day Treasury bills t© be dated February $ and to
mature May 7, 1953, which were offered on January 29, were opened at the Federal Re
serve Banks on February 2«
The details of this issue are as follows*
Total ADDlied for ** $2,133,053,000
§2 | a c S t ^ d
- 1§3 0 0 , ^ 0 0 0
Average price
(includes $217,012,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99M l Equivalent rate of discount approx. 2.031$ per annua
p.ne» of accepted competitive bid»«
(Excepting two tenders totaling $300,000)
_ 99*525 Equivalent rate of discount approx. 1*879$ par annua
_
f$ M t
«
«
»
•
a
t * 9 li9 $
*
*
(67 percent of the amount bid for at the low price was accepted)
Federal Reserve
District_____
Total
Applied for
Boston
|
Hew lark
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
22,98U,OQO
1,¿0*3,673,000
3U.2S2.000
- total
Accepted
$
19,U8U,000
753.683.000
18 ,252,000
72,008,000
59.038.000
15 ,866,000
28 ,738,000
250,291,000
U9,060,000
10,386,000
53.729.000
66.626.000
iu,701,000
28.272.000
189.301.000
U0,9U7,000
.
10 386.000
U6,879,000
UU,976,000
8S.UUS.000
7U.U85,ooo
$2,133,QS8,000
$1,300,UQU,000
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON,
RELEASE MORNING NEWSPAPERS,
Tuesday, February 3, 1953.
H -14
The Secretary of the Treasury announced last evening that the
tenders for $1,300*000,000, or thereabouts, of 91-day Treasury bills
to be dated February 5 and to mature May 7* 1953, which were offered
on January 29, were opened at the Federal Reserve Banks on February 2.
The details of this issue are as follows:
Total applied for - $2,133,058,000
Total accepted
- 1,300,404,000 (includes $217,012,000 entered
on a non-competitive basis
and accepted in full at the
average price shown below)
Average price
- 9 9 .4 8 7 Equivalent rate of discount approx.
2.031$ p e r annum
Range of accepted competitive bids:
(67
(Excepting two tenders
totaling $300,000)
99.525 Equivalent rate of discount approx.
1 .879 $ per annum
Kigh
-
Low
- 99.482 Equivalent rate of discount approx.
2 .049 $ p er annum
percent of the amount bid for at the low price was accepted)
Federal Reserve
District
[Boston
[New York
[Philadelphia
[Cleveland
Total
Applied for
$
[Richmond
[Atlanta
[Chicago
[St. Louis
Minneapolis
Kansas City
pallas
pan Francisco
2 2 , 9 8 4 ,0 0 0
1 . 4 4 3 , 6 7 3 ,0 0 0
3 4 . 2 5 2 .0 0 0
7 2 . 0 0 8 .0 0 0
1 5 . 8 6 6 .0 0 0
2 8 . 7 3 8 .0 0 0
2 5 0 , 2 9 1 ,0 0 0
4 9 . 0 6 0 .0 0 0
10 . 386.000
5 3 . 7 2 9 .0 0 0
$
19,484,000
753.683.000
18,252,000
59.038.000
14.701.000
28.272.000
189.301.000
40.947.000
10.386.000
85 ,445 ,000
46.879.000
44.976.000
74.485.000
$2,133,058,000
$1,300,404,000
66.626.000
TOTAL
Total
Accepted
0O0
IMMEDIATE RELEASE
February 3, 1953
The Bureau of Customs announced today that 3*125,332
pounds of cotton having a staple length of 1-1/8 inches
or more but less than l-ll/l6 inches were presented for
entry at the opening of the yearly global quota of U5*656*U20
pounds on February 2, 1953* at 12r00 noon, eastern standard
time, or its equivalent in other time zones*
The total amounts presented in the various collection
districts were authorized release for consumption*
All of the above-mentioned cotton is of Egyptian origin
with the exception of 10,020 pounds which is of Peruvian
origin*
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON, D .C.
IMMEDIATE RELEASE,
Tuesday, February 3, 1 9 5 3 »
H-15
The Bureau of Customs announced today that
3,125,332 pounds of cotton having a staple length
of 1-1/8 inches or more but less than 1 -11/16
inches were presented for entry at the opening of
the yearly global quota of 45,656,420 pounds on
February 2, 1953, at 12:00 noon, eastern standard
time, or Its equivalent in other time zones.
The total amôunts presented in the various
collection districts were authorized release for
consumption.
All of the above-mentioned cotton is of
Egyptian origin with the exception of 10,020 pounds
which is of Peruvian origin.
0O0
X
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 er
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 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 th e
p o s s e s s io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s a r e
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s
bZ
and 1 1 7 ( 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 1 1 5 o f th e Revenue A ct o f l ? U l , th e amount o f d is c o u n t
a t w h ich b i l l s is s u e d h e re u n d e r a r e s o ld s h a l l n o t be c o n s id e re d to
a c c r u e u n t i l such b i l l s
s h a l l be s o l d , redeem ed o r o th e rw is e d is p o s e d o f ,
and su ch b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
A cco rd
in s u r a n c e com p an ies)
is s u e d h e re u n d e r need in c lu d e in 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
b etw een th e p r i c e p a id f o 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 seq u en 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 em p tio n a t m a t u r i t y d u rin g th e t a x a b l e y e a r f o r w hich 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 ent C i r c u l a r No. i|l8, a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T r e a s u r y b i l l s and g o v ern th e c o n d it io n s o f
th e ir is s u e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
R e se rv e Bank o r B ra n ch .
-
d e a l e r s i n in v e stm e n t s e c u r i t i e s .
2
-
T enders from o t h e r s m ust be accom panied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s t h e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y t h 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 range
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 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 t o a c c e p t o r r e j e c t any o r a l l t e n d e r s ,
h i s a c t i o n in any such r e s p e c t s h a l l be f i n a l .
in w hole o r in p a r t , and
S u b je 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 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 i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th r e e
S e ttle m e n t f o r a c c e p te d te 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 co m p leted a t th e F e d e r a l Re
s e r v e Bank on
February 1 3 . 1 9 5 3
m
, in c a s h o r o t h e r im m e d ia te ly a v a i l a b l e
"185c
funds o r in a l i k e f a c e amount o f T r e a s u r y b i l l s m a tu rin g
February 13. 1953 .'
IBS
Cash and exch an g e t e n d e r s w i l l r e c e i v e e q u al 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 rin g b i l l s
a c c e p te d in exch an g e and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem p tio n ,
a s s u c h , and l o s s from th 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 re a s u ry 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 s u c h , un d er 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 en tary t h e r e t o ,^
The b i l l s s h a l l be
TtwwMfflnnr
mmK
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 5. 1953
The Secretary of the Treasury, by this public notice, invites tenders
fcr $1,500,000,000
, or thereabouts, of
90
-day Treasury bills, for
cash and in exchange for Treasury bills maturing
February 13, 1953 , in
'"TCCX1
... ....
the amount of $
1,500,852,000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
May 11*^1953
terest.
______ j
The bills
February 13, 1953
, and will mature
535
'
when the face amount will be payable without in
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time, Monday r February 9. 1953.
PpSp*P*
Tenders will not be received at the Treasury Department, Washington. Each
tender must be fo> an even multiple of $1,000, and in the case of competi
t i v e te n d e r s th e p r i c e o f f e r e d m ust be e x p re 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 t h r e e 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 se d .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l en v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks o r Branches
on a p p l i c a t i o n t h e r e f o r .
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
TREASU RY
D EPARTM EN T
Information Service
RELEASE MORNING NEWSPAPERS,:
Thursday, February 5, 1953*
WASHINGTON, D.C.
H -as
The Secretary of. the T r e a s u r y ,. b y this public, notice, invites
I tenders for $1,500,000,000/ or thereabouts, of 90 -day Treasury bills,.-.
Ifor cash and. in exchange f or Treasury bills mat u r i n g February 13 , 1953 ,
|in the amount of $1,500,852,000, to be issued on a discount basis ;
I under competitive and non-competitive bidding as hereinaf ter proyidèd.
■The bills of this series will be dated February 13 , 1953 * and will.
■ mature May 1 4 ,; 1953 , when the face amount will be payable without
■interest/ They will be issued in bearer, form only, and in v;
^
■ 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
Iup to the closing hour, two o 'clock p . m ., Eastern Standard time,
I Monday, February 9 , 1953 « Tenders will not be received at the
■ Treasury Department, Washington.
Each tender must be *fcran even
■multiple of $ 1 ,000, and in the case of competitive tenders the price
I offered must be expressed on the basis of 100, with, not, more than
I three decimals, e . g . , 9 9 /9 2 5 . Fractions may not be used. .; .It is ,
I urged that tenders be made on the printed forms and forwarded in .the
I special envelopes which will be supplied by Federal Reserve Banks or
■ Branches on application therefor.
.
Others than banking institutions will not be permitted tp submit
I tenders except for their own account. Tenders will be received without
■ deposit from incorporated banks and trust companies and from responsi
b l e and recognized-dealers in investment securities. Tenders from
I others must be accompanied by. payment of 2 percent of the face amount
I of Treasury bills applied for, unless, the tenders are accompanied by
I an express guaranty of payment by an..,incorporated bank or trust
I company.
Immediately after the closing hour, tenders will be opened at the
I Federal Reserve Banks and Branches, following which public announce
m e n t will be made by the Secretary of the Treasury of the amount and
■ price range of accepted bids.
Those submitting tenders will be
■ advised of the acceptance or rejection thereof.
The Secretary of the
■ Treasury expressly reserves the right to accept or reject any or all
B tenders, in whole or in part, and his action in any such respect shall
be final. Subject to these reservations, non-competitive tenders for
■ $200,000 or less without stated price from any one bidder will be
I accepted in full at the average price (in three decimals) of accepted
I
competitive bids.
Settlement for accepted tenders in accordance Kith ^1
the bids must be made or completed at the Federal Reserve Bank on
February 13, 1953, in cash or other immediately available funds or
in a like face amount of Treasury bills maturing February^l^, £*»53.
Cash and exchange tenders will receive equal treatment. ■.Cash .
adjustments will be made for -differences between the par^value oi
maturing bills accepted in exchange and the issue price of the new
biHs.
_
•' -:
^
The 'income derived., from Treasury bills, whether interest or gain
from the sale-'or ether -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 RevenueCode,, or laws amendatory or supplementary^.thereto.
The. bills shall.be subject to estate, inheritance, gxxt or
other excise taxes, whether Federal or State, but shall be^exempt from
all taxation now. or hereafter imposed on the principal o r i n t e r e s t
thereof by any State, or any of the possessions of the United States,
or by any locll taxing authority.
For purposes of taxation the amount
of discount, at, which Treasury bills are originally s
o
l
d
. .
United'States,shall be considered to be interest.
Under.Sections 42
and l*!7 (a V (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 s o l d ‘Shall not be considered to
accrue Until, such bills shall be sold, redeemed or otherwise ^ -'
disoosed of and such bills are excluded from consideration a?
capital assets.:. Accordingly, the owner of 'freasury bills, pother than
life insurance,-companies) -issued hereunder neea include
„ .
income tax return only the difference between the price paia for such
bills, whether on original issue or on subsequent purchase, .^hd^the
amount actually, received either upon sale or
y
during the taxable^ y e a r ;for which the return is m a d e , as ordinary,
gain or. I q .
'
s s ..
i
,•
^
^
-v;-'
Treasury Department Circular No. 4l8, as amended^ and this
notice, prescribe ..the terms of the Treasury bills and govern^thq^
conditions of'their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
3
produced elsewhere 'than In Communist> China* Relatively few licenses
have been granted because importers have found it difficult to
advance satisfactory proof that specific merchandise of Chinese
type offered for importation is not of Communist Chinese origin*
The certification agreement announced today was adopted by the
Governments of the United States and China to meet this problem. The
actual operation of this certification system will be a matter of
continuing close consultation between the Governments of the United
States and China*
Persons who desire to import from Formosa any commodity to
which the certification procedure applies may file applications for
this purpose on Form TFAC-1 with the Federal Reserve Bank of New
York setting forth the product to be imported, the purchase price,
and the names and addresses of all persons who it is contemplated
will be involved as sellers, shippers, agents, or intermediaries
of any sort* licenses granted upon such applications will authorize
the importation on condition that the importer presents to the
Collector of Customs at the time of entry an appropriate certificate
of origin issued by the Chinese Ministry of Economic Affairs on
Formosa under the new arrangements*
Applications may also be filed on Form TFAC-1 with the Federal
Reserve Bank of New York for the release from Customs custody of
merchandise of Formosan origin now in Customs custody in the United
States. Such applications should describe the merchandise and give
the port of entry and must be accompanied by an appropriate letter
from the Chinese Ministry of Economic Affairs on Formosa in support
of the application for release of the particular shipment. These
support letters will attest that the merchandise involved is not of
Communist Chinese origin and will be issued by the Ministry of
Economic Affairs only with respect to those kinds of products to
which the certification procedure applies at the time of issuance.
In cases where the Government of China authorities on Formosa
are not able to certify a particular commodity, the procedure will
be the same as heretofore, namely, applicants for importation
licenses will be required to submit to the Treasury full documentary
proof that the goods are not of Communist Chinese origin.
Similar agreements with the Governments of Hong Kong and
Japan were recently announced. Discussions along the same lines
are also currently in progress with other governments.
The Treasury Department toda^zannounced that an agreement has
been reached with the Chinese Government in Formosa to facilitate
the export of goods of legitimate Formosan origin to the United
States and at the same time prevent Communist Chinese exports from
entering the United States disguised as products of Formosa* This
agreement contemplates the issuance by the Chinese Government of
certificates of origin which will permit the importation into the
United States of goods of Chinese type produced on Formosa, which
are subject to the Foreign Assets Control Regulations of the
Treasury Department*
While the Government of China authorities on Formosa are
prepared at present to issue certificates of origin only with
respect to water chestnuts and seacgrass squares, it is expected
that in the near future they will be prepared to certify other
commodities of Chinese type as being of Formosan origin.
The basic purpose of the Foreign Assets Control is to prevent
Communist China and North Korea from obtaining foreign exchange
with which to further their aggression in Korea. On December 16,
19^0, following the unprovoked aggression by the Chinese Communists
in Korea, the United States Government, in support of the objectives
of the United Nations* action in Korea, announced measures designed
to place under control all economic relations with Communist China
in order that the Chinese Communists should be denied access to
United States supplies or assets in the United States* An essential
part of this program was the issuance by the United States Treasury
Department, under the Trading with the Enemy Act, of the Foreign
Assets Control Regulations of December 17, 19^0, which forbade all
trade and financial transactions involving the Communist Chinese
and North Korean regimes and their nationals by persons subject to
the jurisdiction of the United States unless Treasury approval was
obtained*
From time to time, amendments and interpretations of the
Foreign Assets Control Regulations have been promulgated in an
effort to achieve maximum effectiveness while producing the minimum
of interference with normal trade practices of Free World countries*
Under the Regulations, licenses are now required for the importation
of merchandise of Chinese type even when it is alleged to have been
t r e a s u r y
d e p a r t m e n t
WASHINGTON, D .C.
Information Service
GO
immediate r e l e a s e ,
Thursday. February 5*
.953.
H-17
The Treasury Department today announced that an agrément has
been reached with the Chinese Government in Formosa to facilitate
the export of goods of legitimate Formosan_origin to the United
States and at the same time prevent Communist Chinese exports rom
This
entering the United States disguised as products of Formosa,
agreement contemplates the issuance by the Chinese Government of
certificates of origin Which will permit the importation into the
■ United States of goods of Chinese type produced on Formosa, which
W a r e subject to the Foreign Assets Control Regulations of the Treasury
|Department.
While the Government of China authorities on Formosa are
prepared at present to issue certificates of origin only with respect
to water chestnuts and seagrass squares, it is expected that in the
near future they will be prepared to certify other commodities of
Chinese type as being of Formosan origin.
The basic purpose of the Foreign Assets Control is to prevent
Communist China and North Korea from obtaining foreign exchange
with which to further their aggression in Korea.
On December io,
1950, following the unprovoked aggression by the Chinese Communists
in"Korea, the United States Government, in support of the objectives
of the United Nations’ action in Korea, announced measures designed
to place under control all economic relations with Communist China
in order that the Chinese Communists should be denied access to
United States supplies or assets in the United States.
An essential
part of this program was the issuance by the United States Treasury
Department, under the Trading with the Enemy.Act, of the Foreign
Assets Control Regulations of December 1 J } 1950.» which forbade all
[trade and financial transactions involving the Communist Chinese
and North Korean regimes and their nationals by persons subject to
the jurisdiction of the United States unless Treasury approval was
[obtained.
.
From time to time, amendments and interpretations of the
[Foreign Assets Control Regulations have been promulgated in an
[effort to achieve maximum effectiveness while producing the minimum
of interference with normal trade practices of Free World countries.
[Under the Regulations, licenses are now required for the importation
■of merchandise of Chinese type even when it is alleged to have been
(produced elsewhere than in Communist China.
Relatively few licenses
[have been granted because importers have found it difficult to
[advance satisfactory proof that specific merchandise of Chinese
type offered for importation is not of Communist Chinese origin.
Cl
-
2
-
The certification agreement announced today wgts adopted by the
Governments of the United States and China to meet this problem.
The
actual operation of this certification system will be a matter of
continuing close consultation between the Governments of the
United States and China.
Persons who desire to import from Formosa any commodity to
which the certification procedure applies may file applications for
this purpose on Form TFAC-1 with the Federal Reserve Bank of
New York setting forth the product to be imported, the purchase price,
and the names and addresses of all persons who it is contemplated
will be involved as sellers, shippers, agents, or intermediaries
of any sort.
Licenses granted upon such applications will authorize
the importation on condition that the importer presents to the
Collector of Customs at the time of entry an appropriate certificate
of origin issued by the Chinese Ministry of Economic Affairs on
Formosa under the new arrangements.
Applications may also be filed on Form TFAC-1 with the Federal
Reserve Bank of New York for the release from Customs custody of
merchandise of Formosan origin now in Customs custody in the United
States. Such applications should describe the merchandise and give
the port of entry and must be accompanied by an appropriate letter
from the Chinese Ministry of Economic Affairs on Formosa irj support
of the application for release of the particular shipment.
These
support letters will attest that the merchandise involved is not of
Communist Chinese origin and will be issued by the Ministry of
Economic Affairs only with respect to those kinds of products to
which the certification procedure applies at the time of issuance.
In cases where the Government of China authorities on Formosa
are not able to certify a particular commodity, the procedure will
be the same as heretofore, namely, applicants for importation
licenses will be required to submit to the Treasury full documentary
proof that the goods are not of Communist Chinese origin.
Similar agreements with the Governments of Hong Kong and
Japan were recently announced.
Discussions along the same lines
are also currently in progress with other governments.
0 O0
-
!>
end of January, 1953,
2
-
billion, or 7%, were being retained by their
owners under the automatic extension privilege, to increase in cash
value each six months at a level rate of 3%, compounded semi-annually,
for up to ten additional years*
#
** —^^Defense Bonds màm ijn^J^fîuary, totallaSÇ*$f>Oii,000,000,
pv^UX. bS*~^ ^
^i*we li$ above thoslTt^
, Redemptions of all series^were
XJLk^-u*~~rl ^
w*«^.
12%
lower*/v. Total sales p^'all series exc’eedej^redemptioris of matured
S'->r
and unmatured bonds' by $69 million*
/ ’
—
compared to th^se oj
E Bopd'sales of $397,000,000 were up
«7*
p Redemptions of matured and unmatured E bonds were down 11$, to
$361, 000, 000*,
Y '/¿¿t 060, ¿rrp <-
- The difference between the 9$ gain in E bond sales and the 11$
gain for all four series was accounted for by sales of $lj.3,000,000 of
Series H bonds this Januaiy*
The new current income H bond has been issued
only since June 1, 1952*
January sales of Series J and K savings bonds, which superseded Series
F and G on May 1, 1952, totalled $ 6 1 u 0 0 0 « 0 0 0 * _______ — — -----
Off. Randolph Burgess, Deputy to the
t Secretary oftl
ascribed
igures today^
In announcing these figures
wue^, ^¿>
^ --~~~~~1~£^Treasury,
the gain in E bond sales to the cumulative effects of intensified pro
motion of the payroll savings plan since the end of 1950, as part of the
national defense program*
Industry-wide campaigns in the steel, glass,
rubber, automotive, aircraft, petroleum and other industries, and pro
motions in thousands of business and industrial establishments throughout
the nation had brought payroll savers up to around eight million by the
end of 1952*
Compared to Uir million at the postwar low point in the
fall of 19U7, this is a gain of 77 per cent*
At the end of January, 1953, Savings Bonds of all series outstanding
had a cash value of over $$8*2 billion*
Series E bonds, all held by
individuals, reached a new high mark in cash value of $35*3 billion*
This
is nearly $800 million more than the amount held on May 1, 1951, when E
bonds began to mature*
Of the $5«3 billion that had matured up to the
/
The Treasury Department announced today that sales of
Defense Bonds in January totalled $504,000,000, which was 14%
above those of January, 1952.
Redemptions of all series
last month were $435,000,000 or 12% lower than January a
year ago.
Total sales of all series exceeded redemptions
of matured and unmatured bonds by $69 million.
In January 1952, sales of all series amounted to
$441,000,000 and redemptions were $493,000,000.
£ Bond sales of $397,000,000 were up 9% compared to
those of January, 1952, when they amounted to $364,000,000.
Redemptions of matured and unmatured £ bonds were down
11%, to $361,000,000 from $406,000,000 in January 1952.
t r e a s u r y
d e p a r t m e n t
Information Service
IMMEDIATE RELEASE,
Thursday, February 5, 1953.
Wa s h in g t o n , d .c .
q
ki-±o
The Treasury Department announced today chat sales of*
Defense Bonds in January totalled $504,000,000, which was 14^
above those of January, 1952.
Redemptions of all series last
month were $435,000,000 or 12$ lower than January a year ago.
Total sales of all series exceeded redemptions of matured and
unmatured bonds by $69 million.
In January 1952, sales of all series amounted to $441,000,000
and redemptions were $493*000,000.
E Bond sales of $397,000,000 were up 9$ compared to those of
January, 1952, when they amounted to $364,000,000.
Redemptions
of matured and unmatured E bonds were down 11$, to $361,000,000
from $406,000,000 in January 1952.
The difference between the 9$ gain in E bond sales and the
14$ gain for all four series was accounted for by sales of
$43,000,000 of Series H bonds this January.
The new current
income H bond has been issued only since June 1, 1952.
January sales of Series J and K savings bonds, which
superseded Series F and G on May 1, 1952, totalled $64,000,000.
In announcing these figures today, W. Randolph Burgess,
Deputy to the Secretary of the Treasury, ascribed the gain in
E bond sales to the cumulative effects of intensified promotion
of the payroll savings plan since the end of 1950, & s part of the
national defense program.
Industry-wide campaigns in the steel,
glass, rubber, automotive, aircraft, petroleum and other
.
industries, and promotions in thousands of business and industrial
establishments throughout the nation had brought payroll savers
up to around eight million by the end of 1952.
Compared^ to 4-2
million at the postwar low point in the fall of 1947, this is a
gain of 77 per cent.
At the end of January, 1953, Savings Bonds of all series out
standing had a cash value of over $58.2 billion.
Series E bonds,
all held by individuals, reached a new high mark in cash value of
$35.3 billion
This is nearly $800 million more than the amount
held on May 1,’ 1951, when E bonds began to mature.
Of the $5.3
billion that had matured up to the end of January, 1953, $4
billion, or 75$, were being retained by their owners under the
automatic extension privilege, to increase in cash value each six
months at a level rate of 3$, compounded semi-annually, for up to
ten additional years.
oOo
*Hi!
Delano had tendered his resignation as Comptroller
of the Currency, effective February 15, 1953, and
that the President had accepted the resignation*
Mr* Delano has served as Comptroller of the
Currency since
ment which would have expired eaF
f3
_
t
.
1954,
In announcing Hr* Delano's resignation, Secretary
Humphrey said, "Comptroller Delano has earned the
respect and esteem of the bankers of the Country
through his graciousness, integrity.and fairness to
all, and has rendered his Country valuable
service"*
. and
t r e a s u r y
d e p a r t m e n t
Information Service
Wa s h in g t o n , d .c .
IMMEDIATE RELEASE,
Friday, February 6, 19 5 3 «
H-19
Secretary Humphrey announced that
Mr. Preston Delano had tendered his resignation
as Comptroller of the Currency, effective
February 15, 1953, cind that the President
had accepted the resignation.
Mr. Delano has served as Comptroller of
the Currency since October 193^, and held an
appointment which would have expired In
January, 195^*
In announcing Mr. Delano!s resignation,
Secretary Humphrey said,
"Comptroller Delano
has earned the respect and esteem of the
bankers of the Country through his graciousness,
integrity, and fairness to all, and has rendered
his Country valuable service".
oOo
RELt’
Asi 20SNIH0 NEWSPAPERS,
Tuesdayi Fabraary 10, 1953.
The Secretary of the Treasury announced last evening that tha tender© for
tl,$00,0QQ,000, or thereabouts, of 90-day Treasury Mils to be dated February 13 and to
mature May lit, IMji which were offered on February 5* wore opened at the Federal Reserv*
Bank© on February 9«
The detail© of this issue are a© follows t
Total applied for - 12,386,091**000
Total aeoepted
- 1,$00,600,000
Average price
(includes $21*0,6ft>,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99*$02 Equivalent rate of discount approk * 1*993$ per annum
Range of accepted competitive bids*
H i#
- 99#$20 Equivalent rate of discount 1.920$ per annum
*
«
»
2 .00l$ *
«
- 99*k99
*
Lear
(8$ percent of the a w n t bid for at the low price m s accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew fork
Hiiladelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Iff.nnftapnH ©
Kansas City
Dallas
San Francisco
|
20,220,000
1,603,753,000
35.U69.000
50,719,000
17,777*000
31,251,000
276,521,000
U5,5U5.000
12,311,000
83,277,000
78,259,000
130,992,000
i
$2,386,091,000
$1,500,600,000
TOTAL
1U,820,000
931,1*91,000
17,119,000
39,539,000
15,912,000
27,056,000
208,371,000
28,613,000
11,301,000
53,327,000
55,009,000
97,992,000
I
1
newspapers,
Tuesday, February 10, 1953.
release m o r n i n g
to
erw;
H-20
The Secretary of the Treasury announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 90-day Treasury bills
to be dated February 13 and to mature May 14, 1953*which were offered
on February 5* were opened at the Federal Reserve Banks on February 9.
The details of this issue are as follows:
'ai
Total applied for - $2,386,094,000
Total accepted
1,500,600,000 (includes $240,655,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
99.502 Equivalent rate of discount approx;
1.993$ pan annum
Range of accepted competitive bids:
High
- 99.520 Equivalent rate of discount 1*920$
per annum
- 99.499 Equivalent rate of discount 2.004$
per annum
Low
(85 percent of the amount bid for at the low price was accepted:)
Federal Reserve
District
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
2 0 ,2 2 0 ,0 0 0
1,603,753,000
35.469.000
5 0 .7 1 9 .0 0 0
17.777.000
3 1 2 5 1 .0 0 0
2 7 6 5 2 1 ,0 0 0
45.545.000
1 2 .311.000
8 3 ,277,000
- 78,259,000
130,992,000
.,
1
TOTAL
$2,386,094,000
0 O0
Total
Accepted
14.820.000
931.491.000
1 7 .1 1 9 .0 0 0
39.589.000
1 5 .9 1 2 .0 0 0
27.056.000
2 0 8 .3 7 1 .0 0 0
2 8 .6 1 3 .0 0 0
1 1 ,3 0 1 ,0 0 0
53.327.000
55.009.000
97.992.000
$ 1 ,5 0 0 ,6 0 0 ,0 0 0
TREASURY DEPARTMENT
F is c a l S e rv ice
STATUTORY DEBT LIMITATION
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
Uni ted, States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S.C., title 31 , sec. 757b), outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face*amount which can still
be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
I nterest-beari ng:
Treasury bills
$21,709 ,448 ,000
Certificates of indebtedness........ 16.712.423.000
Treasury notes ............................. 35,951,753,800 $ 74,373,624,800
Bonds Treasury
79,752,764,250
Savings (current redemp. value)
58 ,133 ,936 ,13a
Deposi tary..............................
401,655,500
Armed Forces Leave ....................
Investment series..................... 13.440.474.000 151,728,829,888
Special Funds Certificates of indebtedness
Treasury notes.......... .......
Total interest-bearing
Matured, interest-ceased
24,071,838,000
15,025.140,400
39.096.978,400
265,199.433.088
281,145,725
Bearing no interest:
War savings stamps
49,139,877
Excess profits tax refund bonds.......
1,564,518
Special notes of the United states:
Internat'l Monetary Fund series...
1,258,000,000
1,308,704.395
Total. .......................................................................... 266,789,283,208
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.a.
46,291,536
Demand obligations: C.C.C.
....
505.478
46,797,014
Matured, interest-ceased
........ ............... .............. 1.379. S2S
48,176.539
Grand total outstanding
............................... ......
Balance face amount of obligations issuable under above authority..........................
266.837.459.747
8 ,162,
540,253
Reconcilement with statement of the Public Debt Jail,...3.1,. 1953
............ (Date)............
(Daily Statement of the United States Treasury, .
2, .1953
Outstanding (Date
Total gross public debt ...................................................................................
Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations ...........................................
Deduct - other outstanding public debt obligations not subject to debt limitation
267,402,058,633
_____ 48,176,539
267,450,235,^72
____ 6l2ff775.425
266,837,459,747
f ~ f —
TD *OAS •DC
b 2 -/
S Tii TUTORY DEBT LIMITATION
AS OF JANUARY 3 1 , 1 9 5 3
[J_
F e b ru a ry 1 0 , 1 9 5 3
S e c tio n 2 1 o f Second L i b e r t y bond A c t j a s amended, p ro v id e s t h a t t h e f a c e amount
of o b lig a tio n s is s u e d under a u t h o r i t y o f t h a t A c t , and th e f a c e amount o f o b l i g a
tio n s g u a ra n teed a s t o p r i n c i p a l and i n t e r e s t by th e U n ited S t a t e s ( e x c e p t such
guaranteed o b l i g a t i o n s a s may be h e ld by th e S e c r e t a r y o f th e T r e a s u r y ) ,” s h a l l n o t
exceed in th e a g g r e g a te < ¿ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0 (A c t o f Ju n e 2 6 , 191*6; u .S * C ., t i t l e 31*
s e c . 7 5 7 b ), o u ts ta n d in g a t any one tim e« F o r p u rp o ses o f t h i s s e c t i o n th e c u r r e n t
redemption v a lu e o f an y o b l i g a t i o n is s u e d on a d is c o u n t b a s i s w hich i s red eem ab le
prior to m a tu r ity a t th e o p tio n o f th e h o ld e r s h a l l be c o n s id e r e d a s i t s f a c e amount.’!
The f o llo w in g t a b l e shows th e f a c e amount o f o b l i g a t i o n s o u ts ta n d in g and th e
fa ce amount w hich can s t i l l b e is s u e d under t h i s l i m i t a t i o n :
Total face amount that may be outstanding a t an y one time
Outstanding
Obligations issued under Second Liberty Bond Act, a s amended
Interest-bearing:
{ ¡¿ 2 7 5 ,0 0 0 ,0 0 0 ,0 0 0
T reasu ry h i 1 1 s *
o «*¡¡>21, 709,1*1*8,000
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 „« 1 6 ,7 1 2 ,1 * 2 3 ,0 0 0
T reasu ry n o t e s * * * « , • » • « . . *•••••* 3 5 > 9 5 1 , 7 5 3 ?800 $ 7 1 * ,3 7 3 ,6 2 1 * ,8 0 0
Bonds T re a su ry
7 9 ¿ 7 5 2 ,7 6 1 * ^2 5 0
S av in g s ( c u r r e n t red em p «v alu e) 5 8 , 1 3 3 * 9 3 6 ,1 3 8
D e p o sita ry
1*01,6 S 5 , pOO
Armed F o r c e s L e a v e .• . . . . . . . r . .
In v e stm en t s e r i e s •*•••*«•••»,• 13,1*1*0,1*71* , OOP
l 5 l , 7 2 8 ^ 8 2 9 ,8 8 8
S p e c ia l Funds -
Certificates of indebtedness*« 2l*,071,838,000
Treasury notes««*,.»««a«*»•««• 15,025,11*0,1*00
Total interest b e a r i n g * ••.*•*«*«•<>
Matured., interest—ceased
Bearing no i n t e r e s t :
e«# ••
f a r . sa v in g s stam ps • • 0 • « • •
1 * 9 ,1 3 9 ,8 7 7
L xcess p r o f i t s t a x re fu n d bonds,»« •#.
1 ,5 6 1 * ,5 1 8
S p e c ia l n o te s o f th e U n ited S t a t e s :
I n t e m a t ’ 1 M onetary Fund s e r i e s *
1 ,2 5 8 ,0 0 0 ,0 0 0
T
o
t
a
l
* 0. 0* .
....•«*
3 9 , 0 9 6 ,9 7 8 ,1 * 0 0
2o57l99l33yônE
28i ,11(5,725
1 ,3 0 8 ,7 0 1 * , 3 9 5
26"6"/7B9, 2B3 ,2 0 5
Guaranteed o b l i g a t i o n s ( n o t h e ld by T r e a s u r y ):
In t e r es t - b e a r in g :
D ebentures:
F.H .A * ........... ..
1 * 6 ,2 9 1 ,5 3 6
Demand o b l i g a t i o n s : C «C *G * . . • • • • • ________ 505,1*78
M atured, i n t e r e s t - c e a s e d
1*6,797,011*
1 , 3 7 9 ,5 2 5
1 5 ,1 7 0 ,5 3 9
Grand t o t a l o u t s t a n d i n g * • • • • * • • . . . . . . . . . . . . . 0 . . . . . • .2 6 6 ,8 3 7 ,1 * 5 9 ,7 1 * 7
Balance f a c e amount o f o b l i g a t i o n s i s s u a b l e un d er ab o ve a u t h o r i t y * . . .
8 ,1 6 2 ,5 1 * 0 ,2 5 3
R e co n cilem en t w ith S ta te m e n t o f th e P u b lic Debt - Ja n u a ry 3 Î , 1 9 5 3
(D a ily S ta te m e n t o f th e U n ited S t a t e s T r e a s u r y , F e b ru a ry 2 ,1 9 5 3 )
Outstanding T o ta l g ro s s p u b lic d e b t ................................................................................................. . . * . * 2 6 7 , 1 * 0 2 , 0 5 8 , 6 3 3
Guaranteed o b l i g a t i o n s n o t owned by th e T r e a s u r y * »*•••••••••.*«••••
1* 8 , 1 7 6 ,5 3 9
T o ta l g ro s s p u b lic d e b t and g u a ra n te e d o b l i g a t i o n s . . * . 2 6 7 , 1 * 5 0 , 2 3 5 , 1 7 2
Deduct * o th e r o u ts ta n d in g p u b lic d e b t o b l i g a t i o n s n o t s u b j e c t t o
d eb t l i m i t a t i o n
* * * , . « * « * *•
6 1 2 ,7 7 5 ,1 * 2 5
26 078 J 7 ,1*59,71*7
mmutB m m m
February 9, 1 9 Ô
S’22
Secretary Hunphrey announced today that p r & H M x m y reporta
of mibccrlptlone for ife®new offering of eertifteates and bonds
t© ho doted February IS «aount to $8,731,000,000*
represent® «
0
m d 3/2
fbis
percent of the $8,868,000,000 »staring
certificate»*
"ubscriptlons to the Z»2/h percent on^-yesr eertlfleatee
arwTonied to $8,m , 000,000, and to the 2-0/2 percent bouda of
December iS, 1958, 1619,000,000#
Fimi resulta of the offering «ill toe «aaouBced later thia
IMMEDIATE RELEASE,
Monday, Feb ru ary 9* 1 9 5 3 »
H-22
S e c r e ta r y Humphrey announced tod ay t h a t
p re lim in a ry r e p o r ts of s u b s c rip tio n s f o r th e
new o f f e r in g of c e r t i f i c a t e s and bonds to be
d ated F eb ru ary 15 amount to $ 8 ,7 3 1 * 0 0 0 ,0 0 0 .
This r e p r e s e n ts about 98 and 1 / 2 p e rc e n t of
th e $ 8 ,8 6 8 ,0 0 0 ,0 0 0 m aturing c e r t i f i c a t e s .
S u b s c rip tio n s to th e 2 - 1 / 4 p e rc e n t oney e a r c e r t i f i c a t e s amounted to $ 8 ,1 1 2 ,0 0 0 ,0 0 0 ,
and t o th e 2 - 1 / 2 p e rc e n t bonds o f December 15*
1 9 5 8 , $ 6 1 9 * 0 0 0 ,0 0 0 .
F in a l r e s u l t s o f th e o f f e r in g w ill be
announced l a t e r t h i s week.
0 O0
to a receptacle for new English coins once kept in the
Chapel
of the Pyx in Westminister A b t & , London.
For the 1953 ceremony, 42,449 silver coins have been assembled I
at Philadelphia in the manner prescribed by law, taken from the
Mints * silver coinage production last, year of over 400 million
pieces.
The
Assay
Commission willA «M*e a variety of tests
to determine that the coins meet all legal requirements.
FOR IMMEDIATE RELEASE
Tuesday, February 10, 1953
Secretary Humphrey today announced the appointment by the
President of members of the Annual Assay Commission which will
meet at the United States Mint in Philadelphia at 10 a. m . ,
Wednesday, February 11, for the traditional ceremony of the
••trial of the coins.**
Members of the Commission are:
Otto B. Heaton, Columbus, Ohio
Edmund A. Rice, Prospect Plains, New Jersey
J. Reece White, Millsboro, Delaware
George L. Stark, Philadelphia, Pennsylvania
Loyd B. Gettys, David City, Nebraska
Mrs. Walter Annenberg, Wynnewood, Pennsylvania
Albert A. Shuger, Baltimore, Maryland
Frank Elmendorf, Cleveland, Ohio
Philip T. Sharpies, Haverford, Pennsylvania
Mrs. Charles A. Dean, Jr., Grosse Pointe, Michigan
Peter Hofstra, Paterson, New Jersey
Mrs. William Preston Few, Durham, North Carolina
Mrs. Robert O. Bonnell, Baltimore, Maryland
A. V. Astin, Washington, D. C.
John Verduin, Paterson, New Jersey
'
Joseph M. Gazzam, Jr., Philadelphia, Pennsylvania
The following are ex-Officio members of the Commission:
Judge William H. Kirkpatrick, United States District
Court, Philadelphia, Pennsylvania
Preston Delano, Comptroller of the Currency,
Washington, D. C.
„
*
Joseph S. Buford, Chief Assayer, United States
Assay Office, New York City
The Commission, which will be convened by Nellie Tayloe Ross,
Director of the Mint, is one of the oldest institutions in the
Government.
Its origin dates back to 1791 when Alexander Hamilton
first Secretary of the Treasury, presented to the Congress the
result of his **inquiries and reflections** relative to the
establishment of a Mint.
He suggested a system of sampling and
testing coins.
At all United States Mints, one silver coin out of every
10,000 delivered from the coining room must, under the law, be
taken out and deposited in a strongbox called the "pyx**, similar
TREASU RY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
6
IMMEDIATE RELEASE
H - 23
S e c r e ta r y Humphrey to d ay announced th e appointm ent by th e
President o f members o f th e Annual Assay Commission which w ill meet
a t the United S ta te s Mint in P h ila d e lp h ia a t 10 a .n u , Wednesday,
February 1 1 , f o r th e t r a d i t i o n a l ceremony o f th e " t r i a l o f th e
c o in s ." Members o f th e Commission a r e :
Otto B . H eaton, Columbus, Ohio
Edmund A. R ic e , P ro s p e c t P la in s , New J e r s e y
J„ Reece W hite, M ills b o ro , Delaware
George L . S ta rk , P h ila d e lp h ia , Pen n sylvan ia
Loyd B . G e tty s , David C ity , Nebraska
Mrs. W alter Annenberg, Wynnewood, P en n sylvan ia
A lb ert A .Shuger, B a ltim o re , Maryland
Frank Elm endorf, C lev elan d , Ohio
1P
T Xh
1 JLilip
w Os,5
iH
l a averford
/ C X i v l X, T Pwen
£X X n
i w sylvan
jf X V
T,» OSX hl c UaL rpJ Lie
ia
Mrs* C h arles A* Dean, J r . , G rosse P o in te , M ichigan
P e te r H o f s tr a , P a te rs o n , New J e r s e y
Mrs. W illiam P re sto n Few, Durham, North C a ro lin a
Mrs. Robert 0 . B o n n e ll, B a ltim o re , Maryland
A. V* A stin , W ashington, D. C.
John V erduin, P a te rs o n , New J e r s e y
Joseph M. Gaszam, J r , , P h ila d e lp h ia , P en n sylvan ia
a.
CLllJ*GL
The fo llo w in g a r e e x - 0 f f l c i o members o f th e Commission:
1
i
Judge W illiam H. K ir k p a tr ic k , U nited S t a te s D i s t r i c t
C ourt, P h ila d e lp h ia , P en n sy lvan ia
P resto n Delano, C o m p tro ller o f .t h e C u rrency,
W ashington, D. C*
Joseph S a B u ford , C hief A ssay er, U nited S t a te s
Assay O f f ic e , New York C ity
The Commission, which w ill be convened by N e llie T ayloe R oss,
■-
Director of the Mint, is one of
the o l d e s t i n s t i t u t i o n s in the
G overnment. Its o r i g i n d a t e s b a c k to 1791 w h e n A l e x a n d e r Hamilton,
first S e c r e t a r y of the T r e asury, p r e s e n t e d to the C o n g r e s s the
result of h is " i n q u i r i e s a n d r e f l e c t i o n s " r e l a t i v e to the e s t a b l i s h
ment of a Mint.
He s u g g e s t e d a s y s t e m of S a m p l i n g a n d t e s t i n g coins.
At a l l U nited S t a te s M in ts,on e s i l v e r co in ou t o f e v e ry 1 0 ,0 0 0
d elivered from th e co in in g room m ust, under th e law , be tak en out
&nd d ep o sited in a stron gb ox c a ll e d th e "p y x ", s im ila r to a
re c e p ta cle f o r new E n g lish co in s once kept in th e Chapel o f th e
Pyx in W estm in ister Abbey, London.
77
-
2
-
F o r the 1 9 5 3 ceremony, 4 2 , 4 4 9 s i l v e r coins h a v e b e e n a s s e m b l e d
a t P h i l a d e l p h i a in the m a n n e r p r e s c r i b e d b y law, t a k e n f r o m the
M i n t s ’ s i l v e r c o i n a g e p r o d u c t i o n l a s t y e a r of o v e r 4 0 0 m i l l i o n
p ie c e s .
The A s s a y C o m m i s s i o n w i l l o b s e r v e a v a r i e t y of t e sts to
d e t e r m i n e that the coins m e e t all legal r e q u i r e m e n t s .
oOo
- 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 115 of the Revenue Act of 19bX, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets.
Accord
ingly, the owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the difference
bet,ween the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.
Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.
2
AJ.nKffJWV
d e a l e r s i n in v e stm e n t s e c u r i t i e s .
T enders from o t h e r s m ust be accom panied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y t h 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 range
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 t h e T r e a s u r y e x p r e s s l y re se rv e s
th e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 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 titiv e te 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 i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th re e
S e ttle m e n t f o r a c c e p te d te 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 co m p leted a t th e F e d e r a l Re
s e r v e Bank on F e b ru a ry 1 9 , 1 9 3 3
, in c a s h o r o t h e r im m e d ia te ly a v a ila b le
fu n d s o r in a l i k e f a c e amount o f T r e a s u r y b i l l s m a tu rin g F e b ru a ry 1 9 , i 9 5 3 _ .
w
Cash and exch an g e t e n d e r s w i l l 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 stm e n ts
w i n b e made f o r d i f f e r e n c e s b etw 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 issu e , p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have, any exemption,
a s s u c h , and l o s s from th 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 re a s u ry 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 s u c h , un d er 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 en tary t h e r e t o .
The b i l l s
s h a l l be
Kxkxkrkxì
**»«.*■
mmam
TREASURY DEPARTMENT
W ash in gton
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, February 1 2 , 1 9 5 3
.
f~~f
------ S-6--- ------- C-!
-------
c-f
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 lic n o t i c e , i n v i t e s te n d e r s
f o r $ 1 ,3 0 0 ,0 0 0 ,0 0 0
, o r th e r e a b o u t s , o f
91
-d a y T r e a s u r y b i l l s , f o r
ca s h and i n exch an g e f o r T r e a s u r y b i l l s m atu rin g F e b ru a ry 1 9 , 1 9 5 3
th e amount o f $
1 , 300 , 519*000
, t o be is s u e d on a d is c o u n t b a s i s under
c o m p e ti tiv 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
May 2 1 , 1 9 5 3
.. .
te re s t.
"l,!M S
vvv
..«-
, in
F e b ru a ry 1 9 , 1 9 5 3
The b i l l s
, and w i l l m atu re
, when th e f a c e amount w i l l be p a y a b le w ith o u t i n -
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
$ 1 , 0 0 0 , $ 5 , 0 0 0 , $ 1 0 , 0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 , 0 0 0 ,0 0 0
( m a t u r i t y v a lu e ),
T en d ers 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 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 rd t i m e , Monday, F e b ru a ry 1 6 , 1953T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry D ep artm en t, W a sh in g to n .
Each
te n d e r must be f o r an even m u ltip le o f $ 1 , 0 0 0 , and in th e c a s e o f co m p eti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re 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 t h r e e 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 se d .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l en v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks 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 ers th a n banking 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 t o subm 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and re co g n iz e d
t r e a s u r y
d e p a r t m e n t
Information Service
RELEASE M O R N IN È F te S P A P E R S ,
Thursday*,■F e b r u a r y •1-2.> 1953.
WASHINGTON, D .C
H-24
‘Hie, rDecpetaryuof the Treasury, b y this ptiblLie notidg?,
3
tenders foh';$i:, 3 O 0 ; Q O O , 000, or t hereabouts, < ^ ‘r91-day-Ti^^uhy^^ bd^is:,,
for cash and i n e x c h a n g e f o r T r e a s u r y bills', m a t d r i n g F e b h u ^ r y 19,/
1953, in the j amotot-,of $ 1 , 300 ,519 , 000 , to b e 'i s s u e d -'on Ta -discount
basis under c o m p e t i t i v e a n d n o n - c o m p e t i t i v e bidding:.as.jheri^iha-fter provided.
The. b i l l s of this series w i l l be; d a t e d February'..19> i953y;
and will .m k t u r e 'May'll > 1953 , w h e n the f a c e amountrwill be payat^^ :
without ..interest. .They w i l l be i s s u e d in b e a r e r f o r m only, a n d i n ...
denominations •o f '$1, OOQ, $5,000, $10,000, .$I'Q0yOC)0, $5Q0> 000, a nd
$1 ,000,00.
0' (maturity- y.aiue).
.3
:rf
l£r; .
Tendehs will, be r e c e i v e d at F e d e r a l R e s e r y e 'Banks-, a n d B r a n c h e s
up to the' c l o s i n g hoinv, two o ’c l o c k p.m., .Eastern"Standard t i m e ,
Monday, F e b r u a r y .16, .1953•
T e n d e r s w i i l h o t tie r e c e i v e d a t the
Treasury D e p a r tment, W a s h i n g t o n .
Each., t e n d e r 'irtuSt- b e f o r a n e v e n
^
multiple of $1,000, a n d in the case of c o m p e t i t i v e t e n d e r s ,the^:p r i c e
offered m ust be e x p r e s s e d 'o n the b a s i s of 100,::-With not- m o r e t h a n -o ;
three decimals, i e w g , * 9&9Z5'.
Fractiçnsqniaÿ^noU be used,
it^is^
urged that ;t e n d e r s .be .made o h t h e ’ p r i n t e d forms- and-, f o r w a r d e d .in the
special e n v e l o p e s w h i c h wil l be su p p l i e d b y F e d e r a l :R e s e r v e Banks-, or .'
Branches p h a p p l i c a t i o n t h e r ë f o r . i/iv lg| /■'7
1.
.| | ,jj|35
Others than".banking institutions: w ill not be p e r m i t t e d to submit
tenders exce p t f or .their- o w n a c c o u n t s ^ T e n d e r s wil l be r e c e i v e d ■
without, d e p o s i t f r o m i n c o r p o r a t e d !b a n k 5 stnd t r ust c o m p a n i e s a n d £ r o m
responsible a n d r e c o g n i s e d . d e a l e r s in. i n t o s t m e h t s e c u r i t i e s . Tenders,
from others'must be.,accompanied b y payment! of 2 "percent .of t h e -face
amount <of '.Treasury b i l I s aPP.liéd for,, .uniess ‘the- t e n d e r s
- '•
accompanied b y a n e x p r e s s ^guaranty of.-payment b y a n - i n c o r p o r a t e d b a n k
or trust company.
1
^y *
*
.
SSatt1
W V . r ,*.
Immediately, .after .the c l o s i n g hour, t e n d e r s - w i l l be opened, at
the Federal R e s e r v e B a n k s a n d B r a n c h e s ; f o l l o w i n g w h i c h public.
announceméht wil l b e made; by' the B.ecnetaiy1 of the T r e a s u r y of the
amount and p r i c e r a n g e of a c c e p t e d bids.
Those submitting tenders
will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the right, to a c c e p t òli.
reject a ny or all tenders, i n w h o l e or in part, a n d h i s a c t i o n in -any
such respect shall be final.
Su b j e c t to these reser v a t i o n s , n o n
competitive t e n d e r s fo r $ 2 0 0 , 0 0 0 or less w i t h o u t s t a t e d p r i c e f r o m
any one b i d d e r w i l l be a c c e p t e d in full at the a v e r a g e p r i c e (in
2
three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance wi t h the bids must be made or
completed at the Federal Reserve B a n k on February 19 1953*
cash
or other immediately available funds or in a like face amount of
Treasury bills mat u r i n g February 19* 1953.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the p a r value of mat u r i n g bills accepted in .
exchange and the issue price of the tn e w b i l l s .
,
The income derived from Treasury bills, whether interest or ...
gain from the sale or other disposition of the bills, shall not have
any. exemption, '*as such, and loss f r o m 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, whet h e r Federal or State, but shall be exempt,
from all taxation no w or hereafter imposed on the principal or
interest thereof b y any State, or an y of the possessions of the
United States, or by any local taxing authority.
For purposes of
taxation the amount o f discount; at which Treasury bills are
originally sold b y the United States shall be considered to be
interest.
Under S e ctions 4 2 and 117 (a) ( l ) of the Internal Revenue
C o d e , as amended b y :Section 115 of the Revenue Act of 1941, the
amount of discount at w hich bills issued hereunder are sold shall not
be considered to accrue until such bills „.shall be sold,^ redeemed or
otherwise disposed of, and;such bills are excluded from consideration
as capital a s s e t s . - A c c o r d i n g l y , ;the owner of Treasury bills (other
than life insurance companies) issued, hereunder need include in
his Income, tax return only the differénce between the price paid for
such bills, whether ori original issue or on subsequent purchase, and
the amount; a c tually received either upon sale or redemption at
m a t u r i t y during the taxa b l e ye a r for w h i c h the return is made, as
ordinary g a i n e r loss. . .. & &
3
SEpBEj
Treasury Department .Circular No* 4l8, as amended, and this
notice, prescribe the. terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular m a y be obtained
from any Federal Reserve B a n k or Branch.
oOo
***** 1 \
o* *
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 January 31, 1953, inclusive, as followst
Commodity
Period and Quantity
T»hole milk, fresh or
6\i
Calendar year
3 ,000,000
Gallon
.Calendar year
1 ,500,000
Gallon
.Nov. 1,' 1952Mar. 31, 1953
50 ,000,000
Pound
k,h39
33,866,287
Pound
8,U50,0l8
150 ,000,000
798,900,000
Pound
Pound
80,725,703
Itf,150,383
5 ,000,000
Pound
88o,070i
7 ,000,000
pound
3,273,063
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish • • . Calendar year
■White or Irish potatoest
certified seed • • • ♦ • 12 months from
.Sept. 15, 1952
Calendar year
Almonds t
shelled, blanched,
roasted, or otherwise
prepared or preserved • .12 months from
Oct. 1, 1952
(1)
Imports as of
January 3 1 , 1953
CO
Butter • • « « • • • « •
unit
of
Quantity
Inports for consumption at the quota rate are limited to 8,1*66,572 pounds
during the first three months of the calendar year.
83
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
'iw a r ia v . F e b ru a ry 12, 1953
The Bureau o f Customs announced to d a y p r e li m i n a r y f i g u r e s showing th e im p o rts
for consumption o f com m od ities w ith in t a r i f f - r a t e q u o ta l i m i t a t i o n s from th e b e
ginning of th e q u o ta p e r io d s t o Ja n u a ry 3 1 , 1 9 5 3 , i n c l u s i v e , a s f o l l o w s :
Commodity
P e rio d and Q u a n tity
Whole m ilk, f r e s h o r
;Cream...............................
Fish, fre sh o r f r o z e n ,
f i l l e t e d , e t c . , co d ,
haddock, hak e, p o l l o c k ,
cusk, and r o s e f i s h .............
: U n it
:
•
of
•: Im p o rts a s of
: Q u a n tity {J a n u a r y 3 1 . 1953
C alen d ar y e a r
3 , 000,000
G allo n
6U *
C alen d ar y e a r
1 , 500,000
G allo n
he
Nov* 1 , 1 9 5 2 Mar*. 3 1 , 1 9 5 3
50 , 000,000
Pound
It, 1*39
C alen d ar y e a r
3 3 , 8 6 6 ,2 8 7
Pound
8 , 1*50,018 ( 1 )
150 , 000,000
798 , 900,000
Pound
Pound
8 0 , 7 2 5 ,7 0 3
1 * 7 ,1 5 0 ,3 8 3
[White or I r i s h p o t a t o e s :
. c e rtifie d s e e d . . . . . . . . . .
other*-«.........................
12 months from
¡Walnuts. . . . . . . . . . . . . . . . . . .
C alen d ar y e a r
5 , 000,000
Pound
880,070
■ Almonds:
sh elled , b la n ch e d ,
ro asted , o r o th e rw is e
prepared or p re s e rv e d .. •.
12 months from
7 , 000,000
Pound
3 , 273,063
S e p t. I S , 1 9 5 2
O c t. 1 , 1 9 5 2
(1) Imports for consumption at the quota rate are limited to 8,1|.66,572 pounds
during the first three months of the calendar year.
-^MEDIATE RELEASE
February ^34.5 1953
The Bureau of Customs announced today preliminary figures showing
the inports for consumption of commodities on -which quotas were prescribed
by the Philippine Trade Act of 19U6, from January 1, 19E>3, to January 31,
1953, inclusive, as follows?
•
:
:
•
ï
*
•
V
Products of the
Philippines
Buttons # • • • • # • • •
*
•
Imports'as of
Unit of :
Established Quota s
Quantity
: Quantity : January 31, 1953
•
•
•
•
85>0,000
Gross
85,083
17,800
» • » * * • * « •
200 ,000,000
Number
Coconut Oil • • • • • • •
1^ 8,000,000
pound
9,5lU,728
6 ,000,000
pound
396,576
1 ,0U0,000
pound
••
l,90lt,000,000
Pound
Cigars
Cordage
..............
Rice • • » • • • » • • »
(Refined
• • »
Sugars
130,866,338
(Unrefined • •
Tobacco • • • • • • • • •
6 ,£o q o o û
pound
70,781
TREASURY DEPARTMENT
Washington
immediate
H-26
RELEASE
Thursday, February 12, 1953
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 19li6, from January 1* 1953* to January 31, 1953*
inclusive, as folloxsrs:
t
Products of the
Philippines
Established Quota
Quantity
85o,ooo
Buttons • » • • • • •
s
t Unit of :
Imports as of
» Quantity : January 31, 1953
:
i
Gross
85,083
17,800
« *
200 ,000,000
Number
Coconut Oil » * • • * c 0
ià8 ,000,000
Pound
9,511*,728
6 ,000,000
Pound
396,576
l,0i*0,000
Pound
X,901*,000,000
Pound
Cigars
Cordage
« «
Rice » « « • • • « »
(Refined
Sugars
• • ♦
*
(Unrefined
* «
Tobacco * « • • • * •
♦ *
«ÉT
130,866,338
6 ,500,000
Pound
70,781
IMMEDIATE RELEASE,
Februarr^il>v!953
I
)2 The Bureau of Customs announced toda^.gg^l|mimry figures showing the
quantities of wheat and wheat flour/enierea, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 19bl, as modified by the President’s proclamation of April 13, 19)42,
for the 12 months commencing May 29, 19 5? as follows:
Wheat
Country
of
Origin
Established ;
Imports
Quota
rMay 29, 1952, to
:February 11* 1953
(Bushels)
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
Chi ted Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
-
100
100
*100
100
2,000
100
1,000
-
100
—
*
1,000
100
100
100
100
794,576
mm
mm
—
mm
mm
•»
mm
mm
m
m
mm
m
«ft
•*
—
—
m
mm
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
t 1fey 29, 1952,
: to February 1
(Pounds)
(Pounds)
3,812,000
2b,00 Q
13,000
13,000
8,000
75,000
1,000
1,718,776
Ml
m
44
S,ooo
2,ooo
**
<•
1,000
1,000
1,000
ib,000
2,000
12,000
1,000
1,000
1*000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
**
ft*
m
“
*
m
m
Mft
mi
m
—
mm
m
-
~
—
—
m
m
—
.
»
T
■8 1
TREASURY DEPARTMENT
Washington '
i
m e d i a t e release,
Thursday, F e b ru a ry 1 2 , 1 9 5 3
H -27
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn from
warehouse, for consumption under the import quotas established in the President* s
proclamation of May 28 , 19idL, as modified by the President» s proclamation of
April 1 3 , 1 9 ^ 2 , for the 1 2 months commencing May 2 9 , 1 9 5 2 , as follows:
Country
of
O rig in
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
A ustralia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Is la n d s
Rumania
Guatemala
Brazil
Union o f S o v ie t
S o c ia lis t R e p u b lic s
Belgium
Wheat
:
Im p o rts
E s ta b lis h e d :M a y 2 9 , 1 9 5 2 ,
Q uota
: F e b ru a ry 1 1 ,
(B u s h e ls )
(B u s h e ls )
795,000
100
-
100
100
-
100
2 ,0 0 0
100
1 ,0 0 0
-
100
Wheat f l o u r , s e m o lin a ,
cru s h e d o r c ra c k e d
w h e a t, and s i m i l a r
w heat p r o d u c ts
•
Im p o rts
E s t a b l i s h e d : May 2 9 , 1 9 5 2 , t o
to
Quota
: F e b ru a ry 1 1 , 1 9 5 3
1953
(P o u n d s)
( Pounds)
7 9 U ,5 7 6
-
«
•
«
-
-
-
-
-
-
-
m
—.
mm
_
—
1 ,0 0 0
100
100
100
100
800,000
3 , 815,000
2h) 0 0 0
1 3 ,0 0 0
1 3 ,0 0 0
8 ,0 0 0
75,000
1 ,7 1 8 ,7 7 6
- ’:
-
hh
1 ,0 0 0
5,000
5,000
1,000
1,000
1,000
H i , 000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
-
-
-
_
—
-
mm
mm
mm
-
-
-
-
-
-
7 9 ^ ,5 7 6
h , 000 ,0 0 0
1 , 718,820
-
2
-
COTTON WASTES
( I n pounds)
COTTON CARD STRIPS made fro m c o t t o n h a v in g a s t a p l e o f l o s s th a n 1 - 3 / 1 6 in c h e s i n l e n g t h , COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: P r o v id e d , h o w ev er, t h a t n o t more th a n 3 3 - 1 / 3 p e r c e n t o f th e q u o ta s s h a l l
be f i l l e d b y c o t t o n w a s te s o t h e r th a n com ber w a s te s «made from c o t t o n s o f 1 - 3 / 1 6 in c h e s o r more
i n s t a p l e le n g th i n th e c a s e o f th e f o llo w in g c o u n t r i e s : U n ite d Kingdom, F r a n c e , N e th e r la n d s ,
S w i tz e r la n d , B elg iu m , Germany^ and I t a l y :
Country of Origin
Established
: TOTAL QUOTA
United Kingdom...... .
Canada ...............
France ..... ........
British India ........
Netherlands ..........
Switzerland ..........
Belgium ..............
Japan ...... ....... .
China ............ ....
E g y p t ...............
C u b a .... ...........
Germany........ .
Italy...... ........ .
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
78,053
211,091
13,032
48,162 ,
15,715
«fl»
«Ml
25,054
6*430
1,441,152
75,807
22,747
14,796
12,853
—
—
—
—
25,443
7,088
5,482,509
397.537
1.599,886
1J Included in total imports, column 2.
Prepared,
Imports
1/
: Established :
: Total imports
: Sept. 20, 1952, to : 33-1/3$ of : Sept. 20, 1952,
* February 11. 1953 : Total Quota : to February 11. 195'
by the Bureau of Customs
m
«»»
m
mm
77,446
m
13,032
m
15,715
«i
ft«
m
m
25,054
6*430
137,677______
■ / jU
l/Xi
IMMEDIATE RELEASE
~Ÿ '':: -yr>.
¿fit****"&
& 7J
j ~ i --- c2 t
J^bruagy ^ , 1953
^reli
reliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5 , 1939 , as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1952« to February 11. 1953. 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..... .
Imports
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
1,382
Country of Origin
Established Quota
Honduras ............
Paraguay ............
Colombia ............
Iraq ......;....... ..
British East Africa ...
Netherlands E. Indies
Barbados ..;.... ....
l/0ther British W. Indies
Nigeria
....
2/0ther British W. Africa
¿/Other French Africa ...
Algeria and Tunisia ...
Imports
752
871
124
195
2,240
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. 1952a to January 31« 1953
Cotton 1-1/8* or more, but less than 1-11/16"
Imports Feb, 1 , 1953. to February 11, 1953
Established Quota (Global)
Established Quota (Global)
70,000,000
Imports
5,064,388
45,656,420
*.
71,388
Imports
5,836,729
2
TREASURY DEPARTMENT
Washington
U'ifCEDIATE RELEASE
Thursday, February 12, 1953
H-28
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
'
-
t
Country of Origin
"/
COTTON (other than linters ) (in pounds )
...
C o tto n under l« ~ l/8 in c h e s o t h e r th a n h a rs h o r ro u g h u n d er
im p o rts S e p t , 2 0 ,. 1 9 5 2 , to F e b ru a ry 1 1 , 1 5 5 3 , i n c l u s i v e
Established Quota
Imports
Country of Origin
•
.
3/hn
.Established Quota; ; Imports
......... 752
^ a $ p...*»..
E g y p t and t h e " A n g lo - ... ------*■■■•......— ........- ....— — j.... s..B ¡si ....... ........ Honduras.
:
P
a
ra
g
u
a
y
*••••••••••••«
871
.
7
8
3
,8
1
6
■:
E g y p tia n Sudan
•
121
4.
Colom
bia
a
••
c
.
*•••••••*•
•
587
P©ru
44)f ^ #
.2 4 7 ,9 5 2
I
r
a
q
#
•
•
»
*«•
1
9
5
•y û „ J "r. B r itis h In d ia
2 , 0 0 3 ,4 0 3
2,240
B r i t i s h E a s t A f r i c a « ,*
China § •«• • • • • *v * r' **....- 4 L ,3 7 0 ,7 9 1 ..........
....
71,388
N
e
th
e
rla
n
d
s
E
e
I
n
d
ie
s
«
6 , 5 6 6 ,3 1 3
8 , 8 8 3 ,2 5 9
B arb ados # • •>•••• ©*• • •o
.
•;
•»
B ra z il i
•••#•##&
6 1 8 ,7 2 3
2 1 ,3 2 1
1 .-'-v: l /O t h e r B r i t i s h , -fe. Indies., , ,
Union o f S o v i e t
«N ig e r ia *
*»• • ••«••««,... . . . . . 5 ,3 7 7 . r m
S o c i a l i s t R e p u b lic s
4 7 5 ,1 2 4
1 ,3 8 2
i;-" 2 / 0 t h e r B r i t i s h W, A f r i c a . . . . . . . l 6 ,0 0 i *
A rg e n tin a • . . . . « ¥ « . t « *
5 ,2 0 3
a 3/Q t h e r F re n c h A f r i c a < , » < • > * .
689
H a iti • # « • • » • « • • • • • • •
237
A l g e r i a and T u n is ia
« . i
T
q ....
E cu a d o r * # • • * « • • ♦ • « • o
9 ,3 3 3
1 / O th e r th a n B a rb a d o s, Bermuda, J a m a ic a , T r in id a d , and Tobago«
2 / O th e r th a n Gold C o a st a i d N igeria«,
TJ O th e r th a n A l g e r i a , T u n i s i a , and M ad ag ascar*
C o tto n , h a r s h o r roughs o f l e s s t h a n 3 /U T>
Im p o rts S e p t < 2 0 , 1 9 5 2 , to. .Jan u ary , 31* 1 9 5 3
E s t a b l i s h ed Q uota (Gl o b a l ) '
7 0 ,0 0 0 ,0 0 0
Im p o rts
5 ,o 6 i i ,3 8 8
...... _ %_
_
,
'w .
I
,.
II
.
.. . . -
mm
**
-
00
mm
**
,• •
f
,
j -j- *-
C o tto n 1 - 1 / 8 ’? o r m ore, b u t l e s s th a n X-*X1/X6
I mpor t s Feb». I ? 1 9 5 3 , to .F e b ru a r y 1 1 , 1953_ ___
E s t a b lis h e d , Q uota
.............. T Ìi5,656,U20................
Im p o rts
................... ' 5 ,B 3 6 “,7 2 5
COTTON WASTES
(In pounds)
COTTON CaAD STRIPS made 'from c o t t o n having'^ a 1 s t a p l e o f l e s s - t h a n - 1 - 3 /1 6 ,. in c h e s -.in l e n g t h , COMBER
WaSTE, LAP WASTE, SLIVER
Aipv iDVBÎG w aste , whether or NOT 1MNUFÀCTURED OR OTHERWISE
ADVANCED IN ,VALUÇs.. P ro v id e d , how ever, " t h a t : n o t nibre:: ,thai;. 3 3 ~ l / 3 p e r c e n t o f th e q u o ta s s h a l l
be f i l l e d by c o t t o n ‘ w a è te s o t h e r th a n co rriber was t e s : made ir-oim c o t t o n s ,o f JL - 3/16 in c h e s o r more
i n s t a p l e l e n g t h i n th e e l s e b f t h e f o llo w in g •c o u n t r i e s V U n i t e d ,Kingdom ,, yE'rance, N e th e r la n d s ,
S m tz e rla n d ,,: •Belgium, G erm any,. and I t a l y :
A
4»
C ountry o f O rig in
-"A
l 'E s tà h l i shed
1 'TOTAL QUOTA-
T o t a l Im p o rts
’ S e p t e 2 0 , 19-32, to
. • F e b ru a ry 11,_ 1 9 3 3
.
.
.
E sta b lis h e d
*
Im p o rts —A’
"À
3 3 -1 /3 ^ A l
: S e p t , *2 0 * 1332 ,
T o t a l ^ u o ta ; • t o F e B rù â iy ’l l ,* .1 9 3 :
1 , ! ( ! ( ! , 152
A A A
7 8 ,0 5 3 '' v\ I p
U n ite d Kingdom
5 , 3 2 3 ,5 5 7
# A W t 6 .PliU
—
■
<* **.
2
1
1
,0
9
1
2 3 9 ,6 9 0 . ’
C3.riclClcL i «4 V* •l -'t # *
1
3
,0
3
2
75,807
1
3
,0
3
2
'22?,fâO
F t 3xi0 6 .
' r-,'. »
.'••‘ '69,627
1 8 ,1 6 2 .|
B r i t i s h I n d ia .................. ..
.,15.715.,.,
2 2 ,7 5 7
: •/ . 6 8 ,2 1 0
i:: :
15,715 ••
N e t h e r l a n d s .................... . . »
¿.
...... r . . .
1
5
,
7
9
6
p .' R: '
w
Si/O .tzsrlsn d £•••«••• ♦ •
1
2
,8
3
3
t • . • * * ~ <•* * r *
3 8 ,3 5 9
BgX^XUI!!
—
-p.,a
tj3p3X1 ##»•••••••••### ♦ • •
3111,535
'A!-•■ --•
■»' ,Vv
: -T ra/ à »i
1 7 ,3 2 2
China %
•
;
.
.*■ - 7 •
v
■;
.rp
i
Egypt $o• 4 ••#*##• e©• • • •
8 ,1 3 5
y
.
A
:
— .
■'
P'?
'
■
:
'
.
■
•
■ -A - '•
Cuba
6 ,5 u ii
25,055
2 5 ,5 1 (3
25,o 51(
vGSTlllctiTy^' © • • ft»'-©■♦ • • •A.#>•#«0’
76,329
,.;.,r ;6 ,u 3 0 - . .
A; À ' 7 , 0 8 8 - ;
Egggij
6 ,1 (3 0
2 1 ,2 6 3
J UcQy»•
• • «.«¿f ♦ ♦ • f.
— T-RP- .
1/
•
5 ,1 (8 2 ,5 0 9
;
In c lu d e d i n t o t a l im p o r ts , column 2 .
Prepared by the Bureau of Customs
¡ ...A;
3 9 7 ,5 3 7
1 , 599,886
137,677
TR EA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, D .C .
RELEASE MORNING NEWSPAPERS
» J-Ì9 5 3 .
y V - 2* Î
»-3P96 ■
/ 3, /ff*
During the month of^Decembgay 1992
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$0j 233j2 0 0 -rGO, Secretary.
V»
today.
0 O0
zed
RELEASE MORNING NEWSPAPERS,
Friday, February 13* 1953•
H-29
During the month of January, 1953
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$24,581,000.00, Secretary Humphrey announced
today.
0 O0
-
10
-
There were 2,313 convictions, representing 98 percent of convictions
in all cases that were prosecuted*
Prison sentences during the year totaled 2,633 years and additional
sentences of 2,499 years were suspended or probated.
Fines in criminal
cases totaled $27 ,163 *60 ,
Cases of all types received for investigation, including counter«
feiting and forgery cases, totaled 39 >403 , and although agents completed
39,157 investigations during the year, there was a backlog of 9,738 cases
still awaiting investigation as of December 31, Chief Baughman reported.
- 9 Fear and. fire helped to catch one bond forger, Richard A. Shekoski,
24, of Hamtramck, Michigan, who tried to burn his clues behind him.
Shekoski was acquainted with a workman at the Plymouth Motor Car Company
in Detroit who let it be known that he had $3 >925 worth of defense bonds
in his home in Utica, Michigan.
Shekoski went to the house while the
bond owner was at work, entered with a skeleton key, and ransacked the
place until he found the bonds in a bureau drawer in the bedroom.
He
tried to cover up the theft by setting fire to the mattress, but when
it started to blaze, he apparently became frightened, extinguished it
and left the house.
The next day he cashed four bonds at a Hamtramck bank, using for
identification an automobile registration certificate which he had also
stolen in the house.
He then obtained an operator's license bearing
his own description and used it to cash the rest of the 67 bonds*
He was soon arrested, pleaded guilty and was sentenced to 2& years
appeared to be merely an\enlisted man, he wasYeally a Marine C^rps
officer engaged on a highly secret intelligence mission.
In order to
•pay hiii for this work, he\said, the Marine Corps issued checks pay
able ta a fictitious person and allowed him to negotiate them anc
thus reieive extra pay.
His wife was satisfied with the explanation,
but it failed to impress her\skeptical father, who asked for an
explanation at Marine Corps headquarters, where Mosley’s fraud was
revealed, \the Secret Service sa^Ld.
Mosley was arrested and is awaiiing
court martial.
'
*
A
A relentless /¿hyear search by the Seerfet Service for a forger who
stile 68 Government!checks worth $5,611 and who deserted his wiie and
children, ended October 3, 1952, when agents arrested Ira P. Valentine
at a\Chicago drug store where he was aaployed\as a clerk.
rom 1946 to 1948\ Valentine had worked as\a clerk at the University
of Illinois, ChampaignA 111., where for a year ke stole and forged GI
subsistence checks addressed to students.
When Secret Service agents
\
began aA investigation Valentine fled to Chicago \M.thout a word to\his
\
\
\
\
wife and\ family. He worked there under the name of\ Herbert Parker until
agents finally tracked him aown.
He pleaded guilty and was sentenced
to 3 h years in prison.
L 14***
Bond forgeries were not as heavy as in past years, Chief Baughman
A
said, probably because more bond owners had learned to keep their
defense bonds in safe deposit boxes.
The Secret Service received 4,909
bond forgery cases for investigation and closed 4,329 cases involving
$343,252.16.
There were 97 persons arrested for bond forgery.
- 7 When they told Clinkscale what had happened, he insisted they
should return to the store and steal the fingerprint*
They decided
that Bradley and the girl would go into the store, where she would
attempt to steal some merchandise, thus creating enough commotion to
allow Bradley to steal the card with the fingerprint*
She tried to
steal clothing from a counter, but when she was promptly arrested by
store detectives, Bradley became frightened and fled without the
fingerprint*
Agents soon picked him up with Clinkscale and all three
were convicted and sentenced to prison terms*
A cjbantity of marriage license blanks, a tall stoAr and a skeptical
father-ii-law landed a U. S. Marine in the brig, charged with forging
$2,780 iri Marine Corps allotmeit checks.
were exceeding his military payl
Richard Moslews expenses
One day he accompanied\a friend who
obtained a\marriage license, ani conceived an ingenious idea.
According
to the Secret Service, Mosley stole a quantity of marriage\ license blanks,
one of which he executed to show that he had married one Gloria Klaus,
a girl he hid known only slightly Vn high school at Pittsburgh, Pa.
With the fictitious license, he applied for an allotment payable to
Gloria Klausmosley, and each succeeding month he received a W c k for
which he forged in his mythical »wife\»s« name, Chief Baughman Reported.
The checks we\e deposited in a joint bknk account in Alexandria\ Va.,
for several months.
\
In May 19iAL Mosley did marry an Alexandria school teacher*
Asked
by his wife and\her family why no allotment was forthcoming for heV,
Mosley exhausted! all possible excuses, finally saying that although he
- 6 -
\
Mrs.
One girl arrested in New York Ci^y for forgery gaS^e her name as
elen Meany Rountree and told Secret Service agent! she was the
former* Helen Meany, one-time Olympic sidmmjing champion«
Bnployed as
a roon clerk in a New York hotel, Mrs* Rountree told agents she had
stolen and forged a $[>> check to help 1er lé-year-old daughter, who
was a narcotic addict and who had been (arrested for burglary«
5he insisted she iad stolen only tjhe one check, but agents soon
ident: .fied her as the ;forger of at le
established that she was not the foraerl Olympic champion and was not
related to the famous :lermaid.
The cro%
irony was the discovery
that the Rountree womai was a former Correctional Officer of the City
of New York, that she had also posed as the sister of Inspector Meany
of the Mpw York Police Department, and that she had never used any of
the proceeds of the gorged checks to help her unfortunate daughter*
She pleadied guilty and wsta sentenced November 21*
From. Louisville, Kentucky, came a report of the arrest of a trio
of check forgers who put over a forgery but were caught when they went
back to steal a fingerprint*
Two men, Nat Clinkscale and William J*
Bradley, stole a check payable to a woman, so they persuaded Dorothy
Lewis to pose as the payee.
and bought women's clothing.
She and Bradley took the check to a store
Before cashing the check, the merchant
asked the Lewis woman to place her fingerprint on a card, which she did.
The check was cashed and she and Bradley left with the new clothes.
- 5Morris was subsequently identified as having passed at least 15
counterfeits in Times Square restaurants and night clubs«
When he
refused to name his source of supply, he was ’’bebopped” into a Federal
penitentiary for six years«
The adage that it pays to advertise doesn’t include advertising
stuck to United States coins«
Eddie Bohn^ Ghaiiiwnan of the Colorado
flfrfany was arrested by Secret Service agents when he
persisted in gluing stickers on silver dollars advertising his Cafe
Motel Service Station at Denver«
Bohn was warned in 1951 that this
form of advertising was a violation of the Federal laws, and he
premised to discontinue it«
kj,nd of promotion«
Several months later he resumed the same
Secret Service agents who lunched at his restaurant
received in change two silver dollars with stickers attached, and promptly
arrested Mr« Bohn«
He later pleaded guilty in Federal Court at Denver,
was fined #250 and was advised to change his advertising methods«
Accord
ing to the Secret Service, complaints have been made by banks and by
owners of merchandise vending machines to the effect that coins bearing
stickers interfere with counting and with mechanical operations«
A
Public losses from forged Government checks were far greater^ than
those from counterfeit money, Chief Baughman reported«
During the year
the Secret Service received 27,604 check forgery cases for investigation«
Agents completed 27,967 cases, involving forged checks worth #2,256,621.86,
and arrested 2,037 persons on forgery charges*
- 4 In New York City a truck driver frcm Buffalo used counterfeit $10
notes to finance a "bebop11 spree which landed him a prison tern*
James
Morris filled two wallets with the counterfeits and registered in a mid
town hotel, where he bought drinks for acquaintances at the bar and left
a handsome, if worthless, tip for the bartender«
Next morning he bought
what he called "bebop" shirts, ties and jackets and invited friends frcm
the Bronx to be his guests at a Times Square bebop dub«
During the
week-end he entertained his friends lavishly, insisting on paying all
checks for expensive meals and drinks«
When Morris prepared to check out of his hotel, he gave the cashier
two $10 notes which the cashier identified as counterfeits*
surprised, said he had received the bills frcm a bank*
Morris acted
He paid with
other money and went into the bar«
The hotel clerk notified the New York Secret Service office, and
a special agent went to the hotel with a New York police detective«
They found Morris in his rocm and asked to examine his money*
He pro
duced a billfold crammed with genuine $1 and $5 notes and explained
that he carried a quantity of small denominations so he would look like
a "big shot«"
Suddenly, without warning, Morris lunged toward the special agent
and at the same time hurled two wallets through a window which was open
about 16 inches*
While the detective stayed in the rocm, the special
agent rushed to the street below and found a man bending over the bill
folds which were in the gutter*
The special agent retrieved the wallets,
each of which held ten counterfeit $10 notes«
agents raided the house and arrested the pair, seizing the plates for
the #10 and #20 bills and a quantity of finished tens,
" Darneille attempted to take all blame for the enterprise, but agents
found Woody*s fingerprints on the counterfeit plates and he then confessed.
Both pleaded guilty.
Darneille was sentenced to 6i years, Woody to 6 years
and 9 months.
Another count**1* ' ^ ^ who not up hio plant in liis" heme in Jefferson,-«.
P
’
id" lOlir"'children.— The fugitive^
as
William B. Lancaster, was on parole frem Western State Penitentiary,
Pittsburgh, when he began to buy supplies that could^be used in making
counterfeit bills.
He worked the night shift in a^coal mine, and during
the morning was employed by a weekly newspaper in-rWftyn&flfaacgyzfco
When special agents .mufT convinced that Lancaster was manufacturing
counterfeit money, they obtained a search warrant for his hcane^ but dis
covered that he had fled aftw^tes^w^S^tud the owner of the weekly
A
newspaper out of #300 in a used-car deal.
Special Agents and Pennsylvania
State Police seized five plates for counterfeit #10 bills and several
proofs indicating that Lancaster was ready to produce finished counterfeits.
Lancaster stands indicted on the counterfeiting charge
for hif arrest nr
War-rants
ni.ao-»keld bv lotal authorities i*“
ie», Pa»
Lancaster is white, 26 years old
5 feet 7 inches, weighs 145 pounds, has gray eyes, brown hair, ruddy
complexion, and a pug nose.
Any information regarding his whereabouts
should be reported to the nearest office of the ü. S. Secret Service.
-
2
-
The decrease in counterfeiting followed the arrest and conviction
of four Chicago counterfeiters who had been the source of supply for
bogus $10 and $20 bills appearing in large cities from coast to coast*
During the year the Secret Service seized a total of $501,188*45 in
counterfeit bills and coins.
before it could be
[1,1
Of this amount, $269,163.40 was captured
'public and $232 ,025*05 was passed on
unsuspecting merchants and cashiers*
Agents arrested 220 persons for
violation of the counterfeiting laws and seized several plants*
In Seattle, Washington, a chance meeting between Harold 0* Woody
and Stockton V* Darneille led to a partnership in competition with the
Bureau of Engraving and Printing*
Woody and Darneille had become friends
in 1940, when both were serving prison terms at Leavenworth, Kansas*
At
the Seattle meeting they agreed to manufacture counterfeit $10 notes and
to sell the notes in wholesale quantities to underworld characters*
They made plates and printed a batch of counterfeits.
*they decided to test just one bill.
tried to spend it in a drug store in a Seattle suburb.
Darneille
The clerk,
Mrs. Shirley Austin, suspected the note and showed it to her husband.
They decided it was counterfeit, but Darneille had fled.
The Austins
reported the incident to the Secret Service.
From rogues* gallery photographs the Austins identified Darneille
as their would-be customer.
Agents learned Darneille was working in a
defense plant, along with Harold Woody.
two were living together in Woody's heme.
Surveillance revealed that the
Aimed with a search warrant,
//
- *3#
A lull in counterfeiting in 1952 was contrasted by an
increase in security duties for the U.
S. Secret Service,
which had a dual responsibility of protecting a President
and a President-elect for the first time in 20 years,
Chief U.
E. Baughman said in his 1952 year-end report^.
— first— ho has siibni''
— to— the— new— Seoi^tary-of thB
T r e a s u r y ? “— G o o r g e - M .~ H u m p h r e y ^ -
Simultaneous protection of President Truman and
President-elect Eisenhower necessitated the maintenance
of two details of special agents.
One squad, headed by
James J. Rowley, Special Agent in Charge of the White
House Detail, was assigned to Mr. Eisenhower at the
Commodore Hotel in New York City as soon as his victory
was conceded.
a g r n t s ..frf»indaQ±h^dg
.yLurtreU Lu ¿jluuuligatTyc
itw*
C h i e f B a u g h m a n r e v e a l e d that the S e c r e t S e r v i c e had
i n v e s t i g a t e d s e v e r a l o b s c e n e a nd t h r e a t e n i n g
letters
a d d r e s s e d to P r e s i d e n t E i s e n h o w e r b e f o r e h i s inauguration,
a n d s a i d s o m e of the l e t t e r - w r i t e r s h a d e a r l i e r w r i t t e n
to f o r m e r P r e s i d e n t Truman.
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
RELEASE SUNDAY NEWSPAPERS
Feb ru ary 1 5 , 1 9 5 .3 _________
H-30
A lull in counterfeiting in 1952 was contrasted by ah increase in
security duties for the U. S. Secret Service, which had a dual responsibility
of protecting a President and a President-elect for the first time in 20
years, Chief U. E , Baughman said in his 1 9 5 2 year-end report.
Simultaneous protection of President Truman and President-elect
Eisenhower necessitated the maintenance of two details of special agents.
One squad, headed by James J* Rowley, Special Agent in Charge of the White
House Detail, was assigned to Mr, Eisenhower at the Commodore Hotel in
New York City as soon as his victory was conceded.
Chief Baughman revealed that the Secret Service had investigated several
obscene and threatening letters addressed to President Eisenhower before his
inauguration, and said some of the letter-writers had earlier written to
former President Truman.
The d e c r e a s e i n c o u n t e r f e i t i n g f o llo w e d th e a r r e s t and c o n v i c t i o n o f
four Chicago c o u n t e r f e i t e r s who had been th e s o u rc e o f su p p ly f o r bogus
$10 and $20 b i l l s a p p e a rin g i n l a r g e c i t i e s from c o a s t t o c o a s t .
D uring
the y e a r th e S e c r e t S e r v ic e s e i z e d a t o t a l o f $ 5 0 1 , l 8 8 oU5 in c o u n t e r f e i t
b i l l s and c o i n s .
Of t h i s am ount, $ 2 6 9 , 1 6 3 diO was c a p tu r e d b e f o r e i t co u ld
be c i r c u l a t e d , and $ 2 3 2 ,0 2 5 * 0 5 was p a s s e d on u n s u s p e c tin g m e rch a n ts and
c a s h i e r s . A gen ts a r r e s t e d 220 p e rs o n s f o r v i o l a t i o n o f th e c o u n t e r f e i t i n g
laws and s e iz e d s e v e r a l p l a n t s .
In Seattle, Washington, a chance meeting between Harold 0, Woody and
Stockton V 0 Darneille led to a partnership in competition with the Bureau
of Engraving and Printing, Woody and Darneille had become friends in 19U0,
when both were serving prison terms at Leavenworth, Kansas, At the
Seattle meeting they agreed to manufacture counterfeit $10 notes and to
sell the notes in wholesale ..quantities to underworld characters.
They made plates and printed a batch of counterfeits. Then they decided
to test just one bill, Darneille tried to spend it in a drug store in a
Seattle suburb. The clerk, Mrs* Shirley Austin, suspected the note and
showed it to her husband# They decided it was counterfeit, but Darneille had
fled# The Austins reported the incident to the Secret Service,
From rogues* gallery photographs the Austins identified Darneille as
their would-be customer. Agents learned Darneille was working in a defense
plant, along with Harold Woody. Surveillance revealed that that the two
were living together in Woody* s home* Armed with a search warrant, agents
raided the house and arrested the pair, seizing the plates for the $10 and
<¡¡>20 bills and a quantity of finished tens.
2
Darneille attempted to take all blame for the enterprise, but agents
found Woody1s fingerprints on the counterfeit plates and he then confessed«
Both pleaded guilty« Darneille was sentenced to 6J years, Woody to 6 years
and 9 months«
Another counterfeiter, William B« Lancaster, was on parole from Western
State Penitentiary, Pittsburgh, when he began to buy supplies that could
be used in making counterfeit bills* He worked the night shift in a
Pennsylvania coal mine, and during the morning was employed by a weekly
newspaper•
When special agents became convinced that Lancaster was manufacturing
counterfeit money, they obtained a search warrant for his home in Jefferson,
Pennsylvania, but discovered that he had fled after swindling the owner of
the weekly newspaper out of $300 in a used-car deal« Special Agents and
Pennsylvania State Police seized five plates for counterfeit $10 bills and
several proofs indicating that Lancaster was ready to produce finished
counterfeitso
Lancaster stands indicted on the counterfeiting charge* Lancaster is
white, 26 years old, 5 feet 7 inches, weighs lU5> pounds, has gray eyes,
brown hair, ruddy complexion, and a pug nose* Any information regarding his
whereabouts should be reported to the nearest office of the U. So Secret
Service *
In New York City a truck driver from Buffalo used counterfeit $10 notes
to finance a nbebopM spree which landed him a prison term* James Morris
filled two wallets with the counterfeits and registered in a mid-town hotel,
where he bought drinks for acquaintances at the bar and left a handsome, if
worthless, tip for the bartender * Next morning he bought what he called
,<bebop,, shirts, ties and jackets and invited friends from the Bronx to be his
guests at a Times Square bebop club* During the week-end he entertained his
friends lavishly, insisting on paying all checks for expensive meals and
drinks D
When Morris prepared to check out of his hotel, he gave the cashier two
$10 notes which the cashier identified as counterfeits«» Morris acted
surprised, said he had received the bills from a bank* He paid with other
money and went into the bar*
The hotel clerk notified the New York Secret Service office, and a
special agent went to the hotel with a New York police detective» They found
Morris in his room and asked to examine his money* He produced a billfold
crammed with genuine $1 and $5 notes and explained that he carried a quantity
of small denominations so he would look like a "big shot«”
Suddenly, without warning, Morris lunged toward the special agent and
at the same time hurled two wallets through a window which was open about
16 inches* While the detective stayed in the room, the special agent rushed
to the street below and found a man bending over the billfolds which were
in the gutter* The special agent retrieved the wallets, each of which held
ten counterfeit $10 notes«
- 3 Morris was subsequently identified as having passed at least 15 counter
feits in Times Square restaurants and night clubs* Mien he refused to name
his source of supply, he was "bebopped** into a Federal penitentiary for six
years*
The adage that it pays to advertise doesn*t include advertising stuck
to United States coins* Eddie Bohn was arrested by Secret Service agents when
he persisted in gluing stickers on silver dollars advertising his Cafe hotel
Seryice Station at Denver* Bohn was warned in 1951 that this form of
advertising was a violation of the Federal laws, and he promised to discon
tinue it* Several months later he resumed the same kind of promotion*
Secret Service agents who lunched at his restaurant received in change two
silver dollars with stickers attached, and promptly arrested Mr. Bohn. He
later pleaded guilty in Federal Court at Denver, was fined $250 and was
advised to change his advertising methods. According to the Secret Service,
complaints have been made by banks and by owners of merchandise vending
machines to the effect that coins bearing stickers interfere with counting
and with mechanical operations.
Public losses from forged Government checks were far greater in 1952
than those from counterfeit money, Chief Baughman reported* During the year
the Secret Service received 27,60ij. check forgery cases for investigation.
Agents completed 27,967 cases, involving forged checks worth $2,256,621,86,
and arrested 2,037 persons on forgery charges.
From Louisville, Kentucky, came a report of the arrest of a trio of
check forgers who. put over a forgery but were caught when they went back to
steal a fingerprint. Two men, Nat Clinkscale and William J. Bradley, stole
a check payable to a woman, so they persuaded Dorothy Lewis to pose as the
payee, She and Bradley took the check to a store and bought women* s clothing.
Before cashing the check, the merchant asked the Lewis woman to place her
fingerprint on a card, which she did. The check was cashed and she and
Bradley left with the new clothes.
When they told Clinkscale what had happened, he insisted they should
return to the store and steal the fingerprint, They decided that Bradley and
the girl would go into the store, where she would attempt to steal some
merchandise, thus creating enough commotion to allow Bradley to steal the card
with the fingerprint. She tried to steal clothing from a counter, but when
she was promptly arrested by store detectives, Bradley became frightened and
Ued Without the fingerprint. Agents soon picked him up with Clinkscale and
ail three were convicted and sentenced to prison terms.
,. Bond forgeries were not as heavy in 1952 as in past years, Chief Baughman
shia, probably because more bond owners had learned to keep their defense
onds in safe deposit boxes. The Secret Service received ¿,909 bond forgery
cases for investigation and closed 1|,329 cases involving $3l*3,252.16, There
ere 97 persons arrested for bond forgery.
- k Fear and fire helped to catch one bond forger, Richard A# Shekoski, 2h,
of Hamtramck, Michigan, who tried to burn his clues behind him» Shekoski
was acquainted with a workman at the Plymouth Motor Car Company in Detroit
who let it be known that he had $3,925 worth of defense bonds in his home
in Utica, Michigan* Shekoski went to the house while the bond owner was at
work, entered with a skeleton key, and ransacked the place until he found
the bonds in a bureau drawer in the bedroom* He tried to cover up the theft
by setting fire to the mattress, but when it started to blaze, he apparently
became frightened, extinguished,it and left the house.
The next day he cashed four bonds at a Hamtramck bank, using for iden
tification an automobile registration certificate which he had also stolen
in the house. He then obtained an operator1s license bearing his own
description and used it to cash the rest of the 67 bonds.
He was soon arrested, pleaded guilty and was sentenced to 2j years in
prison,
In addition to counterfeiters and forgers, the Secret Service arrested
186 persons for other crimes, bringing total arrests to 2,5^0, There were
2,313 convictions, representing 98 percent of convictions in all cases that
were prosecuted.
Prison sentences during the year totaled 2,633 years and additional
sentences of 2,1199 years were suspended or probated. Fines in criminal cases
totaled $27,163 .60 ,
Cases of all types received for investigation, including counterfeiting
and forgery cases, totaled 39>U03, and although agents completed 39,157
investigations during the year, there was a backlog of 9,738 cases still
awaiting investigation as of December 31, Chief Baughman reported,
oOo
STANDARD F O R M NO. 64
Office Memorandum
TO
:
MR. SILER
FROM
:
MR. KILBY
•
united states government
d a te:
February 12, 1953
SUBJECT:
There is attached a press statement for release morning papers
tomorrow, February 13, which contains the formal notice of call
signed by Secretary Humphrey with respect to the redemption on
June 15, 1953, of the 2 percent Treasury Bonds of 1953-55*
MQHNim
Fridty, F»broary 13. ]|gägg
sbäss
Facratary of tha tmmmry Bunphray «nnounead ioday that all mitatandtng
2 pereant f&mmry Bond» of 1953-55# dalad Gctobar 7# 19$$# dua June 15# 1955#
ara called for r«d«*^t4©a an June 15» 1953* Thar« ara now autataiidiag
t72h#677#9ÖO hi tha«« bonda. fh« bonde of tfeia iaaua ara being called at thi*
tine beeause of Iba partially taxHwcawpt attribataa thay carry.
Tao ismtea of 2 pereant fraaanry Bond« ©f 1952-$*# Iba 2 pereant fraaaury
Banda ©f 1951-55# «ad tha 2-l/b porcanfc Treasury Boada of 1952-55# whieh «ra
also callabla on June 15# 1953# will *»t ba ©allad for r o d m p tio n on that dal«.
The taxt of
foraal notice of «all 4* a» fbllowat
twö
n m m t tm s n m n m m or 1953-55
(tdTBD ÖCfÄIR 7, 0 9 T
»02151
of
cm
wmmim
fo Holdara of 2 pereant fraaaury Bond« of 1953-55» «ad Othera Coneemed:
1. Public notica 1c heraby given that all outatanding f paraast fraaaury
Bonde of 1953-55# datad Octobar 7» 191*0, du« Jen« 15, 1955# «ra haraby called
for radaaptlon on Jana 15# 1953# on which data intaraat on auch bonde will
eeaao*
2. Holdara ©f thaaa bonde aay, in advanee of th« redaaptiaii dato, ba
offarad tha prlvilage of «xehangtng all or any pari of thair «allad bonds fer
otbar intaroet-boaring Obligation« of tha United Stataa# in which avant public
notica will heraaftar ba given and «n offiaial circular governing th« «aehaag«
offering will ba laatiad*
3. Fall Information ragardiag th« preaantation and «urrandar of tha boadi
for «aah redamption ander thia «all will ba found in Department Circular
Ho. S S , datad «luly 21# 19hl*
Q« X» Huaphray#
Saeratary of tha fraaaury.
«Mtssur » m t m « #
Washington, Februar/ 13# 1953*
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON,
RELEASE M O R N I N G N EWSPAPERS,
Friday, F e b r u a r y 13, 1953,
H-31
Secretary of the Treasury Humphrey announced today that all
outstanding 2 percent Treasury Bonds of 1953-55, dated October 7,
1940, due June 15, 1955, are called for redemption on June 15,1953.
There are now. outstanding $724,677,900 of these bonds.
The bonds
of this issue are being called at this time because of the
partially tax-exempt attributes they carry.
Two issues of 2 percent Treasury Bonds of 1952-54, the 2
percent Treasury Bonds of 1951-55, and the 2-1/4 percent Treasury
Bonds of 1952-55, which are also callable on June 15, 1953, will
not be called for redemption on that date.
The text of the formal notice of call is as follows:
TWO PERCENT TREASURY BONDS OF 1953-55
(DATED OCTOBER 7, 194o}
N O T I C E OF C A L L F O R R E D E M P T I O N
To Holders of 2 percent Treasury Bonds of 1953-55, and Others
Concerned:
1. Public notice is
percent Treasury Bonds of
June 1 5 , 1955, are hereby
on which date interest on
hereby given that all outstanding 2
1953-55, dated October 7 , 1940, due
called for redemption on June 15, 1953,
such bonds will cease.
,, \
Holders of these bonds may, in advance of the redemption
aate, be offered the privilege of exchanging all or any part of
called bonds for other interest-bearing obligations of the
united States, in which event public notice will hereafter be given
to«
offic-al circular governing the exchange offering will be
issued.
of
lnfo-m ation regarding the presentation and surrender
i w ™ ® bo^d ^ for -cash redemption under this call will be found in
apartment Circular No. 6 6 6 , dated July 21, 1941.
G . M . Humphrey,
secretary of the Treasury.
TREASURY d e p a r t m e n t ,
Washington, February 13 , 1953 .
0 O0
IMMEDIATE RELEASE,
Friday, February 13. 1953
The Secretary of the Treasury today announced the subscription and allot
ment figures with respect to the current offering of 2-1/4 percent Treasury
Certificates of Indebtedness of Series A-1954 and 2-1/2 percent Treasury Bonds
of 1958, to be dated February 15, open to the holders of 1-7/8 percent Treasury
Certificates of Indebtedness of Series A-1953, maturing February 15*
Subscriptions and allotments were divided among the several Federal Reserve
Districts and the Treasury as follows«
Federal Reserve
District _____
_ ,,
;(/
Boston
New fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
Series A-1954
Certificates
Total Subscriptions
Received & Allotted
$
155 ,646,000
5,533,099,000
83,898,000
270,093,000
113 ,044,000
189,611,000
724,206,000
210,441,000
131,676,000
269,473,000
143,290,000
243,695,000
45.920,000
$8,114,092,000
Treasury Bonds
of 1958______
Total Subscriptions
Received & Allotted
f
$ 20,960,000
310,562,000
19,973,000
3 6 ,023,000
19 ,443,000
18,299,000
76,161,000
21,393,000
14,069,000
21,307,000
18,098,000
43,008,000
932.000
$620,228,000
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON,
M E D I A T E RELEASE,
Friday, February 13* 1953.
H-32
The Secretary of the Treasury today announced the subscription
and allotment figures with respect to the current offering of 2-1/4
percent Treasury Certificates of Indebtedness of Series A-1954 and
2-1/2 percent Treasury Bonds of 1958, to be dated February 15, open
to the holders of 1-7/8 percent Treasury Certificates of Indebtedness
of Series A-1953, maturing February 15.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District
Series A-1954
Certificates
Total SuEscriptions
Received & Allotted
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Treasury Bonds
of 1958
To tail Subscription s
Received & Allotted
155,646,000
5,533,099,000
83,898,000
270.093.000
113.044.000
$ 2 0 , 9 6 0 ,0 0 0
3 1 0 ,5 6 2 ,0 0 0
19.973.000
3 6 .0 2 3 .0 0 0
19.443.000
189 611.000
18 299.000
76 161,000
.
724.206.000
210.441.000
.
,
Dallas
San Francisco
Treasury
269.473.000
143.290.000
243.695.000
45,920,000
21.393.000
14.069.000
2 1 .3 0 7 .0 0 0
18.098.000
43,008,000
932,000
TOTAL
$8,114,09^,000
$ 6 2 0 , 2 2 8 ,0 0 0
Kansas City
.
131 676.000
0 O0
If .■>
RELEASE GENING NEWSPAPERS,
Tuesdaj, February 17« 1953*
The Secretary of the Treasury announced last evening that the tenders for
$1,300,(XX),000, or thereabouts, of 91-day Treasury bills to be dated February 19 and
to mature May 21, 1953, which were offered on February 12, were opened at the Federal
Reserve Banks on February 16*
The details of this issue are as follows:
Total applied for - $2,291,51*5,000
Total accepted
- 1,301,266,000 (includes $21*2,001,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99*500/ Equivalent rate of discount approx* 1*976$ per annua
Range of accepted competitive bids:
High
Low
- 99*520 Equivalent rate of discount approx* 1*899$ per annua
- 99*1»98
*
it «
»
«
1.986$ »
«
(19 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Sew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisoo
$
$
Total
20, 738,000
1,527,939,000
30.785.000
56,1*93,000
19 ,938,000
770,1*51*,000
13, 880,000
1*2 , 975,000
268 , 925,000
51*,21*2 ,0 0 0
17 , 657,000
51*,332,000
60 , 91*5 ,0 0 0
137, Sili,000
31*,673*000
17,700,000
31*,926,000
175,969,000
39,1*31,000
Ik,71*2,000
38,39k,000
38,925,000
102,23k,000
$2 , 291 , 51*5 ,0 0 0
11 ,301,266,000
.
18 700.000
RELEASE MORNING NEWSPAPERS>
Tuesday, February 17,. 1953.
H-33
The Secretary of the Treasury announced last evening that the
tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bills
to be dated February 19 and to mature May 21, 1933, which were
offered on February 12, were opened at the Federal Reserve Banks on
February lb .
The details of this issue are as follows:
Total applied for - $2,291,545,000
1,301,265,000 (includes $242,061,000
Total accepted
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
99.500/ Equivalent r a t e of discount approx.
Average price
1.976$ per annum
Range of accepted
High
competitive bids:
- 99.520 Equivalent rate
1.899$
- 99.498 Equivalent rate
1.936$
Low
of discount approx.
per annum
of discount approx.
per annum
(19 percent of the amount bid for at the low price was accepted)
Federal Reserve
District______ _
Total
____ Applied for______
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
20 738,000
42 975,000
925,000
54 242,000
17 657,000
54 332,000
60 945,000
137 814,000
19,938,000
770,454,000
13,880,000
34,673,000
17,700,000
34,926,000
175,969,000
39,431,000
14,742,000
38,394,000
38,925,000
102,234,000
$2,291, 545,000
$1,301,266,500
1,527 939,000
30 785,000
56 493,000
18 700,000
268
TOTAL
Total
Accepted
0 O0
$
-
b
-
Seizures valued at many thousands of dollars were made in foiling
attempts to export a wide variety of merchandise without valid licenses
from the Office of International Trade, Department of Commerce.
of these seizures involved strategic materials.
Many
her investigations
involved falsification of documents to obtain favorable Customs treat
ment of goods manufactured in Iron Curtain countries.
On the West
Coast agents smashed an extensive traffic
Sitatesy in goods of suspected Communist Chinese origin.
These importa
tions were in violation of Foreign Assets Control regulations intended
to prevent the Communist Chinese Government from earning dollars in
commerce with this country.
Several major investigations during the year involved attempts to
export arms and ammunition without valid State Department licenses.
*
*
*
- 3 -
/E^rgest of several cattle smuggling cases developed in the TexasMexico border area, prior to lifting of the Department of Agriculture
quarantine against livestock importations from that country, reached
a successful conclusion just after the turn of the new year.
Feur
principals were convicted in Federal court at El Paso, on charges of
conspiracy and smuggling.
The case involved several hundred head of
cattle stolen in Mexico, driven across the Rio Grande at isolated spots,
and subsequently dispersed through auction sales marketsihr from the
border.
Customs officers, in a monthji long, painstaking checking of
sales records, brand identifications and other evidence, traced most
of the animals, some into adjoining States, and effected seizures.
Cattle smuggling also constituted a problem on the Canadian border
after imposition of the hoof and mouth disease quarantine against that
country.
There was the usual run of individual, efforts to import high value
articles without payment of duties, with several seizures of jewelry
valued up to $25,000 and more.
One of the major commercial smuggling
efforts thwarted occurred at the port of New York, when $15,000 worth
of watch movements were found concealed in a case of porcelain ware.
At Tampa, Florida, agents did a bit of under cover work to ISAiSSr^
a neat scheme of officers of a Spanish vessel to peddle liquors sup
posedly safely under Customs seal while the ship was in port.
It was
found a secret trap door into the storeroom was being employed to
the liquor to private sale.
divert
Beverages valued at $500 were seized and
heavy penalties levied against the violators.
-
2
-
e v id e n c e o f a p p r o p r ia te custom s c l e a r a n c e sh o u ld be i n s i s t e d upon in
th e p u b lic i n t e r e s t and f o r th e d e a l e r s ’ own p r o t e c t i o n .
D uring th e p a s t y e a r t h e r e have been r e p o r te d s e v e r a l d e a th s from
p s itta c o s is
in t h i s c o u n tr y , and one custom s a g e n t p a r t i c i p a t i n g in the
s e i z u r e s s u f f e r e d a c r i t i c a l i l l n e s s d ia g n o se d a s t h i s d i s e a s e .
Customs o f f i c e r s co n tin u e d t o wage e f f e c t i v e w ar a g a i n s t in te rn a tio n a l
n a r c o t i c t r a f f i c k e r s , w ith more l a r g e , in d i v i d u a l s e i z u r e s b e in g e ffe c te d
th a n h as b een th e c a s e in r e c e n t y e a r s .
One su ch c a s e in v o lv e d 1 0 5 pounds
o f opium found by custom s s e a r c h e r s ab o ard a f o r e i g n f l a g v e s s e l a rriv in g
a t th e p o r t o f P h i l a d e l p hl iaa . H S ix ty o unces o f smoking opium w ere captured
n e a r C a l e x i c o , C a l i f o r n i a , a lo n g w ith two a u to m o b ile s .
m ade.
Two a r r e s t s were
The opium , p ack ed in to b a c c o c a n s , was c o n c e a le d i n s id e a door
p a n e l o f one o f th e c a r s .
S e v e r a l o t h e r l a r g e s e i z u r e s o f opium were
made in t h i s a r e a , a s w e l l a s a t A riz o n a and T exas b o rd e r p o i n t s .
A t E l P a s o , T e x a s , a fo rm e r M exican p o l i c e o f f i c e r was c o n v ic te d in
F e d e r a l c o u r t in a c a s e in v o lv in g d e l i v e r y o f Vjf pounds o f opium t o an
u n d er c o v e r custom s a g e n t .
A t th e p o r t o f New Y o rk , a custom s i n s p e c t o r d is c o v e r e d 70 ounces of
\
h e r o in i n a f a ls e -b o tto m e d s u i t c a s e c a r r i e d by a f o r e i g n s tu d e n t a rriv in g
t o e n t e r s c h o o l in t h i s c o u n t r y .
A t San F r a n c i s c o ,
36
ounces o f th i s
d ru g w ere found a b o a rd an incom ing p a s s e n g e r l i n e r .
Numerous s e i z u r e s o f m arih u an a w ere made, p r i n c i p a l l y a t M exican
b o r d e r p o i n t s , r a n g in g up t o 1 0 0 pounds in in d i v i d u a l c a s e s .
S ix ty -
t h r e e pounds o f th e weed w ere found by s e a r c h e r s a b o a rd an I t a l i a n v e ss e l a r r i v i n g a t New O r le a n s .
¡nA
3*i
L ff,
✓
2^Tn
Auc+itfiZr
Illegal international traffic/ birds of the parrot famiiyb^g^wd«*■*• a major Customs enforcement problem
during 1952,Frank Dow, Com
missioner of Customs, reported today t? rir^acma^a.pnmmn^ n m i « tmpiim<>yy
A
The United States Public Health Service has a quarantine against
such bircLs, '¿fm t'knn pwi''*)builng1IXiilriflfr for the prevention of parrot fever
(psittacosis).
This quarantine is enforced by customs officers, and
for a number of years occasional seizures of small lots of the birds
have
been made, principally along the United States-Mexico border.
However, evidence developed by customs agents indicates large numbers of the birds haa1.luffh brought into Mexico from Belgium and Holland
A
during the past year, intended for the lucrative United States market.
The potentials of this illicit business have been estimated as high as
a quarter of a million dollars a year.
Runners attempt to deliver the birds
to confederates on the United States side of the line at isolated points,
or else employ trick cages concealed in automobiles moving through regu
lar ports of entry.
In at least one case the bird smugglers are believed
to have employed an airplane.
Customs officers have seized thousands of the birds and made a score
of arrests in combating the smugglers.
Birds valued at $30,000 were
taken as a result of a single investigation in the San Diego, California
area.
Texas border points also have been "hot spots" in the racket.
Chester A. Emerick, Deputy Commissioner of Customs and Head of the
Bureau's Division of Investigations, warned bird dealers to use every
precaution in the purchase of such birds. Proof of origin should be
required, and, if imported, as most of such birds on the market are,
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
RELEASE a f t e r n o o n n e w s p a p e r s ,
Wednesday,
F e b r u a r y 18,
1953.
H-3 4
Illegal i n t e r n a t i o n a l t r a f f i c in b i r d s of the p a r r o t f a m i l y
presented a m a j o r C u s t o m s e n f o r c e m e n t p r o b l e m d u r i n g 1952,
Frank Dow, C o m m i s s i o n e r of Customs, r e p o r t e d today.
The U n i t e d S t ates P u blic H e a l t h S e r v i c e has a q u a r a n t i n e a g a i n s t
years occasional s e i zures of small lots of the b i r d s h a v e b e e n made,
principally a l o n g the U n i t e d S t a t e s - M e x i c o border.
However, e v i d e n c e d e v e l o p e d b y c u s t o m s a g e n t s i n d i c a t e s large
numbers of the b i r d s w ere b r o u g h t into M e x i c o f r o m B e l g i u m and
Holland during the p a s t year, i n t e n d e d f o r the l u c r a t i v e
United States market.
The p o t e n t i a l s of this i l l i c i t b u s i n e s s hav e
been estimated as h i g h as a q u a r t e r of a m i l l i o n d o l l a r s a year.
Runners attempt to d e l i v e r the b i r d s to c o n f e d e r a t e s o n the
United States side of the line at i s o l a t e d points, or else e m p l o y
trick cages c o n c e a l e d in a u t o m o b i l e s m o v i n g t h r o u g h r e g u l a r p o r t s of
entry.
In at least one case the b i r d s m u g g l e r s are b e l i e v e d to
have employed an. airplane.
Customs o f f i c e r s h a v e s e ized t h o u s a n d s of the b i r d s a n d m a d e
a score of ar r e s t s in c o m b a t i n g the smugglers.
B i r d s v a l u e d at
$30#000 were t a k e n as a r e s u l t of a single, i n v e s t i g a t i o n ' i n the
San Diego, C a l i f o r n i a area.
Texas b o r d e r p o i n t s a l s o h a v e b e e n
hot spots" in the racket.
Chester A. Ernerick, D e p u t y C o m m i s s i o n e r of C u s t o m s a n d H e a d of
the Bure a u rs D i v i s i o n of I n v e s t i g a t i o n s , w a r n e d b i r d d e a l e r s to
use every p r e c a u t i o n In the p u r c h a s e of such birds.
P r oof of o r i g i n
should be required, and, if imported, as m o s t of such b i r d s on the
market are, e v i d e n c e of a p p r o p r i a t e c u s t o m s c l e a r a n c e s h o u l d be
insisted u pon in the p u b l i c i n t e r e s t a n d f o r the d e a l e r s 1 o wn
protection.
Durine: th^ p a s t y e a r there h a v e b e e n r e p o r t e d s e v e r a l d e a t h s
sis in this country, a nd one c u s t o m s a g e n t p a r t i c i p â t tug in the sei
izures s u f f e r e d a c r i t i c a l i l l n e s s d i a g n o s e d as this
disease.
120
-
2
-
Customs officers continued to wage effective war against
international narcotic traffickers, with more large, individual
seizures being effected than has been the case in recent years.
One such case involved 105 pounds of opium found by customs
searchers aboard a foreign flag vessel arriving at the port of
Philadelphia.
Sixty ounces of smoking opium were captured near Calexico,
California, along with two automobiles.
Two arrests were made.
The opium, packed in tobacco cans, was concealed inside a door panel
of one of the cars.
Several other large seizures of opium were
made in this area, as well as at Arizona and Texas border points.
At El Paso, Texas, a former Mexican police officer was
convicted in Federal court in a case involving delivery of 47 pounds
of opium to an under cover customs agent.
At the port of New York, a customs inspector discovered 70
ounces of heroin in a false-bottomed suitcase carried by a foreign
student arriving to enter school in this country.
At San Francisco,
36 ounces of this drug were found aboard an incoming passenger
liner.
Numerous seizures of marihuana were made, principally at
Mexican border points, ranging up to 1 0 0 pounds in individual cases.
Sixty-three pounds of the weed were found by searchers aboard an
Italian vessel arriving at New Orleans.
The largest of several cattle smuggling cases developed in the
Texas-Mexico border area, prior to lifting of the Department of
Agriculture quarantine against livestock importations from that
country, reached a successful conclusion just after the turn of the
new year. Four principals were convicted in Federal court at
El Paso, on charges of conspiracy and smuggling.
The case involved
several hundred head of cattle stolen in Mexico, driven across the
Rio Grande at isolated spots, and subsequently dispersed through
auction sales markets far from the border.
Customs officers, in
a month long, painstaking checking of sales records, brand
identifications and other evidence, traced most of the animals,
some into adjoining States, and effected seizures.
Cattle s m u g g l i n g a l s o c o n s t i t u t e d a p r o b l e m on the C a n a d i a n
order after i m p o s i t i o n of the h o o f a n d m o u t h d i s e a s e q u a r a n t i n e
against that country.
'
121
- 3 -
There was the usual run of individual efforts to import high,
value articles without payment of duties, with several seizures of
jewelry valued up to $25*000 and more.
One of the major
commercial smuggling efforts thwarted occurred at the port of
New York, when $15,000 worth of watch movements were found
concealed in a case of porcelain w a r e .
At Tampa, Florida, agents did a bit of under cover work to
check a neat scheme of officers of a Spanish vessel to peddle
liquors supposedly safely under Customs seal while the ship was in
port. It was found a secret trap door into the storeroom was
being employed to divert the liqpor to private sale.
Beverages
valued at $ 5 0 0 were seized and heavy penalties levied against the
violators.
Seizures valued at many thousands of dollars were made in foil
ing attempts to export a wide variety of merchandise without valid
licenses from the Office of International Trade, Department of
Commerce. Many of these seizures involved strategic materials.
Other investigations involved falsification of documents to
obtain favorable Customs treatment of goods manufactured in Iron
Curtain countries.
On the West Coast agents smashed an extensive
traffic in goods of suspected Communist Chinese origin.
These
importations were in violation of Foreign Assets Control regulations
intended to prevent the Communist Chinese Government from earning
dollars in commerce with this country.
Several major investigations during the year involved
attempts to export arms and ammunition without valid State
Department license s.
oOo
- 3 -
s u b je ct to e s t a t e , in h e r ita 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 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 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 io n s o f th e U n ited S t a t e s , o r by an y l o c a l t a x i n g a u t h o r i t y .
For
p u rp o se 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 T re a s u ry b i l l s are
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s
and 1 1 7 ( a )
(X ) o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n 1 1 5 o f th e Revenue A ct o f I 9I4I , th e amount o f discou n t
a t w hich b i l l s
is s u e d h e re u n d e r a r e s o ld s h a l l n o t be c o n s id e re d to
a c c r u e u n t i l such b i l l s
s h a l l be s o l d , redeem ed o r o th e r w is e d isp o se d o f,
and such b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u r a n c e companies)
is s u e d h ere u n d e r need in c lu d e in h i s income t a x r e t u r n o n ly th e d iffe re n ce
betw een th e p r i c e p a id f o 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 seq u en 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 le
o r red em p tio n a t m a t u r i t y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 ent C i r c u l a r No. I4I
8 , a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T r e a s u r y b i l l s and g o v ern th e c o n d itio n s o f
th e i r is s u e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
Reserve.Bank or Branch.
-
2
-
M i
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 wade 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
February 26, 1953 * in cash or other immediately available
funds or in a like face amount of Treasury bills maturing February 26, 1953 .
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
isÉntiBÜnaà
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 17, 1933
»
*
3
The Secretary of the Treasury, by this public notice, invites tenders
for $1,300,000,000
3
or thereabouts, of
-day Treasury bills, for
91
cash and in exchange for Treasury bills maturing February 26, 1953
the amount of $ 1 ,300,013,000
, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
May 28, 1953______
m
February 26, 1953
---------- |
7-n
p-p
r-- --- *
---
The bills
, and will mature
, when the face amount will be payable without in-
IjaSnW
terest*
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value),
Tenders will be received at Federal Reserve Banks and Branches, up to the
closing hour, two o ’clock p.m., Eastern Standard time,Friday, February 20, 1953-
JJ"
'
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
The Secretary of thé. Treasury, by this public notice, invites
tenders for $1,300,000,;000,. or thereabouts, of 91-day Treasury
bills, for cash and in exchange for. Treasury bills maturing
February 26, 1953/ in the amount of $1,300,013,000, to be issued
on a discount basis under competitive and non -c omp e t i tîve bidding
as hereinafter provided..
The bills of this series will be dated : '
February 26', 1953/ and ’wil 1 mature May 28, 1953 , 1 when the fa,ce
amount will be payable without interest.• They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, '
$100,000, $500,000, and $1/000,000. (maturity value ).
/
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o *clock p ,m., Eastern Standard time,
:
Friday, February 20, 1953.
Tenders Will hot be received at the
Treasury Department,.Washington.. Each tender must be for an even; ";;
multiple of $1,000, and in the lease of competitive tenders, the price
offered, must be expressed on the. .basis of 100, with not more than
three decimals, e. g., 99.925'.
Fràctions may not be used.
It is
1
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, p
Y
; .
<Others than banking institutions will not be permitted to
submit tenders except for their own a c c o u n t . ...Tenders will be
received without deposit/from incorporated banks and trust companies
and from responsible and recognized dealers in investment securities,
renders from others must be accompanied by payment of 2 percent of
the face amoimt of Treasury bills applied for, Unless the tenders
~
are accompanied by an express guaranty of payment by an incorporated
oank 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
ail be advised of the acceptance or rejection thereof.
The
eçretary of the Treasury expressly reserves the right to accept or
^e«]ect any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
on-competitive tenders for $200,000 or less without stated price
nom any one bidder will be accepted in full at the average price
2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on February 2o, 1953*" in
cash or other immediately available funds or in a like face amount
of Treasury bills maturing February 26* 1953.
Cash and exchange
tenders will receive eQ.ua1 treatment. Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of .the n e w bills.
, The income derived from Treasury bills, whether interest or
gain f r o m ,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
supplement ary 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 hereax•uer 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 amoiint of discount at which •.Treasury
bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 11T (n) (1) ox the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of •19^i
the amount of discount at which bills issued hereunder are sold
shall hot be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bib.Is are excluded from
consideration as capital assets.
Accordingly, the owner of
Treasury bills.(other than life insurance companies) issued here
under need /include in his income tax return onl^-the^difference-between the price paid for such bills, whether oh 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.
i ic Treasury Department Circular No. 4l8, a s .amended, and this
notice, prescribe the terms of the Treasury bills arid govern-the .
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
oOo
3
and Company,
I ncorporated;
Vice President,
Washington,
G» H a r o l d W e l c h of N e w Haven,
th e N e w H a v e n Bank;
President,
a n d R e n o O d l i n of Tacoma,
P u g e t S o u n d N a t i o n a l Bank,
with
Mr» O d l i n as ch a i r m a n »
T h e s t a t u s of S e r i e s F, G, J a n d K b o n d s
p r o g r a m is u n d e r study»
a n n o u n c e d in d ue course»
in the overall
P o l i c y r e g a r d i n g t h e m w i l l be
Meanwhile,
t he e m p h a s i s is upon
i n c r e a s e d s a l e s of S e r i e s £ a n d H b o nds»
* 3|c * * * * *
2
c u m u l a t i v e e f f o r t s of m a n y t h o u s a n d s of p a t r i o t i c volunteer
w o r k e r s , a n d t h e d e e p l y i n g r a i n e d t h r i f t ^ a b i t s of the
a
a
J uA M A / M* |j3
confidence in the stability of the U« S. dollar*
"The public debt, which now amounts to $267 billion,
is a major influence on the economic life of the Country*
O u r f i r s t t a s k is to k e e p th e deb t f r o m i ncreasing,
t h e n to r e d u c e it g r a d u a l l y .
c o o p e r a t i o n of t h e C o n g r e s s ,
and
T h i s w i l l t a k e t h e vigorous
the A d m i n i s t r a t i o n ,
a n d the
A m e r i c a n people.
"As P r e s i d e n t E i s e n h o w e r s a i d in h i s r e c e n t m e s s a g e
to the C o n g r e s s ,
a n o t h e r e s s e n t i a l s t e p is to l e n g t h e n the
d ebt so tha t not so m u c h of it f a l l s d ue w i t h i n t he next few
years,
people,
a n d t o s p r e a d t he o w n e r s h i p of the deb t a m o n g all the
so t hat m u c h less of it w i l l b e c o n c e n t r a t e d in
banking institutions.
"The b e s t w a y to s p r e a d t he o w n e r s h i p of t h e debt is
to sel l m o r e S a v i n g s B o n d s .
E v e r y p u r c h a s e of S a v i n g s Bonds
helps place the public debt on a sounder basis."
T h e c o m m i t t e d o f ^ S t a t e C h a i r m e n w i t h w h i c h Mr. Burgess
A
a n d o t h e r T r e a s u r y o f f i c i a l s c o n s u l t e d w a s c o m p o s e d of
J o h n C. C o r n e l i u s ,
of M i n n e a p o l i s ,
B a r ton, D u r s t i n e a n d Osbor n e ;
V i c e P r e s i d e n t of
L o r i n g L. G e l b a c h of
P r e s i d e n t , C e n t r a l N a t i o n a l B a n k of C l e v e l a n d ;
Batten,
Cleveland,
H o w a r d D.
M i l l s of L o s A n g e l e s , V i c e P r e s i d e n t of t h e L i o n e l D. Ed ie
MiWiirwurwiKirnrwMiMiiiWnnnu« ^
RELEASEA
JLg.t.JLg.53.
\*y
T h e T r e a s u r y and r e p r e s e n t a t i v e s of t he n a t i o n w i d e
o r g a n i z a t i o n of v o l u n t e e r s a l e s m e n of U. S. S a v i n g s Bonds
ar e a g r e e d on e n e r g e t i c p r o m o t i o n of th e s a l e of Savings
B o n d s as a m a j o r f e a t u r e of t he G o v e r n m e n t ' s o v e r - a l l debt
m a n a g e m e n t policies,
it w a s s t a t e d t o d a y to a m e e t i n g of
the N a t i o n a l W o m e n ' s A d v i s o r y C o m m i t t e e o n U. S. Savings
B o n d s / b y W. R a n d o l p h Bu r g e s s , D e p u t y to S e c r e t a r y of the
T r e a s u r y G. M. H u m p h r e y .
T h e s a l e of S a v i n g s B o n d s is a
A
n o n p a r t i s a n m o v e m e n t for r e a s s u r i n g the s o u n d n e s s of the
U. S. Jtfollar.
"No c h a n g e s in th e for m or t e r m s of S e r i e s E and
S e r i e s H S a v i n g s B o n d s a r e u n d e r c o n s i d e r a t i o n , " Mr. Burgess
said.
"A c o m m i t t e e r e p r e s e n t i n g the v o l u n t e e r S t a t e Chairmen
h as b e e n in W a s h i n g t o n for s e v e r a l d a y s c o n f e r r i n g w i t h us,
and we met
last w e e k w i t h a C o m m i t t e e of t he A m e r i c a n
Bankers Association.
T h e s e g r o u p s a g r e e t hat
and prospective market,
in the present
S a v i n g s B o n d s of the f a m i l i a r E series
as w e l l as t h e n e w e r b o n d s of t he H s e r i e s a r e attractive as
to r a t e s a n d terms.
T h e J a n u a r y s a l e s f i g u r e s ^ t f S S w f l ^ saltg^
>0Q3V
s u b s t a n t i a t e this opini o n .
The|P* J a n u a r y r e s u l t s reflect the
TREASURY
D EPA RTM EN T
Information Service
RELEASE 2:30 P.M. E.S.T.
Monday, February 16 , 1953.
WASHINGTON, D .C.
H-36
The Treasury and representatives of the nationwide organization
of volunteer salesmen of U. S„ Savings Bonds are agreed on energetic
promotion of the sale of Savings Bonds as a major feature of the
Government's over-all debt management policies, it was stated
today to a meeting of the National Women's Advisory Committee on
U. S. Savings Bonds by W. Randolph Burgess, Deputy to Secretary of
the Treasury G. M* Humphrey.
The sale of Savings Bonds has been
and is a nonpartisan movement for reassuring the soundness of the
U. S. dollar.
"No changes in the form or terms of Series E and Series H
Savings Bonds are under consideration,” Mr. Burgess said.
UA committee representing the volunteer State Chairmen has
been in Washington for several days conferring with us, and we met
last week with a Committee of the American Eankers Association.
These groups agree that in the present and prospective market,
Savings Bonds of the familiar E series as well as the newer bonds
of the H series are attractive as to rates and terms.
The
January sales figures substantiate this opinion.
The January
results reflect the cumulative efforts of many thousands of
patriotic volunteer workers, and the deeply ingrained thrift
habits of the American people.
They appear to reflect also
a renewed confidence in the stability of the U. S. dollar.
"The public debt, which now amounts to $26? billion, is a major
influence on the economic life of the Country.
Our first task is
to keep the debt.from increasing, and then to reduce it gradually*
This will take the vigorous cooperation of the Congress, the
Administration, and the American people.
"As President Eisenhower said in his recent message to the
Congress,^another essential step is to lengthen the debt so that not
so much of it fails due within the next few years, and to spread the
ownership of the debt among all the people, so that much less of it
will be concentrated- in banking institutions.
- 2 "The best way to spread the ownership of the debt is to sell
Every purchase of Savings Bonds helps place
the public debt on a sounder b a s i s .”
more Savings Bonds.
The committee of volunteer State Chairmen with which
Mr. Burgess and other Treasury officials consulted was composed of
John C. Cornelius, of Minneapolis, Vice President of Batten,
Barton, Durstine and Osborne; Loring L. Gelbach of Cleveland,
President, Central National Bank of Cleveland; Howard D, Mills of
Los Angeles, Vice President of the Lionel D. Edie and Company,
Incorporated; G. Harold Welch of New Haven, Vice President, the
New Haven Bank; and Reno Odlin of Tacoma, Washington, President,
Puget Sound National Bank, with Mr, Odlin as chairman.
The status of Series P, G, J and K bonds in the overall
program is under study.
Policy regarding them will be announced
In due course.
Meanwhile, the emphasis is upon increased sales of
Series E and H bonds.
0 O0
To:
FROM:
Leon M . Sii
Room 3420
Wm
SSf
iiiii).uiiiiiiM irtiwWPTwiiiiiiii.................in
&W''W
A native of Webster, Mass«, Mr, Lennartson is the
son of Mrs, Anna and the late Andrew L, Lennartson of
Concord, Mew Hampshire,
He was graduated from Bates
College, Lewiston, Maine, in 1936 and for six years
served as a reporter for the Guy Gannett Newspapers at
Portland, Maine, L e n n a r tson entered the Air Force as
l^attm
a private in 1942 and went on inactive duty as a captain
in 1945 after service overseas and in Washington,
D.C.
He was with the Maine Central Railroad at Portland,
Maine, and the 0. S. Steel Corporation at Boston, Mass,,
mm.
until returning to the Air Force as a civilian in 1948,
He received the Air Force*s Exceptional Civilian Service
Award for "distinguished patriotic service from June 1948
& ££
m M
to February 1952" in May, 1952,7&>.Lennartson, married to
IwpMi
the former Emily E, Weston of SRowhegan, Maine, now lives
M S M
at Box 214M, Fort Bunt Road, Alexandria, Virginia.
111#
JamMm
Jg £
I
mmm
M
¡a&pESL_
pr ■
-J&m....
¡¡»if
life
P&jifll
Vi
m m m m gmamsm.
im
M
Secretary of the Treasury George M. Humphrey today
appointed Nils A. Lennartson, 37, of Falmouth Foreside,
Maine. »
Assistant to the Secretary «o#-t.ho -Treasury*«
Secretary Humphrey said that Mr. Lennartson would
have specific responsibility for public information
activities in the Department of the Treasury as well as
other duties assigned by the Secretary.
Ju.
Lennartson, now Director of Public Information for
the Department of Commerce, will assume the Treasury
post about February 23.
He went with the Commerce
Department a year ago after nearly four years as
Deputy Director of Public Relations and Special Assistant
to the Secretary of the Air Force at the Pentagon.
\
\\
\\
\
\
\
\
\
JLO
RELEASE MORNING NEWSPAPERS
Thursday, February 19, 195.3
H-37
Secretary of the Treasury George M# Humphrey today appointed Nils A»
Lennartson, 37* of Falmouth Foreside* Maine, an Assistant to the Secretary.
1
Secretary Humphrey said that Mr* Lennartson would have specific
responsibility for public information activities in the Department of the
Treasury as well as other duties assigned by the Secretary.
Mr* Lennartson, now Director of Public Information for the Department
of Commerce, will assume the Treasury post about February 23® He went
with the Commerce Department a year ago after nearly four years as Deputy
Diiector of Public Relations and Special Assistant to the Secretary of the
Air Force at the Pentagon.
A native of Webster, Massachusetts, Mr* Lennartson is the son of
Mrs* Anna and the late Andrew L. Lennartson of Concord, New Hampshire,» He
graduaoed from Bates College, Lewiston, Maine, in 1936 and for six years
served as a reporter for the Guy Gannett Newspapers at Portland, Maine. Mr.
Lennartson entered the Air Force as a private in 19h2. and went on inactive
duty as a captain in 19h5 after service overseas and in Washington, D.C.
He was with the Maine Central Railroad at Portland, Maine, and the U. So
Steel Corporation at Boston, Massachusetts, until returning to the Air
Force as a civilian in 19U8. He received the Air Foi’ce^s Exceptional
Civilian Service Award for "distinguished patriotic service from June 19k&
to February 1952” in May, 1952*. Mr. Lennartson, married to the former
Emily E* Weston of Skowhegan, Maine, now lives at Box 211*M, Fort Hunt..Road,
Alexandria, Virginia,
oOo
4
mmim mnmrn mmnmm,
Saturday* February 23b 19$3*
fh * m m m lm m
of ¡pp Treasury m em tm m â last m m & m that tot tender« 1
$1*300*QÖQ*000, or tuereabou&s* of 91-day Treasury bill» b» b» datad February 26 gBd
to suture May 28* 1953* MUds ear# offered on February IT* w
opened at tlie Federal
mernnm Betík» m February 20»
The detall» of thta l a w are a» followsi
Total allied for - $1*992*840*000
Total acoapted
- 1,300,1*95,000
âverage prie»
(loeludea 5196,131,000 enter«) an a
mr^aapetltlire basis and accepted in
full at the average prie» t a below)
~ 99*4?? % u i w 0 # & t rate of discount apprese. 2#0?01^per ¿mm
Bauge of accepted competitive bids*
High
* 99*550 leplmtefe rate of discount appro*. 1 « ? ^ per m m
U rn
* 9 9 .4 7 0
*
*
»
*
■
2#Q9?£ *
(ft permit of the amount bid for at the lew price waa accepted)
Federal t a t t i
O ietrlct
Applied for
Boston
1
Mm ImU
Cleveland
Eiciifflpnd
Atlanta
Chi.cago
S t, Uwia
SyinrM^apnli*i
jf»n«fl« C^.^F
Osila»
Francisco
fetal
ai,oiit,ooQ
1,106,621,000
29,210,000
58,860,000
16,372,000
18*545*000
Total
Accepted
§
13, Oil*,000
819,016,000
U*,2k3,930
57,208,000
15,(^2,000
I8.51i5.ooo
202,717,000
37,865,000
9,908,000
ItS,213, 000
1*0, Odi*,000
____93.325,000
11*8,907,000
3lt,205,300
9,988,000
$1*992*840*000
$1*300,4^*000
1*2,213,000
38,081*,000
85,025,000
*
13g
HELSASS MORNING NEWSPAPERS,
Saturday., February 21, 1 9 5 3 .
H-3 8
The ^Secretary of the Treasury announced last evening that the
tenders for $1,300,000,000, or thereabouts, of 91-day Treasury bills
to be dated February 26 and to mature May 2 8 , 1953, which were
offered on February 17, were opened at the Federal Reserve Banks on
February 20.
The details of this issue are as follows:
Total applied for - $1,992,840,000
Total accepted
- 1,300,495,000 (includes $196,134,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.477 Equivalent rate of discount approx*
2.070$ p er annum
pange of accepted competitive bids:
*ft£h
- 99.550 Equivalent rate of
1 .7 8 0 $ per
- 99.470 Equivalent rate of
2.097$ per
Low
discount approx.
annum
discount approx.
annum
(3^ percent of the amount bid for at the low price was accepted)
Federal Reserve
District______
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Loui s
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Applied for
Total
______ Accepted
$
21,014,000
1,416,821,000
29.243.000
5 8 .8 6 8 .0 0 0
16.372.000
18.545.000
2 0 2 ,7 1 7 ,0 0 0
37.865.000
9,988,000
48.218.000
40.064.000
93.325.000
$
$1,992,840,000
$1,300,495,000
0 O0
18,014,000
819,016,000
14.243.000
57.208.000
15.042.000
18.545.000
148,907,000
34.205.000
9,988,000
42.218.000
38.084.000
85.025.000
Secretary Humphrey announced today that he had
established in the Office of the Under Secretary an
Analysis Staff, which wi. II operate under the immediate
supervision of l£r. Dan Throop Smith, Assistant to the
Secretary.
The Analysis Staff is being organized to provide
more effective coordination and economical operation of
the analytical activities in the Treasury Department
relating to financing, debt management, and tax policies.
In addition, it will perform such other functions as may
be assigned from time to time by the Secretary and the
Under Secretary.
iff-
Some of the duties and responsibilities
of the Analysis Staff were previously performed by the
Office of the Technical Staff and Tax Advisory Staff, both
of which have been abolished,
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
8
IMMEDIATE RELEASE,
Friday, February 20, 1953.
H-39
Secretary Humphrey announced today that he had
established in the Office of the Under Secretary an
Analysis Staff, which will operate under the immediate
supervision of Mr. Dan Throop Smith, Assistant to the
Secretary.
The Analysis Staff is being organized to provide
more effective coordination and economical operation
of the analytical activities in the Treasury
Department relating to financing, debt management,
and tax policies.
In addition,
it will perform such
other functions as may be assigned from time to time
by the Secretary and the Under Secretary.
Some of
the duties and responsibilities of the Analysis
Staff were previously performed by the Office of
the Technical Staff and Tax Advisory Staff, both
of which have been abolished.
oOo
2
The Secretary designated Assistant Secretary
H. Chapman Rose to supervise the Bureau of Customs,
United States Coast Guard, Bureau of the Mint, United
States Secret Service, Bureau of Narcotics, Information
Service, and Enforcement.
The Secretary directed that General Counsel Elbert P.
Tuttle have charge of the Legal Division.
In case of the absence or sickness of the Secretary,
Under Secretary Folsom will act as Secretary of the
Treasury.
In case of the absence or sickness of both
the Secretary and the Under Secretary, the officials
designated to act as Secretary are, in order, Assistant
Secretary Rose, Assistant Secretary Overby and General
Counsel Tuttle.
In case of the absence or sickness of the Fiscal
Assistant Secretary or a vacancy in that office, Assistant
Secretary Overby will act as Fiscal Assistant Secretary.
^ / ^ b u r e a u s of the Treasury Department was assigned today
by Secretary Humphrey to the Under Secretary, Deputy to
the Secretary, Assistant Secretaries and General Counsel
of the Treasury.
The assignments are effective March 1.
The Secretary designated Under Secretary Marion B.
Folsom to supervise the operations of the Bureau of
Internal Revenue, Analysis Staff, and Office of Tax
Legislative Counsel.
Mr.
Folsom also will have general
supervision over the functions assigned to Administrative
Assistant Secretary William W. Parsons, who is to
supervise the Office of Budget, Office of Personnel,
Office of Administrative Services and Bureau of Engraving
and Printing.
The Secretary designated his Deputy, W. Randolph
Burgess, to have general supervision over the functions
assigned to Assistant Secretary Andrew N. Overby and
Fiscal Assistant Secretary Edward F. Bartelt.
Assistant
Secretary Overby will continue to supervise the Office
of International Finance
(including Foreign Assets
Control), United States Savings Bonds Division, and
Office of the Comptroller of the Currency.
Fiscal Assistant
Secretary Bartelt will continue to supervise the Bureau of
Accounts, Office of the Treasurer, and Bureau of the
Public Debt.
TREASURY
D EPA RTM EN T
Information Service
IMMEDIATE RELEASE,
Friday, February 20,
WASHINGTON, D .C .
141
1953
Responsibility for
the T r e a s u r y D e p a r t m e n t
to the U n d e r Secretary,
Secretaries a n d G e n e r a l
are effective M a r c h 1.
H-40
the s u p e r v i s i o n of the v a r i o u s b u r e a u s of
was assigned today by Secretary Humphrey
D e p u t y to the Secretary, A s s i s t a n t
C o u nsel of the Treasury.
The a s s i g n m e n t s
The S e c r e t a r y d e s i g n a t e d U n d e r S e c r e t a r y M a r i o n B. F o l s o m to
supervise the o p e r a t i o n s of the B u r e a u of In t e r n a l Revenue,
Analysis Staff, a n d Office of T a x L e g i s l a t i v e Counsel,
Mr. F o l s o m
also will h a v e g e n e r a l s u p e r v i s i o n o v e r the f u n c t i o n s a s s i g n e d to
A d m i n i s t r a t i v e ■A s s i s t a n t S e c r e t a r y W i l l i a m W. Parsons, w h o is to
supervise the Office of Budget, Offi c e of Personnel, O f f i c e of
Administrative S e r v i c e s a n d B u r e a u of E n g r a v i n g a n d Printing.
ihe S e c r e t a r y d e s i g n a t e d h i s Deputy, W. R a n d o l p h Burgess, to
have general s u p e r v i s i o n o v e r the f u n c t i o n s a s s i g n e d to A s s i s t a n t
Secretary A n d r e w N. O v e r b y a n d F i s c a l A s s i s t a n t S e c r e t a r y
Edward F , B a r telt.
A s s i s t a n t S e c r e t a r y O v e r b y w i l l c o n t i n u e to
supervise the Office of I n t e r n a t i o n a l F i n a n c e ( i n c l u d i n g F o r e i g n
Assets Control;, U n i t e d S t a t e s S a v i n g s B o n d s Division, a nd Offi c e
ox the C o m p t r o l l e r of the Currency.
Fiscal Assistant Secretary
Bartelt will c o n t i n u e to s u p e r v i s e the B u r e a u of Accounts,
Office of the Treasurer, a n d B u r e a u of the P u b l i c Debt.
The S e c r e t a r y d e s i g n a t e d A s s i s t a n t S e c r e t a r y H. C h a p m a n Ros e
to supervise the B u r e a u of Customs, U n i t e d S t a t e s Coast Guard,
Bureau of the Mint, U n i t e d States S e c r e t Service, B u r e a u of
Karcotics, I n f o r m a t i o n Service, a n d E n f o r c e m e n t .
,
The S e c r e t a r y d i r e c t e d that G e n e r a l C o u n s e l E l b e r t P. T u ttle
have charge of the L e g a l Division.
In case of the a b s e n c e or si c k n e s s of the Secretary, U n d e r
secretary F o l s o m wil l act as S e c r e t a r y of the Treasury.
In case
oi the a b s e n c e or sic k n e s s of b o t h the S e c r e t a r y a n d the U n d e r
secretary, the o f f i c i a l s d e s i g n a t e d to act as
Secretary are,*in
xCter, A s s i s t a n t S e c r e t a r y Rose, A s s i s t a n t S e c r e t a r y O v e r b y a n d
General C o u n s e l Tuttle.
^
In case of the a b s e n c e or s i c k n e s s of the F i s c a l A s s i s t a n t
secretary or a v a c a n c y in that office, A s s i s t a n t S e c r e t a r y O v e r b y
will act as F i s c a l A s s i s t a n t Secretary.
oOo
- 3 -
am
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 er
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 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 th e
p o s s e s s io n s o f th e U n ite d S t a t e s ,
o r b y any l o c a l t a x i n g a u t h o r i t y .
For
p u rp o se 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 T re a s u ry b i l l s a re
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 re d t o be i n t e r e s t .
Under S e c t io n s
h2
and 117 ( a )
(l)
o f th e I n t e r n a l Revenue Code, as
amended by S e c t i o n l l £ o f th e Revenue A ct o f 1 9 ^ 1 , th e amount o f d isco u n t
a t w h ich b i l l s
is s u e d h e re u n d e r a r e s o ld 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 such b i l l s
s h a l l be s o l d , redeem ed o r o th e rw is e d isp o se d o f,
and such b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u ra n c e com panies)
is s u e d h e re u n d e r need in c lu d e in h i s income t a x r e t u r n o n ly th e d iffe re n c e
b etw een th e p r i c e p a id f o 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 seq u en 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 le
o r red em p tio n a t m a t u r i t y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 ent C i r c u l a r No. ijlb , a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T r e a s u r y b i l l s and g ov ern th e c o n d itio n s o f
th e i r is s u e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
R e se rv e Bank o r B ra n ch .
-
2
-
TOM
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
March 5* 1953
> 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.
March 5» 1953
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
mxmxx
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
_ (J j
/
*
Thursday t February 26, 1953
' *
The Secretary of the Treasury, by this public notice, invites tenders
icr $1.300.000.000 , or thereabouts, of
91 -day Treasury bills, for
[*St
i£k
cash and in exchange for Treasury bills maturing March 5. 1953
in
the amount of $1,300,750.000 »to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated March 5* 1953
,and will mature
--------- K F ------- June h3 1953
_,when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o’clock p.m., Eastern Standard time, Monday,
March 2, 1953 •
1
1
JpEjt
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., 9 9 .9 2 5 « Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
T
-/.-O -li-
r
TREASURY
D EPA RTM EN T
Information Service
release m o r n i n g
WASHINGTON, D .C.
newspapers,
Thursday, F e b r u a r y 2 6 , 1953.
H-4l
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n v i t e s
tenders for $1,300 , 0 0 0 , 0 0 0 , or t h e r e abouts, of 9 1 - d a y T r e a s u r y bills,
for cash and in 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 i n g M a r c h 5* 1953*
in the amount of $ 1 , 300 ,750 , 000 , to be i s s u e d o n a d i s c o u n t b a s i s
under competitive a n d n o n - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r
provided.
The b i l l s of this series wil l be d a t e d M a r c h 3, 1953* and
will mature June 4, 1953* w h e n the f ace a m o u n t w i l l be p a y a b l e w i t h
out interest.
T h e y wil l be i s s u e d in b e a r e r f o r m only, a n d in
denominations of $1,000, $5*000, $10,000, $100,000, $300 , 000, a nd
$1,000,000 (ma t u r i t y value).
Tenders w i l l be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s
up to the c l o s i n g hour, t w o o ' c l o c k p.m., E a s t e r n S t a n d a r d time,
Monday, M a rch 2, 1953.
T e n d e r s wil l not be r e c e i v e d at the T r e a s u r y
Department, Wash i n g t o n .
E a c h t e n d e r m u s t be f o r a n e v e n m u l t i p l e of
$1,000, and in the case of c o m p e t i t i v e t e n d e r s the p r i c e o f f e r e d m u s t
be expressed on the b a s i s of 100, w i t h not m o r e t h a n t h r e e decimals,
e. g., 99.925.
F r a c t i o n s m a y not be used.
It is u r g e d tha t t e n d e r s
be made on the p r i n t e d f o r m s a n d f o r w a r d e d in the special e n v e l o p e s
which will be su p p l e d b y F e d e r a l R e s e r v e B a n k s or B r a n c h e s o n
application therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s will n ot be p e r m i t t e d to submit
tenders except f o r t h e i r o w n account.
T e n d e r s w i l l be r e c e i v e d
without deposit f r o m i n c o r p o r a t e d b a n k s a n d t r ust c o m p a n i e s a nd f r o m
responsible and r e c o g n i z e d d e a l e r s in i n v e s t m e n t securities.
Tenders fro m o t h e r s m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of
the face a m ount of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n d e r s
are accompanied b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d
bank or trust company.
Immediately a f t e r the c l o s i n g hour, t e n d e r s w i l l be o p e n e d at
the Federal R e s e r v e B a n k s a nd Bra n c h e s > f o l l o w i n g w h i c h p u b l i c
announcement w i l l * b e m a d e b y the S e c r e t a r y of the T r e a s u r y of the
amount and p r i c e r a n g e of a c c e p t e d bids.
Those submitting tenders
will be a d v ised of the a c c e p t a n c e or r e j e c t i o n thereof.
The
Secretary of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t or
reject any or all tenders, in w h o l e or in part, a n d h i s a c t i o n in
any such respect shall be final.
S u b j e c t to these re s e r v a t i o n s ,
non-competitive t e n d e r s f o r $ 200,000 or less w i t h o u t s t a t e d p r i c e
from any one b i d d e r w i l l be a c c e p t e d i n full at the a v e r a g e p r i c e
2
(in three decimals) of accepted competitive b i d s v Settlement for
accepted tenders in accordance w i t h the bids m u s t be made or
completed at the Federal Reserve B a n k on March 5* 1953* In cash or
other immediately available funds or in a like face amount of
Treasury bills mat u r i n g M arch 5* 1953.
Cash and exchange tenders
will receive equal treatment.
Cash adjustments will be made for
differences between the p ar value of maturing b ills accepted in
exchange and the issue price of the ne w bills.
The income derived from Treasury bills* whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto.
The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation n ow or hereafter imposed on
the principal or interest thereof b y any State, or any of the
possessions of the United States,or b y any local taxing authority.
For purposes of taxation the amount of discount at w h i c h Treasury
b i l l s 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 Section 115 of the Revenue Act of 1941,
the amount of discount at w hich bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed o f , and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at m a turity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
oOo
O \>
RELEAEÈ MORNING NEWSPAPERS,
Tuesday, March 3* 1953«
The Secretary of the Treasury announced laat evening that the tenders for
$1,300,000,000, or thereabouts, of 91-day Treasury bills to be dated March 5 and to
mature June k# 1953> which were offered on February 26, were opened at the Federal
Reserve Banka on March 2*
The details of this issue are as follows)
Total applied for - $1,996,167,000
Total accepted
- 1,300,085,000 (includes $197,1)23,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
Average price
- 99.1*53 Equivalent rate of discount appro*. 2.161# per ennui
Range of accepted competitive bids*
High
Low
*> 99.500 Equivalent rate of discount appro*. 1.978* per annua
- 99.10*8
»
«
*
*
*
2.181# •
»
(17 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Mew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
t
12,888,«X»
l,33l».309,000
50,1*63,000
50,920,000
13,01*5,000
28,676,000
21*1,91*0,000
38,829,000
8,096,000
60,603,000
36,062,000
120,336,000
$
H , 996,167,000
|i,30o,o85,ooo
Total
J
12,888,000
756,199,000
29,803,000
1*1*,920,000
11,51*5,000
28,110,000
182,885,000
31,1*58,000
8 ,096,000
50,773,000
36,062,000
107,31*6,000
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
147
release; m o r n i n g n e w s p a p e r s ,
H-42
miesday» March 3.» 1933«
The S ecretary of the Treasury announced l a s t evening th a t the
tenders for $ 1 * 3 0 0 ,0 0 0 ,0 0 0 / or thereabouts* of 91-day Treasury b i l l s
to be dated March 5 and to mature June 4* 1953* which were offered on
February 26 , were opened a t the Federal Reserve Banks on March 2.
The details of this issue are as follows:
Total applied fo r - $ 1 *9 96 ,1 6 7 ,0 0 0
Total accepted
- 1 ,3 0 0 ,0 8 5 ,0 0 0 (includes $ 1 9 7 ,4 2 3 ,0 0 0
entered on a non-competitive
basis and accepted in full
a t the average price shown
below)
Average price
- 99.4 5 3 Equivalent ra te of discount approx.
2 .1 6 4 $ per annum
Range of accepted com petitive bids :
High
- 9 9 .5 0 0 Equivalent r a te o f discount approx.
1 .9 7 8 $ per annum
- 9 9 .4 4 8 Equivalent ra te of discount approx.
2 .1 8 4 $ per annum
low
(17 percent of the amount bid fo r a t the low p rice was accepted)
I Federal Reserve
District_______
Total
Applied fo r
I Boston
I New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
12 , 888,000
12,888,000
1,334,309,000
50.463.000
50.920.000
13.045.000
28.676.000
241.940.000
38,829,000
7 5 6 .1 9 9 .0 0 0
2 9 .8 0 3 .0 0 0
4 4 .9 2 0 .0 0 0
1 1 .5 4 5 .0 0 0
8 , 096,000
TOTAL
Total
Accepted
28.110.000
182.885.000
3 1 .4 5 8 .0 0 0
8,096,000
5 0 .7 7 3 .0 0 0
6 0 ,6 0 3 ,0 0 0
36,062,000
120.336.000
1 0 7 ,3 4 6 ,0 0 0
$ 1 ,9 9 6 ,1 6 7 ,0 0 0
$1, 300, 085,000
0 O0
36.062.000
- 3 -
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 er
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 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 io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s are
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t i o n s
bZ
and 117 ( a )
( l ) o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n 1 1 5 o f th e Revenue A ct o f 191*1, th e amount o f discount
a t w h ich b i l l s
is s u e d h ere u n d e r a r e s o ld 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 such b i l l s
s h a l l be s o l d , redeem ed o r o th e r w is e d isp o sed o f,
and such b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u r a n c e companies)
is s u e d h e re u n d e r need in c lu d e in h i s income t a x r e t u r n o n ly th e d iffe re n ce
betw een th e p r i c e p a id f o r such 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 seq u en 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 le
o r re d em p tio n a t m a t u r i t y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 ent C i r c u l a r No. I il8 , a s amended, and t h i s n o tic e ,
p r e s c r i b e th e te rm s o f th e T r e a s u r y b i l l s and g o v ern th e c o n d itio n s o f
th e i r is s u e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e ra l
Reserve Bank or Branch.
?'■
2
-
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 enders from o t h e r s m ust be accompanied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 range
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
an ce 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 t h e T r e a s u r y e x p r e s s l y reserves
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 a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 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 titiv e te 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 ric e
from any one b id d e r w i l l be a c c e p te d i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n three
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s m ust be made o r co m p leted a t th e F e d e r a l Re
s e r v e Bank on
March ^ r 19^1
>
i-n ca s h o r o t h e r im m e d ia te ly a v a ila b le
Cash and exch an g e t e n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
Cash adjustm ents
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 rin g b i l l s
a c c e p te d in exch an g e and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g ain from
th 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 th e b i l l s ,
s h a l l n o t have an y exem ption,
a s s u c h , and l o s s from th 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 re a s u ry 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 s u c h , un d er 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 en tary t h e r e t o .
The b i l l s
s h a l l be
TREASURY DEPARTMENT
W ash in gton
FOR RELEASE, MORNING NEWSPAPERS,
T h u rsd a y , M arch 5» 1 9 5 3
~ 5 s r
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 lic n o t i c e , i n v i t e s ten d ers
f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0
3
o r th e re a b o u ts , o f
91
c a s h and i n exch an g e f o r T re a s u ry b i l l s m a tu rin g
th e amount o f $ 1 ,2 0 0 ,3 1 * 2 * 0 0 0
-d a y T r e a s u r y b i l l s , f o r
Mareh 12, 1953
JPCJt
-------------------------— ---------- ----------------------------------------------
» t o be is 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 p ro v id e d *
o f t h i s s e r i e s w i l l b e d a te d
—
June 1 1 ^ 1 9 5 3
te re s t*
— . in
The b i l l s
March 12, 1953
, and w i l l m ature
----i g E ---------
__ , when th e f a c e amount w i l l b e p a y a b le w ith o u t in
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
$1 ,0 0 0 , $5 ,0 0 0 , $1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and $1 ,0 0 0 ,0 0 0
(m a tu r i ty v alu e).
T en d ers 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 ran ch es 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 rd ti m e , Monday, March 9* 1953
“* •'111 i* •
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry D ep artm en t, W ash in g to n .
J
1
Each
te n d e r m ust be f o r an even m u ltip le o f $1 ,000, and in th e c a s e o f com peti
t i v e te n d e r s th e p r i c e o f f e r e d m ust be e x p re s s e d on th e b a s i s o f 100, with
n o t more th a n t h r e e d e c im a ls , e , g . ,
99*925»
F r a c t i o n s may n o t be u sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in the
s p e c i a l e n v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks 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 rs th a n banking 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 t o subm 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 en d ers w i l l be r e c e i v e d w ith o u t d e p o s it from
i n c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and reco g n ized
t r e a s u r y
d e p a r t m e n t
Information Service
release m o r n i n g
WASHINGTON, D C
newspapers,
Thursday, March 5, 1953.
H-43
The Secretary o f .the Treasury, by this- public notice, invites
tenders for $1,200,000,000, or the re about s, of 91-day Treasury bil1 s,
for cash and in exchange for Treasury bills maturing March 12, 1953,
in. the amount of $1,200,342, 000, to be issued on a discount basis
under competitive and non-cómpetitiye bidding as hereinafter
provided. The bills óf this series-will be dated March 12, 1953/ and
will mature June 11,'1953, when thè f ace amount will be payable
''
without interest. They, will be issued in bearer form only, and indenominations of $1,000, $5,000, $10,000, $100,000, $5 0 0 ,0 0 0 , and
$1,000 ,000 .(maturity' value ). ’ •••
***
,ÿ-::
Tenders will be received' a t Federal Reserve Banks and Branches
up to the closing hour, two o 'clock p .m., Eastern Standard time,' Monday, March 9, 1953. Tenders will not be received at the'Treasury
Department, Washington. Each, tender ihust bè> 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. :
>l '* , T *; 7J\4'V
Others than banking institutions will not be permitted to submit
tenders, except for their own account. Tenders will be received
without, deposit from ihcorpora'ted banks and trust companies and from
responsible and recognized dealers; in'investment securities. Tenders
from others must be accompánied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted In full at the average price
2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made^or
,ì
completed
at the Federal Reserve Bank on March 12, 1953 » dn cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March 12, 1953*
Cash and^excnange oenders
will receive equal treatment.
Cash adjustments will be rnaue ror
accepted in
diff eren< ses between the par value of maturing b:
exchange and the issue price of the new hills.
The .ncome derived from Treasury bills, whether interest or
-Pv:
gain rrom
the sale or other disposition of the bixls, sharx not have
any exemption, as such, and loss from the sa3.e or ocher 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, -^nnerxtance, gifc
or other excise taxes, whether Federal or otate, but shall be
+■•n-wo+■•? w-nòw
iiiT r%or
r» Vw»r»<=;Q,fter
i m p o sed o n ohe principal
exempt from all ,taxation
her«
or interest thereof by any State, or any of the pos sessions of the'
United States, or by any local taxing authority. ‘For purposes of .
taxation the amount of discount at which Treasury b ills are
considered to b
originally sold by the United States shall be consiu«
ite r n a l Revenue
interest,
Under Sections 42 and 117. (a-) (l) °
Code, as amended by
hv w.t.ìnn
s of the Revenue Act o 19 4 1 , the
Section n
115
amount of discount at which •bills issued hereunder are '.sold shall
not be considered to accrue until such b 11s shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include inhis income tax return only the difference between the pricej
paid for such bills, whether on origins,! issue or on subsequent
purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice,, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained,
from any Federal Reserve Bank or Branch.
oOo
2
Sales of Series E and K bonds in February, 1953, were
$362,000,000 , compared with Series E sales of $288,000,000
in February, 1952. Since the Series H bond, which was first
offered for sale am
June 1, 1952, is the current income
companion of the Series E bond, current sales of the two
series are reported together.
Redemptions of matured and unmatured Series E and Series H
bonds in February, 1953, totaled $296,000,000, compared with
Series E redemptions of $334,000,000 in February, 1952.
Although about three quarters of all Series E bonds which
have matured to date are still outstanding under the E bond
extension gKatopc program, cash redemptions of matured bonds
continue to rise as the bonds sold in the war years reach th e ir
original maturity, however, redemptions before maturity have been
declining, and this more than offsets the increase in redemptions
of matured bonds.
00 0
Immediate Release
H -
*
¿ f d
Sales of all series of United states Savings t>onds in
the first two months of this year totaled $919,000,000, compared
with $780,000,000 in the first two mo ths of 1952, for a gain
of 18 percent, the Treasury Department announced today.
Redemptions of all series for the first
totaled
two months of 1953
$804,000,000, giving an excess of $115,000J00(j
of sales receipts over redemptions. In the first two months of
1952, redemptions exceeded sales by $124,000,000.
February, 1953, sales of all series were $414,000,000
compared with $339,000,000 in February of last year.
The February, 1953, redemptions of all series were $369,000,000,
compared with $411,000,000 in February of last year.
The February, 1953, record is particularly significant, since
it marks the second consecutive month in which sales have
exceeded redemptions. In both January and February, 1953, the
improvement in sales as compared with a year ago was due mainly
to sales of Series E and H bonds.
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
4
IMMEDIATE RELEASE,
Thursday, M a r c h 5, 1953.
Sales of all series of U n i t e d S t a t e s S a v i n g s B o n d s in the
first two m o n t h s of thi s y e a r t o t a l e d $919,000,000, c o m p a r e d w i t h
$780,000,000 in the f i r s t two m o n t h s of 1952, f o r a g a i n of 18
percent, the T r e a s u r y D e p a r t m e n t a n n o u n c e d today.
Redemptions of all series f o r the f i r s t two m o n t h s of 1953
totaled $804,000,000, g i v i n g a n e x c e s s of $ 1 1 5 , 0 0 0 , 0 0 0 of sales
receipts over rede m p t i o n s .
In the f i r s t two m o n t h s of 1952,
redemptions e x c e e d e d sales b y $124,000,000,
February, 1953* sales of all seri e s w e r e $ 4 1 4 , 0 0 0 , 0 0 0 c o m p a r e d
with $ 339,000,000 in F e b r u a r y of last year.
The February, 1953,
redemptions of all series w e r e $ 369,000,000, c o m p a r e d w i t h
$411,000,000 in F e b r u a r y of last year.
The February, 1953* r e c o r d is p a r t i c u l a r l y significant, since
it marks the s e c o n d c o n s e c u t i v e m o n t h in w h i c h sales h a v e e x c e e d e d
redemptions.
In b o t h J a n u a r y a n d February, 1953, the I m p r o v e m e n t
in sales as c o m p a r e d w i t h a y e a r ag o w a s due m a i n l y to sales of
Series E a n d H bonds.
Sales of S e r i e s E a n d H b o n d s in Feb r u a r y , 1953, w e r e
$362,000,000, c o m p a r e d w i t h Seri e s E sales of $ 2 8 8 , 0 0 0 , 0 0 0 in
February, 1952.
Since the S e r i e s H bond, w h i c h w as f i r s t o f f e r e d
for sale on June 1, 1952, is the cu r r e n t i n c o m e c o m p a n i o n of the
Series E bond, c u r r e n t sales of the two series a re r e p o r t e d
together.
Redemptions of m a t u r e d a n d u n m a t u r e d Series E a n d S e r i e s H
bonds in February, 1953, t o t a l e d $ 2 9 6 , 0 00,000, c o m p a r e d w i t h
Series E r e d e m p t i o n s of $ 3 3 ^ , 0 0 0 , 0 0 0 i n February, 1952.
Although a b o u t t h ree q u a r t e r s of all Series E b o n d s w h i c h
have m a t ured to dat e are still o u t s t a n d i n g u n d e r the E b o n d
extension program, c a s h r e d e m p t i o n s of m a t u r e d b o n d s c o n t i n u e to
rise as the b o n d s sold in the w a r y e a r s r e a c h t h e i r o r i g i n a l
maturity.
However, r e d e m p t i o n s b e f o r e m a t u r i t y h a v e b e e n
declining, a n d t his m o r e t h a n o f f s e t s the I n c r e a s e in r e d e m p t i o n s
of matured bonds*
Ci.
UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES, 1952
(In millions of dollars at $35 per ounce)
Negative figures represent net sales by the
United States) positive figures, net purchases»
1 st
2nd
3 rd
Ifth
Quarter
Quarter
Quarter
Quarter
Calendar
Country___________ 1952_______ 1952_______ 1952_______ 1$*2______ 1952
Afghanistan .... .....(^j§2.5
—
Argentina .............................. ~~
Belgium . . . . . . . . . . . 2 0 —
Belgian Congo .
.
.
.
.
.
—
Bolivia ..............
—
—
—
—
—
-$20.0
—
-2U#0
—
-2.0
______ - $ 2 , 0 ___2.0
Canada ......... .
—
$6 .9
Chile
—
1.8
Colombia
....... —17.5
—5•2
Denmark ............. » —
—
Germary ..............
__________--_____ /
Greece ................ —12.3
——
Lebanon ............
-1.1
-1.3
Mexico ...........
11.3
101.U
Netherlands •••....•*.
—
—
Philippines ..... .
.3_______
.1*
Portugal .............
Salvador ••••*•.....••
Switzerland ••«•••«..•
Switzerland-Bank
for International
Settlements .......
Syria............ .
—
—
22.5
—
-U.0
—
-$2.5
-20.0
-3.8
*2.0
.3
—
7,2
—
—
1,8
——
—
—22.8
—
-7.0
-7,0
_______-10.0______-10.0
——
——
—12.3
—
-»7
-3.1
—
-25.0
87.7
—
-100.0
-100.0
______ _________ -»________ 1.2
—■
—
—
-5.0
—
:
-5.0
-ii.O
22.5
2.3
—
—
-2.3
- _________ ^ U 5 ________ - ________>1.0
-2.5
South Africa
U»3
7.2
***
•*
11.5
Turkey ...............
——
—
2.1
2.1
United Kingdom *•••••• 520.0
—
-80.0
UiO.O
Uruguay ..... .......
10.0
—
—
U.8
lli.9
All Other..... .
-.2 ________ --_________ -.1 _______ ________ "«2
TOTAL
#557.3
#105.7
-#1.3 ^^#268.0
Some figures will not add to totals because of rounding.
#393.6
4,
The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the calendar year
19E>2*
Fèr the year as a whole, U*S* purchases of
monetary gold exceeded sales by $39h million*
Net
sales of $269 million in the second half were more
than offset by net purchases of $663 million in the
first half*
A table l o w i n g quarterly and annual net
transactions, by country, is attached*
TREASURY
D EPA RTM EN T
Information Service
Wa s h in g t o n , d .c .
IMMEDIATE RELEASE,
F r i d a y . M arch 6 . 1 9 5 3 .
H -45
The T r e a s u r y D epartm ent to d a y made p u b lic
a r e p o r t o f m o n etary g o ld t r a n s a c t i o n s w ith f o r e i g n
governm ents and c e n t r a l banks f o r th e c a l e n d a r y e a r
19!?2 •
F o r th e y e a r a s a w h o le, U .S , p u rc h a s e s o f
m o n etary g o ld e x ce e d e d s a l e s by $39U m i l l i o n .
N et
s a l e s o f $ 2 6 9 m i l l i o n in th e se c o n d h a l f w ere more
th a n o f f s e t by n e t p u rc h a s e s o f
$663 m i l l i o n i n th e
f i r s t h a lf,
A table showing quarterly and annual net
transactions, by country, is attached.
8
UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES, 1952
( i n m i l l i o n s o f d o l l a r s a t $ 3 5 p e r ounce)
N e g a tiv e f i g u r e s r e p r e s e n t n e t s a l e s by th e
U n ite d S t a t e s ; p o s i t i v e f i g u r e s , n e t p u r c h a s e s .
1st
Quarter
‘ 1952
Country
Afghanistan
... -#2.5
"mm
/rgentina
«oat>
Belgium »o«o• • * • è& * .0* 20,2
Belgian Congo •....
Bolivia m « M c•9©»« © ft
9
Canada «»*........
****',
Chile «••»««»*».»•» ft•ft
Colombia »*.•«•*«»»
-17.5
Denmark ,..»»«.... « ••
QGX'ÏÏlânjT «$♦#*»♦**••* .. 3
Greece 0
.
-12,3
Lebanon »«••• ,. ••»*¿4. -1.1
Mexico , ♦ . * .................. ... 11,3
Netherlands
P h ilippin es
TOTAL
—
—
9
•»
-#2*0
$6.9
1.8
-5*2
—
*3
kth
Quarter
" 1952
-120,0
-2iu0
-2,0
2.0
„
—
—
—
—
—
—
-7.0
-lOr.O
w
—
-le 3
101*u
.
-.7
*25.0
-100¿0
—
—
I
.h
-U.o
—
-5o0
mmm*
—
—
22.5
2.3
—
-1.5
Kingdom
c...
1952
—
—
—
.3
South A fr ic a . . . . . . ...
Iw3
Turkey » », 0*, *. 0. t .
United
•,. « •
520*0
Uruguay.........
9. 9
10.0
« ».e..
3rd
Quarter
«'»«ft
—
. . . . . . . ...
Portugal
o » •• • • ftft
Salvador * « 0. . . . . . » • • ft
Switzerland . «,« « « .. ...
Sw itzerland-B ank
fo 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 ..... ...
Syria « « , » *\ » « » ,. ...
All Other
2nd
Quarter
1952
— e2
1557,3
—
—
f
7 c2
-2.3
-1,0
— •m
—
2d
-80.0
—
—
—
—
-el
14.38
~$1.3
-$ 268.0
—
iio5-, 7
Some f ig u r e s w i l l n o t add t o t o t a l s b e ca u s e o f ro u n d in g
—
Calendar
]_q R2
-#2.5
-20.0
-3*8
-2,0
—
7.2
1J-ftV
RJ
-22,8
-7.0
-10.0
-12*3
— p »1
87.7
-100.0
1*2
-5.0
-14.0
22,5
—
-2.5
11.5
2.1
I4I4O.O
III,9
-.2
#393.6
TREASURY DEPARTMENT
F i s c a l S e rv ic e
STATUTORY.DEBT LIMITATION
W ashi
li n g t o n ,
AS OF IVbraary 2S ,1953
M 8U f6hL
’
......~ ..... . . t
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United states (except such guaranteed obligations as may be held by the secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 19U6; U.S.C., title 31, sec. 757b), outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face*amount which can still
be issued under this limitation:
Total face amount that may be outstanding at any one time
4275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
M
±
Treasury b ills .............................. $'21,7©9*^®2,0©0
Certificates of indebtedness......
i5 .958 A 3i.0OO
Treasury notes...........................
T5.92T.6T9.NOO4 73.59l.932.NOO
Bonds Treasury.................................
80,370,758,750
Savings (current redemp. value)
58.267,863,799
Deposi tary..............................
399.238,000
Armed Forces Leave....................
Investment series...... .....
XTATT. 2 6 1 .0 0 0 152A71.12X.5N9
^Certificates of indebtedness...... 2N,221,338,000
Treasury notes ......
15.081, Q19.N0Q 39,3®2t357»frQO
,365 1.j911
2o573~5
& l 1,3*9
3^9
Total interest-bearing .......................................
279,591,375
Matured, interest-ceased..................................................
Bearing no interest:
War savings stamps .......................
Excess profits tax refund bonds.....
Special notes of the United states:
Internat'l Monetary Fund series...
Total
.................................
N9.531.672
1,532,362
1,277,000,000
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.a. ..........................
Demand obligations: C.C.C............... ......
Matured, interest-ceased ...........................
1,328,06^,03%
2bb,973to66,75S
N8,686,236
11.6T1
NS,697,867
1.331.925
50,029,792
Grand total outstanding.................... ....... ............... ........ .....
Balance face amount of obligations issuable under above authority
267 .023 .096,550
Reconcilement with statement of the Public Debt J’e.'b*..28,. 1953
(Date)
(Daily Statement of the United States Treasury, Mar. 2, 1953)
(Data)
Outstanding Total gross public debt ................................................................................
Guaranteed obligations not owned by the Treasury ............................................
Total gross public debt and guaranteed obligations .........................................
Deduct - other outstanding public debt obligations not subject to debt limitation .
1
TO» OAS •DC
^
\
267,583.710.329
50.029,792
"» • s fc sa
267 ,023 ,096,550
STATUTORY DEBT LIMITATION
AS OF FEBRUARY 28« 1?53
V" I C O
March 9, 1953
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued und^r 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), nshall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 19h6; U*S.C*, title 31,
sec» 757b), outstanding at any one time* For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills••••«••»«*•**#***$21,709,862,000
Certificates of indebtedness**« 15,958,1*31,000
Treasury notes*#»#»*»»»*»«»»»*« 3$,923,839,1iOO $ 73,591,9;32,iiOO
Bonds -
Treasury»«#•»••*•••••»•«•*♦#• 80*370,758,750
Savings (current redemp»value) 58,267,863,799
Depositary##»•**»••»«•»« »■••••
399,238,000
Armed Forces Leave,.•»»*»««««
«
Investment series,#^*#*»*«»»» 13,1(33»261,000
Special Funds
Certificates of Indebtedness* 2l*,221,338,000
Treasury notes,»••»•»••***»«« 15,081,0I9,1|0Q
Total interest-bearing««•#••••»•»*•*««*••*
Matured, interest—ceased*•••»«».#*••#•#•••••##,»»#
Bearing no interest:
War savings stamps»*,» • • « • * 1:9,531,672
Excess profits tax refund bonds,«
1,532,362
Special notes of the United States:
Internat1! Monetary Fund Series 1.277»000*000
Total»*•**» «»**•*«***•»*•**»••••*•»•#•»«••*»♦*•#•*
Guaranteed obligations (not held by Treasury):
Interest bearing:
Debentures: F* H. A»».•*.»«,««»«,
1|8,686,236
Demand obligations? C*C.C***«»»«* _______ 11,631
Matured, Interest-ceased.•**«••»»•«•••»«•#•••«*« *«
152,171,121,51*9
39*302*3S7*U00
TOÎ555ÎÉ ÎO T
279,591,379
1.328c06h*03li
W , 697,867
1*331,925
50,029,792
Grand total outstanding*»####**»»#•••#•»*#*#•#*<••*###••♦•••#•.»•*«*•*
*267,023,096,^50
outstanding#»#»»*#*»*•*••#••«#♦#•#**•«#•u~~w -w-*--—
[Balance face amount of obligations issuable under above authority»«»»« 7,9 7 6 ,903 *U50
Reconcilement with" Statement of the Public Debt - Feb# 2b, 1953
(Daily Statement of the United States Treasury, Mar# 2, 1953)
¡Outstanding Total gross public debt««««#»»»»*»«»«»»«»»«»*»«*»«««*»»«»»#«#»♦•»*♦#267,583,710,329
Guaranteed obligations not owned by the Treasury **•#»»#•••*#•#*#*##•
50,029,792
Total gross public debt and guaranteed obligations••»••»»•«•»•»••*««267,633,7h0,121
peduct - other outstanding public debt obligations not subject to
debt limitation»*«»**•***•*•♦•«••**♦•#»»•*♦♦♦##4 »***•#•• #•»»#.
3l0»6li.3,.^71
t
ü a
I
267,023,6937550
Comparison of principal items of assets and liabilities of national banks - continued
(in thousands of dollars)
31 ,
Dec.
1952
LIABILITIES
Deposits of individuals, partner
ships, and corporations:
Demand» . • • •.... .......... .
{Dime..... ........ ...... ..
Deposits of IT» S. Government»...
Postal savings deposits.........
Deposits of States and political
subdivisions».................
Deposits of banks...... ....... .
Other deposits (certified and
cashiers1 checks, etc»)..... .
{Dotal deposits»...... .
Bills payable, rediscounts, and
other liabilities for borrowed
money........................
Other liabilities.
Total liabilities, excluding
capital accoitnts»»»..... .
CAPITAL ACCOUNTS
Capital stock!
Preferred,
C ommon»#..»*•»»».».»»»#
Total.•
Surplus.....
Undivided profits............. . •
Reserves........................
Total surplus, profits, and
r6S8rv6Si
Total Capital accounts....»
Total liabilities and
capital accounts»...«»...»
RATIOS:
TJ.S. Cov11 securities to total
assets......................
t
•
: Sept* 5»
: 1952
$56 ,662,902
21 ,517,160
3 .238.050
13.588
t
•
•
:
31 ,
Dec.
1951
• Increase or decrease: Increase or decrease
: since Sept. 5, 1952 : since Dec. 31, 1951
: Percent
: Percent
Amount
• Amount
153 .075 .6^5 $5!+.855,81+1
20 ,905 ,1+23 1 9 .825,659
2 ,233,623
2 ,803 ,52!+
10,003
13.695
$3 ,607,257
611,737
1*3!+,526
-IO7
6.80
2.93
15.50
-.73
$1 ,627,061
1 ,691,501
l,00 l*,l*27
3.585
3.33
8.53
1+1+.97
35.81+
6 ,271,676
9.920,522
5.875.%5
8,657.187
5.92^.592
9 ,789 .971+
396 ,21+1
1 .263.335
6 .71+
11+.59
3l*7,06l*
130,5l*S
5.86
1.33
1,613.878
99.257.778
1,172,936
92.503.8%
1.791.869
9*+,¿31,561
1*1*0,91*2
6 .753.931
37.59
7.30
-177,991
1*",826,215
-9.93.
5*11
75*921
1,739.825
1 .069,238
1 .632 ,85!+
15,1*61*
1 .621.397
-993.317
106,971
- 92 .9O
6.55
60 ,1+37
116 ,1*26
390.32
7.30
101 ,073,522
95.205.937
96 ,066 ,1*1*2
5 .867,535
6.16
5 ,005,060
5*21
5*666
2 ,219,186
2,224,652
3,33t,218
i*225,731
274,1*20
6,319
2 ,201,602
2 ,207,921
3.197.085
1 .296 .3U9
266 ,1+16
6 ,51*6
2,096,799
2 ,105,345
3.083,1+95
1 ,212,538
268 ,71+0
-IO.33
-653
.60
17,534
16.931~
,.'77
4.29
137*133
-70,618
-5.%
3.00
6 ,00l*
-2,660
122,367
119,507
250,723
13.193
5,660
-33.70
5.81+
5.66
6.13
1.03
2.11
>1.83^,369
7,059,221
1+,759 »850
6,967,771
1+.561+,773.
6 ,670,116
71+.519
91,450
1.57
1.31
269,596
389.103
5.91
5.83
106 ,132,71*3 102 ,173,706
102,738,560
5.959.035 .
5.83
5,39l+,183
5.25
L o a a s & discounts to total, assets
Capital accounts -bo -fco-fcal €Lex>o®iiis
Percent
Percent
Percent
33.23
34 .2U
3^.22
31.56
33.4o
7.11
33.06
7-53
7-0 6
NO!PB:
Mi n u s sign denotes decrease.
3
Statement showing comparison of principal items of assets and liabilities of active national
hanks as of December 31» 1952* September 5» 1952» and December 31, 1951
(in thousands of dollars)
?
1
: Dec, 31*
: 1952
Number of banks........... .
ASSETS
Commercial and industrial loans
Loans on real estate,.........
All other loans, including
Less valuation reserves,,.
Net loans..............
U. S, Government securities!
Direct obligations,.........
Obligations fully guaranteed.
Total IT, S, securities,.....
Obligations of States and
political subdivisions......
Other bonds, notes, and de
bentures. .................
Corporate stocks, including
stocks of Eed. Reserve banks.
Total securities........ .
Total loans and securities..
Currency and coin............
Reserve with Red. Reserve banks
Balances with other banks......
Total cash, balances with
other banks, including re
serve balances and cash items
in process of collection.....
O t h e r a s s e t s . ................... .
4,916
•
#
* Sept, 5,
: 1952
4,927
*
•
! Dec. 31,
! 1951
14,9*46
♦ Increase or decrease ! Increase or decrease
*
• since Sept, 5 . 1 9 5 2 ... ! since Dec. 31, 1951
! Percent ! Amount
J Amount
! Percent
-11
-•22
-30
- .6 1
$16 ,894,1439
8 ,265,630
$15.509.764
8 ,006,885
$15 ,689,255
7 ,541,103
$1,384,725
258,745
8.93
3.23
$1,205,2314
724,527
7.68
9.61
11,1*77,850
9 ,663,758
32 ,894,116
470,339
32 ,423,777
714,539
2,358,009
20,382
6.6U
6.88
4.09
6.92
1 ,814,092
36,119,673
10,763,311
34,279.960
497.914
33,732,046
3 .743,853
47,957
3.695.896
18.77
11.38
10.20
11 .U0
35,921,239
15,203
35.93$.442
34 ,971,610
11.761
34 .9 a3.371
35.146,687
9.656
35 .156,343
949,629
3.442
953,071
2.72
29.27
2.72
774,552
5.547
780,099
2.20
57.45
2.22
5.982.753
5.988.324
5,333.230
-5 .57I
-.0 9
649,523
12.18
2 ,176.230
2,3^,2SU
2,373.149
-l6S,05l4
-7.17
-196,919
-8. 30
196,360
4 4 ,292,285
80,^11,958
l,y+6 ,13^
12 ,956,212
11,997,057
133,113
^3,50^,092
77,286,133
1 .145.096
13 .353.314
9 .055.097
180,895
8,747
4 3 ,043,617
75 .467.394
1,1413,564
12,321,432
11,772,162
788,193
3,125.820
301,038
-397.102
2,9141,960
4.65
1.81
8.83
2.90
6.55
26.29
-2.97
32.49
15.965
1,248,668
' 4,944,564
27,570
13l4,780
2214,895
1.05
1.91
26 ,399 ,60-5 ... 23.f553..5Q7
1,321,332
1.334,063
108 ,132 ,71+3
102 ,173,708
26 ,012 ,15s
1 ,259 .00s
102 ,733,560
2,845,896
-12,681
5.959,035
12.08
-.95
5.S3
387,245
62,374
5,394.1S3
1.I49
I4.95
5 .2 5
3&.637.969
518,296
2,337.627
l4.d l4
Ï.W
-
2
-
others for the purpose of purchasing and carrying securities, and to hanks, etc,
amounted to $11,^7^,000,000, an increase since September of 7 percent*
The per
centage of loans and discounts to total assets on December 3 1 , 1952 was 33 .I40 ia
comparison with 33*06 on September 5 and 3^*56 in December 1951»
Investments of the banks in United States Government obligations
(including
$15,000,000 guaranteed obligations) on December 31 , 1952 aggregated
$35»936» 000 ,000 , which was an increase of $953*000*000 since September, and an
increase of $780,000,000 since the previous December*
These investments were 33
percent of total assets, compared to 3I+ percent the year previous*
Other bonds,
stocks and securities of $2,356,000,000, which included obligations of States and
political subdivisions of $ 5 ,983 ,0 0 0 ,000 , were $ 165 ,000,000 less than in September,
but $1+69,000,000 more than the amount held in December the previous year.
The
total securities held aggregated $ 1& , 000 ,0 0 0 ,000 , an increase of $ 788 ,000,000 since
September, and an increase of $1,000,000,000 in the year.
Cash of $ 1 , W , 0 0 0 , 0 0 0 , reserve with Federal Reserve banks of $12,956,000,000
and balances with other banks (including cash items in process of collection) of
$ 1 1 ,997 *000 ,0 0 0 , a total of $ 26 ,399 *000 ,000 , showed and increase of $ 2 ,81+6 ,000,000
since September*
Borrowed money of $76,000,000 was nearly $1,000,000,000 less than in Septem
ber*
The unimpaired capital stock of the banks on December
31, 1952
$2,225,000,000, including less than $6,000,000 of preferred stock.
$3»33^»000,000,
undivided profits
or a total of $l+,83i+,GQ0,000.
$1,226,000,000
and capital
was
Surplus was
reserves $27^,000,000,
Total capital accounts of $7,059,000,000, which in
creased $ 389 ,000,000 in the year, were 7*11 percent of total deposits,
7*06 percent on December 3 1 » 1951*
compared to
TREASURY DEPARTMENT
Washington, D. C,
Press Series
2 *Lma.JL
/^./f-4rj
The total assets of national hanks on December 31 , 1952 amounted to more
than $108,000,000,000, an all-time high, it was announced, today by Anting
Comptroller of the Currency L. A, Jennings,
The returns covered the ^,916
active national banks in the United States and possessions.
The assets were
$6 ,000 ,000,000 more than the amount reported by the lj-,927 active banks on
September 5 » 1952» the date of the previous call, and were more than
$5,000,000,000 over the amount reported by the U,9*+6 active banks as of Decem
ber 31 , 1951 ,
The deposits of the banks oh December 31 were $99,000,000,000, an increase
of nearly $7,000,000,000 since September, and exceeded by $5,000,000,000 the
amount reported in the previous December.
Included in the recent deposit figures
were demand deposits of individuals, partnerships and corporations of
$56,683,000,000, which increased $3,607,000,000 since September, and time de
posits of individuals, partnerships and corporations of $21 ,517 ,000 ,000 , an in
crease of $612,000,000,
Deposits of the United States Government of
$3»23S,000,000 were up $^35 ,000,000, and deposits of States and political sub
divisions of $6,272,000,000 were up $396,000,000,
to $9,920,000,000 increased $1,263,000,000,
Deposits of banks amounting
Postal savings were $1^,000,000 and
certified and cashiers» checks, etc,, were $1 ,61^,000 ,000 .
Net loans and discounts on December 31 , 1952 were $36,120,000,000, another
all—time high.
They were $2,332,000,000, or 7 percent, above the September figure,
and $3,700,000,000, or 11 percent, over the December 1951 loans.
Commercial and
industrial loans as of the recent call date were $16 ,89^,000 ,000 , an increase of
9 percent since September, and loans on real estate of $8,266,000,000 were up 3
percent.
All other loans, including loans to farmers, to brokers and dealers and
1C5
RELEASE MORNING NEWSPAPERS,
T u esd ay,
M a r ch 10,
1 9 5 3.____
H-47
The total assets of national banks on December 31 * 195 2 amounted
to more than $ 108 ,000 ,000 ,000 , an all-time high, it was announced
today by Acting Comptroller of the Currency L„ A. Jennings,
The
returns covered the 4,916 active national banks in the United States
and possessions » The assets were $ 6 , 0 0 0 , 0 0 0 , 0 0 0 more than the
amount reported b y the 4,927 active banks on September 5, 1952, the
date of the previous call, and were more than $5,000,000,000 over
the amount reported by the 4,946 active banks as of December 31*
1951*
The d e p o s i t s of the b a n k s on D e c e m b e r 31 w e r e $99,000 , 0 0 0 , 0 0 0 ,
an increase of n e a r l y $ 7 , 0 0 0 , 0 0 0 , 0 0 0 since September, a nd e x c e e d e d
by $5,000,000,000 the a m o u n t r e p o r t e d in the p r e v i o u s December.
Included in the r e c e n t d e p o s i t f i g u r e s wer e d e mand d e p o s i t s of
individuals, p a r t n e r s h i p s a n d c o r p o r a t i o n s of $ 56 ,683 , 000 , 000, w h i c h
increased $ 3 , 6 0 7 , 0 0 0 , 0 0 0 since September, a n d time d e p o s i t s of
individuals, p a r t n e r s h i p s a nd c o r p o r a t i o n s of $ 21 ,517 , 000, 000, a n
increase of $612,000,000.
D e p o s i t s of the U n i t e d States G o v e r n m e n t
of $3,238,000,000 w e r e up $435,000,000, an d d e p o s i t s of S t ates a n d
political s u b d i v i s i o n s of $ 6 , 272 ,000,000 w e r e up $ 396 , 000, 000 .
Deposits of b a n k s a m o u n t i n g to $ 9 , 9 2 0 , 0 0 0 , 0 0 0 i n c r e a s e d
$1,263,000,000.
Postal savings w ere $ 1 4 , 0 0 0 , 0 0 0 a n d c e r t i f i e d and
cashiers’ checks, etc,, w ere $ l , 6 l 4 , 060, 000 .
Net loans and d i s c o u n t s on D e c e m b e r 31, 195 2 were
$36,120,000,000, a n o t h e r a l l - t i m e high.
T h e y w ere $ 2 , 3 3 3 *000,000,
o r .7 percent, a b ove the S e p t e m b e r figure, a n d $ 3 * 7 o 6 , 000,000, or
11 percent, o v e r the D e c e m b e r 1951 loans.
Commercial and industrial
loans as of the r e c e n t call dat e w ere $ 1 6 , 8 9 4 , 0 0 0 , 0 0 0 , a n i n c r e a s e
of 9 percent since September, a n d loans on real e s t a t e of
$8,266,000,000 w e r e up 3 percent.
All o t h e r loans, i n c l u d i n g l o ans
to farmers, to b r o k e r s a nd d e a l e r s a n d o t h e r s f or the p u r p o s e of
Purchasing and c a r r y i n g securities, a n d to banks, etc., a m o u n t e d to
$11,478,000,000,- a n inc r e a s e since S e p t e m b e r of 7 percent.
The
percentage of loans a n d d i s c o u n t s to t o tal a s s e t s on D e c e m b e r 31*
1952 was 3 3 - 4 0 in c o m p a r i s o n w i t h 3 3 . 0 6 on S e p t e m b e r 5 a n d 3 1 * 5 6 in
December 1951.
1G6
- 2 I n v e stments of the b a n k s in U n i t e d S t a t e s G o v e r n m e n t o b l i g a t i o n s
(including $ 1 5 , 0 0 0 , 0 0 0 g u a r a n t e e d o b l i g a t i o n s ) o n D e c e m b e r 31, 1 9 5 2
aggregated $ 3 5 , 9 3 6 , 0 0 0 , 0 0 0 , w h i c h w as a n i n c r e a s e of $ 9 5 3 * 0 0 0 , 0 0 0
since September, a n d a n i n c r e a s e of $ 7 8 0 , 0 0 0 , 0 0 0 since the p r e v i o u s
December".
T h e s e i n v e s t m e n t s w e r e 33 p e r c e n t of t o tal assets,
compared to 34 p e r c e n t the y e a r pre v i o u s .
O t h e r bonds, stocks and
securities of $ 8 ,356,000,000, w h i c h i n c l u d e d o b l i g a t i o n s -of States
and political s u b d i v i s i o n s of $5,983 , 0 0 0 , 0 0 0 , w e r e $ 1 6 5 , 0 0 0 , 0 0 0
less than in September, b ut $ 4 6 9 , 0 0 0 , 0 0 0 m o r e t h a n the amou n t h e l d
in December the p r e v i o u s year.
T h e t o tal s e c u r i t i e s h e l d a g g r e g a t e d
$44,000, 0 0 0 , 0 0 0 / a n i n c r e a s e of $ 7 8 8 , 0 0 0 , 0 0 0 since September, a nd
an increase of $ 1 , 0 0 0 , 0 0 0 , 0 0 0 in the year.
Cash of $ 1 , 4 4 6 ,000,000, resei’ve w i t h F e d e r a l R e s e r v e b a n k s of
$12,956,000,000 and b a l a n c e s w i t h o t h e r banks { i n c l u d i n g c a s h items
in process of c o l l e c t i o n ) of $11 , 9 9 7 , 000 ,000 , a t o tal of
$26,399, 000, 000 , s h e w e d a n
i n c r e a s e of $ 2 , 8 4 6 , 0 0 0 , 0 0 0 since
September.
Bo r r o w e d m o n e y
than in September.
$ 76 , 000,000 w as n e a r l y $ 1 , 0 0 0 , 0 0 0 , 0 0 0 less
The u n i m p a i r e d c a p i t a l s t o c k of the b a n k s o n D e c e m b e r 31, 1952
was $2,225,000,000, i n c l u d i n g less t h a n $ 6 , 0 0 0 , 0 0 0 of p r e f e r r e d .
stock.
S u r plus w as $ 3 , 3 3 4 ,000,000, u n d i v i d e d p r o f i t s $1,226.* 0 0 0 , 0 0 0
and capital r e s e r v e s $ 274,000,000, or b, t o tal of $ 4 , 8 3 4 , 0 0 0 , 0 0 0 .
Total capital a c c o u n t s of $ 7 , 0 5 9 ,000,000, which, i n c r e a s e d
i,000"*,000 in the year,, w e r e 7.11 p e r c e n t of t o tal deposits,
:ompared to 7-06 p e r c e n t on D e c e m b e r 31, 1951-
oOo
3
Statement shorning comparison of* principal items of* assets and liabilities of active national
banks as of December 31, 1952, September 5> 1952, and December 31, 1951
(In thousands of dollars)
Dec« 3 1 ,
1952
Number o f b a n k s .••••*••••••*•••
ASSETS
Com m ercial and i n d u s t r i a l lo a n s
Loan s on r e a l e s t a t e « ........................
A l l o t h e r l o a n s , in c lu d in g
o v e r d r a f t s ........... ..................................
¿* 9 3 .6
:
:
S e p t* 5 ,
1952
4 ,9 2 7
1 1 6 , 8 9 4 ,4 8 9
8 ,2 6 5 ,6 3 0
115 , 509,764
8 , 0 0 6 ,8 8 5
:
:
JL95-L
4.946
: In c re a s e o r d e cre a s e : I n c r e a s e o r d e cre a se
: s i n c e S e p t. 5 , 1 9 5 2
: s i n c e Dec* 3 1 , 1 9 5 1
: Amount
: P e rce n t:
Amount
: P ercen t
-1 1
- .2 2
-3 0
—*61
$ 1 5 , 6 8 9 ,2 5 5
7 , 5 a , 103
& ,3 S 4 ,7 2 5
2 5 8 ,7 4 5
8.93
11 , 205,234
7.68
3*23
7 2 4 ,5 2 7
9 .6 1
1 1 , 4 7 7 ,8 5 0
10 , 763,311
9 ,6 6 3 ,7 5 8
7 1 4 ,5 3 9
6.64
1 , 8 1 4 ,0 9 2
1 8 .7 7
T o ta l g r o s s l o a n s . ........................
L e s s v a lu a tio n r e s e r v e s . . •
3 6 , 6 3 7 ,9 6 9
5 1 8 ,2 9 6
3 4 ,2 7 9 ,9 6 0
4 9 7 ,9 1 4
3 2 , 8 9 4 ,1 1 6
4 7 0 ,3 3 9
6*88
4 .0 9
3 6 ,1 1 9 ,6 7 3
3 3 , ^ 8 2 ,0 4 6
2 , 3 3 7 ,6 2 7
6 .9 2
3 , 7 4 3 ,8 5 3
4 7 ,9 5 7
3 ,6 9 5 ,8 9 6
1 1 .3 8
1 0 ,-2 0
Nsti l o a n s •§••••••»•#•»•••
U. S . Government s e c u r i t i e s :
D ire c t o b l i g a t i o n s » « . * . .. .. .*
O b lig a tio n s f u l l y g u a ra n te e d .
T o t a l U* S* s e c u r i t i e s * * . . . *
O b lig a tio n s o f S t a t e s and
p o l i t i c a l su b d iv is io n s » . . . . * *
O th er b o n d s, n o t e s , and de~
b e n t u r e s ........................••*•••••••*
C o rp o ra te s t o c k s , in c lu d in g
s t o c k s o f Fed* R eserve banks*
T o ta l s e c u r i t i e s
T o t a l lo a n s and s e c u r i t i e s .- *
C u rren cy and c o in ................ ...... 0 . *«
R eserv e w ith Fed* R eserv e ta n k s
B a la n c e s w ith o t h e r b a n k s........... ..
T o ta l c a s h , b a la n c e s w ith
o t h e r b a n k s, in c lu d in g r e s e r v e b a la n c e s and c a s h ite m s
in p r o c e s s o f c o l l e c t i o n . . . . ,
00 /no , t ( I
2 ,3 5 8 ,0 0 9
2 0 ,3 8 2
3 5 , 9 2 1 ,2 3 9
1 5 ,2 0 3
35 , 936,442
3 4 , 9 7 1 ,6 1 0
1 1 .7 6 1
3 4 , 9 8 3 ,3 7 1
3 5 , 1 4 6 ,6 8 7
9 ,6 5 6
35 , 156,343
949,629
3 ,4 4 2
9 5 3 ,0 7 1
2 .7 2
2 9 .2 7
2 .7 2
7 7 4 ,5 5 2
5 ,5 4 7
7 8 0 ,0 9 9
2 .2 0
5 7 *4 5
2 .2 2
5 , 9 8 2 ,7 5 3
5 , 988,324
5 , 3 3 3 ,2 3 0
- 5 ,5 7 1
-.0 9
649,523
1 2 .1 8
2 ,1 7 6 ,2 3 0
2 ,3 4 4 ,2 8 4
2 ,3 7 3 ,1 4 9
-1 6 8 ,0 5 4
- 7 .1 7
- 196,919
O th e r a s s e t s . . . . . . .............. .................
i.o Lai s s s s t s •• •• ••# ••
•§
8.747
4.65
15.965
7 7 , 2 8 6 ,1 3 8
1 ,1 4 5 ,0 9 6
13 , 353,314
9 ,0 5 5 ,0 9 7
1 8 0 ,8 9 5
4 3 , 0 4 3 ,6 1 7
7 5 , 4 6 7 ,3 9 4
1 , a s , 564
1 2 , 8 2 1 ,4 3 2
1 1 , 7 7 2 ,1 6 2
7 8 8 ,1 9 3
3 ,1 2 5 ,8 2 0
3 0 1 ,0 3 8
-3 9 7 ,1 0 2
2 ,9 4 1 ,9 6 0
1 .8 1
4 .0 4
2 6 .2 9
-2 .9 7
3 2 .4 9
1 ,2 4 8 ,6 6 8
4 ,9 4 4 * 5 6 4
2 6 , 3 9 9 ,4 0 3
23 , 553,507
2 6 ,0 1 2 ,1 5 8
2 ,8 4 5 ,8 9 6
1 ,3 2 1 ,3 8 2
1 0 8 ,1 3 2 ,7 4 3
1 , 334,063
1 0 2 , 1 7 3 ,7 0 8
1 ,2 5 9 ,0 0 8
1 0 2 , 7 3 8 ,5 6 0
- 1 2 ,6 8 1
5 , 9 5 9 ,0 3 5
1 9 6 ,8 6 0
4 4 , 2 9 2 ,2 8 5
8 0 , 4 1 1 ,9 5 8
1 , 446,134
1 2 , 9 5 6 ,2 1 2
1 1 ,9 9 7 ,0 5 7
1 8 8 ,1 1 3
43 . 5c 4.092
1 1 .4 0
-
8.30
8 .8 3
2 .9 0
27,570
6.55
1 .9 4
1 3 4 ,7 8 0
2 2 4 .8 9 5
1*05
1 .9 1
1 2 .0 8
3 8 7 ,2 4 5
1 .4 9
-.9 5
5 .8 3
6 2 .3 7 4
4*95
5 .2 5
5 ,3 9 4 ,1 8 3
Cl
Corpr>;
.son o x pri'incipc-1 ±t,ei7i3- o f assets and. lia b i l i t i e s o f n a t i o n a l banks — continued
( In tlicus ands of d o l l a r s )
*
•
o.
D e p o s its o f i n d i v i d u a l s ^ p a r t n e r »
sh ip s^ and c o r p o r a t i o n s :
Demand®
i. ime
D e p o s its o f Uo S0 G overriientoooo
F o s t a l s a v in g s d e p o s i t s
D e p o s its o f S t a t e s and p o l i t i c a l
SUbditn SionS ©(/e®***©®». o-*oo<t&**
Doposit^s o i banks
O th er d e p o s it s ( c e r t i f i e d and
c a s h i e r s 5 c h e c k s , etC o )® ® *„0©o
T o t a l deposits®*©ri®©€>«©<i50Qo
B i l l s pqg>able, r e d i s c o u n t s , and
o th e r l i a b i l i t i e s f o r
b orrow ed m o n e y ,.© s » * * * « * * * * * » * *
O th er l i a b i l i t i e s » « e . 06C« o » &c c c »
T o ta l li a b ilit ie s ,e x c lu d in g
c a p i t a l a c c o u n t&*•**«••«•
D ec.
1C >
*
:
X
■*
Sept© 5j> s
1 9 i2
s
Dec^ 31 »
1951
• In cre a s e o r d e c re a s e ; In cre a s e o r d e crease
5 s i n c e S e p t, 5 , 1 9 5 2 ; s i n c e Dec* 31» 1 9 5 1
: P e r c e n t ; Amount
; P e rce n t
: Amount
$ 1,
1,
1,
827,061
691,501
005,527
55.97
3 ,5 8 5
3 5 .8 5
3 5 7 ,0 8 5
1 3 0 ,5 5 8
5 .8 6
1*33
$ 56 , 682,902
21 , 517,160
3 .2 3 8 ^ 0 5 0
1 3 ,5 8 8
$ 5 3 ,0 7 5 ,6 1 ,5
2 0 ,9 0 5 ^ 2 3
2 ,8 0 3 ,5 2 1 *
13*695
$ 5 U - 8 5 5 ,8 i a
1 9 ,8 2 5 ,6 5 9
2 ,2 3 3 * 6 2 3
1 0 ,0 0 3
$ 3 , 6 0 7 ,2 5 ?
6 7 1 ,7 3 7
U 3U ,526
«»107
6 , 271,676
9 ,9 2 0 ,5 2 2
5 ,8 7 5 ,1 * 3 5
8 , 6 5 7 ,1 8 ?
5 , 9 2 5 ,5 9 2
9 ,7 8 9 ,9 7 5
1 , 263,335
6„?5
!5 o 5 9
3 ,6 1 3 ,8 7 8
9 9 ,2 ? 7 ,7 7 ?
1 ,1 7 2 ,9 3 6
9 2 , 5 0 3 ,5 5 5
1 , 7 9 1 .8 6 9
9C E I7F S
^ 5 0 59 a 2
F , 7 5 3 ,9 3 1
3 7 .5 9
« 1 7 7 ,9 9 1
7*30 T ^ 5 , 1 3 2 r
7 5 ,9 2 1
1 ,7 3 9 ,8 2 5
3 ,0 6 9 ,2 3 8
1 ,6 3 2 ,8 5 ) 4
l5*k 8i*
l s 6 2 1 ,3 9 7
-9 9 3 ,3 1 7
1065971
- 9 2 .9 2 6 .5 5
I I 85142 3
1 0 1 ,0 7 3 ^ 5 2 2
9 5 , 2 0 5 ,9 3 7
9 6 * 0 6 8 ,1 ^ 2
5 ,8 6 7 ,5 8 5
6 rl 6
5 * 0 0 5 ,0 8 0
3 9 6 ,2 ) 0 .
6,80
2*93
15*50
- .7 8
60,537
3o33
8 .5 3
«9*93
T o i
390.32
7 ©30
5 .2 1
CAPITAL ACCOUNTS
C a p ita l s to c k :
P re ferred »
Common, oooco»$oo9os'«ea»av)(i6oo
T o t a l o c9»«»«**#«o*»«<ir4ici$na
ij OTplUS «f »* 4aoAi ( oc * t * * «i >t o»k«an*
4.ded p r O x itS o e to « ft« ie e « « c « e
E e se rv e *
T o t a l s urp l u s , p ro f i t s , and
r e s e r v e s ,o e » « o 9r e i « { t » t $ t
T o t a l c a p i t a l accou n ts*© *©
T o t a l l i a b i l i t i e s and
c a p i t a l a c c o u n ts f t c . o o ,
RATIOS:
5 ,6 6 6
2 ,2 1 9 ,1 8 6
5 “M u 8 > 2
“ T 3 X 7 ? iS "
1 5 2 2 5 ,7 3 1
27k,h20
6 ,3 1 9
2 , 201.602
2 ,2 0 ? ,9 2 1 *
3 ,1 9 7 ,0 0 5 '
3•1j ■‘—>96.^Ii9
0-- M/
266, i a 6
8 ,5 5 6
2 30 9 6 ,7 9 9
2'■s , 1^ 0O■"5> 0J^ 5e-*“
3 * 063 ^ 9 5
lo 2 1 2 .,53 8
2 5 8 s 7u0
»653
1 7 ,5 6 5
iS T w r
... <"*ir; » arv
13 j 3f 3 3
«*>(05618
8500)4
*O0©33
9 8o
“T T T
5 .2 9
-5 cU 5
3,00
«•»2^ 80Q
1 2 2 ,3 8 ?
1 1 9 ,5 0 7
“ 2557723
1 3 ,1 9 3
'5 ,6 8 0
5 ,8 3 5 ,3 6 9
7 7 3 5 5 ,2 2 1
5 ,7 5 9 ,8 5 0
" 5 ^ 6 7 ,7 7 1
5 ,5 6 5 .7 7 3
75,539
93550
1. 5?
1*31
2 6 9 ,5 9 6
1 0 8 p 1 3 2 , ? u3
P e rce n t
1 0 2 ,1 7 3 ^ 7 0 8
P ercen t
302^385560
5 ,9 5 9 , <35
5 .8 3
5 , 3 9 5 ,1 3 3
U .S .G o v * t s e c u r i t i e s bo t o t a l
a s s e t s . *«•*•*• «»5»c. * » . , • * » 4» . .
Loans & d is c o u n ts t o t o t a l a s s e t s
C a p i t a l a c c o u n ts t o t o t a l d e p o s it s
33*23
33.1*0
7 *ix
35.25
33.06
7.53
-3 3 c ? 0
5 .8 5
57sr
“ 5 7 l3
1 ,0 9
2*11
5 .9 1
"■ 5 , 8 3 '
5 .2 5
P ercen t
35.22
3 1 .5 6
7.06
NOTE: Minus s ig n d e n o te s d e c r e a s e *
r -*
CD
OO
- 2
The certification agreement announced today was adopted by the
Governments of the Republic of Korea and the United States to meet
this specific problem* The operation of this certification system
will be a matter of continuing close consultation between the two
Governments*
Persons who desire to import hog bristles from Korea, or any
other commodity to which the Republic of Korea certification procedure
becomes applicable in the future, may file applications for this purpose
on Form TFAC-1 with the Federal Reserve Bank of New York setting forth
the product to be imported, the purchase price, and the names and
addresses of all persons who it is contemplated will be involved as
sellers, shippers, agents, or intermediaries of any sort* Licenses
granted upon such applications will authorize the importation on con
dition that the importer presents to the Collector of Customs at the
time of entry an appropriate certificate of origin issued by the
Ministry of Commerce and Industry of the Republic of Korea under
the new arrangements*
Applications may also be filed on Form TFAC-1 with the Federal
Reserve Bank of New York for the release from Customs custody of
merchandise of South Korean origin now in Customs or en route from
Korea to the United States. Such applications should descri.be the
merchandise and give the port of entry and must be accompanied by an
appropriate letter from the Ministry of Commerce and Industry of the
Republic of Korea in support of the application for release of the
particular shipment* These support letters will attest that the
merchandise involved,is not of Communist Chinese origin and will be
issued by the Ministry of Commerce and Industry only with respect to
those kinds of products to which the certification procedure applies
at the time of issuance*
In cases where the Republic of Korea Government is not able to
certify a particular commodity, the procedure will be the same as
heretofore. Applicants for licenses to import Chinese type goods in
such cases will be required to submit to the Treasury full and satis
factory documentary proof that goods are not of Communist Chinese
origin.
Similar agreements with the Governments of Hong Kongjp*Japan, and
r;ly ^nnounced
with the Chinese Government in Formosa were
Ha.
*5-/ ^
2 / £ , / &H)£Lv**JL>
The Treasury Department today announced that an agreement has
been reached with the Government of the Republic of Korea to facilitate
the importation of goods of South Korean origin and at the same time
prevent Communist Chinese exports from entering the United States
disguised as Republic of Korea products. The agreement contemplates
the issuance by the Republic of Korea authorities of certificates of
origin covering the importation into the United States of goods of
Chinese type produced in South Korea which are subject to the Foreign
Assets Control Regulations of the Treasury Department.
T
#iile the Republic of Korea Government is prepared at present
to issue certificates of origin only with respect to hog bristles,
it is expected that in the near future it will be prepared to certify
other commodities of Chinese type as being of South Korean origin. Hog
bristles, which are normally imported into the United States largely
from mainland China, are one of the principal Korean commodities
affected by the Foreign Assets Control Regulations.
The basic purpose of the Foreign Assets Control is to prevent
Communist China and North Korea from obtaining foreign exchange with
which to further their aggression in Korea. On December 16, 1950,
following the unprovoked aggression by the Chinese Communists in
Korea, the United States Government, in support of the objectives
of the United Nations* action in Korea, announced measures designed
to place under control all economic relations with Communist China
in order that the Chinese Communists should be denied access to
United States supplies or assets in the United States. An essential
part of this program was the issuance by the United States Treasury
Department, under the Trading with the Enemy'Act, of the Foreign Assets
Control Regulations of December 17, 1950, which forbade all trade and
financial transactions involving the Communist Chinese and North Korean
regimes and their nationals by persons subject to the jurisdiction of
the United States unless Treasury approval was obtained.
The Treasury has amended the Foreign Assets Control Regulations
from time to time in order to make certain that goods of Communist
Chinese origin were kept out of United States markets. Under the
Regulations licenses are now required for the importation of merchan
dise of Chinese type even when it is alleged to have been produced
outside of Communist China. Only a few such licenses have been granted
by the Treasury because importers found it difficult to furnish satis
factory proof that the specific merchandise of Chinese type offered for
importation was not of Communist Chinese origin.
TREASURY
D EPA RTM EN T
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, March 12, 1953.
H-48
The Treasury Department today announced that an agreement has
teen reached with the Government of the Republic of Korea to
facilitate the importation of goods of South Korean origin and at
the same time prevent Communist Chinese exports from entering the
United States disguised as Republic of Korea products.
The
agreement contemplates the issuance by the Republic of Korea
authorities of certificates of origin covering the importation
into the United States of goods of Chinese type produced in
South Korea which are subject to the Foreign Assets Control
Regulations of the Treasury Department.
While the Republic of Korea Government is prepared at present
to issue certificates of origin only with respect to hog bristles,
it is expected that in the near future it will be prepared to
certify other commodities of Chinese type as being of South Korean
origin. Hog bristles, which are normally imported into the
United States largely from mainland China, are one of the
principal Korean commodities affected by the Foreign Assets Control
Regulations.
The basic purpose of the Foreign Assets Control is to prevent
Communist China and North Korea from obtaining foreign exchange
with which to further their aggression in Korea.
On December 16,
1950, following the unprovoked aggression by the Chinese
Communists in Korea, the United States Government, in support of
the objectives of the United Nations* action in Korea, announced
measures designed to place under control all economic relations
with Communist China in order that the Chinese Communists should
be denied access to United States supplies or assets in the
United States.
An essential part of this program was the
issuance by the United States Treasury Department, under the
Trading with the Enemy Act, of the Foreign Assets Control
Regulations of December 17, 1950, which forbade all trade and
financial transactions involving the Communist Chinese and
North Korean regimes and their nationals by persons subject to the
jurisdiction of the United States unless Treasury approval was
obtained.
The Treasury has amended the Foreign Assets Control
Regulations from time to time in order to make certain that goods
oi Communist Chinese origin were kept out of United States
markets.
Under the Regulations licenses are now required for the
172
-
2
-
importation of merchandise of Chinese type even when it is alleged
to have been produced outside of Communist China.
Only a few such
licenses have been granted by the Treasury because importers
found it difficult to furnish satisfactory proof that the specific
merchandise of Chinese type offered for importation was not of
Communist Chinese origin.
The certification agreement announced today was adopted by the
Governments of the Republic of Korea and the United States to meet
this specific problem.
The operation of this certification system
will be a matter of continuing close consultation between the two
Governments.
Persons who desire to import hog bristles from Korea, or any
other commodity to which the Republic of Korea certification
procedure becomes applicable in the future, may file applications
for this purpose on Form TFAC-1 with the Federal Reserve Bank of
New York setting forth the product to be imported, the purchase
price, and the names and addresses of all persons who it is
contemplated will be involved as sellers, shippers, agents, or
intermediaries of any sort.
Licenses granted upon such
applications will authorize the importation on condition that the
importer presents to the Collector of Customs at the time of
entry an appropriate certificate of origin issued by the Ministry
of Commerce and Industry of the Republic of Korea under the new
arrangement s .
Applications may also be filed on Form TFAC-l with the Federal
Reserve Bank of New York for the release from Customs custody of
merchandise of South Korean origin now in Customs or en route from
Korea to the United States.
Such applications should describe the
merchandise and give the port of entry and must be accompanied by
an appropriate letter from the Ministry of Commerce and Industry
of the Republic of Korea in support of the application for release
of the particular shipment.
These support letters will attest
that the merchandise involved is not of Communist Chinese origin
and will be issued by the Ministry of Commerce and Industry only
with respect to those kinds of products to which the certification
procedure applies at the time of issuance.
In cases where the Republic of Korea Government is not able to
certify a particular commodity, the procedure will be the same as
heretofore.
Applicants for licenses to import Chinese type goods
m such cases will be required to submit to the Treasury full and
satisfactory documentary proof that goods are not of Communist
Chinese origin.
Similar agreements with the Governments of Hong Kong and
apan, and with the Chinese Government in Formosa were announced
recently.
0 O0
RELEASE MORNING NEWSPAPERS,
Tuesday, March 10* 1953«
The Secretary of the Treasury announced last evening that the tenders for
$1,200,000,000, or thereabouts, of 91-day Treasury bills to be dated March 12 and to
mature June 11, 1953, which were offered on March 5, were opened at the Federal Re
serve Banks on March 9.
The details of this issue are as followst
Total applied for - $2,442,093,000
Total accepted
- 1,201,878,000
Average price
(includes $230,117,000 entered on a
non-competitive basis and accepted in
full at the average price shown below)
- 99*470 Equivalent rate of discount approx, 2.098$ per annua
Range of accepted competitive bidst
(Excepting one tender of $200,000)
- 99 ,1*76 Equivalent rate of discount approx. 2.073$ per annua
- 99.1*68
*
«
«
»
«
2.105* '
"
glgj
Leur
(22 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
I
I
20,054,000
1,602,267,000
29.433.000
160,108,000
13.731.000
35.855.000
ll*,i*77,ooo
23.529.000
88 . 626.000
18,71*5,000
10 , 606,000
29,71*3,000
30,892,000
ng.m.000
$ 2 , 1*1*2 , 093,000
$1,201,878,000
59,767*000
.
17 1 28.000
33.890.000
237,688,000
39.945.000
11.631.000
76 ,818,000
73,164,000
TOTAL
11,732,000
811, 631,000
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C
RELEASE m o r n i n g n e w s p a p e r s ,
Tuesday, M a r c h 10,
H-49
1953«
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 200,000* 000, or t hereabouts* of 9 1 - d a y T r e a s u r y b i l l s
to be dated M a r c h 12 a n d to m a t u r e June 11, 1953* w h i c h w e r e o f f e r e d
on March 5* w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s o n M a r c h 9«
The d e t a i l s of this i s sue are as follows:
Total a p p l i e d f o r - $ 2 , 4 4 2 , 0 9 3 * 0 0 0
Total a c c e p t e d
1,201,878,000
Average p r i c e
(includes $ 2 3 0 , 1 1 7 * 0 0 0
entered on a non-competitive
b a s i s a nd a c c e p t e d in full at
the a v e r a g e p r i c e s h own
below)
- 9 9 . 4 7 0 E q u i v a l e n t rate of d i s c o u n t approx.
2 «098$ p e r a n n u m
Range of a c c e p t e d c o m p e t i t i v e bids:
( E x c e p t i n g one t e n d e r of
$200,000 )
High
- 9 9 . 4 7 6 E q u i v a l e n t r a t e of d i s c o u n t approx.
2,073% p e r a n n u m
- 9 9 . 4 6 8 E q u i v a l e n t rate of discounts approx.
2 c105$ p e r a n n u m
Low
(22 percent of the a m o u n t b i d f o r at the l o w p r i c e wa s a c c e p t e d )
1 Federal Reserve
I District
I
I
I
I
I
I
1
1
I
1
1
1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
T o tal
A p p l i e d f or
$
TOTAL
20,054,000
1,682,267,000
29,433,000
59*767*000
1 7 , 128,000
3 ^, 890,000
237 ,888,000
39,945,000
11 ,631 ,000,.
76,813,000
73,164,000
160 , 108,000
$2,442,093,000
0 O0
Total
Accepted
$
11 ,732,000
811 ,631,000
13 *731*000
35 , 855,000
14,477,000
23*529*000
88 ,626,000
18,745,000
10 ,606,000
29,743,000
30 , 892,000
112 ,311*000
$ 1 , 201 ,878,000
Page 2
' ‘‘For Monday, Mar. 9> 195>3j a.m# Newspaper Release
In accepting her appointment as Associate National Chairman, Miss Pickford
said: “It is a privilege for any American to be called upon to serve
country
and especially is this true at a time of l i m e threat to our national security.
Therefore, it is with great pride that I join our First Lady, Mrs. Eisenhower,
Honorary National Chairman of the W o m e n ’s Crusade for America, as Associate
National Chairman for the forthcoming Bond-A-Month drive.
I am certain that the
women of America will welcome the opportunity to
give their full and enthusiastic support to this
cause.
^ T his is not the first time I have participated in a United States Bond
Drive*
_tg'Tgafrfeyy I know from experience what an excellent investment
government bonds are and always have been, but the Investment in dollars is
p-pi, ~r important
*
the investment in freedom.
^tjjLLl«j lift's"T5FSVe 11
! women of America*«through hlieii*”1buying1'powers
the purse strings of the nation; therefore, it is important
be acquainted with the wisdom Mid
ey
neoegoinby of buying United States
Bonds regularly.”
Maren ö u - ö i , w/asnington, b.u.; aprii
z -ó
9 boston;
April 4-7, Philadelphia; April 9-11, Atlanta; April 12-14, St. Louis;
April 15-17, Kansas Citv^ A p r il 18-21, Des Moines; April 23-24,
Minneapolis;
April 27-28, Dallas; April 30-May 2, Denver;
May 4-6, Salt Lake City; May 7-8, Portland, Oregon; May 13,
San Francisco.
\
\\
\
JggKrapapfiy please
Foi Monday, M o p » 9 , 1953,
/ V -
7U. 7*
s'»
|
Soorotary of the Treasury Cr®orgo--M
announced that
yi
Mary Pickford will tour the country in connection with a nation-wide campaign
of women volunteers to sign up additional savings bond buyers on the
Bond-A-Month Plan, beginning in April*
The motion picture star, Known as "America*s Sweetheart", toured the nation
during World War 1 in behalf of sales of Liberty Bands.
Her 1953 tour will
begin in Washington, D. C., March 30-31, and will include 12 other metropolitan
centers:
Boston, Philadelphia, Atlanta, St. Louis, Kansas City, Mi'UffOTTip
Des Moines, Minneapolis, Dallas, Denver, Salt Lake City, Portland, Oregon^
and San Francisco.
Miss Pickford will serve as associate national chairman of the Bond-A-Month
sign-up campaign, of which Mrs. Dwight D. Eisenhower is honorary national
chairman*
Plans for her tour include luneiieowpy*fteaMMHHB, receptions, press conferences
and personal calls on prospective customers among self-employed professional
and business men and women, and the showing of a specially prepared film of
scenes from motion pictures in which she has appeared since her sixteenth
year^
the remarkable career in this land of opportunity of a girl
who in seven years rose from bit-player in silent films to a star under a
T^tmillion dollar contract, became a producer and executive of important producing
units in the industry.
TREASURY
D EPA RTM EN T
Information Service
i m m ed i at e r e l e a s e ,
Tuesday, March 10, 1953»
WASHINGTON. D .C.
H ~50
The Treasury Department announced today that Mary Pickford
will tour the country in connection with a nation-wide campaign
of women volunteers to sign up additional savings bond buyers on
the Bond-A-Month Plan, beginning in April.
The motion picture star, long known as "America's Sweetheart”,
toured the nation during World War I in behalf of sales of
Liberty Bonds.
Her 1953 tour will begin in Washington, D. C.,
March 30-31, and will include 12 other metropolitan centers:
Boston! Philadelphia, Atlanta, St. Louis, Kansas City, Des Moines,
Minneapolis, Dallas, Denver, Salt Lake City, Portland, Oregon,
and San Francisco.
Miss Pickford will serve as associate national chairman of
the Bond-A-Month sign-up campaign, of which Mrs. Dwight D.
Eisenhower is honorary national chairman.
Plans for her tour include receptions, press conferences
and personal calls on prospective customers among self-employed
professional and business men and women, and the showing of
a specially prepared film of scenes from motion pictures in which
she has appeared since her sixteenth year.
The film will review
the remarkable career in this land of opportunity of a girl who
in seven years rose from bit-player in silent films to a star
under a million dollar contract, axid then became a producer and
executive of Important producing units in the industry.
In accepting her appointment as Associate National Chairmap,
Miss Pickford said:
"It is a privilege for any American to be
called upon to serve the country and especially is this true at
a time of threat to our national security.
Therefore, it is
with great pride that I join our First Lady, Mrs. Eisenhower,
Honorary National Chairman of the Women's Crusade for America, as
Associate National Chairman for the forthcoming Bond-A-Month drive.
I am certain that the women of America will welcome the opportunity
to give their full and enthusiastic support to this cause.
"This Is not the first time I have participated in
a United States Bond Drive.
I know from experience what an
excellent investment government bonds are and always have been,
but the investment in dollars Is less important than the investment
in freedom.
I
-
2
-
"The women of America hold the purse strings of the nation;
therefore, it is important that they he acquainted with the
wisdom of buying United States Savings Bonds regularly."
Following is the itinerary for Miss Pickford's tours
March 30-31* Washington, D. C.; April 2-3* Boston;
April 4-7* Philadelphia; April 9 - H * Atlanta; April 12-14,
St. Louis; April 15-17* Kansas City, Mo.; April 18-21, Des Moines;
April 23-24, Minneapolis; April 27-28, Dallas; April 30-May 2*
Denver; May 4-6, Salt Lake City; May 7-8, Portland, Oregon;
May 13* San Francisco.
0 O0
- 3 -
mm
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 er
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 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 io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s a re
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t ,
Under S e c t io n s
k2
and 117 ( a )
( 1 ) o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n l l £ o f th e Revenue A ct o f 191*1* th e amount o f d iscou n t
a t w h ich b i l l s
is s u e d h ereu n d er a r e s o ld s h a l l n o t be c o n s id e re d to
a c c r u e u n t i l such b i l l s s h a l l be s o l d , redeem ed o r o th e r w is e d isp o se d o f,
and such b i l l s a r e ex clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u r a n c e com panies)
is s u e d h ereu n d er need in c lu d e in h i s income t a x r e t u r n o n ly th e d iffe re n c e
betw een th e p r i c e p a id f o r such 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 seq u en 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 le
o r red em p tio n a t m a tu r it y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 ent C i r c u l a r No, I4I
8 , a s amended, 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 re a s u ry b i l l s and g ov ern th e c o n d itio n s o f
th e ir is su e .
C op ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
R e se rv e Bank o r B ra n ch .
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 enders from o t h e r s m ust be accompanied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 range
o f a c c e p te d b i d s .
Those su b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 th e T re a s u ry e x p r e s s l y reserves
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 a l l te n d e r s * in w hole Or in p a r t , and
h i s a c t i o n in 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 t o t h e s e reserva*-
t i o n s , n o n -c o m p e titiv e te 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 ic e
from any one b id d e r w i l l be a c c e p te d i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n three
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s m ust be made o r co m p leted a t th e F e d e r a l Re
s e r v e Bank on
March 19. 1953
» in
c a s h o r o t h e r im m e d ia te ly a v a ila b le
funds o r in a l i k e f a c e amount o f T re a s u ry b i l l s m a tu rin g
Cash and exch an g e te n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
March 19. 195>3
Cash ad ju stm en 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 rin g b i l l s
a c c e p te d in exch an ge and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem ption,
a s s u c h , and l o s s from th 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 re a s u ry b i l l s
s h a l l n o t have any s p e c i a l t r e a t m e n t , a s s u c h , un d er th e I n t e r n a l Revenue
Code, o r law s am endatory o r su p p lem en tary t h e r e t o .
The b i l l s s h a l l be
minm
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday« March 12« 195>3_____ _*
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 lic n o t i c e , i n v i t e s te n d e rs
f c r $1,200,000,000
, c r th e r e a b o u t s , o f
91 -d a y T r e a s u r y b i l l s , f o r
m
c a s h and i n exch an ge f o r T re a s u ry b i l l s m atu rin g
th e amount o f $ 1 ,1 9 9 * 9 7 5 * 0 0 0
, t o be is 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
June 18
te re s t.
1953
, in
March 19^1953
March 19* 1953
--------- g g
The b i l l s
* and w i l l m ature
, when th e f a c e amount w i l l be p a y a b le w ith o u t i n -
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
T en d ers 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 ran ch es 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 rd t i m e ,
Monday.
March l6. 1993 »
, i. - r
JT ■
/rj\
SXJQC.
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in th e c a s e o f com p eti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re 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 t h r e e d e c im a ls , e . g . ,
99.925.
F r a c t i o n s may n o t be u sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in the
s p e c i a l en v e lo p e s w hich 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 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 ers th a n banking 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 t o subm 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and re co g n iz e d
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON, D .C
io
JLC
RELEASE MORNÏNG. NEWSPAPERS,
T h u r v M a r c h 12,., 195.3 ♦. •■
H;-51
The S e c r e t a r y :of, the .Treasury,...b y j p h i s public; notice, i n v i t e s
tenders Tor.. $ 1 , 20.
0:,000, 000, o r ,thereabouts, of -91 -day T r e a s u r y .bills,
for cash and in e x c h a n g e .f o r Treasury, b i l l s m a t u r i n g - M a r c h 19, 1953^
in the amount of $ 1 , 199 , 975 , 000, to be i s s u e d on a d i s c o u n t b a s i s
under competitive a n d iron? competitive- bidding', as h e r e i n a f t e r p r o v i d e d .
The bills, of this', s e r i e s 7 will -.be d a t e d M a r c h - 19, 1953, and wil l .;
mature June..18, •1953, when, t h e face a m o u n t ,will: be ;p a y a b l e ■w i t h o u t •
interest . ■! T h e y w i l l •be i s s u e d in b e a r e r f o r m o n l y , a n d ■in ■: u *:.?d o
denominations o f $1,000,- .$5, QQO, $10yQOO, .$100, QQO,n $ 5 0 0 , 0 0 0 , rjand ,
$1,cbo,OQ.O- {m & tu rity P v aju e) .
.
’
1‘
.
\ *!P
.
>j
■
•; Tenders w i 11 b e .received-at Federal1Reserve Banks and Branches.:
up to the closing hour,, two o*clock p.m** Eastern Standard!time, o\f;
.j
Monday, March l6j,.;:1 9 5 3 Tenders will-.not be received at the * *•*&»<*••*$
Treasury.DepartmentWashington..
Es;ch ;tender must be for an even.multiple -•of .$1,000,? and in. the case of ..competitive tenders the price
offered must ;be expressed o n ;the. basis of 100, with not more than
three r d e c i m a l s e .' g ., '99.925 >;r Fractions ,may- not be used
jit -is .
-■:
urged-that tenders .be made on the printed .-forms and .forwarded': in the
special -envelopes which will b e ;supplied by Federal Reserve Banks or
Branches on application-therefor,
:,y-'
4, »
- ' • **
... O t h e r s .t h a n /banking; i n s t i t u t i o n s w i l l ,no t b e p e r m i t t e d :to submit
tenders except f o r t h e i r o w n a c c o u n t ... T e n d e r s wi 11. b e ;r e c e i v e d ::
without deposit f r o m i n c o r p o r a t e d b a nks a n d trust c o m p a n i e s a n d f r o m
responsible- and -.recognised'dealers•in. i n v e s t m e n t .s e c u r i t i e s »•;0 T e n d e r s
from, others, m u s t b e a c c o m p a n i e d ;b y - p a y m e n t o f ;=2 p e r c e n t .:o f t he face
amount of T r e a s u r y b i l l s a p p l i e d f o r , uniesa. t h e tenders.!, are g rr: .!>■ *
accompanied b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or t r u s t , . c o m p a n y ’.V
' 4*
•
V'
) -Immediately after, the c l o s i n g hour, t e n d e r s will; be; o p e n e d . a t the
Federal Reserve B a n k s and B r a n c h e s f o l l o w i n g . •w h i c h p u b l i c announcem
en t will be m a d e b y the S e c r e t a r y of the T r e a s u r y of the a m o u n t a n d
price range of a c c e p t e d bids.
T h o s e s u b m i t t i n g t e n d e r s will be
advised of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of the
Treasury e x p r e s s l y r e s e r v e s the r i ght to a c c e p t or r e j e c t a n y or all
tenders, in w h o l e or in part, a n d h i s a c t i o n in a n y such r e s p e c t
shall be final.
S u b j e c t to these r e s e r vations, n o n - c o m p e t i t i v e
tenders for $ 200,000 or less w i t h o u t s t ated p r i c e f r o m a n y one
bidder will be a c c e p t e d in full at the a v e r a g e p r i c e (in t h ree
decimals) of a c c e p t e d c o m p e t i t i v e bids.
Settlement for accepted
2
tenders in accordance with the bids must be made or completed at
the Federal Reserve B a n k on March 19, 1953, in cash or other
immediately available funds or in a like face, amount of Treasury
bills maturing March 19, 1953. Cash and exchange tenders Will
receive equal treatment.
Cash adjustments-•w i l l Irèririadè--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 f r o m the salé 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- thé Internal Revenue C o d e , or laws amendatory or .
supp1ementary t h e r e t o . The bills shall be subject t o .estate,
inheritan c e , ’•gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation n ow or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessio n s 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 i n t e r e s t . . Under Sections 4-2 and; 117. (a) (l) o f the Internal
Revenue, Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be.considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of., and such bills, are excluded from
consideration as capital assets.. Accordingly, the owner of .Treasury
bills (other than life insurance companies) Issued hereunder need
include in his income tax return only the difference between the
price pai d for such bills, whether on original issue or on
subsequent p u r c h a s e , . and the amount actually received either upon
sale, or redemption at maturity during the. taxable year for which the
return is made / as. ordinary gain or l o s s .
Treasury- Department Circular Né. 4l8, as amended, and this
notIce>.-prescribe the terms of the Treasury bills and govern the
c o n d i t i o n s of t h eir issue. .. C o p i e s of the c i r c u l a r m a y be obtained
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.
oOo
TR EA SU R Y
D EPARTM EN T
Information Service
WASHINGTON, D .C.
RELEASE MORNING NEWSPAPERS,
Friday, MÊtmÊ/mm 1 3 j 1953»
During the month of
1953
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
Secretary Humphrey announced
today.
oOo
t r e a s u r y
d e p a r t m e n t
Information Service
Wa s h in g t o n , d .c .
RELEASE MORNING NEWSPAPERS,
Friday, March 13* 1953»____
H-52
During the month of February, 1953
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$8,797*700, Secretary Humphrey announced
today.
IMMEDIATE RELEASE
March 1ft» 1953
VO
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 19i*6, from January 1, 1953, to February 28, 1%
inclusive, as follows:
Established Quota
Quantity
Products of the
Philippines
Unit of
Quantity
Imports as of
February 28, 1953
Gross
139,91(5
200,000,000
Number
381*,910
1^8,000,000
Pound
15,1*63,028
Cordage .............. ,
6,000,000
Pound
779,923
.
1,01*0,000
Pound
2,500
1,?0i±,000,000
Pound
850,000
Buttons ........ .....
Cigars
.............. .
Coconut Oil ...... .
Rice .......... .
*
-
(Refined.......
Sugars
289,863,233
(Unrefined.....
Tobacco ............ . .
6 ,500,000
Pound
3l*6,5Q2
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, March 12, 1953»
H-53
The Bureau of Customs announced today preliminary figures show
ing the imports for consumption of commodities on which quotas were
prescribed by the Philippine Trade Act of 1946, from January 1,
1953, to February 28,,1953. inclusive, as follows:
Products of the :
Philippines
:
Buttons.............
Established Quota
Quantity
8 5 0 ,0 0 0
: Unit of
: Quantity
: Imports as^of
: February 28,
:
1953
Gross
139,945
384,910
Cigars........... .
2 0 0 ,0 0 0 ,0 0 0
Number
Coconut Oil.........
448,000,000
Pound
15,463,028
Cordage.............
6 ,0 0 0 ,0 0 0
Pound
779,923
Rice................
1,040,000
Pound
2 ,5 0 0
(Refined........
Sugars
(Unrefined.....
1,904,000,000
Pound
Tobacco.............
6 ,5 0 0 ,0 0 0
289,863,233
Pound
346,502
cJ.
7
IMMEDIATE RELEASE,
March 12 f 1953______ ____
The Bureau of Customs announced
preHnnjnary figures showing the
quantities of wheat and wheat f l o u i / W c ^ ^ r ^ u r ^ W S f i d r a w n from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 19Ul, as modified by the President’s proclamation of April 13, 19)42
for the 12 months commencing May 29, 1952, as follows;
Wheat
Country
of
Origin
Established :
Imports
Quota
tMay 29, 1952, to
*iferch 12. 1953
(Bushels}
(Bushels)
795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
*100
Syria
New Zealand
Chile
100 *
Netherlands
... 2,000
Argentina
100
Italy
Cuba
1,000
France
Greene
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
Guatemala
100
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
—
79k,576
—
—
* *
mm
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established : Imports
Quota
May 29, 1952,
•
• to Jfeirch 32
(Pounds)
(Pounds)
t
3,815,000
2k ,000
13,000
13,000
8,000
— ,
-
mm
«
mm.
mt
* *
mm
-
mm
kk
1,000
5,000
5,000
1,000
1,000
1,000
Uj,CO0
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
mm-
-
""800,000
V
75,000
mm
-
«a»
1,718,1(50
mm
mm
-
mm
-
«
-
-
'
mm
mm
"
mm
mm
tm
mm
w
«
mm
-
'
*■
-
-
m
.
-
-
w*.
k ,
000 ,000
TREASURY DEPARTMENT
Washington
108
m e d i a t e release
Thursday, March 1 2 , 1 9 5 3
H-5U
The B u reau o f Customs announced to d a y p r e li m i n a r y f i g u r e s showing th e
q u a n titie s o f w heat and w h eat f l o u r a u th o r iz e d t o b e e n t e r e d , o r w ithdraw n from
warehouse, f o r Consum ption un d er th e im p o rt q u o ta s e s t a b l i s h e d i n th e P r e s i d e n t 's
proclam ation o f May 2 8 , 1 9 U l, a s m o d ified b y th e P r e s i d e n t 's p r o c la m a tio n o f
April 1 3 , 1 9 4 2 , f o r th e 12 months commencing May 2 9 , 1 9 5 2 , a s f o l l o w s :
W heat
Country
of
O rigin
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
A u stralia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Ita ly
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and D anzig
Sweden
Jugoslavia
Norway
Canary I s la n d s
Rumania
Guatemala
B rasil
Union of S o v ie t
S o c i a l i s t R e p u b lic s
Belgium
E s ta b lis h e d :
Im p o rts
Quota
:May 2 9 , 1 9 5 2 , to
;M arch 1 2 , 1 9 5 3
(B u s h e ls )
(B u s h e ls )
7 9 5 ,0 0 0
7 9 6 ,5 7 6
-
-
**
—
mm
100
« .
mm
100
100
M
W
-
mm
■m m
—
*
*
mm
—
mm
mm
—
1 ,0 0 0
100
100
100
100
8 0 0 ,0 0 0
3 ,8 1 5 ,0 0 0
2 U ,0 0 0
13^000
1 3 ,0 0 0
8 ) 000
7 5 ,0 0 0
1 ,0 0 0
1 ,7 1 8 ,1 * 5 0
mm
m
mm
kk
mm
5,000
« ,
100
2 ,0 0 0
100
1 ,0 0 0
100
W heat f l o u r , s e m o lin a ,
cru s h e d o r c ra c k e d
w h e a t, and s i m i l a r
w h eat p ro d u c ts
IiTiports
E sta b lis h e d i
Quota
: May 2 9 , 1 9 5 2 , t o
: March 1 2 , 1 9 5 3
(p o u n d s)
(P o u n d s)
«• .
5 ,o o o
i,o o o
1 ,0 0 0
1 ,0 0 0
111, 0 0 0
2 ,0 0 0
1 2 ,0 0 0
1 ,0 0 0
1 ,0 0 0
1 ,0 0 0
ilOQO
1 ,0 0 0
1 ,0 0 0
1^000
x , 000
1 ,0 0 0
1 ,0 0 0
■mm
mm
-
*9
, -
mm
mm
m
mm
mm
mm
W*
mm
mm
mm
7 9 k ,$ 7 6
k , ooo,ooo
1,716,1*91*
-
2
-
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of loss than 1-3/16 inches
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 b y cotton wastes other than comber wastes m a d e 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
United K i n g d o m ....... .
f l a n f l H a
__________.............
Pranr.fi .................
British I n d i a ....... . •
Netherlands ............
Switzerland ............
Pa I c H n n __ ___..........
.Tanan ...__ ............
f!h4n a . . . . . . . . . . . . . . . . . .
TT.ortmt
..................
" w r “ ...............
.
HllVta
...... a .
f t A
r m
a n v
.
.
.
.
.
.
.
.
.
.
.
.
.
.
a
«
Italy *••••••••»••••••••
Established
TOTAL QUOTA
: Total imports
:
: Sept. 20, 1952, to *
• March 12,, 1953
:
78,053
239,495
13,032
4,323,457
239,690
227,420
69,627
4 8 ,162
6 8 ,2 4 0
15,715
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5.432,509
1J Included in total imports, column 2.
Prepared by the Bureau of Customs
Imports
1/
Established :
33-1/3$ of : Sept. 20, 1952,
Total Quota : to March 12., 1953
1,441,152
77,446
75,807
13,032
22,747
14,796
12,853
15,715
-
—
-
—
-
—
’
—
-
-
25,054
6.430
25,443
7.088
25,054
6,430
'425.941
1.599.886
137,677
f
4
Æ,.
IMMEDIATE RELEASE
L/ìMarch 12, 1953
f\Á^
J
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) (inpounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/A”
Imports Sept. 20. 1952, to March 12, 1953* inclusive
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan ....
Peru ......;... .
British India .....
China .............
Mexico ............
Brazil ............
Union of Soviet
Socialist Republics
Argentina .........
H a i t i .... ...... ..
Ecuador ......... ..
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
Imports
*■!
587
Ü»
8,883,259
475,124
5,203
237
9,333
.
m
1,382
—
**
Country of Origin
Established Quota
Honduras ............
Paraguay ............
Colombia . .. ..........
Iraq ..... ...........
British East Africa .,.
Netherlands E . Indies
Barbados ..;..........
l/Other British W. Indies
Nigeria
2/0ther British 1. Africa
jj/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.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 1952. to February 28, 1953
Cotton 1-1/8» or more, but less than 1-11/16*
Imports Feb. 1. 1953. to March 12. 1953
Established Quota (Global)
Established Quota (Global)
70,000,000
Imports
,
7 642,640
45,656,420
Imports
9,960,069
Imports
m
m
-m
m
»
.
MB#
m
TREASURY DEPARTMENT
• X^ashington
IMMEDIATE RELea Se
T h u rsd ay , March 1 2 , 1 9 5 3
"
H*°55
. .
P r e lim in a ry , d a ta on im p o rts f o r consum ption o f c o t t o n and c o t t o n w a s te c h a r g e a b l e .t o th e q u o ta s
e s t a b l i s h e d by t h e P r e s id e n t* s P ro c la m a tio n o f Septem ber $•, ''1939? a s amended ',
COTTON ( o t h e r th a n T i n t e r s ) ( i n p o u n d s ) .C o tto n und e r 1 - 1 / 8 i n c h es o t h e r -th a n rough o r h a rs h u n d er
Im p o rts ~S e p t o' 2 0 , 1 9 3 2 “, to M arch 12,1 1 9 3 3 , ' i n c l u s i v e •
C ou n try o f O rig in
Im p o rts
E s t a b l i s h e d Quota.
E g yp t and th e .A nglo*
E g y p tia n Sudan
P e ru
a * • •*>*#■ **<*
B r i t i s h In d iaC hina
»© • * o
M exico da •• • •• * »•«!<>
Bl EZXX e •c a a r#a4» #■ &a a
Union o f S o v i e t
S o c i a l i s t R e p u b lic s
A rg e n tin a ••?•«•••••*
H a iti
E cu ad o r $ * #»
•a ©• •»&
783,816
21*7,95-2 '
2 , 003,1483
1 ,3 7 0 ,-7 9 1
8 , 8 8 3 .2 5 9
618:,7 23
475,124
- 5 ,2 0 3
237
-9 ,3 3 3
3/k"
;
* * ^ . 3
•
E s t a b l i s h e d Quota
■ C ou n try o f : O r ig in
. -......... - 7 5 2 ..........
.. Honduras. »*.3 * « . •♦ -e •««•
P arag u ay » » r
•
871
i 2h - Colom bia $ « ^ ^ v $ « e •• *>©©o
tn4, , q q $ .
JPEQ 0 • 0 #
¡W<>1»9 •• • • •••
B r i t i s h E a s t ; A f r i c a v#V
2/2:ii0 '
1,
Netherlands-- E c I n d i e s ' * - •- •-r 7 1 ,3 8 8 . "
8 , 3 8 3 ,2 5 9
..t*:***;**
.
%
B arb ad os
&p * » ••* &
•
l /0 t h e r B ritis h . W
9 I n d ie s “ * - >2T9m .
N x ^ o ria k•
5-,*377 '<;
2 / 0 t h e r B r i t i s h ; ¥• A friea* *....... * i'6 ,c o ip
' r. "
1 ,3 8 2 ^ •£89* •• _
3 / 0 t h e r French; A f r i c a VoV
-■
■r»*.-■ *; •r • ^
A l g e r i a and“ T u n is i a v v /
4.-4 / - Ï.♦ * « ■*Ç ^ 9* •?
■’•*
.
v
.,>.-v*
—
v
-!
‘
'■
_:.
* ’' ■
T r in id a d , and' Tbbago 0
* 587
- '
- '•
1 / O th e r th a n B a rb a d o s, Bermuda, Ja m a ic a ,
2/ O th er th an , Gold C o a st and N ig eria». v . , . . . . ...
5 / O th er th a n A l g e r i a , T u n i s i a , and M ad agascar»
------4 - - ’ iih ..... —
. ,
C o tto n 1 - 1 / 8 ” o r mor e , . b u t l e s s th a n l - l l / l 6 lt
Im p o rts Fei3^"i , ~ 1 9 h 3 :' t o March 12'f 1 9 5>3
E s t a b l i s h e d Q u o ta (G lo b a l )
E s t a b l i s h e d Q uota ( G lo b a l)
7 0 ,0 0 0 ^ 0 0 0
7,61^2,61*0
hS'&Sgk20
- v-
m
***************
C o tto n , har s h o r ro u g h , o f l e s s th a n 3 /U M
Im ports^^epTtT'*’? 0 , 1 9?2S t o F e b ru a ry 2 8 , 1 9 5 3
Im p o rts
Im p o rts
Im p o rts
9 , 960,069
M
CD
Ui
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 VALUEi Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
•
• Established
: TOTAL QUOTA
•
United Kingdom
France ........... A.«
British India »•••*»••««
Netherlands ■*•••*••*>•■»•
Switzerland *«•.*••.....
Belgium *v'«*•••»»*•»»«•«
Japan •«• *
China
Egypt
Cuba
Germany «.*.«••••••••••*
Italy •*«***•«• ••,•••«••»
Imports
1/
* Total imports
s Established :
Sept.
20,
1952,
: Sept, 20, 1952, to 5 33-1/3$ Of :
: March 12, 1953
: Total Quota : to March 12, 1953
11,323,1457
239,690
227,1:20
69,627
68,240
388
38,559
3ld,535
78,053
239,495
13,032.
48,162
15,715
-
mm
-
17,322
8,135
6,544
76,329
21,263
->
25,0514
6,1430
5.U82,509
1425,9141
.^- Included in total imports, column 2.
Prepared by the Bureau of Customs
I,l4l4l,l52
75,807
t*
22,7147
114,796
12,853
•*
«*»
—
25,14143 ¿h
.7,088
1 ,599,886
77,14146
• **
13,032 —
,
,-e ♦•-,t
. 15,715., i4
••
4M» u
•
.'*** , <.*
—
25,05U
6,430
137,677
I
i/- U*’
,
I.
,b
"K
$Ls'IT * 'x,P%S,7>iw»^=r<"
^#'V*^
t
1/
/
•■x»
IMMEDIATE RELEASE
March 123 1953
I
L a<
%ie Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within tariff-rate quota limitations from the be
ginning of the quota periods to February 28, 19i>39 inclusive, as followst
ft
•
t
Commodity
•
Period and Quantity
•*
Whole milk, fresh or
sour • • • « • • • • • •
s
*
Unit
:
of
: Inports as of
Quantity s February 28, 19$
Calendar year
3 ,000,000
Gallon
►Calendar year
1 ,500,000
Gallon
No t . 1, 1952Mar. 31, 1953
£0 ,000,000
Pound
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish * * • Calendar year
33,866,287
Pound
(X)
Quota Filled
"White or Irish potatoes*
certified seed • • • • • •12 months from
other * • • • • • • • • • Sept. 15, 1952
150 ,000,000
798 ,900,000
Pound
Pound
88,973,288
55,963,688
£,000,000
Pound
l,937,ldi9
7,000,00(1
Pound
3,918,908
Cream
«
•
•
•
•
•
•
•
*
•
4
Butter • • • • • • • • * •
Walnuts • • • • • • • « *
•Calendar year
Almondst
shelled, blanched,
roasted, or otherwise
12 months from
prepared or preserved • • Oct* 1, 19£2
(1)
122
■
83
S,lt39
Imports for consumption at the quota rate are limited to 8,U66,£72 pounds
during the first three months of the calendar year*
133
TREASURY DEPARTMENT
Washington
MEDIATE RELEASE
Thursdays M arch 12 3 1 9 5 3
H -$6
The B u reau of Customs announced to d a y p r e li m i n a r y f i g u r e s showing t h e im p o rts
fo r consum ption o f co m m o d ities w ith in 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 b e
ginning o f th e q u o ta p e r io d s to F e b ru a ry 28, 1953, i n c l u s i v e , a s f o l l o w s :
Commodity
Whole milk, fresh or
sour
•
•
s
0
s
Period and Quantity
:
j
? Imports ag
Unit
•
of
of
Quantity : Feb.28,1953
Calendar year
3,000,000
Gallon
123
Cream.*•••«»••••*••••••» Calendar year
1,500,000
Gallon
83
Nov. 1, 1952Mar, 31, 1953
50,000,000
Butter.
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock )
cusk, and rosefish*.9. Calendar year
White or Irish potatoes:
certified seed.......* 12 months from
other....te..«.*•••»»• Sept. 15, 1952
Pound
5,U3?
(rf
33,866,28?
Pound
Quota Filled
150,000,000
798,900,000
Pound
Pound
88,973,288
55,983,688
Walnuts
Calendar year
5 ,000,000
Pound
1,937,U9
Almonds:
Shelled, blanched,
roasted, or otherwise
prepared or preserved
12 months from
Oct. 1, 1952
7,000,000
Pound
3,918,908
(l) Imports for consumption at the quota rate are limited to
during the first three months of the calendar year«
8,466,572
pounds
FOR RELEASE
Kenneth W. Gemmill of Philadelphia has been
appointed an Assistant to the Secretary of the Treasury
it was announced today by Secretary George M. Humphrey*
Mr. Gemmill, long active in the Federal tax field
In private practice as well as in Bar Association
circles, will be assigned to the Under Secretary of
the Treasury Marion B. Folsom as legal advisor on tax
matters*
It was also announced that Mr. Gemmill will head
a unit in the General Counsel’s office to be known as
the Legal Advisory Staff.
The new unit will supersede
the Office of the Tax Legislative Counsel and will
analyze and prepare reports on the legal aspects of
proposed tax legislation and regulations.
Mr. Gemmill
is now a member of the law firm of
Barnes, Dechert, Price, Myers and Rhoads of Philadelphi
He is a graduate of Princeton University and of the
University of Pennsylvania Law School.
He will resign
from his law firm and commence his duties in the
Treasury Department on April 1.
MEMORANDUM
March 9, 1953
To:
Mr
Lennartson
From:
Mr
Tuttle
Mr. Folsom has agreed with me that the release
on Mr. Gemmill should be changed to read as follows.
It is to be held until further notice.
Kenneth W. Gemmill of Philadelphia has been
appointed an Assistant to the Secretary of the Treasury,
it was announced today by Secretary George M. Humphrey.
Mr. Gemmill,
long active in the Federal tax field
in private practice as well as in Bar Association
circles, will be assigned to the Under Secretary of
the Treasury^ Marion B. Folsom;as legal advisor on tax
matters.
It was also announced that Mr. Gemmill will head
a unit in the General Counsel’s office to be known as
the Legal Advisory Staff.
The new uhit will supersede
the Office of the Tax Legislative Counsel and will
analyze and prepare reports on the legal aspects of
proposed tax legislation and regulations*
Mr. Gemmill
is now a member of the law firm of
Barnes, Dechert, Price, Myers and Rhoads of Philadelphia.
He is a graduate of Princeton University and of the
University of Pennsylvania Law School.
He will resign
from his law firm and commence his duties in the
Treasury Department on April 1*
TREASU RY
D EPA RTM EN T
Information Service
WASHINGTON, D .C .
IMMEDIATE RELEASE
Friday, March 13, 1953
H-57
Kenneth ¥. Gemmill of Philadelphia has been appointed
an Assistant to the Secretary of the Treasury, it was announced
today by Secretary George M. Humphrey.
Mr. Gemmill, long active in the Federal tax field in
private practice as well as in Bar Association circles,will
be assigned to the Under Secretary of the Treasury, Marion B.
Folsom, as legal advisor on tax matters.
It was also announced that Mr. Gemmill will head a unit
in the General Counsel1s office to be known as the Legal
Advisory Staff.
The new unit will supersede the Office of the
Tax Legislative Counsel and will analyze and prepare reports
on the legal aspects of proposed tax legislation and regulations.
Mr. Gemmill is now a member of the law firm of Barnes,
Dechert, Price, Myers and Rhoads of Philadelphia.
He is a
graduate of Princeton University and of the University of
Pennsylvania Law School.
He will resign from his law firm
and commence his duties in the Treasury Department on April 1.
o 0 o
— COW M1S S I G N W i —
* “ LET’S MEJETJ1M WITH
ySpflLE”
A MESSAGE FROM
COJWW5SIONER ANDREWS
Your edi9m s were very gererous to
me in thepwews and editored notices
that app^reed in the February issue of
THE BU LrflN , and I have jpceived from
many q f the officers andffemployees of
the Bipeau and membsp « N.A.I.R.E.
messages of congratulatjpns/ good wishes
andjrassurances of loy||Wy ,ànd co-operaIlh e s e kindly expressions have both
&uched me d eep l# and given me an
Encouragingly acute sçnse of the power
that is within u w o jset an example of
faithfulness, indaltry and efficiency that
will make th i# establishment of Jours
/
*Vhat i am sureJIvi^ryone in the BUteau
wants it to become, namely, theJ»ride
of the Government’s Executive Iranch.
In addition#! have had a very pleas
ant and encouraging chat vm h your
president, Mr. Edward W. McCabe; your
secretary-treasurer, Mr. Artmir i . Geniesse; and the editor of T B BULLETIN,
Mr. Osc«# W. Ristau.
Those messages and # e chat with
your officers covered a wide range of
subjejfc, each of which#! want to discuss frankly with you p i due time. I’d
likdjlo'start with one tlfat I am sure you
‘ffi agree is the most timely.
I t is grievously clear to me that the
whole Bureau is widely regarded with
distrust or suspicion because of the in
stances of unfaithfulness on the part of
Bureau personnel that have made so
many headlines recently.
.
p o g e -1.
~~Now^5 would not intentionally under
estimate the seriousness of this situa
tion, because I know that unfaithfulness
on the part of government officials and
agents is perhaps more certain than any
thing else to destroy a people’s confi
dence in their government, and that no
government, no matter how ideal or
strong, can long survive unbridled cor
ruption.
But, while it may be that an abnormal
portion of the Bureau’s personnel has
turned out bad, i am confident that the
vast majority are faithful public servants
and God-fearing men and women whose
good name cannot be purchased by any
one for any price. Moreover, those who
have let their fellow workers down are
being ferreted out, and I give you sol
emn assurance that we will carry on a
relentless search for those who betray
their fellow workers and the Bureau’s
good name, that every act of unfaithful
ness will be promptly and appropriately
dealt with, and that assuring safeguards
against recurrences will be established.
Therefore, to those whose consciences
are clear let me say: The stigma of
shame is not upon you; so “ keep your
chins up,” for we may not expect con
fidence except by showing it. And to
those whose consciences are not clear
I say: “.Be sure your sins will find you
out.”
Now a reminder and a suggestion.
Between now and March 15 many of
you will be coming face to face with
more taxpayers than at any time dur
ing the year. This affords us a fine
chance to start the Bureau on the road
back to high standing in the eyes of
the public. So let’s “ meet ’em with a
smile” — with the kind of attitude that
speaks eloquently of a sincere desire to
be helpful.
I suppose it is too much to expect that
as tax collectors we may hope to achieve
popularity, although all of us have seen
tax collectors who were popular. But we
can at least aim at gaining the taxpay
ers’ respect, and I am sure we will suc
ceed in this aim if we go about it prop
erly. Moreover, the prestige of respect
probably is more to be desired than the
glamor of popularity, if for no other
reason than that it lasts longer.
Perhaps what I have been trying to
say can be most simply expressed this
way: We are in business to help the tax
payer. So let’s put ourselves in the tax
payers’ position and treat them the way
w e’d want them to treat us if the situa
tion were reversed. Let’s all try it; it
can’t do any harm, and it may give the
Bureau a head start toward restoration
of that degree of public confidence and
respect to which everyone in the Bureau
with whom I thus far have come in con
tact seems to aspire as earnestly as I do.
T. Coleman Andrews,
Commissioner. ,
w
Dear Dr. Andrews
\V 2 read with grdat satisfaction your recent message
on ^Let’s Meet ’Em with a Smile^ to personnel in the
Bureau of Internal Revenue •
X would like to add ay 100
percent endorsement to what you said.
0
As you put it so well,in your message» we wist meet
taxpayers with the kind of attitude that shows a sincere
desire to be helpful.
Although a tax collector can never
be really popular» he can be respected.
V
we are in business to help the taxpayer.
If we put
ourselves in the position of treating those who come to
us as we would like to be treated ourselves, the chance is
that we will do about what is right.
\V 2 congratulate you, Mr. Andrews, not only for your
message but for your work in running the very vital Bureau
of Internal Revenue the few short weeksjyou have been in
charge.
I also congratulate the Bureau’s employees for
the sincere job of service
\\
2
feel they are doing.
x am «taking this note to you public in the thought
that taxpayers throughout the country may know of our
sincere efforts and hopes to regain confidence in a
bureau of our Government ©# which Americans rightly
expect *—• and will get —
the highest standards of
patriotic service.
Sincerely,
/
A^\
r n¥
ZT
T mlrir
The Treasury Department released the following letter
by Secretary George M. Humphrey, commenting on a message
from Commissioner T. Coleman Andrews to the employees of
the Bureau of Internal Revenue on ,,Let,s Meet *Em with a
Smile.”
(Insert text of Mr. Humphrey*s letter)
Bwtracta£x&S*Commissioner Andrew^ message to
^ ^
employees^ J k ^ r
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON, D .C.
release m i n i n g newspapers
Mondayi March 16» 1953
H-S8
The Treasury Department released the following letter by Secretary George M*
Humphrey,.commenting on a message from Commissioner T. Coleman Andrews to the
employees of the Bureau of Internal Revenue on «Let*s Ifeet *Era with a Smile««
«Dear Mr* Andrews;
WI read with great satisfaction your recent message bn
*Let*s Nfeet ’Em with a Smile* to personnel in the Bureau of
Internal Revenue« I would like to add ny 100 percent endorse**
ment to what you said«
«As you put it so well in your message, we must meet tax
payers with the kind of attitude that shows a sincere desire to
be helpful« Although a tax collector can never be really popular,
he can be respected*
«We are in business to help the taxpayer« If we put ourselves
in the position of treating those who come to us as we would like
to be treated ourselves, the chance is that we will do about what
is right«
«1 congratulate you, Mr* Andrews, not only for your message
but for your work in running the very vital Bureau of Internal
Revenue the few short weeks you have been in charge* I also
congratulate the Bureau*s employees for the sincere job of ser
vice I feel they are doing*
"I am making this note to you public in the thought that
taxpayers throughout the country may know of our sincere efforts
and hopes to regain confidence in a bureau of our Government
from which Americans rightly expect — and will get
the
highest standards of patriotic service«
Sincerely,
G* M* HUMPHREY«
coo
- 2 Commissioner Andrews1 message to Revenue Service employees said;
«It is grievously clear to me that the whole Bureau is widely regarded
with distrust or suspicion because of the instances of unfaithfulness on the
part of Bureau personnel that have made so many headlines recently#
«Now I would not intentionally underestimate the seriousness of this
situation, because I know that unfaithfulness on the part of government
officials and agents is perhaps more certain than anything else to destroy
a people's confidence in their government, and that no government, no matter
how ideal or strong, can long survive unbridled corruption«
«But, while it may be that an abnomal portion of the Bureau* s personnel
has turned out bad, I am confident that the vast majority are faithful public
servants and God-fearing men and women whose good name cannot be purchased
by anyone for any price« Moreover, those who have let their fellow workers
down are being ferreted out, and I give you solemn assurance that we will
carry on a relentless search for those who betray their fellow workers and
the Bureau* s good name , that every act of unfaithfulness will be promptly
and appropriately dealt with^ and that assuring safeguards against recur
rences will be established«
«Therefore, to those whose consciences are clear let me say; The
stigma of shame is not upon you; so 'keep your chins up,1 for we may not
expect confidence except by showing it. And to those whose consciences are
not clear I say: »Be sure your sins will find you out«1
«Now .a reminder and a suggestion* Between now and March 15> many of
you will be ccming face to face with more taxpayers than at ary time during
the year* This affords us a fine chance to start the Bureau on the road
back to high standing in the eyes of the public. So let's ’meet *em with a
anile* -- with the kind of attitude that speaks eloquently of a sincere
desire to be helpful,
«1 suppose it is too much to expect that as tax collectors we may hope
to achieve popularity, although all of us have seen tax collectors who were
popular. But we can at least aim at gaining the taxpayers* respect, and I
am sure we will succeed in this aim if we go about it properly. Moreover,
the prestige of respect probably is more to be desired than the glamor of
popularity, if for no other reason than that it lasts longer,
«Perhaps what I have been trying to say can be most simply expressed
this way; We are in business to help the taxpayer* So let's put ourselves
in the taxpayers* position aid treat them the way we*d want them to treat
us if the situation were reversed* Let's all try it; it can't do any harm,
and it may give the Bureau a head start toward restoration of that degree
of public confidence and respect to which everyone in the Bureau with whom
I thus far have come in contact seems to aspire as earnestly as I do,
T, Cpleman Andrews,Commissioner«
release mmmm
sMMMMft#
Tuesday, March 17* 1953»
The Secretary of the Treasury announced last evening that the tenders for
$1,200,000f000, or thereabouts, of 91-day Treasury bills to be dated March 19 and to
saature June 18, 1953, ifoieh mre offered on March 12, sere opened at the Federal Reserve
Banks on Harsh 16.
II fra
|he details of this issue are as follows t
Total applied for - #2,388,071#000
Total accepted
- 1,200,31*8,000
Average price
(includes #273,009,000 entered on a
non-competitive basis and accepted in
_
.
full at the average price shown below)
- 99•1*87/ Equivalent rate of discount approx« 2.0293 per annum
Range of accepted eonpetitive bids?
High
Low
- 99*500 Equivalent rate of discount approx. 1.9783 per annum
*
» *
'«
tt
2.0373 n
9
- 99*1*85
(1? percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
Mem fork
HilUdelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
i
•
TOTAL
27,61*9,000
1,583,126,000
31*,008,000
68,661*,000
25,361,000
1*1»,558,000
21*8,990,000
50,596,000
15,057,00®
55,751»,ooo
72,560,000
161,71*8,000
#2,388,071,000
Total
Accepted
17.505.000
660 , 778,000
17.408.000
1*6,699,000
21,011,000
32,501,000
166,971,000
21 ,1*1*6,000
13,352,000
1*0,73i,000
1*0,360,000
121, ?8i*,000
# 1 , 200, 51*8,000
TREASU RY
D E P A R T M F N IT
Information Service
WASHINGTON, D .C
RELEASE M O R N I N G N EWSPAPERS,
Tue sflay, M a r c h 17. 1 953 ♦,
H-59
The ^Secretary of t h£ T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 , 2 0 0 , OOCh 000, or thereabouts, of 9 1 - d a y T r e a s u r y b i l l s
to be dated M a r c h 19 a n d
to m a t u r e June 18, 1953, w h i c h wer e o f f e r e d
on March 12, w e r e o p e n e d
at the F e d e r a l R e s e r v e B a n k s on M a r c h 16 .
The d e t a i l s of this issue are as follows:
Total a p p l i e d f o r - $ 2 , 3 8 8 , 0 7 1 , 0 0 0
Total a c c e p t e d
1 , 2 0 0 , 5 4 8 , 0 0 0 (includes $ 2 7 5 * 0 0 9 , 0 0 0
e n t e r e d on a n o n - c o m p e t i t i v e
b a s i s a n d a c c e p t e d in full at
the a v e r a g e p r i c e 'shown
below)
Average p r i c e
- 9 9 * 4 8 7 X E q u i v a l e n t ,rate of d i s c o u n t approx.
2.029% per annum
Range of a c c e p t e d c o m p e t i t i v e bids:
High
- 9 9 , 5 0 0 E q u i v a l e n t rat e
1.978$
- 9 9 . 4 8 5 E q u i v a l e n t rate
2.037$
Low
(17
of d i s c o u n t approx.
per annum
of d i s c o u n t approx.
per annum
p e r c e n t of the a m o u n t b i d f o r at the l o w p r i c e w as a c c e p t e d )
Federal Re s e r v e
District
Total
A p p l i e d f or
Boston
New York
Philadelphia
Cleveland
$
Richmond
Atlanta
Chicago
Si. Loui s
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
27,649,000
1,583,126,000
34.008.000
68.664.000
25.361.000
44.558.000
248,990,000
50.596.000
•15,057,000
55.754.000
72.560.000
161,748/000
$2,388,071,000
T o tal
Accepted
$
1 7 .5 0 5 .0 0 0
6 6 0 .7 7 8 .0 0 0
1 7 .4 0 8 .0 0 0
46 . 699.000
21.011.000
3 2 .5 0 1 .0 0 0
1 6 6 .9 7 1 .0 0 0
2 1 .4 4 6 .0 0 0
1 3 .3 5 2 .0 0 0
4 0 .7 3 3 .0 0 0
4o, 3 6 0 ,0 0 0
1 2 1 .7 8 4 . 000
$1,200,548,000
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 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 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 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 th e
p o s s e s s io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s a re
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s
U.2
and 117 (a )
( 1 ) o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n 1 1 5 o f th e Revenue A ct o f 19U l* th e amount o f d isco u n t
a t w hich b i l l s
is s u e d h ereu n d er a r e s o ld s h a l l n o t be c o n s id e re d to
.a c c r u e u n t i l such b i l l s
s h a l l be s o l d , redeem ed o r o th e rw is e d isp o se d o f ,
and such b i l l s a r e ex clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
A ccord
in s u ra n c e com panies)
is s u e d h ereu n d er need in c lu d e in h is income t a x r e t u r n o n ly th e d if f e r e n c e
betw een th e p r i c e p a id f o r such 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 seq u en 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 red em p tio n a t m a tu r it y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 ent C i r c u l a r No. I4I
8 , a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T re a s u ry b i l l s and gov ern th e c o n d itio n s o f
th e ir is su e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
R e se rv e Bank o r B ra n ch .
1
-
d e a l e r s i n in v e stm e n t s e c u r i t i e s .
2
-
T enders from o t h e r s m ust be accompanied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 range
o f a c c e p te d b i d s .
Those su b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 th e T r e a s u r y e x p r e s s l y re se rv 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 a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 t o th 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 te 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 ic 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 ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th re e
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s m ust be made o r co m p leted a t th e F e d e r a l Re
s e r v e Bank on
March 26, 1953
, in ca s h o r o t h e r im m ed iately a v a ila b le
funds o r in a l i k e f a c e amount o f T re a s u ry b i l l s m a tu rin g
Cash and exch an g e te n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
March 26, 1953
Cash ad ju stm en 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 rin g b i l l s
a c c e p te d in exch an ge and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have any exem ption,
a s s u 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 o f T re a s u ry b i l l s
s h a l l n o t have any s p e c i a l t r e a t m e n t , a s s u c h , under th e I n t e r n a l Revenue
Code, o r law s am endatory o r su p p lem en tary t h e r e t o ,
The b i l l s s h a l l be
fimhifalB«rinate
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
T h u rsd ay ,« M arc^, 1 9 , 1 9 5 3 ____ ____*
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 lic n o t i c e , i n v i t e s te n d e rs
f o r $ 1 ,2 0 0 ,0 0 0 ,0 0 0
, o r th e r e a b o u t s , o f
91
-d a y T r e a s u r y b i l l s , f o r
ca s h and i n exchange f o r T re a s u ry b i l l s m atu rin g
th e amount o f $ 1 , 2 0 0 , 3 3 7 , 0 0 0
March 2 o , 1 9 3 3 ______, in
, t o be is s u e d on a d is c o u n t b a s i s under
c o m p e ti tiv 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
Ju n e 2 5 , 1 9 5 3 ______
---------------r-7»-y--------------te re s t.
March 2 6 , 1 9 5 3
.
..—..iSBSii
~ rr
The b i l l s
, and w i l l m ature
, when th e f a c e amount w i l l be p a y a b le w ith o u t in -
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
$ 1 , 0 0 0 , $ 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
(m a tu r i ty v a lu e ).
T en d ers 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 ran ch es 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 rd t i m e , Monday, March 2 3 , 1953
jiff
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in th e c a s e o f com peti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re s s e d on th e b a s i s o f 1 0 0 , with
n o t more th a n t h r e e 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 sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in the
s p e c i a l e n v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks 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 ers th a n banking 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 t o subm 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and reco g n iz e d
♦
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON,
u
RELEASE MORNING NEWSPAPERS,
Thursday, March 19, 1953«
H-60
The Secretary of the Treasury, by this public notice, invites
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury,
bills, for cash and in exchange for Treasury bills maturing
March 26, 1953.» in the.amount of $1,200,337*000, to be issued!on
a discount basis under competitive and non-competitive bidding; as
hereinafter provided, The bills of this series will be dated
March 26, 1953». dhd will mature June 25* 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,
r: : :;n \
$100,000,. $5QO, 000, and $1,000,000 (maturity value), '
¡;
1 ;..;Tenders will be received at Federal Reserve Banks and Branches
up to.the. closing hour, two o'clock p.m., Eastern Standard time, .; r .
Monday, March 23* 1953*
Tenders will not be received *at the
- •
Treasury Department,'Washington.
Each tender must be for an even
mùltiple of $1,000, and in the case of competitive tenders the ; ;
price offered must be expressed on the basis of 100, with not more :
than three decimals, e. g., 99.925.
Fractions may not be u s e d . ' ;;: ;
It is urged that tenders be made on the printed forms and forwarded
in thè ..special envelopes which will be supplied by Federal Reservè '
Banks or Branches, on application therefor. ' . , y
,'*/’f; S j J
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 arid trust companies arid
;;
from responsible and recognized dealers in investment securities. :
Tenders from .others must ..be accompanied by payment of. 2 percent of
the facè amount of Treasury bills applied for, uniess the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
*'y ^
y
r* 4 ^
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final.
Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
2
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on March 26, 1953, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing March 26, 1953.
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 (&) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which
the return is^made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular m ay be obtained
from any Federal Reserve Bank or Branch.
oOo
8eggee
Vitti thè eharaetsrlstie thoroughness ef thè
experienced accountant, ìtr* Andrew» i» digging
first-hand faeta
4mm
mb4
tatti ~
regarding hi® hug© organization.
these facts are in* ha*« th» W t
UimniH itn
tor
«f
Whea
tafee
courageous action to bring ahout any changes
indicateti.
Hr* Andrews he lieve® —
a® do e© at thè Treasury —
that thè collectioa et thè Hat io»«» revemses can he
slaplified, that thè burden oa boti* thè tax~payer and thè
governrent can he
m
»
4,
that m i
economie® can he mede
hy reducing adainistrative paper work and, at thè »»me
tire, bolstering thè Bureau«® entorcement activities.
P r o g r a m ha® i l m ^ r been made.
More 1» te he expected.
^ y ^ ii^iiiyéwe^wiirewe »test that CesKissioaer Andrews i»
a *tax*p»yerfs man."
that
1 ®.
«e it t ó o a W he*
H » l»»»
et the land, under vhich the^ gemmien tnsee
chart
i S m
to
administrative course, tat it i»
lame that the
A
:tiono ^ ì f i à i a d l d U he
with the
sincere desire ta consider the problems of those whom we
mil
serve —
the Ration*» tax-payers.
TREASURY DEPARTMENT
Washington
Remarks by Under Secretary Marion B. Polsom
at dinner of American Institute of Accounts
Hotel Statler, Washington, D. C., 8;00 p.m.
Thursday, March 19, 1953.
I
v
am glad to join with those here tonight who are paying
tribute to T. Coleman Andrews, the new Commissioner of Internal
Revenue.
Included In my responsibilities as Under Secretary of the
Treasury is supervision of this, v^ry vital Bureau.
In this
Sl,
connection,
I have come to have the highe>fc*^}gard for
Mr. Andrewi^ ^ & i l i t y and performance in the relati?s^|ly few weeks
he has been CommisM^ner.
My observations lead me to b r i e v e that
Mr. Andrews is firmly de^^a^ined to get the facts about his ^ureau
I that in this process of
I also have ob
gg|||i
-s.
getting the facts, h ^ % a ^ received a hTIgfc^degree of cooperation from
before he
Bureau personnel who are c o m i h ^ t o recognize l ^ a s
a man who is
going to work in diligent but friendt^^fashion to r ^ t o r e the
Bureau of Internal Revenue to the place of Tai^h c o n f i d e ^ e that It
rightfully deserves in the eyes of the American "fnflDlic.
I know that Secretary Humphrey, who regrets he cannot be with
us at this dinner tonight, also shares my enthusiasm for the work
that Mr. Andrews is doing in helping%y»1 r^g^fle Bureau of
Internal Revenue to the highest possible standards of efficiency
and integrity.
oOo
H-6l
o
&
l
TREASURY DEPARTMENT
Washington
Remarks by Under Secretary Marion B. Folsom
at dinner of American Institute of Accountants,
Hotel Statler, Washington, D. C., 8:00 p.m.
Thursday, March 19, 1953.
Release on delivery.
I
a m g lad to join w i t h those h e r e t o n i g h t w h o are p a y i n g
tribute to T. C o l e m a n Andrews, the n e w C o m m i s s i o n e r of I n t ernal
Revenue.
With the c h a r a c t e r i s t i c t h o r o u g h n e s s of the e x p e r i e n c e d
accountant, Mr. A n d r e w s is d i g g i n g f or f a c t s -- f i r s t - h a n d facts
regarding his h u g e o r g a n ization,
W h e n t h ese f a c t s are in, h e ’s
the sort of m a n w h o w ill take i m m e d i a t e an d c o u r a g e o u s a c t i o n to
bring about a n y ch a n g e s indicated,
Mr. An d r e w s b e l i e v e s -- as do we at the T r e a s u r y —
that the
collection of the N a t i o n ’s r e v e n u e s c an be simplified, that the
burden cn b o t h the t a x - p a y e r a nd the g o v e r n m e n t ca n be eased,
that real e c o n o m i e s c an be m a d e b y r e d u c i n g a d m i n i s t r a t i v e p a p e r
work and, at the same time, b o l s t e r i n g the B u r e a u ’s e n f o r c e m e n t
activities.
P r o g r e s s h a s a l r e a d y b e e n made.
M o r e is to be
expected.
tjYou m a y h ave r e a d that C o m m i s s i o n e r A n d r e w s is a ’’t a x - p a y e r ’s
man.11 That is as It shou l d be.
The laws of the land, u n d e r w h i c h
the Bureau Is o p e r a t e d chart its a d m i n i s t r a t i v e course, but it is
good to k n o w that the a c t i o n of the C o m m i s s i o n e r ’s h a n d will be
tempered w i t h the sincere d e s i r e to c o n s i d e r the p r o b l e m s of those
whom we all serve -- the N a t i o n ’s, tax-payers.
I k n o w that S e c r e t a r y Humphrey, w h o r e g r e t s he c a n n o t be w i t h
us at this d i n n e r tonight, als o shares m y e n t h u s i a s m f o r the w o r k
that Mr. A n d r e w s is d o i n g in h e l p i n g to r e t u r n the B u r e a u of
Internal R e v e n u e to the h i g h e s t p o s s i b l e s t a n d a r d s of e f f i c i e n c y
and integrity.
oOo
H-6l
m i M M HORNING ÎWSPAFEBS*
Tuesday. March 21*# 1953»
th« Secretary «C the Treasury am cunead last evening that the tendere for
11,200,000,000» or thereabouts, of 91-day Treasury b ills to be dated March 26 and to
mature OUm 25, 1953, which were offered on MMb 19, nore opened a t t o Federal Heserve Banks on March 23#
The d etálls of th is issue are as followet
Total applied for
Total accepted
Average price
12,230,051,000
1.201,152,000
(includes |2fal,1*02,000 entered on a
non-coapetitive basis and accepted in
full at the average price shown below)
99,1*85/ Equivalent rate of discount appro»« 2*036$ per annua
Bangs of accepted competitive bidet
Hioh
S T
- 99,522 Equivalent rate of discount appro». X#893$ per annua
- m* m
•
« « * »
»
2 .cm 8
8
(59 percent of t o mount bid for at the low price m s accepted)
Federal Reserve
Distriot
Total
Applied for
Total
Aceptad
I
I
38,639,000
1,1*78,61*3,000
39.578.000
7U,366,000
Boston
New Tork
Bailadelphia
.
Cleveland
Biehsond
19 008.000
27.392.000
252, 206,000
37,31*8,000
11,11*8,000
Atlanta
Chicago
St, Loáis
Minneapolis
Kansas City
Dallas
San francisco
15.359.000
55.973.000
16,61*8,000
23.582.000
169,91*3,000
2U,355,000
80.615.000
62 ,892,000
10,1*98,000
52.763.000
1(2,091,000
78.1*81*,000
| 2, 230, 081,000
fl,201,152,000
108, 21*6,000
TOTAL
30,196,000
681,260,000
RELEASE MORNING NEWSPAPERS,
Tuesday, March 24, 1953.
H-Ó2
The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated March 26 and to .mature June 25, 1953, which were offered
on March 19, were opened at the Federal Reserve Banks on March 23.
The details of this issue are as follows:
- $2,230,081,000
Total a p p l i e d for
Total a c c e p t e d
-
Average p r i c e
1 ,2 0 1 ,1 5 2 ,0 0 0
(includes $241,402,000
entered on a non-competitive
basis and accepted in full at
the average price shown below)
- 99.485/ Equivalent rate of discount approx.
2 .0 3 6 $ per annum
Range of accepted competitive bids:
High
- 99.522 Equivalent .rate
1.891$
- 99.484 Equivalent rate
2.04l$
Low
of discount approx.
per annum
of discount approx.
per annum
(39 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Boston
New York
Philadelphia
Cleveland
Üchmond
Atlanta
Chicago
Ci. Louis
ta ie a p o lis
Kansas C ity
Pallas
San Francisco
$
TOTAL
33,639,000
1,478,643,000
39.578.000
74.366.000
19.008.000
27.392.000
252.206.000
37.348.000
11.148.000
80.615.000
62,892,000
108.246.000
$2 , 2 3 0 , 0 8 1 ,0 0 0
0 O0
Total
Accepted
$
30,196,000
681,260,000
15.359.000
55.973.000
16.648.000
23.582.000
169,943,000
24.355.000
10.498.000
5 2 . 7 6 3 .0 0 0
42.091.000
78.484.000
$1 ,2 0 1 ,1 5 2 ,0 0 0
- 3 -
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 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 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 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 th e
p o s s e s s io n s o f th e U n ited S t a t e s , o r b y any l o c a l t a x i n g a u t h o r i t y .
For
p u rp o se 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 T re a s u ry b i l l s a re
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s
h2
and 117 ( a )
(l)
o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n 1 1 5 o f th e Revenue A ct o f 1 9 U l, th e amount o f d isco u n t
a t w h ich b i l l s
is s u e d h ereu n d er a r e s o ld s h a l l n o t be c o n s id e re d to
a c c r u e u n t i l such b i l l s s h a l l be s o l d , redeem ed o r o th e rw is e d isp o sed o f ,
and such b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u ra n c e com panies)
is s u e d h ereu n d er need in c lu d e in h is income t a x r e t u r n o n ly th e d iffe re n c e
b etw een th e p r i c e p a id f o r such 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 seq u en 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 le
o r red em p tio n a t m a tu r it y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu r n
i s m ade, a s o r d in a r y g a in o r l o s s .
Treasury Department Circular No. I|l8j 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.
Ut
w
-
d e a l e r s in investm ent, s e c u r i t i e s .
2
-
T enders from o t h e r s m ust be accompanied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 range
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 th e T r e a s u r y e x p r e s s l y re se rv e s
th e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s ,
h i s a c t i o n in any such r e s p e c t s h a l l be f i n a l .
in w hole o r in p a r t , and
S u b je c t t o th 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 te 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 ic e
from any one b id d e r w i l l be a c c e p te d i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th re e
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s must be made o r co m p leted a t th e F e d e r a l Res e r v e Bank on
A p ril 2 ^ 1 9 ^ 1
, in c a s h o r o t h e r im m ed iately a v a ila b le
fu n d s o r in a l i k e f a c e amount o f T re a s u ry b i l l s m a tu rin g
Cash and exch an g e te n d e r s w i l l r e c e i v e e q u al t r e a t m e n t .
w in
A p r i l 2 . 1953Cash ad ju stm en ts
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 rin g b i l l s
a c c e p te d in exch 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 riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem ption,
a s s u 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 o f T re a s u ry b i l l s
s h a l l n o t have any s p e c i a l t r e a t m e n t , a s s u c h , 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 en tary t h e r e t o ,
The b i l l s s h a l l be
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, March 26, 1953
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b lic n o t i c e , i n v i t e s te n d e rs
f o r $1,200,000,000
, o r th e re a b o u ts , o f
- isgr
91 -d a y T r e a s u r y b i l l s , f o r
'
c a s h and i n exch an ge f o r T re a s u ry b i l l s m atu rin g
th e amount o f $ 1 . 2 0 0 . 6 6 2 . 0 0 0
y
April 2, 1953_______ , in
t o be is 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
.Ju ly
2r
The b i l l s
April 2, 1953_________ > and w i l l m ature
sexk
1 9 5 3 _________ , when th e f a c e amount w i l l be p a y a b le w ith o u t i n -
509c
te re s t.
They w i l l be is s u e d i n b e a r e r form o n l y , and in d en o m in ation s o f
$ 1 , 0 0 0 , $ 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
(m a tu r i ty v a lu e ),
T en d ers 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 ran ch es 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 rd t i m e ,
Monday, March 30« 1993»
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in th e c a s e o f com peti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re 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 t h r e e 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 sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l en v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks 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 rs th a n banking 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 t o subm 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and re co g n iz e d
TREASURY
D EPARTM EN T
Information Service
WASHINGTON, D .C.
OK'
release m o r n i n g
newspapers,
Thursday, March 26, 1953.
H-6 3
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 April 2, 1953
in the amount of $ 1 ,2 0 0 ,6 6 2 ,0 0 0 , to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided
The bills of this series will be dated April 2, 1953, and will m a t u r e ’
July 2, 1953, when the face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of
>1,000 , $5 ,0 0 0 , $1 0 ,0 0 0 , $1 0 0 ,0 0 0 , $5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0
maturity value ).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p .m., Eastern Standard time.
Monday, March 30, 1953«
Tenders will not be received at the Treasury
Department, Washington,
Each tender must be for an even multiple of
$1 ,000 , and in the case of competitive tenders the price offered
must be expressed on the basis of 1 0 0 , with not more than three
decimals, e. g., 99.925.
Fractions may not be used.
It is urged
that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received with
out deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
irom 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
S
L ? ef erve Banks and Branches, following which public announcea « 11 be “ade fey the Secretary of the Treasury of the amount and
arf1- range of accepted bids.
Those submitting tenders will be
of the accePtance or rejection thereof.
The Secretary of the
?xpr® s?ly reserves the right to accept or reject any or all
ahaVT u 5 £? w? ole °r in part> and his action in any such respect
t-mrti be,TinS 1- Subject to these reservations, non-competitive
riders for $2 0 0 ,0 0 0 orless without stated price from any one bidder
i be accepted in full at the average price (in three decimals) of
2
accepted competitive bids.
Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Bank on April 2, 1953* in cash or other immediately available
funds or in a like face amount of Treasury bills maturing April 2,
1953.
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 pther excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United.,States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest.
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder.are sold shall not
be considered to accrue until such bills shall be. sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets.
Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary
gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
oOo
U.S. DEPARTMENT OF TREASURY
News Release Clearance Record
SUBJECT
T re a su ry r e l e a s e f o r N ew spapers & L ab o r P r e s s
WRITTEN BY
Ed N orthup
ORIGINATING OFFICE
_________________________________
L ab o r S e c t io n
219
&EARED BY:
_____ Nils A* Lennartson
Assistant to the Secretary
{Date )
_ Leon M* Siler
Robert A. Dillon
(Date)
TD-OAS-DC
2-
Labor committee
Harry E. O ’Reilly, director of organization, A* F, of L,; William C. Doherty,
President, National Association of Letter Carriers; and Frank Coleman, secretary,
Washington, D, C. Central Labor Union#
Appointed by Mr# Reuther to serve with him on the C, I# 0# National Labor
Advisory Committee are:
James B# Carey, secretary-treasurer, Congress of
Industrial Organizations; David J, McDonald, President, United Steel Workers of
0
America; Jacob S. Potofsky, President, Amalgamated Clothing Workers of America;
Emil Rieve, President, Textile Workers Union of America#
Serving with Mr, Leighty on the National Railway Labor Advisory Committee
are:
D, B, Robertson, President, Brotherhood of Locomotive Firemen and Enginemenj
Michael Fox, President, Railway Employes* Department, A, F, of L,; George M#
Harrison, President, Brotherhood of Railway and Steamship Clerks; A# J, Hayes,
President, International Association of Machinists,
Im m ediate r e l e a s e
J
S e c r e t a i y o f th e T re a s u ry George M. Humphrey to d a y announced th e
a p p o in tm en t o f G eorge H eany, P r e s i d e n t o f th e A. F . o f L., and W a lte r p.
R e u th e r, P r e s i d e n t o f th e C. I . 0 . ,
a s N a t io n a l ch airm en o f t h e i r
r e s p e c t i v e Labor A d v iso ry co m m itte e s on U. S . S a v in g s B on d s.
They succeed
th e l a t e P r e s i d e n t W illia m Green o f th e A . F* o f L . and th e l a t e P resid e n t
P h i l i p M urray o f th e C. I . 0 .
George E . L e ig h ty , Chaiiman o f th e Hail-way L ab o r E x e c u tiv e s * A ssociation
■ was r e a p p o in te d ch aiim an o f th e N a t io n a l R ailw ay la b o r A d v iso ry Committee for
S a v in g s Sonds.
The la b o r A d v iso ry co m m ittees a d v is e w ith th e S e c r e t a i y on th e Savings
Bonds program an d h e lp c o o r d in a te th e bond s a l e s programs,-.among la b o r
m em b erships.
S in c e th e U n ite d S t a t e s was drawn i n t o th e seco n d W orld War, American
l a b o r o r g a n i z a tio n s have been h eavy i n v e s t o r s o f t h e i r own funds in U, S ,
S a v in g s Bonds an d have c o n s i s t e n t l y su p p o rte d and prom oted th e p a y r o ll
s a v in g s p la n f o r th e s y s t e m a tic p u rch a s e o f t h e s e b o n d s.
A lm ost 8 m illio n
m e r s ^ ^ e ^ p a y rp11 savers* to d a y , and urriuii leaders1estimate
t l S t mere th an IW oU -rdU i'Lte
t K ^ ^ ^ ^ e r s ^ a r e u n io n members.
X
S e r v in g w ith Mr, Meany on th e A , F . o f L . N a t io n a l L ab o r A d v iso ry Committee
are:
Lewis H in e s, s p e c i a l r e p r e s e n t a t i v e , A m erican F e d e r a tio n o f Labor^
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON, D .C.
IMMEDIATE RELEASE,
T h u r s d a y , March 26, 1953.
H -64
Secretary of the Treasury George M. Humphrey today announced
th e appointment of George Meany, President of the A. F. of L , , and
W a l t e r P. Reuther, President of the C. I. 0., as National chairmen
of t h e i r respective Labor Advisory committees on U. S. Savings
B onds.
They succeed the late President William Green of the
A. F. of L. and the late President Philip Murray of the C. I. 0.
George E. Leighty, Chairman of the Railway Labor Executives1
Association, was reappointed chairman of the National Railway
L a b o r Advisory Committee for Savings Bonds.
The Labor Advisory committees advise with the Secretary on
the Savings Bonds program and help coordinate the bond sales
program among labor memberships.
Since the United States was drawn into the second World War,
American labor organizations have been heavy investors of their
own funds in U. S. Savings Bonds and have consistently supported
and promoted the payroll savings plan for the systematic purchase
of these bonds.
Almost 8 million wage and salary earners are
payroll savers today, and a large proportion of these savers are
union members.
Serving with Mr. Meany on the A. F. of L. National Labor
Advisory Committee are:
Lewis Hines, special representative,
American Federation of Labor; Harry E. O ’Reilly, director of
organization, A. F. of L.; William C. Doherty, President, National
Association of Letter Carriers; and Frank Coleman, secretary,
Washington, D. C. Central Labor Union.
Appointed by Mr. Reuther to serve with him on the C. I. 0.
National Labor Advisory Committee are:
James B. Carey, secretarytreasurer, Congress of Industrial Organizations; David J. McDonald,
President, United Steel Workers of America; Jacob S. Potofsky,
President, Amalgamated Clothing Workers of America; Emil Rieve,
President, Textile Workers Union of America.
Serving with Mr. Leighty on the National Railway Labor Advisory
Committee are: D. B. Robertson, President, Brotherhood of
Locomotive Firemen and Enginemen; Michael Fox, President, Railway
Employes' Department, A. F. of L . ; George M. Harrison, President,
Brotherhood of Railway and Steamship Clerks; A. J. Hayes, President,
International Association of Machinists.
oOo
The in d ic t-e d firms and individuals are subject, if convicted,
to a fine of $10,000 and 10 years in prison for each violation of
the Foreign Assets Control Regulations and $10,000 and 5 years in
prison for each violation of the prohibition against submission of
a false statement or document to the United States Government*
A Federal Grand Jury in New York City today indicted two New York
firms for violations of the Treasury’s Foreign Assets Control -Regulations
and for submitting false documents to the Treasury Department*
In one case the Grand Jury returned an 18-count indictment against
John Manners & Company, 99 Pearl Street, New York 8, New York, and its
vice president and general manager, David Adler, 7o9 best End Avenue,
New York City. In the other the Grand Jury returned a 20 count indict
ment against Chin Korn Gee, 97 Mott Street, New York City* The indict
ments were announced by U. S. Attorney Myles Lane and his Assistant,
David Carton. The v i o l a t i o n o upi't u n co v e re d by agents of the t e a s s a s t e
Foreign Assets Control.
Foreign Assets Control Regulations, which were issued on Decem
ber 17, 1990, under The Trading with the Enemy Act, shortly after the
Chinese Communists attacked United Nations« forces in North Korea, pro
hibit trade and financial transactions with Communist China and North
Korea.
The Manners« indictment charges John Manners & Company and its
vice president and manager, David Adler, with having knowingly submitted
false documents to the Treasury Department to induce the Treasury to
grant applications authorizing importation into this countrypf gpods from
Communist China. These documents included Hong Kong warehouse receipts,
bills of sale and other shipping documents, all purporting to prove that
the goods had left Communist China and were owned by the company«s Hong
Kong office before the blocking regulations were issued. The charge
alleges that these supporting documents had been forged and that Adler,
the company’s vice president, knew the documents were false at the time
they were filed with the Treasury. In addition, the indictment charges
the company with having unlawfully transferred more than $1*0,000 from a
mainland Chinese account to one in the name of John Manners & Company,
Ltd., Hong Kong.
The other indictment involves Chin Kom Gee, the owner and manager
of the Quong Wo Chong Company at 97 Mott Street, New York City. The
indictment charges that Chin Kom Gee submitted a sworn statement to
representatives of the Treasury Department alleging that during the
year 1991 he had remitted only $11,000 to Hong Kong. In fact, it is
charged, Chin remitted to Hong Kong amounts greatly in excess of $11, 000.
The Government
that these amounts totalled approximately
$379,000. The indictment also charges that Chin illegally evaded the
Treasury« s blocking of his bank accounts by opening a new account ^unaer
a different nsm^, and, that when this account was later discovered and
blocked by the/Treasury, Chin continued to evade the Treasury’s blocking
order by purchasing money orders under a third name.
I
ll/iL
TREASU RY
D EPARTM EN T
Information Service
Wa s h in g t o n , d .c .
rmL
oA
i
mT
IMMEDIATE RELEASE,
Friday, March 27, 1953.
H-6 5
A Federal Grand Jury in New York City today indicted two
New York firms for violations of the Treasury's Foreign Assets
Control Regulations and for submitting false documents to the
Treasury Department.
In one case the Grand Jury returned an 1 8 -count indictment
against John Manners & Company, 59 Pearl Street, New York 8,
New York, and its vice president and general manager, David Adler,
785 West End Avenue, New York City.
In the other the Grand Jury
returned a 20-count indictment against Chin Korn Gee, 57 Mott
Street, New York City.
The indictments were announced by
U. S. Attorney Myles Lane and his Assistant, David Carton.
The
indictments followed months of investigation of the cases by
agents of the Foreign Assets Control.
The Foreign Assets Control Regulations, which were issued on
December 17, 1950, under The Trading with the Enemy Act, shortly
after the Chinese Communists attacked United Nations' forces in
North Korea, prohibit trade and financial transactions with
Communist China and North Korea.
The Manners’ indictment charges John Manners & Company and
its vice president and manager, David Adler, with having knowingly
submitted false documents to the Treasury Department to induce the
Treasury to grant applications authorizing importation into this
country of goods from Communist China.
These documents included
Hong Kong warehouse receipts, bills of sale and other shipping
documents, all purporting to prove that the goods had left
Communist China and were owned by the company's Hong Kong office
before the clocking regulations were issued.
The charge alleges
that these supporting documents had been forged and that Adler,
the company's vice president, knew the documents were false at
the time they were filed with the Treasury.
In addition, the
indictment charges the company with having unlawfully transferred
more than $40,000 from a mainland Chinese account to one in the
name of John Manners & Company, Ltd., Hong Kong.
The other indictment involves Chin Korn Gee, the owner and
manager of the Quong Wo Chong Company at 57 Mott Street,
New York City.
The indictment charges that Chin Korn Gee submitted
a sworn statement to representatives of the Treasury Department
alleging that during the year 1951 he had remitted only $11,000
225
-
2
-
to Hong Kong.
In fact, it is charged, Chin remitted to Hong Kong
amounts greatly in excess of $11,000.
The Government contends
that these amounts totalled approximately $375*000,
The indictment
also charges that Chin illegally evaded the Treasury's blocking
of his bank accounts by opening a new account under a different
name,and that when this account was later discovered and blocked
by the Treasury, Chin continued to evade the Treasury's blocking
order by purchasing money orders under a third n a m e ,
The indicted firms and individuals are subject, if convicted,
to a fine of $10,000 and 10 years in prison for each violation of
the Foreign Assets Control Regulations and $10,000 and 5 years in
prison for each violation of the prohibition against submission of
a false statement or document to the United States Government.
oOo
I
3 ® $ A S E MORNIHQ NEBSPAFEHS,
Tuesday, Mtreh 31, 1953The Secretary of the Treasury announced last evening that the tenders for
$1,200,000,000, or thereabout», of 91-day freaaury bill» to be dated April 2 and to
mature July 2, 1953, which were offered on March 26, were opened at the Federal
Reserve Bank» on March |0.
The details of this issue are as followst
Total applied for - $1,91*2,856,000
Total accepted
« 1,200,247,000 (includes $201,22*7,000 entered on a
non-competitive basis and accepted in
full et the average price shown below)
Average price
- 99.2*87/ Equivalent rate of discount approx. 2*0295 per annus
Range of accepted competitive bids*
High
Low
- 99,2*92* Equivalent rate of discount approx. 2.0025 per «anus
- 99.1*85
*
•
1
*
"
2.0|75 11
*
(63 percent of the amount bid for at the low price was accepted)
Federal Reserve
District______
Total
Applied for
Total
Accepted_____
Boston
New fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Balias
San Francisco
$ 16 ,224,000
1,367,073,000
24,02*6,000
38 ,852,000
12 ,870,000
22*,950,000
213,988,000
2*8,537,000
10 ,212,000
36,618,000
62*,737,000
62*«729»000
$ 15,672*,000
811,262,000
18,028,000
29,02*2,000
$1,92*2,856,000
11,200,U»7,ooo
Total
1 1 ,12*8,000
23.576.000
116 ,632,000
2*5,32*9,000
8,952*,000
33.75X.ooo
27.583.000
59.ltlt8.ooo
TREASURY
D EPA R TM FN T
Information Service
WASHINGTON, D .C .
7
RELEASE MORNING NEWSPAPERS,
Tuesday, March 31, 1953.
H-66
The Secretary of the Treasury announced last evening that the
tenders for $1,200,000,000, or thereabouts, of 91-day Treasury bills
to be dated April 2 and to mature July 2, 1953, which were offered on
March 26, were opened at the Federal Reserve Banks on March 30.
The details of this issue are as follows:
Total applied for - $1,942,856,000
Total accepted
■* 1,200,447,000(includes $201,247,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 9 9 . 4 8 7 / Equivalent rate of discount approx.
2.029$ per annum
Range of accepted competitive bids*
,;
ii
,' \
High
- 99.49^ Equivalent rate of
2„002$ per
Low
- 99»485 Equivalent rate of
2 .0 3 7 $ per
discount approx.
annum
discount approx,
annum
(63 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
Total
Applied for
$
New York
Philadelphia
16,244,000
1,367,073*000
44.046.000
.
,
Cleveland
Richmond
Atlanta
Chicago
3 8 8 5 2 .0 0 0
1 2 8 7 0 ,0 0 0
St. Louis
Minneapolis
Kansas City
Dallas
Sail Francisco
TOTAL
Total
Accepted
674.000
2 6 2 .0 0 0
0 2 8 ,0 0 0
042.000
148.000
24.950.000
213,988,000
48.537.000
10.212.000
3 6 ,6 1 8 ,0 0 0
64.737.000
64.729.000
•3, 576.000
$1,942,856,000
$1,200,447,000
0 O0
6 3 2 ,0 0 0
349.000
954.000
751.000
583.000
448.000
i l l r
* 1953
^
L,
STATEMENT BEFQRE SEN^TE^EtfCNK 1NG A N D CURRENCY COM ITTEE
There has been some discussion of re«Instituting
consumer credit controls by the Federal Reserve Board»
•hile there has been a substantial expansion of con«
turner credit, It may be that this will soon be checked
by normal business practice«
It will not require many
||
collection losses or many repossessions or foreclosures
.
to cause dealer and credit consumer companies to tighten
up on this source of credit«
We believe« however« that there may be conditions
that will be helped by some flexibility of action by
the President in this consumer credit field« and Congress
may feel that some indirect controls by way of checking
consumer credit should be available to the President«
If Congress should feel that such controls should be
made available« I would recornmend that they be provided
for by legislation which authorises the President to
direct the Federal Reserve Board to re-establish them
in his Judgment« such action is necessary*
Such
authority« when exercised by the President, should give
the Federal Reserve Board some degree of flexibility in
the application of controls«
ST A T E M E N TS! ELBERT P . TUTTLE, GENERAL COUNSEL
OF THE TREASURY DEPART!
„ .fiisjruitus SENATE
A
BANKING AND CURRENCY COMMITTEE
March 30, 1953
230
STATEMENT BY ELBERT P. TUTTLE, GENERAL COUNSEL
OP THE TREASURY DEPARTMENT, ON BEHALF OP
SECRETARY HUMPHREY, BEFORE SENATE
BANKING' AND CURRENCY COMMITTEE
March 30, 1953
There has been some discussion of re-instituting consumer credit
controls by the Federal Reserve Board.
While there has been a sub
stantial expansion of consumer credit, it may be that this will soon
be checked by normal business practice.
It will not require many
collection losses or many repossessions or foreclosures to cause
dealer and credit consumer companies to tighten up on this source
of credit.
We believe, however, that there may be conditions that will be
helped by some flexibility of action by the President in this
consumer credit field, and Congress may feel that some indirect
controls by way of checking consumer credit should be available to
the President.
If Congress snould feel that such controls should'
be made available,
I would recommend that they be provided for
by legislation which authorizes the President to direct the
Federal Reserve Board to re-establish them when, in his judgment,
such action is necessary.
Such authority, when exercised by the
President, should give the Federal Reserve Board some degree of
flexibility in the application of controls.
oOo
H-67
savers to the 190,000 now participating.
This would mean an increase of
$25 million per year in the purchase of Savings Bonds.
The Aircraft Industries Association, through its President, Admiral
D. C. Ramsey, has pledged cooperation in the drive.
Organizational meetings
scheduled for April include one in New York for the east coast manufacturers
and at Los Angeles for west coast members.
During a previous industry-wide drive in 19 51$ more than 125,000
employees were enrolled for the Payroll Savings Plan with an increase of
$5 million per year in the purchase of Savings Bonds.
J
Secretary of the Treasury George M. Humphrey today announced the acceptance
by Robert E. Gross, Chairman and President of the Lockheed Aircraft Corporation*
as chairman of a committee to^prowetc a U. S. Savings Bonds Payroll Savings
campaign among employees of the^AarcraftJkgtnufacturing /Industry^ ono of-tfee
oeuntiyts fjnl lines ef- defense * Chairman Gross has already set an enviable
Payroll Savings enrollment record in his own plants with more than 50 per cent
participation*
In acknowledging the acceptance, Secretary Humphrey wrote to Mr. Gross
in parts
"Savings Bonds are an important consideration in our public debt manage
ment policy and the expansion of the Payroll Savings Plan among Aircraft
workers is vital to widespread ownership of the national debt among all
Americans.
"The sale of Savings Bonds promotes thrift, gives the holder a buffer
against misfortune and makes him a partner of our government•"
Irr-hip reply to the Sennetaay chairman Gseos oaide
J
"In view of the great merit of the bond program, I am glad to undertake
the chairmanship of the campaign for the aircraft industry*
"I believe that we employees of the aircraft industry appreciate our
special responsibility to take the leadership in the bond program when a
large share of government expenditures is going for the purchase and main
tenance of the airplanes we build."
In the 40 companies of the^jdTrcraft^M^iifacturing^Ihdustry which has
600,000 employees, the drive objective is to add another 100,000 payroll
TREASURY
D EPARTM EN T
Information Service
WASHINGTON, D .C .
RELEASE MORN I N G NEWSPAPERS,
Monday, April 6, 1 9 5 3 ._____
H-68
Secretary of the Treasury George M. Humphrey today announced
the acceptance by Robert E. Gross, Chairman and President of the
Lockheed Aircraft Corporation, of appointment as chairman of
a committee to conduct a U. S. Savings Bonds Payroll Savings
campaign among employees of the aircraft manufacturing industry.
Chairman Gross has already set an enviable Payroll Savings
enrollment record in his own plants with more than 50 p er cent
participation.
In acknowledging the acceptance,
to Mr. Gross in part:
Secretary Humphrey wrote
"Savings Bonds are an important consideration in our public
debt management policy and the expansion of the Payroll Savings
Plan among aircraft workers is vital to widespread ownership of
the national debt among all Americans.
"The sale of Savings Bonds promotes thrift, gives the holder
a buffer against misfortune and makes h i m a partner of our
government.I
Mr. Gross wrote to the Secretary:
"In vie w of the great merit of the bond program, I am glad
to undertake the chairmanship of the campaign for the aircraft
industry.
"I believe that we employees of the aircraft industry
appreciate our special responsibility to take the leadership in
the bond program when a large share of government expenditures
is going for the purchase and maintenance of the airplanes we
build."
In the 40 companies of the aircraft m a n ufacturing industry,
which has 600,000 employees, the drive objective is to add
another 100,000 payroll savers to the 190,000 now participating.
This would mea n an increase of $25 m i l l i o n p er year in the purchase
of Savings Bonds.
oo
-
2
-
The Aircraft Industries Association, through its President,
Admiral D. C. Ramsey, has pledged cooperation in the drive.
Organizational meetings scheduled for April include one in
New York for the east coast manufacturers and at Los Angeles
for west coast members.
During a previous industry-wide drive in 1951 > more than
125,000 employees were enrolled for the Payroll Savings Plan
with an increase of $5 million per year in the purchase of
Savings Bonds.
0 O0
>
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Tuesday, March 31
1m *
effective April 1, after 43 years in the Customs Bureau,
the Treasury announced today.
Mr. Dow is 65 years old and has been Commissioner
since 1949, and prior to that had served as Assistant
Commissioner for 22 years.
Commenting: on Mr. Dow*s retirement,
1*» Secretary
of the Trea
"Mr. Dow is entitled to the grateful
thanks of the citizens of this country for the
excellent record he has made during his many
years of faithful and patriotic service.”
Mr. David Strubinger, Assistant Commissioner, becomes
Acting Commissioner.
(Copy of Mr. Dow*s biography is attached.)
TREASURY
D EPA RTM EN T
Information Service
WASHINGTON. D .C .
r
IMMEDIATE RELEASE,
Tuesday, March 31 j 1953*
Frank Dow,
H-69
Commissioner of Customs,
is retiring
effective April 1, after 43 years in the Customs Bureau,
the Treasury announced today.
Mr, Dow is 65 years old and has been Commissioner
since 1949,
and prior to that had served as Assistant
Commissioner for 22 years.
Commenting on Mr. D o w ’s retirement, Secretary of
the Treasury Humphrey said:
"Mr. D ow is entitled to the grateful
thanks of the citizens of this country for the
excellent record he has made during his m a n y
years of faithful and patriotic s e r v i c e .M
Mr. David Strubinger,
Assistant Commissioner,
becomes
Acting Commissioner.
(Copy of Mr. D o w ’s biography is attached.)
rjny
«¿.v i
PRANK DOW
Commissioner of Customs
Mr. Dow was born in Sangerville, Maine, on
February 8 , 1888, and was educated at Sangerville High
School and the University of Maine.
In September,
1908, he went directly from school into the Government
service as a teacher in Puerto Rico under Civil Service
status, holding this position until December, 1909.
Prom December, 1909* until July, 1910, he was
Internal Revenue Agent at San Juan, Puerto Rico, in
the Insular Treasury Department, and from July, 1910,
to July, 1913* was attached to the United States
Customs Service at San Juan.
Prom 1913 to 1920 Mr. Dow served as appraising
officer in the Customs Service at Philadelphia, and
from 1920 to 1923 in the Customs Information Exchange
at the Port of New York.
In 1923 he was transferred
to the Bureau of Customs in Washington, and from
1924 to 1927 served as Customs assistant to the
Assistant Secretary of the Treasury.
Mr. Dow was appointed Assistant Commissioner of
Customs in 1927* and served as Acting Commissioner
of Customs from May 1, 1947 to June 29* 1949* when he
,was named Commissioner of Customs.
Mr. Dow lives at 8 3 OO - 16th Street, Silver Spring,
Maryland.
0 O0
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 115 of the Revenue Act of 19ifL> 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. Ijl8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.
Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.
-
dealers in investment securities.
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
April 9. 19f>3
, in cash or other immediately available
m T
funds or in a like face amount of Treasury bills maturing April 9. 195*3
jsS x
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
?
m m r a
mam.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 2, 1953
m
The Secretary of the Treasury, by this public notice, invites tenders
for $1.U00,000,000
—
w
, or thereabouts, of
91 -day Treasury bills, for
—
cash and in exchange for Treasury bills maturing
the amount of
3 9 9 OOP
April 9» 1953
> to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
July 9, 1953
-----a s ----- -—
terest.
, in
April 9 « 1953
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 , 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, A p r i l 6 , 1953
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 competi
tive tenders the price offered must be expressed on the basis of 1 0 0 , with
not more than three decimals, e. g., 9 9 .9 2 5 *
Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account.
Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
TREASURY
D EPARTM EN T
Information Service
. WASHINGTON. D .C
Í
RELEASE m o r n i n g 'n e w s p a p e r s ,
Thursday, April 2, 1953.
H-70
1
for cash and in exchange for Treasury b.llie maturing April 9, 1953,
in the amount of $ 1 ,3 9 9 ,^ 3 1 ,0 0 0 , to be is sped bn a discount basis
under competitive arid non-*Competitive bidding, ¿s hereinafter
provided. The bills of this series will be dated April 9 , 1953, and
will mature July 9, 1953V when the face amount will be payable
' :
without interest . They will, be Issued in beaner form only, and in 1•
denominations of $1,000/ $5,000, $10,000, $1Q0,000, $500,000, and ' $1,000,000 (maturity v a l u e ). '
;:r
Tenders will be received at Pede pal Reserve Ba-ruts ano .tsrancno s
up to the closing hour two o'clbck p.inf/ Eastern Standard time,
Monday, April 6 , 1953,.. Tenders will not be received at the Treasury
Department, Washington. /Each tender must be for an even multiple of
$1,000, and in the case of competitive tenders the price offered ~
must be expressed ,op the basis of 100 , with not moré than three
decimals, e. g . , 99.925.. ,Fractions may not be u s e d . ' it. is :urged
;
that tenders be made on the printed forais and forwarded in the
;.
[special envelopes which will be supplied b y Federal. Réserve banks or.
IBranches o n .application theref or ..
‘ .;/ / *
‘■‘ ' 1* ' ''; ';
-• ';•:’;
Others than banking'institutions Will hot be permitted to submit
tenders: except for their.own account .,, .Tendere.will be received
without deposit from incorporated; banks; and t r u s t ,companies and, from.
responsible and. recognized, dealers ,ih; investment; securities.. Tenders
from others must be accompanied b y . p a r e n t rrof ..2 percent of. the face
amount of Treasury bills applied for, unless thé tenders aré
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at th<
Federal Reserve Banks and Branches, following which public announce
ment will be made by the Secretary of the Treasury of the amount and
price range of accepted bids.
Those submitting tenders will.be
advised of the acceptance or rejection thereof.
The Secretary of the
ireasury expressly reserves the right to accept or reject any or all
n ers, in whole or in part, and his action in any such respect
i-»!1 be final* Subject to these reservations, non-competitive
bi!?¡q 3 for
or less without stated price from any one
2
decimals) of accepted competitive bids.
Settlement for accepted
tenders in accordance with the bids must be made or completed at the
Federal Reserve Ba n k on April 9, 1953> In cash or other immediately
available funds or in a like face amount of Treasury bills maturing
April 9, 1953.
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 n ew bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under the Internal Revenue Code, or laws amendatory or supplementary
thereto.
The bills shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest.
Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch,
oOo
-
2
-
12-subject notes are put into circulation.
In the meantime, notes from
both the 12-subject sheets and the l8-subject sheets will be circulated.
The adoption of the new procedure for printing currency in 18-subject
sheets makes it possible to increase the output of currency notes and to
decrease the cost of printing.
X"Y
X
1DIATE RELEASE
^
^
/?rj
7/ -
1
individual notes.
The addition of the six new check letters became necessary when the
Bureau of Engraving and Printing began printing $1 bills with id notes
to the sheet instead of 12 notes as heretofore.
Each "check letter"
indicates the particular position of the note on the sheet when it is
printed.
The presses used in the Bureau of Engraving and Printing for printing
currency are being converted as rapidly as possible to accommodate the
larger size sheet.
It is contemplated that before the end of this year all
of the currency will be produced in 18-subject sheets.
This will include
not only silver certificates but also United States notes and Federal Re
serve notes.
There are substantial amounts of currency on hand printed in
12-subject sheets and considerable time will elapse before all of the
TREASURY DEPARTMENT
Information Se rv ice
WASHINGTON, D .C
244
IMMEDIATE) RELEASE,
Thursday,
April
2, 1 9 5 3 «
H-71
The Treasury announced today that it is placing in
circulation $1 silver certificates, Series 1935* which differ in
a slight detail from silver certificates now in circulation.
The change made in the new notes is in the "check letters".
These are small letters in the upper left-hand arid lower righthand areas on the face of the notes.
The check letters heretofore
used ranged from "A" through "L".
The new notes have additional
check letters which include "M" through "R".
No change has been
made in the design or size of the individual notes.
The addition of the six new check letters became necessary
when the Bureau of Engraving and Printing began printing $1 bills
with 18 notes to the sheet instead of 12 notes as heretofore.
Each "check letter" indicates the particular position of the note
on the sheet when it is printed.
The presses used in the Bureau of Engraving and Printing for
printing currency are being converted as rapidly as possible to
accommodate the larger size sheet.
It is contemplated that
before the end of this year all of the currency will be produced
in 18-subject sheets.
This will include not only silver
certificates but also United States notes and Federal Reserve
notes. There are substantial amounts of currency on hand printed
in 12-subject sheets and considerable time will elapse before
all of the 12-subject notes are put into circulation.
In the
meantime, notes from both the 12-subject sheets and the 18-subject
sheets will be circulated.
The adoption of the new procedure for printing currency in
18-subject sheets makes it possible to increase the output of
currency notes and to decrease the cost of printing.
oOo
two bureau*»
latee r m i Revenue figure shew that it cost* but forty-two went«
for «aeh #100 collected
in federai taxe*» badar It* sew administration
effort i* being »säe to operate the Bureau of Internal Hereaue under the moste
efficient standard* but the Treasury feel* that any further reduction la the
amount repeated eould result la lest of ineerne to the government because of
reduoed examining staff*»
It should also bo noted that the request for the
Bureau of Sa rooties has not been reduced due to the Treasury* s concern for the
maxtaum vigilase in the troublesome H o l d of illegal use of ns rootlee*”
The letter from Secretary %aphrey to ^haismm Tiber* with the table
of reduetion*» Is attached«
FOR
mmikTE RELEASE
f.o
THURSDAY - APRIL
2m 1953
Secretary of the Treasury Georg© M. Humphrey today submitted to the
House Appropriations Committee a revised I S M budget estimate, reducing
proposed Treasury operating expenditures by #50,885,000 under the
#665,328,000 requested by the former administration«
"I am pleased to be able to report that reductions on the original
estimates have been approved In the amount of #50,883,000, ahleh is a
reduction of approxii» tely 12*2$, excluding the Revenue producing program^
(the Bureau of Internal Revenue and the Bureau of Custom*),** Secretary
Humphrey wrote Chairman «John Taber of the House Appropriations Committee«
Secretary Humphrey also wrote that the revised Treasury Department
estimate is a reduction of #40,568,000 below corresponding 1953 appropria
tions • (Secretary Humphrey *s letter pointed out that the figures referred
to only Treasuryfs operating budget and are exclusive of such fixed Item«
as Interest on Public Debt, transfers to Government Trust Funds and refunds
of taxes and Custom duties, which total more than fifteen billion dollars«)
In a separate statement a Treasury spokesman said*
*It should be noted that the revised Treasury estimates reflect a
general reduction of about 7«6$ from the earlier budget estimate, inasmuch
as less than average outs are requested for the two revenue collecting
agencies, the Bureau of Internal Revenue and the Bureau of Customs«
The Treasury*s position is that any substantial decrease in the funds for these
two bureaus would have a negative effect in that the collection of revenues due t
government might actually be decreased by virtue of impaired operation in these
TREASURY DEPARTMENT
\ y>J
Rodnctiona In Am»roprtatlon8 for 1951*
Appropriation Title
Salaries and expenses*
Office of the Secretary
Amount in
1951* Dudi»t
$
7,670,000
Revised
Amount
|
7,1*00*000
Reduction
i
770,000
Salaries and expenses*
Bureau of Accounts •••••••••
5,000,000
1,900,000
100*000
Salaries and expenses,
Division of Disbursement •••
1?,065,000
11*000,000
1,065,000
Administering the public debt*
Bureau of the Public Debt ••
55,000,000
51,cwo,ooo
6*000,000
Salaries and expenses, Office
of the Treasurer ..... .
?o,U5o,ooo
18*150,000
2*000,000
Contingent expenses, public
moneys* Office of the
Treasurer ••••«•••*••••••*«#
550,ooo
350,000
500,000
Salaries and expenses, Bureau
*of Customs •••«*«*••*•#•*•••
6?,000,000
1*0*500*000
1*500,000
Salaries and expenses* Bureau
of Internal Revenue ••••••••
sts ,5oo,ooo
566,000*000
6,500,000
Salaries and expenses, If. S.
Secret Service •••••••••««••
S,775,000
5*500,000
225,000
Salaries and exposes, White
House Police....... .
698*000
630*000
60,000
Salaries arid expenses* Guard
Pore© .......... .........
1*30,000
375,000
S5,ooo
Salaries and expenses* Bureau
of the Mint ....... .
5,300,000
6,700,000
600,000
500*000*000
188,750,000
U , 750,000
55,000,000
7,500,000
22,500,000
5*600,000
7,500,000
100,000
Operating expenses, U. S.
Coast Guard
Acquisition* construction*
and improvements, II# S*
Coast Guard *..*.•*«•«*•***»
Reserve training* IJ. $»
Const Guard
It is requested that the revised estimates be substituted for the
estimates now before the Congress and that they be used as the basis
for determining tee amounts to be approved by your Committee for the
fiscal year 19>k*
Very truly yours*
o
bi
Attachment
Honorable John Taber*
Chairman* Committee on Appropriations*
House of Representatives*
c* St capitel#
Vr dear Mr* Chairmanj
The estimate® of appropriation requirements for the Treasury Depart
ment for the fiscal year 19$k which are before your Committee and on which
hearings are now being concluded were, as you know, prepared and submitted
by the former Administration* You are also probably aware that the Director
of the Bureau of the Budget, on February 3 i l 953, addressed a letter to
all Departments and agencies directing a rinriew of the 1951* budget with a
view to reducing budgetary obligations! authority, reducing the level of
expenditures, critically examining existing programs, restraining commit
ments on new programs, and generally driving for greater efficiency and
reduced costs* For these purposes, new budget policies and criteria were
laid down* The Treasury Department, like other departments, has completed
a careful reexamination of its 1951* budget estimates in line with these
new policies*
In connection with the above review, it should be noted that approxi
mately 96% of the total appropriation requirements of the Treasury are
fixed by statute and are outside the administrative control of the Secretary.
These fixed requirements include such substantial items as interest on the
public debt, $6,3i>0,0Q0,000j transfers to Government trust funds,
$6,38?,300,000$ and refunds of taxes and customs duties amounting to
12,613,OCX),000.
The appropriations over which I am able to exercise some degree of
administrative discretion totaled §655,013,OCX) for the fiscal year 1953*
Against these appropriations, estimates for the fiscal year 1951* were
submitted by the outgoing Administration in the amount of §665,3?8,0OO,
or a requested increase of 110,315,OCX) over the current year’s appropriation.
Based upon the reexamination referred to above, I am pleased to be able to
report that reductions on the original estimates have been approved in the
amount of $50,683,000, which is a reduction of approximately 1?*?5, ex
cluding the Revenue producing programs* In contrast to an increase over
the 1953 appropriations, these revised estimates will mean an actual reduc
tion below the corresponding 1953 appropriations of $1*0,568,000.
The reductions in the estimates proposed herein are set out by in
dividual appropriation item in the schedule attached* To some extent,
these reductions are predicated on our ability to develop during the next
15 months methods of accomplishing savings which are not now clearly in
sight* It may be that further methods of saving can be found, and this
objective will of course be vigorously pursued* However, in the light of
what I now know, I think that any further reduction at this time could do
serious damage to the operating efficiency of the Department and to its
ability to properly discharge the various responsibilities that are imposed
on it by law*
-2-
ItWgnmiL
Internal Revenue figures show that it costs but forty-two cents
for each $100 collected in federal taxes«
Under its new administration every
effort is being made to operate the Bureau of Internal Revenue under the most
efficient standards but the Treasury feels that any further reduction in the
amount requested could result in loss of income to the government because of
reduced examining staffs«
It should also be noted that the request for the
Bureau of Narcotics has not been reduced due to the Treasury*s concern for the
maximum vigilence in the troublesome field of illegal use of narcotics •**
The letter from Seeretaiy Humphrey to Chairman Taber, with the table
of reductions, is attached
JPOR IMMEDIATE RELFASE
THURSDAY - APRIL 2f lgfis
ZL1
Secretary of the Treasury George M* Humphrey today submitted to the
House Appropriations Committee a revised 1954 budget estimate, reducing
proposed Treasury operating expenditures by $50,883,000 under the
$665,328,000 requested by the former administration*
"I am pleased to be able to report that reductions on the original
estimates have been approved in the amount of $50,883,000, 'which is a
reduction of approxLuately 12*2$, excluding the Revenue producing program^
(the Bureau of Internal Revenue and the Bureau of Customs)," Secretary
Humphrey wrote Chairman John Taber of the House Appropriations Committee*
Secretary Humphrey also wrote that the revised Treasury Department
estimate is a reduction of $40,568,000 below corresponding 1953 appropria«
tions* (Secretary Humphrey’s letter pointed out that the figures referred
to only Treasury’s operating budget and are exclusive of such fixed items
as interest on Public Debt, transfers to Government Trust Funds and refunds
of taxes and Custom duties, which total more than fifteen billion dollars^
In a separate statement a Treasury spokesman saidi
"It should be noted that the revised Treasury estimates reflect a
general reduction of about 7 »6% from the earlier budget estimate, inasmuch
as less than average cuts are requested for the two revenue collecting
agencies, the Bureau of Internal Revenue and the Bureau of Customs*
The Treasury’s position is that any substantial decrease in the funds for these
two bureaus^lrouJ^i h&Vo ¿1 .urrgatiprr effect in that the culluclitiii of revenues
government might actually he- deeroannd-by viytm-.» iv£_jLnnp»4
4» these~~
IMMEDIATE RELEASE,
Thursday, April 2,
■
1953.
h
' C
-72
Secretary of the T r e a s u r y G e o r g e M. H u m p h r e y t o d a y s u b m i t t e d
to the House A p p r o p r i a t i o n s C o m m i t t e e a r e v i s e d 1954 b u d g e t
estimate, r e d u c i n g p r o p o s e d T r e a s u r y o p e r a t i n g e x p e n d i t u r e s b y
$50,883,000 u n d e r the $ 6 6 5 , 3 2 8 , 0 0 0 r e q u e s t e d b y the f o r m e r
administration.
"I a m p l e a s e d to be a b l e to r e p o r t that r e d u c t i o n s o n the
original e s t i m a t e s h a v e b e e n a p p r o v e d in the a m o u n t of
$50,883,000, w h i c h is a r e d u c t i o n of a p p r o x i m a t e l y 12 .2$, e x c l u d i n g
the Revenue p r o d u c i n g programs, (the B u r e a u of I n t e r n a l R e v e n u e
and the B u r e a u of C u s t o m s ) , ” S e c r e t a r y H u m p h r e y w r o t e C h a i r m a n
John Taber of the House A p p r o p r i a t i o n s Committee.
Secretary H u m p h r e y a l s o w r o t e that the r e v i s e d T r e a s u r y
pepartment e s t i m a t e is a r e d u c t i o n of $ 4 0 , 5 6 8 , 0 0 0 b e l o w c o r r e s p o n d Z u V S ?3 S P P roP r:Lations.
(Se c r e t a r y H u m p h r e y ' s l e t t e r p o i n t e d out
that the f i g u r e s r e f e r r e d to o n l y T r e a s u r y ' s o p e r a t i n g b u d g e t and
are exclusive of such f i x e d items as i n t e r e s t on Public Debt
transfers to G o v e r n m e n t T r ust F u n d s and r e f u n d s of taxes and*
Custom duties, w h i c h total m o r e t h a n f i f t e e n b i l l i o n d o l l a r s . )
In a separate
sta t e m e n t a T r e a s u r y s p o k e s m a n said:
It should be n o t e d that the r e v i s e d T r e a s u r y e s t i m a t e s re f l e c t
a general r e d u c t i o n of a b out 7 .6$ f r o m the e a r l i e r b u d g e t e s t i m a t e
inasmuch as less t h a n a v e r a g e cuts are r e q u e s t e d f o r the two
revenue c o l l e c t i n g agencies, the B u r e a u of Internal R e v e n u e and
the Bureau of Customs.
The T r e a s u r y ' s p o s i t i o n is that a n y
substantial d e c r e a s e in the f u nds f o r these two b u r e a u s m i g h t
actually resu l t in a loss of revenue.
I n t ernal R e v e n u e f i g u r e s
snow that it costs b u t f o r t y - t w o cents f o r e a c h $100 c o l l e c t e d in
ieaeral taxes.
U n d e r its n e w a d m i n i s t r a t i o n e v e r y e f f o r t is b e i n g
made to operate the B u r e a u of Internal R e v e n u e u n d e r the m o s t
euicient s t a n dards but the T r e a s u r y f e els that a n y f u r t h e r
reduction in the a m o u n t r e q u e s t e d could resu l t in loss of income
the g o v e r n m e n t b e c a u s e of r e d u c e d e x a m i n i n g staffs.
It s h ould
aiso be n o ted that the r e q u e s t f o r the B u r e a u of N a r c o t i c s h a s not
oeen reduced due to the T r e a s u r y ' s c o n c e r n f o r the m a x i m u m
i g u ance in the t r o u b l e s o m e f i e l d of i l l egal us e of n a r c o t i c s . "
iav4 Th® l e t t e r f r o m S e c r e t a r y H u m p h r e y to C h a i r m a n Taber,
taoie of reductions, is attached.
w i t h the
My dear Mr.
Chairman:
The e s t i m a t e s of a p p r o p r i a t i o n r e q u i r e m e n t s fo r the T r e a s u r y
Department f o r the fisc a l y e a r 195 4 w h i c h are b e f o r e y o u r Com m i t t e e
and on w h i c h h e a r i n g s are n o w b e i n g c o n c l u d e d were, as y o u know,
prepared and s u b m i t t e d b y the f o r m e r A d m i n i s t r a t i o n .
Y o u are also
probably aware that the D i r e c t o r of the B u r e a u of the Budget, on
February 3, 1953* a d d r e s s e d a l e t t e r to all D e p a r t m e n t s a nd a g e n c i e s
directing a r e v i e w of the 195 4 b u d g e t w i t h a v i e w to r e d u c i n g
budgetary o b l i g a t i o n a l authority, r e d u c i n g the level of e x penditures,
critically e x a m i n i n g e x i s t i n g programs, r e s t r a i n i n g c o m m i t m e n t s on
new programs, a n d g e n e r a l l y d r i v i n g f or g r e a t e r e f f i c i e n c y and
reduced costs.
F o r t h ese purposes, n e w b u d g e t p o l i c i e s and c r i t e r i a
were laid down.
The T r e a s u r y Department, like o t h e r d e p a r tments, has
completed a careful r e e x a m i n a t i o n of its 1954 b u d g e t e s t i m a t e s in
line with these n e w policies.
In c o n n e c t i o n w i t h the a b o v e review, it should be n o t e d that
approximately 96 % of the total a p p r o p r i a t i o n r e q u i r e m e n t s of the
Treasury are f i x e d b y statute a n d are o u t s i d e the a d m i n i s t r a t i v e
control of the Secretary.
These f i x e d r e q u i r e m e n t s in c l u d e such
substantial items as i n t e r e s t o n the p u b l i c debt, $ 6 ,350 , 000, 000 ;
transfers to G o v e r n m e n t trust funds, $6,332, 3 0 0 , 0 0 0 ; and r e f u n d s of
taxes and c u s toms d u t i e s a m o u n t i n g to $ 2 ,613 , 000 ,000 .
The a p p r o p r i a t i o n s o v e r w h i c h I a m a ble to e x e r c i s e some d e g r e e
of administrative d i s c r e t i o n t o t a l e d $ 655 , 013,000 f o r the fiscal
year 1953»
A g a i n s t 'these a p p r o p r i a t i o n s , e s t i m a t e s f o r the f i scal
year 1954 wer e s u b m i t t e d b y the o u t g o i n g A d m i n i s t r a t i o n in the
amount of $ 665 , 328 , 000, or a r e q u e s t e d i n c r e a s e of $ 10 , 315,000 o ver
the current y e a r ’s a p p r o p r i a t i o n .
B a s e d u p o n the r e e x a m i n a t i o n
referred to aboYe, I a m p l e a s e d to be able to r e p o r t that r e d u c t i o n s
on the original e s t i m a t e s h ave b e e n a p p r o v e d in the a m o u n t of
$50,883,000, w h i c h is a r e d u c t i o n of a p p r o x i m a t e l y 12 .2%, e x c l u d i n g
the Revenue p r o d u c i n g p r o grams.
In c o n t r a s t to a n in c r e a s e o v e r
the 1953 app r o p r i a t i o n s , these r e v i s e d e s t i m a t e s will m e a n an
actual r e d u c t i o n b e l o w the c o r r e s p o n d i n g 195 3 a p p r o p r i a t i o n s of
$40,568,000. '
The r e d u c t i o n s in the e s t i m a t e s p r o p o s e d h e r e i n a re set out
by individual a p p r o p r i a t i o n i t e m in the sc h e d u l e attached.
To
some extent, these r e d u c t i o n s are p r e d i c a t e d on o ur a b i l i t y to
develop d u r i n g the nex t 15 m o n t h s m e t h o d s of a c c o m p l i s h i n g savings
which are not n o w c l e a r l y in sight.
It m a y be that f u r t h e r m e t h o d
of saving c a n be found, a n d this o b j e c t i v e w i l l of course be
vigorously pursued.
However, in the light of wha t I n o w know,
X think that a n y f u r t h e r r e d u c t i o n at this time could do serious
damage to the o p e r a t i n g e f f i c i e n c y of the D e p a r t m e n t a nd to its
ability to p r o p e r l y d i s c h a r g e the v a r i o u s r e s p o n s i b i l i t i e s that
are imposed o n it b y law.
It is r e q u e s t e d that the r e v i s e d e s t i m a t e s be s u b s t i t u t e d f o r
the estimates n o w b e f o r e the C o n g r e s s and that t h e y be u s e d as the
basis for d e t e r m i n i n g the a m o u n t s to be a p p r o v e d b y y o u r C o m m i t t e e
for the fiscal y e a r 195^.
V e r y t r u l y yours,
G.
M. H U M P H R E Y
S e c r e t a r y of the T r e a s u r y
Attachment
Honorable J o h n Taber,
Chairman, C o m m i t t e e o n Approp r i a t i o n s ,
House of R e p r e s e n t a t i v e s ,
S. Capitol.
£
TREASURY DEPARTMENT
Reductions. in Appropriations for 1951*
Appropriation Title
Salaries and expenses,
Office of the Secretary ,,..
Salaries and expenses,
Bureau of Accounts ..... .
Revised
Amount
Amount in
1951* Budget
$ 2,620,000
$
2,1*00,000
Reduction
|
220,000
2,000,000
1,900,000
100,000
Salaries and expenses,
Division of Disbursement .. #
12,065,000
11,000,000
1,065,000
Administering the public debt,
Bureau of the Public Debt ..
55,000,000
51,000,000
1*,000,000
Salaries and expenses, Office
of the Treasurer ...........
20,1*50,000
18,1*50,000
2,000,000
550,000
350,000
200,000
Salaries and expenses, Bureau
of Customs....... .........
1*2,000,000
1*0,500,000
1 ,500,000
[Salaries and expenses, Bureau
of Internal Revenue ........
272,500,000
266,000,000
6,500,000
Salaries and expenses, U. S#
Secret Service .............
2,725,000
2,500,000
225,000
Salaries and expenses, White
| House Police
698,000
630,000
68,000
¡Salaries and expenses, Guard
[ Force
1*30,000
375,000
55,000
5,300,000
It,700,000
600,000
200,000,000
188,250,000
11,750,000
r-CQUisition, construction,
I snd improvements, U. S.
I Coast Guard ................
25,000,000
2,500,000
22,500,000
ieserve training, U. S.
1 Coast G u a r d .............. .
2,600,000
2,500,000
100,000
Contingent expenses, public
moneys, Office of the
Treasurer ......... .
[Salaries and expenses, Bureau
of the Mint ...............
iterating expenses, U. S.
I Coast Guard ...............
m
wmtm wmmmB*
fneeday* April |S 1951»
ft®
or the treasury M
i
left w m a g that the tender« fop
$l,fcQO,009,000, or thereabouts, of f M i f
M U e to bo dated April 9 and to
aaturo fiOy 9» 1951, *kt«h **** off«rod « April t, eere opened ot the Federal Beeero
Banks on April 6»
the detail* of thi* ieeue ere a* folio**?
total applied for * $2,275,152,000
total accepted
- 1,1*00,560,000
Average price
(Include» $220,606,000 «altered m a
noncompetitive basis sad accepted in
fall at the evwr*§e price i h « s M e n )
** 99*1*76 Equivalent rate of dleeoaxst appro*. 2*0T3f per «man
Bang» of aooepted competitive bide*
- 99.507 s«ai«ileat *eia of diseeack appr«. 1.95W per m
-
99,k7t
•
•
*
•
2.0895
«
•
(95 poteent of th* «aount bid for at the low price i u aeoeptod)
Federal Be serve
District
fetal
fetal
Boston
lee iffiPs
I
|
Philadelphia
Cleveland
Richmond
Atlanta
Chisago
St. Xenia
jkHnrMfcapftlia
^ B M i a city
18,3,9*000
1,807,903,000
3k, 91)5,000
18,!%$,000
hi,268,000
W , 028,000
23.361.000
27.228.000
k9,169,000
12.836.000
26.716.000
190.136.000
33.869.000
JO,« 3 ,ooo
52,065,0»
6 7,oak,ooo
71.201.000
82,275,152,000
81,b00,560,000
250, 891,000
10,968,000
Sea Francisco
TOTAL
22,311,000
851.603.000
*
O
LK
J 7I
RELEASE M O R N I N G NEWS P A P E R S ,
Tuesday, A p r i l 7, 1953.
H-73
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $1,400,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y b i l l s
to be dated April 9 a nd to m a t u r e J u l y 9, 1953* w h i c h wei°e o f f e r e d o n
April 2, were o p e n e d at the F e deral R e s e r v e B a n k s on April 6.
The d e t a i l s
of
this
issue
are
as
follows:
Total a p p l i e d f o r - $ 2 , 2 7 5 , 1 5 2 , 0 0 0
accepted
1,400,560,000
Total
(includes
$220,606,000
entered on a non-competitive
basis and accepted in full
at the a v e r a g e p r i c e sho w n
below)
Average p r i c e
- 9 9 . 4 7 6 E q u i v a l e n t rate of d i s c o u n t approx.
2.073$ par annum
Range of a c c e p t e d c o m p e t i t i v e bids:
HiSh
- 9 9 . 5 0 7 E q u i v a l e n t rate of d i s c o u n t approx.
Low
~ 9 9 . 4 7 2 E q u i v a l e n t rate of d i s c o u n t approx.
2.089$ per annum
1.950$ per annum
(95 pe r c e n t of the a m o u n t b i d f or at the low p r i c e w as a c c e p t e d )
Federal R e s e r v e
D is tr ic t
______
Boston
Total
Applied
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
San F r a n c is c o
28, 339,000
1 ,607 ,903,000
.34 ,945,000
43 . 268.000
1 3 .361.000
27 . 228.000
250 ,891,000
49 . 169.000
10 . 968.000
5 7 . 315.000
7 9 .501.000
22 ,314,000
851 .603.000
18 .945.000
43 . 028.000
12 . 836.000
26.716.000
190 . 116.000
3 3 .869.000
10 .853.000
52 . 065.000
67 . 014.000
7 1 .201.000
$ 2 , 275 , 152,000
$ 1 ,400 ,560,000
$
New York
72.264.000
TOTAL
Total
Accepted
for
0 O0
$
TREASURY DEPARTMENT
F i s c a l S e r v ic e
STATUTORY DEBT LIMITATION
as
OF
M a rch
Wash i n g t o n ,
31 ,. 1.9.53...
April
1
1953
. 7 ..
Section 21 o f Second Liberty Bond Act, as amended, provides that the face amount of o b lig a tio n s issued
under au th o rity of that Act, and the face amount of o b lig a tio n s guaranteed as to p rin cip al and interest by the
United States (except such guaranteed o b lig a t io n s as may be held by the Secretary o f the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U .S.C ., t i t l e 31 » sec. 757b|, outstanding at
any one time.
For purposes of th is section the current redemption value o f any o b lig a tio n issued on a discount
basi&.which is redeemable p r io r to m aturity at the option of the holder sh a ll be considered as it s face amount."
The follow ing table shows the face amount o f o b lig a tio n s outstanding and the face*amount which can still
be issued under th is lim ita tio n :
4275,000,000,000
Total face amount that may be outstanding at any one time
Outstanding
O b ligatio n s issued under second Liberty Bond Act, as amended
In te re st-b e arin g:
i.__ __^
Treasury b i l l s ................................ $ 19 »210 , 987 >000
15,958,626,000
C e r t ific a t e s o f indebtedness.......
Treasury notes .............................
Bonds Treasury....................................
Savings (current redemp. value)
D epositary................................
Armed Forces Leave.....................
Investment s e r ie s ........................
^ C e rtif¡c a te s o f indebtedness......
Treasury n o te s............................
Total in te re st-b e arin g
35.206,051,7004 70,375,664,700
80,367,557.750
58.370,659,762
400,233,500
—
13 »387 »3^3 »OQQ 152 »525 »79^*»012
24,274,438,000
15,079,881,400
..........................................
Matured, in te re st-ce ase d ......................................................
Bearing no interest:
War savin gs stamps .........................
Excess p r o f it s tax refund bonds.....
49, 876,475
Special notes o f the United state s:
In te r n a t'l Monetary Fund series...
1,258,000,000
Total
39.354,319,400
262,255,778,112
312,096,625
1.515,285
.................................
1,309.391,760
263,877,266,497
Guaranteed o b lig a tio n s (not ^ e ld by Treasury):
Interest-bearin g:
49,947,436
Debentures: F.H. a . ............................
33,611
Demand o b lig a tio n s: C .C .C ... ............. ......
Matured, interest-ceased ................................... .................. .....
**9,981,0*17
1 , 291*, 725
51.275.772
Grand total outstanding
....................... .............................
Balance face amount of o b lig a tio n s issuable under above au th ority
Reconcilement with statement of the Public Debt
263,928,5^2,269
11,071 ,W .T P
March 31. 1953
............ (bate)
(D aily statement of the United State s Treasury, April
_ .
1 , 1953
(Date)
Outstanding Total gross pu blic debt .........................................................................................
Guaranteed o b ii gâtion s not owned by the Treasury ...................................................
Total gross pu blic debt and guaranteed o b lig a tio n s ...............................................
Deduct - other outstanding pu blic debt o b lig a tio n s not subject to debt li m i t a t i o n ...
H - i f
ÏD »OAS »DC
264,484,781,955
51,275.772
264,536,057,'/¿7
607.515,458
263,928,542,269
STATUTORY DEBT LIMITATION
AS OF MARCH 31, 1953
April 7, 1953
Section 21 of Second Liberty Bond Act*; as amended, provides that the face amount
of obligations issued under authority of that Act, and the face amount of obliga
tions guaranteed as to principal and interest by the United States (except such
guaranteed obligations as may be held by the Secretary of the Treasury), ’’shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 191*6; U.S.C., title 31,
sec* 757b), outstanding at any one time« For purposes of this section the current
redemption value of any obligation issued on a discount basis which is redeemable
prior to maturity at the option of the holder shall be considered as its face amount»”
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
25
Interest-bearing:
Treasury bills------ --- ----$ 19,210,987,000
Certificates of indebtedness... 15,958,626,000
Treasury notes.............. 35,206,051*700$ 70,375,661*,700
Bonds Treasury................. 80,367,557,750
Savings(current redemp. value) 58,370,659,762
Depositary... *..... .....
¡*00,233,500
Armed Forces Leave......
Investment series....... .
13,387.3^3,000 152,525,791*,012
Special Funds Certificates of indebtedness. 2l*,27i*,1*38,000
Treasury notes............ 15,079,881,1*00 39,351*,319,1*00
Total interest-bearing.... TV. . . . . . . . . . . . . 262,255,770,112
Matured, interest-ceased.... .................
312,096,625
Bearing no interest:
War savings stamps............
1*9,876,1*75
Excess profits tax refund bonds..
1,515,285
Special notes of the United States:
Internat’ 1 Monetary Fund series 1,258,000,000 1,309,391,760
Total......................... 77...V......... 263,077,266,1*97
Guaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures: F.H.A.......
1*9,91*7,1*36
Demand obligations: C.C.C.
33,611
1*9,981,01*7
Matured, interest-ceased...
1,291**725
¿1,275,772
G
~rand total
ouuax outstanding,
outstanding................. ......
263 928 51*2 269
— ance face amount of obligations issuable under above authority... ~îï*071^1*57\ 731
Reconcilement with Statement of the Public Debt - March 31, 1953-------Outst *
Statement of the United States Treasury, April 1 , 1953)
T
a*l* gross public d
-o
-t
v«
e
b
t
.
?
6
1
»
1*A), 7At
uaranteed obligations not owned by the Treasury...............
9 51* 275*772
Deduct - a+ T PUb^ d?bt
guaranteed obligations.... .....!!!. 2BU]536'057^727
other outstanding public debt obligations not subject to
debt limitation...................... ..............
60?,515,1*58
263,926, 51*2,269
j J
A -T ***
/
t
0
B O M ) IATE RELEASE
April-t, 1953
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* 1953, to March 28, 1953, in
clusive, as followsr
products of the
Philippines
*•* Established Quota
Quantity
5
s unit of
: Quantity
•
•
Imports as of
Mar. 28, 1953
•
•
Buttons • • • • • • • •
850,000
Gross
213,71*7
550,695
Cigars........ • •
200,000,000
Rttniber
Coconut Oil . . . . . .
14*8,000,000
pound
20,983,286
• • • • • • • •
6 ,000,000
Pound
1 ,1*91,082
R i c e .................
1 ,01*0,000
Pound
2,500
1,904,000,000
Pound
Cordage
(Refined • • • • •
Sugars
393,682,1*72
(Unrefined • • • •
Tobacco • • • • • • • »
6 ,500,000
Pound
502,1*69
TREASURY DEPARTMENT
201
Washington
IMMEDIATE RELEASE
Wednesday,» April 8, 1953
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities on which Quotas ifere prescribed by
the Philippine Trade Act of 191*6, from January 1, 1953, to March 28, 1953.
inclusive, as follows:
9
Products of the
Philippines
:
:
Buttons »a
Established Quota
Quantity
850,000
Unit of
Quantity
Imports as of
Mar, 28, 1953
Gross
213,7147
550,695
Cigars o © . ( ? * * * e
200,000,000
Number
Coconut Oil . 9 9 9 . 9
14*8,000,000
Pound
20,983,286
6,000,000
Pound
1,1491,082
1,01*0,000
Pound
2,500
l,90l*,000,000
Pound
Cordage
„
RlC6 t
(Refined « . . 0
Sugars
(Unrefined « « #
Tobacco . 9 * 9 9 9 . a
393,682,1472
6,500,000
Pound
502 169
-
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
b'e filled by cotton wastes other than comber wastes'made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Country of Origin
Established
: TOTAL QUOTA
United Kingdom ........
Canada .................
France ...............
British India ........
Netherlands..........
Switzerland ..........
Belgium ...............
Japan .................
China .............. .
Egypt ................
Cuba ..................
Germany............. .
I t a l y ................
Imports
1/
: Established :
: Total imports
: Sept. 20, 1952* to:
33-1/3% of t Sept. 20, 1952,
*
• April 7i 1953
: Total Quota : to April 7* 1953 _
4,323,457
239,690
227,420
69,627
68,240
A4,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
78,053
239,495
13,032
48,162
15,715
«*»
5,482,509
1/ Included in total imports, column 2.
Prepared by the Bureau of Customs
1,441,152
-
77,446
m
13,032
24,618
6,430
75,807
22,747
14 ,79 6
12,853
25,443
7,088
425*505
1 ,599,886
137,241
4m
$ji
m
m
Ml
15,715
«*£>
feü
m
m
m
24,618
6 ,4 30
hjC7~~<&m *.,'y^^K^y
, , IMMEDIATE RELEASE
U / ^ April V t 1953
^
1
V
R. i -
1
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 inches other than rough or harsh under 3/4"
Imports Sept. 20. 1952. to April 7> 1953* inclusive
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan ....
P e r u .... ..........
British India .......
China .............
Mexico ............
B r a z i l ........... .
Union of Soviet
Socialist Republics
Argentina .........
Haiti .............
Ecuador .............
783,816
247,952
2,003,483
1,370,791
8,883,259
6 18 ,72 3
Imports
587
8,883,259
475,124
5,203
237
9,333
1,382
Country of Origin
Established Quota
Imports
752
871
124
195
2,240
7 1 ,3 8 8
_
2 1,3 2 1
5,377
16,004
689
«fr
*•*
Honduras ............
Paraguay............
Colombia .............
Iraq ......... .......
British East Africa ...
Netherlands E. Indies
Barbados
.....
l/Other British W. Indies
Nigeria ...2 ..........
2/0ther British W. Africa
,2/Other French Africa ...
Algeria and Tunisia ...
-
1/ Other than Barbados , Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20.
to
,
1^95.^
Cotton 1-1/8* or more, but less than 1-11/16
Imports Feb. 1 . 1953, to April 7. 1953
Established Quota (Global)
Established Quota (Global)
70 ,000,000
Imports
9,304,234
45,656,420
Imports
14,937,622
lift
9m
m
«It*
9m
m
TREASURY DEP ARTMENT
Washington
,IMMEDIATE RELEASE
Wednesday» April 8 , 1953
H-76
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)
Cotton under 1-1/8 inches other than rough or harsh under 3/hu
Imports Septa 20,^19^2^~to ApriT 7». 1953» inclusive
........
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan O*o*
783,816
Peru 6«o*t*tM ****<»4
2iii7»9i?2
British India
2,003,1*83
C
h
i
n
a
.
1,370,791
Mexico..............* 8 , 8 8 3 , 2 5 9 *
Brazil...........’...,
618,723 '
Union of Soviet
Socialist Republics
1*75,121;
Argentina............
5,203
H
a
i
t
i
*
237
Ecuador. •
e
9,333
Imports
587
—
8,883,259
1,382
-
Country c-f Origin
Established Quota
Honduras ««a#.©®*^***©*
752
Paraguay
' 8?1
Colombia ,«<>#**.#*««•••
121*
Iraq
195
British East Africa.,,,
‘ '2,21*0
Netherlands E. Indies..
71,388'
Barbados......... ......
l/other British W* Indies
v £1^321
**
■ Nigeria........ . . . . . 5 , 3 ? ? .....
‘ 2/other British W. Africa
‘X6,00U
3/0ther French Africa
v'689 '*‘ ‘’
~ Algeria and Tunisia....
.....-' *’r* ’'/ *
Imports
. —
—
~
.
1/ Other than. Barbados, •Beimuda, Jamaica,- Trinidad, and Tobago*--- -
3/ Other than Gold Coast and Nigeria»
3/ Other than Algeria, Tunisia, and Madagascar^
•- '- - .. - —
Cotton» harsh or rough, of less than 3/hn
Imports Sept'o ”20, 195^7 to March 28 , 1951
Cotton 1-1/8» or more, but less_than l~jl/i6tt
Imports Feb* 1, 1953, to April ?» 1953
Established Quota (Global)
Established Quota (Global)
7 0 ,000 ,00 0
Imports
9,30l*,23li
1*5,656,1420
Imports
114,937,622
ro
Cl
ix.
I 1 I 1 1 1 I I I 1 J 1 I
_____ Pi
MM
if
MM
....... .
I
i
f
1
^Ii
i
1
I
1
i
f
ï I
I
---------- !
------
- 2
COTTON WASTES
(In pounds)
COTTON C A R D STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER'
.WASTE, LAF WASTE,,, SLIVER WASTE, .AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
' A D V A N C E D IN VALtJEi . Provided, however, that.not more than 33-1/3 percent of the quotas shall
be filled by cottdn wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countriess. United Kingdom, trance, Netherlands^
Switzerland, Belgium, Germany, and Italy:
Established
Country of Origin
United Kingdom«,....
Canada*
France...........
British India,.....
Netherlands^!;*, *.
Switzerland.A .r. I ..
Belgium *••!..»,..•
Japan *... *•.. <»»...
China
•*•*
Egypt o*.*...*•*..*
Cuba #*«**.•*.»»•«»
Germany »••••••••*•
Italy #.
1/
TOTAL QUOTA
i+,323,1+57
' 239,690
•-227)1+20
69,627
; ; 68,21+0
itii,388
Total imports
Sent. 20, 3.952, to
April ?,. 3953'
Established :
Imports
33-1/3$ of : Sept. 20, 1552,
Total Quota ;
1,1+1+1,152
78,053
239,1+95
13,032
1/
to April 7. '1953
.
77)1+1+6
75,807
13)032-
22,71+7
lit,796
12,853
15)715 -f
- • ■ ■
1+8,162
15,715
2
'•138;,55?'
31+1,535
--;17,322
im
. . / * '
» * **
:W o ?
6,5alt
76,329
21,263
2i+,6l8
6,1+30
259kky
7,088
5,U82,5o9
1+25,505
1,599,886
Included in total.imports, column 2*
Prepared by the Bureau -of- Customs >
"
6»U30
—
; 137,2lflr
April ^ 1 9 5 3 __________
The Bureau of Customs announced
figures showing the
quantities of wheat and wheat flour/entere§7 or withdrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 191*1, as modified by the President's proclamation of April 13, 1942,
for the 12 months commencing May 29, 19 53 as follows:
Wheat
Country
of
Origin
Imports
Established :
Quota
«May 29, 19 53 to
: April 7, 1953
(Bushels)
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
—
100
—
100
*100
100
2,000
100
1,000
100
—
794,576
—
mm
*■*
-
m
HP
4P
«P
*p
ip
urn
*m
m
cp
m
«P
m
m
«*
—
1,000
100
100
-
100
100
m
800,TOT
794,576
*■*
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established :
Quota
: May 29, 19 5?
•
• to April 7, 1
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,0 0 0
8,000
75,000
1,000
£,000
£,000
1,000
1,000
1,000
1,718,725
M*
*»
“
iU,ooo
*#
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
—
m
44
«■»
**
*•
m
m
«9»
m
•
m
m
—
4,000,'ODD
1,713,769
TREASURY DEPARTMENT
Washington
immediate r e l e a s e #
H*77‘
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered# or withdrawn from
warehouse, for consumption under the import quotas established in the Presidents
proclamation of May 28, 19l.il, as modified by the Presidents proclamation of
April 13# 19U2, for the 12 months commencing May 29, 1952, as follows;
3
Wheat
Country
of
Origin
:
«
p■
3
3 Established s
¿sports
:
3
Quota
3 May 29, 1952, to ,
3
3 .April 1, 1953.. !
(.Bushels)
(Bushels
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
•
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795,000
791*,576
pm
-
«
-
m
100
100
100
m.
mm
mm-
-
mm
»
mm
100
2,000
100
mm
mm
mm
0m
«
1,000
mm
mm
100
0m
..
mm
-
m
»
mm
’
mm
'-«*
m
mm
m-
1,000
100
100
m
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established 3
Quota
3 May 29 , 1952,
*to April 7,1953
XPoundsJ
^Pounds)
3,8x5,000
1,718,725
m
2U,000
13,000
mm
13,000
mm
8,000
75,000
1,000
•f
14*
5,000
5,000
4
1,000
1 ,0 0 0
1,000
lh,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000.
1,000
1,000
1^000
1,000
•
«4
4
•p
m
m
m
100
100
•
-
Ec o l o g o
t5l*,576
£,000,000
4*
m
1,718,769
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 March 28, 1953, inclusive, as follows*
Unit
Commodity
Period and Quantity
of
Quantity
imports as
of
Mar» 28, 1953
Whole milk, fresh or
sour ............
Calendar year
3,000,000
Gallon
1(0?
Cream............... •
Calendar year
1,500,000
Gallon
353
Butter * • • • • • • • • •
Nov* 1, 1952Mar, 31, 1953
50,000,000
pound
7,302
Fish, fresh or frozen,
filleted, etc,, cod,
haddock, hake, pollock,
cusk, and rosefish . , . . Calendar year
33,866,287
pound
(i)
Quota Filled
150,000,000
798,900,000
Pound
Pound
97,3ll(,ll(3
6U,8U2,687
Walnuts , • ............ Calendar year
5,000,000
Pound
2,681,332
Almonds i
shelled, blanched,
12 months from
roasted, or otherwise
prepared or preserved » • Oct. 1, 1952
7,000,000
Pound
5,106,731
White or Irish potatoest
certified seed
other ............
12 months from
Sept. IS, 1952
(1) Inports for consumption at the quota rate are limited to 8,U66,572 pounds
during the first three months of the calendar year»
TREASURY DEPARTMENT
oro
¿UQ
Washington
IMMEDIATE release
Wednesday, April 8, 1953
H-?8
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 March 28, 1953, inclusive, as follows:
•
•
Unit : Imports as
of
:
of
: Quantity : March 28, 1953
:
•
:
Commodity
:
Period and Quantity
Whole milk, fresh or sour. . . . Calendar year
3,000,000
Gallon
k07
Cream.
Calendar year
1 ,500,000
uax.Loxj.
353
Eov. 1, 1952 Mar. 31, 1953
50,000,000
Pound
7,302
Calendar year
33 ,866,287
Pound
Quota filled
150,000,000
798,900,000
Pound
round
97,311»,lli3
6it,8ii2,68?
Blit»b 0 2 7 t | » H
9
# * • i • f
4
f | >
| V V | I t # •
Fish, fresh or frozen,
,filleted, etc«., cod,
haddock, hake, pollock,
cusk, and rosefish,. . . . . . . . .
White or Irish potatoes:
certified seed............. 12 months from
other...... .. ..„ .. T.. T*. j
Sept. 15, 1952
( i )
Walnuts........ tTtT
Calendar year
5,000,000
Pound
2,681,332
Almonds:
shelled, blanched,
roasted, or otherwise
prepared or preserved
12 months from
Oct. 1, 1952
7,000,000
Pound
5,106,731
(1) Imports for consumption at the quota rate are limited to 8,1*66,572 pounds
during the first three months of the calendar year.
STATEMENT BEFORE THE SENATE COMMITTEE ON THE JUDICIARY
209
by
ELBERT P. TUTTLE, GENERAL COUNSEL OF
THE TREASURY
on
S. J. RES. 1 and
8* J. RES. h3
April 8, 1953
The Secretary of State and the Attorney General have reviewed comprehen
sively the implications of S. J* Res. 1 and S. J« Res. h3 as they would* affect
the conduct of the foreign relations of the United States, and the constitu
tional position of the Federal Government,» I propose only to mention briefly
each of the substantive provisions of those resolutions, and to indicate by ex
amples, within the scope of the responsibilities of the Treasury Department,
the practical effect which the enactment of either of these constitutional
amendments might have.
Section 1 of S. J. Res. 1 would invalidate any treaty provision "which de
nies or abridges any right enumerated in this Constitution." S. J. Res. h3
would similarly invalidate a treaty "which conflicts with any provision of this
Constitution©" Either of these provisions might be construed to invalidate a
treaty which dealt with a subject matter ordinarily considered, under our con
stitutional system, to be under state rather than federal jurisdiction, on the
ground that it infringed the rights reserved to the states by the Tenth Amend
ment© S. J. Res. h3 removes any doubt on this question by providing expressly
that: "A treaty shall become effective as internal law in the United States
only through legislation which would be valid in the absence of treaty." If
the government were rendered constitutionally unable to enter into treaties
dealing with subjects ordinarily under the Jurisdiction of the states, our
structure of controls over the traffic in narcotic drugs would be seriously im^
paired© As you know, the Bureau of Narcotics is a part of the Treasury Depart
ment and narcotics enforcement is one of our duties.
The system of federal narcotic controls is based upon a series of interna
tional agreements which the United States has made during the past 1*0 years,
since we took the initiative, under the administration of President Taft, in
convening the first international conference to deal with the drug traffic. The
United States is obldLgated, by these agreements, to control the production of
opium, and to limit the manufacture of opium derivatives to the quantities
needed for medical and scientific requirements« Indeed, the United States has
always taken the lead in pressing other countries to undertake this obligations
There had never been a serious problem of domestic production of the opium
P°PPy until the outbreak of World liar II, when our supplies of poppy seed for
baking uses were cut off, and some enterprising farmers undertook to raise
poppy seeds. Unfortunately, the same plant which yields poppy seeds will pro
duce crude opium and morphine; The Bureau of Narcotics feared that some farmers
H-79
-
2
270
-
(or drug peddlers and addicts) might prove even more enterprising, and harvest
the much more profitable seed pods* It recommended, and the Congress enacted,
the Opium Poppy Control Act of X9h2, which forbids the growing of the opium
poppy except under federal license, and limits such licenses to the quantities
needed for medical and scientific requirements. Thus the Congress determined
that we had better do without poppy seeds on our bakery products until imports
could be resumed, rather than risk the temptations which growing the plant
would provide. One of our states thought otherwise, and relying on the reserva
tion of power provision in the Tenth Amendment, enacted legislation authorizing
the growing of poppy plants for seed, under regulation. The courts held the
Federal law to prevail, based on the treaty power. Under S. J. Res. ¿3, and
p o ssib ly under S. J. Res. 1, the state law would have prevailed, with danger
both to our domestic narcotics controls and to our world position as the leading
advocate of effective suppression of the drug traffic.
Section 2 of S. J. Res. 1 forbids any treaty authorizing a foreign power or
an international organization "to supervise, control, or adjudicate rights of
citizens of the United States within the United States enumerated in this Con
stitution or any other matters essentially within the domestic jurisdiction of
the United States". The S. J* Res. h3 text has no similar provision. In the
past decade, a number of synthetic drugs have been discovered which have ef
fects similar to the effects of opium derivatives, both for medicinal uses, and
insofar as they involve the dangers of addiction. Under a protocol of 191*8,
the Manufacturing Limitation Convention of 1931 dealing with opium derivatives
such as morphine was made applicable to synthetic drugs liable to cause addic
tion. The determination of whether a particular synthetic drug involves such
dangers of addiction is vested in the World Health Organization. Apparently,
Section 2 of S. J. Res. 1 would invalidate our acceptance of the 19^8 protocol,
because the World Health Organization is an international organization nhich
would "control rights of citizens (to manufacture synthetics) and other matters
essentially within the domestic jurisdiction of the United States (invading the
right of a State to control manufacture of synthetics)." This would leave a
serious hiatus in international narcotic regulation. Unless some international
organization can be given the responsibility for classifying new drugs as habitforming, there will be great danger that the world market could be flooded with
some new narcotic long before all the countries could be brought around to regu
lating it.
Another example of an international agreement which might be invalidated
by Section 2 of S. J. Res. 1 is the agreement which established the International
Monetary Fund. United States membership in the Fund was explicitly authorized
by Act of Congress in 19U5* Under the Articles of Agreement of the Fund, each
of the 50-odd participating countries has agreed not to change the par value of
its currency (except for certain minimal changes) without the concurrence of the
Fund. Thus, the United States is bound not to change the par value of the dollar (i*e »j its gold content) without prior approval by an international organi- *
Zaiion*. The P°wer nbo coin money, [and] regulate the value thereof" is expliCltly given to the Congress in the Constitution, and would doubtless be regarded
as a "matter essentially within the domestic jurisdiction of the United States,"
as that language is used in Section 2 of the proposed amendment. While the Fund
^
change the U. S. dollar parity on its own initiative, but only veto
- 3 -
changes proposed by member countries, this veto power might, nevertheless, be
construed to conflict with Section 2 of the proposed amendment, and thus render
impossible continued United States participation in the International Monetary
fund. The Articles of Agreement of the Fund constitute today one of the few re
straining influences on the proliferation of discriminatory and restrictive cur
rency practices throughout the world, which so seriously impede the liberation
of international trade from a morass of governmental regulations®
Section 3 of S. J® Res. 1, and Section 1 of S* J. Res. h3 provide that a
treaty shall become effective as internal law in the United States only through
the enactment of appropriate legislation by the Congress« Such a provision, in
my judgment, would seriously impair the expeditious conduct of our foreign rela
tions. In the Treasury Department, we are concerned with a number of treaties
which must be administered.as internal law in the United States. Thus, a number
of treaties have been made with foreign countries, and many others are under ne
gotiation, to limit double taxation and to prevent fiscal evasion with respect
to income, estate and inheritance taxes® In order to protect Americans from
double foreign taxation of particular transactions, we must be prepared to offer
similar exemptions to foreigners from tax liabilities under our laws® In a num
ber of instances, the Internal Revenue Code itself makes specific provision for
exemption in accordance with treaties- Typically, treaties, rather than execu
tive agreements, have been used in this field, although some arrangements of
lesser scope have been made in the form of executive agreements® Negotiations
are frequently protracted, and treaties entered into are typically reviewed very
carefully in the Senate before ratification« The necessity for a further review
by the Congress, with resultant delays, and possible deviation from the text
agreed upon with the foreign countries, thus requiring further negotiation with
those countries, would be a serious handicap to the achievement of the obviously
desirable objectives of our activities in this field*
Section h of S. J* Res. 1 would constitute a fundamental change in the divi
sion of powers under the Constitution by making executive agreements suoject to
regulation by the Congress. Moreover, such agreements would be subject to the
same limitations as are proposed for treaties in tbs resolution. Similar provi
sion is contained in S. J* Res. U3, Section 1* Executive agreements which affect
the operations of the Treasury Department have ranged all the way from formal
documents specifically authorized by the Congress, such as the Articles of Agree
ment of the International Monetary Fund and of the International Bank for Recon
struction and Development, to the most informal arrangements entered into in the
hay-to-day work of the Department, such as exchange of letters between enforce
ment officials of the Treasury and similar officials of foreign governments to
provide for the exchange of information which would be of mutual assistance in
law enforcement* Among the subjects which have been covered by agreements, with
varying degrees of formality, have been aids to navigation, procedures and signals
for safety and rescue at sea and in the air, arrangements entered into in the ad
ministration of the Trading with the Enemy Act, arrangements governing the estab
lishment of U. S. Government foreign currency accounts in banks overseas, and a
wide variety of others. Under the text of S. J» Res. 1, all activities of this
sort would have to stop until Congress had made provision permitting their re
sumption, and prescribing the manner and extent thereof. S. J® Res. ¿3 would per
çut the traditional practice to continue, pending regulatory action by the Congress®
-
b-
What provisions the Congress would make in legislation regulating executive
agreements is, of course, impossible to foretell.
Presumably, there would be
substantial restriction upon the powers of the executive jin this respect^ other
wise there would be no point to the adoption of a constitutional amendment#
Since major executive agreements have, in practice, been made under congressional
authorization, the only result of an extension of congressional controls in this
field would be the prescription of limitations on the great mass of detailed
housekeeping and administrative arrangements with foreign .countries# The effi
cient administration of the Government would, it seems to me, be impaired with
out any significant gain in congressional control over policy decisions# It
should be borne in mind that the Congress has always had the unquestioned right
to undo an executive agreement by legislation since such action by Congress would
supersede the agreement under our constitutional system! The difference is that
under the present system the agreements are valid and binding unless siperseded#
There has been, referred to another committee of the Senate a resolution, in
troduced by Senator McCarran (S# J. Res. 2), which would impose congressional
regulations on the making of executive agreements. This is the type of regula
tion which the two proposed amendments before this Committee would authorize the
Congress to make» Section 3 of S. J# Res. 2 provides that executive agreements
would terminate not later than six months after the term of the President during
whose tenure they were negotiated, unless extended by proclamation of the suc
ceeding President, lie cannot, of course, assume that if either of the proposed
amendments, became part of the Constitution, the Congress would necessarily enact
the form of regulation proposed in S. J. Res. 2. However, since S. J. Res. 2 has
attracted wide interest as a method of regulating executive agreements, it would
be interesting to see how it would affect the conduct of our affairs involving
foreign Countries#
The International Bank for Reconstruction and Development was organized by
an executive agreement which was expressly approved by the Congress, and more than
fifty countries are now members. Most of the funds for the Bank‘s loans must be
raised in the private financial markets. The International Bank has already
floated security issues aggregating some $£00 million in the United States. If
the basic charter of the Bank were open to frequent renegotiation and revision,
investors might hesitate to hold its securities« If our participation in the
Bank need be renewed after each change of administration, foreign countries would
doubtless also insist on the same privilege. There are now over fifty countries
which are members of the International Bank, and I dare say that the majority of
these fifty countries tend to change their administrations more frequently than
we do. It is true that we and the other members of the International Bank have
each reserved the right to withdraw from the Bank on short notice, and under ap
propriate arrangements to protect the creditors and the assets of the Bank. But
it is one thing for a country to be free to withdraw, and quite another thing for
each new administration in each of the fifty-odd countries to be required to take
Positive steps to reaffirm its adherence to the Bank. The privilege of withdrawal
s apparently not interfered with the ability of the Bank to market its securies. i suggest that the need for reaffirmance of membership by each of the
my-odd^members each time there is a change of administration would present
que a different picture to a prospective investor in the Bankfs securities#
/■»M '•«
fe- i
- 5 -
The various bureaus of the Treasury Department concerned with treaties and
executive agreements have prepared memoranda describing their activities in this
field and indicating thq difficulties which they might encounter if either of the
amendments before this Committee became part of our Constitution. The particular
examples I have given you are described more fully * and other examples are given«
I offer these memoranda for the record«
3
Effect on Federal Control of Narcotic Drug Traffic
of Adoption of Constitutional Amenonsnt Proposed
by $. J . îles* 1 or S. J . ries* 4 3 .
Under the amendment proposed by S* J. lies* 1, a provision of a
treaty which denies or abridges any right enumerated in the Constitution
shall not be of any force or effect, and a treaty shall become effective
as internal lav? in the United States only through the enactment of ap
propriate legislation by Congress* Under the amendment proposed
S. J. Res. 43, a provision of a treaty which conflicts with any provi
sion of one Constitution shall not be of any force or effect, and a
treaty shall become effective as internal lav; in the ■United States only
tnrough legislation which would be valid in the absence of treaty*
Under the latter proposed amendment it is clear that the United States
could not become a party to a treaty designed to control the traffic
in narcotic drugs where , as is usually the case, the treaty required
implementation by Feaeral legislation in the field ordinarily consid
ered ..ithin tie reserved power of the several states under the tenth
amendment* Under either proposed amendment, however, it is urged that
in conducting negotiations for a narcotic treaty, representatives of
tne United states would be seriously handicapped in their efforts to
cooperate with representatives of other world po' ers in securing ef
fective international agreement upon the adoption of measures deemed
necessary to control this traffic.
Toe control of this traffic has long been recognized as a problem
necessitating international action and existing international agreements
nave imposed obligations upon the United States and other high contract—
iug powers to place certain restrictions not only upon the exportation
aha importation ox these potentially dangerous substances but upon the
domestic production, manufacture and distribution as well* In imple
menting .these obligations, it is necessary for the national Government
to place appropriate restrictions uoon domestic production and manu
facture of these dangerous drugs, and to this extent it is clear that
tiw cifeet o_ olis international agreements is to deny or abridge the
rw ib taat the citizen "would otherw5.se have to produce or manufacture
unlimited, quantities of narcotic drugs, and that there must be impie*»
pen ting Federal legislation in t ic field ordinarily regarded as within,
tie reserved powers, ox tne several states* f.iere are now pending con
sideration, in draft form, prospective international agreements which
at least contemplate tne adoption of further obligations, notably by
way of limitation of production of crude opium, which would require the
imposition of national restrictions on opium production and therefore
interference with tne right of an individual to produce unlimited
quantities of crude opium. The question whether the rights so denied
or abridged are rights "enumerated in this Constitution" could be
Narcotics - 1
a u t h o r i t a t i v e l y and d e f i n i t i v e l y d eterm in ed o n ly by th e c o u r t s *
I f th e
amendment p ro p o sed by S , J* R e s . 1 w ere a d o p te d , th e e x e c u t i v e d e p a r t
ment o f Government would b e u n a b le , i n p r a c t i c e , t o n e g o t i a t e f o r e f f e c t
iv e i n t e r n a t i o n a l ag reem en t t o c o n t r o l th e n a r c o t i c t r a f f i c b e c a u s e i t
could n o t b e re a s o n a b ly s u re t h a t , i n assum ing w hat i t c o n s id e r e d t o b e
n e c e s s a ry o b l i g a t i o n s in v o lv in g n a t i o n a l c o n t r o l m e a s u re s , i t w as n o t
im p airin g a r i g h t enum erated i n th e C o n s t itu ti o n *
P a r t i c u l a r l y would
th i s be d o u b tfu l in th e l i g h t o f th e N in th Amendment w hich s t a t e s ?
'»The
enum eration i n th e C o n s t i t u t i o n , o f c e r t a i n r i g h t s , s h a l l n o t b e c o n s tru e d
to deny o r d is p a r a g e o t h e r s r e t a i n e d by th e p e o p le 0 * Under th e amendment
proposed b y S* J , R es* 2*3, th e r e would be no doubt a s t o th e im p o ten ce o f
the e x e c u t iv e d ep artm en t o f Government t o become a p a r t y t o an e f f e c t i v e
n a r c o ti c t r e a t y r e q u i r i n g im p le m e n ta tio n by F e d e r a l l e g i s l a t i o n o r d i n a r i
ly co n s id e re d w ith in th e r e s e r v e d pow ers o f th e s t a t e s *
The U n ited S t a t e s h a s t r a d i t i o n a l l y ta k e n a le a d i n g p a r t i n s e c u r in g
the a d o p tio n o f a p p r o p r ia te i n t e r n a t i o n a l a g reem en ts t o c o n t r o l t h e n a r
c o ti c t r a f f i c .
As e a r l y a s 1 9 0 9 , when a C o n feren ce was c a l l e d , on th e
i n i t i a t i v e o f th e U n ited S t a t e s , o f th e I n t e r n a t i o n a l Opium Commission
which convened a t S h an gh ai, i t was r e c o g n iz e d t h a t t h e s o l u t i o n o f th e
n a r c o ti c problem n e c e s s i t a t e d c o n c e r t e d i n t e r n a t i o n a l a c t i o n , A few
y e a rs l a t e r th e U n ited S t a t e s , w ith some 65 o th e r w o rld pow ers r a t i f i e d
or acced ed t o th e I n t e r n a t i o n a l Opium C o n v en tio n o f 1 9 1 2 , w hich o b l i
gated th e c o n t r a c t i n g pow ers t o ta k e su c h s t e p s a s th e en actm en t o f law s
fo r c o n t r o l o f p r o d u c tio n and d i s t r i b u t i o n o f raw opium, and to l i m i t
e x c l u s iv e ly t o l e g i t i m a t e and m e d ic a l p u rp o se s th e m a n u fa c tu re , s a l e ,
and use o f m o rp h in e, c o c a i n e , and t h e i r r e s p e c t i v e s a l t s .
Some y e a r s
l a t e r th e U n ited S t a t e s r a t i f i e d th e C o n v en tio n , co n clu d ed a t Geneva
Ju ly 1 3 , 1 9 3 1 , f o r L im itin g th e M an u factu re and R e g u la tin g th e D i s t r i bu tion o f N a r c o ti c D rugs, and some 67 o th e r w o rld pow ers a r e p a r t i e s t o
th is C o n v en tio n .
The p r i n c i p a l o b l i g a t i o n s assumed by th e p a r t i e s u n der th e 1 9 3 1 C o n v en tio n w ere ( a ) l i m i t a t i o n o f th e t o t a l m a n u fa ctu re o f
e d an gerous n a r c o t i c d ru g s t o t h a t q u a n ti ty n e c e s s a r y to supp ly th e
w o rld 's m e d ic a l and s c i e n t i f i c n e e d s , and (b ) th e a p p l i c a t i o n o f c e r t a i n
p ro v isio n s o f th e Geneva N a r c o ti c C onvention o f 1 9 2 5 ( n o t t h e r e t o f o r e
r a t i f i e d by th e U n ited S t a t e s ) r e l a t i n g t o c o n t r o l o f p e rs o n s and e s t a b
lish m en ts in v o lv e d i n m a n u fa c tu re , s a l e and d i s t r i b u t i o n o f th e d ru g s ,
and c o n t r o l o f i n t e r n a t i o n a l t r a d e i n th e d r u g s .
S t i l l l a t e r , w ith th e
d isco v e ry and developm ent o f s y n t h e t i c a n a l g e s i c d ru g s , n o t d e r iv e d from
opium, a s s u b s t i t u t e s f o r m o rp h in e, i t becam e n e c e s s a r y t o supplem ent
the 1 9 3 1 C onvention by th e P r o t o c o l o f 192*8, w hich p r o v id e s an i n t e r
n a tio n a l p ro c e d u re f o r prom pt a p p l i c a t i o n by a l l th e p a r t i e s o f m anuac u rin g l i m i t a t i o n t o su ch o f th e new s y n t h e t i c d ru g s a s a r e d eterm in ed
to be d an g erou s from th e s ta n d p o in t o f a d d i c t i o n l i a b i l i t y , th u s a v o id
ing o v e r -p r o d u c tio n , beyond m e d ic a l and s c i e n t i f i c n e e d s , w hich would
spread drug a d d i c t i o n .
The 192*8 P r o t o c o l was r a t i f i e d o r acce d e d t o by
the U n ited S t a t e s and 3 0 o th e r w o rld pow ers*
N a rc o tic s - 2
I f S e c t i o n I o f th e amendment p ro p o sed by S . J , R e s . 1 , i n p r o
t e c t i n g »any r i g h t enum erated in t h i s C o n s t itu ti o n » i s in te n d e d t o
p r o t e c t o n ly th o s e r i g h t s w hich a r i s e from s p e c i f i c p r o h i b i t i o n s i n
th e C o n s t itu ti o n o f c e r t a i n ty p e s o f Government a c t i o n , i t would b e
u n n e c e ssa ry a s th e Supreme C ourt h a s h e ld t h a t th e t r e a t y m aking
power o f th e U n ited S t a t e s d o es n o t e x te n d so f a r a s t o a u th o r iz e
what th e C o n s t i t u t i o n f o r b i d s (G eo fro y v s , R ig g s , 133 U *S, 258,* In
r e ; R o s s , ll*0 U .S . ii53* M is s o u ri v s , H o llan d , 2 5 2 U .S . 1*16$ A $akura
v s . S e a t t l e , 2 6 5 U ,S , 3 3 2 ) ,
I f th e p ro p o sed amendment w ere ad o p ted
th e r e f o r e i t i s v e r y u n l i k e l y t h a t S e c t io n 1 would b e c o n s id e r e d o r
co n s tru e d a s m e re ly d e c l a r a t o r y o f e x i s t i n g law$ t h e r e would b e a
b ro a d e r c o n s t r u c t i o n o f th e term »any r i g h t enum erated i n t h i s Con
s t i t u t i o n » , w hich would narrow th e a p p l i c a t i o n o f th e p r i n c i p l e
e n u n c ia te d in th e M is s o u r i v s . H ollan d c a s e t h a t an a c t p a s s e d p u r
su an t t o th e o b l i g a t i o n o f a t r e a t y i s n o t i n v a l i d w here »th e o n ly
q u e s tio n i s w h eth er i t i s fo rb id d e n by some i n v i s i b l e r a d i a t i o n from
th e g e n e r a l te rm s o f t h e T enth Amendment». The Opium Poppy C o n tro l
A ct o f 19ii2 w hich was e n a c te d p u rs u a n t t o an o b l i g a t i o n i n A r t i c l e
1 o f th e 1 9 1 2 C o n v en tio n , was h e ld C o n s t i t u t i o n a l by a t h r e e ju d ge
F e d e r a l C o u rt i n C a l i f o r n i a on much th e same p r i n c i p l e ( 5 6 F . Supp.
8 1 0 ) , and i t i s r e g a rd e d a s d o u b tfu l t h a t th e Opium Poppy C o n tro l A ct
would re m a in C o n s t i t u t i o n a l l y v a l i d under S e c t io n 1 o f t h i s p ro p o sed
amendment.
T here ca n b e no doubt o f th e i n v a l i d i t y o f th e A c t under
th e amendment p ro p o sed b y s. J , R e s . JU3.
S e c t io n 2 o f th e amendment p ro p o sed by S . J , R e s , 1 p r o v id e s t h a t
no t r e a t y s h a l l a u th o r iz e o r p e rm it an y i n t e r n a t i o n a l o r g a n i z a t i o n t o
s u p e r v is e , c o n t r o l o r a d j u d i c a t e r i g h t s o f c i t i z e n s enum erated i n th e
C o n s t itu ti o n » o r any o th e r m a tte r e s s e n t i a l l y w i th in th e d o m e s tic j u r i s
d i c t i o n o f th e U n ited S t a t e s » ,
Under A r t i c l e li* o f th e 1 9 3 1 C o n v en tio n
th e Perm anent C e n tr a l B oard (a n i n t e r n a t i o n a l o r g a n i z a t i o n ) upon f i n d
in g t h a t any c o u n try h a s e x ce e d e d th e t o t a l o f i t s e s t i m a t e s f o r n a r —
c o t i c d r u g s , s h a l l im m ed iately n o t i f y th e High C o n tr a c tin g P a r t i e s , who
w i l l n o t , d u rin g th e c u r r e n c y o f th e y e a r i n q u e s t i o n , a u t h o r i z e any new
e x p o r t o f n a r c o t i c d ru g s t o t h a t c o u n try w ith c e r t a i n e x c e p t i o n s .
Under
the 191*8 P r o t o c o l , t h e M orld H e a lth O r g a n iz a tio n i s a u th o r iz e d t o make
a d e f i n i t i v e f in d i n g a s t o t h e a d d i c t i o n l i a b i l i t y o f a g iv e n d ru g , and
t h i s f in d in g when com m unicated t o th e High C o n tr a c t in g P a r t i e s b in d s
in ? ? t 0 appl3f o r n o t t o
a s ’kke c a s e may b e , th e p r o v i s i o n s o f th e
1 ,3 1 C onvention to th e new d ru g .
In e a c h o f th e s e c a s e s an i n t e r n a t i o n
a l o r g a n i z a tio n p e rfo rm s a f u n c t i o n , under a t r e a t y , t h a t i s v e r y im p o rt
a n t i n th e c o n t r o l o f th e n a r c o t i c d ru g t r a f f i c b u t w hich would n o t be
p e r m is s ib le un d er S e c t i o n 2 o f t h i s p ro p o sed amendment.
S e c t io n 3 o f th e amendment p ro p o sed by S . J , R e s . 1 p ro v id e s t h a t
a t r e a t y s h a l l become e f f e c t i v e a s i n t e r n a l law i n th e U n ited S t a t e s
only th ro u g h th e en actm en t o f a p p r o p r ia te l e g i s l a t i o n by The C o n g re s s ,
By th e te rm s o f th e 1 9 1 2 and 1 9 3 1 C o n v e n tio n s, i t i s s p e c i f i c a l l y r e c o g
n ized t h a t th e p r o v i s i o n s o f t h e s e two C o n v en tio n s b e im plem ented by
N a rc o tic s - 3
o *T»
CI7
appropriate domestic legislation. *The 1946 Protocol does not by its
terras require the enactment of domestic legislation because this Proto
col was designed merely to transfer supervisory functions under narcotic
treaties from organs of the old League of Rations to corresponding or
gans of the United Nations. The 1948 Protocol likewise did not in terms
require the enactment of domestic legislation since it was designed to
provide a reasonably expeditious procedure for subjecting to internation
al control new drugs found to be dangerous, similar to morphine and co
caine, from the standpoint of addiction liability. It will be seen that
the basic narcotic treaties, at least, already observe the principle
sought to be established by Section 3 of this proposed amendment, but
this Section would seriously handicap the obtaining of any internation
al agreement on narcotics, no matter how necessary and desirable it
might be regarded by the executive department of Government, as the
other High Contracting parties would have no reasonable assurance that
the treaty would be given effect by domestic legislation, even though
it had been made with the advice and consent of the Senate. Under
Section 1 of the amendment proposed by S. J. Res. 43, it would be ex
tremely difficult, if not impossible to obtain international agreements
on narcotic control as the implementation of many important provisions
of such agreements require implementing Federal legislation which would
not be valid in the absence of the treaty, notwithstanding that such
implementing Federal legislation would not and could not contravene any
prohibitory words to be found in the Constitution.
Section 4 of the amendment proposed by S. J. Res. 1 relates to all
executive or other agreements between the President and any internation
al organization, foreign power, or official thereof, such agreements to
be made only in the manner and to the extent to be prescribed by law.
Such agreements are to be subject to the limitations imposed on treaties,
or the making of treaties, by the proposed amendment. Section 1 of the
amendment proposed by S. J. Res. 43 provides that executive agreements
shall be subject to regulation by The Congress and to the limitations
imposed on treaties by ’'this article”. The Bureau of Narcotics wishes
to make the observation that it is interested in just one informal in
ternational arrangement In the nature of' an executive agreement. This
is an arrangement for the direct exchange of information, concerning
narcotic traffic, between those officials of the various countries who
are in direct charge of controlling the narcotic drug traffic in their
respective countries. The arrangement covers the exchange of seizure
reports and information regarding persons suspected of being engaged
in the illicit traffic, including such information as photographs,
criminal records, finger prints, descriptions of the methods which the
persons in question have been found to use, the places from which they
operate, and the names of their associates.
The arrangement was ini
tiated in 1928 by an exchange of notes between the State Department
and the authorities of the United Kingdom, and since that time a similar
arrangement, by exchange of notes, has been entered into with many other
countries. In the United States the official designated for this pur
pose is the Commissioner of narcotics. -article 15 of the 1931 Convention
Narcotics - 4
affirms generally the establishment of such an arrangement because it
obligates the High Contracting Parties to create a special administra
tion (in the United States, the bureau of :arcotics) for the purpose,
among others, of "regulating, and controlling the trade in the drugs",
and "organizing the campaign against drug addiction, by taking all
useful steps to prevent its development and to suppress illicit traf
fic".
It may be argued that the informal arrangement thus described
does not amount to an "executive or other agreement" under S. J. Res. 1
or S. J. Res. 43 because technically it was not entered into by the
President. However, it was entered into by an executive department
and would, no doubt, be considered to cone within the purview of each
proposed amendment. The informal arrangement for the exchange of in
formation relative to illicit narcotic traffic has now been in opera
tion for some 24 years, and has been of considerable benefit to narcotic
law enforcement. There has been no complaint, and it is believed that
there has been no ground for complaint of the operation of this informal
arrangement interfering with the legal rights of any citizen. The
observation is made that it would be very cumbersome to apply either
proposed amendment to such an administrative agreement.
P arc otic
279
EXECUTIVE AGREEMENTS IN THE FIELD OF INTERNATIONAL FINANCE
A number of executive agreements in -the field of international finance
would oe affected by the adoption of either of the constitutional amendments
proposed in S, J. Res. 1 and S. J, Res. 1*3• Constitutional limitations on
the powers of the executive in this field would seriously impair the flexi
bility necessary to achieve the international cooperation requisite for
carrying out policies and operations in the field of international finance.
United States participation as a member of the International Monetary
Fund was specifically authorized by the Congress in the Bretton Woods Agree
ments Act, approved on July 31, 19US* The provisions which raise the great
est difficulty in this respect are Section 2 of S« J. Res. 1, prohibiting
any treaty which authorizes or permits any international organization ,rto
supervise, control, or adjudicate rights of citizens of the United States
within the United States enumerated in this Constitution or any other matter
essentially within the domestic jurisdiction of the United States'», and Sec
tion It of the same resolution, which provides:
"All executive ... agreements
• shall be subject to the limitations imposed on treaties ... by this
article". While, in general, the Articles of Agreement of the Fund do not
vest power in the international organization to take affirmative action re
quiring member countries to do particular things, the organization does have
significant veto powers. Thus, each of the member countries is obligated not
to change the par value of its currency (except for certain minimal changes)
without the concurrence of the Fund. Similarly, member countries may not
suspend^ gold convertibility, or impose exchange restrictions, or engage in
discriminatory currency arrangements or multiple currency practices, or
establish too^wide a spread between buying and selling rates for currencies,
unless authorized by specific exceptions in the Articles of Agreement, or un
less permitted by the international organization. In all these cases, the
control over the practices of the United States is theoretic rather than real,
since we do not engage in any of the forbidden practices, and do not plan to
do so. These obligations are considered important by the United States be
cause they tend to limit the spread of disorderly currency practices through
out the^world. However, we could hardly expect other countries to incur such
Obligations if we were not prepared to do so ourselves. Moreover, the com
plexities of international finance are such to preclude the possibility of
°U^ ^"n Prec^se detail in the agreement itself every possible permis
sible exception from the general obligations which form the basic structure
ot^the Fund Agreement. Unless there is a measure of flexibility to permit
swift action in the case of financial emergencies, no country would be willing
o o ligate itself by international agreement, and the only way to prevent such
^exibility from providing a wide-open and uncontrolled escape clause is to
give a power of decision to an international body which can act swiftly.
International Finance - 1
280
The International wank for Reconstruction and Development, which the
United States also joined after congressional approval in the 3 ret ton Woods
Agreements Ret, does hot typically involve regulatory functions or obligations
on the part of this Government* The-provisions of S, J, Res* 1 and S, J, kies*
ii3 would not affect, by themselves, our present situation with respect to the •
Bank* However, both of these proposed constitutional amendments provide that
executive agreements shall be subject to legislative regulation. The kind and
extent of congressional regulation cannot, of course, be forecasted in advance.
But there is a proposal before the Senate now (S* J . Res, 2) which has attracted
a good deal of interest, which would constitute regulation of international
agreements* One of the provisions-of this resolution would terminate the
obligations of the United States under an executive agreement six months
after the end of the term of the President during whose tenure it was
negotiated, unless extended by proclamation of the succeeding President,
If such a requirement were to become mandatory in the making of executive
agreements, it would seriously interfere with the possibility of setting up
an effective international banking institution. Other countries, if they
were prepared to negotiate with us at all on such a basis, would undoubtedly
insist that they, too, have the ,same freedom based upon the tenure of their
incumbent governments. The International bank'now has over fifty :nemoer
countries. Since governmental administrations are always changing somewhere
in the world, the Batik would find itself in a constant state of instability
as each member country took advantage of its six-month period to reconsider
adherence to the institution. It is difficult to see how a bank so constituted
could expect to maintain the confidence of the investing community to which it
mast look for the major part of its loanable funds.
Apart from the major executive agreements described above, which were both
entered into under explicit congressional authorisation, there are a number of
agreements -of lesser significance affecting day-to-day administrative responsi
bilities of the Treasury Department in the foreign financial field which might
be affected by congressional regulation* Indeed, under the language of S* I • Res,
1, Section 4 , executive agreements, if the proposed amendment becomes effective,
could not be made at all until the Congress had acted to prescribe the manner
and extent of making such agreements. Some examples of the wide variety of
detailed agreements of this character ares agreements 'under the Trading with
the Enemy Act for handling conflicting custodian problems and certifications
necessary to establish beneficial ownership of financial assets, agreements
with foreign central banks covering the establishment of treasurer’s checking
accounts in foreign banking institutions, and agreements with respect to uses
of balances of foreign currencies which may have been acquired as a result of
agreements such as those delaing with the disposal of surplus property.
International Finance
2
<n>ft
«£. 0
TREATIES
AMD EXECUTIVE AGREEMENTS AFFECTING COASTGUARD OPERATIONS
The o p e r a tio n s o f th e C o ast Guard, in v o lv e a c o n s id e r a b le number o f
tr e a ti e s and e x e c u t i v e ag reem en ts d e a li n g w ith s u b j e c t s su ch a s m aritim e
sa fe ty , coirmuni c a t i o n s , a v i a t i o n , and c o n s e r v a tio n o f f i s h e r i e s .
These
agreements a r e t y p i c a l l y v e r y t e c h n i c a l i n c h a r a c t e r , an d , f o r th e m ost
p a rt, would n o t be d i r e c t l y a f f e c t e d by th e p r o v i s io n s o f S . J , R e s . 1 o r
S. J 9 R e s. b3> s i n c e th e y do n o t in v o lv e r e g u l a t o r y m easu res a f f e c t i n g p e r
sons w ith in th e U n ite d S t a t e s .
B u t t h e r e a r e two t r e a t i e s w hich do h av e
im portant s i g n i f i c a n c e i n th e r e g u l a t o r y f i e l d , and t h e s e w ould be a f f e c t e d
d if f e r e n tly b y th e p ro p o sed amendments.
S e c tio n 2 o f S . J . R e s . 1 f o r b i d s a t r e a t y w hich a u t h o r i z e s o r p e rm its
a fo re ig n power o r an i n t e r n a t i o n a l o r g a n i z a t i o n » to s u p e r v i s e , c o n t r o l , o r
ad ju d icate r i g h t s o f c i t i z e n s o f th e U n ite d S t a t e s ” o r o th e r m a tte r s » e s s e n
t i a l l y w ith in th e d o m e stic J u r i s d i c t i o n o f th e U n ite d S t a t e s » . Under th e
Telecommunications C onvention o f 19k7?j th e r e g i s t r a t i o n o f f r e q u e n c i e s w ith
the I n t e r n a t i o n a l F req u en cy R e g i s t r a t i o n B oard endows th e f i r s t n a ti o n w hich
is p e rm itte d t o r e g i s t e r on a p a r t i c u l a r f re q u e n c y w ith a l l r i g h t s t h e r e t o ,
f c # an open fre q u e n c y i s th u s p re -e m p te d by a f o r e i g n n a t i o n , th e f re q u e n c y
is withdrawn from p o s s i b l e u se b y a U n ite d S t a t e s n a t i o n a l . I t may be s a i d
that in t h i s way th e f o r e i g n n a ti o n f i l i n g f o r th e fre q u e n c y and th e i n t e r n a
tion al o r g a n i z a tio n a c c e p tin g t h e r e g i s t r a t i o n i s e x e r c i s i n g c o n t r o l o v e r
United S t a t e s p r o p e r t y r i g h t s i n th e d o m e stic f i e l d .
However, any a c t i o n
which would p r e c lu d e i n t e r n a t i o n a l ag reem en ts o f t h i s k in d would u l t i m a t e l y
leave e a ch s e p a r a t e n a ti o n t o a c t e n t i r e l y in d e p e n d e n tly , and t h e c o n f l i c t s
of freq u en cy u s e , p a r t i c u l a r l y i n a r e a s i n c l o s e p r o x im ity to o t h e r n a t i o n s ,
could r e s u l t o n ly i n ch ao s i n th e f i e l d o f r a d io co m m u n icatio n s.
The I n t e r n a t i o n a l C i v i l A v ia tio n C onvention makes d i f f e r e n t arra n g e m e n ts
in a somewhat r e l a t e d f i e l d , w hich would a p p a r e n tly n o t ru n a f o u l o f t h e c i t e d
provision o f S . J . R e s , 1 .
The ICAG o r g a n i z a t i o n e s t a b l i s h e s "recommended
p ra ctice s » a s t o th e o p e r a tio n o f a i r c r a f t i n i n t e r n a t i o n a l f l i g h t , in c lu d in g
q u a lif ic a tio n s o f p e r s o n n e l.
The I n t e r n a t i o n a l O r g a n iz a tio n u rg e s a l l member
nations to conform t o t h e s e "recommended p r a c t i c e s " , b u t any n a ti o n i s p r i v i l e g e d
to f i l e a n o t i c e o f n o n -co m p lia n ce w ith any p a r t i c u l a r reco m m en d atio n , i n w hich
case, th e n a tio n f i l i n g su ch n o t i c e i s n o t o b l i g a t e d i n any way to co irp ly w ith
the "recommended p r a c t i c e " .
A n o th er s i m i l a r exam ple i s th e p ro p o sed Rome Con-^
vention d e a lin g w ith damage ca u se d b y f o r e i g n a i r c r a f t to t h i r d p a r t i e s on
the s u rfa c e o f th e e a r t h and n e g o t i a t e d w ith in th e fram ew ork o f ICAO. A t a
convention h e ld i n Rome l a s t O c to b e r, d e l e g a t e s fro m o th e r c o u n t r i e s a g re e d t o
a proposed C onvention t h a t i s e n t i r e l y in a c c e p ta b 3 .e t o th e U n ite d S t a t e s .
Our
delegation d id n o t s ig n and a p p a r e n tly t h e r e i s no i n c l i n a t i o n t o s ig n a t a
la te r d a te and s u b s e q u e n tly r a t i f y t h i s C o n v en tio n . The r e a s o n i s t h a t c e r t a i n
righ ts o f th e U n ite d S t a t e s would be a d v e r s e ly a f f e c t e d . Even though t h i s Con
vention i s r a t i f i e d by a l l o th e r n a ti o n s engaged i n i n t e r n a t i o n a l a v i a t i o n , i t
will n ot a f f e c t th e U n ite d S t a t e s i n any w ay, w h eth er t h i r d p a r t i e s on t h e s u r
face a re i n th e U n ite d S t a t e s o r i n a f o r e i g n c o u n tr y ; n o r w ould th e n a t i o n a l i t y
C o a st Guard - 1
on o
¿he
of th e a i r c r a f t make any d i f f e r e n c e .
In t h i s f i e l d , w h ile t h e r e i s o b viou s
im portance t o i n t e r n a t i o n a l u n if o r m ity , th e n eed f o r common a c c e p ta n c e i s n o t
as s h a r p ly p r e s e n te d a s i n th e c a s e o f two b r o a d c a s t in g s t a t i o n s t r y i n g to u se
the same fre q u e n c y a t th e same tim e«
T here i s appended h e r e to a l i s t o f t r e a t i e s and e x e c u t i v e ag reem en ts
a f f e c t i n g o p e r a tio n s o f th e C o a st Guard to i n d i c a t e th e wide v a r i e t y o f i t s
a c t i v i t i e s in v o lv in g r e l a t i o n s h i p s w ith f o r e i g n c o u n t r i e s .
C o ast Guard - 2
T r e a t i e s and C on v en tio n s r a t i f i e d by th e P r e s i d e n t
w ith th e a d v ic e and c o n s e n t o f th e S e n a te
M aritim e S a f e t y
i n t e r n a t i o n a l C o n v en tio n s f o r th e S a f e t y o f L i f e a t S ea* (1 9 lU )
(1929) (191*8)
These C o n v en tio n s a r e th e b a s i c docum ents c o n t r o l l i n g r e g u l a t i o n s
.for th e s a f e t y o f l i f e a t s e a on th e i n t e r n a t i o n a l l e v e l *
They in c lu d e
p r o v is io n s r e l a t i n g t o th e c o n s t r u c t i o n o f v e s s e l s * l i f e - s a v i n g a p p l i
ances* com m u n ication s re q u ire m e n ts* th e c a r r i a g e o f g r a i n and o th e r
s p e c ia l ty p e c a r g o e s * b a s i c p r o v i s io n s f o r r u l e s t o p r e v e n t c o l l i s i o n s *
and p r o v i s io n s f o r th e e s ta b lis h m e n t and m a in ten an ce o f th e i n t e r n a t i o n a l
ic e p a t r o l *
I n t e r n a t i o n a l Load L in e C onvention*
United S t a t e s Ju n e 1 0 , 1 9 3 1 #
London 1 9 3 0 ,
R a t i f i e d by th e
T r e a ty betw een th e U n ited S t a t e s and Canada d e f in in g c e r t a i n w a te rs
of th e w e st c o a s t c f N o rth A m erica a s " s h e l t e r e d w a t e r s ."
R a tific a tio n
exchanged 26 J u l y 193U *
O f f i c e r s r Competency C e r t i f i c a t e s C o n v en tio n ,
the U n ited S t a t e s O cto b er 2 9 * 1 9 3 9 *
Minimum Age C o n v en tio n (R e v is e d 1 9 3 6 )
S ta te s d e p o s ite d on O cto b e r 29* 1 9 3 8 #
1936,
R a t i f i e d by
R a t i f i c a t i o n by th e U n ited
Com m unications
S a f e t y o f L i f e a t Sea C o n v en tio n s*
(1 9 l U ) ( 1 9 2 9 ) ( 1 9 ^ 8 )
I n t e r n a t i o n a l C i v i l A v ia tio n C onvention* C h ic a g o . S igned December 7 ,
19UU> e f f e c t i v e A p r il h* 19U7* In im p le m e n ta tio n o f th e C i v i l A v ia tio n
Convention many i n t e r n a t i o n a l g a th e r in g s * r e g i o n a l m e e tin g s* som etim es
b i l a t e r a l , som etim es u n i l a t e r a l , have been h e ld t o work o u t th e m yriad
of t e c h n i c a l d e t a i l s n e c e s s a r y t o ¡make a c i v i l i n t e r n a t i o n a l a v i a t i o n
o r g a n is a tio n f u n c t i o n .
I n t e r n a t i o n a l T e le communiea t i e n s C on ven tion * A t l a n t i c C i t y ,
October 2 , 19U 7* R a t i f i c a t i o n a d v is e d by th e S e n a te I 9I4.S,
S ig n ed
To im plem ent th e T eleco m m u n icatio n s C o n v e n tio n , A t l a n t i c C i t y , 19U7*
(above) an E x t r a o r d i n a r y A d m in is tr a tiv e R adio C o n feren ce was h e ld i n Geneva
in I 9I4.9 t o b r in g i n t o f o r c e a t a b l e c f fre q u e n c y a l l o c a t i o n s and t o
C o a st Guard -
3
make o th e r t e c h n i c a l r e g u l a t i o n s *
T h is i s an exam ple o f th e ty p e
o f d e t a i l t h a t m ust be worked o u t by su c c e e d in g c o n f e r e n c e s under
ba&ic t r e a t i e s .
C o n v en tio n s betw een th e U n ited S t a t e s and o th e r A m erican
c o u n tr i e s r e l a t i n g t o co m m unications m a t t e r s , H avana, 191*7* R a t i f i e d
by th e U n ited S t a t e s Ju n e 3 0 , 1 9 3 8 ,
To im plem ent t h i s C on ven tion
o th e r g a th e r in g s have b een h e ld f o r t h e p u rp o se o f w orking o u t t e c h n i c a l
d e ta ils *
The l a s t o f th e s e was th e F o u rth I n te r -A m e r ic a n C o n feren ce th e
r e p o r t o f w hich was s ig n e d a t W ashington J u l y 9 , 19l*9.
A v ia tio n
I n t e r n a t i o n a l C i v i l A v ia tio n C o n v en tio n , C h ic a g o , 19l*i*t Sign ed
December 7 , 1 9l*U, e f f e c t i v e A % ril 1)4, 19l*7.
I n im p le m e n ta tio n o f
th e C i v i l A v ia tio n C onvention in n u m erab le i n t e r n a t i o n a l g a t h e r i n g s ,
r e g io n a l m e e tin g s , som etim es b i l a t e r a l , som etim es u n i l a t e r a l , have
been h e ld t o work ou t th e m y riad o f t e c h n i c a l d e t a i l s n e c e s s a r y t c
make a c i v i l i n t e r n a t i o n a l a v i a t i o n o r g a n i z a tio n f u n c t i o n .
C o n serv a t i o n
C o n v en tio n betw een th e U n ited S t a t e s and o th e r powers f o r th e
r e g u la tio n o f w h a lin g . R a t i f i e d by th e U n ited S t a t e s June 1 7 , 1 9 3 2 .
C on vention betw een th e U n ited S t a t e s and Canada r e v i s i n g th e
Convention f o r th e P r e s e r v a t i o n o f H a lib u t F i s h e r i e s o f th e N orth
P a c i f i c Ocean and B e rin g Sea* R a t i f i c a t i o n a d v is e d by th e S en ate
March 2 3 , 1 9 3 7 .
C on ven tion betw een th e U n ited S t a t e s and o th e r pow ers f o r th e
p r e s e r v a tio n and p r o t e c t i o n o f th e f u r s e a l s and s e a o t t e r w hich fre q u e n t
the w a te rs ©f th e N orth P a c i f i c Ocean* R a t i f i e d November 2l*, 1 9 1 1 .
G en eral
C on vention c o n c e rn in g th e boundary w a te rs betw een th e U nited
S ta te s and Canada*
T r e a ty S e r i e s No* 51*8, 36 S t a t . 2l*51*. R a t i f i e d
by th e U n ited S t a t e s May 5 , 1 9 1 0 *
C o a st Guard - !*•
E x e c u tiv e A greem ents
M aritim e S a f e t y
The exch an g e o.f n o te s betw een U n ited S t a t e s and Canada i n r e g a rd
to r e c i p r o c a l exem p tion o f v e s s e l s from i n s p e c t i o n and t h e a b o l i t i o n
o f i n s p e c t i o n f e e s « A p r i l and May, 1 9 0 5 .
Com m unications
A greem ent betw een U n ited S t a t e s and Canada r e l a t i v e t o p ro m otion
o f s a f e t y on th e G re a t Lakes by means o f ra d io « M arch , 1952«
A ids t o N a v ig a tio n
L e t t e r s and n o te s o v e r th e p e r io d o f th e l a s t t e n y e a r s c o n c e rn in g
th e use o f la n d a t Bona V i s t a , Newfoundland, a s a L o ran s t a t i o n .
This
exchange o f n o te s r e s u l t e d i n an ag reem en t f o r th e u se o f th e la n d f o r
th i s p u rp o se*
A greem ent d a te d March l i t , 191*7 betw een U n ited S t a t e s and R ep u b lic
of P h il ip p in e s c o n c e rn in g c e r t a i n m i l i t a r y b a se s $ co v e re d i n t h i s
a g re e m e n t, i s th e a u t h o r i z a t i o n f o r th e use o f c e r t a i n s i t e s i n th e
P h ilip p in e I s l a n d s f o r L o ran s t a t i o n s *
Exch ange o f n o te s betw een Panama and th e U n ited S t a t e s (N avy and
C oast G uard) r e l a t i n g t o th e u se o f c e r t a i n p r o p e r ty a t Cape M ala,
Canal Z one, a s a l i g h t s t a t i o n and r a d io b eaco n *
C o n feren ce betw een R e p r e s e n ta t iv e s o f th e U n ited S t a t e s ( L i g h t
House S e r v i c e ) and Canada (D ep artm en t o f M a rin e ) r e l a t i v e t o th e c o
o r d in a tio n o f m a ritim e r a d io b eaco n s betw een U n ited S t a t e s and C anada,
Recommended May 1 8 , 1935$ became e f f e c t i v e December 1 , 1 9 3 5 *
N otes exch an g ed betw een th e U n ited S t a t e s (D ep artm en t o f S t a t e ) and
G reat B r i t a i n ( B r i t i s h A m bassador) r e l a t i v e t o th e m ain ten an ce o f n a v i
g a tio n a l m arks in th e v i c i n i t y o f M a n tin e lla S h o al o f f th e n o rth w e s t p o in t
o f th e L i t t l e Bahama Bank,
These a id s a r e m a in ta in e d by th e U n ited S t a t e s
but p a id f o r by G re a t B r i t a i n ,
(1 9 2 0 )
A greem ent e n te r e d i n t o betw een U n ited S t a t e s (D ep artm en t o f S t a t e )
and Canada ( M i n i s t e r o f M arine and F i s h e r i e s ) r e l a t i v e t o a id s t o n a v i
g a tio n i n th e lo w e r D e t r o i t R i v e r , May 1 0 , 1 9 1 1 .
G en eral
A greem ent e n te r e d i n t o betw een U n ited S t a t e s (D ep artm en t o f S t a t e )
and C anada, a s th e r e s u l t o f an exch an g e o f n o t e s , r e l a t i n g t o th e s i z e
and number o f n a v a l v e s s e l s on t h e G re a t L a k e s .
(1 8 1 7 )
( T r e a t i e s and
C onventions V o l, 1 , p , 6 2 8 )
C o a st Guard - 5
MEMORANDUM ON THE EFFECT OF S . J . R ES. 1 AND
S . J . R ES. k3 ON TAX TREATIES
S e c t i o n 3 ©f S . J * Res • X and S e c t i o n 1 ©f S , J • Res • 1|3 p ro v id e
t h a t t r e a t i e s s h a l l be e f f e c t i v e a s i n t e r n a l law o n ly th ro u g h th e
en actm en t o f a p p r o p r i a t e l e g i s l a t i o n by C o n g re s s . T h is p r o v i s i o n
would unduly d e la y th e consum m ation o f d e s i r a b l e t a x t r e a t i e s and
t r e a t i e s h a v in g t a x e f f e c t s •
A t th e p r e s e n t t i m e , t h e D epartm ent i s p r i n c i p a l l y co n ce rn e d
w ith t r e a t i e s t o re d u c e i n t e r n a t i o n a l d o u b le t a x a t i o n i n t h e f i e l d s
o f in com e, e s t a t e and g i f t t a x e s *
I t a l s o p a r t i c i p a t e s in c o n s u l a r
c o n v e n tio n s , th e p u rp o se o f which i s t o p r o v i d e , among o t h e r t h i n g s ,
f o r t a x tr e a tm e n t on a r e c i p r o c a l b a s i s o f c o n s u la r o f f i c i a l s un d er
F e d e r a l and S t a t e la w sj and in t r e a t i e s o f f r i e n d s h i p , commerce and
n a v i g a t i o n , t o p r o v i d e , among o th e r t h i n g s , f o r th e f a i r and e q u i t
a b le t a x t r e a t m e n t , ©n a r e c i p r o c a l b a s i s o f o u r c i t i z e n s and th o s e
of f o r e i g n g o v e rn m e n ts.
T r e a t i e s t o re d u c e i n t e r n a t i o n a l d o u b le t a x a t i o n g e n e r a l l y
c o n ta in r e c i p r o c a l p r o v i s i o n s , w h ich o p e r a te t o t h e b e n e f i t ©f o u r
c i t i z e n s . T hus, su ch c o n v e n tio n s may re d u c e d o u b le t a x a t i o n b y
d e lim itin g th e b a s i s ®f t a x a t i o n , su ch a s by r e q u i r i n g a perm anent
e s ta b lis h m e n t b e f© re one s t a t e may t a x th e b u s in e s s incom e o f an
e n t e r p r i s e o f a n o th e r s t a t e , ®r
p e r m itt in g a r e s i d e n t o f a n o th e r
s t a t e t o p ay t a x on a n e t incom e b a s i s in c a s e s l i k e r e n t a l s and
r o y a l t i e s i n s t e a d o f on a g r o s s incom e b a s i s , o r by s e t t i n g f o r t h
s i t u s r u l e s g o v e rn in g t h e a p p l i c a t i o n o f t a x i n t h e c a s e o f t a x on
e s t a t e s o r g i f t s . They may .red u ce dou b le t a x a t i o n by exem pting ©r
re d u cin g th e t a x @n c e r t a i n e a r n in g s , su ch as by exem p tin g from
t a x th e e a r n in g s fro m s h ip s and a i r c r a f t d e r iv e d by r e s i d e n t o f th e
o th e r s t a t e , ©r b y re d u c in g th e t a x r a t e cn r o y a l t i e s . Such con
v e n tio n s a l s o p e r m it t h e r e c i p r o c a l e x ch a n g e o f h e lp f u l t a x in fo rm a
t i o n and p ro v id e f o r c o o p e r a tio n i n r e s o l v i n g double t a x problem s
under th e p r i n c i p l e s o f a c o n v e n tio n « I t would seem u n d e s ir a b le t®
im p air e x p e d it io u s co m p le tio n o f th e s e t r e a t i e s .
A t t h e p r e s e n t tim e , t r e a t i e s f o r th e a v o id a n ce ©f double t a x a
t i o n ©f incom e a r e in e f f e c t w ith C anada, Denmark, F in l a n d , F r a n c e ,
I r e l a n d , N e th e rla n d s , New Z e a la n d , Norway, Sweden, S w itz e r la n d , Union
©f S ou th A f r i c a , and U n ited Kingdom. T r e a t i e s f o r th e av o id a n ce o f
double t a x i n t h e c a s e o f d e a th d u t i e s a r e i n e f f e c t w ith C anada,
F in la n d , F r a n c e , I r e l a n d , Norway, S w itz e r la n d , Union o f Sou th A f r i c a ,
and U n ited Kingdom. T r e a t i e s w ith B elgium and G re e ce have been
sign ed and a r e a w a itin g r a t i f i c a t i o n .
In a d d i t i o n t h e D epartm ent i s
now engaged i n f u r t h e r t r e a t y n e g o t i a t i o n s w ith many a d d i t i o n a l
c o u n trie s .
T ax - 1
Treaties to eliminate double taxation are carefully scrutinized
by the Senate* In many cases public hearings are held thereon and
comments of interested parties solicited and received. To require
approval of a treaty by the Congress after the Senate has already
consented thereto would necessarily slow down and perhaps seriously
hamper the treaty process in this area.
The Congress has sanctioned the use of treaties to modify
internal revenue law. Thus, section 22 (b) (7) of the Internal Reve
nue Code excludes from gross income and hence exempts from income
tax ’’income of any kind, to the extent required by any treaty obliga
tion of the United S t a t e s M o r e o v e r , Congress has consistently
recognized and approved the modification of internal revenue laws by
specific provisions in the Revenue Acts amending the Internal Revenue
Code. These provisions make inapplicable such amendments to any case
where they would be contrary to any treaty obligation of the United
States. See e.g. section 6l£, Revenue Act of 1951»
Section 1 of S •J . Res. h3 also provides that ”a treaty shall
become effective as internal law in the United States only through
legislation which would be valid in the absence of treaty.” The
tax provisions of treaties of friendship, commerce, and navigation,
and consular conventions affect the tax status of nationals, and con
sular officers of other countries under state laws. Under the pro
visions of Section 1 of S .J . Res. 13, the tax provisions of such con
ventions may not be valid in the absence of further State ratification.
The requirement of State concurrence to treaties may subordinate our
national interests in this field to the local interests of a particular
state. In any case, it would unduly delay consummation of such
treaties, and may discourage their negotiation.
Tax - 2
- 3 -
m m
su b je ct to e s ta te *
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 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 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 an y S t a t e , o r any o f th e
p o s s e s s io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s a re
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s 1;2 and 117 ( a )
( 1 ) o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n l l £ o f th e Revenue A ct o f 1 9 U l, th e amount o f d isco u n t
a t w h ich b i l l s
is s u e d h ereu n d er a r e s o ld s h a l l n o t be c o n s id e re d to
a c c r u e u n t i l such b i l l s
s h a l l be s o l d , redeem ed o r o th e rw is e d isp o se d o f ,
and such b i l l s a r e ex clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
Accord
in s u ra n c e com panies)
is s u e d h ereu n d er need in c lu d e in h is income t a x r e t u r n o n ly th e d iffe re n c e
b etw een th e p r i c e p a id f o r such 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 seq u en 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 le
o r red em p tio n a t m a tu r it y d u rin g th e t a x a b l e y e a r f o r w hich th e r e tu 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 re a s u ry D epartm ent C i r c u l a r No. lj.18, a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g ov ern th e c o n d itio n s o f
th e ir is su e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
Reserve Bank or Branch.
&
-
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 .
2
-
T enders from o t h e r s m ust be accompanied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s t h e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 range
o f a c c e p te d b i d s .
Those su b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 t h e T r e a s u r y e x p r e s s l y rese rv e s
th e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 t o th 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 te 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 ic 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 ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th ree
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s must be made o r co m p leted a t th e F e d e r a l Re
A p ril
19^3
s i*1 c a s h o r o t h e r im m ed iately a v a ila b le
:
j a pe
funds o r in a l i k e f a c e amount o f T re a s u ry b i l l s m a tu rin g
April l6, 1953
s e r v e Bank on
Cash and exch an g e te n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
Cash ad ju stm en 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 rin g b i l l s
a c c e p te d in exch an ge and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem ption,
a s s u c h , and l o s s from th 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 re a s u ry 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 s u c h , un d er th e I n t e r n a l Revenue
Code, o r law s am endatory o r su p p lem en tary t h e r e t o .
The b i l l s s h a l l be
MKXMXXX
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 9 3 1 9 5 3
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 lic n o t i c e , i n v i t e s te n d e rs
f o r $ 1 ,| {0 Q ,0 0 0 ,0 0 0
, o r th e re a b o u ts , o f
9 1 -d a y T r e a s u r y b i l l s , f o r
c a s h and i n exch an ge f o r T re a s u ry b i l l s m atu rin g
th e amount o f $ l.jiO Q .1 6 6 .0 0 0
April l6. 1953______, in
» t o be is 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 p ro v id e d .
o f t h i s s e r i e s w i l l b e d a te d
The b i l l s
April 16, 1953
, and w i l l m ature
--------------
when th e f a c e amount w i l l be p a y a b le w ith o u t i n ±0t
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
July 16. 1953
te re s t.
$ 1 , 0 0 0 , $ 5 , 0 0 0 , | 1 0 , 0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 , 0 0 0 ,0 0 0
(m a tu r i ty v a lu e ).
T en d ers 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 ran ch es 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 rd ti m e ,
M
Monday. April 13, 1953 »
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in th e c a s e o f com p eti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re 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 t h r e e 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 sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l e n v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e serv e Banks 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 ers th a n banking 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 t o subm 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and re co g n iz e d
RELEASE MORNING: -NEWSPAPERS,
Thursday, April ■9, 19 5 3
H-80
The Secretary of; the Treasury, by this public notic e , .invites <
tenders for $1,400,000,000, or thereabouts, of 9 1 -day Treasury bills,
for cash and 3n- exchange for Treasury bills m a t u r i n g April l£;
, 1953*.
in the amount of $1,400,166,000, to be issued on a discount basis
under competitive- and non-competitive bidding as h e r e i n a f t e r provided.
The bills o f this series will be dated April 16, 1953> and will
mature. July l6, 1933/' «when the face amount will be payable without
interest;;f T h e y will be issued in bearer form only, a n d 'in
:. -•& ",o =
denominations of $1,000, $5,000, $10,000, $100,000,. $500.,000, and
$1,000, 000 (maturity v a l u e ).
’
Tenders will be r e c e i v e d at F e d e r a l Reserve. B a n k s a n d Branches,
up to the. c l o s i n g hour, two o ’c l o c k p Am . , E a s t e r n ¿Standard t i m e , .. *>
Monday, April 13* 1933*
T e n d e r s wil l not be r e c e i v e d at the T r e a s u r y
Department, W a s h i ngton.
E a c h t e n d e r m u s t be f o r *a n e v e n m u l t i p l e of
$1,000, a n d in the case of c o m p e t i t i v e t e n d e r s the p r i c e o f f e r e d m u s t
be expressed on the b a s i s of 100 , w i t h not m o r e »t h a n three, decimals,
e. g., 99.925.
F r a c t i o n s m a y not b e used.
It is u r g e d that te n d e r s
be made on the p r i n t e d f o r m s and f o r w a r d e d in the special e n v e l o p e s
which will be s u p p l i e d b y F e d e r a l R e s e r v e B a n k s or B r a n c h e s o n
application therefor.
Others t h a n b a n k i n g i n s t i t u t i o n s will not be p e r m i t t e d to submit
tenders e x c e p t f o r t h e i r ow n account.
T e n d e r s wil l be r e c e i v e d
without d e p osit f r o m i n c o r p o r a t e d b a n k s a n d t r ust c o m p a n i e s a nd f r o m
responsible a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t securities.
Tenders
from others m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n d e r s are
accompanied b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or trust company.
Immediately a f t e r the c l o s i n g hour, t e n d e r s will be o p e n e d at the
Federal R e s e r v e B a n k s and Branches, f o l l o w i n g w h i c h p u b l i c a n n o u n c e m e n t
will be made b y the S e c r e t a r y of the T r e a s u r y of the a m o u n t a n d p r i c e
range of a c c e p t e d bids.
T h o s e s u b m i t t i n g t e n d e r s wil l be a d v i s e d of
the acceptance or r e j e c t i o n thereof.
The S e c r e t a r y of the T r e a s u r y
expressly r e s e r v e s the right to a c c e p t or r e j e c t a n y or all tenders,
in whole or in part, a n d h is a c t i o n in a n y such r e s p e c t shall be
tone A Subject to t h ese r e s e r v a t i o n s , n o n - c o m p e t i t i v e t e n d e r s f or
$¿00,000 or less w i t h o u t stated p r i c e f r o m a n y one b i d d e r will be
ccepted in full at the a v e r a g e p r i c e (in three d e c i m a l s ) of a c c e p t e d
ompetltive bids.
S e t t l e m e n t f o r a c c e p t e d t e n d e r s in a c c o r d a n c e w i t h
the bids must be made or completed at the Federal Reserve Bank on
April 1 6 , 1953* in cash or other immediately available funds or in
a like face amount of Treasury bills mat u r i n g April .16, 1953.
Cash
and exchange tenders will receive equal "treatment.
Cash adjustments
will be made for differences between the p ar value of maturing billis
accepted in exchange and the issue price tof the n e w bills.
The inco m e d e r i v e d f r o m T r e a s u r y bills, w h e t h e r in t e r e s t or gain
f r o m the sale or o t h e r d i s p o s i t i o n o f ; t h e bills, shall n ot have any
exemption* as such, a n d loss f r o m :.the sale o r o t h e r d i s p o s i t i o n of
T r e a s u r y b i l l s - s h a l l not h ave a n y spécial treatment, as such, under
the I n t ernal R e v e n u e Code, o r laws-.amendatory o r s u p p l e m e n t a r y
thereto..-. The b i l l s shall be subject t o estate^ inheritance, gift or
o t h e r e x c i se .t a x e s w h e t h e r f e d e r a l ro r State, |but- shall be exempt
f r o m all t a x a t i o n n o w or h è r è a f t é r i m p o s e d o n the p r i n c i p a l or
i n t e r e s t t h e r e o f b y a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y a n y l o c a l .b a l i n g a u t h o r i t y ;
F o r p u r p o s e s of
t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y b i l l s are originally
sold b y the U n i t e d States shall be c o n s i d e r e d to be interest.
Under
S e c t i o n s 42 a n d 117 (a) (1) of ¿he .Internal R e v e n u e Code, as amended
b y S e c t i o n 115 of the R e v e n u e ;Adf
,l$fti/¿the a m o u n t of discount
at w h i c h b i l l s -,issued h e r e u n d e r "¿re.sc^ld-shall no t be considered to
a c c r u e u n t i l suc h b i l l s shall be sold, r e d e e m e d or o t h e r w i s e disposed
of, a n d such b i l l s are e x c l u d e d f r o m c o n s i d é r a t i o n as capital assets.
Accordingly.,, the o w n e r of T r e a s u r y b i l l s (other t h a n life insurance
c o m p a n i e s ) i s sued h e r e u n d e r n e e d in c l u d e in his. inco m e t a x return
o n l y the d i f f e r e n c e b e t w e e n the p r i p e p a i d f o r such bills, whether
o n o r i g i n a l issue or o n s u b s e q u e n t pur c h a s e , a nd the a m o u n t actually
r e c e i v e d e i t h e r u p o n sale or .r e d e m p t i o n at m a t u r i t y d u r i n g the
t a x a b l e y e a r f o r w h i c h the r e t u r n is m a d e , a s , o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t Circulai* Nq * :4l 6 > :as a m e n d e d , a n d this
n o t ice, p r e s c r i b e the terms of the T r e a s u r y b i l l s a nd g o v e r n the
c o n d i t i o n s o f . t h e i r issue.
C o pies of the c i r c u l a r m a y be obtained
f r o m a n y Fe d e r a l R e s e r v e B a n k 'or ‘B r a n c h ^
iM
* Z
SCS
H-81
'^gìsstìsu.JŒE
smmtem of tfeo mumxr Wm^my mmmmà today Itel on Iprtl 13,
tbo M a n n y « I H «fte t e eooh «ssbeeriftlosi afsproKtetely H Itlltoi
of > ^ b portoni folly M 3tettó93Mi tent-tea f*oooo*y tonte, doted ffayI*
1953,
i»teriisg te e 1S# trig o n i m itili» «a or oftor M i 35# 357$*
Ih U offering, tocttbar «ite teerooo » In «eol&y offerings of fmsmxf
Mila# io i t a l i to «eoi ti» «uè modo of about f i M ili ari for il»
of Ito floool i n r ondino M o 3D*
attract
fMo M i im èm&mmà to :t»iui^jri«iiiTM ri^ncf0 ^ o » o «Mteeo oo
thsr ooooort^fìn
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Ì toottlwtlnoo m Ilio teonrazsoo empente«,
oovtego bonko# pmdaa tela# «lo* f i te iU ta te ndmolpticii* I r
M oo teoUtnttens end teH rttelo* p p M i t e ib i tendo MT 3» nidi
g re « posted of 3 meteo t w teo doto of lo rn * steoortpitooo twm
i
__ ^ ___ _ « 0 1 to Halted to * pmrnekam «f te rtr tino dopeolto*
TìeTIncreases in bills are expected to be absorbed in substanti]
part
•by corporations and oteor
iooM
teeootoro*
By
WidH*ii»^dte*etteo ito temotego to tewooteft '¿«newa n a w w of
M i troaeasy bepoo to fteonoo ito modo for ttio beiamo of ito
H
om
o ntetwm oKponotOB of boolc credit*
I year
byond
«111 also to «ado motloblo t e oxebango of sortit f
tondo Maturing twm MT 1» t itra it Beendter# H$3*
of Moot tondo M il to i M i tbo prtfHo®i# àmism M i ported inter to
lay 1# to QKOtion§o M
t e tto non nosfcetablo tond ot pmr# with
adJoatr»Rtt to IM 1*
t i i fit i* f ont o M^Mddoro Mo do not «loti to oeoopt tea a n
Marketable M id te oxohengo t e tboir smtorteg tondo M il toso tbo
oppertanlty of rn&smotteo tbo proooodo of noterei F ood 0 onrteoo
<ft«k daidkawMi
■ n w t> B
J fc g ^ g a a i a n a a » %. ■ ■ » i «
muia«ninaiai A 1! « * awn> » a l a i
naa»a f e a t naia a a 4<am
IMMEDIATE RELEASE,
Wednesday, April 8 , 1953.
H - 8l
203
S e c r e t a r y of the T r e a s u r y H u m p h r e y a n n o u n c e d t o d a y that on
April 13, the T r e a s u r y will o f f e r f o r .cash s u b s c r i p t i o n a p p r o x i
mately $1 b i l l i o n of 3 - 1 / 4 p e r c e n t f u l l y m a r k e t a b l e l o n g - t e r m
Treasury bonds, d a t e d M a y 1, 1 9 5 3 / m a t u r i n g June 15, 1983 , and
callable o n or a f t e r June 15, 1978 .
This offering, t o g e t h e r w i t h i n c r e a s e s in w e e k l y o f f e r i n g s
of Treasury bills, is p l a n n e d to m e e t the c a s h n e e d s of about
$2 billion f o r the b a l a n c e of the fisc a l y e a r e n d i n g J une 30 .
This b o n d is d e s i g n e d to a t t r a c t p e o p l e ' s savings as t h e y
accumulate, e s p e c i a l l y in such i n s t i t u t i o n s as life i n s u r a n c e
companies, s a v ings banks, p e n s i o n funds, etc.
To f a c i l i t a t e
subscriptions b y t h ese i n s t i t u t i o n s and individuals, p a y m e n t s fo r
the bonds m a y be m a d e o v e r a p e r i o d of 3 m o n t h s f r o m the dat e of
issue.
S u b s c r i p t i o n s f r o m c o m m e r c i a l b a n k s will be l i m i t e d to
a percentage of t h e i r time deposits.
The i n c r e a s e s in b i l l s are e x p e c t e d to be a b s o r b e d in s u b
stantial p a r t b y c o r p o r a t i o n s and o t h e r n o n - b a n k Investors.
By d i r e c t i n g its b o r r o w i n g to the ge n e r a l s o u rces of f u nds
mentioned, the T r e a s u r y h o p e s to f i n a n c e its n e e d s f o r the b a l a n c e
of the fiscal y e a r w i t h a m i n i m u m e x p a n s i o n of b a n k credit.
The b o n d o f f e r i n g will a l s o be m a d e a v a i l a b l e f o r e x c h a n g e of
Series F and G savings b o n d s m a t u r i n g f r o m M a y 1, t h r o u g h
December, 1953.
H o l d e r s of these b o n d s wil l be g i v e n the privilege,
during the p e r i o d p r i o r to M a y 1, to e x c h a n g e t h e m f o r the n e w
marketable b o n d at par, w i t h in t e r e s t a d j u s t m e n t s to M a y 1.
Eligible F a n d G b o n d h o l d e r s w ho do not w i s h to a c c e p t the n e w
marketable b o n d in e x c h a n g e f or t h e i r m a t u r i n g b o n d s wil l h a v e the
opportunity of r e i n v e s t i n g the p r o c e e d s of m a t u r e d F and G savings
bonds in o t h e r series of s a vings b o n d s c u r r e n t l y o n sale, or to
receive cash p a y ment.
April
Full d e t a i l s of the o f f e r i n g w ill be a v a i l a b l e on Monday,
13 , w h e n the s u b s c r i p t i o n b o o k s will open.
0 O0
• 4
-
As m s su g g ested toy th e A dvisory Com m ittee, th e a u d it
m s con du cted under th e g e n e ra l su p e rv isio n o f a C ontinuing
Committee re p re s e n tin g tooth incom ing and ou tgo in g T reasu ry
o ffic ia ls ,
Members o f th e C ontinuing Committee w ere
M aurice M, Washburn, O ffice o f C o m p tro ller o f C u rren cy,
re p re s e n tin g S e c r e ta r y Humphrey; Eugene 0 , S h rev e, Bureau o f
E n gravin g and P rin tin g re p re s e n tin g form er S e c r e ta r y Snyder;
George R eev es, O ffice o f G eneral C ou n sel, re p re s e n tin g
M rs. Iv y B ak er P r i e s t , T re a s u re r o f th e u n ite d S t a t e s ,
A pproxim ately 370 em ployees o f th e T reasu ry D epartm ent,
d ra fte d from th e Bureau o f th e M int, O ffice o f th e T re a su re r
o f th e U nited S t a te s , and B ureau o f th e P u b lic D ebt, p a rticip a te d
in th e a u d it.
T h irty em ployees o f th e G eneral A ccounting Office
were a ssig n e d toy th e C o m p tro ller G eneral o f th e U nited S ta te s
to o b serv e and rev iew th e work done a t each o f th e v a rio u s
a u d it s i t e s ,
cAll Treasury employees participating
in the audit were
assigned to activities other than those on which they are
regularly employed.
"We, the undersigned, found the assets verified,
to be in full agreement with the assets as indicated
by the Joint Seals affixed to the respective compart-»
menfcs on January 26, 1933«
wIt is the opinion of this Cosnittee that the
same agreement would be found should all of the
compartments be verified."
Special Settlement Committee operations at the other
mint institutions closely paralleled those employed at the
Port Khox depository and confirmed the accuracy of the
Treasury records relating to the monetary asset valued told
¡¡II '
by these institutions*
The General Accounting Office has confirmed the adequacy
of the procedures employed and the manner in which asset
verification was accomplished by the Special Settlement
Committees at each of the mint institutions and at the
Treasurer’s Office in Washington*
■ ■ .
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The audit was performed in accordance with procedures
approved by an Advisory Committee of consultants appointed
by Secretary Humphrey and former Secretary Shyder*
Members of
the Advisory Committee were W* L. Hem ingtey, Chairman of the
St# Louis ;
Executive Committee of the Mercantile Trust Ccmpany,/chaimiani
Fulton Kurts, Chairman of the Board, Tto Pennsylvania Ccmpafly
t?
Philadelphia) Sidney B* Congdon, President, national City Bank |
of Cleveland, Cleveland; James L* Robertson, Member, Board
|
i
of Governors, Federal Reserve System, Washington.
-
31
kt
I
-
tee Fort Xhox gola depoaitory, wtere tee records showed
$12 ,483 *115,360.28 iti gol* tonino» te te eterea la «Mite
compartiaenta, aeveral eompartifients m v m opened te accordane©
ulte agreed~on spot-check procedurea and thè gold t e »
eounted.
ite copnt of approximately 86,000 bara, aaounting
to 3^ *399>629^9^ CTte ounces, valued at $1,203,987*038,28,
m a te exaet agreement «ite thè reeorded contenta of tte
compartaents.
àpproximately
9»000 fee»,
a m t i ^
to atout Ite tesa,
were welghed on special telane* scalea of high sensitivit?
tedicatteg exaet weights te tee httndredth part of a troy
ounce, and again thè resulta were te es&et agreement ulte
te* record*.
k*
a final stop te tee verification procedure* tee
Fort Knox Special Settlement Committee had test assays
made of
*6
gold t e » selected at randa» fresi tee gold whieh
had feeen counted,
tee resulta of tee aaaaya indieated th a t
all gold teated m a of a fteeneaa equal te that appearing te
tee mtet records ani stamped ©a thè partiate? bar® teated,
Gold saaples used for thè teat assays n e » obtained by
drillteg fremi tote tee top ani botte* of »pres e n t a t i » gold
te»,
In eoafirmatloa of thè verificatlo» of gold fettllio» «s e t
v a i » * held te tte Fort Kfcox depoaitory tte dentei s & t t l e m n t
Co&asittee reported, te part, aa follo»?
n0n tee basi* of assaya, your Cossaittee can
positiveXy » p o r t ttet tte gold repreaented, according
to asaay, la at tea Depoaitory. He bave no reason,
teat soave?, to belleve otte? tten, should all) aita fee
assayed, tee » » I t a would fee tee seme.
| e .s
p , . ; O:
Ç/ :
*.
,:
*
1A *
ahortag« of $117.41 on account of cheeks cashed and later
found te hear forced endorsements.
The others# amounting
to only $36.71* were made good by Treasury employees at
the tine of the audit.
TREÂ2
m
<P.
RELEASE SUNDAY NEWSPAPERS.
April 12. 1953.___________
Secretary of the Treasury Hümphrey a z m o w t â today that
an audit and teat count of the gold and silver bullion holdings
of the Government has shorn these holdings to he intact and the
Treasury records of then correct*
to audit report suhnitted by a Special Ccsssittee appointed
Jointly by Secretary Humphrey and former Secretary Snyder
revealed total asset values An the official accounts of the
Treasurer of the United States at the close of business
January 27, 1953 amounted
$30, bba, *15,581*70, consisting of
gold bullion $23,035*9*7*570.9*; silver bullion $2,15**5*2,328.37)
bank deposits $ *,7 *8 ,6 3 8 ,0 9 8 .5 6 ; and coin and currency, etc.
$503,2 8 ?,5 8 3 .8 3 .
In addition, the audit report disclosed $73,13*,708,07*. 92~2/3|
in the form of securities, reserve stocks of unissued currency,
etc. which are held in custody of safekeeping accounts by the
Treasury Department.
Included in this Item are the bonds of
foreign governments received during world War I; securities held
b? the Secretary of the Treasury for Social Security and other
trust funds, collateral to secure Government deposits, etc.
The count of the assets at the mint institutions urns
found to be in agreement with the records, after allowing for
items in transit.
In the Treasurer9s Office at Washington
only minor differences were found.
One of these was a net
TREASURY DEPARTMENT
Information Service
RELEASE S U N D A Y NEWSPAPERS,
A p r i l i ? , 1953.
WASHINGTON, D .C.
OOQ
C Jv »
H-8 2
S e c r e t a r y of the T r e a s u r y H u m p h r e y a n n o u n c e d t o d a y that an
audit and test count of the gold an d s i l v e r b u l l i o n h o l d i n g s of
the G o v e rnment h as s h o w n these h o l d i n g s to be intact and the
Treasury r e c o r d s of t h e m correct.
report submitted by a Special Committee appointed
jointly b y S e c r e t a r y H u m p h r e y a n d f o r m e r S e c r e t a r y S n y d e r r e v e a l e d
total a s set v a l u e s in the o f f i c i a l a c c o u n t s of the T r e a s u r e r of the
th ® c l o s e of b u s l ness J a n u a r y 27, 1953 a m o u n t e d
to $30,442,415,581.70, c o n s i s t i n g of g o l d b u l l i o n $ 23 , 035 ,947,570 94 :
silver b u l l i o n $ 2 , 1 5 4 , 5 4 2 , 3 2 8 . 3 7 ; b a n k d e p o s i t s $ 4 , 7 4 8 , 6 3 8 , 0 9 8 . 5 6 *
and coin an d currency, etc. $ 503 , 287 ,583 .8 3 .
In addition, the a u d i t r e p o r t d i s c l o s e d $ 7 3 , 1 3 4 , 7 0 8 , 0 7 4 . 9 2 - 2 / 3
in the f o r m of securities, r e s e r v e stocks of u n i s s u e d currency,
etc. w h ich are h e l d in c u s t o d y of s a f e k e e p i n g a c c o u n t s b y the
Treasury Department.
I n c l u d e d in this i t e m are the b o n d s of
foreign g o v e r n m e n t s r e c e i v e d d u r i n g W o rld W a r I; s e c u r i t i e s h e l d
by the S e c r e t a r y of the T r e a s u r y f o r Social S e c u r i t y a n d o t h e r
trust funds, c o l l a t e r a l to secure G o v e r n m e n t deposits, etc.
The c o unt of the a s s e t s at the m i n t i n s t i t u t i o n s w as f o u n d
to be in a g r e e m e n t w i t h the records, a f t e r a l l o w i n g
f o r items in
lr!2s i t ’ In the T r e a s u r e r ’s Office at W a s h i n g t o n o n l y m i n o r
?*;;Lefences wer e found.
One of these was a net s h o rtage of
$117.41 on a c c o u n t of checks c a s h e d a nd l a t e r f o und to b e a r f o r g e d
endorsements.
The others, a m o u n t i n g to o n l y $ 36 .7 1 , wer e m a d e
good by T r e a s u r y e m p l o y e e s at the time of the audit.
<ho i.oo ?he p 2rt J?10* gol d depository, w h e r e the r e c o r d s showed
In gol d b u l l i o n to be stored in sealed c o m p a r t
ments, several c o m p a r t m e n t s w e r e o p e n e d in a c c o r d a n c e w i t h a g r e e d - o n
spot-check p r o c e d u r e s and the g o l d b a r s counted.
The count of
approximately 86,000 bars, a m o u n t i n g to 34 ,399,629-685/1000
fjj® ounces, v a l u e d at $ 1 , 2 0 3 , 9 8 7 , 0 3 8 . 2 8 , w as In exact a g r e e m e n t
with the r e c o r d e d c o n t e n t s of the compartments.
$ 1 2 ,4 8 3 ,4 1 5 ,3 6 0 .2 8
A p p r o x i m a t e l y 9,000 bars, a m o u n t i n g to a b out 130 tons, were
weighed on special b a l a n c e scales of h i g h s e n s i t i v i t y I n d i c a t i n g
exsict we i g h t s to the h u n d r e d t h p a r t of a t r o y ounce, a nd a g a i n the
results were in exact a g r e e m e n t w i t h the records.
#As a final step in the v e r i f i c a t i o n p r o c e d u r e s the Port K nox
Special S e t t l e m e n t C o m m i t t e e h a d test a s s a y s m a d e of 26 g old b a r s
selected at r a n d o m f rom the g o l d w h i c h h a d b e e n counted.
The
results of the a s s a y s i n d i c a t e d that all gol d t e s t e d w as of
a fineness equal to that a p p e a r i n g in the m i n t r e c o r d s and stamped
on the p a r t i c u l a r b a r s tested.
G o l d s a m ples u s e d f o r the test
assays w ere o b t a i n e d b y d r i l l i n g f r o m b o t h the top and b o t t o m of
representative g o l d bars.
In c o n f i r m a t i o n of the v e r i f i c a t i o n of gold b u l l i o n a s set
values h e l d in the Port K n o x d e p o s i t o r y the S p e cial S e t t l e m e n t
Committee reported, in part, as follows:
"On the b a s i s of assays, y o u r C o m m i t t e e c an
p o s i t i v e l y r e p o r t that the gold r epresented, a c c o r d i n g
to assay, is at the D e p o s itory.
We h ave no reason,
whatsoever, to b e l i e v e o t h e r than, s h ould a l l m e l t s be
assayed, the r e s u l t s w o u l d be the same.
"We, the under s i g n e d , f o u n d the a s s e t s verified,
to be in full a g r e e m e n t w i t h the a s s e t s as i n d i c a t e d
by the Joint S e als a f f i x e d to the r e s p e c t i v e c o m p a r t
m e n t s o n J a n u a r y 26, 1953.
"It is the o p i n i o n of this C o m m i t t e e that the
same a g r e e m e n t w o u l d be f o u n d shou l d all of the
c o m p a r t m e n t s be v e r i f i e d . "
Special Sett l e m e n t C o m m i t t e e o p e r a t i o n s at the o t h e r m i n t
institutions c l o s e l y p a r a l l e l e d those e m p l o y e d at the Port Knox
depository a nd c o n f i r m e d the a c c u r a c y of the T r e a s u r y r e c o r d s
relating to the m o n e t a r y a s set v a l u e s h e l d b y these institutions.
The General A c c o u n t i n g Office has c o n f i r m e d the a d e q u a c y of
the p r o c e d u r e s e m p l o y e d a n d the m a n n e r in w h i c h a s s e t v e r i f i c a t i o n
was a c c o m p l i s h e d b y the Special S e t t l e m e n t C o m m i t t e e s at e a c h of
the mint i n s t i t u t i o n s a nd at the T r e a s u r e r ’s Office in W ashington.
The a u d i t w a s p e r f o r m e d in a c c o r d a n c e w i t h p r o c e d u r e s a p p r o v e d
by an A d v i s o r y C o m m i t t e e of c o n s u l t a n t s a p p o i n t e d b y S e c r e t a r y
Humphrey a nd f o r m e r S e c r e t a r y Snyder.
M e m b e r s of the A d v i s o r y
Committee wer e W. L. Hemingway, C h a i r m a n of the E x e c u t i v e
Committee of the M e r c a n t i l e Trust Company, St. Louis, chairman;
wm Puiton Kurtz, C h a i r m a n of the Board, The P e n n s y l v a n i a Company,
Philadelphia; S i d n e y B. Congdon, President, N a t ional C i t y B a n k
of Cleveland, Cleveland; James L. Robertson, Member, B o a r d of
Governors, F e d e r a l R e s e r v e System, Washington*
301
- 3 -
As was s u g g e s t e d b y the A d v i s o r y Committee, the a u d i t w as
conducted u n d e r the g e n e r a l s u p e r v i s i o n of a C o n t i n u i n g C o m m ittee
representing b o t h i n c o m i n g a nd o u t g o i n g T r e a s u r y officials.
Members of the C o n t i n u i n g C o m m i t t e e w e r e M a u r i c e M. Washburn,
Office of C o m p t r o l l e r of Currency, r e p r e s e n t i n g S e c r e t a r y Humphrey;
Eugene G. Shreve, B u r e a u of E n g r a v i n g a nd P r i n t i n g , r e p r e s e n t i n g
former S e c r e t a r y Snyder; G e orge Reeves, Office of General Counsel,
representing Mrs. Ivy B a k e r Priest, T r e a s u r e r of the U n i t e d
States.
A p p r o x i m a t e l y 370 e m p l o y e e s of the T r e a s u r y Department, d r a f t e d
from the B u r e a u of the Mint, Office of the T r e a s u r e r of the
United States, a n d B u r e a u of the P u blic Debt, p a r t i c i p a t e d in the
audit.
T h i r t y e m p l o y e e s of the G e n eral A c c o u n t i n g Office wer e
assigned b y t h e ^ C o m p t r o l l e r G e n eral of the U n i t e d S t ates to
observe a nd r e v i e w the w o r k done at e a c h of the v a r i o u s a u d i t sites.
All T r e a s u r y e m p l o y e e s p a r t i c i p a t i n g i n the a u d i t wer e
assigned to a c t i v i t i e s o t h e r t h a n those on w h i c h t h e y are r e g u l a r l y
employed.
0O 0
\
• J •
of the respective D ietriste, te lesee allotment n otices, to receive payment for bond«
a llo tte d , to »elee delivery of beads on full-paid subscriptions allo tte d , sad they
nay Issue la te ría receipts pending delivery of the definitive beads*
2,
the Secretary ©f tho Treasury «ay a t any tin e , or fro« tino to tia a , pre*
e n r
^ scribe supplsnental or amendatory rulos and regulations governing the offering, which
v U l be eonaunieated promptly to the Federal Eeeerve Bam».
g*H. murassi.
Secretary o f tho Treasury*
I!
- T-
fbe fta a l in terest pacatola on tonda naturine toaantor 1» 1 9 5 3 ,v i l i to paid la
*V reguiar eourso on Kay 1 , 1953* bjr stock nailad bar tto Trstotwy Dapartoant. Ito
ra a U n itr of thè fin al in terest paynent* prorided fa r atora a i l i ba paid folloring
accaptanee o f thè toada by toa ageaay tte w jl ehich toa archanga ia nada»
(e ) Sconcata fa r psymnt. --S erica f and 0 tonda tendsred la exctenga must toar
appropriate raqueata fa r paynant in aceardaaoa v ito i t e p re s is i« * o f Traaaury Depcrtnent Clroular He. 530, Ssrento Hsrisioi», aa anaadad, or toa sp ssisl andoramanta
VJI
prorided fa r la Trenoury Depsrtoenfc C lrealar He. 88®, Sarlaad.
la any caca la vhieh
na* tonda in to arar fon», or aev regietered tonda la a n eto » nano, ara doairad, requante fa r paynent nuat to aapplanaatad by epeclfie inatruction» signad by toc
otnstr viso sfigati Ite« r® te * t fo r payaont.
» s m
1.
t m» o r a *
boi©®
Vw freasmry boni* ia r*gi*t©r*d foia wgr b* rogtst#red ©aly a» aothorite
la froaswry B«f>art8***it S te n ta r m . 300, a* suppleaaate «ad m e ttiv i• Bagiatratioa
io ite* orni of osa p tnoo payabX* on daatb io aaother io a l aathoriaed»
boods «r* not rodo«B«blo b*for* «atm rity a i Ite* option ©f th* oiraars.
twwarjr
B®gistar©d
fr*as«ry bonds «ay be transfarrod to * p w ìm w ©aly ap©» propor asoig&soote
Xsawnury boaá*
r*gtst*r*d la t e for» *A o r 8** a*y b* tr*nsf«rr*d ©aXy fp*° «««iga-
mm% by or on b te X f o f botte» oxeopb t e i I f on» ©f t e » is d*o**a*d, an assigiaiast
by o r ©a botealf of tteo a u r r te r wilX bo «cooptai.
A boad rogiotorod io t e tsme of
* s t e r s*y bo a s s i i t e ©aXy by * goardion o r s la ila r r*f> r*# « a t*tte appoiate by
* eoort o f eo»p*t*at Ja r is d io tte o r © te rsi« * d«ly q a a X ifte .
f i*
X.
o im
m v w is m
A* fiscal agaiiis of Ite# n a tte S ta te » F«d«ral loaorvo Banks aro «uteri*««
«od r o é o s t e to r«e*iv* suboeriptione, to ©ateo allo taaats oa t e basta «ad ap to
t e aoooat» t e i e a t e by t e S*or*tary ©f t e fraasary to t e r « à « * l Basar** Ban*8
-
è
-
May 1 io Beeember 1 , 1953» inclveive, which « IH ba aecapteti a i par, and aheuld «e»
company ih« etibeeription, together with any eaah differenee neceasary io «ah« up aa
m
1500 multiple» and «bara Serica f benda ara «tehaegod, by «ny intaraat io ba
eelleeted from thè eubscrib*r.
Saldare of Serica F and 0 benda « H I receive in»
ta ra s i en thè ne« benda a i thè rata of 3-1/& paretai from May 1 , 1953» and interest
adJuetpcRta « iih ra d a c i to benda accepted in exchang© « i l i ba cada aa felle«!«
(a) Sariea F Benda «—Salderà e f Serica
tandared in «xchangc
md aeeepted « i l i
tbenda maturici a lia r
May 1 , 1953»
ba charged aa ameuxxt equivalici io intaraat
Hit iha «atu riiy «alea fje» May 1 te thè reepeetive daiaa e f maturity e f thè Serica F
a i iha ra ta e f 2*53 perdasi par annua aa folleiiat
Benda maturine an
ih# f ir a i day e f
May 1953
HEi 1953
É É I 1953
Augnai 1953
Sapiambar 1953
Octobar 1953
!arrembar 1953
Decomber 1953
Aneuat e f in terest par HDD maturity
«alma te ba
iw m at&aoribar
* - •
10.2155
Q*km
0.6k3O
O.S&SS
1.05T6
1.2650
l.liBOS
(b) Seria« 0 Benda»—Saldare, e f Sariea 0 benda tandared in exchange and accepted
« IH ba eraditad with aeerued in taraat fremi thè Inai precedici in taraat payment date
te May 1 , 1953» a i thè ra ta e f 2-1f t paretai par tana*» aa follavat
Benda maturine an
thè f ir a t dm e f
Hcjr Jf| 3
JOB* 19$)
July 1953
A«pwt 1953
S op tib w 1953
Octobar 1953
Hovaabcr 1953
Dseember 1953
Ammusi e f fin al in taraat par 1100 matar ity valua te ba |fl^d te subacrlber
»1.2500
1.0371
0.8287
0.6lti6
O.lilith
Q.20it9
1.2500
1.0371
2»
Batch«he» «ubfccrlptione »-»-Fiibecrlptlona vili be received at thè Federai Re-
verve Bank* and Branche« «ad et thè Troaoury Department# Washington.
Banking lutti-
tut ione generally* and payiag agente eligible to prove«« benda under Traaaury
Bepartnent Circolar fa* IBS* tevlsad* nay «obnit «xehange eabaerlptlene ter aceount
of cuatomer«.
3.
The Secretare eT thè freeaury r «cerve» thè righi to re je e t any «ubecription,
in vhole or in pari» to «H ot lev» thè» thè amount of bende applied fo ri and to ole««
thè booka ae to any or a ll «ubecription» e t any tino without aoticej and any action
he nay taire la theee reapaeta «hall be fin a l.
Subjeet to thoeo reaarvmtiona, cash
subrcriptione fren com erelal baafcc Sor th o ir ovn aocount may bo allottaci oa a differexst pereentage b atic than eaah «ubecription» fFon other classe» of aufecarlbar«»
and «ubecription« in paynent of vhieh Bnltod Stato» Saviaga Sonda of Serica
f and 9
maturine la thè aentha of ®$f through Deeenhar» 1953$ «re tendored and aeeepted vili
bo allo ttad la fo n «
The bene« o f thè aHetnant on eaah aubacrlptloaa v i l i be
3nr
puhliély annotine©«!* and allotnent noti««« v i l i be eent out prenptly «pon allogeni.
W*
1.
PA1MEBT
Caah Subecriptiona. —Faynent e t par fe r benda allo ttad horounder nay be
vado or eanpleted on or bifore May 1 , 1953» or payaant e t par and accrued interest
fren itoy 1» 1953# nay ba vado a t a*qr tino or tino» thereafter» v lth paynent to ba
fa lly cowpleted noi la i« r than M | 31» 1953*
par #1*000*
One day*a aeorued Intareat ia #0.089
Any quallfied depoeitary v i l i be pernitted to «talee paynent by credit
fe r benda allo ttad to i t for Ita a lf and Ita euetenera up to any assount for vfelch it
«hall ba quallfiad in oxeees of eadating dopoalta# vhon ao notlflad by thè F e rra i
gcierre laide of Ita D latriet.
?,
Exchange Subeerjptlone. ~-Paynent for benda allo ttad hereunder on eachange
aubaeriptione miai ba addo on or before May 1* 1953» or on la to r allotcent* and
ba sada only In United S tatai Faringe
Bende o f Serica
F and
Serica
0 naturine fra»
** 1} *
forwarded to the representatives, which will bo followed i» due couree by fbrwal
receipt fresi the Director of Internal Revenue#
6.
Except ae provided la the preceding paragraph, the bonds will be «object
to the general regulation« of the Treasury Depart*»«»!, now or hereafter prescribed,
governing United
States bond#«
III* BUBSCRXPflOh H D tLDQfHHT
1.
Cash subscriptlor-s#«^Subscriptions will be received at H e Federal Reserve
Eeiffrf end Branches wad at H e treasury Department, Washington.
Commercial bam»,
which for this purpose are defined aa bang« aecepting desiaxid deposit«, nay subnit
subscription« for account of custower«, feat only H a Federal Riserve Bank« and the
treasury Department are authorised to act ae © m e l a i agencies* Others than co»nerelai banks will ant fee permitted to enter subscriptions except for Heir own
account*
Subscriptions from commercial banka for their own account will be received
without deposit, but will be restricted in each case to sa snount not exceeding
5 percent of H e eonfeiaed amount of U n o certificates of deposit (feat only these
Issued in H e names of individuals, and of eerperetiens, associations, and other
organisations not operated for profit), and of savings deposits, as Hewn on H t
bank*s books as of December 31, 1952.
Subscription* from «11 others nust be «ceca*
by payment of 10 percent of H e mount of bende applied for*
litter# payment
f©r bends allotted la to be deferred beyond m y 1, 1953, as provided in Section 29
hereof, delivery of 10 percent of H e total par amount of bonds allotted, adjusted
to the next higher 1500, will fee withheld froa ell subscribers «xeept incorporated
banks and trust companies until payment ffer H e total amount allotted hae been
completed*
In every ease where payment is not so completed H o 10 percent s© with
held shall, upon dselaration wade fey the Secretary of the treasury in his discretion»
fee forfeited to H o United States.
- 3 ~
(b) that the Secretary of the Treasury be authorised to apply the entire proceed«
of redemption to the payment of Federal estate taxes.
Registered bonds submitted for redemption hereunder must be duly assigned to «The
Secretary of the Treasury for redemption, the proceeds to be paid to the Director
of Internal Revenue at _ _ ____________ __ for credit m Federal aetata taxes due
from estate of
♦» Owing to the periodic closing of the transfer
hooka and the impossibility of stopping payment of Interest to tfaa registered owner
during the closed period, registered bonds received after the closing of the books
for payment during such dosed period will be paid only at par with a deduction of
interest from the date of payment to the next interest payment date}!/ bonds re
ceived during the closed period for payment at a data after the books reopen will
be paid at par plus accrued interest from the reopening of the books to the date
of payment*
In either case cheeks for the full six months» interest due on the
last day of the closed period will be forwarded to the owner in due course. All
bonds submitted must be accompanied by Form P3D 1782,3/ properly completed, signed
and sworn to, and by proof of ths representatives1 authority in the form of a court
certificate or a certified copy ©f ths representatives* letters of appointment
issued by the court*
The certificate, or the certification to the letters, must
be under the seal of the court, and except in the ceae of a corporate represents*
fi$a, must contain a statement that the appointment is in full force and be dated
within six months prior to the submission of the bonds, unless ths certifieat# or
letters show that the appointment was made within one year immediately prior to such
submission*
Vpon payment of the bonds appropriate memorandum receipt will b#
P/The iransier "boo'les1'are closed from May 16 to dune 15» end from Hovember 16 to De
cember 15 (both dates inclusive) in each year.
¿/Copies of Form Pi 1782 may be obtained from any Federal Reserve Bank or from the
Treasury Department, Washington, D. C*
-
2
•
part» at par and accrued interest, on any interest day or deys, on b months* notloa
of redemption given in such maimer aa the Secretary of tha Treasury shall prescrites. fi
In eaaa of partial redemption the bonds to be redeemed will be determined by such
»atbod as may tea prescribed by tha Sacratary of tha Treasury.
From tha data of re
demption designated in any such notice, interest on tha bonds ©ailed for redemption
shall ©ease.
2.
the income derived from tha bonds shall be subject to all taxes now or
hereafter imposed under tha Internal Revenue Coda« or laws amendatory' or supplementary]
thereto*
the bond« shall be subject to estate« inheritance« gift or other excise
taxes« whether Federal or State« but shall be exempt from all taxation now or hertaftor imposed on the principal or intareat thereof by any State, or any of the
possessions of the üalted States, or by any local taxing authority*
3*
The bonds will be acceptable to secure deposits of publio moneys*
k*
Bearer bonds with interest coupons attached, and bonds registered as to
principal and interest, will be issued in denomination« of $$00, $1,000, $$,000,
110,000, $100,000, and $1,000,000*
bonde of different denominations
Provision will be made for the interchange of
and of coupon and registered bonds, and for tha
transfer of registered bonds, under rules and regulations prescribed by the lec*
ratary of the Treasury.
$•
f
Any bonds issued hereunder which upon the death of the owner constitute part
^gs estate, will be redeemed at the option of the duly constituted representative
ef the deceased owner's estate, at par and accrued interest to date of payment,»
provided*
(a) that the bonds were actually owned by the decedent at the time of his deathj *
1/An exact half-year *s Interest is computed fbr each f u n half-year period irrespec
tive of the actual number ©f days in the half year* Fbr a fractional part of say »*"
year, computation is on tha baa is of the actual number of days in such half year.
mnm
status
m lussaci
3*4/4 «ww t nmsmt m m m or 1978-83
te
Oetei end tearing internet fra» ter 1, 1951
r a m u » *v m
om m
m ibi m x m m
» a? fui »
m m m m m n 15, M?§
M
m
ì
àcckì®
15, 1983
xbtsbsst
peyable «lnBt lf tm I M n & t e r 15
1953
W
«
M M M N H b
S fitto ## i t e
r>«partn«iit Circolar f#* fll
tehlagteit, Aprii 13, 1953
M I Servio«
Boreali et ite libilo M
1«
o r m B a tf n »
tte Seereterr vf ih» te a m m f$ pwmmnt to thè « e tte rliy of thè Sneoed libarti
1«
Boni Ani, «e «mondai, Invite» «t&sertption«, fra# ih« pnepl« # f ih« Snited State», for
tendo o t ih« United S iete«, deoignated 3*4/4 perenni Trnaimry M i of 1973-83*
aratmt «f ih« piifeli# «¿forteti; ir 11,000,000,000, or iterontettte*
«emuli offoste
tm ?
péli« «uteerlptlon, ih« Sraroterjr «f ite Tronoury
righi io « H o t limitai «ranni« of ih«no tendo io
«dj-u»traente «e
le «èditi«« 1« tòt
««1 forth in
( k ffm r m m t
m m m m
ite
Xnvootaont aceount».
footl&ft tS horoof, fra» telèors «f inètti Siti«« terini»
Boni« ©f Seri«« f «mi i raterieg le Use raethe «f tey tbrougb teoater, 1953*
©f Strimi f «ni f boni» «g®roe«tlng t e
m«y «xehange «tei tende «ith
Htlétrt
ttea «e « m m meliiplo ©f 1500 mnterity v«lt»
#f ih« difformi«© le «tei te atte jjj Ih# mx%
bitte* 1500 multiplo«
OQr
1*
XX.
M M P f f C H OT M B S
thè im i« «H I Imi dnted te r 1# 1953, te i «H I t e
internet t r m ihei dote
e t i t e te i« « f 3 -1 /4 perenni por «ornai, paratole «n e «tedUemiel h««i« on tetefcer 15#
1953, «ni ihereofter m
«© ani hoeorae peyable.
imm 15
«tei Oeoneter 15 le ««eh yner e e lll ite prleolpel
Ite r «H I ««ter« t e e 1 5 , 1583# t e i ray te redeeaed «i
ite optine ©f ite Holted Staimi «e «ni «fio r im m 1 5 , 1978, le « te i« i r le
Subscriptions either for cash o r exchange will be received at F e d e r a l Reserve
Banks and Branches, and at the Treasury. Commorcial banks should enter their sub
scriptions directly with the Federal Reserve Bank of the District in which they are
located, even though payment for or delivery of the bonds allotted is desired in
another District.
Cash subscription books nay be closed at any time without notice» Exchange
subscription books will be open through April 30, 195>3, to permit holders of the
maturing Series F and G Savings Bonds to take advantage of the offering*
The text of the official circular follows:
RELEASE MORNING NEWSPAPERS,
Monday, A p r i l 1 3 , 1953»
S e c r e t a r y o f t h e T r e a s u r y Humphrey announced to d a y th e d e t a i l s o f an o ffe rin g
o f 3 - l / U p e r c e n t f u l l y m a rk e ta b le T re a s u ry b o n d s, t o be d a te d May 1 , 1 9 5 3 . They
w i l l m atu re June l £ , 1 9 8 3 , b u t may b e red eem ed , a t th e o p tio n o f th e U n ited S ta te s , ]
on and a f t e r June 15», 1 9 7 8 .
I n t e r e s t w i l l be p a y a b le on a sem ian n u al b a s i s on De
cem ber 1 5 , 1 9 5 3 , and t h e r e a f t e r on June 3-5 and December 15#
The amount o f t h i s is s u e a l l o t t e d on c a s h s u b s c r i p t i o n s w i l l b e lim ite d to
$ 1 , 0 0 0 , 0 0 0 , 0 0 0 , o r th e re a b o u ts ,'^ a n e fm ^ r be p a id f o r by c r e d i t i n T re a s u ry Tax and
Loan A c c o u n ts .
Paym ents a t p a r and a c c r u e d i n t e r e s t from May 1 , 1953> may be de
f e r r e d o v e r a p e r io d o f t h r e e m onths, b u t m ust be co m p leted n o t l a t e r th a n Ju ly 3.1,
1 9 5 3 . Exchange subscriptions will be received from holders of Series F and G sav
ings bonds maturing in the months of May through December, 1953, of which there arn
about 31,100, ! U 0 p o u t s t a n d i n g . The Treasury also reserves the right to allot
limited amounts of these bonds to Government Investment Accounts.
Cash s u b s c r i p t i o n s from co m m ercial banks f o r t h e i r *own a c c o u n t m i l be receiver
w ith o u t d e p o s i t , b u t w i l l be r e s t r i c t e d i n e a ch c a s e t o an amount n o t exceed in g 5
p e r c e n t o f t h e i r tim e d e p o s i t s a s o f December 3 1 , 1 9 5 2 .
O th er c a s h su b s crip tio n s
must be accom panied by payment o f 1 0 p e r c e n t o f th e amount o f bonds a p p lie d f o r .
Cash s u b s c r i p t i o n s m i l be r e c e i v e d s u b j e c t t o a l l o t m e n t , and su ch s u b s c rip tio n s
from co m m e rcia l banks f o r t h e i r own a c c o u n t may be a l l o t t e d on a d i f f e r e n t percent
a g e b a s i s th a n c a s h s u b s c r i p t i o n s from o th e r c l a s s e s o f s u b s c r i b e r s .
E x ch a n g es o f S e r i e s F and G s a v in g s bonds m i l be made p a r f o r p a r and v /ill be
a llo tte d in f u ll*
S in c e h o ld e r s o f S e r i e s F and G bonds v / i l l r e c e i v e i n t e r e s t on
th e new bonds a t th e r a t e o f 3 - l / U p e r c e n t from May 1 , 1 9 5 3 , i n t e r e s t adjustm ents
w i l l be made a s f o l l o w s : I n th e c a s e o f S e r i e s F bonds th e s u b s c r i b e r w i l l be
ch a rg e d an amount e q u iv a le n t t o i n t e r e s t from May 1 t o d a te o f m a tu r it y o f the F
bond a t th e r a t e o f 2 .5 3 p e r c e n t p e r annum. I n th e cg.se o f S e r i e s G b onds, the
owner v / i l l r e c e i v e an i n t e r e s t payment a t th e r a t e o f 2 - 1 / 2 p e r c e n t p e r annum borne
by th e G b ond, from th e l a s t i n t e r e s t payment d a te t o May 1 , 1 9 5 3 .
The lo w e s t d en o m in atio n o f th e new bonds w i l l b e $ 5 0 0 . H o ld e rs o f sm aller de*n o m in a tio n S e r i e s F and G bonds may exch an g e them f o r th e n e x t h ig h e r m u ltip le of
$500 upon payment o f any c a s h d i f f e r e n c e .
TREASURY DEPARTMENT
Information Se rv ice
RELEASE m o r n i n g n e w s p a p e r s ,
Monday, April 13, 1953.
WASHINGTON, D .C.
11
H-83
Secretary of the Treasury Humphrey announced today the details
of an offering of 3-1/4 percent fully marketable Treasury bonds, to
be dated May 1, 1953.
They will mature June 15, 1983, but may be
redeemed, at the option of the United States, on and after June 15,
1978. Interest will be payable on a semiannual basis on December 15,
1953, and thereafter on June 15 and December 1 5 .
The amount of this issue allotted on cash subscriptions will be
limited to $1 ,0 0 0 ,0 0 0 ,0 0 0 , or thereabouts, and may be paid for by
credit in Treasury Tax and Loan Accounts.
Payments at par and
accrued interest from May 1, 1953, may be deferred over a period of
three months, but must be completed not later than July 3 1 , 1953.
Exchange subscriptions will be received from holders of Series F
and G savings bonds maturing in the months of May through December,
1953, of which there are about $1,100,000,000 outstanding.
The
Treasury also reserves the right to allot limited amounts of these
bonds to Government Investment Accounts.
Cash subscriptions from commercial banks for their own account
will be received without deposit, but will be restricted in each
case to an amount not exceeding 5 percent of their time deposits as
of December 31, 1952.
Other cash subscriptions must be accompanied
by payment of 10 percent of the amount of bonds applied for.
Cash
subscriptions will be received subject to allotment, and such
subscriptions from commercial banks for their own account may be
allotted on a different percentage basis than cash subscriptions
from other classes of subscribers.
Exchanges of Series F and G savings bonds will be made par fo
par and will be allotted in full.
Since holders of Series F and G
bonds will receive interest on the new bonds at the rate of 3 -1 / 4
percent from May 1, 1953, interest adjustments will be made as
follows: In the case of Series F bonds the subscriber will be
charged an amount equivalent to interest from May 1 to date of
maturity of the F bond at the rate of 2.53 percent per annum.
In
the case of Series G bonds, the owner will receive an interest
Payment at the rate of 2-1/2 percent per annum borne by the G bond,
from the last interest payment date to May 1, 1953.
The lowest denomination of the new bonds will be $500.
Holders
of smaller denomination Series F and G bonds may exchange them for
the next higher multiple of $ 5 0 0 upon payment of any cash difference.
312
-
2
-
The bonds will be redeemable at par prior to maturity in
payment of Federal estate taxes if owned by the decedent at time of
death.
Subscriptions either for cash or exchange will be received at
Federal Reserve Banks and Branches, and at the Treasury.
Commercial
banks should enter their subscriptions directly with the Federal
Reserve Bank of the District in which they are located, even though
payment for or delivery of the bonds allotted is desired in another
District.
Cash subscription books may be closed at any time without
notice. Exchange subscription books will be open through April 30,
1953, to permit holders of the maturing Series F and G Savings
Bonds to take advantage of the offering.
The text of the official circular follows:
OiO
UNITED STATES OF AMERICA
3 -1 A
PERCENT TREASURY BONDS OF 1 9 7 8 -8 3
Dated and ‘b e a r in g i n t e r e s t from May 1 ,
1953
1983
Due June 1 5 ,
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST
ON AND AFTER JUNE 1 5 , 1978
I n t e r e s t p a y a b le Ju n e 15 and December 15
2953
TREASURY DEPARTMENT,
O f f ic e o f th e S e c r e t a r y ,
W ashington, A p r il 13 ,
Department C i r c u l a r No. 9 2 1
1953 ,
Fiscal Service
Bureau of the Public Debt
I.
OFFERING OF BONDS
1 . The S e c r e t a r y o f th e T r e a s u r y , p u rsu a n t t o
he a u t h o r i t y o f th e Second
Liberty Bond A c t, a s amended, i n v i t e s s u b s c r i p t i o n s ,, _____
w^e p e o p le o^ f th e U n ited
from th
S tates, f o r bonds o f th e U n ite d S t a t e s , d e s ig n a te d 3 -lA p e r c e n t T r e a s u r y Bonds
of 1970- 03 ,
2.
- - S u b s c r i p t i o n s a r e i n v i t e d a t p a r and a c c r u e d i n t e r e s t .
The amount o f th e p u b lic o f f e r i n g i s $ 1 , 0 0 0 , O 00,0O 0, o r th e r e a b o u ts .
In a d d it io n
to the amount o f f e r e d f o r p u b lic s u b s c r i p t i o n , th e S e c r e t a r y o f th e T r e a s u r y r e
serves th e r i g h t t o a l l o t l i m i t e d am ounts o f t h e s e bonds t o Government In v estm e n t
accounts.
.
3* Exch an ge o f f e r i n g .- -E x c h a n g e s u b s c r i p t i o n s a r e i n v i t e d a t p a r , w ith
in te re st a d ju s tm e n ts a s s e t f o r t h in S e c t io n IV h e r e o f , from h o ld e r s o f U n ite d
ates S av in g s Bonds o f S e r i e s F and G m a tu rin g in th e months o f May th ro u g h
December, 1 9 5 3 .
H o ld ers o f S e r i e s F and G bonds a g g r e g a tin g l e s s th a n an even
multiple o f $500 m a tu r it y v a lu e may exch an g e such bonds w ith payment o f th e d i f f e r
ence in ca sh t o make up th e n e x t h ig h e r $500 m u lt ip le .
II.
1.
DESCRIPTION OF BONDS
The bonds w i l l b e d a te d May 1 ,
1953,
and w i l l b e a r i n t e r e s t from t h a t
if6^
V*te ° f
p e r c e n t Pe r annum, p a y a b le on a sem ian n u al b a s i s on
December 15 , 1 9 ^ 3 , and t h e r e a f t e r on June 15 and December 15 in each y e a r u n t i l
p r ip c ip a l amount becom es p a y a b le .
They w i l l m atu re June 1 5 , 1983 , b u t may be
adeemed a t th e o p tio n o f th e U n ited S t a t e s on and a f t e r June 15 , 1978 in whole
T
?nd ^ c r u e d i n t e r e s t , on any i n t e r e s t day o r d a y s, on k months»
notice o f red em p tion g iv e n in such manner a s th e S e c r e t a r y o f th e T re a s u ry s h a l l
In CaSe 0 f p a r t i a l red em p tio n th e bonds t o b e redeem ed w i l l b e d e t e r inea by such method a s may b e p r e s c r i b e d b y th e S e c r e t a r y o f th e T r e a s u r y .
From
for A *
5
. r e d e m p t i o n
d e s ig n a te d in any such n o t i c e , i n t e r e s t on th e bonds c a l l e d
lor redem ption s h a l l c e a s e .
2
314
2« Tho income derived, from the bonds shall he subject to all tuxes now or
hereafter imposed under the Internal Revenue Code, or laws amendatory or supple
mentary thereto. The bonds shall be subject to estate, inheritance, gift or other
e x cise tt.xes, 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 Staies, or by any local taxing authority.
3.
The bonds will be acceptable to secure deposits of public moneys.
Jf-. Bearer bonds with interest coupons attached, and bonds registered as to
principal and interest, will be issued in denominations of $500, $1,000 $5 000
$10,000, $100,000, and $1,000,000. Provision will be made for the interchange of
bonds of different denominations and of coupon and registered bonds, and for the
transfer of registered bonds, under rules and regulations prescribed by the Secre
tary of the Treasury.
5. Any bonds issued hereunder which upon the ddath of the owner constitute
part of his estate, will be redeemed at the option of the duly constituted repre
sentatives of the deceased owner’s estate, at par and accrued interest to date of
payment
provided:
,±'
(a) that the bonds were actually owned by the decedent at the time of his
death; and
(b) that the Secretary of the Treasury be authorized to apply the entire pro
ceeds of redemption to the payment of Federal estate taxes.
Registered bonds submitted for redemption hereunder must be duly assigned to "The
Secretary of the Treasury for redemption, the proceeds to be paid to the Director
of Internal Revenue at ______________ for credit on Federal estate taxes due from
estate o f ______________ ." Owing to the periodic closing of the transfer books
end^the impossibility, of stopping payment of interest to the registered owner
during the closed per-’od, registered bonds received after the closing of the books
for payment during such closed period will be paid only at par with a deduction of
interest from the date of payment to the next interest payment date;£/ bonds re
ceived during the closed period for payment at a date after the books reopen will
e paid at par plus accrued interest from the reopening of the books to the date
W a t .
In either case checks for the full six months’ interest due on the
last day of the closed period will be forwarded to the owner in due course. All
bonds submitted must be accompanied by Form PD 1782,3/ properly completed, signed
and sworn to, and by proof of the representatives' authority in the form of a
court certificate or a certified copy of the representatives’ letters of appointen issued by the court. The certificate, or the certification to the letters,
f
exact half-year 'Slnterest is computed for each full half-year period irrespecive of the actual number of days in the half year. For a fractional part of any
year, computation is on the basis of the actual number of days in such half
«7via,]; #
2/The transfer books are closed from May 16 to June 15, and from November 16 to
ecember 15 (both dates inclusive) in each year.
¿/Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from the
treasury Department, Washington, D. C.
V
-3 -
1
^/
Xv
must be under th e s e a l o f th e c o u r t , and e x c e p t in th e c a s e o f a c o r p o r a t e r e p r e
s e n ta tiv e , m ust c o n ta i n a s ta te m e n t t h a t th e ap p oin tm en t i s in f u l l f o r c e and be
dated w ith in s i x months p r i o r t o th e su b m ission o f th e b o n d s, u n le s s th e certificate
or l e t t e r s show t h a t th e ap p o in tm en t was made w ith in one y e a r im m ed iately p r i o r t o
such su b m issio n .
Upon payment o f th e bonds a p p r o p r ia te memorandum r e c e i p t w i l l b e
forwarded t o th e r e p r e s e n t a t i v e s , which w i l l be fo llo w e d in due c o u rs e by fo rm a l
re ce ip t from th e D i r e c t o r o f I n t e r n a l Revenue.
6 . E x c e p t a s p ro v id e d in th e p re c e d in g p a ra g ra p h , th e bonds w i l l b e s u b j e c t
to the g e n e r a l r e g u l a t i o n s o f th e T re a s u ry D ep artm en t, now o r h e r e a f t e r p r e s c r i b e d ,
governing U n ite d S t a t e s b o n d s.
III.
SUBSCRIPTION AND ALLOTMENT
1* Cash s u b s c r i p t i o n s . - - S u b s c r i p t i o n s w i l l b e r e c e i v e d a t th e F e d e r a l R e se rv e
Banks and B ra n ch e s and a t th e T re a s u ry D ep artm en t, W ash in gton .
Com m ercial b a n k s,
which f o r t h i s p u rp o se a r e d e fin e d a s banks a c c e p t i n g demand d e p o s i t s , may subm it
su b scrip tio n s f o r a c c o u n t o f c u s to m e rs , b u t o n ly th e F e d e r a l R e se rv e Banks and th e •
Treasury D epartm ent a r e a u th o r iz e d t o a c t a s o f f i c i a l a g e n c i e s .
O th ers th a n com
mercial banks w i l l n o t b e p e r m itte d t o e n t e r s u b s c r i p t i o n s e x ce p t" f o r t h e i r own
account.3 S u b s c r ip tio n s from co m m ercial banks f o r t h e i r own a c c o u n t w i l l be r e
ceived w ith o u t d e p o s i t , b u t w i l l be r e s t r i c t e d in e a ch c a s e t o an amount n o t e x c e e d
ing 5 p e r c e n t o f th e combined amount o f tim e c e r t i f i c a t e s o f d e p o s it (b u t o n ly th o s e
issued in ^ th e names o f i n d i v i d u a l s , and o f c o r p o r a t i o n s , a s s o c i a t i o n s , and o th e r
o rgan ization s n o t o p e r a te d f o r p r o f i t ) , and o f s a v in g s d e p o s i t s , a s shown on th e
bonk’ s books as o f December 3 1 , 1 9 5 2 .
S u b s c r ip tio n s from a l l o th e r s must be accom
panied by payment o f 10 p e r c e n t o f th e coinount o f bends a p p lie d f o r .
Where payment
for bonds a l l o t t e d i s t o b e d e f e r r e d beyond May 1 , 1 9 5 3 , a s p ro v id e d in S e c t io n IV
hereof, d e l i v e r y o f 10 p e r c e n t o f th e t o t a l p a r amount o f bonds a l l o t t e d , a d ju s te d
to the n e x t h ig h e r $ 5 0 0 , w i l l b e w ith h e ld from a l l s u b s c r ib e r s e x c e p t in c o r p o r a te d
banks and t r u s t com panies u n t i l payment f o r th e t o t a l amount a l l o t t e d h as b e e n ”
completed.
In e v e ry c a s e where payment i s n o t so co m p leted th e 10 p e r c e n t so w ith
held s h a l l , upon d e c l a r a t i o n made b y th e S e c r e t a r y o f th e T re a s u ry in h i s d i s c r e
tion, be f o r f e i t e d t o th e U n ite d S t a t e s .
2 . Exchange s u b s c r i p t i o n s . - - S u b s c r i p t i o n s w i l l be r e c e i v e d a t th e F e d e r a l Re
serve Banks and B ra n ch e s and a t th e T re a s u ry D ep artm en t, W ash in gton . B anking i n
stitu tio n s g e n e r a l l y , and p ay in g a g e n ts e l i g i b l e t o p r o c e s s bonds under T re a s u ry
epartment C i r c u l a r No. 888 , R e v is e d , may subm it exch an ge s u b s c r i p t i o n s f o r a c c o u n t
oi custom ers.
tion
3* The S e c r e t a r y o f th e T r e a s u r y r e s e r v e s th e r i g h t t o r e j e c t any s u b s c r ip
in whole o r in p a r t , t o a l l o t l e s s th a n th e-am ou n t c f bonds a p p lie d f o r , and
a m , ! ? th e books a s t 0 any o r a 1 1 s u b s c r i p t i o n s a t any tim e w ith o u t n o t i c e ; and
y a c tio n he may ta k e in t h e s e r e s p e c t s s h a l l b e f i n a l .
S u b je c t t o t h e s e r e s e r v a ons, cash s u b s c r i p t i o n s from co m m ercial banks f o r t h e i r own a c c o u n t may he a l l o t ¡7 0n. a d i f f e r e n t p e r c e n ta g e b a s i s th a n ca s h s u b s c r ip t io n s from o th e r c l a s s e s o f
D scrib ers, and s u b s c r i p t i o n s in payment o f Which U n ited S t a t e s S av in g s Bonds o f
nes F and G m a tu rin g in th e months o f May th ro u g h Decem ber, 1953 , a r e te n d e re d
tin n !fCei\te v Wil1
a l l o t t e d in f u l l v The b a s e s o f th e a llo tm e n t on c a s h s u b s c r ip
ts *
° e P u b l i c l y announced, and a llo tm e n t n o t i c e s w i l l b e s e n t o u t p ro m p tly
uPon a llo tm e n t.
IV.
PAYMENT
1.
Cash subs c r i p t i o n s . --P ay m en t a t p a r f o r “bonds a l l o t t e d h e re u n d e r may be'
made o r co m p leted on o r “b e f o r e May 1, 1953> o r payment a t p a r and a c c ru e d i n t e r e s t
from May 1 , 1953? may "be made a t any tim e o r tim e s t h e r e a f t e r , w ith payment t o “be
fu lly co m p leted n o t l a t e r th a n J u l y 31? 1953- ®ne d a y ’ s a c c ru e d i n t e r e s t i s $0,089
per $1,000. Any q u a l i f i e d d e p o s it a r y w i l l “be p e r m itte d t o make payment b y c r e d i t
for bonds a l l o t t e d t o i t f o r i t s e l f and i t s cu sto m e rs up t o any amount f o r w hich i t
shall b e 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 b y th e F e d e r a l
Reserve Bank o f i t s D i s t r i c t .
2.
Exch an ge su b s cr i p t i o n s . -»Paym ent f o r bonds a l l o t t e d h ere u n d e r on exch an g e
su b scrip tio n s m ust b e made on o r b e f o r e May 1, 1953? or on l a t e r a ll o t m e n t , and may
be made o n ly in U n ite d S t a t e s S a v in g s Bonds o f S e r i e s F and S e r i e s G m a tu rin g from
May 1 t o December 1, 1953* i n c l u s i v e , which w i l l b e a c c e p te d a t p a r , and sh o u ld a c
company th e s u b s c r ip t io n ^ t o g e t h e r w ith any c a s h d i f f e r e n c e n e c e s s a r y t o make up an
even $500 m u l t i p l e , and where S e r i e s F bonds a r e exch an g ed , b y any i n t e r e s t to . be
co lle cte d from th e s u b s c r i b e r .
H o ld e rs o f S e r i e s F and G bonds w i l l r e c e i v e i n
te re s t on th e new bonds a t th e r a t e o f 3-1 A p e r c e n t from May 1, 1953? and i n t e r e s t
adjustments w ith r e s p e c t t o bonds a c c e p te d in exch an g e w i l l b e made a s f o llo w s :
( a ) S e r i e s F b o n d s. — H o ld e rs o f S e r i e s F bonds m a tu rin g a f t e r May 1 , 1953?
tendered in exch an g e and a c c e p te d w i l l b e ch a rg e d an amount e q u iv a le n t t o i n t e r e s t
on the m a tu r it y v a lu e from May 1 t o th e r e s p e c t i v e d a te s o f m a tu r it y o f th e S e r i e s
F “bonds a t th e r a t e o f 2 . 5 3 p e r c e n t p e r annum a s f o l l o w s :
Bonds m a tu rin g on
th e f i r s t day o f
May 1 9 5 3
June 1 953
Ju ly 1953
A ugust 195 3
Septem ber 1953
O cto b er 1 953
November 1 953
December 1 953
Amount o f i n t e r e s t p e r $ 1 0 0 m a tu r it y
v a lu e t o be c o l l e c t e d from s u b s c r ib e r
$0.2155
O.U263
0.61+30
0.81*56
1.0576
,
1 .2650
1.1*805
(b ) S e r i e s G b o n d s. --H o ld e r s o f S e r i e s G bonds te n d e re d in exch an g e and a c
cepted w i l l b e c r e d i t e d w ith a c c r u e d i n t e r e s t from th e l a s t p re c e d in g i n t e r e s t p ay
ment d ate t o May 1 , 1953* a t th e r a t e o f 2 - 1 / 2 p e r c e n t p e r annum, a s f o llo w s :
Bonds m a tu rin g on
th e f i r s t day o f
May 195 3
June 1953
J u l y 1 953
A ugust 1 953
Septem ber 1 953
O cto b er 1 9 5 3
November 1 953
December 1 953
Amount o f f i n a l i n t e r e s t p e r $ 1 0 0 m atur i t y v a lu e t o be p a id t o s u b s c r ib e r
$ 1.2500
1 .0 3 7 1
0.8287
0.6ll*6
0.1*11*1*
0 . 201+9
1.2500
1 .0 3 7 1
317
- 5 -
The f i n a l i n t e r e s t p a y a b le on bonds m a tu rin g November 1 , 1 9 5 3 , w i l l b e p a id in
reg u lar c o u r s e on May 1 , 1 9 5 3 , b y ch e ck m a ile d b y th e T r e a s u r y D ep artm en t.
The
remainder o f th e f i n a l i n t e r e s t paym ents p ro v id e d f o r above w i l l b e p a id fo llo w in g
accep tan ce o f th e bonds by th e a g en cy th ro u g h w hich th e exch an g e i s made.
(c )
R e q u e sts f o r paym ent. - - S e r i e s F and G bonds te n d e re d in exch an g e must b e a r
ap p ro p riate r e q u e s t s f o r paym ent in a c c o rd a n c e w ith th e p r o v i s i o n s o f T re a s u ry De
partment C i r c u l a r No. 5 3 0 , S ev en th R e v is io n , a s amended, o r th e s p e c i a l e n d o rs e
ments p ro v id e d f o r in T r e a s u r y D epartm ent C i r c u l a r No. 8 8 8 , R ev ised .'
In any c a s e
in which new bonds in b e a r e r fo rm , o r new r e g i s t e r e d bonds in a n o th e r name, a r e
d esired , r e q u e s t s f o r payment m ust be supplem ented b y s p e c i f i c i n s t r u c t i o n s s ig n e d
by the owner who sig n e d th e r e q u e s t f o r paym ent.
V.
REGISTRATION OF NEW BONDS
1 . New T r e a s u r y bonds in r e g i s t e r e d form may b e r e g i s t e r e d o n ly a s a u th o r iz e d
in T reasu ry D epartm ent C i r c u l a r No. 3 0 0 , a s supplem ented and amended". R e g i s t r a t i o n
in the name o f one p e rs o n p a y a b le on d e a th t o a n o th e r i s n o t a u th o r iz e d .
T re a s u r y
bonds a r e n o t red eem ab le b e f o r e m a tu r it y a t th e o p tio n o f th e o w n ers.
R e g is te r e d
Treasury bonds may be t r a n s f e r r e d t o a p u r c h a s e r o n ly upon p ro p e r a ss ig n m e n t.
Treasury bonds r e g i s t e r e d in th e form "A o r B " may b e t r a n s f e r r e d o n ly upon a s s i g n
ment by o r on b e h a l f o f b o th , e x c e p t t h a t i f one o f them i s d e c e a s e d , an assig n m e n t
by or on b e h a l f o f th e s u r v iv o r w i l l b e a c c e p te d .
A bond r e g i s t e r e d in th e name o f
a minor may b e a s s ig n e d o n ly b y a g u a rd ia n o r s i m i l a r r e p r e s e n t a t i v e a p p o in te d by
a cou rt o f co m p eten t j u r i s d i c t i o n o r o th e rw is e d u ly q u a l i f i e d .
V I.
GENERAL PROVISIONS
1 . As f i s c a l a g e n ts o f th e U n ite d S t a t e s , F e d e r a l R e se rv e Banks a r e a u th o r
ized and r e q u e s te d t o r e c e i v e s u b s c r i p t i o n s , t o make a ll o tm e n t s on th e b a s i s and up
to the amounts i n d i c a t e d b y th e S e c r e t a r y o f th e T re a s u ry t o th e F e d e r a l R e se rv e
Banks o f th e r e s p e c t i v e D i s t r i c t s , t o is s u e a llo tm e n t n o t i c e s , t o r e c e i v e payment
for bonds a l l o t t e d , t o make d e l i v e r y o f bonds on f u l l - p a i d s u b s c r i p t i o n s a l l o t t e d ,
and they may is s u e in t e r im r e c e i p t s p en d in g d e l i v e r y o f th e d e f i n i t i v e b o n d s.
2 . The S e c r e t a r y o f th e T r e a s u r y may a t any tim e , o r from tim e t o tim e , p r e
scribe su p p lem en tal o r am en d atory r u l e s and r e g u l a t i o n s g o v e rn in g th e o f f e r i n g ,
which w i l l b e com m unicated p ro m p tly t o th e F e d e r a l R e se rv e B an k s.
G. M. HUMPHREY,
S e c r e t a r y o f th e T r e a s u r y .
* * * *
SIC
f or
mmwm mmm
m m m - A im 13# 1^3
The Secretary of the Treasury has requested that in order
to minimise speculative subscriptions to the m v y»l/k% bond*
commercial banks and other lenders refrain from making unsecured
loans* or loans collateralised in whole or in part by the
securities subscribed for* to cover the Initial deposits which
are required to be paid when subscriptions are entered*
IMMEDIATE RELEASE,
Monday, April 1 3 3 1953,
H-84
The Secretary of the Treasury has requested
that in order to minimize speculative subscriptions
to the new 3-1/^$ bond, commercial banks and other
lenders refrain from making unsecured loans, or
loans collateralized in whole or in part by the
securities subscribed for, to cover the initial
deposits which are required to be paid when
subscriptions are entered.
0 O0
m rn u m
m m m
wmmmm
tnsadari igariì M
s#
¡
T
lgg|#
Ü t Secretary ©T tí»
ansmsaced last evening that the t » * $ m for
$1,1*00,000,000, er
ef 91-d*y Ü M ^
M i l a to be dated April 16 and to
natare fair 36» USI# t&ieh «ere offered en April %
mm
opened at the Federal Reserve
Bank» on April 13*
fh* detalle of title lea* ere ae felle**»
fetal applied for ** $2,0?$,103,000
fetal accepted
- 1*1*00,326,000
Average prise
»
(ineladee $*5M3?»000 entered on a
noaa-caapetitlre beai» and accepted 4ft
fall at the average ¡alee ä m belo*)
rate ®f dleeeaat apprese, 2 *219# per ötmm
99*k39
Kaage of accepted competitive bide»
H l#
te*
{Tl percent ef the **»**$ bid tor at the le* pelee *** accepted)
Federal Reserve
D istrict
Beaten
lea I Ä
Philadelphia
fetal
fetal
•
I
16,601,000
1*1*30*?$«,000
,000
Cleveland
p ü
Eicftsiond
Atlanta
H,T0T,O00
35.1431.000
237,180,000
Chicago
at, teal*
SUlBMill^l Ifl
gtty
$1,338.000
13.287.000
35.281.000
» 7 , 150,000
311.771.000
12.811.000
71.535.000
53.520.000
89.388.000
82,098,183,000
|1,U0O,326,000
36.061.000
12,811,000
71,825,000
£3,520,000
W m
16,510,000
Francisco
TOÏAÏ,
TREASURY DEPARTMENT
Information Se rv ice
WASHINGTON, D .C
OCl
RELEASE MORNING NEWSPAPERS,
Tuesday, April 14, 1953.
H-85
The Secretary of the Treasury announced last evening that the
tenders for $1,400,000,000, or thereabouts, of 9 1 -day Treasury bills
to be dated April 16 and to mature July 16 , 1953* which were offered
on April 9* were opened at the Federal Reserve Banks on April 13.
The details of this issue are as follows:
Total applied for - $2,098,183*000
Total accepted
1,400,326,000 (includes $254,239*000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 9 9 . 4 3 9 Equivalent rate of discount approx.
0.9$ per annum
Range of accepted competitive bids:
High
- 99.494 Equivalent rate
2.002$
- 99.431 Equivalent rate
2.251$
Low
of discount approx
per annum
of discount approx
per annum
(71 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
Total
Applied for
$
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
1 6 ,6 8 3 , 0 0 0
1*430,792,000
57*690,000
41.015.000
1 3 *7 8 7 , 0 0 0
35.481.000
237*180,000
36.061.000
1 2 ,8 1 1 , 0 0 0
71,825,000
5 3 *5 2 0 , 0 0 0
9 1 ,3 3 8 , 0 0 0
$ 2 ,0 9 8 ,1 8 3 , 0 0 0
0 O0
Total
Accepted
$
16,538,000
786.840.000
47.690.000
41.015.000
13.287.000
35,281,000
197.150.000
34.771.000
1 2 .8 1 1 . 0 0 0
71.535.000
53.520.000
89,888,000
$1,400,326,000
Aprii 6t 1$$3
P fîo
uw
u m m m m m m* B m w m
firnf o li mìm t mmmìtem wmm awte
la d irect and
guaranteed se c u ritie s of the O w rnaw it fo r freasuxy itm o t»
w l «ad other «eeoaat« M a g t i r m ath of March, I t t i
Purcnasss #♦*#*♦*♦*•♦#»****••’
•»
Salas •##•*#«*•♦*##•*••**•*#■***
m
Sat Paroliw a g *♦*♦••**#•*****♦•
3
$ló,279,000
3,365,100
,900
(2.1
m
: rnm
;£o *3
i£gd) Charles T. Brannan
C/1
pi
Í—
Chief, úwest¿u®nts Branch
rdvlsioii of Deposits & Infestasents
« Ä t l h/á/53
TREASURY DEPARTMENT
WASHINGTON, D .C .
Information Se rv ice
RELEASE MORNING NEWSPAPERS,
Maas
lucdoGrdvjj ftfir*f a / T iff3
H
During the month of -February, 1953
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
Secretary Humphrey announced
today.
0 O0
TREASURY DEPARTMENT
Wa s h in g t o n , d .c .
Information Service
RELEASE MORNING NEWSPAPERS,
Wednesday, April 15, 1953»
H-86
Daring the month of March, 1953
market transactions in direct and
guaranteed securities of the Government
for Treasury investment and other
accounts resulted in net purchases of
$12,913,900, Secretary Humphrey announced
today.
0 O0
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TREASURY DEPARTMENT
information Service
WASHINGTON, D .C.
327
IMMEDIATE RELEASE,
Tuesday, April 14, 1953«
H-8 7
Secretary of the Treasury Humphrey announced
today that the cash subscription books for the
current offering of 3-1/4 percent Treasury Bonds
of 1978-83 will be closed at the close, of
business today.
Cash subscriptions placed in the mail before
12 o ’clock midnight tonight, April 14, will be
considered as having been entered before the
close of the subscription books.
Announcement of the amount of subscriptions
and the bases of allotment will probably be made
on Friday, April 17.
As previously announced, the subscription
books for exchange of Series F and G savings
bonds for the new 3-1/4 marketable bond will
remain open until May 1.
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As»rU 13, 1953
Bear Bast
I
know y w alias*« ay m m m m rn%m% the situation which Ima
developed là connection vi Ih Ih« eacenrtlon fro* Baited Si«!««
tastali«* of i»««»« earned abroad by olii««»« who apead ai least
i? ont of li «enths la foreign eeoatrlea* Authorisation for
ihla iraatneai vii added io ih« law by ih« laad Congres«»
fhla prori atoa appear« io har« basa laiandad primarily io
eneeorage persona with apeóla! skill« and technical knowhow
essential te fondassent«! «canonie development te eoe«pt «ployaeat la foreign oeantri««» Sowerer» «ador the law «a written»
aany eonsplcaoas abases here dewelepad daring ths past aerara!
Bontha» Advantage haa baan taken ef the law by highly paid
indirtdoals whose work in n foreign eoonixy ie clcirly of a
transitory autore»
I do not bollere that the el toetien whloh has deraloped
rea eonteaçOated by the previene Congress» and regardless ef
what nay hare been intended» 1 respectfully recommend that year
Cenalti«« oeaeider the adoption of eerreotiro legislation, this
Department stand« ready te gira year Coralttee all possible
asei ateno«.
Sincerely»
A» Heed
Oswalt
»ease
on Kaye and Keane
a
BTSfcfth/KtfCeaia 11/nr
U.S. DEPARTMEX3T OF TREASURY
News Release Clearance Record
SUBJECT
Market purchases and sales of securities
for Government accounts_______ _______ _
WRITTEN BY
Usual data released to press.
ORIGINATING OFFICE
Bureau of Accounts______ __
aday recommended
under a provision
bisens*
CIEARED BY:
W. T. Heffelfinger
s ifa & X c il)
(Name)
(Name)
Office of Fiscal Assistant Secretary
(Office)
The
exemption from
(Date)
(Date )
lsens who are out
m
t& a letter dated
(Name)
(Office)
(Date )
Rouse Ways and
letter followsi
(Name)
(office)
(Date)
(Name)
(Office)
(Date)
O
_Nils Ac Lennartson
Assistant to the Secretary
(Date j
Leon M. Siler
(Date)
Robert A. Dillon
TD-OAS-DC
Secretary of the Treasury George M. Humphrey today recommended
legislation to correct abuses which have developed under a provision
of law relating to income earned abroad by U* S* citizens*
The
provision« adopted by the 82nd Congress« authorizes exemption from
U. S* taxation of income earned abroad by U* S* citizens who are out
of this country for 17 ou^of 18 consecutive months*
The S e c r e t a r y * s recommendation was contained in a letter dated
April 13 from the Secretary to the Chairman of the House Ways and
Means Committee« the Honorable Daniel A* Reed*
The letter followst
TREASURY DEPARTMENT
IMMEDIATE RELEASE,
Monday, April 13, 1953.
H-88
Secretary of the Treasury George M. Humphrey today recommended
legislation to correct abuses which have developed under a p r o
vision of law relating to income earned abroad by U. S. citizens.
The provision, adopted by the 82nd Congress, authorizes exemption
from U. S. taxation of income earned abroad by U. S. citizens'
who are out of this country for 17 out of 18 consecutive months.
The Secretaryfs recommendation was contained in a letter
dated April 13 from the Secretary to the Chairman of the House
Ways and Means Committee, the Honorable Daniel A. Reed.
The
letter follows:
Dear Dan:
I know you share my concern about the situation which
has developed in connection with the exemption from United
States taxation of income earned abroad by citizens who
spend at least 17 out of 18 months in foreign countries.
Authorization for this treatment was added to the law
by the 82nd Congress.
This provision appears to have been intended
primarily to encourage.persons with special skills and
technical know-how essential to fundamental economic
development to accept employment in foreign countries.
However, under the law as written, many conspicuous
abuses have developed during the past several months.
Advantage has been taken of the law by highly paid
individuals whose work in a foreign country is clearly
of a transitory nature.
I do not believe that the situation which has
developed was contemplated by the previous Congress,
and regardless of what may have been intended, I
respectfully recommend that your Committee consider
the adoption of corrective legislation.
This
Department stands ready to give your Committee all
possible assistance.
Sincerely,
George
placing greater amounts in the hands of longer term investors-»
announced by President Eisenhower in his State of the Union Message*
^ The concentration of short-term debt in the banks by the
previous Administration was one of the causes of inflation in the
cost of living which has cost the American people billions of dollars*
A gradual placing of more securities in the hands of non-bank investors
is a necessary step for economic stability*
^ The sale of long-term bonds to these investors carries a somewhat
higher interest rate, but this cost will be offset many times over
if it lessens the cost and disorganization of inflation.
interest cost is partly recovered in taxation*
The increased
To the extent that the
interest on these bonds goes to insurance companies, savings banks,
pension funds, and other forms of the people’s savings, it will benefit
the millions of families who have been most damaged by inflation and by
inadequate return on savines because of artificially low interest rates*
^ As far as deflation is concerned, while a few prices have declined
recently, the cost of living is near its post-war high, employment is
higher than ever before and unemployment is very small.
With continued
heavy military expenditures, the Government is still operating at a
deficit
TREASURY DEPARTMENT
Information Se rv ice
WASHINGTON, D .C.
o
IMMEDIATE RELEASE,
Monday, April 13? 1953»
H-89
In answer to inquiries on the statement of the nine Senators,
Secretary of the Treasury George M. Humphrey today made the
following statement:
"The new issue of 30-year 3»1/4$ bonds is one step
in a program 'of extending part of the debt over longer
periods and gradually placing greater amounts in the
hands of longer term investors1 announced by President
Eisenhower in his State of the Union Message,
’’The concentration of short-term debt in the banks
by the previous Administration was one of the causes of
inflation in the cost of living which has cost the
American people billions of dollars.
A gradual placing
of more securities in the hands of non-bank investors
is a necessary step for economic stability.
"The sale of long-term bonds to these investors
carries a somewhat higher interest rate, but this
cost will be offset many times over if it lessens
the cost and disorganization of inflation.
The
increased interest cost is partly recovered in
taxation.
To the extent that the interest on these
bonds goes to insurance companies, savings banks,
pension funds, and other forms of the people's savings,
it will benefit the millions of families who have been
most damaged by inflation and by inadequate return on
savings because of artificially low interest rates.
"As far as deflation is concerned, while a few
prices have declined recently, the cost of living
is near its post-war high, employment is higher than
ever before and unemployment is very small.
With
continued heavy military expenditures, the Government
is still operating at a deficit."
oOo
32
At the end of March, about three quarters of the
$6,000,000,000 in series E bonds which had matured were still
outstanding under the series E optional extension program*
March was the third successive month in which sales of
United °tates Savings Bonds, all series, have exceeded
redemptions of matured and unmatured bonds, the Treasury
Department announced today.
Sales of all series in March were $439,917,000 and
redemptions were $430,495,000. The sales exceeded those of
March, 1952, by 33 per cent. The redemptions exceeded those
of March, 1952, by one-ha If of one per cent.
March sales of series £ and series H bonds totaled
$396,815,000, compared with March, 1952, sales of
$284,404,000 for series E bonds alone, the series H bond not
having then been placed on sale. Series E and H redemptions in
March,
1953, were $353,550,000. Series E redemptions in
March, 1952, were $344,697,000.
Sales of all series of Savings bonds in the first quarter
for
of 1953 totaled $1,358,569,000,/a gain of 22$ over the $1 ,1 1 1 ,543,000
k
sales in the first three months of 1952. Redemptions of all series
in the first quarter of 1953 were $1,234,455,000, compared with
$ 1,332,873,000
7 per cent.
in the first quarter of 1952,
a decrease of
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
335
IMMEDIATE RELEASE,
Wednesday, April 15* 19 5 3 «
H-90
March was the third successive month in which sales of
United States Savings Bonds, all series, have exceeded
redemptions of matured and unmatured "bonds, the Treasury
Department announced today.
Sales of all series in March were $439*917,000 and
redemptions were $430,495*000.
The sales exceeded those of
March, 1952, by 33 par cent.
The redemptions exceeded those
of March, 1952, by one-half of one per cent.
March sales of series E and series H bonds totaled
$396,815*000, compared with March, 1952, sales of
$284,404,000 for series E bonds alone, the series H bond
not having then been placed on sale.
Series E and H
redemptions in March, 1953* were 0353*550,000.
Series E
redemptions in March, 1952, were $344,697*000.
Sales of all series of Savings Bonds in the first
quarter of 1 9 5 3 totaled $1,358,569,000, for a gain of 22$
over the $1,111,543*000 sales in the first three months of
1952.
Redemptions of all series in the first quarter of
the first quarter of 1952, a decrease of 7 par cent.
At the end of March, about three quarters of the
$6,000,000,000 in series E bonds which had matured were
program.
0 O0
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all .taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For
purposes of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be interest.
Under Sections bZ and 117 (a) (1) of the Internal Revenue Code, as
amended by Section 11$ of the Revenue Act of 19Ul, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets.
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 r e a s u r y D epartm ent C i r c u l a r No. U18, a s amended, and t h i s n o t i c e ,
p r e s c r i b e th e te rm s o f th e T r e a s u r y b i l l s and g o v ern th e c o n d itio n s o f
th e i r is s u e .
C o p ies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l
R e se rv e Bank o r B ra n c h .
-
2
-
m m
d e a l e r s i n in v e stm e n t s e c u r i t i e s *
T enders from o t h e r s m ust be accom panied
ty- payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i n be made b y 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 range
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 t h e T r e a s u r y e x p r e s s l y re se rv e s
th e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 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 titiv e te 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 i n f u l l a t th e a v e ra g e p r i c e
d e c im a ls ) o f a c c e p te d c o m p e titiv e b i d s .
( i n th re e
S e ttle m e n t f o r a c c e p te d te n d e rs
in a c c o rd a n c e w ith th e b id s m ust be made o r co m p leted a t th e F e d e r a l Re
s e r v e Bank on
April 23. 1953
5 in ca s h o r o t h e r Im m ed iately a v a ila b le
April 23, 1 9 i3 ---- J
funds o r in a l i k e f a c e amount o f T r e a s u r y b i l l s m a tu rin g
Cash and exch an g e t e n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
TO
Cash ad ju stm en ts
w i l l b e 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 rin g b i l l s
a c c e p te d in exch an g e and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv 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 g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem ption,
a s s u c h , and l o s s from th 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 re a s u ry b i l l s
s h a l l n o t have any s p e c i a l t r e a t m e n t , a s s u c h , un d er 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 en tary t h e r e t o .
The b i l l s s h a l l be
KXKXMXXX
m m
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 1 6 . 19S3______ *
H3QT""
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b lic n o t i c e , i n v i t e s te n d e rs
f o r $1.500.000.000
, o r th e re a b o u ts , o f
-d a y T r e a s u r y b i l l s , f o r
91
c a s h and i n exch an g e f o r T re a s u ry b i l l s m atu rin g
th e amount o f $ 1 , ^ 0 0 ,ij0 3 « 0 0 0
, t o b e is s u e d on a d is c o u n t b a s i s under
c o m p e ti tiv 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
—
______ July 23, 1953
, in
April 23« 1953
The b i l l s
April 23* 1953
, and w i l l m ature
© r --------
, when th e f a c e amount w i l l be p a y a b le w ith o u t i n -
Héck
te re s t.
They w i l l be is s u e d i n b e a r e r form o n ly , and in d en o m in ation s o f
$ 1 , 0 0 0 , $ 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
(m a tu r i ty v a lu e ).
T en d ers 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 ran ch es 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 rd t i m e , Monday. April 20. 1993 »
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in t h e c a s e o f com peti
t i v e te n d e r s th e p r i c e o f f e r e d m ust be e x p re 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 t h r e e d e c im a ls , e . g . , 9 9 . 9 25«
F r a c t i o n s may n o t be u sed .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l e n v e lo p e s w hich 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 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 ers th a n banking 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 t o subm it ten d ers
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 ers w i l l be r e c e i v e d w ith o u t d e p o s it from
i n c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and reco g n iz e d
TREASURY DEPARTMENT
Information Service
WASHINGTON, D .C .
:3Q
i
\jV/
HÉLEA.SHÌ -vM O'IMNG;"'KEWSP A Ç E R S ’i'
Thursday, April if
X953
H-91
n^e Secretary ci* the Treasury, 'oy this public notice, invites
tenders for $1,500,000,000/ or thereabouts, of 91-day Treasury bills,
for cash, and .in exchange for .Treasury\bil;ls maturing April 23,... 1953,
in the amount of :$ÿ,.400,403,000. to be issued on a 'discount basis
under'Compétitive .and non-competitive bidding as hereiná-fteri 3Í
provided. .The4b.ills of this series will be dated April/23> 1953,, and
will mature ^Júly 2 3 > íi953, when ..thé 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, $1.00,000, $5 0 0 ,0 0 0 , and
$1,000, 000 (maturity value )..
.
- -Tenders will,: be received at Federal Reserve Banks and Branches
up to the '.closing .hour two o ’clock: p .m., Eastern Standard time, ;,s
Monday,. April 20, 1953.
Tenders will not be; received at the
ireasury Department,. Washington. .Each tender must be for an even
multiple of ;$1,000, a n d .in the case of competitive tenders the price
offered, must be expressed on the basis of 100, with not more than three .decimals, p . g ,,- 99.925 • Fractions may not bé used¿
It is —
urged that tenders 'be. Vtlade On the printed forms arid forwarded in the
special, envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor. ‘ ’, ’
~ y ' — •■ ' '
Others.than banking institutions wibl not he'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 recogni zed dealers in investment securities. Tenders
from o t h e r s must be accompanied by payment of 2 per cent 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.''1. .1 . -' " ...* " .., „ ' ,
;;" ; ; * ’;. ■/ *■’ ' ''1: !;;
Immediately a fter the closing hour, tendèrs will be opened at
the F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h i c h p u b l i c
announcement w i l l b e m a d e b y th e S e c r e t a r y of th e T r e a s u r y of th e
amount a n d p r i c e r a n g e o f a c c e p t e d b i d s .
Those submitting tenders
will 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 r e j e c t i o n t h e r e o f .
The
S e cre ta ry of 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 the r i g h t to a c c e p t or
re je c t any or all tenders, in who l e or in part, a n d his a c t i o n in
any s u c h r e s p e c t s h a l l b e f i n a l .
S u b j e c t to t h ese r e s e r v ations,
non-ccmpetitive t e n d e r s f o r $ 2 0 0 , 0 0 0 or less w i t h o u t stated p r i c e
from a n y o n e b i d d e r w i l l b e 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
(in three decimals) of accepted competitive bids.
Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on April 23, 1953, in cash or
other immediately available funds or in a like fade amount of
Treasury bills maturing April 23, 1953.
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 dr 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 t h e ,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 consid
eration as capital assets.
Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include
in hfs income-tax return only the difference between the price paid
for such bills', whether on original issue or on subsequent purchase,
and the amount actually received either upon sale' or redemption at
maturity during the taxable year for which the return is made, as '
ordinary'gain or l
o
s
s
1 I f
Treasury Department Circular Noj 4l8, as amended, and this
notice,' prescribe the- terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular m a y be obtained
from any Federal Reserve Bank or Branch,
FOR IMMEDIATE RELEASE
WEDNESDAY - APRIL 15, 1953
su£jy
Four
with
l a b o r JL&ad*H*s r e a f f i r m e d
Secretary
support
Bonds
by
of
labor
the
Treasury
organizations
after
a meeting
G e o r g e (uj. H u m p h r e y ,
of
the
the
T r e a s u r y ’s S a v i n g s
Program.
Meeting
George
James
with
Meany,
B.
Workers
Carey,
Labor
of
Secretary
President,
Organizations;
John
America;
labor
L.
F e a d e æ -e
including
Randolph
Bonds
the
the
Savings
for
continued
Savings
Lewis,
In
Bonds
Bonds
lunch
Federation
President,
M*
Leighty,
discussed
Humphrey
Burgess,
responsibility
Program.
at
were:
of
Labor;
of
United
Industrial
Mine
Chairman,
Railway
Association *
Secretary
has
American
George
Program with
W.
Humphrey
Secretary-Treasurer, Congress
Executives*
The
who
today,
addition
Program,
participation
Payroll
for
to
the
of
Savings
the
and
Savings
other
Deputy
the
to
Treasury
the
leaders
their
officials
Secretary,
Treasury's
reaffirming
Plan.
Bonds
Savings
support
pledged
of
to work
organizations
in the
rOS IMMEDIATE BEUEASE
WEDNESDAY - AP8XL IS , 1953
It
executives
Four labor
reaffirmed today» after a m e
a n am
re ta r
with Secretary of the treasury George M. Humphrey/ the o f Labi
ZA Martin M
support by labor organisations of the Treasury *s Savings Durkjb
Bonds Program,
1 as
o
g u e s t s íwa ^
for
Besting^ Wppfc Secretary Humphrey
a t t h e Treasurywdta©
also
7
lunch/were:
George Beany» President, American federation of labor;
James B» Carey» Secretary-treasurer, Congress of Industrial
Organisations;
John I». Lewis, President, Halted Mins
Workers of America;
George fi* heighty, Chairman, Railway
labor Executives* Association,
executives
the labor leadsifi discussed the Savings Bonds
Program with Secretary Humphrey and other Treasury officials,]
laE¿on B. Folsom,
Under
Secretary, and
including/w. Randolph Burgess, Deputy to the Secretary.
B e n d a 1Progrw * » in addition to reaffirming support of
the Savings Bonds Program, the leaders pledged to work
for continued participation of their organisations in the
Savings Bonds Payroll Savings Plan,
TREASU RY
D EPARTM EN T
Information Se rv ice
WASHINGTON, D .C .
342
IMMEDIATE RELEASE,
Wednesday, April 15, 1953»
Pour labor executives reaffirmed today, after
a meeting with Secretary of the Treasury George M. Hunphrey,
and Secretary of Labor Martin P. Durkin, the support by
labor organizations of the Treasury*s Savings Bonds Program.
Meeting as guests of Secretary Humphrey for lunch at
the Treasury also were;
George Meany, President,
American Federation of Labor; James B. Carey, SecretaryTreasurer, Congress of Industrial Organizations;
John L. Lewis, President, United Mine Workers of America;
George E. Leighty, Chairman, Railway Labor Executives’
Association.
The labor executives discussed the Savings Bonds
Program with Secretary Humphrey and other Treasury officials,
including Marion B. Folsom, Under Secretary, and W. Randolph
Burgess, Deputy to the Secretary.
In addition to reaffirming
support of the Savings Bonds Program, the leaders pledged
to work for continued participation of their organizations
in the Savings Bonds Payroll Savings Plan.
A-
-
2
-
Mundy I . P e a le , P r e s id e n t, R epublic A v ia tio n C o rp .,
Farm ingdale, Long I s la n d , New York
H. M. H orner, P r e s id e n t, U nited A i r c r a f t C o rp .,
E a s t H a rtfo rd , C o n n ecticu t
F re d e ric k Crawford, P r e s id e n t, Thompson P r o d u c ts ,I n c .,
C lev elan d , Ohio
John A. L aw ler, Aeronca M anufacturing C o rp .,
Middletown, Ohio.
In a c c e p tin g th e chairm anship o f th e campaign a t th e request
o f S e c r e ta r y o f th e T re a su ry , George M. Humphrey, Mr. Gross
commented: ” 1 b e lie v e th a t we employees o f th e a i r c r a f t industry
a p p r e c ia te our s p e c ia l r e s p o n s i b i l i t y to tak e th e le a d e rsh ip in
th e bond program when a la r g e sh are o f government exp en d itu res
I s going f o r th e p u rch ase and m aintenance o f th e a ir p la n e s we
b u i l d ."
An a i r c r a f t m an u factu rin g in d u s try d riv e in 1951 added more
th an 1 2 5 ,0 0 0 w orkers to th o se p u rch asin g Savings Bonds re g u la rly
on th e P a y ro ll p lan and in c re a s e d p u rch ases by $ 3 0 ,0 0 0 ,0 0 0
a n n u a lly . The o b je c tiv e o f th e 1953 campaign i s t o sig n up
a n o th e r 100,000 p a y r o ll s a v e rs and in c r e a s e p u rch ases by
$ 2 5 , 000,000 a y e a r among th e 600,000 employees o f th e 40 companies
in th e in d u s tr y .
The 1951 campaign was supported by th e A i r c r a f t In d u s trie s
A s s o c ia tio n , whose p r e s id e n t, Admiral D. C. Ramsey, w ill pledge i t s
sup p ort f o r th e 1953 d riv e a t to d a y 1s m eetin g. M artin W. Clement,
r e t i r e d Chairman o f th e Board o f th e Pen n sylvan ia R a ilro a d , and
N a tio n a l Chairman o f th e U, S . T reasu ry *s I n d u s tr ia l Advisory
Committee on P a y ro ll S av in g s, a ls o was to be h e a rd .
0 O0
TREA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, D .C .
companies o f th e e a s te r n S ta te s m iftmbrnmc tod ay to
a campaign to expand th e P a y ro ll Savings P lan f o r
U. S . Savings Bonds in t h e i r in d u s tr y . A s im ila r
w estern S t a te s w ill be h eld a t Los A ngeles, A p ril
o rg an ize
th e purchase of
m eeting f o r the
24.
W. Randolph B u rg e ss, Deputy to th e S e c r e ta r y o f th e Treasury
in ch arge o f f i s c a l m a tte r s , who e x e r c i s e s su p e rv is io n ov er the
Savings Bonds program ,
th e p r in c ip a l sp eak er a t a luncheon
m eetin g o f th e a i r c r a f t e x e c u tiv e s a t th e P la z a H o te l.
R obert E . G ross, P re s id e n t o f th e Lockheed A i r c r a f t Corporation
o f Burbank, C a lif o r n ia , and N atio n al Chairman o f th e A ir c r a f t
In d u s try P a y ro ll Savings d r iv e , m is h o st a t th e luncheon m eeting.
E x e c u tiv e s who a c ce p te d h is i n v i t a t i o n to a tte n d in clu d e d :
V ic to r Emanuel, Chairman, Avco M anufacturing
C o rp ., New York
G. M. B e lla n c a , P r e s id e n t, B e lla n c a A i r c r a f t C o rp .,
New C a s tle , Delaware
Edgar F . K a is e r , Chairman, Chase A i r c r a f t C o .,
West T ren to n , New J e r s e y
R ich ard S. B o u te lle , P r e s id e n t, F a i r c h i l d Engine
and A irp lan e C o rp ., Hagerstown, Maryland
George M. Bunker, P r e s id e n t, The Glenn L .
M artin C o ., Middle R iv e r, Maryland
W. R. P ip e r, P r e s id e n t, P ip e r A i r c r a f t C o rp .,
Lock Haven, Pen n sylvan ia
P . R. B a s s e t t , P r e s id e n t, S p erry C o rp ., New York
B . J . Mauro, Chairman, T a y l o r c r a f t , I n c . ,
Conway, P en n sylvan ia
C laren ce R eese, P r e s id e n t, C o n tin e n ta l Motors C o rp .,
Muskegon, Michigan
Lawrence D. B e l l , P r e s id e n t, B e ll A i r c r a f t C o rp .,
B u f fa lo , New York
Malcolm P , Ferguson , P r e s id e n t, Bendix A v iatio n C orp.,
D e tr o it, M ichigan
Roy H urley, P r e s id e n t, C u rtiss-W p igh t A ero n au tical
C o rp ., Wood R idge, New J e r s e y
L. S . Sw irbul, P r e s id e n t, Grumman A i r c r a f t Engineering
C o rp ., B eth p age, Long I s la n d , New York
F . N. P ia s e c k i, Chairman, P ia s e c k i H e lic o p te r C orp .,
Morton, P en n sylvan ia
TREASU RY
D EPARTM EN T
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, April lo, 1953.
WASHINGTON, D .C
H-93
Presidents of 20 aircraft manufacturing companies of the
eastern States will meet in New York today to organise a campaign
to expand the Payroll Savings Plan for the purchase of U. S.
Savings Bonds in their industry.
A similar meeting for the
western States will be held at Los Angeles, April 24.
W. Randolph Burgess, Deputy to the Secretary of the Treasury
in charge of fiscal matters, who exercises supervision over the
Savings Bonds program, is the principal speaker at a luncheon
meeting of the aircraft executives at the Plaza Hotel.
Robert E. Gross, President of the Lockheed Aircraft Corporation
of Burbank, California, and National Chairman of the Aircraft
Industry Payroll Savings drive, will be the host at the luncheon
meeting. Executives who accepted his invitation to attend included:
Victor Emanuel, Chairman, Avco Manufacturing
Co r p ., New York
G. M. Bellanca, President, Bellanca Aircraft Corp,,
New Castle, Delaware
Edgar F. Kaiser, Chairman,.’ Chase Aircraft Co.,
West Trenton, New Jersey
Richard S. Boutelle, president, Fairchild Engine
and Airplane Corp., Hagerstown, Maryland
George M, Bunker, President, The Glenn L.
Martin Co., Middle River, Maryland
W. R. Piper, President, Piper Aircraft Corp.,
Lock Haven, Pennsylvania
P. R. Bassett, President, Sperry Corp., New York
B. J. Mauro, Chairman, Taylorcraft, Inc.,
Conway, Pennsylvania
Clarence Reese, President, Continental Motors Corp,,
Muskegon, Michigan
Lawrence D. Bell, President, Eell Aircraft Corp.,
Buffalo, New York
Malcolm P. Ferguson, President, Bendix Aviation Corp.,
Detroit, Michigan
Roy Hurley, President, Curtiss-Wright Aeronautical
Corp., Wood Ridge, New Jersey
L. S. Swirbul, President, Grumman Aircraft Engineering
Corp., Bethpage, Long Island, New York
F. N. Piasecki, Chairman, Piasecki.Helicopter Corp.,
Morton, Pennsylvania
34
-
2
-
Mundy I. Peale, President, Republic Aviation Corp.,
Farmlngdale, Long Island, New York
K. M. Horner, President, United Aircraft Corp.,
East Hartford, Connecticut
Frederick Crawford, President, 'Thompson Products, Inc.,
Cleveland, Ohio
John A. Lawler, Aeronca Manufacturing Corp.,
Middletown, Ohio.
In accepting the chairmanship of the campaign at the request
of Secretary of the Treasury, George M. Humphrey, Mr. Gross
commented:
"I believe that we employees of the aircraft industry
appreciate our special responsibility to take the leadership in
the bond program when a large share of government expenditures
is going for the purchase and maintenance of the airplanes we
build.11
An aircraft manufacturing industry drive in 1 9 5 1 added more
than 1 2 5 , 0 0 0 workers to those purchasing Savings Bonds regularly
on the Payroll plan and Increased purchases by $ 3 0 * 0 0 0 , 0 0 0
annually.
The objective of the 1 9 5 3 campaign is to sign up
another 100,000 payroll savers and increase purchases by
$ 25 , 0 0 0 ,0 0 0 a year among the 6 0 0 ,0 0 0 employees of the 4 0 companies
in the industry.
The 1 9 5 1 campaign was supported by the Aircraft Industries
Association, whose president, Admiral D. C. Ramsey, will pledge its
support for the 1 9 5 3 drive at to d a y ’s meeting.
Martin ¥. Clement,
retired Chairman of the Board of the Pennsylvania Railroad, and
National Chairman of the U. S f Treasury’s Industrial Advisory
Committee on Payroll Savings, also was to be heard.
0 O0
Y£S
tController of Loans» A ssistant Deputy Governor» Assistant
Federal Reserve Agent and Tice President#
On September 16,
1944» be was named President of the Federal Reserve Bank of
Cleveland and assumed M s duties on November 1 th at year.
Mr. Sidney served as a member o f the Board of Education
of Ridgewood, Hew Jersey, from 1930 to 1944* was President
of Robert Morris Associates* 1936-38# and President of the
Cleveland Community Fund in 1952.
Nominated by President Eisenhower to be Comptroller of
the Currency on March 27* 1953, he was confirmad by the Sente
on April 2 and assumed o ffice cm April 16* 1953*
Mr. Oidney and Jean E llison Brock were married on
September 6* 1913«
They have three sons* Jam s BfSck,
Dean Robert* and John Archibald.
Their home i s a t \19101
Van Aktn Boulevard* Shaker Heights, Ohio.
*\
*■
■;
: ■ï'
-A
■ \
v'\
■■ iiiii« : .i '
■ À
M.
■»___
rat mmmkdohwby
ym m r n m
C o n t r o l l e r of tbo Currency
Hay m i l o r d Gidney
m
b o m January
17» 1887 la
Santa Bastar«» California, the »on of Charles Montville
Clara Maude (Jones} Sidney.
of California in
1912
sad
Be graduated from the university
«id was elected
Phi Beta Ksppa during
his Junior year at the university.
Nr.
Sidney entered the tanicing
business
in
1903
as
a cleric in the Coaaereial National Bank at Santa Bastare.
Be le f t th is position to attend the university in 1908 end
upon h is graduation joined the
First national Baric of
Bakersfield, CaUfèrnia.
In 1914 he came to the Federal Reserve Board in Washington
as secretary to a board member and subsequently became Deputy
Settling Agent and Federal Reserve examiner.
Be was appointed
Assistant Federal Reserve Agent in the Federal Reserve Bank of
New York in 1917 and two years later was sent to Buffalo to
open the Resewve Branch in that city and serve as Manager.
B»
returned to the New York federal Restavo Baric in 1921 end for
nearly two years was Ctontroller-at-Large.
Nr. Sidney became Vice President and Director of the
Citisene Trust Company in Buffalo in 19*3 end latta was 7 1 »
President of the Marine Trust Company ip that eity.
Xn 1924
he returned to the Raw York Federal Reserve Baric end during
the next 20 years was susessslvsly Controll#r-at-Large,
p
PROPOSED PRESS RELEASE
y~?
Secretary Humphrey today administered the oath of office
to Ray M. Gidney as Comptroller of the Currency.
The ceremonies at the Treasury Department were witnessed
by officials of the Department*, and of the Federal Reserve
System* other government officials and prominent bankers.
Mr. Gidney was president of the Federal Reserve Bank of
Cleveland at the time of his nomination to be Comptroller by
President Eisenhower on March 27.
He was confirmed by the
Senate on April 2* 1953.
As Comptroller of the Currency, Mr. Gidney has general
supervision over all national banks, including examination^,
consolidations or mergers of national banks, authorization
of new banks and branches, and the conversion of state banks
into national banks.
The Comptroller also supervises all
banks and trust companies doing business in the District of
Columbia
of
the
and
is
Federal
an
Deposit
IBMIte
member
of
the
Board
I nsurance,. C o r p o r a t i o n .
¡¡¡¡I
of
Directors
TREASU RY
D EPARTM EN T
Information Service
WASHINGTON, D .C
O
O
RELEASE POR 10 A.M. THURSDAY
April 16 , 1953 » _____________.
H-94
Secretary Humphrey today administered the oath of
office to Ray M. Sidney as Comptroller of the Currency.
The ceremonies at the Treasury Department were
witnessed by officials of the Department and of the
Federal Reserve System, other government officia_s ana
prominent bankers.
Mr. Sidney was president of the Federal Reserve
Bank of Cleveland at the time of his nomination to be
Comptroller by President Eisenhower on March 27.
He
was confirmed by the Senate on April ¿s 1^53»
As Comptroller of the Currency, Mr. Sidney has
gc,T>p-^2,l supervision over all national banks, including
examination, consolidations or mergers of national banks,
authorization of new banks and branches, and the conversion
of state banks into national banks,
fne Comptroller also
supervises all banks and trust companies doing business
in the District of Columbia and is a member of the Board
of Directors of the Federal Deposit Insurance Corporation.
Mr. Cidney’s biography is attached.
351
RAY M. GIDKEY
Comptroller of the Currency
Hay Millard Gidney was born January 17*
California, the son of Charles Montville and
Gidney.
He graduated from the University of
and was elected to Phi Beta Kappa during his
university,
1 8 8 7 in Santa Barbara,
Clara Maude (Jones)
California in 1912
junior year at the
Mr. Gidney entered the banking business in 1903 as a clerk
in The Cornmerical Bank at Santa Barbara.
He left this position to
attend the university in 1908 and upon his graduation joined the
First National Bank of Bakersfield, California.
In 1914 he came to the Federal Reserve Board in Washington
as secretary to a board member and subsequently became Deputy
Settling Agent and Federal Reserve examiner.
He was appointed
Assistant Federal Reserve Agent in the Federal Reserve Bank of
New York in 1917 and two years later was sent to Buffalo to
open the Reserve Branch in that city and serve as manager.
He
returned to the New York Federal Reserve Bank in 1921 and for
nearly two years was Controller-at-Large.
Mr. Gidney became Vice President and Director of the Citizens
Trust Company in Buffalo in 1923 and later was Vice President of
the Marine Trust Company in that city.
In 1924 he returned to
the New York Federal Reserve Bank and during the next 20 years
was successively Controller-at-Large, Controller of Loans,
Assistant Deputy Governor, Deputy Governor, Assistant Federal
Reserve Agent and Vice President.
On September 16, 1944, he was
named President of the Federal Reserve Bank of Cleveland and
assumed his duties on November 1 that year.
Mr. Gidney served as a member of the Board of Education of
Ridgewood, New Jersey, from 1930 to 1944, was President of
Robert Morris Associates, 1936-38, and President Qf the Cleveland
Community Fund in 1952.
Nominated by President Eisenhower to be Comptroller of the
Currency on March 27* 1953* he was confirmed by the Senate on
April 2 and assumed office on April 1 6 , 1953.
Mr. Gidney and Jean Ellison Brock were married on
September 6 , 1913.
They have three sons, James Brock, Dean Robert,
and John Archibald,
Their home is at 19101 Van Aken Boulevard,
Shaker Heights, Ohio.
0 O0
April, 1 9 5 3 .
* 19 *
features of our tax laws are our objectives#
We shall
proceed as promptly as we can with recognition that our
recommendations must be consistent with our primary
objective of maintaining a sound budget position#
m
mmSm
T^:
If
-TC
wq
S
I 18 |
As a final point, I should like to comment briefly
on the subject of the administration of the tax laws.
The
policy of this Administration is to Interpret the laws
fairly and without any bias or attempt to secure indirectly
something that has not been authorised by the Congress.
This attitude has already been made clear under the able
and vigorous leadership of Commissioner Andrews.
With tax laws and business transactions as complex as they
are, there are many opportunities to twist the
administration of the law to reflect the bias or social
philosophy of an administrative group.
We shall earnestly
endeavor to avoid all such misuses of administrative
discretion and to remove such examples as now exist.
We
shall administer the law as it Is, not as some of us might
think it should be.
Changes in the law should be made by
the Congress, not by administrative fiat*
And in the
process of collecting the revenue fairly and honestly, it
is as much to the credit of a revenue agent to discover
that a taxpayer has made an overpayment as it is to discover
a deficiency and collect an additional tax*
I wish that we could foresee enough reduction in
expenditures in the immediate future to permit us to
recommend all the adjustments which we find desirable*
Simplification and removal of inequities and the repressive
a ls o adding some i n d u s t r ia l a cco u n ta n ts and men with
e x p e rie n ce in th e Bureau o f I n te r n a l Revenue to the
A n aly sis S t a f f .
We w ill th us be ab le to have a l l
problems and p ro p o sa ls review ed by law y ers, eco n o m ists,
a c c o u n ta n ts , and a d m in is tra to rs w ith p r a c t i c a l exp erien ce
in
eld «
xn our own in v e s tig a tio n s in the T re a s u ry , we are
v e ry happy to be a b le to work c l o s e l y w ith th e s t a f f o f the
C o n g ressio n al J o i n t Committee on I n te r n a l Revenue T axation
and th e s t a f f s o f th e House Ways and Means Committee and
th e Senate Fin an ce Com m ittee• The T reasu ry p o lic y
o f f i c i a l s and s t a f f a re a ls o working c l o s e l y w ith o f f i c i a l s
o f the Bureau o f I n te r n a l Revenue.
C o lla b o ra tio n between
C o n g re s sio n a l, Bureau o f I n te r n a l Revenue, and T reasu ry
groups should speed up th e p ro c e s s o f s e cu rin g changes in
th e law which a re sound from a p o lic y sta n d p o in t and
a d m in is tr a tiv e ly f e a s i b l e .
W hatever su g g e stio n s we make to Congress f o r ta x
l e g i s l a t i o n w ill be th e r e s u l t o f the most c a r e f u l p o ssib le
stu d y in an e f f o r t to determ ine what i s f o r the good o f
the e n t i r e Nation«
When we do make th ose recom mendations,
i t i s w ith in th e power o f Congress to do w ith them as i t
may see f i t «
Congress has t h a t f u l l r e s p o n s ib ility «
A ction on some o f th e fo re s o in g teohiilc& l p o in ts
w ill b rin g in a d d itio n a l revenue#
On o t h e r s , i t w ill
in v o lv e revenue lo s s e s o f v a rio u s s i z e s •
In view o f the
v e ry t i g h t budget p o s i t i o n , some o f th e reform s which are
c l e a r l y d e s ir a b le may have to be postponed o r in trod u ced
on a lim ite d s c a l e .
We hope to have a few th in g s done
t h i s y e a r ; a good many may be done n e x t y e a r , and o th e rs
w ill have to go o v er u n t i l th e re has been s u b s ta n tia l
re d u ctio n in e x p e n d itu re s*
From my comments you w ill a p p r e c ia te th e f a c t th a t
th e in v e s tig a tio n s and p lan n in g on t a x m a tte rs a t the
T re asu ry a re feeing c a r r i e d ou t on a c o n s id e ra b le s c a le #
F o r tu n a te ly , th e re have been o v er th e p a s t s e v e r a l y ears
a good many e x c e l l e n t s tu d ie s and p ro p o sa ls on ta x
p o licie s .
The tro u b le in th e p a s t has been a la c k of
a c t i o n , n o t o f study#
We a re now c o n s u ltin g w ith v ario u s
groups which have been exam ining th e o p e ra tio n of our ta x
system#
The f i n a n c i a l and economic a s p e c ts o f th e work in
th e T reasu ry i s under th e d i r e c t i o n o f P r o f e s s o r Dan Smith
who i s on le a v e from the H arvard B u sin ess School to
su p e rv ise ou r new A n aly sis S ta f f #
On th e l e g a l s id e ,
Hr# Kenneth Gemmlll o f P h ila d e lp h ia has j u s t join ed the
T reasu ry to su p e rv ise th e L eg al A dvisory S t a f f #
We are
Cal'
- 15 The provisions for crediting foreign income taxes
against the United States Income tax represents one
attempt to remove such double taxation*
treatment, however, may not foe adequate*
The present
Modifications
of the existing law must be made with care, however, to
prevent the creation of loopholes throiigh which domestic
income is in some way converted into tax-exempt foreign
The abuses arising under the rule adopted in 1951
by which earned income attributable to activities abroad
by anyone who is outside the country for 17 out of 18
months is a conspicuous example of the need for care in
creating a new provision in the law*
Secretary Humphrey
has already recommended changes in that part of the law
to remove the abuses*
Expense accounts may also be abused by those in
position to take advantage of them*
Their use and misuse
require close scrutiny*
I shall not take time to list further specific
problems in the formulation of tax policy*
X hope that
our approach to such problems and our point of view will
be apparent from the foregoing examples.
Our objectives
are (l) to simplify the system as much as we can, (2) to
remove inequities, and (3) to develop a system which will
impose the least obstacles
country
to the economic growth of the
« 14 -
Tii S
t h i s a r e a ln o lu é s s c o n s id e r a tio n o f <i6fl.fii1il.on8 , pat@8|
h old in g p e r io d s , and th e tre a tm e n t o f c a p i t a l l o s s e s ,
r
There a r e many problem s i s th e f i e l d o f tax-exem p t
a c t i v i t i e s • C h a rita b le and e d u c a tio n a l o r g a n is a tio n s have
p ro p e rly been made tax-exem p ts b u t abuses may d evelop when
th e tax-exem p t s t a t u s i s used a s a c lo a k to c o v e r co m p etitive
b u sin ess a c t i v i t i e s *
The complex s u b je c t o f th e t a x t r e a t
ment o f c o o p e ra tiv e a s s o c i a t i o n s r e q u ir e s s p e c ia l stu d y ,
e s p e c i a l l y in view o f th e p re s e n t h igh l e v e l o f ta x r a t e s .
The issu a n ce and use o f tax-exem p t s e c u r i t i e s a ls o
r a i s e s problems co n cern in g b oth th e f a i r n e s s and th e economic
e f f e c t s o f th e ta x sy stem .
The low er r a t e s o f r e tu r n on such
s e c u r i t i e s in the m arket by no means r e f l e c t t h e i r ta x
advantage to v e ry high b ra c k e t in v e s to r s #
The f a c t th a t the
t a x - f r e e s e c u r i t i e s e x i s t d i v e r t s in vestm en t funds from the
f i e l d o f p r iv a te e n te r p r is e where th ey a re most needed.
A
new problem has a r is e n in co n n ectio n w ith th e use o f tax-exem pt
s e c u r i t i e s to fin a n ce m u n icip a lly owned i n d u s t r ia l p la n ts .
The commission on in terg o v ern m en tal r e l a t i o n s proposed
by P re s id e n t Eisenhow er w i l l presum ably review th e whole
s u b je c t o f F e d e r a l - s t a t e - l o c a l t a x and f i s c a l r e l a t i o n s .
The T reasu ry would p a r t i c i p a t e in th e exam in ation o f t h is
s u b j e c t .- i #
The p ro p er t a x a t i o n o f income d eriv ed abroad
r a i s e s d i f f i c u l t and im p ortan t problems o f t a x p o l i c y .
I n t e r n a tio n a l double t a x a t i o n should c l e a r l y be avo id ed .
13
We hope to he a b le t o p erm it g r e a t e r d i s c r e t i o n
by management in th e tim in g o f d e p r e c ia tio n d e d u ctio n s.
In th e
lon g ru n , some l i b e r a l i s a t i o n o f p re s e n t r u l e s ,
me a r e s a t i s f i e d , w i l l in c r e a s e t o t a l in v e stm e n t, th e
n a tio n a l Income and, in c id e n ta lly # t o t a l t a x revenues
a t any g iv en l e v e l o f t a x r a t e s *
o b je c tiv e .
We a r e c l e a r on th e
The problem i s one o f th e method o f change
and th e tim in g o f i t s adoption*
Some l i b e r a l i s a t i o n
©ay be made in th e r e g u la tio n s , w h ile o th e rs may re q u ire
le g is la tio n .
I/The s u b je c t o f th e p ro p er tre a tm e n t o f c a p i t a l
g a in s and lo s s e s i s a p e re n n ia l o n e.
Bona f id e
lo n g -term c a p i t a l g a in s a r e c l e a r l y q u ite d i f f e r e n t
than o rd in a ry incomes th ey re p re s e n t a ta x -p a y in g
c a p a c ity but th ey do n o t c o n s t i t u t e income in any
o rd in a ry sen se*
To en courage r is k y in vestm ent and to
p erm it f l u i d i t y in in vestm en t m a rk e ts, th e r a t e s o f
t a x on such g a in s must be k ept a t re a s o n a b le l e v e l s .
However, a s u b s t a n t i a l ly low er r a t e o f t a x on c a p i t a l
g a in s than on o rd in a ry income p ro v id es a te m p ta tio n to
c re a te
^ordinary income
t o co n v e rt
in to cap ib aX ^gain s *
Our a n a ly s is in
12
When one turns fro© the general subject of
balance among the major forms of taxation to consider
©ore detailed and technical aspects of particular
forms of taxation, several problems are conspicuous,
I shall mention a few of them briefly.
One of the first subjects we are examining is the
whole area of the tax treatment of pension and
retirement plans and of the so-cailed
fringe benefits.
Various discriminations have developed over the past
several years# with results that are Quite illogical.
In this area we need, above all other things,
clarification and simplification.
Another principal topic is that of the proper
treatment of depreciation in computing the taxable
income of business.
The problem here is one of timing;
how rapidly should an investment in plant and equipment
be written off?
In the long run, the same total
amount will be charged as an expense under any of
various systems, but the speed of permissible writing
off ©ay have a profound effect on the willingness to
incur the Inevitable risks that arise in investments
In fixed assets.
In developing a proper balance among the three
principal sources of revenue, individual income,
corporate lincome, and excise taxation, we must be
careful not to adopt doctrinaire altitudes concerning
the supposed advantages of any one form.
without inequities or repressive effects.
When rates
are low, the inequities and adverse economic
consequences may not be too serious 3 but as rates
become higher, the bad features of any one form of
taxation become intolerable,
k diversification of
sources of revenue is likely to give a better
approximation to an acceptable system than can exist
when any one source is pushed to excessive levels.
In general, I believe that the Individual income
tax should be relied on as the principal source of
revenue, and it should be used to give the desired
degree of progression to the whole tax system.
This
progression should, needless to say, be based on
reasoned Judgments and not be punitive or confiscatory.
But so long as total revenue requirements are large,
a broad and diversified tax system will minimize both
inequities and repressive economic pressures.
III1''
**■
**
In view of total revenue needs* it appears that
continuing reliance will have to be placed on excise
taxation*
Excise taxes In the United JStates bring In a
relatively small proportion of total tax revenues in
■
1;f|.
comparison with other countries.
In the fiscal year
1952* we received 13*7 percent from all excises combined
and only 7*4 percent from excises other than those on
tobacco and beer* wine and liquor*
B y contrast* Canada#
in fiscal year 1952* secured 24.2 percent of total federal
tax revenues from excises and 15*2 percent fro# those on
other than tobacco and intoxicating beverages*
fh®
greater reliance on excises in Canada has not been
unrelated to the ability to reduce income tax rates
substantially as was done recently in that country*
whose Investments have provides the equity capital
upon which our whole industrial system has been built.
Without adequate dividends to justify continuing invest
ment, we should have to look to a drying up of our
traditional pattern of formation and expansion of industry.
To the extent that corporate profits are not distributed
as dividends, they constitute additional capital for
expansion by existing successful companies•
Thus,
whether distributed or retained, reasonable legitimate profits
are a part of the foundation of our whole economic system.
The critical point in corporate taxation cannot be
predicted in advance or determined with any high degree
of accuracy.
I suggest, however, that at rates around
$0 percent it becomes a major and not a minor factor in
business considerations•
Excise taxation constitutes the third principal
source of revenue in this country, and in this area we
have both immediate and long-run problems*
Excise taxes are now imposed in a not very
systematic manner on a variety of things, some of which
are true luxuries and some of which are very common
necessities.
Furthermore, some of the items taxed are
produced by prosperous industries while others are
supplied by industries that are in some distress even at
the present general high levels of business.
After the adoption of the Sixteenth Amendment in 1913#
income taxation, both individual and corporate, developed
rapidly under the financial pressures of the first World
War,
It has been the principal source of revenue since
1918, with the exception of a few years in the 1930*3
when income tax revenues dried up during the depths of
the depression.
Individual income taxation is considered by many to
be the ideal form of taxation because it is direct in its
impact and because the rates and definition of income
can be adjusted to whatever may be the prevailing concepts
of ability to pay.
If only modest revenue were required,
taxes on individual incomes might well be used as
virtually the sole source.
Since, however, the pressure
of threats from abroad and the national desire to carry
on a considerable variety of domestic governmental functions
make it necessary to secure large total revenues, a '
dominant reliance on any single form of taxation is likely
to lead to its breakdown.
Corporate income taxation is the second major
source of taxation in this country,
fhls tax also may
be pushed to a breaking point.
Corporate profits, when distributed as dividends,
are the necessary reward to the many millions of stockholders
Beyond th e se two immediate p rob lem s, we have th e more
fundam ental one o f attem p tin g to work ou t a s tr u c tu r e of
t a x a tio n which w i l l have th e l e a s t p o s s ib le in e q u itie s
and a t th e same tim e impose minimum r e s t r i c t i o n s on the
c o u n try ’ s economic system *
You w ill n o te t h a t I have in
e f f e c t r e f e r r e d to th e l e a s t bad, r a t h e r than th e b e s t , ta x
system *
I t i s , I th in k , im p ortan t to keep in mind the
f a c t th a t no ta x system can be p o s i t i v e l y good*
in e v ita b ly burdensome and r e s t r i c t i v e *
I t is
We can hope only
t o minimise th e im pact o f the s a c r i f i c e s and th e
consequences o f th e r e s t r i c t i o n s *
The c r i t e r i a f o r m o d ific a tio n o f th e t a x system were
s t a t e d by P re s id e n t Eisenhow er in h is S ta te o f th e Union
Message when he s a id :
We must develop a system o f ta x a tio n
which w ill impose th e l e a s t p o s s ib le o b s ta c le
to th e dynamic growth o f th e cou n try« T his
in clu d e s p a r t i c u l a r l y r e a l o p p o rtu n ity f o r the
growth o f sm all b u s in e s se s * Many read ju stm en ts
in e x i s t i n g ta x e s w ill be n e c e s s a ry to se rv e
th e s e o b je c tiv e s and a ls o to remove e x i s t i n g
in e q u itie s * C l a r i f i c a t i o n and s im p lif ic a tio n
in th e ta x laws a s w ell as th e r e g u la tio n s w ill
be u nd ertak en*11
The most b a s ic is s u e in any t a x s tr u c t u r e i s the
b alan ce between th e d i f f e r e n t m ajor s o u rc e s o f reven u e.
During most o f ou r c o u n try ’ s h i s t o r y , we have r e l i e d
on cu stom s, th e s a le o f p u b lic la n d s , and e x c is e s *
§ 6
on this subject*
£n spite of Its appealing name,
leads to a whole series of undesirable consequences*
It penalises thrift and economy; it limits the growth of
all successful companies and especially hampers the growth
of small and new companies; its existence distorts
balanced management judgments because of the understandable
but undesirable dominance of tax factors In all sorts of
business problems *
Any long continuation of this form
of taxation could not be justified because It is
incompatible with healthy economic growth.
The reduction in individual income taxes, now
scheduled to go into effect at the end of this year, Is
of great importance because of the very heavy tax burdens
now pressing on people at all Income levels*
Again, I
need not elaborate on the fact that tax rates are close
to the all-time high in most brackets, with levels that at
many points exceed even the peak rates reached during
pipi■
either of the two World Wars. The expenditures arising
from the defense emergency require and justify such
taxes as are necessary to avoid Inflationary deficits,
but when tax burdens are as onerous as they now are,
the strictest economy is also necessary to keep these
burdens at the minimum consistent with national safety.
We want to return as much spending as possible from
Government to private hands.
90S
on this subject
la
t limits the growth of
It penalises thrift/ a
e a ^ œ e a p e c i a l l y hampers the growth
/
a n t e s ! its existence distoriy
of small a n
balanced amoa^meiit judgments b e c m i s s ^ ^ ^ l E ^ ’mderat^ifdable
tax factors in all sorts of
but und^iirable deg
~4 *ny lo n g continuation of this fora
of taxation could not be Juatlfled beeauae It la
Incompatible w i t h heal t h y economic growth.
A
reduction in individual income taxes ^ i i a w f
s o h c f l u l i il t n
tffT "TTTTr
,aniS“’11
is
of great importance because of the ve r y heavy tax burdens
n o w pressing on people at all Income levels *
Again, 1
need not elaborate on the fact that tax rates are close
to the all-time hi g h in m o s t brackets, with levels that at
many points exceed ev e n the p e a k rates reached during
either of the two World Wars.
The expenditures arising
from the defense emergency require and justify such
taxes as are n e c essary to avoid inflationary deficits,
but w h e n tax burdens are as onerous as they n o w are,
the strictest economy is also necessary to kee p these
burdens at the m i n i m u m consistent wi t h national safety.
We want to return as m u c h spending as possible from
-
Government to private hands.
)
|
T
nf?
o .v
«**
0»
securities to the trust fund are used In the same w a y . ^ s j
the proceeds of sales of government securities to private
Investors* and if these sums had not been available
through the trust funds it would have been necessary to
sell United States Government securities in probably
the same amounts to private i n v e s t o r s •
Regardless of wh i c h budget concept is used the
deficit projected for next year would be seriously
inflationary, especially w i t h the very high level of
business activities n o w prevailing*
In line wi t h objectives
of the Administration to halt the inflation w h i c h has so
seriously been cutting into the real value of the dollar
for more than a d e c a d e , assurance that a balanced budget
was in sight has been stated b y President Eisenhower to
be necessary before tax reduction could be made safely*
A n intensive review of budgets has been proceeding
I
/
since January 21 in all D e p a r t m e n t s .
figures are finally determined,
Until the expenditure
judgment on the proper
timing of tax reduction mus t be suspended*
Though there is still u n c ertainty as to when
recommendations for tax reductions m ay be made s a f e l y ,
there Is no doubt or disagreement as to their desirability
and to the direction of the first reductions*
It is not necessary to elaborate^defect of the socalled excess profits tax.
Almost everyone is agreed
Host of the differences between the two budgets are
accounted for b y additions to the trust account in the
Old Age Insurance and other retirement funds,
Under these
systems funds have been collected on a contributory basis
V;
;
in excess of the payments*
F o r instance* under the Old
Age Insurance plan, there is n o w a balance of $1? billion
resulting from the excess of receipts since 1936 , including
interest, over the expenditures.
It is n o w generally agreed
that further large additions to this fund are not
necessary and it is expected that with the increase in
expenditures that the system will gradually reach a payas-you-go basis.
Under these conditions, the difference
between the cash and administrative budgets will also
gradually decline.
These reserve funds are invested exclusively in
United States Government securities.
It is rather surprising
that criticism still exists to the effect that these
excess receipts after being invested in Treasury securities
are used to p ay for governmental activities.
It should
be clear upon reflection that United States Government
securities are the only proper fo r m of investment for
these funds*
It would be foolish to hoard the cash and
it would not be wise to invest these Government funds in
private securities, j The proceeds of the sales of these
II /+ I
The budgetary deficit for fiscal year 1954 was based upon the
assumption that tax reductions would do Into effect as scheduled
under existing legislation.
The excels profits tax is due to
expire on June 30; this would involve an annual loss in taxes of
a little over $2 billion.
Its expiration has come to be tied
up with H. R. 1/ which would advance the scheduled December 31
cutback on personal income tax
June 30, with a loss of revenue
in the affected six months of about $1.3 billion, or $3 billion
a year.
The corporation income tax rate, under present law, will
dr2P-Jk2pm.52 to 47 percent on March 31* 1954, resulting in
a<yearly^revenue loss of about $2 billion.
Also, on March 31,
1954, certain excise taxes, which bring in about $1 billion a year,
are due to be reduced.
These four changes would result in an
annual decline in tax revenue of about $8 billion.
The deficit figures which I have cited are the familiar ones
from the so-called administrative or conventional budget.
The
January estimates of the deficits in the cash budget were $1.9 and
$6.6 billion for the current fiscal year and 1954, respectively.
For many purposes, the position of the cash budget Is important
since it indicates the net Impact of the G o v e r n m e n t s receipts and
expenditures on the country’s economic activities.
On a short-run
basis, a balance in the cash budget may be taken to indicate that
the Government is paying its way by taxes and not pumping any new
money or credit into the country’s economic system.
'tSSSSZ«wft
basis, the conventional budget is also important because the additional charges wh
Most of the differences between the two budgets are accounted
for by additions to the trust account in the Old Age Insurance and ^
other retirement funds.
Under these systems funds have been
collected on a contributory basis in excess of the payments. For repj
instance, under the Old Age Insurance plan, there is now a balance
of $17 billion resulting from the excess of receipts since 193o, obli
Including interest, over the expenditures.
It is now generally
agreed that further large additions to this fund are not necessary fj
and it is expected that with the increase in expenditures that thefutj
system will gradually reach a pay-as-you-go basis.
Under these pay!J
conditions, the difference between the cash and administrative
budgets will also gradually decline.
These r e s e r v e f u n d s a re i n v e s t e d e x c l u s i v e l y in Unit e d States
G o v e r n m e n t securities.
It is r a t h e r s u r p r i s i n g that criticism
s t ill e x i s t s to the e f f e c t that these e x c e s s r e c e i p t s a f ter being
i n v e s t e d in T r e a s u r y s e c u r i t i e s are u s e d to p a y f o r governmental
activities.
It s h o u l d be c l e a r u p o n r e f l e c t i o n that United States
G o v e r n m e n t s e c u r i t i e s a re the o n l y p r o p e r f o r m of investment ior
t h e s e funds.
It w o u l d b e f o o l i s h to h o a r d the c a s h and it
n o t b e w i s e to i n vest t h ese G o v e r n m e n t f u n d s in p r i v a t e securiti
- 3 -
These four changes would result In an annual decline
in tax revenue of about
#8
billion»
The deficit figures w h i c h X have cited are the
familiar ones fro» the so-called administrative or
conventional b u d g e t .
The January estimates of the
deficits in the cash budget wer e $1.9 ®**d $6.6 billion
for the current fiscal ye a r and 195^# respectively,
f o r many purposes, the p o sition o f the cash
budget is important since it indicates the net impact
of the G o v e r n m e n t 1s receipts and expenditures o n the
coun t r y 1© economic activities.
O n a short-run
basis, a balance in the cash budget may b e taken
to Indicate that the Government is p a y i n g its way
by taxes and not p u m p i n g any new m o n e y o r credit
into the c o u n t r y 1s economic system.
fiscal year will be substantially below the estimates
contained in President Truman*s Budget Message of
January,
Though the amount involved is no greater than
is likely to occur at times in view of the difficulties
of forecasting revenue receipts, the error is on the
wrong side*
The budgetary deficit for fiscal year 193^ was
based upon the assumption that tax reductions would go
into effect as scheduled under existing legislation.
The excess profits tax is due to expire on June 30;
this would Involve an annual loss in taxes of a little
over $2 billion.
Its expiration has come to be tied
up with H. ft-* 1, which would advance the schgduj^r
December 31 cutback on personal income tax/to June 30,
L X
with a loss of revenue In the affected six month® of
about $1,5 billion, or $3 billion a year.
The
corporation income tax rate, under present law, will
drop from 52 to $7 percent on March 31* 193^, resulting
in a yearly revenue loss of about $2 billion,
Also,
on March 31, 195^, certain excise taxes, which bring
in about $1 billion a year, are due to be reduced.
S.Hr"oo
l:
■
-
While it is not yet possible to make any definite
statement about either the prospects for tax reduction
or the details of the A d m i nistration1s long-range tax
program, I am gl a d to have this opportunity to talk to
you about some of our problems and to indicate some
of the objectives wh i c h we have developed during the
past three months in the T r e a s u r y .
Secretary Humphrey in his statement before the
Treasury Sub-committee on Appropriations stated the
general goal of the Treasury as follows:
wIt Is o ur purpose In the Treasury to
help provide the prop e r economic climate in
America*
The fiscal policy is very important
in determining that climate w h i c h is i n
tangible but has a direct effect upon the
lives of each of us every day.
It is o ur
purpose to establish and maintain such fiscal
policies as will permit America to continue
to grow and reach even h i gher standards of
living for all its p e o p l e .*
This first problem is, of course, the immediate one
of getting control o f the budgetary situation.
We
confronted with a prospective deficit of $ 5,9
billion in the fiscal year ending this June,
and with
a budgeted deficit of $ 9.9 bill i o n for the next fiscal
year*
It n o w appears that receipts for the current
0
£ 1w
ADDRESS Bï MARION B. FOLSOM, WDM SEGRETARI OF THE TREASURY
BEFORE SPECIAL TAX OdlFBBSiOl OF THE
•NATIGHAL INDUSTRIAL «
U
M
BOARD
f t
»
HOTEL ASTOR
K M , um YORK
APRIL 16, 1953
12*30 P.Mo
(
Q *7
■
c f1
TREASURY DEPARTMENT
Washington
FOR RELEASE ABOUT 12:30 P.M.
Thursday, April 16, 1953.
H-95
Address by Marion B. Folsom, Under
Secretary of the Treasury before the
Special Tax Conference of the National
Industrial Conference Board, Hotel
Astor, New York City, April 16, 1953,
12:30 P.M.
While it is not yet possible to make any definite statement
about either the prospects for tax reduction or the details of the
Administration's long-range tax program, I am glad to have this
opportunity to talk to you about some of our problems and to
indicate some of the objectives which we have developed during the
past three months in the Treasury.
Secretary Humphrey in his statement before the Treasury
Sub-committee on Appropriations stated the general goal of the
Treasury as follows:
"It is our purpose in the Treasury to help provide
the proper economic climate in America.
The fiscal
policy is very important in determining that climate
which is intangible but has a direct effect upon the
lives of each of us every day.
It is our purpose to
establish and maintain such fiscal policies as will
permit America to continue to grow and reach even
higher standards of living for all its people.”
This first problem is, of course, the immediate one of getting
control of the budgetary situation.
We were confronted with
a prospective deficit of $5.9 billion in the fiscal year ending
this June, and with a budgeted deficit of $9.9 billion for the next
fiscal year.
It now appears that receipts for the current fiscal
year will be substantially below the estimates contained in
President Truman's Budget Message of January.
Though the amount
involved is no greater than is likely to occur at times in view of
the difficulties of forecasting revenue receipts, the error is on
the wrong side.
2
The budgetary deficit for fiscal year 1954 was based upon the
assumption that tax reductions would go into effect as scheduled
under existing legislation.
The excess profits tax is due to
expire on June 30; this would involve an annual loss in taxes of
a little over $2 billion.
Its expiration has come to be tied
up with H. R. 1, which would advance the scheduled December 31
cutback on personal income tax to June 30., with a loss of revenue
in the affected six months.of about $1.5 billion, or $3 billion
a year.
The corporation income tax rate, under present law, will
drop from 52 to 47 percent on March 31, 1954, resulting in a
yearly revenue loss of about $2 billion.
Also, on March 31, 1954,
certain excise taxes, which bring in about $1 billion a year, are
due to be reduced.
These four changes would result in an annual
decline in tax revenue of about $8 billion.
The deficit figures which I have cited are the familiar ones
from the so-called administrative or conventional budget.
The
January estimates of the deficits in the cash budget were $1.9 and
$o.6 billion for the current fiscal year and 1954, respectively.
For many purposes, the position of the cash budget is important
since it indicates the net impact of the Government1s receipts and
expenditures on the countryTs economic activities.
On a short-run
basis, a balance in the cash budget may be taken to indicate that
the Government is paying its way by taxes and not pumping any new
money or credit into the country’s economic system.
But on a longer
term basis, the conventional budget is also important because the
additional charges which are included in it represent obligations
for future pajmients.
Most of the differences between the two budgets are accounted
for by additions to the trust account in the Old Age Insurance and
other retirement funds.
Under these systems funds have been
collected on a contributory basis in excess of the payments.
For
U1?der the Old Age Insurance plan, there Is now a balance
oi |17 billion resulting from the excess of receipts since 1936,
including interest, over the expenditures.
It is now generally
agreed that further large additions to this fund are not necessary
and it is expected that with the increase in expenditures that the
system will gradually reach a pay-as-you-go basis.
Under these
conditions, the difference between the cash and administrative
budgets will also gradually decline.
These reserve funds are invested exclusively in United States
government securities.
It is rather surprising that criticism
. ill exists to the effect that these excess receipts after being
invested in Treasury securities are used to pay for governmental
activities. It should be clear upon reflection that United States
government securities are the only proper form of investment for
nese funds. It would be foolish to hoard the cash and it would
be wise to invest these Government funds in private securities.
- 3 -
The proceeds of the sales of these securities to the trust fund
are used in the same way as the proceeds of sales of government
securities to private investors, and if these sums had not been
available through the trust funds it would have been necessary to
sell United States Government securities in probably the same *
amounts to private investors.
Regardless of which budget concept is used the deficit
projected for next year would be seriously inflationary, especially
with the very high level of business activities now prevailing.
In line with objectives of the Administration to halt the inflation
which has so seriously been cutting into the real value of the
dollar for more than a decade, assurance that a balanced budget
was in sight has been stated by President Eisenhower to be
necessary before tax reduction could be made safely.
An intensive review of budgets has been proceeding since
January 21 in all Departments.
Until the expenditure figures are
finally determined, judgment on the proper timing of tax
reduction must be suspended.
Though there is still uncertainty as to when recommendations
for tax reductions may be made safely, there is no doubt or
disagreement as to their desirability and to the direction of the
first reductions.
It is not necessary to elaborate on the defect of the socalled excess profits tax.
Almost everyone is agreed on thi 3
subject. Any long continuation of this form of taxation could
not be justified because it is incompatible with healthy economic
growth.
A reduction in individual income taxes is of great
importance because of the very heavy tax burdens now pressing on
people at all income levels.
Again, I need not elaborate on the
fact that tax rates are close to the all-time high in most
brackets, with levels that at many points exceed even the peak
rates reached during either of the two World Wars.
The
expenditures arising from the defense emergency require and justify
such taxes as are necessary to avoid inflationary deficits, but
when tax burdens are as onerous as they now are, the strictest
economy is also necessary to keep these burdens at the minimum
consistent with national safety.
We want to return as much
spending as possible from Government to private hands.
Beyond these two immediate problems, we have the more
fundamental one of attempting to work out a structure of taxation
which will have the least possible inequities and at the same time
impose minimum restrictions on the country’s economic system.
You
will note that I have in effect referred to the least bad, rather
than the best, tax system.
It is, 1 think, important to keep in
mind the fact that no tax system can be positively good.
It is
•inevitably burdensome and restrictive,
We can hope only to
minimise the impact of the sacrifices and the consequences of the
restrictions.
The criteria for modification of the tax system were stated
by President Eisenhower in his State of the Union Message when he
ScllQ •
” ... We must develop a system of taxation which
will impose the least possible obstacle to the dynamic
growth of the country.
This includes particularly real
opportunity for the growth of small businesses.
Many
readjustments in existing taxes will be necessary to
serve these objectives and also to remove existing
inequities.
Clarification and simplification in the
tax laws as well as the regulations will be undertaken.
The most basic issue in any tax structure is the balance
between the different major sources of revenue.
During most of
our country’s history, we have relied on customs, the sale of
public lands, and excises.
After the adoption of the Sixteenth
Amendment in 1913* income taxation, both individual and corporate,
developed rapidly under the financial pressures of the first World
War. It has been the principal source of revenue since 1918,
with the exception of a few years in the 1 9 3 0 Ts when income tax
revenues dried up during the depths of the depression.
Individual income taxation is considered by many to be the
ideal form of taxation because it is direct in its impact and
because the rates and definition of income can be adjusted to
whatever may be the prevailing concepts of ability to pay.
If
only modest revenue were required, taxes on individual incomes
wight well be used as virtually the sole source.
Since, however,
the pressure of threats from abroad and the national desire to
carry on a considerable variety of domestic governmental functions
ftake it necessary to secure large total revenues, a dominant
neliance on any single form of taxation is likely to lead to its
breakdown.
378
- 5 Corporate income taxation, is the second major source of
taxation in this country.
This tax also may he pushed to
a breaking point.
Corporate profits, when distributed as dividends, are the
necessary reward to the many millions of stockholders whose invest
ments have provided the equity capital upon which our whole
industrial system has been built.
Without adequate dividends to
justify continuing investment, we should have to look to a drying
up of our traditional pattern of formation and expansion of
industry.
To the extent that corporate profits are not distributed
as dividends, they constitute additional capital for expansion by
existing successful companies.
Thus, whether distributed or
retained, reasonable legitimate profits are a part of the foundation
of our whole economic system.
The critical point in corporate taxation cannot be predicted
in advance or determined with any high degree of accuracy.
I suggest, however, that at rates around 50 percent it becomes
a major and not a minor factor in business considerations.
Excise taxation constitutes the third principal source of
revenue in this country, and in this area we have both immediate
and long-run problems.
Excise taxes are now imposed in a not very systematic manner
on a variety of things, some of which are true luxuries and some
of which are very common necessities.
Furthermore, some of the
items taxed are produced by prosperous industries while others are
supplied by industries that are in some distress even at the
present general high levels of business.
In view of total revenue needs, it appears that continuing
reliance will have to be placed on excise taxation.
Excise taxes
in the United States bring in a relatively small proportion of
total tax revenues in comparison with other countries.
In the
fiscal year 1952, we received 13.7 percent from all excises
combined and only 7.4 percent from excises other than those on
tobacco and beer, wine and liquor.
By contrast* Canada, in fiscal
year 1952, secured 24.2 percent of total federal tax revenues from
excises and 1 5 . 2 percent from those on other than tobacco and
intoxicating beverages.
The greater reliance on excises in Canada
has not been unrelated to the ability to reduce income tax rates
substantially as was done recently in that country.
In developing a proper balance among the three principal
sources of revenue, individual Income, corporate income, and
excise taxation, we must be careful not to adopt doctrinaire
attitudes concerning the supposed advantages of any one form.
379
-
6
-
No tax is w i t h o u t i n e q u i t i e s or r e p r e s s i v e effects.
When rates
are low, the i n e q u i t i e s a nd a d v e r s e e c o n o m i c c o n s e q u e n c e s m a y not
be too serious; b ut as r a t e s b e c o m d higher, the b a d f e a t u r e s of
any one f o r m of t a x a t i o n b e c o m e i n t o l e r a b l e .
A d i v e r s i f i c a t i o n of
sources of r e v e n u e is l i k e l y to give a b e t t e r a p p r o x i m a t i o n to an
a c c e ptable s y s t e m t h a n c an e x i s t w h e n a n y one source is p u s h e d to
excessive levels.
In general, I b e l i e v e that the i n d i v i d u a l i n c o m e tax should
be r e l i e d o n as the p r i n c i p a l source of revenue, a n d it should be
used to g ive the d e s i r e d d e g r e e of p r o g r e s s i o n to the w h o l e t ax
system.
This p r o g r e s s i o n should, n e e d l e s s to say, be b a s e d on
reasoned jud g m e n t s a n d not be p u n i t i v e or c o n f i s c a t o r y , - B ut so
long as total r e v e n u e r e q u i r e m e n t s are large, a b r o a d and
d i v e r s i f i e d t a x s y s t e m wil l m i n i m i s e b o t h i n e q u i t i e s and
repressive e c o n o m i c p r e s s u r e s .
W h e n one t u r n s f r o m the ge n e r a l subject pf b a l a n c e a m o n g the
major f o rms of t a x a t i o n to c o n s i d e r m o r e d e t a i l e d a nd t e c h n i c a l
aspects of p a r t i c u l a r f o r m s of taxation, several p r o b l e m s are
conspicuous.
I shall m e n t i o n a f e w of t h e m briefly.
One of the f i rst s u b j e c t s we are e x a m i n i n g is the w h o l e a r e a
of the tax t r e a t m e n t of p e n s i o n and r e t i r e m e n t p l a n s a nd of the
so-called f r i n g e benefits.
Various discriminations have developed
over the p a s t several years, w i t h r e s u l t s that are quite illogical.
In this a r e a we need, a b o v e ail o t h e r things, c l a r i f i c a t i o n and
simplification.
A n o t h e r p r i n c i p a l topic is that of the p r o p e r t r e a t m e n t of
d e p r e c i a t i o n in c o m p u t i n g the t a x a b l e i n come of business.
The
problem h e r e is one of timing; h o w r a p i d l y s h ould an i n v e s t m e n t
in p l a n t a n d e q u i p m e n t be w r i t t e n o f f ?
In the lon g run, the same
total a m o u n t wil l be c h a r g e d as a n e x p e n s e u n d e r a n y of v a r i o u s
systems, b ut the speed of p e r m i s s i b l e w r i t i n g off m a y hav e
a p r o f o u n d e f fect on the w i l l i n g n e s s to i n c u r t h e ^ i n e v i t a b l e r i sks
that a r ise in I n v e s t m e n t s i n f i x e d assets.
We hop e to be abl e to p e r m i t g r e a t e r d i s c r e t i o n b y m a n a g e m e n t
in the t i m i n g of d e p r e c i a t i o n d e d u c t i o n s .
In the lon g run, some
l i b e r a l i z a t i o n of p r e s e n t rules, we are satisfied, will i n c r e a s e
total investment, the n a t i o n a l income and, i n c i d entally, total
tax r e v e n u e s at a n y g i v e n level of t a x rates.
We are c l e a r on
the objective.
The p r o b l e m Is one of the m e t h o d of c h ange and
the t i m i n g of its adoption.
Some l i b e r a l i z a t i o n m a y be m a d e in
the r egulations, w h i l e o t h e r s m a y r e q u i r e l e g i s lation.
80
- 7 The subject of the p r o p e r t r e a t m e n t of capital g a ins and
l o sses is a p e r e n n i a l one.
Bo n a fide long-term capital gains are
clearly quite different than ordinary income; they represent
a tax-paying capacity but they do not constitute income in any
o r d i n a r y sense.
To e n c o u r a g e r i s k y i n v e s t m e n t a n d to p e r m i t
fl u i d i t y in i n v e s t m e n t markets, the r a t e s of t a x on such g a ins m u s t b
kept at r e a s o n a b l e levels.
However, a substantially lower rate
of t a x o n c a p i t a l g a i n s t h a n o n o r d i n a r y i n c o m e p r o v i d e s
a t e m p t a t i o n to c r e a t e v a r i o u s s o r t s of a r t i f i c a l d e v i c e s to
convert ordi n a r y income into capital gains.
Our analysis in this
area includes c o n s i d e r a t i o n of definitions, rates, h o l d i n g periods,
and the t r e a t m e n t of c a p i t a l losses.
T h e r e a r e m a n y p r o b l e m s i n the f i e l d of t a x - e x e m p t a c t i v i t i e s .
Charitable and educational organisations have properly been made
t ax-exempt, b u t a b u s e s m a y d e v e l o p w h e n the t a x - e x e m p t s t a t u s is
used as a c l o a k to c o v e r c o m p e t i t i v e b u s i n e s s acti v i t i e s .
The
c o mplex s u b j e c t of the t a x t r e a t m e n t of c o o p e r a t i v e a s s o c i a t i o n s
requires special study, e s p e c i a l l y in v i e w of the p r e s e n t h i g h
level of t a x rates.
The i s s u a n c e an d use of t a x - e x e m p t s e c u r i t i e s als o rais e s
p r o b l e m s c o n c e r n i n g b o t h the f a i r n e s s a n d the e c o n o m i c e f f e c t s of
the t a x s y s t e m .
The l o w e r r a tes of r e t u r n on such s e c u r i t i e s in
the m a r k e t b y n o m e a n s r e f l e c t t h e i r t a x a d v a n t a g e t o v e r y h i g h
bracket investors.
The fact that the tax - f r e e sec u r i t i e s exist
diverts i n v e s t m e n t f u n d s f r o m the f i e l d of p r i v a t e e n t e r p r i s e w h ere
they a r e m o s t n e e d e d .
A new problem has arisen in connection with
the u s e o f t a x - e x e m p t s e c u r i t i e s t o f i n a n c e m u n i c i p a l l y o w n e d
industrial plants.
The commi s s i o n on inter g o v e r n m e n t a l r e lations p r o p o s e d b y
President E i s e n h o w e r w ill p r e s u m a b l y r e v i e w the w h o l e s u b ject of
Federal-state-local tax and fiscal relations.
The Treasury would
participate in the e x a m i n a t i o n of this subject.
The p r o p e r t a x a t i o n of income d e r i v e d a b r o a d rai s e s d i f f i c u l t
and i m p o r t a n t p r o b l e m s o f t a x p o l i c y .
International double
taxation should clearly be avoided.
The p r o visions for crediting
foreign income taxes ag a i n s t the U n i t e d States inc o m e tax r e p r e s e n t s
one a t t e m p t t o r e m o v e s u c h d o u b l e t a x a t i o n .
The p r e s e n t treatment,
however, m a y n o t be a d e q u a t e .
M o d i f i c a t i o n s of the e x i s t i n g law
must b e m a d e w i t h c a r e , h o w e v e r , t o p r e v e n t t h e c r e a t i o n o f
loopholes t h r o u g h w h i c h d o m e s t i c i n c o m e is in some w a y c o n v e r t e d
into t a x - e x e m p t f o r e i g n i n c o m e .
381
- 8 The abuses arising under the rule adopted in 1951 by which
earned income attributable to activities abroad by anyone who is
outside the country for 17 out of 18 months is a conspicuous
example.of the need for care in creating a new provision in the
law.
Secretary Humphrey has already recommended changes in that
part of the law to remove the abuses.
Expense accounts may also be abused by those in position to
take advantage of them.
Their use and misuse require close
scrutiny.
I shall not take time to list further specific problems in
the formulation of tax policy.
I hope that our approach to such
problems and our point of view will be apparent from the foregoing
examples.
Our objectives are (l) to simplify the system as much
as we can, (2) to remove inequities, and (3) to develop a system
which will impose the least obstacles to the economic growth of
the country.
Action on some of the foregoing technical points will bring
in additional revenue.
On others, it will involve revenue losses
of various sizes.
In view of the very tight budget position,
some of the reforms which are clearly desirable may have to be
postponed or introduced on a limited scale.
We hope to have a few
things done this year; a good many may be done next year, and
others will have to go over until there has been substantial
reduction in expenditures.
Prom my comments you will appreciate the fact that the
investigations and planning on tax matters at the Treasury are
being carried out on a considerable scale.
Fortunately, there have
been over the past several years a good many excellent studies
and proposals on tax policies. The trouble In the past has been
a lack of action, not of study.
We are now consulting with various
groups which have been examining the operation of our tax system.
The financial and economic aspects of the work in the Treasury
is under the direction of Professor Dan Smith, who is on leave
from the Harvard Business School to supervise our new Analysis
Staff.
On the legal side, Mr. Kenneth Gemmill of Philadelphia
has just joined the Treasury to supervise the Legal Advisory Staff.
We are also adding some industrial accountants and men with
experience in the Bureau of Internal Revenue to the Analysis
Staff.
We will thus be able to have all problems and proposals
reviewed by lawyers, economists, accountants, and administrators
with practical experience in the field.
- 9 *
382
In our own investigations in the Treasury, we are very happy
to be able to work closely with the staff of the Congressional
Joint Committee on Internal Revenue Taxation and the staffs of
the House Ways and Means Committee and the Senate Finance
Committee*
The Treasury policy officials and staff are also
working closely with officials of the Bureau of Internal Revenue.
Collaboration between Congressional, Bureau of Internal Revenue,
and Treasury groups should speed up the process of securing
changes in the law which are sound from a policy standpoint and
administratively feasible.
/
Whatever suggestions we make to Congress for tax legislation
will be the result of the most careful possible study in an effort
todetermine what is for the good of
the entire Nation.
When we
do make those recommendations, it is within the power of Congress
to do with them as it may see fit.
Congress has that full
responsibility.
As a final point, I should like to comment briefly on the
subject of the administration of the tax laws. The policy of this
Administration is to interpret the laws fairly and without any
bias or attempt to secure indirectly something that has not been
authorized by the Congress.
This attitude has already been made
clear under the able and vigorous leadership of Commissioner
Andrews.
With tax laws and business transactions as complex as
they are, there are many opportunities to twist the administration
of the law to reflect the bias or social philosophy of an
administrative group.
We shall earnestly endeavor to avoid all
such misuses of administrative discretion and to remove such
examples as now exist.
We shall administer the law as it Is, not
as some of us might think it should be.
Changes in the law should
be made by the Congress, not by administrative fiat.
And in the
process of collecting the revenue fairly and honestly, it is as
much to the credit of a revenue agent to discover that a taxpayer
has made an overpayment as it is to discover a deficiency and
collect an additional tax.
I wish that we could foresee enough reduction in expenditures
in the immediate future to permit us to recommend all the adjust
ments which we find desirable.
Simplification and removal of
inequities and the repressive features of our tax laws are our
objectives.
We shall proceed as promptly as we can with recognition
that our recommendations must be consistent with our primary
objective of maintaining a sound budget position.
0 O0
TO: MR. BURGESS
Mr. Predmore says this
has your suggested changes may we let it go?
NAL
.
'* *
4/15/53
84
FROM:
Nils A. Lennartson
Room 3420
they may convert those bonds into the new Treasury 3-l/U percent fully marketable
bonds if they desire. )Holders of F and G bonis who wish to convert to the new
issue must make application for the exchange before May 1, 1953 to their bank or
to a Federal Reserve Bank or Branch.
No applications for exchange will be honores
after that date. This offer of exchange does not apply to Series S Savings Bonds
which nature during the same period.
Holders of maturing E Bonds are still privi
leged to hold the same bonds for an additional ten years with interest.
ixchanges of Series F and G Savings Bonds will be made par for par and
will be allotted in full* Since holders of Series F and G bonds will receive
interest on the new bonds at the rate of 3—l/U percent from May 1, 1953, interest
adjustments will be made as follows: In the case of Series F bonds the subscriber
will be charged an amount equivalent to interest from May 1 to date of maturity
of the F bond at the rate of 2.53 percent per annum. In the case of Series G Bond
the owner will receive an interest payment at the rate of 2-1/2 percent per annum
borne by the G bonds, from the last interest payment date to May 1, 1953»
The lowest denomination of the new bonds will be $500.
denomination Series F and G
Holders of smaller
bonds may exchange them for the next higher multiple
of $500 upon payment of any cash difference.
Eligible F and G bond hold ers who do not wish to make the exchange will have
the opportunity of reinvesting the proceeds of their matured bonds in the other
s of Savings Bonds currently on sale, or >»'■ r..cash payment.
The Treasury calls the special attention of all F and G bond holders, in
cluding those corporations and organizations vhich require directors’ finance
committee action, to the limited time available for making application for
exchange
The offer expires April 30.
TR EA SU R Y
D EPA RTM EN T
WASHINGTON, D .C.
Information Service
385
IMMEDIATE RELEASE,
Thursday, April 1 6 , 1953
H-96
Secretary of the Treasury Humphrey today reminded holders
of Treasury Series F and G S a v i n g s ;Bonds which mature between
Ma y 1 and December 31, 1953 they m a y convert those bonds into
the new Treasury 3-1/4 percent fully marketable bonds if they
desire.
Holders £>f such F and G bonds who wish to convert to the new
issue must make application for the exchange before M ay 1, 1953
to their b a n k or to a Federal Reserve B a n k or Branch.
No a p
plicati o n s for exchange will be honored after that date.
This
offer of exchange does not apply to Series E Savings Bonds which
mature during the same period.
Holders of matu r i n g E Bonds
are still privileged to hold the same bonds for an additional
ten years with interest.
Exchanges of Series F and G Savings Bonds will be made
p a r for p ar and will be allotted in full.
Since holders of
Series F and G bonds will receive interest on the n e w bonds
at the rate of 3-1/4 percent from May 1, 1953* interest a d j u s t
ments will be made as follows:
In the case of Series F bonds
the subscriber will be charged an amount equivalent to interest
f r o m May 1 to date of mat u r i t y of the F bond at the rate of
2.53 percent p er annum.
In the case of Series G Bonds, the
owner will receive an interest payment at the rate of 2-1/2
p ercent p er annum borne by the G bonds, from the last interest
payment date to M a y 1, 1953.
The lowest denomination of the n ew bonds will be $500.
Holders of smaller denomination Series F and G bonds m ay e x
change them for the next higher multiple of $500 upon payment
of any cash difference.
Eligible F and G bond holders who do not w i s h to make the
exchange will have the opportunity of reinvesting the proceeds
of their matured bonds in the other series of Savings Bonds
currently on sale, or receive cash payment.
The Treasury calls the special attention of all F and G
bond holders, including those corporations and organizations
which require d i r e c t o r s * finance committee action, to the
limited time available for m a k i n g application for exchange.
The offer expires April 30.
oOo
Secretary of the Treasury Humphrey announced today that
jr
-
the current cash offering of 3 - l A $ Treasury bonds has been
jr
.
\
* r
heavily oversubscribed* f present indications are that total
subscriptions*^!! *eiie»edie<|flfe#SEMH^
Baeliadesi in tWS?
if.
subscriptions rooflived m i uimijr mliirii rasp ^ bwisririy excessive
in relation to the net worth of the^ subscribers, and the
Federal Reserve banks are swwrrnyine these subscriptions
tamed? on this issue will be deferred until
TREA SU R Y
D EPARTM EN T
WASHINGTON, D .C.
Information Service
387
IMMEDIATE RELEASE,
Friday, April 17, 1953-
H-97
Secretary of the Treasury Humphrey announced
today that the current cash offering of 3-1/**$
Treasury bonds has been heavily oversubscribed.
Present indications are that total subscriptions
w h e n processed will be about $52 billion.
Some
subscriptions were excessive in relation to the
net worth of the subscribers,
and the Federal
Reserve banks are reviewing these subscriptions
before allotments can be made.
Precise allotments on this issue will be
deferred until next w e e k in order to give time
to complete this review.
All subscriptions
accepted will be allotted on an equal percentage
basis.
oOo
| i
u . ace is what we ail m a t *
it is
d o thing
to fear,
nor Is ther© any reason for depression. Adjostwots» yes.
But sot depression.
of oi»r money;
So loss as we sain tain the soundness
attain that alee balance between achieving
security from aggression and maintaining economic strength^
t S j W w r 1 eliminate waste and handle our fiscal affairs
with wisdom! America can look forward to good Jobe at good
pay and real advances in cur scale ef living.
Is can have
a stronger economy based on sounder fundamental conditions
than we have known in many years,
I thank you very much for this opportunity of appearing
before you today.
I appreciate it very much indeed.
-10-
eos
farmers, labor and all of you here today in accepting your
freedom to accept the responsibility that goes with it,
if
the American people really want stability they must all con
tribute to it, in the prices they charge, in the wages they
demand and in everything that they do*
They wist exercise
self-restraint from making quick turna to the detriment cf
others and promote in every way possible the long-term thinking
and planning that is tor the ultimate good of all the people*
M
As President Eisenhower said in his great speech in
Washington last Thursday noon;
"The peace we seek, founded upon decent trust and
cooperative effort among nations, can be fortified - not by
weapons of war - but by wheat and by cottons
wool;
by milk and by
by meat and by timber and by rice*
"These are words that translate into every language on
earth*
"These are needs that ehafllenge this world in arms*
*14 ^
"This Government is ready to ask its people to Join
with all nations in devoting a substantial percentage of
saving» achieved by disarmament to a fund for world
aid and reconstruction*
would be:
The purposes of this great work
to help other peoples to develop the undeveloped
areas of the world, to stimulate profitable end fair world
tracto, to assist ail peoples to know the blessings of pro
ductive freedom.
"The monuments to this new kind of war would he these:
roads and schools, hospitals and homes, food and health*
"WW are ready, in short, to dedicate cur strength to
serving the needs, rather than the fears, of the world*"
- 0-
£
' -
operation and exponsí.00, then It «na contribute to depression.
Haré again balease and tining ara oí íirst concern, aad «isa
and eareiuX
0f reíinancing our aneraoua debt atructure
la eí tba grestest iaportaaw.
Thia administration baliavea in the Aaericaa «ay oí lifo
aad la a íree aarkat econoay.
It hallara» that a aost poserful
influonce erar tha years has haaa tha accunulated eítect oí the
lndustry aad aííorts eí so aany oí our propia te adrase» their
osa ínterests jitjííependeatXy aad la their osa «aya.
This «ay
oí liía has «itfasteed «ara aad politiesi aanipulations aad
expensante eí a U kinds.
eí today.
It «i 11 oraroo«s all oí onr bordeas
It is because oí the accua»látiro deaires aad tha
aabitioas oí tha rast atiabar oí our eitiseas to so lira tha ir
liras, that hy thair esa aadaarors tbsy coatiaually adraaoa
their osa peeitieaa that «a ara ^hat «a are today.
So ara
la good banda as long as tha great Aaericaa eoasuasr is ira»
froa artificial rastralnt aad eaa fraaly daeide rhat ha «ill
boy, «boa ha « i U buy aad «hat priesa ha is * U | ¿ a « to pay.
That m a n a that tha productiva and inventiva[pdser and tha
ingenuity oí all Aaerica is ia coapetition íor that coaauaer’s
dollar and aust devoto itaslí to tha creatica oí «oro and
better thiaga st Isas oost in vieing íor his favor.
Basever, írssdoa íor as individual or íor a aation « s t
be Jealoualy guardad and earriss «ith it oorraspoadiag obligatiesa.
Tha Golden Rula still is íuadaaantsl ia huaan rala-
tiona.
fraudas íor tha eitisen iarolvaa aquel raaponaibility
oí tha eitiaas, eaofa íor hiaaali to sea that ha aholly íulíills
it.
Ss aust usa tbis íraadcm íor bis osn adraaoaaent only
to tha extent that it doaa not traapla upoa tha rights oí
hial&Wátor
and eahaaeas tha oouaam good.
It ia tha respon-
aibility oí orary sitiaos oí thia oountry, oí buainaaa a n ,
-9-
M
m m
spendine l t a « U m a nkhtotd
billion
d aM am in IM S to^iS.8 billion i s l i affw b in a a b o u ^ S billi<
-detta*» of t o n i l a
-I ■«»' »•
(m
aid ia tko i
».- IH» .. m »mirar
Trrrnuni i|IWU|M ,,<iW W |iliiiiiwd>*8'rlT1iTril|g|l|t|g||)i|)iiii«iMs,i
d,>»w*>"» ...... .
bava no aueb tranandous reductio» to contanplata or
Capa te fili no«.
Our plani la already geared to increased
oivilian production
Full production in aany l i m a M a r a
pinot capacity has bea» recanti? ao greatly incranaad «ili
refluire reni salea affari and brine bigbly coapatitive tiaaa
in soventi H a a s
Tbat ia «h*t Anerica stantìa
far.
Conpetition la tba lite
our Aaerican syaten.
ot
trada.
It ia ebat has nade
Mora and batter sonda at laaa ooat for
aera paopla ia our aational alee»».
Our fraataat prida ia
our inagination, raaoureofulnaaa aad ingenuity la production,
salas and diatribution.
iat's all prepara te giva tura a
nh«»«. ondar abatavar tba ecsMLtioas Bay be and aaa if «gain
tbey »ili aot produca tba brigbtest day aa bava yet aaan in
Anerloa.
Aa equally iaportant fundaaaatal to praaarva tba aeundness
ef our aoney and flouriabiag trada ia tba a a a a g « * a a t ^ our
buca dabt.
Tba vay in vfaieb it ia baadlad caa alao bava aa
Uportaat tetrìng upoa tconoalc condii iosa aad tbo croatioa
of good or bad tiesse
d stabi# curreacy la osseatlai to
aa e^aadiag I o n i of ooplopseat and
xb
so
*
If ths dobt
«bwagftd as to iacreaso uaduly tbe arailable soaoy
supply, tostar tbe owr-oateasioa of credit aad deprodato
ttom vaia#
of tbe dollar it caa contributo greatly toeard
us rigbt badi iato tisi iaf Xat ioaary spirai of
tises.
recent
Xf, oa tbo other band, tbe dobt is so aaaagod tbat
it draias tbe sarlags of tbe people too rapidiy and ia too
largojwirnt» so as to uaduly rostriot credit? dspross
prioos aad d e r i v o industry of tàs fuads roquirod for full
7
The reduction of taxes, ooreoover, is one of the best
guarantees we have against tbs fear of depression, in tbs
event that pesos ashes possible curtailment of Covernoent
defease spending.
It is essential that, as Ooveraaent
expenses are brought under control, as waste is eliainated,
and as Ooveraaent spending is gradually reduced, that taxes
oust also be reduced as rapidly as Ooveraaent spending
declines.
if we return to the oitiaens as rapidly as possi
ble the savings we sake in Ooveraaent expenses the people
willVhsve the ooaey to spend for themselves in their o w n
way what the Ooveraaent has been spendiag'|or wastingji-for
them.
The people eaa spend their own aoney for their own
account and is their own way for what they want aush better
than the Ooveraaent can spend it for them.
The scale of
living for all the people will increase, the deaaad for
production will continue, jobs will be plentiful, and
everyone will be better off,
Plans for increased expenditures of funds for civilian
needs axe already under way in aaay quarters and aany more
will follow if it appomra that theUpportuaity for effectively
dolag ao is approaching.^.The planning divisions of several
O m r a i a m t o r M ^ t i a i B t s are preparing for etndiea.
The
rmanorin separtaent baa already issued one fine report
"Markets after the Defense «sponsion" end is engaged in
further study.
Many associations of business, faraera and
labor organlastions should and will bo giving active thought
to alterant# pinna that will boat nerve the interests, not
only of their own asnbers, but of a^l the people. |
after the Inst war we decreased.total^Governaent expend!
bores in Just two years f r o a ^ M .7 billion deWeew ia
^ 39.3
billion deM o e s in
1948
to
1947.
v1
(( |our deficit wns decreased in the naae period froa n
defieit o A l
and
1949.
billies doM suw» in
1948
to surpluses in
1947
Bore adequately ire* thront froe abroad than bloviag tirai
hot u d
tuen cold la estranea et e n t i » aa «e bave toeea
deiag elaoe lorldJRar
11.^"
fTelk of a truce la Korea, or eres aa actual truce, vili
not bave aa early iaportant iniluence oa thè rate et ailltary
apeadlag.
0
^Control of ear eapeaeee le vital ta our success, bat
that le only part of thè torte.
Bgually iaportant la balancias
thè budget le thè aaoaat et Iacea» «e heve te apead.
lavolvee tares, and that le
concern.
motm a
setter ot «y owa iaeedlate
Alno, that le «Mire thè Aeerican peeple
♦ t o o part.
That
mmt
do
Taxen ahould aot be reduced aatll expenses are
«urtar control.\ ..floth should eoa» dova tegether, bat only aa
a batanee le ebtalasir fuerais ao eaey vay to cerrect oar
fiscal exoeaeea of past yeare.
all aloag thè lise.
Bovever,
»e eaet stand aad tate© it
that doee aet aeaa th^t ao
relief tre» present tesatine, vhlrti le far tee hlgh./caB he
anticipated.
dova.
Just thè opposite le trae.
Tares aast co»»
It*a alaply a aatter ot tialag geared te reduetioa
et espeaae.
Both are tee high aad beth Must be reduoed.
la additioa
tbere aeet be a radicai revlalea et ear tax
ayate» te better previde thè iaoeatlvee for thè creati«»
et aere Job» for »«re peeple aad ter thè eeblag et
netter
maieheaper
goods for t U thè peepl»,
***** ar* aii
laoluded la thè eoet et llviag, ao aatter vhat ter» they
tabe, hat they are »ore destructivo et iaitlative la eries
fonai thea othsrs.
Tssee teday ceatrlhate greatly to high
eoets and t*»e high prioce et everythlng ve hay,
The preaent
tea syeteà'Weatens te ititi# laltleUve, expension and
ultiaatsly Jebe.
A better baleaeed systea le reguired.
V* are confronted, not with a problem, bat With a dilemma,
which simply
two problems at the same time •
we must
seek sad find that delicate balance which will give os the
necessary military preparedness for defense against outside
attaek while always continuing to maintain our economic
strength at home.
Those are dual problems and must be
simultaneously solved.
|0jThe first st|p is solving them is to achieve a sound
currency.
History demonstrates that whenever currency
deterioration has started it tends to continue at as ever
increasing rate, the faster the further it goes.
Unless
courageous, determined^, corrective action is takes in time it
finally speeds entirely out of control and finishes in utter
collapse.
has
The first half of the depreciation of our dollar
occurred.
The programs and conditions which this
Administration inherited would have accelerated that pace.
Stopping that spiral is imperative.
\\ j a w essential to accomplish this goal is to bring our
fsdsral expenditures under control and st tbs ssrlisst possi
ble time balance then with our income.
This cannot be dons
|y| n ffllmite V i t h BttCh l i TgV
tracted'la^^SSttsaedj
*
COB**
But it is not too late, if we are
tough enough, to make real and early progress in that direction
BW i start at once.
ciency.
Pear and indecision sever meke for effi
Haste makes waste.
Bore defense for less mosey is
perfectly practical and a possible accomplishment,
neither
can this be done in a minute, hut it is in the cards and on
the way.
Deliberate, not timid, carefully planned objectives,
jk witto price tags attached and efficiently pursued both for
ourselves and our allies will provide a posture of defense
against outside aggression that can and will be maintained
over whatever period nay be required.
This will protect us
S o^ jc;
A/V^
o-ic&tow to <bjwk
■^
L'1
e
^
-
SC 6
-fv^W'-' M — "■*
t
1
a&r+J, 4 4
€ x a a M J>
«ÌU--WW
* * * * 4 s™ ~ *'
)M > ~ * -
I
3
/
y
/A
excess of B 78 $billionj ii IiIwwif/ fhich involves a
|10
jjniiiIr^nT" deficit over the nnt legated revenues.
found that
^
/billionji
the proposed future programs)/eonte*plated billions of dollars
of deficits in each of the next j_four or five] years.
We have
a tax structure that is already so high that it is adding tre
mendously to our cost of living and threatening to destroy the
incentive to work and save and invest.
This is our legacy.
0 [lt
This is what we face today.
is far from a pretty picture.
Bet it is by no means
an impossible one in view of the great strength of our country
and the vigor and resourcefulness of our people.
Our inheri
tance of obligations both immediate and planned is staggering«
but not yet beyond our powers of control.
self-discipline and determined action.
It will take rigid
But over a period of
titae, if we resolutely hold our course to definite objectives,
it need give us no fear.
What is it we have been so hurriedly preparing to preserve?
Is it Just our lives?
Mo.
Ihat ss ars really trying
to preserve is our Aserican say of liie.^That ia shat ss have
fought for over the years.
That is shat se
must
always pre
serve and alsays protect. Confronted sith a crisis^
4W
hastened' to protect it fro* outside aggression without regaru
to cost in a feverish rush to preparedness.
Mut se eust not
forget that our say of life is threatened, not fro* one, but
fro* two source, at th. same tf**.j It can be lost just as
completely
by economic deterioration fro* w i W i h w
Sion fro* without.
by aggro*
In fact, economic deterioration sill not
•sip destroy our say of life, but it sill destroy the very
■sans by which ss seek to protect it fro* aggression.
the
economicstrength
It is
of America that has supplied the sinews
<\
for ourselves and for our allies to fight two great wars.
-
3-
- 3 It can be lost just as completely by economic deterioration from
within as by aggression from .without.
In fact, economic
deterioration will not only destroy our way of life, but it will
destroy the very means by which we seek to protect it from
aggression.
It is the economic strength of America that has
supplied the sinews for ourselves and for our allies to fight two
great wars. We are confronted, not with a problem, but with
a dilemma, which simply means two problems at the same time. We
must seek and find that delicate balance which will give us the
necessary military preparedness for defense against outside attack
while always continuing to maintain our economic strength at home.
Those are dual problems and must be simultaneously solved.
The first step in solving them is to achieve a sound currency.
History demonstrates that whenever currency deterioration has
started it tends to continue at an ever increasing rate, the
faster the further it goes.
Unless courageous, determined,
corrective action is taken in time it finally speeds entirely
out of control and finishes in utter collapse.
The first half
of the depreciation of our dollar has already occurred.
The
programs and conditions which this Administration inherited would
have accelerated that pace.
Stopping that spiral is imperative.
One essential to accomplish this goal is to bring our federal
expenditures under control and at the earliest possible time
balance them with our incomeL
This cannot be done in a minute
with such large^ future otoJLigat 1,0ns already contracted and m<wc\
m I.
But it is not too late, if we are tough enough, to
make real and early progress In that direction and start at once.
Pear and Indecision never make for efficiency.
Haste makes
waste.
More defense for less money is perfectly practical and
a possible accomplishment.
Neither can this be done in a minute,
but it is in the cards and on the way.
Deliberate, not timid,
carefully planned objectives, with price tags attached and
efficiently pursued both for ourselves and our allies will provide
a posture of defense against outside aggression that can and will
be maintained over whatever period may be required.
This will
protect us more adequately from threat from abroad than blowing
first hot and then cold in extremes of emotion as we have been
doing since World War II,
Talk of a truce in Korea, or even an
actual truce, will not have an early important influence on the
rate of military spending.
Control of our expenses is vital to our success, but that
Is only part of the task. Equally important in balancing the
budget is the amount of Income we have to spend.
That involves
taxes, and that is more a matter of my own immediate concern.
Also, that is where the American people must do their part.
Taxes should not be reduced until expenses are under control.
2
For several years past we have been treading a dangerous
path* one from which we have now turned.
It is not too late to
make the turn and avoid the inevitable consequences for which we
were directly headed.
For twenty years we have been consistently
following unhealthy policies that induced inflation, depreciated
our currency and threatened to exhaust our credit.
Over that
period our dollar has shrunk from the hundred cents we started
with to approximately fifty cents today. We have artificially
manipulated our interest rates and have actually printed billions
of dollars of purrent indebtedness which is only narrowly removed
from printing money.
As & result of vacillating foreign policies
we found ourselves at war In Korea and In the midst of a feverishly
improvised program of vast military spending.
We found that
a so-called police action had turned into a real war.
M
I1
^
We now find ourselves with over $2 6 7 billion in total
/
/indebtedness.
Of this amount $32 billion matures every ninety^
J days, and there are over $175 billion of total maturities in/less
^
than five years. We have inherited outstanding obligations/of
iC-^jgl b illion which will have ta ba
in 195^ and futurer/ years, ke were handed a proposed budget for next year’s
yJ
expenditures in excess of $78 billion, which involves a^ $10 billionx, |
deficit over the anticipated revenues. We- found that the proposed
fixtiJU,<#aipfllugx,amS|[|contemp 1 ated billions of dollars of deficits In
^'-ea'Ch of thS^tfext
.¿¡toe years. We have a tax structure
l$J
/
that is already so high that it is adding tremendously to our cost
’
of living and threatening to destroy the incentive to work and
save and invest.
\f4/£Ydl
This is our legacy.
This is what we face today.
It Is far from a pretty picture.
But it is by no means an
impossible one in view of the great strength of our country and
the vigor and resourcefulness of our people.
Our inheritance of
obligations both immediate and planned Is staggering, but not yet
beyond our powers of control.
It will take rigid self-discipline
and determined action.
But over a period of time, if we
resolutely hold our course to definite objectives, it need give
us no fear.
What is it we have been so hurriedly preparing to preserve?
Is it just our lives?
No. What we are really trying to preserve
is our American way of life.
That Is what we have fought for
over the years.
That is what we must always preserve and always
protect.
Confronted with a crisis,we hastened to protect It
from outside aggression without' regard to cost in a feverish rush
to preparedness. But we must not forget that our way of life is
v,^+- -p-M^rn o r o
'hvrh
t w d samiY»nas a t t h e same time.
80:
our way of life through another long» deep depression and we
mist newer permit it to occur.
The reeouroes and
tte
£
*
resourcefulness of our country are
such that the dismal days of depression need not ooour unless
we ouiselves, we American citiaens» fail to have the strength
and fortitude to avoid the excesses of speculative hoom and
deal with readjustments when they are necessary*
i
fjpor several years past we have been treading a dangerous
i, one from which we have now turned*
It is not too late
to make the turn and avoid the inevitable consequences for
M i c h we were directly headed,
for twenty years we have been
consistently following unhealthy policies jdinmipMS8l|M|M>tb*t
induced inflation» depreciated our currency and threatened to
exhaust our credit*
Over that period our dollar has shrunk
from the hundred cents we started with to approximately fifty
cents today,
fe have artificially manipulated our interest
rates and have actually printed billions of dollars of current
indebtedness which is only narrowly [removed from printing
money.
As a result of vacillating foreign policies we found
ourselves at war in Korea and in the midst of a feverishly
improvised program of vast military spending,
fe found that
y
a so-called police action had turned^nto a real war.
in
fe now find ourselves with over ^267 billion
total indebtedness.
Of this amount* 32 billion
matures every ninety days» and there are over^lYS billion
«0
«jggygMv of total maturities in less than^f^ve years
81 billion indiews
have inherited outstanding obligations
—
which will have to be paid.fe* in
1®§4
—
-----
—
■—
“—
and future years, ft
were handed a proposed h*idget for next year’s expenditures in
«
j
For R c tetK-e
///»'/*?♦
tf<T3
Address by Secretary of the treasury, George JC. Humphrey
at the Annual Luncheon of the Members of the Associated
Press. Ballroom, Waldorf Hotel, Hew York City, at Is00 p.m#
Monday, April 20, 1953
There is no reason to fear peace,
le are not headed for depression*
Sons people in this country are talking as though they
sere afraid of peace*
striving to attain*
Peace is M a t se are sorking and
to achieve peace se are helping our
friends and strengthening our own defenses, on the theory
that an ounce of prevention is sorth a pound of cure.
peace America grew great*
In
It was in peace that we grew
strong and rich and accumulated the homes, plants, farms,
mines and transportation, that saw us through two wars*
It was wars that brought us debt and tames and inflation*
^ / why then should any one fear peace?
the reason as
1
understand it is that some people fear for the strength of
our own economic position if Government spending for defense
is reduced*
of peace*
they fear a free economy devote^to the pursuits
Such thinking is entirely unjustified*
We are
not going to have a depression in America whether we have an
armietief., a real peace, or continue to develop a proper and
balanced posture of defense.
there is no reason for a depres
sion unless we fall ourselves to do the things we ought to do
and lack the courage and foresight to do them*
3
|jhere will be readjustments, of course*
There are
always readjustments taking place in any active economy,
sometimes to the advantage or detriment of one group and
sometimes to another,
But depression, Mo*
le cannot preserve
4
TREASURY DEPARTMENT
Washington
F O R R E L E A S E 1 : 0 0 P.M.
Monday, A p r i l 20, 19P 3
H-98
A d d r e s s by S e c r e t a r y of the Treasury,
George M. H u m p h r e y at the Annual
M e m b e r s of the
3 B a l l room, W a l d o r f
C juty, at 1 à00 p .m .,
'
, 1-953.
Monday, A pri
T h e r e is no r e a s o n to f e a r peace.
W e are n ot h e a d e d for d epression.
S o m e p e o p l e in this c o u ntry are t a l k i n g as t h o u g h they w e r e
a f r a i d of peace.
Peace is w h a t we are w o r k i n g a n d s t r i v i n g to
attain.
To ac h i e v e p e a c e w e are h e l p i n g o ur friends a n d s t r e n g t h e n
ing our o wn defenses, on the t h e o r y that a n o u nce of p r e v e n t i o n is
w o r t h a p o u n d of cure.
In p e a c e A m e r i c a g r e w great.
It w as in
p e a c e that we g r e w s t r o n g and r i c h a n d a c c u m u l a t e d the homes,
plants, farms, m i n e s a nd t r a n s p o r t a t i o n , that saw us t h r o u g h two
wars.
It w as w a r s that b r o u g h t us debt a n d taxes a n d inflation.
T he r e a s o n as I u n d e r
W h y dien s h o u l d any one f e a r peace?
stand it is that some p e o p l e f e a r f o r the s t r e n g t h of c ur own
economic p o s i t i o n if G o v e r n m e n t s p e n d i n g for d e f e n s e is reduced.
They f e a r a free e c o n o m y d e m o t e d to the p u r s u i t s of peace.
Such
t h i n k i n g is e n t i r e l y u n j u s t i f i e d .
We are not g o i n g to hav e
a d e p r e s s i o n in A m e r i c a w h e t h e r w e h a v e an a rmistice, a real peace,
or c o n t i n u e to d e v e l o p a p r o p e r a nd b a l a n c e d p o s t u r e of defense.
There 5.3 no r e a s o n fo r a d e p r e s s i o n u n l e s s w e fail o u r s e l v e s to
d o the things w e ought to do a nd lac k the c o u r a g e a n d f o r e s i g h t
to do t h e m .
T h e r e are alwa y s
T h e r e wi 1 be readju s t m e n t s , of course.
r e a d j u s t m e n t s t a k i n g p l a c e in any a c t i v e economy, s o m e t i m e s to
d e t r i m e n t of one g r o u p and s o m e t i m e s to another.
the a d v a n t a g e o
B ut depression, No.
W e c a n n o t p r e s e r v e o ur w a y of life t h r o u g h
a n o t h e r long, d e e p d e p r e s s i o n a nd w e m u s t n e v e r p e r m i t it to o c c u r
The r e s o u r c e s a n d the r e s o u r c e f u l n e s s of o ur c o u n t r y are
such that the dismal days of d e p r e s s i o n n e e d no t o c c u r u n l e s s we
ourselves, w e A m e r i c a n citizens, fail to h a v e the s t r e n g t h and
for t i t u d e to a v o i d the exc e s s e s of s p e c u l a t i v e b o o m a n d deal
w i t h r e a d j u s t m e n t s w h e n they are n e c e ssary.
401
2
F or several y e a r s p a s t we h ave b e e n t r e a d i n g a d a n g e r o u s
path, one f r o m w h i c h we have n o w turned.
It is not too late to
m a k e the t u r n a nd a v o i d the i n e v i t a b l e c o n s e q u e n c e s f o r w h i c h we
were d i r e c t l y headed.
F o r t w e n t y y e a r s we h ave b e e n c o n s i s t e n t l y
f o l l o w i n g u n h e a l t h y p o l i c i e s that i n d u c e d i n f l a t i o n , d e p r e c i a t e d
our c u r r e n c y and t h r e a t e n e d to e x h a u s t o ur c r e d i t . Over that
p e r i o d o ur d o l l a r has s h r u n k f r o m the h u n d r e d cents we started
w i t h to a p p r o x i m a t e l y f i f t y cents today.
We hav e a r t i f i c a l l y
manipulated o ur i n t e r e s t rates a nd h a v e a c t u a l l y p r i n t e d b i l l i o n s
of d o l l a r s of current I n d e b t e d n e s s w h i c h is onl y n a r r o w l y r e m o v e d
from p r i n t i n g money.
As a r e s u l t of v a c i l l a t i n g f o r e i g n p o l i c i e s
we f o u n d o u r s e l v e s at w a r In K o r e a and In the m i d s t of a f e v e r i s h l y
I m p r o v i s e d p r o g r a m of v ast m i l i t a r y spending.
We f o u n d that
a s o - c a l l e d p o l i c e a c t i o n h a d t u r n e d i nto a real war.
We now find ourselves with over $26? billion in total indebted
ness. , Of this amount $32 billion matures every ninety days, and
there are over $175 billion of total maturities in less than five
years.
We have inherited outstanding obligations and unsatisfied
authorizations to spend government funds of $8 l billion which will
have to be paid from revenues in 1954 and future years.
We were
handed a proposed budget for next y e a r ’s expenditures in excess of
$78 billion, which involves a $10 billion deficit over the
anticipated revenues.
In addition to deficits of about $4 billion in 1952, $6 billion
in 1953 and $10 billion in 1954, we found that the programs in effect
and proposed contemplated billions of dollars of deficits in each of
the next several years.
We have a tax structure that Is already so
high that it is adding tremendously to our cost of living and
threatening to destroy the incentive to work and save and invest*
Thi s is o ur legacy.
Thi s is w h a t we face today.
It is f ar f r o m a p r e t t y picture.
But it is b y no m e a n s an
impossible one in v i e w of the great s t r e n g t h of o u r c o u n t r y a nd the
vigor and r e s o u r c e f u l n e s s of o ur people.
O ur i n h e r i t a n c e of
obligations b o t h i m m e d i a t e and p l a n n e d is staggering, but not yet
beyond o ur p o w e r s of control.
It will take r i g i d s e l f - d i s c i p l i n e
and d e t e n n i n e d action.
But o v e r a p e r i o d of time, if we
resolutely h o l d ou r course to d e f i n i t e objectives, it n e e d give us no
fear.
What is it we h a v e b e e n so h u r r i e d l y p r e p a r i n g to p r e s e r v e ?
Is it just o u r l i v e s ?
No.
What we are r e a l l y t r y i n g to p r e s e r v e
is our A m e r i c a n w a y of life.
That is what we h ave f o ught for
over the years.
That is wha t we m u s t a l w a y s p r e s e r v e and a l w a y s
protect.
C o n f r o n t e d w i t h a crisis, we h a s t e n e d to p r o t e c t it
from o u t side a g g r e s s i o n w i t h o u t r e g a r d to cost in a f e v e r i s h rus h
to p r e p a r e d n e s s .
But we m u s t not f o rget that our w a y of life is
threatened, not f r o m one, but f r o m two sources at the same time.
3
It c a n be lost just as c o m p l e t e l y b y e c o n o m i c d e t e r i o r a t i o n f r o m
w i t h i n as b y a g g r e s s i o n f r o m without.
In fact, e c o n o m i c
d e t e r i o r a t i o n will not o n l y d e s t r o y our w a y of life, but it will
d e s t r o y the v e r y m e a n s b y w h i c h we see k to p r o t e c t it f r o m
a g g r e ssion.
It is the e c o n o m i c s t r e n g t h of A m e r i c a that has
s u p p l i e d the sinews f o r o u r s e l v e s a n d f o r o u r a l l i e s to f i g h t two
great wars.
We are confronted, not w i t h a problem, but w i t h
a dilemma., w h i c h s i m p l y m e a n s two p r o b l e m s at the same time.
We
mu s t s e e k a n d f i n d that d e l i c a t e b a l a n c e w h i c h will g i v e ^ u s the
necessary military preparedness for defense against outside attack
w h ile a l w a y s c o n t i n u i n g to m a i n t a i n o u r e c o n o m i c s t r e n g t h at home.
Those are dual p r o b l e m s a n d m u s t be s i m u l t a n e o u s l y solved.
B
®
The f i rst step in s o l v i n g t h e m is to a c h i e v e a sound c u r r e n c y
H i s t o r y d e m o n s t r a t e s that w h e n e v e r c u r r e n c y d e t e r i o r a t i o n has
st a r t e d it tends to c o n t i n u e at an e v e r i n c r e a s i n g rate, the
f a s t e r the f u r t h e r it goes.
U n l e s s courageous, dete r m i n e d ,
c o r r e c t i v e a c t i o n is t a k e n in time it f i n a l l y speeds e n t i r e l y
out of control a n d f i n i s h e s in u t t e r collapse.
The f i r s t h a l f
of the d e p r e c i a t i o n of our d o l l a r ha s a l r e a d y occurred.
The
p r o g r a m s a nd c o n d i t i o n s w h i c h this A d m i n i s t r a t i o n i n h e r i t e d w o u l d
have a c c e l e r a t e d that pace.
S t o p p i n g that spiral is imperative.
One e s s e n t i a l to a c c o m p l i s h this goal is to b r i n g o ur f e d eral
e x p e n d i t u r e s u n d e r co n t r o l a n d at the e a r l i e s t p o s s i b l e tame
b a l a n c e t h e m w i t h our income.
T h i s cannot be done in a m i n u t e
w i t h such large f u t u r e e x p e n d i t u r e s a l r e a d y c o n t r a c c e d for.
But it is not too late, if we are t o u g h enough, to m a k e real
and e a r l y p r o g r e s s in that d i r e c t i o n a nd start at once.
Fear
and i n d e c i s i o n n e v e r m a k e f o r e fficiency.
H a ste m a k e s waste.
More d e f e n s e f o r less m o n e y is p e r f e c t l y p r a c t i c a l a n d a p o s s i b l e
a c c o m p l i s h m e n t . N e i t h e r can this be don e in a minute, but it
is in the cards a n d o n . t h e way.
Deliberate, not timid,
c a r e f u l l y p l a n n e d objectives, w i t h p r i c e tags a t t a c h e d and
e f f i c i e n t l y p u r s u e d b o t h f o r o u r s e l v e s a n d o ur a l l i e s will p r o v i d e
a p o s t u r e of d e f e n s e a g a i n s t o u t s i d e a g g r e s s i o n that can a nd will
be m a i n t a i n e d o v e r w h a t e v e r p e r i o d m a y be required.
T his w ill
p r o t e c t us m o r e a d e q u a t e l y f r o m t h r e a t f r o m a b r o a d t h a n b l o w i n g
first h ot a nd t h e n cold in e x t r e m e s of e m o t i o n as we h ave b e e n
doing since W o r l d War II.
T a l k of a t r uce in Korea, or e v e n an
actual truce, will not h a v e a n e a r l y i m p o r t a n t i n f l u e n c e on the
rate of m i l i t a r y spending.
C o n t r o l of o ur e x p e n s e s is v i t a l to o ur success, b u t that
is o n l y p a r t of the task.
E q u a l l y i m p o r t a n t in b a l a n c i n g tne
b u dget is the a m o u n t of income we hav e to spend.^ T hat i n v o l v e s
taxes, a n d that is m o r e a m a t t e r of m y own i m m e d i a t e concern.
Also, that is w h e r e the A m e r i c a n p e o p l e m u s t do t h e i r part.
Taxes should not be r e d u c e d u n til e x p e n s e s are u n d e r control.
B o t h s h o u l d come d o w n together, b u t only as a b a l a n c e Is o b t a i n a b l e
T h e r e is no easy w a y to c o r r e c t o ur fiscal exc e s s e s of pas t years.
Me m u s t s t and a n d t a k e It all a l o n g the line.
However, that
does not m e a n that no r e l i e f from p r e s e n t taxation, w h i c h Is
far too high, can b e a n t i c i p a t e d .
Just the o p p o s i t e is true.^
Taxes m u s t come down.
It*s s i mply a m a t t e r of t i m i n g g e a r e d to
r e d u c t i o n of expense.
B o t h are too h i g h a n d b o t h m u s t be reduced.
In a d d i t i o n there m u s t be a r a d i c a l r e v i s i o n of o ur tax s y s t e m
to b e t t e r p r o v i d e the i n c e n t i v e s for the c r e a t i o n of m o r e jobs
f or m o r e p e o p l e a n d for the m a k i n g of m o r e b e t t e r a n d c h e a p e r
goods f or all the people.
Taxes are all I n c l u d e d In the cost of
living, no m a t t e r w h a t form they take, b ut they a r e m o r e
d e s t r u c t i v e of I n i t i a t i v e in some forms t h a n others.
Taxes today
c o n t r i b u t e g r e a t l y to h i g h costs a n d the h i g h p r i c e s of e v e r y
t h i n g w e buy.
T he p r e s e n t tax s y s t e m thr e a t e n s to stifle
initiative, e x p a n s i o n a nd u l t i m a t e l y jobs.
A better balanced
s y stem is required.
T he r e d u c t i o n of taxes, m o r e over, is one of the b e s t
g u a r a n t e e s we hav e a g a i n s t the f e a r of depression, in the event
that p e a c e m a k e s p o s s i b l e c u r t a i l m e n t of G o v e r n m e n t d e f e n s e
spending.
It is e s s ential that, as G o v e r n m e n t e x p e n s e s are
br o u g h t u n d e r control, as w a s t e is eliminated, a n d as G o v e r n m e n t
s p e n d i n g Is g r a d u a l l y reduced, that taxes m u s t a l s o be reduced, as
ra p i d l y as G o v e r n m e n t s p e n d i n g d e c l i n e s . If w e r e t u r n to the
citizens as r a p i d l y as p o s s i b l e the savings w e m a k e In G o v e r n m e n t
expenses the p e o p l e w i l l h a v e the m o n e y to s p end f or the m s e l v e s
in t h e i r o wn w a y V7ha t the G o v e r n m e n t has b e e n s p e n d i n g — or
wasting
for them.
The p e o p l e can s p e n d t h e i r own m o n e y for
their o wn a c c o u n t a nd in t h eir o wn w a y fo r w h a t they w a n t m u c h
b e t t e r t h a n the G o v e r n m e n t can s p e n d it fo r them.
The s c ale of
living for all the p e o p l e w i l l Increase, the d e m a n d for
p r o d u c t i o n w i l l continue, jobs w i l l b e plentiful, a n d ev e r y o n e
will be b e t t e r off.
Plans for i n c r e a s e d e x p e n d i t u r e s of funds f or c i v i l i a n n e e d s
are a l r e a d y u n d e r w a y in m a n y q u a rters a n d m a n y m o r e w i l l f o l l o w
if it a p p ears that the o p p o r t u n i t y for e f f e c t i v e l y d o i n g so is
approaching.
The p l a n n i n g d i v i s i o n s of several G o v e r n m e n t a l
D e p a r t m e n t s are p r e p a r i n g for s t u d i e s . T h e C o m m e r c e D e p a r t m e n t
has a l r e a d y i s s u e d one fine r e p o r t ’’M a r k e t s A f t e r the D e f e n s e
E x p a n s i o n ” a n d is e n g a g e d in f u r t h e r study.
Many associations
of business, f a r mers a n d l a b o r o r g a n i z a t i o n s s h o u l d a n d w i l l be
g i ving a c t i v e t h o u g h t to a l t e r n a t e p l a n s that w i l l b e s t serve
the interests, no t only of t h e i r o w n members, but of al l the
people.
404
- 5 A f t e r the last w a r w e d e c r e a s e d the rat e of total G o v e r n m e n t
e x p e n d i t u r e s in just two yea rs f r o m $ 96.7 b i l l i o n in 194 5 to
$ 39.3 b i l l i o n i n 1947.
Our deficit was decreased in the same period frpm a deficit
of $51 billion in 1945 to surpluses in 1947 and 1946«
s p e n d i n g i t s e l f w a s r e d u c e d fro m $90.5 b i l l i o n in
$5 b i l l i o n of f o r e i g n aid in
the same two y e a r s . W e h a v e no s u c h t r e m e n d o u s r e d u c t i o n s to
c o n t e m p l a t e or gaps to fill now.
O u r p l a n t is a l r e a d y g e a r e d to
i n c r e a s e d c i v i l i a n prod u c t i o n .
Defense
1945 to $ 16,8 b i l l i o n plus a b out
P ull p r o d u c t i o n in m a n y lines w h e r e p l a n t c a p a c i t y has b e e n
r e c e n t l y so g r e a t l y i n c r e a s e d w i l l r e q u i r e real sales e f f o r t a n d
b r i n g h i g h l y c o m p e t i t i v e times in s e v e r a l lines.
B u t do we f e a r comp e t i t i o n ?
T h a t is w h a t A m e r i c a stands
for.
C o m p e t i t i o n is the life of trade.
It is w h a t has m a d e our
A m e r i c a n system.
M o r e a n d b e t t e r g o o d s at less cost f or m o r e
p e o p l e is o ur n a t i o n a l slogan.
O u r g r e a t e s t p r i d e is our
imagination* r e s o u r c e f u l n e s s a n d i n g e n u i t y in prod u c t i o n * sales
and distribution.
L e t ’s all p r e p a r e to g i v e them a chance u n d e r
w h a t e v e r the c o n d i t i o n s m a y be a n d see if a g a i n t hey w i l l not
p r o d u c e the b r i g h t e s t d ay w e h a v e y et s e e n i n America.
A n e q u a l l y i m p o r t a n t f u n d a m e n t a l to p r e s e r v e the so u n d n e s s
of o u r m o n e y and f l o u r i s h i n g trade is the m a n a g e m e n t of our
hug e d e b t . The w a y in w h i c h it is h a n d l e d can a l s o h a v e an
i m p o r t a n t b e a r i n g u p o n ec o n o m i c c o n d i t i o n s and the c r e a t i o n of
g o o d or b a d times.
A s t a b l e c u r r e n c y is e s s e n t i a l to a n e x p a n d i n g
level of e m p l o y m e n t a n d p r o s p e r i t y .
If the d ebt Is so m a n a g e d as
to i n c r e a s e u n d u l y the a v a i l a b l e m o n e y supply* f o s t e r the o v ere x t e n s i o n of credit a n d d e p r e c i a t e the v a l u e of the d o l l a r it
can c o n t r i b u t e g r e a t l y t o w a r d p u s h i n g us r i g h t b a c k into the
i n f l a t i o n a r y spiral of r e c e n t times.
If* on the o t h e r hand*
the deb t is so m a n a g e d that it d r a i n s the s a v ings of the p e o p l e
too r a p i d l y a n d in too l a rge a m o u n t s so as to u n d u l y r e s t r i c t
credit* d e p r e s s p r i c e s a n d d e p r i v e i n d u s t r y of the funds r e q u i r e d
for full o p e r a t i o n a n d expansion* t h e n it c a n c o n t r i b u t e to
depression.
Her e a g a i n b a l a n c e a n d t i m i n g are of first concern,
and w i s e a n d careful h a n d l i n g o f r e f i n a n c i n g our eno r m o u s debt
s t r u c t u r e is of the g r e a t e s t Importance.
This a d m i n i s t r a t i o n b e l i e v e s in the A m e r i c a n w a y of life
and in a free m a r k e t economy.
It b e l i e v e s that a m o s t p o w e r f u l
inf l u e n c e o v e r the years has b e e n the a c c u m u l a t e d e f f e c t of the
i n d ustry a n d e f f orts of so m a n y of ou r p e o p l e to a d v a n c e t h e i r
own I n t e r e s t s i n d e p e n d e n t l y a n d I n t h e i r o w n ways.
Thi s w a y
405
-
6
-
of life has withstood wars and political manipulations and
experiments of all kinds.
It will overcome all of our burdens
of today.
It is because of the accumulative desires and the
ambitions of the vast number of our citizens to so live their
lives, that by their own endeavors they continually advance their
own positions that we are what we are today. We are In good hands
as long as the great American consumer is free from artificial
restraint and can freely decide what he will buy, when he will
buy and what prices he Is willing to pay.
That means that the
productive and Inventive power and the Ingenuity of all America
Is in competition for that c o n s u m e r ^ dollar and must devote
itself to the creation of more and better things at less cost in
vying for his favor.
However, freedom for an Individual or for' a nation must be
jealously guarded and carries with It corresponding obligations.
The Golden Rule still is fundamental in human relations.
Freedom
for the citizen involves equal responsibility of the citizen,
each for himself to see that he wholly fulfills It.
He must use
this freedom for his own advancement only to the extent that it
does not trample upon the rights of his neighbor and enhances
the common good.
It is the respdnsibilit 27 of every citizen of
this country, of business men, farmers, labor and all of you nere
today in accepting your freedom to accept the responsibility that
goes with it.
If the American people really want stability tney
must all contribute to it, In the prices they charge, in the
wages they demand and in everything that they do.
They must
exercise self-restraint from making quick turns to the detriment of
others and promote in every way possible the long-term thinking
and planning that is for the ultimate good of all the people.
As President Eisenhower said in his great speech In Washington
last Thursday noon:
"The peace we seek, founded upon decent trust and
cooperative effort among nations, can be fortified —
not by weapons of war — but by wheat and by cotton;
by milk and by wool; by meat and by timber and by rice.
"These are words that translate into every language
on earth.
"These are needs that challenge this world. In arms.****
"This Government is ready to ask its people to join
with all nations in devoting a substantial percentage of
the savings achieved by disarmament to a fund for world
aid and reconstruction.
The purposes of this great work
would be:
to help other peoples to develop the undeveloped
406
- 7 -
areas of the world, to stimulate profitable and fair world
trade, to assist all peoples to know the blessings of
productive freedom.
"The monuments to this new kind of war would be these;
roads and schools, hospitals and homes, food and health.
"We are ready, in short, to dedicate our strength to
serving the needs, rather than the fears, of the world."
Peace is what we all want.
It is nothing to fear, nor is
there any reason for depression.
Adjustments, yes. But not
depression.
So long as we maintain the soundness of our money;
attain that nice balance between achieving security from aggression
and maintaining economic strength; eliminate waste and handle our
fiscal affairs with wisdom, America can look forward to good jobs
at good pay and real advances in our scale of living.
We can
have a stronger economy based on sounder fundamental conditions
than we have known in many y e a r s .
I thank you very much for this opportunity of appearing before
you today.
I appreciate it very much indeed.
0 O0
The
appointed
to
the
Mr
Secretary
Raymond
of
the
Davis
Treasury, George
of
Seattle,
M.
H u m p h r e y , today
Washington,
as
an
Assistant
Secretary.
Davis
Assistant
to
the
President
and
Vice-President
of
the General Insurance Company of America 1944-52 will havt-ro^
mi.Min I 11 7 ifnr w»~¥*>e«eOTy*is"' savitigs' -Bond»
W.
Randolph
Burgess,
Deputy
to
the
Secretary and Assistant Secretary Andrew N. Overby^
J
£|r. Davis was born in Midvale, Utah, October 7, 1890.
He was Comptroller of the University of Washington at S e a t t l e !
fro m 1936 to 1944.
He is a veteran of World War I.
He attended
I
the University of Washington before going in the Municipal Bond
buying business.
J
He was Vice-President of P e o p l e ’s Corporation
and bank manager of P e o p l e ’s National Bank branches at North
I
Seattle and Renton from 1930-1936.
Mr. Davis
member of the Seattle Rotary Club and
Rainier Club of Seattle,
J
as well as Trustee of Municipal League
J
at Seattle.
'
/
7
a
r)
o
c
RELEASE AFTERNOON NEWSPAPERS
Monday, April 20, 1993
H-99
The Secretary of the Treasury, George M. Humphrey,
today appointed Raymond Davis of Seattle, Washington, as an
Assistant to the Secretary.
Mr. Davis, Assistant to the President and Vice-President
of the General Insurance Company of America 1944-52 will
assist W. Randolph Burgess, Deputy to the Secretary and
Assistant Secretary Andrew N. Overby in the supervision of
the Treasury’s Savings Bonds Program.
Mr. Davis was born in Midvale, Utah, October 7, 1 8 9 0 .
He was Comptroller of the University of Washington at
Seattle from 1936 to 1944.
He Is a veteran of World War I.
He attended the University of Washington before going in the
Municipal Bond buying business.
He was Vice-President of
People’s Corporation and bank manager of People’s National
Bank branches at North Seattle and Renton from 1930-1936.
Mr. Davis was a member of the Seattle Rotary Club and
Rainier Club of Seattle,
as well as Trustee of Municipal
League at Seattle.
0 O0
sujug möemxmg nmsFAms,
waday, April 21, 1953*
The Secrei&iy of the Treasury announced last awning tlmt the tenders for
$1,300,000*000, or thereabouts, of 91-day Treasury bills to be dated April
23 *Mt to
siature July 23, 1953, which were offered on April 16, sere opened at the Federal Be-
serre Sanies on April 20*
The details of this issue are as folios*»
Total applied for - $2,202,275,000
Total accepted
** 1,500,526,000
Average pries
(includes $262,013,000 entered on a
noH'-cosipetitive basis and accepted in
full at the average price shown below)
- 99*101* Equivalent rat® of discount approx. 2*3205 per annua
ffanga of accepted competitive bids:
- 99*1,94 Equivalent rate of discount approx* 2*0025 per annua
- 99*410
*
*
*
*
*
2 «331*5 *
*
High
Low
(72 percent of the amount bid for at the low price was accepted)
Federal Reserve
District____ .
Total
Applied for
Total
Boston
Hew Terk
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. bonis
Minneapolis
gansas City
Dallas
San Francisco
I
$
13,779,000
l,lk9M03,0Q0
56,023,000
59.144.000
21.970.000
29.107.000
,
238 060,000
65 , 123, 000 12.166.000
60,971,000895,000103,169,000
TOTAL
«2,202,275,000
15,779,000
916.330.000
40.733.000
54Ä
000
20 970.000
28.357.000
179.914.000
1*7,235,000
12.029.000
53,1*91,000
.
40. 615.000 «
90*879,000
♦x,$oo,526,ooo
TR EA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, D .C.
RELEASE MORNING NEWSPAPERS,
Tuesday, April 21, 1953.
H-100
The Secretary of the Treasury announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills
to be dated April 23 and to mature July 23, 1953* which were offered
on April 16 , were opened at the Federal Reserve Banks on April 20.
The details of this issue are as follows:
Total applied for - $2,202,275*000
Total accepted
- 1,500,526,000 (includes $262,013*000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.414 Equivalent rate of discount approx.
2 .3 2 0 $ per annum
Range of accepted competitive bids:
- 99.^94 Equivalent rate of discount approx,
2 .0 0 2 $ per annum
- 99.410 Equivalent rate of discount approx.
2.334$ per annum
High
Low
(7 2 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Accepted
Total
Applied for
1 8 ,7 7 9 , 0 0 0
1,494,883,000
5 6 ,0 1 3 * 0 0 0
59,144,000
2 1 ,9 7 0 , 0 0 0
2 9 ,1 0 7 , 0 0 0
2 3 8 ,0 6 0 , 0 0 0
6 5 ,1 2 3 , 0 0 0
1 2 ,1 6 6 , 0 0 0
6 0 ,9 7 1 , 0 0 0
42,895,000
1 0 3 ,1 5 9 , 0 0 0
$2,202,275,000
0 O0
$
15,779,000
9 1 6 ,3 8 0 , 0 0 0
40,733,000
54,144,000
2 0 ,9 7 0 , 0 0 0
2 8 ,3 5 7 , 0 0 0
1 7 9 ,9 1 4 , 0 0 0
47,235,000
1 2 ,0 2 9 , 0 0 0
5 3 ,4 9 1 , 0 0 0
4 0 ,6 1 5 , 0 0 0
9 0 ,8 7 9 , 0 0 0
$1 ,5 0 0 ,5 2 6 , 0 0 0
IMMEDIATE RELEASE
WEDNESDAY - April 22,
1953
The Treasury today announced a 20% allotment on
subscriptions for the cash offering of 3-1/4 percent
Treasury Bonds of 1978-83.
Reports received from the
Federal Reserve Banks show that total subscriptions a c
cepted aggregate about $5-1/4 billion.
Subscriptions in amounts up to and including $5,000
were allotted in full.
The Treasury explained that it was
possible to allot these subscriptions in full without r e
ducing the allotments on other subscriptions.
All other
subscriptions were allotted 20%, subject to adjustment,
where necessary,
to the next higher $500, but not less
than $5,000 on any one subscription.
In addition
$117,779,000 was allotted to Government investment
accounts.
Details by Federal Reserve Districts as to s u b
scriptions and allotments will be announced when final
reports are received from the Federal Reserve Banks.
TREA SU R Y
D EPA RTM EN T
Information Service
WASHINGTON, I
412
IMMEDIATE RELEASE,
Wednesday, April 22, 1 9 5 3 *
H-101
The Treasury today announced a 20$ allotment on subscriptions
for the cash offering of 3-1/4 percent Treasury Bonds of 1978-83.
Reports received from the Federal Reserve Banks show that total
subscriptions accepted aggregate about $5-1/4 billion.
Subscriptions in amounts up to and including $5*000 were
allotted in full.
The Treasury explained that it was possible
to allot these subscriptions in full without reducing the
allotments on other subscriptions.
All other subscriptions were
allotted 20$, subject to adjustment, where necessary,'to the
next higher $500, but not less than $5,000 on any one
subscription.
In addition $117*779*000 was allotted to
Government investment accounts.
Details b y Federal Reserve Districts as to subscriptions
and allotments will be announced when final reports are received
from the Federal Reserve Banks.
oOo
-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 ll£ of the Revenue Act of 19Ul, the amount of discount
'at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets.
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. Ijl8, 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.
«ms
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
April 30, 1953
, in cash or other immediately available
........................ / 'W T » " " 1" " .....
bbbsl
funds or in a like face amount of Treasury bills maturing April 30, 1953
...... .....—
-B8XQ&
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,
Thursday. April 23. 1953
The Secretary of the Treasury, by this^public notice, invites tenders
lor $ 1,500,000,000 3 or thereabouts, of
91
-day Treasury bills, for
BS
cash and in exchange for Treasury bills maturing April
30,
1953
, in
the amount of $ 1*500*^-39*000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
of this series will be dated
July 30* 1953
terest.
April 30,
1953
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, $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 Stondxxd/tlme, Monday, April 27, 1953 •
'rr"T"r
— >—*•>
H jp p
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
not more than three decimals, e. g., 99.925.
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
TREA SU R Y
D EPARTM EN T
Information Service
WASHINGTON, D .C.
416
RELEASE MORNING NEWSPAPERS,
Thursday, April 23, 1953»
H-102
The Secretary of the Treasury, by this public notice, invites
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing April 30, 1953,
in the amount of $ 1 ,5 0 0 ,439,000,. to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated April 30, 1953, and will mature
July 30, 1953, when the face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $5 0 0 ,0 0 0 , and $1,000,000
[maturity va l u e ).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p.m., Eastern Daylight Saying,
time, Monday, April 27, 1953.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g . , 99.925.
Fractions m a y not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied b y Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announce- '
ment will be made by the Secretary of the Treasury of the amount and
price range of accepted bids.
Those submitting tenders will be
advised of the acceptance or rejection thereof.
The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or In part, and his action in any such respect
shall be final.
Subject to these reservations, non-competitive
tenders for $200,000 or less without stated price from any one
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids.
Settlement for accepted
tenders in accordance with the bids must be made or completed at the
2
Federal Reserve Bank on April 30, 1953* in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
April 30, 1953»
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.*©!
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 consid
eration as capital assets.
Accordingly, the owner of Treasury bills
(other- than life insurance companies) issued hereunder need include
in his Income tax return only the difference b e t w e e n the price paid
for such bills, whether on original issue or on subsequent purchase,
and' the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made., as
ordinary gain or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 4l8, a s a m e n d e d , a n d t h i s
n o t i c e , p r e s c r i b e t h e t e r m s of. 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 of t h e i r issue.
Copies of the c i r c u l a r m a y be obtained
f r o m any Federal Reserve B a n k or Branch.
oOo
T\if fK -
. %
Bureau of Internal Revenue is In business to help the
taxpayer* and in the process of collecting the revenue
fairly and honestly, it Is as ranch to the credit of a
revenue agent to discover that a taxpayer has cade an over
payment as it is to discover a deficiency sai collect an
additional tax* The Bureau's "let's meet
* m
with a
smile* philosophy is not just a slogan — it is on# that
m
are really trying to get into operation*
in all, the Treasury Department is trying to
the
do its part to help solve/difficult problems which the
All
new Administration faces* We are ieterrainei# «dille
protecting the country fro® outside aggression, to make
sure that our Internal conditions are such that our American
«ay of life will not only continue but grow even better for
all as tiie years go by«-
Ç* hop© /ou wlll tak# haek with /ou tà# knowledge
that anything /ou can do to continua support of the savings
bond program it support, for the Mat interests of ail
America*
m m & m m- mmtmn
In addition to the major problem araos that I hav@
ment ioned, the ¿‘
reasnry siso incluios variad but vital
agencies sucà as the Bureau of Cuaterna, th# Bureau of
Ingraving asá Printing, the Pureau of the Mini* the Bureau
of narcotice, the Secret Service, the Coaat Ouard, and the
Internai Revenue ïtoean*
fMle I m
H is far
frm
m à
the Bureau of Internai Revenue last,
the least of the fressures reeponaiMlitiea«
It i® also eue with which
nmrlj
ali Americana hâve definite
contact at least once a /car nhen th«/ pa/ their taxes* fhe
réputation of the Bureau in recent /ears has not been th© beat
basanes of improper oonâuct on the part of a faw of îts
employées« However* uneer the leadership of the new
Ceniseioner of Internai devenue, l!r* î* Coleman Andrews,
w© feel that the te*eau is mking geod progresa* Üia adminis^
tration has beau able and vlgorom* Sécrétai/ Humphrej and
Hr* Andrews bave both publicly taken the position that the
►
ir
«* 10 s*
sàtura b o m b
B @ f o r e I l e s v s t h è ie b t^ m a n e g e m e a t p r o b i« » * I
a à o u là l i k © t e m e n tio n s m o t h i a g w i t à w k le h
fa m ilie r #
t ìta
$tm m m
a ll
l i m i i n th è s t r i n g a bond p ro g ra m * w h ieh i s e
l p a rt o f th is
è*bt*msm*gmmnt
p r o b ls m .
î h t o n t s t e n d i ng b e n d e o f a l l s e r i e s o n M arch S I
o f t h i s y e a r t o t a l e d $ S S #4 M i l l o n *
111
but
$9
•
b illio n
o f tk e s © a r e ia t h è b a n d e o f p r i v a t e in d iv id u a la * - w h ere
t h e y n o rie a p & n s t i n e r e a s l n g c r e d i t w h ic h m y p ro m o te I n fla tio n *
T h us y o u c a n set jHt th è s t r i n g a bon d p ro g ra m
is su c h a n im p o rt a n t p a r t o f o u r a t t s m p t s t o m a i n t a i n a
s ta b le cu rren cy #
The
w m m
o f I n t r i c a h â v e b e t a v e r y Im p o r ta n t i n
o u r c a v i l l a b o n i p p e g r » w h lch h e l p s p ro m o te i h r i f t s n c m g s t
à lb e r i c a n c i t i s e n s w h ile i t Js e lp a c o r n e t t h a © v i l o f i n f l a t i o n
for the mhole nation»
I
I
The seringa bond program is going vary well at tb©
mmmt*
mil
l a tàe first thre© menthe of this yeer* salta nere
alitai of th« first quarter of 1952 and ©veeedtd rédemption!
for the first time in two ytara#
interest rates
m
e also feti that current
th# bonis are adequate* and no change# are
planati in thè foresee&ble future*
I
¡Hi
benefit thes®
ìotì
&mm
mlllions of Aaeriean»
nàm
haYt been
inost ìf inflativa and alno bjr an inadequaté return oa
satings bacarne® ®f arti!leially
I m
interest ratea»
à Ile« York-fiata eiitorial sa aprii 10 eonsaentei
mrf
wieely oa thè tàiaklng back of thè m i boni issile*
11; p®lutei
mt that mt p à i oso^y la tabi
mm&gmm&t
le-a repaftiatloa of tàmt of thè preirtona MiministraiLon*
wàicà hai
thè
single ohjseitre of gorernmsnt borrowing at
thè lowest passibili cast* The editorìa! notai that this
i?t&iring'* was &n optisai illusi®n tinse thè forese set in
motioa were tharoughlf isflaiinmrf ani eostljr to ererj
eliL&eru
àntleip&ting thè oritisisa «hieh Mas ssearrsi# thè
Times siitortai
m m
laìeii
^isciplss of thè #®a^*a®mefr,
poliey of reoent ¿rears may b® erpeeiei to b® criticai of a
fo.licgr làtici mafie bighe? interest eosts to ih® ro^erameni*
This# homssr» 1| a sfilali prie« to paj for gettlng th®
gorermaeist d®bt iato thè banda of s&vsrs and penaansni inv®storsi
ani enabling th® Federai K®serre to return to ita full-time
job of polioini th® Infialimi front»*
fhis matter of debt
m â
sounâ* oomplicatedj— -
it i® SS but it la terrihly imitant to ail âmetieaas
la the ftgjht {fer a stable
mmrmmf.
«I «tyfttnrt inflation#
In our hndllag of this debt, «if are trylng to fl
two tàiags# First# we are ifflug to $Mi more of our debt
lato longeraterm- soeur!tie-Sf. end, secônâly, «a are trying
to move it away froa baake, «f# it Inereases the
suppig
m è
thereby the
m m n i
m m y
#f crédit, and lato the hands
of private Investors, vbere it is auraiaflationary♦
A üÂjor stop m s taken ta April 13, «hm the îreasury
aecepteâ feit# for a aew issue of 30-year S 1/4 percent bonds*
îbere bas basa some superficial eritieism of the
higher Interest rate whicà the new bonds will pay* Thle
eritieism is unfounded*
If our efforts t© »wo the debt
lnto longer**tara seeurities and lato the hands of permisnont
Investors is sueoessful, are are êoîtxr a great deal to central
the inflation whioh- résulta îrom easy money and credit*
m
mn
help check thia inflation,
m
ïf
ißl hâve saveé the
American peuple «Mjr time« over the stimmt which the gpréfMi&t
will bave to pay in the inereaeed interett rate on the bonds*
It is alto true that to the estent tfcat the interest
on these bonds goss to Insurance Companies, eaviags banks#
pension fonds, and other foras of peuple*s savingt, it will
A great many questions are being studied %f this
group. One of tbs Issues we will take up* for instances
is the proper balance for the tax system as a whole* This
involves a determination of the relative shunts of taxes
to be derived from the principal sources ~ individual income
taxes., corporation income taxes, and the excise taxesi We
win also strive to remove inequities in these taxes*
We are working closely with jEbngreaaiotml people
la these tax studies* iiiaiever suggestions the administration
makes to the Congress will be the result of careful study-*
is will make these recoM«idaiions with the full knowledge
that Congress has the final full decision as to what to do
with them* Si hope that the long range tax study will be
fruitful of important results by It§4, particularly in the
way of simplification and removal of inequities* Sines almost
any tax revision seams to mean loss of revenue, many steps will
have to wait until we can safely bring about a sharp reduction
in expendittares*
BBT
W M G m X .
Another major concern of the Treasury is the proper
/\JOU/
'imn&gemnt of our huge national debt, whleh^amounts to
billion*
mwm
t w h i c h ai*« im
to espira or te
imefiiate t e situati©»*
The second pari of o a r stufiy i» what w# cali o w
h&s cosse flsfe
handicap to
.p i
¥3fW
Ott top
eeonomy* 1« lave p® t ac
«Itàettt mueh f l f « or re&eon. te t e #« three objectives io
umoh
©s we cani {3}
vie** (!) to sinplify thè «rete &s f
i
to MK0V0 thè
&nd (3) tO fi
«111 impeto thè 3ee»t ©
•ite ©oimtry*
Thit 1« no simll uMertsfidng*
iogether some exeeXlent pò©pia to wor
kwm.- **
University
e
professor or i
in liarvarfi Business SchooX* and ho io
headlag up our
k
m
ieave of ateo©« t e Throop Smith*
Staff* Kenneth
a tax
Xasyer* has ©orno èoaft t© help ut
h&ve brought la some aceountants anfi
So «han
Éttg
m
probiera e w i up or «ny
«a
is suhmittefi*
«o bave thè vi©wpoini ©f tao economiet$
upon it
annuel loss of $2 billion. The eut on personul Ineon»«
tu, sehaduleà for Deceefcer 31» 1963, *111 resuit la an
«nmi»! loss of $3 billion a year. The echeduled rédaction
in corporation incoue taz, on srcii 31, 1954» *111 resuit
in an annuel loss of $2 billion} and the expiration of
certain excise taxes tue to expire at the same time *111
resuit in a loss of $1 billion* Thess four
raake an annual trop in tex revenue of acre
wmK^tÊmigéMmm
doping 1m
mxt
changes weuld
tbaa^-
billion
fiscal year*
Wfeusn |ou eonsider that |8 billion figure in connection
with mxt jresent tefprt situation» f m m m «** wh&t a foè
it is going to b« to lot fit ihm& î m m expire m seheâule*
As Seeretarjr Iteÿhrej ssîd
m m êew*
York,
smst
It i® stm jtj a tÉ SÉ # of timimg geared to ré
duction of exposa## Both are too high and botà ssust b#
reduced»*
Ail gpvtvMMt dspartments bave bas® c&refullÿ
reviewing their budgets to determine whst
thej
will
nmâ
to
gpend la the m m t fiscal jnear to provide adéquats defense
mnâ
to earrj ou the essontial fonctions of the goverameat*
The Budget Bureau expeets to hâve final figures sometime in
bay* le in the îreasury can thon imke deflnite recomendations
ou wbat w© think should be doue lu regard to the spécifie
- 4 *•
2S£
Index of eoiieraer prices
the past six aontha.
imu shora l i t t l e cheoge iOTing
But this is something which Be
nu*t ©satin»* to Batch*
For it is an obvloia fact that a
stable dollar or a sound currency is Tory, very important
to all Americans.
People have been worried and hurt by
inflation as they find that their dollar hays constantly
lass* Inflation has brought cruel hardships upon millions
of Americans of fixed Income.
TlimoK
Our Immediate task in this fight to achieve a stable
dollar 1# to eliminate the deficit in the budget* Mere are
the facts* The deficit for the current fiscal year ending
June SO, 1963, will be somewhat higher than the $6*8 billion
estimated by President Truman. The budget for the year ending
June 30, 1954, submitted by the former Administration called
for a deficit of $9*9 billion or a deficit of $6*6 billion
difference
I
in tk# so-called cash budget. (The $ M ï é t U é i being the amount*
collected for trust funds.) This is only part of the atory.
A. msaber of twees are scheduled to expire or be reduced during
the next twelve months*
The excess profits tax, which I think everyone
agrees is a bad tax, is dus to expire on June 30, for an
■»*
!# said that once we have
Press fa lew
lilac under control,
m
c m
then
bring taxes
Ci
down# Tills reduction fa
out. Is one of tbs best ipmramteee against the fear of depression
fa the event peace mikes poeelble curtailment of government
defense spending« then as governnent spewing is reduced,
taxes must be reduced sad the tearlean people can spend this
m oney for their own account and i n their own way ***’-^u®h
better than the government can spend it for tbem*
I should like to talk particularly to ¡¡fit ladles
this afternoon about two phases of our
First,
at the Treasur
* or how we ret the money to pay for
these
government expenditures now running at the rate of (|7h)hillion
A
or how do we handle
a year* Second* debi
are su
huge government debt
which you as women are intimately acquainted with fa your
own homes and lives* Daily you have to match up your pur*
chases with what you have to spend*
is home owners you Ip
also familiar with borrowing on mortgages and other forms o
credit, and fa paying them off*
It appears that inflationary tendencies fa our
economy say have been checked«
has produced no eubst
The removal of contrala
increase in prices*
fh
-
2
«
anfl eboose for hluaolf wfeat h® will toy *t prices b® i*
willing to pay;
7* that producers are free to stride to produce
®ore* better cud cheeper goods to compete for the consumer* &
l a w in buying their particular products in competition
with everything elsef
ft* That we protect the savings of the old# their
insurance and their pens!one;
i* And above all* that w# preserve for the young
the great symbol of America, the opportunity to advent
and improve themselves to the limit of their own abilities
and their
o m
hard work and endeavors*
These are the objectives of the daily actions* as
well as long-range planning* of the Treasury team*
as President Elsenhower has
said* a balanced budget
In sight is an essential first step in checking further de
preciation in the baying power of the dollar* The President
also has pointed out that tax reduction will be justified only
as we show that we can succeed in bringing the budget under
control* As the budget is balanced and inflation checked* the
tax burden of today that stifles initiative can than be
eased*
Secretary
Imnwkr&f,
in a speech to the Associated
.Remarks tjy Under Secretary of the Treasury M a r i o n B.
Salaam v,eforo the .omen’s' Conference of the B«publican
1 will try to tell sanething this afternoon about
tk® actions we are taking or planning at the Treasury
Department under its new leadership in the new administmtion.
3h general our purpose at the treasury is to help
provide the proper economic climate for our nation» In
testimony before the Senate Appropriations Committee on
April ?, treasury Seeratary iiuaphrey said that this program
involved »ins things:
1. that we will have a sound and stable doll«*»
not one of declining value;
2. That we I t not spend more than we earn;
3. that we pay a little dews on our debts from
time to tine instead of rapidly borrowing more}
4» that we keep our credit good by properly
nanaging the debts we already have}
6» that slowly tat surely anS definitely we reduce
the too heavy burden
everything
of
taxes which, buried in the cost of
that we buy, are stifling initiative and In
creasing the cost of living}
6. that we maintain free markets in which the great
American consumer can buy what he needs Aen he wants it
429
M
fe.
- •’;H|
R e m a r k s b y U n d e r S e c r e t a r y of the T r e a s u r y
M a r i o n B. F o l s o m b e f o r e the W o m e n ’s
C o n f e r e n c e of the R e p u b l i c a n N a t i o n a l
Committee, P r e s i d e n t i a l Room, H o tel Statler,
W a s h i ngton, D. C., 3 ^ 0 0 p.m., Thursday,
A p r i l 23, 1953.
I w i l l t r y to tell s o m e t h i n g this a f t e r n o o n a b o u t the
we are t a k i n g or p l a n n i n g at the T r e a s u r y D e p a r t m e n t u n d e r
new leadership in the n e w Administration.
actxons
its
In g e n e r a l o ur p u r p o s e at the T r e a s u r y is to h elp p r o v i d e the
p r o p e r e c o n o m i c c l i m a t e ” f o r o u r nation.
In t e s t i m o n y b e f o r e "¿he
S e n a t e A p p r o p r i a t i o n s C o m m i t t e e o n A p r i l 7> T r e a s u r y S e c r e t a r y
H u m p h r e y said that this p r o g r a m i n v o l v e d nine things:
1.
T hat we w ill h a v e a sound a n d
not one of d e c l i n i n g value;
stable dollar,
2.
Tha t we do net
3.
T h a t we p a y a litt l e d o w n on' o u r d e b t s f r o m time
to time i n s t e a d of r a p i d l y b o r r o w i n g m o r e ;
spend m o r e t h a n vie earn;
4.
That we keep o ur credit g o o d b y p r o p e r l y m a n a g i n g
the d e bts vie a l r e a d y have;
5.
That s l o w l y b ut s u r e l y a n d d e f i n i t e l y we reduce
the too h e a v y b u r d e n of t a xes which, b u r i e d ^ i n
the cost of e v e r y t h i n g that we buy, are s t i f l i n g
i n i t i a t i v e a n d i n c r e a s i n g the cost of living;
6.
That vie m a i n t a i n free m a r k e t s in w h i c h the g r eat
A m e r i c a n c o n s u m e r c an b u y w h a t he n e e d s w h e n he
w a n t s it a n d c h o o s e f o r h i m s e l f w h a t he wil l b u y
at p r i c e s he is w i l l i n g to pay;
7.
That p r o d u c e r s are free to strive to p r o d u c e more,
b e t t e r a n d c h e a p e r g o ods to co m p e t e f o r the
c o n s u m e r ’s f a v o r in b u y i n g t h e x r p a r t i c u l a r p r o d u c t s
i n c o m p e t i t i o n w i t h e v e r y t h i n g else;
8.
That we p r o t e c t the savings of the old,
insurance and their pensions;
9.
And a b o v e all, t hat we p r e s e r v e f o r the y o u n g the
great symbol of America, the o p p o r t u n i t y to a d v a n c e
a n d i m p rove t h e m s e l v e s to the limit of t h e i r o w n
a b i l i t i e s a n d t h e i r o w n h a r d w o r k a n d endeavors.
H - 103
their
430
2
T h e s e are the o b j e c t i v e s of the d a i l y actions,
l o n g - r a n g e pla n n i n g , of the T r e a s u r y team.
as wel l as
As P r e s i d e n t E i s e n h o w e r h a s said, a b a l a n c e d b u d g e t in sight
is a n e s s e n t i a l f i r s t step in c h e c k i n g f u r t h e r d e p r e c i a t i o n i n the
b u y i n g p o w e r of the dollar.
The P r e s i d e n t a l s o h as p o i n t e d out
that t ax r e d u c t i o n w i l l be j u s t i f i e d o n l y as we sho w that we can
s u c c e e d in b r i n g i n g the b u d g e t u n d e r control.
As the b u d g e t is
b a l a n c e d an d i n f l a t i o n checked, the ta x b u r d e n of t o d a y that
st i f l e s i n i t i a t i v e c a n t h e n be eased.
S e c r e t a r y Humphrey, in a s p e e c h to the A s s o c i a t e d Press in
N e w Y o r k last
day, said tha t once we h a v e g o v e r n m e n t s p e n d i n g
u n d e r control, we c a n t h e n b r i n g t a xes down.
T his r e d u c t i o n in
taxes, S e c r e t a r y H u m p h r e y p o i n t e d out, is one of the bes t
g u a r a n t e e s a g a i n s t the f e a r of d e p r e s s i o n i n the e v ent p e a c e m a k e s
p o s s i b l e c u r t a i l m e n t of g o v e r n m e n t d e f e n s e spending.
T h e n as
g o v e r n m e n t s p e n d i n g is reduced, t a xes m u s t be r e d u c e d a n d the
A m e r i c a n p e o p l e can spend this m o n e y f o r t h e i r o w n a c c o u n t a n d
in t h e i r o w n w a y -- m u c h b e t t e r t h a n the g o v e r n m e n t ca n spend it
f o r them.
I s h o u l d like to t a l k p a r t i c u l a r l y to y o u l a d i e s thi s a f t e r
n o o n a b o u t two p h a s e s of o u r w o r k at the Treasury.
First,
t a x a t i o n -- o r h o w we get the m o n e y to p a y f o r all t h e s e g o v e r n m e n t
e x p e n d i t u r e s n o w r u n n i n g at the rate of close to $75 b i l l i o n
a year.
Second, debt m a n a g e m e n t -- or h o w do we h a n d l e this
h u g e g o v e r n m e n t d e b t of $2o4 billion.
T h ese are s u b j e c t s w h i c h
y o u as w o m e n are i n t i m a t e l y a c q u a i n t e d w i t h in y o u r o w n h o m e s a nd
lives.
D a i l y y o u hav e to m a t c h up y o u r p u r c h a s e s w i t h w h a t y o u
h a v e to spend.
As h o m e o w n e r s y o u are a l s o f a m i l i a r w i t h b o r r o w i n g
o n m o r t g a g e s a n d o t h e r f o r m s of credit, a n d in p a y i n g t h e m off.
It a p p e a r s that i n f l a t i o n a r y t e n d e n c i e s in o ur e c o n o m y m a y
h a v e b e e n checked.
The r e m o v a l of c o n t r o l s h a s p r o d u c e d no
s u b s t a n t i a l i n c r e a s e in prices.
The i n d e x of c o n s u m e r p r i c e s has
s h o w n l i t t l e change d u r i n g the p a s t six months.
B u t this is
s o m e t h i n g w h i c h we m u s t con t i n u e to watch.
F o r it is a n ob v i o u s
fac t t hat a stable d o l l a r or a s o und c u r r e n c y is very, v e r y
i m p o r t a n t to all Americans.
People have been worried and hurt by
i n f l a t i o n as t h e y f i n d that t h e i r d o l l a r b u y s c o n s t a n t l y less.
I n f l a t i o n h a s b r o u g h t cruel h a r d s h i p s u p o n m i l l i o n s of A m e r i c a n s
of f i x e d i n c o m e . ,
TAXATION
O u r i m m e d i a t e t a s k in this f i g h t to a c h i e v e a stable d o l l a r
is to e l i m i n a t e the d e f i c i t i n the budget.
Here ar e the facts.
The deficit for the current fiscal year ending June 30,- 1953* will
be somewhat higher than the $5.9 billion estimated by President
431
- 3 Truman.
The b u d g e t f or the y e a r e n d i n g June 30, 195^* s u b m i t t e d
b y the f o r m e r A d m i n i s t r a t i o n c a l l e d f o r a d e f i c i t of $9.9 b i l l i o n
or a d e f i c i t of $ 6.6 b i l l i o n in the s o - c a l l e d c a s h budget.
(The d i f f e r e n c e b e i n g the a m o u n t s c o l l e c t e d f o r trust f u n d s . )
Thi s is o n l y p a r t of the story.
A n u m b e r of t a x e s are s c h e d u l e d
to expi r e or be r e d u c e d d u r i n g the n e x t t w e l v e months.
The e x c e s s p r o f i t s tax, w h i c h I t h i n k e v e r y o n e a g r e e s is
a b a d tax, is due to e x p i r e on June 30, f o r a n a n n u a l loss of
$2 billion.
The cut on p e r s o n a l income tax, s c h e d u l e d f o r
D e c e m b e r 31* 1953* will r e s u l t i n a n a n n u a l loss of $3 b i l l i o n
a year.
The s c h e d u l e d r e d u c t i o n in c o r p o r a t i o n i n come tax, on
M a r c h 31* 195^* w i l l r e s u l t in a n a n n u a l loss of $2 billion;
a n d the e x p i r a t i o n of c e r t a i n exci s e t a xes due to e x p i r e at the
same time w i l l r e s u l t in a loss of $1 billion.
T h ese f o u r
c h a n g e s w o u l d m a k e a n a n n u a l drop in tax r e v e n u e of m o r e t h a n
$8 b i l l i o n -- $2 b i l l i o n d u r i n g the n e x t f i s c a l year.
W h e n y o u c o n s i d e r that $8 b i l l i o n f i g u r e in c o n n e c t i o n w i t h
o u r p r e s e n t b u d g e t situation, y o u c a n see w h a t a job it is g o i n g
to be to let all those taxes e x p i r e o n schedule.
As S e c r e t a r y H u m p h r e y said in N e w York, "Taxes m u s t come
down.
It is s i m p l y a m a t t e r of t i m i n g g e a r e d to r e d u c t i o n of
e x p ense.
B o t h are t oo h i g h a n d b o t h m u s t be r e d u c e d . "
All g o v e r n m e n t d e p a r t m e n t s h a v e b e e n c a r e f u l l y r e v i e w i n g
t h e i r b u d g e t s to d e t e r m i n e w h a t t h e y w ill n e e d to spend in the
n e x t fisc a l y e a r to p r o v i d e a d e q u a t e d e f e n s e a n d to c a r r y o n the
e s s e n t i a l f u n c t i o n s of the gove r n m e n t .
The B u d g e t B u r e a u e x p e c t s
to h a v e final f i g u r e s s o m etime in May.
We in the T r e a s u r y can
t h e n m a k e d e f i n i t e r e c o m m e n d a t i o n s on w h a t we t h i n k should be
d o n e in r e g a r d to the specific t a xes w h i c h are due to e x p i r e or
be reduced.
This is the i m m e d i a t e tax situation.
The s e cond p a r t o f our s t udy is w h a t we call o ur l o n g - r a n g e
review.
Our p r e s e n t t ax s y s t e m h a s come into b e i n g as a p a t c h w o r k thing, a n d is a serious h a n d i c a p to the economy.
We have
just a d d e d one tax o n top of a n o t h e r w i t h o u t m u c h rhyme or reason.
We h a v e three o b j e c t i v e s in view:
(l) to s i m p l i f y the s y s t e m as
m u c h as we can; (2 ) to remo v e the inequities; and (3 ) to d e v e l o p
a s y s t e m w h i c h w ill impose the least o b s t a c l e s to the economic
g r o w t h of the country.
Thi s is no small u n d e r t a k i n g , an d we h a v e c a l l e d t o g e t h e r
some e x c e l l e n t p e o p l e to w o r k o n it.
H a r v a r d U n i v e r s i t y let us
h a v e on leave of a b s e n c e D a n Throop Smith, p r o f e s s o r of f i n a n c e
in H a r v a r d B u s i n e s s School, a n d he is h e a d i n g up o ur A n a l y s i s
Staff.
K e n n e t h Gemmill, a t a x lawyer, ha s come d o w n to help us
432
- 4 w i t h legal p r o b l e m s .
We h ave b r o u g h t in some a c c o u n t a n t s a nd tax
administrators.
So w h e n a n y p r o b l e m c o mes up or a n y p r o p o s a l is
submitted, we h a v e the v i e w p o i n t of the economist, the lawyer,
the a c c o untant, a n d the a d m i n i s t r a t o r to h e l p p a s s u p o n it*
A g r e a t m a n y q u e s t i o n s are b e i n g st u d i e d b y t his group.
One
of the i s s u e s vie wil l take up, f o r instance, is the p r o p e r
b a l a n c e f o r the t ax s y s t e m as a whole.
This i n v o l v e s
a d e t e r m i n a t i o n of the r e l a t i v e a m o u n t s of t a x e s to be d e r i v e d
f r o m the p r i n c i p a l s o urces -- i n d i v i d u a l i n come taxes, c o r p o r a t i o n
i n c o m e taxes, a n d the e x c i s e taxes.
We wil l a l s o strive to r e m o v e
i n e q u i t i e s i n these taxes.
We are w o r k i n g c l o s e l y w i t h c o n g r e s s i o n a l p e o p l e in these
t a x studies.
W h a t e v e r s u g g e s t i o n s the A d m i n i s t r a t i o n m a k e s to
the C o n g r e s s w ill be the r e s u l t of c a r e f u l study.
We wil l m a k e
t h e s e r e c o m m e n d a t i o n s w i t h the full k n o w l e d g e that C o n g r e s s h a s
the f i n a l full d e c i s i o n as to w h a t to do w i t h them.
We h o p e
t h a t the l o n g r a n g e t a x s t u d y w i l l be f r u i t f u l of i m p o r t a n t
r e s u l t s b y 1954, p a r t i c u l a r l y i n the w a y of s i m p l i f i c a t i o n and
r e m o v a l of inequities.
Since a l m o s t a n y t a x r e v i s i o n seems to
m e a n loss of revenue, m a n y steps w i l l h a v e to w a i t u n t i l we c an
s a f e l y b r i n g a b o u t a sharp r e d u c t i o n i n e x p e n d i t u r e s .
DEBT MANAGEMENT
A n o t h e r m a j o r c o n c e r n of the T r e a s u r y is the p r o p e r
m a n a g e m e n t of our h u g e n a t i o n a l debt, w h i c h n o w a m o u n t s to some
$264 billion.
This m a t t e r of deb t m a n a g e m e n t sounds c o m p l i c a t e d —
a n d it
is
b u t it is t e r r i b l y i m p o r t a n t to all A m e r i c a n s in the f i g h t
f o r a stab l e c u r r e n c y and a g a i n s t inflation.
In our h a n d l i n g of this debt, we are t r y i n g to do two things.
First, we a re t r y i n g to m o v e m o r e of our d e b t into l o n g e r - t e r m
s e c u rities; and, secondly, we are t r y i n g to m o v e it a w a y f r o m
banks, w h e r e it i n c r e a s e s the m o n e y s u p p l y a n d t h e r e b y the a m o u n t
of credit, a n d into the h a n d s of p r i v a t e investors, w h e r e it is
non-’inf la t i o n a r y .
A m a j o r step w a s t a k e n on April 13* w h e n the T r e a s u r y
a c c e p t e d b i d s f o r a n e w issue of 30 - y ga r 3 1 /4 p e r c e n t bonds.
There h as b e e n some s u p e r f i c i a l c r i t i c i s m of the h i g h e r
i n t e r e s t rate w h i c h the n e w b o n d s w i l l pay.
T h i s c r i t i c i s m is
unfounded.
If o u r e f f o r t s to m o v e the d e b t into l o n g e r - t e r m
s e c u r i t i e s a n d i n t o the h a n d s of p e r m a n e n t i n v e s t o r s is successful,
we a r e d o i n g a g r e a t d eal to c o n t r o l the i n f l a t i o n w h i c h r e s u l t s
f r o m e a s y m o n e y a n d credit.
If we c a n h e l p c h e c k this inflation,
433
- 5 we will have saved the American p e ople m a n y times over
w h i c h the g o v e r n m e n t wil l h ave to p a y in the i n c r e a s e d
rate o n the bonds.
the amount
interest
It is a l s o true that to the e x t e n t that the i n t e r e s t on
t h e s e b o n d s goe s to i n s u r a n c e companies, s a v ings banks, p e n s i o n
funds, a n d o t h e r f o r m s of p e o p l e ’s savings, it will b e n e f i t
t h e s e same m i l l i o n s of A m e r i c a n s w h o h a v e b e e n hur t m o s t b y
i n f l a t i o n a n d a l s o b y a n i n a d e q u a t e r e t u r n o n s a v ings b e c a u s e of
a r t i f i c i a l l y l o w i n t e r e s t rates.
A N e w Y o r k T i mes e d i t o r i a l on A p ril 10 c o m m e n t e d v e r y w i s e l y
o n the t h i n k i n g of the n e w b o n d issue.
It p o i n t e d out that o ur
p h i l o s o p h y in d ebt m a n a g e m e n t is a r e p u d i a t i o n of that of the
p r e v i o u s A d m i n i s t r a t i o n , w h i c h h a d the single o b j e c t i v e of
g o v e r n m e n t b o r r o w i n g at the l o west p o s s i b l e cost.
The e d i t o r i a l
n o t e d that this "saving" w a s a n o p t i c a l i l l u s i o n since the f o r c e s
set in m o t i o n w e r e t h o r o u g h l y i n f l a t i o n a r y a n d c o s t l y to e v e r y
citizen.
A n t i c i p a t i n g the c r i t i c i s m w h i c h h a s occurred, the T i mes
e d i t o r i a l c o n c luded:
"Disciples of the ’e a s y - m o n e y * p o l i c y of
r e c e n t y e a r s m a y be e x p e c t e d to be c r i tical of a p o l i c y w h i c h
m e a n s h i g h e r i n t e r e s t costs to the g overnment.
This, however,
is a small p r i c e to p a y f o r g e t t i n g the g o v e r n m e n t deb t int o the
h a n d s of savers a n d p e r m a n e n t i n v e s t o r s a n d e n a b l i n g the F e d e r a l
R e s e r v e to r e t u r n to its f u l l - t i m e job of p o l i c i n g the i n f l a t i o n
f r o n t .V
S A V I N G S B ONDS
B e f o r e I leave the d e b t - m a n a g e m e n t pr o b l e m , I s h ould like
to m e n t i o n s o m e t h i n g w i t h w h i c h y o u are all fam i l i a r .
That is
the sa v i n g s b o n d program, w h i c h is a v i t a l p a r t of this
d e b t - m a n a g e m e n t p r o blem.
The o u t s t a n d i n g b o n d s of all series on M a r c h 31 of this y e a r
t o t a l e d $38.4 billion.
All b ut $9 b i l l i o n of t h e s e are i n the
h a n d s of p r i v a t e individuals, w h e r e t h e y w o r k a g a i n s t i n c r e a s i n g
c r e d i t w h i c h m a y p r o m o t e inflation.
T h u s y o u c a n see w h y the
s a v i n g s b o n d p r o g r a m is such a n i m p o r t a n t p a r t of o u r a t t e m p t s
to m a i n t a i n a stable currency.
The w o m e n of A m e r i c a h a v e b e e n v e r y i m p o r t a n t in o u r savings
bond program which helps promote thrift amongst American citizens
w h i l e it h e l p s combat the evil of i n f l a t i o n f o r the w h o l e
nation.
434
-
6
-
The savings bond program is going very well at the moment.
In the first three months of this year, sales were well ahead
of the first quarter of 1952 and exceeded redemptions for the
first time in two years.
We also feel that current interest
rates on the bonds are adequate, and no changes are planned in
the foreseeable future.
We hope you will take back with you the knowledge that
anything you can do to continue support of the savings bond
program is support for the best interests of all America.
BUREAUS AND'AGENCIES
In addition to the major problem areas that I have mentioned,
the Treasury also includes varied but vital agencies such as the
Bureau of Customs, the Bureau of Engraving and Printing, the
Bureau of the Mint, the Bureau of Narcotics, the Secret Service,
the Coast Guard, and the Internal Revenue Bureau.
While I named the Bureau of Internal Revenue last, it is far
from the least of the TreasuryTs responsibilities.
It is also
one with which nearly all Americans have definite contact at
least once a year when .they pay their taxes.
The reputation of
the Bureau in recent years has not been the best because of
improper conduct on the part of a few of its employees.
However,
under the leadership of the new Commissioner of Internal. Revenue,
Mr. T. Coleman Andrews, we feel that the Bureau is making good
progress.
His administration has been able and vigorous.
Secretary Humphrey and Mr. Andrews have both publicly taken the
position that the Bureau of Internal Revenue is in business to
help the taxpayer.
And in the process of collecting the revenue
fairly and honestly, it is as much to the credit of a revenue
agent to discover that a taxpayer has made an over-payment as
it is to discover a deficiency and collect an additional tax.
The B u r e a u ’s "let’s meet ’em with a smile" philosophy is not
just a slogan — it is one that we are really trying to get
into operation.
All in all, the Treasury Department is trying to do its part
to help solve the difficult problems which the new Administration
faces.
We are determined, while protecting the country from
outside aggression, to make sure that our internal conditions
are such that our American way of life will not only continue but
grow even better for all as the years go by.
oOo
3MEETINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANES FOR TEARS
ENDED DECEMBER 31» 1952 and 1951 - Continued
(Amounts in thousands of dollars)
1952
Recoveries, transfers from valuation
reserves and profits:
On securities}
Recoveries. .................... ...»
Transfers from valuation reserves*...
Profits on securities sold or redeemed
On loans!
Recover!es.****.......••«••*••*»*.*•••
Transfers from valuation reserves.••••
"1 o tner
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS.....
Losses, charge-offs, and transfers to valu
ation reserves!
On securities!
Losses and charge-offs........... .
Transfers to valuation reserves.......
On loans!
Losses and charge-offs*......... .
Transfers to valuation reserves*••••••
All other. ........ ..... ........ ......
TOTAL LOSSES, CHARGE-OFFS, AND TRANS
FERS TO VALUATION RESERVES........
PROFITS BEFORE INCOME TAXES................
Taxes on net income!
Federal*............. ............... *
State...................... ..........
TOTAL TAXES ON NET INCOME......... .
NET PROFITS BEFORE DIVIDENDS.......... .... .
Cash dividends declared!
On preferred stock*............... ..
On common stock*...*................ .
TOTAL CASH DIVIDENDS DECLARED*.......
Number of banks 2/,
Rate of net profits!
To capital funds**.*
Rate of cash dividends!
To capital funds....
*
1951
f
•
6,824
14,844
20,165
$
*
1
Change
since 1 9 5 1
5 ,61 ^
7,058
39,723
i +1,270
- +7,786
-19,558
11,654
14,949
12,604
12,125
12,129
16,99*1
"•471
+2,820
»6,390
61,100
95.643
-14,543
6 1 .2 3 3
1 6 .7 3 9
51.191
17.162
+10,042
-423
1 1 ,3*19
9 .6 0 6
83,978
29,982
125.596
27,452
+1,7^3
~Ul,6l8
+2,530
203*261
966,572
231,007
839.591
- 2 7 ,7 2 6
+126,$8l
387.963
17,128
405,091
561,481
317,430
15,466
+70,533
+1 ,6 6 2
+72,195
+54,786
5 3 2 ,8 9 6
506,695
615
400
258,663
259.063
247,230
247,845
4 ,9 1 6
**,9**6
.* 3 0
Percent
Percent
7* 79
Percent
_ + .3 8 "
8 .1 7
3*77
3.81
-215
+11.433
+11,218
-.0**
1/ Averages of amounts reported for the June and December call dates in year
indicated and the December call date in the previous year*
2/ At end of period*
0O0
«»
2 *■*
EARNINGS, EXPENSES, AND DIVIDENDS OP NATIONAL BANKS POR YEARS
ENDED DECEMBER 31, 1952 and 1951
(Amounts in thousands of dollars)
s
•
1
1952
:
Capital stock, par value: l/
Preferred.
Common,. • • • •
Current operating expenses:
Salaries and wages:
Officers.
Employees other than officers.......
Pees paid to directors and members of
executive, discount, and advisory
committees. ............... .......
Interest on time deposits (including
savings deposits)
Taxes other than on net income.
Recurring depreciation on hanking house,
furniture and fixtures..............
Other current operating expenses.•••••••
...
$
1 2 ,0 3 2
2,046,018
»5,170
+125,008
2 ,1 7 7 ,8 8 8
2,177*888
2,058,050
+119,838
6,875,134
6,506,378
.3 6 8 ,7 5 6
568,812
148,205
1,340,742
129,180
+64,876
+1 6 ,0 2 3
+196,047
+7.092
70,459
75.130
121,830
+7.313
+5,497
-639
2.454,358
+296,209
2 5 0 ,3 1 8
Earnings from current operations!
Interest and dividends:
633*688
On II, S, Government obligations.••.*••••*
l6**,228
On other securities.................. .
Interest and discount on loans.......... * 1 ,5 3 6 .7 8 9
1 3 6 ,2 7 2
Service charges on deposit accounts....,..«
Other service charges, commissions, fees,
and collection and exchange charges.....•
77.772
80,627
Trust department....................... *
•
•
•
•
t
121,191
*
a
•
•
•
•
■
Other current earnings...
TOTAL EARNINGS PROM CURRENT
OPERATIONS.......
f•
:
:Change sinee
1951
. -.. :
6 ,8 6 2
2 ,1 7 1 ,0 2 6
$
TOTAL CAPITAL STOCK......... ....... .
: 1951
, 2 .7 5 0 ,5 6 7
,
271,744
535.618
482,447
+21,426
+53.171
.
14,545
12*957
+1,588
.
,
260,995
78,646
2 1 8 ,6 2 6
7 6 ,9 5 8
+42,369
+1,688
.
.
42,205
458,061
37,141
400,956
+5,064
+57,105
1,661,814
TOTAL CURRENT OPERATING EXPENSES...... . 1,661,81**
1,479,403
+182,**11
1,088,753
NET EARNINGS PROM CURRENT OPERATIONS........ . 1.088,753
974,955
+113,798
—
2
*•
Cash dividends declared on common and preferred stock in 1952 totaled
$259,000,000 in comparison with $2^,000,000 in the previous year*
of cash dividends was 3*77 percent of average capital funds.
The
rate
The cash
dividends in 1 9 5 2 were ^*6 percent of net profits available for the year.
The remaining 5*+ percent of net profits, or $303,000,000, was retained hy
the hanks in their capital funds.
On December 31, 1952 there were ^,916 national hanks in operation, as
compared to H,9^6 at the end of 195^•
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
Press Deriea
morning newspapers
y
/o y
National hanks in the United States and possessions had net profits
before dividends for the year 1952 of $562 ,OCX),000 which amounts to S.17
percent of average capital funds. Comptroller of the Currency Ray M. Gidney
announced today.
Net profits for the previous year were $507,000,000, or
7 ,7 9 percent of average capital funds*
Net earnings from operations for the calendar year 1952 of $1,089,000,000
showed an increase of $11^,000,000 over the year 1951*
Adding to net earnings
from operations profits on securities sold of $2 0 ,000,000 and recoveries on
loans and investments, etc. (including adjustments in valuation reserves) of
$ 6 1 ,000,000 and deducting losses and charge-offs (including current additions
to valuation reserves) of $ 203 ,000,000 and tares on net income of $*#>5 ,0 0 0 ,000,
the net profits of the hanks before dividends for the year 1952 » as noted
above, were $ 55 ,000,000 more than for the year 1951*
Gross earnings were $2,751,000,000, an increase of $296,000,000 over
1952-
Principal items of operating earnings in 1952 were $1,537,000,000 from interest
fynfl discount on loans, an increase of $196,000,000 over 1952*» and $ 63^,000,000
from interest on United States Government obligations, an increase of $65,000,00
Other principal operating earnings were $16^,000,000 from interest and dividends
on securities other
United States Government, and $136,000,000 from servicej
charges on deposit accounts*
Operating expenses, excluding taxes on net income,|
were $1,662,000,000 as against $1,^79,000,000 in 1951.
Principal operating
expenses were $822,000,000 for salaries and wages of officers and employees and
fees paid to directors, an increase of $ 76 ,000,000 over 1952-» and $ 261 ,000,000
expended for interest on time deposits, an increase of $*4-2,000,000*
439
TREASURY DEPARTMENT
C o m p t r o l l e r of the C u r r e n c y
Washington
RELEASE MORNING NEWSPAPERS,
Friday, April 24, 1953»
N a t i o n a l b a n k s in the U n i t e d S t a t e s a nd
p r o f i t s b e f o r e d i v i d e n d s f o r the y e a r 1 952 of $ 5 6 2 , 0 0 0 , 0 0 0 w h i c h
a m o u n t s to 8 . 1 7 p e r c e n t of a v e r a g e c a p i t a l funds, C o m p t r o l l e r of the
C u r r e n c y R a y M. G i d n e y a n n o u n c e d today.
N et p r o f i t s f o r the p r e v i o u s
y e a r wer e $ 507 , 000, 000 , or 7 .7 9 p e r c e n t of a v e r a g e c a p i t a l funds.
Net e a r n i n g s f r o m o p e r a t i o n s f o r the c a l e n d a r y e a r 1 9 5 2 of
$ 1 , 089, 000,000 showed a n i n c r e a s e of $ 1 1 4 , 0 0 0 , 0 0 0 o v e r the y e a r
1951.
A d d i n g to n et e a r n i n g s f r o m o p e r a t i o n s p r o f i t s o n s e c u r i t i e s
sold*of $ 20 , 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 investments, etc.
(inc l u d i n g a d j u s t m e n t s in v a l u a t i o n r e s e r v e s ) of $ 61 , 000,000 a n d
d e d u c t i n g l o s s e s a n d 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
v a l u a t i o n r e s e r v e s ) of $ 203 , 000,000 a n d t a x e s o n net i n c o m e of
$405 ,000 , 000 , the n e t p r o f i t s of the b a n k s b e f o r e d i v i d e n d s f o r the
y e a r 1952 , as n o t e d above, w e r e $ 55 , 000,000 m o r e t h a n f o r the y e a r
1951.
G r o s s e a r n i n g s w e r e $2,751,0.00,000, a n i n c r e a s e of
$ 2 9 6 , 0 0 0 , 0 0 0 o v e r 1951.
P r i n c i p a l i t e m s of o p e r a t i n g e a r n i n g s i n
1952 w e r e $ 1 ,5 3 7 ,000,000 f r o m i n t e r e s t a n d d i s c o u n t o n loans, a n
increase of $ 196 , 000,000 o v e r 1951, a n d $ 6 3 4 , 0 0 0 , 0 0 0 f r o m i n t e r e s t
on U n i t e d S t a t e s G o v e r n m e n t o b l i gations, a n i n c r e a s e of
$65,000,000.
Other principal operating earnings were $164,000,000
fro m i n t e r e s t a n d d i v i d e n d s on s e c u r i t i e s o t h e r t h a n U n i t e d Stat e s
Government, a n d $ 1 3 6 , 0 0 0 , 0 0 0 f r o m service c h a r g e s o n d e p o s i t
accounts.
O p e r a t i n g expenséis, e x c l u d i n g t a x e s o n net Income, w e r e
$ 1 , 6 6 2 , 0 0 0 , 0 0 0 as a g a i n s t $ 1 , 4 7 9 , 0 0 0 , 0 0 0 i n 1951.
Principal
o p e r a t i n g e x p e n s e s w e r e $ 822 , 000,000 f o r s a l a r i e s a nd w a g e s of
officers a n d e m p l o y e e s a n d f ees p a i d to dir e c t o r s , a n i n c r e a s e of
$76 , 000,000 o v e r 1951 , a n d $ 261 , 000,000 e x p e n d e d f o r i n t e r e s t o n
time deposit s, a n i n c r e a s e of $42,000,000.
C a s h d i v i d e n d s d e c l a r e d on c o m m o n a n d p r e f e r r e d s t o c k in 1 9 5 2
totaled $ 259 , 000,000 in c o m p a r i s o n w i t h $ 2 4 8 , 0 0 0 , 0 0 0 i n the p r e v i o u s
year.
T h e rate of c a s h d i v i d e n d s w as 3.77 p e r c e n t of a v e r a g e
capital funds.
The cas h d i v i d e n d s in 1 9 5 2 w e r e 46 p e r c e n t of net
p r o f i t s a v a i l a b l e f o r the year.
T he r e m a i n i n g 54 p e r c e n t of net
profits, or $ 303 , 000, 000, w a s r e t a i n e d b y the b a n k s i n t h e i r capital
funds.
O n D e c e m b e r 31, 1 9 5 2 there w e r e 4 , 9 1 6 n a t i o n a l b a n k s in
operation, as c o m p a r e d to 4 , 9 4 6 at the e nd of 1951.
44G
-
2
-
EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 3 1 , 1 9 5 2 and 1 9 5 1
(Amounts i n th o u san d s o f d o l l a r s )
1952
_______
:
1951
: Change since
:______________ :
1951
C a p ita l s t o c k , p a r v a l u e ; 1/
P r e f e r r e d ..................................7 .
Common.......................................
4
6,862
, 2 ,1 71 .0 2 6
$
12,032
2 ,01*6 ,0 18
-5,170
/125,008
TOTAL CAPITAL STOCK.. .
, 2,177,888
2 ,058,050
/119,838
C a p ita l fu n d s 1 / ............................
, 6,875,131*
6,506,378
¿368,756
6 33,6 88
161*,228
1,536,789
136,272
568,812
11*8,205
1 ,31*0 ,71*2
12 9 ,180
¿61*, 876
/16,023
/I96,0l*7
A,092
77,772
80,627
121,191
70,1*59
75,130
12 1,8 30
¿7,313
¿5,1*97
-639
2,750,567
2 ,1*51*,358
/296,209
271,7W*
535,618
250,318
1*82,1*1*7
¿21 ,1*26
¿53,171
lit,51*5
12,957
A, 588
260,995
78 ,61*6
218,626
76,958
/1*2,369
A , 688
1*2,205
1*58,061
37,11*1
1*00,956
/ 5 ,06i*
/57,105
1 ,661 ,811*
1,1*79,1*03
¿182 ,1*11
971*,955
/113,798
Earnings from current operations:
Interest and dividends:
On U. S. Government obligations....
On other securities.... ... ...
Interest and discount on loans......
Service charges on deposit accounts...
Other service charges, commissions, fees,
and collection and exchange charges....
Trust department....... ........
Other current earnings... .......
TOTAL EARNINGS FROM CURRENT
OPERATIONS....... ........
Current operating expenses:
Salaries and wages:
Officers........ .... ... .
Employees other than officers.. .....
Fees paid to directors and members of
executive, discount, and advisory
coiranittees.............................
Interest on time deposits (including
savings deposits).......... .
Taxes other than on net income..... ....
Recurring depreciation on banking house,
furniture and fixtures.........
Other current operating expenses.........
TOTAL CURRENT OPERATING EXPENSES...
NET EARNINGS FROM CURRENT OPERATIONS.... .
.
1,088,753
441
- 3 EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 3 1 , 1 9 5 2 and 1 9 5 1 - C ontinued
____________________
(Amounts in th o u san d s o f d o l l a r s )
1952
R e c o v e r ie s , t r a n s f e r s from v a l u a t i on
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 .....................................................................$
T r a n s f e r s from v a l u a t i o n r e s e r v e s ...........
P r o f i t s on s e c u r i t i e s s o ld o r redeem ed
.6,881*
lU,Qhh
20,165
1951
$
Change
sin ce 1951
5,6ll*
7,058
39,723
A , 270
/7,786
-19,558
On l o a n s :
R e c o v e r i e s ............................... ............ .........................
T r a n s f e r s from v a l u a t i o n r e s e r v e s . , . . .
11,651*
lU, 9h9
12,125
12,129
-1*71
A , 820
A ll o t h e r ................................................................................
12,60h
18,991*
-6 ,39 0
8 1,10 0
95,61*3
-11*, 51*3
6 1,2 3 3
16,739
51,191
17,162
Ao,ol *2
-1*23
11,31*9
83,978
29,982
9,606
125,596
27,1*52
A , 71*3
-1*1,618
A , 530
203,281
966,572
231,007
839,591
-27,726
/126,961
317,1*30
15,1*66
/70,533
A , 662
332,896
506,695
M 2 ,195
--- ?51*,786
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND P R O F IT S ...
L o s s e s , c h a r g e - o f f s , and t r a n s f e r s t o 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 and c h a r g e - o f f s . . . . , ..................
T ra n sfe rs to v a lu a tio n r e s e r v e s .. . .
On l o a n s :
L o s s e s and c h a r g e - o f f s . . ..........................
T ra n sfe rs t o v a lu a tio n r e s e r v e s . . . . .
A l l o t h e r . .............................................................
FERS TO VALUATION RESERVES..
PROFITS BEFORE INCOME TAXES................
.
Taxes on n e t incom e:
F e d e r a l ............. *.................................................
S t a t e . . . .....................................'........................
.
TOTAL TAXES ON NET INCOME____
NET PROFITS BEFORE DIVIDENDS........................
.
387,963
17,128
1*05,091
561, MSI
.
.
1*00
258,663
259,063
615
21*7,230
21*7,81*5
-215
Al> 1*33
¿11,218
^
it,916
h,9h6
-30
P e rcen t
P ercen t
" ¿.38
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 .....................................
On common s t o c k ................ ........................... .
TOTAL CASH DIVIDENDS DECLARED
Number of banks 2/.
ftate o f n e t p r o f i t s :
To c a p i t a l fu n d s ............. ........................................... .
Rate o f c a s h d iv id e n d s :
To c a p i t a l f u n d s ................................................... | ............
"8717
7.79
3.77
3^33
T /T iv e ra g e s o f am ounts“ r e p o r te d f o r th e June a n d T D e ce m b e F ca ll d a t e s ’ m y e a r
in d i c a t e d and th e December c a l l d a te i n t h e p re v io u s y e a r .
y At end o f p e r io d .
- . 01*
reuasb
mmim mtsumts,
j
t 1
1/
Tuesday* April 28* 1953«___
Tht Secretary of the Treasury announced la s t evening th at the tenders fo r
11,500,000,000, or thereabouts, of 91-day Treasury b ills to be dated April 30 and to
Batura July 30, 1953, which were offered on April 23, were opened a t the Federal
Reserve Banks on April 27*
The d etails of this lesue are as followss
Total applied fo r - $2,l8l*,O86,OO0
( includes
$2^9,^89,000 entered on e
Total accepted
- 1,500,011,000
1,500,011,000 (in
ai
Average price
« 99.1*33 Equivalent rate of discount approx. i J g j j per annua
Range of accepted c «apetitiva bidet
- 99.kéQ Equivalent ra te of discount approx. 2.136* per annua
High
low
-
9 9 .1(26
(15 percent of the
•
mount
bid Tor
«
at
the lo * price
was
accepted)
Federal Reserve
D istrict_______
Setal
Applied for
Total
Accepted
Boston
New Xork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. lo tti.
Minneapolis
Kansas Citar
Dallas
San Francisco
I
I
Total
i.rns
70.275,000
28,856,000
883, 886,000
16 208,000
U9.32U.000
30 816,000
2U 651,000
2U3.738.000
3U .98l.000
11.687.000
66 708.000
39.881.000
69.275.000
$2,18U,086,000
*1,500,011,000
29,856,000
1,US7,396,000
31,208,000
U9,527,000
32,0Ul,000
27.213.000
28U.038.000
US,581,000
11.812.000
71.958.000
10.181.000
,
,
,
.
•
*
BELEASS M O R N I N G NEWS P A P E R S ,
Tuesday, April 28, 1953.
H - 105
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders f o r $ 1 ,500,000,000, or t h ereabouts, of 9 1 -day T r e a s u r y b i l l s
to be d a t e d April 30 a n d to m a t u r e J u l y 30, 1953.» w h i c h w e r e o f f e r e d
on April 23, w e r e o p e n e d at the F e d e r a l R e s e r v e B a n k s o n April 27.
The d e t a i l s of this issue are as follows:
Total a p p l i e d f o r - $ 2 , 1 8 4 , 0 3 6 , 0 0 0
T o tal a c c e p t e d
1,500,011,000
Av e r a g e p r i c e
(includes $ 2 4 9 , 4 8 9 , 0 0 0
entered on a non-competitive
b a s i s a n d a c c e p t e d in full at
the a v e r a g e p r i c e shown
below)
- ■99.433 E q u i v a l e n t rate of d i s c o u n t approx.
2,243$ per annum
R a n g e of a c c e p t e d c o m p e t i t i v e bids:
High
- 9 9 . 4 6 0 E q u i v a l e n t rate
2 .136 $
- 9 9 . 4 2 6 E q u i v a l e n t rate
2.271$
Low
(15
of d i s c o u n t approx.
per annum
of d i s c o u n t approx,
per annum
p e r c e n t of the a m o u n t b i d f o r at the l ow p r i c e w as a c c e p t e d )
Federal R e s e r v e
District
Boston
New Y o r k
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
TOTAL
Total
Applied for
$
29,856,000
487.396.000
31 , 208,000
49.527.000
32.041.000
27.213.000
284.038.000
45.581.000
11 .812.000
71.958.000
43.181.000
70.275.000
$2,184,086,000
0 O0
T o tal
Accepted
$
28,856,000
883 .886.000
16 , 208,000
49.324.000
30 . 816.000
24.651.000
243.738.000
34.981.000
1 1 .6 8 7 . 0 0 0
6 6 ,7 0 8 , 0 0 0
39 , 881,000
69,275,000
$ 1 ,500 , 011,000
- 3 -
s u b je ct to e s t a t e , in h e r ita 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 er
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 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 th e
p o s s e s s io n s o f th e U n ited 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 .
For
p u rp o se 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 T re a s u ry b i l l s a r e
o r i g i n a l l y s o ld by th e U n ited S t a t e s s h a l l be c o n s id e re d t o be i n t e r e s t .
Under S e c t io n s
h2
and 1 1 7 ( a )
(l)
o f th e I n t e r n a l Revenue Code, as
amended by S e c t io n 1 1 5 o f th e Revenue A ct o f 1 9 l* l, th e amount o f d is c o u n t
a t w h ich b i l l s
is s u e d h e re u n d e r a r e s o ld 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 such b i l l s
s h a l l be s o l d , redeem ed o r o th e r w is e d is p o s e d o f ,
and such b i l l s a r e e x clu 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 .
i n g l y , th e owner o f T re a s u ry b i l l s
( o t h e r th a n l i f e
A cco rd
in s u r a n c e co m p an ies)
is s u e d h e re u n d e r need in c lu d e in 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
b etw een th e p r i c e p a id f o r such 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 seq u en 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 red em p tio n a t m a tu r it y d u rin g th e t a x a b l e y e a r f o r w hich 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 .
Treasury Department Circular No. Ul8, as amended, \and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue.
Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.
2
m m
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 enders from o t h e r s m ust be accom panied
b y payment o f 2 p e r c e n t o f th e f a c e amount o f T re a s u ry b i l l s a p p lie d f o r ,
u n le s s th e te n d e r s a r e accom panied by an e x p r e s s g u a ra n ty o f payment by
an in c o r p o r a 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 th e
F e d e r a l R e se rv e Banks and B ra n c h e s , fo llo w in g w hich p u b lic announcement
w i l l be made b y 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 ran ge
o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p t
a n ce 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 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 o r r e j e c t any o r a l l t e n d e r s , in w hole o r in p a r t , and
h i s a c t i o n in 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 t o th 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 te 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 ra g e p r i c e
pjjgpp*'
^ ***— V
d e c im a ls ) o f a c c e p te d
( i n th r e e
-
a ffifle p tifrta nfiQT*i
in a c c o rd a n c e w ith th e b id s m ust be made o r co m p leted a t th e F e d e r a l Re
s e r v e Bank on
Hay 7* 1 9 5 3
, in ca s h o r o t h e r im m e d ia te ly a v a i l a b l e
—
w
--------
funds o r in a l i k e f a c e amount o f T r e a s u r y b i l l s m a tu rin g
Cash and exch an g e te n d e r s w i l l r e c e i v e e q u a l t r e a t m e n t .
May 7« 1 9 5 3 ______
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 rin g b i l l s
a c c e p te d in exch an g e and th e is s u e p r i c e o f th e new b i l l s .
The income d e riv e d from T re a s u ry b i l l s , w h eth er i n t e r e s t o r g a in from
th 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 th e b i l l s ,
s h a l l n o t have an y exem p tio n ,
a s s u 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 o f T re a s u ry b i l l s
s h a l l n o t have any s p e c i a l t r e a t m e n t , a s s u c h , un d er 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 en tary t h e r e t o .
The b i l l s s h a l l be
TREASURY DEPARTMENT
W ashington
f-f
f
c
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 30, 1 9 5 3
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 lic n o t i c e , i n v i t e s te n d e r s
f ° r $ 1 ,5 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 , f o r
c a s h and i n exch an g e f o r T re a s u r y b i l l s m atu rin g
, th e amount o f $ l , 3 0 0 .3 5 1 u 0 0 0
May
7 . ^ 19 ^ ____
» t o be is 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 p r o v id e d .
o f t h i s s e r i e s w i l l b e d a te d
August 6. 1 9 5 3
x!B5c
te re s t.
i when
, in
May 7» 1 9 5 3 ___________
The b i l l s
, and w i l l m atu re
th e f a c e amount w i l l be p a y a b le w ith o u t i n -
They w i l l be is s u e d i n b e a r e r form o n l y , and in d en o m in atio n s o f
$ 1 , 0 0 0 , $ 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
(m a tu rity v a lu e ),
T en d ers 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 ch e s up t o th e
Daylight Saving
c l o s i n g h o u r, two o ’ c l o c k p .m ,, E a s te rn /S io rg fe K ± t i m e ,
Monday, Mgr i|, 1 9 5 3
T en d ers w i l l n o t be r e c e i v e d a t th e T re a s u ry 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 m u ltip le o f $ 1 , 0 0 0 , and in t h e c a s e o f c o m p e ti
t i v e te n d e r s th e p r i c e o f f e r e d must be e x p re 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 t h r e e 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 .
I t i s u rg ed t h a t te n d e r s be made on th e p r i n t e d form s and fo rw ard ed in th e
s p e c i a l e n v e lo p e s w hich w i l l be su p p lie d by F e d e r a l R e se rv e Banks o r B ran ch e s
on a p p l i c a t i o n t h e r e f o r .
O th e rs th a n banking 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 t o subm it 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 enders w i l l be r e c e i v e d w ith o u t d e p o s it from
in c o r p o r a te d banks and t r u s t com panies and from r e s p o n s i b le and re c o g n iz e d
TREA SU R Y
D EPARTM EN T
Information Service
WASHINGTON, D .C .
44
R E L E A S E M O R N I N G NEWS P A P E R S ,
Thursday, April 30, 1953.
H-106
The S e c r e t a r y of the Treasury, b y this p u b l i c notice, i n v ites
tenders f o r $1,500,000,000, or thei'eabouts, of 9 1 - d a y T r e a s u r y bills,
for cash a nd in e x c h a n g e f o r T r e a s u r y b i l l s m a t u r i n g M a y 7, 1953* in
the a m o u n t of $ 1 , 300 , 35 ^ * 000, to be i s s u e d o n a d i s c o u n t b a s i s u n d e r
competitive a n d n o n - c o m p e t i t i v e b i d d i n g as h e r e i n a f t e r pro v i d e d .
The b i l l s of th is se rie s w ill be dated May 7* 1953* and w ill mature
August 6, 1953* when the face amount w ill be payable without in t e r e s t.
They w ill be issued in bearer form only, and in denominations of
$1,000, $5*000, $1 0 ,0 0 0 , $100,000, $5 0 0 , 0 0 0 , and $ 1 ,0 0 0 ,0 0 0
(maturity v alu e ).
Te n d e r s w ill be r e c e i v e d at F e d e r a l R e s e r v e B a n k s a nd B r a n c h e s
up to the c l o s i n g hour, two o ' c l o c k p . m . , E a s t e r n D a y l i g h t S a v i n g
time, Monday, M a y 4, 1953.
T e n d e r s wil l n ot be r e c e i v e d at the
Treasury Department, W a s h i ngton.
E a c h t e n d e r m u s t be f o r a n e v e n
multiple of $ 1 , 000, a nd in the case of c o m p e t i t i v e t e n d e r s the p r i c e
offered m u s t be e x p r e s s e d on the b a s i s of 100 , w i t h no t m o r e t h a n
three decimals, e. g., 99.925.
F r a c t i o n s m a y not be used.
It is
urged that te n d e r s be m a d e on the p r i n t e d f o r m s a n d f o r w a r d e d in the
special e n v e l o p e s w h i c h will be su p p l i e d b y F e d e r a l R e s e r v e B a n k s or
Branches o n a p p l i c a t i o n therefor.
O t hers t h a n b a n k i n g i n s t i t u t i o n s w i l l not be p e r m i t t e d to submit
tenders except f o r t h e i r o w n account.
T e n d e r s w i l l be r e c e i v e d
without d e p o s i t f r o m i n c o r p o r a t e d b a n k s a nd t r ust c o m p a n i e s a n d f r o m
responsible a n d r e c o g n i z e d d e a l e r s in i n v e s t m e n t securities.
Tenders
from o t h e r s m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face
amount of T r e a s u r y b i l l s a p p l i e d for, u n l e s s the t e n d e r s are
accompanied b y a n e x p r e s s g u a r a n t y of p a y m e n t b y a n i n c o r p o r a t e d b a n k
or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e n d e r s w i l l be o p e n e d at the
Federal R e s e r v e B a n k s a n d Branches, f o l l o w i n g w h i c h p u b l i c a n n o u n c e
ment wil l be m a d e b y the S e c r e t a r y of the T r e a s u r y of the a m o u n t a nd
price range of a c c e p t e d bids.
T h ose s u b m i t t i n g t e n d e r s w i l l be
advised of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of the
Treasury e x p r e s s l y r e s e r v e s the r i ght to a c c e p t or r e j e c t a n y or all
tenders, in w h o l e o r i n part, a n d his a c t i o n in ainy s u c h r e s p e c t
shall be final.
Subject to these r e s e r vations, n o n - c o m p e t i t i v e
tenders f o r $ 200,000 or less w i t h o u t s t ated p r i c e f r o m a n y one
bidder w ill be a c c e p t e d in full at the a v e r a g e p r i c e (in three
decimals) of a c c e p t e d c o m p e t i t i v e bids. >
2
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 in a c c o r d a n c e
w i t h the b i d s m u s t be m a d e or c o m p l e t e d at the F e d e r a l Re s e r v e
B a n k on M a y 7* 1953^ in cas h or o t h e r i m m e d i a t e l y a v a i l a b l e funds
or in a like face a m o u n t of T r e a s u r y b i l l s m a t u r i n g M a y 7 > 1953»
Cas h a n d e x c h a n g e t e n d e r s w i l l r e c e i v e equal' t r e a t m e n t . Cash
a d j u s t m e n t s w i l l b e m a d e f or d i f f e r e n c e s b et w e e n t he p a r v a l u e of
m a t u r i n g b i l l s a c c e p t e d in e x c h a n g e a nd the issue p r i c e of the n e w
bills.
The i n c o m e derived- f r o m Treasury;^'bills,- w h e t h e r i n t e r e s t or
g a i n f r o m the sale dr o t h e r ■disposition of the bills, shall not
h a v e a n y exemption, as such, and loss f r o m the sale or o t h e r
d i s p o s i t i o n •of Treasury- b i l l s shall not have, a n y special treatment,
as s u c h , • u n d e r the I n t e r n a l R e v e n u e Code, or laws a m e n d a t o r y or
s u p p i e m e n t a r y there t o . The b i l l s s h a l 1 be sub ject to estate,
i n h e r i tance/- g i f t ■■d r o t h e r e x cise taxes, w h e t h e r F e d e r a l or S t a t e ,
b ut shall b e e x e m p t f r o m all t a x a t i o n n o w or h e r e a f t e r i m p o s e d on
the .principal or i n t e r e s t t h e r e o f b y a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or b y a ny local t a x i n g authority.
F o r p u r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
b i l l s arc 'originally-: sold b y the U n i t e d Stat e s shall be c o n s i d e r e d
to be i n t e r e s t . ¡ U n d e r S e c t i o n s 42 arid 117 (a) ( l ) of the Internal
R e v e n u e Code, as a m e n d e d b y S e c t i o n 1 1 5 -of the Re v e n u e Act of 1 9 4 1 /
the a m o u n t of d i s c o u n t at w h i c h b i l l s - i s s u e d h e r e u n d e r are sold
shall nob ibe c o n s i d e r e d to a c c r u e u n t i l such b i l l s shall be sold,
r e 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 such b i l l s are e x c l u d e d fro m
c o n s i d e r a t i o n a s capital assets. '-Accordingly, the o w n e r of Treasury
b i l l s (other t h a n l i f e i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r nee d
i n c l u d e in h is i n come t ax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the
p r i c e p a i d f o r such bills, w h e t h e r on o r i g i n a l issue or on
s u b s e q u e n t purchase, a nd the aiibúnb a c t u a l l y ' r e c e i v e d e i t h e r u p o n
sale or r e d e m p t i o n at m a t u r i t y d u r i n g the ta x a b l e y e a r f o r w h i c h the
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 418, as amended, a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y b i l l s and g o v e r n the
c o n d i t i o n s of t heir.issue.
C o pies of the c i r c u l a r m a y be ob t a i n e d
f r o m a n y F e d e r a l R e s e r v e B a n k or Branch.
oOo
AHAEgSEES- -9F
1ALL0TMSNTS
^GSLJU5$â™â3* BY INVESTOR CLASSES
0* l>
/)
J
7
IMMEDIATE RELEASE,
W ednesday, A p r i l 2 9 , 1953»
S e c r e t a r y o f th e T r e a s u r y Humphrey to d a y announced th e narfr■i«uhixrapliii
on
0H
Sl a ll o tm e n t f i g u r e s w ith r e s p e c t t o th e c u r r e n t o f f e r i n g o f 3 - l / i * p e r c e n t
T r e a s u r y Bonds o f 1 9 7 8 - 8 3 .
^ a llo tm e n ts w ere d iv id e d among th e s e v e r a l F e d e r a l R e
s e r v e D i s t r i c t s and t K 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 rv e
D is tric t
T o t a \ S u b s c r ip t i o n s ^R eceiv ed
T o t a l -S u b scri p -
B o s to n
New York
P h il a d e lp h ia
C le v e la n d
Richmond
A tla n ta
C h icago
S t . L o u is
M in n eap o lis
K ansas C i t y
D a lla s
San F r a n c i s c o
T re a s u ry
Government I n v e s t ment A cco u n ts
|
$
TOTAL
3 2 6 ,% ) ,5 0 0
2 , 8 1 8 ,2 7 3 * 5 0 0
160 , 9%|000
2 3 2 , 6 8 1 ,5 0 0
2 l * 2 ,l f l f ,5 0 0
ll* 8 ,8 (9 B ,5 0 0
5 1 9 ,M , 500
1 0 9 / 9 6 1 ,5 0 0
9 3 4 5 2 2 ,0 0 0
8 / , 1*6?, 500
1 0 ^ , 2 3 1 ,0 0 0
3 ^ 7 , 502.500
tio n s-^H ettred
6 6 , 8 5 8 ,5 0 0
5 7 0 , 6 0 3 ,0 0 0
3 3 , 8 7 1 ,0 0 0
1*8,31*3,500
1*9,51*0,500
3 0 ,6 1 * 9 ,0 0 0
1 0 6 , 8 0 0 ,5 0 0
2 3 , 5 6 6 ,0 0 0
1 9 , 1 8 5 ,0 0 0
1 7 , 6 0 5 ,0 0 0
2 1 ,7 5 8 ,0 0 0
80 , 575,500
1 3,1621000
705,500
£ 1 7 , 7 7 9 ,4 0 0
1 1 7 , 7 7 9 ,0 0 0
$ 5 /,3 6 1 ,7 8 7 ,5 0 0
$ 1 ,1 8 7 ,8 1 * 0 ,0 0 0
In announcing th e f i g u r e s on t h e ca s h o f f e r i n g , S e c r e t a r y Humphrey a l s o
c a l l e d a t t e n t i o n t o th e f a c t t h a t th e s u b s c r i p t i o n books w i l l c l o s e a t th e
c l o s e o f b u s in e s s A p r i l 3 0 f o r t h e exch an g e o f S e r i e s F and G S a v in g s Bonds
m a tu rin g in t h e months o f May th ro u g h D ecem ber, 1 9 5 3 , f o r th e 3 -1 /1 * p e r c e n t
T r e a s u r y Bonds o f 1 9 7 8 - 8 3 .
E xch an g e s u b s c r i p t i o n s p la c e d i n t h e m a il b e f o r e m id n ig h t T h u rsd ay , A p r i l 30
w i l l b e c o n s id e r e d a s h av in g been e n te r e d b e f o r e th e c l o s e o f th e s u b s c r i p t i o n
b o o k s.
Announcement o f th e amount o f exch an g e s u b s c r i p t i o n s and t h e i r d i v i s i o n by
F e d e r a l R e se rv e D i s t r i c t s w i l l be made l a t e r .
TREA SU R Y
D EPARTM EN T
Information Service
Wa s h in g t o n , d .c .
IMMEDIATE RELEASE,
Wednesday, April 29, 1 9 5 3 »
H-107
Secretary of the Treasury Humphrey today announced the allotment
figures with respect to the current offering of 3-1/4 percent
Treasury Bonds of 1978-83.
Allotments were divided among the several Federal Reserve
Districts and the Treasury as follows: .
♦
Federal Reserve
Total
District_____
Allotments
$
Bost o n
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Government Investment
Accounts
66,358,500
570 ,603.000
33.871.000
48.343.500
49.540.500
30.649.000
106,800,500
23 .566.000
1 9 .1 85 .000
1 7 .605.000
21 ,758,000
80.575.500
705 .5 OO
117.779.000
TOTAL
$1,187.840,000
A l l o t m e n t s b y i n v e s t o r c l a sses w ere as follows:
Investor Class
’
1.
2.
3.
4.
5.
6.
7.
8.
9.
,
Allotments
(in millions of d o l l a r s )
individuals, p a r t n e r s h i p s ,
& pers. t r ust a c cts,.... .......... .......
$
254.6
Sa v i n g s b a n k s ........ * ......................
102.2
I n s u r a n c e c o m p a n i e s ...............
97.4
Dealers, brokers, i n v e s t m e n t h o u s e s , .....
158.2
F e d e r a l a g e n c i e s a nd F e d e r a l trust funds.
2.0
State a n d local g o v e r n m e n t s . . .............
74.6
B u i l d i n g a nd L o a n & s a v ings a nd l o a n
a s s n s ........
37.8
O t he r n o n b a n k i n g c o r p o r a t i o n s , p e n s i o n
trusts, e t c , ................................ •
214.4
C o m m e r c i a l b a n k s .........
128,6
T o t a l ............
$1,069.8
G o v e r n m e n t I n v e s t m e n t A c c o u n t s ...... ......
118.0
G r a n d T o t a l ...... .
$ 1 , 187.8
451
-
2
-
In a n n o u n c i n g the f i g u r e s on the c ash offering, S e c r e t a r y
H u m p h r e y a l s o c a l l e d a t t e n t i o n to the fact that the s u b s c r i p t i o n
b o o k s w i l l close at the close of b u s i n e s s April 30 f o r the
e x c h a n g e of Series F a nd G S a v i n g s B o n d s m a t u r i n g in the m o n t h s of
M a y t h r o u g h December, 1953^ fo r the 3 - 1 / 4 p e r c e n t T r e a s u r y B o n d s of
1978-83.
E x c h a n g e s u b s c r i p t i o n s p l a c e d in the mai l b e f o r e m i d n i g h t
Thursday, April 30, wil l be c o n s i d e r e d as h a v i n g b e e n e n t e r e d b e f o r e
the close of the s u b s c r i p t i o n books.
A n n o u n c e m e n t of the a m o u n t of e x c h a n g e s u b s c r i p t i o n s and t h e i r
d i v i s i o n b y F e d e r a l R e s e r v e D i s t r i c t s w i l l be m a d e later.
oOo
- 3 R e g i s t e r of J a n u a r y 28, 1953,
p l a t e d new procedure,
g a v e d e t a i l s o f _the co n t e m -
to p e r m i t r e p r e s e n t a t i v e s f r o m trade
interests.
T h e r e g u l a t i o n s a n n o u n c e d t o d a y are i d e n t i f i e d as
T r e a s u r y D e c i s i o n 53249*
of Thursday,
April 30,
an<^ a p p e a **
1953.
Federal Register
T he c h a n g e s a re e f f e c t i v e
9 0 d a y s a f t e r f u r t h e r p u b l i c a t i o n in the T r e a s u r y D e c i s i o n s
(we e k l y ) at a n e a r l y date.
oOo
2
b len d in g w ith h ig h e r grade w heat, a use p rob ab ly a c ce n tu a te d
by te c h n o lo g ic a l advances and economic f a c t o r s .
I t th e r e f o r e
^ w b T c o n c l u d e d th a t th e p re se n ce of 30 p e rc e n t o r more of
damaged k e rn e ls c ewid^no lo n g e r be a cce p te d a s th e s o le
c r i t e r i o n in d eterm in ing when wheat i s c l a s s i f i a b l e under
p arag rap h 729 a s "w heat, u n f it f o r human con su m p tion .”
Hew r e g u la tio n s announced tod ay p ro v id e th e a d d itio n a l
req u irem en t t h a t th e im p o rte r claim in g th e low er r a t e o f
d uty must submit a d e c la r a tio n to th e e f f e c t th a t no p a r t
o f th e im p o rta tio n i s to be u sed , w ith o r w ithout b lend ing
w ith o th e r w heat, in th e m anufacture o f p ro d u cts f o r human
consum ption, and f u r th e r s e t t i n g f o r t h th e p urposes f o r which
th e wheat i s to be u sed .
F a ilu r e to p ro v id e such d e c la r a tio n s would r e s u l t in
c l a s s i f i c a t i o n o f th e wheat a s d u tia b le a t th e r a t e o f 21 ce n ts
p e r b u sh e l, r e g a r d le s s o f q u a lity ^ and w ill b rin g th e
im p o rta tio n w ith in quota l i m i t a t i o n s .
Mr. S tru b in g e r p o in ted ou t th a t th e same s a n c tio n s would
ap ply f o r th e f i l i n g o f a f a l s e d e c la r a tio n under th e new
p ro ce d u re a s apply in th e ca se o f th e f i l i n g of any o th e r
f a l s e document under th e custom s-revenu e law s.
The Bureau pxw l'uicsSy gave n o tic e by p u b lic a tio n th a t
\
a change in th e p ro ced u res j ^ ï a t é d to c l a s s i f i c a t i o n o f wheat \
under p aragrap h 729 was under c o n s id e r a tio n ^ in th e F ed eral^ /
R e g is te r November 7 , 1 9 5 2 f - and su b seq u en tly, in th e F e d e ra l
>
'
À~/ - / é T
David B . Strubinger, Acting Commissioner of Customs,
today announced stricter procedures for qualifying low grade
wheat importations as "wheat, unfit for human consumption”
under the provision therefor in paragraph 729 of the Tariff
Act of 1930, as amended.
Wheat so classified is dutiable at 5 percent ad valorem,
compared with 21 cents per bushel for wheat not so classified.
Grain
heretofore
consumption"
under paragraph
frost-damaged
contaminated
wheat
does
commerce
damaged
for
classified
729
Canadian wheat
wheat.
not
under
In
have
the
laws
wheat^ h a s b 2 e n
industrial
the
used
has
been
to
almost
or
either
United
as
unfit
for
feed
or
contaminated
foreign
States.
for
human
exclusively
than decomposed
decomposed
access
of
"wheat,
rather
fact,
free
as
or
domestic
Frost-
stock or poultry,
or
purposes.
Under long standing regulations,
Customs has followed
the practice of classifying wheat that contains 30 percent
or mor e of damaged kernels as "wheat, unfit for h uman
c o n s u m p t i o n , " and entitled, under par a g r a p h 729*
to the lower
,
duty.
Importations
pint
rrmrnl-
increased
going
years
available
established
been
of
that
such
as
grain have
unfavorable
quantities.
considerable
into products
increased
crop
greatly
conditions
Investigation by
quantities
for human
of
in
in
the-
Canada
Customs
such wheat
consumption by means
have
of
TR EA SU R Y
D EPARTM EN T
WASHINGTON, D .C.
Information Service
I M M E D I A T S RELEASE,
Thursday, A p r i l 30*
1953»
H-IOS
D a v i d B. Strubinger, A c t i n g C o m m i s s i o n e r of Customs, t o d a y
announced stricter procedures for qualifying low grade wheat
i m p o r t a t i o n s as "wheat, u n f i t f o r h u m a n c o n s u m p t i o n " u n d e r the
p r o v i s i o n t h e r e f o r in p a r a g r a p h 7 2 9 of the T a r i f f Act of 1930* as
amended.
W h e a t so c l a s s i f i e d is d u t i a b l e at 5 p e r c e n t ad valorem,
c o m p a r e d w i t h 21 cents p e r - b u s h e l f o r w h e a t not so classified.
G r a i n h e r e t o f o r e c l a s s i f i e d as "wheat, u n f i t f o r h u m a n
c o n s u m p t i o n " u n d e r p a r a g r a p h 729 h as b e e n a l m o s t e x c l u s i v e l y
f r o s t - d a m a g e d C a n a d i a n w h e a t r a t h e r t h a n d e c o m p o s e d or c o n t a m i n a t e d
wheat.
In fact, d e c o m p o s e d or c o n t a m i n a t e d w h e a t does not have
f r e e a c c e s s to e i t h e r f o r e i g n or d o m e s t i c c o m m e r c e u n d e r the laws
of the U n i t e d S t a t e s . F r o s t - d a m a g e d w h e a t c u s t o m a r i l y has b e e n u s e d
as f e e d f o r s t o c k or p o u ltry, or f o r i n d u s t r i a l pur p o s e s .
U n d e r lon g s t a n d i n g r e g u lations, Cu s t o m s h as f o l l o w e d the
p r a c t i c e of c l a s s i f y i n g w h e a t that c o n t a i n s 30 p e r c e n t or m o r e of
d a m a g e d k e r n e l s as "wheat, u n f i t fo r h u m a n c o n s u m p t i o n , " a nd
entitled, u n d e r p a r a g r a p h 729 * to the l o w e r duty.
I m p o r t a t i o n s of such g r a i n h a v e i n c r e a s e d g r e a t l y in rece n t
y e a r s as u n f a v o r a b l e crop c o n d i t i o n s in C a n a d a i n c r e a s e d a v a i l a b l e
quantities.
I n v e s t i g a t i o n b y Cu s t o m s e s t a b l i s h e d that c o n s i d e r a b l e
q u a n t i t i e s of suc h w h e a t hav e b e e n g o i n g into p r o d u c t s f o r h u m a n
c o n s u m p t i o n b y m e a n s of b l e n d i n g w i t h h i g h e r g r a d e wheat, a use
p r o b a b l y a c c e n t u a t e d b y t e c h n o l o g i c a l a d v a n c e s and e c o nomic
fa c t o r s .
It t h e r e f o r e ha s b e e n c o n c l u d e d that the p r e s e n c e of
30 p e r c e n t or m o r e of d a m a g e d k e r n e l s should no l o n g e r be a c c e p t e d
a s the sole c r i t e r i o n in d e t e r m i n i n g w h e n w h e a t is c l a s s i f i a b l e
u n d e r p a r a g r a p h 729 as "wheat, u n f i t f o r h u m a n c o n s u m p t i o n . "
U e w r e g u l a t i o n s a n n o u n c e d t o d a y p r o v i d e the a d d i t i o n a l
r e q u i r e m e n t that the i m p o r t e r c l a i m i n g the l o w e r rate of d u t y m u s t
s u b m i t a d e c l a r a t i o n to the e f f e c t that no p a r t of the i m p o r t a t i o n
is to be used, w i t h or w i t h o u t b l e n d i n g w i t h o t h e r wheat, in the
m a n u f a c t u r e of p r o d u c t s f o r h u m a n consumption, a nd f u r t h e r s e t t i n g
f o r t h the p u r p o s e s f o r w h i c h the w h e a t is to be used.
456
-
2
-
F a i l u r e to p r o v i d e such d e c l a r a t i o n s w ill r e s u l t in
c l a s s i f i c a t i o n of the w h e a t as d u t i a b l e at the rate of 21 cents
p e r bushel, r e g a r d l e s s of quality, an d w i l l b r i n g the i m p o r t a t i o n
w i t h i n q u o t a limitations.
Mr. S t r u b i n g e r p o i n t e d out that the same s a n c t i o n s w o u l d
a p p l y f o r the f i l i n g of a f a lse d e c l a r a t i o n u n d e r the n e w
p r o c e d u r e as a p p l y in the case of the f i l i n g of a n y o t h e r false
d o c u m e n t u n d e r the c u s t o m s - r e v e n u e l a w s .
The B u r e a u gave n o t i c e b y p u b l i c a t i o n i n the F e d e r a l R e g i s t e r
N o v e m b e r 7, 195 2 that a c h ange i n the p r o c e d u r e s f o r c l a s s i f i c a t i o n
of w h e a t u n d e r p a r a g r a p h 729 w as u n d e r c o n s i d e r a t i o n a n d s u b
sequently, i n the F e d e r a l R e g i s t e r of J a n u a r y 28, 1953> gave
d e t a i l s of the c o n t e m p l a t e d n e w p r o c e d u r e s , to p e r m i t
r e p r e s e n t a t i o n s f r o m trade i n t e rests.
The r e g u l a t i o n s a n n o u n c e d t o d a y are i d e n t i f i e d as T r e a s u r y
D e c i s i o n 53249.* a nd a p p e a r in the F e d e r a l R e g i s t e r of Thursday,
A p r i l 30, 1953,
The ch a n g e s are e f f e c t i v e 9 0 d a y s a f t e r f u r t h e r
p u b l i c a t i o n in the T r e a s u r y D e c i s i o n s (weekly) at a n e a r l y date.
oOo
@FedFRASER