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TREASURY DEPARTMENT LIBRARY

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TREASURY DEPARTMENT

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laaa mmmlM

'-^ VA* tenders for

%l9&)Q9tofyOQ09 or thanMftKMUi, af ft-da? ^rea-mry tAtt* to \m dmtmd m 7 sad te
-_far* Jut**** 4, U&, mmlmm ware mttmrmd m y^ll 30, wwm mymmma at tr» Mdmml am*
Baz-Oi an Hqr fc.
The. details of tfet* 1mm mm m follows;

f mtml rn^MM tm - m$U®9m9m>
fatal accepted

- lalbCUiiO^QOQ

(fcatfaAat m7973k9®®0 mmtmmd m m
ttmb-mmmtltlm basis and accepted in
Average atiam - 99mti8t SQBtalM* rate of «_«EKM_* approx. 2«;IAf per mmm
%®m of &cc©at^d competitive bide:
aigh - f9«Mb ^uival^st rata at dlsea_nt appim. 2.176,; far msmm
s
urn*
<* fftMft
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tl$

of the

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1*14 tar m% Hi»torp & a * mm accepted)
Total

niatslat

Am>li©d £_»
.{8_K___gi.i.s^i_i__»

Boston
l%il_dftl£hia
C2«v»la_d
|ll4l_Afl_ld

St. Louis
jfUim&polisi
Eauaaa Glty

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m9m9om

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X?*?5a,000
36,338,000

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TOTAL $2,166,360,000

24,997,000
*7»67*»0Q0£a ,2ait»000
31,520,000
lk,l_k.000
77,62U»G0G
36,200,^1
81,061,000
11,500,400,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

9
RELEASE MORNING NEWSPAPERS,
Tuesday, May 5, 1953.

*H-109

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 May 7 and to mature August 6, 1953, which were offered on
April 30, were opened at the Federal Reserve Banks on May 4.
The details of this issue are as follows:
Total applied for - $2,166,360,000
Total accepted
- 1,500,400,000 (includes $247,73^,000
entered on a non-competitive
basis and accepted in full at
the average price shown
belov/)
Average price
- 99.405/ Equivalent rate of discount approx.
2.352$ per annum
Range of accepted competitive bids:
High - 99.450 Equivalent rate of discount approx.
2.176$ per annum
Low
- 99.400 Equivalent rate of discount approx.
2.374$ per annum
(49 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 20,696,000 $ 18,696,000
New York
1,489,431,000
Philadelphia
48,964,000
Cleveland
43,234,000
Richmond
17,752,000
Atlanta
27,972,000
Chicago
268,364,000
St. Louis
36,338,000
Minneapolis
15,154,000
Kansas City
80,684,000
Dallas
36,710,000
San Francisco
81,061,000
TOTAL $2,166,360,000 $1,500,400,000
0O0

Accepted
919,566,000
33,454,000
43,234,000
16,997,000
27,672,000
200,224,000
31,528,000
14,144,000
77,624,000
36,200,000
81,061,000

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tuair o m fttt* m «&U lm (MMriOag a M O W af M U M li-ian
m4Xl,iirttaMi *te twtoa m ««r *a-c*f9**a* te* m will mot t#
fear* agaSaat M * t»atlm af aav _*»ttUmal pvailam fa mm
imm of unMa«s£ry SmM^iip %a *l* faiaa**? and agriculture
af tela aa_**t»r. Itettavamat a jmialma aawaa af ^ l l w
aaa %• miteA aat« and I ya.ac>^na mmt mm m% mm mmmm€ la
ita fMawt fan ta aim w fist 44 444% At m%*

mm

* 4 i" e@ns«l0msfiai» af tte aaaa for iaaiii»iag a aaatiaaiaa blab*
laval of ®mplo:wynl .and a aantfaulBS high #ti»iaf^ of lining
in tut ttoltatf atataa. Wn m i l ba @oft»@ioit§ alao af m a

mm

forbore solidly baaad atoateiaa fa ft*_*ail? aauatrlaa

mmmm

mm a w l d . I aarafal "aalamtag af all of mm va*laua*aifpaata
of this problem trill taH& some time.
m a t ateald ba mm poiiay in m a latarfaf lte fni&aaat
hat recorj^nded an extension of the Reciprocal Trade Agj^mmntm
lot iiTim p m a m t fan*
mttnaaadation*

1 aa a w e "mat 'mia ia^a 'wiaa

Until v*a have Boberly considered the whole

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umriaa to aate radleal abaagaa in either dinatlaau

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wmM

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tte lagltlaata saftguaMlag #f domastto iadntrlaa* agriculture
and labor mtm&dmMm*

By exactly tte aame token, I would

.vaoaanaaa < aaafaat amy aetion, at this tfaa* to remove the
atla-lua to favaiga aaporm afilaa tea boon gyaatad by m a
iteSftaraaal trada J«raaa»ata tet« 1 do not -baltaaa ttet tte
United States ateuld fall taoH at 'a tin atea m need tte
ooopaf^tlos of all of tte fate world, m a t thla naaat natilni
la a m a a u n to tela tte af tuatfaa optu until tte atola pnfelm
em bm "lamad at* 'Bataaafaa of m a Att in i m pnaa&t f a n la,
1 ballava* tte m a a u n

mmM®®&*

M till a m ba do*», m earn mm

faamaft a i m aaaalataiy

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aooaonio

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hits $@ai to m rttaattea a i m toonaaiag fana over m a paat
- - .

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tte wiki tefan ttet* la liaatifj^pMm* 1 taited «&th
- y

..*=-,

nppaaamtatl^®$ af m a mitad Etogdaa* tansay* and m u t t *
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about m a ps»abiaa af aobfairia§ a balance af tmia to tteir
dollar aaoomita* ften la f*U'na_tfaattea osi mala part
m a t teitad Stoma mAmimtmmm Jaat mm aaaaaaia aid aatmat*
and atemid not, go on mmv*f>« fa am laanaatog dagna ttey
a n faaaaiag tteli* atmattoa on nays and awaits of fnatog tteto
tnd* from natrtotiaaa mm tttttog tteaaalna lata a paaitfoa
m a n m a y can stand oa mat* mm fmmt*
y-

I Relieve m ought to aisaotmia tteaa afforta* 1
a i4'

tettam it la iaportaat to tte lifted atataa m a t t&mmm
countries aate mm wmh %wm*%mmm $m paaalbla to tte amotion
of aaalug ** their natrtottoaa on tnda and paynata.
m% tte pnblaa la aaa*te* mm it aaada a goad teal af
m y mmmful maagte* It natda ma.kite af amdy *MaH tte
fnalteat tea prapaaad* bafan at tan tstabllati fInly tte
itoa of pt&lty «bloSi mm a i m m n t * .lam.tte n a a a U n ^
Bniioii and tte esafnms* 1 m m i | ilU bring to ttet atudy

STATEMENT BY SECRETARY OF THE TREASURY HUMPHREY
BEFORE COMMITTEE ON WAYS AND MEANS, HOUSE
OF REPRESENTATIVES, ON THE RECIPROCAL
TRADE AGREEMENTS ACT
4, 1953

/to

7
STATEMENT BY SECRETARY OF THE TREASURY HUMPHREY
BEFORE COMMITTEE ON WAYS AND MEANS, HOUSE
OF REPRESENTATIVES, ON THE RECIPROCAL
TRADE AGREEMENTS ACT

May 4, 1953
The problem of our trade relations with foreign countries
has come to my attention with Increasing force over the past two
months. Just over a week ago I was in Paris with Secretary Dulles
and Secretary Wilson and Mr. Stassen. In the weeks before that,
in Washington, I talked with representatives of the United Kingdom,
Germany and France.
There is a uniform concern in the minds of these people about
the problem of achieving a balance of tirade in their dollar accounts
There is full realisation on their part that United States
assistance just as economic aid cannot, and should not, go on forever. To an increasing degree they are focusing their attention
on ways and means of freeing their trade from restrictions and
getting themselves into a position where they can stand on their
own feet.
I believe we ought to encourage these efforts. I believe it
is important to the United States that these countries make as
much progress as possible In the direction of easing up their
restrictions on trade and payments.
But the problem is complex and it needs a good deal of very
careful thought. It needs the kind of study which the President
has proposed, before we can establish firmly the line of policy
which we wish to set. Both the Executive Branch and the Congress,
I am sure, will bring to that study a consciousness of the need
for insuring a continuing high-level of employment and a continuing
high standard of living in the United States, We will be conscious
also of the need for more solidly based economies In friendly
countries around the world. A careful balancing of all of the
various aspects of this problem will take some time.
What should be our policy in the interim? The President has
recommended an extension of the Reciprocal Trade Agreements Act
in its present form. I am sure that this is a wise recommendation.
Until we have soberly considered the whole problem of our foreign
economic policies, it would be highly unwise to make radical
changes in either direction. I would not recommend to the Congress
any hasty action which ignores the legitimate safeguarding of
H-110
domestic
industries, agriculture and labor standards. By exactly

b>

- 2the same token, I would recommend against any action, at this
time, to remove the stimulus to foreign exports which has been
granted by the Reciprocal Trade Agreements Act. I do not believe
that the United States should fall back at a time when we need
the cooperation of all of the free -world. What this moment
requires is a measure to hold the situation open until the whole
problem can be looked at. Extension of the Act in its present
form is, I believe, the measure required.
If this can be done, we can move forward with completely open
minds towards formulating an appropriate foreign economic policy
for this country. In doing that the Treasury will have a simple
objective. We would like to help friendly countries, in the
soundest and least expensive way possible, to stand on their own
feet. We will be seeking a course of action which will reduce the
burden on our taxpayers, but we will want to gaiard against the
creation of new national problems In the form of unnecessary hardship to the industry and agriculture of this country. I believe
that a judicious course of action can be worked out, and I recommend
that,the Act be renewed in Its present form to give us time to
work it out.

0O0

- 5 teaamila, me tmml that tte program abiah lias been
presented to you today is tte best balaaea bataaaa nourlty
for our frianda and ouraalvaa mr*«l our staoaaalty for nducfag
aaqpandltuna that can ba appropriately iianmgad at this time.
4m me

laatttog forward to making mvinm

a t e n n r poaalbla and

fwtter prograaa in making additional raduotlona in tte futun*

_ * _

atemva* and ateravor justlflad, Altteugb oi^andlturo® of
suoh magnitude a m

nocaasarlly anate - iwoblam* -may aaa-te

tetelad under tte'aoaad financial principles to m i e h m

ara

admitted.
In fonulattog- tte foniga aaalatanco program a l a n ••
attoation tea alao b a n - g l n a to tte daalrabillty of foataring
private tonatmat abroad, fhla will not only nduaa public
aiepoiidltui?® but tte tovonaont ateuld not undortatea aetlvltiaa
that can batter ba oarrlad on by tte paapla

tteataelvoa* In

tbla dlnotloa mm will b® aaaataatly alart to utilising tte
International Bank for Xaaonatruetiaa and Bavaiopaont and tte
International Monetary Fund a t e n w r poaalbla* to tbla and
also it la tte policy of tte Oovtrnaant ttet Intanat ratoa
on any 'gonrmaatal loana vttiah may ba n@coa»ary shall be
such aa not to discourage private investment.
Aa m

pragraaa mrougjiout tte yaar mm ail! giv© aarioua

aonsldarotloa to tte pnbla* of tte rate of aaepandltures wbioh
aa will lay tefon you next yaar* 4m will atrive for proper
balanaa bataaan military prapatedness tn tte mitad Statea
and overseas, and aatotaaanaa of aoonoaio atrangtb at hoae.
We bavo elra&dy laid the groundwork for ostabliabing ttet
balance. In tte MA90 mooting to Faria laat month my aaaooiatea
and 1 took steps In that dinotloti* Our frianda abroad

mm

fully advlaed of tbla policy. A® we go through tte aaat year
we will build upon that foundation.

- 3to put that policy into practice right nov,^ Changing tte
practice of the past* m

now propose that tte eongrass

authorise new funds for foreign aaalatanoa in an apaunt
aaallar than tte anticipated aacpandituraa during tte ooaing
fiscal year. Aa we do our future planning wm mill ten
constantly tefora ua tte objective of raduatog tb® ovarteag
of unutilised authorisations, that ia a m a y Important
objective, and X want you to knew that it ia not only our
objective but is now our determined practice, that ia m y X
have talked first about thia prablsa of now ebXigatlefial
authority.
Mow X turn to tte prablaa of actual aaqpaadituraa during
fiaoal year 195*. those will be large, ftera to no creation
that these expendituns and otters neoeasary to our national
security will af fact tte possibility of telaaoing tte budget
and tte turn when we can look forward to tax reductions, $r
Because thia Adalaistration la coamltted to a program of sound
money and of ndmaing taxation at tte aarllast possible time,
X can assure you that tteaa aapandituraa have boon most
oarefully studied froa tte standpoint not only of tteir $ *
effectiveness but also froa tte point of view of tte naoassity
of making ttea in m a proposed mounts to contribute to
essential security, te a n committed to tte policy of constantly
reviewing tte necessity of aaking tte axpandituraa currently
during tte yaar and will make reductions or eliminations

- 2 This question of continuing new obligations! authority
has been a matter of damp concern to m e Administration, As
you know, men President Eisenhower entered office he inherited
tte problem of #31 billions in outstanding obligations and
unsatisfied authorisations to spend Government funds. The
expenditures far tte fiscal year 195^ ~ tte expenditures X
will talk about in a few minutes — will come largely from
m i s overhang.
If me are ever going to balance tte budget and bring
expenditures within tte tightest possible control, we must
do something about achieving a run-off of tte large carryover
of unspent authorisations. We cannot continue to ask each
year for substantially more money m a n we will actually spend
in the ensuing twelve months, because that means tte overhang
constitutes a snowballing threat to financial stability,
Sow we have tried to do something about this problem in
tte Bill that is before you. We are changing tte direction
that has been followed in m e past few years. But we are not
proposing to do so with unreasoning abruptness. We are trying
to strike a proper balance between maintaining an adequate and
continuing free world defense and creating tte condition© for
long-term financial stability in this country.
The way to do that, It seems to me, is to request each
year less than will be spent in the next twelve months, Vou
will note from tte exhibits before you that we are beginning

You have noted from what has previously been said by tte
preceding witnesses that the great bulk of tte money that is
now being requested is to be spent for direct contributions to
our security.

It will be largely for military-end items or

directly contributing to our friends and our own mutual defense.
You have also heard it said by tte previous witnesses that we
will get as much, or more, for our money in security in this
way than by making additional direct military expenditures,
It ia our purpose to secure the maximum of security wherever
it may be for the least possible expenditures of money,

1

believe that the assistance proposed in this legislation meets
that requirement, I think it should be rezudered and that we
can render it advantageously as compared with any equal
expenditures alsewhore. It is understood, of course, by all
concerned that as time goes on and if conditions change,
proposed expenditures will be reduced or omitted wherever
that can properly and suitablar be done without prejudice to
our security, and at all times every effort will be made to
fully get our money*s ^orth.
A good part of the money being requested in this Bill
will not be spent in tte coming fiscal year. Its authorisation
enables tte forward planning and contracting that Is necessary
m e n you are engaged in building a defense force, But it is
planned for expenditure at a later date.

STATEMENT BY SECRETARY OF THE TREASURY HUMPHREY BEFORE
JOINT SESSION OF SENATE FOREIGN RELATIONS CCMMITTEE
AND HOUSE FCBEIGN AFFAIRS COMMITTEE
ON EXTENSION OF THE MUTUAL SECURITY PROGRAM
May 5, 1953

15
STATEMENT BY SECRETARY OF TEE TREASURY HUMPHREY BEFORE
JOINT SESSION OF SENATE FOREIGN RELATIONS COMMITTEE
AND HOUSE FOREIGN AFFAIRS COMMITTEE
ON EXTENSION OF THE MUTUAL SECURITY PROGRAM
May 53 1953
You have noted from what has previously been said by the
preceding witnesses that the great bulk of the money that is now
being requested is to be spent for direct contributions to our
security. It will be largely for military-end items or directly
contributing to our friends and our own mutual defense. You have
also heard it said by the previous witnesses that we will get as
much, or more, for our money in security in this way than by making
additional direct military expenditures. It is our purpose to
secure the maximum of security wherever it may be for the least
possible expenditures of money. I believe that the assistance
proposed in this legislation meets that requirement. I think it
should be rendered and that we can render it advantageously as
compared with any equal expenditures elsewhere. It is understood,
of course, by all concerned that as time goes on and if conditions
change, proposed expenditures will be reduced or omitted wherever
that can properly and suitably be done without prejudice to our
security, and at all times every effort will be made to fully get
our money's worth.
A good part of the money being requested in this Bill will
not be spent in the coming fiscal year. Its authorization
enables the forward planning and contracting that is necessary
when you are engaged in building a defense force. But it is
planned for expenditure at a later date.
This question of continuing nevi obllgational authority has
been a matter of deep concern to the Administration. As you know,
when President Eisenhower entered office he inherited the problem
of $8l billions in outstanding obligations and unsatisfied
authorizations to spend Government funds. The expenditures for
the fiscal year 195^- — the expenditures I will talk about in
a few minutes -- will come largely from this overhang.
If we are ever going to balance the budget and bring
expenditures within the tighest possible control, we must do something about achieving a run-off of the large carryover of unspent
authorizations. We cannot continue to ask each year for substantially more money than we will actually spend in the ensuing
twelve months, because that means the overhang constitutes
H-lll
a snowballing threat to financial stability.

- 2 -

*f

Now we have tried to do something about this problem in the
Bill that is before you. We are changing the direction that has
been followed in the past fevi years. But we are not proposing to
do so with unreasoning abruptness. We are trying to strike
a proper balance between maintaining an adequate and continuing
free world defense and creating the conditions for long-term
financial stability in this country.
The way to do that, it seems to me, is to request each year
less than will be spent in the next twelve- months. You will
note from the exhibits before you that vie are beginning to put
that policy into practice right now. Changing the practice of
the past, we now propose that the Congress authorize new funds
for foreign assistance in an amount smaller than the anticipated
expenditures during the coming fiscal year. As we do our future
planning we will have constantly before us the objective of reducing the overhang of unutilized authorizations. That is a very
important objective, and I want you to know that it is not only
our objective but is now our determined practice. That is why
I have talked first about this problem of new obiigational
authority.
Now I turn to the problem of actual expenditures during fiscal
year 195^. These will be large. There is no question that these
expenditures and others necessary to our national security will
affect the possibility of balancing the budget and the time when
we can look forward to tax reductions. Because this Administration
is committed to a program of sound money and of reducing taxation
at the earliest possible time, I can assure you that these
expenditures have been most carefully studied from the standpoint
not only of their.effectiveness but also from the point of view of
the necessity of making them in the proposed amounts to contribute
to essential security. We are committed to the policy of constantly
reviewing the necessity of making the expenditures currently during
the year and will make reductions or eliminations whenever and
wherever justified. Although expenditures of such magnitude will
necessarily create problems, they can be handled under the sound
financial principles to which we are committed.
In formulating the foreign assistance program close attention
has also been given to the desirability of fostering private
investment abroad. This will not only reduce public expenditure
but the Government should not undertake activities that can better
be carried on by the people themselves. In this direction we will
be constantly alert to utilizing the International Bank for
Reconstruction and Development and the International Monetary Fund
wherever possible. To this end also it is the policy of the
Government that interest rates on any governmental loans which may
be necessary shall be such as not to discourage private investment.

17
- 3As we progress throughout the year we will give serious
consideration to the problem of the rate of expenditures which
vie will lay before you next year. We will strive for proper
balance between military preparedness in the United States and
overseas, and maintenance of economic strength at home. We have
already laid the groundwork for establishing that balance. In
the NATO meeting in Paris last month my associates and I took
steps in that direction. Our friends abroad were fully advised
of this policy. As we go through the next year we will build
upon that foundation.
Meanwhile, we feel that the program which has been presented
to you today is the best balance between security for our friends
and ourselves and our necessity for reducing expenditures that
can be appropriately managed at this time. We are looking forward
to making savings wherever possible and further progress in making
additional reductions in the future.

0O0

18
FOR RELEASE Press Service
Tuesday, May 12, 1955

No, H-1I2

Secretary of the Treasury Humphrey today made public data from
the report, Statistics of Income for 19498 Part 1, compiled from
individual income tax returns and from taxable fiduciary income tax
returns, for the income year 1949. These data are prepared under
the direction of Commissioner of Internal Revenue T. Coleman Andrews.
This release contains five tables: Four showing data for individual returns and one showing data for taxable fiduciary returns.
Table 1 shows simple and cumulative distributions for number of individual returns, adjusted gross income, and tax liability tabulated
by adjusted gross income classes. Table 2 shows sources of income
or loss and tax data for all individual returns and selected items
for returns with itemized deductions, by taxable and nontaxable
returns and by adjusted gross income classes. Table 3 shows frequency distributions of individual returns for each source of income
or loss and for each deduction, in a similar manner. Table 4 presents
the number of individual returns, adjusted gross income, amount of
exemption, and tax liability by adjusted gross income classes and by
marital status of the taxpayer. Table 5, for taxable fiduciary returns, shows sources of income, deductions, and tax liability, by
total income classes.
INDIVIDUAL RETURNS
There are 51,814,124 individual returns for the income year 1949.
This is one-half of 1 percent less than the number filed for 1948.
The current year returns consist of 16,650,600 optional returns Form
10404; 21,692,580 short-form returns, Form 1040j and 13,470,944 longform returns, Form 1040. Of the total returns, there are 42,122,784
returns, or 81 percent, on which the standard deduction is used.
The tax liability is determined from the optional tax table on
38,343,180 returns, or 74 percent of all returns filedj however, the
income and exemptions are such on 14,393,550 of these returns that
the tax table' designates them to be nontaxable.
The number of taxable returns is 35,628,295 on which the tax
liability is $14,538,141,000. The tax liability shows a decrease of
$903,388,000, or 5.9 percent, as compared with that of the previous
year.

z
Comparative data, individual returns9 1949 and 1948
(Money figures in thousands of dollars) __
1948

1949

All returns gNumber
Adjusted gross income
Taxable returnsg
Number
Adjusted gross income
Tax liability
Nontaxable returnsg
Number of returns
With adjusted gross
incomes
Number
Adjusted gross income
With no adjusted gross
income g
Number
Adjusted gross deficit

Increase or
decrease (-)
Number or g"Percent
amount
c

51,814,124 52,072,006
161,575,205 164,175,861

='257,882
-2,800,656

~e50
=1*71

55,628,295 56.411.248
138,566,406 142,056,885
14,538,141 15,441,529

-782,955
-5,490,479
=905,588

=•2.15
-2o46
=5 085

16,185,829

15,660,758

525,071

<D o O O

15,675,615

15,534,449
22,116,976

559,166
689,825

5*12

526,509
657, 847

185,905
141,455

56*97
21«50

(fcfe Q O v Q Q S Vjv3

512s214
799,280

KA

C

((AX

Returns included
The individual income tax returns included in this release are for
the calendar year 1949, a fiscal year ending within the period July 1949
through June 1950, and a part year with the greater part of the accounting period in 1949» The returns are Forms 10404 and 1040, filed by citizens and resident aliens. Tentative returns are not included and amended
returns are used only If the original returns are excluded* Statistics
are taken from the returns as filed, prior to revisions that may be made
as a result of audit0
Form 1040A is the employee's optional return which may be filed by
persons whose total income is less that $5,000 consisting of wages re~
ported on Form W<=2 and not more than a total of $100 from other wages,
dividends, and interest* The tax liability on Form 10404 is determined
by the collector of internal revenue on the basis of the income reported,
in accordance with a tax table provided under Supplement T of the Internal
Revenue Code, which allows for the exemptions claimed and also allows for
deductions and tax credits approximating 10 percent of the income „ The
optional return eannot be used as a separate return for community income
of husband or wife. A joint return of husband and wife may be filed on
Form 10404 if their combined income meets the requirements for use of
this form* On a joint return, the tax liability, determined from the tax

- 5 table by the collector, is the lower of two taxess an aggregate of
the two taxes on the separate incomes of husband and wife or a tax
on the combined income, which tax is the liability under the splitincome method.
Form 1040, the regular income tax return, which may be either
a long-form return or a short-form return, is used by persons who,,
by reason of the size or source of their income, are not permitted
to use Form 10404, and by persons who, although eligible to use
Form 10404s find it to their advantage to use Form 1040• Persons
with adjusted gross income of less than $5,000, regardless of the
source, may elect to file the short-form return on which nonbusiness
deductions and tax credits are not reported, the tax being determined
on the basis of adjusted gross income c,. by the taxpayer from the tax
table provided under Supplement T. Persons with adjusted gross income of $5,000 or more, and persons with adjusted gross income of
less than $5,000 who wish to claim deductions in excess of the standard deduction allowed through use of the tax table, file the longform return and compute the tax liability bssed on net income after
allowable deductions and exemptions.
Data tabulated for individual returns for 1949 with adjusted
gross income under $50,000 are estimated en the basis of samples.
This is the first year for which data are estimated for the returns
with $25,000 under $50,000 adjusted gross income. Description of
the samples used and limitations of the data are given on pages 4
and 5 e
Statutory Provisions Applicable to |7etx;.rng for 1949
Returns for the income year 1949 are filed under the provisions
of the Internal Revenue Code as amended by the Revenue Act of 1948,
which provisions are in general the same as were In effect for the
previous yea.r0
^^i_J^___'_^caL^ individual returns
For the tables in this release9 individual returns are classified by adjusted gross income classes, by taxable and nontaxable
returns, and by marital status of the taxpayerj and returns with
itemized deductions are identified,
Adjusted gross income,, being common to all types of returns,
supplies the base for segregating the returns into adjusted gross
income classes0 Returns with adjusted gross deficit are designated
"No adjusted gross inco/ae'- and are tabulated as a separate class.
Classification of returns as taxable and nontaxable is based
on the existence or nonexistence of a tax liability after tax
credits for income tax paid at source on interest fran tax-free
covenant bonds and for income taxes paid to a foreign country or
possession of the United States. ouch credits are reported only
on returns with itemized deductions.

4 The classification of returns for marital status of taxpayer
is based on the marital status of the taxpayer at the close of the
income year, or on the date of the death of a spouse. The three
classifications ares Joint returns of husbands and wives, separate
returns of husbands and wives, and returns of single persons o
Separate returns of husbands and wives include separate community
property returns©
Returns with itemized deductions are long-form returns, Form
1040, on which nonbusiness deductions are itemized in detailf longform returns, Form 1040, with no deductions filed by spouses of
taxpayers who itemized deductions (such spouses are denied the
standard deduction)j and all returns with adjusted gross deficit
whether or not deductions are itemized,.
Description of the sample and limitations of data
Tables 1 through 4 in this release are derived from a stratified random sample of individual income tax returns designed to
comprise one-half of 1 percent of returns, Form 10404 and Form 1040,
with adjusted gross income under $7,000 and with total receipts
from business, if any, under $25,000j 10 percent of returns, Form
1040, with adjusted gross income under $7,000 and with total receipts from business of $25,000 or morej 10 percent of returns,
Form 1040, with adjusted gross income from $7,000 to $25,000j
25 percent of returns, Form 1040, with adjusted gross income from
$25,000 to $50,000j and 100 percent of returns, Form 1040, with
adjusted gross income of $50,000 or more. Precise 0.5 percent,
10 percent, and 25 percent representation of returns in the various income classes was not achieved. However, the overfall universes applicable to the separate sampling strata were determined,
primarily from administrative reports of returns filed, and the
data tabulated from the samples were extended to such universes.
In computing the possible variation of a given frequency due
to random sampling, a range of two standard errors was usedj chances
are 19 out of 20 that the frequency as estimated from the sample
tabulation differs from the actual frequency, if the entire universe were tabulated, by less than twice the standard error.
Variation beyond the two-error limit would occur only 1 time1 in
20 and would be sufficiently rare to justify a two-error range in
defining sampling variability. Accordingly, in cells associated
with taxable or nontaxable adjusted gross income classes under
$7,000, frequencies of the magnitude of 1 million or more are subject to variation of less than 4 percent% variation for lesser
frequencies increases to a maximum of 12 percent at 100,000, and a
maximum of 40 percent at 10,000. In cells associated with adjusted
gross income classes from $7,000 to $25,000, frequencies of the
magnitude of 100,000 or more are subject to less than 5 percent
variation^ variation for lesser frequencies increases to a maximum of 9 percent at 10,000, and a maximum of 28 percent at 19000„

« 5 =
In cells associated with adjusted gross ir.ccms classes from -$? 5,000
to $50,000 frequencies of the magnitude ?f 10^000 cr more are subject to less than 4 percent variations variation for lesser frequen=
cies increases, to a maximum of 14 percent at 1^000. The degrees of
variability noted above relate only to cell frequencies and do not
indicate the variability associated with money amounts of incomes
deductions<, or tax.
TAXABLE FIDUCIARY RETURNS
There are 99,577 taxable fiduciary returns fcr the income year
19490 This is 1,706 returns, or le7 percent,,, less than were filed
for the preceding yearc The net income taxable to the fiduciary is
$462,775,000 and the tax liability is $144,030,000, both of which
are considerably less than was reported on taxable fiduciary returns
last year..
Comparative data, taxable fiduciary returns,, 1949 and 1948
(Money figures in thousands of dollars)
i
i ~
s 1949
: 1948

?
Decrease
sNumber ors Per.;.erit "

Number of returns .„•».-..... 99,577 101,283 =1,706 -1 *68
Total ineome.ff,.,o.o«oo.oo
926,824
986,806
-59,982
-6.08
Net income taxable to
f iduciary oc.aoco-.ooo...

462,775

530,360

- 6 " , 585

-12.74

Tax liability........c-...

144,030

176,509

-5?,2?9

-18.31

The taxable fiduciary returns included in this release are for
the calendar year 1949, a fiscal year ending within the period July
1949 through June 1950, and a part year with the greater portion of
the accounting period in 1949. Fiduciary eturns are returns for the
income of trusts and returns for the inc me of estates that are under
aaiTiinistration. Tentative returns are not used and auended returns
are used only if the original- returns are excluded. Statistical data
are completely tabulated from each taxable fiduciary return, prior
to audit.
Statistics are tabulated only from taxable fiduciary returnsj
that is, returns showing net income remaining in the hands of the
fiduciary in excess of the allowable exemption. However, a return
is required to be filed for every estate with gross income of $600
or more, and for every trust with net income taxable to the fiduciary of $100 or more, or with gross income of £>60J or more regardless of the amount of net income, and for every astate or trust
of which any beneficiaiy is a nonresident alien„

- 6 The rates of tax, the provisions respecting gross income to
be reported, the deductions with certain exceptions, and the tax
credits provided for the income of individuals apply also to income of estates and trusts. Deductions for contributions without
limitation and for the amount distributable to beneficiaries are
allowable in computing the net income on which the fiduciary is
to be taxed.
An estate is allowed an exemption of $600 and a trust is allowed an exemption of $100 against net income taxable to the fiduciary for purposes of both normal tax and surtax.
Table 5 presents the Income or loss from each of the sources
comprising total income, the deductions, balance income, amount
distributable to beneficiaries, net income taxable to fiduciary,
exemption, and tax liability, reported on taxable fiduciary returns* These data are tabulated by total income classes.
Total income classes are based on the amount of total income
resulting from the combination of profit or. loss from rents and
royalties, from trade or business, from partnerships, from sales
or exchanges of property, together with income from dividends, interest, other estates and trusts, and miscellaneous Income. Total
income is an approximation of the adjusted gross income used in
tables for individual returns.

I_iTi<r_l returns tmr 1949, by adjaete* grass ta.au slassssi Slaple and cumulative distributions of noaber of rat.
adjast.« f m i I M C M , u d tax liability, with corresponding percentage dlstrlbotloas
Adjusted croea laaoae elaasaa and money figures ia thousand* of dollars)
matter or m o r a s
IsiiV
' '
c _ _ a s i * e dlstridlstriOu.ul.tive dlstrl- 1 cumulative o i e w n Simple distribution butlon from Ugfaast butlon frost leweat
Slaple distribution- butlon froa highest butlon trm lowest
lassa. class
inoome .lass
inoca. elaaa
Ptrotwt
Peront
Feroent
Pei-Mnt
Parent
PMPOVBt
Busbar
of
Bumbor
of
Bunker
of
amount
of
ef
Amount
ABMat
of
total
total
total
total
total
total

,___—

Adjusted gross Insams alaaa.a 1/

1

s
s
4
6
8
7
8
0
0
1
2
S
4
6
6
7
8
9
0
L
2
S
1
5
i
T
i
J
5
I
I
5
I
3

r
i
i

)
L
i;
I
i

r
t

Ssturns with adjusted gross
inocaw (taxable and
nontaxable)t
Uutor 0.6
0.6 w d e r 0*76
0*76 under 1
1 muter 1*26
1.26 under 1.6
1.6 under 1.76
1.76 under t
2 under 2*26
2.26 under £.6
2.6 under 2.76
2.76 under S
5 under 5.6
3.6 under 4
4 under 4.6
4.6 under 6 i/
6 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
16 under 20
20 under 26
26 under 30
30 under 40
40 under SO
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 160
150 under 200
200 under 260
250 under 300
300 under 400
400 under 600
600 under 760
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 6,000
5,000 or more
Total
Returns with no adjusted gross
income 5/ (nontaxable)
Grand total

3,926,316
1,371,118
2,418,602
2,769,312
2,771,030
2,784,338
3,007,822
3,038,948
3,068,958
3,127,366
2,902,374
6,161,314
4,061,840
2,846,680
2,088,547
2,366,936
1,218,244
637,062
373,238
252,314
185,416
134,444
107,744
84,126
69,642
220,420
116,446
65,543
71,287
34,431
18,881
11,216
7,395
4,982
3,657
8,028
2,723
1,189

608
541
234
280
99
58
23
20
12
3
4

7.66
2.67
4.71
6.38
6.40
5.43
6.86
5.92
5.96
6.10
5.66
10.04
7.90
5.66
4.07
4.69
2.37
1.24

.73
.49
.36
.26
.21
.16
.14
.43
.23
.13
.14
.07
,04
.02
.01
.01
.01
.02
.01
(6)

(«
(6)

(6)
(8)
(6)
(8)
(8)
(8)

(S

,
(6)
(«)

61,301,910
47,376,694
46,004,476
43,686,974
40,826,662
38,056,632
36,271,294
32,263,472
29,224,624
26,165,566
23,028,200
20,126,826
14,974,612
10,922,672
8,075,992
6,987,446
3,630,609
2,412,286
1,775,203
1,401,966
1,149,661
964,235
829,791
722,047
637,921
668,079
347,659
231,213
165,670
94,383
69,952
41,071
29,856
22,461
17,479
13,822
6,794
3,071
1,882
1,274

733
499
219
120
62
39
19
7
4

100.00
92.36
89.67
84.96
79.68
74.18
68.76
62.69
56.97
50.66
44.89
89.23
29.19
21.29
16.74
11.67
7.08
4.70
3.46
2.73
2.24
1.88
1.62
1.41
1.24
1.11

.68
.45
.32

ae
.12
,03
,06
.04
»03
.03
.01
.01
(8)
(8)
(6)

!.1

(6)
(6)
(8)
(6)
(8)
(6)

3,926,316
6,297,484
7,716,936
10,475,248
13,246,278
16,030,616
19,038,438
22,077,386
25,146,344
28,273,710
31,176,084
36,327,398
40,379,238
43,226.918
46,314,465
47,671,401
48,889,846
49,626,707
49,699,946
50,152,259
50,337,675
60,472,119
50,679,863
60,663,989
50,733,831
50,964,251
61,070,697
51,136,240
51,207,627
51,241,968
51,260,839
51,272,064
51,279,449
61,284,431
51,288,088
61,296,116
61,298,839
51,300,028
51,300,636
61,301,177
61,301,411
51,301,691
51,301,790
61,301,848
61,301,871
61,301,891
61,301,903
51,301,906
51,301,910

512,214

(7)

.

-

_

61,814,124

(7)

-

-

-

51,301,910

100.00

for footnotes, ae« pp. 18-191 for extent to whioh data ».» estimated, seep?. 4-5,

7.61
10.31
16.04
20.4!
25.8!
31.21
37.1]
43.0!
49.0!
65.11
60.71
70.81
78.7]
84.21
88.3!
92.92
96.3(
96.54
97.21
97.76
98.12
98.38
98.6!
98.76
98.89
99.32
99.51
99.66
99.82
99.86
99.9!
99.94
99.9(
99.91
99.91
99.99
99.99
99. 9£
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
99.99
1O0.0C

1,326,810
924,694
2,123,491
3,108,266
3,802,401
4,620,311
6,840,691
6,461,631
7,284,367
8,206,492
8,337,246
16,696,322
16,137,324
12,068,390
9,949,046
12,829,253
7,846,238
4,749,378
3,169,307
2,386,520
1,940,681
1,542,869
1,342,481
1,134,167
1,011,742
3,783,153
2,688,897
1,787,821
2,446,523
1,529,647
1,029,247
724,293
551,992
422,375
346,317
961,006
466,140
263,966
166,094
184,812
104,392
167,972
86,360
69,688
39,316
48,340
42,687
12,463
43,015

.82 161,378,206
.67 160,046,384
1.32
1.98
2.36
2.80
3.60
4.00
4.61
6.08
6.17
10.36
9.38
7.47
6.17
7.95
4.86
2.94
1.96
1.48
1.20

.96
.83
.70
.63
2.34
1.60
1.11
1.62

.96
.64
.45
.34
.26
.21
.80
.29
.16
.10
.11
.06
.10
.05
.04
.02
.03
.03
.01
.03

169,121,790
166,998,299
163,890,044
150,087,643
146,667,332
139,926,641
133,476,110
126,190,768
117,986,261
109,648,016
92,962,694
77,816,370
66,766,980
65,807,934
42,978,681
36,132,443
30,383,065
27,223,768
24,837,238
22,896,667
21,353,798
20,011,317
18,877,160
17,866,408
14,082,266
11,493,368
9,706,657
7,269,014
6,729,467
4,700,220
3,975,927
3,423,935
3,001,860
2,665,243
1,694,237
1,228,097
984,139
799,045
614,233
609,841
341,869
255,509
185,821
148,606
98,165
55,478
43,016

100.00
99.13
98.60
97.29
95.36
93.01
90.21
86.71
82.71
78.20
73.11
67.96
57.60
48.22
40.76
34.68
26.63
21.77
18.83
16.87
15.39
14.19
13.23
12.40
11.70
11.07
8.73
7.12
6.01
4.50
3.65
2.91
2.46
2.12
1.86
1.66
1.06

.76
.60
.50
.38
.32
.21
.16
.12
.09
.06
.03
.03

1,326,810
2,261,404
4,874,896
7,483,160
11,286,661
15,805,862
21,446,663
27,898,084
36,182,441
43,387,933
51,725,176
66,420,500
83,667,824
96,616,214
105,565,260
118,394,513
126,240,761
130,990,129
134,149,436
136,536,956
138,476,637
140,019,396
141,361,877
142,496,044
143,507,786
147,290,939
149,879,838
151,667,667
164,114,180
166,643,727
166,672,974
157,397,267
157,949,269
168,371,634
158,717,961
159,678,957
160,145,097
160,409,055
160,574,149
160,758,961
160,863,353
161,031,325
161,117,685
161,187,373
161,226,689
161,275,029
161,317,716
181,330,179
161,373f205

.62
1.40
2.71
4.64
6.99
9.79
13.29
17.29
21.80
26.88
32.06
42.40
61.78
69.26
66.42
73.37
78,23
81.17
83.13
84.61
85.81
86.77
87.60
88.30
88.93
91.27
92.88
93.99
95.50
96.46
97.09
97.64
97.86
98.14
98.36
98.96
99.24
99.40
99.50
99.62
99.68
99.79
99.84
99.88
99.91
99.94
99.97
99.97
100.00

fax liability 1/
c w u a v i v . distri- Cumulative distrlBlapl. distribution bution froi highest bution fresi lowest
iaoome .lass
rare rat
F*r**at
Fsreeat
SJMOBt
tmmnxt
of
Amount
ef
of
total
totel
total

.

_

2,458
36,964
80,662
110,540
163,245
231,228
294,669
866,481
419,876
456.824
963,481
966,921
865,718
756,466
1,126,993
765,667
602,994
167,982
286,690
243,386
204,861
186,196
165,046
152,419
626,709
491,166
578,482
693,440
429,095
321,978
245,790
199,181
159,446
136,971
407,379
216,042
130,760
84,068
97,470
67,671
96,429
62,036
40,342
23,689
30,136
22,737
6,941
22,614

(7)

.

_

_

- 14,638,141

8/799,280

9/160,575s9£5

(7)

-

-

-

- 14,538,141

181,373,206

100.00

„

_

.02
.26
.65
.76

.

.

.90
.58
.67
.40
.66
.36
.28
.16
.21
.16
.06
.16
100.00

-

_

100.00

-

-

1.12
1.69
2.03
2.44
2.89
3.14
6.66
6.64
6.87
5.20
7.76
5.27
3.46
2.46
1.97
1.67
1.41
1.28
1.14
1.05
4.30
3.36
2.60
4.08
2.95
2.21
1.69
1.37
1.10

.94
2.80
1.49

100.00
99.98
99.74
99.18
98.42
97.30
96.71
93.66
91.24
88.36
86.21
78.66
72.01
66.14
60.94
63.20
47.93
44.47
42.01
40.04
38.36
36.95
36.67
34.64
33.49
29.18
25.81
23.20
19.12
16.17
13.95
12.26
10.89
9.80
8.86
6.06
4.57
3.67
8.10
2.43
2.03
1.37
1.01

.

14,686,141
14,636,692
14,499,708
14,419,146
14,308,606
14,145,361
18,914,138
13,619,474
13,264,053
12,844,177
12,886,353
11,434,872
10,468,961
9,615,236
8,669,773
7,733,780
6,968,113
6,466,119
6,107,157
6,820,467
6,677,082
6,372,231
5,186,036
6,020,989
4,868,570
4,242,861
3,751,696
3,373,214
2,779,774
2,350,679
2,028,701
1,782,911
1,583,730
1,424,285
1,288,314
880,936
664,893
534,133
450,065
362,696
294,924
196,495
146,459
106,117
82,428
62,292
29,565
22,614

.73
.57
.36
.20
.16

2,463
38,437
118,999
229,539
392,784
624,012
» 916,671
1,274,092
1,693,968
2,149,792
3,103,278
4,069,194
4,922,907
6,678,372
6,804,366
7,670,032
8,073,026
8,430,988
8,717,678
8,961,063
9,166,914
9,362,110
9,517,166
9,669,676
10,296,284
10,786,449
11,164,951
11,768,371
12,187,466
12,509,444
12,756,234
12,964,416
13,113,860
13,249,831
13,667,210
13,873,262
14,004,012
14,088,080
14,186,560
14,243,221
14,339,860
14,591,686
14,432,028
14,456,717
14,486,853
14,508,690
14,615,531
14,538,141

m

„
.02
.26
.82
1.68
2.70
4.29
8.32
8.76
11.66
14.79
21.36
27.99
38.86
39.06
46.80
52.07
66.58
67.99
69.96
61.64
63.06
84.33
66.46
66.51
70.82
74.19
76.80
80.68
83.83
86.05
87.74
89.11
90.20
91.14
93.94
96.43
96.33
96.90
97.67
97.97
98.63
98.99
99.27
99.43
99.64
99.80
99.84
100.00

-

1
]
1
]
]
1
]
]
]
]
1
2
i
i
!
:
!
2
2
!
!
!

Table 2 . - Individual returns far 1949, by taxable and nontaxable retains sad by adjusted gross lnooa* classesi Bwaber of returns, income or 1 M S froa eaoh
of the seorees eoaprlalng adjusted gross laooas, adjusted gross inecas, exemption, tax liability, tax psynants, and tax overpaymant for all returns} also
salaeted items for returns with itssdsed dsduotians
PAST I. - All, HSIUUIS
(Adjusted gross laesme olssses and money figures la thousands of del
Rants and Salaries
iness and
Partnership 16/
and
Dividends U/ Interest 12/ and
royalties 14
profession 15/
wages 10/
pensions 'IS/ let profitIBet los7 let profit Wet less - let profit Bet less

Mi

Adjusted gross income .lasses 1/
returns

59
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
65
64
65
66

Taxable retnrast
0.6 under 0.75
0.7S under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
£.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4,6 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under IS
IS under 14
14 under 15
15 under 20
£0 under £5
25 under 50
SO under 40
40 under SO
SO under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under ISO
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 5,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
Total taxable returns
nontaxable returnst 32/
No adjusted gross income 5/
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.7S under £
2 under 2.25
£.25 under £.5
2.5 under 2.75
2.75 under 5
3 under 5.5
5,5 under 4
4 under 4.5
4.5 or more
Total nontaxable returns

221,408
919,728
1,254,290
1,808,217
2,522,144
2,850,699
4,175,752
4,658,897
5,456,018
6,526,555
12,762,587
12,484,468
10,215,095
8,208,190
10,856,656
6,17£,S43
3,462,285
£,083,111
1,422,122
l,ill,5S7
798,666
686,896
546,207
455,093
1,865,462
1,044,7£7
697,711
909,007
529,051
345,146
££9,087
170,489
1£2,742
98,579
248,756
98,689
47,777
26,508
£6,185
11,858
15,159
2,907
4,124
628
405
559
11
££
3JJ.628.29i 107.525.942
857,894
1,180,974
1,££S,174
1,517,881
l,668,68t
1,7££,066
£,228,35!
2,190,176
2,506,85*
2,444,101
4,376,11!
S,700,31<
£,7£8,93C
1,998,5«
£,SS6,9S<
1,216,244
637,06!
S7S,£5E
£52,514
165,418
134,444
107,74<
84,126
69,84!
££0,4£C
116,446
65,54!
71,281
34,431
18,881
11,21!
7,59!
4,96!
5,651
8,0£8
£,72!
1,189
608
541
254
£80
99
56
23
20
12
S

512,214
5,926,51«
1,015,224
1,257,526
1,534,156
1,255,546
1,120,650
1,285,764
810,596
878,768
820,526
458,266
775,202
551,52!
117,750
89.999
16.185.829

84,195
1,114,198
466,616
681,199
1,150,561
1,144,447
1,295,921
1,784,596
1,286,175
1,641,805
1,714,623
1,081,148
2,058,582
1,108,294
402,272
544.568
17.559.206

2,786
10,880
15,525
24,598
54,952
57,185
49,580
52,486
44,862
55,878
124,212
118,514
106,919
97,194
198,654
167,028
158,090
119,910
110,476
104,641
92,952
86,914
81,108
81,550
334,989
272,469
213,346
341,693
249,621
196,685
155,082
125,050
104,695
92,418
282,804
156,844
99,415
62,392
79,147
48,125
74,834
36,049
30,590
17,575
19,015
11,992
8,485
21.490
4.985.258

2,958
7,092
9,576
17,515
24,890
27,522
26,772
51,492
30,905
29,155
62,928
62,948
61,657
56,559
105,755
72,078
60,574
40,805
54,629
51,472
27,756
25,110
£1,£75
£0,015
81,981
59,424
41,571
60,547
58,850
£6,795
18,580
14,095
10,841
8,514
£5,586
11,679
6,157
5,547
5,984
2,182
2,789
2,517
1,472
1,264
550
104
25
2.220
1.303.015

28,021
16,587
13,611
28,465
28,547
24,084
17,277
19,084
14,725
11,299
12,641
5,895
12,019
7,196
5,070
18.869
260.989

16,£75
16,964
15,719
£7,741
28,865
28,255
21,471
18,020
12,550
8,459
8,502
5,545
6,521
3,000
2,269
7.255
224.815

144.587

Grand total
51.814.124 124.885.148
> 5 1 246 1 ££7
Taxable returns with adjusted gross in45,826,679 91,001,017
1,054,559
come under $5,000 and nontaxable returns
5,987,445] 35,882,125
4,211,671
Taxable returns with adjusted gross lnof 85.000 or more
For footnotes, see pp. 18-19 J 'or extent to which data are estimated, aeepp. 4-5

(SB)
2,992
£,997
11,755
21,517
15,413
18,084
15,250
14,971
14,296
21,830
23,051
18,745
15,590
19,820
17,708
7,100
5,562
4,266
5,505
5,585
2,751
2,081
£,555
7,£50
4,845
5,571
5,984
5,425
1,794
1,516
1,099
809
776
1,867
988
659
£57
515
150
££4
79
17
49

4,146
14,852
14,924
51,475
58,117
40,724
52,085
58,161
55,215
68,261
144,701
152,514
127,565
118,507
177,155
158,292
99,562
82,976
72,428
61,711
55,508
47,544
59,126
58,015
141,045
94,706
69,846
96,748
59,689
59,552
28,271
19,704
15,666
12,158
56,687
18,466
8,554
5,416
6,740
5,722
4,612
1,951
2,524
200
78
49

299.021

Z.572.46!

411
15,577
1,191
47,395
1,000
47,5*9
5,042
145,270
4,441
177,502
5,795
175,698
6,798
298,117
7,652
284,140
9,404
827,644
9,655
896,924
22,945
768,198
17,772
658,165
17,125
696,878
11,854
626,012
17,088
956,521
11,488
764,785
7,167
594,565
480,913
4,710
431,552
5,125
554,858
4,941
311,924
2,660
277,918
2,225
258,480
1,742
217,828
1,986
6,861
805,714
4,622
525,674
5,215
547,668
4,196
413,615
£,549
233,260
1,71£
155,485
1,455
78,265
740
57,265
748
58,928
519
28,956
1,595
62,852
1,066
24,904
646
11,059
520
5,496
£90
7,256
515
5,520
522
5,058
67
1,861
41
5,951
27
1,078
285
5S
4
19
507
59
1.781.
209.809 _ , 0 5 1 , 7 _ "

10,656
8,780
8,947
11,579
14,559
16,551
50,288
51,792
19,175
17,569
26,611
16,695
10,689
8,601
7,428
6,656
6,567
5,299
4,959
4,959
24,158
16,656
12,857
18,055
15,545
8,868
6,547
5,891
5,011
5,822
10,672
6,72S
4,308
2,512
2,517
1,451
2,710
1,045
1,564
124
479
54
125
50
427.501

4,090
21,701
25,588
48,777
57,789
62,895
88,408
88,470
106,427
105,578
256,575
282,892
261,876
270,465
407,101
585,696
502,455
£68,677
£44,004
£14,825
204,518
170,591
161,941
156,478
588,482
462,651
516,255
468,579
504,057
201,579
147,655
105,299
60,795
61,756
158,266
66,021
52,769
15,828
14,217
6,814
5,257
7,287
1,966
5,458
589
2

(SS)
450
559
2,110
1,482
5,785
2,558
5,651
5,268
6,145
10,420
9,152
7,281
8,767
15,685
6,165
5,988
4,721
5,714
5,087
5,089
2,775
2,888
1,901
9,458
7,747
5,429
7,214
4,197
5,409
2,599
2,065
1,621
1,040
5,508
1,412
1,566
1,192
854
570
1,441
550
514
59
85

7.£57.7£7

168.508

765,754
50,057
1£,07£
£2,190
21,555
17,544
14,550
11,517
8,152
8,750
7,529
5,080
6,954
4,146
(85)
17.995
971:371

17,658
£9,511
£1,505
51,802
54,602
55,588
55,511
75,555
52,556
64,860
61,7£1
£9,767
69,797
22,151
15,505
25.051
674.501

189,553
£1,654
5,786
6,924
4,615
4,467
6,47£
5,175
2,027
5,149
5,615
(55)
4,482
6,571
(55)
(55'
269.650

676,154

445.408
512^771 15.629.546 ..598.872
559,526 T^588l577 £££,000
1,151,256

7.912.228
2,548,824

851,675

104,082

5,565,402

1,459
5,216
7,470
16,598
25,975
22,471
20,522
16,045
10,841
8,875
4,712
2,465
2,019
987
(85)

__i

55,417
46,104
57,607
8,981
44,041
1,858
78,567
5,544
87,008
5,156
76,957
5,459
54,755
4,111
62,4871
5,558
57,547]
4,169
51,7911
4,208
55,517I
2,929
16,££1
1,917
£6,785
5,010
17,805
1,582
5,761
686
19.550
5.929
687.169 102.962

16,451
142,904
101,688
£21,182
547,620
556,997
345,688
411,554
292,960
507,531
£89,360
169,441
505,542
146,580
70,£71
74.462

(M)
2,250
2,697
5,551

"S^SsoH'S

1,471,259

90,775

7,699,078

£47,634

(S4)

Sales or exehangea
of capital aseste 17/
Bet sain
Bet loss
542
2,805
5,218
6,817
14,028
9,485
17,444
19,165
20,848
27,602
58,545
57,418
63,756
59,558
104,274
91,578
67,589
55,159
46,557
89,146
55,251
29,972
26,800
27,714
96,901
67,610
51,114
75,425
59,295
41,068
55,497
£9,656
£5,709
21,715
68,994
42,776
28,182
£4,518
£9,554
15,601
52,177
14,016
14,878
6,081
5,207
26,749
5,600
17.542
1.714.512:
69,061
21,097
6,159
14,641
15,152
15,526
14,247
16,175
10,928
10,664
9,881
4,111
14,407
7,267
1,613
12.478
£41.208

458,158

19,501
15,239
3,585
5,199
6,151
4,515
4,097
4,027
2,688
2,646
2,570
2,129
5,006
2,156
855
2.247
78.415
550.695
189,205

"SSOT
1Q$,684

494
1,786
1,157
5,556
5,812
5,572
5,669
6,995
8,464
8,558
16,956
15,969
16,542
15,524
£5,570
16,856
1£,S71
9,570
8,240
7,685
6,945
6,756
5,009
4,528
16,540
11,015
7,491
9,420
5,288
5,170
1,955
1,405
970
746
1,695
605
262
154
116
54
75
26
18
6
5
1
1
1
272.280

1,355,505

161,487

69

Table 2. - Individual returns for 1949, by taxable and nontaxable returns and by adjusted gross income classest Number of returns, income or loss from each
of the sources coog>rlsing adjusted gross income, adjusted gross income, exemption, tax liability, tax payments, and tax overpayment for all returns; also
selected items for returns with itasized deductions - Continued
FAST :. - ALL RETURNS - Continued
Adjusted gross income classes and money figures in thousands of dollars)
Sales or exchanges of
Income from Miscellaneous
Adjusted
Tax
Tax
property other than
Amount of
estates and income 20/
gross
capital assets 18/
exemption 21/ liability 5/ withheld
trusts 19/
income 2/
Net gain
Net loss

(

Adjusted gross income classes 1/

1
2
3
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
IS
20
21
22
23
24
25
26
27
28
29
30
31
52
33
34
35
56
37
58
39
40
41
42
45
44
45
46
47
48
49

Taxable returns>
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
5 under 3.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
13 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
SO under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
Total taxable returns

. _

(33)
(33)
1,236

922
1,617
2,373
2,278
2,744
1,197
5,355
4,115
4,251
7,688
8,157
5,981
3,798
3,231
2,088
1,549
2,294
1,176

978
895
4,454
2,044
1,919
1,722

935
403
370
331
269
117
481
302
47
7
21
420
24
129

(33)
(33)
(33)

952
803
714
2,164
1,003
1,406
2,175
5,743
3,829
4,162
4,628
6,288
3,811
2,290
1,733
1,401
1,417
1,188

931
776
573
3,467
1,853
1,782
2,072
1,595

856
673
746
398
247
1,142

250
308
159
80
35
1,016

90
13

6

"

"78.535

7
20
1
65,457

(33)
2,261
1,198
4,407
7,021
8,711
9,346
7,881
12,106
8,737
21,644
24,243
22,467
a , 982
40,201
49,009
35,754
29,613
28,690
26,533
23,108
22,649
22,382
20,980
93,211
75,011
63,469
97,686
69,040
56,892
43,750
36,270
30,903
25,956
90,059
54,246
35,217
24,965
21,200
13,901
53,293
21,421
12,357
9,017
23,637
3,464

3,586
11,553
8,491
15,648
23,554
23,175
29,255
31,516
30,790
31,115
67,386
56,061.
46,215
43,315
64,041
43,591
26,458
18,683
18,014
14,548
11,747
10,447
9,171
6,968
28,132
21,610
12,349
16,476
9,340
6,270
3,649
3,581
1,766
1,766
5,483
1,303
1,013

677
252
504
127
29
49
4
4

214,736
708,584
735,104
1,197,126
" 1,405,576
1,449,934
2,409,602
2,444,782
2,816,095
3,444,928
6,761,749
6,347,862
5,001,986
3,744,085
4,434,750
2,302,505
1,219,490
719,843
488,147
362,580
264,000
212,488
165,896
158,193
457,945
234,946
132,986
144,541
68;261
37,328
21,980
14,446
9,589
7,048
15,111
5,015
2,189
1,050

1
77
757,752

188,666,466

978
408
488
158
92
37
29
17
4
7
56.184,655

9,965
18,664
14,000
21,928
30,249
28,452
24,926
52,589
19,820
19,084
19,815
10,376
14,053
9,865
2,557
6.657

8/799,280
1,326,810
670,266
1,087,848
1,732,332
1,704,075
1,821,050
2,414,363
1,722,493
2,087,322
2,141,867
1,316,014
2,493,290
1,311,459
497,051
480.548

759,422
5,388,315
1,193,262
1,986,386
2,569,087
2,371,452
2,430,353
2,851,564
2,128,438
2,368,258
2,279,971
1,435,319
2,556,000
1,280,028
464,562
567,234

-

l.sse.isi

254,328
1,035,643
1,375,923
2,098,326
2,699,261
3,226,328
4,729,038
5,197,035
6,063,625
7,021,231
14,202,032
13,825,865
11,561,339
9,468,498
12,829,255
7,846,238
4,749,378
3,159,307
2,386,520
1,940,581
1,542,859
1,342,481
1,134,167
1,011,742
3,783,155
2,588,897
1,787,821
2,446,523
1,529,547
1,029,247
724,295
551,992
422,375
346,317
961,006
466,140
263,958
165,094
184,812
104,392
167,972
86,360
69,688
59,316
48,340
42,687
12,463
45.015

2,453
55,984
80,562
110,540
163,245
251,228
294,659
355,421
419,876
455,824
953,481
965,921
853,713
755,465
1,125,995
765,667
502,994
357,962
286,690
243,385
204,851
186,196
165,046
152,419
625,709
491,165
378,482
593,440
429,095
321,978
245,790
199,181
159,445
155,971
407,379
216,042
130,760
84,068
97,470
57,671
96,429
52,036
40,342
23,689
30,136
22,737
6,941
22.614

15,126
62,763
90,691
127,742
172,507
251,702
309,580
362,258
425,571
467,340
950,825
942,026
805,824
687,626
984,998
607,417
557,071
221,879
156,875
123,579
90,852
79,430
64,500
53,701
205,388
135,337
93,478
126,089
75,046
48,911
33,246
24,575
18,175
14,374
35,520
13,970
6,812
5,742
5,649
1,675
2,157

313
296
101
36
44
1
1

Overpayment
Payments on Tax due
(refund, or
1949 decla- at time
credit on
ration 22/ of filing 1950 tax)

477

455

2,824
4,800
8,455
13,051
15,891
19,807
22,577
27,770
26,563
64,441
66,913
68,222
72,194
126,426
122,097
103,273
94,956
91,703
85,297
83,207
76,997
73,515
72,818
319,481
277,082
225,964
370,475
285,994
220,793
173,220
142,188
118,517
100,683
314,884
173,710
108,726
69,614
81,145
49,683
83,898
46,934
37,565
21,870
26,668
19,450
5,255
20.194

5,555
11,655
14,521
19,855.
23,794
28,086
31,544
35,374
36,646
82,666
85,094
82,852
78,031
118,470
99,450
78,599
64,946
57,588
50,360
45,304
42,489
58,114
36,718
143,457
111,099
82,651
127,997
89,156
65,555
48,007
39,105
28,429
25,129
69,257
54,380
19,098
13,157
14,590
7,559
12,759
5,371
3,274
1,882
4,064
3,650
1,685
2.419

13,606
54,957
26,567
39,979
42,170
40,159
62,813
60,959
68,839
74,725
144,450
128,110
104,186
82,584
103,903
63,297
35,748
£5,819
19,477
15,850
14,493
12,720
11,082
10,816
42,619
52,355
23,612
31,120
21,101
15,062
8,683
6,684
5,673
4,214
12,283
6,018
3,876
2,445
1,715
1,046
2,385

583
795
165
632
407

-

IA.SSB , ;I_ 9.235.791 ' 4,888IJSS S.126.642 r 1.456.561"

Nontaxable returnsi 32/
No adjusted gross Income 5/
50
Under 0.6
51
0.6 under 0.75
52
55
0.75 under 1
1 under 1.25
54
55
1.25 under 1.5
1.5 under 1.75
56
57
1.75 under 2
2 under 2.25
58
2.25 under 2.5
59
2.5 under 2.75
60
2.75 under 5
61
62
5 under 5.5
65
5.5 under 4
4 under 4.5
64
4.5 or mote
66
Total nontaxable returns
66
Qrand totel
67
68 Taxable returns with adjusted gross in-

69

come under $5,000 and nontaxable returns
Taxable returns with adjusted gross income of f5.000 or mora

5,602
1,520

844
1,421
2,554
1,102
2,517
1,584
1,334

968
2,677
(35)
2,644
1,907
(33)

8,066
5,019
4,485
4,479
6,558
4,029
3,838
3,870
2,725
2,533

960

-

6,811
72,230
21,874
20,315
52,770
27,941
26,974
58,512
21,028
£8,628
£9,259
16,156
52,299
18,890
7,497
9.950

5,338
1,929
1,005
(33)
SS
(33}
57.175 _ _ B _ _ 4 _ _ w ^ _ 3 _ _ _ £ _ _ _ _ 2 X ^ B ^ ^
27.H59
108.845
II I I — n i l !
!•WCSSHMttl
156,582
209,500
704,658 9/104,765,980
6Z,346
69,091,795
5,678,572 6,063,493

i l

—

72,716
8,368
2,365
2,321
3,730
1,826
2,210
2,722
2,250
1,793
1,497
1,849
1,351
(35)
(33)
2.492

—

44,148

57,218

'

1,255,864

For footnotes, see pp. 18-19 j for extent to which date are estimated, seecp. 4-S.

«. i'iyiiiir \>nui\ —
556,150

55,807,954

25,367
7,466
5,086
5,771
5,562
5,122
5,013
5,066
3,626
3,672
4,097
2,120
4,654
3,489
1,603
4.847

-

52,178
79,695
24,959
26,087
58,555
33,064
51,988
45,877
24,654
52,299
55,554
18,258
36,954
22,378
9,100
14,795

'• M n i i ; i 9 f t n ^ < - . m i » t n _ i i _504,546
_ _ _ _ _ ^ _555,688
J u t i _ _ _ 1,425,557
_U___*I

11,442,545

8,859,773 3,583,216

4,224,284 1,584,946

552,674

Table 2, - Individual returns for 1949, by taxable and nontaxable returns and by adjusted gross income olassest Dumber of returns, income or loss from eaob
of the sources comprising adjusted gross iaeoas, adjusted gross inooae, exemption, tax liability, tax payments, and tax overpayment for all returns} also
selected items for returns with itemised deductions - Continued
PART II. - RETURNS WITH ITEMIZED DEDUCTIONS 28/
(Adjusted gross inooae olasass and money figures In thousands of dollars)
Dedootlon for
'
'
Vedloal,
Losses
Total
Net
JlisoslNet
froa
dental,
Number
Adjusted
Interest
Contribudeduclnooas 80/ deficit
e t c , ex- laneous
fire,
Adjusted gross inooae olasses 1/
gross
of
tions 24/ 25/
tions
storm,
penses
deducreturns
inoaa. 2/
tions 29/
etc. 27/ 28/
Taxable returnsi
"~
610
8,681
48
69
227
(88)
0.6 under 0.75
4,091
180
5,824
(58)
18,887
1,696
57,625
717
2,599
218
4,176
0.75 under 1
71,462
80,184
4,551
4,771
50,856
99,994
10,584
1,771
4,856
634
! 1 under 1.25
8,290
116,180
180,851
47,621
162,110
8,124
15,167
7,529
1,321
1.25 under 1.5
12,642
2,859
209,751
161,850
75,567
278,018
24,620
10,281
1.5 under 1.75
20,422
18,207
1,405
855,386
5,438
217,220
15,701
110,185
898,518
82,779
1.75 under 2
508,697
80,282
8,392
19,685
8,545
271,100
155,475
505,868
19,005
28,978
3,289
41,160
2 under 2.25
640,848
86,010
12,086
300,606
694,847
175,574
24,888
48,095
2.25 under 2.5
84,024
5,508
566,368
17,850
870,221
47,011
88,887
215,690
840,586
56,590
26,808
39,699
5,588
2.5 under 2.75
402,750
55,869
1,056,275
87,253
253,502 1,046,714
65,975
452,554
1,502,217
68,179
49,429
5,570
2.75 under 3
82,295
99,636
189,552
629,186 2,609,891
16,489
5,258,577
149,878
97,556
126,295
5 under 3.5
996,528
137,987
119,758
884,111 2,888,188
111,968
141,886
18,594
3.5 under 4
954,622
5,572,244
154,124
127,022
129,698
16,569
118,552
659,985 2,667,856
111,024
4 under 4.5
780,324
8,807,848
142,141
120,859
88,461
549,690 2,269,277
109,408
14,589
2,818,967
94,790
4.5 under 5
595,150
122,151
179,569
810,546 5,452,687
150,229
174,567
141,862
163,915
20,906
784,508
5 under 6
4,262,985
75,257
128,215
502,875 2,098,076
403,382
105,159
81,465
103,199
11,580
6 under 7
2,600,951
75,577
1,224,000
58,705
292,485
45,127
65,173
7,825
1,516,482
62,776
7 under 8
205,314
828,159
23,989
58,446
197,578
1,025,557
42,529
29,485
3,750
121,126
44,205
8 under 9
608,982
17,464
58,625
81,586
20,258
53,384
2,958
144,075
79,630
755,058
. _9 under 10
84,845
548,101
17,821
50,262
14,558
127,605
670,706
27,899
2,239
64,052
10 under 11
25,671
100,927
10,659
466,692
49,452
22,906
14,490
25,464
1,736
567,620
11 under 12
25,292
455,076
548,217
21,651
24,518
1,846
9,431
95,142
43,980
12,600
12 under 13
19,957
7,967
20,115
57,686
508,348
10,886
22,274
82,619
425,731
1,421
15 under 14
7,291
8,816
17,744
75,006
598,650
32,672
18,499
21,147
1,511
473,655
14 under 15
78,049
39,692
91,608
511,708 1,802,586
122,442
2,114,295
. 5,012
22,184
75,162
15 under 20
58,872
222,896 1,485,707
76,686
26,325
72,242
3,261
12,094
50,102
1,708,603
20 under 25
42,594
19,052
53,971
2,207
35,550
160,359 1,147,451
47,896
1,507,790
7,165
25 under 30
56,598
63,136
26,268
3,812
227,989 1,717,725
1,945,713
77,826
7,465
49,485
30 under 40
16,118
29,268
1,501,101
42,002
50,845
5,696
33,212
148,262 1,152,838
2,390
40 under 50
50,257
16,808
916,654
11,701
56,430
2,178
21,095
i01,764
1,104
'814,890
50 under 60
658,467
22,272
10,194
7,961
24,948
15,655
1,336
1,052
73,225
585,245
60 under 70
6,807
508,211
12,007
18,221
6,176
19,738
822
759
57,704
450,508
70 under 80
721
45,867
4,702
398,686
14,662
5,185
15,259
445
9,594
552,819
80 under 90
328,527
4,381
447
3,469
12,516
12,994
348
7,846
269,994
38,532
90 under ICO
922,672
7,701
58,992
11,285
56,292
1,277
604
25,910
114,356
808,316
100 under 150
454,887
5,387
2,658
22,249
18,714
15,577
636
180
62,543
392,544
150 under 200
1,170
259,811
14,182
10,327
223,272
2,828
498
66
36,539
200 under 250
8,640
594
161,157
9,336
2,366
6,194
259
29
5,686
23,850
137,308
250 under 300
537
2,379
7,007
185,584
11,416
381
59
6,582
27,805
300 under 400
155,580
232
105,478
7,605
983
3,951
4
400 under 500
165
5,426
16,135
87,345
166,557
1,526
278
10,974
6,410
327
7
500 under 750
4,746
23,989
142,547
6,142
819
3,048
99
282
750 under 1,000
86,560
1,955
12,195
74,165
58
5,747
69,688
890
2,890
1,000 under 1,500
132
2,019
11,184
58,504
23
59,516
3,514
262
1,458
94
1,500 under 2,000
886
6,214
53,103
3,184
20
48,340
335
1,676
2,000 under 5,000
78
1,786
7,058
41,281
42,687
12
2,654
25
535
11
3,000 under 4,000
259
3,482
59,205
12,463
1,519
4,000 under 5,000
1
384
43
264
2,011
10,452
5,197
43,015
40
1,684
12
5,000 or more
8,187
1,254
54,828
7,899,061 44,794 868 1,896 961 1,096,887 1,789;184 171,071 1 7 1 7 0 3 7 ,609;586 7,788;676 87,061 185
Total taxable returns
Nontaxable returnsi 52/
512,214
8/799,280
2,244
No adjusted gross income 5/
5,244
8,186
1,550
5,111
3,734
25,871
825,149
—
42,658
17,196
5,347
2,235
3,175
(53)
Under 0.6
6,946
2,708
18,710
7,889
9,403
52,788
36,505
2,513
0.6 under 0.75
1,445
3,444
5,927
1,252
1,925
16,486
2,967
22,986
87,764
5,588
2,777
101,090
7,577
0.75 under 1
1,945
14,918
4,912
57,518
2,579
52,625
74,594
83,961
2,571
5,238
1 under 1.25
7,613
637
14,187
5,678
35,925
50,362
2,346
156,500
189,440
9,714
6,661
1.25 under 1.5
12,856
1,759
26,173
7,996
65,160
126,492
2,212
109,262
8,791
6,221
176,155
1.5 under 1.75
11,104
1,595
26,901
9,865
64,475
112,694
1,014
80,748
151,218
7,125
5,156
1.75 under 2
9,415
3,651
21,852
9,189
96,207
56,285
1,274
122,282
9,122
258,956
12,019
2 under 2.25
15,481
12,959
2,944
28,160
60,666
179,457
1,168
88,144
208,625
9,428
10,416
2,861
2.25 under 2.5
9,995
24,649
12,405
69,749
139,226
(35)
224,114
85,012
10,203
8,819
11,256
2,847
2.5 under 2.75
11,457
22,852
67,427
(33)
157,004
284,646
11,928
12,308
99,360
13,245
3,608
23,412
15,789
2.75 under 3
80,285
205,513
(35)
402,902
18,596
3 under 3.5
124,552
18,688
19,316
8,820
40,098
132,871
(35)
27,352
272,145
303,209
24,777
3.5 under 4
81,844
12,691
14,449
4,998
14,493
28,959
100,366
204,292
(33)
6,384
176,420
7,785
8,111
6,082
11,138
19,950
4 under 4.5
41,940
59,448
, 117,597
(53)
10,349
17,534
16,559
39,291
228,776
15,340
20,624
56,500
4.5 or more
134,688
106,358 12,271
1,792,279 9/g,080;6l8
184,888 182 411 171 753 "577875 817;728 881,854 1,045,955 l,85i;669 S66;S9l
Total nontaxable returns
•9,691,546 9/46,825,427 2,651,794 1,229,248 1,966,917 228,946 1,487,816 1,846,896 8,779,669 58,912,194 866,891
Grand total
7,488,499 9/20,116,612 "5797571 655,464 874,152 148,455 1,095,981 853,700 4,667,819' 18,875,086 866,591
Taxable returns with adjusted gross income under $5,000 and nontaxable returns
2,207,841
26,709,399 1,052,223
573,787 1,086,770
80,487
591,850
987,198 4,172,288 22,537,115
Taxable returns with adjusted gross
t Income of tS.000
i.tlut.d.
ae pp. XB — 1.9 l tar Ktvnfe MO which data
For
IOOXXIOM...

Is/

Amount
of
exsinptiona

Tax lia- Tax
billty 8/ withhold

Payments
on 1949
toolsration 22/

__
8,494
48,110
69,708
107,112
190,800
245,046
808,088
481,118
507,621
688,888
1,604,502
1,688,650
1,462,501
1,170,842
1,571,258
815,526
409,514
245,354
160,729
129,774
100,561
89,233
76,662
65,972
248,054
156,474
98,296
115,784
58,215
38,382
20,020
15,851
9,061
6,668
14,517
4,897
2,154
1,050
978
405
484
158
92
37
29
17
4
7

68
1,586
4,982
9,804
14,489
25,182
82,744
48,486
55,096
67,464
166,057
199,854
201,317
182,911
814,408
216,008
189,112
101,439
79,969
74,995
67,869
68,878
67,825
65,952
528,607
509,565
266,819
458,881
557,252
282,224
220,446
181,074
149,284
127,971
888,727
209,999
128,378
81,768
96,711
57,095
95,516
52,056
40,342
25,689
30,136
22,737
6,941
22,614

168
2,600
7,540
11,622
16,508
80,635
89,488
58,076
67,002
80,452
198,769
228,687
220,176
194,709
318,582
200,929
115,435
74,300
53,565
46,654
57,542
37,574
83,136
29,212
152,277
100,987
74,887
108,232
67,717
45,752
31,620
28,572
17,724
14,083
54,888
13,800
6,800
3,699
3,639
1,668
2,149
313
296
101
36
44
1

12,516.961 6,189 711 2,779,869
759,422
50,784
46,022
95,478
92,572
178,122
154,625
180,794
220,000
166,076
185,305
250,862
310,351
227,004
128,658
122,206
3,098,081
16,016,981

6,811
651
967
2,533
2,015
4,697
3,622
8,586
6,750
6,313
5,699
6,888
10,984
8,891
4,515
7,425

Tax
due at
time
of
filing

(53) :
641
1,044
1,656
2,784
4,061
4,755
5,741
8,587
7,601
16,457
19,668
19,615
20,978
36,001
58,267
29,728
28,253
26,213
26,107
28,199
28,068
50,236
82,082
170,879
178,494
163,609
294,049
243,455
196,206
156,958
131,555
111,752
95,529
801,972
169,548
107,060
68,292
80,440
49,150
85,171
46,934
37,565
21,870
26,668
19,450
5,255
20,194
3,191,609 555TT78T
25,367
1,102
664
1,267
818
1,324
1,466
1,145
1,957
1,712
1,572
1,285
2,796
5,065
1,467
4,645

Overpayment (refunds, or
credit on
I960 tax)
200
2,862
4,477
6,055
9,891
18,009
15,538
20,414
25,782
27,000
62,475
62,540
55,810
47,228
61,378
87,578
21,294
15,954
10,648
8,895
8,041
7,807
6,985
6,918
50,464
25,161
19,561
27,626
19,592
12,204
8,185
6,526
5,446
4,116
11,892
5,884
5,788
2,445
1,715
1,046
2,585
585
795
165
652
407

788,988

1
2
8
4
5
6
7
6
9
10
11
12
18
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
32
35
54
55
86
57
38
89
40
41
42
48
44
45
46
47
48
49

52,173
1,754
1,630
5,800
2,835
6,025
5,289
4,680
8,707
6,025
7,270
8,174
18,780
11,456
5,982
12,064
133,648

50
51
52
53
54
55
56
57
58
59
60
61
62
65
64
65
66

857,656

67

-5I75395i;652
6,189,711 8,861,568 5,245,261 892,781
U. 568,356 1,004,464 1,255,512
165,269 67,784

488,968 68

4,448,625 5,135,250 1,625,994

375,729

3,077,989 804,995

Table 3. - Individual retwnsj far 194B, by taxable and nontaxable returns and by adjusted gross income classesi Frequency distributions of all returns for each
•paoifio soure. of laesa. or 1 M S eo^tris—g adjusted gross inoome, far each type of tax payment, and for tax overpayment also distributions of returns w u a
ltemlssd deductions for selected items
PART I. - ALL RETURNS
Total
Adjusted gross income classes 1/
(Thousands of dollars)

Salaries
and
wages

of
returns

Taxabls returner
0.6 under 0.75
0.75 under 1
1 under 1.26
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2,25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 3.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 5,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
Total taxable returns

35,628,295

Nontaxable returns) 52/
No adjusted gross income 5/
Under 0.6
0.6 under 0.75 •
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.S
2.5 under 2.75
2.75 under 3
3 under 5.5
3,5 under 4
4 under 4.5
4.5 or more
Total nontaxable returns

57/9,220
27,320
33,820
55,970
78,780
65,420
86,780
95,180
94,064
102,268
254,908
250,944
209,276
179,832
317,826
242,552
165,654
121,112
93,424
75,692
60,288
49,280
41,710
36,154
122,740
72,280
43,648
50,955
26,512
15,089
9,260
6,227
4,269
3,199
7,176
2,488
1,101

15,060
47,140
49,960
81,690
106,280
108,240
125,872
141,688
148,470
158,458
349,510
551,796
288,164
248,548
410,070
274,288
171,628
117,244
85,508
68,942
52,650
45,426
55,260
51,608
106,494
- 60,642
56,905
43,580
22,454
12,972
8,018
5,419
3,729
2,614
6,462
2,520
1,032

577
510
225
263
93
50
23
20.
10
3
4

531
481
210
251
89
53
23
19
9
2
4

51,886,70C

3,064,194

3,800,575

512,214
3,926,316
1,015,224
1,257,528
1,534,158
1,253,548
1,120,650
1,285,764
810,596
878,782
820,528
458,268
775,202
351,522
117,750
89,999
16,185,829

66,858
3,299,290
725,624
810,304
1,065,684
885, 32C
841,674
1,004,59C
656,384
723, 34C
689,66(
390,654
666,54C
307,824
98,22C
71,355
12,281,151

29,202
72,004
47,672
80,190
72,104
62,874
42,300
47,270
29,840
24,590
22,478
57/11,180
23,022
37/13,420
"57/4,850
57/9,412
592,388

- 55,566
120,734
80,518
123,234
121,724
98,824
75,170
66,152
43,600
57,118
55,510
18,380
29,008
15,160
57/6,290
57/7,004
913,992

857,894
1,180,974
1,225,174
1,517,682
1,665,688
1,722,058
2,228,552
2,190,176
2,306,858
2,444,106
4,376,112
3,700,318
2,728,950
1,998,548
2,556,956
1,218,244
657,062
373,238
252,314
185,416
134,444
107,744
84,126
69,842
220,420
116,446
65,543
71,287
34,451
18,881
11,215
7,395
4,982
3,657
8,028
2,723
1,189

608
541
234
280
99
58
23
20
12
5
4

316,870
1,064,010
1,155,620
1,340,024
1,461,620
1,562,890
2,014,628
2,001,278
2,120,470
2,255,696
4,055,910
3,436,402
2,496,724
1,807,554
2,096,576
1,037,404
515,414
284,042
179,520
129,256
88,612
70,496
53,560
42,774
156,466
70,250
40,236
44,065
21,404
12,114
7,254
4,925
3,292
2,506
5,664
1,971

829
444
404
171
207
62
44
16
12
11
2
9

!

(88)
57/6,610
57/8,210
"~15,020
22,620
15,610
21,090
17,670
18,050
17,270
32,370
£9,550
26,694
17,940
£7,280
16,160
8,894
6,220
4,248
3,072
2,754
2,100
2,040
1,874
5,768
5,400
2,094
2,606
1,564

810
610
420
502
226
577
243
117
64
65
51
27
9
5
3
2
4

538,569
37/2,842
23,820
16,000
32,020
35,060
28,520
18,850
18,640
57/10,650
"77/8,430
57/5,410
57/2,040
57/2,624
57/1,400
(38)
(38)
207,179

Bet profit
87/10,260
52,000
51,540
60,278
68,274
71,560
92,906
103,424
101,970
129,150
265,020
257,298
215,954
175,704
227,274
144,424
86,056
58,062
43,780
33,902
26,962
21,824
17,844
15,410
50,760
28,306
17,946
20,255
10,525
5,845
3,594
2,303
1,594
1,204
2,778

999
443
214
212
85
110
54
29
7
7
8

1

Bet loss
87/1,810
W/5,430
57/6,290
87710,570
16,490
16,380
29,880
35,450
40,280
42,280
89,924
79,194
68,842
50,074
67,512
85,760
19,304
12,010
9,170
6,670
4,750
5,962
3,514
2,854
9,120
5,538
3,094
3,586
1,852
1,061

646
452
347
241
555
248
117
68
61
51
55
22
7
7
6
2
1
5

Business and profession
Net loss
Net profit
25,224
65,690
50,104
120,788
151,718
116,678
174,490
157,710
159,506
186,226
525,002
247,196
229,018
165,592
258,758
159,978
105,680
75,806
58,814
45,898
34,954
28,434
22,844
19,320
61,344
50,612
17,090
16,750
7,581
3,620
1,908
1,226

<»)

S7/S,S00

55/8,270
57711,800

57/18,870
37/11,760

17,844
16,784
21,074
24,812
89,854
89,880
27,834
24,094
24,884
15,800
7,202
4,798
8,584
3,114
2,410
2,302
2,006
1,524
5,254
3,078
2,554
2,940
1,613
1,014

1
1

710
595
586
530
810
550
184
96
95
48
60
28
20
4
5
5
1
2

774
512
1,024

303
115
62
66
27
23
9
6
3
2

-

2,436,065

682,500

5,100,279

547,580

•41,570
168,720
95,584
143,580
146,604
116,418
84,190
92,274
59,814
49,190
54,830
25,084
46,224
25,828
57/10,180
57/10,458
1,170^298

27,428
23,450
57/6,660
57711,540
16,370
14,448
57/13,270
57/11,914
T7/9,080
87710,920
57/12,074
"57/7,540
—
14,914
37/7,260
57/1,940
57/2,52E
191>186

37/13,088
"sag,892
168,052
280,694
348,544
286,294
241,030
258,460
161,672
153,542
157,526
70,470
120,464
50,262
19,040
18,518
2,717,548

508,918
68,064
14,832
25,044
24,130
20,024
15,700
17,490
37/11,000

Partnership
Net loss
Bat profit
57/6,840
~'89,894
25,750
42,600
44,280
42,050
51,820
51,888
58,686
55,742
117,214
112,848
97,522
85,500
118,640
92,016
62,972
47,844
58,474
51,292
26,200
20,476
17,966
15,926
51,898
31,384
18,390
22,094
11,609
6,595
3,898
2,623
1,750
1,211
2,559

822
526
184
145
48
53
26
9
7
1
3

1,447,335

(58)
57/1,410
57/1,610
87/2,450

57/5,990
57/6,290
J7/S,360
57/8,960
57/7,630
17/8,774
~"16,198
57/15,870
57/12,184
"T7/9,714
15,780
57/9,900
6,824
4,140
5,450
2,608
2,440
1,800
1,504
1,224
4,754
2,874
1,798
2,044

986
625
455
284
253
153
570
158
98
61
54
25
45
12
5
3
1

"
1
2
162,419
56,175
57/15,580
"57/6,424

37/3,840
—(38)
57/2,175
548,867

57/9,624
71,490
37,634
43,290
58,090
50,150
42,060
49,550
31,604
57,080
30,280
15,090
27,150
37/10,170
"57/4,660
57/5,844
523,666

57/11,970
57/11,284
-57/4,208
57/9,268

57/5,840
57/5,800
57/5,150
57/4,290
57/2,860
57/2,710
57/2,580
57/4,220

(58)
37/2,610

57/1,750
(38)
(38)
115,873

51,614^124

44,167,831

3,656,582

4,714,567

545,768

3,606,365

873,63f

5,817,827

896,247

1,971,001

278,292

adjusted gross
and nontaxable

45,826,679

39,318,027

2,088,590

3,109,650

452,683

2,783,656

681,03d

4,888,542

808,685

1,343,280

214,803

adjusted gross
tore

5,987,445

4,849,804

1,567,992

1,604,917

93,085

822,727

192,6CX

929,485

87,564

527,721

63,489

Grand total
Taxable returns with
income under $5,000
returns
Taxable returns with
income of $5,000 or

Annuities
Dividends 55/ Interest 55/ and
pensions

For footnotes, see pp. 1 6 - 1 9 ; for extent to which data are estimated, see pp. 4-5.

Table 5. - Individual returns for 1949, by taxable and nontaxable returns and by adjusted gross income classes: Frequency distributions of all returns for each
specific source of income or loss comprising adjusted gross income, for each type of tax payment, and for tax overpayment; also distributions of returns with
itemized deductions for selected items - Continued
PART I. - ALL RETURNS - Continued
Number of returns with
A d j u s t e d gross income classes
(Thousands of d o l l a r s )

1/
~

Sales or exchanges
of capital assets

Net gain
1
2
3
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
57
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Taxable returnsi
0.6 u n d e r 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 u n d e r 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
5 under 3.5
3.5 u n d e r 4
4 under 4.5
4.5 u n d e r 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 1 0
10 under 11
1 1 under 1 2
1 2 under 1 3
13 under 1 4
14 under 15
15 under 20
2 0 under 2 5
25 under 30
30 under 4 0
4 0 under 50
50 u n d e r 6 0
6 0 under 7 0
7 0 under 8 0
8 0 under 9 0
9 0 under 1 0 0
1 0 0 under 1 5 0
1 5 0 under 2 0 0
2 0 0 under 2 5 0
2 5 0 under 300
300 under 4 0 0
4 0 0 under 5 0 0
5 0 0 under 7 5 0
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
T o t a l taxable

-16,290
22,600
20,240
27,580
31,628
33,542
39,078
84,178
83,718
79,324
72,040
117,348
93,312
58,628
44,752
34,680
28,066
22,624
18,272
16,110
14,626
48,676
29,114
18,699
22,535
12,544
7,166
4,715
3,255
2,346
1,730
4,058
1,491

672
369
343
150
170
60
52
16
10
11
2
3
returns

Total nontaxable

5/
-

57/7,224

(38)
(38)
57/2,440

37711,910

57/1,670

37As,n0

57/2,440
57/3,650

returns

adjusted gross
and n o n t a x a b l e
adjusted
more

gross

_

14,570
15,820
17,590
18,734
39,392
38,954
37,874
29,058
51,814
36,698
26,266
19,810
16,150
14,422
12,332
10,104
8,970
7,808
27,766
17,550
11,757
13,917
7,815
4,499
2,765
1,924
1,286

979
2,257

774
334
162
136
63
88
29
20
7
6
1
1
1

57/3,140
57/4,750
57/8,570
57/7,814
57/6,360
57/6,160

(38)
(38)
(38)
37/1,690

57/1,670
57/2,540
57/3,030
57/3,250
57/3,418
57/5,640
37710,624
"37/8,130

57/7,844

57W,400
57/7,088

57/6,620
37711,448

•57/5,690
_
3,190
2,424
1,730
1,380
1,130
37/854
57/740

"52/7,120

57/604

37/734
"2,464
1,570
1,05S
1,122

"2,254
1,094

618
605
310
146
110
69
44
21
78
35
13
5
7
3
9

4
_
1
_
-

Miscellaneous
income 56/

Income from
estates and
trusts

3,354
2,400
1,790
1,710
1,590
1,140

944

700
367
224
179
109
58
177
72
41
22
19
10
15
9
1

_
2
_
1
3

('38)
37/3,610

57/2,410
57/5,440
57/5,840
57/8,050
57/8,150
57/7,520
57/9,670
37710,910
16,160
17,540
16,680
14,264
22,408
20,760
14,138
11,150
9,248
7,818
6,268
5,442
4,792
4,228
16,358
10,494
7,198
9,249
5,072
3,372
2,246
1,S82
1,174

907
2,514
1,022
. 494

278
232
102
165
57
26
9
15
8

_
-

Tax
withheld

Payments on
1949 declaration 22/

37/12,610
39,250
35,510
50,020
60,040
68,730
85,854
88,730
96,550
116,772
211,548
188,910
146,618
111,250
94,684
58,090
36,348
23,712
17,202
12,650
10,400
8,018
6,864
5,256
19,148
11,304
6,828
7,914
4,416
2,455
1,506
1,041
756
567
834
327
166
92
85
34
43
18
12
2
3
3
1
3
1,643,174

284,640
971,540
1,052,670
1,252,670
1,364,270
1,472,250
1,915,444
1,929,294
2,057,780
2,191,136
3,938,432
3,574,110
2,449,214
1,766,006
2,057,178
1,009,824
498,544
272,550
171,332
121,916
82,616
65,906
49,512
39,290
125,802
63,876
36,334
39,844
19,293
10,856
6,511
4,368
2,958
2,227
4,796
1,618
689
347
336
140
162
37
26
8
8
9
2
2
30,687,933

37/9,560
49,610
59,284
99,472
129,178
136,640
158,318
161,210
161,950
167,928
348,250
315,606
286,420
253,374
576,054
296,170
199,700
153,440
125,570
102,342
83,674
69,212
57,728
50,996
170,704
97,968
57,721
64,785
32,595
18,064
10,824
7,176
4,855
3,573
7,880
2,679
1,174
604
554
252
280
99
58
23
19
12
3
4
4,333,352

14,512
97,824
48,924
57,910
67,540
61,970
55,654
60,760
35,590
35,754
36,414
18,600
54,614
16,880
37/3,790
57/5,801
645,537

,48,710
3,058,324
551,570
539,254
707,840
584,350
558,470
698,580
418,844
519,700
510,618
294,084
528,250
248,560
80,440
58,592
9,406,166

64,682
55,778
26,162
40,804
47,752
44,750
38,768
38,380
27,700
27,514
31,082
37/12,218

Overpayment
(refund, or
credit on
1950 tax)

T a x due
at time
of f i l i n g

70,924
248,904
365,670
457,894
516,770
538,498
694,898
704,480
762,334
817,616
1,725,486
1,522,348
1,134,674
870,732
1,054,254
645,502
394,058
248,526
172,068
129,288
94,604
76,092
60,690
50,864
156,528
82,314
47,010
51,813
25,119
13,884
8,319
5,531
3,602
2,713
5,862
1,965

811
425
401
161
208
70
40
17
14
11
3
4

2e3,970
893,050
800,034
984,858
1,029,998
1,052,750
1,370,884
1,520,856
1,369,806
1,468,540
2,487,686
2,067,300
1,517,906
1,077,742
1,276,022
562,482
237,024
121,092
77,056
53,418
38,440
30,478
22,522
18,154
61,164
33,054
18,259
19,164
9,180
4,899
2,843
1,836
1,362

927
2,119

747
372
181
139
73
71
28
18
6
6
1

_
-

1,134,541

549,627

81,068

51,929
30,250
15,390
50,850
27,450
29,924
25,284
26,294
15,900
14,850
17,108
37/7,620
"16,338
37/7,070

31,558
23,480
37/7,644
37710,510

57/11,584

57/4,050

"37/9,484
57/8,870

57/3,180

•57/6,863
304,660

57/3,580
57/1,700
37/3,649
147,383

37/5,870
37/3,650
37/3,700
57/1,920
37/l,600
37/3,560
(38)
37/2,480
57/1,290
—(38)
(36)
42,186

57/2,570
-(38)
(38)
37/1,329
65,863

57/3,680
57/2,860
57/2,430
37/1,510
37/1,844
57/2,050
57/1,810
(SB)
(38)
57,737

1,439,221

697,010

123,254

160,209

353,347

2,288,711

40,094,099

4,835,259

15,761,999

30,172,470

832,638

398,499

95,000

119,759

184,541

1,957,929

55,405,402

2,858,707

10,429,228

27,579,333

298,511

30,254

40,450

168,806

330,782

4,688,697

1,996,552

3,352,771

2,593,137

57/l,580

Grand total

For footnottB.

37A.420
57/3,640
57/1,820

57/6,480

Nontaxable r e t u r n s :
32/
No adjusted gross income
U n d e r 0.6
0.6 u n d e r 0.75
0.75 u n d e r 1
1 u n d e r 1.25
1.25 under 1.5
1.5 u n d e r 1.75
1,75 under 2
2 under 2,25
2.25 under 2.5
2.5 u n d e r 2.75
2.75 under 3
5 under 3.5
3.5 under 4
4 under 4.5
4.5 or more

Taxable returns with
income u n d e r $ 5 , 0 0 0
returns
Taxable r e t u r n s w i t h
i n c o m e of ( 5 , 0 0 0 o r

Net loss

37/2,620
57/8,640

Sales or exchanges of
property other than
capital assets
Net loss
Net gain

606,583

57/8,414
57/6,090
57/5,290

57/5,950
57/3,900

57/5,680

96,346

295,610

37/3,404

21,994

57/4,910
57/2,030
57/5,760

37/9,020
•57/2,740
57/2,250
37/4,570

37/2,259
57/6,650
57/6,634
57/8,050
37/8,660
57/4,670

57/2,930
57/3,730

57/1,690
57/2,060
37/2,770

57/1,540

p p . X 8 - X 9 ! for extent to w h i c h d a t a are e s t i m a t e d , see p p . 4-5*

57/3,450

—

26,136
37/8,918
37/4,330
57/6,953
501,907

13,761,999

.
_
_
_
_
_
_
_
_
.
_
_
_
_
_
-

20,318,517

106,270
5,108,982
576,052
576,808
751,072
624,570
592,518
732,250
443,194
545,854
538,520
504,988
551,016
256,148
84,290
63,641
9,855,955

Table 8. - Individual returns for 1949, by taxable and nontaxable returns and by adjusted gross inc<» classes: Frequency distributions of all returns for each
specific source of incon or loss comprising adjusted gross income, for each type of tax payment, and for tax overpayment; also distributions of returns with
itemised deductions for selected items - Continued
PART II. - RETURNS WITH ITEMIZED DEDUCTIONS 23/

Adjusted gross income classes 1/
(Thousands of dollars)

1
2
5
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
51
52
33
34
55
36
37
58
59
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
65
64
65
66
67
68
69

Number
of
returns

Deduction for Contributions

Interest

Losses from
fire, storm,
etc.

Taxas

Taxable returns:
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
3 under 3.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
15 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
ISO under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 5,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
Total taxable returns

594
537
232
278
99
58
23
20
12
3
4

588
529
229
269
96
57
25
20
12
5
4

592
557
159
196
67
36
18
16
7
2
4

587
527
251
276
93
57
22
20
12
5
4

670
517
370
668
353
185
117
109
35
44
36
14
6
7
5
2
2

7,899,061

7,555,816

4,556,554

7,395,454

925,329

Nontaxable returns; 52/
No adjusted gross income 5/
Ohder 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2,75 under 3
5 tinder 3.5
5.5 under 4
4 under 4.5
4.5 or more
Total nontaxable returns

512,214
42,658
52,788
101,090
74,594
156,500
109,262
80,748
122,282
88,144
85,012
99,360
124,552
81,844
41,940
39,291
1,792,279

18,386
26,064
55,428
70,130
52,534
105,310
82,450
61,838
101,884
72,244
74,158
89,950
110,562
74,194
57,150
36,609
1,048,851
8,444,305

"•'6;5l4,487
2,129,818

Grand total
Taxable returns with
income under $5,000
returns
Taxable returns with
income of 65,000 or

37/5,824
80,184
116,180
151,830
217,220
271,100
300,606
366,368
402,760
452,534
996,528
954,622
780,324
595,150
784,308
403,382
203,314
121,126
79,630
64,052
49,452
43,980
37,686
32,672
122,442
76,686
47,896
56,598
29,268
16,808
10,194
6,807
4,702
3,469
7,701
2,658
1,170

(38)
57/5,820
69,120 57/13,650
104,320
23,070
154,230
51,740
198,570
57,540
253,560
82,520
281,238
112,860
542,940
150,956
383,670
193,040
427,876
238,526
957,958
599,314
917,754
622,302
754,524
558,162
579,974
414,308
758,256
558,638
392,676
284,912
196,310
142,180
117,840
82,140
77,530
52,202
62,438
41,116
48,004
31,626
42,838
27,452
36,824
23,010
18,476
51,774
119,706
70,600
42,912
75,066
46,673
26,064
55,366
30,200
28,651
15,341
16,456
9,069
9,987
5,501
3,826
6,680
2,633
4,620
5,385
1,950
7,588
4,490
1,647
2,650
1,154
717

adjusted gross
and nontaxable

""7>5,496

37/13,994 37/10,140
~ 31,468 57/10,250
37,654 "57/8,868
77,580
23,120
58,104
16,404
107,750
41,990
85,388
33,250
28,544
68,448
102,928
53,184
76,174
49,440
46,274
73,642
89,540
62,360
76,724
112,012
57,450
74,764
28,210
58,580
28,272
35,664
574,460
1,083,280
8,639,096 5,131,014
6,492,814' 3',63S,6s8

adjusted gross
mare

2,207,841

2,146,282 1,477,956

9.691,340

37/3,600
57,900
86,840
120,400
178,520
238,970
266,826
326,690
372,000
418,914
949,712
917,506
751,946
575,810
751,308
390,516
196,494
116,820
76,664
61,988
47,936
42,668
36,490
31,384
118,838
74,520
46,594
55,170
28,499
16,362
9,965
6,652
4,591
3,401
7,561
2,607
1,158

For footnotes, see pp. 18 - 1 9 ) for extent to which data are astlmated, see pp. 4-6.

(58)
37/5,000
37/8,010
37711,410
15,030
21,370
25,260
27,340
42,964
46,420
111,250
122,818
102,170
88,570
114,744
61,834
31,460
17,210
11,194
8,564
5,964
5,328
4,538
3,438
12,386
7,036
4,277
5,258
2,559
1,554
1,035

37A,338
—(38)
37/2,030

57/5,470
57/2,450
57/4,860
57/6,640
57/6,084
57/8,940
57/7,530
57/7,100
57/8,950

Medical,
dental,
etc.,
expenses
37/1,200
42,050
69,150
82,960
129,120
161,340
182,934
201,276
228,758
251,502
542,062
501,458
567,924
286,886
365,098
159,664
76,676
41,162
26,132
20,300
13,752
11,580
9,272
7,550
21,554
9,912
5,523
5,031
2,218
1,224

565
380
228
158
303
80
27
15
10
2
3

2
3,847,041

57/1,824
27,844
50,680
72,920
104,690
142,280
163,420
204,204
248,338
264,304
685,558
694,814
576,958
450,628
554,300
275,422
134,132
79,088
50,576
40,196
50,566
26,722
22,180
19,122
70,744
42,782
27,083
33,251
17,958
10,475
6,623
4,SS3
3,238
2,422
5,856
2,155

989
513
466
202
245
67
51
23
19
12
2
4

Net

Net

Tax

income

deficit

withheld

37/5,824
60,184
116,180
151,830
217,220
271,100
300,606
566,368
402,750
452,534
996,528
954,622
780,324
595,150
784,308
403,382
203,314
121,126
79,630
64,052
49,432
45,980
57,686
32,672
122,442
76,686
47,896
56,598
29,268
16,808
10,194
6,807
4,702
3,469
7,701
2,658
1,170

594
557
232
278
99
58
23
20
12
3
4

5,150,697

7,899,061

57/4,951
37/7,835
19,890
57/6,500
22,470
~15,698
57,220
33,580
36,820
25,620
78,010
44,870
70,430
40,978
35,104
45,940
65,884
56,800
46,830
54,340
52,694
43,454
58,430
62,130
79,278
78,780
57,040
47,450
23,190
30,000
30,844
21,240
744,801
609,479
4,59f,S42" •^TT&otlTT

29,154
47,204
96,260
69,434
132,610
107,422
78,264
120,432
87,834
84,142
98,900
123,868
81,184
41,520
37,541
1,255,769

' 9AST&30

4,298,521

6,926',B89

1,462,055

2,207,841

—16,600
5^10,550
-57/7,500
37/7,558
103,810
1,029,139
' ?27,4_ T,8l3,15r

301,717

Miscellaneous
deductions

778,421

-

Payments on
1949 declaration 22/

- 57/5i200
- 45,640
85,800
- 105,500
- 148,620
- 202,500
- 239,740
- 293,880
- 342,148
385,956
- 877,712
- | 861,420
- 698,520
- 528,540
- 694,552
- 348,150
- 165,066
- 92,652
- 58,388
- 45,708
- 33,206
- 30,438
- 24,822
.
- 20,720
- 77,180
- 46,418
- 28,602
55,608
- 17,216
9,977
6,111
4,140
2,850
2,155
4,681
1,585
683
359
332
138
161
37
26
8
8
9
2
- 6,567,5442
512,214

S7A3,504
"57/5,584
57/4,830
57/5,160
57/3,890
57/1,840
57/2,484
(38)
57/l,8S0
(38)
(38)
(58)
(58)
(58)
57/1.750
556,510

48,710
57/8,964
"~17,240
36,730
21,510
53,610
45,410
33,400
66,634
55,360
£4,650
69,000
88,290
62,450
31,000
26,788
719,746

Overpayment
(refund, or
credit on
1950 tax)

Tax due
at time
of filing

(58)
57/9,460
37712,370
17,400
29,090
37,840
38,064
45,492
41,138
45,040
93,038
91,706
81,666
68,760
107,456
82,552
54,696
42,246
54,534
30,092
27,732
25,386
23,904
22,674
92,698
64,460
42,588
52,006
27,750
16,160
9,868
6,636
4,595
3,592
7,570
2,617
1,155

37/2,204
50,894
33,580
51,040
64,680
66,550
69,502
84,250
85,418
90,744
194,008
163,842
174,472
157,946
205,544
115,548
78,520
54,984
38,882
34,588
27,734
25,220
23,176
21,240
78,136
50,410
32,673
39,460
20,609
12,147
7,465
5,013
5,571
2,550
5,590
1,910

591
530
230
278
99
58
25
19
12
5
4

796
411
398
160
206
70
40
17
14
11
5
4

1,394,496

2a54j050

64,682
37/6,604
57/4,998

57/9,060
57/6,720

37711,620
57/12,608

"57/7,298
£7711,850
-57/8,440
37710,512
-57/6,470
57713,952
"37/5,374

57/3,350
SY/S.S1S
18S,051

57/5,620
48,480
82,580
100,790
152,150
202,720
250,084
280,518
517,888
360,190
799,870
768,250
605,412
456,564
574,824
285,974
123,924
65,612
40,328
29,094
21,468
18,510
14,256
11,268
43,262
25,708
15,073
16,920
8,345
4,575
2,681
1,771
1,313

905
2,065

737
368
181
158
72
71
28
18
6
6
1

-

5,716,614

-

106,270
14,948
22,258
44,940
27,610
65j940
56,518
59,858
77,184
63,550
64,212
74,630
100,552
66,744
53,880
30,637
887,311

1,266,955

5,294,40'7

887,100

1,809,618

586,5T& ~Y$mtm "-"-^t^TSHf
"XISTESo'" g.SoSigSS
556,510

-

5,557,122 '

798,915 "

1,749,968

784,612

- 14

Table 4. - Individual returns for 1949, by taxable and nontaxable returns, by adjusted gross income classes, and by marital status
and sex of taxpayer: Number of returns, adjusted gross Income, exemption, and tax liability
(Adjusted gross Income classes and money figures in thousands of dollars)
Joint returns 59/ ol husbands ana wives
All returns
iJumb'er
Adjusted
Adjusted
Total
Tax
Amount of
Amount of
Total tax
Adjusted gross income classes 1/
of
number of
gross
gross
exemption 21/ liability 3/
exemption 21/ liability 5/
returns
returns
income 2/
income 2/
'axable returns:
1
0.6 under 0.75
0.75 under 1
2
1 under 1,25
3
4
1.25 under 1.5
S
1.5 under 1*75
1.75 under 2
6
7
2 under 2.25
2.25 under 2.5
8
2.5 under 2.75
9
2.75 under 5
10
5 under 5.5
11
5.5 under 4
12
15
4 under 4.5
14 4.5 under 5
15
5 under 6
6 under 7
16
17
7 under 8
8 under 9
18
19
9 under 10
10 under 11
20
21 11 under 12
12 under 15
22
25 15 under 14
24 14 under 15
15 under 20
25
26 20 under 25
27
25 under 50
28
50 under 40
29 40 under 50
50 under 60
50
51 60 under 70
52 - 70 under 80
55 80 under 90
54
90 under 100
55 - 100 under 150
56 150 under 200
57
200 under 250
250 under 300
58
500 under 400
59
400 under 500
40
500 under 750
41
750 under 1,000
42
45
1,000 under 1,500
44
1,500 under 2,000
45
2,000 under 5,000
5,000 under 4,000
46
47
4,000 under 5,000
5,000 or More
48
49

50
51
52
55
54
55
56
57
58
59
60
61
62
65
64
65
66
67

.557,894
1,180,974
1,225,174
1,517,682
1,665,688
1,722,058
2,228,552
2,190,176
2,506,838
2,444,106
4,376,112
3,700,318
2,728,950
1,998,548
2,356,936
1,218,244
637,062
573,258
252,514
185,416
154,444
107,744
84,126
69,842
220,420
116,446
65,543
71,287
34,431
18,881
11,215
7,595
4,982
5,657
8,028
2,725
1,189
608
541
254
280
99
58
25
20
12
5
4

254,328
1,055,643
1,375,925
2,098,526
2,699,261
5,226,528
4,729,038
5,197,035
6,063,625
7,021,251
14,202,032
13,825,865
11,561,339
9,468,498
12,829,253
7,846,238
4,749,378
5,159,507
2,586,520
1,940,581
1,542,859
1,342,481
1,134,167
1,011,742
3,785,153
2,588,897
1,787,821
2,446,523
1,529,547
1,029,247
724,293
551,992
422,575
545,517
961,006
466,140
265,958
165,094
184,812
104,592
167,972
86,560
69,688
39,316
48,340
42,687
12,463
43,015

214,756
708,584
755,104
1,197,126
1,405,576
1,449,934
2,409,602
2,444,782
2,816,095
5,444,928
6,761,749
6,347,862
5,001,986
5,744,085
4,434,750
2,302,505
1,219,490
719,843
488,147
562,580
264,000
212,488
165,896
158,195
437,945
234,946
132,986
144,541
68,261
37,328
21,980
14,446
9,589
7,048
15,111
5,015
2,189
1,050
978
408
488
158
92
37
29
17
4
7

2,453
55,984
80,562
110,540
165,245
251,228
294,659
555,421
419,876
455,824
955,481
965,921
855,715
755,465
1,125,995
765,667
502,994
357,962
286,690
243,585
204,851
186,196
165,046
152,419
625,709
491,165
378,482
593,440
429,095
521,978
245,790
199,181
159,445
135,971
407,379
216,042
130,760
84,068
97,470
57,671
96,429
52,036
40,342
23,689
30,136
22,737
6,941
22,614

554,174
565,258
802,082
900,774
1,090,386
1,425,142
2,981,926
2,895,596
2,505,554
1,757,592
2,121,284
1,100,562
575,188
553,614
225,150
164,068
118,168
94,516
72,860
60,824
191,212
101,510
57,175
61,555
29,642
16,185
9,602
6,255
4,220
5,088
6,704
2,216
959
465
429
172
199
59
52
6
4
7
1
1

542,918
681,428
1,704,724
2,138,197
2,874,794
4,097,122
9,704,628
10,825,675
9,763,002
8,234,333
11,548,462
7,087,178
4,287,690
2,823,825
2,110,076
1,716,878
1,355,818
1,177,740
982,477
881,046
3,282,666
2,257,214
1,559,712
2,111,080
1,316,322
882,014
619,951
466,724
557,767
292,510
802,217
379,516
208,311
126,580
146,439
76,682
118,274
50,998
37,369
9,508
10,318
24,476
4,112
6,175

401,009
435,886
1,218,182
1,374,166
1,782,202
2,547,170
5,500,818
5,597,664
4,595,005
3,489,078
4,203,203
2,187,251
1,158,095
679,686
457,877
340,384
247,681
198,857
154,295
128,593
407,180
218,802
123,984
133,852
63,211
34,387
20,260
13,228
8,779
6,452
13,695
4,460
1,907
896
865
337
403
117
64
16
6
12
1
2

15,496
27,054
48,895
84,673
123,722
176,135
499,873
643,431
651,643
611,271
969,026
664,870
437,493
307,656
242,918
206,215
171,768
155,832
135,531
126,421
513,612
404,517
311,844
483,351
351,007
264,077
202,338
162,028
130,364
111,055
329,517
170,550
99,524
62,649
74,965
41,113
65,913
28,682
20,670
5,055
5,899
11,986
2,068
3,796

55,628,295

138,566,406

50,124,695

14,558,141

20A424j592

100,016,097

38^031,366

10,157,417

512,214
5,926,316
1,013,224
1,237,528
1,554,158
1,253,348
1,120,650
1,285,764
810,596
878,782
820,528
458,268
775,202
351,522
117,750
89,999

8/799,280
1,326,810
670,266
1,087,848
1,732,332
1,704,075
1,821,050
2,414,363
1,722,493
2,087,322
2,141,867
1,316,014
2,493,290
1,311,459
497,051
480,548

759,422
3,388,315
1,193,262
1,986,386
2,569,087
2,371,452
2,430,553
2,851,564
2,128,458
2,568,258
2,279,971
1,455,519
2,556,000
1,280,025
• 464,562
567,254

305,531
642,224
330,602
708,038
979,580
905,588
918,970
1,093,424
755,476
812,762
768,108
453,468
752,562
542,552
115,710
86,754

8/616,287
233,006
224,165
622,704
1,106,355
1,236,229
1,494,354
2,053,449
1,563,310
1,930,802
2,005,689
1,244,776
2,421,233
1,278,140
488,529
458,636

593,250
1,164,066
616,208
1,313,348
1,823,935
1,845,192
2,066,201
2,484,040
1,962,778
2,211,442
2,147,899
1,366,781
2,475,904
1,252,369
459,648
360,514

Total nontaxable returns

16,185,829

9/22,007,519

50,409,645

9,931,329

9/17,745,090

24,143,574

Grand total

51,814,124 9/160,573,925

80,554,340

14,558,141

30,355,721

9/117,761,187

62,174.940

10,157,417

45,826,679 9/104,765,980

69,091,795

5,678,572

24,999,851

9/68,645,282

51,366,105

2,883,107

11,442,545

8,859,775

5,355,870

49,117,905

10,808,857

7,274,310

Total taxable returns
nontaxable returnss 32/
Mo adjusted gross income 5/
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 5
5 under 5.5
5.5 under 4
4 under 4.5
4.5 or more

68 Taxable returns with
income under $5,000
returns
69 Taxable returns with
Income of $5,000 or

adjusted gross
and nontaxable
adjusted gross
more

5,987,445

55,807,934

For footnotes, see pp. 18-19; for extent to which data are estimated, see pp. 4-5.

-

234,458

351,571

281,350

2,916

_

PF
Table 4.

Individual returns for 1949, by taxable and nontaxable returns, by adjusted gross income classes, and brmarital statais
and sex of taxpayer: Number of returns, adjusted gross income, exemption, and tax liability - Continued

(Adjusted gross income classes and money figures in thousands of dollars)
; •_
1 __
Separate returns of hi sbands and wives 40/
. Women
Men
Dumber
Adjusted
Adjusted
Numoer
Adjusted gross income classes 1/
Tax
Asaount of
Tax
Amount f
gross
of
gross
of
exenption 2 1 / liability 3/
exemption 2 1 / liability 5/
returns
income 2 /
income 2 /
returns
Taxable returns:
0.6 under 0.75
0.75 under 1
1 uixier 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
15 under 14
14 under 15
15 under 20
20 under 25
25 under 30
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more

656
820
384
192
147
93
66
49
98
44
15
14
9
4
14
10
14
7
7
2
2
1

783
991
437
221
165
106
77
54
110
56
21
12
8
4
15
12
14
10
14
2
3
3

1,886
5,022
4,696
6,568
8,853
13,679
23,568
25,941
46,414
40,125
26,952
22,262
14,391
8,135
5,,601
4,459
3,413
5,715
5,351
2,660
2,512
2,123
10,102
7,720
5,241
9,296
6,263
4,073
3,912
2,891
2,425
2,038
5,660
3,727
1,775
2,006
1,796
1,085
4,995
5,800
10,695
7,661
10,467
4,295
4,873
4,324

959,634

3,203,024,

953,252

397,905

57/9,138
50,550
17,620
16,950
18,790
37/12,110
37/9,840
14,860
37/6,830
31/7,420
37/7,870
|j/3,450
37/3,230
57/2,050
(41)
(41)

8/21,996
18,645
11,502
14,994
21,416
16,395
15,876
27,954
14,725
17,792
20,555
9,981
10,146
7,477
(41)
(41)

7,880
38,310
15,888
23,472
28,440
20,088
19,404
28,056
16,158
18,774
20,676
9,978
9,336
6,786
(41)
(41)

958

Total taxable returns

Total nontaxable returns

799
3,234
1,642

_

17,834
51,714
54,830
75,590
83,220
84,450
98,220
98,480
94,784
71,140
91,468
40,210
24,520
17,894
37/10,320
"37/5,240
3,620
2,978
2,160
1,510
1,252

900
37/846
37/780
"1,976
1,136

631
663
532
200
120
90
54
42
106
34
23
13
9
10
6
6
1
4

12,649
45,198
61,162
104,585
135,380
158,398
208,345
233,300
248,642
204,077
295,764
150,554
103,431
84,535
56,636
54,196
26,952
25,275
20,505
15,800
14,569
11,255
11,580
11,289
54,521
25,051
17,210
22,899
14,760
10,958
7,799
6,694
4,602
4,025
12,667
5,841
5,171
3,441
5,100
4,383
5,458
5,445
1,296
7,058

-

10,700
31,028
52,898
54,498
62,082
60,426
82,592
77,156
77,798
56,766
81,691
55,502
21,342
16,934
10,146
4,734
3,336
3,064
2,148
1,428
1,155

952
744
772
2,057
1,166

615
605
324
210
114
92
52
58
101
52
24
10
. 7

11
5
7
2
5

-

-

959,416

2,475,628

735,149

37/7,142
159,650
25,790
22,830
27,650
18,040
37/13,430

8/15,498
50,555
16,887
20,095
51,558
24,189
21,745
21,112
8,857
6,156
5,807
(41)
(41)
(41)

5,290
107,150
25,064
29,790
37,626
28,614
26,082
22,080
9,246
6,276
5,436
(41)
(41)
(41)

WH,200
"£7/4,210
3j/2,620
37/2,220
(41)
(41)
(41)
(41)

-

(41)

-

(41)

-

147
1,577
3,421
6,268
9,555
15,172
16,989
21,450
25,531
20,682
30,195
16,747
12,134
9,720
6,688
4,636
5,821
5,954
5,461
2,747
2,756
2,101
2,510
2,554
8,054
6,819
5,185
7,874
5,491
4,555
3,355
2,890
2,123
1,874
6,554
5,040
2,927
1,855
1,915
2,704
2,107
5,879

787
4,427

298,569

.
-

181,592

9/189,465

264,461

296,436

9/196,775

504,814

1,141,026

9/3,392,487

1,217,713

397,905

1*255,852

9/2,670,403

1,039,962

298,569

adjusted gross
and nontaxable

1,080,852

9/2,720,902

1,145,440

224,427

1,200,790

9/2,242,593

1,006,008

185,548

adjusted gross
more

60,174

671,585

72,273

173,478

55,062

427,810

53,955

112,821

Grand total
Taxable returns with
income under $5,000
returns
Taxable returns with
income of 05.000 or

4,494
12,828
16,686
30,060
36,240
39,312
54,000
68,149
96,180
102,649
161,288
130,814
75,857
52,421
31,524
11,490
6,464
4,410
2,672
2,492
1,820
1,465
1,141

37/724
2,732
1,376

Nontaxable returns: 32/
No adjusted gross income 5/
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
. 2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
5 under 5.5
5.5 under 4
4 under 4.5
4.5 or more

51
652

5,322
18,753
31,648
54,851
73,510
90,334
122,903
172,119
269,269
292,645
501,989
420,546
268,250
209,300
137,264
63,716
41,360
31,003
22,031
22,614
19,206
14,980
12,888
10,466
46,682
30,545
17,881
28,305
17,146
10,504
9,583
6,927
5,559
4,660
11,959
7,523
3,336
3,760
3,069
1,788
8,745
8,953
17,396
12,640
16,768
7,032
8,350
7,146

57/7,490
21,380
27,810
39,560
45,020
48,010
57,910
72,398
102,410
101,938
154,944
112,794
63,472
44,324
25,232
37/9,930
5,554
3,668
2,324
2,154
1,674
1,200

For footnotes, see pp. 1 8 - 1 9 } for extent to which data are estimated, see pp. 4-5.

Individual returns for 1949, by taxable and nontaxable returns, by adjusted gross income classes, and by marital status
and sex of taxpayer: Number of returns, adjusted gross income, exemption, and tsx liability - Continued
(Adjusted gross is some classes and money flgur es in thousands of dollars)
ueturns oi single persons

_._

Hen
Adjusted gross income classes 1/

Adjusted
gross
income 2/

Number

of

1
2
5
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
50
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65

Taxable returns:
0,6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
5 under 5.5
3.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 12
12 under 13
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
30 under 40
40 under 50
50 under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 300
300 under 400
400 under 500
500 under 750
750 under 1,000
1,000 under 1,500
1,500 under 2,000
2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more

213,280
688,710
709,790
609,744
552,764
539,250
570,960
547,564
523,420
474,702
699,436
424,478
220,192
125,136
123,492
65,972
32,682
19,136
14,420
9,990
7,542
6,298
5,074
3,966
13,244
6,722
3,754
4,282
2,067
1,109

653
446
298
229
510
186
85
47
41
23
31
7
4
4
4

-

Total taxable returns
Nontaxable returns: 52/
No adjusted gross income 5/
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 3
3 under 3.5
3.5 under 4
4 under 4.5
4.5 or more

661
469
311
235
542
196
1O0
51
46
25
34
8
5
4
5

-

1,453
21,382
47,191
53,373
63,333
82,096
99,093
115,560
128,139
131,189
229,788
172,908
106,166
70,317
84,388
56,651
34,956
24,634
21,718
17,362
15,312
14,532
13,320
11,627
50,900
38,950
29,897
47,922
33,841
23,872
16,951
14,493
11,322
9,964
29,949
16,515
10,365
6,857
7,969
5,983
11,591
3,815
2,930
4,488
6,007

"

2

29,694

2

14,494

7,221,726

18,063jl49

5,643,426

2,015,545

120,065
1,855,992
361,602
209,460
240,668
144,710
84,850
89,020
33,780
33,860
24,740
14,310
37/13,980
"57/4,900
57/l,420
37/2,343

8/91,062
"628,254
235,509
185,458
271,736
194,057
137,251
167,236
71,715
80,447
64,144
41,161
44,427
18,205
5,975
15,397

95,262
1,233,139
293,140
269,552
528,554
225,726
158,252
176,538
78,500
83,394
65,904
42,270
39,144
16,740
3,780
5,584

—
-

119,290
419,170
432,744
558,350
648,510
687,110
699,180
570,960
495,838
371,184
448,338
227,440
117,192
73,802
76,608
56,540
20,018
13,842
10,280
7,694
5,808
4,830
4,388
3,548
11,256
5,702
3,327
3,987
2,006
1,195

713
515
544
249
610
243
127
69
53
25
30
17
7
2
5
5

"
—

84,794
366,604
486,805
771,373
1,051,208
1,286,072
1,481,603
1,353,559
1,298,322
1,064,019
1,442,100
847,179
494,898
549,451
415,193
235,869
149,350
117,144
97,281
80,644
66,813
60,159
59,132
51,437
192,993
127,126
90,850
157,660
89,585
65,249
46,046
38,529
29,255
25,576
72,850
41,528
28,224
18,650
18,266
11,546
18,556
14,952
8,860
3,195
11,276
11,179

"
—

71,574
251,502
259,646
409,574
492,756
515,598
577,842
470,298
415,527
320,258
589,559
200,904
104,754
67,502
75,557
55,142
20,092
14,228
10,866
8,150
6,045
5,154
4,744
4,015
12,057
6,528
3,689
4,427
2,165
1,523

781
551
570
269
665
271
137
80
52
51
51
15
7
2
4
5

"

6,083,127

14,810,496

4,761,502

70,358
1,217,900
277,610
280,250
267,450
172,900
93,560
77,260
30,500
22,120
17,590
57/6,240
W4,650
3ty2,050
(41)
(41)

8/54,455
596,174
182,405
246,598
501,488
255,206
151,825
144,614
65,905
52,128
45,673
17,759
14,798
7,605
(41)
(41)

57,742
845,670
244,962
550,244
550,552
251,852
160,434
140,850
61,956
48,572
40,056
13,890
9,956
4,122
(41)
(41)

804
12,591
28,061
44,960
. 72,185
102,556
120,851
120,078
121,116
101,880
147,215
92,715
56,816
41,895
51,499
51,375
21,121
17,269
15,180
15,546
11,666
11,069
11,368
9,894
45,041
55,158
26,515
44,996
52,495
25,600
19,255
16,879
13,212
11,040
55,899
22,211
16,167
10,725
10,826
6,787
11,825
9,861
5,261
2,058
7,762
6,456

"
1,668,895

_

9/2,067,710

3,115,236

2,540,972

9/1,808,496

2,581,557

9/20,130,859

8,758,665

2,015,545

8,624,099

9/16,618,992

7,545,059

1,668,895

adjusted gross
and nontaxable

L0,135,126

9/16,972,756

8,446,191

1,521,988

8,410,060

9/14,186,485

7,128,051

1,065,299

adjusted gross
more

322,500

3,158,123

312,474

695,555

214,059

2,452,509

215,007

605,596

Grand total

69

-

127,968
413,226
425,874
421,844
413,489
398,712
477,186
455,033
444,568
418,084
628,592
382,978
205,028
118,350
116,540
63,888
31,504
18,455
14,584
10,126
7,300
6,060
4,973
4,014
13,436
7,009
3,917
4,666
2,125
1,187

Tax
Amount of
exemption 21/ liability 5/

gross
income 2/

3,235,700

Total nontaxable returns

67

Taxable returns with
income under $5,000
returns
Taxable returns with
income of $5,000 or

151,561
605,087
796,308
836,348
896,243
1,010,097
1,211,460
1,299,860
1,372,598
1,363,364
2,257,550
1,581,909
931,759
590,882
671,694
425,279
244,044
162,062
136,628
104,645
86,632
78,367
68,291
57,504
226,492
149,161
102,187
146,582
91,735
60,521
40,935
33,318
25,215
21,749
61,333
31,732
18,915
12,664
13,938
9,992
19,139
6,015
4,767
6,917
9,978

Adjusted

10^457,426

66

68

Tax
Amount of
exenption 21/ liability 3/

Number
of
returns

For footnotes, see pp. 1 8 - 1 9 ; for extent to which data are estimated, see pp. 4-5.

Table 5. - Taxable fiduoiary returns for 1949, by total income classes: Number of returns, income or loss frcm each of the sources comprising total income,
total inocme, deductions, balance income, amount distributable to beneficiaries, net income, exenajtion, and tax liability

Total income
classes 42/

Total
number
of
returns

Dividends
45/

Rents and
Trade or
Interest royalties 14/ business 45/
44/

W
et
grofit
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under 1.5
1.5 under 1.75
1.75 under 2
2 under 2.25
2.25 under 2.5
2.5 under 2.75
2.75 under 6
3 under 5.5
5.5 under 4
4 under 4.5
4.5 under 5
5 under 6
6 under 7
7 under 6
8 under 9
9 under 10
10 under 11
11 under 12
12 under 15
15 under 14
14 under 15
15 under 20
20 under 25
25 under 50
50 under 40
40 under 50
SO under 60
60 under 70
70 under 80
80 under 90
90 under 100
100 under 150
150 under 200
200 under 250
250 under 500
500 under 400
400 under 500
500 tinder 750
750 under 1,000
1,000 under 1,600
1,500 under 2,000
2,000 under 5,000
5,000 under 4,000
4,000 under 5,000
5,000 or mora
Total

Taxable returns with
total l M o a . undar
•6,000
T..r.wi. retain, with
total income of
#8,000 er nor.

k

8,657
4,245
6,777
5,866
4,887
4,532
3,721
3,612
5,048
2,848
2,589
4,482
3,606
3,141
2,730
4,525
3,565
2,970
2,529
1,948
1,764
1,460
1,275
1,052
1,002
5,681
2,291
1,545
1,722
1,024

620
422
526
218
149
475
185
110
62
51
SO
55
15
IB
4
5
1
1

-

1,264
1,112
2,506
2,614
2,676
5,004
2,769
5,211
3,178
5,545
3,551
6,561
6,220
6,125
6,200 ,
12,147
11,598
11,529
10,876
9,720
9,544
8,783
8,261
7,585
7,876
35,180
29,414
24,991
34,298
28,412
19,548
17,158
15,712
11,565
8,457
54,730
21,265
18,565
10,018
11,591
5,555
14,557
9,257
7,514
6,895
7,529
5,054
4,072

-

1,070

692
1,555
1,565
1,521
1,329
1,526
1,515
1,130
1,185
1,195
2,552
2,054
2,044
1,986
8,592
5,181
2,875
2,685
2,291
2,492
1,905
1,790
1,521
1,565
6,754
4,593
3,585
4,688
5,125
2,511
1,900
1,409
1,017

977
2,780
1,525

706
446
740
646
622
444
188
220
76
17
IS

—

Net

Net

loss

profit loss

262
485
964
1,133
1,161
1,082
1,179
1,238
1,157
1,052
1,106
2,175
1,918
1,869
1,788
3,303
2,973
2,779
2,798
2,262
2,445
2,160
1,922
1,603
1,565
7,540
5,388
4,607
6,449
4,754
3,974
2,173
2,194
2,025
1,568
6,170
2,208
1,020
1,497
1,812
1,285
2,548

577
2,808

10
-

18
17
30
28
26
21
19
55
22
42
19
48
27
55
25
52
28
46
36
26
25
25
19
14
29
64
52
67
53
110
50
87
5
55
4
65
25
25
1
24
1
25

5

52
56

-

Net

24
225
410
488
467
468
418
605
520
502
457
968
833
798
647
1,272
1,125
1,144
1,027

747
772
691
726
800
547
2,014
1,496
1,565
2,552
1,428
1,128

557
476
815
551
1,721

588
425
444
1,050

-

492
70
182

-

7
14
19
21
46
54
32
14
24
26
4
51
25
68
15
51
40
31
64
26
50
16
39
30
48
117
156
91
46
116
159

Net

1,197
1,293
1,107
1,540

929
890
939
1,000

731
855
3,724
2,517
1,958
5,510
2,503
2,559
1,067
1,255

54
870
45
45
298
102 2,272
909
111
19
604
8
52
457
279
10
2
26
5 1,067
18

99,577 529,760

84,264 102,559 1,448 58,969 1,852 41,004

64,559

56,714

21,691

18,549

55,058 476,048

62,676

64,009 1,020 26,141 1,452 58,868

ler fe.—.tM, ee. pp. 16-19.

450

7,828

Net

profit loss

96
112
202
216
282
275
544
279
296
571
515
681
635
681
632

598 5,418

Sales or
exohanges
of property
other than
capital
assets 18/

Sales or
exchanges
of capital
assets 47/

Partnership 4£/

4
5
9
7
9
23
16
9
7
5
8
18
22
12
6
85
47
7
13
1
15
10
14
27
5
25
79
57
58
16
59
16
24
2
2
4
6
10
16
m

-

Met
gain
179
179
484
562
588
625
655
709
720
795
727
1,375
1,391
1,554
1,525
2,490
2,442
2,199
2,068
1,974
2,055
1,714
1,692
1,492
1,577
6,411
5,681
4,475
5,776
4,574
8,762
5,545
2,425
1,788
2,090
8,054
4,825
8,310
1,551
1,869
4,666
1,552
2,578
7,802

44
15
2
778

r -

Wet

Net

Net

loss

gain

loss

ei
5
1
60
15
3
109
26
15
15
126
24
14
109
9
102
52
15
70
52
10
83
7
58
85
17
12
68
24
10
77
17
12
151
48
12
111
45
9
4
121
48
84
24
18
174
69
24
130
23
18
138
46
19
117
60
10
102
28
8
57
17
94
92
35
10
32
76
6
54
63
28
4
56
19
254
S9
16
145
58
11
12
124
76
148
29
154
81
88
88
65
20
68
37
5
17
55
7
6
5
21
6
14
40
47
58
76
25
8
16 (54)
29
6
10 (54)
5 (54) (54)
2
(54)"
8
4
17
8
2

-

e
-

-

-

Seduction for
Amount
distribTotal Balance
MiscelTotal
utable
Misceldeduc- income
laneous
into
laneous
Interest
tions 54/
income 49/ ocme 50/
Taxes 52/ deducbeneficiaries
tions 55/

Income
from
other
fiduci-*

62
46
108
104
125
132
123
180
128
156
165
378
184
270
263
595
556
845
295
221
188
266
293
179
406

58
109
225
261
267
265
268
252
256
263
241
459
421
367
295
688
527
505
586
463
470
426
819
294
242

1,042
1,186

1,247
1,152

708

679

1,428

1,250

743
585
616
551
219
18

1,147

632
756
481
518
285
448
801
164
162
34
58
1

605
10
1

60
71

1,592
2951

65
128
256

-

m

-

24
S

-

2,906
2,875
5,894
6,567
6,700
7,017
6,967
7,641
7,225
7,518
7,482
14,516
13,506
18,315
15,007
24,761
23,057
22,289
21,442
18,472
18,488
16,764
15,881
13,915
14,510
83,514
51,052
42,290
59,569
45,698
55,906
27,568
24,459
18,471
14,189
57,421
51,542
24,562
14,160
17,728
18,482
20,148
18,050
19,392
7,099
7,486
5,078
4,860

-

715 108,908 15,457

1,878

625

16,260

16,745

926,624

11,664 1,418

400

156

2,402

5,985

123,088

656 »7,S07 2,046

974

472

15,860

12,761

605,759

160

9
7
22
57
45
51
62
47
58
66
68
115
119
81
95
216
191
183
176
149
201
210
150
151
175
758
576
475
750
555
428
275
404
196
156
742
446
124
72
80
46
109
75
85

-

157
(54)

10

9,119

42
54
121
187
206
204
206
214
226
220
217
405
402
552
340
657
585
547
547
435
480
408
425
573
871
1,552
1,877
1,048
1,560
1,190

986
619
499
448
418
1,884

725
405
557
405
145
267
195
591
261
124
(54)

56

-

168
83
197
261
310
324
345
570
374
402
599
775
702
692
641
1,251
1,163
1,158
1,029

897
924
781
845
683
721
5,086
2,593
2,083
5,424
2,666
1,984
1,472
1,524
1,075

S67
8,057
1,441
1,501

842
1,094

220
124
540
485
562
580
611
631
658
687
685
1,294
1,222
1,125
1,077
2,125
1,958
1,869
1,752
1,481
1,605
1,599
1,420
1,187
1,266
5,577
4,546
8,549
5,714
4,411
5,598
2,566
2,427
1,716
1,558
5,614
2,611
1,650
1,271
1,576

658
827
712 1,087
481
747
561 1,057
185
596
set 824

-

157

(34)

228

-

2,686
2,751
5,554
6,082
6,158
6,487
6,357
7,010
6,568
6,831
6,747
13,224
12,284
12,190
11,950
22,636
21,119
20,420
19,689
16,991
16,888
15,566
14,461
12,728
15,244
58,156
46,487
58,741
53,655
41,287
80,508
25,002
22,012
16,758
12,601
51,807
28,951
22,752
12,889
16,152
12,658
19,056
12,265
18,554
6,705
8,912
8,077
4,687

-

Net inAmount
come
Tax
taxable of
liabilto the
exempity 57/
fiduci- tion 56/
ary 55/

173
181
440
651
855
1,051
1,148
1,424
1,446
1,711
1,702
5,585
5,588
5,550
8,901
7,577
7,174
7,452
7,001
6,641
6,491
5,920
5,957
5,489
5,651
28,218
20,690
17,728
25,042
19,448
15,229
13,228
12,560
9,047
6,612
27,490
15,551
14,018
8,967
9,958
6,218
13,897
8,755
8,590
6,662
6,827
3,051
4,476

-

2,512
2,569
5,114
5,451
5,505
5,586
5,209
5,586
5,122
5,120
5,046
9,639
8,746
8,640
8,050
15,059
15,945
12,968
12,688
10,850
10,591
9,445
8,504
7,240
7,595
32,925
25,797
21,015
28,615
21,859
15,280
11,776
9,652
7,708
5,989
24,517
15,550
6,719
8,922
6,196
7,440
5,661
6,628
9,764

161
65
28
161

-

25,050

46,966 79,126 647,696

584,925

462,776

880

5,576

6,041 10,801 112,789

28,886

87,485

6,887

_»,6T«

40,918 68,829 784,909

889,SM

878,821

866
1,608
2,631
2,261
1,806
1,559
1,296
1,244
1,039

935
841
1,405
1,105

962
801
1,534
1,014

836
696
519
490
586
543
263
257
954
590
571
420
255
149
98
78
56
58
115
41
24
11
11
7
5
5
4
(54)
(54)

1
(54)

—

274
159
411
552
578
655
645
718
680
699
710
1,415
1,524
1,846
1,290
2,518
2,484
2,871
2,430
2,050
2,129
2,010
1,862
1,628
1,778
8,852
7,554
6,581
9,871
8,841
6,225
5,063
4,570
5,654
2,906
12,598
7,570
4,956
2,161
5,647
4,418
5,468
4,246
6,458

76
82
9
108

-

29,716 144,080

20,556

11,41*

9,567 182,616

- 18 -

Footnotes
1/ Adjusted gross income classes are based on the
amount of adjusted gross income (see note 2 ) , regardless of the amount of net Income or net deficit when
computed; returns with adjusted gross deficit are designated "No adjusted gross income" without regard to
the amount and appear as the first class under nontaxable returns.
2/ Adjusted gross income means gross income minus
allowable trade and business deductions, expenses of
travel and lodging in connection with employment, reimbursed expenses in connection with employment, deductions
attributable to rents and royalties, certain deductions
of life tenants and income beneficiaries of property
held in trust, and allowable losses from sales or exchanges of property. Should these allowable deductions
exceed the gross income, there is an adjusted gross
deficit.
-3/ Tax liability after deducting tax credits relating to income tax paid at source on interest from
tax-free covenant bonds and to income tax paid to a
foreign country or possession of the United States.
Such credits are reported on returns, Form 1040, with
itemized deductions.
4/ This class includes nontaxable returns with adjuste? gross income exceeding the designated class
limit.
S/ Returns with no adjusted gross income are returns~*showing adjusted gross deficit; that is, returns
on'which the deductions allowable for the computation
of adjusted gross income equal or exceed the gross
income (see note 2 ) .
6/ Less than 0.005 percent.
7/ Not computed.
8/ Adjusted gross deficit.
9/ Adjusted gross income less adjusted gross
deficit.
10/ Salaries and wages include annuities, pensions,
and retirement pay reported in the schedule for salaries,
but exclude wages not exceeding $100 per return from
which no tax was withheld, reported as other income on
Form 1040A (see note 20).
11/ Dividends, foreign and domestic, exclude dividends not exceeding $100 per return reported as other
income on Form 1040A (see note 20) and dividends received
through partnerships and fiduciaries.
12/ Interest received includes interest on notes,
mortgages, bank deposits, and interest (before amortization of bond premium) from corporation bonds and from
taxable and partially tax-exempt Government obligations)
also, includes, when received through partnerships and
fiduciaries, partially tax-exempt Government interest,
but excludes interest, not exceeding $100 per return,
reported as "other Income on Form 1040A (see note 2 0 ) .
18/ Income from annuities and pensions is only the
taxable portion of amounts received during the year.
Amounts received to the extent of S percent of the total
cost of the annuity are reported as income for each
taxable year, until the aggregate of amounts received and
exoluded from gross income in this and prior years equals
the total cost* Thereafter, entire amounts received are
taxable and must be included in adjusted gross income.
Annuities, pensions, and retirement pay upon which tax is
withheld may be reported In salaries and wages.
14/ Rents and royalties net profit le the excess of
gross rents received over deductions for depreciation,
repairs, interest, taxes, and other expenses attributable
to rent income; and the excess of gross royalties over
depletion and other royalty expenses. Conversely, net
loss from these sources is the excess of the respective
expenses over gross income received.
15/ Net profit from business is the excess of gross
receipts from business over deductions for business expenses and the net operating loss deduction due to the
unabsorbed net operating loss from business, partnership,
and common trust funds for the 2 preceding years. Conversely, net loss from business is the excess of business
expenses and net operating loss deduction over total
receipts from business.

16/ Partnership net profit or loss excludes partially
tax-exempt interest on Government obligations, and net
gain or loss from sales of capital assets. In computing
partnership profit or loss, charitable contributions are
not deductible nor is the net operating loss deduction
allowed.
17/ Net gain or loss from sales or exchanges of
capi_T assets is the net gain or the allowable loss used
in computing adjusted gross income. Each is the result
of combining net short- and long-term capital gain and
loss and" any capital loss carry-over from the years 1944-48,
inclusive, not previously deducted. Deduction for the loss,
however, is limited to the amount of such loss, or to the
net income (adjusted gross income if tax is determined from
the tax table) computed without regard to gains and losses
from sales of capital assets, or to $1,000, whichever is
smallest.
Sales of capital assets include worthless stocks, worthless bonds if they are capital assets, nonbusiness bad debts,
certain distributions from employees• trust plans, and each
participant's share of net short- and long-term capital gain
and loss received through partnerships and common trust
funds.
18/ Net gain or loss from sales or exchanges of property other than capital assets is that from the sales of
(1) property used in trade or business of a character which
is subject to the allowance for depreciation, (2) obligations of the United States or any of its possessions, a
State or Territory or any political subdivision thereof,
or the District of Columbia, issued on or after March 1, 1941,
on a discount basis and payable without interest at a fixed
maturity date not exceeding 1 year from date of issue, and
(S) real property used in trade or business.
19/ Income from estates and trusts excludes partially
tax-exempt interest on Government obligations. (The net
operating loss deduction is allowed to estates and trusts
and is deducted in computing the distributable income.)
20/ Miscellaneous income Includes alimony received,
prises, rewards, sweepstakes winnings, gambling profits,
recoveries of bad debts or insurance received as refcnbursement for medical expenses if deduction for either was
taken in a prior year. For returns with standard deduction,
there are included $35,948,000 of wages not subject to withholding, dividends, and interest, not exceeding in total
$100 per return, reported as other income on 779,600 returns,
Form 104QA.
21/ Amount of exemption, allowed fOr purposes of both
normaTTtax and surtax, includes the $600 per capita exemptions for the taxpayer, his spouse, and each dependent, together with additional exemptions of $600 for blindness and
$600 for age 65 or over for the. taxpayer and his spouse.
22/ Payments on 1949 declaration of estimated tax, reporteToit returns, Form 1040, include the credit for overpayment of prior year's tax as well as the aggregate payments made on the declaration, Form 1040-ES. The frequency
of returns with such payments includes returns showing
credit only, dash payments only, and those showing both.
28/ Returns with itemised deductions are long-form ret u n _ 7 F o r m 1040, on which nonbusiness deductions are
itemized; long-form returns, Form 1040, with no deductions
filed by spouses of taxpayers who itemised deductions (such
spouses are denied the standard deduction); and returns
with adjusted gross deficit whether or not deductions are
Itemized.
24/ Contributions, reported on returns with itemized
deductions, include each partner's share of charitable contributions of partnerships,, but cannot exceed 15 percent of
the adjusted gross income.
25/ Interest, reported on returns with itemized deductions, is that paid on personal debts, bank loans, or mortgages, but excludes interest paid on business debts reported
in schedules for business or rent income, and interest on
loans to buy tax-exempt securities, single-premium life
insurance, or endowment contracts.
26/ Taxes paid, reported on returns with itemized deductions, include personal property taxes, State income taxes,
certain retail sales taxes, and real estate taxes except
those levied for improvements which tend to increase the
value of property. This deduction excludes Federal income
taxes; estate, inheritance, legacy, succession, and gift
taxes; taxes on shares In a corporation which are paid by
the corporation without reimbursement from the taxpayer;

- 19
Footnotes - Continued
taxes deducted in the schedules for business and rent; income
taxes paid to a foreign country or possession of the United
States if any portion thereof is claimed as tax credit; and
Federal social security and employment taxes paid by or for
the employee.
27/ Losses resulting from fire, storm, shipwreck, or
other casualty, or theft, reported on returns with itemized
deductions, are the actual nonbusiness losses sustained,
that is, the value of such property less salvage value and
insurance or other reimbursement received.
28/ Medical and dental expenses, reported on returns
with itemized deductions, paid for the care of the taxpayer,
his spouse, or dependents, not compensated by insurance or
otherwise, which exceed 5 percent of the adjusted gross
income. The deduction cannot exceed an amount equal to
$1,250 multiplied by the number of exemptions other than age
and blindness, with a maximum deduction of $2,500, except on
a joint return of husband and wife the maximum is $5,000.
29/ Miscellaneous deductions, reported on returns with
itemized deductions, include alimony payments, expenses incurred in the production or collection of taxable income or
in the management of property held for the production of taxable income, amortizable bond premium, the taxpayer's share
of interest and real estate taxes paid by a cooperative apartment corporation, and gambling losses not exceeding gambling
gains reported in income.
50/ Net income reported on long-form returns, Form 1040,
whicti~nave adjusted gross income in excess of itemized
deductions.
51/ Net deficit, reported on nontaxable returns, Form
1040, classified as returns with itemized deductions, consists
of adjusted gross deficit on short-form returns and the net
deficit on long-form returns resulting from the combination of
adjusted gross deficit and itemized deductions or from the excess of itemized deductions over adjusted gross income. There
is a net deficit on 556,510 returns of which 512,214 show adjusted gross deficit and 44,296 show adjusted gross income of
various amounts and itemized deductions of larger amounts.
52/ Nontaxable returns are those with no adjusted gross
income and those with adjusted gross income which income, when
reduced by deductions, standard or itemized, and exemptions,
results in no tax liability. The 1,280,065 nontaxable returns
with adjusted gross income and with itemized deductions include 44,296 returns with net deficit.
55/ Number of returns associated with this item is subject To sampling variation of more than 100 percent. Such
items are not shown separately since they are considered too
unreliable for general use; however, they are included in
totals. For description of sample see pages 4 and 5.
34/ Less than $500.
55/ Excludes returns, Form 1040A, with this source of
income reported as other income (see note 20).
36/ Includes 779,600 returns, Form 1040A, showing other
income consisting of wages not subject to withholding, dividends, and interest not exceeding in total $100 per return.
37/ Number of returns is subject to maximum sampling
variation of 30 to 100 percent, depending on the number in
the cell. For description of sample, see pp. 4 and 5.
38/ Number of returns is subject to sampling variation of
more TEan 100 percent and is considered too unreliable for
general use; therefore the number is not shown separately, but
is included in the totals. For description of sample, see
pp. 4 and 5.
39/ Joint returns of husbands and wives include joint returns—filed on Form 1040A even though the collector determined
the tax on the basis of separate incomes of husband and wife.
40/ Separate returns of husbands and wives include community and noncommunity income returns filed separately by
husband and wife; but do not include joint returns, Form 1040A,
"herein the collector determined the tax on the basis of
separate incomes of husband and wife. Unequal numbers of returns for men and women result from insufficient information
to identify returns of married persons and from the use of
samples as a basis of estimating data.
41/ Number of returns is subject to sampling variation of
more TEan 100 percent. The number of returns and data associated with such returns are not shown separately since they are
considered too unreliable for general use; however, they are
included in totals. For description of sample, see pp. 4 and 5.

42/ Total income classes are based on the amount of
totalThcome tabulated for taxable fiduciary returns (see
note 50).
43/ Dividends, foreign and domestic, exclude dividends
received through partnerships and other fiduciaries.
44/ Interest received on bank deposits, notes, corporation "Bonds, taxable and partially tax-exempt Government obligations, and such Government interest received through
partnerships and other fiduciaries.
45/ Trade or business profit or loss is the current
year net profit or loss. (Net operating loss deduction is
reported in miscellaneous deductions.)
46/ Partnership net profit or loss excludes taxable and
partiaTly tax-exempt interest on Government obligations, and
net gain or loss from sales of capital assets. In computing
partnership profit or loss, charitable contributions are not
deductible nor is the net operating loss deduction allowed.
47/ Net gain or loss from sales or exchanges of capital
assets is the net gain or the allowable loss used in computing the net income taxable to fiduciary. Each is the result
of combining net short- and long-term capital gain and loss
and any capital loss carry-over from the years 1944-48, inclusive, not previously deducted. Deduction for the loss,
however, is limited to the amount of such loss, or to the
net income computed without regard to gains and losses
from sales of capital assets, or to $1,000, whichever is
smallest.
Sales of capital assets include worthless stock, worthless bonds if they are capital assets, nonbusiness bad debts,
certain distributions from employees' trust plans, and each
participant's share of net short- and long-term capital gain
and loss from partnerships and common trust funds.
48/ Income from other fiduciaries excludes taxable and
partiaTly tax-exempt interest on. Government obligations.
49/ Miscellaneous income includes taxable income from
sources other than those tabulated.
50/ Total income is the amount resulting from the combination of profit or loss from rents and royalties, from
trade or business, from partnerships, from sr.les or exchanges
of property, together with income from dividends, interest,
other fiduciaries, and from miscellaneous income. (Total
income is an approximation of the adjusted gross income tabulated for individual returns.)
51/ Interest is that paid on debts, mortgages, and bank
loans; it does not include interest reported in schedule for
business or rent income, nor interest on indebtedness incurred to buy tax-exempt securities, single-premium life
insurance, or endowment contracts.
52/ Taxes paid include State income taxes, certain retail sales taxes, and real estate taxes except those levied
for improvements which tend to increase the value of property.
This deduction excludes Federal income tax, estate, inheritance,
legacy, succession, and gift taxes; taxes imposed upon shares
in a corporation which are paid by the corporation without
reimbursement from the taxpayer; taxes deducted in the schedules
for business and rent income; and income taxes paid to a
foreign country or possession of the United States if any
portion thereof is claimed as a tax credit.
53/ Miscellaneous deductions include the net operating
loss "Seduction, losses resulting from fire, storm, shipwreck, or other casualty or from theft, not compensated by
insurance or otherwise, and other authorized deductions
except interest and taxes.
54/ Balance income is the excess of total income over
total~3eductions; that is, income before the amount distributable to beneficiaries is deducted.
55/ Net income taxable to fiduciary is the net income remaining in the hands of the fiduciary after deductions for
allowable expenses and amount distributable to beneficiaries.
56/ Amount of exemption is $600 for each estate and $100
for each trust, in the form of a credit against net income
for purposes of both normal tax and surtax.
57/ Tax liability after tax credits relating to income
tax paid at source on interest from tax-free covenant bonds
and to income tax paid te a foreign country or possession
of the United States.

- a•

tm

§* ft.

«r

6kk

i% 4,

|

yyim m m;ym yyyy,

t* tSMi i^tini iiitf gvm $mmm§ yittfr

tti m_la§ «t *si§it*ie JMt «f turn V_t«if A * «r i#a*f flf »*#*§*
3MttlA% , il_£jrft l_y_# ____#4i_$ii 'HA l__M_ifc_* __^-ffi_ifc )___£__£__- _»_&1 %£m^ 4m™
^*%&&tyg&W

'w™plWP!liBw^1^^»«^pf^^ jf- ,'!«W?wil»1*W^P

-«(PWr *6*PgK4fF^lW?^pF

^gPH^P^^W i4Q*&&*4r

At mmmmmi

m§m

mamm mwmmmm jwi$f m is

£$ iff I M I M «t «i* # * «* «_«

"^Wll

^P?w|5j^wP

«B*»»

• 2 -

f ^Ewlopes which will he applied by Federal Reserve tan&a mr Mrmmbms

on

application therefor.
Others than barring institution? will not be permitted to mbmit

tenders

exempt for their out* account. tmmdmm will ho rmmmlrmd without deposit from
incorporated bank© and trust companies* and from reaponeifele and recognised
dwtwftwr* in investment sector it lee. tmmdmm

from ©there mmt

mm a&comymied

mj pmymmnt of 2 percent of tte tmmm mmommt of trt&aurr biil* applied for, nnlava th© tsrelera are accosspanied by an ©xpress guaranty of paysent by mm
incorporated bmmk mr trust coi^saiw'
Iy?«tse<Siately after the closing hour9 tetsdars will be opened at the federal
Mmmrve Banks mmd Branches, followiiif which public announcement will be made
by the Secretary of the trmmmmry ot the ammmt and priee rmmam of accepted
bids. Tfe#«# TObmittinf tmmdmm will be advised ot the acceptance or rejection
thereof. Th© Secretary of the ffeeeewy expressly reserves the right to accept
or reject a^y or all tenders, in whole or ia part, and his set ion in any such
reepeet shall be filial. Stj&Jeet to thmm r«servati©ne. non-c^petitive tea*
dmm

tor $2Q09Qm

or leas without etmtmd prime trmm any one bidder will bm

accepted in full at the mwrnrmgrn price (in three deei»ala} et accepted cospeti*
tivm bids.' Bmttlmmmt

tor accepted tender* ^ accordance with the bids w&mt

be ?md© or completed at the Federal legend Bask in caah or other taedlfttely
available f w t a o® *tat j f lfff)» p w i i « i f lMm«tr 9 any qualified depositary
will be permitted to sake pm^mmmt by credit in its Treasury fax ami Loan
Accent for Treaaury bille allotted to it for itealf and its cuetas^re up to
any mount for which it shall be qualified in excess of existing deposit a when
mo notified by the fmdmtml nm*mr*m lank ©f its ©istriet.
the into®*® derived from f reaewy billa, whether interest or gain frow
the sale or other disposition of the hills, shall not have any exmytion, mm

Draft Press Release

In compliance with provisions of the Tariff Act,
^mJmmi^uZ^-'tM,-

A:,-^e»-s^/s.A-=v*^,y

Treasuir>^Q_ay apOTOV^t^'issuance by the Commissioner
of Customs of an order levying countervailing duties on
imports of wpol tpps from Uruguay.
ier)fapi
'approved..
The orde
Tariff Act of 1930.

^Section 303 of the

The order gives notice "that wool

tops imported directly or indirectly from Uruguay xxxxxx
will be subject to payment of countervailing duties equal
to the net amount of any bounty or grant determined or
estimated to have been paid or bestowed upon their
exportation from Uruguay".
The order*is being issued after full consideration
by the Treasury of all relevant factors^

he/re^fe£?_t>n of this
bg,o*yi

a

same products^

domestic sales of the
it was concluded that exports of W © % 1 tops

from Uruguay to the United States in effect receive the
benefit of a bounty.
The decision of the Treasury in accordance with standard
>rocedure will be effective 30 days after publication

kyyy
feek in the Federal Register.
Collectors of customs will be required to collect
countervailing duties of 4g£>percent in addition to all other
duties and charges applicable to imports of dutiable wool tops

/

I * ey

y M

4^- I /J
In compliance with provisions of the Tariff Act, Secretary
of the Treasury George ^. Humphrey today approved issuance by

Ov

A

<- *

the, Commissioner of Customs 0 f an order levying countervailing
duties on imports of wool tops from Uruguay.
—

>

The order waw approved in conformance with Section 303

of the Tariff Act of 1930. The order gives notice "that wool
tops imported directly or indirectly from Uruguay xxxxx will
be subject to payment of countervailing duties equal to the net
amount of any bounty or grant determined or estimated to have
been paid or bestowed upon their exportation from Uruguay."
The order is being issued after full consideration by the
treasury of all relevant factors. It was concluded that exports
of wool tops from Uruguay to the United ^tates in effect
receive the benefit of a bounty.
The decision of the Treasury in accordance with standard
procedure will be effective 30 days after publication
la4«E-J_i±S-.week,Jtn, the federal-Register.
Collectors of customs will be required to collect
countervailing duties of

18 percent in addition to all other

duties and charges applicable to imports of dutiable wool
tops from Uruguay.

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

IMMEDIATE RELEASE,

Wednesday, May 6, 1953
i—,—^JI.

H-113

Sec-eSra^?1^11^ With Pulsions of the Tariff Act,
"Xyyyy Jy ^^W George M. Humphrey today approved
ievyw co^terv^ilin? f^*"™* °" Customs of* aTXXZl

Uruguay.

E 16S

°n lmP°rts =>f wool tops from

n~~ Slhe Secr"etary announced to the House Ways ard Me?n<.
Committee on Monday that this action would be laken.)
of tXXiyyfyyyyvi-T'1 £? conformance with Section 303
01 trie Tariff Act ox J.9^0. The order clvas notice "th=.<r
wool tops imported directly or indirectly from Uruguay
eaual toSthie0t-t0 the P^ent of countervails duties

or estimated ttXTT °f ^

bounty or

S^nt detained

or estimated to have been paid or bestowed uoon t-hPiiexportation from Uruguay."
^owea upon then
he r
e
ued after ful1
by thl y XZy^y y y
consideration
oy trie Treasury of ail relevant factors It was
f m 1 tops i>om u

Sfstatef yyi°yyy

?

™^ *> «*

united States m effect receive the benefit of a bounty.
The decision of the Treasury in accordance wi<-h
standard procedure will be effective |5 aXl after
publication in the next issue of the week^Treasury Decision
Collectors of customs will be reauired to coll fpfSfIS1 £*£«" ?:c^ff-nt in ad^ition^o'a?! other
tops from Uruguly? app^CaDle to lffiPorfcs °f dutiable wool
0O0

34

- 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 19l|l, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. 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. I4I8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

- 2 i_-__fe

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face* amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final, Subject to these reservations, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (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 Way Uk, 19$3 , in cash or other immediately available
5_qc

funds or in a like face amount of Treasury bills maturing

May 1**» 19$3
m

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. May 7* 1953

»

The Secretary of the Treasury, by this public notice, invites tenders
for $ 1.500,000,000 , or thereabouts, of 91 -day Treasury bills, for

S£—

-w~

cash and in exchange for Treasury bills maturing

May lk9 1953

—

, in

—55

the amount of $l,5QO»k75«@QQ , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated May lk9 1953 , and will mature

—

-35

~

August 13, 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
Daylight Saving
closing hour, two o'clock p.m., Eastern/_j____a__t time, Monday, May 11, 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 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 Branche
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, May 7, 1953.

WASHINGTON, D.C.

H-114

The Secretary of the Treasury, by this public notice, invites
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills,
for cash and in exchange for Treasury bills maturing May 14, 1953;
in the amount of $1,500,475,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated May lk9 1953, and will mature
August 13, 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 Daylight Saving
time, Monday, May 11, 1953. Tenders will not be received at the
Treasury Department, VJashington. Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99-925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and
price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive
tenders for $200,000 or less without stated price from any one
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive .bids. Settlement for accepted
Federal
tenders Reserve
in accordance
Bank on
with
May the
14,bids
1953,
must
in be
cash
made
or other
or completed
immediately
at the

- 2 available funds or in a like face amount of Treasury bills maturing
May 14, 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 of other disposition of the bills, shall not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills shall not have any special treatment, as such, under
the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bills shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or- redemption at maturity
during the taxable year for which the return is made, as ordinary
gain or loss.
Treasury Department Circular No. 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.
0O0

38

Series J and K Savings Bonds will continue on sale at
Federal Reserve banks and branches and at the Treasury Department.

QQ

*_

Secretary of the Treasury Humphrey today announced that
$y/*, 4 7 / / ^ ©

of the new 3i$ Treasury bonds of 1978-83 have

been allotted to holders of Series F and G- Savings Bonds
maturing May through December 1953 who elected to take advantage
of the exchange offering, which terminated April 30.
Allotments were divided among the several Federal Reserve
Districts and the Treasury as follows:
(allotment table)
Secretary Humphrey also announced Savings Bonds sales for
the month of April. Sales of Series E and H bonds were
$351,300,000 and redemptions were $361,100,000. April sales of
all series were $382,700,000 and redemptions of all series
were $426,700,000.
The promotional activity of the Savings Bonds Division
of the Treasury is new being concentrated exclusively on the
sale of Series E and H Savings Bonds. These bonds constitute
the heart of the Treasury program to encourage thrift throughout
the Nation and to place more of the public debt in the hands of
(< y... \ \ • '• ACkm*~frJLm-

millions of investors. There are almost $36 billion of Series E and
bonds outstanding at the present time and the total is growing
steadily.

U ~ I{*

FOB B_im>IATg HEL_ASE,
fridmy, May S f 1953*
'x \

§mmrmtmry ot the 'trmmmmry Hutsphrey today announced that &i*l8T67l,50Q
of the new 3 - 1 A ^ ftpeaamry loads of _97&*63 have beam allotted to holders of Series if
and D savings bonds maturing May through December 1953 *ao sleeted to take adventegt
of the exchange offering whieh terminated on ^pril 30.
allotments vers divided among the several Federal Beserve Districts and the
Treasury as follows:
Federal Reserve
Mstrlet ______

Series F bonds

Series 0 bonds

•Fatal
Exchanges

!\
\

< M M M M M M p m M M M H W M B i

Boston
Rev York
Philadelphia
Cleveland
Atlanta
Chicago
St. Louis
Kansas City
Bellas
San Franeiseo
Treasury
Cash Differences

$ 3,057,100
10,939,100
3,068,500
2,1*1*9,700
1,622,600
85^,850
5,172, ta>
81*5,775
851,500
688,200
U76,700
1,727,600
260,500

$ 61,605,700
137,1^1,600
1*7,073,700
28,052,200
13,106,800
5,80i*,200
37,569,300
12,115,100
9,30>s900
7,377,500
k, 701*, 600
19,866,300
2,051*, 000

$ 6k, 662,800
11*8,080,700
50,077,200
30,501,900
li*, 729,1*00
6,659,050
1*2,7^1,700
12,960,875
10,156,1*00
L 8,065,700
5,181,300
21,593,900
2,31^,500

$31,9^9,525

$385,775,900

$1*18,671,500

J'lW:
i * +-UA.

TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Friday, May 8, 1953.

WASHINGTON, D.C.
/ •

H-115

Secretary of the Treasury Humphrey today announced that
$418,671,500 of the new 3\% Treasury bonds of 1978-83 have been
allotted to holders of Series F and G Savings Bonds maturing May
through December 1953 who elected to take advantage of the exchange
offering, which terminated April 30.
Allotments were divided among the several Federal Reserve
Districts and the Treasury as follows:
Federal Reserve Series F bonds Series G bonds Total
District
Exchanged
Exchanged
Exchanges
Boston $ 3,057,100 $ 61,605,700 $ 64,662,800
New York
10,939,100
137,141,600
148,080,700
Philadelphia
3,003,500
47,073,700
50,077,200
Cleveland
2,449,700
28,052,200
30,501,900
Richmond
1,622,600
13,106,800
14,729,400
Atlanta
854,850
5,804,200
6,659,050
Chicago
5,172,400
37,569,300
42,741,700
St. Louis
845,775
12,115,100
12,960,875
Minneapolis
851,500
9,304,900
10,156,400
Kansas City
688,200
7,377,500
8,065,700
Dallas
476,700
4,704,600
5,181,300
San Francisco
1,727,600
19,866,300
21,593,900
Treasury
260,500
2,054,000
2,314,500
Cash Differences
-__
946,075
TOTAL $31,949,525 $385,775,900 $418,671,500
Secretary Humphrey also announced Savings Bonds sales for the
month of April. Sales of Series E and H bonds were $351,300,000 and
redemptions were $361,100,000. April sales of all series were
$382,700,000 and redemptions of all series were $426,700,000.
The promotional activity of the Savings Bonds Division of the
Treasury is now being concentrated exclusively on the sale of
Series E and H Savings Bonds. These bonds constitute the heart of
the Treasury program to encourage thrift throughout the Nation and
to place more of the public debt in the hands of millions of
individual investors. There are almost $36 billion of Series E and
H bonds outstanding at the present time and the total is growing
steadily.
Series J and K Savings Bonds will continue on sale at Federal
Reserve banks and branches and at 0O0
the Treasury Department.

42

^{-i/(,

IILR*AB Mouotio mmmmrn,
fmmdmy, m y 22, 19$3*
fa* mmmtmwy

of mm treasury announced last evening that tfes tenders for

§1,500,000,000, m -yiereabout®, of 9%*d®y tmmtmy
mature iugast X}9 19$3, istiioh laere offered mWaj

bills to b® dated mj Hi and to
1* tmmrn opened at the Federal Reserve

Banks on May 11.
fh© details of this issue are m follows $
total anpHei for - #2,230,737,000
total aeeepted
- l9$OQ93m99tW

flnoludea $262,31*9,000 entered on a
nQn-coEipetitiire basis and accepted In
full at the average arice shown beloe)
ivsrage prime
~ $P«b26 i^ulvalsnt fmte of ilsoount approx. 2*273$ per annua
Bangs of assented ooapetiilve bids* •
Ugh
liOW

- 99*kk3 Equivalent mtm of dlsoount approx* 2.201$ per annum
n
•* 99.1$f
••*•
s
»
•
»
Z92W
*
(11 ©extent of the momt

bid im at the low prtoe ..was aoeentai)

Federal Reserve
Matfftei

total
Applied fair

total
Accepted

Boston

$

$

tmtmtk
Philadelpiiia
Clewland
Richmond
Atlanta
Chisago
St. %m&m
MinBeapQllsKansas City
Dallas
mm Francisco

16,811,000
l9$3$,9'9390m
14,223,00®

90*863* 000

|l»tJOf787#WD

11,500,369,000

3i,m9mo

13,297,000
31,236,000
299,550,000

h9*o%h9om

13,383,000
6$9261,000

3k,27i,om
*tOUli

y^

i5,??a,ooo
953,693,000
26,023,000
29,136,000
10,1*07,000
27,1*86,000
221,037,000
35,711*, 000
12,773,000
55,396,000
3b,O71»O0O
TS,8O6tO00

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS$
Tuesday, May 12, 1953.

****
H-116

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 May 14 and_to.mature August 13, 1953, which were offered
on May 7, were opened at the Federal Reserve Banks on May 11.
The details of this issue are as follows:
Total applied for - $2,230,787,000
Total accepted
- l,t}00,369,000 (includes $262,349,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.426 Equivalent rate of discount approx.
2.271$ per annum
Range of accepted competitive bids:
High - 99.443 Equivalent rate of discount approx.
2.204$ per annum
Low
- 99.423 Equivalent rate of discount approx.
2.283$ per annum
(11 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Accepted

Boston

& 16,812,000 $ 15,772,000
New York
1,535,993,000
Philadelphia
44,323,000
Cleveland
32,886,000
Richmond
13,297,000
Atlanta
31,236,000
Chicago
299,550,000
St. Louis
49,014,000
Minneapolis
13,383,000
Kansas City
69,261,000
?allas
34,271,000
San Francisco
90,861,000
TOTAL $2,230,787,000 $1,500,369,000
0O0

953,698,000
26,023,000
29,186,000
10,407,000
27,486,000
22i;037,000
35,714,000
12,773,000
55,396,000
34,071,000
78,806,000

- 6 wMei* are cooperating so vigorously in the sale of tnese
bonds.

It is largely through all of your voluntary efforts

that we have #36 billion of E and H bonds outstanding today.

- 5always be at the end of the queue, and so fdreed into
inflationary bank financing.
Third, the free rider, accustomed to pegged markets,
had a wholesome lesson, but must be more carefully screened
the next time.
m^fv As to the timing of the issue, the question has been
raised whether this long-term financing by the Treasury
may not be a depression influence at a time when there Is
danger of deflation.
While there have been declines in certain agricultural
prices, and here and there other weak spots in the economy,
the fact remains that unemployment is at a minimum, the
index of production made a new high record in the latest
reported month, personal income for the nation has reached
a new high rate of $282,500,000,000 a year, and the cost of
living is within one percent of its all-time high. Deflation
is as yet a guess, not a reality*
The rest of the money we meed before June 30 we are
getting by selling more Treasury bills. Considerable
corporation money is available to buy these bills, and we
hope a relatively small part will go to the banks.
One market not congested is that for $« s. Savings Bonds.
They constitute one of the best ways of borrowing money for
the Government. They are good for the borrower, too. The
Treasury is grateful to savings banks and other organizations

46

- 4found we could sell some long-term bonds—about a
billion dollars worth—at a 3i$ rate. Me did not make the
rate; that was set by the market. The reason it was as
high as 3i% is that last year and this year more people
were trying to borrow long-term money than ever before in
the history of the country. Rates have been rising for
more than two years. The old law of supply and demand is
forcing interest rates higher.

Also, the Federal Beserve

System, since it partially regained its freedom in 1951,
has^ been keeping the money market tight.
This financing has been breaking new ground. The
3§$ bond was the first long-term marketable Issue since
19%5, and the first without Federal Beserve price pegs

Ai
M

for a much longer period.
Three conclusions may be drawn. First, there is
available a substantial amount of investment money which

va .
can be reached with a bond carrying a competitive interest

Mi

rate.

h

Even in the bill market the number of nonbank buyers

has risen with the rate.
Second, the long-term market has been overloaded
because too many people have been trying to borrow at the
same time. A delay of some projects would be wholesome
both for the market and the business situation. Time will
be needed for absorption of the new issues. In the meantime

s
X

the Treasury will proceed cautiously, though it should not

47

- 3The sale of long-term bonds to investors, of course,
carries a somewhat higher interest rate than the sale of
short-term securities to banks. But this cost will be
offset many times over if it lessens the risk of inflation—
higher prices for all—or deflation, which has often meant
depression. It should be noted that the larger interest
payments which the Treasury will be making on these bonds
will be going principally to Insurance companies, savings
banks, pension funds and individuals, and will benefit, in
this way, millions of families who have been damaged by
inflation and by inadequate return on their savings because of artificially low money rates.
These, then, are the principles of the Treasury in
its new program of financing. I can perhaps best illustrate
how these principles work by telling you why and how we
decided to issue a billion dollars of 30-year 3i£ bonds.
To finance the deficit up to June 30, we needed at
least two billion dollars of new money. Ve had two choices.
We could have borrowed it all from the banks—on short term
at fairly low rates.' That would have increased the money
supply—run the risk of further Inflation—further
cheapening of the dollar, with all of us paying more for
the things we buy.
The other choice was to try to borrow from investors
outside the banks. We explored that carefully.

We canvassed

the insurance companies, the savings banks, the pension fundspublic and private—and other possible investors.

48

- 2 These simple principles constitute the bases for the
program of the Treasury Department for financing the public debt. It was the violation of these principles by
the previous administration which was one of the major
causes of inflation in the cost of living, which cut the
buying power of the dollar in half since Just before
World War II. The policy of financing the government by
placing short-term securities in the banks and then calling
upon the Federal Reserve System to support the price of
government securities in the market had much the same
effect as printing so much money. It made it impossible
for the Federal Eeserve System to exercise its statutory
duties towards stabilising the economy for the benefit
of the people.
The first rule of Treasury policy today is that the
Federal Reserve System shall be tree to exercise its policy
without interference. This means, of course, that the
Treasury must sell its securities in the market, at the
going rate of interest, and not at an artificial rate
supported by the Federal Reserve System.
The second rule is that more government securities
must be sold to nonbank investors. Too much of the debt
is now concentrated in the banks. This cannot be changed
abruptly; but over a period, gradually, it is proposed to
distribute the debt more widely as a necessary step for
economic stability.

A
Bank borrowing may be cheap in terms of interest cost to
the Treasury. But it is exceedingly expensive torn the country as , ,
a whole, as all Americans who have been hurt by inflationarys
J^mmy
in the past decade should know.
/
The reasons are simple bat deserve spelling out.
then the treasury sells short-term securities to banks the
money supply is increased by the amount of the borrowing. There
is more money — but there is no increase in the things people can
buy for their own use. Borrowing outside of the banks, on the
other hand, reaches genuine savings. Mommy which might have gone
into other investment outlets goes instead into Governments. The
Treasury competes for available loan funds rather than creating
_»

*>***.

/This avoids inflation —
and shelter from going up.

it keeps the price of food, clothing,

50

REMARKS BY W. RAsDOLPH BUR0ESS,
DEPUTY TO THE SECI|gTARY OF TH_t TREASURY, BI^ORE
MATIOHAL ASSOCIATIOH OF MOTUAL §AVTHGS BARKS
*

Shoreham Hotel, Washington, D. C.
12:30 p.m., E.D.T. Way 12, 1953
The question of how governments should borrow money
Is many centuries old.

Should they borrow from investment

bankers, as the kings did from the Rothschilds; should
they borrow from the banks; or should they go to the
people, as in our great War Loan Drives?

Should they 'rig

the market" so as to borrow very cheaply?
The new Administration is fortunate in having for its
guidance two recent Congressional inquiries into this
subject by subcommittees of the Joint Committee on the
Economic Report. The subcommittee of 1950 was headed by
Senator Paul Douglas; that of 1952 by Congressman Wright
Patman.
Both committees agreed on certain conclusions. One
was that the Federal Reserve System should be freed "to
restrict credit and raise interest rates for general
stabilization purposes—even if the cost should prove to
be a significant increase in service charges on the federal
debt."
The reports and the testimony brought out the fact that
when the Treasury meets a deficit by borrowing from the
banks, it is inflationary—creates more money—tends to
raise the cost of living.

Q-^-^C^

, /

/ j -^

51
REMARKS BY W. RANDOLPH BURGESS,
DEPUTY TO THE SECRETARY OF THE TREASURY,
BEFORE NATIONAL ASSOCIATION OF MUTUAL SAVINGS BANKS
Shoreham Hotel, Washington, D. C.
12:30p.m., E.D.T. May 12, 1953
The question of how governments should borrow money is many
centuries old. Should they borrow from investment bankers, as
the kings did from the Rothschilds; should they borrow from the
banks; or should they go to the people, as in our great War Loan
Drives? Should they "rig the market" so as to borrow very
cheaply?
The new Administration Is fortunate in having for its guidance
two recent Congressional inquiries into this subject by subcommittees of the Joint Committee on the Economic Report. The
subcommittee of 1950 was headed by Senator Paul Douglas; that of
1952 by Congressman Wright Patman.
Both committees agreed on certain conclusions. One was that
the Federal Reserve System should be freed "to restrict credit and
raise interest rates for general stabilization purposes -- even if
the cost should prove to be a significant Increase in service
charges on the federal debt."
The reports and the testimony brought out the fact that when
the Treasury meets-a deficit by borrowing from the banks, it is
inflationary — creates more money -- tends to raise the cost of
living.
Bank borrowing may be cheap in terms of interest cost to the
Treasury. But it is exceedingly expensive for the country as
a whole, as all Americans who have been hurt by inflationary prices,
in the past decade should know.
The reasons are simple but deserve spelling out.
When the Treasury sells short-term securities to banks the
money supply is increased by the amount of the borrowing. There
is more money — but there is no increase in the things people can
buy for their own use. Borrowing outside of the banks, on the
other hand, reaches genuine savings. Money which might have gone
into other investment outlets goes instead into Governments. The
Treasury competes for available loan funds rather than creating
new money.
H-117

52
- 2 This avoids inflation -- it keeps the price of food, clothing,
and shelter from going up.
These simple principles constitute the bases for the program
of the Treasury Department for financing the paiblic debt. It was
the violation of these principles by the previous administration
which was one of the major causes of inflation in the cost of
living, which cut the buying power of the dollar in half since
just before World War II. The policy of financing the government
by placing short-term securities in the banks and then calling
upon the Federal Reserve System to support the price of government
securities in the market had much the same effect as printing so
much money. It made it impossible for the Federal Reserve System
to exercise its statutory duties towards stabilizing the economy
for the benefit of the people.
The first rule of Treasury policy today is that the Federal.
Reserve System shall be free to exercise its policy without interference. This means, of course, that the Treasury must sell its
securities in the market, at the going rate of interest, and not at
an artificial rate supported by the Federal Reserve System.
The second rule is that more government securities must be
sold to nonbank investors. Too much of the debt is now concentrated
in the banks. This cannot be changed abruptly; but over a period,
gradually, it is proposed to distribute the debt more widely as
a necessary step for economic stability.
The sale of long-term bonds to investors, of course, carries
a somewhat higher interest rate than the sale of short-term
securities to banks. But this cost will be offset many times over
if it lessens the risk of inflation -- higher prices for all -- or
deflation, which has often meant depression. It should be noted
that the larger interest payments which the Treasury will be making
on these bonds will be going principally to insurance companies,
savings banks, pension funds and individuals, and will benefit, in
this way, millions of families who have been damaged by inflation
and by inadequate return on their savings because of artificially
low money rates.
These, then, are the principles of the Treasury in its new
program of financing. I can perhaps best Illustrate how these
principles work by telling you why and how we decided to issue
a billion dollars of 30-year 3\% bonds.
To finance the deficit up to June 30, we needed at least two
billion dollars of new money. We had tvio choices. We could have
borrowed it all from the banks -- on short term at fairly low rates.

That would have increased the money supply — run the risk of
further inflation — further cheapening of the dollar, with all of
us paying more for the things we buy.
The other choice was to try to borrow from investors outside
the banks. We explored that carefully. We canvassed the insurance
companies, the savings banks, the pension funds -- paiblic and
private — and other possible investors.
We found we could sell some long-term bonds — about a billion
dollars worth — at a 3\% rate. We did not make the rate; that
was set by the market. The reason it was as high as 3\% is that
last year and this year more people were trying to borrow longterm money than ever before in the history of the country. Rates
have been rising for more than two years. The old law of supply
and demand Is forcing interest rates higher. Also, the Federal
Reserve System, since it partially regained its freedom in 1951,
has been keeping the money market tight.
This financing has been breaking new ground. The 3h% bond
was the first long-term marketable issue since 1945, and the
first without Federal Reserve price pegs for a much longer period.
Three conclusions may be drawn. First., there is available
a substantial amount of Investment money which can be reached with
a bond carrying a .competitive Interest rate. Even in the bill
market the number of nonbank buyers has risen with the rate.
Second, the long-term market has been overloaded because too
many people have been trying to borrow at the same time. A delay
of some projects would be wholesome both for the market and the
business situation. Time will be needed for absorption of the
new issues. In the meantime the Treasury will proceed cautiously,
though it should not always be at the end of the queue, and so
forced into inflationary bank financing.
Third, the free rider, accustomed to pegged markets, had
a wholesome lesson, but must be more carefully screened the next
time.
As to the timing of the issue, the question has been raised
whether this long-term financing by the Treasury may not be
a depressing influence at a time when there is danger of deflation.
While there have been declines in certain agricultural prices,
and here and there other weak spots in the economy, the fact
remains that unemployment is at a minimum, the index of production
made a nevi high record in the latest reported month, personal
income for the nation has reached a new high rate of
$2aa,500,000,000 a year, and the cost of living is within one
percent of its all-time high. Deflation is as yet a guess, not
a reality.

- 4-

54

The rest of the money we need before June 30 we are getting
by selling more Treasury bills. Considerable corporation money
is available to buy these bills, and we hope a relatively small
part will go to the banks.
One market not congested is that for U. S. Savings Bonds.
They constitute one of the best ways of borrowing money for the
Government. They are good for the borrower, too. The Treasury
is grateful to savings banks and other organizations which are
cooperating so vigorously in the sale of these bonds. It is
largely through all of your voluntary efforts that we have $36
billion of E and H bonds outstanding today.

0O0

J>3

XJ I ry
mmim wu_«>aL

nr

Monday, n*j 11, Vff,
Secretary of the Treasury Ifwphrey mmmmmmd today teat beginainf
on Hay 15 * mm serfs® mt trmmm.ry Savings iotas will be available tot
purchase at the Federal Mmmmrm Mmim and Bransfees and at the Treasury
INqpartaent, the »*w notes will feplaea tfeese pfssantly on sale, the
tome of wtaieb wer# set Hay 10, lt$l» the mm mtmm willteesimilar
in all respects except as to maturity and interest rate* Their maturity
will bs tmo years instead of the present three y»ars# The agevexlsftte
interest rate will range from ? 4 s f per annus if held for six eemthsj
t© t,33* for ens yearj to S J & l fsr eighteen seas*** and t© %.&?$ it
held for the full two years to nstnrlty*
treasury favin*;* iotes &m issued primarily to provide a seonrlfcy
in which corporation® and otbtr taxpsysrs can invest their tarn reserves
a® they aec_»slate daring the year, fkeee nsnHssrketable notes are
also etilised extensively by corporations for the invei^eent of ether
short*ter» funds* In addition, the Xrsasuty issues Tax Astieipatiea
bills f « « tfse to tise to provide a short-tarn sesurity tmr those
corporation* preferring tiarietable issuer for the ineeetseet of their
taa- reserves.
Bimm the heldsrs ef savings notes hm® the privilege ©f using
thee for tax payseate9 or leaeeaiae, thee for sash at any ttee after
holding them for fear seethe, the rate on the mm notes is
lower than the current rat® mm short-tars xarketeble Geveivsest
seearitiss.
The text ef the eltleial eirswlar follows i

TREASURY DEPARTMENT
Information Service

IINGTON, D.C.
KM.'\J

IMMEDIATE RELEASE,
Monday, May 11,1953.

H-118

Secretary of the Treasury Humphrey announced today that
beginning on May 15 a new series of Treasury Savings Notes will be
available for purchase at the Federal Reserve Banks and Eranches
and at the Treasury Department. The new notes will replace those
presently on sale, the terms of which were set May 10, 1951. The
new notes will be similar in all respects except as to maturity
and interest rate. Their maturity will be tvio years instead of
the present three years. The approximate interest rate will range
from 2.16$ per annum if held for six months; to 2.33$ for one
year; to 2.'4l$ for eighteen months, and to 2.47$ if held for the
full two years to maturity.
Treasury Savings Notes are issued primarily to provide
a security in which corporations and other taxpayers can invest
their tax reserves as they accumulate during the year. These nonmarketable notes are also utilized extensively by corporations for
the investment of other short-term funds. In addition, the
Treasury issues Tax Anticipation bills from time to time to provide
a short-term security for those corporations preferring marketable
issues for the investment of their tax reserves.
Since the holders of savings notes have the privilege of using
them for tax payments, or redeeming them for cash at any time after
holding them for four months, the rate on the new notes is somewhat The
lower
than
rate
on short-term
text
ofthe
thecurrent
official
circular
follows:marketable Government
securities.

£7
UNITED STATES OF AMERICA
TREASURY SAVINGS NOTES
Series B

1953
Department Circular No. 922

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, May 11, 1953.

Fiscal Service
Bureau of the Public Debt
Subpart
A
B
C
D
E
F
G

Offering of Notes.
Description of Notes.
Purchase of Notes.
Presentation in Payment of Taxes.
Cash Redemption at or Before Maturity.
Payment or Reissue to Other Than Inscribed
Owner.
General Provisions.
Subpart A:

OFFERING OF NOTES

Sec. 33k.l. The Secretary of the Treasury, pursuant to the authority of
the Second Liberty Bond Act, as amended, offers for sale to the people of the
United States, at par and accrued interest as provided in Section 33^.12 hereof,
an issue of notes of the United States designated Treasury Savings Notes,
Series B, which notes, if inscribed in the name of a Federal taxpayer, will be
receivable as hereinafter provided at par and accrued interest in payment of
income, estate and gift taxes imposed by the Internal Revenue Code, or laws
amendatory or supplementary thereto. The notes may also be redeemed for cash
at par and accrued interest, with certain exceptions applicable to banking institutions, as provided in Section 33h.l6 hereof.
Sec. 33U.2. Withdrawal of Series A Notes.—The sale of Treasury Savings
Notes, Series A, offered under Department Circular No, 86*9 > dated May 10, 195l,
is hereby terminated at the close of business May lk9 1953.
Sec. 331;.3. Duration of offer.—The sale of notes of Series B offered by
this circular will begin on May 15, 1953, and will continue until terminated
by the Secretary of the Treasury.
Sec. 33^.1*. Definitions.—(a) The word "month" as used herein means the
period from and including the l5th day of any one calendar month to but not including the 15th day of the next succeeding month.
(b) The words "issue date" mean the date as of which a note is issued and

- 2 -

Smf Km*

will always be the 15th day of a calendar month.
(c) The words "interest accrual date" or "accrual date" mean the date upon
which a month's interest accrues on a note, the first accrual date being the
l5th day of the calendar month next following the issue date.
Subpart B: DESCRIPTION OF NOTES
Sec. 33^.5. General.—Treasury Savings Notes, Series B, will in each instance be dated as of the 15th day of a calendar month. The issue date will
he determined by the day of the month on which payment at par and accrued interest, if any, is received and credited by an agency authorized to issue the
notes. For example, payment received and credited on any day during the period
from and including May 15, 1953, to and including June 14, 19$3, would result
in the issue of notes dated May 1$9 1953. They will mature two years from that
date and may not be called by the Secretary of the Treasury for redemption
before maturity. All notes bearing issue dates within any one calendar year
shall constitute a separate series indicated by the letter "B" followed by the
year of maturity. At the time of issue the issuing agency will inscribe on the
face of each note the name and address of the owner, will enter the issue date
and will imprint its dating stamp (with current date). The notes will be issued
in denominations of $100, $500, $1,000, $5,000, §10,000, $100,000, $500,000 and
$1,000,000. Exchange of authorized denominations from higher to lower, but not
from lower to higher, may be arranged at any agency that issues Treasury Savings
Notes, Series B.
%
Sec. 33^.6. Acceptance for taxes or cash redemption.—If inscribed in the
name of an individual, corporation, or other entity paying income, estate or
gift taxes imposed under the Internal Revenue Code, or laws amendatory or supplementary thereto, the notes will be receivable, subject to the provisions of
Section 33U.15 of this circular, at par and accrued interest, in payment of
such income, estate or gift taxes assessed against the owner or his estate.
If not presented in payment of taxes, or if not inscribed in the name of a taxpayer liable to the above-described taxes, and subject to the provision, of
Section 33k. 16 of this circular, the notes will be payable at maturity, or at
the owner's option and request they will be redeemable before maturity at par
and accrued interest.
Sec. 334.7. Interest.—Interest on each $1,000 principal amount of
Treasury Savings Notes, Series B, will accrue monthly on the l5th calendar day
of each month after the issue date on a graduated scale, as followss
First to Sixth
Seventh to
Thirteenth
Nineteenth

months, inclusive . $1.80 each month
Twelfth months, inclusive
$2.10 each month
to Eighteenth months, inclusive
$2.20 each month
to Twenty-fourth months, inclusive
$2,30 each month

The table appended to this circular shows for notes of each denomination, for
each consecutive month after issue date to maturity, (a) the amount of interest
accrual, (b) the principal amount of the note with accrued interest (cumulative)
added, and (c) the approximate investment yields. Subject to the provisions of
Sections 334.15 and 334.16 hereof, when Treasury Savings Notes, Series B, are to
be paid on an interest accrual date, the payment will include interest accruing

O KS

on that date; otherwise, interest will be paid only to the interest accrual da
next preceding the date of payment. Interest will be paid only with the principal amount, and will not accrue beyond the maturity date of the note.
Sec. 334.8. Forms of inscription.—Treasury Savings Notes, Series B, may
be inscribed in the name of an individual, corporation, unincorporated association or society, or a fiduciary (including trustees under a duly established
trust where the notes would not be held as security for the performance of a
duty or obligation), whether or not the inscribed owner is subject to taxation
under the Internal Revenue Code, or laws amendatory or supplementary thereto.
They may also be inscribed in the name of a town, city, county or State or other
governmental body and in the name of a partnership, but notes in the name of a
partnership are not acceptable in payment of taxes, since a partnership is not
a taxpaying entity under the Internal Revenue Code. The notes will not be inscribed in the names of two or more persons as joint owners or coownersj or in
the name of a public officer, whether or not named as trustee, where the notes
would in effect be held as security for the performance of a duty or obligation.
Sec. 334.9. Restrictions on transfer.—Except as otherwise specifically
provided herein, the notes may not be transferred, reissued, hypothecated, or
pledged as security, may not be paid to any person other than the owner, and
may not be accepted in payment of Federal income, estate, or gift taxes assessed
against any person other than the owner. The notes will not be acceptable to
secure deposits of public moneys.
Sec. 334.10. Taxation,—Income derived from the notes shall be subject to
all taxes now or hereafter imposed under the Internal Revenue Code or laws
amendatory or supplementary thereto. The notes 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.
Subpart Cj' PURCHASE OF NOTES
Sec. 334.11. Official agencies.—In addition to the Treasury Department,
the Federal Reserve Banks and their Branches are hereby designated agencies
for the issue and redemption of Treasury Savings Notes, Series B. The Secretary
of the Treasury, from time to time, in his discretion, may designate other agencies for the issue of the notes, or for accepting applications therefor, or for
making payments on account of the redemption thereof.
Sec. 334.12, Applications and payment.—Applications will be received by
the Federal Reserve Banks and Branches and by the Treasurer of the United States,
Washington, D. C. Banking institutions generally may submit applications for
the account of customers but only the Federal Reserve Banks, their Branches and
the Treasury Department are authorized to act as official agencies. The use of
an official application form is desirable but not necessary. Such forms may be
obtained upon request from any Federal Reserve Bank or Branch or the Treasurer
of the United States. Every application must be accompanied by payment in full,
at par and accrued interest, if any. The amount of accrued interest payable by
the purchaser will be computed at the rate at which interest accrues on the
notes ($1,80 per month per $1,000 par amount) for the actual number of days from
but not including the issue date to and including the date funds are credited to
the account of the Treasurer of the United States. For example, if funds are
credited on the 20th day of January the issue date will be January 15, and five

-h -

GO
days' accrued interest must be paid by the purchaser. If collection is delayed
so that credit is not given until February 15, the issue date will be February
15, and no accrued interest will be collectible. One day's accrued interest for
a thirty-one day period is $0.05806 per $1,000, for a thirty day period $0.06
per $1,000, for a twenty-nine day period $0.06207 per $1,000, and for a twentyeight day period $0.06429 per $1,000. Any form of exchange, including personal
checks, will be accepted, subject to collection, and should be drawn to the order
of the Federal Reserve Bank or the Treasurer of the United States, as payee, as
the case may be. Any depositary qualified pursuant to the provisions of Treasury
Department Circular No. 92, Revised, as amended, will be permitted to make payment by credit for notes applied for on behalf of itself or its customers up to
any amount for which it shall be qualified in excess of existing deposits.
Sec. 334.13. Reservations.—The Secretary of the Treasury reserves the
right to reject any application in whole or in part, and to refuse to issue or
permit to be issued hereunder any notes in any case or in any class or classes
of cases if he deems such action to be in the public interest, and his action
in any such respect shall be final. If an application is rejected, in whole or
in part, any payment received therefor will be refunded.
Sec. 334.14. Delivery of notes.—Upon acceptance of a full-paid application,
notes will be duly inscribed and, unless delivered in person, will be delivered,
at the risk and expense of the United States at the address given by the purchaser, by mail, but only within the United States, its Territories and Island
Possessions, and the Canal Zone. No deliveries elsewhere will be made.
Subpart D: PRESENTATION IN PAYMENT OF TAXES
Sec. 334.15. At any time after two months from the issue date, during such
time and under such rules and regulations as the Commissioner of Internal Revenue,
with the approval of the Secretary of the Treasury, may prescribe, notes issued
hereunder in the name of a Federal taxpayer, may be presented by such taxpayer,
his agent or his estate for credit against any income (current and back, personal
and corporation taxes, and excess profits taxes) or any estate or gift taxes
(current and back) imposed by the Internal Revenue Code, or laws amendatory or
supplementary thereto, assessed against the inscribed owner or his estate. For
example, a note dated January 15 may be presented for credit against taxes due
March 15* The notes will be receivable by the Director of Internal Revenue at
par and accrued interest to the day (but no accrual beyond maturity) when the
taxes are due, if such day falls on the l5th day of a calendar month, whether
the notes are received on or before that day. If the taxes are due on any other
day of the month than the l5th, accrued interest will be credited to the accrual
date next preceding the day when the taxes are due. Notes are receivable only
in payment of taxes equal to or exceeding the entire value of the notes, including accrued interest. The notes must be forwarded to the Director at the
risk and expense of the owner and, for his protection, should be forwarded by
registered mail, if not presented in person.
Subpart E: CASH REDEMPTION AT OR BEFORE MATURITY
Sec. 334.16. General.—Any Treasury Savings Note, Series B, not presented
in payment of taxes will be paid at maturity, or, at the option and request of

61
-$ -

the owner, and without advance notice, will be redeemed before maturity, at any
time after four months from the issue date. For example, a note dated January 15
may be redeemed for cash on or after May 15. If redemption prior to maturity is
requested on an interest accrual date the redemption will include interest accruing on that date, otherwise redemption will be at par and accrued interest to
the interest accrual date next preceding the redemption date, except in the case
of a note inscribed in the name of a bank that accepts demand deposits, in which
case payment, whether at or before maturity, will be made only at par, with a
refund of any accrued interest which may have been paid at the time of purchase
of the note. If a note is acquired by a banking institution through forfeiture
of a loan, payment will be made at par and the accrued interest payable as of
the date of acquisition.
Sec. 334.17. Execution of request for payment.—The owner in whose name the
note is inscribed must appear before one of the officers authorized by the Secretary of the Treasury to witness and certify requests for payment, establish his
identity, and in the presence of such officer sign and complete the request for
payment appearing on the back of the note. After the request for payment has been
executed, the witnessing officer should execute the certificate provided for his
use.
Sec. 334.18. Officers authorized to certify requests for payment.—All
officers authorized to certify requests for payment of United States Savings Bonds,
as set forth in Treasury Department Circular No. 530, Seventh Revision, as amended,
are hereby authorized to certify requests for cash redemption of Treasury savings
notes issued under this circular. Such officers include, among others, United
States postmasters, certain other post office officials, officers of all banks
and trust companies incorporated in the United States or its territories, including
officers at branches thereof, and commissioned and warrant officers of the Armed
Forces of the United States.
Sec. 334.19. Presentation and surrender.—Notes bearing properly executed
requests for payment must be presented and surrendered to any Federal Reserve Bank
or Branch or to the Treasurer of the United States, Washington 25, D. C , at the
expense and risk of the owner. For the owner's protection, notes should be forwarded by registered mail, if not presented in person.
Sec. 334.20. Partial redemption.—Partial cash redemption of a note,
corresponding to an authorized denomination, may be made in the same manner as
full cash redemption, appropriate changes being made in the request for payment.
In case of partial redemption of a note, the remainder will be reissued in the
same name and with the same issue date as the note surrendered.
Sec. 334.21. Payment. —Payment of any note, either at maturity or on redemption before maturity, will be made by any Federal Reserve Bank or Branch or
the Treasurer of the United States, following clearance with the agency of issue,
which will be obtained by the agency to which the note is surrendered. Payment
will be made by check drawn to the order of the owner, and mailed to the address
given in his request for payment, or by credit in any account maintained by a
banking institution with the Federal Reserve Bank of its District.

62
- 6Subpart F:

PAYMENT OR REISSUE TO OTHER THAN INSCRIBED OWNER

Sec. 334.22. Presentation and surrender.—A note may be paid or reissued
in accordance with any of the provisions of this subpart only upon the presentation and surrender of the note at the risk and expense of the owner to the issuing
agency, accompanied by an appropriate request for the particular transaction.
Sec. 334.23. Authorized transfers.—
(a) Between husband and wife.—A note inscribed in the name of a married
man may be reissued in the name of his wife, and a note inscribed in the name of
a married woman may be reissued in the name of her husband.
(b) Between affiliated corporations.—A note inscribed in the name of a
parent corporation, which is hereby defined as a corporation owning more than 50
percent of the stock,with voting power, of another corporation, may be reissued in
the name of a subsidiary, and a note registered in the name of a subsidiary may
be reissued in the name of the parent corporation.
Sec. 334.24. Authorized pledge.—A note may be pledged as collateral for a
loan from a banking institution, and if title thereto is acquired by the institution because of default in the payment of the loan, the notes will be redeemed
at par and accrued interest to the interest accrual date next preceding the date
of such acquisition, unless acquired on an interest accrual date, in which case
redemption will be made at par and accrued interest to that date. Proof of the
date of acquisition must be furnished, and payment must be requested by the
pledgee under a power of attorney given by the pledgor in whose name the note is
inscribed. The note will not be transferred to the pledgee.
Sec, 334.25. Payment to representatives of deceased or incompetent owners
and payment or reissue to heirs or legatees of deceased owners.—In case of the
death or disability of an individual owner, if the notes are not be presented in
payment of taxes, payment will be made to the duly constituted representative of
his estate, or they may be reissued to one or more of his heirs or legatees upon
satisfactory proof of their right; but no reissue will be made in the names of
two or more persons jointly or as coowners.
Sec. 334.26. Payment or reissue to successors of corporations, unincorporated
associations or partnerships.—If a corporation or unincorporated body in whose
name notes are inscribed is dissolved, consolidated, merged or otherwise changes
its organization, the notes may be paid to, or reissued in the name of, those
persons or organizations lawfully entitled to the assets of such corporation or
body by reason of such changes in organization.
Sec. 334.27. Payment to representatives of bankrupt or insolvent owners.—
If an owner of notes is declared bankrupt or insolvent, payment, but not reissue,
will be made to the duly qualified trustee, receiver or similar representative if
the notes are submitted with satisfactory proof of his appointment and qualification.
Sec. 334.28. Payment as a result of judicial proceedings.—Payment, but not
reissue, will be made as a result of judicial proceedings in a court of competent
jurisdiction, if the notes are submitted with proper proof of such proceedings and
their finality.

Sec. 334.29. Instructions and information.—Before executing the request
for payment or submitting the notes under the provisions of this subpart, instructions should be obtained from a Federal Reserve Bank' or Branch or from the
Treasury Department, Division of Loans and Currency, Washington 25, D. C.
Subpart G: GENERAL PROVISIONS
Sec. 334.30. Regulations.—Except as provided in this circular, the notes
issued hereunder will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing bonds and notes of the United
States; the regulations currently in force are contained in Department Circular
No. 300, as amended.
Sec. 334.31. Loss, theft or destruction.—In case of the loss, theft or
destruction of a savings note immediate notice.(which should include a full description of the note) should be given the agency which issued the note and instructions should be requested as to the procedure necessary to secure a duplicate.
Sec. 334*32. Fiscal agents.—Federal Reserve Banks and their Branches, as
fiscal agents of the United States, are authorized to perform such services or
acts as may be appropriate and necessary under the provisions of this circular
and under any instructions given by the Secretary of the Treasury, and they may
issue interim receipts pending delivery of the definitive notes.
Sec. 334-33. Amendments.—The Secretary of the Treasury may at any time or
from time to time supplement or amend the terms of this circular, or of any amendments or supplements thereto, and may at any time or from time to time prescribe
amendatory rules and regulations governing the offering of the notes, information
as to which will promptly be furnished to the Federal Reserve Banks.

G. M. HUMPHREY,
Secretary of the Treasury.

TREASURY SAVINGS NOTES - SERIES B
TABLE OF TAX-PAYMENT OR REDEMPTION VALUES AND INVESTMENT YIELDS
The table below shows for each month from issue date to maturity date the amount of interest accrual; the principal amount with accrued interest
added, for notes of each denomination; the approximate investment yield on the par value from issue date to the 15th of each month following the issue
date; and the approximate investment yield on the current redemption value from the 15th of the month indicated to the maturity date.
Note. The word "month" as used in this table means the period from and including the 15th day of any one calendar month to but not including the
15th day of the next succeeding month.

Amount of interest accrual each
month after issue month
Interest accrues at rate of $1.80 per
month per $1,000 par amount:
First month--—_________—__—
Second month—
_-Third month
Fourth month
Fifth month
Sixth monthInterest accrues at rate of $2.10 per
month per $1,000 par amount:
Seventh month
Eighth month
Ninth month
Tenth month—
Eleventh month
Twelfth month
Interest accrues at rate of $2.20 per
month per $1,000 par amount:
Thirteenth month
Fourteenth monthFifteenth month
Sixteenth monthSeventeenth monthEighteenth month
Interest accrues at rate of $2.30 per
month per $1,000 par amount:
Nineteenth monthTwentieth month
Twenty-first month
Twenty-second month
Twenty-third monthMATURITY

1/
i/

Approximate
Approximate
Investment
investment
$1,000,000.00 yield on par yield on current
value from
tax-payment or
issue date to
redemption
beginning of
values from
each monthly
beginning of
Tax-payment or redemption values during each monthly period after issue month 1/
period
each monthly
thereperiod to
after
maturity
Percent
Percent
2.47 2/
^100.18
$500.90
$1,001.80
$5,009.00
$10,018.00
$100,180.00
$500,900.00 $1,001,800.00
2.16
2.49
1,003.60
5,018.00
100.36
10,036.00
100,360.00
501,800.00
1,003,600.00
501.80
2.16
2.50
1.005.40
5.027.00
100.54
10,054.00
100,540.00
502,700.00
1,005,400.00
502.70
2.16
2.52
1,007.20
5,036.00
100.72
10,072.00
100,720.00
503,600.00
1,007,200.00
503.60
2.16
2.54
1,009.00
5,045.00
100.90
10,090.00
100,900.00
504,500.00
1,009,000.00
504.50
2.16
2.56
1.010.80
5,054.00
101.08
10.108.00
101,080.00
505,400.00
1,010,800.00
505.40
2.16
2.58

$100.00

$500.00

$1,000.00

$5,000.00

$10,000.00

$100,000.00

$500,000.00

101.29
101.50
101.71
101.92
102.13
102.34

506.^5
507.50
508.55
509.60
510.65
511.70

1.012.90
1,015.00
1,017.10
1,019.20
1,021.30
1,023.40

5,064.50
5.075.00
5,085.50
5,096.00
5.106.50
5,117.00

10,129.00
10,150.00
10,171.00
10,192.00
10,213.00
10,234.00

101,290.00
101,500.00
101,710.00
101,920.00
102,130.00
102,340.00

506,450.00
507,500.00
508,550.00
509,600.00
510,650.00
511,700.00

1,012,900.00
1,015,000.00
1,017,100.00
1,019,200.00
1,021,300.00
1,023,400.00

2.21
2.25
2.27
2.30
2.31
2.33

2.58
2.59
2.59
2.60
2.61
2.62

102.56
102.78
103.00
103.22
103. 44
103.66

512.80
5U.90
515-00
516.10
517.20
518.30

1,025.60
1,027.80
1,030.00
1,032.20
1,034.40
1,036.60

5,128.00
5,139.00
5,150.00
5,l6l.OO
5,172.00
5,183.00

10,256.00
10,278.00
10,300.00
10,322.00
10,344.00
10,366.00

102,560.00
102,780.00
103,000.00
103,220.00
103,440.00
103,660.00

512,800.00
513,900.00
515,000.00
516,100.00
517,200.00
518,300.00

1,025,600.00
1,027,800.00
1,030,000.00
1,032,200.00
1,034,400.00
1,036,600.00

2.35
2.36
2.38
2.39
2.40
2.41

2.62
2.63
2.63
2.64
2.65
2.66

103.89
104.12
104.35
104.58
104.81

519.^5
520.60
521.75
522.90
524.05

1,038.90
1,041.20
1,043.50
1,045.80
1.048.10

5.191.50
5,206.00
5.217.50
5,229.00
5,240.50

10,389.00
10.412.00
10,435.00
10,458.00
10,481.00

103,890.00
104,120.00
104,350.00
104,580.00
104,810.00

519,450.00
520,600.00
521,750.00
522,900.00
524 ,050.00

1,038,900.00
1,041 ,200.00
1,043,500.00
1,045,800.00
1,048,100.00

2.42
2.44
2.45
2.46
2.47

2.66
2.66
2.65
2.65
2.65

105.04

525.20

1,050.40

5,252.00

10,504.00

105,040.00

525,200.00

1,050,400.00

2.47

Not acceptable In payment of taxes until after the second month from Issue date, and not redeemable for cash until after the fourth month from issue date.
Approximate Investment yield for entire period from issue date to maturity.

65

STATUTORY

DEBT

TREASURY DEPARTMENT
Fiscal Service

LIMITATION

AS OF April 3©. 1953

Washington,

mt.-Jb....:

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.s.C, title 31, sec. 757b], outstanding at
any one time. For purposes of this section the current redemption value of any obligation issued on a discount
basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face*amount which can still
be issued under this limitation:
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:
u_
-(_^ , ^„ _ „
Treasury bills
$19*312,429,000
Certificates of indebtedness
15,958.626,000
Treasury notes
35,172,411,500 $ 70,443,466,500
Bonds Treasury
80,363,426,250
Savings (current redemp. value)
5^,413»169,296
Depositary
392,5^3,000
Armed Forces Leave
—
Investment series
13.340,151,000
152,509,289,546
Special Funds - . . ««,
Certificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased
Bearing no interest: .
War savings stamps
Excess profits tax refund bonds
Special notes of the United States:
Internaf 1 Monetary Fund series
Total

24,437,188,000
15,036,404,400
^
^

39,473*592,400
262,426,348,446
248,288,400

50,230,861
1,462,55^
1,258,000,000

1,309,693*419
263,984,330,265

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.

Demand obligations: C.C.C.
Matured, interest-ceased

51,146,136

-

51*146,136
1,225,925
52,372,061

. .

Grand total outstanding
Balance face amount of obligations issuable under above authority

264,036,702,320
10,963,297*674

Reconcilement with statement of the Public Debt April 30, 1953
(bate)

(Daily Statement of the United States Treasury, May 1, 1953 )
(Data)

Outstanding Total gross publ ic 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

/If
TD • OAS . DC

264,589,809,078
52,372,Pol
264,642,181,139
605,478,813
264,036,702,326

. STATUTORY" DEBT LHCLTATION
AS OF APRIL 30. 1953

^y

12, 19f#

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued under authority of that Act, and the face amount of obligations
guaranteed as to principal and interest by the United States (except such guaranteed
obligations as may be held by the Secretary of the Treasury), "shall not exceed in
the aggregate $275,000,000,000 (Act of June 26, 1946$ U*S.C,, title 31, sec. 757b),
outstanding at any one time. For purposes of this section the current redemption
value of any obligation issued on a discount basis which is redeemable prior to
maturity at the option of the holder shall be considered as its face amount. »
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
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• <.<:••<,*•»••<,••«•<J;19,312,429,COO
Certificates of indebtedness*«„ 15,958*626,000
Treasury notes
....,.* 35,172,411*500 $ 70,443,466,500
Bonds Treasury.,...,...•,.......>«. 80,365,426,250
Savings (current redemp«>value) 58,413,169,296
Depositary._»•»•••••»«•...»»•
392,543,000
Armed Forces Leave*..*•••».*.
*»
Investment series• ••.•••»<,.,fr 13,340»151*000

152,509,239,546

Special Funds Certificates of indebtedness. 24,437,188,000
Treasury notes*.....o*.»**«*• 15,036,404,40Q
39,473^592,400
Total interest-bearing«•• „*• »•••«««.«..»»** 262,U26,348,446
Matured, interest*>ceased«o« •• • *».••«.•.•*•«.,» ••«•<»•••
248,288,400
Bearing no interest:
War savings stamps90fo« •..««« •«<><•
50,230^,861
Excess profits tax refund bonds*©
1,46*2,558
Special notes of the United States:
Internal! Monetary Fund series 1^258,000,-000 mm_1^309iJ693_J4l9
lOTJfaJ.. o,*,,«4t<»i,,j«i!),o4c»a«*o«(>etio*«oi'i»fi«ce«eS9C

~-Oj5,.70£j ,530, -.Oi?

Guaranteed obligations (not held "ay Treasury):
Interest-bearing:
Debentures: F*H.A. , t 9 * i ^ » * M ^
5>1,146,136
Demand obligations: CaC.C. • •••.«»
'•
«
Matured, interest-ceased..... ».«,............,..**«

51,146,136
1,225.925
52,3727061
Grand total outstanding.......<,.„„._.*.„..._.*.*,_•.
264,036,702,326
Balance face amoor.t of obligations issuable under above authority*.* * 10,96*3,297,674

Reconcilement with Statement of the Public Debt April 30, 1953
(Daily Statement of the United States Treasury,May 1* 1953)
Outstanding Totrl gross public debt
,...o«<,<-**..*.-«.<>o-.-.>«o.*«_.»
o• 264,589,809,078
Guarantee-: obligations not owned by the Treasury,,,,..*.," «•««•-••©_
52,372,061
Total gross public debt and guaranteed ob?_i£at?.o:_5c-c*_».< *-<.,-•*-• Wuya..,181,139
Deduct « other cutslai.dir.g public debt obligations not subject to
ueDt. illHl tatlOne :>o».ov<>....><c««e«e»««*fltia<?»a»»r«o.t«oo<>.c.c

o. y.. 4 7 o , " 1 3

264,630^702,326^"
H-ll?

a7

..... *y-p
TMMEBIATE RELEASE

tyxl

May

(Ok

,r

7 —-/ yy "

A

**• 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 1946, from January 1, 1953, to May 2, 1953, inclusive, as follows:

Products of the
Philippines

Buttons • • • . <

Established Quota
Quantity

850,000

:
:

Unit of j
Quantity j

Imports as of
May 2, 1953

Gross

300,412
719,812

Cigars

200,000,000

Number

Coconut Oil * • .

448,000,000

Pound

27,467,480

Cordage . . . . ,

6,000,000

Pound

1,892,836

Rice ......

1,040,000

Pound

2,500

(Refined
Sugars
(Unrefined • • . •
Tobacco

am

1,904,000,000

Pound
521,098,188

6,500,000

Pound

657,377

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Wednesday, May 13, 1953

G8

H-120

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 1946, from January 1, 1953, to May 2, 1953, inclusive, as follows:

Products of the
Fnilippines

[Established Quota
Quantity

Buttons..

850,000

Unit of
Quantity

Gross

Imports as of
May 2, 1953

300,412

Cigars 200,000,000 Number 719,812
Coconut Oil 448,000,000 Pound 27,467,480
Cordage 6,000,000 Pound 1,892,836
Rice 1,040,000 Pound 2,500
(Refined •.

Sugars
(Unrefined

1,904,000,000

Tobacco 6,500,000 Pound 657,377

Pound
£gl, 098,188

- 2 COTTON WASTES
(In pounds)
COTTON CARD STRIPS XBatie :frtm ^ of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASEE, SLIVER WASTE, AND ROVING WASTE, WHETKER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE. Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton ^wastes other than oomber wastee-made from cottons of 1-3/16 inehes or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland,-Belgian^{Senraa-yy and Italy?

Country of Origin
United Kingdom
Canada
Prance
British India
Netherlands
Switzerland
Belgium
Japan
China
Egypt
Cuba
Germany
Italy

Established
TOTAL QUOTA

Total imports
Sept. 20, 1952, to
May 12* 1953

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

77,856
239,495
13,032
48,162
15,715

5.482,509
l/ included in total imports, column 2.
Prepared in the Bureau of Customs*

Established :
Imports
33-1/3% of : Sept. 20,1952,
Total Quota : to May 12, 1953

1,441,152

77,249

-

-

75,807

13,032

-

*•

15,715

mm

22,747
14,796
12,«53

24,618
6 430

25,443
7,08*

24,618
6,430

425,308

1.599.886

137,044

mm

«*
-

1/

w

^t^t.^%

j >o

•f\.^,*'6#»:-^^!!^J

fts*-

/-/-/ * 7
IMMEDIATE RELEASE
May is. 1953
Preliminary,data on imports for consumption of cotton ^
^
^
^
^
S
^
^
^
established by the President*s Proclamation of September 5, 1939, as amended

*"*"

COTTON (other than linters) (in pounds)
notion under l-l/8 inches other than rough or harsh under 3/V
TJjjj^tTsept. 20. 1952. to May 12. 1953, inclusive
Country of Origin

Established Quota

Imports

Country of Origin

Established Quota

752
Honduras ........•••••
Egypt and the Anglo871
Paraguay •
••
783,816
Egyptian Sudan ....
124
Colombia •••.•••••••••
587
247,952
Peru •••••
••••
195
Iraq •••••••••••••••••
2,003,483
British India ...••*
2,240
British East Africa ••
1,370,791
China
71,388
Netherlands E. Indies.
8,883,259
8,883,259
Mexico .........••••
Barbados
618,723
Brazil
•••
21,321
l/0ther British W. Indies
Union of Soviet
5,377
Nigeria
475,124
Socialist Republics
16,004
1,382
2/0ther British W. Africa
5,203
Argentina •
••
689
^/Other
French Africa ...
237
Haiti
Algeria and Tunisia ...
9,333
Ecuador .....•••••••
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or more, but less than l-ll/l6"
Cotton, harsh or roughT of less than 3/4"
Tmoorts Feb. 1. 1953, to May 12. 1953
Imports Sept. 20. 1952. to Mav 2. 1953
Imports
,. /„-. ^ -i\
T*™VM-CI
Established (friota (Global)
Established quota (Global)
Imports
70,000,000 13,957,695 45,656,420

24,819,909

—

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, May 13 , 195-3
Preliminary data on imports for con samp Hon of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 193.9, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4-"
Imports SeptcT 20, 1952* to May 15, 1953, inclusive"
Country of Origin
Egypt and the AngloEgyptian Sudan ••»•
Peru ••••
.,..
British India •••«•••
China ...............
Mexico ..........•...
Brazil •»
Union of Soviet
Socialist Republics
Argentina ••...,.••,•
Haiti
Ecuador ••••••«••••».

Established Quota

783,816
2-47,952
2,003,483
1,370,791
8,.SS3,259
618,723

Imports

587
^«
^»

8,883,259

475,124
1,382
5,203
237
... 9,333

mm

Country of Origin

l

""

Established Quota

Honduras .... f........m 752
Paraguay .............m
871
Colombia • •... c•••«....
- 124
Iraq ..................
195
British East Africa ...
2 S 2£0
Netherlands E. Indies •
71,388,.
JJ&roaQOS ««..««;.»«...*
l/Other British W« Indies. '21,321
'.. 5,377
Nigeria <>«•>.«<>£..»....
16,004
2/0ther British W. Africa
689
2,/Other French Africa *»•
Algeria and Tunisia •«*

1/ Other than Barbados, Bermuda, Jamaica, Trinidad,.^and Tobago.
2 / Other than Gpld Coast and Nigeria.
3/ Other than Algeria, Tunisia^ and Madagascar.
Cotton, harsh or rough, of less than 3 A "
Imports Sept. 20, 1952, to May-2", 1953

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1953, to May 12, 1953

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 13,957,695

45,656,420

Imports
24,819,909

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

Country of Origin

United Kingdom:.
Canada .»..»*..«.. » * • •
. 9 a .
France **->****•>*
British India «. . . . •
Netherlands »»* • • * • o
Switzerland •**» • a maam a *
Belgium *•
Japan .«..
China ••••
Egypt *...
* * * a
Cuba ...»«
• • . a
Germany *»
• • c ©
Italy «...

Established,
TOTAL QUOTA

Established
: Total imports
33-1/358 of
rSept* 20, 1952, to :
Total
Quota
: May 12,.1953
:..

4,323,457
239,690
227,420
69,627
' "'68,240
* "44,328
38,559
341,535
17,322
8,135
6,544
76,329
21,263

77,856
239,495
13,032
48,162
15,715

5,4829 509

425,308

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

24,618
6,430

Imports
Sept* 20, 1952
to May 12, 1953

1,441,152

77,249

75,807

13,032

22,747
14,796
12,853

15,715

25,443y
7,088
1,599,886

24,618
6,430
137,044

1/

•

)

r^T^
*\jL*fr*"

yx-/^
FOR IMMEDIATE RELEASE,

v. May 3 & 1953-y
The Bureau of
quantities of wheat and wheat flour/entered^ or withdrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 1941, as modified by the Presi4ent»s proclamation of April 13, 19^2,
for the 12 months commencing May 29, 1952, as follows:

Wheat
Country
of
Origin

Established 1
Imports
slay 29, 1952, to
Quota
: May 12, 1953
(Bushels)
(Bushels)

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

800,000

794,576

794,576

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established
Imports
Quota
May 29, 1952,
to May 12,
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

2,658,350

4,000,000

2,658,394

kk

TREASURY DEPARTMENT
Washington

75

MEDIATE RELEASE
Wednesday, May 13, 1953

H-123

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, 1941, as modified by the President's proclamation of
April 13, 1942, for the 12 months commencing May 29, 1952, as follows:

Country
of
Origin

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

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established :
Import
Established:
Imports
Quota
:May 29/1952, to
Quota
: May 29, 1952,
May 12, 1953
:to May 12, 1953
(Bushels)
(Pounds)
(Pounds)
CBushels)
795,000
-

100
-

100
100

794,576

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000

5,ooo

2,000

5,000
1,000
1,000
1,000

100

14,ooo

_
1,000
_

2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

m.
m.

100

100
m.
m.
m,

_
_
...
_
1,000

100
100
100
100

2,658,350

44

76

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D. C.

FOR RELEASE PRESS SERVICE
Wednesday, May 20, 1955

NO. H-124

Prel_j-d-nary statistics from corporation income tax returns for 1950 were
today made public by Secretary of the Treasury G. M. Humphrey. These data,
prepared under the direction of Commissioner of Internal Revenue T. Coleman
Andrews, will be published in the preliminary report, "Statistics of Income
for 1950. Part 2.w
SUMMARY DATA
The number of corporation income tax returns for 1950 is 659,665 of which
425,677 show net income of $44,086,748,000, while 199,893 show deficit of
$1,506,118,000, and 36,095 have no income data (inactive corporations). As
compared with corporation income tax returns for 1949, the net income reflects
an increase of 44 percent and the deficit shows a decrease of 37 percent.
The income and excess profits tax liability reported on the returns for
1950 is $17,296,260,000, representing an increase of 76 percent as compared
with the tax liability for 1949, which consisted of income tax only. The excess profits tax portion of the tax liability for 1950 amounts to $1,385,481,000,
reported on 50,200 returns. The amounts of income tax and excess profits tax
do not take into account any credit claimed for income and profits taxes paid
to a foreign country or United States possession.
A comparison of the 1950 returns with the ,1949 returns is provided in the
following summary:
Corporation income tax returns, 1/ 1950 and 1949: Summary data
(Money figures in thousands of dollars)

Total number of returns
Returns with net income: 2/
Number '
Net income 2/
Tax liability:
Income tax 3/
Excess profits tax 4/

:Increase or decrease (-)
v
^?5?
N V 19 ? 9 x XJ Number or : p ^ ^ x
. Percent
:(pireliminary)s (complete). am)Vint
659,665
649,957
9,708
1
423,677
384,772
38,905
44,086,748 50,576,517 13,510,231
15,910,779
1,385,481

10
44

9,817,308
-

6,093,471
1,385,481

62
100

199,893
1,506,118

230,070
2,381,680

-30,177
-875,562

-13
-37

36,095

55,115

980

3

Total 17,296,260 9,817,308 7,478,952 76
Returns with no net income: Z/
Number
Deficit 2j
Number of returns of inactive
corporations
For footnotes, see p. 20

- 2 Allowance of the net operating loss deduction reduced the net income for
tax computation by $341,642,000 on 53,302 returns filed for 1950, as compared
with $196,304,000 on 39,709 returns filed for 1949. See note 21, page 20.
RETURNS INCLUDED
The returns included in this release are the corporation income tax re~
turns filed for the calendar year ending December 51, 1950, a fiscal year
ending within the period July 1950 through June 1951, and a part year with
the greater portion of the accounting period in 1950.
The data are from corporation income tax returns., Form 1120j life insurance company income tax returns, Form 1120L| and mutual insurance company
income tax returns, Form 1120M. Included for this purpose in addition to returns filed by domestic corporations are the returns filed by foreign corporations engaged in business within the United States. The complete report,
Statistics of Income for 1950, Part 2, will contain more detailed statistics
from corporation income tax returns as well as data from personal holding
company returns, Form 1120H.
The statistics are compiled from the returns as filed, prior to revisions
that may be made as a result of audit by the Bureau of Internal Revenue and
prior to changes resulting from carry-backs^ after the returns were filed.
Data from amended returns and tentative returns are not included in the tabulations o
CHANGES IN LAW AFFECTING CORPORATION RETPRNS
The Revenue Act of 1950, the Excess Profits Tax Act of 1950, and the
Revenue Act of 1951 provide for certain changes in the Internal Revenue Code
which affect the comparability of the figures tabulated from the 1950 returns
with those from the 1949 returns© The most significant changes are as
follows§
(l) Increase in income tax rates and imposition of excess profits tax. (a) The Revenue Act of 1950 increases corporate income tax rates for the calendar year 1950 to 42 percent (a normal tax rate of 23 percent, and a surtax rate of 19 percent applicable to net income in excess of $25,000)j and
for taxable years beginning after June 30, 1950, to 45 percent (a normal tax
rate of 25 percent, and a surtax rate of 20 percent on net income in excess of
$25,000).
(b) The Excess Profits Tax Act of 1950 imposes a tax at the rate of 30
percent on excess profits, effective July 1, 1950o As in the case of World
War U excess profits tax, the taxpayer is given the choice of the higher of
two alternative bases in determining what proportion, if any, of its income
is to be subjected to excess profits taxo The primary credit is an average
earnings credit, based on the average income for 3 out of the 4 years 1946
to 1949. The alternative is a credit based on a rate of return on invested
capitalo (For further explanation of credit method, see pages 5-7.) The
act also increases the surtax rate under the regular corporate income tax by

77
•=> o

<=

2 percentage points, effective with respect to taxable years beginning on or
after July 1, 1950, making a total income and profits tax rate of 77 percent
when fully effective (25 percent normal tax, plus 22 percent surtax, plus an
additional 30 percent upon that part of the income representing excess profits).
However, the aggregate income and excess profits taxes are limited to a 62
percent ceiling rate, applied to the excess profits net income. This act is
only partially effective for taxable years beginning before and ending after
July 1, 1950 (including the calendar year 1950) j for such years, corporations
pay a prorated amount of excess profits tax and are unaffected by the 2-point
rate increase, mentioned above.
(c) The Revenue Act of 1951 increases the normal tax rate from 25 to 30
percenEj leaves unchanged the surtax rate of 22 percent| and makes provision
for an 18 percent ceiling on excess profits tax. For large corporations subject to the general.combined normal and surtax rate of almost 52 percent, the
new ceiling amounts to approximately 70 percent. These rates apply to all
corporations with taxable years beginning after March 31, 1951j thus, the
fiscal year returns for taxable years ending within the period between April 1,
1951, and June 30, 1951, are the only returns included in this report which
are affected by these rates.
(2) Proration of taxes in the case of fiscal year taxpayers. - Corporations filing returns for taxable years beginning before July 1, 1950, and
ending after June 30, 1950 (other than calendar year 1950) are required to
compute two, or, in some instances, three tentative taxes as follows: one
under the provisions applicable prior to July 1, 1950; a second under the
provisions applicable to the period from July 1, 1950, through March 31,
1951; and a third under the provisions applicable beginning April 1, 1951.
The tentative taxes are then prorated on the basis of the number of days in
the accounting period before July 1, 1950, the number of days after June 30,
1950, and before April 1, 1951, and the number of days after March 31, 1951,
respectively. The prorated portions of the tentative taxes are then combined to determine the actual liability, which is the amount tabulated in
this report. Such fiscal year taxpayers are unaffected by the 2-point surtax rate increase, provided by the Excess Profits Tax Act of 1950.
Corporations filing returns for taxable years beginning on or after
July 1, 1950, and before April 1, 1951 (other than calendar year 1951) are
required to compute two tentative taxes? one under the provisions applicable
to the period from July 1, 1950, through March 31, 1951 % the other under the
provisions applicable beginning April 1, 1951. The tentative taxes are then
prorated on the basis of the number of days in the accounting period before
April 1, 1951, and the number of days after March 31, 1951, respectively.
The prorated portions of the two tentative taxes are then combined to determine the actual liability, which is the amount tabulated in this report.
Such fiscal year taxpayers are affected by the 2-point surtax rate increase,
provided by the Excess Profits Tax Act of 1950.
(3) Credits of corporations. - In lieu of exemptions, percentage credits
are provided under the 1950 Act rate structure for dividends received from
public utilities on certain preferred stock, for dividends paid by a public
utility on certain preferred stock, and for Western Hemisphere trade corporations.

- 4 (4) Amortization of emergency facilities. - Provision is made in the
1950 Act for the amortization over a 60-month period of emergency facilities constructed or acquired after December 31, 1949, and certified as
necessary in the national defense.
Taxpayers selling emergency facilities on which special amortization
deductions are taken are required to pay tax at ordinary rates, rather
than at capital gains rates, on the difference between the special amortization deductions and ordinary depreciation.
(5) Lengthening of the carry-forward for net operating losses. - Provision is made in the 1950 Act to reduce the carry-back of net operating
losses to one year and to lengthen the carryforward to five years, effective for taxable years beginning after December 31, 1949, in which losses
occur.
CLASSIFICATIONS PRESENTED
The first two tables of this release show data from corporation income
tax returns for 1950 by major and minor industrial groups. Table 1 includes a U returns, i.e., returns with net income, returns with no net income, and returns of inactive corporations, while table 2 includes only returns with excess profits tax liability. Table 3 shows data for all returns
by net income and deficit classes (Part I), and for returns with excess
profits tax liability by net income classes and by method of credit computation (Part II). The classifications employed in these tables are de^
scribed belows
Industrial classification. - The industrial classification is based on
the business activity reported on the return. When multiple businesses are
reported on a return, the classification is determined by the business.
activity which accounts for the largest percentage of total receipts. Therefore, the industrial groups do not reflect pure industry classifications.
There is no change in the groups between 1949 and 1950.
In analyzing the data compiled from returns classified as "Life insurance companies,M it should be noted that such insurance companies, in
reporting their income for tax purposes, are required to include only their
investment income, i.e„, interest, dividends, and rents. In lieu of deductions for reserve earnings, deferred dividends, and interest paid, life insurance companies are allowed a "reserve and other policy liability credit"
equal to a flat proportion of net investment income less tax-exempt interest.
This credit is deducted after arriving at net income and is reported only on
returns with net income. An amendment introduced by the Revenue Act of 1950
lowered the credit ratio for 1949 and 1950, pending further revisions in the
method of taxing life insurance companies. For 1950 the credit ratio is
.9063 and for normal tax purposes the aggregate amount of reserve and other
policy liability credit is $1,570,622,801. As an offset to this credit,
adjustment for certain non-life insurance reserves is reported in total
amount of $14,702,766. The latter adjustment, which is made in order to
include in the tax base the interest received on non-life insurance reserves, applies only to life insurance companies deriving a portion of
their income from contracts other than life insurance, annuities, or noncancellable health and accident insurance.

5 • Net income and deficit classes. - The classification of the returns by
net income and deficit classes, shown in table 3, and the classification by
returns with net income and with no net income, shown in tables 1 and 3, is
based on the amount of net income or deficit for the current year, which is
the difference between the total income and the total deductions as reported
on the return, exclusive of the net operating loss deduction.
Method of excess profits credit computation. - The excess profits credit
is the rule, established by law, for determining that portion of the corporation's net income, if any, which is to be subjected to excess profits tax.
A domestic corporation subject to excess profits tax (other than certain regulated public utilities) has the choice of computing its excess profits credit
under the income method or under the invested capital method, whichever results in the lesser amount of excess profits tax. The income credit method
is based primarily on the corporations income experience during the four
base period years (1946-49), while the credit based on invested capital allows
designated rates of return on the amount of its invested capital. These two
methods as well as alternative methods are described in the following
paragraphs:
Income method:
(a) General average. - In general^ the excess profits credit based
on income is the sum of the following %
(1) 85 percent of the average base period net income (generally, the average excess profits net income for the three highest years in the base period
1946 through 1949)j
(2) 12 percent of the amount of the base period capital addition; and
(3) 12 percent of the net capital addition or (minus 12 percent of the
net capital reduction) for the taxable year.
(b) Alternative based on growth. - In lieu of the average base
period net income computed under the general rule, a growing corporation with
total assets of $20,000,000 or less as of the first day of its base period
may use a special base period net income, computed, in general, upon the basis
of the average income of the last 12 months of the base period, or the last
24 months of the base period, or on the adjusted average for the 12 months
.ended June 30, 1950, whichever is highest. To qualify as a growing corporation, the taxpayer must meet certain tests with respect to increased gross
receipts or payroll during the last half of the base period, or with respect
to sales of a product not available prior to 1946. If the alternative average base period net income based on growth is employed, no base period capital
addition is allowed as under the general average method. However, new capital
and retained earnings added after the base period are allowed at 12 percent.
(c) Industry rate of return. - The Excess Profits Tax Act of 1950
also provides for the determination of an average base period net income computed, in general, on the basis of an industry rate of return, in lieu of the
taxpayer's own experience, in certain cases which may be characterized as
follows:

- 6 (1) A corporation commencing business after the beginning of its base
period;
(2) A corporation experiencing certain types of abnormalities during
its base period;
(5) A corporation making a substantial change in products or services
during the last 3 years of its base period;
(4) A corporation making a substantial increase in its capacity for production or operation during the last 5 years of its base period; and
(5) A corporation which for its base period was a member of a depressed
industry subgroup.
A corporation adjusting only one of its three best years uses the rate
of return for the industry to which is attributable the largest amount of its
gross receipts in that year* A corporation using the industry rate of return
for the entire base period uses the rate for the industry accounting for the
largest amount of the corporation8s gross receipts in the appropriate period.
If the average base period net income is computed under any of the provisions
relating to the use of the industry rate of return, no base period capital ;
addition is allowed except in certain cases involving abnormalities in the
base period. However, new capital and retained earnings added after the base
period are allowed at 12 percent.
Invested capital method:
(a) Asset method. - The excess profits credit based on invested
capital is, in general, computed by applying the following specified rates
to the amount of invested capitals
First $5,000,000, 12 percent;
Next $5,000,000, 10 percent; and
Over $10,000,000, 8 percent.
Invested capital determined under the "asset" method consists generally
of the sum of (1) the excess at the beginning of the year of total assets
over total liabilities, (2) 75 percent of the average amount of borrowed
capital for the year, and (3) the recent loss adjustment. The sum thus determined is increased by the average amount of money and property paid in for
stock, or as paid-in surplus, or as a contribution to capital during the
taxable year and is reduced by distributions made during the year which are
not out of earnings and profits of the current year. An adjustment is made
in the case of a corporation having an invested capital of more than
$5,000,000 in order that capital added after the beginning of its first taxable year ending after June 30, 1950, will be included in invested capital
at the 12 percent rate. No such adjustment is necessary where the invested
capital does not exceed $5,000,000 since the 12 percent rate is applied to
the entire invested capital.
(b) Historical method. - The "historical" method for determining
invested captial is similar to the method used in the invested capital credit
under the World War II excess profits tax law. The historical method* in

/'3
_ 7substance, includes in invested capital money and property previously paid
in for stock, or as paid-in surplus, or as a contribution to capital, plus
the accumulated earnings and profits of the corporation as of the beginning
of the taxable year. The excess profits credit is computed at the same
rates as indicated above for the asset method.
Alternative excess profits credit of regulated public utilities. - The
Excess Profits Tax Act of 1950 provides an alternative excess profits credit
for certain regulated public utilities. This credit, in general, consists
of the amount of the corporation's normal tax and surtax plus an amount determined as follows:
(a) By computing 6 percent or 7 percent (depending upon the type of
utility) of the sum of the adjusted invested capital and the average borrowed capital for the taxable year; (b) by reducing the amount determined
under (a) by the amount of interest on indebtedness included in borrowed
capital. The amount computed under (a), as reduced by (b), is subject to
an adjustment for inadmissible assets.
Minimum credit method. - The,Excess Profits Tax Act of 1950 provides
for a minimum credit of $25,000. When the amount of excess profits credit,
computed under any of the above-described methods, is less than $25,000,
the credit may be raised to this amount.
HISTORICAL SUMMARY
A historical summary for each of the years 1940 - 1950 is presented
in table 4, page 19. In comparing the data throughout the 11-year period,
the various changes in law must be taken into consideration, especially
the discontinuance for 1934 - 1941 of the privilege of filing consolidated
returns for income tax purposes (except by railroad corporations and their
related holding or leasing companies and, in 1940 and 1941, by Pan-American
trade corporations) and the restoration of this privilege beginning 1942.

A Table 1. - Corporation income tax returns, \J 1950, by major industrial groups and Minor industrial groups, for retnrns with net inco
and returns with no net incomej Number of returns, net income or deficit, and dividends paid in cash and assets other than own
stock; also, for returns with net income; Total tax, income tax, and excess profits tax
Money figures in thousands of dollars)
Returns with net income 2/
Taxes
Total
Number
number
Net
of
of
Total
Income
income 2 /
tax
returns 6/ returns
tax 5/

B e t u m s with no net incow 27
Dividends
BivicSn-r
paid in
paid in
Number
cash and
cash and
Deficit 2/
of
usvts
assets
returns
other than
other than
own stock
s m stock

I

Major industrial groups and minor
industrial groups 5/

1
2
5
4
5
6
7
8
9
10
11
12
15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
55
36
37
38
59
40
41
42
45
44
45
46
47
48
49
50
51
52
52
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
85
84

All industrial groups
Agriculture, forestry, and fishery
Farms and agricultural serrices
Forestry
Fishery
Mining and quarrying
Metal oining
Iron
Copper, lead, zinc, gold, silver
Other metal mining
Anthracite mining
Bituminous coal and lignite mining
Crude petroleum and natural gas production
Crude petroleum, natural gas, and natural gasoline
Oil- and gas-field contract services
Nonmetallic mining and qnaiTying
Stone, sand, and gravel
Other nonmetallic mining and quarrying
Construction
General building contractors
General contractors other than building
General contractors not allocable
Special trade contractors
Other construction
Manufacturing
Beverages
Nonalcoholic beverages
Malt liquors and malt
Wines
Distilled, rectified, and blended liquors
Food and kindred products
Meat products
Dairy products
Canning fruits, vegetables, and sea foods
Grain mill products, except cereal preparations
Bakery products
Sugar
Confectionery
Cereal preparations
Other food, including manufactured ice and flavoring
sirups
Food and kindred products not allocable
Tobacco manufactures
Cigars
Other tobacco manufactures
Textile-mill products
Tarn and thread (cotton, wool, silk, and synthetic
fiber)
Broad-woven fabrics (woolen and worsted)
Broad-woven fabrics (cotton)
Narrow fabrics and other smaUvares (cotton, wool,
silk, and synthetic fiber)
Knit goods
Dyeing and finishing textiles, except knit goods
Carpets and other floor coverings
Hats, except cloth and millinery
Other textile-mill products
Textile-mill products not allocable
Apparel and products made from fabrics
MBn's clothing
Women's clothing
Millinery
Fur goods
Other apparel and accessories
Other fabricated textile products
Apparel and products made from fabrics not allocable
Lumber and wood products, except furniture
Logging camps, logging contractors, sawmills, and
planing milla
Millwork, plywood, and prefabricated structural
wood products
Wooden containers
Other wood products
Furniture and fixtures
Furniture - household, office, public building, and
professional
Partitions, shelving, lockersj and office and store
fixtures
Window and door screens, shades, and Venetian blinds
Other furniture and fixtures
paper and allied products
Pulp, paper, and paperboard
Paper bags and paperboard containers and boxes
Pulp goods and other converted paper products
Printing, publishing, and allied industries
Newspapers
Periodicals
Books
Commercial printing, including lithographing
Other printing and publishing
Printing, publishing, and allied industries not
allocable

For footnotes, see p. 20.

Excess
profits
tax 4/

659,665 423,677 44,086,748 17,296,260 15,910,779 1,385,481 11,640,757 199,895 1,506,118
105,475
5,227
25,948
5,515
97,577
8,555
5,008
320,132
102,690
102,687
2,881
21,278
95,085
5,279
304,587
98,562
7,776
4,618
2,542
1,628
3,604
515
195
5,618
14
98
12,993
5,042
690
20
246
248
464
195
2,552
710
5,964
542,924
85,479
447,427
430,516
18,911
5,017
10,514
1,175,055
157,411
6,958
105,467
5,465
108,952
1,546
208
288,228
611
22,086
1,256
17,215
15,979
96
58
98
39
45,629
5,276
123,169
77,777
2,188
79,965
458
212,212
1,140
130
1,579
12,156
11,711
50,387
11,752
59
41
115
310
5,911
14,669
6,952
26,085
7,075
143
112
229
104
17,162
1,805
62,134
67,618
69,425
884
2,115
1,104
180,550
1,717
6,577
266,199
48,670
196,179
202,756
4,345
559,839
2,560
250,877
1,289
41,564
168,257
3,705
465,262
171,960
3,136
1,690
7,506
15,322
2,874
74,577
50,796
27,922
1,209
670
428
42,511
6,785
59,241
4,921
54,520
2,281
1,241
140,553
640
5,594
2,803
• 15,041
52,663
35,466
87,604
401
1,526
1,066
5,189
21,657
2,118
29,470
23,775
755
175
239
52,929
81,074
9,660
86,868
17,975
228,229
246,204
28,784 17,741
649,469
19,553
2,900
27,648
5,052
60,575
65,625
4,964
173,565
8,519
1,503
25,246
89,624
109,875
273,867
102,1131
7,762
4,072
2,650
1,516
5,156
1,846
1,700
432
188
146
355
174
4,912
50,506
4,879
21,428
61,991
9,594
66,870
14,742
190,992
1,947
1,988
1,852
5,891
1,019
345
156
539
371
494,855
117,848 78,762 24,199,457 10,625,691 9,555,141 1,070,550 6,013,512 86,199
80,014
108,006
1,590
8,825
195,651
1,765
204,474
5,528
491,650
9,296
23,585
1,119
26,231
27,099
2,515
1,321
73,399
868
17,818
57,888
100,941
5,256
106,197
244,947
157
408
226
1,260
2,687
3,026
539
264
61
163
8,334
99
1,640
26,469
65,792
2,560
68,152
53
242
119
164,970
5,794
58,254
365,193
572,842
610,023
57,181
11,251
7,150 1,440,989
1,717
17,941
9,424
46,341
121,344
48,058
1,436
992
404
4,582
45,929
73,134
5,290
78,424
1,175
180,446
574
1,786
10,757
45,580
9,249
1,827
1,185
258,569
102,850
95,601
573
29,046
8,687
4,695
65,315
, 60,620
1,245
146,098
915
80S
48,951
.7,155
73,161
5,509
182,963
76,670
1,823
1,164
595
1,649
54,200
2,703
47,132
44,429
116,299
150
105
22
5,021
49,117
46,646
.2,471
57,660
115,458
528
755
406
16,084
15,981
36,327
16,454
51
27
475
8
227
8,205
66,548
80,597
3,611
211,549
84,008
1,050
918
1,990

-

1,092

11
47
39
8

4,575
4,177
1,824

245
69
145
1
15
188

1,995

1,497

625
158
198
944
168

424
IDS
120
736
98
8,522
1,907
5,810

61,197
23,952
46,759
5,406
77,472
43,196
119,157
52,891
39,591

4,324
1,229
4,718

14,345
2,717
6,970

65,521
25,161
51,477
5,610
82,566
44,131
125,354
55,700
41,520

497

496
496

96

724

265
523
465

2,029

1,354

391

200

5,436
17,722
3,984
267,426
177,026

5,168
16,897
5,828
244,812
165,752

22,614
13,294

2,180
5,589
2,084
106,168
76,218

25,474
95,955
4,225
91,708
255,184
57,765

5,866
5,019

4,260
2,284

159,249
61,514
115,246
8,955
196,048
104,463
327,881
159,418
111,599
1,960
2,660
14,938
47,055
10,251
675,855
462,676

1,252

930

156,555

70,053

61,852

8,221

20,526

402
644

483
616

-

280
317
17S
221
8
211

461
191
48
75
191
58

1,454
2,559

10
268
825
156

16,54!
14,217

22,438
11,565
22,402
1,766
38,687
26,938
48,702
20,170
18,429

35,075
125,859
8,562

1 if

573
89
44S
SO
29

27!
150
21

56,509
128,418
9,415

1,017

81,573

5,960
1,985
1,658

,85,463
515,442
25,651

6,197
2,809
2,129

55!
452
91
307
5

101
60
111

218
554
306

204

1,406

15,477
75,566
4,582

325
418
420

935

482
51
4B
S

1,521

504

5,094

8,598
8,106

27,678
2,799

4,366

618

851

.

98
4
186
794

104

5,867

108
10,911
50,804
9,456

102

1,590

210
205
122
81

5,465
11,019

9,731

2,619

91,936
291,634
16,675
274,959
1,268,008
202,179

38,552
120,400
6,559
113,841
507,182
81,724

927
84
27

79
72
52
20

115
128
68
60

41,997
151,419
6,667
124,752
557,986
91,180

117,760
1,089

157
95

899
526
575

699

2ie

647

2,712
1,489
49,115
9,522
28,517
1,521
2,062
1,775
4,518
1,982
17,005
7,929

297

4,655

870

156
579

62
48
142
75

5,645

776
5,080

230
487
252
643
177
1,459

1,134

392
658
51
1S

"

18
2
1,575

595

1,049
4,507
3,244

5,134
2,529

27,499
27,147
255,517
225,058

10,306
10,041
108,595
97,100

9,825
9,425
97,619
87,245

10,776
9,855

4,718
4,706
45,955
40,126

874

1,555
5,066
15,568
10,075

617

390

12,061

4,564

4,506

258

1,796

221

1,875

47

515
151

354
81

5,903

5,255

648
15

1,706

20

2,157

41,016
27,402
6,967
6,647
12,754
5,118
2,268

174,262
121,206
28,481
24,575
152,560
74,947
25,490
12,856
26,720
9,893
2,654

174
45
452
SO
214
188

1,149

2,618

14,056
2,542
1,015,819
691,820
181,509
140,480
629,276
289,978
79,567
50,402
147,400
58,502
25,627

546

443

586

1,272

1,052

905

699

15,164
2,975
1,256

8,899
2,159

744

703
447

5,185
2,467

3,805
1,547

557

258

828

815

451,959
311,091
78,258
62,610
248,117
115,651
33,182
19,397
56,551
15,456
9,900

410,945
285,689
71,291
55,963
255,585
110,555
50,914
18,666
55,224
12,827
9,219

751
5,827

609
681

325

1,514

8,987

798
519
276
1,523

870
201

471
6,912
2,554
2,150
2,228
44,208
16,556
9,400
5,865
8,971
5,045

878

-

69
26
24
19
1,164

145
56
514
277
172

J

80
Table 1. - Corporation inoome tax returns, 1/ 1950, by major industrial groups and minor industrial groups, for returns with net inoome
and returns with no net incomet Number or returns, net income or deficit, and dividends paid in cash and assets other than own
stock; also, for returns with net incomei Total tax, inoome tax, and excess profits tax - Continued
(Money figures in thousands of dollars)
•

_

_

_

—

^

—

—

^

—

—

—

—

—

—

—

—

Major industrial groups and minor
industrial groups 6/ - Continued

—

Returns with net inoome 2/
Taxes
Total
number

Number
Net
of
income 2 /
of
returns
returns 6/

Total
tax

Income
tax 3/

Excess
profits
tax 4 /

—

I

jMLOuf-eturing - Continued
Chndoals and allied products
Industrial inorganic chemicals
Industrial organlo ohemieals, including plastic
materials, synthetio rubber, and synthetio fibers
Drugs and n.dioines
Soap and glyo.rin, oleanlng and polishing
preparations, .to.
Paints, varnish.., lacquers, etc.
Perfuses, cosmetics, and other toilet preparations
fertilisers
Oils and fats, animal and vegetable, exoept edible
cooking oils
Other ohamiaal products
Chemicals and allied products not alloeable
Prtrol.um and ooal products
Petrolevio refining
Other petroleum and ooal products
Bobber products
Tires and inner tubes
Other rubber products, including rubberized fabrics
and dotting
Leather and products
Leather, tanned, carried, and finished
Footwear, ezo.pt rubber
Other leather products
Stone, olay, and glass produots
Glass and glass produots
Cement (hydraulie)
Structural elay products
Pottery and related products
Conorete, gypsum, and plaster products
Cut-stone and stone produots
Abrasives, asbestos, and other nozmetalllo mineral products
Primary metal industries
Blast furnaoes, steel works, and rolling mills
Iron and steel foundries
Smelting, refining, rolling, drawing, and alloying
of nonf.rrous metals
Nonferrous foundries
Other primary metal industries
Primary metal industries not allocable
Fabricated metal produots, .xc.pt ordnance, maohinery.
and transportation equipment
Tin oans and other timrare
Cutlery, hand tools, and general hardware
Easting apparatus (except eleotrioal) and plumbers* supplies
Fabricated structural metal produots
Kstal stamping, ooating, and engraving
Lighting fixtures
Fabricated wire produots
Other fabricated metal products
Fabrieated metal products not allocable
Maohinery, exoept transportation equipment and
eleotrioal
Engines and turbines, except automotive, airoraft, and
railway
Agricultural maohinery and tractors
Construction ana mining maohinexy
Metal-working maohinery, including maohine tools
Spaoial industry machinery
Oeneral industry machinery
Offis. and store machines
Servioe-industry and household machines
Other maohinery parts, ana machine shops
maohinery, axc.pt transportation equipment and
eleotrioal, not allocable
Ileotrioal maohinery and equipment
Il.otrieal generating, transmission, distribution,
and industrial apparatus
Eleotrioal appliances
Insulated wire and cable
Eleotrioal equipment for motor vehioles, aircraft.
and railway looomotives and oars
Eleotrio lamps
Badio, radar, and television equipment (exoept
radio tubas), and phonographs
Othar oimimunioatlon equipment and rslatad products
Oth.r eleotrioal produots, inoluding batteries
El.otrioal machinery and equipment not allooable
Transportation equipment, exoept motor vehioles
Airoraft and parts, inoluding airoraft .nginss
Ship and boat building and repairing
BaUroed .quipmant, inoluding looomotives and strestoars
Motoroyoles, bioyol.s, and parts
pth.r transportation .quipment, axo.pt motor vehioles
Motor vehioles and equipment, exoept eleotrioal
Motor vehioles, inoluding bodies and truok trailers
Motor vehiole parts and accessories, ana passeneer
b
trailers
^

For footnotes, S M p. 20.

Returns with no net Income 2/
Dividends
Dividends
paid in .
paid in
Number
cash and
cash and
Deficit 2/ assets
assets
j™.
other than| i ' e t u r n e
other than
own stook
own stock

7,552

4,824

1,257,734
62,174
372,582

1,106,993
55,746
321,936

150,741
6,428
50,646

772,166
30,042
299,609

21,797

198
351

2,790,924
137,418
879,694

2,500

273
520

73
152

2,616

601
25
3

1,451

786
572

325,204
157,415

144,288
77,611

131,270
69,789

13,018
7,722

88,479
44,898

605
363

3,824
2,329

392
42

878
320
282
404

180,296
39,718
54,290
110,428

77,161
16,348
25,300
47,260

70,581
14,908
22,917
44,853

6,580
1,440
2,383
2,407

43,308
8,170
14,489
19,065

260
321
74
110

1,952
2,565
2,332

5
8
46
64

233,927
777
672,534
256
516 1,826,015
216 1,725,890
100,125
299
436,848
532
337,695
37
495
99,153

106,921
328,189
616,709
573,142
43,567
196,512
151,934
44,578

93,632
281,361
603,304
563,237
40,067
174,381
134,704
39,677

13,289
46,828
13,405
9,905
3,500
22,131
17,230
4,901

46,989
177,117
951,138
930,313
20,825
73,927
60,645
13,282

382
160
143
55
88
129
3
126

2,998
1,608
4,405
3,151
1,254
2,133

9
7
159
62
97
19

2,107

19

169,931
39,506
101,449
28,976
857,715
215,848
157,477
100,082
30,158
142,641
8,992
202,517
2,427,456
1,524,899
159,628
512,072

68,512
15,928
41,490
11,094
392,669
102,856
73, 666
43,683
12,992
63,316
3,386
92,770
1,130,292
719,836
69,856
236,459

64,978
15,433
39,317
10,228
345,941
89,022
65,370
38,974
11,848
56,056
3,135
81,536
996,130
635,634
63,331
206,711

3,534

931
96
344
491

12,372
3,125
5,705
3,542
10,092
2,137

490
262
131
97
216
64

11,234
132,162
84,202
6,625
29,748

38,070
8,300
25,380
4,390
181,989
47,538
37,571
18,950
4,084
29,237
1,279
43,330
534,698
338,954
34,032
118,496

47,251
167,174
16,432
1,257,989

19,892
75,271
8,978
556,987

17,971
67,332
7,151
500,134

1,921
7,939
1,827
56,853

7,063
34,849
1,304
240,942

42,566
80,605
115,849
96,226
75,509
8,377
37,539
73,118
27,198
917,941

39,124
71,330
104,790
88,565
68,099
7,592
33,196
63,281
24,157
838,958

3,442
9,275
11,059
7,661
7,410
4,343
9,837
3,041
78,983

26,406
37,979
55,159
35,802
30,196
2,627
13,501
27,366
11,906
441,102

954
1,166

662
365
529
1,188

444
679
279
400
669
40
629
2,793

1,823

416

317
673
833

1,034
1,343
4,315

3,087

601
86
756
332

399
75
596
213

1,575

1,097

355
610

257
450

3,042

2,382

165
377

135
799
326

781
586
99

579
489
54

9,975

7,425

90

68
771
794

1,034

495
2,173

866
46,728
13,834
8,296
4,709
1,144
7,260

251

593
561

411
451

1,446

1,054

333

249

10,073

7,100

99,948
174,725
260,780
227,428
176,254
20,460
82,744
155,996
60,655
2,083,767

92

53

51,729

23,262

21,197

2,065

9,840

636
554

404
432

2,339
1,593
1,332

1,768
1,143

388,833
209,095
235,509
217,279
243,707
198,558
301,299
155,047
82,708

172,923
91,414
104,260
91,524
105,823
88,160
136,476
69,636
34,463

157,479
85,279
93,221
85,775
97,643
81,573
122,856
61,391
32,544

15,444
6,135
11,039
5,749
8,180
6,587
13,620
6,245
1,919

1,097
1,103
2,587
2,165

2,006
1,621

321
726

938
202
513

2,056

1,365

785

1,125

194
11
143
117
429
90
141
588
20
218
35

760

813

26

38
1,073
1,871
2,986

641
1,346
13,380
4,724
5,106

_

19
49
44
20
20
1,297

317

10
96
10

194
90
31

1,684
1,376

1,164

2,371

43,044

548

55

17
14
27
217
81

19
306
280
560
506
176
101
350
71

273

4,305
3,840
22,733
6,367
1,357

608

17

_

727

7
170
16

2,766

42,801

1,199

34

2,199

2

83,473
38,148
50,662
48,499
55,528
44,216
60,292
30,856
19,584

212
109
548
410
365
108
194
651
125

5,667
4,975
4,801
6,091
6,316
1,523
3,618
4,938
2,673

12
174
113
345
167
13
60
166
147
415
72

3,062

424

282

3,158

2,140

969

740

1,434,476
547,326

658,123
246,169

574,591
214,679

83,532
31,490

311,397
136,386

946
215

21,274
4,000

292
98
129

171
87
81

66,881
54,182
49,306

31,503
26,443
22,026

27,633
22,356
19,324

3,870
3,087
2,702

10,761
5,960
13,425

111
9
44

1,620

81
680

52
476

2,185
354,115

822

776

46

413

171,842

146,377

25,465

44,360

27
189

367
387
155
253

199
233
101
565
153

588
103
43
25
1,304
472

299
76
22
15
879
321

832

558

132,679
43,174
184,628
386,280
239,675
40,526
98,796
6,507
776
3,319,961
2,961,780
358,181

57,340
19,163
83,815
162,146
99,753
17,848
41,459
2,760
326
1,624,729
1,459,607
165,122

53,411
17,029
73,006
149,047
90,546
15,958
39,609
2,635
299
1,373,197
1,226,216
146,981

3,929
2,134
10,809
13,099
9,207
1,890
1,850
125
27
251,532
233,391
18,141

56,050
8,422
35,620
107,195
58,810
7,969
39,017
1,282
127
847,314
769,618
77,796

1,012

-

162
146
43
405
85
266
26
20
8
390
146

245

125
627

_

36

260
5,139

161

6,112
1,873
1,618
16,372
4,116
8,325
1,983
1,773
175
24,067
19,096
4,971

49
97
3,346

H
3,193
144

381
2

379

- 10

Table 1. - Corporation income tax returns, 1/ 1950, by major industrial groups and minor industrial groups, for returns with net income
and returns with no net incomet Number or returns, net income or deficit, and dividends paid in cash and assets other than own
stock; also, for returns with net incomei Total tax, income tax, and excess profits tax
(Honey figures in thousands of dollars)
Returns witn net income 27""
Major industrial groups and minor
industrial groups 5/ -' Continued

161
162
163
164
165
166
167
168
169
170
171
172
175
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192.
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240

Manufacturing - Continued
Ordnance and accessories
Guns, howitzers, mortars, and related equipment,
including small arms
Small anas ammunition
Other ordnance and accessories
Scientific instruments} photographic equipment;
watches, clocks
Professional, scientific, and controlling instruments,
including photographic and optical goods
Watches, clocks and clockwork-operated devices
Other manufacturing
Jewelry (precious metal), silverware, plated ware
Costume jewelry, except precious metal
Fabricated plastic products, except plastic materials
Manufacturing not elsewhere classified
Public utilities
Transportation
Railroads, railway express
Urban, suburban, and interurban railways (with or
without buses)
Trucking and warehousing
Other motor vehicle transportation, including
taxicabs and buses
Pipe line transportation
Water transportation
Air transportation and allied services
Services incidental to transportation
Other transportation
Communication
Telephone (wire or radio)
Telegraph (wire and radio)
Radio broadcasting and television
Other communication
Electric and gas utilities
Electric light and power
Gas production and distribution, except natural
gas production
Other public utilities
Water supply
Public utilities not elsewhere classified
Trad.
Wholesale
Coranission merchants
Other wholesalers
Food
Alcoholic beverages
Apparel and dry goods
Chemicals, paints, and drugs
Hardware, electrical goods, plumbing and heating
equipment
Lumber, sdllwork, and construction materials
Machinery and equipment
Farm products (raw materials)
Wholesalers not elsewhere classified
Wholesalers not allocable
Retail
Food
General merchandise
Department stores
Mail-order houses
Variety stores
Other general merchandise
Apparel and accessories
Furniture and house furnishings
Automotive dealers and filling stations
Automobiles and trucks
Parts, accessories, tires, batteries
Filling stations
Drug stores
Eating and drinking places
Building materials and hardware
Lumber and building materials
Hardware and farm equipment
Other retail trade
Liquor stores
Jewelry stores
Other retail stores
Retail trade not allocable
Trade not allocable
Finance, insurance, real estate, and lessors of
real property
Finance
Banks and trust companies
Credit agencies other than banks
Personal credit agencies
Business credit agencies
Other credit agencies
Credit agencies and finance not allocable
For footnotes, see p . 20.

Total
number

Returns with no net income")
itvideos
Dividends
paid in
paid in
Number
cash and
cash and
Deficit 2/
of
assets
assets
returns
other than
other thai
own stock
own stock

Nunber
of
of
returns 6/ returns

Net
income 2/

57
24

45,239
9,493

21,086
4,107

55,580
2,366
311,148

15,794
1,185
140,055

15,564
1,009
125,124

2,250
176
14,929

7,598

5
1,250

279,275

125,916

111,945

13,973

69,512

51,875
461,079
58,964
5,670
42,770
575,675
4,442,457
2,169,545
1,566,455
9,984

14,157
197,045
16,100
1,986
18,208
160,751
1,762,195
861,867
547,666
5,774

15,181
178,071
15,412
1,871
15,750
145,038
1,726,285
855,442
541,550
5,754

9,618
956
18,974
76,611
7,507
688
624
115
2,215
2,458
15,713
66,465
55,910 1,845,474
465,922
26,425
276,644
6,136
5,474
. 20

246,100
10,081 6,812
80,185
5,903
1,667.

96,042
27,512

87,162
26,765

. 8,880
547

2,954
28,295
34,066'

14,117
' 15.904

123,555
168
139
184,548
980
1,685
98,749
950
261
57,062
1,168
1,961
155
51
2,709
740,026
4,424
2,651
1,565
675,155
2,754
8,856
9
20
57,898
1,627
1,071
157
8
25
999 1,500,209
1,536
664
525 1,172,876
527,555
672
476

55,927
71,457
58,649
22,058
1,002
282,771
258,402
2,077
22,249
45
606,468
474,719
131,749

50,155
66,984
56,956
21,201
957
280,816
258,117
2,076
20,580
45
599,020
469,247
129,775

, 5,794
4,473
1,693
857
45
1,955
285
1
1,669

50,666
46,690
11,051
12,486
570
566,527
544,285
3,168
19,064
10
798,481
610,249
188,252

50

256
20,085
7,725
7,755
299
7,964
1,005
529
6,405
27
5,150
1,118
4,012

32,857
1,167
2,030
29,371
1,631
970
5,486
197
599
211,217 147,847 6,607,171
69,731 50,791 2,912,650
196,406
6,360
9,756
59,975 44,431 2,716,244
5,979
257,300
8,786
155,721
1,475
2,266
173,134
5,847
5,504
124,374
1,839
2,773
470,582
5,110
6,174

11,005
11,087
9,994
10,059
1,048
1,011
2,615,447 2,426,051
1,161,151 1,071,482
66,139
71,552
1,089,599 1,005,543
93,230
99,401
60,457
58,636
62,143
65,174
47,807
55,169
182,164
200,000

14,544
15,808
741
1,135,846
474,228
33,005
441,225
49,654
18,092
21,749
24,304
74,929

712

8
1,948
1,850

1,178

72
118
5,862
10,158
827
516
409
238
739
1,209
7
4,369
27,470 16,565
19,680 11,546
679
435
58
100

Total
tax

Income
tax 5/

'

18,505
5,730

Excess
profits
tax 4 /

2,785
877

7,448
5,472
1,976
82
45
57
187,896
89,669
5,418
84,256
6,171
1,821
5,051
5,562
17,856

10,072
2,475

264
197

,/20
16
2

45
2
649

201
78,930

24
10,156

604

7,999

45
5,745
501
167
444
2,851
9,704
7,170
162

2,157
50,065
2,444
1,546
5,580
22,695
115,550
98,209
26,670
8,518

*'*$$
567
582
712
61
1,564
1,075
7
469
15
258
100
158

549
165
59,817
17,590
5,170
14,420
2,677
734
1,578
867
985

2,027
1,462
565
500,218
116,717
14,455
102,284
20,619
6,155
11,772
4,744

61,229
67,522
3,116
171,650
3,729
91,571
249,833
98,451
4,378
5,719
51,268
55,179
139,913
2,629
5,181
529,196
559,892
896,450
19,592 14,588
50,554
28,299
77,487
2,451
1,470
126,097 86,869 3,386,883 1,358,067 1,247,658
152,157
141,789
334,561
5,408
9,212
509,303
551,794
5,641 1,249,274
7,691
446,771
407,872
994,217
2,288
2,626
20,483
8,695
8,092
248
549
85,585
80,965
195,975
487
722
12,945
12,374
58,599
2,618
5,794
71,288
73,025
215,569
16,473 11,045
51,134
49,278
154,351
8,504
11,530
507,244
331,950
871,546
23,982 19,705
278,852
501,008
791,290
18,952 16,574
13,679
15,121
59,859
1,617
2,302
14,755
15,801
40,417
1,714
2,728
17,655
55,845
18,176
3,707
5,387
18,592
17,919
58,989
6,849
15,576
91,017
85,278
264,748
14,270 11,689
69,129
75,975
209,980
7,196
8,544
16,149
17,042
54,768
4,493
5,726
57,558
60,610
186,022
21,976 14,521
1,574
1,560
5,786
1,659
2,669
9,054
9,619
28,065
1,812
2,844
54,561
56,546
8,675
13,244
Hl,a7
15,271
12,585
2,575
5,a9
40,556
106,911
114,229
15,589 10,187
507,658
177,865 121,855 5,984,176 1,254,065 1,212,456

541
17,667
6,095
1,260
29,101
7,080
515
5,911
20,956
4,465
50,696
172,196
2,255
12,575
802
614,703 57,564
90,409
9,632
64,837
5,660
1,941
301,893
42,491
58,899
222,761
510
603
279
4,089
228
2,420
68,780
1,124
6,265
569
1,737
5,259
42,155
1,856
15,549
5,112
5,928
24,686
101,225
2,549
22,176
85,956
.1,442
5,245
640
1,068
10,044
939
523
13,923
1,599
675
12,327
8,452
36,893
5,759
2,487
4,846
50,777
1,286
893
1,201
6,116
5,072
7,146
26,101
14
984
525
585
3,449
1,007
1,785
16,215
4,587
688
5,914
768
7,518
4,665
44,915
41,627 1,749,616 48,204

2,965
8,807
4,452
51,042
5,061
160,967
14,517
11,455
4,417
1,919
705
4,416
26,281
15,971
18,551
15,659
2,654
2,018
4,924
50,805
9,948
5,860
4,088
28,757
2,295
6,594
16,559
5,689
22,554
271,957

667,491
2,572,976 689,590
57,752 29,552
423,504
408,709
14,943 14,248 1,214,705
155,254
160,921
414,592
8,799
15,528
70,856
72,619
197,765
3,041
5,929
75,905
70,250
171,565
2,795
1,910
8,419
8,578
24,602
904
1,194
5,819
5,709
20,862
2,944
5,612

21,899
1,252,973 7,226
14,795
414,292
547
5,687
107,113
4,205
1,765
52,049
709
5,655
45,818
801
159
4,042
250
110
7,204
2,465

91,178
4,510
17,916
8,556
2,755
760
10,867

Ca

11-

Table 1. - Corporation income tax returns, 1/ 1950, by major industrial groups and minor industrial groups, for returns with net income
and returns with ao net income: Number of returns, net income or deficit, and dividends paid in cash and assets other than own
stock; also, for returns with net incomet Total tax, income tax, and excess profits tax - Continued

Major industrial groups and minor
Industrial groups 5/ - Continued

Finance, insurance, real estate, and lessors of
real property - Continued
Finance - Continued
Holding and other investment coqianies
241
Operating-holding eoapanies
242
Other investment and holding co«^>am.es
243
Security and commodity-exchange brokers and dealers
M4
Insurance carriers and agents
MS
Insurance carriers
246
Life insurance cmipai.es
247
Matual insurance, except life or marine or fire
248
insurance co^anies issuing perpetual policies
Other insurance carriers
249
Insurance agents and brokers
(60
Heal estate, except lessors of real property other
251
than buildings
Real .state operators, including lessors of buildings
Developers of real property, including traders on
258.
own account
Seal estate agents, brokers, and managers
254
Title abstract companies
Other real estate, except lessors of real property
256
other than buildings
Lessors of real property, except buildings
257
Agricultural, forest, and similar properties
258
Mining, oil, and similar properties
259
Railroad property
260
Public-utility property
261
Other real property, except buildings
262
268 Services
Betels
and other lodging places
264
Parsaoal services
265
Laandri.s,
cleaners, and dyers
266
Photographic studios, including oommeroial photography
267
Other
personal
services
268
Business services
269
Advertising
270
Other business services
271
Automotive repair services and garages
272
Miscellaneous repair services, hand trades
278
274 Motion pictures
Motion picture production
275
Motion picture theaters
276
Aansamant, except motion pictures
277
Other
services, including schools
278
279 iatur. of business not allocable

[Money figures in thousands of dollars)
Returns with net income 2/
Taxes
Total
number
Bomber Net
Total
Income
of
of
income 2/
tax
tax 5/
returns 6/ returns

5,457

7,690
1,054
6,656
1,591
10,710
2,754

4,648
1,048
7,882
2,278

875
689

827
639

1,190
7,956
125,836

tst

tss

For footnotes, see p. 20.

900,477
127,473
775,004
43,202
2,580,158
2,514,551
1,813,524
44,764

93,370
24,750
68,620
11,595
247,157
226,956
72,999
15,371

92,693
24,655
68,060
10,855
259,272
220,005
72,998
15,570

5,604
80,903

456,463
65,587
881,015

138,566
20,221
260v077

131,637
19,267
249,711

91,212
14,654

64,413
9,349

618,443
180,689

174,009
62,548

5,788
1,311
12,871

2,339
3,976

20,595
14,759
46,749
150,047
6,606
80,537
59,122
16,638
7,144
691,796
117,113
73,821
55,579
2,982
17,260
179,446
77,859
101,587
52,866
18,872
156,347
72,100
84,247
61,251
52,080
17,075

5,565

809

812

826
5,516

835

493

2,661

1,809

527
94
1,648
57,966
6,554
11,788
6,448
1,010
4,530
11,846
2,951
8,895
4,452
2,577
6,097
1,284
4,813
7,359
7,493
19,448

177
56
981
29,950
3,574
6,544
3,597

521
2,426
6,624
1,828
4,796
2,707
1,444
3,308

517
2,791
2,670
5,079
1,136

Excess
profits
tax 4/

677
117
560
740

Returns with no net income 2/
Dividends
Dividends
paid in
paid in
Number
cash and
cash and
Deficit 2/
of
assets
assets
returns
other than
other thai
own stock
own stock

180
215

5,356 241
1,550 242
243
60S 244
19,416 245
19,278 246
95 247
2 248

2,165
56,518

27,590
5,256
138,830

19,185 249
158 250
8,725 251

154,841
10,018

25,674
4,564

99,094
25,549

6,558 252
625 255

255
509
412

3,035
4,852
8,585

2,545

402

185

4;800

13,659

81 254
19 255
1,462 256

1,477

84,681
2,048
58,381
18,846
2,979
2,427
167,642
24,566
14,504
10,279

7,885
6,951

725,320
112,551
610,969
8,248
250,633
229,401
85,990

2,006

210
1,796

470
2,572

145

407
34
50

10,366

143,266
21,232
161,529

170,876
56,491

5,153
6,057

5,720
5,261
12,559

5,465
4,752
12,127

57,459
1,948
31,056
15,606
6,894
1,935
240,026
41,015
22,605
17,357

55,962
1,896
29,743
15,557
6,841
1,925
250,366
39,671
21,848
16,728

758

728

4,490
65,679
30,952
54,727
9,891
6,358
53,341
26,223
27,118
23,090
18,047
4,519

4,392
61,650
28,926
32,724
9,491
6,054
52,548
25,840
26,708
22,277
16,827
4,380

1
1
6,929

954

52
1,313

49
53
10
9,660
1,344

757
629
50
98
4,029
2,026
2,003

400
304
793
383
410
813
1,220

139

323

1,278

1,888

331
788
104
33
632
24,619
2,610
4,941
2,681

255

461

3,970
42,468
16,965
25,505
3,764
2,376
55,427
36,158
19,269
16,062
8,475
3,194

1,799
4,641
1,011
3,630
1,618
1,099
2,528

629
1,899
3,984
5,198
4,499

65,148
5,875
61,275
3,604
33,021
27,785

8,928

832
4,182
1,406

589
1,919
119,392
19,054
15,948
10,634
1,546
5,768
16,526
4,498
11,828
4,059
4,617
24,562
12,308
12,054
19,245
15,801
10,083

3,ecf

644
67
403
45

257
258
259
260
261
131 262
4,284 265
1,502 264
421 265
281 266
27 267
115 268
878 269
73 270
805 271
75 272
101 275
586 274
17 275
569 276
512 277
209 278
1,704 279

_

Table 2 . _ Corporation income tax returns with excess profits tax liability, 1/ 1950, by sajor industrial gro»g>s and minor industrial
groups: Number of returns, net income, excess profits net income, excess profits credit, adjusted excess profits net income,
total tax, income tax, and excess profits tax
(Money figures in thousands of dollars
Major industrial groups and
minor industrial groups 5/

all industrial groups
agriculture, forestry, and fishery
Farms and agricultural services
Forestry
Fishery
Mining and quarrying
Metal mining
Iron
Copper, lead, zinc, gold, silver
Other metal mining
Anthracite mining
Bituminous coal and lignite mining
Crude petroleum and natural gas production
Crude petroleum, natural gas, and natural gasoline
Oil- and gas-field contract services
Nonmetallic mining and quarrying
Stone, sand, and gravel
Other nonmetallic mining and quarrying
Construction
General building contractors
General contractors other than building
General contractors not allocable
Special trade contractors
Other construction
Manufacturing
Beverages
Nonalcoholic beverages
Malt liquors and malt
Wines
Distilled, rectified, and blended liquors
Food and kindred products
Meat products
Dairy products
Canning fruits, vegetables, and sea foods
Grain mill products, except cereal preparations
Bakery products
Confectionery
Cereal preparations
Other food, including manufactured ice and flavoring
sirups
Food and kindred products not allocable
Tobacco manufactures
Cigars
Other tobacco manufactures
Textile-sill products
Tarn and thread (cotton, wool, silk, and synthetic
fiber)
Broad-woven fabrics (woolen and worsted)
Broad-woven fabrics (cotton)
Narrow fabrics and other snallwares (cotton, wool, silk,
and synthetic fiber)
Knit goods
Dyeing and finishing textiles, except knit goods
Carpets and other floor coverings
Hats, except cloth and ml "Pinery
Other textile-sill products
Textile-Bill products not allocable
Apparel and products made from fabrics
Men's clothing
Women's clothing
Millinery
Fur goods
Other apparel and accessories
Other fabricated textile products
Apparel and products node from fabrics not allocable
Lumber and wood products, except furniture
Logging camps, logging contractors, sawmills, and
planing mills
Millwork, plywood, and prefabricated structural wood
products
Wooden containers
Other wood products
Furniture and fixtures
Furniture - household, office, public building, and
professional
Partitions, shelving, lockers; and office and store
fixtures
Window and door screens, shades, and Venetian blinds
Other furniture and fixtures
Paper and allied products
Pulp, paper, and paperboard
Paper bags and paperboard containers and boxes
Pulp goods and other converted paper products
Printing, publishing, and allied industries
Newspapers
Periodicals
Books
Comnercial printing, including lithographing
Other printing and publishing
Printing, publishing, and allied industries not
allocable
For footnotes, see p. 20.

Number
of
returns

Net
income 2/

Excess
I profits
jnet
jincome 7/

Excess.
profits
credit 8/

Adjusted
excess
profits net
income 9/

Taxes
Total
tax

Income
tax 5/

50,200
539
525
6
8
868
54
22
26
6
15
143
308
149
159
550
304
46
2,014
640
527
20
798
29
17,060
286
183
52
15
36
1,244
176
112
278
158
257
41
48
10
153

26,834,918 25,631,120 16,649,555
124,037
169,955
91,160
90,451
169,005
128,125
317
233
538
476
595
594
566,836
496,552
577,455
100,698
159,902
171,164
17,966
26,414
32,410
78,129
94,306
119,se4
19,182
4,603
19,370
506
1,578
1,373
47,259
60,148
65,781
140,577
226,021
185,615
105,683
151,444
170,677
34,894
54,169
55,344
77,796
113,116
109,511
43,924
65,269
61,755
53,872
47,847
47,758
196,841
324,058
337,733
95,527
60,559
96,547
78,877
146,377
155,522
1,447
2,340
2,575
54,329
89,486
88,263
2,606
1, "
2,750
18,889,095 17,938,310 11,043,582
236,775
301,904
500,954
27,445
35,885
34,629
135,055
163,340
165,974
2,745
4,252
4,076
95,427
75,550
96,255
706,154
931,265
979,100
34,268
43,468
46,293
146,487
112,458
151,037
117,165
175,879
172,273
65,638
90,701
91,038
106,827
128,255
135,919
45,945
60,269
64,994
59,501
76,109
83,046
31,504
28,659
35,578
90,637
117,185
135,911

8,975,503 12,197,525 10,812,042
55,968
61,281
52,977
55,637
60,916
52,774
112
126
84
219
259
119
237,826
220,915
129,702
66,745
70,210
59,204
13,670
12,434
8,448
46,222
16,177
48,410
8,150
8,089
14,579
872
525
666
26,246
28,051
12,901
81,887
88,464
45,010
59,566
65,269
25,735
25,195
22,521
19,275
50,455
45,514
31,715
25,640
28,443
17,829
19,874
13,886
21,992
129,997
147,972
126,692
42,271
37,219
34,716
65,092
57,550
56,204
919
1,065
893
33,532
55,902
38,411
997
977
1,155
7,704,838
8,775,588
6,891,952
151,577
122,554
65,129
13,372
14,240
6,440
69,030
74,286
55,285
1,730
2,069
1,507
58,422
40,782
21,897
403,257
440,488
224,475
17,401
19,118
11,752
63,242
68,552
54,022
71,717
80,966
55,111
38,590
45,285
25,065
55,220
58,729
21,429
26,741
29,444
14,524
33,851
56,302
16,608
15,718
16,191
2,845
55,405
57,014
26,548

31

45,056
62,189
64,230
206,068
273,241
278,588
5,594
6,101
5,988
200,674
272,600
267,140
444,150
643,784
656,207
141,517
82,844
142,265

27,394
30,859
16,791
115,574
126,593
67,175
2,455
707
2,565
124,050
113,119
66,466
268,318
299,122
199,584
59,279
68,735
58,673

29
9
20
929
118

39,710
39,643
91,242
96,675
15,095
13,743
261
112
41
8
194
22
741
241
510
2
8
57
150
13
1,235
768

91,118
83,011
28,492
29,130
88,420
89,073
5,730
5,808
120,209
121,963
23,603
23,544
151,507
150,379
70,449
70,676
52,313
50,990
54
54
297
311
7,644
7,645
18,827
18,803
1,909
1,914
363,136
,410,196
218,254
265,410

299

120,244

651
556

120,616

11,401
11,275
12,995
15,141
188,746
190,952
175,240
175,464

31,424 "**
74,891
8,528
64,061
20,141
58,273
3,804
82,908
17,276
109,110
51,608
37,011
50
258
5,690
13,475
1,020
225,652
136,147
72,141

16,775
8,286 18,207
39,031
16,351
41,590
5,727
5,164
6,578
57,610
27,058 41,954
11,527
8,351
12,756
57,156
30,147
41,874
2,325
1,926
2,529
54,176
49,082
37,501
6,527
9,808
10,745
42,589
65,920
59,725
28,819
18,858
51,128
20,167
22,296
15,297
14
4
14
91
55
101
5,010
1,954
5,278
5,554
8,188
7,565
889
915
759
137,150
159,011
181,625
100,109
81,954
115,405
48,294

57,566

49,345

8,122
9,222
122,513
113,029

5,151
4,400
4,885
5,771
5,157
5,775
65,942
88,228
77,452
60,211
81,150
71,295

59

5,908

5,964

4,337

1,627

51

9,215

9,198

4,899
248
528,873
571,072
87,219
70,582
271,008
135,759
35,662
19,519
57,814
11,344
13,130

4,008
4,860
5,712
96
137
122
240,122
376,647
535,651
154,444
262,185
254,785
45,296
60,988
54,021
42,382
58,474
46,827
81,568
161,267
148,555
35,121
78,271
75,155
12,805
22,188
19,920
5,205
10,739
10,008
22,049
35,595
52,268
5,775
6,447
5,888
4,615
8,027
7,546

5
786
194
550
242
1,117
406
89
60
396
128

545
815,585
567,655
152,995
114,937
378,601
186,556
49,885
26,081
82,517
15,539
18,025

344
768,994
525,516
130,514
112,964
352,557
168,866
46,467
24,522
79,838
15,119
17,745

2,581

2,523

_2
Table 2. - Corporation income tax returns with excess profits tax liability, 1/ 1950, by major industrial groups and minor industrial
groups: Number of returns, net income, excess profits net income, excess profits credit, adjusted excess profits net income,
total tax, income tax, and excess profits tax - Continued
(Money figures in thousands of dollars)
Major industrial groups and
minor industrial groups 5/ Continued
Manufacturing - Continued
Chemicals and allied products
Industrial inorganic chemicals
Industrial organic chemicals, including plastic materials,
synthetic rubber, and synthetic fibers
Drugs and medicines
Soap and glycerin, cleaning and polishing preparations,
etc.
Paints, varnishes, lacquers, etc.
90
Perftmes, cosmetics, and other toilet preparations
91
Fertilisers
92
Cdlfl and fats, animal and vegetable, except edible
95
cooking oils
Other chemical products
94
Chemicals and allied products not allocable
95
Petroleum and coal products
96
Petroleum refining
97
Other petroleum and coal products
98
Rubber products
99
Tires and inner tubes
100
ICQ.
Other rubber products, including rubberized fabrics and
clothing
Leather and products
102
Leather, tanned, curried, and finished
105
104
Footwear, except rubber
Other leather products
105
106
Stone, clay, and glass products
107
Glass and glass products
106
Cement (hydraulic)
109
Structural clay products
110
Pottery and related products
111
Concrete, gypsum, and plaster products
112
Cut-stone and stone products
118
Abrasives, asbestos, and other nonmetallic mineral products
114
Primary metal industries
115
Blast furnaces, steel works, and rolling mills
116
Iron and steel foundries
117
Smelting, refining, rolling, drawing, and alloying of
nonferrous metals
118
Nbnferrous foundries
119
Other primary metal industries
120
Primary metal industries not allocable
121
Fabricated metal products, except ordnance, machinery,
and transportation equipment
122
Tin cans and other tinware
128
Cutlery, hand tools, and general hardware
124
Heating apparatus (except electrical) and plumbers'
supplies
125
Fabricated structural metal products
126
Metal stamping, coating, and engraving
127
Lighting fixtures
128
Fabricated wire products
129
Other fabricated metal products
ISO
Fabricated metal products not allocable
131
Machinery, except transportation equipment and
electrical
Engines and turbines, except automotive, aircraft.
and railway
188
Agricultural machinery and tractors
1S4
Construction and mining machinery
185
MetaWcrking machinery, including machine tools
186
Special Industry machinery
157
Qeneral industry machinery
188
Office and store machines
159
Service-industry and household machines
140
Other machinery parts, and machine shops
141
Machinery, except transportation equipment and
electrical, not allocable
142
Eleotrical machinery and equipment
143
Electrical generating, transmission, distribution.
and industrial apparatus
144
Electrical appliances
145
Insulated wire and cable
146
Electrical equipment for motor vehicles, aircraft,
and railway locomotives and cars
147
Eleotric lamps
148
Radio, radar, and television equipment (except radio
tubes), and phonographs
149
Other communication equipment and related products
160
Other electrical produots, including batteries
151
Electrical maohinery and equipment not allocable
152
Transportation equipment, exoept motor vehicles
158
Aircraft and parts, including aircraft engines
154
Ship and boat building and repairing
156
Railroad equipment, including locomotives and
street cars
156
Motoroyclee, bieycles, and parts
157
Other transportation equipment, except motor
vehicles
for footnotes, see p.2o.

Number
of
returns

Net
income 2/

Excess
profits
net
income 7/

Excess
profits
credit 8/

Adjusted
excess
profits net
income 9/

jssaaTotal
tax

Incorae
tax 3/

1,219
79
139

2,502,731
125,560
853,916

2,282,709
121,590
718,125

1,363,341
81,563
383,157

919,336
40,022
334,966

1,151,260
57,887
363,177

1,000,519
51,459
512,531

151
101

265,814
137,811

251,855
132,584

171,769
101,717

80,066
30,867

121,944
70,532

108,926
62,810

219
54
77
83

140,612
25,310
39,029
50,955

133,458
23,509
38,359
51,030

84,842
13,808
28,928
36,647

48,63.6
9,701
9,431
14,383

62,772
11,275
19,666
24,160

56,192
9,835
17,283
21,753

78
143
56
87
229
27
202

204,646
659,280
580,155
492,956
87,177
415,731
332,459
83,272

198,199
614,022
503,577
419,057
84,320
363,452
280,762
82,670

112,841
348,064
412,397
351,352
61,065
211,056
161,801
49,235

85,826
265,958
90,955
67,701
25,254
152,396
118,961
33,435

96,543
323,504
242,260
202,859
39,401
188,794
149,811
38,983

83,254
276,476
228,855
192,954
35,901
166,663
152,581
34,092

48
157
98
1,047
92
57
314
55
315
36
178
917
91
271
169

99,586
9,903
72,585
17,098
781,204
198,050
155,966
88,605
22,051
123,687
5,152
187,693
2,279,586
1,474,889
116,440
492,815

99,246
9,871
72,201
17,174
741,245
194,571
150,127
86,545
21,877
118,337
5,146
164,642
2,183,364
1,417,337
115,455
459,507

73,221
6,303
55,762
11,156
437,898
103,508
97,777
56,123
14,689
71,060
3,475
91,266
1,337,522
876,733
73,980
268,480

26,025
3,568
16,439
6,016
303,557
91,065
52,350
30,422
7,188
47,287
1,671
73,376
845,336
540,604
40,969
191,027

43,276
4,401
31,317
7,558
367,045
96,211
73,138
39,926
10,126
57,593
2,247
87,804
1,074,939
699,885
55,957
229,251

39,742
3,906
29,144
6,692
320,317
82,577
64,842
35,217
8,982
50,333
1,996
76,570
942,777
615,683
47,432
199,503

157
212
17
2,104

38,412
141,322
15,510
1,013,953

38,377
137,465
15,223
980,349

25,721
87,493
5,115
628,825

12,656
49,972
10,108
351,373

17,343
65,809
8,694
471,844

15,422
57,870
6,867
414,991

30
243
261

96,374
154,293
193,424

84,868
142,187
188,571

60,979
89,722
117,237

25,889
52,465
71,292

41,523
73,653
90,626

37,881
64,378
?9,S67

505
435
69
160
308
93
1,800

155,137
144,908
13,672
73,775
132,356
50,014
1,634,582

153,542
143,680
13,488
72,490
132,925
to,798
48,.
1,592,E
,535

104,899
94,070
8,399
45,010
79,159
29,350
1,067,105

48,355
49,611
5,089
27,480
53,764
19,448
525,203

70,540
65,933
6,226
34,540
65,649
23,554
749,702

62,879
58,523
5,441
30,197
55,812
20,313
670,719

18

37,995

24,774

12,795

18,041

15,976

109
164
416
264
277
68
140
265
79

368,449
118,865
175,470
149,807
189,483
170,561
257,400
124,855
41,697

357,916
115,541
172,547
142,348
181,188
165,578
255,269
123,911
40,868

236, 696
78,406
108,841
108,534
130,789
123,957
153,312
72,066
29,730

121,220
37,135
63,706
33,814
50,399
41,421
101,924
51,651
11,138

165,112
55,080
83,383
66,124
85,643
77,462
120,012
59,723
19,122

149,668
48,945
72,344
60,375
77,463
70,875
106,392
51,478
17,205

711
268

1,267,950
511,209

1,215,751
475,208

670,083
265,555

545,558
207,675

596,668
233,039

513,136
201,549

38
48
28

56,927
44,629
46,010

56,310
44,308
43,390

31,766
25,762
25,178

24,544
18,546
18,212

27,842
21,753
21,622

23,972
18,666
18,920

195

1,313
542,930

1,246
344,460

942
176,165

304
169,185

556
168,409

510
142,944

51,415
52,012
181,505
269,581
194,096
25,454
46,963

51,823
31,518
169,688
265,929
190,034
25,305
45,559

27,195
20,097
97,445
164,055
115,086
15,210
33,558

24,630
11,221
72,243
99,874
74,998
12,095
11,981

25,252
15,462
82,733
125,451
87,719
12,465
21,818

21,525
13,328
71,924
110,852
78,512
10,575
19,968

2,469

2,453

1,822

631

1,205

1,080
217

238

303

5

51
45
33
157
71
40
20
3
3

549

37,569

548

379

169

244

Excess
profits

\VXmf

Table 2. - Corporation income tax returns with excess profits tax liability, 2 / 1950, by major industrial groups and minor industrial
groups; Number of returns, net income, excess profits net income, excess profits credit, adjusted excess profits net income,
total tax, income tax, and excess profits tax - Continued
(Money figures in thousands of dollars)
Major industrial groups and
minor industrial groups 5/ -•
Continued

158
159
160
163.
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
176
179
180
181
182
183
184
165
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
235
234
255
236
257
238
239
240

Manufacturing — Continued
Motor vehicles and equipment, except electrical
Motor vehicles, including bodies and truck trailers
Motor vehicle parts and accessories, and passenger
trailers
Ordnance and accessories
Guns, howitzers, mortars, and related equipment,
including small arms
Small anas ammunition
Other ordnance and accessories
Scientific instruments; photographic equipment; watches,
clocks
Professional, scientific, and controlling instruments,
including photographic and optical goods
Watches, clocks and cicckwork-cperated devices
Other manufacturing
Jewelry (precious metal), silverware, plated ware
Costume jewelry, except precious metal
Fabricated plastic products, except plastic materials
Manufacturing not elsewhere classified
Public utilities
Transportation
Railroads, railway express
Urban, suburban, and interurban railways (with or
without buses)
Trucking and warehousing
Other motor vehicle transportation, including
taxicabs and buses
Pipe line transportation
Water transportation
Air transportation and allied services
Services incidental to transportation
Other transportation
Communication
Telephone (wire or radio)
Telegraph (wire and radio)
Radio broadcasting and television
Other cosmunication
Electric and gas utilities
Electric light and power
Gas production and distribution, except natural gas
.production
Other public utilities
Water supply
Public utilities not elsewhere classified
Trade
Wholesale
Commission merchants
Other wholesalers
Food
Alcoholic beverages
Apparel and dry goods
Chemicals, paints, and drugs
Hardware, electrical goods, plumbing and
heating equipment
Lumber, millwork, and construction materials
Machinery and equipment
Farm products (raw materials)
Wholesalers not elsewhere classified
Wholesalers not allocable
Retail
Food
General merchandise
Department stores
Mailorder houses
Variety stores
Ot-ier general merchandise
Apparel and accessories
Furniture and house furnishings
Automotive dealers and filling stations
Automobiles and trucks
Parts, accessories, tires, batteries
Filling stations
Drug stores
Eating and drinking places
Building materials and hardware
Lumber and building materials
Hardware and farm equipment
Other retail trade
Liquor 3tores
Jewelry stores
Other retail stores
Retail trade not allocable
Trade not allocable
Finance, insurance, real estate, and lessors of real
property
Finance
Banks and trust companies
Credit agencies other than banks
Personal credit agencies
Business credit agencies
Other credit agencies
Credit agencies and finance not allocable

For footnotes, see p. 20.

Number
of
returns

Excess
profits
let
income 7/

Net
incase 2 /

Adjusted
excess
profits net
income 9/

Excess
profits
credit 8/

Taxes
Excess
profits
tax 4/

Income
tax 5/

Total

tax

255
67
186

5,258,621
2,921,888
336,755

3,156,519
2,804,280
332,239

1,455,297
1,251,544
201,755

1,683,180
1,552,695
150,485

1,602,224
1,444,915
157,509

1,550,692
1,211,524
159,163

251,552
255,591
18,141

15
7

42,055
6,460

40,674
6,456

22,208
5,965

18,466
2,491

19,973
8,047

17,190
2,670

2,785

5
5
258

55,220
2,555
259,735

31,899
2,319
247,007

16,821
1,422
147,494

15,078

13,514
1,006
106,453

2,250

99,515

15,744
1,182
121,582

14,929

246

241,962

229,354

156,255

93,099

113,040

99,067

15,975

12
910
38
14
170
688

17,771
525,599
17,505
2,522
52,555
271,041
1,456,288
894,171
475,119

17,658
515,089
17,887
2,246
52,544
261,062
1,424,505
.872,101
461,540

11,259
204,817
13,519
1,709
17,703
171,886
1,175,845
687,688
411,804

6,414
107,850
5,868

8,542
151,858
8,041
1,028
15,463
126,821
622,749
588,037
200,315

7,386
132,879
7,853

18,974

2,142
1,661

138
4

897

557
14,462
88,983
247,700
185,769
49,756

577
176

956

913

688
115

13,005
111,108
586,839
361,612
194,179

2,458
15,713
55,910
26,425
6,136

595

608

470

158

250

230

20

162,725
15,132

160,535
12,756

101,036
9,076

58,866
5,680

71,996
5,587

65,116
5,040

8,880

46
242
8
118
7
252
76
1
175

97,472
102,356
28,650
15,507

95,177
97,552
28,197
15,078

70,252
67,922
17,541
9,485

24,945
29,630
10,845
5,595

44,104
45,048
13,762
6,711

40,510
40,575
12,069
5,874

3,794
4,473
1,695

57

46

41

5

16

15

285
1

35,850

55,595

21,969

11,426

14,868

13,199

1,669

196
88
108

508,026
404,050
103,976

498,422
402,540
96,082

448,242
565,865
82,577

50,062
56,358
15,704

211,552
163,205
43,547

204,104
162,753
41,371

7,448
5,472
1,976

33
15
18

2,924
1,690
1,234
3,950,567
1,709,474
102,704
1,606,770
128,662
95,755
64,005
84,684
547,052

2,970
1,771
1,199
5,910,840
1,686,169
98,401
1,587,763
129,409
95,651
65,445
85,775
541,566

2,437
1,465

535
506
227

1,153

1,071

972

688
465

645
428

82
45
57

2,720,897
1,112,445
61,744
1,050,701
90,207
75,096
43,455
57,370
230,897

1,188,765
572,875
56,655
556,220
39,147
18,558
21,946
26,401
110,589

1,756,327
767,591
44,185
725,406
57,528
58,598
28,186
41,024
157,882

1,569,951
677,922
58,772
659,150
51,557
86,577
25,155
55,662
140,046

187,896
89,669
5,415
84,256
6,171
1,821
5,051
5,862
17,886

115,264
167,161
61,408
504,902
59,899
2,084,459
248,464
936,412
785,953
12,098
123,400
14,961
57,759
53,630
548,200
490,381
25,873
51,946
21,854
20,798
132,528
114,202
18,126
64,994

113,942
162,703
60,614
496,713
39,972
2,070,874
244,815
923,852
776,269
11,942
121,636
14,005
54,972
55,659
555,605
498,436
26,023
31,146
19,007
20,198
131,045
112,424
18,621
65,721

76,039
117,506
34,760
299,069
26,302
1,499,740
188,267
675,103
550,516
7,644
106,282
10,661
43,536
43,699
376,643
348,447
16,611
11,585
15,496
15,076
93,947
81,256
12,691
47,985

37,814
45,206
25,851
197,058
13,670
570,359
56,491
248,749
225,753
4,298
15,354
3,344
11,417
11,920
178,544
149,571
9,412
19,561
5,511
5,108
56,995
31,065
5,950
17,624

50,522
72,655
28,064
251,069
18,278
920,547
112,105
431,590
366,263
5,543
53,577
6,207
22,970
21,725
252,950
207,464
11,667
15,819
8,520
8,504
54,692
47,022
7,670
27,891

44,229
65,575
24,155
200,575
16,025
850,158
102,473
389,099
327,364
4,940
51,157
5,638
21,233
19,869
208,264
185,288
10,225
12,751
7,797
7,631
48,953
42,176
6,777
24,819

6,095
7,080
5,911
50,696
2,255
90,409
9,652
42,491
58,899

485

491

572

119

186

172

9,652
40,078
14,801
156,454
1,192,108

10,400
39,912
14,918
153,797
1,155,807

7,540
29,805
10,468
108,712
862,281

5,060
10,109
4,556
45,551
292,752

4,436
17,009
6,260
68,189
485,559

8,851
15,224
5,572
60,871
448,752

725,728
480,743
202,441
72,168
122,109
4,845
3,519

708,548
462,608
214,341
70,097
154,971
5,585
5,888

561,531
364,768
174,819
58,005
109,756
4,217
2,845

146,809
97,859
59,115
12,094
24,808
1,168
1,045

294,291
191,068
88,959
29,476
56,160
1,985
1,558

272,592
176,878
88,272
87,715
52,505
1,886
1,228

1,020

78

18,665
8,565

655
7,708

695
256
412
323
1,419

910
807
278
2,433

195
9,229

521
524
347
25
60
92
429
611
4,785
4,542

153
'90
79
186
1,448
1,246

202
646
8
81
408
149
1,073
7,122
5,802
5,066

596
459
57
49
31

655

658

322

556

264

219

51,167
17,280

50,812
17,371

37,476
15,466

15,336
1,905

22,007
7,123

20,052
6,838

547

857
45
1,955

603
2,420

569
1,757
1,856
24,686
22,176
1,442
1,068

525
675
5,759
4,846

895
5,072

14
585
1,785

688
7,518
41,627
21,899
14,795
5,687
1,765
5,655

159
110

Table 2. _ Corporation income tax returns with excess profits tax liability, 1/ 1950, by major industrial groups and minor industrial
groups: Number of returns, net income, excess profits net income, excess profits credit, adjusted excess profits net income,
total tax, income tax, and excess profits tax - Continued
(Money figures in thousands of dollars)
Major industrial groups and
minor industrial groups 5/ Continued

241
242
243
244
245
246
247
248
249
-SO
mm.
252
253
254
255
256
257
259
259
260
261
262
263
264
265
266
267
268
269
270
271
272
278
274
275
276
277
278
279

finance, insurance, real estate, and lessors of real
property - Continued
Finance - Continued
Holding and other investment companies
Operating-holding companies
Other investment and wniHing companies
Security and coaodity-exchange brokers and dealers
Insurance carriers and agents
Insurance carriers
Life insurance companies
Mutual insurance, except life or marine or fire
insurance colonies issuing perpetual policies
Other insurance carriers
Insurance agents and brokers
Real estate, except lessors of real property other than
buildings
Real estate operators, including lessors of buildings
Developers of real property, including traders on own
account
Real estate agents, brokers, and managers
Title abstract companies
Other real estate, except lessors of real property
other than buildings
Lessors of real property, except buildings
Agricultural, forest, and similar properties
Mining, all, and similar properties
Railroad property
Public-utility property
Other real property, except buildings
Services
Botels and other lodging places
Personal services
Laundries, cleaners, and dyers
Photographic studios, including connercial photography
Other personal services
Business services
Advertising
Other Business services
Automotive repair services and garages
Miscellaneous repair services, hand trades
Motion pictures
Motion picture production
Motion picture theaters
Amassment, except motion pictures
Other services, Including schools
Nature of business not allocable
For footeotes, see p. 20.

Number
of
returns

Net
income 2 /

Excess
profits
net
income 7/

Excess
profits
credit 8/

Adjusted
excess
profits net
income 9/

Total
tax

Income
tax 5/

Excess
profits
tax 4 /

51
11
40
89
465
188
1
2

28,698
15,142
15,556
15,846
184,550
159,996
157
310

18,466
5,26!
15,201
13,133
157,241
133,475
49
61

13,609
2,256
11,353
8,135
101,159
84,010
42
54

4,857
1,009
8,848
4,998
55,927
49,465
6
6

8,759
1,998
6,761
5,505
74,897
65,129
25
45

185
277
2,751

159,549
24,554
230,432

133,365
25,766
241,650

83,914
17,149
161,701

49,451
6,464
79,718

65,061
9,768
94,165

58,152
8,814
85,797

6,929 249
954 850
10,866 851

1,425
1,055

111,300
95,627

114,011
104,994

94,128
52,801

19,892
51,976

45,117
41,680

59,984
55,683

5,155
852
6,057 253

5,503
9,895
8,107

5,444
8,969
8,212

3,755
5,656
5,361

1,689
5,513
2,848

2,142
4,045
3,179

1,887
5,556
2,767

255

115

509
412

254
255
256

51,598
1,116
44,453
2,496
2,902
426
259,472
47,920
26,588
21,895
794
3,701
97,989
54,004
43,985
11,515
9,351
21,347
8,951
12,396
19,579
25,385
2,465

48,588
966
42,58C
2,555
2,071
414
254,808
47,544
26,107
21,753
774
5,580
95,41!
52,557
42,85!
10,607
9,582
20,944
8,692
12,252
19,569
25,443
2,403

58,090
589
33,562
2,031
1,757
551
190,522
38,606
20,543
17,051
612
2,880
69,664
39,306
30,358
7,980
7,321
15,184
6,030
9,154
14,290
16,754
1,573

10,298
379
9,218
324
314
63
64,135
8,738
5,564
4,702
162
700
25,703
13,251
12,452
2,627
2,061
5,728
2,662
3,066
5,003
8,709
830

22,008
588
19,188
1,034
1,261
157
109,595
20,010
10,497
8,886
296
1,515
48,555
23,508
18,847
4,442
4,032
8,787
4,013
4,774
8,731
10,739
1,028

20,551
556
17,875
985
1,208
127
99,935
18,666
9,740
8,257
266
1,217
58,526
21,482
16,844
4,042
5,728
7,994
5,630
4,364
7,918
9,519
889

1,477
52
1,515
49
53
10
9,660
1,544
757
629
50
98
4,029
2,026
2,005
400
504
795
585
410
815
1,220
159

257
258
259
260
261
262
268
264
265
266
867
868
869
270
271
278
273
274
275
276
277
878
279

124
15
92
5
5
U
1,757
243
263
182
IS
68
514
189
325
146
48
215
44
171
96
232
55

8,082
1^881
6,200.
4,765
67,012
58,198
22
44

677
117
560
740

241
842
245
844
7,885 245
6,951 846
1 847
1 248

16 -

Table 3. - Corporation income tax returns, 1/ 1950 - Part I, all returns,
by net income and deficit classes: Number of returns, net income or
deficit, total tax, income tax, and excess profits tax; Part II, returns
with excess profits tax liability, by net income classes and by method
of credit computation: Number of returns, net income, excess profits
net income, excess profits credit, adjusted excess profits net income,
total tax, income tax, and excess profits tax
PART I. - ALL RETURNS
(Net income and deficit classes and money figures in thousands of dollars)
Returns with net income 2/
Taxes
Net income classes 2/
Number of
Excess
Net income 2/
returns
Total tax
Income tax Z/
profits
tax 4/
Under 1
1 under 2
2 under S
5 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total
Deficit classes 2/

Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total
No income data (inactive
corporations)
Grand total
For footnotes, see p. 20.

4

79,480
39,817
28,066
21,688
17,712
57,805
34,087
25,115
24,616
37,059
24,141
18,490
7,201
3,980
3,426
472
522

32,728
58,241
69,310
75,297
79,431
416,988
419,362
436,028
553,705
1,290,851
1,687,955
2,866,972
2,492,221
2,769,486
7,113,720
3,275,777
20,448,676

6,206
11,323
13,867
15,374
16,395
88,687
91,572
97,021
126,244
375,383
616,547
1,148,078
1,027,925
1,148,071
2,921,252
1,331,721
8,260,594

6,202
11,323
13,864
15,374
16,395
88,656
91,515
96,863
125,837
354,851
571,820
1,062,707
951,017
1,060,277
2,706,107
1,233,571
7,504,400

3
31
57
158
407
20,532
44,727
85,371
76,908
87,794
215,145
98,150
756,194

423,677

44,086,748

17,296,260

15,910,779

1,385,481

Returns with nci net income 2/
Number of
Deficit 2/
returns
90,574
26,023
15,975
11,025
8,100
21,381
9,150
4,910
2,859
5,633
2,624
1,178
270
124
61
1
5

26,938
37,729
39,328
38,243
36,256
150,989
111,411
84,661
63,772
193,951
180,770
175,355
91,799
86,437
114,018
5,003
69,458

199,893

1,506,118

36,095

-

659,665

-

e.

Table 5. - Corporation income tax returns, \l 1950 - Part I, all returns, by net income and deficit classes: Number of returns, net income or
deficit, tc*al tax, incone tax, and excess profits tax; Part II, returns with excess profits tax liability, by net income classes and by
.ethod of credit confutations lumber of returns, net income, excess profits net income, excess profits credit, adjusted excess profits
net income, total tax, income tax, and excess profits tax - Continued
PART II. - RETURNS WITH EXCESS PROFITS TAX LIABILITY
(Net incone classes and money figures in thousands of dollars)
Adjusted
Excess
Excess
excess
profits
Net
profits
profits
net
inccae 2 /
net
credit 8/
income 7 /
income 9/

• "

Hat incone classes 2 /

Number
of
returns

Taxes
Total
tax

Excess
profits
tax 4 /

Income
tax 5/

AGGREGATE 1 0 /

Under 1
1 mder 2
8 wader 8
S mder 4
4 andtr 5
6 under 10
10 .-tor 16

16 mder 20
20 xaiat 86
26 tinder 60
50 under 100
100 m d e r 260
250 m d e r 600
600 mder 1,000
1,000 m d e r 6,000
5,000 under 10,000
10,000 and orer
Total

1

8

•

134

4

-

108
55
25
95

297
353

2,855
14,550
595,755
876,268
1,655,417
1,488,851
1,665,477
4,466,521
2,058,515
14,057,816

2,252
2,450
6,560
21,505
615,669
881,755
1,624,542
1,465,776
1,658,244
4,505,253
1,966,032
13,104,971

1,602
1,688
4,464
16,815
475,215
592,848
1,076,818
972,724
1,079,348
2,931,587
1,360,715
8,135,255

50,200

26,854,918

25,631,120

16,649,335

1
3
51
61
165
629
16,909
12,477
10,468
4,279
8,402
8,188

5
12
369
745

26

-

86
36
115

—

51
11
20
626
752

4

"

•

4

"
5
51

2,089
4,691
138,128
288,179
546,175
489,688
558,056
1,372,847
605,317
4,968,869

4
1
5
128
247
847

1
1
3
97
190
689

5,946
194,477
358,288
724,032
676,977
770,910
2,045,179
950,238
6,472,242

5,559
173,945
313,561
638,661
600,069
683,116
1,850,034
852,088
5,716,048

20,538
44,727
85,371
76,908
87,794
215,145
98,150
756,194

8,975,503

12,197,525

10,812,042

1,385,481

57
158
407

INCOME METHOD - GENERAL AVERAGE
Under 1
1 under 8
2 under 8
8 under 4
4 under 5
5 tinder 10
10 m d e r 16
16 mder 20
80 tinder 85
25 under 60
50 mdar 100
100 mder 860
260 m d e r 600
500 mder 1,000
1,000 m d e r 6,000
5,000 under 10,000
10,000 and over
Total

1

8

_
62

3
12
35

55
216
760

4,611
7,159
6,776
2,857
1,574
1,578

134

108

26

4

562

_
478

_
80

_
22

_
18

4

4

139
541

100
449

12
64
207

11
54
1S1

1
10
16

207
242

1,165
149,038
372,796
739,888
676,955
726,655
1,950,647
939,113
6,153,790

29
92
217

179,082
507,553
1,064,086
987,843
1,090,785
2,925,757
1,458,870
11,158,251

1,382
181,869
506,778
1,054,372
974,255
1,070,866
2,815,482
1,372,756
10,319,417

32,862
133,985
515,073
297,278
343,888
864,654
433,645
4,165,285

59,814
205,678
467,411
449,062
505,100
1,538,545
667,981
5,148,730

54,867
182,438
417,006
401,016
448,300
1,201,916
597,419
4,515,608

4,947
21,240
50,405
48,046
54,800
136,629
70,562
632,928

24,841

19,353,100

18,298,535

11,711,182

6,587,112

8,838,630

7,819,044

1,019,586

INCOME METHOD - ALTERNATIVE BASED ON GROWTH
Ondar 1
1 mder 2
8 under 8
8 mder 4
4 mder 5
6 m d a r 10
10 mder 16
15 mder 20
80 m d e r 26
85 mder 60
60 mder 100
100 m d e r 260
860 m d e r 500
500 m d e r 1,000
1,000 m d e r 5,000
6,000 tinder 10,000
10,000 and over
Total

_
_
_
_
1

_
_
_
_
9

_
„
_
_
109

^
_
„
_
67

_
_
^
_
42

^
_
_
_
5

.
_
_
_
4

_
_
_
1

1
4
4

12
64
87

73
516
403

42
174
270

31
142
133

5
23
30

3
15
24

2
8
6

578
1,465
1,756

795
486
429
49
24

22,876
106,529
275,390
280,470
335,951
899,866
336,518
481,499

24,667
107,183
274,473
276,238
334,129
886,445
332,768
478,138

19,229
74,433
180,567
179,942
213,273
576,518
213,749
282,878

5,425
32,751
93,906
96,302
120,856
309,927
119,019
195,260

7,876
43,676
122,780
128,593
158,454
422,642
160,208
228,109

7,105
38,651
108,197
113,665
138,969
373,382
141,030
199,724

771
5,025
14,585
14,928
19,485
49,260
19,178
28,585

5,572

8,759,070

2,714,942

1,741,142

973,794

1,272,401

1,120,769

151,652

29

3
™

INCOME METHOD - INDUSTRY RATE OF ItETURN
Under 1
1 mder 2
2 mdar 8
8 mder 4
4 mder 5
6 m d e r 10
10 m d e r 15
15 tinder 20
20 m d e r 86
86 m d a r SO
60 m d e r 100
100 m d e r 850
860 m d e r 600
GOO m d e r 1,000
1,000 m d e r 5,000
6,000 under 10,000
10,000 and orer
Total

For footnote., ... p , 20.

1

8

59

30

"
"
5
4
14
449
714

™
•"

"

"
~
"

"
5

~

92
15
52

57
68
506
17,588
50,970
100,168
81,698
78,619
194,688
108,599
1,528,580

171
575
890
20,057
53,062
98,884
79,761
75,589
187,718
102,054
1,442,897

108
155
495
14,658
30,826
48,102
58,746
59,158
114,224
75,920
960,792

63
220
395
5,419
22,252
50,726
41,015
36,451
73,494
26,134
482,105

15
26
107
6,249
21,719
46,494
39,057
37,741
91,202
48,961
715,988

11
17
85
5,522
18,497
38,917
32,933
52,129
80,125
44,953
636,936

4
9
22
727
3,222
7,577
6,104
5,612
11,077
4,028
79,052

2,552

2,161,005

2,061,517

1,525,174

758,283

1,007,542

890,105

117,457

656
259
115

Table 3 - Corporation income tax returns, 1/ 1950 - part I, all returns, by net income and deficit classes- Number of returns, net income or
deficit, total tax, income tax, and excess profits tax; part II, returns with excess profits tax liability, by net income classes and by
method of credit confutations Number of returns, net inccme, excess profits net income, excess profits credit, adjusted excess profits
net income, total tax, income tax, and excess profits tax - Continued
PART II. - RETURNS WITH EXCESS PROFITS TAX LIABILITY - Continued
(Net income classes and money figures in thousands of dollars
Adjusted
Excess
Excess
excess
Net
profits
profits
profits
income 2 /
net
credit 8/
net
income Tj
income 9/

>

Net income classes 2/

Number
of
returns

Taxes
jsxcess
profits
tax 4/

Income
tax 3/

Total
tax

INVESTED CAPITAL METHOD - ASSETS
Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 tinder 10
10 m d e r 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total

_
_
1

_
_

_
_
_
45

—

_
_
45

•
4
7
113
178

35
378
373

32
313
307

150
155
8
5

1,013
36,970
72,047
115,697
86,502
104,769
265,398
52,163
158,864

1,743
41,113
75,582
117,663
87,135
101,443
246,580
44,221
164,532

3,570

893,725

880,645

1
9
10
45
976
1,030
748
252

_
_
_
_
5

•

^
_
_
1

~
_
_
1

1,531
34,053
55,998
78,999
57,299
68,876
168,620
32,865
121,557

65
59
212

8
34
49
256

8
89
48
256

5
6
20

7,060
19,358
58,659
29,853
32,567
77,961
11,556
42,568

12,148
28,241
49,965
38,661
46,089
113,759
21,449
69,942

11,070
25,156
43,919
34,021
41,586
102,544
19,860
65,541

1,075
5,085
6,044
4,640
4,703
11,195
2,089
4,401

620,495

259,681

380,519

345,858

57,261

INVESTED CAPITAL METHOD - HISTORICAL
Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 under 10
"1.0 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total

_
_
_
_
_
1

_
_
_
_
_
_
15

_
_
_
_
_
_
30

_
_
_
_
_
_
29

_
_
_
_
_
_
1

_
_
_
_
_
_
5

_
_
_
_
_
_
5

7
99
155
112
49
58
40
1
5

155

219

183

45

87

3,573
9,411
17,829
17,362
27,008
70,451
6,352
55,811

3,826
9,793
17,813
17,207
26,217
62,051
4,049
44,421

5,265
7,482
13,481
11,248
. 18,691
43,317
2,963
27,158

2,511
4,332
5,959
7,526
18,734
1,086
17,265

1,087
8,572
7,576
7,508
11,898
29,959
2,145
26,884

1,002
5,221
6,697
6,717
10,848
26,950
1,981
25,775

485

207,947

185,626

127,815

57,811

89,955

81,204

56
565

_
„
M,

m

_
.

„
6
85
851
679
791
1,055
8,009

164
2,611
8,751

INVEST ED CAPITAL METHOD - REGULATED PUBL1 C UTILITIES
Under 1
1 under 2
2 under 3
5 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
850 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total

.
_
_
.
_
7

.
_
_
269

„

_
_
537

_
885

.
_
54

_
85

_
_
_
_
_
80

6
158
445
528
746

35
54
29
21
40
17
27

2,716
8,827
10,116
14,855
97,191
116,213
674,811

2,660
6,663
9,999
15,268
96,542
110,184
655,566

1,578
5,680
6,627
10,129
77,725
96,105
589,060

1,088
2,985
5,572
5,128
18,200
14,079
66,888

1,116
8,855
4,631
6,806
42,529
49,494
285,089

5,410
4,108
6,061
59,840
47,565
274,866

2,689
2,189
8,828

230

924,996

899,219

787,185

111,286

591,605

576,088

15,517

958

MINIMUM CREDIT METHOD
Under 1
1 under 2
2 under 3
3 under 4
4 under 5
5 under 10
10 under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000 and over
Total

For footnotes, see p . 20.

_
1
1
2
41
45
134
522
10,146
1,912

363
48
14
7

13,236

_
-

_
2
5
8
291
548
2,314
11,933
331,815
124,277
50,133
15,758
9,448
11,051

"
557,579

t

m

-

27
36
70

25
25
50

1,526
1,689
4,925
16,724
339,752
i23,745
49,216
16,062
10,801
8,216

1,025
1,125
5,550
15,050
255,658
47,827
9,075
1,200

"•
""
572,789

550
175

~
550,915

_
2
11
20
501
564
1,575
5,675
86,160
75,915
40,151
14,862
10,451
8,041

*"
"
241,906

_
_

_
-

1
1
2
99
181
682

1
1
8
75
156
557

5,275
106,640
55,052
24,584
7,982
4,967
6,187

2,942
95,797
45,512
19,189
6,326
8,822
4,242

"
808,655

174,600

26
45
125
888
12,845
11,520
5,895
1,656
1,145

946

"
"
84,088

Table 4. - Corporation returns, 1/ 1940-1950: Historical svuanary of selected items from income and declared value excess-profits tax returns, and excess profits tax returns
(Money figures in thousands of dollars)
1949

1950 11/

1947

1948

1946

1945

1944

1943

1942

1941

1940

INCOME AND DECLARED VALUE EXCESS-PROFITS TAX RETURNS
All income and declared value excess-profits tax
returns s
Number (excluding returns of inactive corporations)
Net income less deficit 2/
Total tax liability
Income tax
Declared value excess-profits tax
Excess profits tax 4/ 12/
Dividends paid in cash ana assets other than
own stock
Returns with net incomes 2/
Number
Net income 2/
Total tax liability
10
Income tax
11
Declared value excess-profits tax
12
Excess profits tax 4/ 12/
13
Dividends paid in cash and assets other than
14
own stock
Returns with no net incomes 2/
Number
Deficit 2/
Dividends paid in cash and assets other than
own stock
Returns of inactive corporationsi
Number
18

625,570
42,580,630
17,296,260
15,910,779

-

1,385,481
11,758,517

423,677
44,086,748
17,296,260
15,910,779

-

551,807
614,842
594,243
28,194,837 34,425,024 51,422,728
9,817,308 11,920,260 10,981,482
9,817,308 11,920,260 10,981,482

-

9,569,092

-

9,386,475

384,772
395,860
30,576,517 36,273,250
9,817,308 11,920,260
9,817,308 11,920,260

_
-

-

-

8,365,046

442,665
468,906
473,042
412,467
420,521
27,819,245
25,051,611
16,332,542
8,919,429
26,304,481
7,167,902
2,548,546
15,925,582
12,256,396
14,884,050
4,353,620 17/4,479,166 17/4,337,728 18/3,744,568 19/2,144,292
98,668 ~
154,954
66,854
64,149
20/30,744
11,291,483
7,851,814
3,359,186
~373,511
10,431,762
5,727,676
5,607,085
6,700,787
6,088,781
6,057,043

491,152
421,125
25,192,886 21,138,957
8,874,840 10,794,750
8,606,695 4,182,705
55,039
(15)
268,145
6,557,006
6,080,766
7,496,733

283,735
269,942
264,628
288,904
18,111,095
24,052,358
27,123,741
28,717,966
15,925,582
12,256,396
7,167,902
14,884,050
4,353,620 17/4,479,166 17/4,337,728 18/3.744,568
98,668
154,934
66,854
64,149
11,291,483
7,851,814
3,359,186
10,431,762
5,968,526
5,631,023
5,490,167
6,518,177

303,019
382,531
359,310
33,381,291 27,184,592 22,165,206
8,874,840 10,794,750
10,981,482
8,606,695 4,182,705
10,981,482
(15)
55,039
268,145
6,557,006
5,917,615
7,241,416
8,222,121

-

220,977
11,203,224
2,548,546
19/2,144,292
20/30,744
375,511
5,888,325

10
11
12
13
14
15
16
17

1,585,481
11,640,757

9,409,065

9,278,836

199,893
1,506,118
117,760

230,070
2,381,680
160,027

198,383
1,848,226
107,639

169,276
1,958,563
142,925

131,842
1,991,706
255,317

118,106
1,026,250
163,152

123,563
819,260
88,517

136,786
898,722
96,653

172,723
1,000,746
116,918

204,278
1,778,555
182,610

252,065
2,283,795
200,457

36,095

35,115

36,427

35,876

35,211

33,335

34,329

35,373

37,012

40,160

43,741

11,053
52,097
55,912
20,471,652
2,191,222 14,165,367
1,474,490 8,567,927 16/12,935,510
(See line lsabove)

68,202
22,306,883
14,552,878

54,002
17,084,370
10,494,667

42,412
12,072,516
6,334,864

13,440
2,997,937
911,603

EXCESS PROFITS TAX RETURNS
Returns with excess profits taxs
Number
Excess profits net income 7/ IS/
Adjusted excess profits net income 9/ 14/
Excess profits tax

50,200
25,631,120
8,975,503

-

-

-

1
For footnotes, see p. 20.

19
20
21
82

- 20 Footnotes for tables In this release
1/ The information contained In this release is compiled from
the returns as filed, prior to revisions that may be made as a result of audit by the Bureau of Internal Revenue. Data are likewise
prior to any other changes made after the returns were filed, as
the result of carry-backs and, for 1940 through 1945, relief granted tinder section 722 of the Internal Revenue Code as applicable to
those years, recomputation of amortization of emergency facilities,
or the renegotiation of war contracts. The effect of renegotiation
settlements reached after the returns were filed is shown in special tabulations which appear in the cdmplete reports, "Statistics
of Income, Part 2," for each of the years 1942 through 1945.
2/ "Net income" or "Deficit" for 1946-50 is the difference between-the total income and the total deductions reported, exclusive
of the net operating loss deduction; for 1944 and 1945 is the
amount reported for declared value excess-profits tax computation,
adjusted by excluding net operating loss deduction and adding
Government interest subject to surtax only and excess of net longterm capital gain over net short-term capital loss; for 1940-43 is
the amount reported for declared value excess-profits tax computation, adjusted by excluding net operating loss deduction. Net income or deficit as here defined is the basis for classification of
the returns by those with net income and those with no net income.
3/ "Income tax" consists of normal tax, surtax, and alternative tax reported in lieu of normal tax and surtax where the income includes an excess of net long-term capital gain over net
short-term capital loss, if and only if such tax is less than the
normal tax and surtax. Tabulated with the income tax for returns
with net income is a small amount of tax reported on returns with
no net incoae, under the special provisions applicable to certain
mutual insurance companies, other than life or marine.
4/ The excess profits tax, imposed by the Excess profits Tax
Act of* 1950, takes effect as of July 1, 1950. The tax is imposed
on the adjusted excess profits net income at the rate of 30 percent. ' The aggregate income and excess profits taxes are limited
to a 62 percent ceiling rate, applied to the corporation's excess
profits net inccme. For taxable years beginning before and ending after July 1, 1950, (including the calendar year 1950), corporations pay a prorated amount of excess profits tax, depending on
the number of days in the portion of the taxable year subsequent
to June 30, 1950.
5/ The industrial classification is based on the business activity reported on the return. When multiple businesses are reported on a return, the classification is determined by the business activity which accounts for the largest percentage of total
receipts. Therefore, the industrial groups do not reflect pure
Industry classifications.
6/ Total number of returns includes returns of inactive
corporations.
7/ The excess profits net income for taxable year ending
after"June 30, 1950, is obtained from the net income by eliminating or adjusting special items of income and deductions, consisting principally of the exclusion of capital gains and losses, both
long- and short-term, and dividends received from domestic
corporations.
8/ The excess profits credit is the rule, established by law,
for determining that portion of the corporation's net income, if
any, which is to ba subjected to excess profits tax. For methods
of excess profits credit computation, see pp. 5-7.
9/ The adjusted excess profits net income for 1950 is the excess profits net income less the excess profits credit. For part
year returns, the amounts of excess profits net income and adjusted
excess profits net income have been placed on an annual basis.
10/ Data from incomplete returns showing (1) excess profits tax
liability but no excess profits tax schedule or (2) an excess profits tax credit in excess of $25,000 with credit method not shown
are included in aggregate only.

portion of the accounting period in 1945. The amounts for 1943-46
are before the amount deferred under section 710(a) (5) (relating
to abnormalities under section 722) and after any adjustments reported on the returns under other relief provisions. The amount
for 1942 is after both the section 710(a) (5) deferment and any
adjustments reported on the returns under other relief provisions.
For all years, the amount tabulated is before deduction of credit
for tax paid to foreign countries or United States possessions.
13/ The excess profits net income for 1942 through 1945 is obtained* from the normal-tax net income (computed without allowance
of credit for income subject to excess profits tax and without allowance of dividends received credit) by making certain adjustments, consisting principally of the exclusion of long-term capital gains and losses, and dividends received from domestic
corporations.
For returns with taxable year beginning in 1940, the excess
profits net income is obtained from the normal-tax net income by
makiig certain adjustments, consisting principally of the deduction of income and income defense taxes for the taxable year, and
the exclusion of (1) dividends received from domestic corporations
(this adjustment refers to that portion of dividends not deducted
as dividends received credit in computing normal-tax net income),
and (2) gains or losses from sale or exchange of capital assets
(depreciable or nondepreciable) held for more than 18 months. For
returns with taxable years beginning in 1941, the income tax is not
deducted in arriving at excess profits net income, instead, the excess profits tax is allowed as a deduction in the computation of
normal-tax net income. (The starting point in the computation of
excess profits net income for 1941 remains the normal-tax net income computed without deduction of excess profits tax.)
14/ The adjusted excess profits net income, as reported on
FormTlZl, for the years 1940-46 is the excess profits net income
less the sum of the specific exemption, excess profits credit, and
unused excess profits credit adjustment. For part year returns,
the amounts of excess profits net income and adjusted excess profits net income have been placed on an annual basis.
15/ The declared value excess-profits tax was repealed, effectiveTith respect to income-tax taxable years ending after June 30,
1946.
16/ The total amount of adjusted excess profits net income for
1944-does not include a deficit of $6,579,233 reported on 2,556 taxable excess profits tax returns with no adjusted excess profits net
income.
17/ "Income tax" for the years 1942 and 1943 consists of normal
tax, surtax, and for taxable years beginning after December 31, 1941,
alternative tax reported in lieu of normal tax and surtax where the
income includes an excess of net long-term capital gain over net
short-term capital loss, if and only if such tax is less than the
normal tax and surtax. Tabulated with the income tax for returns
with net income is a small amount of tax reported on returns with no
net income, under the special provisions applicable to certain mutual
insurance companies, other than life or marine, or where receipts for
the taxable year include interest on obligations of certain instrumentalities of the United States, subject to surtax only.
18/ "Income tax" for 1941 consists of income and income defense
taxes reported on returns for a fiscal year ending in the period
July through November 1941 (and on returns for a part year beginning
in 1940 and ending in 1941, the greater part of the accounting period falling in 1941); and normal tax and surtax reported on returns
for the calendar year 1941 and on returns for a fiscal year ending in
the period January through June 1942 (and on returns for a part year
beginning and ending in 1941, and for a part year beginning in 1941
and ending in 1942, the greater part of the accounting period falling
in 1941). Tabulated with the Income tax for returns with net income
is a small amount of surtax reported on returns with no net income,
where receipts for the taxable year include interest on obligations
of certain instrumentalities of the United States, subject to surtax
only.
19/ Income tax shown for 1940 includes income defense tax.

11/ preliminary.
12/ The excess profits tax shown for the years 1940-46 was that
imposed by section 710 of the Internal Revenue Code. This section
was added by the Second Revenue Act of 1940, effective for taxable
years beginning after December 31, 1939, and was amended by later
acts. The amount of excess profits tax tabulated for 1940 is the
liability reported on corporation excess profits tax returns (item
32, page 1, Fonn 1121) for the calendar year 1940 and for fiscal
years beginning in 1940 with the greater part of the accounting period in 1940. The amount tabulated for 1941 is the excess profits
tax deduction (item 35, page 1, Form 1120 for 1941) allowed in the
computation of normal-tax net income, except that for fiscal years
beginning in 1940, with the greater part of the accounting period
in 1941, there is tabulated the amount of excess profits tax liability (item 52, page 1, Form 1121 for 1940). The amount tabulated
forttieyears 1942 through 1944 is the excess profits tax liability
reported on corporation excess profits tax returns, less the credit
for debt retirement and the net post-war refund. For 1945 and 1946
the amount tabulated is the excess profits tax reported on corporation excess profits tax returns, less the 10 percent credit.
Effective January 1, 1946, the corporate excess profits tax was repealed by the Revenue Act of 1945. The amount of tax shown for
1946 is limited to 11,055 taxable excess profits tax returns, filed
for fiscal years ending within the period July through November
1946, on which an excess profits tax liability is reported for the

20/ Declared value excess-profits tax shown for 1940 includes declared value excess-profits defense tax reported on returns for a fiscal year ending in period July 1, 1940, through June 30, 1941.
21/ The net operating loss deduction tabulated herein is the
amount originally reported, consisting only of the net operating loss
carry-over reduced by certain adjustments, and does not take into account whatever revisions may subsequently be made as the result of any
carry-back of net operating loss from the succeeding tax year. For
any taxable year beginning after December 31, 1941, and before
January 1, 1950, a net operating loss could be carried back to the two
preceding taxable years and could be included in computing the net operating loss deduction for each such preceding taxable year. The net
operating loss for any such taxable year was first used as a carry-back
and, to the extent not so used, could be used as a carry-over to (a)
the two succeeding years if the net operating loss occurred in a taxable year beginning prior to January 1, 1948, or (b) the three succeeding years if the net operating loss occurred in a Taxable year beginning after December 31, 1947, and before January 1, 1950. Effective
for taxable years beginning after December 31, 1949, in which losses
occur, provision is made to reduce the carry-back of net operating loss
to one year and to lengthen the carry-forward to five years.

- 2the Western Grain and Peed Co. and the Western Grain Co. of
Bismarck, N.D. He is a director of the Chamber of Commerce
of the United States representing District VIII, and a member
of its agriculture and education committees.
president of the Fargo Chamber of Commerce.

He is a past
A former member

of the executive council of the American Bankers Association,
he is now on the ABA federal legislation committee.

He is

county director of the Greater North Dakota Association;
director of the Pargo Emergency Housing Corporation; treasurer
and trustee of the North Dakota Agricultural College Memorial
Foundation; trustee of St. Mary's Hall, Episcopal sch®ol for
girls at Faribault, Minn.; and was regional director of the
North Dakg£ai Savings Bonds Advisory Committee when he was

?t*MX
appointed chairman.

0O0

o/

$yxx*4*~t ,^*^y;^fyyy~^f Secretary of the Treasury Humphrey today announced the
appointment of Clarke Bassett, banker, of Fargo, N.D., as
State Chairman of the United States Savings Bonds Advisory
Committee for North Dakota.
Mr. Bassett succeeds LeRoy Pease, ofFargo, executive
secretary of the Greater North Dakota Association, who resigned
as chairman because of the pressure of other work.

Secretary

Humphrey, accepting his resignation reluctantly, expressed the
warm appreciation of the Treasury for the time and effort he
had contributed to the bond program since 1941.
Clarke Bassett^ born November 8, 1898, at Minneapolis.
He is a graduate of Lake Forest Academy, Illinois, and of
Dartmouth College.

He was married in 1923 to Marjorie Milligan

of Aberdeen, S. D., a graduate of Sweet Briar College. Their
three children are: Mrs. E. A. Simonson of Fargo;
Mrs. Edwin L. Price, a senior at the University of Arizona,
atid Clarke Bassett, Jr., Lieutenant, j.g., U.S. Navy, a Dartmouth
graduate of 1950.
From 1921 to 1931* Mr. Bassett was associated in banking
in South Dakota with his father, John C. Bassett, who was
a director of the Federal Reserve Bank of Minneapolis and
president of the Aberdeen National Bank during that period.
Clarke Bassett is now president and director of the
Merchants National Bank and Trust Co. of Fargo, N. D., president
of the First National Bank of Lidgerwood, N.D., and director of

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, May Ik, 1953H-125
QQ
_____
.
G <_/
Secretary of the Treasury Humphrey today announced the
appointment of Clarke Bassett, banker, of Fargo, N.D., as
State Chairman of the United States Savings Bonds Advisory
Committee for North Dakota.
Mr. Bassett succeeds LeRoy Pease, of Fargo, executive
secretary of the Greater North Dakota Association, viho resigned
as chairman because of the pressure of other work. Secretary
Humphrey, accepting his resignation reluctantly, expressed the
warm appreciation of the Treasury for the time and effort he
had contributed to the bond program since 1941.
Clarke Bassett was born November 8, 1898, at Minneapolis.
He is a graduate of Lake Forest Academy, Illinois, and of
Dartmouth College. He was married in 1923 to Marjorie Milligan
of Aberdeen, S. D., a graduate of Sweet Briar College. Their
three children are: Mrs. E. A. Simonson of Fargo;
Mrs. Edwin L. Price, a senior at the University of Arizona,
and Clarke Bassett, Jr., Lieutenant, j.g., U.S. Navy, a Dartmouth
graduate of 1950.
From 1921 to 19313 Mr. Bassett was associated in banking
in South Dakota with his father, John C. Bassett, who was
a director of the Federal Reserve Bank of Minneapolis and
president of the Aberdeen National Bank during that period.
Clarke Bassett is now president and director of the
Merchants National Bank and Trust Co. of Fargo, N.D., president
of the First National Bank of Lidgerwood, N.D., and director of
the Western Grain and Feed Co. and the Western Grain Co. of
Bismarck, N.D. He is a director of the Chamber of Commerce
of the United States representing District VIII, and a member
of its agriculture and education committees. He is a past
president of the Fargo Chamber of Commerce. A former member
of the executive council of the American Bankers Association, he
is now on the ABA federal legislation committee. He Is county
director of the Greater North Dakota Association; director of
the Fargo Emergency Housing Corporation; treasurer and trustee
of the North Dakota Agricultural College Memorial Foundation;
trustee of St. Mary's Hall, Episcopal school for girls at
Faribault, Minn.; and was regional director of the North Dakota
Savings Bonds Advisory Committee when he was appointed State
Chairman.
0O0

Q w

,

/V

^

u
*y6»lH9

mi tho

mmmmtmmA
tho mmm

of April,

%9m*w
_tPwp*** FW

|Sfid) Ghana* f. Brannaa

Divioion of §mm&m$M A

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Friday, May 15, 1953.

H-126

During the month of April, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other
accounts resulted in net purchases of
$3^,211,800, Secretary Humphrey announced
today.

0O0

- 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 19hl, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the difference
between the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. I|.l8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

CO

- 2-

dealers in investment securities. Tenders from others must be accompanied

by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement

will be made by the Secretary of the Treasury of the amount and price ran

of accepted bids. Those submitting tenders will be advised of the accept-

ance or rejection thereof. The Secretary of the Treasury expressly reserv

the right to accept or reject any or all tenders, in whole or in part, an
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 thr
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on May 21, 19$3 , in cash or other immediately available
funds or in a like face amount of Treasury bills maturing May 21. 19^3
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

C3
V m*

TREASURY DEPARTMENT
Washington

,

FOR RELEASE, MORNING NEWSPAPERS, ' ' I
Thursday, May lU, 1953
The Secretary of the Treasury, by this public notice, invites tenders
for $1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for
$_S$C

^ K

cash and in exchange for Treasury bills maturing

May 21, 1953

3 in

the amount of $l3301,2l|.7j000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated May 21, 1953 3 a^d will mature

Msr
August 20, 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
Daylight Saving
closing hour, two o'clock p.m., Eastern/S&aB-$3-KSb time, Monday, May 18, 1953

m.
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99=925. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
information Service

WASHINGTON, D.C.

S4
RELEASE MORNING NEWSPAPERS,
Thursday, May 14, 1953.

H-127

The Secretary of the Treasury, by this public notice, invites
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury •
bills, for cash and in exchange for Treasury bills maturing
May 21> 1953, in the amount of:$1,301,247,000, to be issued on
"a discount basis under competitive and non-competitive bidding as
•hereinafter provided. The bills of this series will be dated
May 21, 1953, and will mature August 20, 1953. -when: the face amount
will be payable without interest. They will be -issued in bearer
•Jform only, and in denominations of $1,000, $5,000, $10,000, $3,00,000,
$500,000, and $1,000,000 (maturity value).
'; Tenders will be received at Federal Reserve -Banks and Branches
up to the closing hour, two ofclock p.m.,' Eastern Daylight. Saving
time, Monday, May 18, 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 jnore than
•three decimals, e.* g.,' 99-925- Fractions may not'be used. a;It;:ils
urged that tenders be made on the printed forms and forwarded in; the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on 'application therefor.
Others than banking institutions will not be permitted to'submit
tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and'from
responsible and recognized dealers in Investment securities.: Tenders
from others must be accompanied by payment of 2 percent of the' face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the; closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in any
such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from
any one
three
decimals)
bidder will
of accepted
be accepted
competitive
in full bids.
at the average
Settlement
price
for (in

- 2 accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on May 21, 1953. in cash or
other immediately available funds or in a .like face amount of a
Treasury bills maturing May 21, 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 havs
any exemption, as such, and loss from the sale or. other disposition
of Treasury bills shall not have any special treatment, as such, iunder..the Internal Revenue Code, or laws amendatory.or supplementary
thereto. The bills shall be subject to estate, .inheritance, gift o.
other excise taxes, whether Federal or State, but shall \be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or:any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury ;bills; are
originally sold ..by the United States shall be considered to be
..interest. Under Sections 42 and 117 (a) (l) of- the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall
not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include,
in his income tax return only the diff erence. between the price paicj
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 oroOo
Branch.

- 3 -

American goods re turned, and commingled merchandise; free entry under
bond for non-commercial exhibitions and for samples, containers, and
other articles; consular invoices and informal entries; the amendment
of entries; the Imposition of undervaluation duties; the correction
of errors and mistakes; the repeal of obsolete provisions; and other
matters*

KJ *U

- 2 -

In a statement on details of the bill, a -Treasury spokesman said:
"There are a number of provisions in the Jenkins bill which the
Treasury feels are of major importance,

They includes

* 1* Provisions which, in our opinion, would simplify and make
more equitable the formulas for appraising merchandise for the
assessment of ad valorem duties*
*2a, Provisions which would eliminate 'special marking* requirements
and require only such marking as will indicate to the ultimate consumer
the country of origin of imported merchandise and also add authority for
the relief of hardship eases that may occur*
#3*

Provisions which would permit the modernisation of the internal

accounting procedures of the Customs Bureau*
*4,

N

Provisions which would provide a simpler and more modern method

for converting foreign currencies into dollar values*
*5*

Provisions which would increase the existing administrative

exemptions from $5 to $1© for accompanied merchandise and in all other
cases in order to cut down unproductive customs work and to reflect some
approximation of the change in the purchasing power of the dollar since
these exemptions were fixed*"
Other provisions of the bill, which were also stated by the Treasury
spokesman to be cumulatively of substantial importance in simplifying
Customs procedures, deal with*

the effective dates of rates of duty;

certain special provisions regarding the importation of lead bearing and
zinc bearing ore; provisions governing drawback of customs duties, -tot*.

Q7
Km* ;

4
answer^to inquiries, Secretary of the Treasury George
Humphrey today said that the Treasury has completed examination of
H*B* 5106, the Customs Simplification Bill introduced in the House
of Representatives Monday by Representative Jenkins (R-Ohio)*
"The proposed act will to a large extent modernize administrative
and procedural laws, in order to give improved service to the public
with the least possible cost to the taxpayer, while still fully protecting the customs revenue," Secretary Humphrey said.
Secretary Humphrey said that the bill incorporated most of the
suggestions made recently by the Treasury to the House Ways and Means
Committee*

These Treasury suggestions were described by Secretary

Humphrey as representing the best current thinking of the executive
department for simplifying Customs procedures*

Mr* Humphrey also

noted that hearings have been scheduled beginning June 1, and that a
similar bill was extensively considered by the Ways and Means Committee
and the Senate Pinanee Committee at the last session of Congress*
t»i aia confident that, with the help of testimony from all interested
parties, including representatives of both importers and domestic
industry, Congress will be able to develop a workable bill which will
have the effect of simplifying Customs procedures in accordance with
the Presidents program announced in his State of the Union Message1*,
Secretary Humphrey said*

TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Wednesday, May 13 1953

WASHINGTON, D.C.

H-128

In answer to inquiries. Secretary of the Treasury George
Humphrey today said that the Treasury has completed examination of
H.R. 5106; the Customs Simplification Bill introduced in the House
of Representatives Monday by Representative Jenkins (R-Ohio).
"The proposed act will to a large extent modernize administrative and procedural laws, in order to give improved service to the
public with the least possible cost to the taxpayer; while still
fully protecting the customs revenue," Secretary Humphrey said.
Secretary Humphrey said that the bill incorporated most of the
suggestions made recently by the Treasury to the Hoarse Ways and
Means Committee. These Treasury suggestions were described by
Secretary Humphrey as representing the best current thinking of the
executive department for simplifying Customs procedures.
Mr Humphrey also noted that hearings have been scheduled beginning
June 1, and that a similar bill was extensively considered by the
Ways and Means Committee and the Senate Finance Committee at the last
session of Congress
"I am confident that with the help of testimony from all
interested parties, including representatives of both importers and
domestic industry. Congress will be able to develop a workable bill
which will have the effect of simplifying Customs procedures in
accordance with the President's program announced in his State of
the Union Message", Secretary Humphrey said.
In a statement on details of the bill, a Treasury spokesman
said:
"There are a number of provisions in the Jenkins bill which
the Treasury feels are of major importance. They include:
"1. Provisions which., in our opinion, would simplify and
make more equitable the formulas for appraising
merchandise for the assessment of ad valorem duties.
"2 Provisions which would eliminate 'special marking'
requirements and require only such marking as will
indicate to the utlimate consumer the country of
origin of imported merchandise arid also add
authority for the relief of hardship cases that may
occur.

QQ
Km? W

- 2 "3 Provisions which would permit the modernization of
the internal accounting procedures of the Customs
Bureau.
"4 Provisions which would provide a simpler and more
modern method for converting foreign currencies
into dollar values.
"5 Provisions which would increase the existing
administrative exemptions from $5 to $10 for
accompanied merchandise and from $1 to $3 in
all other cases in order to cut down unproductive
customs work and to reflect some approximation of
the change in the purchasing power of the dollar
since these exemptions were fixed."
Other provisions of the bill, which were also stated by the
Treasury spokesman to be cumulatively of substantial importance in
simplifying Customs procedures, deal with: the effective dates of
rates of duty; certain special provisions regarding the importation
of lead bearing and zinc bearing ore; provisions governing drawback
of customs duties, American goods returned, and commingled
merchandise; free entry under bond for non-commercial exhibitions
and for samples, containers, and other articles, consular invoices
and informal entries; the amendment of entries; the imposition of
under-valuation duties, the correction of errors and mistakes;
the repeal of obsolete provisions; and other matters.

oOo

100

fmrnm* m Wt xnit _m.
the Secretary of the trmmmwy aui-ouiic«d last #v«ai*ig that the tenders tor
•1*500*000,000, or thereabouts, of flHfctyfetjunsgrbillm to be dated May ai and to
mature August 20. 1953* «t»iftii were offered on Hay 14 f mmrm opened at the Federal
Eeeerv© Bank® on Mmy 10*
the d#t&i!n of tMm

issue are m

f©ll©wiii

Total applied for * tet340A99»OOO
Total atsepted
- 1,501,112,00© (teclude® t2|6,033fOOQ mntmrmd m a
non~comp@titive basis and accepted la
M l at the average price shown below)
Average prime
«* 99.471/ Equivalent rat® of discount afp?csu 2.09211 per annum
Bang® of accepted competitive bldrnt (Sixcepting ttn*«» tenders totaling #2,500,000)
Hi#
tow

* 99.47? Isimtraiei-t tmte of discount approx. 2.06f$ per annua
#
- 99.469
"
* "
"
2.101$ *
»

(32 perfceaat of the mmmt

bid tm at the low price urns accepted)
total

Federal Reserve
District

$m$>MJw ,,,

Boston
lew fork
fMiade3.phia
Cleveland

1 ' 16,432,000
1,676,250,000
33,0)1,000
42*293*000

X J - f i Aim. -bfc-»mQ,->w. •*>.••&'

aicnrasonci
Atlanta
Chicago
Si* Lemi©
XtiumptiLli
lansas City
Ball**
San fra-tsmlmm

iktai
Aeeaptftd

WfMPiflPP.

•
15,232,000
1,014,564,000
13,555,000
41,607,000
14,103,000
23,023,000
192,351,000
25,207,000
14,497,000
41,176,000
2§,5?0,0OO
77,227,900

$2,340,199,000

11,501,112,000

16,&L4JOO0

30,428,000
25S,796,000
53,635,000
10,037*000
66,944.000
39*249,000

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

201
RELEASE MORNING NEWSPAPERS,
Tuesday, May 19, 1953.

H

"12y

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 May 21 and to mature August 20, 1953, which were offered
on May 14, were opened at the Federal Reserve Banks on May lb.
The details of this issue are as follows:
Total applied for - $2,340,199,000
Total accepted
- 1,501,112,000 (includes $256,033,000
*
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.471/ Equivalent rate of discount approx.
2.092$ per annum
Range of accepted competitive bids; (Excepting three tenders
b
totaling $2,500,000)
High - 99.477 Equivalent rate of discount approx.
2.069$ per annum
Low
- 99.469 Equivalent rate of discount approx.
2.101$ per annum
(32 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 16,432,000 $ 15,232,000
New York
1,676,250,000
Philadelphia
33,801,000
Cleveland
42,293,000
Richmond
"
16,814,000
Atlanta
30,428;000
Chicago
253,796,000
St. Louis
53,635,000
Minneapolis
18,037,000
Kansas City
66,944,000
Dallas
39,249,000
San Francisco
87,520,000
TOTAL $2,340,199,000 $1>501>112'00°
0O0

Accepted
1,014,564,000
13,555,000
41,607,000
14,103,000
23,023,000
192,351,000
25,207,000
14,497,000
41,176,000
28,570,000
77,227,000

±i2

mamam mam

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TREASURY DEPARTMENT
Information Service WASHINGTON, D.C.
103
IMMEDIATE RELEASE,
Monday, May 18, 1953-

H-130

Secretary of the Treasury Humphrey announced today
that holders of the $4,963,000,000 of certificates of
indebtedness maturing on June 1, and the $725,000,000 of
Treasury Bonds of 1953-55 called for redemption on June 15,
will be offered in exchange one-year 2-5/3 percent
"certificates of indebtedness, to be dated June 1.
The certificates of indebtedness will be exchanged
as of June 1.

The called bonds will be exchanged as of

June 15, subject to an interest adjustment on the new
certificates from June 1.
The subscription books on this exchange will open
on Wednesday, May 20, and will be closed in three days
at the close of business Friday, May 22.
Full details of the offering will be given in the
press statement and official circular; which will be made
public Wednesday morning. May 20.

0O0

1C4-

~4~
aaaigasaoiita for trammtmr or exchange, and theroaftar mhmmld bm prmmmmtmd md
ammudermd

with tlia aubscrlpiiom tm a fmdarml looonro Bank or Branch @r tm the

Tra&smiy OtfNurt-aMit, iilvtmm mt Uma
bond® mmt

md Cmrrmmy* Waa-fctagtam, Q. C. thm

bo deliv*r*4 at the expense md

risk of %mm holiara.

fl. W H E A L J>Kff X5I0M8
1. 4® fiscal agents of the ttalta* Stato©, fmdmrml Wammrve Bmnkm arm
authorlMd and ra^pootait to r#calva a^acrifii«s, i® Mint allotasnt® on fcho
baals and up to tbm amomtm imdlmtmd by the Umrmtmry mt thm trmmmmry to the
feitor&l ioservo Banks of th© i*®»pteitv# Ulatilcia, to isaue allotaeiit notices,
to rec@iva paptami for ««rUft«*t«a ollottod, to make delivery of certificates
on full-paid subscriptions allotted, md they may issue iataria receipts pending delivery of tha doflnltiva oartlfleataa*
2. Tho Socrotarj of tha Trmmry

may mt amy tlaa, or from tiaie to tine,

prescribe supplemental or amendatory ralee md regulations governing the offering, which will bo communicated promptly to the Federal Reserve a&nko.

(I* It* HOMFHffif,
Saorotary of tho Treasury.

ins

-3IV.

FAtmHt

1* Payment for certificates allotted hereunder must bo made on or before
«hmo 1, 19IJ, or on latar allotment, in the easo of maturing certificates
tendered In exchange, md

on or before June 1$, If 53, or on later allotment,

ia the case of called bonds tendered in exchange. The now certificates will
bo delivered on or after June 1 in the case of certificates exchanged, and on
or after June 15 in the case of called bonds exchanged.

Paytaent of the prin»

cipal amount nay ba atade only in Treasury Certificates mt Indebtedness of
series B-1953, maturing June 1, 1953, or in Treasury Bonis of 1953-55, called
for redemption on June IS, 1953, which will be accepted at par and should accompany the subscription, the full amount of interest due on the certificates surrendered will bo paid to the subscriber fallowing acceptance of the certificates.
In the case of the called bonds in coupon form, payment of accrued interest on
the now certificates from June 1, 1953 to June 1% 1953 (%.Q06S5 pmtf #1,000)
should bo made when the subscription is tendered. In the case of called registered bonds, the accrued interest will bo deducted from the amount of the check
which will bo issued in payment of final interest on the bonds surrendered.
Final interest due June 15 on bonds surrendered will bo paid, in the ease of
coupon bonds, by payiaont of June 15, 1953 coupons, which should bo detached by
noldors boforo presontation of tho bonds, and in tho oaso of registered bonds,
by checks drawn in accordance with the assignments on tho bonds surrendered.
¥.

aSSIOHHSNT OF H_»HST-U!BD BOiDS

1. Troasnry Bonds of 1953-55 in registered form tendered in psywont for
eortifloatos offarad horetmdor should bo mmtwmd

by the rogisterod payees or

assignees tbaroof to *Tho Soorotary of tho froasmry for exchange for Traasnry
Certificates of Indobtodnoss of Series 8*1954 to bo delivered to

,»

in accordance with tho general regulations of tho Treasury Department governing

-iUO

- 2 2.

Tho income derivod from the certificates shall b© subjoot to all taxes,

now or hereafter imposed under the Internal Revenue Code, or laws ajaeitdatory or
snoploaentary thereto. Tho certificates shall bo subject to ostate, inaaritaaet,
gift or other excise taxes, whether Federal or State, but shall mm exempt from all
taxation now or hereafter imposed on the principal or intorast thereof by any
State, or any of tho possessions of the United States, or by any local taxing
authority*
3. The certificates will bo acceptable to secure deposits of public moneys.
They will not bo acceptable in payment of taxes*
k* Bearer certificates will bo issued in ^taosutostlons of 11,000, $5,000,
$10,000, $100,000 and $1,000,000. the certificates will not bo Issued in registered form.
5. The certificates will be subject to the general regulations of too
Treasury Department, now or hereafter proscribed, governing United States certificates.

in. atwcsxmuK mu Aummn
1. Subscriptions will bo received at tho Federal Reserve Banks and Branches
and at tho Treasury ifeptffcsent, Washington. Banking institutions generally may
subs-it subscriptions for account of customers, but only tho Federal reserve Banks
and tho Treasury Department are authorised to not as official agencies*
2*

Tho Secretary of the Treasury reserves the right to reject any subscrip-

tion, in whole or in part, to allot lass than the amount of certificates applied
for, and to close tho books as to any or all subscriptions at any tin* without
notice; and any action no may take in these respects shall ba final. Subject to
those reservations, all subscriptions will bo allotted in full,ftllotraentnotices
will bo sent oat proaptly upon allotment.

107

mitm mk%m ot AMBUG*
2-5/i mmim fmmum cmtrimES or. mmwmmws or sinss

^*® *** x* W *

Batod and boaring inttrost trmm 4mm 1,. 1953

1953
Otptitemt Circular Mo. 923

TOASUai

B-1954

PSPIUffflff ,
"' Oflia* of tho .Secretary,
Washington, May. 20, 1953.

Fiscal Bonlc®
Bureau of tho Public Debt

i. owmmQ or mmxnmim
1. Tho Secretary of tho Treasury, pursuant to tho authority of tho Second
Liberty Bond Hot, as amended, invites subscriptions from trie people of tho United
Statos for oortificatos of indebtedness of the United States, designated 2-5/8
percent Treasury Certificates of Indebtedness of Sorlos 1*1954, la exchange for
1-7/S percent Treasury Oortifleatos of Indebtedness of Series B-1953, maturing
Juno 1, 1953, or 2 poroont Troasnry Bonds of 1953-51, d&tmd October ?, 1940,
due June 15, 1955, called for redemption Juno 15, 1953. Exchanges will bo node
par for par on Juno 1 in the case of the certificates of indebtedness of Series
B-1953, and par for par on Juno 15, with an adjustment of interest on that date,
in tho case of tne called bonds.

xi. tmmnim or cmrincms
1. Tho certificates will bo dated June 1, 1953, mm will boar interest
from that date at tho rate of 2-5/8 pereent per annum, payable with tho principal at maturity on June 1, 1954. Thay will not bo subject to call for redemption prior to natmrity.

iu8

tumult* tmmm mmmmm9

U yf2^J-

aocretary of the Troa#i-ry Humphrey today announced the dotailc of
tho offering, through the Federal Reserve Banks, of 2*5/8 percent Trsasury
Certificate of Indebtedness of Sorias M t f k f open on an exchange basis
to holders of 1-7/8 percent Treasury Certificate of Indebtedness of
Sariaa B-19>3, in the mmmmt of -^,962,885,000, featuring June 1, 19$39
or t percent Treasury Bonds of 1953-55, in the amount of 1721,677,900,
0iOla4 tor rmdmmptimm on Jtuta 15, 1953. a-xehangee will ba nada par for
par on Juno X in tho case of tho f*tjs*lag oartIftestes, and par for par
on June 1$, with an adjustment of tntaroat mm that mmtm9 in the case of
the called bonds. The mm certificates will ba delivered oa or altar
Juno 1 tn tho case of certificates ^changed, and on or after June 15 is
the case of called bonis exchanged. Cash subscriptions will not ba
received.
Tho certificate now offered will ba dated June 1, 1953, and will
boar infeorost from that data at tno rata af 44/4 iHtroont per amain, payable with tho principal at mtnrity on June 1, 19$h. Tkmy vill ba issued
In bearer form only, in denominations of $1*444§ $$,000, 110,000, f 100,000
and #l,000,000t
^Tibecriptions will bo received at the Fedora! Heserve Sanies and
Branches and at the Office of tho Treasurer of tho United States, Washington,
and should bo accompanied by a like faco sjsomisb of tho securities to ba
exchanged, and whoro called bends in coupon form a m presented by payment
of accrued interest on the now cortif ic&tes from June 1 to Juno 15, at the
rata of I1.0QN9F par H,OO0. In tno oasa mt registered bonds surrendered,
final intorost will bo computed on the sano basin mmd w i U ba paid to the
roistered holders or their assignees. Tbo full anonnt of interest due on
the maturing certificates will bo paid to the subscribers following
ajHw^jjp^psjrvOjsoow'^aF

^BP^O*

OJRJSJ^SP

9^atm mt aaa. imaMmmmam&aw

a

The subscription books will close for the receipt of all subscriptions
at tho oloao Of bnainoag Friday, May 22. Subscriptions addressed to a
Federal floservo Ban* or Branch, or to the Treasurer of too United States,
and placed in the siail boforo midniRht Hay ft will bo considered as having
boon entered boforo the oloao of tbo Bubecription bool-s.
Taa Ua% of tarn- official ©-troular foUowat

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
1HQ

RELEASE MORNING NEWSPAPERS,
Wednesday, May 20, 1953.

H-131

Secretary of the Treasury Humphrey today announced the details
of the offering, through the Federal Reserve Banks, of 2-5/8
percent Treasury Certificates of Indebtedness of Series B-1952*,
open on an exchange basis to holders of 1-7/8 percent Treasury
Certificates of Indebtedness of Series B-1953, in the amount of
$4,962,885,000, maturing June 1, 1953, or 2 percent Treasury Bonds
of 1953-55, in the amount of $724,677,900, called for redemption on
June 15, 1953. Exchanges will be made par for par on June 1 in the
case of the maturing certificates, and par for par on June 15, with
an adjustment of interest on that date, in the case of the called
bonds. The new certificates will be delivered on or after June 1
in the case of certificates exchanged, and on or after June 15 in
the case of called bonds exchanged. Cash subscriptions will not
be received.
The certificates now offered will be dated June 1, 1953, and
will bear interest from that date at the rate of 2-5/8 percent per
annum, payable with the principal at maturity on June 1, 195^.
They will be issued in bearer form only, in denominations of
$1,000, $5,000, $10,000, $100,000 and $1,000,000.
Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Office of the Treasurer of the United States,
Washington, and should be accompanied by a like face amount of the
securities to be exchanged, and where called bonds in coupon form
are presented by payment of accrued interest on the new certificates
from June 1 to June 15, at the rate of $1.00685 per $1,000. In the
case of registered bonds surrendered, final interest will be
computed on the same basis and will be paid to the registered
holders or their assignees. The full amount of interest due on
the maturing certificates will be paid to the subscribers following
acceptance of the certificates.
The subscription books will close for the receipt of all
subscriptions at the close of business Friday, May 22. Subscriptions addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, and placed in the mail before
midnight May 22 will be considered as having been entered before
the close of the subscription books.
The text of the official circular follows:

110
- 2-

UNITED STATES OF AMERICA
2-5/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES B-195^
Dated and bearing interest from June 1,1953 Due June 1, 1954

1953
Department Circular No. 923

TREASURY DEPARTMENT,
Office of the Secretary
Washington, May 20,1953

Fiscal Service
Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority
of the Second Liberty Bond Act, as amended, invites subscriptions
from the people of the United States for certificates of indebtedness of the United States, designated 2-5/8 percent Treasury
Certificates of Indebtedness of Series B-195^, in exchange for
1-7/8 percent Treasury Certificates of Indebtedness of Series
B-1953, maturing June 1, 1953, or 2 percent Treasury Bonds of
1953-55, dated October 7, 1940, due June 15, 1955, called for
redemption June 15, 1953. Exchanges will be made par for par on
June 1 in the case of the certificates of Indebtedness of Series
B-1953, and par for par on June 15, with an adjustment of interest
on that date, in the case of the called bonds,
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated June 1, 1953, and will bear
interest from that date at the rate of 2-5/8 percent per annum,
payable with the principal at maturity on June 1, 195^- They will
not be subject to call for redemption prior to maturity.
2: The income derived from the certificates shall be subject
to all taxes, now or hereafter imposed under the Internal Revenue
Code, or laws amendatory or supplementary thereto. The
certificates shall be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but shall be exempt from
all taxation now or hereafter imposed on the 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 moneys. They will not be acceptable in payment of taxes.

- 34. Bearer certificates will be issued in denominations of
$1,000, $5,000, $10,000, $100,000 and $1,000,000. The certificates
will-not be issued in registered form.
5. The certificates will be subject to the general regulations
of the Treasury Department, now or hereafter prescribed, governing
United States certificates.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks
and Branches and at the Treasury Department, Washington. Banking
institutions generally may submit subscriptions for account of
customers, but only the 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 subscription, 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 for certificates allotted hereunder must be made
on or before June 1, 1953, or on later allotment, in the case of
maturing certificates tendered In exchange, and on or before
June 15, 1953, or on later allotment, in the case of called bonds
tendered in exchange. The new certificates will be delivered on
or after June 1 in the case of certificates exchanged, and on
or after June 15 In the case of called bonds exchanged. Payment
of the principal amount may be made only in Treasury Certificates
of Indebtedness of Series B-1953, maturing June 1, 1953, or in
Treasury Bonds of 1953-55, called for redemption on June 15, 1953,
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. In the case of the called bonds in coupon form,
payment of accrued interest on the new certificates from June' 1,
1953 to June 15, 1953 ($1.00685 per $1,000) should be made when the
subscription is tendered. In the case of called registered bonds,
the accrued interest will be deducted from the amount of the check
which will be issued in payment of final interest on the bonds
surrendered. Final interest due June 15 on bonds surrendered will
be paid, in the case of coupon bonds, by payment of June 15, 1953
coupons, which should be detached by holders before presentation
of the bonds, and in the case of registered bonds, by checks drawn
in accordance with the assignments on the bonds surrendered.

- 4-

1*2
1M.

V.

M>».

&*,

ASSIGNMENT OF REGISTERED BONDS

1. Treasury Bonds of 1953-55 in registered form tendered in
payment for certificates offered hereunder should be assigned by
the registered payees or assignees thereof to "The Secretary of
the Treasury for.exchange for Treasury Certificates of.Indebtedness
of Series B-195^- to be delivered to
,"
in accordance with the general regulations of the Treasury
Department governing assignments for transfer or exchange, and
thereafter should be presented and surrendered with the subscription
to a Federal Reserve Bank or Branch or to the Treasury Department,
Division of Loans and Currency, Washington, D. C. The bonds must
be delivered at the expense and risk of the holders.
VI. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve
Banks are authorized and requested to receive subscriptions, to make
allotments on the basis and up to the amounts indicated by the
Secretary of the Treasury to the Federal Reserve Banks of the
respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates
on full-paid subscriptions allotted, and they may issue interim
receipts pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from
time to time, prescribe supplemental or amendatory rules and
regulations governing the offering, which will be communicated
promptly to the Federal Reserve Banks.

G. M. HUMPHREY,
Secretary of the Treasury.

Ill
«L X. Kj

Jjxyi
X.
to saoall
n*$fct»g .mm m

mt Mat

wmlmm ter tarn
£•

by this

i.

4*

with

fM«J

tfcl*

sxrsjattt in tM

ft.

«|ja>

ft* tft* JU^Uag' affile? *sf tlte

t with mmUmmml mm&M
f*

and fiscal po lie ion

tottiilli

F^licy inttnt, af

tto S^crotario>» of tte

«3 <*}

11

Statement by W. Randolph Burgess, Deputy
to the Secretary of the Treasury, Before Senate Banking
Committee, on the Treasury's Position on Loans to Small Business
May 20, 1953
1. Under present conditions, there should be some
single Governmental Agency authorized to make loans to
small business, acting as a lender of last resort and
as a kind of,safety valve for the review of exceptional
cases.
2. This Agency should not compete with other lenders,
but should support and supplement them.
3. Loans by this Agency should avoid subsidizing
marginal concerns which might offer unfair and dangerous
competition to other business.
4. This Agency should use the minimum amount of
Government money, and to that end should - as far as possible
extend credit in the form of guarantees to other lenders,
and should use the available credit machinery of the banks
and the Federal Reserve Banks.
5. The Reconstruction Finance Corporation should be
terminated
6. The lending policy of the Government's lending
Agencies should be consistent with national credit and
fiscal policies.
7. As an aid in accomplishing these objectives,
loans by the Agency should be under the general supervision
of the Loan Policy Board, of which the Secretaries of the
Treasury and Commerce should be members.
H-132

oOo

115

- 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 42 and 117 (a) (l) of the Internal Revenue Code, as

amended by Section 115 of the Revenue Act of 1941, the amount of discoun
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. Accor

ingly, the owner of Treasury bills (other than life insurance companies)

issued hereunder need include in his income tax return only the differen
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.

116

- 2 -

mum

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 ran

of accepted bids. Those submitting tenders will be advised of the accept-

ance or rejection thereof. The Secretary of the Treasury expressly reserv

the right to accept or reject any or all tenders, in whole or in part, an
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 thr
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on May 28. 1953 , In cash or other immediately available
TOfunds or in a like face amount of Treasury bills maturing May 28, 1953

p?
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

117
-a -x i

-J 33

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday. May 21. 195^
LTLmm.

ipaljs

The Secretary of the,Treasury, by this public notice, invites tenders
for $1,500,000.000 , or thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing May 28, 1953 , in
the amount of $1,300,725,000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated May 28, 1953 , and will mature

m
August 27, 1953

"~

, when the face amount will be payable without in-

J__-J

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
Daylight Saving
closing hour, two o'clock p.m., Eastern/§fe§s£s&s_ time, Monday, May 25. 1QS^
Tenders will not be received at the Treasury Department, Washington, Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.92$. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the"

special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

'.-11-8
cs__ .J-

RELEASE MORNING NEWSPAPERS,
Thursday, May 21, 1953.

KM*

H-133-

•{-. The Secretary of the Treasury, by this public notice, invites
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury bills,
for cash:and in exchange for Treasury bills maturing May 28, 1953, in
the amount of $1,300,725,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The
bills of: this series will be dated May 28, 1953, and will mature
Augusta27-, 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 Daylight Saving
time,. Monday, May 25, 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 may not be used. It Is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities.- Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders, will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for

- 2accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on May 28, 1953, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing May 28, 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 interest1 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 :ii'
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 frbrn
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

113
« — •£,, Kmf

- 4-

\*yj^>^
A•

§ X^f Xmy^u^

jb>

Excess profits tax

The excess profits tax highlights the interrelated
economic and budgetary aspects of the problem. This tax is
of concern to many small businesses. Because of the need
to maintain revenue until expenditures are reduced,
President Eisenhower, in his message to the Congress on
May 20, recommended the extension of the excess profits
tax for six months beyond Its present expiration date of
June 30. In doing so, he stated that:
"... This action seems necessary in spite of the
fact that this is an undesirable way of taxing
corporate profits.
"Though the name suggests that only excessive
profits are taxed, the tax actually penalizes thrift
and efficiency and hampers business expansion. Its
impact is especially hard on successful- small
businesses which must depend on retained earnings for
growth. These disadvantages of the tax are now
widely recognized. I would not advocate its extension
for more than a matter of months. However, under
existing circumstances, the extension of the present
law is preferable to the increased deficit caused by
its immediate expiration or to any short-term
substitute tax.
"The scheduled expiration of the tax in June
would be misleading in its conseqaiences. It would
simply mean that the tax would be applied at
half the full rate, 15 percent, to all of this
year's business income. Therefore, its bad
effects in penalizing efficiency and encouraging
waste will continue through this year In any'
event. The extension of the tax through December
1953 would maintain the full 30 percent rate for
the entire year and would produce a gain in
revenue of 800 million dollars in the fiscal year
1954."
The termination of the excess profits tax at the
end of this year, in accordance with the schedule
recommended by the President, will remove one of the major
tax problems of small business.

120

- 144 He noted further that:
n

The reductions in excise taxes, i M c h would tak©

place next April 1 under present law, Bhonli he
resoindel pending tk® development of 4 hettmr
system of •»!«§ taxation, **
~^Ttie interest of small business la the Furtive ©apimsii
to be plactd on excise tmm® mi the mlmmtlon of item to be

Idl

- 14 H. %ci§e taxes

?

:

jjne of the speelfio- questions whleh your Cossaittte
hmf® raised relates to th# effects of tht present system
of /excise .taxation on small business*
fhe fexeises are the third largest nonree of Federal
revenue and ara now imposed on a variety of goods and
i

services^ some of which are true luxuries ant others
ordinary necessities*

Some of the items taxed are $%*Q&mm&

by prosperous industries! others are supplied by industries
that 4re experiencing economic distress, even at a time
mkmq the level of business activity in general is very
high. Some of the iteas taxed are pr#dnaed bj industries ia
liiioh the business unit is comparatively small.
/dU^-^
•^%

As President lisenhwtr stated in his message of lay 20
to the Congressi
w

fhe wide variety of existing excise rates makes little

economic sense and lead® to improper discrimination
between industries and mmg

consumers* Specific

proposals for a modified system of excise taxation
will be included in the recei»ndatio-ns for tax
revisions that will be submitted to the Congress
next January.*

•< r% <n

- 11 I can assure you that in our investigation and planning
on tax matters In the Treasury we welcome the type of information and suggestions developed by your Committee. We are
working in close cooperation with the Congressional tax
committees and staffs. In addition to drawing upon the
results of past studies and proposals on tax policy affecting
small business, we are also consulting with various groups
outside the Government which have been examining the operation of the tax system as well as informal groups which we
have asked for assistance in our efforts to improve the tax
laws and administrative procedures.
With this broad base of information and guidance, we are
striving to do our part in helping to solve the difficult
problems confronting us. At the proper time, recommendations
for legislative revision will be submitted to the Congress
through the Committee on Ways and Means, which has primary
responsibility in revenue matters.
It would be false optimism to assume that all the problems
of small business could be solved by revisions in the tax law,
or that quick and easy solutions to the tax aspects of the
problem which confronts small business are readily available
and can be put into effect immediately. However, we are
determined to bring to the solution of these problems the
best available skill and knowledge and to proceed with
corrective rules and legislation as rapidly as budgetary and
other limitations will permit.

0O0

y<L6

- 10 Steps have already been taken to facilitate compliance
with the excise tax laws. The audit of excise and income
tax liabilities is being combined in one coordinated operation so as to minimize the interference with business
operating routine. A new simplified excise tax return,
Form 720, is in process of preparation. It will cover all
of the Federal excises and will replace 8 different excise
returns now being used. Quarterly excise returns are already
scheduled to replace monthly returns after July 1 of this
year. Consideration is being given to a further simplification by substituting annual for quarterly returns.
Small business has a special interest in the rules
governing the deduction of such items as reasonable salary
compensation and research and development expenses.
Criticism is frequently made that there is too much
inquiry by revenue agents as to the reasonableness of wage
or salary deductions. Present law specifies as trade or
business expenditures ordinary and necessary expenses in carrying on the business, including a reasonable allowance for
salaries or other compensation for personal services actually
rendered. The test of reasonableness has frequently been
a source of irritating controversy. This is a matter which
merits sympathetic consideration.
On the other hand, business has an obligation on its
part not to load tax returns with extravagant and unnecessary
deductions in the nataire of disguised compensation for business
executives. Widespread publicity has been given to the misuse
of expense deductions under high tax rates. This is a matter
receiving careful attention.
Research and development expenditures are frequently
essential to the success of small, growing businesses. Over
a period of years, the Bureau of Internal Revenue has generally
allowed taxpayers incurring research and development costs to
follow a consistent practice to expense or capitalize them
at their option. The option to. expense, however, does not
ordinarily apply to capital items having a substantial life
beyond one year or adaptable for other use, or to the cost
of obtaining patents. While the expensing of research and
development costs has definite advantages, it is not always
feasible for small business which does not have a regular
research and development budget. Measures to clarify and
liberalize the present treatment, particularly with a view to
insuring that the expensing option is fully available to
small business, will receive comprehensive study.

124

- 9III.

Simplification and administrative attitudes

Small business, in common with all taxpayers, has a
right to expect complete honesty and integrity in the tax
collection service. It should be able to rely on the
justice and the fairness of the Government's attitude.
There are also a number of more specific ways in which the
Government's attitude and treatment of the taxpayers can
accomplish much in lightening the practical load of tax
payment.
One of these is the matter of certainty. We are seeking
ways in which we can give the taxpayer assurance that his
tax planning will not be arbitrarily upset'or that the same
type of questions will not be raised over and over again.
Clarity and simplicity in the tax rules and their
application are also of peculiar importance to small
business which is not well equipped to cope with complex
provisions, to avoid possible penalties, or to take full
advantage of favorable treatment.
It should also be possible to reduce interference
with the management of business and unnecessary sources of
dispute and friction. Controversy over such technical
matters as the allocation of income and deductions among
different tax years can be reduced.
An illustration of an area which we are examining with
a view to clarification and simplification is the tax treatment of pension and retirement plans and so-called fringe
benefits. Illogical and discriminatory results have developed in recent years under existing law and regulations.
These are frequently detrimental to small business which
cannot fully realize the benefits available without expensive
technical guidance and counsel.
Another example is in the determination of depreciation
and related allowances on fixed assets. Administrative
attitudes are most important in giving the taxpayer some
assurance that irritating and useless adjustments will not
be made in his depreciation rates and that his allowance
will conform broadly with reasonable managerial judgments
as to the appropriate rate of write-off. Commissioner
Andrews has recently announced the establishment of a new
administrative policy with respect to depreciation, to
reduce controversies with taxpayers. Under the new policy
the taxpayer is entitled to reasonable assurance of stability
in depreciation
rates
consistent with fair and
effective
enforcement of
the statutes.

1
Cm'

-8In view of totaJXrevenue nep-gs, continuing reliance
will have to be placed on excise taxation. Jme percentage
of the tax revenires which the excises prodaifce in the United
States is relatively smaller In the fisozO. year 1952, all
the excisesv<5ombined promiced only 13.ypercent of total
tax revenue's, as compared with 24.2 percent in Canada. The
greater^eliance whj^fh Canada place^r on the excises is not
unreined to its ability to reduce income tax rates
substantially.
The interest of small business in the relative emphasis
to be placed on excise taxes and the selection of items to be
taxed is appreciated in the Treasury Department. Moreover,
we are fully aware of the importance, particularly for the
small business, of reducing the tasks of compliance imposed
on manufacturers and retailers to the minimum consistent with
fair and uniform enforcement. Some of the steps being taken
in this direction will be mentioned later.
II. Independent existence of small business
The problem of encouraging vigorous small business is
two-fold. It i's not enough merely to facilitate the growth
of such business. Encouragement for its continued independent
existence is equally important.
In this connection, attention must be given to the
problems of financing estate tax liabilities and the tax
treatment of the recapitalization of a corporation which
arise from the partial withdrawal of the investment of an
important shareholder who seeks to give his estate greater
liquidity, diversify his investments during his declining
years, or to effect an orderly transition to new active
management.
While various limited provisions have been developed
to meet these problems, much remains to be done in order
to prevent adverse effects on the flow of business investment.
The existing rules governing the tax status of recapitalizations and partial liquidation are highly technical, rigorous,
and uncertain. Complete sale or merger, usually with a
larger corporation, is frequently preferred to avoid these
risks and complexities. The consequence is the extinction
of the business as an independent entity. Amendments to
the law and changes in administrative policy which may
reduce the existing tax impetus to mergers deserve careful
study.

126

- 7E.

Double taxation of dividends

The fundamental problem of the double taxation of
dividend income raises special problems in connection with
small closely held companies. The small business aspect will
necessarily be considered carefully in the work on methods of
coordinating corporate and individual income taxes to alleviate
double taxation. Here again the loss of revenue may be
large, and desirable changes may have to be delayed or
adopted on a limited scale.
F. Individual income taxes
The level of individual income tax rates is of crucial
importance for small business. The existing high individual
rates threaten to dry up the chief sources of risk capital'
funds and to reduce the willingness of potential investors
to bear the type of risk associated with small, new business.
G. Investment loss deduction
One of the most signigicant proposals for the modification
of the tax law to encourage investment in small business and
other risky ventures would provide more liberal recognition
of capital losses as offsets against ordinary income. Under
present law, investment losses of individuals are treated
as capital losses and as such are deductible only against
capital gains plus $1,000 annually of ordinary income. Many
feel that this tax treatment results in a "heads I win, tails
you lose" situation which reduces the relative attractiveness
of the type of risk investment involved in a small business
undertaking. One possible remedy would be to increase the
extent to which investment losses can be offset against
ordinary income.
H. Excise taxes
One of the specific questions which your Committee
has raised relates to the effects of the present system
of excise taxation on small business.
The excises are the third largest source of Federal
revenue and are now imposed on a variety of goods and
services, some of which are true luxuries and others
ordinary necessities. Some of the items taxed are produced
by prosperous industries; others are supplied by industries
that are experiencing economic distress, even at a time
when the level of business activity in general is very
high. Some of the items taxed are produced by industries in
which the business unit is comparatively small.
'

•"

•

n m i n i

11

•

;

i' mini 11

n

HI

i

in

II 11

«U I

- 6C.

Section 102 surtax on surplus accumulation

Another provision of the tax laws of special interest
to small business is the Section 102 surtax on improper accumulation of surplus. While it is generally recognized that
some device of this nature is indispensable to prevent tax
avoidance, Section 102 has been an important source of
controversy, primarily in its application to small business.
Critics have charged that Section 102 discriminates against
small business retaining earnings in the form of liquid
cash reserves for future use; occasions fear and uncertainty;
retards expansion or causes premature or unwise expansion;
and promotes undesirable business practices to divert profits
which would otherwise be vulnerable to the penalty tax.
This whole area is being carefully studied with a view
to improved administration and possible legislative recommendations. The rate and basic structure of the tax penalty
as well as the statutory criteria for its application need
to be reviewed. A specific administrative aspect which villi
need attention is the so-called "immediacy test" which makes
it difficult for a small business to accumulate earnings
gradually from year to year for ultimate use on sizeable
expansion projects. Large businesses, which can finance complete investment projects out of current earnings or justify
an accumulation on the basis of definite and more or less
formal plans, have been reasonably free from this problem.
D. Corporate surtax exemption
The present surtax exemption assures corporate business
a reduced rate on the first $25,000 of its earnings and a
substantial reduction of the over-all effective rate over
a considerable range of income above that level. The
surtax exemption was introduced in 1950 as a means of
eliminating the high notch rates previously applied to
income between $25,000 and $50,000.
Basically, the reduced rate on small corporate incomes
is designed for the assistance of small businesses dependent
primarily on retained earnings for growth. A graduated tax
for corporations cannot be justified on the same basis as
progressive taxation of individuals since the size of the
income of the business is not necessarily related to that
of the individual owner. Whether the present surtax
exemption is adequate for its intended purpose under present
conditions is subject to review. Attractive as it may
appear as a means of easing the tax impact on small concerns,
even
substantial
a moderate
revenue
increase
loss. in the surtax exemption involves a

128

- 5B.

Depreciation

One of the positive steps that may be taken to reduce
obstacles to the dynamic flow of investment is an improved
treatment of depreciation in computing taxable income. This
is of particular importance to small business.
The depreciation allowance is essentially a matter of
timing of deductions, but the speed of the tax-free recovery
of costs is of critical importance with respect to the willingness to incur risk, the working capital position, and
ability of the business to borrow.
A liberalization of the present rules governing depreciation so as to allow management greater discretion would
increase total investment, particularly in risky ventures,
stimulate a generally higher level of national income and
economic activity, and incidentally, but not less important,
•remove sources of irritation and fruitless controversy in
the administration of the tax laws.
A more liberal depreciation policy would also ease the
financial problems of many small, businesses. Working capital
which the business could plough back into its operations or
use to write off bank loans would be increased.
Investment risk would be reduced by a quicker tax-free
recovery of such outlays. The credit position of the small
business would be improved, since more liberal depreciation
allowances would give the business and its creditors a claim
to receipts which Is prior to the tax liability. This would
tend to provide better access to bank funds for hard-pressed
businesses which have no recourse to the ordinary sources
of equity capital.
One of the most direct ways of encouraging what is
broadly termed "investment incentive" is to provide the
capital necessary to back up a potential investment decision.
All the incentive in the world will be futile unless business
has adequate funds.
While the Administration's objectives and sympathies
in this area are clearly defined, there remain many questions
as to methods and extent of change. Some liberalization
may be effected through regulations issued under existing
statutory provisions. More extensive changes may require
legislation. The adoption of a substantial program in this
character would require careful planning, and the initiation
of the new rules must be related to the general budgetary
situation.

«— a., w

- 11 I can assure you that in our investigation and planning
on tax matters in the Treasury we welcome the type of information and suggestions developed by your Committee. We are
working in close cooperation with the Congressional tax
committees and staffs. In addition to drawing upon the
results of past studies and proposals on tax policy affecting
small business, we are also consulting with various groups
outside the Government which have been examining the operation of the tax system as well as informal groups which we
have asked for assistance in our efforts to improve the tax
laws and administrative procedures.
With this broad base of information and guidance, we are
striving to do our part in helping to solve the difficult
problems confronting us. At the proper time, recommendations
for legislative revision will be submitted to the Congress
through the Committee on Ways and Means, which has primary
responsibility in revenue matters.
It would be false optimism to assume that all the problems
of small business could be solved by revisions in the tax law,
or that quick and easy solutions to the tax aspects of the
problem which confronts small business are readily available
and can be put into effect immediately. However, we are
determined to bring to the solution of these problems the
best available skill and knowledge and*to proceed with
corrective rules and legislation as rapidly as budgetary and
other limitations will permit.

0O0

130

- 10 Steps have already been taken to facilitate compliance
with the excise tax laws. The audit of excise and income
tax liabilities is being combined in one coordinated operation so as to minimize the interference with business
operating routine. A new simplified excise tax return,
Form 720, is in process of preparation. It will cover all
of the Federal excises and will replace 8 different excise
returns now being used. Quarterly excise returns are already
scheduled to replace monthly returns after July 1 of this
year. Consideration is being given* to a further simplification by substituting annual for quarterly returns.
Small business has a special interest in the rules
governing the deduction of such items as reasonable salary
compensation and research and development expenses.
Criticism is frequently made that there is too much
inquiry by revenue agents as to the reasonableness of wage
or salary deductions. Present law specifies as trade or
business expenditures ordinary and necessary expenses in carrying on the business, including a reasonable allowance for
salaries or other compensation for personal services actually
rendered. The test of reasonableness has frequently been
a source of irritating controversy. This is a matter which
merits sympathetic consideration.
On the other hand, business has an obligation on its
part not to load tax returns with extravagant and unnecessary
deductions in the nature of disguised compensation for business
executives. Widespread publicity has been given to the misuse
of expense deductions under high tax rates. This is a matter
receiving careful attention.
Research and development expenditures are frequently
essential to the success of small, growing businesses. Over
a period of years, the Bureau of Internal Revenue has generally
allowed taxpayers incurring research and development costs to
follow a consistent practice to expense or capitalize them
at their option. The option to expense, however, does not
ordinarily apply to capital items having a substantial life
beyond one year or adaptable for other use, or to the cost
of obtaining patents. While the expensing of research and
development costs has definite advantages, it is not always
feasible for small business which does not have a regular
research and development budget. Measures to clarify and
liberalize the present treatment, particularly with a view to
insuring that the expensing option is fully available to
small business, will receive comprehensive study.

.1 ^1
-_ l-/JL

- 9III.

Simplification and administrative attitudes

Small business, in common with all taxpayers, has a
right to expect complete honesty and integrity in the tax
collection service. It should be able to rely on the
justice and the fairness of the Government's attitude.
There are also a number of more specific ways in which the
Government's attitude and treatment of the taxpayers can
accomplish much in lightening the practical load of tax
payment.
One of these is the matter of certainty. We are seeking
ways in which we can give the taxpayer assurance that his
tax planning will not be arbitrarily upset or that the same
type of questions will not be raised over and over again.
Clarity and simplicity in the tax rules and their
application are also of peculiar importance to small
business which i,s not well equipped to cope with complex
provisions, to ^.aoid possible penalties, or to take full
advantage of favorable treatment.
It should also be possible to reduce interference
with the management of business and unnecessary sources of
dispute and friction. Controversy over such technical
matters as the allocation of income and deductions among
different tax years can be reduced.
An illustration of an area which we are examining with
a view to clarification and simplification is the tax treatment of pension and retirement plans and so-called fringe
benefits, illogical and discriminatory results have developed in recent years under existing law and regulations.
These are frequently detrimental to small business which
cannot fully realize the benefits available without expensive
technical guidance and counsel.
Another example is in the determination of depreciation
and related allowances on fixed assets. Administrative
attitudes are most important in giving the taxpayer some
assurance that irritating and useless adjustments will not
be made in his depreciation rates and that his allowance
will conform broadly with reasonable managerial jaidgments
as to the appropriate rate of write-off. Commissioner
Andrews has recently announced the establishment of a new
administrative policy with respect to depreciation, to
reduce controversies with taxpayers. Under the new policy
the taxpayer is entitled to reasonable assurance of stability in depreciation rates consistent with fair and
effective enforcement of the statutes.

1"?
•*" "

mm

-8In view of total revenue neb4s, continuing reliance
will have to\be placed on excise taxation. The percentage
of the tax revenues which the excises^produce in the United
States is relatively small. In the fiscal year 1952, all
the excises combined produced only 13.7 percent of total
tax revenues, as\ compared with 24.2 percentNin Canada. The
greater reliance \\rhich Canada places on the excises is not
unrelated to Its ability to reduce income tax \ates
substantially.
\
The interest of small business in the relative emphasis
to be placed on excise taxes and the selection of ite^s to be
taxed Is appreciated in the Treasury Department. Moreover,
we are fully aware of the importance, particularly for the
small, business, of reducing the tasks of compliance imposed
on manufacturers and retailers to the minimum consistent with
fair and uniform enforcement. Some of the steps being taken
in this direction will be mentioned later.
±1. Independent existence of small business
The problem of encouraging vigorous small business is
two-fold, it is not enoaigh merely to facilitate the growth
of such business. Encouragement for its continued independent
existence is equally important.
In this connection, attention must be given to the
problems of financing estate tax liabilities and the tax
treatment of the recapitalization of a corporation which
arise from the partial withdrawal of the investment of an
important shareholder who seeks to give his estate greater
liquidity, diversify his investments during his declining
years, or to'effect an orderly transition to new active
management.
While various limited provisions have been developed
to meet these problems, much remains to be done in order
to prevent adverse effects on the flow of business Investment.
The existing rules governing the tax status of recapitalizations and partial liquidation are highly technical, rigorous,
and uncertain. Complete sale or merger, usually with a
larger corporation, is frequently preferred to avoid these
risks and complexities. The consequence is the extinction
of the business as an independent entity. Amendments to
the law and changes in administrative policy which may
reduce the existing tax impetus to mergers deserve careful
study.

33

- 7E.

Double taxation of dividends

The fundamental problem of the double taxation of
dividend income raises special problems in connection with
small closely held companies. The small business aspect will
necessarily be considered carefully in the work on methods of
coordinating corporate and individual income taxes to alleviate
double taxation. Here again the loss of revenue may be
large, and desirable changes may have to be delayed or
adopted on a limited scale.
F. Individual income taxes
The level of individual income tax rates is of crucial
importance for small business. The existing high individual
rates threaten to dry up the chief sources of risk capital
funds and to reduce the willingness of potential investors
to bear the type of risk associated with small, new business.
G. Investment loss deduction
One of the- most signigicant proposals for the modification
of the tax law to encourage investment in small business and
other risky ventures would provide more liberal recognition
of capital losses as offsets against ordinary income. Under
present law, investment losses of individuals are treated
as capital losses and as such are deductible only against
capital gains plus $1,000 annually of ordinary income. Many
feel that this tax treatment results in a "heads I win, tails
you lose" situation which reduces the relative attractiveness
of the type of risk investment involved in a small business
undertaking. One possible remedy would be to increase the
extent to which investment losses can be offset against
r
ordinary income.
H. Excise taxes
One of the specific questions which your Committee
has raised relates to the effects of the present system
of excise taxation on small business.
The excises are the third largest source of Federal
revenue and are now imposed on a variety of goods and
services, some of which are true luxuries and others
ordinary necessities. Some of the items taxed are produced
by prosperous industries; others are supplied by industries
that are experiencing economic distress, even at a time
when the level of business activity in general is very
high. Some of the items taxed are produced by industries in
which the business unit is comparatively small.

134

- 6C

Section 102 surtax on surplus accumulation

Another provision of the tax laws of special interest
to small business is the Section 102 surtax on improper accumulation of surplus. While it is generally recognized that
some device of this nature is indispensable to prevent tax
avoidance, Section 102 has been an Important source of
controversy, primarily In its application to small business.
Critics have charged that Section 102 discriminates against
small business retaining earnings in the form of liquid
cash reserves for future use; occasions fear and uncertainty;
retards expansion or causes premature or unwise expansion;
and promotes undesirable business practices to divert profits
which would otherwise be vulnerable to the penalty tax.
This whole area is being carefully studied with a view
to improved administration and possible legislative recommendations. The rate and basic structure of the tax penalty
as well as the statutory criteria for its application need
to be reviewed. A specific,administrative aspect which will
need attention is the so-called "immediacy test" which makes
it difficult for a small business to accumulate earnings
gradually from year to year for ultimate use on sizeable
expansion projects. Large businesses, which can finance complete investment projects out of current earnings or justify
an accumulation on the basis of definite and more or less
formal plans, have been reasonably free from this problem.
D. Corporate surtax exemption
The present surtax exemption assures corporate business
a reduced rate on the first $25,000 of its earnings and a
substantial reduction of the over-all effective rate over
a considerable range of income above that level. The
surtax exemption was introduced in 1950 as a means of
eliminating the high notch rates previously applied to
income between $25,000 and $50,000.
Basically, the reduced rate on small corporate incomes
is designed for the assistance of small businesses dependent
primarily on retained earnings for growth. A graduated tax
for corporations cannot be justified on the same basis as
progressive taxation of individuals since the size of the
income of the business is not necessarily related to that
of the Individual owner. Whether the present surtax
exemption is adequate for its intended purpose under present
conditions is subject to review. Attractive as. it may
appear
as a means
ofloss,
easing
the surtax
tax impact
on small
concerns,
even
substantial
a moderate
revenue
increase
in .the
exemption
involves
a
-'"

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1«liiilnijii

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1 Qc;

- 5B.

Depreciation

One of the positive steps that may be taken to reduce
obstacles to the dynamic flow of investment is an improved
treatment of depreciation in computing taxable income. This
is of particular importance to small business.
The depreciation allowance is essentially a matter of
timing of deductions, but the speed of the tax-free recovery
of costs is of critical importance with respect to the willingness to incur risk, the working capital position, and
ability of the business to borrow.
A liberalization of the present rules governing depreciation so as to allow management greater discretion would
increase total investment, particularly in risky ventures,
stimulate a generally higher level of national income and
economic activity, and incidentally, but not less important,
remove sources of irritation and fruitless controversy in
the administration of the tax laws,
A more liberal depreciation policy would also ease the
financial problems of many small, businesses. Working capital
which the business could plough back into its operations or
use to write off bank loans would be increased.
Investment risk would be reduced by a quicker tax-free
recovery of such outlays. The credit position of the small
business would be improved, since more liberal depreciation
allowances would give the business and its creditors a claim
to receipts which is prior to the tax liability. This would
tend to provide better access to bank funds for hard-pressed
businesses which have no recourse to the ordinary sources
of equity capital.
One of the most direct ways of encouraging what is
broadly termed "investment incentive" is to provide the
capital necessary to back up a potential investment decision.
All the incentive in the world will be futile unless business
has adequate funds.
While the Administration's objectives and sympathies
in this area are clearly defined, there remain many questions'
as to methods and extent of change. Some liberalization
may be effected through regulations issued under existing
statutory provisions. More extensive changes may require
legislation. The adoption of a substantial program in this
character would require careful planning, and the initiation
of the new rules must be related to the general budgetary
situation.

KM--

\J

-

A*

*f -

Excess profits tax

The excess profits tax highlights the interrelated
economic and budgetary aspects of the problem. This tax is
of concern to many small businesses. Because of the need
to maintain revenue until expenditures are reduced,
President Eisenhower, in his message to the Congress on
May 20, recommended the extension of the excess profits
tax for six months beyond its present expiration date of
June 30. In doing so, he stated that:
"... This action seems necessary in spite of the
fact that this is an undesirable way of taxing
corporate profits.
"Though the name suggests that only excessive
profits are taxed, the tax actually penalizes thrift
and efficiency and hampers business expansion. Its
impact is especially hard on successful small
businesses which must depend on retained earnings for
growth. These disadvantages of the tax are now
widely recognized. I would not advocate its extension
for more than a matter of months. However, under
existing circumstances, the extension of the present
law is preferaDle to the increased deficit caaised by
its immediate expiration or to any short-term
substitute tax.
"The scheduled expiration of the tax in June
would be misleading in its consequences. It would
simply mean that the tax would be applied at
half the full rate, 15 percent, to all of this
year's business income. Therefore, its bad
effects In penalizing efficiency and encouraging
waste will continue through this year In any
event. The extension of the tax through December
1953 would maintain the full 30 percent rate for
the entire year and would produce a gain in
revenue of 800 million dollars in the fiscal year
1954."
The termination of the excess profits tax at the
end of this year, In accordance with the schedule
recommended by the President, will remove one of the major
tax problems of small business.

^

-mm

- 3expansion. In this connection, the structure and rates
of the corporate and individual income taxes, the definition
of income, the allowable deductions, and the treatment of
undistributed corporate income are all of great importance.
Second, the continued independent existence of established small business must be encouraged. Those
features of the law and regulations which relate to financing
the estate taxes due when Important members of the business
die are of particular interest. The tax effect of the
recapitalization which occurs in connection with the partial
withdrawal of the investment of the original owners is also
of special importance.
The third major approach is one not directly related
to the actual dollar load of tax but is concerned primarily
with lightening the burden of compliance for small business
through simplification of the tax laws and regulations and
improvement in administrative attitudes. Such an improvement would go a long way toward reducing arbitrary interference with business decisions, minimizing areas of
unnecessary dispute and controversy, and eliminating painful
uncertainties in the final determination of tax liability
as well as needless adjustments of income and deductions from
one taxable year to another.
The specific areas of difficulty and corrective suggestions which I shall mention must be considered only as
examples of the problems and alternative solutions now
under study. They do not in any sense indicate definite
policy recommendations or conclusions.
Some of the revisions involved are essentially
technical and have little revenue significance. Others,
unfortunately -- including some of greatest importance
incentive-wise -- carry revenue losses of varying amounts
and the existing tight budget situation imposes severe
limitations on the actions which may be undertaken now.
Regardless of the immediate promise of each
particular measure, we must not lose sight of the fact
that over-all tax reduction is justified only as we show
that we can succeed in bringing the budget under control.
As the budget is balanced, the tax burden can be eased.
But, as Secretary Humphrey has indicated, both taxes and
expenditures should come down together. Sound policy
requires careful and coordinated timing of tax and expenditure reduction to avoid either inflation or depression.

138

- 2 The Treasury's review of the tax system will, we are
sure, develop a number of practical measures which can
contribute to the growth and continued independent existence
of small business, including (l) simplification and
clarification, (2) the removal of provisions which serve
as a trap for the unwary, and (3) the reduction of paper
work involved In the payment of taxes by small businessmen.
Secretary Humphrey in his statement before the
Treasury Subcommittee on Appropriations stated the 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."
Whatever suggestions the Administration makes to
Congress for tax legislation will be the result of the most
careful possible study in an effort to determine what is for
the good of the entire Nation. 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. However, as the President stated in his
recent message on the Budget: "The Treasury must be assured
of adequate revenues to finance necessary expenditures for
national security and other essential purposes."
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.
It should be emphasized that we do not believe that
the tax revisions needed to promote the sound development
of small business should be regarded as special favors but
rather as a method of preserving a dynamic, progressive,
and competitive economic system.
The broad objective of providing a tax system under
which small business will flourish has three major aspects:
First, small business must be permitted to grow. An
ample supply of available funds from the business' own
earnings and from outside sources is essential to finance

1 QQ
«-. W \J

TREASURY DEPARTMENT
Washington
Statement by
Under Secretary of the Treasury Folsom
before
Subcommittee No. 2 of the Select Committee on Small Business
House of Representatives
May 21, 1953
Introduction
I am glad to have this opportunity to discuss with
members of the Subcommittee of the House Select Committee
on Small Business some of the major tax problems which
confront small business and to outline Treasury viewpoints
and objectives in this important area. The invitation to
appear before you, extended by your Chairman, comes at a
most opportune time. The Treasury Department Is now
engaged in an intensive study of the entire tax system; the
material which is developed in these hearings may be helpful
in our own work. Though it is not now possible to indicate
specific recommendations which will be made to the Congress
at a later time through the Ways and Means Committee, I can
note some of the major areas of interest and indicate the
point of view from which we approach our examination of the
tax law.
This Administration is vitally interested in encouraging
small business which is so important an element in the
balanced and dynamic development of the American economy.
We need small business, as well as medium-sized and big
businesses. Each has its role to fulfill; each has its
special contribution to make towards meeting our economic
needs. Policies to reduce the tax barriers to the growth
of small business are especially important to maintain the
traditional American pattern of economic organization.
As President Eisenhower said, in his State of the Union
Message:
" ... 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 business. Many readjustments
in existing taxes will be necessary to serve
these objectives and also to remove existing
H-134 inequities. Clarification and simplification in
the tax laws as well as the regulations will be
undertaken."

TREASURY DEPARTMENT
Washington
Statement by
Under Secretary of the Treasury Folsom
before
Subcommittee No. 2 of the Select Committee on Small Business
House of Representatives
May 21, 1953
Introduction
I am glad to have this opportunity to discuss with
members of the Subcommittee of the House Select Committee
on Small Business some of the major tax problems which
confront small business and to outline Treasury viewpoints
and objectives in this important area. The invitation to
appear before you, extended by your Chairman, comes at a
most opportune time. The Treasury Department is now
engaged in an intensive study of the entire tax system; the
material which is developed in these hearings may be helpful
In our own work. Though it is not now possible to indicate
specific recommendations which will be made to the Congress
at a later time through the Ways and Means Committee, I can
note some of the major areas of interest and indicate the
point of view from which we approach our examination of the
tax law.
This Administration is vitally interested in encouraging
small business which is so important an element in the
balanced and dynamic development of the American economy.
We need small business, as well as medium-sized and big
businesses. Each has its role to fulfill; each has its
special contribution to make towards meeting our economic
needs. Policies to reduce the tax barriers to the growth
of small business are especially important to maintain the
traditional American pattern of economic organization.
As President Eisenhower said in his State of the Union
Message:
"... 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 business. Many readjustments
in existing taxes will be necessary to serve
these objectives and also to remove existing
inequities. Clarification and simplification in
H-134
the tax laws as well as the regulations will be
undertaken."

- 2 The Treasury's review of the tax system will, we are
sure, develop a number of practical measures which can
contribute to the growth and continued independent existence
of small business, including (l) simplification and
clarification, (2) the removal of provisions which serve
as a trap for the unwary, and (3) the reduction of paper
work involved in the payment of taxes by small businessmen.
Secretary Humphrey In his statement before the
Treasury Subcommittee on Appropriations stated the 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."
Whatever suggestions the Administration makes to
Congress for tax legislation will be the result of the most
careful possible study in an effort to determine what is for
the good of the entire Nation. 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. However, as the President stated in his
recent message on the Budget: "The Treasury must be assured
of adequate revenues to finance necessary expenditures for
national security and other essential purposes."
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.
It should be emphasized that we do not believe that
the tax revisions needed to promote the sound development
of small business should be regarded as special favors but
rather as a method of preserving a dynamic, progressive,
and competitive economic system.
The broad objective of providing a tax system under
which small business will flourish has three major aspects:
First, small business must be permitted to grow. An
ample' supply of available funds from the business' own
earnings and from outside sources is essential to finance

- 3expansion. In this connection, the structure and rates
of the corporate and individual income taxes, the definition
of income, the allowable deductions, and the treatment of
undistributed corporate income are all of great Importance.
Second, the continued independent existence of established small business must be encouraged. Those
features of the law and regulations which relate to financing
the estate taxes due when important members of the business
die are of particular interest. The tax effect of the
recapitalization which occurs in connection with the partial
withdrawal of the investment of the original owners is also
of special importance.
The third major approach is one not directly related
to the actual dollar load of tax but is concerned primarily
with lightening the burden of compliance for small business
through simplification of the tax laws and regulations and
improvement in administrative attitudes. Such an improvement would go a long way toward reducing arbitrary interference with business decisions, minimizing areas of
unnecessary dispute and controversy, and eliminating painful
uncertainties in the final determination of tax liability
as well as needless adjustments of Income and deductions from
one taxable year to another.
The specific areas of difficulty and corrective suggestions which I shall mention must be considered only as
examples of the problems and alternative solutions now
under study. They do not in any sense indicate definite
policy recommendations or conclusions.
Some of the revisions involved are essentially
technical and have little revenue significance. Others,
unfortunately -- including some of greatest importance
incentive-wise -- carry revenue losses of varying amounts
and the existing tight budget situation imposes severe
limitations on the actions which may be undertaken now.
Regardless of the immediate promise of each
particular measure, we must not lose sight of the fact
that over-all tax reduction is justified only as we show
that we can succeed in bringing the budget under control.
As the budget is balanced, the tax burden can be eased.
But, as Secretary Humphrey has indicated, both taxes and
expenditures should come down together. Sound policy
requires careful and coordinated timing of tax and expenditure reduction to avoid either inflation or depression.

4 -

-a-rJ
I»

^G^ctlon of tax barriers to growth

A. Excess profits tax
The excess profits tax highlights the interrelated
economic and budgetary aspects of the problem* This tax is
of concern to many small businesses. Because of the need
to maintain revenue until expenditures are reduced,
President Eisenhower, in his message to the Congress on
May 20, recommended the extension of the excess profits
tax for six months beyond Its present expiration date of
June 30. In doing so, he stated that:
"..• This action seems necessary in spite of the
fact that this is an undesirable way of taxing
corporate profits.
"Though the name suggests that only excessive
profits are taxed, the tax actually penalizes thrift
and efficiency and hampers business expansion. Its
impact is especially hard on successful small
businesses which must depend on retained earnings for
growth. These disadvantages of the tax are now
widely recognized. I would not advocate its extension
for more than a matter of months. However, under
existing circumstances, the extension of the present
law is preferable to the increased deficit caused by
its immediate expiration or to any short-term
substitute tax.
"The scheduled expiration of the tax in June
would be misleading in Its consequences. It would
simply mean that the tax would be applied at
half the full rate, 15 percent, to all of this
year's business income. Therefore, its bad
effects in penalizing efficiency and encouraging
waste will continue through this year in any
event. The extension of the tax through December
1953 would maintain the full 30 percent rate for
the entire year and would produce a gain in
revenue of 800 million dollars in the fiscal year
195^."
The termination of the excess profits tax at the
end of this year, in accordance with the schedule
recommended by the President, will remove one of the major
tax problems of small business.

- 5B.

144

Depreciation

One of the positive steps that may be taken to reduce
obstacles to the dynamic flow of investment is an improved
treatment of depreciation in computing taxable income. This
is of particular importance to small business.
The depreciation allowance is essentially a matter of
timing of deductions, but the speed of the tax-free recovery
of costs is of critical importance with respect to the willingness to incur risk, the working capital position, and
ability of the business to borrow.
A liberalization of the present rules governing depreciation so as to allow management greater discretion would
increase total investment, particularly in risky ventures,
stimulate a generally higher level of national income and
economic activity, and incidentally, but not less important,
remove sources of irritation and fruitless controversy in
the administration of the tax laws.
A more liberal depreciation policy would also ease the
financial problems of many small, businesses. Working capital
which the business could plough back into its operations or
use to write off bank loans would be increased.
Investment risk would be reduced by a quicker tax-free
recovery of such outlays. The credit position of the small
business would be Improved, since more liberal depreciation
allowances would give the business and its creditors a claim
to receipts which is prior to the tax liability. This would
tend to provide better access to bank funds for hard-pressed
businesses which have no recourse to the ordinary sources
of equity capital.
One of the most direct ways of encouraging what is
broadly termed "investment incentive" is to provide the
capital necessary to back up a potential investment decisionAll the incentive in the world will be futile unless business
has adequate funds.
While the Administration's objectives and sympathies
in this area are clearly defined, there remain many questions
as to methods and extent of change. Some liberalization
may be effected through regulations issued under existing
statutory provisions. More extensive changes may require
legislation. The adoption of a substantial program in this
character would require careful planning, and the initiation
of the new rules must be related to the general budgetary
situation.

145

- 6C.

Section 102 surtax on surplus accumulation

Another provision of the tax laws of special interest
to small business is the Section 102 surtax on improper accumulation of surplus. While it is generally recognized that
some device of this nature is indispensable to prevent tax
avoidance, Section 102 has been an important source of
controversy, primarily in its application to small business.
Critics have charged that Section 102 discriminates against
small business retaining earnings in the form of liquid
cash reserves for future use; occasions fear and uncertainty;
retards expansion or causes premature or unwise expansion;
and promotes undesirable business practices to divert profits
which would otherwise be vulnerable to the penalty tax.
This whole area is being carefully studied with a view
to improved administration and possible legislative recommendations. The rate and basic structure of the tax penalty
as well as the statutory criteria for Its application need
to be reviewed. A specific administrative aspect which will
need attention, is the so-called "immediacy test" which makes
it difficult for a small business to accumulate earnings
gradually from year to year for ultimate use on sizeable
expansion projects. Large businesses, which can finance complete investment projects out of current earnings or justify
an accumulation on the basis of definite and more or less
formal plans, have been reasonably free from this problem.
D. Corporate surtax exemption
The present surtax exemption assures corporate business
a reduced rate on the first $25,000 of its earnings and a
substantial reduction of the over-all effective rate over
a considerable range of income above that level. The
surtax exemption was introduced in 1950 as a means of
eliminating the high notch rates previously applied to
income between $25,000 and $50,000.
Basically, the reduced rate on small corporate incomes
is designed for the assistance of small businesses dependent
primarily on retained earnings for growth. A graduated tax
for corporations cannot be justified on the same basis as
progressive taxation of individuals since the size of the
income of the business is not necessarily related to that
of the individual owner. Whether the present surtax
exemption is adequate for its intended purpose under present
conditions is subject to review. Attractive as It may
appear as a means of easing the tax impact on small concerns,
even
a moderate
increase
substantial
revenue
loss. in the surtax exemption involves a
.<t

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.1

.

II

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III

U N

I

- 7E.

146

Double taxation of dividends

The fundamental problem of the double taxation of
dividend income raises special problems In connection with
small closely held companies. The small business aspect will
necessarily be considered carefully in the work on methods of
coordinating corporate and individual income taxes to alleviate
double taxation. Here again the loss of revenue may be
large, and desirable changes may have to be delayed or
adopted on a limited scale.
F. Individual income taxes
The level of individual income tax rates is of crucial
importance for small business. The existing high individual
rates threaten to dry up the chief sources of risk capital
funds and to reduce the willingness of potential investors
to bear the type of risk associated with small, new business.
G. Investment loss deduction
One of the most signigicant proposals for the modification
of the tax law to encourage investment in small business and
other risky ventures would provide more liberal recognition
of capital losses as offsets against ordinary income. Under
present law, investment losses of individuals are treated
as capital losses and as such are deductible only against
capital gains plus $1,000 annually of ordinary income. Many
feel that this tax treatment results in a "heads I win, tails
you lose" situation which reduces the relative attractiveness
of the type of risk investment involved in a small business
undertaking. One possible remedy would be to increase the
extent to which investment losses can be offset against
ordinary income.
H. Excise taxes
One of the specific questions which your Committee
has raised relates to the effects of the present system
of excise taxation on small business.
The excises are the third largest source of Federal
revenue and are now imposed on a variety of goods and
services, some of which are true luxuries and others
ordinary necessities. Some of the items taxed are produced
by prosperous industries; others are supplied by industries
that are experiencing economic distress, even at a time
when the level of business activity in general is very
high. Some of the items taxed are produced by industries in
which the business unit is comparatively small.

- 8 -

«a*v f

As P r e s i d e n t E i s e n h o w e r stated in h i s m e s s a g e of M a y 2 0
to the C o n g r e s s :
"The wide variety of existing excise rates
makes little economic sense and leads to Improper
d i s c r i m i n a t i o n b e t w e e n i n d u s t r i e s and a m o n g
c o n s u m e r s . Specific p r o p o s a l s f o r a m o d i f i e d
system of excise t a x a t i o n will be included in the
r e c o m m e n d a t i o n s for tax r e v i s i o n s that w i l l be
submitted to the C o n g r e s s n e x t January."
He noted further that:
"The reductions in excise taxes, which would
take place next A p r i l 1 u n d e r p r e s e n t l a w , should
be rescinded pending the d e v e l o p m e n t of a better
system of excise taxation."
The interest of small business in the relative emphasis
to be placed on excise taxes and the s e l e c t i o n of items to be
taxed is appreciated in the T r e a s u r y D e p a r t m e n t . M o r e o v e r ,
we are fully aware of the i m p o r t a n c e , p a r t i c u l a r l y for the
small b u s i n e s s , of r e d u c i n g the tasks of compliance imposed
on manufacturers and r e t a i l e r s to the m i n i m u m consistent w i t h
fair and uniform e n f o r c e m e n t . Some of the steps being taken
in this direction will be m e n t i o n e d l a t e r .
II. Independent existence of small business
The problem of encouraging vigorous small business is
two-fold. It is not e n o u g h m e r e l y to facilitate the g r o w t h
of such b u s i n e s s . E n c o u r a g e m e n t for its continued independent
existence is e q u a l l y i m p o r t a n t .
In this connection, attention must be given to the
problems of financing e s t a t e tax liabilities and the tax t r e a t ment of the r e c a p i t a l i z a t i o n of a c o r p o r a t i o n w h i c h arise f r o m
the partial withdrawal of the investment of an i m p o r t a n t
shareholder w h o seeks to give h i s estate g r e a t e r l i q u i d i t y ,
diversify his investments during h i s d e c l i n i n g y e a r s , or to
effect an orderly t r a n s i t i o n to n e w active m a n a g e m e n t .
While various limited provisions have been developed
to meet these p r o b l e m s , m u c h r e m a i n s to be done in order
to prevent adverse e f f e c t s o n the f l o w of b u s i n e s s i n v e s t m e n t .
The existing rules g o v e r n i n g the tax s t a t u s of r e c a p i t a l i z a tions and partial l i q u i d a t i o n are h i g h l y t e c h n i c a l , r i g o r o u s ,
and uncertain. C o m p l e t e sale or m e r g e r , u s u a l l y w i t h a
larger corporation, is f r e q u e n t l y p r e f e r r e d to avoid these
risks and c o m p l e x i t i e s . The c o n s e q u e n c e is the e x t i n c t i o n
of the business as an i n d e p e n d e n t e n t i t y . A m e n d m e n t s to the
law and changes in a d m i n i s t r a t i v e p o l i c y w h i c h m a y reduce
the existing tax impetus to m e r g e r s deserve careful s t u d y .

•7 •" O

- 9III.

a ><

Simplification and administrative attitudes

Small business, in common with all taxpayers, has a
right to expect complete honesty and integrity in the tax
collection service. It should be able/to rely on the
justice and the fairness of the Government's attitude.
There are also a number of more specific ways in which the
Government's attitude and treatment of the taxpayers can
accomplish much in lightening the practical load of tax
payment.
One of these is the matter of certainty. We are seeking
ways in which we can give the taxpayer' assurance that his
tax planning will not be arbitrarily upset'or that the same
type of questions will not be raised over and over again.
Clarity and simplicity in the tax rules and their
application are also of peculiar importance to small
business which is not well equipped to cope with complex
provisions, to avoid possible penalties, or to take full
advantage of favorable treatment.
It should also be possible to reduce interference
with the management of business and unnecessary sources of
dispute and friction. Controversy over such technical
matters as the allocation of income and deductions among
different tax years can be reduced.
An illustration of an area which we are examining with
a view to clarification and simplification is the tax treatment of pension and retirement plans and so-called fringe
benefits. Illogical and discriminatory results have developed in recent years under existing law and regulations.
These are frequently detrimental to small business which
cannot fully realize the benefits available without expensive
technical guidance and counsel.
Another example is in the determination of depreciation
and related allowances on fixed assets. Administrative
attitudes are most important in giving the taxpayer some
assurance that irritating and useless adjustments will not
be made in his depreciation rates and that his allowance
will conform broadly with reasonable managerial judgments
as to the appropriate rate of write-off. Commissioner
Andrews has recently announced the establishment of a new
administrative policy with respect to depreciation, to
reduce controversies with taxpayers. Under the new policy
the taxpayer is entitled to reasonable assurance of stability in depreciation rates consistent with fair and
effective enforcement of the statutes.

149
- 10 Steps have already been taken to facilitate compliance
with the excise tax laws. The audit of excise and income
tax liabilities is being combined in one coordinated operation so as to minimize the interference with business
operating routine. A new simplified excise tax return,
Form 720, is in process of preparation. It will cover all
of the Federal excises and will replace 8 different excise
returns now being used. Quarterly excise returns are already
scheduled to replace monthly returns after July 1 of this
year. Consideration is being given to a further simplification by substituting annual for quarterly returns.
Small business has a special interest in the rules
governing the deduction of such items as reasonable salary
compensation and research and development expenses.
Criticism is frequently made that there is too much
inquiry by revenue agents as to the reasonableness of wage
or salary deductions. Present law specifies as trade or
business expenditures ordinary and necessary expenses in carrying on the business, including a reasonable allowance for
salaries or other compensation for personal services actually
rendered. The test of reasonableness has frequently been
a source of irritating controversy. This is a matter which
merits sympathetic consideration.
On the other hand, business has an obligation on its
part not to load tax returns with extravagant and unnecessary
deductions in the nature of disguised compensation for business
executives. Widespread publicity has been given to the misuse
of expense deductions under high tax rates. This is a matter
receiving careful attention.
Research and development expenditures are frequently
essential to the success of small, growing businesses. Over
a period of years, the Bureau of Internal Revenue has generally
allowed taxpayers incurring research and development costs to
follow a consistent practice to expense or capitalize them
at their option. The option to expense, however, does not
ordinarily apply to capital items having a substantial life
beyond one year or adaptable for other use, or to the cost
of obtaining patents. While the expensing of research and
development costs has definite advantages, it is not always
feasible for small business which does not have a regular
research and development budget. Measures to clarify and
liberalize the present treatment, particularly with a view to
insuring that the expensing option is fully available to
small business, will receive comprehensive study.

- 11 -.

150

I can assure you that in our investigation and planning
on tax matters in the Treasury we welcome the type of information and suggestions developed by your Committee. We are
working in close cooperation with the Congressional tax
committees and staffs. In addition to drawing upon the
results of past studies and proposals on tax policy affecting
small business, we are also consulting with various groups
outside the Government which have been examining the operation of the tax system as well as informal groups which we
have asked for assistance in our efforts to improve the tax
laws and administrative procedures.
With this broad base of information and guidance, we are
striving to do our part in helping to solve the difficult
problems confronting us. At the proper time, recommendations
for legislative revision will be submitted to the Congress
through the Committee on Ways and Means, which has primary
responsibility in revenue matters.
It would be false optimism to assume that all the problems
of small business could be solved by revisions in the tax law,
or that quick and easy solutions to the tax aspects of the
problem which confronts small business are readily available
and can be put into effect immediately. However, we are
determined to bring to the solution of these problems the
best available skill and knowledge and to proceed with
corrective rules and legislation as rapidly as budgetary and
other limitations will permit.

0O0

1 cJL J.

- 3 Prist Ho. 1 of B. 589. Under those provisions, the Corporation would have no capital stock; capital stock serves little
useful purpose in a Government corporation and is a form of
subsidy. The Corporation would finance its activities by
issuing its obligations to the Secretary of the Treasury in
an amount not to exceed $100 million outstanding at any one
time. Bach obligation would bear interest at a rate determined
by the Secretary of the Treasury, taking into consideration
the current average rate on current marketable obligations of
the United States of comparable maturities*

Thus, the cost of

money to the Corporation would approximate its cost to the
Government.

—-oOo—•

1 ro
«_. Km Cm

mm

%

mm

would result in revenues sufficient to defray the cost to
the Corporation of its operations, including amortissation
:.•:.,•-- •

.,;

'

<^Mn--'

-"

of the principal of its debts over a period not to exceed
fifty years.
Another of the bills, S . 1065, contains the same provi-".-•••
• --y. ,*m. --. *a .? a-?. - -- - • •: a -, • - "
slons for financing the project. Still another, 8 . J. Res.
45, contains similar provisions, although under it the
capital stock of the Corporation would b e $ 2 million, the
Corporation could issue obligations ia an amount not to
• -••-•;•-.

• _ .

••

----•-.- ••"'- • m- •"

...y.

exceed $385 million outstanding at any one time, and interest
- -*& ..-, - ••.--,m. •" ;>:•*-••-;.•• .- <**'-- .. .m.
* •».
on the obligations could not exceed 3 percent. This measure
;- a-- -• -•-.-•-•- arnica

•• -

>-.>&.--•*-•-•*.•••• .:iy

-a

• s*

does not contain the provisions for self-liquidation included
in S. 589 and S. 1065.
The Treasury does not look with favor on the issuance
and sale of guaranteed obligations by Government corporations
in the market.

We believe that Government corporations en-

gaged in revenue-producing programs should obtain their funds
by borrowing directly from the Treasury.

Centralised financing

by the Treasury avoids competition in the investment market
between the Treasury and other Government agencies.
makes for fiscal efficiency and economy*

It thus

This is especially

important in view of the magnitude of the problems involved
in the management of the public debt at the present time.
These difficulties would b e avoided by financing
provisions along the lines of those contained in Committee

:

153

W^JWW

^ jy< -^ • ~^ax

•;

Statement of
f. Raadolph Burgees,
Deputy to the Secretary of the Treasury,
Before the Senate Committee on Foreign Relation© on
S. 589, S. 1065, and 3.J. Beg 45

.

;

ay 81, lH3t — .

tir. Chairman and Members; of the Committee.
The Bills before you concern primarily departments and
agencies other than the Treasury,

I have no comments, there*

fore, on the general merits of the proposed project. The
method of financing it, however, is a matter of concern to
the Treasury.
Each of the measures before the Committee would create a
Corporation to construct the part of the seaway project in
United States territory. As originally introduced by the"
Chairman for himself and others, 8. 589 would create a St.
Lawrence Seaway Development Corporation with a capital stock
of $5 million which would be subscribed by the United States*
To finance its activities, the Corporation would be authorised
to issue obligations in an amount not to exceed $100 million
••t4

outstanding at amy one time* These obligations would mature
in not more than fifty years; they would bear Interest at
rates determined by the Corporation after consultation with
the Secretary of the Treasury; and they would be fully and
unconditionally guaranteed both as to interest and principal
by the United States. They could not, however, be purchased
by the United States*

The project would be made self-

liquidating under the bill through provision for tolls which

i -4

c

The Treasury does net look with favor on the issuance
and sale of guaranteed obligations by Government corporations
in the market. We believe that Government corporations engaged in revenue-producing programs should obtain their funds
by borrowing directly from the Treasury. Centralized financing
by the Treasury avoids competition in the investment market
between the Treasury and other Government agencies. It thus
makes for fiscal efficiency and economy. This is especially
important in view of the magnitude of the problems involved
in the management of the public debt at the present time.
These difficulties would be avoided by financing
provisions along the lines of those contained in Committee
Print No. 1 of S. 589. Under those provisions, the Corporation would have no capital stock; capital stock serves little
useful purpose in a Government corporation and is a form of
subsidy. The Corporation would finance its activities by
issuing its obligations to the Secretary of the Treasury in
an amount not to exceed $100 million outstanding at any one
time. Each obligation would bear interest at a rate determined
by the Secretary of the Treasury, talcing into consideration
the current average rate on current marketable obligations of
the United States of comparable maturities. Thus, the "cost of
money to the Corporation would approximate Its cost to the
0O0
Government.

155

TREASURY DEPARTMENT
Washington
Statement of
W. Randolph Burgess,
Deputy to the Secretary of the Treasury,
Before the Senate Committee on Foreign Relations on
S. 589, S. IO65, and S. J. Res. 45
May 21, 1953.
Mr, Chairman and Members of the Committee:
The Bills before you concern primarily departments and
agencies other than the Treasury. I have no comments, therefore, on the general merits of the proposed project. The
method of financing it, however, is a matter of concern to
the Treasury.
Each of the measures before the Committee would create a
Corporation to construct the part of the seaway project in
United States territory. As originally introduced by the
Chairman for himself and others, S. 589 would create a St.
Lawrence Seaway Development Corporation with a capital stock
of $5 million which would be subscribed by the United States.
To finance its activities, the Corporation would be authorized
to issue obligations in an amount not to exceed $100 million
outstanding at any one time. These obligations would mature
in not more than fifty years; they would bear interest at
rates determined by the Corporation after consultation with
the Secretary of the Treasury; and they would be fully and
unconditionally guaranteed both as to interest and principal
by the United States. They coaild not, however, be purchased
by the United States. The project would be made selfliquidating under the bill through provision for tolls which
would result in revenues sufficient to defray the cost to
the Corporation of its operations, including amortization
of the principal of its debts over a period not to exceed
fifty years.
Another of the bills, S. 1065* contains the same provisions for financing the project. Still another, S. J. Res.
k5, contains similar provisions, although under it the
capital stock of the Corporation would be $2 million, the
Corporation could Issue obligations In an amount not to
exceed $385 million outstanding at any one time, and interest
on the obligations could not exceed 3 percent. This measure
H-135
does not contain the provisions for self-liquidation included
in S. 589 and S. IO65.

-S

J— ,"\

«~ W KJ

For immediate Release - May 22, 1953

'

A group of State Treasurers and other State 3*1 seal officers met today

with ¥. Randolph Burgess, Deputy to the Secretary of the Treasury, for an exch
of views and a general discussion of mutual financial problems.
The fiscal officers of the state are responsible for the over-all financial

programs of the states, including investment of public funds, and are, therefo
among the largest purchasers of Federal securities, J_r. Burgess said.
Treasury Under Secretary Marion B. Folsom gave a short briefing on the
Administration's budget and tax programs.
Also present from the Treasury were Assistant Secretary Andrew N. Overby
and Fiscal Assistant Secretary Edward F. Bartelt.
Present at the meeting today were:
D. Hal Brake, State Treasurer, and J. Dean Stanley, Investment Counsel,
State of Michigan.
Mss Pearl Runyon, State Treasurer of Kentucky.
J. R. McGovern, Comptroller, State of New York.
Charles Foster, Executive Secretary, State Investment Board of Minnesota.
Jeff B. Bates, State Treasurer of South Carolina.
Charles H. Smith, Director, Virginia Supplemental Retirement System.
H. D. Defenbacher, Director of Finance, Ohio.
Walter T. Margetts, Jr., State Treasurer, New Jersey.
C. M. Gay, Comptroller, Florida.
Theodore Driscoll, Assistant Executive Director, Council of State
Governments, Chicago, Illinois.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE, 10,
Friday, May 22, 1953.

H-136

A group of State Treasurers and other State Fiscal officers
met today with W. Randolph Burgess, Deputy to the Secretary of
the Treasury, for an exchange of views and a general discussion
of mutual financial problems.
The fiscal officers of the state are responsible for the overall financial programs of the states, including investment of
public funds, and are, therefore, among the largest purchasers of
Federal securities, Mr. Burgess said.
Treasury Under Secretary Marion B. Folsom gave a short briefing on the Administration's budget and tax programs.
Also present from the Treasury were Assistant Secretary
Andrew N. Overby and Fiscal Assistant Secretary Edward F. Bartelt.
present at the meeting today were:
D. Hal Brake, State Treasurer, and J.Dean Stanley,
Investment Counsel, State of Michigan,
Miss Pearl Runyon, State Treasurer of Kentucky.
J. R. McGovern, Comptroller, State of New York.
Charles Foster, Executive Secretary, State Investment Board of
Minnesota.
Jeff B, Bates, State Treasurer of South Carolina.
Charles H. Smith, Director, Virginia Supplemental Retirement
System.
H. D. Defenbacher, Director of Finance, Ohio.
Walter T. Margetts, Jr., State Treasurer, New Jersey.
C. M. Gay, Comptroller, Florida.
Theodore Driscoll, Assistant Executive Director, Council of
State Governments, Chicago, Illinois,

0O0

158

- 2 Miss Cleary was born at Madison, Wisconsin, on
December 19, 1916.

She was graduated from the University of

Chicago in 1937, and received her law degree from the
University of Wisconsin Law School in 19^3. She was elected
to Order of the Goif, an honorary legal society.

oOo

(Note - Biographical sketch will be attached)

1 ? ~q
~_ <^- w

DRAFT
IMMEDIATE RELEASE,
Monday, May 25, 1953.

D

H-

D

Secretary Humphrey today administered the oath of office
to Miss Catherine B. Cleary as Assistant Treasurer of the
United States.
Mrs. Ivy Baker Priest, Treasurer of the United States, and
other government officials and friends were present at
the ceremony.
Miss Gleary was nominated by President Eisenhower on
May 6, 1953, and confirmed by the Senate on May 13, 1953.
A resident of Milwaukee, Wisconsin, Miss Cleary was
a trust officer of the First Wisconsin Trust Company in that
city until she was designated as Assistant Treasurer of the
United States.
Miss Cleary is a member of the Wisconsin and Illinois^tate
liars, and American Bar Association.

She served on the

Milwaukee Bar Association Executive Committee, and as chairman
of the Committee on Federal Legislation of the Wisconsin Bar
Association.

She has also served as president of the

Association of Bank Women, a national organization of women
holding executive positions in banks.
Before entering the legal profession, Miss Cleary taught
school for two years,and in 19^2 became secretary to
Justice Edward T. Fairchild of the Wisconsin Supreme Court.

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

160
IMMEDIATE RELEASE,
Monday, May 25, 1953.

H-137

Secretary Humphrey today administered the oath of
office to Miss Catherine B. Cleary as Assistant Treasurer
of the United States.
Mrs. Ivy Baker Priest, Treasurer of the United States,
and other government officials and friends were present at
the ceremony.
Miss Cleary was nominated by President Eisenhower on
May 6, 1953, and confirmed by the Senate on May 13, 1953A resident of Milwaukee, Wisconsin, Miss Cleary was
a trust officer of the First Wisconsin Trust Company in
that city until she was designated as Assistant Treasurer
of the United States.
Miss Cleary is a member of the Wisconsin and Illinois
State bars, and American Bar Association. She served on
the Milwaukee Bar Association Executive Committee, and as
chairman of the Committee on Federal Legislation of the
Wisconsin Bar Association. She has also served as
president of the Association of Bank Women, a national
organization of women holding executive positions in banks.
Before entering the legal profession, Miss Cleary
taught school for two years, and in 19^2 became secretary
to Justice Edward T. Fairchild of the Wisconsin Supreme
Court.
Miss Cleary was born at Madison, Wisconsin, on
December 19, 1916, She was graduated from the University
of Chicago in 1937, and received her law degree from the
University of Wisconsin Law School In 19^3. She was
elected to Order of the Coif, an honorary legal society.

oOo

161
CATHERINE B. CLEARY
Assistant Treasurer of the United States
Miss Catherine B. Cleary was born at Madison, Wisconsin, on
December 19, 1916, the daughter of Mrs. Bonnie B. and the late
Michael J. Cleary of Milwaukee, Wisconsin.
Miss Cleary attended the training school of Milwaukee State
Teachers College (now Wisconsin State College), and graduated in
1933 from Milwaukee Downer Seminary. From 1933 to 1935, she
attended Scripps College, Claremont, California. She received
an A.B. degree from the University of Chicago in 1937. After an
apprentice teaching course at the Shady Hill School, Cambridge,
Massachusetts, Miss Cleary attended the University of Wisconsin
Law School, receiving an LL.B. degree with high honors in 1943.
She was elected to Order of the Coif, an honorary legal society.
After teaching school for two years in New England
Miss Cleary in 1942 became secretary to Justice Edward T. Fairchild
of the Wisconsin Supreme Court, a position she held for one year
before joining the legal department of the Kohler Co., Kohler,
Wisconsin. In 1944 Miss Cleary became an associate in the law
firm of Defrees, Fiske, O'Brien & Thomson, of Chicago, and in
1947 she joined the First Wisconsin Trust Company of Milwaukee.
Miss Cleary was appointed an Assistant Trust Officer of the
First Wisconsin in January, 1949, and Trust Officer in December,
1950, her work being primarily in personal trust administration
and legal problems.
She has spoken on the subject of wills, trusts and taxes at
a number of forums throughout the country sponsored by banks and
women's clubs, and at meetings of men's service clubs.
Miss Cleary was admitted to the Wisconsin and Illinois state
bars, and is a member of the Milwaukee Bar Association,
Wisconsin Bar Association, and American Bar Association. She
served on the Milwaukee Bar Association Executive Committee, and
as chairman of the Committee on Federal Legislation of the
Wisconsin Bar Association. Miss Cleary has been a guest lecturer
at the University of Wisconsin Law School, on estate planning and
will drafting.
From September 1952 to May 1953, Miss Cleary served as
president of the Association of Bank Women, a national organization
of women holding executive positions in banks. She also served as
a member of the Wisconsin Bankers Association Committee on Banking
Forms and Procedures, and was the speaker at its 1953 mid-winter
meeting, in April and May 1953, Miss Cleary attended the regional

and local group meetings of the Association of Bank Women in
Houston, Phoenix, Los Angeles, San Francisco, Portland, Spokane
and Salt Lake City.
In addition to service on various banking committees,
Miss Cleary has been active in Milwaukee community activities.
Miss Cleary was an alternate delegate to the 1948 Republican
National Convention.

0O0

May, 1953-

1

D^

*--. W Km*

R-Cttiss .MORWH-0

y~iy

mm$mmm9

^mmk^^mM^mmh

The Secretary of the Treasury announced last evening that the tenders for
11,500,000,000, or thereabout®, of 91-dagr frmm&my bills to be dated m y 28 and to
mature August 2?, 1953, wttleh were offered on May 21, were opened at the Federal Reserve Banks on lay 25.
Th@ detail® of this lean* ar® as follows
fbtal applied for - 4**087*058*000
total accepted
- 1,500,797,000 (Include* 1208,016,000 entered on a
noiv-oompetitiv® basis and accepted In
f n H at the average price ahowa below)
4t«mg® price
- 99.473/ BqatwOent rate of discount approx. 2.084# ptr amm
Eang© of accepted ©oapetitiire bids*
Hl£i
- $9.502 Bquiv®l®nt rate of discount approx. 1.970$ per annum
,f
w
Low
- 99.470
"
"
"
2.097* H *
(63 pareent of the memtt bid for at the low price waa accepts)
Federal leiserv®
District
Boeton
Wew York
1*iiU4iiC_j*dft
Cleveland
Rletnoad
Atlanta
Chicago
St. Louis
Kiiineapolla
famsasi City
Pallas
Ban ftmmmimmm
tbtal

Total
A P P M * fir,

1 22,887,000
1,492,332*000
26,446,000
40,179*000
15,0.5,000
28,830,000
203,504,000
46,462,000
11,244,000
72,204,000
40,626,000

SiWM
4iM*7,058,OQO

toui
Accepted
4

, umm

16,887,000
1*000*082*000
11,246,000
39*002,000
14,645,000
23,754,000
163,314,000
27,024,000
10,519,000
69,454,000
39,052,000
85.818.000
$1,500,797,000

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

164
RELEASE MORNING NEWSPAPERS,
Tuesday, May 26, 1953.

H-13o

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 May 28 and to mature August 27, 1953, which were offered
on May 21, were opened at the Federal Reserve Banks on May 25.
The details of this issue are as follows:
Total applied for - $2,087,058,000 '
Total accepted
- 1,500,797,000 (includes $208,016,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99-473/ Equivalent rate of discount approx.
2.084$ per annum
Range of accepted competitive bids:
High - 99.502 Equivalent rate of discount approx.
1.970$ per annum
Low
- 99.470 Equivalent rate of discount approx.
2.097$ per annum
(63 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 22,887,000 $ 16,887,000
New York
1,492,332,000
Philadelphia
26,446,000
Cleveland
' 40,179,000
Richmond
15,215,000
Atlanta
28,830,000
Chicago
203,504,000
St. Louis
46,462,000
Minneapolis
11,244,000
Kansas City
72,204,000
Dallas
40,626,000
San Francisco
87,129,000
TOTAL $2,087,058,000 $1,500,797,000
0O0

Accepted
1,000,082,000
11,246,000
39,002,000
14,645,000
23,754,000
163,314,000
27,024,000
10,519,000
69,454,000
39,052,000
85,818,000

a- **

IMMEDIATE RELEASE,
Monday, May 2$, 1953.
Secretary Humphrey announced today that preliminary reports of
subscriptions for the new certificates of indebtedness to be dated
June 1, 1953, amount to $4,790,000,000. This represents the exchange
of about 84 percent of the maturing certificates and called bonds
eligible for the exchange.
Further details regarding the exchange will be announced later
this week.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, May 25, 1953.

H-139

Secretary Humphrey announced today that
preliminary reports of subscriptions for the
new certificates of indebtedness to be dated
June 1, 1953, amount to $4/790,000,000. This
represents the exchange of about 84 percent
of the maturing certificates and called bonds
eligible for the exchange.
Further details regarding the exchange
will be announced later this week.

oOo

167

KELEAa; MORNING WmikTEBB,
Ta»idiar>ltoy26tiyg3,>

U - //>

the Secretary of the treasury, by this public notice* invites tenders
for 4 o G o / H - f / i - ^ , or thereabouts, of 107~df*y fi^awry bills, to be issued on
a discount basis milder ©osipetltiv© mud ^n-cestpetitive bidding as hereintffeep
provided, the bill® of this series will be designated Tax Anticipation Series,
they will be dated *Jwm 3, 1953, aisd will nature September 18, 1953. fbey
will be accepted at face value in payment of income and profits tastes due on
September 1$9 1953, and to the extent they are not presented for this purpose
the face amount ©f these b U l s will be payable without interest at Maturity.
Taxpayers desiring to apply these bills ia payment of September 2$9 19$39
income and profits taxes have the privilegs of sutTsnderliig them to any
Federal leserv® Bank or Branch not more than fifteen days before September 15,
1953, and receiving receipts therefor snowing tae faee amount of the biHs
s© surrendered, fbese receipts may be smbatitted in lien of the bills on or
before September 1$, 1953, to the Director of Internal Revenue for the district in which such taxes are payable. They will be issued In bearer form
only, and in denominations of $1,0009 4$,000# 410,000, 4100,000, 4i*OQ#00®t
and 4l#0G0,000 (maturity value).
fenders will be received at Federal Reserve Banks and Branches up to the
closing hour, one o'clock p.as,, lastem Bayli^it Baring tisie, Friday, Way 29,
19$3* Tenders will not be received at the Treasury Beparfesent, Washington.
Each tender must be for' an even multiple of f 1,000, and in the ease of eorapetitlire tenders the price offered must be expressed on the basis of 100, wltto not
niore than three decimals, e. g., 99*92$* Fractions may not be used. It Is
urged that tender* be «ade on the printed form® and forwarded in the special

TREASURY DEPARTMENT
Information Service

RELEASE MORNING NEWSPAPERS,
Tuesday, May 26, 1953.

IINGTON, D.C.

1£g
H-140

The Secretary of the Treasury, by this public notice, invites
tenders for $800,000,000, or thereabouts, of 107-day Treasury bills,
to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this
series will be designated Tax Anticipation Series, they will be
dated June 3, 1953, and will mature September 18, 1953- They
will be accepted at face value in payment of Income and profits
taxes due on September 15, 1953, and to the extent they are not
presented for this purpose the face amount of these bills will be
payable without interest at maturity. Taxpayers desiring to apply
these bills,in payment of September 15, 1953, income and profits
taxes have the privilege of surrending them to any Federal Reserve
Bank or Branch not more than fifteen days before September 15,1953,
and receiving receipts therefor showing the face amount of the bills
so surrendered. These receipts may be submitted in lieu of the
bills on or before September 15, 1953, to the Director of Internal
Revenue for the district in which such taxes are payable. 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, one o'clock p.m., Eastern Daylight Saving
time, Friday, May 29, 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 may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated
bank or trust company.

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
(in three decimals) of accepted competitive bids. Settlement for
accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank in cash or other immediately
available funds on June 3, 1953, provided, however,-any qualified
depositary will be permitted to make payment by credit in its
Treasury Tax and Loan Account for Treasury bills allotted to it for
itself and its customers up to any amount for which it shall be
qualified in excess of existing deposits when so notified by the
Federal Reserve Bank of its District.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bills shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be
considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity, or the amount of income or profits taxes paid by means of
the bills, during the taxable year
for which the return is made, as
oOo
ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
from
conditions
any Federal
of their
Reserve
issue.
Bank
Copies
or Branch.
of the circular may be obtained

170

- 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 1x2 and 117 (a) (l) of the Internal Revenue Code, as

amended by Section llf> of the Revenue Act of l°4l, the amount of discoun
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 differen
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. lp.8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

171
„L I X.

- 2-

ism
dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for 1200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on June k, 19$3 , in cash or other immediately available

m

—

funds or in a like face amount of Treasury bills maturing
June k\ 19^3
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

172

MM/X
TREASURY DEPARTMENT
Washington

h-H\

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, May 28, 1953

" mx

The Secretary of the Treasury, by this public notice, invites tenders
for 41,500,000,000 , or thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing June 4, 1953 , in

#E?_
the amount of $1,301,388,000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated June 4, 1953 , and will mature

m
September 3'9 1953 , when the face amount will be payable without inT-XJE
terest, They will be issued in bearer form only, and in denominations of
$1,000, 15,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/^_s_as4-s__x time, Monday, June 1, 1953

J—J
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.92$. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday,May 28, 1953-

IINGTON, D.C

173
H-141

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 June 4, 1953a in
the amount of $1,301,3,88,000,. to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided..;' The
bills of this series, will be dated June 4, 1953, and will mature
September 3, 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 Daylight Saving time.,
Monday, June 1, 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 offeredcmust
be expressed on;,the basis of 100, with not more than three decimals,
e. g., 99.925. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes.
which will be supplied by Federal Reserve Banks or Branches on
application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received without
deposit from incorporated banks and trust companies and from responsible'
and recognized dealers in investment securities. Tenders from others
must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and
price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of the
Treasury expressly reserves the right to accept or reject any or all
tenders, in whole or in part, and his action in any such respect shall
be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted
competitive bids. Settlement for accepted tenders in accordance with
the bids
June
4, 1953,
must be
in made
cash or other
completed
immediately
at the Federal
available
Reserve
fundsBank
or in
ona like

- 2face amount of Treasury bills maturing June 4, 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 ]„,.X.
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 6jt\;.
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 1.15 of the Revenue Act of 1941, the . ',;
amount of discount at which bills issued hereunder are sold shajii hot
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>, a/nd
the amount actually received Either upon sale or redemption at. •" ,l
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.

174

Los Angeles
Chicago

Portland

New York

Pendleton

Washington

The Dalles

Boston

Salem

Lynn

Corvalus

Philadelphia
Atlanta
St• Louis
Kansas City
DeMoines
Mnnespolis
St. Paul
Dallas
Ft. Worth
Denver
Salt Lake City
Ogden

Eugene
San Francisco

175

Miss Pickford, you have done your country a real serviee
in the last « l # t weeks in impressing on millions of people
the Importance of saving*
\ior I might say the importance —

the decisive importance -

of a sound dollar*
\\ 1 am aup© your Savings Bonds message, whieb reached %W
^American people during
your |I*State tour, helped everyone realize that saving
and a sound dollar go hand in hand*
\\

I believe the country has worried mamm more about an

unstable dollar —
goes by —

one that buys less and less as time

than even about high taxes, which we all dislike.

N v Regular and persistent saving checks inflation and
therefore helps stop depreciation of the dollar*
* Also, as you pointed out to your listeners, regular
bond-buying on the Bond-A-Month Plan where they bank or the
Payroll Savings Plan where they work is a sure way of helping
strengthen our defenses and assuring peace, as well as a sure
assistance to personal security.
^JoummAe

your bond tour at no small personal cost in time

and effort and inconvenience. In expressing our appreciation
I am glad to have the privilege of presenting to you this 4*

t
treasury Department citation *for distinguished service.

i1

176

'HimSecretary of the Treasury Humphrey today presented to
ft
H
Pickford a Treasury Department citation'for distinguished service
to the United States Savings Bonds program.
Miss Pickford recently completed a bond-selling tour
in the course of which she visited A^cities. The tour began
in Washington on March 30 and ended in San Francisco on May 13.
In presenting the citation to the motion, picture star,
the Secretary said:
(pick up Secretary^ statement)

Miss Pickford1 s tour was made in connection with the
Savings Bonds program Bond-A-Month campaign, which is being supported
by club women representing 21 national organizations throughout
America. Her personal appearances on the tour stimulated
Bond-A-Month activities effestively.
Tlm^.ti^s^ in which she spoke we^re_^s^.ington, Los Angeles,
t*yy

Chi

^^^

e^Ar*i

TREASURY DEPARTMENT
Information Service

IMMEDIATE RELEASE,
Wednesday, May 27, 1953

WASHINGTON, D.C.

H-142

Secretary of the Treasury Humphrey today presented to
Mary Pickford a Treasury Department citation "for distinguished
service" to the United States Savings Bonds program.
Miss Pickford recently completed a bond-selling tour in the
course of which she visited 25 cities. The tour began in
Washington on March 30 and ended in San Francisco on May 13.
Miss Pickford!s tour was made in connection with the
Savings Bonds program Bond-A-Month campaign, which is being
supported by club women representing 21 national organizations
throughout America. Her personal appearances on the tour
stimulated Bond-A-Month activities effectively.
In presenting the citation to the motion picture star, the
Secretary said:
"Miss Pickford, you have done your country a real
service in the last eight weeks in impressing on millions
of people the importance of saving.
"Or I might say the importance -- the decisive
importance -- of a sound dollar.
"I am sure your Savings Bonds message, which
reached so many American people during your 15-State
tour, helped everyone realize that saving and a sound
dollar go hand in hand.
"I believe the country has worried more about an
unstable dollar -- one that buys less and less as time
goes by -- than even about high taxes, which we all
dislike.
"Regular and persistent saving checks inflation and
therefore helps stop depreciation of the dollar.
"Also, as you pointed out to your listeners, regular
bond-buying on the Bond-A-Month Plan where they bank or
the Payroll Savings Plan where they work is a sure way
of helping strengthen our defenses and assuring peace,
as well as a sure assistance to personal security.

178
- 2 "You made your bond tour at no small personal cost
in time and effort and inconvenience. In expressing
our appreciation I am glad to have the privilege of
presenting to you this Treasury Department citation
'for distinguished service'."
The citation itself read:
"FOR DISTINGUISHED SERVICE
MARY PICKFORD
Whose dedication to Public Service to the
UNITED STATES SAVINGS BONDS PROGRAM
Has been an inspiring example to Americans in
all walks of life who have seen and heard her
message on her personal tour or through the
mass media of communications
For this valuable contribution the
TREASURY DEPARTMENT
proclaims the gratitude of the Nation.

G.M. Humphrey
Secretary of the Treasury
(SEAL) Washington, D.C., May 12, 1953."

oOo

a » s_»

t
Dallas - IrtuuttM* Mmlmlmmm,

Warn Mexico, Oklahoma, Texas

1«* lork - lev f^rk Stat*
Omaha - Colorado, lova, Etnaae, Miiiiieeota, mseourl,
ifetaft«fcft# Ipfftl. Mtoo&s, South Dakota, Wyoming '
FhiIa4€lpMa: - Wmlmmmjmg- Umylmd, mm Mmmmj*. Peaneylvaou,
fi» «§f*£tanr tf fiMNft« \VLmm9 mrnd %%\4
mmtwimA mt: fouMfcU.
San Francisco - Irisoos, Califaraia, Idaho, Montana,
l»vadft# Oi"egon, Utah, '* aj&oiagton, and
tl^ f«rv£toriM at Alaska and X M n t l

A. District lipp^iiii^
B. Hip mt Ift*t*i<r%9

160

- 3 ~
"Third, giving more authority to the field means that
taxpayers vill get faster service hereafter on matters that
have been delayed mj having to come to Washington.
"Fourth, more money can quite profitably he spent In
finding people who have not been paying their taxes. The
steps we are taking will help a great deal in that Job of
enforcement.n
44» mim- ttsfeyiet* vet* mtmhlimlmd* Qmrnmlmmlmmt
>4mam*m4m mrn&A* aft#a* mam m&tmmlm
*®3*l#*d, tmmw^mtmtlm,
tmtmma

emwmAmm&lmm Jjsto

mw^tmAtm,

geographic, and ®mmmmtemtl®»

Cities mmmtwmilw ImmmtmA f_N» turn ^Ammdpmtmt of

«*** mmd popsJM&ofe wmm

eh#e#n for Disfcrlet mmmm^mmwtmwm

to fcelilt&t* trawl end eeMraalcatloxi to Aam m m e t w * *
o##i##s -mpmmflmdm
Amam mi tm pmmmmml

of %%m «fce&igft»d mtfgmmm will be

twmmmtmwm^ to $tt*»¥ *l«t.rlet* to ingmmt their mmafemoat
mtmttm mimm mmm ettltloM will 4a mmmmmmmwf in vis* mt
the gr#nt#r atroets asslfn#d sad mlmm mlmm
17 offleos ted mm

staffing at the

boon ttmllf mmmmlmtmAm

fh# new tlotvio*. sffleeo suit the st&t## Vfeieh th#v will
lnelude «ro ae folio***
Atlanta - _U*fe*M» Plerita, §®mn&m» Mississippi,
Bovtb ®mw®l%nm9 South c**ftlftaa» Tennessee,
and Cettsl Eons
Bostom * Conaeetlcut, iotas, W^soettmeetts,
Warn Mmmwmim* I^-Oio Island., Vermont
y^^memgm
- Xlltnots* m e t t i n , VisooMla
ClMiaMti -

IMISM,

%mmtmm4$, Ohio, Vii»giiii*, West Virginia

161

- 2' being done in these positions either has been deemed to be
unnecessary or will be decentralized to the field under
schedules expected to be completed by early fall.
In connection vlth the streamlining program both in
the field and in Washington, the Bureau plans more enforcement work. There will be additional agents put on to audit
tax returns, and consequently tax reoelpts to the Government
should go up.
Cities where District Commissioners• offices will remain
are: Boston, Bow York City, Philadelphia, Chicago, Atlanta,
and Dallas , Texas. In addition, new District offlees will
be opened at San Francisco, Omaha, and Cincinnati.
p

Cities where District Commissioners * offloos will be

closed are: Buffalo, Baltimore, Cleveland, Detroit,
Louisville, Birmingham, St. Louis, St. Paul, Denver, Los
Angeles, and Seattle, Wash.
Commissioner Andrews emphasised four basic points:
"First, the individual taxpayer will still file his
returns at the same office, but he will have the advantage
of *j§am better and faster assistance in his tax problems.
"Second, District Commissioner offices are needed for
good management of the field operations. Our trouble was
that we had too many. We are satisfied we can give more
authority to fewer people and get better management.

•f G O

$ # * RELEASE mim&mWtm MEWSPAPERS
FRIDAY. HAY 29, 1953

I/-/4 3

Secretary of the Treasury Humphrey today announced his
approval of a plan of Commissioner of Internal Revenue
T. Coleman Andrews which will reduce from 17 to 9 the number
of Bureau of Internal Revenue regions throughout the country,
effective July 1, 1953, ond which will reduce personnel by
255-* i n the Bureau's Washington headquarters.

The two steps

will effect ultimate savings of $6 million a year.
The plan, initiated by Commissioner Andrews and today
approved by Secretary Humphrey, will out costs in the
Internal Revenue field service by about $2 million by a
streamlining of the overall administrative setup.
Commissioner Andrews said that the relationship of the taxpayer to the Bureau will be improved as the 64 district
collection offices with which taxpayers deal will remain
as now loeated but be able to serve taxpayers more
efficiently.
Elimination of the 8 regional offices will reduce unnecessary overhead by abolishing 400 positions, and represents a first step In concentration on a businesslike
management program of benefit both to the Government and
the taxpayer, Commissioner Andrews said.
The reduction in the Bureau's Washington headquarters
will eliminate 900 positions in the next few months and
ultimately lead to a saving of $4 million.

The work now

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS
FRIDAY, MAY 29, 1953

WASHINGTON, D.C.

H-143

Secretary of the Treasury Humphrey today announced his
approval of a plan of Commissioner of Internal Revenue
T. Coleman Andrews which will reduce from 17 to 9 the number
of Bureau of Internal Revenue regions throughout the country,
effective July 1, 1953, and which will reduce personnel by
25$ in the Bureau's Washington headquarters. The two steps
will effect ultimate savings of $6 million a year.
The plan, initiated by Commissioner Andrews and today
approved by Secretary Humphrey, will cut costs in the
Internal Revenue field service by about $2 million by a
streamlining of the over-all administrative setup.
Commissioner Andrews said that the relationship of the taxpayer to the Bureau will be improved as the 64 district
collection offices with which taxpa2/ers deal will remain
as now located but be able to serve taxpayers more
efficiently.
Elimination of the 8 regional offices will reduce unnecessary overhead by abolishing 400 positions, and represents a first step in concentration on a businesslike
management program of benefit botn to the Government and
the taxpayer, Commissioner Andrews said.
The reduction in the Bureau's Washington headquarters
will eliminate 900 positions in the next few months and
ultimately lead to a saving of $4 million. The work now
being done in these positions either has been deemed to be
unnecessary or will be decentralized to the field under
schedules expected to be completed by early fall.
In connection with the streamlining program both in
the field and in Washington, the Bureau plans more enforcement work. There will be additional agents put on to audit
tax returns, and consequently tax receipts to the Government
should go up.
Cities where District Commissioners' offices will remain
are: Boston, New York City, Philadelphia, Chicago, Atlanta,
and Dallas, Texas. In addition, new District offices will
be opened at San Francisco, Omaha, and Cincinnati.

- 2 Cities where District Commissioners1 offices will be
closed are: Buffalo, Baltimore, Cleveland, Detroit,
Louisville, Birmingham, St. Louis, St. Paul, Denver, Los
Angeles, and Seattle, Wash.
Commissioner Andrews emphasized four basic points:
"First, the individual taxpayer will still file his
returns at the same office, but he will have the advantage
of better and faster assistance in his tax problems.
"Second, District Commissioner offices are needed for
good management of the field operations. Our trouble was
that we had too many. We are satisfied we can give more
authority to fewer people and get better management.
"Third, giving more authority to the field means that
taxpayers will get faster service hereafter on matters that
have been delayed by having to come to Washington.
"Fourth, more money can quite profitably be spent in
finding people who have not been paying their taxes. The
steps we are taking will help a great deal in that job of
enforcement."
The nine districts were established, Commissioner
Andrews said, after an extensive examination into population,
workload, transportation, geographic, and communication
factors. Cities centrally located from the standpoint of
area and population were chosen for District headquarters
to facilitate travel and communication to the Directors'
offices supervised.
Some of the personnel of the abolished offices will be
transferred to other districts to augment their management
staffs since some additions will be necessary in view of
the greater areas assigned and also since staffing of the
17 offices had not been finally completed.
The new district offices and the states which they will
Include are as follows:
Atlanta - Alabama, Florida, Georgia, Mississippi,
North Carolina, South Carolina, Tennessee,
and Canal Zone
Boston * Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, Vermont

Chicago - Illinois, Michigan, Wisconsin
Cincinnati - Indiana, Kentucky, Ohio, Virginia,
West Virginia
Dallas - Arkansas, Louisiana, New Mexico, Oklahoma,
Texas
New York - New York State
Omaha - Colorado, Iowa, Kansas, Minnesota, Missouri,
Nebraska, North Dakota, South Dakota, Wyoming
Philadelphia - Delaware, Maryland, New Jersey,
Pennsylvania, tho Territory of Puerto
Rico, and the District of Columbia
San Francisco - Arizona, California, Idaho, Montana,
Nevada, Oregon, Utah, Washington, and
the Territories of Alaska and Hawaii

Attachments:
A. District Regrouping
B. Map of Districts

0O0

REGROUPING

OF

INTERNAL

REVENUE

DISTRICT OFFICESEffective July 1, 19$3

Present
Boston

Buffalo

Maine, Vermont, New Hampshire,
Massachusetts, Connecticut, Rhode Island
New York State outside New York City

New York City Metropolitan New York
Philadelphia

Pennsylvania, New Jersey, Delaware

Baltimore

Maryland, Virginia, West Virginia, Puerto Rico
District of Columbia

Detroit

Michigan

Cleveland

Ohio

Birmingham

Alabama, Mississippi, Louisiana

St % Paul

Minnesota, Iowa, North Dakota,.
South Dakota, Nebraska

Denver

Wyoming, Colorado, Utah, New Mexico, Arizona

Seattle

Washington, Oregon, Idaho, Montana, Alaska

Los Armeies

California, Nevada, Hawaii

Dallas.

Texas,. Oklahoma

Atlanta

Georgia, South Carolina, North Carolina,
Florida, Canal Zone

St. Louis
Chicago

Missouri, Kansas, Arkansas
Illinois, Wisconsin

Louisville

Kentucky, Indiana, Tennessee

Atlanta

Alabama, Florida, Georgia, Mississippi
North Carolina, South Carolina,
Tennessee, Canal Zone

Boston

Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, Vermont

Chicago

Illinois, Michigan, Wisconsin

Cincinnati

Indiana, "Kentucky, Ohio, Virginia,
West Virginia

Dallas

Arkansas, Louisiana, New Mexico,
Oklahoma, Texas

New York

New York State

Omaha

Philadelphia

Colorado, Iowa, Kansas, Minnesota,
Missouri, Nebraska, North Dakota,
South Dakota, Wyoming
Delaware, Maryland, New Jersey,
Pennsylvania, District of Columbia,
Puerto Rico

San Francisco Arizona, California, Idaho, Montana,
Nevada, Oregon, Utah, Washington,
Alaska, Hawaii

CD

en

INTERNAL REVENUE FIELD SERVICE
(EFFECTIVE-JULY 1,1953)

183

w*l
IMMEDIATE RELEASE,
Thursday, Kay 28, 19$3 •
Secretary of the freaemry Mwa^rmy tmdmy anno«ne«d the subscription and
allotment figures with respect t© the current offering of 2-5/8 percent treats*?
Certificates of Indebtedness ef Series B-191&, to be dated June 1, 19$3, open
to the holders ef Treasury ©ertifieates of lnclebte«fei#fi« of Series 1-1953,
maturing June 1, 1953, and Treasury Bonds of 1953-55, called for redemption on
June I5 t 190±__
S Subscriptions and allotments were divided among the several federal Reserve
Districts and the Treasury as followss
Federal Beserve
District
Mew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
trmmmmwy

Certificates
\ 69,566,000
2*633,592,000
94,607,000
212,895*00©
58,385,000
130,729,000
503,6-45,000

Ha,i*-*6,ooo
89,1*08,000
171,783,00)
63,k9O,0O0
237,1*16,000
k,l9&,000

Bonds

fetal

|

I

6,999,000
Ul5,2-*6,G0G
9,5W,Q00
1*7,637,000
3,502,000
2,895,000
117,076,000
26,i|0li,000
13,014,000
2lt,ll5,000
10,313,000
32,637,000
7.9kUOQQ

76,1® 000

2,778,838 000
10li,l55 000
260,132
61,88?
133,62k
620,711 000
167,850 000
102,ii52 000
195,898 000
73,803
270,053
1^133,002

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

189
MEDIATE RELEASE,
Thursday, May 28, 1?53»
«... 111 in-11

11

11

i

H-I44

*"••'•

Secretary of the Treasury Humphrey today announced the subscription and
allotment figures with respect to the current offering of 2-5/8 percent Treasury
Certificates of Indebtedness of Series B~195U, to be dated June 1, 1953, open
to the holders of Treasury Certificates of Indebtedness of Series B-1953,
maturing June 1, 1953, and Treasury Bonds of 1953-55, called for redemption on
June 15, 19$3a
The final figures show acceptance of the exchange offer by holders of
85 percent of the maturing securities*,
Subscriptions and allotments were divided among the several Federal Reserve
Districts and the 'Treasury as follows:
Federal Reserve
District

Certificates
Exchanged

Bonds
Exchanged

Total
Exchanges

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

$ 69,566^000
2*633,592,000
9U,607,0CG
212,395,0C0
58^385^000
130,729,000
5Q3,6U5:,000
141,446,000
89,408,000
171,783,000
63,1*90^000
237,Ul6*C00
k!f192sQOO

m

$
76,565,000
2,778,838,000
iou.,155,000
260,532,000
61^887,000
133,62U,C00
620,721,000
167,850,000
102,452,000
195,898»000
73,803,000
270,053,000
12*133,000

$u,Hll,l5u,000

^7,357,000

TOTAL

0O0

6,999,000
iu5p2U6-G00
9,5U8.,ooo
17,637*000
3,502,000
2,895,000
117,076,000
26^04,000
13*044,000
2L;,115,000
10^313,000
32,637«, COO
7,91*1,000

$U,858,5ll,OCO

ISO

u - / ^3
nMftj|r ?9T ~ The Treasury Department announced today
that the Lockheed Aircraft Corporation^ California employees have
a record of 95*7 per cent participation in their U. S. Savings Bonds
1953 Payroll Savings drive. The Lockheed record tops Payroll Savings
sales for any company of its size in the country* The previous national
mark of 92 per cent was established by Lockheed1 s Georgia Division
at Marietta, Ga., last April,
Alweel_-long drive closed with 36,i|.19 of the 38,037 employees of
Lockheed's eleven Southern California plants signed to authorize the
purchase of Savings Bonds regularly from their salaries.
Robert E# Gross, President of Lockheed is s erving as national chairman of the 1953 Aircraft Industry Payroll Savings drive. Mr. Gross said

that three Lockheed plants achieved a perfect score by signing 100 per c
of their employees on the Payroll Savings Plan. They were the Special
Projects Development Center in Burbank, the Bakersfield Feeder Plant,
and the Lockheed Air Terminal at Burbank.
-#——

& Qt>

I -ftp

frjyi^

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

1 Q1
«L* v*' JL

RELEASE MORNING NEWSPAPERS
Friday, May 29, 1953
•

•"

i

'

"

H-145

' ' '

The Treasury Department announced today that the Lockheed
Aircraft Corporation's California employees have a record of
95.7 per cent participation in their U. S. Savings Bonds 1953
Payroll Savings drive.

The Lockheed record tops Payroll

Savings sales for any company of its size in the country.

The

previous national mark of 92 per cent was established by
Lockheed's Georgia Division at Marietta, Ga., last April.
A week-long drive closed with 36,419 of the 38,037 employees of Lockheed's eleven Southern California plants signed
to authorize the purchase of Savings Bonds regularly from their
salaries.
Robert E. Gross, President of Lockheed is serving as
national chairman of the 1953 Aircraft Industry Payroll
Savings drive.

Mr. Gross said that three Lockheed plants

achieved a perfect score by signing 100 per cent of their
employees on the Payroll Savings Plan.

They were the Special

Projects Development Center in Burbank, the Bakersfield Feeder
Plant, and the Lockheed Air Terminal at Burbank.
oOd

-2- W C-.

fkm mmmtmw

of turn fmmmrf

i w ^ i a ^ immX mm.nim

t M t tb# t n i l m tm

•800,000,000, «r tiMMritaeft, «c ft* j**ttfJ#*vl-Wft art** i0?«4iir »t«^^r tilte to be
datcva jiuia J anA.to ^Uvre a^pt^abfcr %t\» MB» vt&t* mm mtimwmd m m 4k,
at to© Federal Wmmm aaAm «a Isgr If*
?i» d©t-i.ii© of this %mmm mm mm

MIMM

tmrnl await* im - f M I & W e M i
M n l MHpUd

•

t

#§% §%0$0

•13?t26T,000
#** a
tlve basi© a m accepted Im

I^J%tfo^%Trmfgt _£R

mm}

** a^292 E ^ i m l e n t r&as

mm m oXmm&mm m$^WOm>* £*3®Jm P

of &ccsai©& ccKaaetitiv© bide:
^FT"*

wmVF'^Wmf-^ay W

W

T F 1 " "'"•JJ! <^P *

*' W 1 ** ~ ^"^

mi-IP"* m iiffi *

ma 999109 Bq&imlsst rate* at

mm

^sprai* 1#75J^- I** I B M

tm

m

m mm

tm tm m% mm 1mm pttmm mmm
foliX

aalstrlci

Total
mmmmmmSmmm

| 29,1*0,000
lotk
}Ml&$el$im

,000
392,000

at. mos
'eaor
Sttl-U-9

afaamiawjFm w w w

Star***
1&1& '•Mflf»7QT#ooo

58**0,009
19 f $OS t ®00
IfaMWfQQO
!il4f670#OO0
3J*y&#000
314,107,000

,aia»ooQ

•JSlBfffW

&8GO*G61_*GOQ

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C
1 QO

RELEASE MORNING NEWSPAPERS,
Saturday, May 30* 1953-

-u

KJ

\J

H-146

The Secretary of the Treasury announced last evening that the
tenders for $800,000,000, or thereabouts, of Tax Anticipation
Series 107-day Treasury bills to be dated June 3 and to mature
September 18, 1953, which were offered on May 26, were opened at
the Federal Reserve Banks on May 29.
The details of this issue are as follows:
Total applied for - $1,675,707,000
Total accepted
800,064,000 (includes $117,267,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.292 Equivalent rate of discount approx.
Range of accepted competitive bids: 2.383$ per annum
High

- 99.4-79 Equivalent rate of discount approx.
1.753$ per annum
Low
- 99.274 Equivalent rate of discount approx.
2.443$ per annum
(68 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco TOTAL

Total
Applied for
29,840,000
981,051,000
74,527,000
99,040,000
25,472,000
50,892,000
188,309,000
56,510,000
21,085,000
43,747,000
34,679,000
$1,675,707,000
70,555,000
0O0

Total
Accepted
22,208,000
303,866,000
36,617,000
58,240,000
19,908,000
38,392,000
148,609,000
44,670,000
18,485,000
34,107,000
30,043,000
$800,064,000
44,919,000

/* y?
Sa ,<.^ >.-,y-a, «...
"*
^wt^,^*^^
(

Proposed Press Release L /

/ * £y

1

'

/-/.
'

y_Jl
—~ ' /

The Bureau of Customs announced today |e-j_eei_i__g| changes in its regulations to eliminate, insofar as can be accomplished by administrative
action, requirements for the verification under oath of customs documents.
The elimination of affidavit requirements In more than 100 specific sections of the Customs Regulations of 19^3, amended, is expected to result
in substantial savings of time and paper work for both foreign traders
and customs officers. The move is a part of the Bureau's continuing
program of simplification of procedures.
David B. Strubinger, Acting Commissioner of Customs, pointed out
that section 1001, title 18, United States Code, protects the Government
against knowing and willful falsification of material facts or fraud and
misrepresentation as to any matter within the jurisdiction of any department or agency of the United States. The acceptance by Customs of statements, declarations, verifications, acknowledgments, etc., signed without
appearance before an oath administering officer, will not, therefore, lessen the protection afforded the Government.
Mr. Strubinger said further consideration will be given in respect
to eliminating oath requirements that are statutory in nature if authorityproposed in the pending Customs Simplification Bill becomes law.
The changes announced today are embodied in Treasury Decision 53268,
text of which appears in the Federal Register of Friday, May 29, 1953,
and are effective immediately.

GHCriv

5-27-53

p£

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

195

IMMEDIATE RELEASE,
Friday, May 29, 1953.

H-147

The Bureau of Customs announced today changes in its
regulations to eliminate, insofar as can be accomplished by
administrative action, requirements for the verification under
oath of customs documents. The elimination of affidavit
requirements in more than 100 specific sections of the Customs
Regulations of 1943, amended, is expected to result in substantial savings of time and paper work for both foreign
traders and customs officers. The move is a part of the Bureau's
continuing program of simplification of procedures.
David B. Strubinger, Acting Commissioner of Customs, pointed
out that section 1001, title 18, United States Code, protests the
Government against knowing and willful falsification of material
facts or fraaid and misrepresentation as to any matter within the
jurisdiction of any department or agency of the United States.
The acceptance by Customs of statements, declarations, verifications, acknowledgments, etc., signed without appearance
before an oath administering officer, will not, therefore,
lessen the protection afforded the Government.
Mr. Strubinger said further consideration will be given in
respect to eliminating oath requirements that are statutory in
nature if authority proposed in the pending Customs Simplification
Bill becomes law.
The changes announced today are embodied in Treasury
Decision 53268, text of which appears in the Federal Register of
Friday, May 29, 1953, and are effective immediately.

oOo

1S'6

- 12 -

It will lessen a gamble tilth national economic security.
4m are eotreti^ed that this if* a sound program, ftoe
overwhelming editorial support from ail sections of the
country is rmrp grattfyiifcg. He are satisfied that the
country mm m whole is back of the President's program.
I xsrge, therefore* that the tax he extended without
modification for six months and that tm than get rid of
It once and for all. In the meantime we will devote
ourselves to further reducing current expenditures so that
the reduction in individual income taxes for all the people
can justifiably be made a reality. Then all of our efforts
will he used In developing m better tax structure under
which the elimination of ©any of the inequities and
injustices for all tax payers, both corporate and individual,
can he made at the same time as the excess profits tax
expires. In that way justice and fair dealing can he done
equally and contemporaneously for all*
Thank you, Mr, Chairman and gentlemen, for this
opportunity to appear before yeu, I will gladly attempt
to answer any question.

tQ7

- 11 -

Since the vast majority of companies are on a calendaryear basis, the end of the calendar year ia the logical time
for the tax to expire.

I would feel entirely differently

about extending the tax even for one month into another year.
A while ago I mentioned the fact that we had had to
reduce the earlier estimate® of tax receipts. For this year,
with only a month left, we know that receipts will be at
least $1.5 billion below the estimate made last January. For
next year, the reduction is |1.2 billion.

Our figure for

next year's receipts differs by only $100 million from that
made independently by the staff of your Joint Committee.
The reductions in estimates., do. not mean that tax collections
are falling off.
too high.

It just means that the original estimates were

Collections this year will be several billion dollars

more than in any previous year in the history of the country*
Hext year, even with the tax reductions proposed in the
President's program, receipt® will be higher than this year.
The extension of the excess profits tax for six months,
without modification or amendment, is a necessary first step
towards economic security.

It will give us time tc get control

of the budget. It will help in maintaining a sound dollar.
It will make it possible for tax reductions and revisions
affecting everyone to take place at the same time next year.

198

- 10 The significant point to me from these figures Is that
though the tax is a very serious barrier to growth for rapidly
expanding small companies, it does not affect the vast majority
of companies. It falls most heavily on profitable large
companies.
I want to be sure that ray position on this point is clear.
The present distribution of the, corporate tax burden is bad
because of the tax barriers to growth and the tax penalties
on efficiency*

But for the rest of this calendar year, most

of the bad effects are present anyway.
As the President has noted, the expiration of the tax on
June 30 would be misleading in many respects. Regardless of
the date of expiration, the tsx is computed on a full-year
basis.

Even though it expires on July 1, Its provisions are

applicable to the rest of the year.

The expiration of the

tax in the middle of the year simply means that the rate is
lower on the income for the entire year.

Thus, if a company

lost money through June and made large profits in the last
part of the year, it would still be subject through December
to all of the peculiar, damaging effects of excess profits
taxation on business judgments, even though the tax had
supposa-dly expired some months previously.

1 QQ
JLuv

- 9I-shall not elaborate on the disadvantages and bad effect* of
this form of tax. They are familiar to all of us. It will
be a relief when the tax is off the books. I want to
empties tse that the recommendation Is for a six-months'
extension. We would object to any extension beyond that time.
In considering the excess profits tax, it is Important
to see what corporation© pay it. Complete data on returns
filed in 19:31, for 1950 Income, show that 50,230 corporations
paid an excess profits tax. This was less than 12 percent
of the 42%,000 corporations with taxable income In that year.
Preliminary figures for returns on 1951 Income, filed In
1952, show that the percentage was even smaller in that year.
furthermore, most of the tax was paid by large companies.
The 1950 rsturns showed a total excess profits tax of
$1,385,000,000.

Cf this total, $1,23**000,000 were from

corporations with net incomes of more than $250,000 each.
This means that only $151*000,000 or 11 percent of the total
tax came from companies with incomes below $250,000, The
incomplete figures for 1951 Income show that this same
relationship between large and small companies continued in
that year. The full details on the 1950 returns are being
filed with the Committee today.

200

- 8 -

In the same message, the President referred to the need
to revise the whole tax structure "to remove existing
Inequities...simplify the needless complications which have
developed over the--years in tax laws, and generally secure
a better balance of tax revenues.... At the same time, we
must develop a system of taxation which, to the greatest
• a-'

extent possible, will not discourage work, savings and
investment, but will permit and encourage initiative and
the sound growth of our free economy."
As you have said on various occasions, Mr. Chairman,
the present- system has developed in a patchwork manner over
many years,. It. needs a thorough overhauling.

We are pleased

to know that you have directed your staff and the staff of
the Joint Committee to woric on this revision,
We in the Treasury are also hard at work on the same
subject. W® appreciate the opportunity for cooperation in
various ways.

We already have set up ten joint committees

with,.representatives ef your staffs and.the Treasury.
/

*

•

•

"

:

-

With this statement on the general background, I turn
to the President's recommendation for the extension of the
excess profits tax, without amendment or modification, for
six months trough December 31, 1953. It should be clear
from the President's statement that we disapprove in
principle of so-called excess profits taxation.

.201

- 7-

•The old-age and survivors trust fund has now reached
almost 18 billion dollars. Receipts at present tax rates are
currently well in excess of expenditures, The further addition
to the fund which would flow from the projected tax Increase
Is not required.

n

(k) The wide variety of existing excise rates makes

little economic sense and leads to improper discrimination
between industries and among consumers. Specific proposals
for a modified system of excise taxation will be included in
the recommendations for tax revisions that will be submitted
to the Congress next January.
^The reductions in excise taxes, which would take place
next April 1 under present law, should be rescinded pending
the development of a better system of excise taxation.
8

(5) I believe that a reduction in personal income

taxes can and should be made effective next January 1. This
reduction will amount to about 10 percent on the lower and
middle incomes, graduating down to between one and two percent
on the highest brackets. While this reduction is in
accordance with existing law, it would have been impossible
to accomplish on the basis of the previous Administratiot- * s
budget without additional deficit financing with its resultant
inflationary pressures. A reduction will be justified next
January only because of reductions in proposed expenditures
which the present Administration has already been able to make
and because of additional economies we expect to achieve in the

202

- 6 -

*The scheduled expiration of the tax in June would be'
misleading in Its consequences. It would simply'mean that tarn
tax would be applied at half the full rate, 15 percent, to all
of this year's business Income. Therefore it® bad effects* la
penalising efficiency and encouraging waste will continue
through this year in any event, the extension of the tax
through December 1953 would maintain the full 30 percent rate
for the entire year and would produce a gain In revenue of
800 million dollars in the fiscal year 195^*
w

{2) The reduction In the regular corporate tax rate

from 52 percent jS^ 4? percent, now scheduled to go Into effect
on April 1, 195^* should be rescinded.

A continuation of

these extra five percentage points on the corporate tax will
bring in about 2 billion dollars a year, about the same amount
as will be lost annually by the expiration of the excess
profits tax at the end of this calendar year.
"Though a 52 percent corporate tax rate is too high for
the long run, the budget will not now permit a reduction in
both- individual and. regular corporate tax.rates. A reduction
In.Individual taxes must come flrat, for-the benefit of the
entire economy.
11

(3) The increase in the old-age insurance tax from 1-1/2

to 2 percent on both employees and employers, now;scheduled
to go into effect next January 1, should be postponed until
January 1, 1955•

203

Individual income taxes need to be reduced.

There are

many defects in the excise taxes and many inequities Effecting
both corporations and Individuals under many provisions of the
tax laws which neeti to be corrected. Much though I dislike
the excess profits tax, it should not be singled out as the
only one for special treatment now.
On the basis of all of these facts, and taking into
account the need for maintaining military security and
economic security,

the President has made the following

recommendations to the Congress concerning immediate tax
legislation.

In his message to the Congress of May 20, the

President said:
"(l) The excess profits tax should be extended as now
drawn for six months beyond its present expiration date of
June 30. Thia action seems necessary in spite of the fact
that this is an undesirable way of taxing corporate profits.
"Though the name suggests that only excessive profits
are taxed, the tax actually penalizes thrift and efficiency
and hampers business expansion.

Its impact is especially

hard on successful small businesses which must depend on
retained earnings for growth. These disadvantage® of the
tax are now widely recognized.

I would not advocate its

extension for more than a matter of months. However, under
existing circumstances the extension of .the oresent law is
preferable to the increased deficit caused by Its immediate
expiration or to any short-term substitute tax.

204

- ^

-

The individual income tax rates are planned to go down
at the beginning of next January by amounts ranging from abmtt
10 percent in the lower and middle brackets to between
1 percent and 2 percent in the highest brackets. this will
involve a loss of $3*0 billion on a full~year basis and
$1.1 billion in fiscal 195*.
On April 1, 195%# the normal corporation tn©eite tax la
to be reduced from 30 percent to 25 percent, with the surtax
remainlng at 22 percent, this will reduse the total regular
rate on the bulk of corporate income from 52 percent to
%7 percent. It will mean a loss ot $2.0 billion In a full
year, with only a small loes in fiscal 195%*
At the same time, April 1, 195%, various excise taxes
are also scheduled to be reduced, for a loss of $1.0 billion
on an annual bails and $200 million in fiscal 195%.
fheae reductions all add up to $8.0 billion for a full
year and $2.1 billion for fiscal 195%.
Two things are wrong with this schedule of tax
reductions. First, with a deficit of $6.6 billion, no
immediate tax reduction can be safely made. And second,
there are many Inequities and hardships which occur front
various provisions of the several tax laws, fheae affect many
corporations and a great many individuals. In the present
situation, it does not seem fair to let the first reduction
benefit only a relatively small group of corporations at least
six months ahead of any relief for any other taxpayers.

205

- 3Much though we dislike the level of fovernment spending and
taxation, we are not willing to gamble with the nation's
defense bf to© rapid 4uta- in defense outlays which might
leave us open to attack.
there is a second gamble we cannot take* With a
deficit of $&*& billion, it is not safe to gamble with the
country*® economic security by.making immediate cuts $at
in taxes. This would simply increase the deficit, again
build up inflationary pressures and further postpone the. tijm
when a sound economy, sound money and a balanced budget can
be attained.
the projected defioit"of $6.6 billion for fiscal 195^
is after baking into account four major tax reductions which
are scheduled to. occur under present law during, the year.
The sequence of these reductions was fixed by legislation
adopted some time ago, without reference to the military or
economic situations which might exist when the tax cuts were
to become effective. A sensible financial plan cannot
possibly be made now out of such a schedule in view of
present conditions.
At the start of the next fiscal jmmr, that Is, on next
July 1, the excess profits tax expires, this will involve a
loss of revenue of $2.0 billion In a full year and $800
million in fiscal 195%.

206

- 2 -

In his Message of Hay 20 to the Congress, President
Eisenhower showed a reduction of $%«5 billion in the
proposed expenditures;

this would bring the projected

deficit down to $6,6 billion.

I personally am disappointed

that we have not been able to make greater reductions in
expenditures•
I had hoped until a few weeks ago that it would be
possible to cut back Government spending fast enough to
justify a reduction in Individual Income taxes and the end
of the excess profits tax on July 1*

Unfortunately, that Is

not possible.
I am confident that further cuts can be made as the year
progresses. But I am also satisfied that the reductions
now proposed are all that can be made safely at this time.
We live, as the President has said, in an age of peril.
The danger of an atomic Pearl Harbor is real*

Reductions In

defense spending must be made only after full account Is
taken of all the security factors Involved.

We can, in time,

secure more defense for less money. Action to #**• S*ve*

m

confidence that this result can be accomplished.
In business, a management can drastically cut back on some
activity and later rebuild it if the original cut turns out to
be too large. On matters affecting national security, we cannot
take th%s risk. \The chance for second guessing may nm^er come.

207

H-I¥t
Mr. Chairman and Member® of the Committee on Ways and Means:
I appreciate this opportunity to appear before you.
The Immediate problem Is the extension of the excess
profits tax for six months through December 31. I am here
to urge this extension in spite of the fact that I dislike
the excess profits tax and think it is a bad tax.
The basic problem is that of national security — which
means military security and economic security. The country
must be kept safe from aggression from abroad. And further
inflation must be stopped and the dollar must be kept sound
to provide a solid base for a healthy economy. Military
security and economic security are the chief responsibilities
of the nation. They must take precedence over everything
else*
A few financial facts will show just what we are up
against.
Last January the budget filed for the fiscal year 195^
showed total estimated receipts of $68.7 billion and
expenditures of %7'B*^ billion, with a prospective deficit of
$9.9 billion. On the basis of our present information, it
appears that revenue receipts will be $1.2 billion less than
had originally been estimated for that year. This would make
the deficit $11.1 billion.

208

\oS
/

. § ttfMMNit by

Bmmtmm 4t mm fwasw*f mmm^ M« Mma^mmw
before mm
mmm wmm mat mmm cmmtttmm
mm Intension of mm mnmmm tvattu fm

June %9 1953

210
TREASURY DEPARTMENT
Washington
Statement by Secretary of the Treasury George M. Humphrey
before the
House Ways and Means Committee
on Extension of the Excess Profits Tax
June 1, 1953
Mr. Chairman and Members of the Committee on Ways and Means:
I appreciate this opportunity to appear before you,
The immediate problem is the extension of the excess profits
tax for six months through December 31. I ^m here to urge this
extension in spite of the fact that I dislike the excess profits
tax and think it is a bad tax.The basic problem is that of national security -- which means
military security and economic security. The country must be kept
safe from aggression from abroad. And further inflation must be
stopped and the dollar must be kept sound to provide a solid base
for a healthy economy. Military security and economic security are
the chief responsibilities of the nation. They must take precedence over everything else.
A few financial facts will show just what we are up against.
Last January the budget filed for the fiscal year 1954 showed
total estimated receipts of $68.7 billion and expenditures of
$78.6 billion/ with a prospective deficit of $9-9 billion. On the
basis of our present information, It appears that revenue receipts
will be $1.2 billion less than had originally been estimated for
that year. This would make the deficit $11.1 billion.
In his Message of May 20 to the Congress, President Eisenhower
showed a reduction of $4.5 billion in the proposed expenditures;
this would bring the projected deficit down to $6.6 billion.
I personally am disappointed that we have not been able to make
greater reductions in expenditures.
I had hoped until a few weeks ago that it would be possible to
cut back Government spending fast enough to justify a reduction in
individual income taxes and the end of the excess profits tax on
July 1. Unfortunately, that is not possible.

H-148

211
- 2I am confident that further cuts can be made as the year
progresses. But I am also satisfied that the reductions now
proposed are all that can be made safely at this time.
We live, as the President has said, in an age of peril. The
danger of an atomic Pearl Harbor is real. Reductions in defense
spending must be made only after full account is taken of all the
security factors involved. Me can, in time, secure more defense
for less money. Action to date gives me confidence that this
result can be accomplished.
In business, a management can drastically cut back on some
activity and later rebuild it if the original cut turns out to be
too large. On matters affecting national security, we cannot take
this risk. The chance for second guessing may never come. Much
though we dislike the level of Government spending and taxation,
we are not willing to gamble with the nation's defense by too
rapid cuts in defense outlays which might leave us open to attack.
There is a second gamble we cannot take. With a deficit of
$6.6 billion, it is not safe to gamble with the countryrs economic
security by making immediate cuts in taxes. This would simply
increase the deficit, again build up inflationary pressures and
further postpone the time when a sound economy, sound money and
a balanced budget can be attained.
The projected deficit of $6C6 billion for fiscal 1954 is after
taking into account four major tax reductions which are scheduled
to occur under present law during the year. The sequence of these
reductions was fixed by legislation adopted some time ago, without
reference to the military or economic situations which might exist
when the tax cuts viere to become effective. A sensible financial
plan cannot possibly be made now out of such a schedule in view of
present conditions.
At the start of the next fiscal year, that is, on next July 1,
the excess profits tax expires. This will Involve a loss of
revenue of $2.0 billion in a full year and $300 million in fiscal
1954.
The individual income tax rates are planned to go down at the
beginning of next January by amounts ranging from about 10 percent
in the lower and middle brackets to between 1 percent and 2 percent
in the highest brackets. This will involve a loss of $3.0 billion
on a full-year basis and $1.1 billion in fiscal 195%.

- 3On April 1, 1954, the normal corporation income tax is to be
reduced from 30 percent to 25 percent, with the surtax remaining
at 22 percent. This will reduce the total regular rate on the
bulk of corporate income from 52 percent to 47 percent. It will
mean a loss of $2.0 billion in a full year, with only a small loss
in fiscal 1954.
At the same time, April 1, 1954, various excise taxes are also
scheduled to be reduced, for a loss of $1.0 billion on an annual
basis and $200 million in fiscal 1954.
These reductions all add up to $8,0 billion for a full year and
$2.1 billion for fiscal 1954.
Two things are wrong with this schedule of tax reductions.
First, with a deficit of ^6.6 billion, no immediate tax reduction
can be safely made. And second, there are many inequities and
hardships which occur from various provisions of the several tax
laws. These affect many corporations and a great many individuals.
In the present situation, it does not seem fair to let the first
reduction benefit only a relatively small group of corporations at
least six months ahead of any relief for any other taxpayers.
Individual income taxes need to be reduced. There are many
defects in the excise taxes and many inequities affecting both
corporations and individuals under many provisions of the tax laws
which need to be corrected. Much though I dislike the excess
profits tax, it -should not be singled out as the only one for
special treatment now.
On the basis of all of these facts, and taking into account the
need for maintaining military security and economic security, the
President has made the following recommendations to the Congress
concerning immediate tax legislation. In his message to the
Congress of May 20, the President said:
"(1) The excess profits tax should be extended as now drawn
for six months beyond its present expiration date of June 30. This
action seems necessary in spite of the fact that this is an
undesirable way of taxing corporate profits.
"Though the name suggests that only excessive profits are taxed,
the tax actually penalizes thrift and efficiency and hampers
business expansion. Its Impact is especially hard on successful
small businesses which must depend on retained earnings for growth.
These disadvantages of the tax are now widely recognized. I would
not advocate its extension for more than a matter of months. However,
under existing circumstances the extension of the present law is
preferable to the increased deficit caused by its immediate
expiration or to any short-term substitute tax.

e^. ^ w

- 4 "The scheduled expiration of the tax in June would be misleading in its consequences. It would simply mean that the tax would
be applied at half the full rate, 15 percent, to all of this yearTs
business income. Therefore its bad effects In penalizing
efficiency and encouraging waste will continue through this year
in any event. The extension of the tax through December 1953
would maintain the full 30 percent rate for the entire year and
would produce a gain in revenue of 800 million dollars in the
fiscal year 1954.
"(2) The reduction in the regular corporate tax rate from
52 percent to 47 percent, now scheduled to go into effect on
April 1, 1954, should be rescinded. A continuation of these extra
five percentage points on the corporate tax will bring in about
2 billion dollars a year, about the same amount as will be lost
annually by the expiration of the excess profits tax at the end of
this calendar year.
"Though a 52 percent corporate tax rate is too high for the
long run, the budget will not now permit a reduction in both
individual and regular corporate tax rates, A reduction in
individual taxes must come first, for the benefit of the entire
economy.
"(3) The increase in the old-age insurance tax from 1-1/2 to
2 percent on both employees and employers., now scheduled to go
into effect next January 1, should be postponed until January 1,
1955.
"The old-age and survivors trust fund has now reached almost
18 billion dollars. Receipts at present tax rates are currently
well in excess of expenditures. The further addition to the fund
which would flow from the projected tax increase is not required.
*****

"(4) The wide variety of existing excise rates makes little
economic sense and leads to improper discrimination between
industries and among consumers. Specific proposals for a modified
system of excise taxation will be included in the recommendations
for tax revisions that will be submitted to the Congress next
January.
"The reductions in excise taxes, which would take place next
April 1 under present law, should be rescinded pending the
development of a better system of excise taxation.

t~. X. "T

- 5"(5) I believe that a reduction in personal income taxes can
and should be made effective next January 1. This reduction will
amount to about 10 percent on the lower and middle incomes,
graduating down to between one and two percent on the highest
brackets. While this reduction is in accordance with existing law,
it would have been impossible to accomplish on the basis of the
previous Administration's budget without additional deficit
financing with its resultant inflationary pressures. A reduction
will be justified next January only because of reductions in
proposed expenditures which the present Administration has already
been able to make and because of additional economies vie expect to
achieve in the future."
In the same message, the President referred to the need to
revise the whole tax structure "to remove existing inequities....
simplify the needless complications which have developed over the
years in tax laws, and generally secure a better balance of tax
revenues.... At the same time, we must develop a system of taxation
which, to the greatest extent possible, will not discourage work,
savings and Investment, but will permit and encourage initiative
and the sound growth of our free economy."
As you have said on various occasions, Mr. Chairman, the
present system has developed in a patchwork manner over many years.
It needs a thorough overhauling. We are pleased to know that you
have directed your staff and the staff of the Joint Committee to
work on this revision.
We in the Treasury are also hard at work on the same subject.
We appreciate the opportunity for cooperation in various ways. We
already have set up ten joint committees with representatives of
your staffs and the Treasury.
With this statement on the general background, I turn to the
President's recommendation for the extension of the excess profits
tax, without amendment or modification, for six months through
December 31, 1953. It should be clear from the President's
statement that we disapprove in principle of so-called excess
profits taxation. I shall not elaborate on the disadvantages and
bad effects of this form of tax. They are familiar to all of us.
It will be a relief when the'tax is off the books. I want to
emphasize that the recommendation is for a six-months' extension.
We would object to any extension beyond that time.
In considering the excess profits tax, it is important to see
what corporations pay it. Complete data on returns filed in 1951*
for 1950 income,show that 50,200 corporations paid an excess profits
tax. This was less than 12 percent of the 424,000 corporations with
taxable income in that year. Preliminary figures for returns on
1951 income, filed in 1952, show that the percentage was even
smaller in that year.

_a15

- 6Furthermore, most of the tax was paid by large companies
The
1Q60 returns showed a total excess profits tax of $1,305,000,000.
M this total, $1,234,000,000 were from corporations with net
incomes of more than $250,000 each. This means that only _
tiSi 000 000 or 11 percent of the total tax came from companies with
incomes below $250,000. The incomplete figures for 1951 l t i c 0 ^
^how tnat this same relationship between large and small companies
conUuued in'that year. The full details on the 1950 returns are
being filed with the Committee today.
The significant point to me from these figures is that though
the tax is a very serious barrier to growth for rapidly expanding
small companies, it does not affect the vast majority of companies.
It falls most heavily on profitable large companies.
I want to be sure that my position on this point is clear. The
present distribution of the corporate tax burden is pad oecause ol
the tax barriers to growth and the tax penalties on efficiency.
But for the rest of this calendar year, most of the bad effects are
present anyway.
As the president has noted, the expiration of the tax on
June 30 would be misleading in many respects
Regardless of the
date of expiration, the tax is computed on a full-year aasis
Even
though it expires on July 1, its provisions are applicable to ahe
rest of the year. The expiration of the tax m trie miadle 01 the
year simply means that the rate is lower on the income lor the
entire year. Thus, if a company lost money through June and made
large profits in the last part of the year, it wouid still oe
subject through December to all of the peculiar, damaging effects
of excess profits taxation on business judgments, even though one
tax had supposedly expired some months previously.
Since the vast majority of companies are on a calendar-year
basis, the end of the calendar year is the logical time lor iche
tax to expire. I would feel entirely differently about extending
the tax even for one month into another year.
A while ago I mentioned the fact that we had had to reduce
the earlier estimates of tax receipts. For this y e ^ j with oniy
a month left, we know that receipts will be at least $1.5 ^ ^ ^
below the estimate made last January. For next year, ^ r e d u c t i o n
is $1.2 billion. Our figure for next year's receipts difiers by
only $100 million from that made independently by the s*,an ox
your Joint Committee.

216

- 7The reductions in estimates do not mean that tax collections
are falling off. It just means that the original estimates were
too high. Collections this year will be several billion dollars
r.ore than in any previous year in the history of the country.
Ilext year, even with the tax reductions proposed in the President's
program, receipts will be higher than this year.
The extension of the excess profits tax for six months, '
without modification or amendment, is a necessary first step towards
economic security. It will give us time to get control of the
budget. It will help in maintaining a sound dollar. It will make
it possible for tax reductions and revisions affecting everyone to
take place at the same time next year, it will lessen a gamble
with national economic security.
We are convinced that this is a sound program. The overwhelming editorial support from all sections of the country is
very gratifying. We are satisfied that the country as a "whole is
back of the President's program.
I urge, therefore, that the tax be extended without
modification for six months and that we then get rid of it once and
for all. In the meantime vie will devote ourselves to further
reducing current expenditures so that the reduction in individual
income taxes for all the people can justifiably be made a reality.
Then all of our efforts will be used in developing a better tax
structure under which the elimination of many of the inequities
and injustices for all tax payers, both corporate and individual,
can be made at the same time as the excess profits tax expires.
In that way jaistice and fair dealing can be done equally and
contemporaneously for all.
Thank you, Mr. Chairman and gentlemen, for this opportunity
to appear before you. I will gladly attempt to answer any question.

oOo

217

8LLKA5I H0RN1MQ MliSPAPIRS,

h~( —

/ </ f

The Secretary of the Treauury announced last evening tfeet the tenders for
H,§00#OO0,0QO, er t**rtabevte, mt 9!~dmy trmmtwy bills to tee aated June k and to
attture September 3, 1953, whieti were offered m Way 28, vers opened at the Federal
Reserve Basics on Jwie 1.
the details of this issue are as followsj

fetal applied for - $1,782,821,000
fetal accepted
- 1,500,701,000 (lt_@l^ee $1^,002,000 entered en a
non-eojnpetitiT# basis md accepted Is
fall at the averefe price ghgfsm belee)
Average price
- 99*3&9 Equivalej-t rate mt dlaoowit appro-.. t.hlK% per mm
ienge of eeeepted eenpetltive bids:
High * 99*k$$ B^uivalent rate of diecoimt afpre*. f.©3f$ per easm
L*wr
- f^jli®
•
• «
e
**

2am

(I percent #f the mml Mi tor at am low priee ma accepted)
federal Reserve
Bietrlet
Boston
%m lork
Philadelphia
Cleveland

Mmtmmd
Atlanta
CMeag©
St. Louis
Mlnnespolla
Kansas City
Dallas
San Francisco
fetal

fetal

m^m,|

111,210,000

i»«y?,<eMQQ
36,0&>fOOa
el^SfftOOD
9,?6l»€XKJ
25,990,000
211,061,000

tife8#f©e®
7,266,000

5k,S0®,©0O
t$,#@S,00o
.„ #^?3|000.
fl,78f,ifl,OO0

fetal
Ammm&tmd
$

lk,210,000

i9m9m9tm
&9oB9<m
997&hW®
%%a999,Q®®
161,061,000
11,066,000
7,164,000

§k9m9OQ0
25,605,000

*>*h*9
U9m9m9mo

•

•

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS, 218
Tuesday, June 2, 1953.

H-149

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 June k and to mature September 3, 1953, which were
offered on May 28, were opened at the Federal Reserve Banks on
June 1.
The details of this issue are as follows:
Total applied for - $1,782,821,000
Total accepted
- 1,500,701,000 (includes $183,002,000
entered on a non-competitive
basis, and accepted in full
at the average price shown
below)
Average price
- 99.389 Equivalent rate of discount approx.
2.4l6$ per annum
Range of accepted competitive bids:
High - 99.485 Equivalent rate of discount approx.
2.037$ per annum
- 99.346 Equivalent rate of discount approx.
Low
2.587$ per annum
(2 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 14,210,000 $ 14,210,000
New York
1,237,606,000
Philadelphia
36,055,000
Cleveland
41,377,000
Richmond
9,763,000
Atlanta
25,999,000
Chicago
211,061,000
St. Louis
21,086,000
Minneapolis
7'. 266,000
Kansas City
54,500,000
Dallas
25,605,000
San Francisco
98,293,000
TOTAL $1,782,821,000 $1,500,701,000
0O0

Accepted
1,005,48o,000
36,055,000
41,377,000
9,7o3,000
25,999,000
161,061,000
21,08o,000
7,266,000
54,500,000
25,605,000
9^,293,000

91 9
tx •*-

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220

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-y

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cporatione, taoog laiwovooor«to r^iwlunc f r a tteoo similee
are th* Otteoooofta devidofMnt of now typwfc of tint for printlag eimos*^-* -T_tfcte-_Uol Jptlooo to oUatLmto ngstsnal fooaii_g
#f atec£o to tte ouroomgr proooooi doviooc to oltelmtG tte
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,-&y?a;

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arid dutaamttepoUatero for printing: plotoo* tdateli vtoro
foriaort? poUated by teiid* M l of ttese lo*rovoMate ai^^t
ia tte dovci-jpaiai.t of p*iti$u_g && mmmm^

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*mim ioooot'dcwiopneiit ten laoroitof-d' k * "ptNetetioa of"
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aaao pooitlom in 'tte & I ^ M during

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«jrkon, plsta p^lat^B mm tte^ ?0 e&fwntlc*

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pmptmmml mmM te & w l # s ^ to otter i^uiiaom ia a,e
a-_s5 la « ^ w a^ooncios to ooootdtanco « L ^ a i m awric^
vosulotdoao ond pvoooduroo^

BH^EU

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

oo i
_a-~-*RELEASE MORNING NEWSPAPERS
TUESDAY, JUNE 2, 19$3

H-150

Secretary Humphrey announced today that the program of modernization
of equipment and processes in the Bureau of Engraving and printing will
make possible savings of $5,000,000 during the next fiscal year.
For several years the Bureau has been conducting engineering studies
and tests for modernization of its operations, Among improvements resulting from these studies are the successful development of new types of
ink for printing currency; mechanical devices to eliminate manual feeding
of sheets to the currency presses; devices to eliminate the manual removal
and stacking of the printed sheets of currency; and automatic polishers
for printing plates, which were formerly polished by hand* All of these
improvements aided in the development of printing the currency 18 notes
to the sheet instead of 12 0
This latest development has increased the production of notes from
each press by $0%9 a factor which will result in a recurring annual saving
of approximately -'|p5>000>000 and the elimination of more than 1300 positions
in the" Bureau during the next year., The positions include skilled and
unskilled workers, plate printers and the 70 apprentice plate printers.
The Secretary emphasized that wherever possible surplus personnel would be
assigned to other positions in the Bureau and in other agencies in accordance
with Civil Service regulations and procedures»
The continued modernization of the BureauTs equipment and processes
is in kveping with the law requiring the Bureau to print currency and
securities as safely, as cheaply, and as perfectly as could be done in
industry. It is also in keeping with the expressed desire of Congress
that the Bureau intensify its efforts to improve equipment and processes,
thereby effecting economies, and bring about better utilization of manpower*
Secretary Humphrey said that this program is in line with the
Administration's policy of bringing about economy in the Government service.
Bureau management has been instructed to actively pursue further means of
improving methods and equipment to the end that the Nation's currency and
securities will be manufactured as efficiently and as economically as
possible, without in any way jeopardizing the high quality printing standards
of the Bureau.

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 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. I4I8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

r~t r*. o

- 2 -

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price

from any one bidder will be accepted in full at the. average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on Jtms "Pi ??*?? ^n

cas

h or other immediately available

funds or in a like face amount of Treasury bills maturing

June 11, 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

JOA
:,. CM. *T

IQfKICKiyKTQ-

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, /W " / $ (
Thursday, June k, 1953

The Secretary of the Treasury, by this public notice, invites tenders
for $l5UOO?000_OOQ , or thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing Jiane 11. 1953 , in
the amount of $15 201,8791000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated June 11, 1953 , and will mature

— — * S E
September 10, 1953
terest.

, when the face amount will be payable without in-

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

$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/____XKi__ra_£ time, Mo_-day5 Jane 8, 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 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 DE ARTMENT
Information Service

WASHINGTON, D.C
IL,

RELEASE MORNING NEWSPAPERS,
Thursday, June k, 1953-

H-151

The Secretary of the Treasury, by this public notice, invites
tenders for $1,400,000,000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing June 11,
1953, in the amount of $1,201,879,000, to be issued on a discount
basis under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated June 11, 1953. and
will mature September 10, 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 Daylight Saving
time, Monday, June 8, 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 moie than
three decimals, e. g., 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and
price range of accepted bids. Those submitting tenders will be*
advised of the acceptance or rejection thereof.
The Secretary of the
Treasury expressly reserves the right to accept or reject any or all
tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive
tenders for $200,000 or less without stated price from any one bidder
will be accepted in full at the average price (in three decimals) of
accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal

- 2 Reserve Bank on June 11, 1953. in,cash or other Immediately available
funds or in a like face amount of Treasury bills maturing June 11,
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 supplementarythereto. 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 amoaint of discount at which Treasairy 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
amoaint of discount at which bills issaied 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 issaie 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

r-. ^ o

IMMBIDIilTE RELEASE
June 3, 1953

if A

The Bureau of Customs announced today that the absolute
quota of 795*000 bushels of Canadian wheat (other than wheat
unfit for human consumption) prescribed in the Presidents
Proclamation of May 28, 19lil, as modified, was filled at the
opening moment of the quota year on Way 29, 19$3a
The Bureau of Customs also announced that as of the close
of business on June 2 a total of 289,600 pounds of -wheat flour
has been authorized for entry under the quota of 3,815,000 pounds
of Canadian wheat flour, semolina, crushed or cracked wheat and
similar wheat products which opened on Hay 29^ 1953 •

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, June 3, 1953.

H-152

The Bureau of Customs announced today that the
absolute quota of 795.000 bushels of Canadian Wheat
(other than wheat unfit for human consumption)
prescribed in the Presidents Proclamation of
May 28, 1941, as modified, was filled at the opening
moment of the quota year on May 29, 1953.
The Bureau of Customs also announced that as
of the close of business on June 2 a total of 289,600
pounds of wheat flour has been authorized for entry
under the quota of 3,815,000 pounds of Canadian
Wheat flour, semolina, crushed or cracked wheat and
similar wheat products which opened on May 29, 1953-

oOo

228

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234

TREASURY DEPARTMENT
Washington

FOR RELEASE 2:00 P.M., EDT
Friday, June 5, 1953

H

„~ / f* 3

Address by Assistant Secretary of the Treasury
H. Chapman Rose at the 67th Commeneement Ixercisss
of the United States Coast Guard Academy, New
London, Connecticut, June 5, 1953, 2:00 p.m. EDT.

TREASURY DEPARTMENT
Washington
FOR RELEASE 2:00 P.M., EDT,
Friday, June 5, 1953.

H-153

Address by Assistant Secretary of the
Treasury H. Chapman Rose at the 67th
Commencement Exercises of the United
States Coast Guard Academy, New London,
Connecticut, June 5, 1953^ 2:00 p.m. EDT.
Admiral O'Neill, Admiral Hall, members of the class of 1953*
distinguished guests, ladies and gentlemen:
It is a great privilege for me to have been asked to come
here to speak to you of the class of 1953^ on this day when you
receive your commissions in the United States Coast Guard. You
know -- probably much better than I -- what a proud service it
is that you are entering; but it is fitting that those of us who
are gathered here as guests should remind ourselves that its
tradition stretches back to the very beginning of our life as
a nation, to 1789 and 1790 when Alexander Hamilton recommended the
founding of the Light House Service and the Revenue Marine.
We who have lived near the Great Lakes know at first hand
a part, but only a part, of what the Coast Guard does. It has been
a thrilling experience for me, since I went to Washington in
January, to see the full scope of its activities: light houses
and life boat stations along the coast, ships on station far out
in both the oceans to serve and protect air and sea traffic, the
Loran navigation network that covers a large part of this
hemisphere, and the search and rescue units scattered from
Newfoundland and Bermuda to the Philippines. Since January,
I have learned much, too, that I should have known before of what
the Coast Guard did during the war, from anti-submarine duty to
the landing of troops on invasion beachheads. All of this has
helped me to understand another thing that I have also begun to
sense -- and nowhere more keenly than here today — the existence
in the Coast Guard, perhaps because it is no larger than it is, of
a special morale all its own. It has something of the quality of
the morale and spirit of the small English army just before its
victory on the battlefield of Agincourt, which Shakespeare
described in that unforgettable line spoken by Henry V: "We few,
we happy few, we band of brothers."

- 2-

CXKm'KJ

The Coast Guard has from the first been in the Treasury
Department in time of peace. It has always been part of the Navy
in time of war. At all times, in the Treasury or the Navy, it
has been a military service. It is in your character of
commissioned officers in the armed forces of the United States
that I want particularly to speak to you of the class of 1953*
because what has happened in the world has so greatly enlarged
the responsibility that falls upon you who have chosen a professional military career.
Of necessity^ many more of your generation are making this
choice than was true of my generation. .When I stood on a
graduation platform at Princeton in June just twenty-five years
ago, perhaps a third of us received our reserve commissions In
the Army along with our diplomas, but I remember only one of that
group of perhaps 150 men who planned to enter the regular Army.
That proportion reflected the national attitude at that time
toward a professional military career. After the enormous effort
of the First World War, our military establishment had shrunk to
figures that in this day are hard to believe. The whole Army -then and down into the middle of the 1930's -- numbered only about
250,000 men; the Air Corps, as it then was called, had less than
25,000; the Navy only 95,000 and the Coast Guard 10,000. A military
career, in the atmosphere of that day, was not widely thought of
as one of the major professions -- except in time of war, when we
always quite saiddenly acquired a very different feeling.
The United States has not been alone in this fluctuating
attitude toward the military. Kipling described the same thing
in Victorian England in his poem about Tommy Atkins, the British
version of the G.I., who was so badly pushed around in time of
peace and then treated with the greatest deference in time of
war. You remember the lines: "Oh it's Tommy this and Tommy
that, and 'Tommy, stand behind,' "But it's 'Please to step up
front, sir.' when there's trouble in the wind."
The day of those swings of opinion about the military is over.
Our world-wide contest with another way of life forces upon us
a degree of continuous military readiness that we never before
contemplated in a time of relative peace. As we all know, the
cost of past wars and present military preparation is taking more
than two-thirds of our national budget, and nearly one-sixth of
all the goods and services that this country produces. We are
sure that, in time and with greater efficiency, more defense can
be secured more economically, and that we can do this in a way
that will not threaten the economic stability of our free way of
life. But, even when we succeed in this, the burden will remain
very heavy, in relation to anything we have known before except
in time of all out war, so long as world conditions remain as
they are today.

9Q7
r..

- 3Now the fact thai; needs constant reemphasis is this: In our
free society, we have as a people to vote every two years and
every four years to reimpose that burden on ourselves. Our
adversaries, on the other hand, with the techniques of the police
state at their command, merely take, from the efforts of their
people, as high a proportion for military purposes as they think
they need from time to time. Our people must at regular
intervals freely elect to continue to carry the load; their
people, short of rebellion, have no means of laying it down.
I personally have no fear of the outcome of this struggle that
we are engaged in. I have faith that the greater productivity, the
greater fertility in ideas, the greater resourcefulness and faith
of men and women, which are the fruits of a free society, will in
the short run and the long run outweigh and outlast those who use
a whip to drive their people Into the army or the war plant. But
I have no Illusions about how hard and bitter the struggle will be.
And I have no illusions about the terribly exacting quality of
the demand we must make upon ourselves as a nation, to remain
willing, year after year for a period the end of which no man can
surely foresee, voluntariljr to shoulder this burden. We must
freely elect to postpone pleasant things that we might have today,
because of the stern necessities of tomorrow or next year or the
next decade. The willingness to do this is the supreme test of
the maturity, the steadiness, and the faith of an individual or
a nation. It is a test that many individuals and some nations
have failed to meet. It is a test that America must not and will
not fail to meet.
It is becaaise the philosophy, the attitude, and the approach
of the professional military men will have so important a bearing
on how we meet that test that I emphasize the added responsibility
that you will, carry who are entering that profession as your
career.
For, in the long run, we as a nation will be willing to
reimpose this burden on ourselves year after year, only if we are
continaiously convinced that the men and the dollars we invest in
the effort are being well and wisely used. In a period like this,
which may last a long while, we lack the stimulation of the
emotional upsurge that we have seen in time of all-out war, and
we lack, toe, the tolerance of mistakes which exists at such
a time. Our sense of the danger in which we may stand cannot
over long periods be relied on to prevail over the day-to-day
criticism of any Important degree of waste or folly. Our programs
must be adequate, they must be rational, and they must be well
and economically managed.

K^

i

- 4In large measure, this job of administering our defense is
one for the professionals. A national tradition that is wise
and sound subjects the military to civilian control. The civilian
authority gives general guidance and direction to military
affairs; bait it cannot administer them in detail. It decides
ultimate questions of policy, but it must do so in the light of
the plans and recommendations of professional military men.
Basically, the day-to-day job of tightly and economically
administering our national military effort --of making sure that
for every ounce of that effort vie get an ounce of performance or
of muscle, and not half an ounce of fat -- that is a job that
must be done primarily within the armed services themselves.
It is a hard task. Short of an all-out war, it is the
hardest task that ever faced this country's military men. For
the rules for success cannot be read in any book.
But hard though this task may be, I have every confidence
that it will be successfully accomplished. The quality and the
numbers of the men who are entering the military profession as
their career are higher than ever in our history. You who have
chosen this career have not done so because it was easy, but
because you sought thus to serve your country. As one of its
citizens, I honor you for your choice, I thank you for having made
it, and I wish every one of you God speed.
0O0

0?Q
£

V.-' >_»

,(W^-*>^/,/?/-> - /W<JL M r i^Cb
UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
'in millions of dollars at $3$ per ounce)

"3:

Negative figures represent net sales by the
United States; positive figures, net purchases-

Calendar
19 ^2

Country
Afghanistan
Argentina _
Belgium t# <r a c *» • • • ©
Belgian Congo _.
Bolivia e...«...

-J2.5
-20.0

0 9*

- 3 <• • f

-2,0

Canada «O.QO<...

Chile .........
Colombia
Denmark .......
Germany »*.,...
Greece o . • e « e
Lebanon , • • .
Mexico *..
Netherlands

3 . »

Portugal ..»,.»«.
Salvador ••••»••_• 'j
Switzerland *.«4 <T««.
Switzerland-Bank
for international
Settlements
Syria «,... •,.. 0.
South Africa
xuricey *% «<3*»»*<>».i<«»*
United Kingdom .••«,.„
Uruguay
All Other «.<...«...:>•»

-3*8

• 3.J

/ 3* V
* o. o

7.2
1.8
-22,8
-7.0
-10.0

ir* o

-12,3
-3,1
87.7
-100.0

_£ o
/r.o

-5.0

/

•

o

-.«-. /

2.o

o
,o

22.5

-*-*,,.'

-2.5
n.5
Jvo * o
_ / o • o

21

hho.o
1U>9

- .15

TOTAL

Somo figureo will nat add to totals bcaaujc of rounding.

$393*6

J

240

IMMEDIATE RELEASE,

,f

Monday, June 8, 1953

H- IA

The Treasury Department today made public
a report of monetary gold transactions with foreign
governments and central banks for the first quarter
w^»3«_iZ<at*^'

of 1953. There were no purchases of gola by the

A
United States in this period; total sales amounted
to $599 million.
A table showing net transactions, by country,
for the first quarter of 1953 and calendar 1952 is
attached.

//

^

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, June 8, 1953-

H-152*

The Treasury Department today made public
a report of monetary gold transactions with
foreign governments and central banks for the
first quarter of 1953-

There were no purchases

of monetary gold by the United States in this
period] total sales amounted to $599 million.
A table showing net transactions, by
country, for the first quarter of 1953 and
calendar 1952 is attached.

242
- 2 UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
January 1, 1953 - March 31, 1953
(in millions of dollars at $35 per ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases.
Country
Afghanistan.
Argentina
Belgium.
Belgian Congo
Bolivia
Canada
Chile
Colombia
Denmark
Germany
Greece
Lebanon
Mexico
Netherlands
Norway
Portugal
Salvador
Sweden
Switzerland
Switzerland-Bank
for International
Settlements
Syria
South Africa
Turkey
United Kingdom
Uruguay
All Other TOTAL
••• •••• • m

-iipn.w,,— ..mam —».—•».--. PI i ...m. w m — , 1 +*•„< -1

First Quarter
1953*
-$5^.9
-36.5

-3,5
•13.2
•30.0
-1.0
•28.1
•25.0
-5.0
-15.0
-10.0
-20.0

Calendar
1952
-$2.5
-20.0
-3.8
-2.0
7.2
1.8
-22.8
-7.0
-10.0
-12.3
-3.1
87.7
-100.0
-5.0
-4.0
22.5

23.5
-2.5
-3.3
-320.0
-10.0
-.1
-$599.1

11.5
2.1
440.0
14.9
.9
$393.6

* There were no purchases of monetary gold by the United States in
the first quarter of 1953.
0O0

243

~/y

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tm^it
m,hjmmmmmm-

mi urn- %y*mm mmmmmA -mm* mmmMm *te* l-^ tm_^rs for
a.m,ax),ooo»cxx35 oy u^Qab^ta: it MHtagr «M«wqr MHa to be 4ated $mm
10, lf§Jt wivieh were cCfs^ im Jam |* were apemti at the

mm 4a
<m details nf «** i@mnt a»» a® 1 allocs *

titol ^npauMtar* Ifffl^fff*
t

1^31,21*6,1-00

oaa

%$%$ ^f 4|.ffiffirB^f%% §.HOTiftt ^nJ^K^gi*

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21,8S*1*C>D0
a6,0flt» 0»

£&• little*

(HIT

jfflS

.JffriMB

TREASURY DEPARTMENT
Information Service

WASHINGTON,D.C.

___

244
RELEASE MORNING NEWSPAPERS,
Tuesday, June 9, 1953-

h-loo

The Secretary of the Treasury announced last evening that the
tenders for $1,400,000,000, or thereabouts, of 91-day Treasury bills
to be dated June 11 and to'mature September 10, 1953. which were
offered on June 4, were opened at the Federal Reserve Banks on June o\
The details of this issue are as follows:
Total applied for - $2,290,690,000
Total accepted
- 1,400,368,000 (includes $231,246,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.413 Equivalent rate of discount approx.
2.324$ per annum
Range of accepted competitive bids:
Hirh - 99.440 Equivalent rate of discount approx.
2.215$ per annum
'
99.407
Equivalent
rate of discount approx.
Low
2.346$ per annaim
(82 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 30,020,000 $ 24,592,000
New York
1,651,615,000
Philadelphia
37,100,000
Cleveland
51,863,000
Richmond
23,991,000
Atlanta
29,558,000
Chicago
210,342,000
St. Louis
50,854,000
Minneapolis
12,258,000
Kansas City
49,294,000
Dallas
23,973,000
San Francisco
119,822,000
TOTAL $2,290,690,000 $1,400,368,000
0O0

Accepted
928,948,000
17,540,000
42,763,000
21,891,000
25,424,000
136,482,000
26,054,000
8,528,000
41,144,000
23,073,000
103,329,000

245

?*fy
& r /i

^^SmmWZZm.

! eeretary Humphrey, Mexican Ambassador tfaimsl Telle and fenor
Kml Hartiiiea-Qstos am the representative of the Banco de Mexico
today signed a new Utahillsatlon itgf#ewtnt between the United States
and Mexleo. The Agreement vhich heeeiiss effective July 1, 19h3, lafrom $$D to $75 million the amount available la the United
States Stabilisation Fund for the perehaae of Mexican pesos to stabilise the dollar-peso rata ef exchange.
the United states Stabilisation fund undertakes until Deeeaber 31,
19$$, to purchase trader the terms ef the Agreement signed today Mexican
pesos up to the equivalent ef $75 million for the purpose of stahUlslug the dollar-peso rate of exchange If the occasion for such use should
arise. The Agreement continues arrangements that have bam In effect
since 19kl and will, as in the past, be operated In close coordination
with the activities of the International Monetary Fund*

The increase

In the amount from $5© million to $75 million, it was explained, Is in
keeping with the growth of Mexican production and the increase in trade
and financial transactions between Ma&leo end the United States*
Secretary Hiimphrey noted that Mexico has achieved a substantial
Inorease in ite national output In recent years, while maintaining in
full Its traditional free-dorr, of exchange transactions. Be pointed oat
that the present strength ml stability of the peso a^nd the satisfactory
condition of Mexico's gold and foreign exchange reserves stem in large
part from the internal financial stability which Mexioo has attained
during the last 4m years.

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

246
RELEASE 4 P.M. EDT
Tuesday, June 9, 1953.

H-15o

Secretary Humphrey, Mexican Ambassador Manuel Tello and
Senor Raul Martinez-Ostos as the representative of the Banco de
Mexico today signed a new Stabilization Agreement between the
United States and Mexico. The Agreement, which becomes effective
July 1, 1953, provides for an increase from $50 to $75 million in
the amount available in the United States Stabilization Fund for
the purchase of Mexican pesos to stabilize the dollar-peso rate of
exchange.
The United States Stabilization Fund undertakes until
December 31, 1955, to purchase under the terms of the Agreement
signed today Mexican pesos up to the equivalent of $75 million
for the purpose of stabilizing the dollar-peso rate of exchange
if the occasion for such use should arise. The Agreement
continues arrangements that have been in effect since 1941 and
will, as in the past, be operated in close coordination with the
activities of the International Monetary Fund. The increase in
the amount from $50 million to $75 million, it was explained, is
in keeping with the growth of Mexican production and the increase
in trade and financial transactions between Mexico and the
United States.
Secretary Humphrey noted that Mexico has achieved a substantial increase in its national output in recent years, while
maintaining in full its traditional freedom of exchange
transactions. He pointed out that the present strength and
stability of the peso and the satisfactory condition of Mexico's
gold and foreign exchange reserves stem in large part from the
internal financial stability which Mexico has attained during
the last few years.

oOo

0A7

TRE

STATUTORY DEBT LIMITATION

J?J??!,DLPAR!MENT
riseai

AS O F

May 31, 1953

oe rvICG

Washington, J n n e " ^

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, 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
Interest-bearing:
u mm. ~- ~ -**
Treasury bills
$19,912,569,000
Certificates of indebtedness
,
15,958,626,000
Treasury notes
35.203.328.100J 71,074,523,100
Bonds Treasury
81,918,358,400
Savings (current redemp. value)
57,920,423,778
Depositary
393,838,000
Armed Forces Leave
—
Investment series
13,303,847,000 153,536,467,178
Special Funds - . _,__ _OQ
Certificates of indebtedness
2k,737,188,000
Treasury notes
14,972,784,400
39,709,972,400
Total interest-bearing
264,320,962,678
Matured, interest-ceased
242,197,500
Bearing no interest: . ft
War savings stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total

JM%£•?*»Oxj}
1,453,522
1,302,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
Demand obligations: C.C.C.
Matured, interest-ceased

1,353,688,335
265,916,8^,513

51,104,336
-_

51,104,336
1,206,450
52,310,786

Grand total outstanding
Balance face amount of obligations issuable under above authority

265,969*159,299
9,O3O,8^t70l

Reconcilement with Statement of the Public Debt May 31» 1953
(Date)
(Daily statement of the United states Treasury, J"Une 1 , 1953 )
x

(Date)

Outstanding Total gross publ ic 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

jr\~*~ I $~ 1
TO • OAS . DC

266,519,913»3 2 8
52,^10,786
266,572,224,114
603r064,815
265,969,159,299

STATUTORY DEBT LIMITATION
AS OF M Y 3I5 1953

June 9, 1953

Section 21 of Second Liberty Bond Act, ae amended, provides that the face amount
of obligations issued under authority of t£iat 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 &275,0G0,000,000 (Act of June 26, 1946; U c 3.Cc, 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
0£.Q
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 $275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills •.•••••••»»•.<>*.$ 19,912,569,000
Certificates of indebtedness •<, 15*958,626,000
Treasury notes .,
.... 353203,328^100 $ 71,074,523,100
Bonds Treasury ..,•••.. ••
81,918,358,400
Savings (current redemp.value) 57,920,1*23,778
Depositary
••.»«...••
393,838,000
Armed Forces Leave • ...•.....
Investment series ,•••*
13,303,8U73000 153,536,1*67,178
Special Funds Certificates of indebtedness* 2U,737,188,000
Treasury notes
„.. ills 972, 7811,1+00
39,709,972;UOO
Total interest-bearing e
"_^............ 25E73SO,9o2,S78'
Matured, interest-ceased . ..8..e
2l£, 197,500
a.
Bearing'no interest:
War savings stamps
50,23ii,8l3
Excess profits tax refund bonds «
l9k$39$22
Special notes of the United States:
Internat'l Monetary Fund series
1,302,000,000
1,353,688,335
lOuai e.o......o..o.....s..»..ea..«een«ooo.oc.o...o

265,916,040 ,!?I3

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F„K.A
51,104,336
Demand obligations: C.C.C. „....•
Matured, interest-ceased
„

5l,10li,336
1,206,k$0
?2,310,786"
Grand total outstanding
,
265,969,159,299
Balance face amount of obligations issuable under above authority ,..
9,030,8I|0,701
Reconcilement with Statement of the Public Debt - May 31, 195!T"
(Daily Statement of the United States Treasury, June 1, 1953)
Outstanding Total gross public debt
,
266,519,913,328
Guaranteed obligations not owned by the Treasury
52,310,766
Total gross public debt and guaranteed obligations
_
266,572,22H,lTU
deduct - other outstanding public debt obligations not subject to
debt limitation
,
603,064,815
0...
C8
265,969,159,299
H-157

nAQ
mX ^

KJ

SUGGESTED TREASURY RELEASE

ALL PAPERS
IMMEDIATE RELEASE
Washington, —date—: Secretary of the Treasury Humphrey today
announced that U. S. Savings Bonds series E and H sales during the month

of May were $3^0 million* This was an increase of $90 million or 36 percen
over the $250 million series E sold in May a year ago.
Retention of the matured E bonds continued to stay at 75 percent.
The people who held their matured E bonds took advantage of the maturity
option to earn 3 percent for the period held beyond maturity up to a ten
year maxiiaum. Cash redemptions of matured bonds continued to rise as the

dollar volume coming due increases. There were |>121 million cash redempt

of matured E bonds during May 1953, as against $69 million in the same mon
a year ago.
Sales of E and H bonds in the first five months of this year totaled
$1.9 billion. That was an increase of 30 percent over the Series E sales
during the corresponding months last year.
Redemptions of matured and unmatured series E and H b onds totaled

$1.7 billion during the first five months of 1953* That total was k percen
lower than the $1.8 billion amount for Series E in the first five months
of 1952.
The Treasury points out that the value of U. S. Savings Bonds does not

fluctuate. The holder of series E and H bonds is guaranteed full return of

his original .investment, plus earned interest, regardless of any conditio
which may otherwise affect the m&cket.

250

H-1 ^X
Sales of Series E and H Savings Bonds in the first five
months of 1953 totaled $1,900,000,000^the Treasury announced ^-ziu
^-^~~~~~

y^i^yniM flu,

today. Redemptions of matured and unmatured bondsA totaled
y /
y~
$1,700,000,000.
Sales were up SO^percent
and redemptions down
,v^

4 percent from the totals for the corresponding months of 1952.
Sales of Series E and H bonds in May were $340,000,0007
up 36^percentAiP«ift May, 1952, and redemptions were $344,000,000,
up 1 percent from May, 1952 T
Owners of approximately three-fourths of the Series E
bonds so far matured are continuing to hold their matured bonds
under the optional extension plan.
e Ttfea&ury point^out tha^the ^alue^of U. S. / Savii-ss \BoncU
does idbk f _|/u'ct ia|te. - The holder of series\E/and H bonds is/
mtoiskori^ina_Winve_j£_i_ent,
! X
guaranteed fultL Return of
plus ear£__.

ill

'

interest,/ regandless of any^conditions which may otherwise af

LA / W

'

the ma.ryle\yy

0

^yy

/

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, June 9, 1953.

H-158

Sales of Series E and H Savings Bonds in the
first five months of 1953 totaled $1,900,000,000, the
Treasury announced today.

Redemptions of matured and

unmatured bonds in the same period totaled
$1,700,000,000.

Sales were up 30 percent and

redemptions down k percent from the totals for the
corresponding months of 1952.
Sales of Series E and H bonds In May were
$340,000,000, up 36 percent over E bond sales in May,
1952, and redemptions were $344,000,000, up 1 percent
from May, 1952.
Owners of approximately three-fourths of the
Series E bonds so far matured are continuing to hold
their matured bonds under the optional extension plan.

0O0

252

-3-Sgffi.
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority. For
purposes of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be interest.
Under Sections 42 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 1941, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies)

issued hereunder need include in his income tax return only the difference
between the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. 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.

KM.

V-' V-/

- 2 tm\mk
dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for #200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on June 18, 1953 , In cash or other immediately available

~w$x——
funds or in a like face amount of Treasury bills maturing
June ifi. 19*^1
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

iu. v/ T 1

TREASURY DEPARTMENT
Washington

/

-—*f

5

\- •— I
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, June 11, 1953
.

/
'

'

\
'

The Secretary of the Treasury, by this public notice, invites tenders
for $1,^00,000,000 , or thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing June 183 1953 , in
the amount of $ 1,200,500*000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated June 18, 1953 __, and will mature
September 17 * 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, f5,000, $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/S-fcxad-Kj-ul time, Monday, June l53 1953 •

£££
Tenders will not be received at the Treasury Department, Washington. Bach
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99-925- Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branche
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, June 11, 1953-

WASHINGTON, D.C.

H-159

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 June 18, 19533
in the amount of $1,200,500,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated June 18, 1953* and will mature
September 17, 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 Daylight Saving
time, Monday, June 15, 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 may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
(in threetenders
decimals)
accepted
competitive
bids.
Settlement
accepted
completed
at the Federal
in of
accordance
Reserve
with
Bank
the
onbids
June
must
18, be
1953.
made
in'cash
or for
or'

- 2 other immediately available funds or in a like face amount of Treasury
bills maturing June 18, 1953. Cash and exchange tenders will
receive eq_ual treatment. Cash adjustments will be made for
differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills shall not have any special treatment, as such,
under the Internal Revenue Code, or laws amendatory or supplementary
thereto. The bills shall be subject to estate, inheritance, gift or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest. Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall
not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from 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 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 oroOo
Branch.

256

M"- fee
face amoT --t of
Secretary Humphrey today announced his acceptance of the
resignation of Charles W. Davis as Chief Counsel offethe Bureau
of Internal Revenue, and designated Kenneth W. Gen-mill, an
Assistant to the Secretary, as Acting Chief Counsel of the y
B.

ah'-1]

t haw©

Bureau until selection of a mmm Chief Counsel is made, r
\X^
Secretary Humphrey said that Mr, Gemini 11 will served as
or 'UD. : "tary
ipt
Acting
Counselthe
InI*egal
addition
to his
otherofduties,;which
include Chief
heading-up
Advisory
Staff
the General a: or
Counsel*® Office, as well as being legal advisor on tax natters
,j

^r

^w^

to tlie 0nder Secretary of the Treasury, v~svry o'ils ai-e
Prior to his designation in Hay 1952 as Chief Counsel of lue
-hthe Revenue Bureau, Mr. Davis was for three years Clerk of the
Committee on fays anil Means of the House of Representatives,
a?a »

-y:

„•*.

m

^ ^ also served as an Assistant General Counsel of the Treasuryw
A resident of Vandalia, Illinois
degre*^J_jrjo®^h
..*
•p

•-

/

7

~~~^~-^S^^mmm^mm-M-~^^^
j«^*ya^*"^

practice was 9^0m%mA.
4a%mm.l.,QZ Jtti-_U£ge«siK
G e w i l l cam® to the Treasury in April 1953, He is a
an
graduate of Princeton University and the University of Dtamed
Pennsylvania law School. At the time of his appointment as
Assistant to the Secretary, Mr. Gemmill was a / t e r o & ^ ^ ^
tlva of farnos, Doctort, Price r-iiyerB and Rhoacfs of Philadelphia,
O0O

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

9^1
tm. KJ I

IMMEDIATE RELEASE,
Wednesday, June 10, 1953

H-160

Secretary Humphrey today announced his acceptance of
the resignation of Charles W. Davis as Chief Counsel of
the Bureau of Internal Revenue, and designated Kenneth W.
Gemmill, an Assistant to the Secretary, as Acting Chief
Counsel of the Bureau until selection of a new Chief
Counsel is made.
Secretary Humphrey said that Mr. Gemmill will serve
as Acting Chief Counsel in addition to his other duties,
which include heading up the Legal Advisory Staff of the
General CounselTs Office, as well as being legal advisor
on tax matters to the Under Secretary of the Treasury.
Mr. Gemmill came to the Treasury in April 1953.
He is a graduate of Princeton University and the
University of Pennsylvania Law School. At the time of
his appointment as Assistant to the Secretary,
Mr. Gemmill was a practicing lawyer in Philadelphia.
Prior to his designation in May 1952 as Chief
Counsel of the Revenue Bureau, Mr. Davis was for three
years Clerk of the Committee on Ways and Means of the
House of Representatives. A resident of Vandalia, Illinois,
he also served as an Assistant General Counsel of the
Treasury.

oOo

(-i -ILf

FOR IMMEDIATE RELEASE

Secret Service agents arrested 550 check forgers during April and May,
Chief U. E. Baughman said today, fte^ warned retail merchants to be doubly alert' '
in asking for identification before cashing Government checks for strangers.
New York agents led the country with &3 arrests for the two-month period.
Second was Chicago with 37, followed by Detroit with 32, Cincinnati 24,
Philadelphia 23, and St. Louis and Atlanta tied with 20 each. Arrests were

t^XUBmf: "mm

*4v
made in all but five of the 57 Secret Service field districts

In Washington, D. C., where thousands of Government employees
are paid by check, 19 forgers were jailed.
Most of the forged Government cheeks were cashed in retail stores by merchants
who failed to insist upon proper identification of the payees, Baughman said.
In Illinois a 20-year-oldasiewB. stole and forged checks worth $2,275, including
several payable to women whose names he endorsed. He said he negotiated the
_£*«J— unt^m

fa

tK h*ml<mj

checks at stores and banks teatn^HSHif) not asked,for any identification. In

l/£_vu~ ** ^
a few stores he was asked to identify himself, -aa_-jwawsa__ce-teaB*-_» he merely
A
retrieved the check and took it to other stores until he was able to cash it
without proving his identity.

s

±L^ /fcZ^iy^

Chief Baughman pointed out that many merchants iffrji, ntiill _Mii-einrt*—'
A

A
(ilfufljfrii 11 in HI 111 '.'pi 1 111 that a Government cbeekfis as good as gold.

"It is,11

Baughman said, "provided it is in the hands of the person who is entitled
to it. A Government check with a forged endorsement is as worthless as any
forged commercial or personal check, and the storekeeper who cashes it is the
loser.11
ervice
received
5,03%rforged checks for invpdligation during
The
Se
Chief
Baughman
said, representlhgsan increase of 1,020 above
the
month
of
in April.
the
number /^—
re
/ • ## # /

/

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
9TQ

IMMEDIATE RELEASE,
Wednesday, June 10, 1953.

_
H

"

±01

Secret Service agents arrested 550 check forgers during April
and May Chief U. E. Baughman said today. Because of intensified
forgery activities which the number of arrests reflected, he
warned retail merchants to be doubly alert in asking for identification before cashing Government checks for strangers.
New York agents led the country with 83 arrests for the twomonth period. Second was Chicago with 37, followed by Detroit
with 32, Cincinnati 2k, Philadelphia 23, and St. Louis and Atlanta
tied with 20 each. Arrests were made in all but five of the 57
Secret Service field districts. In Washington, D. C , where
thousands of Government employees are paid by check, 19 forgers
were jailed.
Most of the forged Government checks were cashed in retail
stores by merchants who failed to insist upon proper identification
of the payees, Baughman said. In Illinois a 20-year-old offender
stole and forged checks worth $2,275, including several payable to
women whose names he endorsed. He said he negotiated the check's
at stores and banks and was not asked as a rule, for any identification. In a few stores where he was asked to identify himself,
he merely retrieved the check and took it to other stores until he
was able to cash it without proving his identity.
Chief Baughman pointed out that many merchants proceed^on the
theory that a Government check is as good as gold. "It is,
Baughman said, "provided it is in the hands of the person who is
entitled to it. A Government check with a forged endorsement is
as worthless as any forged commercial or personal check, and the
storekeeper who cashes it is the loser."

0O0

260

-2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having-a staple-of less than 1-3/16' inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than-33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following-countriess United Kingdom, France, Netherlands-,
Switzerland, Belgium, Germany, and Italy%

Country of Origin
United Kingdom
Canada . . . .
France . . . .
British India ,
Netherlands . .
Switzerland • .
Belgium . . . .
Japan . . . . <,
Vllin3 0 0 . 9 9
Egypt o « . . .
wUDe. O e 9 9 9

Germany . . . .
Italy e . o o

Established
TOTAL QUOTA

Total Imports
s Established
Sept. 20, 1952, to % 33-1/3% of
June 10, 1953
s Total Quota

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

77,856
239,495
13,032
48,162
15,715

5,482,509
l/ Included in total imports, column 2
Prepared in the Bureau of Customs.

Imports
3^
Sept. 20, 1952,
to June 10. 1953

1,441,152

77,249

75,807

13,032

«•*

«•*

12,853

22,747
14,796
12,853

12,853

24,618
6.430

25,443
7,088

24,618
6,430

438,161

1,599,886

149,897

mm

15,715

261

"T.

u^U.

H

IMMEDIATE RELEASE
June 1Q. 1953
.A.a-1^)

/ (j ^*C_

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. 19 52. to June 10, 1953, inclusive

Country of Origin
Egypt and the AngloEgyptian Sudan . o
JT eru

o o o o . o . o

British India . , . .
wuiritt

e . o s o . a .

Mexico o . . . . o .
CraZll . s e . o . a

Union of Soviet
Socialist Republics
Argentina . . , „ . .
riaiXil

Ecuador

. . . . . . . .

.......

Established Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Imports

586
8,883,259
124,891
1,382

Country of Origin

Established Quota

Honduras ..... e
Paraguay „
Colombia . . . . . .

.

iraq . . o . . . . .

.

752

British East Africa . .
Netherlands E. Indies.
Barbados . , . 0 0 , .
l/0ther British W. Indies
Nigeria
2/0ther British I. Africa
,2/Other French Africa . .
Algeria and Tunisia .

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.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton0 harsh or rough, of less than 3/4"
Imports Sept. 20. 1952, to May 30* 1953

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1.. 195%, to June 10. 1953

Established Quota (Global) Imports

Established Quota (Global)
45,656,420

70,000,000

16,871,339

Imports
28,654,615

TREASURY DEPARTMENT
Ttfashington
IMMEDIATE RELEASE
Thursday, June 11, 1953

H-162

Preliminary data on imports for consumption of cotton and cotton waste chargeable 'to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/U"
Imports Sept*.20, 1952, to June 10, 1933, inclusive
'
Established Quota

Country of Origin
Egypt and the AngloEgyptian Sudan • • •
Peru • • • • • • • • •
British India . • • • •
China • • • « « • • • •
Mexico • » • • * • » •
Brazil • • • • • » • > •
Union of Soviet
Socialist"Republics •
Argentina X. • • • • • •
Haiti . • • . :. • . • •
Ecuador, • • • • « • * #

783,816
2U7,#2
2,0Q3,U83
1,370,791
8,883,259
618,723
kl$912k
5,203
237
9,333

Imports.

586
8,883,259
12lt,891
1,382

Country of Origin

Established Quota

Honduras • «. •,<».• •. •752
871
Paraguay • ... ., •., • •. •,.
12U
Colombia * » • • ». • •,
195
Iraq . • • » . ... ,a .• ,•
2,2U0
British East,Africa • ,
71,388
Netherlands E*.Indies.
Barbados • » • * . • • • .
l/0ther British ¥.. Indies 21,321
5,377
Nigeria • • * * • .. • •
16,00U
2/0ther British W... Africa
689
3/0ther French Africa^ . . ' '
"" Algeria and Tunisia m •"

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
!>/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar* • ;- Cotton^ harsh or rough, of less than 3/U'1
Imports Sept, 20, l y ^ , to May ju, 1953

Cotton 1-1/8" or more, but less than 1-11/l6"
'Imports Feb. 1, 1953, to June 10, 1953

Established Quota (Global) Imports

Established Quota (Global)

^ ^ w m a m m m m _ ^ - • » — • — a m m m m _ _ M ^ m a m .

70,000,000 16,871,339

Imports

m\ m «•->

U5,656,U20

28,65U,615

•- 2 COTTON WASTES
(In pounds)

rS^mS^mmm'^mTMi^
Switzerland, Belgium, Germany, ..and Italy.

Country of!Origin

Established
TOTAL "QUOTA

Imports
..1 /
1
T o t a l Imports"''-:-• -Estapiisned 1
: Sept. 20, 1952, 'to : 33-1/3* of : Sept. 20, 1952;
•
^June 10, 1953 : Total Quota : to June 10, 1953

U-,323,U57
United Kingdom * V V •' •
239,690
Canada • • • • * * • • •
22?,U20
France • • ^ • • • •"•"•"
;
69,627
British India « • • ' • o V
68,2UO
Netherlands • • •*• • •" '
Switzerland..*.* • • • < > " •••-'•U4i38'8
38,559
Belgium • « • • « • • '"•*
Japan * . • • • •-..• .-* •
3Ul,£5
China . . . • • • o « *
17,322
Egypt e . • • • • • • *
8,135
Cuba • • • • • * • • » •
6,5UU
Germany . • • • • • • •
76,329
Italy • • • • • • • • •
21,263
5,U8Z,509

1/

Included in'total^ ffiports,'column 2*

Prepared in the Bureau of Customs.

77,856
239,U95
13,032
'1*8,162
15,715
12,853

l,iila,l52

, . ' 77.,2U9

75,807

- _ '. 13,032

22,7U7
1U,796
12,853

* m ] i|,71§

2U,618
6,U30

25,UU3
7,088

U38,l6l

1,599,886

12*853

2U,618
6,t30.
1U9,897

."* <""l **%

atJ

s*

^^i»3*tt#MM»4ltfcw*,

yX^^£^%J^

s?2b&F%&af*'i'

</"-' ty

,yi
M^fU'^rt
„•/•

y-^

••/"

/

i4~/

IMMEDIATE RELEASE
! J ^ n ® ^ , 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 19U6, from January 1, 1953, to __ay 30, 1953, inclusive, as followst

Products of the
Philippines

ButtOnS

a a a mi

Established Quota
Quantity
850,000

: Unit of
s Quantity

Gross

Imports as of
May 30, 1953

329,591

Cigars • • . • •

200,000,000

Number

1,235,777

Coconut Oil • • «

IiU8,000,000

Pound

35,538,852

Cordage . . . . .

6,000,000

Pound

2,259,200

Rice ••••••

1,0U0,000

Pound

2,500

(Refined .
Sugars
(Unrefined

1,90U,OOQ,000

Pound

Tobacco . . . . «

6,500,000

70U,U31,359
Pound

907,377

TREASURY DEPARTMENT
Washington

_H_EDL\TE RELEASE
Thursday, June 11, 1953

H-I63

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities on "hioh quotas "are prescribed by the Philippine
Trade Act of 19U6, from January 1, 1953, to my 30, 1953, inclusive, as follows:

Products of the : Established Quota : Unit of : imports as of
Philippines
:
Quantity
: Quantity
:
Kay 30, 1953

Buttons 850,000 Gross 329,591
Cigars 200,000,000 Number 1,235,777
Coconut Oil _4U8,000,000 Pound 35,533,852
Cordage 6,000,000 Pound 2,259,200
Rice 1,OUO,000 Pound 2,500
(Refined
Sugars
(Unrefined

1,90U,000,000

Tobacco 6,500,000 Pound 907,377

Pound
70U,U31,359

t_0*_/

FOR IMEDIATE RELEASE,
^r ^fanelOj 19*V,__
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 23, 19Ul, as modified by the president's
proclamation of April 13, 19U2, for the 12 months commencing May 29, 1953,
as follows?

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

Wheat
Country
of
Origin

Established :
Imports
Quota
.May 29", 19$3, to

Established
Quota

(Bushels)

(Bushels)

(Pounds)

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

795,000'

3,815,000
2U,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000

to>, ooo

705,000)

Imports
May 29, l$ft, {
t° June IQi, 1,9^
(Pounds)
3£8,20QJ

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

,200

TREASURY DEPARTMENT
Washington

tt.

MEDIATE RELEASE
Thursday, June 11, 1953

H-16U

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, 19Ul, as modified by the President's
proclamation of April 13, 19U2, for the 12 months commencing Hay 29, 1953,
as follows:

Country
of
Origin

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

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established;
imports
Imports
Quota
: Kay 29, 1953
Kay 29, 1953, to
:to Jime 10
tore 10, 1953
> l?22
(Pounds)*
(Bushels )*
TBusheTs F
Pounds)
795,000

3,815,000
2)4,000
13,000
13,000
5,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000

795,000

100
100
100
100
2,000
100

358,200

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

1,000
100

1,000
100
100
100
100
800,000

795,000

U,000,000

358,200'

267

a/* /V

FOR HMEDIATE RELEASE.
June

11251

„

v
. .
„.
,
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour aufch©_fti^e4. .to -bo entered, or withdrawn
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, 19U2, for the 12 months commencing May 29, 1?52,
as followsa
0

*
9
*
a

Country
of
Origin

Wheat
;
:
r Established s
Imports
Quota
iMaj 29., 1952,.to
s
*
a M&y 28.. 1953
(Bushels)
• (Bushels)

Canada
China
Hungary
Hong'Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina •>
ItalyCuba'
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

79U,576
—
—
..
M .

mm
mm
mm
mm

mm

„

mm

mm

100

mm

2,000

m.

100

m.

_
1,000
mm

100

_
mm.

mm

m.

mm

mm

-

m.

mm

m..

mm

mm

1,000

Mm

100
100
100
100

«"•
•*-.

s
s
s
;

Iheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

9
9

• Established s
Imports
J
Quota
s lay 29,1^52, i
:.'.
J to jfey 28, 194
(Pounds)
(Pounds'
3,815,000
2U,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000

3,815,000
-

iU,ooo

mm

2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

-

•» .

hk
mm

m,.

«_
m,

-.

mm-

m.

~
m.

m,

m*

aaa

m.

mm

m=.

m,

m.

mta

f

tm

.

TREASURY DEPARTMENT
Washington

268

MEDIATE RELEASE
Thursday, June 11, 1953

H-165

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse,
for consumption under the import quotas established in the President' s
proclamation of Hay 28, 19Ul, as modified by the President's proclamation
of April 13, 19U2, for the 12 months commencing May 29, 1952, as follows:

Country
of
Origin

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

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established:
Imports
Established:
Imports
Quota
May 29, 1952, to
Quota
: May 29, 1952,
Hay 28, 1953
:to May 28, 1953
(Bushels)
^Bushel¥)
iPoundsJ
*" (Pounds)
795,000
79U,576
3,815,000
3,815,000
2U,000
13,000
13,000
8,000
100
75,000
1,000
100
5,000
100
5,000
1,000
1,000
100
1,000
2,000

uu

iU,ooo

100

2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

1,000
100

1,000
100
100
100
100
800,000

79U,576

U,000,000

3,815,0UU

C'CQ
t _ C <mt>

mf

u ,:

(A „ < V VV#' >

BfflllEDIATE RELEASE
June 1Q, 1953

r The Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within tariff-rate quota limitations from the beginning of the quota periods to Hay 30, 1953, inclusive, as followst

Commodity

s

Period and Quantity

t

:
t__

Unit
: Imports as
of
:
of
Quantity: May 30, 19%

milk, fresh or sour ... Calendar year 3,000,000

Gallon

3,521

Cream ** Calendar year 1,500,000

Gallon

U78
2,600

Apr. 1, 1953Butter

......

July 15, 1953

5,000,000

Pound

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

Calendar year

33,866,287

Pound

Quota Filled

Tilhite or Irish potatoes t
certified seed • •
other

12 months from 150,000,000
Sept. 15, 1952 798,900,000 .a

Pound
Pound

113,6Ul,958
79,U07,988

Pound

ii,127,960

lalnuts ... Calendar year 5,000,000
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved • • • • • •

12 months from
Oct. 1, 1952
12 months from
Cattle, less than 200 pounds each April 1, 1953

Cattle, 700 pounds or more each April 1, 1953(other than dairy cows) . . . . June 30, 1953

7,000,000

(D

Pound

200,000

Head 2,277

120,000

Head

5,U89,323

9,757 y

(1) Imports for consumption at the quota rate are limited to 16,933,1UU pounds during
the first six months of the calendar year.

270

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, June 11, 1953

H-166

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within tariff-rate quota limitations from the beginning of the quota periods to May 30, 1953, inclusive, as follows:

Commodity

Period and Quantity

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

3,000,000

Unit
:- Imports as
of
!
of
Quantity {May 30, 1953
Gallon

3,521
U78

Cream Calendar year 1,500,000 Gallon
Apr. 1, 1953Butter

July 15, 1953

5,000,000

Pound

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

Calendar year

33,866,287

Pound

White or Irish potatoes:
certified seed
other

12 months from
Sept. 15, 1952

150,000,000
798,900,000

Pound
Pound

113,61*1,958
79,U07,988

5,000,000

Pound

U,127,960

7,000,000

Pound

5,U89,323

Walnuts Calendar year
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved

12 months from
Oct. 1, 1952

2,600

(D
Quota filled

12 months from
Cattle, less than 200 lbs, each..April 1, 1953

200,000

Head

2,277

Cattle, 700 pounds or more each April 1, 1953(other than dairy cows)
June 30, 1953

120,000

Head

9,757

(1) Imports for consumption at the quota rate are limited to l6,933,lUU pounds during
the first six months of the calendar year.

o

£

N. Brown, Jr.
for the Register of the
Treasury

D. C. Whitman
for the Treasurer
of the United
States

Act of July 17, 1861
Convertible into 20 yearsf 6 percent U. S. Bonds/

In accepting the relic from the Kiggs Bank, Secretary
Humphrey said:

"The Treasury is proud to have this historic^

document as evidence of the people's support of their government, dating back almost a hundred years. Now as then the
soundness of the Government rests with the willing cooperation of its citizens. Today nearly fifty million Americans
are holders of Government Bonds."
Mr. Fleming serves as chairman of the Government
Borrowing Committee of the American Bankers Association,
and has been an active volunteer in U. S. Savings Bond
programs for many years.

272

Ft>lr-I^_r©

The .CTIinrit'iiWiwpii^iiiiij dated August 19, 1861, was purchased
by the late Wramlt Yaylor of Washington, and hem been In the
fe*ads of his descendants, who have done business with the
Biggs national Bank for four generations.

It was recently

acquired by the bank from a grandso^, also named Franck
Y&ylor, of Pulaski, Virginia, for presentation to the
Treasury,

fbe bond had been redeemed, canceled, and returned

years ago to its original purchaser.
The face of the

reads:

A»#i»leeiii BftwknWiTft'
Interest fen Cents Per Bay
Washington
500

August 19th, 1861

»o. 1

So. 1

fhree years

(Photograph of
©eorge Washington)

the United States ^

~~

500
After Date
A

Promise to pay to the order of
A

Franek Taylor

ram mmmm DOLLAKS
m t t 1 3/10 per cent Interest payable
semi-annually

^
fy~
#**

H

ff'16

Robert V. Fleming, president and chairman of the baard
of the Riggs National Bank of Washington, today presented to the
Treasury ^eparMen^i-UfsW) Tfrn^Wf^efe

identified as the first

Federal security sold to finance the Civil War. The historic
document was accepted for the Treasury by Secretary Humphrey. It
will be placed in the Treasury archives.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE 11:30 A.M. EDT
Thursday, June 11, 1953.

V^.--*^ n

H-167

Robert V. Flemings president and chairman of the board of
the Riggs National Bank of Washington, today presented to the
Treasury Department for its permanent possession a Treasury note
identified as the first Federal security sold to finance the
Civil War. T-ie historic document was accepted for the Treasury
by Secretary Humphrey. It will be placed in the Treasury archives
The note, dated August 19, 1861, was purchased by the late
Franck Taylor of Washington, and has been in the possession of
his descendants, who have done business with the Riggs National
Bank for four generations. It was recently acquired by the bank
from a grandson, also named Franck Taylor, of Pulaski, Virginia,
for presentation to the Treasury. The bond had been redeemed,
canceled, and returned years ago to its original purchaser.
The face of the note reads:
Interest Ten Cents Per Day
Washington August 19th, l86l
500 No. 1 No. 1 500
Three years (photograph of After Date
George Washington)
The United States A
Promise to pay to the order of
A Franck Taylor
FIVE HUNDRED DOLLARS
with 7 3/10 per cent interest payable
semi-annually
N. Brown, Jr. D. C. Whitman
for the Register of the
Treasury
Act of July 17, 1861

for the Treasurer of
the United States

Convertible into 20 year 6 percent U.S. Bonds

•97^
6=.- 1 Kmt

- 2In accepting the relic from the Riggs Bank, Secretary
Humphrey said: "The Treasury is proud to have this historic
document as evidence of the people's support of their Government,
dating back almost a hundred years. Now as then the soundness of
the Government rests with the willing cooperation of its citizens.
Today nearly fifty million Americans are holders of Government
Bonds."
Mr. Fleming serves as chairman of the Government Borrowing
Committee of the American Bankers Association, and has been an
active volunteer In U. S. Savings Bond programs for many years.

oOo

21B

m- 4 *»
<£A^-^~

The obJ«ett«Mi of thi* *i^*mBg&

the raRKrml of

existing in@ffl.ittee <lag^lfer±aa^^^^^^f^S amplification,
nni the development of a tax s)IMi&r* whleh will impose
the least obatacla to the teoMatc growth of the
oonmtyy*

077
eu_ 1 J

- 8
indiirttwl.i&x radtteftloa m& %M expiation of tte excess
profit® tux alll lm Justified seat $mmm$f*

llMP'steal*

tike plane together* .end tbqr fismot be. justified earlier.
fhiri* fte-reg**!*!* aafpm&t' tax ahoiiM 94 continue*
at 5E peross&t* this bail beta, seheMIaft to go d o m to 4$>yy
paraant next April* the country cannot jet a£fot?# the loss
of a$paxlaiate3jr t2 billion afaleh this «o«l* IOTOITO*
fourth* the sataiaa tax mixLcilm adtofala* for next '
April shcmM- be resoiiileft* The present eoBblnetloa of-'
rates autoa little eemaale' mmm

an* produces unjustified

ftiacrisdiiAtlaaa* aa«g eotraaare an* betaae* iJritafctrlM? A

th# plaat ef .the ^adsttag haylmsard rate structure*
MmmmmMtimm

for this will he- unit next. Jamuwx* Bat

the country eanaot tfftat to lose ravanaa fmm this tax
sonree* The r«te (^)rafeetloii ataaU ba- rtiotoled psotfag
the deYelofaettt of a batter aya&a**
The fifth raoenMiiAatiaa w

for the »iEt«itmee of

the existing 1 3/2 peroeat o M age isaiupaaaa tax of both
employers aa* aaplqraat In the eelaafiar year U N M k
Xha sixth part of tha Prettiestfe program calls for a
etufty of the satire tax structure with & rim to making
recordations to the ^ongraaa by the first of the year*

278

• 2 'It. are still eawinoe*, after the *iaeiiaalona
i M o h h a w taken- fls.ce since the 'Fraai*asetf a tax program
m & aiuumaeadf that it offers the most auaaible solution
to our present tax' and budget problems* v# are gtaaSAjr *
pleased with tte- raafoaaa of tha public to the Presidents
plea' that we put national mmmttf

an* a sound dollar

ahead- of tax'-raiactioiu ft are still confident that the
tom^m^mhm

it has etu*ie* all the facta sdll adopt

this prognut at being' fair aa* in tha best interest of all*
e # m

H u p people have lost sight of tha fact that 'tha
recoonsadation for the axtanaloB of the excess profits
tax for six Mirtha mm only part of -the- Fraaid«atfa tax
program* tha program AoUld he considered as a • couplets
pactofa* Ike six points of the Preeident*a program are:
first,, tte extensioa of fee excess profits tax for
six months»
Second*, laiividual Incoge taxea will he reduced at
fat /fee 4>&U*>* A^dXt, fcf- Cm <$u**U£~ ;

the Bwm time^ that, lit January 1st, 1984* The reduction
in .luiitiii^l rates is already scheduled to go into effect a
at that time* but it would have been unsound financially
without the substantial reduction in exi-enditarea which the
President 1ms reeomiaaded* with the curtailment of outlay**

27 Q
«U, .,1 \j

EXCERPTS^ROM STAT
TREASpf, M. B.
PRODJJUTS INSTITUTE

THE
ALLIED
a.m..

Before discussing the six points of the Presidents
tax program, I should emphasize that a truce in Korea
would not affect this program.

Secretary Wilson cautioned

a Congressional Committee this week against any further
reduction in defense spending if a truce is signed in
Korea.
You will recall that the President has cut expenditures
$4.5 billion from the budget submitted by the past
Administration. With these fea* reductions and with the
President's tax recommendations, there will still be a
deficit of $5.6 billion for the next fiscal year.
The President has recommended reduction in individual
income tax on January 1st and elimination of the excess
profits tax at that time. These reductions are justified
only on the assumption that further expenditure ^ p f i i i i *
will be made in the next fiscal year. Sti'Aijjfoue efl-WTTs

y

£ Y Y~ /^

TREASURY DEPARTMENT
Washington
Excerpts from remarks by Under Secretary of the
Treasury Marion B. Folsom before the Machinery
and Allied Products Institute, Statler Hotel,
Washington, D.C., 10 a.m. EDT, Friday, June 12,1953.
Before discussing the six points of the President's tax
program^ I should emphasize that a truce in Korea would not affect
this program. Secretary Wilson cautioned a Congressional
Committee this week against any further reduction in defense
spending if a truce is signed in Korea.
You will recall that the President has cut expenditures
$4.5 billion from the budget submitted by the past Administration.
With these reductions and with the President's tax recommendations,
there villi still be a deficit of $5.6 billion for the next fiscal
year.
The President has recommended reduction in individual income
tax on'January 1st and elimination of the excess profits tax at
that time. These reductions are justified only on the assumption
that further expenditure cuts will be made in the next fiscal
year.
* •* * •*

We are still convinced, after the discussions which have taken
place since the President's tax program was announced, that it
offers the most sensible solution to our present tax and budget
problems. We are greatly pleased with the response of the public
to the President's plea that we put national security and a sound
dollar ahead of tax reduction. We are still confident that the
Congress^ when it has studied all the facts, will adopt this
program as being fair and in the best interest of all.
•* # # *

Many people have lost sight of the fact that the recommendation
for the extension of the excess profits tax for six months was only
part of the President's tax program. The program should be considered as a complete package. The six points of the President's
program are:
First, the extension of the excess profits tax for six
months.

H-168

- 2Second, individual income taxes will be reduced at the
same time that the excess profits tax is ended, that is,
January 1st, 195^-. The reduction in individual rates is already
scheduled to go into effect at that time, but it would have been
unsound financially without the substantial reduction in
expenditures which the President has recommended. With the
curtailment of outlays, individual tax reduction and the
expiration of the excess profits tax will be justified next
January. They should take place together, and they cannot be
justified earlier.
Third, the regular corporate tax should be continued at
52 percent. This had been scheduled to go down to 47 percent next
April. The country cannot yet afford the loss of approximately
$2 billion which this would involve.
Fourth, the excise tax reduction scheduled for next April
should be rescinded. The present combination of rates makes
little economic sense and produces unjustifed discriminations
among consumers and between industries. A new system of excise
taxation should be developed to take the place of the existing
haphazard rate structure. Recommendations for this will be made
next January. But the country cannot afford to lose revenue from
this tax source. The rate of reduction should be rescinded
pending the development of a better system.
The fifth recommendation was for the maintenance of the
existing 1 1/2 percent old age insurance tax of both employers and
employees in the calendar year 1954.
The sixth part of the President's program calls for a study
of the entire tax structure with a view to making recommendations
to the Congress by the first of the year. The objectives of this
study are the removal of existing inequities, simplification, and
the development of a tax system which will impose the least
obstacle to the economic growth of the country.

oOo

10 i
£Q1

282

/yfkm mmmtmtw mt the limmm

mmmmmd

C9

last aeealaa tHet the tmdmm for

%l9$mim^$mo§ mr t^mbmtm* mt 9&Hlar mmmm bins to %e dated <fem IS ant tm

aa&ae* Gepteifer 1,7, 1?£3> afcish «er* offered aan Jmm 11, v,ere opened at the Fede
Hes#w# sanks ©m June H*
five detatte of this tmm mm m tmUmm$

fetal sw&tol rer - t a t a o M J M M
Total accepted

- 1,5^010,000

(

Jk$6*oo0 eaftase* ea a

fell at She average price shown below)

Mmitmm Wle®

* 99-4d7 aartaOsiS tails or aisean* an-rac* ZaUn

Mmm aC acc©pted eaapitlt&fe bidss (Excepting tee

- mam

aigh

(0£ fereei* «f « »

Historic
HjilacleXpiiia
Clevelaixi

| 33,.WfO0©
ltktfojifcaoo
H*,©Q3,O»

17,10,000

astasia
C&isase

M#&7#<K»

St. toil©

tffOfiUitOOO

esar
Dallas

|i»oo(M>oo)
"

M a ier st the lev prtee

Applied for

,u.ii..l.«.»m.-iir».

mmm

rate of discount qpprn* 2.200JI per
*
*
•
*t
2»8li?K *

tmtml

aysBML

m

H>0,^8*000
57,56^,000
6k,aS7*oao

mmwmmdmm
fatt& «MoMMktO00

fetal
Soaagted
|

30,26a,a00

13,5©3,®00
Af30*OOO
21,005,009
it2,so7,o®o
106,338,000
27,736,000
16,$91*,000
1*7,765,000
$&9m9om
n$,m9ooo
$1,500,018,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, June 16, 1953.

W~iV9

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 June 18 and to mature September 17, 1953, which were
offered on June 11, were opened at the Federal Reserve Banks on
June 15'
The details of this issue are as follows:
Total applied for - $2,206,694,000
Total accepted
- 1,500,016,000 (includes $28l,45o,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.437 Equivalent rate of discount approx.
2.229$ per annum
Ranee of accepted competitive bids: (Excepting two tenders
totaling $1,000,000)
High - 99.444 Equivalent rate of discount approx.
2.200$ per annum
Low
- 99.432 Equivalent rate of discount approx.
2.247$ per annum
(89 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
_
Applied for
Boston $ 33,108,000 $ 30,268,000
New York
1,460,383,000
Philadelphia
14,003,000
Cleveland
77,253,000
Richmond
23,855,000
Atlanta
48,617,000
Chicago
250,928.000
St. Louis
40,663,000
Minneapolis
17,024,000
Kansas City
57,569,000
Dallas
64,257,000
San Francisco
119,034,000
TOTAL $2,206,694,000 $1,500,018,000
0O0

Accepted
867,193,000
13.503,000
54,353,000
21,005,000
42,807,000
206,138,000
27,736,000
16,594,000
47,765,000
56,927,000
115,729,000

yxA

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

a
RELEASE MORNING NEWSPAPERS,
_ayj,day.y Mfl y 15^-*>-1£_>£»
Tucidm^f «ionm t!*t i^atS

~1I-yl26

During the month of ApMMJa, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other
accounts resulted in net purchases of

/ jx; J?/,OOO
$^fe?ifi___4ip&dO, Secretary Humphrey announced
today.

0O0

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, June 16, 1953.

H-170

During the month of May, 1953 market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net purchases of $35,881,000, Secretary
Humphrey announced today.

oOo

•286

mm\\v44-%T&K'*4m^

Irs,

might

,-t

Mm Eisenhower today received from Treasury Secretary

Humplu-ey an illnmimted aagiroa^ieat of the mrmmtdmmt** inaugural
prayor framed with \eood Item the platform upon mhlch mm stood to take

Ms oatli M ottiee. l^^mm^
fen thousand fraised mptmm
prayer mill lie vmm

^^

*M*li ih jfc ikMfr ./**•*-

at' this original eagrossBteist of the

mm mjmhtmvmmmt awards to volunteer workers i©

the U. $* Savings Beads program throughout turn couatry.
When the Secretary presented tte fa»me*t prayer to Mrs* Eisenhower,
lie said* "Not only in this an award for volunteers, if is mm award
created ity wluateera.
tmtloii mmm

Public-spirited eitiaene from all over the

mmjdm possible the framing of beautifully eugrossed copies

of Presictai Eisenhower •© ia&ugural prayer in wood from the platform
from which lie took the oath of office.

Hoist of thos© volunteer

young boy from Buriiagtcm, Vemeat to help mm present to you the
original engrosmtmni mi the prayer.

Donald FXeury, 13 3 of the

Burlington Boy© Club, represents all' eight sjponsorlag groups of the
Treasury Achievessel*t Awax'd.n
The distiaetive U. a* Savings Bor*ds Award, wmdm possible tHrough
oottoaaraa, at no cost to tbe Treasury Department, will be used for
03sceptloual volunteer service i» the Savings Boads program.
« w iiia'i;<ai'fweMKHpiiak?^Wpe W F ^ ^ ^ W

^p>iweaH»^^ww|i8w'aii',-w

*a* ™iajEwep ^w^eevw^aw' ^a**wwiF,e-eHP

T^^a^ 'wL'flWH»*fP

g^at majfff mmm,

ew^^s^

™swpa^PFa*

The

<fcwpwe*_*aw^™

IMW_IW

wood twmm 6,800 f*»t of SoutlMMra plae planking used in the inaugural
stand.

287

June 15T 19a3

TO:
FBOM;

Hr. Murray Snyder
White Hesse
W i s A. IjaBimrtsoa

"Mtt our conversation this ®^i**$y
12:45 p.a* Tuesday June 1®*
I laaderstand tumt tbe arraa|eaents
*»**•*. »!*»«.

T i.a„intifn-ri-iT- #_% rAfifslvA t h e f r a n e e

the toiie iiouse for tbs <5*?®f*£^
handled by Hrs. Blisses with Miss
McCaffrey.
The frased prayer wilLSf..^118^

WiU

v

be
,.^

f(WP-=ths' preseststisn at. l«s«» p.a* -.

on a lu-thSSTS^lJ*!^?^*^;!^^

&&s sr«r^.Ki*8vss.

r-,,,,v,>v

TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Tuesday, June 16. 1953-

WASHINGTON, D.C.
H-171-A

Mrs. Dwight D- Eisenhower today received from Treasury
Secretary Humphrey an illuminated engrossment of the President's
inaugural prayer framed with wood from the platform upon which he
stood to take his oath of office. The presentation was made at
the 'White House.
Ten thousand framed copies of this original engrossment of
the prayer will be used as achievement awards to volunteer
workers in the U.S. Savings Bonds program throughout the country.
When the Secretary presented the framed prayer to
Mrs. Eisenhower, he said: "Not only is this an award for
volunteers, it is an award created by volunteers. Public-spirited
citizens from all over the nation have made possible the framing
of beautifully engrossed copies of President Eisenhower's
inaugural prayer in wood from the platform from which he took the
oath of office. Most of those volunteer sponsors are present.
On their behalf, I commission an enterprising young boy from
Burlington, Vermont to help me present to you the original
engrossment of the prayer. Donald Pleury, 13, of the Burlington
Boys Club, represents all eight sponsoring groups of the Treasury
Achievement Award."
The distinctive U.S. Savings Bonds Award, made possible
through the cooperative efforts of individuals, associations and
commercial concerns, at no cost to the Treasury Department, will
be used for exceptional volunteer service in the Savings Bonds
program. The illuminated embossed reproductions of the prayer
are each framed in wood from 6,800 feet of Southern pine planking
used in the inaugural stand.
W. Randolph Burgess, Deputy to the Secretary of the Treasury,
paid tribute at a luncheon at the Hotel Statler to the eight
groups of volunteer workers who made possible the new U.S. Savings
Bonds Achievement Award.
The group of volunteer workers met at a special luncheon in
their honor immediately following the White House ceremony.
The volunteer groups had been congratulated by Secretary Humphrey
in his office earlier in the day.

Urn.

- 2The luncheon was in the Presidential suite of the Hotel
Statler, in which President Eisenhower wrote the "little prayer of
my own" before he rode to the Capitol to be inaugurated.
The Rev. Edward L. R. Elson, minister of the National
Presbyterian Church, of which the President and Mrs. Eisenhower
are members, dedicated the Achievement Award to national service.
Contributors to the project are: The National Association
of Greeting Card Publishers (design, engrossment of the original
presented to Mrs. Eisenhower, and reproductions of it); The
State of Vermont Development Commission, (which arranged for
industries of Burlington and Winooski, Vt., to make the frames,
and the Boys Club of Burlington to assemble the whole );• the
Pittsburgh Plate Glass Co. (glass); the District of Columbia
Trucking Association and New England affiliates (hauling 6,800
board feet of wood and other materials); Massachusetts
industries (boxes and cartons); the David Taylor Model Basin
of the Navy, near Washington, which kiln-dried the wood; and
the U. S. Coast Guard; which took custody of the wood after the
Hechinger Co. of Washington and Francis V. Keesling. Jr., of
San Francisco donated the salvaged platform planks for this use.
The frame was designed by Thomas Hall Locraft* Fellow of the
American Institute of Architects, in conjunction with the
National Gallery of Art.

0O0

290

- 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 1x2 and 117 (a) (1) of the Internal Revenue Code, as

amended by Section 115 of the Revenue Act of 19Ul, the amount of discount
at which bills issued hereunder are sold shall not be considered to

accrue until such bills shall be sold, redeemed or otherwise disposed of,

and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies)

issued hereunder need include in his income tax return only the differenc
between the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the return
is made, as ordinary gain or loss.
Treasury Department Circular No. I4I8, as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

9Q1

- 2 -

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on June 25, 1953 , in cash or other immediately available
lKB-ft

funds or in a like face amount of Treasury bills maturing

June 2% 1953
_Q__Q_

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

J2

mm. Kj

TREASURY DEPARTMENT
Washington

XMMMMMJ

^____

/

A

A4~

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, June 18, 1953
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 June 25, 1953 3 in
-*T ny*
the amount of $1,200,652,000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated June 25, 1953 , and will mature
Isil
'
September 2k, 1953
3 when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value)
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/fifc_B__d__fl__i time, Monday, June 22. 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 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 Branche
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
1 O Q

RELEASE MORNING NEWSPAPERS,
Thursday; June 18. 1953.

_a KJ KJ

H-172

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
June 25, 1953, in the amount of $1,200,652,000, to be issued on
a discount basis under competitive and non-competitive bidding as
hereinafter provided. The bills of this series will be dated
June 25, 1953,and will mature September 2k, 1953.5 when the face
amount will be payable without interest. They will be issued in
bearer form only, and in denominations of $1,000, |5,000, $10,000,
$100,000, $500,000, and $1,000,000 (maturity value;.
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Daylight Saving
time, Monday, June 22, 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 may not be used.
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and
from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final. Subject to these reservations,
non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price
accepted
(in three tenders
decimals)
in of
accordance
accepted with
competitive
the bidsbids.
must be
Settlement
made or for

- 2completed at the Federal Reserve Bank on June 25, 1953, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing June 25, 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 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 19-i-l,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. 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

IX. K^Km*

H-LEASl MORNING BWSPAP1ES,
tnesday, June 23 , 1953*

Y\ ^
'

""*"

flie Secretary of the treasury announced last evening that the tenders for
•l,500f000,000, or thereabouts, of 91-day treasury bills i© be dated June 25 and to
mature September 2k, 1953, which were offered on June 18, were opened at the Federal
Reserve Banks on June 22.
the details of this issue are as follows:
total applied for - $1,985,339,000
total accepted
- 1,500,229,000

{includes #238,360,000 entered on a
non-competitive basis and accepted in
f u H at the average price shown below)
Average price
- 99 *$06/ Equivalent rate of discount approx. 1.951$ per annum
Range of accepted competitive bids:
High - 99.523 Equivalent rate of discount approx. 1.887$ per annua
I,©*
- 99.U90
•
» «
it
«
2.01056 »
(93% of the amount bid for at the low price was accepted)
Federal Reserve
District

total
Applied for

total
Accepted

Boston
Mew ToriPhiladelphia
Cleveland
Richmond
Atlanta
Chicago
St. X*ou±s
Minneapolis
Kansas City
Dallas
San Francisco

$
30,613,000
1,1*01*, 763,000
36,323,000
71**303,000
15,192,000
l6,l!a,00Q
192,53^,000
30,932,000
9,880,000
69,927,000
28,103,000
76,628,000

$

11,985,339,000

$1,500,229,000

total

30,013#000
982,838,000
20,623,000
73,003,000
15,192,000
15,211,000
I52,28k,000
30,632,000
9,380,000
68,122,000
27,303,000
75,628,000

•

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C
°C Q

RELEASE MORNING NEWSPAPERS,
Tuesday, June 23. 1953 *

^

H-173

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 June 25 and to mature September 2k, 1953, which were
offered on June 18, were opened at the Federal Reserve Banks on
jur.e 2 2 .

The details of this issue are as follows:
Total applied for - $1,985,339,000
Total accepted
- 1-500.229,000 (includes $238,360,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99-506/ Equivalent rate of discount approx.
1.954$ per annum
Range of accepted competitive bids:
High - 99-523 Equivalent rate of discount approx.
1.887$ per annum
Low
- 99.490 Equivalent rate of discount approx.
2.018$ per annum
(93$ of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 30,613,000 $ 30.-013.000
New York
1,404,763*000
Philadelphia
36,323.000
Cleveland
74,303,000
Richmond
15,192,000
Atlanta
16,141,000
Chicago
192,534,000
St. Louis
30 932,000
Minneapolis
9,880,000
Kansas City
69,927,000
Dallas
28^103.000
San Francisco
76 628,000
TOTAL $1,985,339,000 $1,500;229.000
0O0

Accepted
982,838,000
20,623,000
73,003,000
15,192 000
15,.211; 000
152,284,000
30,632,000
/r^3^°°°
68,122,000
27,303.000
75,628,000

4*K *~* •"»
£~ KJ I

- 2 Mr* Thompson was with the Newton Trust Company 1928-1930# He became
assistant cashier of the Providence National Bank in 1937, vice-president
and cashier in 1941, first vice-president and director in 1942, and president
* ,~i ^ "*•*" t-*^«<-~ I .Union h v
in 1943. He 4m executive vice-president of/the Providence/National B a n y ,3**^
tfae^>oe#b-jen %e has 1951 when the Providence National Bank and
the Union ?ruat Company merged*
Mr* Thompson holds directorates with Almardon Mills, Inc*, Blackstone
Mutual Fire Insurance Company, Equitable Fire and Marine Insurance Company,
Firemen*s Mutual Insurance Company, The New York, New Haven & Hartford
Bat lroad Company, Providence Union National Bank and the Union Mutual Fire
Insurance Company. His civic trusteeships or directorates are: Greater
Providence IMCA, Junior Achievement of Rhode Island, Inc., of which he
also is treasurer| Providence Boys Club, Providence Community Fund, Inc.,
of which he also is treasurer $ Rhode Island Public Expenditure Council, of
which he also is treasurer; Rhode Island Society for the Prevention of
Cruelty to Animals, of which he also is treasurer, and Rhode Island Charities
Trust*
Mr* Thompson served as General Chairman of the Rhode Island United
War Fund in 1943* He is a member of the Neweomen Society, the Rhode Island
Bankers Association, of which he was president in 1945, end the Rhode Island
Dartmouth Association, of which he was president in 1949-50.
mmmAkmmmSm^^^ ^^ ' ' ^ ^f^

Mr* Thompson's office is at 100 Westminster Street, Providence, and
he lives at 208 Bowen Street, Providence*
#

=.. KJ Km*

-#«S>

PHliOSEl^Ta_aV9^!_-^;LEA'S#'

•y,ru*r*,Wm>

«^C^*3^-*'

,,

^

7

Secretary of the Treasury Humphrey today announced
the appointment of Rupert C. Thompson, Jr., baiker of Providence, Rhode
Island, as State Chairman of the U« S. Savings Bonds Advisory Committee for
Rhode Island^
Mr* Oamahaml succeeds Chester R* Martin, retired vice-president of
the Industrial Trust Co., of Providence.who resigned as chairman because
of increasing pressure of other public service duties* Secretary Humphrey,
accepting Wm

resignation reluctlantly, expressed the appreciation of the

Treasury for the unselfish contribution he had made to the Savings Bonds
program since 1941*
Secretary Humphrey wrote the new Rhode Island State Chairman as follows:
"I am pleased to learn of your willingness to be our Chairman of the Savings
Bonds' Program for the State of Rhode Island, and I am happy to appoint you
to that position*
nit is gratifying to have a man of your pro/ ed leadership on our team/
//
*
^Oiuyo^-a b « Jiiiiiiim-iay11^--^
Rupert C. Thompson, Jr., was born in Newton, Mass*, July 5, 1905*
He is a graduate of Dartmouth College and of the Suffolk Law School*
was married to Eleanor Beatrice
Campbell and David Carlisle*

Ball in 1930*

He

They have two sons, Peter

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Tuesday, Jur.e 23; 1953.

WASHINGTON, D.C.

9QQ
im.%J Km*

H-174

Secretary of the Treasury Humphrey today announced the appointment of Rupert C. Thompson, Jr., banker of Providence, Rhode Island,
as State Chairman of the U. S. Savings Bonds Advisory Committee for
Rhode Island.
Mr.Thompson succeeds Chester R. Martin, retired vicepresident "of "the Industrial Trust Co., of Providence, who resigned
as chairman because of increasing pressure of other public service
duties. Secretary Humphrey, accepting Mr. Martin's resignation
reluctlantly, expressed the appreciation of the Treasury for the
unselfish contribution he had made to the Savings Bonds program
since 1941.
Secretary Humphrey wrote the new Rhode Island State Chairman
as follows: "I am pleased to learn of your willingness to be
our Chairman of the Savings Bonds Program for the State of
Rhode Island, and I am happy to appoint you to that position.
"It Is gratifying to have a man of your proved leadership on
our team in such an important capacity."
Rupert C. Thompson, Jr., was born in Newton, Mass.,
July 5, 1905. He is a graduate of Dartmouth College and of the
Suffolk Law School. He was married to Eleanor Beatrice Ball in
1930. They have two sons, Peter Campbell and David Carlisle.
Mr. Thompson was with the Newton Trust Company 1928-1930. He
became assistant cashier of the Providence National Bank in 1937:
vice-president and cashier in 1941, first vice-president and
director in 1942, and president in 1943- He has been executive
vice-president of the Providence Union National Bank since 1951,
when the Providence National Bank and the Union Trust Company
merged.
Mr. Thompson holds directorates with Almardon Mills, Inc.,
Blackstone Mutual Fire Insurance Company, Equitable Fire and
Marine Insurance Company, Firemen's Mutual Insurance Company,
The New York, New Haven & Hartford Railroad Company, Providence
Union National Bank and the Union Mutual Fire Insurance Company.
His civic trusteeships or directorates are: Greater Providence
YMCA, Junior Achievement of Rhode Island, Inc., of which he also
is treasurer; providence Boys Club, Providence Community Fund,Inc.,

30Q

- 2 of which he also is treasurer; Rhode Island Public Expenditure
Council, of which he also is treasurer; Rhode Island Society
for the Prevention of Cruelty to Animals, of which he also is
treasurer, and Rhode Island Charities Trust.
Mr. Thompson served as General Chairman of the Rhode Island
United War Fund in 1943. He is a member of the Newcomer. Society,
the Rhode Island Bankers Association, of which he was president
in 1945, and the Rhode Island Dartmouth Association, of which he
was president in 1949-50.
Mr. Thompson's office is at 100 Westminster Street,
Providence, and he lives at 208 Bowen Street, Providence.

0O0

»1

K^U

- 5 In countries like Communist China, Burma,
Thailand and Mexico, where opium is grown illegally,
those Governments must take firm measures to cope
with this illegal production. Communist China is the
chief offender, and is systematically fostering and
exploiting the production of opium and heroin for the
illicit market on a gigantic scale.
The 34 countries represented at the United Nations
Opium Conference which signed the Protocol were:
Argentina, Belgium, Burma, Canada, Chile, China,
Denmark, Dominican Republic, Ecuador, Egypt, France,
Federal Republic of Germany, Haiti, India, Indonesia,
Iran, Iraq, Israel, Japan, Korea, Lebanon, Mexico,
Monaco, Netherlands, Pakistan, Philippines, Spain,
Sweden, Thailand, Vietnam, Turkey, United Kingdom,
- United States and Yugoslavia.
The Protocol will come into force when 25 countries
have ratified it.

W \mf £.

- 4 have often been suggested as a pattern which should be
applied to the control of gun-running, atomic raw
materials, or any obnoxious or dangerous commodity in international trade.
However, the overproduction of opium and the opportunities it offers for the clandestine manufacture of drugs
directly for the illicit traffic constitutes a danger to
the progress which has been made through the application
of the conventions in force. The Protocol will close these
gaps.
The Protocol represents a great advance over previous
treaties on narcotic drugs of which there are eight in
number. For the first time there is no provision for
smoking opium which has now become outlawed except for a
very few areas in Pakistan and India which will be a
temporary situation. In the past treaties relating to
opium have served as protection for countries like
Great Britain, France,the Netherlands, Portugal and Japan
which maintained smoking opium monopolies in the Far East.
This Protocol recognizes the abolition of these monopolies
which was accomplished through representations made by
the United States Government during World War II.
Several of these countries had large commercial interests
at stake, but our Government received from all of them a
tribute of admiration for its leadership in this diplomatic,
economic and moral reform.

ini
"v-> \-S Km*

- 3 test of time and have served as the basis for farreaching restrictive legislation, including our own
Federal Harrison Narcotic Act, it became evident that
it did not go far enough. Some sort of international
watch-dog was essential to keep recalcitrant nations
in line. This was later provided by the 1925 and 1931
international narcotic conventions in the form of two
semi-autonomous international bodies, the Permanent
Central Opium Board and the Supervisory Body, which
through an elaborate estimating and accounting system—
including the power of embargo for offending nations—
insures that all cooperating countries live up to their
agreement to manufacture drugs for medical needs only,
as provided by the 1931 Limitation Convention. The
total medical and scientific requirements, as well as
the amounts needed by each separate country are now
known, and the quantities of narcotic drugs manufactured
legitimately have been stabilized at the level of the
world medical and scientific requirements under this
1931 Convention. (Before the 1931 Convention came into
full force, at least 100 tons of narcotic drugs passed
into the illicit traffic from authorized factories in a
five-year period, and seizures on our shores aggregated
as much as 3§ tons in a single year.) This international
system of control of the legal manufacture of drugs has
met with such signal success that the principles applied

nPA

ou4

- 2 This is a new departure and marks the most important step in advance made thus far in the never-ending
fight against drug addiction. For the first time, the
solution gets at the crux of the narcotic problem, and
limits the source of the evil, the Eultivation of the
opium poppy. The main purpose of the Protocol is to
reduce overproduction of opium from 2,000 to 500 tons,
which represents the medical needs of the world.
For the better part of two centuries most countries
of the world have been in unanimous and complete agreement
that the exploitation of narcotics is morally indefensible,
and an economic blunder for which no financial gain can
compensate. Nevertheless it has been permitted to
flourish, and there are few nations whose subjects did not
at one time or another take part in the trade. A final
solution of the problem has challenged the best intellects
both here and abroad.
This same idea of limiting the use of narcotic drugs
to medical needs was incorporated in The Hague Convention
of 1912, which also was championed by the United States,
but unfortunately no working machinery was provided by
the Convention for carrying out its intentions. International cooperation on such a vast scale was a new
thing, and the eminent statesmen who conceived the idea
relied solely on the good faith of nations to see to its
implementation. While many of the provisions of this
first international opium convention have well stood the

w W v>

PROTOCOL TO LIMIT WORLD-WIDE PRODUCTION OF
OPIUM SIGNED IN NEW YORK
After forty-one years of long drawn out negotiations
at international opium conferences, during which the
United States Government has always maintained leadership
and taken a large part, success was finally achieved in
our highest goal in the campaign against drug addiction
when at New York on June 23, 1953, the delegates of 34
countries there assembled in attendance at an International
Opium Conference, signed a Protocol which provides for
world-wide limitation of the production of opium. The
United States stands to be one of the chief beneficiaries
from this agreement because it is the tremendous overproduction of opium abroad which feeds our illicit narcotic
smuggling traffic.
This far-sighted idea would have been a dead issue
except for the untiring zeal of United States delegates
to international narcotic conferences. They have animated
the principle when it seemed visionary and impossible of
accomplishment, and have lost no opportunity to pave the
way for its acceptance at every international conference
which has been held since the first Convention was signed
at The Hague in 1912. U. S. Commissioner of Narcotics
H. J. Anslinger, who has represented the United States at
these conferences since 1930, signed the Protocol on behalf
of the United States.

v., U- KJ

- 4which maintained smoking opium monopolies in the Far East.
This Protocol recognizes the abolition of these monopolies
which was accomplished through representations made by the
United States Government during World War II.
Several of these countries had large commercial interests
at stake, but our Government received JffolT'inX'l^^
a U'lbttte uf"afflggro5_rrarr^

in this diplomatic,

economic and moral reform.
"In countries like Communist China, Burma, Thailand and
Mexico, where opium is grown illegally, those Governments
must take firm measures to cope with this illegal production.
Communist China is the chief offender, and is systematically
fostering and exploiting the production of opium and heroin
for the illicit market on a g.gantic scale."

?H7
•vr \mJ

|

- 3 ments, as well as the amounts needed by each separate country
are now known, and the quantities of narcotic drugs manufactured
legitimately have been stabilized at the level of the world
medical and scientific requirements under this 1931 Convention.
"Before the 1931 Convention came into full force, at
least 100 tons of narcotic drugs passed into the illicit
traffic from authorized factories in a five-year period, and
seizures on our shores "^grrtrr+v* as much as 3-J tons in a
single year.

This interna tabnal system of control of the legal

manufacture of drugs has met with smom signal success^pha*

j£s^b^6asco^roj:_of_ ^©Sir^^^^^ja t omi c
\1 s, .. Qr.J5U_lXL^__l___lQ^

'^JOHWHW*, t h e o v e r p r o d u c t i o n of opium a n d t h e opportunities
it o f f e r s f o r t h e clandestine m a n u f a c t u r e of d r u g s directly f o r
the i l l i c i t traffic constitutes a danger t o t h e p r o g r e s s which
h a s b e e n m a d e through t h e application^pf t h e conventions i n
force.

T h e Protocol signed today wilJ^TTose these g a p s .

"The Protocol represents a great a d v a n c e o v e r t h e eight
p r e v i o u s treaties o n narcotic d r u g s .

¥ov the >.£IMB^I time

t h e r e i s nn nrn¥*niifnr*n'9r" ¥mdK__n^t2*p§tam"-i*Mi5hymnirinT"'nrrr-TmT'jiTntrn n n — r m w nrrnmr

1 £outlawed
***

^p

except f o r a v e r y f e w areas i n Pakistan a n d Itidla

w h i c h w i l l b e a temporary situatioly

In the past.treaties

r e l a t i n g t o opium h a v e served a s p r o t e c t i o n f o r countries like
Great B r i t a i n , F r a n c e , t h e N e t h e r l a n d s , Portugal and J a p a n

°0p

- 2 ,0 IT "This is a new departure and marks ^f most important
step mml^mmmmmmmm^ in the lyyrm endS-g fight against drug
addiction.

For the first time, the solution gets at the crux

of the narcotic problem, and limits the source of the evil,
the cultivation of the opium poppy," he mmaW^^^X

>

Limiting the use of narcotic drugs to medical needs was
incorporated in The Hague Convention of 1912, as advocated
by the United States, but no working machinery was provided
by the Convention for carrying out its intentions

*

t

sib lXXX~£m^~***nr**A^^

Mr. Anslinger pointed out.^t7wKile many of the provisions of
this first international opium convention have wife stood the
test of time and have served as the basis for far-reaching
restrictive legislation, including enactment of the Federal
Harrison Narcotic Act, in the United States, "* the U5iW»g!ra_ter
'ftftfrfty it became evident that it did not go far enough.

Some

sort of international watch-dog was essential to keep
recalcitrant nations in line.

This was later provided by the

1925 and 1931 international narcotic conventions in the form
of two semi-autonomous international bodies, the Permanent
Central Opium Board and the Supervisory Body, which through
an elaborate estimating and accounting system—including the
power of embargo for offending nations—insures that all
cooperating countries live up to their agreement to manufacture
drugs for medical needs only, as provided by the 1931
Limitation Convention.

The total medical and scieiUJlc require-

3CQ
V*'' O %Af

Qyf1^
Thirty-four countries represented at the United Nations
Opium Conference in New York today signed a Protocol ppewidy
l»ifr*wa^ini*-M^iWsfe production of opium W
aaa from 2,000 to 500 tons which
repre
Iarcli>iTcir^

signed

the Protocol on behalf of the United States, said that this
country will be one of the chief beneficiaries of the agreement because overproduction of opium abroad feeds the illicit
narcotic smuggling traffic into the United States.
Other countries which signed the protocol, which goes into
force when 25 countries have ratified it were:
Argentina, Belgium, Burma, Canada, Chile, China,
Denmark, Dominican Republic, Ecuador, Egypt, France,
Federal Republic of Germany, Haiti, India, Indonesia, Iran,
Iraq, Israel, Japan, Korea, Lebanon, Mexico, Monaco,
Netherlands, Pakistan, Philippines, Spain, Sweden, Thailand,
Vietnam, Turkey, United Kingdom, and Yugoslavia.
United States delegates to international narcotic
conferences for the pa_st forty-«2© years have
, rr$ipQmtmilifty'ltiP» WQnfc.nrfyfHEicceptance of an agreement to limit
opium production Mr. Anslinger said

Sin
Km- MA\M\J

-

ft

-

nii-beli iiatatal_a&4 »o$dt$ig op±w& monopolies In the $ar East*
2hia irotoeol nco&ilsea tarn abolition of" tfamm® aonapoliaa
i-hloh « u a©'O0^1Ui»£l throutfi w^roa^atatl^n® JH-dft'tgrtte
W U o d Stat®® aovafttMat taring nor24l Wmr XI.
Several, oa these countries na4 large aa!^aei?c.ial latwaaia
CC6j>e\rm4htY\
at state, tat o w «MNnR»snt- »©«iir<t*i fi. aitaMPii^iro

m

^t eountplaa lite GoaMHttiat 'Stains* ^ £ t t ^ OiallandL and

^8xieo#- abare opiim la groan &llemll&*

t&mm Qoreraoeata *e~

anst talcs fin. Maaiupsa to a ope *ith tfeia lilagal jparoteotloa*
Ooa-aoKiat aiina Is tha eHiel «Cfa_-*M% ant la oystsmttoally
f aKf.^g r^l :n^. fund. OGCplAltlnS ttMl JpfNft^l^ttea O f ^BftliVWf SJl4l

for tte Illicit market on a^@t*atl$ acale."

te0SiA

311

&a
m of
legitimately have mmmm

i.

at

level of the world
this 1931 Convention.

Bolantlflo

"Beat3ox1© the If31 Convention caiae into full force, at
least 100 tons of narcotic drug® passsed into, the illicit
factories in

/a/b fed
tc£

control of - the legal

manufacture of

;bs overpx^oductaon of opium and. the opportunities
it offers foa? th# olandsstlas Mnaiffestars or dmg® directly for
illicit tmff1c eonatltabas a danger to the progreaa which
f the conventions Sum
foroe* tta frotoeol signed. today trill, olosa tbesa. gapa.
*fhs Protocol rsprssanta a graat advaaaea ovar the sl6ht
previous trsa£las,oa asreotls drugs, JtaailBftMliaHtffM-M
' smoking opium ahlch has now become
carta awed except for a very feu areas %m Pakistan and itiia*

ralatlas. to opium fea^re serwd as protection for eoyntrlss iii
great Britain, frano«, the K&therlands, fortnp-1 and Japan

?1o

~ 2 -

y*s?

*J_tts is a now dipsrtws and mmtlm tarn most important

step m$4mmmmmmr

in tha

IMB—

mateo fifjfet against drug

addiction, for tha first tint, tha solution gsta at tha crtm
of tha aareotle pmhlmmf. and lladlta tha sooAsa of the evil*
the cultivation of tha op&a* poppy,m ho said.
Limiting the use of narcotie drugs to aa&ical noada was
inoor^oimt^d in fee Hague Convention of 1912 * aa advoeatad
by tha Unltad States, tat no *s«feia$ mmmMmmiwif m s ptwided
by the- €Otfvsntlon for o^rying oil its jLnt^ntloms <
*r**• #F

co

&

I
%

jpSBfeffigSffasMw™i%M^gj^i^"r ^'

^^^Nr;wfc>aaaa^i!r^»aj

^ f s w f s s , *_^Tpw

v^thia first 'SnNatet&eaial

a s s s ta.~iiS»"^s*

OJMMS

jKffBWwiw'^ijr

**$•&•

'%&&$*&*?

; L x ^ *i, A ©->

amr™*1 ^*^"m? •48kmwm*$im0mwmm?

^«F«

/™

aoBxrantlon hava Mall stood the

tost of tJnni and havs asavsd mm tha 'baala for far~r^aohJng
vsstrlotiva IsgislaHion* incladBUig a&aotaasat of the padoral
tevx^aoBi llareotlc S a t | in tha iftiltad Stat*

c
c

JJ
if
f

fJ-PTit baca«a widest that it d M not go farvaoongh.
sort, of tet#rnational mtoh-^atg wis aaatatial to teop
recalcitrant nations in line* ghtia m s later provided fey tha

-t
• ^5
V>^

i

^ 2 5 **** *931 international aaffsa&ls eonveittlons in tins fons
of two san&HratwfKa-oua Inta^ntaalona-t bodlss* tha Fermanant
gantrml % i w Board and tha Bispsrvlsory Body* ishioh through
an alahorata estimating and accounting system— lnoludlag tha
aovar of embargo for offandlag nations—inauras that all
eoopsfmilfig oonntrias live up to thair agrasns&t to tmsmtsuture
drngs for ssdloal nse&s only* as provided by -tha 1931
limitation Convention*

.Eha total nodical Mid scientiifica^js'^siflre-

n

111
v* a. J

y^y

yy-,-3..

%irty~four countries Represented at the Halted nations
Cpium Confaranca in lew York today algnsd a Protocol
iHin f ir-'-trtiiiWiTiirt^
's^mmmmmmmWaW^

toUw,

Mfr JintiT production of opium

from 2,000 to 500 tons which

represents
Commissioner ol^lareotle^^

signed

tha Protocol on bahalf of the United!
•tad iStates, said that this
country trill me one of the chief beneficiaries of the agreement because overproduction of opium abroad tmm&m tha illicit
narcotic aaaggilng'traffle into the United States.
Other countries which signed tha (protocol which goes into
force when 2$ countries have ratified It neres
Argentina., Belgium-, Burma* Canadas Chile* China,
©aanark, Bominicanfiepubllc,Ecuador, B^pt* France,
federal Hepublic of Germany, Hai_£!_4 -• Indiay Indonesia* Iran,
Iraqi, Israel, Japan* Korea, Lebanon^ Haxioo, Monaco,,
lie ther lands* Pakistan, Philippines, Spain, Sneden, fhalland,
Vietnam, Vtixtay, Halted Kingdom, and Yugoslavia.
United States delegates to international narcotic
Tfeov*
.
_been
conferences for the past forty-eae years have
Uforkin^ ~f""Ovodr
ifpiiii11 IwtffPlfiwiilNfnniiwiiJH_aa^ acceptance of an agreement to limit
opium production.Mr. Ansllngar said.

TREASURY DEPARTMENT
Information Service
IMMEDIATE RELEASE,
Tuesday, June 23, 1953-

WASHINGTON, D.C.

H-175

Thirty-four countries represented at the United Nations Opium
Conference in New York today signed a Protocol under which production of opium is reduced from 2,000 to 500 tons which represents
the medical needs of the world.
Commissioner of the Treasury Department's Bureau of Narcotics,
Harry J. Anslinger, who signed the Protocol on behalf of the
United States, said that this country will be one of the chief
beneficiaries of the agreement because overproduction of opium
abroad feeds the illicit narcotic smuggling traffic into the
United States.
Other countries which signed the Protocol which goes into force
when 25 countries have ratified it were:
Argentina, Belgium, Burma, Canada, Chile, China, Denmark,
Dominican Republic. Ecuador, Egypt, France, Federal Republic of
Germany. Haiti, India, Indonesia, Iran, Iraq, Israel, Japan, Korea,
Lebanon, Mexico, M:naco, Netherlands, Pakistan, Philippines, Spain,
Sweden, Thailand, Vietnam, Turkey.; United Kingdom, and Yugoslavia.
United States delegates to international narcotic conferences
for the past forty-four years have been working toward acceptance
of an agreement to limit opium production, Mr. Anslinger said.
"This is a new departure and marks a most important step in the
fight against drug addiction. For the first time, the solution gets
at the crux of the narcotic problem, and limits the source of the
evil, the cultivation of the opium poppy." he said,
Limiting the use of narcotic drugs to medical needs was
incorporated in The Hague Convention of 1912, as advocated by the
United States, but no working machinery was provided by the
Convention for carrying out its intentions Mr. Anslinger pointed
out.
Commissioner Anslinger said:
"While many of the provisions of this first international
opium convention have well stood the test of time and have served
as the basis for far-reaching restrictive legislation, including
enactment of the Federal Harrison Narcotic Act in the United States,
it became evident that it did not go far enough. Some sort of
international watch-dog was essential to keep recalcitrant nations

01

i CT

waJ

in line. This was later provided by the 1925 and 1931 international
narcotic conventions in the form of two semi-autonomous international bodies, the Permanent Central Opium Board and the
Supervisory Body, which through an elaborate estimating and accounting system -- including the power of embargo for offending
nations -- insures that all cooperating countries live up to their
agreement to manufacture drugs for medical needs only, as provided
by the 1931 Limitation Convention. The total medical and
scientific requirements, as well as the amounts needed by each
separate country are now known, and the quantities of narcotic
drugs manufactured legitimately have been stabilized at the level
of the world medical and scientific requirements under this 1931
Convention.
"Before the 1931 Convention came into full force, at least
100 tons of narcotic drugs passed Into the illicit traffic from
authorized factories in a five-year period, and seizures on our
shores totaled as much as 3i tons in a single year. This international system of control of the legal manufacture of drugs has
met with signal success.
"The overproduction of opium and the opportunities it offers
for the clandestine manufacture of drugs directly for the illicit
traffic constitutes a danger to the progress which has been made
through the application of the conventions in force. The Protocol
signed today will help close these gaps.
"The Protocol represents a great advance over the eight previous
treaties on narcotic drugs. There Is no exception in this Protocol
for smoking opium which has now become outlawed except for a very
few areas in Pakistan and India. In the past, treaties relating
to opium have served as protection for« countries like Great Britain,
France., the Netherlands, Portugal and Japan which maintained
smoking opium monopolies in the Far East. This Protocol recognizes
the abolition of these monopolies which was accomplished through
representations made by the United States Government during
World War II. Several of these countries had large commercial
interests at stake, but our Government received cooperation in this
diplomatic, economic and moral reform.
"In countries like Communist China, Burma, Thailand and
Mexico; where opium is grown illegally, those Governments must take
firm measures to cope with this illegal production. Communist
China is the chief offender, and is systematically fostering and
exploiting the production of opium and heroin for the illicit
market on a gigantic scale, "

oOo

16

- 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) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 19l*l, the amount of discount
at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. 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 Wo. I4I8- as amended, and this notice,
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve Bank or Branch.

01 7

- 2-

_BB_M
dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on July 29 19$3 , in cash or other immediately available
funds or in a like face amount of Treasury bills maturing Jialy 2, 19$3
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

18

TREASURY DEPARTMENT
Washington

/
\~\

X~~l

L

FOR RELEASE, MORNING NEWSPAPERS,
Ttosday, Jn»25,__g_3
.
The <_$_n(___S]H-|MM-^ik8 Treasury- by this public notice, invites tenders
for $1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for

tat

*&

cash and in exchange for Treasury bills maturing

July 2, 1953

, in

the amount of $ l,20Q._>li7,OQO , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated July 2, 19$3 , and will mature
October 1, 1953 3 when the face amount will be payable without in-

~5__3c

—

terest. They will be issued in bearer form only, and in denominations of
$1,000, 15,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/j-SHtfssaxtjjne, Monday, June 29, 19$3
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.925. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branche
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
rmursday June 25't 1953.

IINGTON, D.C.
H-176

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 July 2, 1953. in
the amount of $1,200 547/000j to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
The bills of this series .will be dated July 2, 1953. and will mature
October 1, 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 Daylight Saving
time, Monday, June 29, 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 may not be used. It is
urged that tenders be made on the."printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking-institutions will not be permitted to submit
tenders except for their own. account. Tenders will be received
without deposit from incorporated:banks and trust companies and from
responsible and recognized dealers in.investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for., unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing "hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Secretary of the Treasury of the amount and
price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such
respect shall be final. Subject to these reservations, noncompetitive 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)
competitive
bids.must
Settlement
forcompleted
accepted
tenders of
inaccepted
accordance
with the bids
be made or

- 2 at the Federal Reserve Bank on July 2, 1953. in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing July 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 other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the
price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 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

\3c.U

\h*~x *V y /9s-3
STATBHUT ST ^<^Lm^m^e4^^

i' The Federal Reserve

/K-^^^^^ww-^

a

acted on its own responsibility

hut alter full consultation witli the Treasury its actios is as
—

/"

t

orderily continuation of the standing policy of providing the
reserves seeded for business and finance

necessary

ciagw The actios is entirely e_»dMqp*__t with
Treasury financing./

the policy of restraint of inflation without tee drastic credit
restrictions.

/

JL dU^^^^Cu

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C
"~t fK

IMMEDIATE RELEASE.
Wednesday, June 24, 1953-

H-177

STATEMENT BY SECRETARY HUMPHREY
In answer to inquiries on the Federal Reserve reduction of
reserve requirements Treasury Secretary Kamphrey said tonight:
"The Federal Reserve Board acted on its own
responsibility but after full consultation with the
Treasury. Its action is an orderly continuation of the
standing policy of providing the reserves needed for
seasonal demands of business and finance and for
necessary Treasury financing. The action is entirely
consistent with the policy of restraint of inflation
without too drastic credit restrictions.

oOo

y^o

>r Release
For

ll^^Uj

INMA^JU^

9W*,*J3,
* Wt- ^J
. >w*«
%A. *

/

A
Persons in the United States are prohibited from
participating in the purchase or sale of certain important
commodities for ultimate shipment from anywhere in the outside
world to the countries of the Soviet bloc, under regulations
issued today by Secretary Humphrey.
This action, taken by the Treasury as a part of its
Foreign Assets Control program, supplements the United States
export control laws. The export control laws cover exportations
from the United States to the Soviet bloc, but^ajaaammWA.it •' ('
IAAJ 9mAm^Am,mmmlmmmmmtmmmmmmmmm^^

<9wm not WBin illegal {for perspnsi^Ltn_.s country**!*) participate
in the supplying of strategic goods to a Soviet bloc country
from a third country.
The new order by the Treasury prohibits persons in the
United States from purchasing or selling, or arranging the
purchase or sale, of commodities outside the United States for
ultimate shipment to the Soviet bloc, when the transaction
would be inconsistent with the controls of this country and
friendly foreign nations.

fyA%Ai.,MMMj.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
Kmi

IMMEDIATE RELEASE,
Monday, June 29, 1953-

H-178

Persons in .the United States are prohibited from
participating in the purchase or sale of certain
important commodities for ultimate shipment from anywhere
in the outside world to the countries of the Soviet bloc,
under regulations issued today by Secretary Humphrey.
This action, taken by the Treasury as a part of its
Foreign Assets Control program, supplements the
United States export control laws.

The export control

laws cover exportations from the United States to the
Soviet bloc, but under these laws, it is not illegal
in this country for persons .to participate in the
supplying of strategic goods to a Soviet bloc country
from a third country.
The new order by the Treasury prohibits persons in
the United States from purchasing or selling, or arranging
the purchase or sale, of commodities outside the
United States for ultimate shipment to the Soviet bloc,
when the transaction would be inconsistent with the
controls of this country and of friendly foreign nations.

0O0

10A
KM. ' ^ _

8

T

Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)

Apr. 20,
1953
LIABILITIES
Deposits of Individuals,partner*
ships, and corporations}
Demand.
$53,713,797
Time..
21,881,788
Deposits of U. S. Government....
2,376,278
Postal savings deposits.........
13,^23
Deposits of States and political
subdi vi sions*
6,451,277
Deposits of banks...
8,428,765
Other deposits (certified and
cashiers1 cheeks, etc.)
•
1,470,809
fotal deposits
94,336,137
Bills payable, rediscounts, and
other liabilities for
borrowed money
••••
626,8*10
Other liabilities.
1.797,933
fotal liabilities, excluding
capital accounts...
96,760,910
CAPITAL ACCOUNTS
Capital stocks
Preferred.
5.619
Common
2,2*6,223
Total
2,254,842~
surplus....
3.357.9W
Undivided profits
1,300,877
Reserves
264,011
Total surplus, profits, and
reserves....
4,922,8*«8
Total capital accounts.... 7.177.00"
Total liabilities and
capital accounts. •
103.938,600
RATIOS* .
PercenF"
U. S.Oov't securities to total
32*20
assets
35.18
Loans & discounts to total assets
7.61,—,
Capital acjco^uata to total deposit*

i
. Dec. 3 L
;
1952

s
8
s

Mar. 3 L
1952

s Increase or decrease
« since Dec. 31, 1952
» Amount
: Percent

Increase or decrease
since Mar. 31» 1952
Amount
: Percent

$56,682,902
21,517.160
3.238,050
13,588

$50,606,189
20,162,908
3.677.691
12,639

•$2.96?,105
364,628
-861,772
-165

-5.*- $3,107,608
1.69
1,718,880
•26.61 ~l,301,4lj
-1.21
784

6.1*
8.52
•35.39
6,20

6,271,676
9.920,522

6,059.^9
8,471.774

179.601
-l,]#l,757

2.86
•15.01*

391,788
-43,009

6.47
-.51

1,613,878
99.257.776

1,326,4$!
90,317.1^1

-143,069
^,921,639

»8.86
3Z9&

144,358
4,018,996

10.88

75,9a
1.739.825

247,937
1,658,687

550,919
58,108

725.65
3.3**

378,903
139,246

152.82
8.39

101,073.522

92.223,765

-^.312,612

-4.27

4.537.145

7.007
2,173.744
2,160,751"
3.123, 75b
1,226,047
260,648

-47
30.037
•990
23,742
75,146
-10,1*09

-.83
1.35

•19.81
3.47
3^5

6.13
•3.79

-1.J8S
75.479
74,091
23^2bT
74,830
3.363

4,834,369
^7.059.221

4,610,451
b,791.g)2

88,479
118,469

1.83

312,397

6.78

108,132,7^3
Percent

99.01^.967
Percent

~4,19M43

5.666
2,219.186
2,224j852~
3.33^.2-J
1,225,731
274, 4gQ

33.23
33.to
7.11

34.30
32.67
7.52

NOTE:

UW

ML

"OS"
-3.88

TaW
6.10
1.29

J3&
4,923.633

Minus sign denotes decrease.

4.97

lot
Km C K

3
Statement showing comparison of principal i t . , of assets
banks as of April 20, 1953. December 3 L 1952,
(In thousands of dollars)
—
—
—j
-j
1
i Apr. 20, . Dec. 3 L « Mar. 31.
j
1953 * 1952 8 1952
.
l
l
.^w-.v-w,*.
4.890
4.916
4.933

and ] ^ « i " g "**"
and March 3 L 1952

^

^

i increase or decrease . Increase or decrease
* since Dec. 31. 1952 > Ino* Mar. ?!, l?5g
* Amount * Percent ; Amount
J Percent
*
t :
*—
«
~
-26
^
ifi
=*tt-

"ass irass nsas -s_s

_=K5_S-^.^

"i^s-xra:^ y,,M; S« ,i'» mass __ »iis—S*
Total p . loans
Leas valuation reserves...
Hot leans

"'SK'S?
531.577
36.566,806

^'SJ'IS
518.296
36.119.o73

3

b«7 788
187.788
32.352.742

13 281
.tj'fz,
447.133

&56
43.789
™
li «-.«£_'
1.24 4,a4,0b4

8-98
TToT"
1__0__

""S^ £££*-£.... 6.31U.550 5.982.753 5.607.202 331.797 5-55 707.3^ 12.61

"SStES-*..-!!-.!-.*-.... 2.068.2S2 2.176.230 ..MMC. -M7.9* -*.# -a6.57« -9.*
orporate stocks, including
stocks of Jed. Reserve Danks.
199.290
Total securities
42.053.273
T O W seoun^i........
- A l l rt^
Total loans and securities.. I 3 } - g - j B
urrency and coin..
*»»|»g«

^
^
_ j,_
,g_1).,006
196.860
185.284
Z j ^ g MS
i^w
44.292.2-5 42.035.3-3 -2.239.012 -5.0b
17.950
Mb tol'qg flL«_.6b*J - 1 . 7 9 M ? 9 - 2 . 2 3
4.232.6-4
*;%_S
i 5/ff* =feg_ -HtM
727515
ii . S a_ 12 774.343
56,917
.44
238.786

7.56
jjy
•«*
5-69
533"
1.87

s r ^ ' & J i s : . ^ H : ^ £ & % 'fcS-te - • & & -19,33—252,832

s____

Total cash, balances with
other banks, including re-

s£5K«iXi™

TOffi

^g ^s.a HMa-1 •_« «SJSS—

Total".setsi!!'.!!".*.*."..*.
\J
Revised.
103.938.600 108.132.743 99.014.967 --M94.143 -3.88 4.923.633 4.97

~

2

-

$11,921 million, aa increase of nearly 4 percent since December, and 24 percent
in the year. The percentage of loans and discounts to total assets on April 20,
1953 w a s 35.12 in comparison with 33akO on December 31 and 32.67 in March 1952.
Investments of the banks in United States Government obligations on April 2D,
1953 aggregated $33,471, million (including $21 million guaranteed obligations), a
decrease of $2,465 -million, or 7 percent, since December. These investments were
32 percent of total assets, compared to 34 percent in March a year ago. Other bonds,
stocks and securities of $8,582 million, which included obligations of States and
political subdivisions of $6,315 million, were $226/ million, or nearly 3 percent,
more than in December, and $505 million, or 6 percent, more than held in March last
/

year. The total securities held amounting to $42,053 million was $2,239 miHion,
or 5 percent, below the amount reported at the end of December last.
Cash of $1,290 million, reserve with federal Reserve banks of $13,013/j_d4Mon
and balances with other banks (including cash items in process of collection) of
$9,678 million, a total of $23,981 million, showed a decrease of $2,419 million, or
more than 9 percent, since December.
Tlie

ifMPE capital stock of the banks on April 20, 1953 was $2,25§ million,

including less than $6,, million of preferred stock. Surplus was $3,358ymillion
„ ,

..

S—>fm

divided profits $l,301*-mi~liion and capital reserves $264-million, or a total of

$4,923 million. Total capital accounts of $7,178 million, which were 7.6l perce
of total deposits, were $118 million more than in December when they were 7.H
percent of total deposits.

Cmtl

TREASURY DEPARTMENT
Washington, D. 0.

% A ^ '
-^V77V<^

EELEASE MOBBING KEWSPAPEHS

*?2±yyy*~3 M-s 7^

The total assets of national banks on April 20, 1953 amounted to $103,939 M «, b&i

million, it was announced today by Comptroller of the Currency R^M. Gidney. The

returns covered the 4,890 active national banks in the United States and posses

The assets were $4,19^ million below the amount reported as of the end of 1952,

were $4,9^ million over the aggregate reported as of March 31, 1952, the date o
the spring call a year ago.

The deposits of the banks on April 20 this year were $94,336, million, a decrea

of $4,922 million, or 5 percent, since December, but an increase of over $4,019

miHioh", or 4i percent, in the year. Included in the recent deposit figures ^we

demand deposits of individuals, partnerships and corporations of $53»7l4 miHien

which decreased $2,969, million, or more than 5 percent, since December, and ti

deposits of individuals, partnerships and corporations of $21,882,million, an i

crease of $365 million. Deposits of the United States Government of $2,376 mill

were down $862 million since December; deposits of States and political subdivi

of $6,451, million showed an increase of $180, million; and deposits of banks a

to $8,42^ million, a decrease of $1,492,mx3rllren, or 15 percent, since Decembe
Postal savings were $13million and certified and cashiers' checks, etc., were
$1,471^million.
Net loans and discounts on April 20, 1953

we e

* $36,567 mUMon, an increase of

$447 million since December, but $4,2l4y million, or 13 percent, above the Marc
1952 figure. Oommercial and industrial loans as of the recent call date were

$16,785-million, a decrease of $HCj million since December. Loans on real estat

$8,392 million were up li percent in the period. All other loans, including con

sumer loans to individuals, loans to farmers, to brokers and dealers and others

the purpose of purchasing and carrying securities, and to banks, etc., amounted

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Monday, June 29, 1953-

IINGTON, D.C.

H-17

The total assets of national banks on April 20, 1953 amounted
to $103,939,000,000, it was announced today by Comptroller of the
Currency Ray M. Gidney. The returns covered the 4,390 active
national banks in the United States and possessions. The assets
viere $4, 194,000.000 below the amount reported as of the end of
1952, but were $4,924,000;000 over the aggregate reported as of
March 31, 1952, the date of the spring call a year ago.
The deposits of the banks on April 20 this year were
$94,336,000,000, a decrease of $4,922,000-000, or 5 percent, since
December, but an increase of over $4,019.,000,000, or 4^- percent, in
the year. Included in the recent deposit figures were demand
deposits of individuals, partnerships and corporations of
$53,714,000,000, which decreased $2,969,000,000, or more than
5 percent, since December, and time deposits of individuals,
partnerships and corporations of $21,882,000,000, an increase of
$3o5;000,000. Deposits of the United States Government of
$2,376,000,000 were down $862,000,000 since December; deposits of
States and political subdivisions of $6,451,000,000 showed an
increase of $180,000,000; and deposits of banks amounted to
$8,429,000,000, a decrease of $1,492,000,000, or 15 percent, since
December. Postal savings were $13,000,000 and certified and
cashiers' checks, etc., were $1,471,000,000.
Net loans and discounts on April 20, 1953 were $36,567,000,000,
an increase of $447,000,000 since December, but $4,214,000,000, or
13 percent, above the March 31, 1952 figure. Commercial and
industrial loans as of the recent call date were $16,785,000,000,
a decrease of $110,000,000 since December. Loans on real estate of
$8,392,000,000 viere up 1^ percent in the period. All other loans,
including consumer loans to individuals, loans to farmers, to
brokers and dealers and others for the purpose of purchasing and
carrying securities, and to banks, etc.', amounted to $11,921,000,000.
an increase of nearly 4 percent since December, and 24 percent in
the year. The percentage of loans and discounts to total assets on
April 20, 1953 was 35.13 in comparison with 33-^0 on December 31
and 32.67 in March 1952.
Investments of the banks in United States Government
obligations on April 20. 1953 aggregated $33,471,000,000 (including
or
total
^21,000,000
7 percent,
assets,
guaranteed
compared
since December.
to
obligations),
34 percent
These in
a
investments
decrease
March a year
of
were
$2,465,000,000,
ago.
32 percent
Other of

3P Q
K^- L. Xmf

- 2bonds; stocks and securities of $3,582,000,000, which included
obligations of States and political subdivisions of $6,315,000,000,.
were $226,000,000, or nearly 3 percent, more than in December, and
$505,000,000, or 6 percent, more than held in March last year.
The total securities held amounting to $42,053,000,000 was
$2,239,000,000, or 5 percent, below the amount reported at the end
of'December last.
Cash of $1,290,000,000, reserve with Federal Reserve banks of
$13,013,000,000 and balances with other banks (including cash items
in process of collection) of $9,678,000,000, a total of
$23,981,000,000, showed a decrease of $2,419,000,000, or more than
9 percent, since December.
The capital stock of the banks on April 20, 1953 was
$2,255,000,000, including less than $6,000,000 of preferred stock.
Surplus was $3,358,000,000, undivided profits $1,301,000,000
and capital reserves $264,000,000, or a total of $4,923,000,000.
Total capital accounts of $7,178,000,000, which were 7-6l percent
of total deposits, were $11.8,000,000 more than in December when
they were 7.11 percent of total deposits.

Statement showing comparison of principal items of assets and liabilities of active national
banks as of April 20, 1953, December 31, 1952, and March 31, 1952
(In thousands of dollars)

ftesnber of banks................
ASSETS
dimmercial and industrial loans
Loans on real estate.
All other loans, including
overdrafts
Total gross loans
Less valuation reserves...
Net loans
U. S. Government securities:
Direct obligations
Obligations fully guaranteed.
Total U. S. securities......
Obligations of States and
political subdivisions
Other bonds, notes, and debentures.
Corporate stocks, including
stocks
of Fed. Reserve banks.
Total securities
Total loans and securities..
Currency and co in.
Reserve with Fed. Reserve Banks
Balances with other banks
. Total cash, balances with
other banks, including reserve balances and cash items
in process of collection
Other assets...
Total assets

Apr. 20,
1953
4,890

Dec. 31,
1952
4,916

Mar. 31,
1952
4,933

$16,785,508 1/^16,895,489 $15,646,240
8,391,963 1/ 8,264,630
7,624,519

Increase or decrease
since Dec. 31, 1952
Amount
Percent
-26
-.53

Increase or decrease
since Mar. 31. 1952
Amount
Percent
-.87
-43

-$109,981
127,333

-.65
1.54

$1,139,268
767,444

7.28
10.07

11,920,912 9.569.771 443,062 3.86 2.351.141
11,477.850
37,098,383
32,840,530
36,637,969
460,414
531.577
487,788
518,296
13,281
36,119,673
32,352.742
447.133
36,566f8Q6

1.26
2,56
1,24

4,257,853
43,789
4,214,064

24.57
12.97
8.98
13.03

-6.88
39.99
-6.86

-498,439
11,613
-486.826

-1.47
120.09
-1>43

5.55

707,348

12.61

-4.96

-216,578

-9.48

33,449,868
21,283
33.471.151

35,921,239
15,203
35,936.442

6,314,550

5,982,753

5,607,202

2,068,282

2,176,230

2,284,860

199^290
42,053.273
78,620,079
1,289,432
13,013,129
9.678.259

196.860
44,292.285
80.411.958
1,446,134
12,956,212
11.997.057

23,980.820
1,337.701
103,938.600

26,399,403
1,321,382
108,132,743

33,948,307 -2,471,371
6^080
9,670
33.957.977 -2.465.291
331,797
-107,948

185,284
2,430
1.23
42.035.323 -2,239,012 -5.06
74.388.065 -1,791.879
•2.23
1,217,406
-156,702 -10.84
12,774,343
56,917
•44
9,325.429 -2,318,798 -19.33

14.006
17.950
4.232.014
72,026
238,786
352.830

23,317.178 -2T418T583
1,309,724
16,319
99,014,967 -4,194.143

663.642
27,977
4.923.S33

-Q.16
1.23
-3.88

7.56

.04
5.69
5.92
1.87

2.85
•C.J.4-

4.97

1/ Revised.

CO
CO
O

Comparison of principal items of assets and liabilities of national banks - continued
(In thousands of dollars)
Increase or decrease
Increase or decrease
Apr. 20,
Dec. 31,
Mar0 31,
since Mar~ 31, 1952
Since Dec. 31, 1952
Percent : Amount
1953
Amount
1952 '
1952
LIABILITIES
Deposits of individuals,partnerships, and corporations:
$56,682,902
$5o,6o6,l89
-5o24 $3,107,608
Demand
$53,713,797
-$2,969,105
21,517,160
1,718,880
Timec...*.,....,
21,881,788
364,628
20,162,908
1.69
3,238,050
-1,301,413
Deposits of U. S. Government.... 2,376,278
-861,772
3,677,691
-26.61
13,588
784
Postal savings depositso.*.*...*
13,423
-165
12,639
-1.21
Deposits of States and political
6,271,676
179,601
2.86
391,788
6,451,277
6,059,489
subdivisions*•...».o«.«.......
9,920,522
8,428,765
-1,491,757
-43,009
8,471,774
-15*04
Deposits of banks.f,• *>...»o«•>.. • •
Other deposits (certified and
1,613,878
-8.86
144,358
1,326,451
-143,069
cashiers1 checks, etc.)....... 1,470,809
,
•
^
5
5
"
4,01o
,"995"
9^,257,776
-It,921,63?"
Total deposits...
"
"96^77Kr
Bills payable, rediscounts, and
other liabilities for
626,840
75,921
247,937
550,919
725.65
378,903
borrowed money*.....••••••••••.
1,797,933
1,739,825
1,658,687
58,108
3*34
139,246
Other liabilitiesooo.».....*«,..«
Total liabilities, excluding 96,760,910
101,073,522
92,223,765
-4,312*612
-4.27
4,537,145
capital accounts**c.*.o».
CAPITAL ACCOUNTS
Capital stocks
5,666
5,619
7,007
-47
-.83
-1,388
rTexerreo^.oe.o.eoooo.........
2,24 *223
2.219*186
2,173,744
1»35
30,037
JhmkJl
Common*... .. • ••«>•.» e ........0 . "272?!
29,990
2,180,7ST
i otaj...,-.. a ».o». ... .o.......
T35"
HTX091
3,334,218
3,123,756
'2T97W
234,204
7«:
Surplus. *•••.««...
3,357,960
1,225,731
1,226,047
6.13
75,146
74,830
60IO
Undivided profits............... 1,300,877
274,420
260,648
•10^409
-3.79
3,363
1*29
Reservese....... ;*>«.«••».o««.«.«
2o£|,011
Total surplus, profits,and ~
4,834,369
4,610,451
88,479
I083
312,397
reserves*
<•••.«*•• 4,922,848
6,791,202
118,469"
3%6,m
Total capital accounts.«,«. 7,177,590"
Total liabilities and
108,132,743
99,014,967
-4,194.143
-3.88 4,923.633
capital accounts«,«..«.». 103,938,600
"D*-**V*^\ *-»+'
D
v i
«*.**.<£*
~" "
~^
^~—
* ~~*^~—^*m*m^aM~mmim^aama*m—ma
Percent
Percent
RATIOS;
Percent"
U»S.Gov't securities to total
34.30
33*23
assets*
32.20
33a40
32.67
NOTE: Minus sign denotes decrease*
Loans & discounts to total assets
35.18
7.11
7.52
ro
Capital accounts to total deposits
7©6l

w

12EE22E

m

;

A

A

mmm mmmmm

mmmm

mmmmm a

110

H-/fO
tWIMkM mRKXSEI \W4AVmfmW§

»• mi 91-^asr $i©&»xsF3f %>AII* to lie dated *&2_r t
rjj ipw

tpamF^mmmajM

uifiiiPHfHPm^^

«PwNwnpe»

•»

wrap *»npiww»

vW|p

1.
*p

19$3* which «©re offered as June* 3$,

total mpiltfiifl £or

12,191,914,000
09t4#OOQ «g&i*re4j3»
full at the

f£«bi§

£.107$

fil#t

m\«m$

?f©

mttmm

•

Mxl Dor mt Wm 1m prime mmm

#

14,3>0,000

MhMOtaoo
ss*5ia*oo$
mg9m§mo

)

14,350,000
t000

,000
)&flfcOtt

iai>,5ia,a;>D
10,012/xX)
City

10,012,000
37,253,000

,, .SMfftiB
TOTAL

$2,191,93^000

*

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C
v5

RELEASE MORNING NEWSPAPERS,
Tf.e sday. June 30. 1953.

H-180

The Treasury Department announced last evening that the tenders
for £"1-500.000.000, or thereabouts, of 91-day Treasury bills to be
dated"July'2 and to mature October 1, 1953, which were offered on
June 25, were opened at the Federal Reserve Banks on June 29.
The details of this issue are as follows:
Total applied for - $2,191,93^,000
Total accepted
- 1,500,254,000 (includes $203,894,000
entered on a ncr±-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.468 Equivalent rate of discount approx.
Range of accepted competitive bids: 2.107^ per annum
- 99.524 Equivalent rate of discount approx
1.353$ per annum
Low
- 99.457 Equivalent rate of discount approx
2.148^ per annum
(70 percent of the amount bid for at the low price was accepted)
High

Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San FranciscoTOTAL

Total
Accepted

Total
Applied

$ 14,350.000
1,649,653 >000
^\ r»

581,000

JO, 050,000

44. 076 000
15, 351 000
23, 5l8 000
;
185, 954,000
49 012,000
10, 037.000
45, 253,000
37; 099.000
$2/191,934,000
74;
0O0

14,350.000
993,553,000
2^,331,000
43 150,000
12,576.000
27,501,000
175,513,000
44-524.000
10,012,000
45.037 000
37,253,000
$1,500,254,000
73 099•000

$

f*\ *-\ m

J^4

- 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 42 and 117 (a) (l) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 194l, 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.

335

- 2-

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement

will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the accept-

ance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price

from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on July 9. 1953 , ln cash or other immediately available
funds or in a like face amount of Treasury bills maturing July 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 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

11Q
\JKJKJ

TREASURY
JURY DEPARTMENT
Washington

,
ri

/

, f*->- J
~~ fJ}^ r

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 2, 1953
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 July 9. 1953 j in
the amount of $1.400.812.000

3 to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated July 9, 1953 3 and will mature
October 8, 1953

isg^

,• 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
Daylight Saving
closing hour, two o'clock p.m., Eastern/^kssxsbasi: time, Monday, July 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 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 Branche
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

Kj

RELEASE MORNING NEWSPAPERS,
Thursday, July 2, 1953-

H-181; -

The Secretary of the Treasury, by this public notice, invites
tenders for $1,500,.OCX), 000, or thereabouts, of 91-day Treasury
bills, for cash and in exchange for Treasury bills maturing
July 9, 1953, in the amount of $1,400,812,000, to be issued on
a discount basis under-.,competitive and non-competitive bidding as
hereinafter provided.,q The bills of this series will be dated
July 9, 1953, and will.mature October 8, 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 Daylight Saving
time, Monday, July 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 on the basis of,100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is
urged that tenders be made.-on the printed forms and forwarded in the
special envelopes which, will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to
submit tenders except for their own account. Tenders will be
received without deposit, from Incorporated banks and trust
companies' and from .responsible and recognized dealers in investment
securities. Tenders from others must be accompanied by payment of
2 percent of the face amount of Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of payment by
an incorporated .bank or trust -company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasairy 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 tenders
one
bidder
will
be accepted
in
full
at
average
price
accepted
completed
(in three
at
decimals)
the Federal
in accordance
of accepted
Reserve
with
competitive
Bank
the
onbids
July
bids.
must
9, the
1953>
beSettlement
made
in or
cash
for
or

- 2other immediately available funds or in a like face amount of
Treasury bills maturing July 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 new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies)issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which
the return is made, as ordinary gain or loss.
Treasury Department Circular No. 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

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, July 1, 1953.

H-182

Secretary of the Treasury Humphrey announced today that on
Monday, July 6, the Treasury will offer for cash subscription
$5-1/2 to $6 billion Tax Anticipation Certificates of Indebtedness,
dated July 15, 1953, maturing March 22, 1954. and receivable at
par plus accrued interest to maturity in payment of income taxes
due on March 15, 1954. The new Certificates may be paid for by
credit in Treasury tax and loan accounts.
The interest rate and other details of the offering will be
announced later this week.
This offering is intended to take care of the Treasury's cash
needs for the first quarter., of the new fiscal year. Under present
methods of collecting corporate income taxes, about 70 percent of
the corporate tax payments this year were made in the JanuaryJune period, and only 30 percent will be received in the JulyDecember period. Thus, the Treasury has to borrow substantial
amounts in the current half year, which can be repaid out of tax
payments next March and June. For the same reason, substantial
amounts of corporate funds will be available this half year for
investment in this security. The present issue of tax
anticipation certificates is being sold in lieu of Tax
Anticipation Bills due next March.

oOo

11Q
KA,

KJ

W

F O E Mffiaftftfllt «?.*_»*.
AT «
1 E B H E S D A Y . JtfUT A

M»

/•/- /if 3
that the

budget defielt to tmm ffcMit jwar 4matfa%i £®®4 m9 mm,
mmm 4% 3?^ ^^J/^^^^%i ww $£*• > I *; oa *j <t*d%
and ^spendituros « ?-/, 6 <* 7, ***/?'*
Other Italia of tto f iMftl »••* ^SNI *®|K**t will &*
available Thursday.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

FOR RELEASE AT 4 P.M.
Wednesday, July 1, 1953.

H-I83

The Treasury today announced that the
budget deficit for the fiscal year ended
June 30, 1953, was $9,389,000,000. Net
receipts were $65,218,000,000, and expenditures
$74,607,000,000.
Other details of the fiscal year end
report will be available Thursday.

0O0

141

Comparative Statement
Fiseal
(Based upon
In

of Budget Receipts and Expenditures
Years 1952 and 1955
Attachment 1
Daily Treasury Statements)
millions of dollars
Actual
Estimated
Classification
Fiseal Year Fiscal Year F. Y. 1955
1952
1955
(Jan.,1955
Budget)

Receipts;
Internal Revenue:
Income tax withheld & social security taxes ...
Income tax, other
Miscellaneous internal revenue
Taxes on carriers and their employees
Customs
•
Miscellaneous receipts:
Railroad unemployment insurance contributions
for administrative expenses
Surplus property (act Oct. 5, 1944)
Other miscellaneous receipts
Total budget receipts
Deduct:
Appropriation to Federal old-age & survivors
insurance trust fund
•
Refunds of receipts
Net budget receipts
Expenditures:
Legislative Branch
The Judiciary
•
President of the United States:
Executive Office
•
Special programs:
Defense production expansion
Mutual Security Program:
Economic and technical assistance
Military assistance
Other
•
•
*
Other foreign assistance
Other
Agriculture Department:
Agricultural Research Administration
Farmers' Home Administration
•
Forest Service
Production & Marketing Administration:
Commodity Credit Corporation
Other
Rural Electrification Administration
Soil Conservation Service
Other
Atomic Energy Commission
Civil Service Commission
•
Commerce Department:
Civil Aeronautics Administration & Board
Maritime activities
•
Public Roads Bureau
Other

$22,148
55,026
9,726
755
551

$25,554
55,101
10,870
626
615

$25,219
56,505
10,690
650
590

10
195
1,611

10
145

11
179

67,999

72,455

75,208

5,569
2,502

4,086

4,000
2,511

62,129

65,218

68,697

61
27

60
27

69
28

i_5§L

9

9
146

87

521

2,191
2,228
47
191
22

1,724)
5,760)
47)
15
6

106
202
87

76
211
95

80
214
91

a/ 159
442
245
59
254
1,648
552

1,888
525
259
62
a/ 18
1,802
546

806
509
255
66
145
2,000
545

172
255
454
117

161
208
550
108

171
255
576

5,506
22
15

U6

242

Comparative Statement of Budget Receipts and Expenditures
Fiscal Years 1952 and 1955 -- continued

Classification

Expenditures — continued
Defense Department:
Office of the Secretary of Defense ....
Air Force
Army:
Military function!
Civil functions
,
Navy
Not distributed in Budget
...<
Economic Stabilization Agency
•
,
Export-Import Bank of Washington .........
Federal Civil Defense Administration
General Services Administration:
Strategic and critical materials .......
Other
,
Health, Education, & Welfare Department:
Office of Education
Public Health Service
Social Security Administration .........
Other
Housing & Home Finance Agency:
Office of Administrator:
Federal National Mortgage Association
Other
Federal Housing Administration
Home Loan Bank Board
Public Housing Administration . • • • •
Interior Department:
Reclamation Bureau
Other
Justice Department
Labor Department
•
Post Office Department (deficit)
Railroad Retirement Board
Reconstruction Finance Corporation .......
State Department
Tennessee Valley Authority
Treasury Department:
Coast Guard
Customs Bureau
Fiscal Service:
Interest on the public debt
Other
Internal Revenue
Other
•
Veterans* Administration
Other agencies
Total budget expenditures
Budget deficit
a/ Excess of credits, deduct.

Attachment 1
Page 2
Actual
Estimated
cal Year Fiscal Year F. Y. 1955
1952
1953
(Jan.,1955

402
32,55©

14,882

15,564
784
9,961

16,495
792
11,776

91
25
54

*64
112
64

15,860
799
10,900
700
71
82
81

847
240

912
185

1,©70
191

155

229
272
1,566
46

225
288
1,578
49

475
41
a/7
a/16
"122

74
a/45
a/ 18

459
52
a/58
a/ 18
84

256
529
198
255
740
780
a/217
260
181

225
555
172
500
660
666
ml 150
266
189

255

242

1,217
44

415
15,585

226
590
171
292
666
a/ 56
278
252
244
41

45

40

5,859
156
561
22
4,952
255

6,508
224
562
20
4,555
227

66,145

74,607

74,595

4,017

9,589

5,896

6,450
165
553
20
4,584
256

343

Changes in Public Debt

Attachment 2

(in millions of dollars)

Classification

Marketable obligations

Fiscal
Year
1??3
a/ +$6,866

Fiscal
Year
1Q?2
+$2,512

U. S. savings bonds c/ +170

+25

Treasury savings notes - 2,164

- 1,209

Investment series bonds Series B-I975-8O

-755

-478

Special issues +2,799

+ 5,086

All other obligations +49

-50

Total

a/
""

+ 6.966

+ 5,885

Takes into account issuance of $921 million of l-l/2$ marketable
Treasury notes in exchange for investment series bonds issued
on April 1, 1951 ($714 million of this was exchanged by Federal
Reserve System).

b/ Gives effect to exchange of $1,174 million involving four issues
""
of bank restricted, marketable Treasury bonds for a like amount
of investment series bonds; also takes into account issuance of
$2,068 million of l-l/2# marketable Treasury notes in exchange
for investment series bonds issued on April 1, 1951 ($2,000
million of this was exchanged by Federal Reserve System).
c/ Takes into account $417 million of Series F and G bonds
exchanged for 5-1/4$ marketable bonds issued on May 1, 1955*

V.' f

- 3The Treasury closed the fiscal year with a general fund balance
of $4,670,000,000, or $2,299,000,000 less than the balance a year ago.
This summary statement is followed by detailed information as to
receipts and expenditures by departments and agencies and other cate-

gories as well as a listing of the January Budget estimates for fiscal 1953
by categories and agencies.

Note: All figures are rounded to nearest million

i/az
KM

T«j

- 2 -

The budget deficit announced Wednesday night was $3,493,000,000
higher than estimated in the January Budget and compares with a deficit
of 14,017,000,000 in the fiscal year 1952.
Budget receipts of the government for the fiscal year ended June 30,
1953 were $65,218,000,000 as against $62,129,000,000 in the previous
fiscal year. Expenditures amounted to $74,607,000,000 in the fiscal
year just closed as compared with $66,145,000,000 in fiscal 1952.
A comparison of budget results for the fiscal years 1953 and 1952
is shown below (in millions):
Fiscal Fiscal
Year 1953
Receipts $65,218 $62,129
Expenditures ......

74,607

Year 1952

66,145

Deficit 9,389 4,017
The gross public debt on June 30, 1953, amounted to $266,071,000,000,
an increase of $6,966,000,000 during the year* A comparison of the changes
in the various classes of the public debt is shown on an attached table.
The financing of the budget deficit during the fiscal year is set
forth in the table below:
(In millions)
Increase in public debt $6,966
Reduction in general fund balance
Excess of receipts in trust
fund accounts, etc
•
Budget deficit 9,389

2,299
125

c4b

TREASURY DEPARTMENT
Washington

FOR RELEASE IN FM NEWSPAPERS,
Thursday, July 2, 1953

H-184

Treasury Secretary Humphrey today made the following statement
in comment on the fiscal year 1953 report being made public in detail
today:
"The budget deficit for the fiscal year 1953 amounting to
$9,389,000,000 was the highest in history except for the two World
War periods. This was more than double last year's deficit, and was
f>3,493,000,000 higher than estimated in the January Budget.
"3udget expenditures of $74,607,000,000 during the fiscal year
1953 reflected the continued rising tide of defense and other spending
under plans and programs of the preceding administration. These expenditures were the highest on record except for the peak war years, and
exceeded the January Budget estimate by $14,000,000. Although budget
receipts fell $3,479,000,000 below the January Budget estimate, the total
of $65,218,000,000 set an all-time record — $3,090,000,000 higher than
in fiscal 1952, the previous high year.
"These figures emphasize the need for continued strenuous efforts
to get our fiscal house in order.
"Difficulties of this size cannot be cured overnight. To bring

this situation under control will take many months of vigorous cooperative
effort on the part of the administration, the Congress and the people.
Only then can we reach our goal of security, both economic and military."

TREASURY DEPARTMENT
Washington

FOR RELEASE IN PM NEWSPAPERS,
Thursday, July 2, 1953

H-184

Treasury Secretary Humphrey today made the following statement
in comment on the fiscal year 1953 report being made public in detail
today:
"The budget deficit for the fiscal year 1953 amounting to
$9,389,000,000 was the highest in history except for the two World
War periods. This was more than double last year's deficit, and was
$3,493,000,000 higher than estimated in the January Budget.
"Budget expenditures of $74,607,000,000 during the fiscal year
1953 reflected the continued rising tide of defense and other spending
under plans and programs of the preceding administration. These expenditures were the highest on record except for the peak war years, and
exceeded the January Budget estimate by $14,000,000. Although budget
receipts fell $3,479,000,000 below the January Budget estimate, the total
of $65,218,000,000 set an all-time record — $3,090,000,000 higher than
in fiscal 1952, the previous high year.
"These figures emphasize the need for continued strenuous efforts
to get our fiscal house in order.
"Difficulties of this size cannot be cured overnight. To bring

this situation under control will take many months of vigorous cooperative
effort on the part of the administration, the Congress and the people.
Only then can we reach our goal of security, both economic and military."

- 2-

vJtG

The budget deficit announced Wednesday night was $3,493,000,000
higher than estimated in the January Budget and compares with a deficit
of $4,017,000,000 in the fiscal year 1952.
Budget receipts of the government for the fiscal year ended June 30,
1953 were $65,218,000,000 as against $62,129,000,000 in the previous
fiscal year. Expenditures amounted to $74,607,000,000 in the fiscal
year just closed as compared with $66,145,000,000 in fiscal 1952.
A comparison of budget results for the fiscal years 1953 and 1952
is shown below (in millions):
Fiscal Fiscal
Year 1953
Receipts $65,218 $62,129
Expenditures

74,607

Year 1952
66,145

Deficit 9,389 4,017
The gross public debt on June 30, 1953, amounted to $266,071,000,000,
an increase of $6,966,000,000 during the year. A comparison of the changes
in the various classes of the public debt is shown on an attached table.
The financing of the budget deficit during the fiscal year is set
forth in the table below:
(In millions)
Increase in public debt $6,966
Reduction in general fund balance
Excess of receipts in trust
fund accounts, etc..
•
Budget deficit 9,389

2,299
125

Km! "T KJ

- 3The Treasury closed the fiscal year with a general fund balance
of $4,670,000,000, or $2,299,000,000 less than the balance a year ago.
This summary statement is followed by detailed information as to
receipts and expenditures by departments and agencies and other categories as well as a listing of the January Budget estimates for fiscal 1953
by categories and agencies.

Note: All figures are rounded to nearest million

Coraparative Statement
Fiscal
(Based upon
In
Classification

of Budget Receipts and Expenditures
Attachment 1
Years 1952 and 1955
Daily Treasury Statements)
millions of dollars
Estimated
Actual
Fiscal Year Fiscal Year F. Y. 1953

1952
Receipts>:
-^Sternal Revenue:
Income tax withheld & social security taxes ..
Income tax, other
Miscellaneous internal revenue
Taxes on carriers and their employees
Customs
•
Miscellaneous receipts:
Railroad unemployment insurance contributions
for administrative expenses
Surplus property (act Oct. 5, 1944)
Other miscellaneous receipts
Total budget receipts
. Deduct;
Appropriation to Federal old-age 8B survivors
insurance trust fund
Refunds of receipts
Net budget receipts •
Expenditures:
Legislative Branch
The Judiciary
President of the United States:
Executive Office
Special programs:
Defense production expansion
Mutual Security Program:
Economic and technical assistance
Military assistance
Other
,
Other foreign assistance
Other
Agriculture Department:
Agricultural Research Administration
Farmers » Home Administration
Forest Service
Production & Marketing Administration:
Commodity Credit Corporation
Other
Rural Electrification Administration
Soil Conservation Service
Other
Atomic Energy Commission
s Civil Service Commission
Commerce Department:
Civil Aeronautics Administration & Board
Maritime activities
Public Roads Bureau
Other

1955

$22,148
55,026
9,726
755
551

$25,554
55,101
10,870
626
615

$25,219
56,505
10,690
65O
590

10
195
l,6ll

10
145

67,999

72,455

11
179
lift?
75,208

5,569
2,502

4,086
5,151

4,000
2,511

62,129

65,218

68,697

61
27

60
27

69
28

IJg.

9
146

1

(Jan.,1953
Budget)

9
87

521

2,191
2,228
47
191
22

1,724)
3,760)
47)
15
6

106
202
87

76
211
95

80
214
91

a/ 159
442
245
59
254
1,648
552

1,888
525
259
62
a/ 18
1,802
546

806
509
255
66
145
2,000
545

172
255
454
117

161
208
550
108

171
255
576
116

5,506
22
15

50

Comparat1VP statement of Budget Receipts and Expenditures
Fiscal Years 1952 and 1955 -- continued

Classification

•^inditures — continued
"Defense department:
Office of the Secretary of Defense ....
Air Force
Army:
Military functions
Civil functions
Navy
Not distributed in Budget
Economic Stabilization Agency
Export-Import Bank of Washington
Federal Civil Defense Administration ....
General Services Administration:
Strategic and critical materials
Other
Health, Education, & Welfare Department:
Office of Education
Public Health Service
Social Security Administration
Other
Housing 8s Home Finance Agency:
Office of Administrator:
Federal National Mortgage Association
Other
•
•
Federal Housing Administration
Home Loan Bank Board
•
Public Housing Administration
,
Interior Department:
Reclamation Bureau
•
Other
,
Justice Department
•
*] Labor Department
,
Post Office Department (deficit)
,
Railroad Retirement Board
Reconstruction Finance Corporation .......
State Department
Tennessee Valley Authority
Treasury Department:
Coast Guard
Customs Bureau
••••••
Fiscal Service:
Interest on the public debt
Other
Internal Revenue
Other
Veterans • Administration"!!!!!.!!!!!.!.!!!
* Other agencies
Total budget expenditures
B
%et dericit
\T bccess of credits, deduct "

Attachment 1
Page 2
Estimated
Actual
Fiscal Year Fiscal Year F. Y. 1953
1952
1955
(Jan.,1953
Budget)

402
12,550

410
14,882

415
15,585

15,564

16,495
792
11,776

15,860
799
10,900
700
71
82
81

784
9,96l

64

91
25
54

112
64

847
2i*0

912
185

1,070
191

155
285
1,217

229
272
1,566
46

225
288
1,578
49

569
74
a/ 45
a/ 18

459

44
475
4l
a/7
a/16
"122
256
529
198
255
740
780
a/ 217
260
181
255
45

225
555
172

500
660
666
2/ 150
266
189
242

4o

Z52
a/ 58
ml 18
84
226
590
171
292
666
694
a/ 56
278
252
244
41

5,859
156
561
22
4,952
255

6,508
224
562
20
4,555
227

66\l45

74,607

74,593

4,017

9,389

5,896

6,450
165
555
20
4,584
256

Changes in Public Debt

Attachment 2

(in millions of dollars)

Classification

Marketable obligations

Fiscal
Year
1955
a/ +$6,866

Fiscal
Year
•Iflg
b/ +$2,512

U. S. savings bonds c/ +170 +25
Treasury savings notes - 2,164 - 1,209
Investment series bonds Series B-1975-80

-755

-478

+ 6*966

+ 5,885

Special issues +2,799 + 5,086
All other obligations +1+9 -50
Total

a/ Takes into account issuance of $921 million of l-l/2$ marketable
Treasury notes in exchange for investment series bonds issued
on April 1, 1951 ($7l4 million of this was exchanged by Federal
Reserve System).
b/ Gives effect to exchange of $1,174 million involving four issues
of bank restricted, marketable Treasury bonds for a like amount
of Investment series bonds; also takes into account Issuance of
$2,068 million of l-l/2# marketable Treasury notes in exchange
for investment series bonds issued on April 1, 1951 ($2,000
million of this was exchanged by Federal Reserve System).
c/ Takes into account $417 million of Series F and G bonds
""
exchanged for 5-1/4$ marketable bonds issued on May 1, 1955.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
<*
V*'

IMMEDIATE RELEASE,
Thursday, July 2, 1953.

H-I85

Secretary Humphrey announced today that the Tax
Anticipation Certificates of Indebtedness which are to
be offered for subscription on Monday, July 6, will
carry an interest rate of 2-1/2 percent.

The amount of

the offering will be $5,500,000,000, or thereabouts.
Subscriptions from commercial banks for their own
account will be received without deposit.

Subscriptions

from all others must be accompanied by payment of 10
percent of the amount of certificates applied for.
Subject to the usual reservations, subscriptions
for amounts up to and Including $100,000 will be allotted
in full.

Subscriptions for amounts over $100,000 will be

allotted on an equal percentage basis but not less than
$100,000 on any one subscription.

The basis of the

allotments will be publicly announced when the allotments
are made.
In view of the large size of the issue, Federal
Reserve Banks will be prepared to act promptly on
requests for temporary increases in Treasury tax and loan
account authorizations.

0O0

354

3
If. PAYHESt
1. Payment at par and accrued interest, if any, for certificates allotted
hereunder must be mad© on or before July 1$, 19^3, or on later allotment, la
•very case where payment Is not so completed, the payment with application up
to 10 percent of the amount of certificates applied for shall, upon declaration
made by the Secretary of the Treasury in his discretion, be forfeited t® the
United States. Any qualified depositary will be permitted to make payment by
credit for certificates allotted to it for itself and its customers up to any
amount for which it shall be qualified in excess of existing deposits, when so
notified by the Federal Reserve Bank of its District.
V. GENERAL FRO VISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary at the treasury to the Federal Reserve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery
of the definitive certificates.
2. the Secretary of the treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Eeserve Banks.

0. M. HUMPHREY,
Secretary of the treasury.

355

- 2 »
they will be accepted at par plus accrued interest to maturity in payment of
income and profits taxes due on March 1$, 1954.
h. Bearer certificates will be issued in denominations of I1,000, $5,000,
110,000, #100,000 and |l,000f000. the esrtifiaates will not be issued la
registered form.
5* the certificates will be subject to the general regulations of the
treasury Department, now or hereafter prescribed, governing United States certificates.

in.

SUBSCRIPTION urn

kummws

1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Office of the treasurer of the United States, Washington. Oommereial
banks, which for this purpose are defined as banks accepting demand deposits,
may submit subscriptions for account of customers, but only the Federal Reserve
Banks and the Treasury Department are authorised to aet as official agencies.
Others than commercial banks will not be permitted to enter subscriptions except for their own account. Subscriptions from cdromercial banks for their own
account will be received without deposit. Subscriptions from all others must be
accompanied by payment of 10 percent of the amount of certificates applied for.
2* the Secretary of the treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount of certificates
applied for, and to close the books as to any or all subscriptions at any time
without not ice | and any action he may take in these respects shall be final.
Subject to these reservations, subscriptions for amounts up to and including
$100,000 will be allotted in full, and subscriptions for amounts over $100,000
will be allotted on an equal percentage basis to be publicly announced when
allotments are made, but not less than $100,000 on an? one subscription. Allotment notices will be sent out promptly upon allotment.

356

UNITED STATES OF AMERICA

2-.1/2 ?mmm

ttmsmi esatiFjeAtEs OF urastiDiigss OF

Bated and bearing interest from July 1$9 1953

SERIES G-1954

Bms Harsh 22, 1954

i®53 tHASimx \mimms9
Department Circular No, 925

Office of the Secretary,
Washington, July 6, 1953.

Fiseal Service
Bureau of the Public Debt
I. Off%Rim OF CERTIFICATES
1. the Secretary of the treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions from the people of the
United States for tax Anticipation Certificates of Indebtedness of the United
States, designated 2-1/2 percent treasury Certificates of Indebtedness of Series
0-1954. the amount of the offering is t5,50O#0O0#Q00, mr thereabouts.
XI. DISOBIPtlO!! OF 0SStIFICAtl$
1. the eertifieates will be dated July 15, 1953, and will bear interest
from that date at the rate of 2-1/2 percent per annum, payable with the principal at maturity on Harsh 22, 1954* they will not be subject to call for
redemption prior to maturity.
2. The income derived from the eertifieates shall be subject to all taxes,
now or hereafter imposed under the Internal Revenue Code, or laws amendatory or
supplementary thereto, the certificates shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter Imposed on the principal or interest thereof
by any State, or any of the possessions mt the United States, or by any local
taxing authority.
3. the eertifieates will be acceptable to secure deposits of public moneys.

357

RELEASE mmiW
NEWSPAPERS,
Sfonday, July 6 f 1953*
Secretary of the treasury Humphrey announced today the details of
a cash mttmrimg of 15,500,000,000, or thereabouts, of 2-l/t percent tax
Anticipation Certificates of Indebtedness to be dated July 15, 1953,
and to mature on Harsh 22, 1954. Bis new certificates will be accepted
at par plus accrued interest to maturity in payment of income and profits
taxes due on March 1$, 1954. Interest will be payable with the principal
at maturity on those certificates mot presented in payment of taxes.
Subscriptions from commercial banks for their own account will be
received without deposit. Other subscriptions must be accompanied by
payment of 10 percent of the amount of certificates applied for.
Subject to the usual reservations, subscriptions for amounts up to and
including 1100,000 w i n be allotted in full, and subscriptions for
amounts over §100,000 will be allotted on an equal percentage basis to
be publicly announced when allotments are made, bat not less than
§100,000 on any one subscription. The subscription books may be closed
at any time without notice.
Commercial banks and other lenders are requested to refrain from
making unsecured loans, or loans collateralized in whole or in part by
the eertifieates subscribed for, to cover the deposits which are required to be paid when subscriptions are entered.
Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Office of the treasurer of the United States.
Oommereial banks are requested to 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 eertifieates allotted Is
desired In another District.
the text of the official circular follows:

TREASURY DEPARTMENT
Information Service

RELEASE MORNING NEWSPAPERS,
Monday, July 6, 1953.

WASHINGTON, D.C.

H-186

Secretary of the Treasury Humphrey announced today the details
of a cash offering of $5,500,000,000, or thereabouts, of 2-1/2
percent Tax Anticipation Certificates of Indebtedness to be dated
July 15, 1953. and to mature on March 22, 1954. The new
certificates will be accepted at par plus accrued interest to
maturity in payment of income and profits taxes due on March 15>
1954. Interest will be payable with the principal at maturity on
those certificates not presented in payment of taxes.
Subscriptions from commercial banks for their own account will
be received without deposit. Other subscriptions must be
accompanied by payment of 10 percent of the amount of certificates
applied for. Subject to the usual reservations, subscriptions for
amounts up to and including $100,000 will be allotted in full, and
subscriptions for amounts over $100,000 will be allotted on an
equal percentage basis to be publicly announced when allotments are
made, but not less than $100,000 on any one subscription. The subscription books may be closed at any time without notice.
Commercial banks and other lenders are requested to refrain
from making unsecured loans, or loans collateralized in whole or
in part by the certificates saibscribed for, to cover the deposits
which are required to be paid when saibscriptions are entered.
Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Office of the Treasurer of the United States.
Commercial banks are requested to 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 certificates
allotted is desired in another District.
The text of the official circular follows:

- 1 UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES C-1954
Dated and bearing interest from July 15, 1953 Due March 22, 195^
1953 TREASURY DEPARTMENT,
Department Circular No. 925

Office of the Secretary
Washington,July 6,1953

Fiscal Service
Bureau of the Public Debt
i. OFFERING o$ CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority
of the Second Liberty Bond Act, as amended, invites subscriptions
from the people of the United States for Tax Anticipation
Certificates of Indebtedness of the United States, designated
2-1/2 percent Treasury Certificates of Indebtedness of Series C-1954.
The amount of the offering is $5,500,000,000, or thereabouts.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated July 15» 1953; and will bear
interest from that date at the rate of 2-1/2 percent per annum,
payable with the principal at matairity on March 22, 1954. They will
not be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject
to all taxes, now or hereafter imposed under the Internal Revenue
Code, or laws amendatory or supplementary thereto. The certificates
shall be subject to estate, inheritance, gift or other excise taxes,
whether Federal or State, but shall be exempt from all taxation now
or hereafter imposed on the 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 moneys. They will be accepted at par plus accrued interest
to maturity in payment of income and profits taxes due on March 15,
1954.
4. Bearer certificates will be issued in denominations of
$1,000, $5,000, $10;000, $100,000 and $1,000,000. The certificates
will not be issued in registered form,
5. The certificates will be subject to the general regulations
of the Treasury Department, now or hereafter prescribed, governing
United States certificates.

- 2III.

360

SUBSCRIPTION AND ALLOTMENT

1. Subscriptions will be received at the Federal Reserve
Banks and Branches and at the Office of the Treasurer of the
United States, Washington. Commercial banks, which for this purpose
are defined as banks accepting demand deposits, may submit subscriptions for account of customers, but only the Federal Reserve
Banks and the Treasury Department are authorized to act as official
agencies. Others than commercial banks will not be permitted to
enter subscriptions except for their own account. Subscriptions
from commercial banks for their own account will be received without
deposit. Subscriptions from all others must be accompanied by
payment of 10 percent of the amount of certificates applied for.
2. The Secretary of the Treasury reserves the right to reject
any subscription, in whole or In part, to allot less than the amount
of certificates applied for, and to clGse 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,
subscriptions for amounts up to and including $100,000 will be
allotted in full, and subscriptions for amounts over $100,000 will
be allotted on an equal percentage basis to be publicly announced
when allotments are made, but not less than $100,000 on any one
subscription. Allotment notices will be sent out promptly upon
allotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for
certificates allotted hereunder must be made on or before July 15*
1953; or on later allotment. In every case where payment is not
so completed, the payment with application up to 10 percent of the
amount of certificates applied for shall, upon declaration made by
the Secretary of the Treasury in his discretion, be forfeited to
the United States. Any qualified depositary will be permitted to
make payment by credit for certificates allotted to It for itself
and its customers up to any amount for which it shall be qualified
in excess of existing deposits, when so notified by the Federal
Reserve Bank of its District.
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks
are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
Districts, to issue allotment notices, to receive payment for
certificates allotted, to make delivery of certificates on full-paid

- 3subscriptions allotted, and they may issaie interim receipts
pending delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from
time to time, prescribe supplemental or amendatory rules and
regulations governing the offering, which will be communicated
promptly to the Federal Reserve Banks.

G.M. HUMPHREY
Secretary of the Treasury,

oOo

^c o

H- ft 7

RKLE13K HQRHINS JBfSPAPffiS,
7 19

jauJ&r » &-

The treasury Departiseni announced last evening that the tenders for $1,500,000,000,
or t^x»@abouts, of 91-day treasury bills to he dmtmd July 9 and to mmtwtm Ottobst 8,
1953, ishieh were offered on July 2, -mm ©pensd at tte Fsdsral Eeserve Banks on ,Tuly
$b® details of this Issue are as follows:
total affiled for - |2# M5,fli§f000
total accepted
~ 1,500,174,000

(includes $225,471,003 entered on a
non-competitive basis and accepted In
full at the average pries shown below)
Average ptlmm
- 99.493 tq^**3*ttt rats of dlaeomit approx, 2.007$ per annua
Range of accepted competitive bids: (Excepting one tender of |200,000)
- 99*109 lsj*lartX»«* rats of d U s s M t mpprmn* 1*9S2# mm
* 99#486
*
e s s
»
g#033g •

Low
(76

of tfeus « w m t %%d for at the low prios

total

fotsl

District
Boston
1mm fork
Cleveland
Atlanta
0hi«ag@
St. Louis
Kansas City
Dallas

I 27,743,000
'1,501, 015,000
42,251,000
30,162,000
11,369,000
as,04?,ooo

m%39&9om
35,875,000
10,186,000
5O,llt#000
45,531,000
64,199*000
f0fj& §2,165,010*000

#

27*403,000
976*675,000
26,761,000
23,862,000
11,034,000
27,317,000
2aif436,000
25,550,000
10,086,000
48,432,000
42,419,000

•1,500,174,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

G MORNING NEWSPAPERS,
RELEASE
Tuesday, July 7, 1953-

H-187

The Treasury Department announced last evening that the tenders
for $1 500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 9 and to mature October 8, 1953, which were offered on
July 2, were opened at the Federal Reserve Banks on July 6.
The details of this issue are as follows:
Total applied for - $2,165,888,000
Total accepted
- 1,500,174,000 (includes $225,471,000
entered on a non-competitive
basis and accepted In full
at the average price shown
below)
Average price
- 99.493 Equivalent rate of discount approx.
2.007$ per annum
Range of accepted comoetitive bids: (Excepting one tender of
$200,000)
High - 99-499 Equivalent rate of discount approx.
1.932$ per annum
Low
- 99.486 Equivalent rate of discount approx.
2.033$ per annum
(76 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 27,743,000 $ 27,403,000
New York
1,581,015,000
Philadelphia
42,253-000
Cleveland
30.162,000
Richmond
11.369,000
Atlanta
28,047,000
Chicago
239,396,000
St. Louis
35,875,000
Minneapolis
10,186,000
Kansas City
50,112,000
Dallas
45,531,000
San Francisco
64,199,000
TOTAL $2,165,888,000 $1,500,174,000

Accepted
976,675,000
26,761,000
28,862,000
11,034,000
27,317,000
221,436,000
25,550,000
10,086,000
48,432,000
42,419,000
54,199,000

wUT

9mmmm9mam\^mm\\m\S&9

mmmmmm

1N**§

f®t> tim ( W s i #ii®*ia§ if 2-1/2

Artioipill** M r t U t o r i M if ftsMMtatt -f aeries 0~19$i t l U to
$l#iMHi st tftui ^tow* ftf TwinI iiiiisi%tttef't
^steM^lpliiSi© f*litft4 In ti$i m i l btfar© If mtmUmmtt mMtxl^tt
tsnt#&* July 6, w i n b$ # s ^ y ^ s i as isp*i«s I m mmltmmm bmtmm
ttet mlmmrn mttist^kWmWi^mm

mmmlmm

&im^fP^ty*«#. ^ f^m mmmtt mi m%bmript%.®m mxm\ tbt bmmls mt
SLi^n^^^. $& atastiftiMi £m mmm thm f l f ^ C T mm4& will

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

1QZ
V> KJ*m*

IMMEDIATE RELEASE,
Monday, July 6, 1953-

H-188

Secretary of the Treasury Humphrey announced
today that the subscription books for the current
offering of 2-1/2 percent Tax Anticipation
Certificates of Indebtedness of Series C-1954
will be closed at the close of business today»
Subscriptions placed in the mail before
12 o'clock midnight tonight, July 6, will be
considered as having been entered before the close
of the subscription books.
Announcement of the amount of subscriptions
and the basis of allotment on subscriptions for more
than $100,000 each will probably be made on
Thursday, July 9-

oOo

36B

QTATIITnDV

r\CDT i I H I T A T I A I I

TREASURY DEPARTMENT

STATUTORY DEBT LIMITATION
AS OF
June 3 0 , 1953

Fiscai service
Washington, J^ly Wt 1953

y
Section 21 of second Liberty Bond Act, as amended, provides that the face amount of obligations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at
fny one time. For purposes of this section the current redemption value of any obligation issued on a discount
asis 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, 0C0
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
$19,706,937,000
Certificates of indebtedness
15,S53,539,000
Treasury notes
34,877,661.200 % 70,438,137,200
Bonds Treasury
81,225,577,150
Savings (current redemp. value).
57,885,599,110
Depositary
446,548,000
Armed Forces Leave
-.
Investment series
13,288,056,000
152,845,780,260
Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing
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

25,972,581,000
14,565,676,900

40.538.257.900
263,822,175,360
294,460,275

49,579,035
1,448,950
1,302,000,000

1,353,027,985
265,469,663,620

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.
50,881,686
Demand obligations: C.C.C.
—
Matured, interest-ceased

50,881,686
1,191,075
52,072,761

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with statement of the Public Debt Jliae 30, 1953
(batel
(Daily Statement of the United States Treasury, June .30,,. 1953
(Date)
Outstanding Total gross public debt
Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations
Deduct - other outstanding public debt obligations not subject tojdebt limitation

/

TD . OAS . DC

265,521,736,381
9,^78,263,619

-.
, ._
266,071,06l,639
52,072,761
266,123,134,400
601,398,019
265,521,736,381

STATUTORY DEBT LIMITATION
AS OF JUHE 30, 1953

July 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 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 3275,000,000,000 (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
Interest-bearing:
Treasury bills
*, „ c. c o « .-$19>706,937,000
Certificates of indebtedness. .<> 15,853,539*000
Treasury notes
,.., 34*877*661,200 $ 70,438,137*200
Bonds Treasury
«
81,225,577,150
Savings (current redemp0value)57,885^599,110
Depositary ••«•.••.•....*»(*•
446,548,000
Armed Forces Leave • „ . . 9 „ > g
Investment series „ ( , I J i e t « , 13*288,056,000 152,845*780,260
Special Funds Certificates of indebtedness„ 25*972,581,000
Treasury notes «••.*..c.e.o l4s565>6?6y9QO _!*9»538,25759QO
Total interest-bearing •••»•,•••«,,•(.;••«•.? T!&3,ti22,l75j36"0
Matured., interesi>ceased„...... ,......«,.»oeo.* <»©•<».
294,460,275
Bearing no interest:
War savings stamps ••»••••«••••••
49*579*035
Excess profits tax refund bonds..
1,448,950
Special notes of the United States:
Internat'l Monetary Fund series 1,302-000 .,000
lg353j>027.->985
lOuaj. tnamemtmm

co.de. O9.3...o.oe«9oeeoc.o.ooo9occo

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A. ••»••».••••<>
50^881,686
Demand obligations: C.C.C* « c ..
Matured, interest-ceased ( ( i ( « o M m i ( t «
t «r»e

t O p o£4.O9,OO3,Ofc0

50.88l5686
1^191-.073
52^072,761

Grand total outstanding ec
,
.
«>...
265,521,736,381
Balance face amount of obligations issuable under above authority *.o
9-,470^253.-619
Reconcilement vrith Statement of the Public Debt - JuneTo, 1953
(Daily Statement of the United States Treasury, June 30, 1953)
Outstanding ~
Total gross public debt .**.,
. ......«.......e. 3 ....
o,. 266^071*061*639
Guaranteed obligations not owned by the Treasury ......,<>., r.ot>ee...
52,072,761
Total gross public debt and guaranteed obligations o.oc..,**..*.*.. 2665123,134>400
Deduct - other outstanding public debt obligations not subject to
debt limitation
,.,
..••e.*..
601,398,019
9
H-iao

wbo

- 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 42 and 117 (a) (1) of the Internal Revenue Code, as

amended by Section 115 of the Revenue Act of 194l, the amount of discount
at which bills issued hereunder are sold shall, noi 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 differenc
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.

v, L/ v/

- 2 gKKEK
dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Secretary of the Treasury of the amount and price range
of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in part, and
his action in any such respect shall be final. Subject to these reservations, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on July l6. 19$? , ln cash or other immediately available
3£&9X
funds or in a like face amount of Treasury bills maturing
July 16, 1953
xbBsk
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

370

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, t
Thursday, July 9, 1953
.
Treasury Department
The/&§sa®&§a83!tx9rfb^^

f

i . /

.

/—,

<

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 July l6? 1953 , in
the amount of $1,400,736,000

, to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated July 16, 1953 ,

an

d will mature

October 15, 1953 , when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of

$1,000, 15,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern $k§8§i&3?§t time, Monday, July 13, 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 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 Branch
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 E P A R T M E N T
Information Service

WASHINGTON D C

"371
RELEASE MORNING NEWSPAPERS,
Thursday, July 9, 1953.

H-190

The Treasury Department, by this public notice, invites"Render's
for $1,500;000,000, or- thereabouts, of 91-day Treasury baills^for
cash and in exchange1for-Treasury bills maturing July l6-/,JL9g3y in
the amount of $1,400,736,000, to be Issued on a discount basis under'
competitive and non-competitive bidding as hereinafter provided. ; The
bills of this series will: be'-dated July 16, 1953; and, iWii^. mature
October 15, 1953, when ; the--face amount will be payabler, without
Interest. They will be issued in bearer form only, and ...In .
denominations of $1,000, $5yOO0, $10,000, $100,000, $59$, 000, and
$1,000,000 (maturity value)-^-a;.
_:. .
Tenders will be- received at Federal Reserve Banks, and Branches
up to the closing hour, twoi o'clock p.m., Eastern Daylight Saving
time, Monday, July 13, 1953*;si Tenders will not be received' .at-.-the
Treasury Department,-; Washingtoina Each tender must be for.an even
multiple of $1,000, and inatheacase of competitive tenders-the price'
offered must be expressed on the .basis of 100, with np;t more than
three decimals, e. g,,i 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 as.upp.1 led 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 Incorpbrated 'banks;and trust companies and from
responsible and recognized^ dealersain \dvestment securities. , Tenders
from others must bei v&oeompanied. 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 the
fullbids
atbids.
the
price
(inaccepted
three
decimals)
tenders
inof
accordance
accepted
with
competitive
mustaverage
be
Settlement
made
or completed
for
at the

- 2 Federal Reserve Bank on July 16, 1953* In cash or other immediately
available funds or in a like face amount of Treasury bills maturing
July 16, 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 (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
0O0
from any Federal Reserve Bank or Branch.

KJ

i

Cm

ty-/?y

PROPOSED PRESS RELEASE
._- "K*K

' -r

.y.4 ,**&c~'#*---;. C

yQ^..^"^

v*y " fa

-= " ,;,;

Sales of ^Series El and H Savings Bonds in the first six
months of 1953 totaled $2,231,000,000 the treasury announced
today.

Redemptions of matured and unmatured bonds in the same

period were $2,070,000,000. Sales were up 28 percent and
redemptions were lower by 3 percent from the totals for the
corresponding six months of 1952, when sales were
$1,746,000,000 and redemptions $2,130,000,000.
Sales of Series E and H bonds in June were $340,000,000,
an increase of 16 percent over June 3952 when $293*000,000 were
sold*

During June 1953, total matured and unmatured Series E

and H redemptions were $354,000,000, and increase of one percent
over June 1952, when redemptions of total matured and unmatured
Series E bonds were $350,000,000.
At the close of June 1953^ the cash value of Series E and
H bonds held by individuals was $36,048,000,000.

Owners of

approximately 75 percent of the Series E bonds thus far matured
continue to hold their matured bonds under the optional
extention plan.

0*his percentage of the matured E bonds retained

has held almost steadily for the past two years. The volume of
E bonds maturing has increased from $1,100,000,000 during 1951
to about $7,400,000,000 at the end of June 1953.

# * #

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C
I~?I
KJ>

IMMEDIATE RELEASE,
Thursday, July 9, 1953.

H-191

Sales of Series E and H Savings Bonds in the first six
months of 1953 totaled $2;231,000,000 the Treasury announced
today. Redemptions of matured and unmatured bonds in the
same period were $2,070,000,000. Sales were up 28 percent
and redemptions were lower by 3 percent from the totals
for the corresponding six months of 1952, when sales were
$1,746,000,000 and redemptions $2,130,000,000.
Sales of Series E and H bonds in June were $340,000,000,
an increase of 16 percent over June 1952 when $293,000,000
were sold. During June 1953, total matured and unmatured
Series E and H redemptions were $354,000,000, an increase
of one percent over June 1952, when redemptions of total
matured and unmatured Series E bonds were $350,000,000.
At the close of June 1953. the cash value of Series E
and H bonds held by individuals was $36,048,000,000.
Owners of approximately 75 percent of the Series E bonds
thus far matured continue to hold their matured bonds
under the optional extention plan. This percentage of
the matured E bonds retained has held almost steadily for
the past two years. The volume of E bonds matairing has
increased from $1,100,000,000 during 1951 to about
$7,-400,000,000 at the end of June 1953.

oOo

i

KJ

374

B«H>I&TE HEXSaSE,
Wednesday, July 8, 1953;

H--i?

H y today amoaaeeci mol $ allotmat on smbeeriptioas
for more than #100,000 each for the ©ash offering of 2-1/2 pmmmmt
Taic Anticipation Certificates of Indebteda*** of Series C~19$k* Hone
of tho^wbscriptioao will be allotted lee© than §100,000 and smaller
subscriptions will be allotted in fsillf ae previously announced.
Beporte reeeived from the Federal Beserve Banks shew that gabscript ion© total Q|4aau:kiaiill^f 6 - l M ^ - ^ ^ i ^ /><iXu»v\ « M 4 l i
Details by Federal Beserve Districts as to eubscrlotions and
allotmente will be aimotiBced uheii final reports are reeeived from the
Federal Reserve Banks.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, July 8, 1953.

H-192

Secretary Humphrey today announced a 67$ allotment
on subscriptions for more than $100,000 each for the
cash offering of 2-1/2 percent Tax Anticipation
Certificates of Indebtedness of Series C-195^-

None

of these subscriptions will be allotted less than
$100,000 and smaller subscriptions will be allotted in
full, as previously announced.
Reports received from the Federal Reserve Banks
show that subscriptions total over $84 billion.
Details by Federal Reserve Districts as to subscriptions and allotments will be announced when final
reports are received from the Federal Reserve Banks.

0O0

;b

- 2 -

by the

The Federal Reserve banks will

^

Treasury f^m^mm^mrkao<imSm(mrvod in verifying and destroying
the unfit currency.$ As a security measure, general
auditors of the Federal Reserve banks will audit the currency
verification units at frequent intervals.
The new plan applies to silver certificates and

^ r*?

United States notes, of which ^^^4fmWSm^amW^unfit pieces
were received at Washington from all over the country during
the fiscal year 1952. The Treasury will continue for the
time being to retire and destroy all worn-out Federal
Reserve currency, of which about 350,000,000 pieces were
received in fiscal *52.
^One dollar bills make up the bulk of the currency which
has to be retired because of unfitness. The one dollar
bills last about 10 months as a rule, and more than
a billion of them are in circulation.
bills last much longer.

,,y

oOo

% \ X AT:"~y^x

Higher denomination

77

Therefs no good reason why every ragged dollar bill

oA

spotted by a bank in Seattle orThoenix or Boston or
Miami as being unfit for further circulation should be
shipped all the way to Washington for
destruction, the Treasury has decided..
Hereafter a bullion and a quarter pieces a year of worn\pt outlpaper currency -^ making if laid flat, a stack as high
^\ ^

.as 900 Washington Monuments — previously bundled up and

\ *•' sent to Washington/ will be (Smmwmmfi^^a^id destroyed locally

,-g

by the Federal Reserve- banks, at a saving to the
Cgpproximately $$QQ,0gjD annually.
July 1.

The change is effective

o

\
' X
Reduced shipping costs will account for about $200,000 y
^1
of the saving.j^There will be various other savings, sucbP^y* Oy-v-f
as the elimination of the previous requirement that before
being sent to Washington, packages of worn-out bills be cut/

X Ac
the halves forwarded separately.
,ch Federal Reserve bank,acting as Fiscal Agent for
the Treasury Department, will cancel and destroy
accumulations of worn-out currency after verification of the
amounts and genuineness. Destruction will be by shredding
and burning.

Only small working forces will be required.

\ y,fl

11Q
v» i KJ

June 29, 19$3

TO:

Chief, Secret Service

FROM: George F. Stickney

Attached is draft of proposed press release concerning
the decentralization of the verification and destruction of
United States currency* You will note Mr* Bartelt requested
me to check this with your office. After you have completed
your comments, will you please forward it to 4f»r-tf»e*9k as
indicated on Mr, Bartelt1^ routing slip*

ft*

Attachment

3H»^

379

a*Bm Wmdamml Beserv* banks Kill folios? operating
p ^ e e d w t s p w l i e d by the f*s?@asury i» ¥#rll*yiiig ami destroying
the unfit currency. 4s an additional security wmmms

general,

auditors of tfas federal Heserv*tatx&swill audit the currency
varlfleatioit wits- at fre^peiit intervals* .
tta neti mimn allies to silver mtrt&flcmtm

aM

United States notes, of which about 1,^^,000,000 utxfit pieces
wmm

received at ifsMshlagbeti. f r m mil orsr the ©ountry during

the f laesU .year 1952*

Tiie ®i?ea«i^y itlll continue to* the

tijss being to retire and. destroy all mn&HMit fedemi B&serre
eurreney$ of tfeieh about 3&0*000»000 pieces isare reeeived to
fiscal *5£.
la numbers of pieces one dollar bills mmkm i# tte bulk
0£"tte currency ubleh M s . to be< r@tii?©d hmmmm&m mi unfitness,
She cos dollar bills- last about 10 months as a rule," and wtmre than a, b U M o n of them are ,1a circulation*
M i l s last %mmk longer*.

oOo

Blgher denomination

380

'Siieref« n© good reason why mwmpg ragged dollar bill
spotted by a bank in Seattle mat Phoenix or Boston on?
Miami a s being unfit for further circulation should be
shipped all the iiay to tlufelivgto& for verification » l
destruction^ the treasury has decided.
Mmmmttmw

a billion and a $parter pieces a year of m n a *

out united States jpaper currency ~~ leaking* if 1*44 flat,

bundled up and sent to mstilngton will be verified s^i
SmML%*&»l
destregrsd locally by the Federal Eeserre banks, at a savings
tir tiis:; titarsnsMtifc;iliiFiiTd'iMitfflly |l
/

/y^r^^d£4^-^#<^^^

snipping costs

t #200,

gash federal fiaasrve bank* acting as Fiscal &geni|fer
the tgtmmmf' Bepartiient* will cancel and destroy accumulations
of «3®n«*out currency after verification of the amounts and
genuliiensss*

destruction will be bj shredding and burning.

Only ssstll working forces will be respired.

KM.

O

l

- 2 The Federal Reserve banks will follow operating
procedures provided by the Treasury in verifying and destroying
the unfit currency.

As an additional security measure, general

auditors of the Federal Reserve banks will audit the currency
verification units at frequent intervals.
The new plan applies to silver certificates and
United States notes, of which about *Hs)*><000,000 unfit pieces
were reeeived at Washington from all over the country during
the fiscal year 1952. The Treasury will continue for the
time being to retire and destroy all worn-out Federal Reserve
currency, of which about 350,000,000 pieces were received in
fiscal '52.
In numbers of pieces one dollar bills make up the bulk
of the currency which has to be retired because of unfitness.
The one dollar bills last about 10 months as a rule, and more
than a billion of them are in circulation.
bills last much longer.

oOo

Higher denomination

1Q1
W L.' C

IMMEDIATE RELEASE
Friday, July 10, 1955

ft-/f3
There's no good reason why every ragged dollar bill
spotted by a bank in Seattle or Phoenix or Boston or
Miami as being unfit for further circulation should be
shipped all the way to Washington for verification and
destruction, the Treasury has decided.
Hereafter a billion and a quarter pieces a year of wornout United States paper currency —

making, if laid flat,

a stack as high as 900 Washington Monuments —

previously

bundled up and sent to Washington will be verified and
*-

—

m

*
uJmBmmJFa-

destroyed locally by the Federal Reserve banks, at S saving*

A
to the Governmentffiftiiapjiiintnjifosa'seily
F-H.,

shipping costs

^Tmy

"

***W

OUt f200,000

..,„,.,«"-.•-.>'••-"*"•*••-•-> •••--•••• ••mm

Each Federal Reserve bank, acting as Fiscal Agent for
the Treasury Department, will cancel and destroy accumulations
of worn-out currency after verification of the amounts and
genuineness.

Destruction will be by shredding and burning.

Only small working forces will be required.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

1

IMMEDIATE RELEASE
Friday, July 10, 1953

H-193

There is no good reason why every ragged dollar bill
spotted by a bank in Seattle or phoenix or Boston or Miami as
being unfit for further circulation should be shipped all the
way to Washington for verification and destruction, the
Treasury has decided.
Hereafter a billion and a quarter pieces a year of wornout United States paper currency -- making, if laid flat, a
stack as high as 900 Washington Monuments -- previously
bundled up and sent to Washington will be verified and destroyed
locally by the Federal Reserve banks, at substantial savings to
the Government. Reduced shipping costs alone are expected to
result in savings of about $200,000.
Each Federal Reserve bank, acting as Fiscal Agent for the
Treasury Department, will cancel and destroy accumulations of
worn-out currency after verification of the amounts and genuineness. Destruction will be by shredding and burning. Only small
working forces will be required.
The Federal Reserve banks will follow operating procedures
provided by the Treasury in verifying and destroying the unfit
currency. As an additional security measure, general auditors
of the Federal Reserve banks will audit the currency verification units at frequent intervals.
The new plan applies to silver certificates and United
States notes, of which about 1,250;000,000 unfit pieces were
received at Washington from all over the country during the
fiscal year 1953- The Treasury will continue for the time
being to retire and destroy all worn-out Federal Reserve currency, of which about 350,000,000 pieces were received in
fiscal '52.
In numbers of pieces one dollar bills make up the bulk of
the currency which has to be retired because of unfitness. The
one^dollar bills last about 10 months as. a rule, and more than
a billion of them are in circulation. Higher denomination bills
last much longer.

oOo

384

- uYou have heard, and will be hearing more, about the details of
the political and military and other aspects of the Mutual Security
Program, which are tmt my imae&Late responsibili^. Iff concern Is
with the money aspects of the program. That we are watching and
will continue to watch to achieve as careful a balance of security
both military and economic as we can possibly work out.
I might * in concluding, say just one thing. Both as a dtitan
and because of my responsibilities at the Treasury, I shall earnestly
welcome the cay when international tensions lessen, and the burden
of preparedness can be lightened. But that day has not yet come,
and it would be iiaprudent to think that it is imminent merely
because of the developments of the recent past. In fact, instead
of indicating lessened activity upon our part the developments of the
last few days would seem to warrant the hope that even intensified
efforts on our part might be productive of earlier accomplishment of
our objectives than we had even dared hope. For this reason I
believe that this Government should continue at this time to carry
forward a carefully thought-out program designed to foster the
defensive strength of the free world to the extent we can do so
without infringing upon the economic stability of the Baited States.

385

- 3-

expenditures. It has been heavily pruned from earlier proposals, ^f
As the year progresses we will continue on the alert tc eliminate *%
emr^ possible- additional expenditure which cess not seem justified
to m k e the work more effective.

^

s

^ ^ wste-*iss '«d

In spite of these endeavors, we shall be spending a large amount
of money for this purpcsst this raises the question of whether we
can afford such a program. I believe that we can and should. While

e
I am interested in paring all expenditures to the .bond, I consider ^
that it would be falsa eeonomy not te • obtain the assistance from cur
friends in the free^world which the various parts of this program
will i«ake possible. The test should be will this provide the opportunity
for more defense of freedom and at less cost than we can get in other
ways. Up should keep^that constantly in mind. But programs and plans
that are well on tcward accomplishment had better be finished as

^

economically^as possible than abandoned.and lose the benefit of much**
that has beenjtae in the past.
^

4,^

n#pw,

% S # *~

Hcreover, we should not continue foreign aid on such a large scale.

We must find means for putting international financial affairs on a
sounder basis. ^This is one reason why we have asked Congress for the
Commission on Foreign Economic Poliey t© s t u % our international

^^

trade and finance. Our hope Is that the work ef this Commission will
point to at least some ways in which we can play cur essential role
in world affairs with less strain on the taxpayer o

386

2 -

year had been largely determined but of ceurse that deficit becomes
an added burdet* in our whole financial problem.
Wmn

^ mXimX^tm-,

under the Presidents proposed budget for fiscal 19$k ^**

however, there will * still be a deficit, largely because of expenditures
essential to the country's sound defense and other costs to whioh the
Government has been committed by past appropriations. Bet cuts have
already been mads which will reduce the deficit, and we w I H continue
to dtive toward eliminating it -as rapidly as possible. I ec?i*l4c# .
On the ejcseaMture side there are twe ways to move toward eur
goal. The first is to eliminate every possible unnecessary or nonessential expenditure.' The second-is 'to carry Cut necessary

programme

as economically as possible. The essence of true economy is^getting
the most for your money. That Is the esy we arc trying to proceed if
with respect to the expenditures for mutual security, as well as with
1

respect to the whole*pattern of Government expenditures./

*}£ amgfe

W f l l n the mutualftseeurl^ program we are trying to balance twe things:
on the dm hand, an adequate security fee ourselves, and directly malm a
^related to that a strengthening of tht ialSitiJ^ power of%ur friends
^overseas", and on the other hand, a minimum burden en*the< American k*
taxpayer. \$e have been working to make this proposal a reasonable
and considered effort to achieve that balance.' ***** Ccr$sLu^.*s mill
a^ant ffaB Mutual iieilri^ Pregrem'has had md- w i H continue5'to ha^e
most careful study in the light of our policy ef economy in Government

387

y

STAXBMEffi! OF WMM
M. HUMPHRE!, %Wmtm>
OF THE flEA^URI
BEFORE THE SEKAXB COMMITTEE OH APPROPRIATIONS

1 am glad to have this opportunity to speak to you about the
expenditures to be made under the Mutual Security Prognm. $$r concern
•• -.;-> :•,;.: * a-: ••. M •. a . • ••:. : "-ay :•- - • •- y •• - •
is not merely the matter of these funds taken by themselves. W e must
also consider the relation of these expenditures to the over-all budget
picture. In discussing fiscal and economic policy in his address on
the State of the Union, the President referred to ttthe inesoapable
need for economic health and strength, if we are to maintain adequate
military power and exert influential leadership for peace in the
world."
This Administration will not deviate from its goals of achieving
•. ••"-. i .

•'":

<*aa

••

\:.v

t.yy

.•'•;'

a balanced budget and reducing the levels of both spending and taxation.
. .-y try

these cannot be immediately accomplished. But they must b e always
foremost in mind and continually and energetically pursued within the
limits of a proper balance with our military security. ®very program
•y, :.i

:•. .• •

.

::.•.-• :• ;

\ :•<.

-

:'• :«.a.'! r. >a'

must b e considered from this viewpoint.
The deficit of over nine billion dollars in the past fiscal year
has added to the difficulties of obtaining our objectives. Continuing
deficits of this siae would undermine the economic stability of our
country.
There was, of course, little that President Eisenhower or his
Administration could do about this deficit for fiscal year 1953.
Mere than one-half of that fiscal year had already past when he took
office, and commitments fcr receipts and expenditures for the whole

388

~2-

of the Treasury should be a m e m b e r of a board which would fix lending
policies to guide the agency in making financial assistance available.

1 believe it is desirable for the new agency to supplant both the
Reconstruction Finance Corporation and the Small Defense Plants

Administration in carrying out these lending activities. The new agency
should take over the function of sponsoring the interests of small
businesses in obtaining a part of the defense contracts whicnffeaction
resides in the Small Defense Plants Administration. This would result
in there being one agency whose primary concern would be to give
assistance to small businesses, rather than two agencies performing
functions in this field as at present.

389

Statement
of
Secretary of the Treasury lusphrey
on the
Establishment of a Small-Basiness Agency
Before the Senate Coiamittee on Banking and Oirreacy
«JWLy 13, 19^3

Mr. Chairman and Meters of the Committees
I favor the creation of a small-business agency which would, among
other things, make financial assistance available to small business.
This financial assistance is necessary because under present con&x**~* Cm£$fL*4>» *&"i 44y€^c-'iy Z^4^tAf ,t-# .
dktt&m there if a need for'a type of credit'that is not available
thrcugh nomal lending channels* It would not be the purpose of the

agency to ssake .assistance available in eoB$>etition with private lenders
Bather9 it should support and .supplement i-m assistance other lenders
are prepared to provide, thus filling the credit gap whleh sheuld be
filled under present conditions. The new agency should also have the
authority to make disaster loans such as those the Heeonstraetion
Finance Corporation new makes.
The amount of financial assistance made available to any one
borrower should be limited. As far as possible the new agency should
not make direct loans, bat should participate with private lending
agencies, preferably en a deferred basis.
Because the lending activities of the new agency wist be consistent

with the other credit and fiscal policies of the aovernesat, the .Secretar

STATEMENT OF GEORGE M. HUMPHREY, SECRETARY OF THE TREASURY
BEFCRE THE SENATE COMMITTEE ON APPROPRIATIONS
July 10, 1953
I am glad to have this opportunity to speak to you about the
expenditures to be made under the Mutual Seoarity Program. My concern
is not merely the matter of these funds taken by themselves. We must
also consider the relation of these expenditures to the over-all budget
picture,, In discussing fiscal and economic policy in his address on
the State of the Union, the President referred to "the inescapable
need for economic health and strength, if we are to maintain adequate
military power and exert influential leadership for peace in the
world."
This Administration will not deviate from its goals of achieving
a balanced budget and reducing the levels of both spending and taxation.
These cannot be immediately accomplished0 But they must be always
foremost in mind and continually and energetically pursued within the
limits of a proper balance with our military security0 Every program
must be considered from this"viewpointa
The deficit of over nine billion dollars in the past fiscal year
has added to the difficulties of obtaining our objectives. Continuing
deficits of this size would undermine the economic stability of our
country.
There was, of course, little that President Eisenhower or his
Administration could do about this deficit for fiscal year 1953.- More
than one-half of that fiscal year had already passed when he took
office, and commitments for receipts and expenditures for the wholo
year had been largely determined but of course that deficit becomes an
added burden in our whole financial problem.
Even under the Preoident's proposed budget for fiscal 195U however,
there will still be a deficit, largely because of expenditures essential
to the country's sound defense and other costs to which the Government
has been committed by past appropriations. But cuts have already been
made which will reduce the deficit, and we will continue to drive
toward eliminating it as rapidly as possible*
On the expenditure side there are two ways to move toward our goal.
The first is to eliminate every possible unnecessary or non-essential
expenditure. The second is to carry out necessary programs as economically
as possible. The essence of true economy is getting the most for your
money. That is the way we are trying to proceed with respect to the
expenditures for mutual security, as well as with respect to the whole
pattern of Government expenditures.

H-19U

- 2 In the Mutual Security Program we are trying to balance two things:
on the one hand, an adequate security for ourselves, and directly
related to that a strengthening of the military power of our friends
overseas, and on the other hand, a minimum burden on the American taxpayer. We have been working to make this proposal a reasonable and
considered effort to achieve that balance.
The Mutual Security Program has had and will continue to have
most careful study in the light of our policy of economy in Government
expenditures. It has been heavily pruned from earlier proposals. As
the year progresses we will continue on the alert to eliminate every
possible additional expenditure which does not seem justified to make
the work more effective.
In spite of these endeavors, we shall be spending a large amount
of money for this purpose. This raises the question of whether we can
afford such a program. I believe that we can and should. While I am
interested in paring all expenditures to the bone, I consider that it
would be false economy not to obtain the assistance from our friends
in the free world which the various parts of this program will make
possible. The test should be will this provide the opportunity for
more defense of freedom and at less cost than we can get in other ways.
We should keep that constantly in mind0 But programs and plans that are
well on toward accomplishment had better be finished as economically as
possible than abandoned and lose the benefit of much that has been done
in the past.
Moreover, we should not continue foreign aid on such a large scale.
We must find means for putting international financial affairs on a
sounder basis. This is one reason why we have asked Congress for the
Commission on Foreign Economic Policy to study our international trade
and finance. Our hope is that the work of this Commission will point
to at least some ways in which we can play our essential role in world
affairs with less strain on the taxpayer.
You have heard, and will be hearing more, about the details of the
political and military and other aspects of the Mutual Security Program,
which are not my immediate responsibility* My concern is with the money
aspects of the program. That we are watching and will continue to watch
to achieve as careful a balance of security both military and economic
as we can possibly work out0
I might, in concluding, say just one thing. Both as a citizen and
because of my responsibilities at the Treasury, I shall earnestly welcome
the day when international tensions lessen, and the burden of preparedness
can be lightened. But that day has not yet come, and it would be imprudent
to think that it is imminent merely because of the developments of the
recent past. In fact, instead of indicating lessened activity upon our
part the developments of the last few days would seem to warrant the hope
that even intensified efforts on our part might be productive of earlier
accomplishment of our objectives than we had even dared hope. For this
reason I believe that this Government should continue at this time to
carry forward a carefully thought-out program designed to foster the
defensive strength of the free world to the extent we can do so without
infringing upon the economic stability of the United States.

1Q0
Km> KJLm

Statement of Secretary of the Treasury Humphrey on
the Establishment of a Small-Business Agency
Before the Senate Committee on Banking
and Currency, July 13, 1953.

Mr. Chairman and Members of the Committee:
I favor the creation of a small-business agency which would,
among other things, make financial assistance available to small
business.
This financial assistance is necessary because under present
conditions there are cases in which there is a need for a type of
credit that is not available through normal lending channels. It
would not be the purpose of the agency to make assistance available
in competition with private lenders. Rather, it should support and
supplement the assistance other lenders are prepared to provide.
thus filling the credit gap which should be filled under present
conditions. The new agency shoaild also have the authority to make
disaster loans such as those the Reconstruction Finance Corporation
now makes.
The amount of financial assistance made available to any one
borrower should be limited. As far as possible the new agency
should not make direct loans, but should participate with private
lending agencies, preferably on a deferred basis.
Because the lending activities of the new agency must be
consistent with the other credit and fiscal policies of the
Government, the Secretary of the Treasury should be a member of
a board which would fix lending policies to guide the agency in
making financial assistance available.
I believe it is desirable for the new agency to supplant both
the Reconstruction Finance Corporation and the Small Defense Plants
Administration in carrying out these lending activities. The new
agency should take over the function of sponsoring the interests
of small businesses in obtaining a part of the defense contracts
which function now resides in the Small Defense plants Administration*
This would result In there being one agency whose primary concern
would be to give assistance to small businesses^ rather than two
agencies performing functions in this field as at present.

1Q1
\j> \j t^j

l*aeaday, July afc, 1953*
r

jyae Treamjsry Oep^teBSt ai»u*seed lest evening that tarn tenser® for- $1,500,000,000,

or thcreebotrte, of 91-day TmmMW«f bills te be- dated J&ly 16 mod tc mature October 35,
1953* v&leh eere aaferod en July 9% worn cpem! at the Federal Eceerve Benks on $J1& 13.
The details of this issue are- as followst
ratal applied fer * $2,276,662,000
fatal acct^ttd
- 19$5J92'139JJ3

ECJ^I

(iijclud^s ;.267,^,330 enUnrwl ce e
nci^cc^etitive basis and accepted in
f a n at th*; avsr&ae p£&ee iba** eelee)
A v e m ^ price
- S$»fa68 iM^ieXcst xmte ef dieceuat ag»psm* 2.106$ per a m a e
cf acca,,tsd cc^etitiv® bidet

High - 9?*$19 D^ulvalfriif, rate of dt®co-junt apprcat* USW per twim
hem
m 99.1*62
»
• «
•
* , ^ . »•!«•* » '^l; •.
(13 percent of the aooent bid fer &t the %m price wee accepted)
Federal Beserve
Hietrict

Allied for

fetal Accepted.

mmm*aA.mi*mmmmm*M*i»mmmmuamiiw<u<im.n

Bcetoa
Mew lork
Philadelphia
Cllevelai&l
EiehtacESi
Atlanta
ChicegQ
St. Louie
JlLiasepeilie
faneee City
Bell&g
^aa i»r*mciac<i
KBtt

$ 22,2*73, J00
i,5to#6ia.,ooo
$5,W3*ooo
19,ii5?,OOQ
W , 227,000
2U^,c20,JJ0
S5,W,ooo
13,828,000
37.690,000
5l2,565»-300
^2,27o,062,vJ00

$

21,1*73*000

mx&k,oc<)
#8,000
1,000
tiQOO

rfooo
219sk90,000

#1,100,230,000

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

_

_
"34

RELEASE MORNING NEWSPAPERS,
Tuesday, July 14. 1953-

H"1*

The Treasury Department announced last evening that the tenders
*; fJinnn nr>r> or thereabouts, of 91-day Treasury bills to be
date! Ju?y'?6 and to mature October 15, 1953.- which were offered on
July 9^were opened at the Federal Reserve Banks on juxy 13.
The details of this issue are as follows:
Total SKiS/" I ^fooSSoO (men*.. $267,544,000
Total acceptea
±.m> >
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.463 Equivalent rate of discount approx.
Aveiabe F ^
-^
2.106$ per annum
Range of accepted competitive bids:
Hifrh ,. 99.519 Equivalent rate of discount approx.
nib
1.903$ per annum
JMMM.
_ 99.462 Equivalent rate of discount approx.
JjOW
2.128$ per annum
(73 percent of the amount bid for at the low price was accepted)
Federal Reserve Total located
District
Applied for
« * ' t 22 473 000 $ 21,473,000
S°Stvn v
1 543 641 000
New York
'^iy^Rnnn
Philadelphia
||'o§'ooS
mtZlnf
19,457.000
Richmond
£7 007 noo
2^anta
249^20^000
t1CLouis
l i S o O O
bt. LOUIS
iRftpflooo
Minneapolis
18,82«,000
^sas City §2'si?-000 46 055^00
1,276,662,000
S 1 S»oi.co TOTAL
U9&J9l%
0O0

Accepted
848,454,000
42 478.000
50,709', 000
19,147.000
46 697,000
219;490 000
4
i'65l'°22
16,328,000
.|
$1,500,280,000
,
65:454.000

IMMEDIATE RELEASE,
Monday, July 13, 1953.

The Treasury Department today announced the subscription and allotment
figures with respect to the current cash offering of 2-1/2 percent Tax
Anticipation Certificates* of Indebtedness of Series C-1954. These certificates will be dated July 1$, 19$3, and will mature March 22, 1954.

They will be accepted at par plus accrued interest to maturity in payment
of income and profits taxes due on March 15, 1954.
Subscriptions for this offering amounted to nearly 118,700,000,000,

of which slightly over $2,000,000,000 was received from noribank sources.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve
District

Total Subscriptions Received

Total Subscrip
tions Allotted

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

$ 287,372,000
3,727,520,000
312,812,000
544,843,000
294,373,000
364,997,000
1,252,618,000
237,430,000
189,511,000
233,583,000
184,924,000
1,056,822,000
1,000

$ 196,967,000
2,509,338,000
214,577,000
370,913,000
202,398,000
249,802,000
857,512,000
164,077,000
131,812,000
163,316,000
127,495,000
712,428,000
1,000

18,686,806,000

$5,900,636,000

TOTAL

^y M yy

v

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.
Kj \„ KJ

IMMEDIATE RELEASE,
Monday, July 13, 1953.

H-196

The Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
2-1/2 percent Tax Anticipation Certificates of Indebtedness of
Series C-1954. These certificates will be dated July 15, 1953, and
will mature March 22, 1954. They will be accepted at par plus
accrued interest to maturity in payment of income and profits taxes
due on March 15, 1954.
Subscriptions for this offering amounted to nearly
$8,700,000,000, of which slightly over $2,000,000,000 was received
from nonbank sources.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve
District

Total Subscriptions Received
$

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

287,372,000
3,727,520,000
312,812,000
544,343,000
294,373,000
364,997,000
1,252,618,000
237,430,000
189,511,000
233,583,000
184,924,000
1,056,822,000
1,000

$8,686,806,000

0O0

Total Subscriptions Allotted
$

196,967,000
2,509,338,000
214,577,000
370,913,000
202,398,000
249,802,000
857,512,000
164,077,000
131,812,000
163,316,000
127,495,000
712,428,000
1,000
$5,900,636,000

397

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNINGNEWSPAPERS,

v>6ee;
During the month of If**„ n -i-953 market
transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
m%mOto7i,Aain

net purchases of $.3D JI CuX i, Q00, Secretary
Humphrey announced today.

0O0

pQQ
W

Km* Kmf

JUL 81953
mfmmm

mx^mmm:

ttiUMtaf tr^mmmima wmrm ®m®m in direct md
mt tkm Ommrmmt tar
etter account® during the mmth of

B5$*
23f127fQ90

mftrtff^m

y

y

3

ry

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Wednesday, July 15, 1953.

H-197

During the month of June, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accoamts
resulted in net purchases of $20,077,450,
Secretary Humphrey announced today.

oOo

4f>n

/ /"^-s .^^-<--€^ta^ XX<lof^
f,/-./ y
f/'•

y

IMMEDIATE RELEASE ^ " /<s»-ir " ' I ^
July Itfc. 1953

/

.—

f /

The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to July k% 1953* inclusive, as follows:
2
:
:Unit of : Imports as of
Commodity
; Period and Quantity
;Quantity ; July 4* 1953
Yftiole milk, fresh or sour . . . Calendar year 3,000,000 Gallon 5,048
Cream Calendar year 1,500,000 Gallon 570
Apr. 1, 1953Butter

July 15, 1953

5,000,000 Pound

3,767

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

33,866,287 Pound

(1)
21,600,771

12 months from 150,000,000 Pound
Sept. 15, 1952 798,900,000 Pound

114,193,233
83,758,339

White or Irish potatoes:
certified seed
other
12 months from
Cattle, less than 200

lbs. each .April 1, 1953

200,000 Head

2,684

Cattle, 700 pounds or more each April 1, 1953(other than dairy cows)
June 30, 1953

120,000 Head

11,259

Cattle. 700 pounds or more each July 1, 1953(other than dairy cows) . . . . .Sept. 30, 1953

120,000 Head

172

Walnuts Calendar year 5,000,000 Pound 4,456,284
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved

12 months from
Oct. 1, 1952

Filberts, shelled (whether or 12 months from
not Sanched) . .
Oct. 1, 1952
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not includ- 12 months from
WWW peanut butter)
July 1, 1953

7,000,000 Pound

5,641,994

4,500,000 Pound

3,680,317

1,709,000 Pound

12 months from
PmimtOil
Tnl v l . 1953
RO.OOO.OOn Pniinri
g(1) Imports for consumption at the quota rate are limited to 25,399,716 pounds during
the first nine months of the calendar year.

/tui
n

TREASURE DEP;R-nfflT
Washington

MEDIATE RELEASE
H-198

Wednesday, July 1$9 19$3

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to July k, 1953, inclusive, as follows:
Commodity

Period snd Quantity

Whole milk, fresh or sour • • « Calendar year
Cream c*«»..««*o<»oc Calendar year
Butter<

Apr. 1, 1953 * July 1$9 19$3

9

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

3,000,000

jlJnit of : Imports as of
:Quantity : July k, 1953
Gallon

5,01*8

1,500,000 Gallon

570

5,000,000 Pound

3,767

33*866,287 Pound

(1)
21,600,771

White or Irish potatoes:
certified seed < > • • » « • • • 12 months from 150,000,000 Pound
other e « « « » » « « * * o * Sept. 15, 1952 798,900*000 Pound

IH.,193,233
83,758,339

12 months from
Cattle, less than 200 lbs«eachQ April 1, 1953

200,000 Head

2,68U

Cattle, 700 pounds or more each April 1, 1953 120,000 Head
(other than dairy cows) . © * June 30, 1953

11,259

Cattle,700 pounds or more each July 1, 1953 120,000 Head
(other than dairy cows) , © * Sept. 30, 1953

172

5,000,000 Pound

1,1*56,281;

Almonds, shelled, blanched,
12
monthsorfrom
roaste$,
otherwise prepared or preserved e • • • «- o Oct. I, 1952

7,000,000 Pound

5,6U1,99U

Filberts, shelled (whether or
not blanched) . • • « « . . »

il,500,000 Pound

3,680,317

Walnuts . . . . . • • • • • o o

Calendar year

12 months from
Oct, 1, 1952

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in«
12 months from
eluding peanut butter) . . • * July 1, 1953

1,709,000 Pound

12 months from
July 1, 1953

80,000,000 Pound

Peanut Oil O

•

•

*

5

<

•

»

«

>

•

(l) Imports for consumption at the quota rate are limited to 25,399,716 pounds during the first nine months of the calendar year.

4D2

- /

,Jy^.^y^f

LA^-i

1

p_

/

/

y

yx^t,,^? y^y^p^-^

Px

IMMEDIATE RELEASE
July 14. 1953

H-/ff

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 1946, from January 1, 1953, to July 4, 1953, inclusive, as follows:

Products of the
Philippines

Buttons

.mm.

Established Quota
Quantity

850,000

Unit of
Quantity
Gross

Imports as of
July 4, 1953

374,344

Cigars . . . . ,

200,000,000

Number

Coconut Oil . •

448,000,000

Pound

43,356,656

Cordage ...

6,000,000

Pound

2,478,071

Rice

1,040,000

Pound

2,500

(Refined
Sugars
(Unrefined

1,904,000,000

Pound

Tobacco

6,500,000

1,607,107

1,080,302,370
Pound

1,528,160

TREASURY DEPARTMENT
Washington

£pl

IMMEDIATE RELEASE
Wednesday, July 15, 1953

H-199

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 19U6, from January 1, 1953, to July k9 19$39
inclusive, as follows:

Products of the
Philippines

Established Quota
Quantity

Unit of
Quantity

Imports as of
July k, 1953

31k93Ux

Buttons • •

850,000

Cigars . •

200,000,000

Number

Coconut Oil

1*48,000,000

Pound

1*3,356,656

Cordage . •

6,000,000

Pound

2,478,071

Rice • • .

1,040,000

Pound

2,500

1,904,000,000

Pound

(Refined
Sugars
(Unrefined
Tobacco

.« e a * • J,

Gross

1,607,107

1,060,302,370
6,500,000

Pound

1,528,160

4C4

-2-

COTTON WASTES
(In pounds)

Switzerland, Belgium, Germany, and Italy$
Imports ly

United Kingdom
Canada .
France
British India
Netherlands
Switzerland • •
Belgium . • <> •
Japan a a . . »
China . . .' * *
Egypt o • • o o
Cuba
Germany
Italy .
.

«

S

s

C

C

9

o

•

O

o

«

O

Q

o

O

9

0

o

o

o

o

o

o

*

O

9

9

0

o

o o ©

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,1356,544
76,329
21,263

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

100,335
239,495
13,032
48,162
15,715
12,853
mA.

24,618
6.430

1,441,152

Sept. 20, 1952,
to July 14, 1953
99,728

75,807

13,032

22,747
14,796
12,853

15,715

25,443
7,088

mm

12,853

24,618
6,430

« \J Km*

/ ^jL*t~~<z}^ *yy.

vx-^x ^- '• ^ - w ^ — ^ V

.-//
y
l
(sm/fimff ry^-f • /X

^ T V

IMMEDIATE RELEASE ^ yJ ~~ 0**- ^U
y

July -I4j> 1953

Preliminary data on imports for consiaaption of cotton. aad-...eetto&,-j»ate .chargeable to the quotas
establishedby the President»-s Proclamation of September 5, 1939, ae 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 July 14, 1953, inclusive
Country of Origin. Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras 752
Egyptian Sudan . . .
783,816
Peru
. . . .
247,952
British India . . . . .
2,003,483
China
1,370,791
Mexico
8,883,259
Brazil
618,723
Union of Soviet
Socialist Republics .
475,124
Argentina ,
5,203
Haiti
237
Ecuador
9,333

586
8,883,259
124,891
1,382
-*

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

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

l/ 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" Cotton 1-1/8* or more, but less than 1-11/1611
Imports Sept. 20. 1952. to July L. 1Q53
Imports Feb., 1, 19 53., to July 1L. 1953
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 18,622,397 45,656,420 31,575,139

TREASURY DEPARTMENT
Washington
M E D I A T E RELEASE
Wednesday, July 15, 19^3

H-200

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September $, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/kn
Imports September 20, 1952, to July 14, 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
,

783,816
21*7,952
2,003,483
1,370,791
8,883,259
618,723
1*75,121*
5,203
237
9,333

Import;

586
8,883,259
121*, 891
1,382

Country of Origin

Established Quota

Imports

Honduras
752
Paraguay
871
Colombia
121*
Iraq
195
British East Africa
2,2lf0
Netherlands E. Indies
71,388
Barbados
1/Other British W. Indies ...21,321
5,377
"" Nigeria
16,001*
2/0ther British ¥. Africa ...
689
3/0ther French Africa
Algeria and Tunisia

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
5/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than jA"
Imports Sept. 20, 1952, to July 57T953

Imports"TeF. T7~I75T, to Julyinn^T"

Established Quota (Global)

Established Quota (Global)

70,000,000

Imports
18,622,397

Cotton 1-1/8" or more, but less than 1-11/16"

1*5,656,1*20

Imports
31,575,139

o
CO

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

Country of Origin

United Kingdom © « »
Canada • • • • « * •
France . . „ * v a a
British India. • » »
Netherlands » . « o
Switzerland «
Belgium 0 » •
Japan . • . »
China . . . * o • • »
Egypt » * • . a a a a
Cuba
O * a« v»*O*
Germany* « » * o * * • 9
Italy • • • • • 6 * 9 9

l/

t

Established
TOTAL QUOTA

Total" Sapor ta
3 Established J
Imports 17"
Sept* 20, 1952, to s 33-1/3$ of j Sept, 20, 1952,
July lb, 1953
s Total Quota 8 to July 14, 1953

li,323,457
239,690
227,420
69,627
68,21*0
hl*,388
38,559
341,535
17,322
8,135
6,544
76*329
21,263

100,335
239,1*95
13,032
48,162
15,715

5,1482,509

Included in total imports, column 2*

Prepared in the Bureau of Customs.

1,41*1,152

99,728
m>

75,807

13,032
15,715

12,853

22,747
14,796
12,853

24,618
6,430

25,Wi3
7,088

24,618
6,430

1*60,640

1,599,886

172,376

mm

12,853

<08

FOR IMEDIATE RELEASE,

-1

of

•Ma: V* ..1223- -.
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, 1941, as modified by the president's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1$3 ,
as follows 2

Country
of
Origin

Wheat
:
:
: Established s
Imports
Quota
s
sMay 29, 19 53,to
•
i July 14, 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

795,000

~
—

-

100
—

100
100
«-

*•#

—
—
—
mm

—
m.
mm

<mm

100

mm

2,000

—
—

100
=.

1,000
mm

100
—
—
„
™

—
—

mm
*•*

«fc*

mm
m*

mm

-

:

fheat flour, semolina,
crushed or cracked
wheat, and similar
wheat j>roducts

9

: Established
Imports
:
Quota
t May 29, 19 5%
•
: to July 14. 195
(Pounds)
(Pounds)
9

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000

5,ooo
5,000
1,000
1,000
1,000
14,000
• 2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

2,089,549
«,
—
mm
mm

—
mm

«
mm
mm

<**
*-*.
mm

*#
*•»
mm

*"*

—

100
100

m*

mm

m.

-

-

100
100

-

-

«
-

1,000

mm

TREASURY DEPARTMENT
Washington

103
H-201

IMMEDIATE RELEASE
Wednesday, July 15, 1953

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, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1953,
as follows:

Wheat
Country
of
Origin

Established
Quota

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

Imports
May 29, 1953, to
July 14, 1953

Established
Quota

Imports
May 29, 1953,
to July 14, 1953

(Bushels)

(Pounds)

(Pounds)

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

795,000

3,815,000
24,000
13,COO
13*000
8,000
75,000
1,000

800,000

795,000

(Bushels)

2,089,549

5,oco
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,0C0
1,000
1,000

1**000,000

2,089,549

410

- 3-

ram
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 194l, 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 differenc
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.

/1 1

^Ll

- 2-

mm
dealers in investment securities. Tenders from others must be accompanied
by payment of"2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company..
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement

will be made by the Secretary of the Treasury of the amount and price rang
of accepted bids. Those submitting tenders will be advised of the accept-

ance or rejection thereof. The Secretary of the Treasury expressly reserve
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 thre
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 July 23. 19^3 , ln cash or other immediately available
funds or in a like face amount of Treasury bills maturing July 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 or supplementary thereto. The bills shall be

a* 1 ?
t mm L —

TREASURY DEPARTMENT
Washington

)~}'~~
/ ^

•m^~ ^ '

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 16, 1953
Treasury Department
ThejfesDg^Qajgjdc^o^Bc^CBasiHjgF^ by this public notice, invites tenders
far $1,500,000,000 , cr thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing July 23, 1953 , in
the amount of $lf 500.526.000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated July 23, 1953 , and will mature
October 22. 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
Daylight Saving
closing hour, two o'clock p.m., Eastern/SdHaacfeajni: time, Monday, July 20, 1953 .

W
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 mere than three decimals, e. g., 99.92$. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

IINGTON, D.C.
ry.l
W

RELEASE MORNING NEWSPAPERS,
Thursday, July l6:>; 1953.Vy••-..,

V X. KJ

.....
yH-£02

The Treasury Department by this public notice,' invites tenders
for $1.500,000,000,-OT thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills, maturing July 23> 1953, -in
the amount of $1,500,526,000, to be issued on a discount basis under
competitive and non-ecmipetitive bidding as hereinafter provided,
The bills of this series will be dated July .23,"' 1953.. and will
mature October 22, 1955a when the face amount'will be. payable
without interest. They, will be issued in bearer form' only, and in
denominations of $l,QQ€tj ,$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 houry.ytwo c^clock p.m., Eastern Daylight Saving
time, Monday, .July. 20, 1.953. Tenders will not be received at the
Treasury Department, Washington.- Each tender must be for an1 even
multiple of $1,00-6,. and Ihrthe -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 onathe. printed forms and forwarded in the
special envelopes .which will1 be Supplied by Federal Reserve Banks or
Branches on appliication therefori
:>o
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 andrrecognized 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-,-1 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
accepted
from
(in three
any one
tenders
decimals)
bidder
in will
accordance
of accepted
be accepted
with
competitive
the
in bids
full bids.
must
at the
be
Settlement
average
made orprice
for

- 2 completed at the Federal Reserve Bank on July 23, 1953, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing July 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 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

yi4

/(
1

*As the weeks and months go by we will continue to examine

and check all the Government's expenditures and make every effort to b
our rate of spending and income togethe:
We are determined to do this. | However, we must also and
-&«•

MJ^

always maintain a balanced military security for which we have hope and will
7hij
continue

to have the highest regard and coneern. yThis problem is too big to

be solved quickly.

uuiwiHWiiin.iatfvit

The Administration, the Congress and the people of the United State

must keep working together to get it under control. When once we get it

control we can then feel more sure of security#n both, the economic and
military fronts. This is the goal toward which all Americans must work. tt

- 2 'Administration is determined to get tpem Governm e n t s spending under control so that this trend of increasing
deficits and increasing public debt will be checked.
We have already cu
^^al
W f R Mprevious
M
from the ^^^AitefiSg^Hfa&'^ne
administration and in

fiscal 1954 we shall spend at least $4J billion less than was
previously planned.
MwmiiBiBMrMfrTOawaiMtp^iMi

the we

<2w?f dU
examine all the Gov<

9

ntmuenco
•^*y s^*** & fyt**<«

s expenditures

re determined
a- ra*GO ox oaxai
and income
&•*%&*<'
y&Oy***
t-e
man*
a
J*t*~^*£^<6&9a?
mili tary\security,
main t a!
to do this«, ovon^whilo.
td will continue to/have the
for which we/have ha<
he)

*>f

and eare./This pr
the Administratio

A
workii

ilemus too big to

ST®

and

people

lved ia

ir

States must

together to get it\under control.

WhenN^e get it undei*\

control, we cai M.more sure\ of security on both th\ economic
and/the military fronts.

Thi\ is^the goal toward which all

Americans must work.
macke^As «

decision has
(d to/rais<
to dec!

ibt limiVabove
by the

illlil

!xt

Km*

For immediate release
Friday, July 17, 1953

/ / *"
'

Secretary of the Treasury Humphrey made the following statement
in announcing today that as of July 15, 1953, the gross public debt
has risen to $272,361,000,000:
*%t is-with no pride -t&atQthe Daily Statement of the
United States Treasury published today shows that our gross
public debt is now at $272,361,000,000.

This figure, highest in

history outside of World War II, points up the situation which
Me. have inhprite4-fePom the spending programs of the pgenaus p ° ^ Atw
*tomism*ton.

Under those s * « ^

programs, in the fiscal

year just ended, a deficit of $9,389,000,000 was rolled up.

L

^

r-<-^

JTJBecause of this deficit, the debt on June 30 was $2,200,000,000

^^

more than'estimated in tfee January budget, and the cash balance
0K.

of the Treasury was $1.3 billion less. Thus the Treasury was
$3j billion worse off^ th«iFaes^ijaated-i&- January. What with(p
previous spending commitments we h»vc no-t yet Been -abjfce to get
fully under control, we have A.
been forced to add alrnns* $6 billion
to the public debt by a new Government issue of tax anticipation
certificates.

It is this issue which, as of July 15, brought the

. .

new high public debt figure, ;*,&, <Hiu t4! C^A ^tu^wvi ,***, ^x^^w^->*^' tt ;T
••Before World War I the public debt was $1,280,000,000. (^X\1
Just before Pearl Harbor it was $55 billion.

The highest debt

reached during World War II was in February 1946 when it was
$279 billion.

When hostilities began in Korea on June 24, 1950,

the debt had reached $257 billion, an increase of $6 billion
from the postwar low of $251 billion in April 1949. The new
figure being made public today is only $7 billion under the
World War II peak of $279 billion.

*^Kd

TREASURY DEPARTMENT
! » « « ! £ , "

WASHINGTON, D.C.

Friday;. July 17, 1953. H-203 -.17
Secretary of the Treasury Humphrey made the following statement
in announcing today that as of July 153 1953, the gross public debt
has risen to $272,361,000,000:
"The Daily Statement of the United States Treasury published
today shows that our gross public debt is now at $272,361,000,000.
This figure, highest in history oaitside of World War II, points
up the situation which the spending programs of the past few years
have produced. Under those programs, in the fiscal year just
ended, a deficit of $9,339,000,000 was rolled up.
"Because of this deficit, the debt on June 30 was
$2,200,000,000 more than estimated by the previous Administration
in January, and the cash balance of the Treasury was $1.3 billion
less. Thus the Treasury was $3i billion worse off. Becaaise of
previous spending commitments which we are only beginning to get
under control, we have been forced to add about $6 billion to the
public debt by a new Government issaie of tax anticipation
certificates. It is this issue which, as of July 15, brought the
new high public debt figure, as shown in today's Daily Statement.
"Before World War I the public debt was $1,280,000,000. Just
before Pearl Harbor it was $55 billion. The highest debt reached
during World War II was in February 1946 when it was $279 billion.
When hostilities began in Korea on June 24, 1950, the debt had
reached $257 billion, an increase of $6 billion from the postwarlow of $251 billion in April 1949. The new figure being made public
today is only $7 billion under the World War II peak of $279 billion.
"This Administration is determined to get Government spending
under control so that this trend of increasing deficits and
increasing public debt will be checked. We have already cut
$82 billion from the budget proposed by the previous administration
and in fiscal 1954 we shall spend at least %k\ billion less than was
previously planned.
"As the weeks and months go by we will continue to examine and
check all the Government's expenditures and make every effort to
bring our rate of spending and income together. We are determined
to do this.
"However, we must also and always maintain a balanced military
security for which we have had and will continue to have the highest
regard and concern.
"This problem is too big to be solved quickly. The Administration,
the Congress and the people of the United States must keep working together to get it under control. When once we get it under control we
r o n t smore sure of security on both the economic and the
Wcan
o r k then ffeel
SHiV^y
- This is the goal 0O0
toward which all Americans must

41G

- 3 "The current levels of profits and national income
give assurance that receipts for the year 1954 will be
above those in 1953.

Corporate profits in the first

quarter of this calendar year are now estimated at an
annual rate of about $3 billion above last year*s total.
Likewise, national income in the first three months of
1953 is estimated at an annual rate of about $305 billion,
an all-time high, and $14.5 billion above the 1952 level.
"We see no reason to change the estimate of total
revenue of $68.5 billion for fiscal year 1954 contained
in the Presidents May 20 message.
"The deficit of $9.4 billion for fiscal year 1953
and the projected deficit for the current fiscal year
emphasize the need for continued strenuous effort to
get our fiscal house in order.

Continued vigorous

cooperative effort on the part of the Government and T
the people will be required to reduce expenditures to
the point where we will obtain a balance between
receipts and expenditures."

oOo

^1Q
*~.' ..A. v^

- 2The table of budget receipts and expenditures for the
fiscal years 1950 to 1953, in millions of dollars, follows:

1950 1951 1952 1953
Corporation income and excess
profits taxes
Individual Income tax
Excises
All other receipts (net)
Total

10,854
17,408
7,597
3,345
39,204

14,388
23,365
8,693
3,803
50,249

21,467
29,880
8,893
4,191
64,431

21,548
32,521
9,973
4,327
68,369

2,159

2,106

2,302

3,151

37,045

48,143

62,129

65,218

40,167

44,633

66,145

74,607

Surplus (/} or defieit (-). -3,122

/3,510

-4,0l4

-9,389

Returns of overpayments
Net budget receipts
Expenditures

Secretary Humphrey also said:
"Although the receipts were the highest in history,
they fell $3.5 billion below the estimates made by the
previous administration in January.
"This decline In receipts below the estimates
was due to several factors. Returns on overpayments
were $&&& million more than originally estimated;
individual income tax receipts were about $1 billion
less; and most of the balance was in receipts from
corporate tax payments.

20

FOR RELEASE IN A.M. NEWSPAPERS,
Monday, July 20, 1953.

Him*-ac*>&

Secretary of the Treasury Humphrey said today, in announcing
a breakdown of fiscal 1953 Government receipts? ^^t\"Wb aaPetW-j
forced to pick up the tab for the biggest deficit in

'

history outside of the two world wars,1* even though income
was higher than in any previous year in history.'
•v?s v*"*** y*,y

^M#*t~-xym-xt>~-+f-

"While receiving 4Hfcf"lneome of more than $65 billion,
A
plans and programs of
the Government, under the spending
the preceding acfmlnistrat-lrQn,
in fiscal year IggS^just ended.
up^ke-^fcate^afo^t^^

$9,389,000,000
Sm we are forced to g-lek:
in history, outside the

two- worldswars,, jB3zeja~~£&ettgtefofoe- -^k^ernmejxti^-ln^eme-^ast
year was atr~a"13^4me~~k3igh.

This tremf?ndo3*g-4e^TT±fr~~was

the^rm sul t of ^a^J^jGoy-epnment ^plannlagT-4!^leh'^iad: already
Lfic.lt ja£^jaoga--feha£L44-'billlon-Jji-the^flscal year
-said.
"The new Acjministr^tio^ has already cut $8i billidin from
/

!

/

further deficit (planning of the previous
administration.
/
these deficits and commitments
swr-mtitfi'icgMsir
/
spaaing makef pur problem difficult, but we will continue
vigorously to get spending aind the budget urider eontro(L at
the earliest possible date," Secretar^^-Humphrey aa-jbda

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

FOR RELEASE IN A.M. NEWSPAPERS,
Monday, July 20, 1953.

H-204

Secretary of the Treasury Humphrey said today, in announcing
a breakdown of fiscal 1953 Government receipts:
"We have been forced to pick up the tab for the biggest deficit
in history outside of the two world wars,even though income was
higher than in any previous year in history.
"While receiving its highest income of more than $65
billion, the Government, under the spending plans and programs of
the past spent more than this income by $9,389,000,000 in the
fiscal year just ended."
The table of budget receipts and expenditures for the fiscal
years 1950 to 1953; in millions of dollars, follows:
][cj^ 1951 1952 1953
Corporation income and excess
profits taxes
.
.......10,854
14,388
21,467
Individual income tax....
17;4o8
23,365
29,880
Excises.......
7.597
8,693
8,893
All other receipts (net)
3,345
3,803
4,191
Total... 39,204 50,249 64,431 68,369
Returns of overpayments 2,159 2,106 2,302 3,151

21,548
32,521
9,973
4,327

Net budget receipts.. 37,045 48,143 62,129 65,218
Expenditures. 40; 167 44,633 66,145 74,607
Surplus (/) or defeicit t ,
(-).................... -3,122

/3,510

-4,016

-9,389

Secretary Humphrey also said:
"Although the receipts were the highest in history, they fell
$3.5 billion below the estimates made by the previous administration
in January.
'This decline in receipts below the estimates was date to
several factors. Returns on overpayments were $640 million more than
originally estimated; individual income tax receipts were about
$1 billion less; and most of the balance was m lower receipts from
corporate tax payments.

/o
m. 2

>

"The current levels of profits and national income give!'
assurance that receipts for the year 1954 will be above those in
1953. Corporate profits in the first quarter of this calendar year
are now estimated at an annual rate of about $3 billion above last
year's total. Likewise, national income in the first three months
of 1953 is estimated at an annual rate of about $305 billion, an
all-time high, and $14.5 billion above the 1952 level.
"We see no reason yet to change the estimate of total revenue
of $68.5 billion for fiscal year 1954 contained in the President's
May 20 message.
"The deficit of $9.4 billion for fiscal year 1953 and the
projected deficit for the current fiscal year emphasize the need
for continued strenuous effort to get our fiscal house in order.
Continued vigorous cooperative effort on the part of the Government
and the people will be required to reduce expenditures to the point
where we will obtain a balance between receipts and expenditures."

0O0

j~l ~cX°J

RBLBASE MGftlTSQ NlaWSPAHBRS,
fuegday, July 21, 1953.

fbe fteaoury Department a&noa&ced la®i evening ttiat th» tender® for fl, 500,000,000,

or tl*ejr@about®s of ^1-day treasury bills to be dmtmd afmXf 23 mad to mature Qmtttiwr 2
19$3, whicsh w@r© ottered on Jttfy IS, wre opened mt the Federal Reserve Banks mm July
1h» detail® of tbi* issue are as follows t
total sailed for - $2,380,096,000
total M I M P M I
- i#5®0#J*0OtQOO

(iaoliades #381,927*000 mwfommd m &
non-cumpetitive basis and accepted in
full at til® average price shorn balm)
average price
- 99*462/ Sqmivalimt rat® of dimmomt approac. 2*226% per
Basge of accepted competitive bidss
- 99.507 Equivalent rat® mt discount approx. 1.950$ per
- 99.169
•
* «
»
«
2*llj^ »

Hi*
Low

(59 pumttat ox the amount bit for at the low price was accepted)
Federal Beserve
District
*mmim*m

total
^PPH®4

im

Total
Accepted

i>wlwiwi»«oaM»ii|itwWW^

Boston
Hew lark
ftiilidtlgfeift
Olevelaiid
Richmond
Atlanta
(Meago
St. Louis
Minneapolis
Kansas City
Dallas
San trmmttmo

#

23,176,000
i967i99%9mm
k39k7k,0O0
73,720,050
17,922,000
32,090,000
21*6,585,000
52,5SO,ooo
19,297,000
56,291,000
37,331,000

_ ¥%*mip^
fauL

$2,380,096,000

|

19,012,000
953,324,000
27,061*, 000
k8,720,0Q0
16,102,000
31,390,000
181,143,000
35,857,000
13,297,030
$k9 8&>,000
35,770,000
83,563,000

•i,5oo,Jboofooo

»

TREASURY DEPARTMENT
Information Service
424

W A S H I N G T O N , D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, July 21, 1953-

H

"205

The Treasury Department announced last evenins that the tenders
for *1 500 000,000, or thereabouts, of 91-day Treasury bills to be
dated July 23 and to mature October 22, 1953- which were ofiered on
July16were opened at the Federal Reserve Banks on July 20.
The details of this issue are as follows:
Total £$&'" _- ^jK^OO (includes $231,927,000
Total accepted
entered on a non-competitive
3j
basis and accepted in full
at the average price shown
below)
Average price
- 99.462/ Equivalent rate of discount approx.
H
6
*
2.126$ per annum
Range of accepted competitive bids:
wi(yh _ 99 507 Equivalent rate of discount approx,
n b
1.950$ per annum
_ 99.459 Equivalent rate of disco-ant approx.
Low
2.140$ per aanum
(59 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 23,176,000 $ 19,012,000
New York
1.671,984,000
Philadelphia
43,474,000
Cleveland
73,720,000
Richmond
17 922,000
Atlanta
32,090,000
Chicago
246,585,000
St. Louis
52,560,000
Minneapolis
19,297,000
Kansas1City
56,291,000
Dallas
37,381.000
San Francisco
105,596,000
TOTAL $2,380,096,000 $1.500.400,000
0O0

Accepted
^,32MOO
27,0u4,000
48,720,000
16,412,000
31,390,000
^lli' noo
^Sc^nnn
lj>, 297,000
54,o40,000
^ ^'nm
o3,5bj.Q00

i LX »»/

- 2

In the East, United Aircraft in Connecticut went from 25$ participation to approximately 80$ by adding 29,550 more employees to Payroll Savings.

In Hew York, Republic Aviation raised its participation percentage

from 26.7$ to over 94$, with more than llj^OOO new payroll savers.
Among other aircraft companies are Aerojet Engineering, 92$ participa
tionj the Garrett Corporation, 62$, and Rohr with 72$ participation.

426

Suggested Treasury Release

Release Morning Newspapers
Wednesday, July 23,
19§3

) J?

Secretary of the Treasury Humphrey announced today that the 1953
Payroll Savings campaign for the purchase of U.S. Savings Bonds in the
Aircraft industry has exceeded its goal. In a wire sent to Robert E.
Gross, President, Lockheed Aircraft Corporation, and Chairman of the
industry-wide campaign, the Secretary said:
"Congratulations on reaching 120$ of quota in Aircraft Industry
1953 Payroll Savings Campaign. Adding over 120,000 new Bond
buyers to the Payroll Savings plan is a marvelous achievement.
Treasury Department greatly appreciates your wonderful leadership and cooperation of all others who made this record possible,"
ixcraft plants, large and small, gave vigorous support to the
YOM^MAM^k^vn

VJL**4xmJ

industry-wl^e^drive, and achieved exceptional increases in the number|
t-i^JLuu <tfmm<m<«*f j£xm*fi£m***y«& # » i ^ X 3 u ^ K ^ * M £ * **f**&*^f*

11 ry\

m i! ...iiigini TiKtjpffiftiiiw^iMiiwnrongrfrn-ifrrriiii• • T t i U mil' rim in iiiimwanrnrnTpnTiji, p u i ^ i i r i i M — r r m i

iDpifmrticipationVxrom
64$ tonwniliiTin
more thanIP~IT~TI n p i n nn Trnm bU/i> to more tr
iiigTi pTiTTmiTingr n pTP«rr"ny
'*

$&L X^~ /U*HfK~& 4*%&*0? (ml^^JrZL /** &*$*&%,> **$& 3fi *v -a^ft^*

96% / i t s Tuscon, Arizona, plant 'is /already over 99% •

^Kes^«««-—

I The Lockheed Aircraft plants in California and Georgia built
participation from less than 50$ to over 9k% adding more than 24,000
new yayroll savers. North AmericaJAviation in California and Ohio
has added more than 9,800 employees to its Payroll Savings Plan. In
Texas and Calif ornia* Consolidated Vultee went f rOm 32$ to 80$ participation, adding 20,000 payroll savers. ^Boeing Airplane Company in
Washington and Kansas has also added more than 10,000 payroll savers.

//

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

4
RELEASE MORNING NEWSPAPERS,
Wednesday, July 22, 1953.

H-20o

Secretary of the Treasury Humphrey announced today that the
1953 Payroll Savings campaign for the purchase of U. S. Savings
Bonds in the Aircraft industry has exceeded its goal. In a wire
sent to Robert E. Gross, President, Lockheed Aircraft Corporation,
and Chairman of the industry-wide campaign, the Secretary said:
"Congratulations on reaching 120$ of quota in
Aircraft Industry 1953 Payroll Savings Campaign.
Adding over 120,000 new Bond buyers to the Payroll
Savings plan is a marvelous achievement. Treasury
Department greatly appreciates your wonderful leadership and cooperation* of all others who made this record
possible."
Aircraft plants, large and small, gave vigorous support to
the industry-wide Payroll Savings Plan drive, and achieved
exceptional increases in the number of employees joining the plan
to buy Savings Bonds regularly.
The Lockheed Aircraft plants in California and Georgia built
employee participation from less than 50$ to over 94$ adding more
than 24,000 new payroll savers. North American Aviation in
California and Ohio has added more than 9,800 employees to its
Payroll Savings Plan. In Texas and California. Consolidated Vultee
went from 32$ to 80$ participation, adding 20,000 payroll savers.
Participation increased from 64$ to more than 96$ at the Hughes
Aircraft Company in Los Angeles, with 3,600 employees added.
Its Tucson, Arizona, plant is already over 99$. Boeing Airplane
Company in"Washington and Kansas has also added more than 10,000
payroll savers.
In the East, United Aircraft in Connecticut went from 25$
participation to approximately 80$ by adding 29,500 more employees
to Payroll Savings. In New York, Republic Aviation raised its
participation percentage from 26.7$ to over 94$., with more than
14,000 new payroll savers.
Among other aircraft companies which increased the number of
employees purchasing savings bonds are Aerojet Engineering, 92$
participation; the Garrett Corporation, 62$, and Rohr with 72$
oOo
participation.

428

- 3Mmafffchfo

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 194l, 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 differenc
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.

<y?Q
i C Km*

- 2j____te

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 reservations, non-competitive tenders for $200,000 or less without stated price
from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on

July 30, 1953

, in cash or other immediately available

funds or in a like face amount of Treasury bills maturing

July 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 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

430

TREASURY DEPARTMENT
Washington

, ,
/r-

~ *~~~* 7

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 23. 1953
an- ~ Treasury Department,
The ,_wwwitow^fwntoi^^

by this public notice, invites tenders

for $1,500,000,000 . or thereabouts, of 91 -day Treasury bills, for

*_*

tm

cash and in exchange for Treasury bills maturing
the amount of $1,499,924,000

July 30, 1953
in
mam
"' "
, to be issued on a discount basis under

competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated July 30, 1953 . and will mature
/ r- \

1

i' •.

____

October 29, 1953
, when the face amount will be payable without inip_$i
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
Daylight Saving
closing hour, two o'clock p.m., Eastern ®te_!___]__/time, Monday, July 27, 1953
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99*92$. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

431
RELEASE MORNING NEWSPAPERS,
Thursday, July 23, 1953.

H-207

The Treasury Department 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 July 30, 1953, inthe amount of $1,499,924,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated July..30, 1953, and will
mature October 29, 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 Daylight Saving
time, Monday, July 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 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 villi be received
without deposit from incorporated banks and trust companies and
from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 percent
of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or
reject any or all tenders, in whole or in part, and his action in any
such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from
completed
accepted
three
any one
decimals)
bidder
tenders
at the
will
of
Federal
inaccepted
accordance
be accepted
Reserve
competitive
with
in
Bank
full
the
on bids
bids.
at
July
the
must
30,
average
Settlement
1953,
be made
price
infor
or
cash
(inor

- 2 other Immediately available funds or in a like face amount of
Treasury bills maturing July 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 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
0O0
from any Federal Reserve Bank or
Branch.

ac_

IMMEDIATE RELEASE

,;

/

July 2\ 1953

rT-^^L

^-^

0 a

The Bureau of Customs announced today that the quota of 8,883,259
pounds for Mexican cotton of less t^an 1-1/8 inches in staple length'
for the year beginning September %.09 1952, was closed on February 26,
1953, by authorization for release of that total number of pounds of
cotton.
Before the release from customs custody of the cotton authorized
under the quota some entries were canceled and a portion of the cotton
was found to be of a staple length not subject to the short-staple
quota. As a result, the quota for cotton having a staple length of
less than 1-1/8 inches from'Mexico for the current quota year is unfilled by the amount of 679*262 pounds.
In order that all Importers may have an opportunity to share
in the 679,262 pounds -which'may be entered before September 20, 1953,
arrangements will be made for the presentation of entries of Mexican
short-staple cotton at I2r00 noon, eastern'standard time, or its
equivalent in other time zones on August 5, 1953*

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

IMMEDIATE RELEASE,
Thursday, July 23, 1953.

H-208

The Bureau of Customs announced today that the quota
of 8,883,259 pounds for Mexican cotton of less than 1-1/8
inches in staple length for the year beginning September 20,
1952, was closed on February 26, 1953, by authorization
for release of that total number of pounds of cotton.
Before the release from customs custody of the
cotton authorized under the quota some entries viere
canceled and a portion of the cotton was found to be
of staple length not subject to the short-staple quota.
As a result, the quota for cotton having a staple length
of less than 1-1/8 inches from Mexico for the current
qaiota year is unfilled by the amount of 679,262 pounds.
In order that all importers may have an opportunity
to share in the 679,262 pounds which may be entered
before September 20, 1953, arrangements will be made for
the presentation of entries of Mexican short-staple cotton
at 12:00 noon, eastern standard time, or its equivalent in
other time zones on August 5, 1953.

0O0

434

tEMASl HORNING NEWSPAPERS,
Tuesday, July 28p 1953.

HT ~~
/

The treasury Bepartaaeiii announced last evening that the tenders for

$1,500,000*000, or thereabouts, of 91-day treasury bills to be dated July 30 and

mature October 29, 1953, which were offered on July 23, were mpmnmd at the Feder
Reserve Banks on July 27.
The details of tfeift issue are as follow®!
total applied for - 12,262,326,000
Total accepted
- 1,500,209*000 (includes t_60,la6,OGO entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average priee
* 99*k$$ Equivalent rate of discount approx. 2.157# P** annum
Range of accepted competitive bides
High - 99.494 Equivalent rate of discount approx. 2.002$ per annum
Low

- 99.452

"

m

a

n

n

2*l6B%

(79 pmnmm of the amount bid for at the low priee was accepted)

District

Total
Applied for

Boston # 34,801,000 $ 30,801,000
Mew fork
1,584,558,000
Philadelphia
3l*,328#000
Cleveland
69,937,000
Richmond
16,048,000
Atlanta
29,884,000
Chicago
252,107,000
St. Louie
43,598,000
Minneapolis
9,323,000
Kansas City
54,254,000
Ballas
41,839,000
San Franeise©
91,149,000
Total #2,262,326,000 #1,500,209,000

Total
Accepted
929,008,000
19,828,000
61,937,000
12,038,000
28,658,000
214,461,000
31,141,000
9,323,000
52,544,000
40,747,000
69,723,000

»

«

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

435

RELEASE MORNING NEWSPAPERS,
Tuesday, July 28, 1953-

H-209

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated July 30 and to mature October 29, 1953, which were offered on
July 23, were opened at the Federal Reserve Banks on July 27.
The details of this issue are as follows:
$2,262,326,000
1,500,209,000 (includes $260,416,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
99.455 Equivalent rate of discount approx.
Range of accepted competitive bids: 2.157$ per annum

Total applied for
Total accepted

High

- 99.494 Equivalent rate of discount approx.
2.002$ per annum
Low
- 99.452 Equivalent rate of discount approx.
2.168$ per annum
(79 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
TOTAL
San Francisco

Total
Applied for
; 34,801,000
1,584^558,000
34,828,000
69,937,000
16,048,000
29,884,000
252,107,000
43.598,000
9,323,000
54,254,000
41,839,000
$2,262,326,000
91,149,000
0O0

Total
Accepted
30,801,000
929,008,000
19,828,000
61,937,000
12,038,000
28,658,000
214,461,000
31,141,000
9,323,000
52,544,000
40,747,000
$1,500,209,000
69,723,000

436

-33d_-_,
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 194l, 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 differenc
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.

437

- 2-

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
Treasury Department
will be made by the _c______^KXX&_t_i_c£_™_____5K 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 reservations, non-competitive tenders for $200,000 or less without stated price

from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in/accordance with the bids must be made or completed at the Federal Re- serve Bank on August 6, 1953 , in cash or other immediately available
i anv
*
x$_tx
funds or in a like face amount of Treasury bills maturing August 6. 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

<38

____£TREASURY DEPARTMENT
Washington

W

XX )0

FOR RELEASE, MORNING NEWSPAPERS,
Thursday. July 3Q, 1953
»
Treasury Department
The/5bmK5__tx%x_±xJ--^^

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 August 6. 1953
, in
^ax
the amount of % 1,500.380.000 , to be Issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated August 6» 1953 ,

an

d will mature

a).'« f

November 5 f 1953
, when the face amount will be payable without in:__X
terest. They will be issued in bearer form only, and in denominations of

$1,000, 15,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value),.
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour., two o'clock p.m., Eastern/$i___ta± time, Monday, August 3, 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 may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service

RELEASE MORNING NEWSPAPERS,
Thursday, July 30, 1953..

W A S H I N G T O N , D.C.

H-210

The Treasury Department 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.August 6, 1953, in
the amount of $1,500,380,000, to be issued on a discount basis under
competitive and non-competitive bidding,as hereinafter provided.
The bills...ofs this series will be dated August 6, .1953, and will
mature November 5, 1953* when the face amount will be payable with-,
out interest. They will be issued In bearer form" only, and in;
denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and:
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two. o'clock p.m., Eastern Daylight Saving
time, Monday, August 3, 195.3- Tenders will not be received at the
Treasury i).ep.artment,,Washington. Each tender must,be for an even
multiple of, $1,000, and Inathe case of competitive tenders the price
offered must/,.be expressed...on the basis of 100, with not more /than
three decimals, e. g.?,,..,951.925,-,- Fractions may not be used. It is
urged that tenders be.^^deXon the printed forms and forwarded in
the special envelopes'whici;-'will be supplied by Federal Reserve Banks
or Branches on applic.atTpn.;therefor.
Others than banking' institutions will not be permitted to submit
tenders except for their ovin 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 Dills' 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 Treasury Department of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thex^eof. 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
any
one
accepted
will
be accepted
competitive
in full
bids.
at Settlement
the
average
for
price
accepted
(in from
three
tenders
decimals)
in bidder
of

- 2 -

accordance with the bids must be made or completed at the Federal
Reserve Eank on August 6, 1953, in cash or other immediately available funds or in a like face amount of Treasury bills maturing
August 6, 1953. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences* between the par
value of maturingybills accepted in exchange and the.issue price o f
the new bills.
The income derived from Treasury bills, whether interest or
gain f roiri the sale-or-:otheradisposition ;of the bills, shall not have
any exemption, as--such, and loss fr.om th§. s^le or other disposition
of Treasury billsas'hall not'have :any;special treatment, as such,
under the Internal Revenue Code, .'..oralaws 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 .
frori'alltaxationanow or hereafter'imposed on the principal ,or ".' ,?
interest : thereof-by any State,• or any of.. the possessions of the.
United'State's,- or by any local'taxing authority. For purposes of • ,
taxation the amount of discount at which Treasury bills are
orginally sold by the United States shall be considered to be
interest,'"' tinder-Section 42 and 117 (a) (l).of the Internal Revenue
Code/"a^amended- by Section 115 of . the. Revenue Act of 1941, the'.-. < -:...
amount. ;6f discount at which-bills: Issued, ihfreunder are sold shall,,
not be considered to accrue' until. ;suehabiilsyshall be sold, redeemed.
orcotherwise disposed,'of, .ahd suchabil 1 s. ar.e•_excluded from consideration/ as" capital assets." Accordingly; theaowner of Treasury, bills
(other, than; life insurance- companies) .issued hereunder need-Include.';;
In ; hi sainc ome ; tax ; return ohl^r the': difference, 'between/ the price paid-for* "such''biTls;" whether oft-original issue or. o n subsequent purchase.^a
and the amount actually received either upon ^ale : or redemption-at .."
maturity during the taxable year for which the; return is made, as
ordinary gain"or loss.
-,., .-'—>•;.. .,-,
a.,.
coOo./
.^easury Department Circular No. 4l8, as .amended, and this y
notice, prescribe the terms of the Treasury bills and .gpvernL the,,,
conditions >of their issue, copies of :the. circular may be -obtained^. -,v.,j
from any Federal Reserve Bank'' or -Branch. •: a-, 1. -•; •.,, .,-,•. ,-y; ;-.<.

440

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441
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE August 3, 1953
STATEMENT BY SECRETARY HUMPHREY
The Senate Finance Committee has decided to hold for
later action the request of the Administration for an
increase in the debt limit which has already been passed
by the House of Representatives.
This Administration has stated time and again that
it will do everything in Its power to further reduce expenditures which will not jeopardize the security of this
country. It will reexamine its programs and continue to work
at saich reductions every day, every week and every month
during the year.
However, this Administration inherited such a large
amount of obligations contracted for during the past few years
for which no money was provided and which will have to be
paid for during the corning months that we must raise additional
cash to pay for them as they come due. This is in addition to
paying the current expenses of the government which have just
been voted by this Congress.
The present debt limit severely restricts flexibility and
will more and more limit our ability to administer the financial affairs of the government. Me asked that the debt limit
be raised only so that we could better handle the government's
requirements for raising money to pay for these past obligations, it does not in any sense mean the slightest retreat
from our determination which already has been clearly demonstrated, to cut down on spending at every possible turn.
We will make every effort to comply with the demand of
the Senate Finance Committee to postpone the necessity for
action by it as long as we can and until the next regularsession of the Congress if possible.
H-211

TREASURY DEPARTMENT
Washington

FOR RELEASE A.M. Newspapers, Tuesday, August k9 19$3
(NOTE TO CORRESPONDENTS: The following address by
Treasury Secretary Humphrey will be made at the State
Dinner of the Governors1 Conference in the Olympic Hotal,
Seattle, Washington* Due to uncertainty as to the
Secretary1s exact time of arrival and delivery of the speech,
the remarks are released for a.m. newspapers, Tuesday,
August k on a "prepared for delivery" basis until Seattle
confirms that they are actually being delivered.
Nils A. Lennartsori
Assistant to the Secretary)

Address by Secretary of the Treasury
George M. Humphrey at State Dinner of
the Governors1 Conference, Olympic
Hotel, Seattle, Wash., Monday night,

August 3, 1953.

SAVING MADE AMERICA

Because somebody saved America grew productive, prosperous and powerful.
Who are the savers in this country and who borrows the money?
Why do they save?
What stimulates saving and what deters it?
Who benefits from saving and why is it so important?
These are some of the questions that all of us should think through and
understand better when we are discussing such controversial subjects as higher
interest rates and sound, honest money because they are directly related to
each other and just as directly related to the productivity, prosperity and power
of America. Let us think of them in order for a moment in the light of the facts
and experience.
Who are the savers in America?

H-212

• 2 a*

/ fin

Strangely enough^ there are more savers in this country than there aro
borrowers of money, (excluding- of course the Government iia&Lf) so that
actually there are mora people who-receive higher interest tj_3H there are
those who pay it* At once you say^ «l dou&t. that statement*^ and I ,
think I know the reason why. Obviously a man xfho has bought furniture, household
appliances or an automobile on credit payments is frequently reminded when each
payment becomes due that he owes that money and must pay both the principal and
the interesto The same is true of the man with a mortgage on his house or farm,
or any other borrowers of money. But the saver in many cases has not so direct
a contact, and oftentimes doss not realize how directly he is affected.
Of course, a man who owns a mortgage and receives interest and payments on
it~~and there are millions of them«^or a landlord who receives rent, or a depositor
in a savings bank or a share holder in a building and loan association, or any
one of a number of others who have direct obligations owed to them realizes
just as effectively as do the debtors what a higher interest rate can mean to
him» But there are millions of other Americans—all those millions who carry
any kind of insurance and millions who are looking forward to pensions or retirement payments or other forms of future receipts, patients in hospitals,
beneficiaries of charitable organizations and all endowed institutions'—who do
not realize how directly a higher interest rate benefits them. But it does so
just the same©
Millions and millions of our people receive interest in one form or another.
More than k$ million families and 122 million individuals have investments such *
as life insurance, savings accounts, E bonds, annuities and pensions* publicly
owned stocks, Government bonds, privately held stocks, real estate mortgages,
and corporate bonds.
When a higher interest rate is paid it does not go just to a few bankers,
as some of our Senators and others who have commented on this subject would
lead you to believe, but it goes to benefit directly and to encourage the savings
of millions and millions of others.
Why do people save? What stimulates them to do so, and what deters them
from it? There are many stimulants to saving stemming from the sterling qualities
of selfreliance and protection of onefs own future and that of one's family,,
which is such a strong American characteristic. These include the desire to own
your own home or farm, hoping some day to be your own boss, to go into business
for yourself, to have a little nest egg laid away for a rainy day, saving for an
education, and many, many other reasons—too many to enumerate. They are all
effective but they all are diminished if money when saved earns little, if anything; and conversely, they are intensified if a fair rate of interest is
returned. In fact, perhaps the most direct stimulant to saving is the return
from earnings on the money, whether it comes directly or through extra benefits
on insurance, pensions or in other forms.
But of even greater significance is the soundness and honesty of the money
that is saved© Unless the people can believe in the continued honesty of their
dollar, if they fear that over a few years it will greatly depreciate or even
disappear in value, no other incentive to saving is of much avail. Fair interest
and honest money, the value of which can be depended upon over the years,
combine to form the greatest incentives and the essential requirements which
induce people to save.

-3-

444

Now, who also benefits from savings indirectly?
Of course, as we have said$ the millions who have insurance and pensions
and savings deposits and property in any form are benefited directly through
ownership of their savings. Also those who benefit from all endowed charitable,
educational and other such institutions, and many others in many other ways0
But what of the country as a whole? What of those who have not saved but live
and work in America?
Savings have made America. Because somebody saved, we have jobs, we have
all kinds of things for better living* We have food, transportation and everything that each of us has each day, not only for daily necessities and comforts,
but for livelihood itself0
Did you ever stop to think why Americans have a higher standard of living
than others in the world? Why American productivity is greater than the productivity of any other nation? Why we are so powerful and strong? Just by themselves an American's two hands are no stronger, no better, not much more
effective than those of the citizen of any other nation* Why is it then that
American hands can do so much more than any other hands in all this world?
Perhaps an American's hands can do more partly because of more widespread
education in this country.
But there is a much more basic reason without which the highest educational
level would be unproductive. The real reason is the fact that somebody savedo
Because somebody saved there were funds available which attracted expert
management to invent, design'and build efficient machinery, factories, mills,
explore for and develop mines and oil wells, provide transportation, and power
plants, which through management and organization put tools, equipment and
tremendous power into every pair of hands in this country backed up by thousands
of dollars of investment, to multiply by tens, twenties and hundreds the strength,
the ability and the effectiveness of those American hands as compared with any
other hands elsewhere©
That is why, and the real reason why, Americans can create so much more than
others in this world.
Because we can create more we have more, and that is why we have the highest
standard of living on earth and stand in the earth's most powerful position.
Because somebody saved, Americans have jobs today. Because somebody saved,
Americans have and are what they are today.
A skilled mechanic who, in his spare time, decides to build a new kitchen
on his house with the help of a neighbor or a friend, takes great pride when
this job is finished and thinks he did it himself—but, did he? How much help
did he get because others had previously saved? He worked with common tools,
but the head of his hammer, his nails, chisel, plane and saw required great
steel mills before he could have theme The lumber that he used required logging
operations and saw mills; his floor coverings and walls required building
material operations; the paint came from chemical plants; the ice boxd stove.,
washing machine and fixtures meant copper mines, iron ore and coal mines, steel
and brass plants and manufacturing operations, and many of the materials came
long distances in ships, over railroads or in trucks, which in turn required

•* k m

445

more steel, more metals, and more plants; and so it goes*
That single kitchen which that man thought h© built by himself required
millions and millions of dollars of savings and the employment of thousands of
people who, unseen by him, lent a helping hand that made his kitchen possibles
All those jobs which built that kitchen were created by and dependent upon th©
fact that somebody saved.
There is no one in America who is not better off than he othervd.se would be
because somebody saved^ even though he may not yet have done so himself o That
is why fair interest rates and sound, honest money are of benefit to every man9
woman and child in this lando That is why any manipulation or restriction that
unduly depresses a fair rate of interest^ or that tends in any way to depreciate
and lessen the value of the American dollar^ is directly to the disadvantage and '
threatens the very existence of life as it is in America tcdayc
Do not let anyone fool you into ^jinking that no one benefits from fair
interest rates but some banker*, Do not let anyone fool you into believing that
ronning Government deficits, increasing inflation!, and depreciating the value of
our money is not directly harmful to every citizens
When nobody saves, when nobody has any money to help to put tools and power
into American hands, they will again be on the road to becoming no better than
the hands of the savagee

Not only the prosperity iM this country, not only-the-creation- of more jobs in
this country ^ but the military security Q£ this country as well as the economic
security are all inextricably tied into stimulating and not deterring the simple
fast that somebocty" saveso
Against this background^ I should like to talk for a moment about some of
our current policies**
I should like to emphasize again that this Administration does not havei9
and never has had, a "hard money" policy as our critics sometimes charge** meaning
as they say hard-to*get money and hard times«
Instead of hard money the goal of this Administration is honest moneys
By "honest money" we mean money that will buy as much next week, next month
and next year as it will buy today0
If by better handling of the Government's financial matters, this Administration can provide more honest money it will be a great service for the laborer^
the office worker, the pensioner-™.in fact for every citizen.
Americans by tradition expect honesty in all thingso This Administration
is determined to put an end to further decline in the value of our money and
provide again an honest dollar.
The Federal Reserve System has the main responsibility for monetary policy
in this Government. This System is non-partisan, and since the accord with the
Treasury in 195>lj the Federal Reserve System has been helping to promote an
honest dollar by not artificially enlarging the supply of money for the purpose

44b
of keeping the interest rates on Government issues low. The new Administration
has confirmed this policy and assured the Federal Reserve System that it will have
the prime responsibility for maintaining the money and credit situation free of
artificial restraints in the best Interests of all Americans©
The Federal Reserve has no hard money policy* It has simply allowed the
demand for money to have its normal and natural effect and respond to the law
of supply and demand. It has supplied additional funds to keep pace with normal
growth©
The Treasury's main role in this business of keeping honest money lies in
its handling of the public debt© That debt is now over $2?2 billicn^
and the manner in which refinancing and the placement of new issues is handled
can effect the entire nation's well-being. The Treasury is trying to make the
debt sounder by gradually extending the length of its maturities. Now nearly
three-quarters of the debt matures itfithin less than five years.
In April we took a first step in trying to convert some of this into sounder
and less inflationary issues by putting out a 30-year bond at an interest rate
of 3i percent© That rate was higher than the coupon rate for previous issues
but it reflected the going rate at the time of issue as fixed by the current
daily market purchases and sales at the time the bonds were sold* Gradually and
at opportune times further long-term issues will be sold, but care will always be
exercised not to press the market unduly in competition with other state,
municipal and private financing.
In the past supposed savings made by artificially holding down the interest
rate involved a tremendous increase in the cost of everything through the
shrinkage In the value of the dollar.
An honest dollar means a lot to you Governors, too© Just compare in your
minds what it cost a few years ago to build a two-lane concrete highway; or a
schoolhouse or improvements of any kind with the costs of today* And a similar
story goes down the line of all state, county and municipal expenses. The lack
of good, honest money or the presence of inflation has caused large increases in
the amounts of money you have to raise to do the things that you have to do.
On the national scale, it cost the states about $0 percent more to operate
in 1953 than it cost in 19U6.
Higher interest rates on borrowed money are quickly noticed and resisted©
But the stealthy capture by inflation of so much of the buying power of your
dollar over the past few years is something which is much more important..
State and local governments are not just borrowers; they are investors,
too. We are glad to find that your pension and retirement funds are so interest-*
ed in the purchase of Government securities. Your financial people have found
that there is no better place to put short-term funds than in our Treasury bills,
certificates and notes. We had an interesting and successful meeting with a
nuiriber of state fiscal officers at the Treasury in May of this year© State and
local governments own more than $11 billion of United States Government securities
at the present time© That is almost twice as much as they held at the end of
the war, and 20 times as much as they held before the war began. We are working
with your financial officers to better meet their requirements and encourage
their purchases of our securities.

am O as

447

Another matter that is of great importance to you as Governors and to us in
the new Administration is the establishment of better relationships between the
federal? state and local governments*.
On July 10 President Eisenhower signed the bill which creates a Commission
on Intergovernmental Relations to make a thorough study of the relationships
between the Federal Government and the states and their political subdivisions®
We realize that during the past twenty years particularly the Federal
Government has come into many fields, which under the Constitution are the
primary responsibility of states and local governments o This has resulted in
duplication and waste and blurred the responsibility of local governments. A
major area of this sort of development has been the growth of Federal grantsin-aid for more than thirty programs at present involving Federal expenditure of
more than $2 billion a yearj In some cases the Federal Government has apportioned fixed amounts among the states; in others it meets state expenditures; and in
a few it finances the entire state expenditure© While these grants have greatly
stimulated some state activities, they have complicated state finances and often
made it difficult for the states to provide funds for other important services.
It is the hope of this Administration that the new Commission on Inter*
governmental Relations will come-up with recommendations for straightening out
the lines of authority, and the proper areas of action for both state and Federal
Government, so that friction, duplication and waste can be eliminated,* It is
our hope, and I am sure it is your hope§ that we can obtain a sounder relationship between all divisions of government in the nation*
It is sometimes said that the Federal Government has come into some
traditionally state activities because of the failure of other levels of government
to provide services which citizens demanded^ It is the philosophy of this
Administration that at all levels of government we must try to develop more tho
traits of individual responsibility^saving5 enterprise and i_iitiativa*«~the traits
which have made this nation greats
We have a solemn trust to see to it that these traits in individuals, which
have made America _aj& fostered and allowed to develop and grow* In that way
America will be stronger against all possible foes© It will provide more and
better things for more people than we have ever dreamed of before^
The thrift and savings of our forefathers laid the foundations upon which
all that we now have has been builto We have incurred tremendous debts but they
are not overpowering if intelligently and carefully managed* Let us continue to
build a stronger, better America based on those simple time proven virtues which
have stood us in such good stead in our hour of need, Let us always remember
how much all that we have in our life every day was created by the self«ra_iaf^?o^
industry and initiative of millions of Americans ••» a;id because somebody savede

oCo

448

I*

H

mm&m mmmo MFSPAWIS,
faooday, Augaot k, W$3*

too Treasury Bopii?t»amt anaonncoi loot evonlJig that the t*ad*x* tm* 11,500,000,000,
or thereabouts, of 91-day Treasury biHs to b® dated Angaoi § md to nature Hovoasbea? $,
19$3, nfcidi mm offorod on #nly 30, rere o^onod at to© Fodoral loservo Banks on
August 3*
the dotails of this issue are am follows $
Total appHei for - $t*2»09,602,QOO
total aooopted
- 1,500,1*09,000

(includos 1^61,1101,000 entered on a
non-competitive basis and accepted in
full at tfoo avoimgo prloo shown bolow)
Average prica
- 99.1*60 Rgplvalont rat® of discount approx* 2.136K per annua
Rango of aeeafiad competitive bide*
High - 99.U&1 Equivalent rata of diooonnt approx. 2»053# par annum
n
LOW
- 99*k$9
a
n
a
a
3„Jth<# «

»

(9© percent of tna aaonnt Mi for at tha low pries mmm aooopt©4)
Fodoral Boowv®
Dlatrlo*

Total
Applied for

Boston
How Tork
Philadelphia
Gloveland
'Rlohstond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Freneiaoo
TOTAL

|
25fliiO#000
l«688f52iU,00O
50,180,000
53,6.97,000
21,563,000
1*Q,1$»5,000
262,6lt5,000
Jb0,322t000
17,073,000
69,196,000
Ii6,?6*,000

Total

»f^
$

,,

21,790,000
959,80a, 000
29,520,000

hM77*ooo

Ut, 773,000
26,235,000
231,312,000
20,672,000
13,738,000
55,k03,ooo
31,51*2,000

!*_tlft*28

n93i#>m

t_»bC9,601,000

$i,5oo,to)9,ooo

,

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Tuesday, August k, 1953

H-213

The Treasury Department announced last evening that the
tenders for $1,500,000,000, or thereabouts, of 91-day Treasury
bills to be dated August 6 and to mature November 5S 1953, which
were offered on July 3°, were opened at the Federal Reserve Banks
on August 3.
The details of this issue are as follows:
Total applied for - $2,409,602,000
Total accepted
- '1,500,409,000 (includes $261,481,000
entered on a non-competitive basis and accepted
in full at the average
price shown below)
Average price
- 99-460 Equivalent rate of discount
approx. 2.136$ per annum
Range of accepted competitive bids:
High - 99.481 Equivalent rate of discount approx.
2.053$ per annum
Low
- 99-459 Equivalent rate of discount approx.
2.1k0f0 per annum
(90 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston
$
25,140,000
New York
1,688,544.000
Pniladelphia
50,120,000
Cleveland
53,697,000
Richmond
21,583,000
Atlanta
40,195,000
Chicago
262,645,000
St. Louis
40,322,000
Minneapolis
17,073,000
Kansas city
69,198,000
^Has
46,762,000
San Francisco
94,323,000
TOTAL $2,409,602,000 $1,500,409,000
0O0

Accepted
$

21,790,000
959,804,000
29,520,COO
44,277,000
14,773,000
26,235,000
211,312,000
20,672,000
13,738,000
55,403,000
31,542,000
71,343,000

450

3MRaDX4tl sW_fc$E,
Konday, A s m * }, ..^h-

#---/</

?scretary Iwpiirey amounosd tsday tamt tha sobaorlptio® oooleo
w I H ©pan on Wodnooiay, Aafast 5, for the eacehango of the 2 percent
Cortifioato® of li^^todnoo® of Ssrlas C-1953 whlab mUl

mtore

Angnat If, 1953, in tha amount of *2,881,576,000.
Tbe *w_4sx* of tfeass oortlfioatos will bo of fared ono-ysar
*Zyfa

poreont eartlfloatas of *j_Mtariasss in. s_*_Mag* for tbair

preoont holdings*

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

IMMEDIATE RELEASE,
Monday, August 3, 1953.

*

14
214

Secretary Humphrey announced today that the subscription
books will open on Wednesday, August 5, for the exchange of
the 2 percent Certificates of Indebtedness of Series C-1953
which will mature August 15, 1953, in the amount of
$2,881,576,000.
The holders of these certificates will be offered oneyear 2-5/C percent certificates of indebtedness in exchange
for their present holdings.

oOo

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Wednesday, August $9 1953*

H-2_5

The Treasury today announced the details of the offering, through
the Federal Reserve Banks, of 2-5/8 percent Treasury Certificates of
Indebtedness of Series D-1954, open on an exchange basis, par for par,
to holders of 2 percent Treasury Certificates of Indebtedness of Series
C-1953, in the amount of $2,881,576,000, maturing August 15, 1953.
Cash subscriptions will not be received.
The certificates now offered will be dated August 15, 1953, and
will bear interest from that date at the rate of 2-5/8 percent per
annum, payable with the principal at maturity on August 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.
Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Office of the Treasurer of the United States,
Washington, and should be accompanied by a like face amount of the
certificates to be exchanged. The full amount of interest due on the
maturing certificates will be paid to the subscribers following
acceptance of the certificates.
The subscription books will close for the receipt of all subscriptions at the close of business Friday, August 7« Subscriptions
addressed to a Federal Reserve Bank or Branch, or to the Treasurer
of the United States, and placed in the mail before midnight August 7
will be considered as having been entered before the close of the
subscription books.
The text of the official circular follows:

UNITED STATES OF AMERICA
2-5/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-1954
Dated and bearing interest from August 15, 1953 Due August 15, 1954

1953
Department Circular No, 927

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, August 5, 1953*

Fiscal Service
Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1* The Secretary of the Treasury, pursuant to the authority of
the Second Liberty Bond Act, as amended, invites subscriptions, at par,
from the people of the United States for certificates of indebtedness
of the United States, designated 2-5/8 percent Treasury Certificates of
Indebtedness of Series D-1954, in exchange for 2 percent Treasury Certificates of Indebtedness of Series C-1953> maturing August 15, 1953 • The
amount of the offering under this circular will be limited to the amount
of maturing certificates tendered in exchange and accepted,
II, DESCRIPTION OF CERTIFICATES
1* The certificates will be
interest from that date at the
with the principal at maturity
subject to call for redemption

dated August 15, 1953* and will bear
rate of 2-5/8 percent per annum, payable
on August 15, 1954. They will not be
prior to maturity,

2, The income derived from the certificates shall be subject to
all taxes, now or hereafter imposed under the Internal Revenue Code,
or laws amendatory or supplementary thereto. The certificates shall
be subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed on the 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 moneys. They will not be acceptable in payment of taxes,
ka Bearer certificates will be issued in denominations of
$1,000, $5,000, $10,000, $100,000 and $1,000,000. The certificates
will not be issued in registered form©
$a The certificates will be subject to the general regulations
of the Treasury Department, now or hereafter prescribed, governing
United States certificates.

- 2

III. SUBSCRIPTION AND ALLOTMENT
lw Subscriptions will be received at the Federal Reserve Banks
and Branches and at the Office of the Treasurer of the United States,
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 the right to reject
any subscription, 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 August 17, 1953, or on later allotment, and may be
made only in Treasury Certificates of Indebtedness of Series C-1953*
maturing August 15, 1953, which will be accepted at par, and should
accompany the subscription. The full amount of interest due on the
certificates surrendered will be paid following acceptance of the
certificates,
V. GENERAL PROVISIONS
1» As fiscal agents of the United States, Federal Reserve Banks
are authorized and requested to receive subscriptions, to make allotments
on the basis and up to the amounts indicated by the Secretary of the
Treasury to the Federal Reserve Banks of the respective Districts, to
issue allotment notices, to receive payment for certificates allotted,
to make delivery of certificates on full-paid subscriptions allotted,
and they may issue interim receipts pending delivery of the definitive
certificates.
2, The Secretary of the Treasury may at any time, or from time
to time, prescribe supplemental or amendatory rules and regulations
governing the offering, which will be communicated promptly to the
Federal Reserve Banks.

G. M. HUMPHREY,
Secretary of the Treasury.

4^
rKJKS

- 3 ___$_C
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 194l, 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.

- 2 -

dealers in investment securities. Tenders from others must be accompanied
by payment of 2 percent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company*
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
Treasury Department
will be made by the/ihBtt3--_i3au-^^
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 reservations, non-competitive tenders for $200,000 or less without stated price

from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted tenders
in accordance with the bids must be made or completed at the Federal Reserve Bank on August 13, 1953 3 in cash or other immediately available
funds or in a like face amount of Treasury bills maturing August 13> 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

457

"^

1

IV-I. t -—-••1-lr

**%,**{

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, August 6, 1953
Yi y

•

Treasury Department
The tmSttrKtoopp^^

by this public notice, invites tenders

for $1.500.000,000 * °r thereabouts, of 91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing August 13, 1953 3 in
the amount of $ 1,500,569^000 , to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The bills
of this series will be dated August 13, 1953 , and will mature
xfcc
November 12, 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
Baylight Saving
closing hour, two o'clock p.m., Eastern j^karrcrtax'ft time, Monday. August 10, 1953
XXX
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with
not more than three decimals, e. g., 99.925. Fractions may not be used.
It is urged that tenders be made on the printed forms and forwarded in the

special envelopes which will be supplied by Federal Reserve Banks or Branch
on application therefor.
Others than banking institutions will not be permitted to submit tenders

except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, August g; 1953 *.±r-

WASHINGTON, D.C

H-216

The Treasury Department, 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 August 13, 1953,
in the amount of $1,500,569,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be dated August 13, 1953,
and will mature November 12,al953, when the face amount will be
payable without interest. Thgy will be issued in bearer ?0£*m
only, and in denominations ofr,4l,000, $5,000, $10,C00,$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,a»two o'clock p.m., Eastern Daylight Saving
time, Monday, August 10, 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 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 ,; ; a,
submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust;companies
and from.responsible and recognized dealers in investment, securities.
Tenders .from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the .tenders.
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those saibmitting 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 reservation's, noncompetitive tenders for $200,000 or less without stated price from
any one
bidder
will
beReserve
accepted
inoron
full
atlike
the
average
price
(in
pleted
other
accepted
three
immediately
decimals)
at
tenders
the Federal
of
in
available
accepted
accordance
funds
competitive
Bank
with
the
inAugust
a
bids
bids.
must
13,
amount
Settlement
1953,
be made
of
inTreasury
for
or
cash
comor

- 2 bills maturing August 13, 1953- Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for differences between the par value of maturlrig bills accepted in
exchange and the Issue price of the new bills.;.
. a., ,
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,aunder the Internal Revenue Code, or laws amendatory or
supplementary thereto a 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 sdid,
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 isnne :
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 isntie. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

4S9

RELEASE MORNING NEWSPAPERS,
PTfrj&day, August 11, 1953.

, /
> t "7
ft """"" ^ ' 1

The Treasury Department announced last evening that the tandem for $1,500,000,000,
or thereabouts, of 91-day treasury bills to b® dated August 13 and to nature

November 12, 1953* which were offered on August 6, were opened at the Federal Rese
Banks on August 10,
The details of this issue are as follows:
Total applied for - |2,363*408,000
Total accepted
- 1,500,959,000 (includes $29$>035,000 entered on a
non-competitive basi® and accepted in
full at the average price shown below)
Average price
- 99.465/ Equivalent rate of discount approx. 2.116$ per annum
Eange of accepted competitive bids:
High - 99.494 Equivalent rate of discount approx. 2.002$ per annum
Low

- 99-464

"

a

n

a

»

2.120$

(9$ percent of the amount bid for at the low priee Was accepted)
Federal Beserve
District

Total
Applied for

total
Accepted

Boston
New Xork
Philadelphia
Cleveland
Richmond
Atlanta
Ghicagc
St. Louis
Minneapolis
Kansas City
Pallas
San Francisco

I

#

Total

48,110,000
18,682,000
33,301,000
282,115,000
44,750,000
20,914,000
78,999,000
50,342,000
97,760,000

31#091,000
942,737,000
22,019,000
37,756,000
12,907,000
28,604,000
227,393,000
30,370,000
17,359,000
50,936,000
31,890,000
67,897,000

|2,36|,408,000

11,500,959,000

31,301,000

i,6i4,590,ooo
42,544,ooo

*

«

TREASURY DEPARTMENT
Information Service

\^V^/

WASHINGTON, D.C.

460
RELEASE MORNING NEWSPAPERS,
Tuesday, August 11, 1953-

H-217

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated August 13 and to mature November 12, 1953, which were offered
on August 6, were opened at the Federal Reserve Banks on August 10.
The details of this Issue are as follows:
Total applied for - $2,363,408,000
Total accepted
- 1,500,959*000 (includes $293,035,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.465/ Equivalent rate of discount approx.
2.116$ per annum
Range of accepted competitive bids:
High - 99.494 Equivalent rate of discount approx.
2.002$ per annum
low
- 99.464 Equivalent rate of discount approx.
2.120$ per annum
(95 percent of the amount bid for at the low price was accepted)
Federal^ Reserve Total Total
District
Applied for
Boston '
$
31,301,000
New York
1,614,590,000
Philadelphia
42,544,000
Cleveland
48,110,000
Richmond
18,682,000
anta
^y
33,301,000
Chicago
282,115,000
St. Louis
44,750,000
Minneapolis
20,914,000
SaS
ni\
City
78,999,000
allas
£
50,3^2,000
San Francisco
97,760,000
TOTAL $2,363,408,000 $1,500,959,000
11

0O0

•

1

in

1

Accepted
$

31,091,000
942,737,000
22,019,000
37,756,000
12,907,000
28,604,000
227,393,000
30,3^0,000
17,359,000
50,936,000
31,890,000
67,897,000
•

1

1 1 1. m

1

.

461

STATUTORY

DE&T

TREASURY DEPARTMENT
Fiscal Service

LIMITATION

AS O F J u l y 3 1 , V$3

. ..

Washington, AugUSt 1953

)
Section 21 of second Liberty Bond Act, as amended, provides that the face amount of obiigations issued
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury) "shall not
exceed in the aggregate $275,000,000,000 (Act of June 26, 1946; U.S.C., title 31» sec. 757b outstanding at
any one time. For purposes of this section the current redemption value of any obi igat ion 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:
,
_
M
Treasury bills
$20,206,900,000
Certificates of indebtedness
.. , 2 1 , 7 5 5 , 5 5 0 , 0 0 0
Treasury notes
35*l60,800,700 % 11,123 ,2$09100
Bonds Treasury
81,2.32,335,600
Savings (current redemp. value)
57,871,357,220
Depositary
444,077,000
Armed Forces Leave
Investment series
13,231,179,000
152,778,948,820
Special Funds - . ^_ , ^^
Certificates of indebtedness
Treasury notes
Total interest-bearing
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

26,091,934,000
14,502,44,2.900

40,594,376,900
27.0,496,576,420
237,065,300

Uo,_9o,j>Jo
1,438,624
1,302,000,000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F-H.A.
61,775,236
Demand obligations: C.C.C.
Matured, interest-ceased

1,351,736,960
272,085,378,680

61,775,236
1,167,825
62,943,061

Grand total outstanding
Balance face amount of obligations issuable under above authority

27-2,148,321.741
2,851.678.259

Reconcilement with statement of the Public Debt July 31, 1953
(bate? .
(Daily Statement of the United States Treasury, J u l j 31,1953.)
(Date)

. . . ..
Outstanding Total gross publ ic 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

H-Uf
ID • OAS • DC

272,669,407,740
62.943,06l_
272,732,350,801
584.O29.06Q
272,148,321,741

STATUTORY DEBT LIMITATION
AS OF JULY 31, 1953

August 11, 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 obligations
guaranteed as to principal and interest by the United States (except such guaranteed
obligations as may be held by the Secretary of the Treasury), "shall not exceed in
the aggregate £275,000,000,000 (Act of June 26, 1946; U.S.C., title 31, sec. 757b),
outstanding at any one time. For purposes of this section the current redemption'
value of any obligation issued on a discount basis which is redeemable prior* to
maturity at the option of the holder shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outs-andirg
Obligations issued under Second Liberty Bond Act, as amended
Interast-bearing:
Treasury bills,,
,.$20,206,900,000
Certificates of indebtedness... 21,755,550,000
Treasury notes,....
35*160,800,700 $ 77,123,250,700
Bonds '
Treasury........
81,232,335,600
Savings (current redemp.value)57,87I,357,220
Depositary.. .,
„. „
444,077,000
Armed Forces Leave..........c
«Investment series
13,231,179,000 152,778,948,820
Special Funds Certificates of indebtedness. 26,091,934,000
Treasury notes
,
14,502,442,900

40,594,376,900

Total interest-bearing„*. c .TT^7n*HTrrr:.^f074PB37c~;ir20
Matured, interest-ceased
....« 0 .<>.....
237,065,300
Bearing no interest:
War savings stamps.....
48,298,336
Excess profits tax refund bonds..
1,438,624
Special notes of the United States:
Internal1 Monetary Fund series. 1,302,000,000
1,351,736,960
Total
TT.TTV. ...... ,^757085, 378, 680
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
61,775,236
Demand obligations: C.C.C. „....
61,775,236
Matured, interest-ceased
1,167,825
62,943,061
Grand total outstanding,
272,148,321,741
Balance face amount of obligations issuable under above authority
2,551,67b1,2%?
Reconcilement with Statement of the Public Debt - July 31, 1953
(Daily Statement of the United States Treasury, July 31, 1953)
Outstanding Total gross public debt
272,669,407,740
Guaranteed obligations not owned by the Treasury
62,943,061
ftj0*!1 g r ° S S p u b l i c d e b t a n d guaranteed obligations
272,732,350,c'01
ueauct - other outstanding public debt obligations not subject to
debt limitation
584,029,060

m,m, 321,741
H-218

463

ȣ-SSSS_LeV^_i^S^ .TOft..'CT_t-<'.

t t o f w & t w q r SNstwtawtA

mt mmm^yrlm^- f * tito-•*&«£* a£fto4»g if
3-$fe£ €__ftft«l«tt*ftt of M I M i i l it t» efMMl ****** t$

f*a_L iwAti «f u» «t«lH-« ttll. to

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C.

464

IMMEDIATE RELEASE
Tuesday, August 11, 1953

H-210

The Treasury Department announced today that preliminary
reports of subscriptions for the exchange offering of oneyear 2-5/C% Certificates of Indebtedness to be dated
August 15 amounted to $2,785,000,000. This represents about
96-1/2% of the $2,802,000,000 maturity.
Final results of the offering will be announced later
this week.

oOo

465

__s_a3r' '-o/m ~~t, "" 7"

/ i~ pZ—

^M" IMMEDIATE RELEASE,

a^—Cy

August *H, 1£5£~~~~^.~~~----^
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, 1941, as modified by the president»s
proclamation of April 13, 1942, for the 12 months commencing May 29, 1953*
as follows?
•

*
*
*

s
2
5

Country

9
9
9

Wheat

*

9

Kheat flour., semolina,
crushed or cracked
wheat, and similar
wheat products

t

of
Origin

'ft

J

Established *

:
Quota
_
• (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

Imports
. Established
Quota
1953, to .?.
August 11, 1953 :
(Pounds)
(Bushels)

• JSuay & 7 j

s

795,000

795,000

—

—
—
—
—
_
—
_
_
_

100
—

100
100
™

100
2,000

100

M
mm
MM.

-

_

1,000

mm

«,

100
mm
mm
mm

~
„

_
mm.

1,000

100
100
100
100

mm

—
-

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
.—.
«
-,

—
-

s
Imports
f
s May 29, 19
: 53, '
» to Aug. 11, 195!
• (Pounds)
2,599,459,
«
—
—
_>
_
_
_
mm

_»
_.
_
_
_
—
_
_
—
—
_
_
_
_
mm

mm

-

TREASURY DEPARTMENT
Tvashington

466

IMMEDIATE RELEASE
Wednesday^ August 12, 1953

H-220

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
Kay 28, 1941, as modified by the Presidents proclamation of April 13, 1942, for the
12 months commencing May 29, 1953, as follows s

Country
of
Origin

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established:
Import s
Established:
Imports
Quota
: May 29, 1953,
Quota
: May 29, 1953,
:to Aug. 11, 1953
:to Aug. 11, 1953
(Bushels)

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

795,000

(Bushels)
795,000

rounas;
3,815,000

24,coo

100
100
100
100
2,000
100
1,000
100

^rounas;

2,599,459
*»
«-

13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

•
•
-

4,000,000

2,599,459

mt

•*
mt

—*
«•
•m}
m.

-m

1,000
100
100
100
100

800,000

795,000

467

s\yy

J flmm- I
IMMEDIATE RELEASE
August-11, 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 1946, from January 1, 1953, to August 1, 1953,
inclusive, as follows:

Products of the
Philippines

Established Quota
Quantity
850,000

Buttons •

Unit of
Quantity
Gross

Imports as of
August 1, 1953
469,857
1,907,782

Cigars .

200,000,000

Number

Coconut Oil

448,000,000

Pound

52,335,735

Cordage .

6,000,000

Pound

2,553,408

Rice

1,040,000

Pound

2,500

1,904,000,000

Pound

(Refined . . . .
Sugars
(Unrefined
Tobacco

1,198,747,536

. **
6,500,000

Pound

1,628,160

468
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, August 12, 1953-

H-221

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 1946, from January 1, 1953*
to August 1, 1953* inclusive, as follows:
Products of the
Philippines
Buttons

Established Quota
Quantity
850,000

Unit of : Imports as of
Quantity:August 1,1953
Gross

469,857

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

52,335,735

Cordage 6,000,000

Pound

2,553,408

Rice 1,040,000
(Refined) . . . .
Sugars
(Unrefined). . .
Tobacco 6,500,000

Pound

2,500

1,904,000,000

1,907,782

Pound
1,198,747,536
Pound

1,628,160

"t D KJ>

IMMEDIATE RELEASE
August-^., 1953

H-

The Bureau of Customs announced today preliminary figures showing the imports
for consumption of the commodities listed below wittlin quota limitations from the
beginning of the quota periods to August 1, 1953, inclusive, as follows:
Commodity

Imports
as of
August 1. 1953

Period and Quantity

Whole milk, fresh or sour . . . Calendar year

3,000,000

Gallon

6,835

Cream . . Calendar year

1,500,000 Gallon

708

July 16, 1953Oct. 31J 1953

Pound

507

33,866,287 Pound

Quota Filled

12 months from 150,000,000 •Pound
*3ept. 15, 1952 798,900,000 Pound
12 months from
200,000 Head
Cattle, less than 200 lbs. each April 1, 1953

114,224,233
84,330,479

Butter

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

5,000,000

(D

White or Irish potatoes:
certified seed
other •

Cattle, 700 pounds or more each July 1, 1953(other than dairy cows) • . . .Sept. 30, 1953

12 months from
Oct. 1, 1952

Filberts, shelled (whether or 12 months from
not blanched)
Oct. 1, 1952
Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in*- 12 months from
eluding peanut butter) . . . . July 1, 1953
12 months from
Peanut Oil
July 1, 1953

6,077

Pound

4,925,733

7,000,000 Pound

^006,992

4,500,000 Pound

4,063,761

1,709,000 Pound

700

5,000,000

Walnuts Calendar year
Almonds, shelled, blanched,
roasted, or otherwise pre*pared or preserved

120,000 Head

3,116

80,000,000 Pound

(1) Imports for consumption at the quota rate are limited to 25,399,716 pounds dur~ .
ing the first nine months-of the calendar year.

470

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, August 12, 1953

H-222

The Bureaii of Customs announced todajr preliminary figures showing the imports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to August 1, 1953, inclusive, as follows:

Unit

; Imports
as of
Quantity:^ug. 1, 1953
Whole milk, fresh or sour

Calendar year

3,000,000

Cream Calendar year 1,500,000
Butter

Gallon 708
July 16, 195^Oct. 31, 1953

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish •« Calendar year
White or Irish potatoes:
certified seed
other

• 12 months from
Sept. 15, 1952
12 months from
Cattle, less than 200 lbs. each April 1, 1953

Cattle, 700 pounds or more each July 1, 1953(other than dairy cows)
Sept. 30, 1953

5,000,000

33,866,287

12 months from
Oct. 1, 1952

Pound ,--;507

(D
pound

150,000,000 Pound
798,900,000 Pound

Quota Fillec)
114,224,233
84,330,479

200,000

Head

3,116

120,000

Head

6,077

Walnuts... ,*, Calendar year 5,000,000
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved....,

Gallon 5,835

Pound 4,925,733

7,000,000 Pound

5,806,992

Filberts, shelled (whether or 12 months from
not blanched)
Oct, 1, 1952

4,500,000 Pound 4,063,761

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
eluding peanut butter)
July 1, 1953

1,709,000

Pound

_ _ ^ ^rt
80,000,000

Pound

n
^ ~.-,
Peanut Oil

12 months from
July 1, 1953

700

(1) Imports for consumption at the quota rate are limited to 25,399,716 pounds during the first nine months of the calendar year.

^ (1

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 VALUEt 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/-6 inches or more
in staple length in the ease of the following countries: United Kingdom, France, Netherlands-,
Switzerland, Belgium, Germany, and Italy.

Country of Origin

: Established
i TOTAL QUOTA
s

Total Imports
s Established s
Imports
l/
s Sept. 20, .19 53 to s 33-1/3% of s Sept. 20, 19 52,
t
Aug. 11. 1953 g Total Quota s to Aug. 11. 1953

United Kingdom ..... 4,323,457 100,335 1,441,152 99,728
Canada . . . . . . . . .
239,690
239,495
France . . . . . . .
. .
227,420
13,032
British India.. . . . ..
69,627
48,162
Netherlands.. . . . . . .
68,240
15,715
Switzerland . • • • . . .
44,388
Belgium . . o o o . . . .
Japan . . . * . . . . . .
whina 0 0 . 0 . 0 0 0 0 .
Egypt o o o « o . 0 o . .
Cuba o . * . o . o o o .

38,559
341,535
-*-1 > p<c~
8,135
6,544

Germany . . . » . . . . .
Italy . . . . . . . . O O

76,329
21,263

•

5,482,509 460,640 1,599,886 172,376
l/ Included in total imports, column 2,
Prepared in the Bureau of Customs.

12,853
—
*—
-

24,618
6.430

75,807

13,032

22,747
14,796

15,715
-

12,853
-

12,853
—

—
—
*"

25,443
7,088

—
~"
*•*

24,618
6,430

472

v

:/-

t, - W'* *-^ywy
i \X-'^iy^Ly
/ ^yyyy^^^"^''^''

w

y -j*
jf

^&»~—-

IMMEDIATE RELEASE
August Ij.. 1953 .
Preliminary data on imports forconsumption of cotton and cotton waste chargeable to the quotas
established by the President'e Proclamation of September 5, 1939, as _mended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 19 52, to August 11, 1953, inclusive
^ ^
Country of Origin
Egypt and the AngloEgyptian Sudan . . .
iCfU

o

.

o

». .
.
. o .

British Indiao * .o o
China
.00...
Mexico
0 o o « .
Brazil
0 o . s .
Union of Soviet
Socialist Republics •
Argentina
.
o
o
o
e
o
Haiti oeoo.oo.o
Ecuadoroooooo. I

Established Quota

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Imports

13,243

8,203,997
124,891
1,382

Country of Origin

Honduras . . . .
Paraguay o o . . «
Colombia ... » a
Iraq . , O Q 0 O Q
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
J/Other French Africa . .
Algeria and Tunisia .

Established Quota
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.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton , harsh or rough, of less than 3/4"
Imports Sept. 20, 19 52, to Aug. 1, 1953

Cotton 1-1/8" or more, but less than 1-11/16'1
Imports Feb. 1, 19 53_ to August 11, 1953

Established Quota (Global) Imports

Established Quota (Global)

Imports

70,000,000 19,213,121

45,656,420

33,186,814

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, August 12, 1953

H-223

Preliminary data on imports for consumptionyof 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, 195*2, to August 11, T^3,'^ncTusrve
Established Quota

Country of Origin
Egypt and the AngloEgyptian Sudan • . •
Peru • • • • « « • • •
British India., • • ,<••

China. * • • • • «

a

©

Mexico o . • • • • • •
Brazil . . . o . . . .
Union of Soviet
Socialist Republics.
Argentina. . . . . . .

Imports

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

8,203,997
124,891

475,124
5,203

1,382

Haioi. « » . . . . « •

237

Ecuador. . . . . . . .

9,333

13,243

Country of Origin

Established Quota

752'
Honduras .*..«»«
Paraguay . . • • . • •
871
Colombia « « « . o # »
124
Iraq . . . . « . * . •
195
British East Africa. •
"2,240
Netherlands E. Indies.
7l,3.58
**>
Barbados • • * * • « «
21a
321
l/other British W. Indies
"" Nigeria • « « « . . .
5,377.
2/other British W. Africa
i6>od4
3/other French Africa. •
68>
"" Algeria and- Tunisia. •

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
*£/ Other than Gold Coast and Nigeria.
"3/ Other than Algeria, Tunisia, and Madagascar*'
Cotton, harsh or rough, of less than 3A"
Imports Sept. 2 0 7 1 ^ 2 , to August"_7~I§53

^Cotton 1-1/8" or more, but less than 1-11/16*
r
:
:Xmpor^s~FP^ruiry _7 1953, to August-11, 195T"

Established Quota (Global) Imports

Established Quota (Global)

70^000,000 19,213,121

45,656,420

Imports
33,186,814

-2COTTON 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 W A S T E , WHETHER OR NOT MANUFACTURED' OR OTHERWISE '
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes, other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and. Italy:
Established
TOTAL QUOTA

Country of Origin
United Kingdom . . .
Ge.nau.a. a . . . . .

.

France. . . . . . . .
British India . . .
Netherlands . . . . .
Switzerland . . « . .
Belgium . . . . . . .
Japan * . * « • « « • «
uiiina . . . . . . . .
Fgypt . . „ . . * . \
Cuba . . . . . . . .
Germany * • • • « . .
Italy . . . . . . . .

4*323,457
'; • 239,690
227,420
69,627
68.240
44,388
38>#9
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509

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

Total Imports
Sept. 20, 1952, to
Aug. 11, 1953
100,335 '
239,495 13,032
48,162
15,715

Established"
33-1/3* of
Total Quota

imports - " x/^
Sept. 20,i 1952, ~

1,441,152
<•»

75,807
m*

12,853

22.747
14,79612,853

-. fe83l3

24,-6.18
6,430

25,443
7,08'8

' 6,4JP

am

460,640

1,599,886

24,618

172-,3?6.

-SUgg_S__^J^gr63_C^^^

Immediate Release - i^ftll 'Pnpirrn

yc/*- Q- "^"

Sales of Series E and H Savings Bonds during the first seven
months of 1953 totaled $2,601,000,000, the Treasury announced today. Redemptions of matured E bonds and unmatured Series E and H
Bonds for the same period were $2,42 8,000,000. Cash sales of E and
H Bonds exceeded redemptions of those series (matured and unmatured)
by $172,709,000.
Sales of Series E and H Bonds during the first sevten months of
^ASdmmmmmJklmiJmm^^
1953 were up 26* overjf€he same period*4____g 1952*' Total matured
and unmatured redemptions of these series in 1953 were % below the
$2,507,000,000 total during the first seven months of 1952.
Sales of Series E and H Bonds in July were $370,000,000. This
was an increase of $54,000,000, or 17* over the $316,000,000 sold
during July 1952.
Total redemptions of matured and unmatured Series E and H Bonds
during July 1953 were $358,000,000. That was $19,000,000 or % less
than total redemptions in July 1952 of $377,000,000.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

475
IMMEDIATE RELEASE,
Wednesday, August 12, 1953-

H-224

Sales of Series E and H Savings Bonds during the
first seven months of 1953 totaled $2,601,000,000, the
Treasury announced today.

Redemptions of matured E bonds

and unmatured Series B and H Bonds for the same period
were $2,428,000,000.

Cash sales of E and H Bonds

exceeded redemptions of those series (matured and
unmatured) by $172,709,000.
Sales of Series E and H Bonds during the first
seven months of 1953 were up 26% over the $2,061,000,000
sales during the same period in 1952. Total matured and
unmatured redemptions of these series in 1953 were 3f0
below the $2,507,000,000 total during the first seven
months of 1952.
Sales of Series E and H Bonds in July were
$370,000,000.

This was an increase of $54,000,000, or

17$ over the $316,000,000 sold during July 1952.
Total redemptions of matured and unmatured Series E
and H Bonds during July 1953 were $358,000,000. That
was $19,000,000 or 3% less than total redemptions in
July 1952 of $377,000,000.

oOo

476

- 3 __3_t_

but shall bo exempt from all taxation now or hereafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United Stat
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
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 amoun
of discount at which bills issued hereunder are sold shall not be considered

accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference between the

price paid for such bills, ivhethor on original issue or on subsequent purcha
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.

477

- 2 -

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 incorpora
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 Treasury Department of the amount and price range of accepted bids.

Those submitting tenders vri.ll be advised of the acceptance or rejection th

The Secretary of the Treasury expressly reserves the right to accept or rejec
any or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted

in full at the average price (in three decimals) of accepted competitive bids
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on August 20, 1953 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing August 20, 1953 • Cash and exchange tenders will receive equal

-

\m'

treatment. Cash adjustments will be ma.de for differences between the par
value of maturing bills accepted in exchange and the issue price of the newbills .
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 fron the sale or other disposition of Treasury bills shall

not havr:; any special treatment, as such, unaer the Internal Revenue Code, o
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

478

TREASURY DEPARTMENT
Washington

A 7- 5
. \~ s *•

FOR RELEASE, MORNING NEWSPAPERS,
Thursday, August 13, 1953
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 3 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing August 20. 1953 ^__j

in

the amount of

$ 1.501.213,000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
«

dated

August 20, 1953
X_X

'•

, a Ad'mil matuye»

November 19, 1953 j when the face

*

T^fofr

amount will be payable»*without interest. They will be issued in bearer form only,
*

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at federal Reserve Banks and Branches up to the
•Daylight Saving
closing hour, two o'clock pan., Eastern/HxstisxS time, Monday, August 17, 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, YaLth not more than th
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
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, August 13, 1953.

W A S H I N G T O N D.C.

H-225

The Treasury Department, 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 August 20, 1953, in
the amount of $1,501,213,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The
bills of this series will be dated August 20, 1953> and will matureNovember 19,- 1953,- when the face amount will be payable without
interest. ---The^r will-be issued in bearer form-only, and in
denomination-';of $1,000, $5,000,. $10,000, $100,0Q0, $500,000, and
$1,000,000• (maturity value).
Tenders Mil be received at Federal Reserve Banks and Branches
up to the closing-hour? two o'clock p.m., Eastern Daylight Saving,v>.
time, Monday, Augusta 17, 1953- Tenders will-not be received at,, the'*
Treasury Department^Washington. :. Each tender must be for an,: even-[.-;
multiple of $1,000, arid in the case of competitive, tenders the-price
offered must be expressed on the basis of 100, with not more than;;-;
three decimals, e. g-. > 99-925- Fractions may not. be.used. -It is
urged that -tenders be made on:the-printed forms and forwarded'in the
special envelopes which will be -supplied by Federal Reserve Banks,or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit' from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
frem 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 Treasury Department 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 th»e 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
decimals)
tenders
bidder will
inof
accordance
be
accepted
accepted
with
competitive
in full
the bids
atbids.
the
must
average
be
Settlement
made
price
or for
completed
(inaccepted
threeat

- 2 the Federal Reserve Bank on August 20, 19533 in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing August 20, 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 suchr 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

480

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

m ~ 2 2—C
RSLEASS MORNING NEWSPAPERS,
Wednesday j J~-ly 15/- 1956~»

K-ytf-

•yj i y

During the month of.fyfte, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted In net purchases of 4_4re#TJ*5^T~
Secretary Humphrey announced today.

oOo

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Friday, August 14, 1953.

H-226

During the month of July, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted in net purchases of $7,921,500,
Secretary Humphrey announced today.

oOo

481

3.Z7

XWCBDI4TB ULEASE,
Friday, Aujptst 14, 1953«

The treasury Department today announced the subscription and allotment
figures with respect to tarn current offering of 2-5/8 percent treasury eertifieates of Indebtedness of Series 0-1954, to be dated Jkupwt 1$, 1953,
open to holders of Treasury Certificates of Indebtedness of Series C-1953*
maturing August IS.
Subscriptions and allotment© were divided among the several Federal Reserve Districts and the Treasury as follow®*
Federal tmmmrrm
District
Boston
Mew Xork
Philadelphia
Cleveland
Eichmond
Atlanta
Chicago
St, l-ouis
Minneapolis
lansa© City
Ballas
San Francisco
Treasury

Total subscriptions
Beeeived and Allotted
$ 87,475,000
1,237,174,000
61,653,000
157,633,000
46,217,000
105,390,000
430,796,000
143,270,000
94,231,000
129,940,000
65,641,000
219,913,000

„JiSk_222
TOTAJu #2,787,887,000

V

v-•a

y?^

TREASURY DEPARTMENT
Information Service

W A S H I N G T O N , D.C. N S ^ _ ,

482
IMMEDIATE RELEASE,
Friday, August 14, 1953.

H-227

The Treasury Department today announced the subscription and
allotment figures with respect to the current offering of 2-5/8
percent Treasury Certificates of Indebtedness of Series D-1954, to
be dated August 15, 1953, open to holders of Treasury Certificates
of Indebtedness of Series C-1953, maturing August 15.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve Total subscriptions
District
Boston $ 87,475,000
New York
«
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL $2,787,887,000

Received and Allotted
1,237,174,000
61,653,000
157,633,000
46,217,000
105,390,000
430,796,000
143,270,000
94,231,000
129,940,000
65,641,000
219,913,000
8,554,000

0O0

483

9m tnmamtj

Dtptrtma* *»ow«i@i Imt mm%m

tlwtt- tta ttcdUm far 11,500,000,00®,

or tttamta-ta* at ft**? tWNMNaqr till* t» _• data* tagwit 20 and to aatovt i w s i i r Uj
1S?53* «MUfe m * off«NMl •» I»0it4 H * W O T mmmaaA ^ ahm Federal mmtm

ttnni on

yayusa If,
TIM ittaila «T tfeia l a m * «r# an follow**
total «j>plU* r«r * i2|li*t7J*S#00O
Total accapted
, - l*$O_,k3$,00O

(iaalssaa $300,370,000 atftamt ®s a
£Ku^cat^fttlU«» bmmiM md zzmpimi im
fUtt «l tt» avarafti ?ric« a t o m M a y )
Aimragt t«n*i
- 99*«69 l^tvStMJt rata «f diaaott-ft avarac. 2.1011 per mmm
^yi§t mt mmmmptmd caapatitiTO U 4 i !
Big.
IM

- S £ J $ 8 ;a*niftaalaaft> tmta af t U # « ^ « H « m » 2.0L*5# pif a r a ®
- ff*46S
*
»
ft
•
tt
HJtflftl • *

(o4 F«rtt«» of t_* atfKMM* tola ior «A t_*_»' 3Uw ^ l e @ W M
wmdmts^
TiiBWiot

fetal

Bmmrm

mum

tm .

|
fa^tOa*
Jbl&tUSbfOOO

d^atmm
War Mrk
y.±i.g&yin?Y\m

Olawlasxl
lalefigogti
Atlanta
CMea^
St* Lcuis
|BJ8*Ml»olia
Stjtaaa Clftsr

^Hn
%aftwH«@
xita*

' 3dpli68»0Q0
45,376,000
33*737,000
W.255,000
262,956,000
38,222,000
23*735,000
$$^297,000
73*236,000
iao«2k_UQOO
MHW_^_SSS155S__-1!-_S?
^2»4%,?W,ooo

mmgtmd)
f»Mi
accepted
|

2^619*000
m,59»ooo
23,46&,OQO
43,300,000
30,479,030
31,883,000
160,440,000
26,967,0)0
16,665,000
£3*821,000
i#t52Q,ooo

__^i2%^
•ifttotidfrooo

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Tuesday, August 18, 1953.

H-228

The Treasairy Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated August 20 and to mature November 19, 1953/ which were offered
on August 133 were opened at the Federal Reserve Banks on August 17.
The details of this issue are as follows:
Total applied for - $2,494,745,000
Total accepted
- 1,501,435,000 (includes $300,370,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.469 Equivalent rate of discount approx.
2.101$ per annum
Range of accepted competitive bids:
High - 99.482 Equivalent rate of discount approx.
2.049$ per annum
Low
- 99.468 Equivalent rate of discount approx.
2.105$ per annum
(84 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston
$
21,767,000
New York
1,73^,454,000
Philadelphia
38,468,000
Cleveland
45,376,000
Richmond
33,737,000
Atlanta
43,255,000
Chicago
262,956,000
St. Louis
38,222,000
Minneapolis
23,735,000
Kansas City
59,297,000
Dallas
73,236,000
San Francisco
120,242,000
TOTAL $2,494,745,000 $1,501,435,000
0O0

Accepted
$

18,619,000
971,559,000
23,468,000
43,300,000
30,479,000
31,883,000
160,440,000
26,967,000
16,665,000
53.821,000
49,520,000
74,714,000

485

- 3ft T TNT T A . .

XM^_OC

but shall bo exempt from all taxation now or hereafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United Stat
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
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 1941, the amount

of discount at which .bills issued hereunder are sold shall not be considered

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, 418, as amended, and this notice, prescribe tho terns 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.

486

- 2-

___£_&

pajinent of 2 percent of the face amount of Treasury bills applied for, unle

the tenders are accompanied by an express guaranty of payment by an incorpor
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 Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection ther

The Secretary of the Treasury expressly reserves the right to accept or reje
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 .bi
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on August 27, 19$3 j ln cash or

other immediately available funds or in a like face amount of Treasury bills
maturing August 27. 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 havo ana' 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,

487

%_&__tME

TREASURY DEPARTMENT
Washington

H-1 yf

FOR RELEASE, MORNING NEWSPAPERS,
^ursdav^ August 20, 1953

The Treasury Department, by this public notice, invites tenders for
$1,500*000.000 3 or thereabouts, of 92 -day Treasury bills, for cash and
in exchange for Treasury bills maturing August 27, 1953 3

in

the amount of

$ l^f>QO«777»QOO 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated August 27, 1953 , and'-will mature November 27, 1953 s when the face
jjpdt
apqt
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 vri.ll be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, two o'clock p.m., Eastern/s_a_3_3a_t time, Monday, August 24, 1953

—

- ~^gi

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 thr
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
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 coraoanies anc1 from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
information Service
RELEASE MORNING NEWSPAPERS,
Thursday, August 20, 1953.

WASHINGTON, D.C.

H-229

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 92-day Treasury bills, for
cash and in. exchange for Treasury bills maturing August 27., 1953* i n
the amount of $1,500,777,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. The
bills of this series will be dated August 27, 1953, and will mature
November 27, 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 Daylight Saving
time, Monday, August 24, 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 may not be used. It Is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those saibmitting 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 the
fullbids
atbids.
the
price
(inaccepted
threeat the
tenders
decimals)
in of
accordance
accepted
with
competitive
mustaverage
be
Settlement
made
or completed
for

- p

Federal Reserve Bank on August 27, 1953. in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
August 27, 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, orlaws amendatory or supplementary
thereto. The bills shall be subject to estate, Inheritance, gift"
or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or.,
interest thereof by any State, or any of the possessions of the.
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest. Under Sections. 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other ;
than life insurance companies)issued hereunder need include in his
income tax return only the difference between the price paid for.
such bills, whether on original issue or on subsequent purchase, and
the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 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.
0O0

489

J.30
last avening that the tenders tm? 11,500,000,000,
-3

-lie*

or thereaoetifcs, ot 92-day Treasury bills to be dated August 21 and to mtorm timmmbmr _?,
1953, which mem offeree4 on August 20,

Bsn_s en

Au^isfc 24ftie details of this issue ere en followss
fetal applied for - #2,545,880,000
fotaa «m»pttd
- 1,501,634,000

(includes Itfef^a^iOO entered en a

in
Average price

- 99M9

full at the average priee shewn below)
Equivalent rate mt diseeaafe apg**Wi 2.0011 pel

Hangs of accepted eompetitive bids:
- 99*k9® I^**2*c& rate mt diseeuai appro*. 1.996^ per
- 99*1$?
j.r 2,007$ »Aid

tm
(41

of th* aawat bid f e* •& the la* priee

Total

Ffeed)

MtX

n_*t__et
mmmWm^,S0mmSm

\mm fork
i^iladelpnia
Gleve3aia&
Atlanta
Chicago
St* tm&B
^iifi^apolle
Kansas Ci^r
San frmmlmoo

I 35*156,^0
1,873,403,000
31,988,000

4o,l74,ooo
ifl»i75#ooo
35,959,000
265,011,000
33*770,000
12,067,000
44,519,000
59,991,000

m^JM^bm
T0--AL 12,515,110*000

I

20,977,000
l,057i2a,ooo

^ove|pbOB9#000
be e%feg,*XJ0
1^,5^7,000
*99,5^,000
16,848,000
10,397,000
32,168,000
32,270,000
61,844,000
$1,501,834,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

490
RELEASE MORNING NEWSPAPERS,
Tuesday, August 25, 1953.

H-230

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 92-day Treasury bills to be
dated August 27 and to mature November 27, 1953, which were offered
on August 20, were opened at the Federal Reserve Banks on August 24.
The details of this issue are as follows:
Total applied for - $2,545,880,000
1,501,834,000 (includes $249,536,000
Total accepted
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.489 Equivalent rate of discount approx.
2.001$ per annum
Range of accepted competitive bids:
High

- 99.490 Equivalent rate of discount approx
1.996$ per annum
Low
- 99.487 Equivalent rate of discount approx,
2.007$ per annum
(4l percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for

Total
Accepted

$
35,156,000
1,873,^03,000
31,988,000
40,174,000
18,175,000
35,959,000
265,011,000
33,770,000
12,067,000
44,519,000
59,991,000
95,667,000

$
20,977,000
1,057,281,000
13,029,000
24,412,000
13,486,000
19,597,000
199,525,000
16,848,000
10,397,000
32,168,000
32,270,000
61,844,000

$2,545,880,000

$1,501,834,000

0O0

491

TREASURY DEPARTMENT
Information Service

Release Morning Newspapers
Sunday, August 10, 1952

WASHINGTON, D.C.

S-3120

A downward trend in counterfeiting has followed a crackdown last
February by the United States Secret Service on a gang of counterfeiters in Chicago, Chief U. E. Baughman of the Secret Service reported
today in a fiscal year review of Secret Service operations,
the Chicago investigation netted four prisoners and spiked the
widespread circulation of a series of spurious $10 and $20 bills.
William Skally, Sam Sferas and James Sferas were arrested February 3
after an undercover Secret Service agent obtained $100,000 in counterfeit bills through Skally, Chief Baughman said, A fourth defendant,
William Russo, surrendered February 6* The four men are awaiting
prosecution.
Following these arrests the circulation of counterfeits in various
parts of the country declined, according to Chief Baughman, and the
trend in counterfeiting is still downward. During the year ended
June 30, however, the public lost $374.002.1$, in counterfeit bills and
$5,859*84 in counterfeit coins, passed on unsuspecting merchants and
cashiers. In addition, the Secret Service captured $393,802.2g in
counterfeit bills and $266.70 in counterfeit coins before tiney could
be circulated, and arrested 279 persons for•violations of the counter-„
^feiting laws.
"^
« \l\jf** Convincing undercover work'led to the downfall of two Cleveland
u
^couples and the seizure of $46,000 in phoney $10 and $20 notes, Chief
^
Baughman revealed. Frank Oddo and Frank Mazzo, described by the Secret
^
Service as "Cleveland hoodlums," were the principal distributors of the
k*^
bills in the Cleveland area. An undercover agent gained their confidence
j/^and arranged for a shipment of $100,000 in counterfeits to be delivered
,000 xr.*
and two
<jfi tfn > B W York City. Mazzo and Oddo went to New York with ^n.nnc.
-hwn
} rttywamen, Alice Mae MacDowell and Ellen Maxwell. They explained to the
(• t/irfdercover agent that they would get the balance of $60,000 later. Secret
mji^Service agents keeping the quartette under surveillance identified the two
%M* women as passers of counterfeit notes in Pennsylvania and Kentucky.

n

^f ihen Mazzo and Oddo delivered the $40,000 in a New York restaurant yt-iej,
were arrested and the women were taken into custody in their hotel rooms.
The men confessed that they had made other big deals in counterfeit money;
Chief Baughman said. Mazzo was sentenced to six years, Oddo to four years.
Each of the women was sent to prison for three years.

*

*s

Seizure of counterfeit currency during the fiscal year
1953 totalled $287,715 compared with $ .]7ff T J?£ *%&
counterfeited during the fiscal year 1952. There were 188
arrests in fiscal 1953 for violations of the counterfeiting
laws, compared with

>~7ff

arrests in fiscal 1952.

Almost two-thirds of the counterfeit bills turned up by
the Secret Service in fiscal 1953 were passed on retail
storekeepers.

Amounts passed elsewhere than in retail stores

were negligible.

The Secret Service seized approximately

$115,000 in counterfeit money before the counterfeiters
could get rid of it.

493

- g -

Cases of all kinds received for investigation, including counterfeiting and forgery cases, aggregated 3&,&34, m& although 37,515 cases
were closed during the year, there were 11,271 cases still awaiting
investigation as of June 30, Chief Baughman reported*

'94

- 7The Secret Service cracked down on the "Yaqui Indian Gold Swindle"
with the arrest in Nogales, Arizona, of Rex S. Martin, who offered t© sell
$S,750 worth of gold "stolen by the Yaqui Indians in Mexico during the
Mexican Revolution," Usually the swindlers remain in Mexico, arranging
for their victims to bring cash across the border. Martin, however,
delivered a small "sample" of the gold to an undercover agent in Phoenix,
Arizona. Posing as a prospective purchaser, the agent accompanied Martin
to Mexico and met his associates. Martin returned to the United States
with the agent to collect cash for the Indian "treasure," and was arrested,
prosecuted and sentenced.
The "Yaqui Gold Swindle" has operated for years along the Mexican
border, with many variations. Recently two American tourists bought a
"gold mine" for $6,000 from confidence men who introduced the visitors to
a "Yaqui Indian Chief," complete with feathers. The buyers later found
that the "mine" had been salted with a few dollars1 worth of gold fired
into the rock with a shotgun.
In addition to counterfeiters and forgers, the Secret Service
arrested 236 persons for other crimes, for a grand total of 2,799 persons
arrested. There were 2,409 convictions, representing 98»3 percent of
convictions in all cases prosecuted.
Prison sentences during the year totaled 2,549 years, and additional
sentences of 2,551 years were suspended or probated. Fines in criminal
cases prosecuted totaled $50,492.91•

- 6Secret Service with forgery of $1,200 in stolen Savings Bonds. Synkowski^
unusual alias grew from his modus operandi. He read the death notices
in the daily newspapers, then broke into the homes of bereaved families
while they were attending funerals. The $1,200 in bonds were stolen from
two homes under such circumstances.
A man arrested in San Francisco for altering Savings Bonds insisted
in court that although he wore men1® clothing, he wished to be considered
a woman and to be sentenced to a women1 s prison. Addie Gig Norton, father
of a four-year-old son, claimed that he was more female than male and had
found a physician who was willing to perform a "corrective" operation
requiring IS months hospitalization. Norton indicated that he had altered
the bonds to get money to pay for the surgery, the Secret Service reported*
The judge ordered a physical examination of Norton, which convinced him
that Norton should take his medicine like a man and serve three years in
a regular Federal penitentiary.
A big-scale bond theft by a "lone wolverine" was climaxed in March
when Miss Dorothy Mae Fulhage, 33, was sentenced in Wichita, Kansas, to
serve 10 years in a Federal prison for stealing $39,675 in Savings Bonds.
Miss Fulhage, while employed by a Kansas refinery, had charge of the issuing
of Savings Bonds. She issued bonds to herself, for which she paid nothing,
recording the bonds as "unissued stock." In some cases she sold bonds t©
bona fide purchasers, but kept their money and again listed the bonds as
unissued.

486

- 5 out of $970 by his artistic thievery. He raised one check from $18.75

to $218.75, another from $2*1x1 to $272.11, a third from $106.68 to $406.68
and a fourth from $77.07 to $277.07. The alterations were expertly done,
but were detected when the checks reached the Treasury Department for payment. Gilliam was sentenced and ordered to make restitution for the full
amount involved.
Chief Baughman pointed out that the biggest proportion of the stolen
and forged checks were servicemen1 s allowance and allotment checks, with
veterans' pension and Social Security checks ranking second and third.
"These forgeries inflict hardships upon needy families," Baughman
reported. "Most of them could be prevented if storekeepers and cashiers
used more care before cashing Government checks for people they do not
know." In one case in Chicago a girl presented a Government check to a
sales clerk in a department store. The clerk told the girl to have the
check approved by the credit manager. The girl left the counter and

returned in a few minutes with the check, Taihich the salesgirl then cashed
Later she discovered that the credit manager had never seen the check,
and that it had not even been endorsed.
Forgeries of stolen U* S. Savings Bonds also kept the Secret Service
busy during the year, Chief Baughman reported. There were 4,345 forged
bonds received for investigation. Agents investigated 4,526 forged bonds
worth $355,564*55, including cases pending from prior years, and arrested
91 persons for bond forgery.
In Highland Park, Michigan, "Funeral Ben" Synkowski was arrested by
a police detective for breaking and entering and was charged by the

497

-4 confessed that he had held up a man on the street and took his money
and a Government check, which Martinez forged and cashed. Investigation revealed that the victim of the holdup had himself stolen the
check from the rightful owner, but was robbed before he had a chance
to cash it. Martinez pleaded guilty and was sent to prison for 18 months.
In Boston, Massachusetts, Lloyd E. Roy, a cost accountant for a
well-known watch manufacturer, offered to prepare income tax returns for
his fellow-workers, then falsified the returns to get tax refunds from
the Government. In each case he forged the taxpayer's name to the return,

and when refund checks were delivered to Roy's address he forged and cashed
the checks and delivered a small percentage to the taxpayers as a refund*
When arrested for check forgery, Roy estimated that he had netted more
than $5,000 through this fraud. The Intelligence Division of the Bureau
of Internal Revenue determined that some $50,000 in taxes is owed to the
Government by those who collected "refunds" from Roy. In one case a
taxpayer executed his own return which he delivered to Roy with $1,000
in cash for payment of taxes. Roy destroyed the return, prepared another
in its place with exemptions which made a tax payment unnecessary, then
forged the taxpayer's name and pocketed the thousand dollars. He pleaded
guilty and was sentenced to 18 months in a Federal penitentiary.
A veteran who took an art course under the GI Bill of Rights used
his knowledge to raise Government salary checks paid to him as a machine
operator in the Frankford Arsenal in Pennsylvania. James R. Gilliam,
29, was arrested by Philadelphia agents after he cheated the Government

498

mm

3

-

In FCrt^Worth, Texas, Mrs. Pauline E. Patterson, JJ3^**-n aircraft
worker, was kept understis«^illance for a month as a suspected counterfeiter. She was off duty for several^Say^, and agents noticed that the
shades in her apartment were kept drawn. Agents I-iaally arrested her
and seized,je&gatIves for counterfeit $20 notes, together witK^^-^omplete
f^bto^n^ rej^rijeiifc.
In contrast to the downward trend in counterfeiting was the continued
activity in forgeries of Government checks, the Secret Service said*

During the year the agency received 27,720 forged checks for investigation
Agents completed investigations of 26,179 checks, worth $2,119,243.44,

but on June 30 there was a backlog of 9,045 checks awaiting investigation
The backlog at the beginning of the fiscal year totaled 7,504. Agents
*

arrested 2,284 persons for check forgery, as compared with 2,144 the
previous year*
In an unusual case at Islandton, S. C, a check forger used a gun
to threaten payees whose checks he stole, to keep them from reporting the
thefts* Angus M. Rentz stole several checks from the Post Office, where
his wife was postmaster. He brandished a revolver in front of payees,
warning them not to submit claims to the Treasury Department* At least
one disregarded the warning, and the subsequent investigation revealed
the entire plot. Rentz was convicted, sentenced, and ordered t© make
full restitution*
Agents discovered a game of "robbing the robber" in Pueblo, Colorado,
with the arrest of Daniel R. Martinez, 21, for check forgery. Martinez

499

- 2

MacLeod criticised the agents for their timing.

"If you had been

a day later, you wouldn't have found a thing," he told them, explaining
that he intended to burn all incriminating evidence*
With MacLeod the agents went t© the fraternity house where his
partner, William Hopkin, lived* At Hopkin* s room, MacLeod knocked on
the door*
"Whofs there?" Hopkin asked*
"It's Mac," MacLeod said. "I have a friend I want you to meet."
Hopkin opened the door and the agents entered with MacLeod*
"Bill," MacLeod said, "these are T-Men. They want those plates I gave
you last night."
Hopkin opened a foot locker and handed one agent an envelope
containing 24 copper plates for counterfeit $10 bills* In a search of
the room agents found a number of negatives for $10 notes, a loaded
automatic, a rubber mask, and a negative for a title t© a Cadillac
used by MacLeod. The Cadillac had been stolen from a Chicago garage
last December, Chief Baughman said*
MacLeod and Hopkin were convicted March 3 and each was sentenced
to serve five years in a Federal penitentiary.
In another case in Waco, Texas, "Barcus was willin1," but the
Government wasn't. Sam W. Barcus, Jr., was arrested March 5 for making
negatives for counterfeit $1 bills. The Secret Service said he had been
experimenting for nearly six years, using a home-made camera. Barcus
printed only one side of a counterfeit, then split genuine bills and
pasted the counterfeit to the genuine halves, passing them with the
genuine side showing. He pleaded guilty and was sentenced*

50u

:

=ht+> (UUm**, & m . f*ft^

P
U
FISC

_,rrCE

/

./-/ -

^-5/

30, 1953

ice - boi±-»voe
"pr-W'tiiili
utl a of
: counterThe U. S. Secret Service
be&btvoc it ppewertiod.
a flood
<yoW*£ TtycyfcceIyt\>rm*cXed
s/o«c3G, X^S,
?fa».Acf*** Sfe/CottttJ
feit money^by Capturing 18 counterfeiting plants, 12 of rwhich- faileeHrt .
&sw£icc&u*:fi2rfar
*fccre-f
^fcfi'sce
£/?Xe/
into circulation, -mrr-iaMino fee
'O—^feeretaiy *H__iilfregr j" _ea#e «pub_4c today.
U. E. Baughman teW

*^SW«»B9»~- B *«S«»_^

Agents seized $287,7*5.75 in counprfeit bills, of iwhich #3,72,785.50

, ,

~7' a"

/ ,\

t\

jwas passed on retail storekeepers. /The balance was captured before it
Representative value of counterfeit coins seized
could be circulate
totaled $6,406.11, of which $5^598.99
\

was

passed.

/

/

%

There were 188 per-

\

/

sons arrested for violating/the counterfeiting laws, Chief Baughman
eported. /
Seizures of counterfeit bills and coins for the previous year
\
/
[aggregated $773,930.$4 or $479,^09.08 more than the $294,121.86

v
l

Icoiuiscated auidngthe year ended June 30.
In Chicago, Illinois, Richard W. MacLeod and William Hopkin, the
latter a student at the University of Chicago, never knew they were
watched by Secret Service agents as they prepared to turn out a load
of counterfeit $10 bills. Acting on _ [confidential tiyfehat MacLeod
was posing as the owner of a mythical printing company, agents kept
him under surveillance for days* Convinced that he was making counterfeit money, they arrested him in his apartment at 8201-03 South Merrill
Avenue, Chicago, where they found a hand press and other printing
equipment, along with proof impressions of $10 bills.

f-|^

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

501
FOR RELEASE A.M. NEWSPAPERS,
Thursday, August 20, 1953-

H-231

The U. S. Secret Service stemmed a potential flood of counterfeit money during the fiscal year ended June 30, 1953, by capturing
18 counterfeiting plants, 12 of them before they could get
a single counterfeit into circulation, Secret Service Chief
U. E. Baughman reported today.
Seizure_of counterfeit currency during the fiscal year 1953
totalled $287,715 compared with $767,804 counterfeited during the
fiscal year 1952. There were 188 arrests in fiscal 1953 for
violations of the counterfeiting laws, compared with ?79 arrests in
fiscal 1952.
Almost two-thirds of the counterfeit bills turned up by the
Secret Service in fiscal 1953 were passed on retail storekeepers
Amounts passed elsewhere than in retail stores were ne^lieib'^e
The Secret Service seized approximately $115,000 in counterfeit
money before the counterfeiters could get rid of it.
In Chicago, Illinois, Richard W. MacLeod and William Hopkin,
the latter a student at the University of Chicago, never knew they
were watched by Secret Service agents as they prepared to turn out
a load of counterfeit $10 bills. Acting on information that
MacLeod was posing as the owner of a mythical printing company,
agents kept him under surveillance for days. Convinced that he
was making counterfeit money, they arrested him in his apartment
at 8201-03 South Merrill Avenue, Chicago, where they found a hand
press and other printing equipment, along with proof impressions
of $10 bills.
MacLeod criticised the agents for their timing. "If you had
been a day later, you wouldn't have found a thing," he told them,
explaining that he intended to burn all incriminating evidence.
With MacLeod the agents went to the fraternity house where his
partner, William Hopkin, lived. At Hopkin's room, MacLeod knocked
on the door.
"Who's there?" Hopkin asked.
"It's Mac," MacLeod said. "1 have a friend I want you to meet."

502
- 2 Hopkin opened the door and the agents entered with MacLeod.
"Bill," MacLeod said, "these are T-Men. They want those plates
I gave you last night."
Hopkin opened a foot locker and handed one agent an evelope
containing 2k copper plates for counterfeit $10 bills. In a search
of the room agents found a number of negatives for $10 notes,
a loaded automatic, a rubber mask, and a negative for a title to a
Cadillac used by MacLeod. The Cadillac had been stolen from
a Chicago garage last December, Chief Baughman said.
MacLeod and Hopkin were convicted March 3 and each was
sentenced to serve five years in a Federal penitentiary.
In another case in Waco, Texas, "3arcus was wiilin'," but the
Government wasn't. Sam W. Barcus, Jr., was arrested March 5 for
making negatives for counterfeit $1 bills. The Secret Service said
he had been experimenting for nearly six years, using a home-made
camera. Barcus printed only one side of a counterfeit, then split
genuine bills and pasted the counterfeit to the genuine halves,
passing them with the genuine side showing. He pleaded guilty and
was sentenced.
In contrast to the downward trend in counterfeiting was the
continued activity in forgeries of Government checks, the
Secret Service said. During the year the agency received 27.,720
forged checks for investigation. Agents completed investigations
of 26,179 checks, worth $2,119,243.44, but on June 30 there was
a backlog of 9*045 checks awaiting investigation. The backlog at
the beginning of the fiscal year totaled 7,504. Agents arrested
2,284 persons for check forgery, as compared with 2,144 the previous
year.
In an unusual case at Islandton, S.C., a check forger used
a gun to threaten payees whose chacks he stole, to keep them from
reporting the thefts, Angus M. Rentz stole several checks from the
Post Office, where his wife was postmaster. He brandished
a revolver in front of payees, warning them not to submit claims
to the Treasury Department. At least one disregarded the warning,
and the subsequent investigation revealed the entire plot. Rentz
was convicted, sentenced, and ordered to make full restitaition.
Agents discovered a game of "robbing the robber" in Pueblo,
Colorado, with the arrest of Daniel R. Martinez, 21,for check
forgery. Martinez confessed that he had held up a man on the street
and took his money and a Government check, which Martinez forged
and cashed. Investigation revealed that the victim of the holdup
had himself stolen the check from the rightful owner, but was
robbed before he had a chance to cash it. Martinez pleaded guilty
and was sent to prison for 18 months.

- 3In Boston, Massachusetts, Lloyd E. Roy, a cost accountant for
a well-known watch manufacturer, offered to prepare income tax
returns for his fellow-workers, then falsified the returns to get
tax refunds from the Government. In each case he forged the
taxpayer's name to the return, and when refund checks were
delivered to Roy's address he forged and cashed the checks and
delivered a small percentage to the taxpayers as a refund. When
arrested for check forgery, Roy estimated that he had netted more
than $5,000 through this fraud. The Intelligence Division of the
Bureau of Internal Revenue determined that some $50,000 In taxes
is owed to the Government by those who collected "refunds" from
Roy. In one case a taxpayer executed his own return which he
delivered to Roy with $1,000 in cash for payment of taxes. Roy
destroyed the return, prepared another in its. place with
exemptions which made a tax payment unnecessary, then forged the
taxpayer's name and pocketed the thousand dollars. He pleaded
guilty and was sentenced to 18 months in a Federal penitentiary.
A veteran who took an art course under the GI Bill of Rights
used his knowledge to raise Government salary checks paid to him
as a machine operator in the Frankford Arsenal in Pennsylvania.
James R. Gilliam, 29, was arrested by Philadelphia agents after he
cheated the Government out of $970 by his artistic thievery. He
raised one check from $18.75 to $218.75, another from $2.41 to
$272.41, a third from $106.68 to $406.68, and a fourth from $77.07
to $277-07. The alterations were expertly done, but were detected
when the checks reached the Treasury Department for payment.
Gilliam was sentenced and ordered to make restitution for the full
amount involved.
Chief Baughman pointed out that the biggest proportion of the
stolen and forged checks were servicemen's allowance and allotment
checks, with veterans' pension and Social Security checks ranking
second and third.
^These forgeries inflict hardships upon needy families,"
Baughman reported. "Most of them could be prevented If storekeepers
and cashiers used more care before cashing Government checks for
people they do not know." In one case in Chicago a girl presented
a Government check to a sales clerk in a department store. The
clerk told the girl to have the check approved by the credit
manager. The girl left the counter and returned in a few minutes
with the check, which the salesgirl then cashed. Later she
discovered that the credit manager had never seen the check, and
that it had not even been endorsed.

- 4Forgeries of stolen U. S. Savings Bonds also kept the
Secret Service busy during the year, Chief Baughman reported.
There were 4,345 forged bonds received for investigation. Agents
investigated 4,526 forged bonds worth $355,564.55, including cases
pending from prior years, and arrested $1 persons for bond forgery.
In Highland Park, Michigan, "Funeral Ben" Synkowski was
arrested by a police-detective for breaking and entering and was
charged by the Secret Service with forgery of $1,200 in stolen
Savings Bonds. Synkowski's unusual alias grew from his modus
operandi. He read the death notices in the daily newspapers, then
broke into the homes of bereaved families while they were attending
funerals. The $1,200 in bonds were stolen from two homes under such
circumstances.
A man arrested in San Francisco for altering Savings Bonds
insisted in court that although he wore men's clothing, he wished
to be considered a woman and to be sentenced to a women's prison.
Addle Gig Norton, father of a four-year-old son, claimed that he
was more female than male and had found a physician who was willing
to perform a "corrective" operation requiring IS months hospitalization. Norton indicated that he had altered the bonds to get
money to pay for the surgery, the Secret Service reported. The
judge ordered a physical examination of Norton, which convinced him
that Norton should take his medicine like a man and serve three
years In a regular Federal penitentiary.
A big-scale bond theft by a "lone wolverine" was climaxed in
March vihen Miss Dorothy Mae Fulhage, 33, was sentenced in Wichita,
Kansas, to serve 10 years in a Federal prison for stealing
$39,675 in Savings Bonds. Miss Fulhage, while employed by a Kansas
refinery, had charge of the issuing of Savings Bonds. She issued
bonds to herself, for which she paid nothing, recording the bonds
as "unissued stock." In some cases she sold bonds to bona fide
purchasers, but kept their money and again listed the bonds as
unissued.
The Secret Service cracked down on the "Yaqui Indian Gold
Swindle" with the arrest in Nogales, Arizona, of Rex S. Martin,
who offered to sell $8,750 worth of gold "stolen by the Yaqui
Indians in Mexico during the Mexican Revolution." Usually the
swindlers remain in Mexico, arranging for their victims to bring
cash across the border. Martin, however, delivered a small
"sample" of the gold to an undercover agent in Phoenix, Arizona.
Posing as a prospective purchaser, the agent accompanied Martin
to Mexico and met his associates. Martin returned to the
United States with the agent to collect cash for the Indian
"treasure," and was arrested, prosecuted and sentenced.

505
- 5 The "Yaqui Gold Swindle" has operated for years along the
Mexican border, with many variations. Recently two American
tourists bought a "gold mine" for $6,000 from confidence men who
introduced the visitors to a "Yaqui Indian Chief," complete with
feathers. The buyers later found that the "mine" had been salted
with a few dollars' worth of gold fired into the rock with
a shotgun.
In addition to counterfeiters and forgers, the Secret Service
arrested 236 persons for other crimes, for a grand total of
2,799 persons arrested. There were 2,409 convictions, representing
98.3 percent of convictions in all cases prosecuted.
Prison sentences during the year totaled 2,549 years, and
additional sentences of 2,551 years were suspended or probated.
Fines in criminal cases prosecuted totaled $50,492.91.
Cases of all kinds received for investigation, including
counterfeiting and forgery cases, aggregated 38,834, and although
37,515 cases were closed during the year, there were 11,271 cases
still awaiting investigation as of June 30, Chief Baughman reported.

0O0

506

-3&J___t

but shall be exempt from all taxation now or hereafter imposed on the princi

or interest thereof by any State, or any of the possessions of the United Sta

or by any local taxing authority. For purposes of taxation the amount of dis-

count at which Treasury bills are originally sold by the United States shall
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section llf> of the Revenue Act of 1941, the amou

of discount at which bills issued hereunder are sold shall not be considered

accrue until such bills shall be sold, redeemed or otherwise disposed of, an
such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference between the

price paid for such bills, vrhothcr on original issue or on subsequent purcha
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 los
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.

507

_ 2 -

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 incorpora
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 Treasury Department of the amount and price range of accepted bids.

Those submitting tenders will be advised of the acceptance or rejection there

The Secretary of the Treasury expressly reserves the right to accept or rejec
any or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted

in full at the average price (in three decimals) of accepted competitive bids
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on September 3. 1953 J ^n cash or
other immediately available funds or in a like face amount of Treasury bills
maturing September 3, 1953 Cash and exchange tenders TO. 11 receive equal
x&5&
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,

508

TREASURY DEPARTMENT
Washington
FOR RELEASE, HORNING NEWSPAPERS,
Thursday, August 27, 1953

/

hi

D

3

£

•

The Treasury Department, by this public notice, invites tenders for
$1,5005000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing September 3, 1953 , in the amount of
$1,500,301,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 3, 1953 , and mil mature December 3, 1953 3 when the face

amount will be payable without interest. They will be issued in bearer form onl
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/g__a___c_xtime, Monday, August 31 3 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 thr
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

- 2 immediately available funds or in a like face amount of Treasury
bills maturing September 3, 1953. Cash and exchange tenors 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 pr .,
gain from the sale or other disposition -oft' the bills, .shall npt v;have '• any exemption, as such, and loss from the sale or other ;vr.:.
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,: y. >•;?•
inheritance, gift or other excise taxes, whether Federalypr St,ate,
but shall be exempt from all taxation now or hereafter imposed pn
the principal or interest thereof by any State, or any ;of> the t .
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 oonsictered
to be interest. Under. Sections 42 and 117 (a) (1) of the .Internal
Revenue Code, as amended by Section 115: of the Revenue-.Apt of^ig^l,
the amount of discount at which bills issued hereundery;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-f or,
which the return is made, as ordinary gain or loss. ; . .i;'•••' Treasury Department Circular' No..: -4l&, as amended,, and.
nd-tice, prescribe the term's vpf the Treasury bills and govern:.
the conditions of their issue;- Copies, „of the circular may .be,
obtained from any Federal Reserve
..yyae
OOoBank or Branch.-

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,
Thursday, August27, 1953-

H-232

The Treasury department, 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 September 3, 1953^
in the amount,of $|^500,301,000, to be issued onia/discount basis
under competitive ah'd Won-competitive bidding as ahereinafter
provided. The bills;;of this series will be date®' September 3, 1953,
and will mature December 3, 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 $l,OOQ,;06o (maturity value).
Tenders will be ..received at Federal Reserve Banks and Branches
up to the closing hou^f.;two o'clock p.m., Eastern Daylight Saving. .
time, Monday, August '$1, 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 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.
V :

\, •

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 atthe Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department 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
decimals)
the
bidder
tenders
Federal
will
for
inof
accordance
Reserve
be
$200,000
accepted
accepted
Bank
or
with
competitive
less
in
on full
the
September
without
bids
atbids.
the
must
stated
3,
average
1953*
be
Settlement
made
price
In
price
or
cash
from
for
completed
(in
or
any
accepted
three
other
oneat

10

3
Statement showing comparison of principal items of assets and liabilities of active national
banks as of June 30, 1953, April 20, 1953. -»& Jmna 30, 1952
(in thousands of dollars)
* I i I Increase or decrease 1 Increase or decrease
t June 30, j ipr. 20, t Jane 30,
I since Apr. 20, 1953 J since Jane 30. 1952
1
1253
!
1252
! J252
' AWflt
1 Percent t Amount
i P_r_«_fe
Huaber of banks
U,S81
Ut890
**»932
-9 1
*^l&
-51
-1.0^
ASSETS
Ooamereial and industrial loans $16,57^.920 $16,785,508 $15,362,876
-4210,588
-1.25
$l,212,0*&
7.89
Loans on real estate
8,508,503
8,391,963
7.8*18,650
116,5*0
1.39
659,853
S.*H
All other loans, including y
overdrafts
11.995.778
11,920,912 10,^53.9^3
7*».866
.63
1>5*»1.835
1*175
Total gross loans
37.079.201
37.098,383 33.665,*l69
-19.182
-.05
3.^13.732
10.1U
Less valuation reserves...
5*11,8*»6
531.577
TO.O61
10,269
1.93
**6,785
9.**5
»•* loans
3*>,53?.355
3b,5&b,feb 3 3 . 1 ^ . ^
=_97Q8_:
^M
3.3^>W
1005
U. S* Government securities*
Direct obligations.
33.025,310
33.^.868
3^.678.113
-**_**.558
-1.27
-1,652,803
-*|..77
Obligations folly guaranteed,
23.7*&
21,283
l6,*127
_,**6l
II.56
7,317 kk.jyk
Total V. S. securities
33>01ff,054
33.^71,151 3^.b9^.5^
-422,09?
~l»-6
~1,6**5,*^6
~k.7k
Obligations of Stat is and
——--—_--___--_-------_«___
_ _
political subdivisions.
6,218,789
6,31*1,550
5.810,3*£
-95,76l
-1.52
*IOSt*Jlf6
7.03
Other bonds, notes, and debentures..
....,
2,066,785
2,068,282
2,393*571
-l,**97
-.07
-326,786 -13.65
Corporate stocks, including
stocks of Fed. Reserve banks.
200,901
199.290
187.2*10
l,6ll
.61
13,66l
7.30
Total securities
*ll,535>5g
*J-2,053.273 _3,085,69*t
-517,7*&
-1*23
-1,550.165
-3.60
Total loans and securities.. 78.072,884
78,620,079 7^.256,105
»*5^7>195
~»70
1,816,7^2
leZW
Currency and coin
1,353.588
1,289,432
1,256,363
64,156
TTp
57,2_5"
777T
Reserve with Fed. Reserve Banks 12,516,301
13,013,129 12,529,551
~*»96,82S
-3.82
^$Jt250
-.11
Balances with other banks
10,^73*757
9,678,259 10,205,615
795,^98
8.22
268,1*12
2.63
Total cash, balances with
other banks, including reserve
balances
and cash items10^.711.276
Other
Total
in
assets
process
assets
of collection....
2*^,3^3,6*^6
1,294,746 103.??g
23,980,820
1,337,701
600 101,541,564
23,991,329
1,293,933
-227.3^
-42,955
362,826
-~.2£
I.51
3.a
_?.lbq.71_!
352,117
S13
1»47
g!l4
5£

511

Comparison of principal items of assets and liabilities of national banks - continued

k

> (in thousands of dollars) »______«_.__«--_««_,___
* -,-,«« -2A
! A«„ nrs *• T« if\ * Increase or decrease : Increase or decrease
J
: ^g5l°*
i A P i g 5 f ' : ™Lf'
* sinee Apr. 30, 1953 « since J _ e 30, 1952 (
_ _ _
5
\
;
2,,
: Amount
: Per cent ; Amount
I Percent]
LIABILITIES
Deposits of individuals, partnerships, and corporations;
Demand
$53,369,383
$53,713,797 $52.23*1,5-6
-$3*&,*H**
-.6*f $1,13*^,797
2.17;
Time
22,285,8*48
21,881,788 20,720,190
*4O*J-,O60
1.85
1,565,658
7.56
Deposits of TJ. S. Government
2,*472,?*J1
2,376,278
3.668,776
96,663
*M>7 -1,195,835 -32#J9
Postal savings deposits
13.451
13.^23
13.13**
28
.21
317
2.41
Deposits of States and political
subdivisions
6,627,528
6,^1,277
6,231,989
176,251
2.73
395,539
6.35
Deposits of banKs
8,596,63*+
8,*4-28,765
8,587,305
167,869
1.99
9.329
.11
Other deposits (certified and
cashiers* checks, etc.)....
1,383,168
l,*t-70,809
1,533,7-Q
-87,6*H
-5.96
-150,5*4-2
~9.S2
Total deposits.
9^.7*«,$53
$*+»336,l37 &2,$S9,o90
*il2,8lb
Tfe
l,759»2b^
O9
Bills payable, rediscounts, and
other liabilities for
borrowed money.....
*+5,510
626,8*40
*4-2,0**6
-581,330 -£2,7**
^XkSk
8.2*4.
Other liabilities..
1,678,089
1,797,933
1,613,765
-119,8*&
-6,67
64,32*1
3.99
Total liabilities, excluding
capital accounts
96,^72,552
96,760,910 9*<-»6**5,501
-288,358 - -.30
1,827,051
1.93
CAPITAL ACCOUNTS
Capital stocks
Preferred.*,..
5,658
5*6-9
6,373
39
.69
-715 -11.22
Common.
2,258,971
2,2*6,223
2,197,093
9,71*8
6_;$78
2.8,
W\Q
Total.
2,264,629
2,254,842
2,203, % b
""9.787
J+\W
61,163
2^8
Surplus
3,^10,122
T.357.9&0
3,175,879
520S?
1755
234,243
17&
Undivided profits.........
1,296,655
1,300,877
1,252,5*&
-**,222
-.32
lfc.lll
3.52
Reserves
267,318
26*1,011
26^,17^
3,307
1.25
3,1*&
1.19
Total surplus, profits, and
reserves
**,97M95
**.922,8*48
k, 692,597
51.2V?
1.0*4
281,*498
6.00
Total capital accounts
7,238.724
7.177.690
6,896,063 ~"~
61,034 "
.8^5
3*1-2,khl~~~Tmyf
loans
RATI
Capital
U.S«Oov*t
assets
OS\
&Total
accounts
discounts
capital
liabilities
securities
accounts
toto total
total
toand
deposits
total
assets
103,711.276
Percent
35*2*5
31.87
7 64
103,938,600
Percent
35*18
32.20
7«6l 101,5*11,56U
Percent"
32.67
37*^
* W2
~227,32
BOTE* 1<Minus -.22
sign denotes
2,169,712
"" decrease.2.1*1-

512

- 2 -

dealers and others for the purpose of purchasing and carrying securities, and
to banks, etc., amounted to $12,000,000,000, an increase of nearly 1 percent

since April, and 15 percent in the year. The percentage of loans and discounts
to total assets on June 30, 1953 was 35*23 in comparison with 35.18 in April
and 32.67 in June 1952.
Investments of the banks in United States Government obligations on June

30, 1953 aggregated $33,000,000,000 (including $2*1,000,000 guaranteed obliga-

tions), a decrease of $*1-22,000,00Q since April. These investments were 32 pe

cent of total assets, compared to 3** percent in June a year ago. Other bonds,
stocks and securities of $8,500,000,000, which included obligations of States
and political subdivisions of $6,200,000,000, were $96,000,000 less than in
April, but $95*000,000 more than held in June last year. The total securities

held amounting to $*41,500,000,000 was $1,500,000,000, or 4 percent, below the
amount reported at the end of June 1952.
Cash of $1,300,000,000, reserve with federal Reserve banks of $12,500,000,000
and balances with other banks (including cash items in process of collection)

$10,500,000,000, a total of $2^,300,000,000, showed an increase of $363,000,00
since April.

The m_:ani,iffliii,rri capital stock of the banks on June 30, 1953 was $2,300,

including less than $6,000,000 of preferred stock. Surplus was $3,*K)0,000,000

undivided profits $1,300,000,000, and capital reserves $267,000,000, or a tota

of $^,900,000,000. Total capital accounts of $7,200,000,000, which were 7.6*4percent of total deposits, were $61,000,000 more than in April when they were
7.6l percent of total deposits.

^1^
v.- _, _»

4la»hington; D. C.

O/yxJ^r

EILIASS M0B1II1G !WSPi-?ElS ^Press Series

Friday fhttysi- xfi i<j*fj ^'^53
The total assets of national banks on June 30, 1953 amounted to more than

$103,000,000,000, it was announced today by Comptroller of the Currency Ray M.
Gidney. The returns covered the U,881 active national banks in the United

States and possessions. The assets were $227,000,000 below the amount reported
by the *J-,S90 active banks on April 20, I953,

tne

date of the previous call, bu

were more than $2,000,000,000 over the aggregate reported by the *4-,932 acti
banks as of June 30, 1952.
The deposits of the banks on June 30 this year were $9*1-,700,000,000, an

increase of $*H3,000,Q00 since April, and an increase of over $1,700,000,000 i

the year. Included in the recent deposit figures were demand deposits of individuals, partnerships and corporations of $53,*K)0,000,000, which decreased
$3*^,000,000, or nearly 1 percent, since April, and time deposits of individuals, partnerships and corporations of $22,300,000,000, an increase of

$*4-04,OGO,000. Deposits of the United States Government of $2,500,000,000 in

creased $97*000,000 since April; deposits of States and political subdivisions
of $6,600,000,000 showed an increase of $176,000,000; and deposits of banks

amounted to $8,600,000,000, an increase of $168,000,000 since April. Postal sa

ings were $13,000,000 and certified and cashiers' checks, etc., were $1,300,00
let loans and discounts on June 30, 1953 were $36,500,000,000, a decrease of

$29,000,000 since April, but nearly $3,*K)0,000,'or 10 percent, above the June
figure last year. Commercial and industrial loans as of the recent call date

were $16,600,000,000, a decrease of $211,000,000 since April. Loans on real es
tate of $8,500,000,000 were up more thed 1 percent in the period. All other

loans, including consumer loans to ind/viduals, loans to farmers, to brokers a

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

514
RELEASE MORNING NEWSPAPERS,
Friday, August 28, 1953

H-233

The total assets of national banks on June 30, 1953
amounted to more than $103,000,000,000, it was announced
today by Comptroller of the Currency Ray M. Gidney. The
returns covered the 4,881 active national banks in the
United States and possessions. The assets were $227,000,000
below the amount reported by the 4,890 active banks on April 20,
1953, the date of the previous call, but were more than
$2,000,000,000 over the aggregate reported by the 4,932 active
banks as of June 30, 1952.
The deposits of the banks on June 30 this year were
$94,700,000,000, an increase of $413,000,000 since April, and
an increase of over $1,700,000,000 in the year. Included in
the recent deposit figures were demand deposits of individuals,
partnerships and corporations of $53,400,000,000, which decreased $S44,000,000, or nearly 1 percent, since April, and
time deposits of individuals, partnerships and corporations
of $22,300,000,000, an increase of $404,000,000. Deposits
of the United States Government of $2,500,000,000 increased
$97,000,000 since April; deposits of States and political subdivisions of $6,600,000,000 showed an increase of $176,000,000;
and deposits of banks amounted to $8,600,000,000, an increase
of $168,000,000 since April. Postal savings were $13,000,000
and certified and cashiers' checks, etc., were $1,300,000,000.
Net loans and discounts on June 30, 1953 were
$36,500,000,000, a decrease of $29,000,000 since April, but
nearly $3,400,000,000 or 10 percent, above the June 30 figure
last year. Commercial and industrial loans as of the recent
call date were $16,600,000,000, a decrease of $211,000,000
since April. Loans on real estate of $8,500,000,000 were up
more than 1 percent in the period. All other loans, including consumer*loans to individuals, loans to farmers, to
brokers and dealers and others for the purpose of purchasing
and carrying securities, and to banks, etc., amounted to
$12,000,000,000, an increase of nearly 1 percent since April,
and 15 percent in the year. The percentage of loans and discounts to total assets on June 30, 1953 was 35.23 in comparison
with 35.18 in April and 32.67 in June 1952.

- 2 Investments of the banks in United States Government
obligations on June 30, 1953 aggregated $33,000,000,000 (including $24,000,000 guaranteed obligations), a decrease of
$422,000,000 since April. These investments were 32 percent
of total assets, compared to 34 percent in June a year ago.
Other bonds, stocks and securities of $8,500,000,000, which
included obligations of States and political subdivisions of
$6,200,000,000, were $96,000,000 less than in April, but
$95,000,000 more than held in June last year. The total
securities held amounting to $41,500,000,000 was $1,500,000,000,
or 4 percent, below the amount reported at the end of June 1952.
Cash of $1,300,000,000, reserve with Federal Reserve banks
of $12,500,000,000 and balances with other banks (including
cash items in process of collection) of $10,500,000,000, a
total of $24,300,000,000, showed an increase of $363,000,000
since April.
The capital stock of the banks on June 30, 1953 was
$2,300,000,000, including less than $6,000,000 of preferred
stock. Surplus was $3,400,000,000, undivided profits
$1,300,000,000, and capital reserves $267,000,000, or a total
of $4,900,000,000. Total capital accounts of $7,200,000,000,
which were 7.64 percent of total deposits, were $61,000,000
more than in April when they were 7.6l percent of total
deposits.

oOo

Statement showing comparison of principal items of assets and liabilities of active national
banks as of June 30, 1953, April 20, 1953* and June 30, 1952
(In thousands of dollars)
June 30*
^^2
Number of banks

4,881

ASSETS
Commercial and industrial loans
;)l6,574,920
Loans on real estate....
8,508,503
All other loans, including
overdrafts,
11,995,778
Total gross loans
37,079,201
Less valuation reserves...
541,846
Net loans.,c............
36,537,355
U. S e Government securities:
Direct obligations.,...«„..„.
33,025,310
Obligations fully guaranteed.
23,744
Total U. S. securities
33,049,054
Obligations of States and
political subdivisionstc
6,218,789
Other bonds, notes, and debentures^
,
2,066,785
Corporate stocks, including
stocks of Fed, Reserve banks.
200,901
Total securities.,
,..
4l,53~5,529
Total loans and securities.,
78,072,864
Currency and coin,
1,353,5B8
Reserve with Fed. Reserve Banks
12,516,301
Balances with other banks.
10^473,757
Total cash, balances with
other banks, including reserve balances and cash items
in process of collection..„
24,343,646
Other assets
1,294,746
Total assets
103,711,276

1^890

: Increase or decrease s Increase or decrease
: since Apr, 20s 1953
: since June 30, 1952
£ Amount
Percent 2 Amount
s Percent

4,932

^16,785,508
8,391,963

-9

£L5,3625876
7,848*650

-j;210,588
116,540

11,920,912
31 .,tW^W
g3I>3^77
36,566,Bo5

10£453,943
33*6~6F;W
h9$,06l
3371707408"*""

74,866
-197_F2
10,269
' -29,S?T

33,449*868
fL1*^
33^471,151

34,678,113
l6s427
34,694^540

6,314,550
2,068,282
199,290
42,053,273
78,^0^07^^"
1,589^532 '
13,013,129
9,678,259

-0l8
-le25
1,39

-51
,£,212,044
659,853

-1,03
7.89
8.4l

.63
13541,835
-76T~"~ 3,4l377T2~
J±»93
46,785
-763" ~~ 3,W^*Jkl

14,75
10cl4
9,45
10lW~

-424,558
2,461
"-422,097

-1*27
11*56
-1*26

-1,652,803
1^311
-1,645,486

-4«77
44,54
-4«74

5,8lO>343

-95,761

-1*52

408,446

7*03

2,393,571

- 1*497

-.07

-326,786

-13,65

187,240
43,0853694
76,256,102"
"1,2^6,363 '
12,529,551
10,205,615

l,6ll
-517,744
^WTXWl?
"647155'"""
-496,828
7Q5>4?8

.81
-1B23
~c"7CT
"X98"
-3.82
8.22

. 13,66l
7C30
-1,550,165
-3.60
1,816,782 '
2.38
"5775-5"
T W
-13,250
-«il
268,142
2.63

C/1
23,980,820
17337,701
103793o7o00

23,991,529
1,293,933
10_7I?I-7T6ir

362,826
~^7955
"^2~27,3"24

1,51
352>117_
'-"^T-IZZ
Z
^
-.22' " T9liW7fl2"

^

2*14

Comparison of principal items of assets and liabilities of national banks - continued
_ ^
(In thousands of dollars )

:
:
t Increase or decrease
June 30$ t Apr0 20, : June 30., : since Apr* 20y 1953
1953
2 1953
t 1952
5 Amount : Percent

LIABILITIES
Deposits of individuals, partnerships, and corporationss

$53,713,797 $S2,23U,S86
21,8817/88 20,720,190
2,376*278
2,472,941
3,668,776
13,423
13,451
13,131*

4344*414
4o4,o6o
96^663
28

-«64
1*85
4*07
«21

$1,134,797
1,565,658
-1,195,835
317

2,17
7«56
•32e59
2e4l

6,627«,528 6,451*277 6,231*989
8,596cl634
8S426:,765
8,587,305

176*25!
167.; 869

2o73
1099

395,539
9*329

6*35
oil

-87,641
"E-781F

6*96

~l5oa542
"1,7597253"

~9«82

3,464
64*324

8^24
3o99

D e m a n Q . * . » < » e o o . « > 3 . v . o o . r < o * . 9 » 9 f r * 3 C » 4 ,ii5393693383
1 lilie 9 4 » « 9 t a r . « « 9 » » « f , 1 o <. » v a •"> e C e O " * o O 22^285^348

Deposits of U© S 0 GovernmentP«e«o».,o»»,7
Postal savings deposits «*<Je5„c«3<,o ».<>©»
Deposits of States and political
SUDQ1VISlCnS I, o.t.ooOfiOt.vAC^SfOtiACnC

Deposits ox DanKsc »«o 9 * >«ocoGo..,><5.oi«»f'»

Increase or decrease
since June 30, 1952
Amount : Percent

Other deposits (certified and
1^333ei63

casniers" checks, etCojoooo«o9t}et«?o
Total deposits>«»•«"oicoc.ar»*i»3.><i

1.470,809

9Cfe55riS35533r

Bills payable, rediscounts, and
other liabilities for
borrowed money o <».»ae#<»<»o»«cooo«». *-*»<* a

45*510

ux>ner liaDHixo.eso<»*&oo wc, •, GO*** ? <> * c * *.
*a
1^678^089

626*840
1»797:933

1*533*710
92;9of7690
42^046

I_6__JLL£1

M

-581,330 *92<>7U
^119^644 <- 6^67

Total liabilities, excluding
capital accounts^cio^eoiis^otja^t)

96,472.552

CAPITAL ACCOUNTS
Capital stocks
UOmiJlOn* »7e»«»«oi«<4«8oi»eoe(i»e«ofai»«e

Total,

5,653
25258a97l

^3WybW~

96.760,910
,94^645^501
j_a^i
5,619
2.249,223

6*373
2*197*093

£88^358^

-.30

l|,827g05l

1*93

39
9*748
9,7Bf
"52^57
~4j,222
3^307

*69
*43
Xk3

-715
61,878

•11*22
2^82

"SSlcT"
3*T&191F55X
"23E^T T3ar
"3td0,122
T75F
Undivided proxits9e>»ao«•»<?»««00e *»«*<»eoOO
1*300*877
is 252,544
1*296,655
44*111
**c32
3,52
r t e s e r v e S / ) • « * • v • « • a * J -.» * o » 6 a »o * 0 e <* a e o c e u 6
264^011
264^174
267,318
3»l44
1*25
1*19
Total surplus, profits, and
reSeiVeSoioo-'^ccwefte
^ancfcfjoofacoo
4*922*848
4,974,095
4*692*597 51*247
281*498
JU04
6,>00
Total capital accounts*** »«••»•«,,,
'
3
K
0
6
T
785"
~6XW
• 1 . i_——In
:<1_L;
Total liabilities and
capital accounts***.<»*.o<,*».o«>o 103«711,276 1032938a600 101,541*564
«r ,22
-227§324
2.169,712
2el4
:-i
PercenF
Percent
Percent
RATIOS:
UoSp Gov*t securities to total
a S S e "OS ». t D » j < ! 9 ) » o i ) < « « > o i « i ) « ( a f * « 9 » e e
31*87
32G20
34ol7
Loans & discounts to total assets
35*23
35,18
NOTE: Minus sign denotes decrease* Cn
32*67
Capital accounts to total deDOsits
7.61
7*64
h-7*42
o U r p X U S f , o c 0 » i e p « - T c o . f > 3 6 . o o » « » r , tre«*?<SOc«!»

I12I3_-5E

You have asked again about the sales tax. Nov, I
would like to make It very clear that the sales tax is
just another one of a large number of taxes that we
are considering, that are before us in our studies with
respect to the new tax bill and what we expect to propose
to Congress next January.

It is true that we are con-

sidering the sales tax, but It Is also and equally true
that we are considering a number of other taxes of equal
importance, and whether any of them will be adopted,
whether any of them will be proposed or suggested remains to be seen, and we will not know ourselves until
our studies have been completed,until we first have
estimates of the expenditures that are going to be
required next year and then attempt to fit the amount
of money that is required by taxation to meet those
expenditures•

519

11

lorn have asked again about the sales tax. Sow, I

would lite to make it very clear that the sales tax is
Just another one of a large number of taxes that we
are considering, that are before us In our studies with
respect to the new tax bill and what we expect to propose
to Congress next January.

It is true that we are con-

sidering the sales tax, but It is also and equally true
that we are considering a number of other taxes ©f equal
importance, and whether any of them will he adopted,
whether any of them will he proposed or suggested remains to he seen, «•£ we will not know ourselves until
our studies have been completed, until we first have
estimates of the expenditures that are going to he
required next year and then attempt to fit the amount
of money that is required by taxation to meet those
expenditures.

£o • •
-y

»-/•

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TREASURY DEPARTMENT
Information Service WASHINGTON, D.C.
520
IMMEDIATE RELEASE,
Thursday, August 27, 1953•

H-234

Secretary Humphrey today made the following statement
regarding a Federal sales tax:
"You have asked again about the sales tax. Now,
I would like to make it very clear that the sales
tax is just another one of a large number of taxes
that we are considering, that are before us in our
studies with respect to the new tax bill and what
we expect to propose to Congress next January.

It

is true that we are considering the sales tax, but
it is also and equally true that we are considering
a number of other taxes of equal importance, and
whether any of them will be adopted, whether any
of them will be proposed or suggested remains to
be seen.

We will not know ourselves until" our

studies have been completed, until we first have
estimates of the expenditures that are going to
be reqaiired next year and then attempt to fit the
amount of money that is reqaiired by taxation to
meet those expenditures/'

oOo

521

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Friday, August 28, 19??.

The Treasmry Departaent annotmeed today that the s-bserlptiea
books will ©pen on Wednesday, September 2, far tha mmhmgm

©f the

2 pereent Treasury to4s of 1951-53, dated September 15, 1943, whiefe
will a&ture tepte_a»r 15, 1953, la the amwit mt $7,9i6,242,500.
Holders of the aaturing bonds will be offered the ehoiee of oneyear 2-5/S peroent eertifieates of indeetednees and 3-1/2-year 2-7/S
percent Treasury notes in exchange for their present holdings.
The new eertifieates will carry an interest coupon payable with
the principal at maturity, and any preirdum paid on the acquisition of
these eertifieates in the market may be amortized in accordance with
See. 125 of the Internal Revenue Code.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, August 26, 1953.

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H-235

The Treasury Department announced today that the
subscription books will open on Wednesday, September 2,
for the exchange of the 2 percent Treasury Bonds of
1951-53* dated September 15, 194-3, which will mataire
September 15, 1953, in the amount of $7,986,242,500.
Holders of the maturing bonds will be offered the
choice of one-year 2-5/8 percent certificates of
indebtedness and 3-1/2-year 2-7/8 percent Treasairy
notes in exchange for their present holdings.
The new certificates villi carry an interest coupon
payable with the principal at matairity, and any premium
paid on the acquisition of these certificates in the
market may be amortized in accordance with Sec. 125 of
the Internal Revenue Code.

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DEPARTMENT U ^
TRE aau<

Treas.
HJ
10
.A13P4
v.97

U.S. Treasury Dept.
Press Releases

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