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TREASURY DEPARTMENT LIBRARY

UH^RY
J UN 1 4 1972
TREASURY DEPARTMENT

LIBRARY
ROOM 5030

JUN 141972
TREASURY DEPARTMENT

-5In another instance, an agent working undercover had a perilous
few moments when he came under suspicion of the group he was dealing with
because of his awkward movements and attitude. He saved the case, and
perhaps his life, by pulling up his shirt and displaying a plaster he had
fixed on his back to relieve his lumbago.

August 11, 1953

- kracket by the Customs Service was pressed vigorously on the basis of
evidence that the possible evasion of income and luxury taxes, as well
as customs duties, on gems constitute a continuing incentive for smugglers. A number of seizures from individuals of gems and jewelry ©in
the $15,000 to $30,000 range were reported.
Other investigations involving frauds against the customs revenues,
such as undervaluation of merchandise and false invoicing, produced large

recoveries from value of seizures, penalties and additional duties assessed.
Numerous investigations involving suspected export control violations were
made by agents.
Seizures of narcotic drugs at ports and borders, increased substantially in fiscal 1953. compared with the previous year, with notably larger
captures of raw and smoking opium and marihuana. Total seizures, including marihuana, were 29,112 ounces, compared with 23,995 ounces in fiscal
1952.
Mr. Emerick noted a tendency of the courts to impose more severe
sentences on narcotics smugglers apprehended by Customs, there being three
10-year, and several 5-year, prison terms -imposed,, with average sentences
of from 2 to 3 years. This tendency, together with the considerable number of large seizures made, has rendered traffickers more wary and dangerous .
Offenders *frequently have been found armed with pistols, brass knucks,
blackjacks, and switchblade knives. In one instance, only quick action of
an agent making an arrest prevented the violator from ducwrlhg a fully
t 1 V\\*M b<2YSoA<

loaded and cocked automatic pistol cc*iee»**d <&r\. r*

- 3disease. Quarantine restrictions have had to be reimposed by the Bureau
of Animal Industry of the Department of Agriculture in recent months
because of new outbreaks of the disease in Mexico.
Disease hazard also figured in another type of smuggling that of
birds of the parrot family, importation of which is restricted by Public
Health regulations. Humans may contract psittacosis, a fever, from in#

fected birds, and one customs agent engaged in these investigations did
become seriously ill of the disease. Smuggling of these birds apparently
is quite profitable, if successful, and Customs has made large seizures
during the past three years. A major development during 1953 was the
indictment, at San Diego, California, of a number of alleged, largescale operators, on conspiracy charges.
Emphasis of Customs and other Treasury agencies concerned with illegal gold exportations turned during the year to developing evidence
against United States handlers of bullion involved in recent large-scale
seizures from carriers attempting to get the yellow metal abroad for sale
at premium prices. A Federal grand jury in the Southern District of New
York returned indictments against 65 individuals and organizations, charging conspiracy to violate the Gold Reserve and other Acts. Evidence in
these cases was developed by customs agents and laboratory experts in
cooperation with Secret Service and United States Mint officials.
Prosecutions of those charged have been proceeding for several
months.
Large-scale seizures of diamonds, such as produced forfeitures exceeding a million and a quarter dollars during the preceding two fiscal
years, were lacking during fiscal 1953* However, investigation of the

- 2 The charges allege shipment of the plane parts by the American
company to a dummy consignee in Paris, by which they were diverted to
Poland in violation of terms of the export license which had been issued
by the Department of State.
Two major cattle smuggling cases were brought to conclusion during
the year. Two persons were convicted in connection with smuggling into
the United States near El Paso, Texas, of 21 prime steers. In the second
case, one of the most extensive such conspiracies ever investigated by
Customs, some 500 head of livestock were involved. The cattle were
traced and seized variously in Texas, Oklahoma, and Arkansas. Practically all the livestock had been stolen from ranches in Northern Mexico,
driven across the Rio Grande in remote places, and concealed in hidden
canyons until they could be dispersed through auction markets some
distance from the border. The conspirators were convicted and sentenced
to prison terms.
Livestock in another alleged smuggling venture investigated by custons agents were valued in excess of a million dollars. Under seizure
in Louisiana are some 60 head of rare, purebred Charol/!^(be breeding
stock, allegedly unlawfully imported into this country from Southern
Mexico, after entry permits had been refused by the United States Government. Federal charges have been brought against one person thus far in
the investigation.
Chester A. Emerick, Deputy Commissioner of Customs, in charge of the
Division of Investigations, points out that cattle smuggling of the type
involved in the several cases takes on added seriousness because of the
danger of infecting United States herds with the dread hoof and mouth

•Propogod-ProGD Itelcaoe

/r~

*- ^.fj

X^yJ- /'/ /" 9 S" a
Combating attempts to smuggle arms and munitions out of the country
in violation of the Neutrality Act became a major enforcement activity
Treasury £ejbdrt/n<*#fs /6>cy<fov A / C O * tcnx
of Unite A pliaUm ".uutono officers during the fiscal year ended June 30,
1953. David B. Strubinger, Acting Commissioner, of Cuafromo^ reported today.
Other major investigations involved the smuggling of livestock,
diamonds, narcotics and psittacine birds into the country, and the outward
smuggling of gold in violation of the Gold Reserve and other laws.
Federal court indictments were obtained during the period in three
major cases investigated by Customs, involving alleged irregular exportation of arms and munitions. Large quantities of ammunition and small
arms were involved in a case in which a Dallas, Texas, sporting goods
company, and nine persons residing in the United States and Mexico are
under indictment. iMm^am^^ss^Bmsa^sK^f reifies and other merchandise were
placed under seizure, both by United States Customs and by Mexican
authorities.
A second case involved an alleged attempt to export JdS^BBH^Mitfc«fcaes-of munitions to Cuba, purportedly for use in insurrection against the
Government of that country. While ;the supervising customs agent in New
York was directing active investigation and surveillance of activities
of the group assembling the munitions, with a view to apprehending the
suspects in the act if they attempted illegal exportation, local police
and fire authorities seized the cache as a fire hazard. The materials
subsequently were turned over to Customs for seizure, and conspiracy
charges have been instituted against the principals.
Airplane engine parts were involved in the third major case, in which
a Maryland firm, its owner, and a third individual are charged with conspiracy.

TREASURY D E P A R T M E N T
Information Service
RELEASE AM NEWSPAPERS,
Tuesday, September 1, 1953-

WASHINGTON, D.C.

6
H-236

Combating attempts to smuggle arms and munitions out of
the country in violation of the Neutrality Act became a major
enforcement activity of Treasury Department's Bureau of
Customs during the fiscal year ended June 30, 1953, David B.
Strubinger, Acting Commissioner, reported today.
Other major investigations involved the smuggling of
livestock, diamonds, narcotics and psittacine birds into the
country, and the outward smuggling of gold in violation of
the Gold Reserve and other laws.
Federal court indictments were obtained during the period
in three major cases investigated by Customs, involving
alleged irregular exportations of arms and munitions. Large
quantities of ammunition and small arms were involved In a
case in which a Dallas, Texas, sporting goods company, and
nine persons residing in the United States and Mexico are
under indictment. Rifles and other merchandise were placed
under seizure, both by United States Customs and by Mexican
authorities.
A second case involved an alleged attempt to export
munitions to Cuba, purportedly for use in insurrection against
the Government of that country. While the supervising customs
agent in New York was directing active investigation and
surveillance of activities of the group assembling the munitions, with a view to apprehending the suspects in the act
if they attempted illegal exportation, local police and fire
authorities seized the cache as a fire hazard. The materials
subsequently were turned over to Customs for seizure, and
conspiracy charges have been instituted against the principals.
Airplane engine parts were involved in the third major
case, in which a Maryland firm, its owner, and a third individual are charged with conspiracy.
The charges allege shipment of the plane parts by the
American company to a dummy consignee in Paris, by which
they were diverted to Poland in violation of terms of the
export license which had been issued by the Department of
State.

- 2-

Two major cattle smuggling cases were brought to conclusion during the year. Two persons were convicted in
connection with smuggling into the United States near El Paso,
Texas, of 21 prime steers. In the second case, one of the
most extensive such conspiracies ever investigated by
Customs, some 500 head of livestock were involved. The
cattle were traced and seized variously in Texas, Oklahoma,
and Arkansas, Practically all the livestock had been stolen
from ranches in Northern Mexico, driven across the Rio Grande
in remote places, and concealed in hidden canyons until they
could be dispersed through auction markets some distance from
the border. The conspirators were convicted and sentenced
to prison terms.
Livestock in another alleged smuggling venture investigated by customs agents were valued in excess of a million
dollars. Under seizure in Louisiana are some 60 head of
rare, purebred Charolaise breeding stock, allegedly unlawfully imported into this country from Southern Mexico, after
entry permits had been refused by the United States Government. Federal charges have been brought against one person
thus far in the investigation.
Chester A. Emerick, Deputy Commissioner of Customs, in
charge of the Division of Investigations, points out that
cattle smuggling of the type involved in the several cases
takes on added seriousness because of the danger of infecting United States herds with the dread hoof and mouth
disease. Quarantine restrictions have had to be reimposed
by the Bureau of Animal Industry of the Department of
Agriculture in recent months because of new outbreaks of the
disease in Mexico.
Disease hazard also figured in another type of smuggling
that of birds of the parrot family, importation of which is
restricted by Public Health regulations. Humans may contract
psittacosis, a fever, from infected birds, and one customs
agent engaged in these investigations did become seriously
ill of the disease. Smuggling of these birds apparently is
quite profitable, if successful, and Customs has made large
seizures during the past three years. A major development
during 1953 was the indictment, at San Diego, California,
of a number of alleged,, large-scale operators, on conspiracy
charges.

- 3-

Emphasis of Customs and other Treasury agencies concerned
with illegal gold exportations turned during the year to
developing evidence against United States handlers of bullion
involved in recent large-scale seizures from carriers attempting to get the yellow metal abroad for sale at premium prices.
A Federal grand jury in the Southern District of New York
returned indictments against 65 individuals and organizations,
charging conspiracy to violate the Gold Reserve and other
Acts. Evidence in these cases was developed by customs agents
and laboratory experts in cooperation with Secret Service and
United States Mint officials.
Prosecutions of those charged have been proceeding for
several months.
Large-scale seizures of diamonds, such as produced forfeitures exceeding a million and a quarter dollars during the
preceding two fiscal years, were lacking during fiscal 1953.
However, investigation of the racket by the Customs Service
was pressed vigourously on the basis of evidence that the possible evasion of income and luxury taxes, as well as customs
duties, on gems constitute a continuing incentive for smugglers.
A number of seizures from individuals of gems and jewelry in
the $15,000 to $30,000 range were reported.
Other investigations involving frauds against the customs
revenues, such as undervaluation of merchandise and false
invoicing, produced large recoveries from value of seizures,
penalties and additional duties assessed. Numerous investigations involving suspected export control violations were made
by agents.
Seizures of narcotic drugs at ports and borders increased
substantially in fiscal 1953, compared with the previous year,
with notably larger captures of raw and smoking opium and
marihuana. Total seizures, including marihuana, were 29,112
ounces, compared with 23,995 ounces in fiscal 1952.
Mr. Emerick noted a tendency of the courts to impose more
severe sentences on narcotics smugglers apprehended by Customs,
there being three 10-year, and several 5-year, prison terms
imposed, with average sentences of from 2 to 3 years. This
tendency, together with the considerable number of large
seizures made, has rendered traffickers more wary and dangerous.

- k-

Offenders more frequently have been found armed with
pistols, brass knucks, blackjacks, and switchblade knives.
In one instance, only quick action of an agent making an
arrest prevented the violator from using a fully loaded and
cocked automatic pistol concealed on his person.
In another instance, an agent working undercover had a
perilous few moments when he came under suspicion of the
group he was dealing with because of his awkward movements
and attitude. He saved the case, and perhaps his life, by
pulling up his shirt and displaying a plaster he had fixed
on his back to relieve his lumbago.

0O0

(4- xsy
tuesday, Septa&bar 1, 1953 *.
Tim Tmasmry Bapartent mmmmad

last emmim

**** **» tesdars far §1,500,000,000,

or tharaateomta, at 91**d®y Treasury U U U to bm dated isfrtrnftir 3 an* to attorn
bar 3, 1953, whleh wara offered on kmmt

mam-

27, isar® ojiaiKMl at thm fademl Easarva Banks

on Am®aat 31.
The details of this issu@ are as follows*
fatal applied tor - SdJ956?jb $3Ut#0CO
total accepted
- 1*506,19,9,000

(tmaladmm #229,625*000 mritmred on a
ao&*o.q»aAltiv* basis and aaaapiaii In
full at t&a avaraga prim shown balmm)
Jmmm
Wl®®
~ 99*5$M Equivalent rata of aisoount swroau 1.961$ pet annum
Range of aaaaptea* cos^etltiva htdai
I1A
1,0*

- 99*$07 Sciuiimlejsrt rata of dlsmwmt ajpprac 1.9?0$ par a n m
- 99*503
«
•
»
a
»
1.966* »
*
(38. psroaot of the mrattt bid for at the low price was

*»^,*«L

total
Accepted

total

fmdmml lasarv©
Biatrlot
Boston
lair Jerk
jbUadallphi*
Cleveland
Eiohasond
Atlanta
Chicago
St* Loais
Minneapolis
Kansas Qtty
Dallas
Sam Francisco

h$,$6$$.mo

29,1*77,000
239,27^,000
33,99k,000
Hi,697,00O
91,781,000
36,1*90,000
10Q,6li?,000

36,256,000
9714,668,000
17,223,000
36,185,000
13,867,000
17,589,000
186,81*0,000
19,503,000
9,577,000
79,855,000
t% 91*0,000
63,636,000

$2,367,832,000

#1,500,139,000

1,676,105,000

3k,??6#ooo
bS,to,ooo
If,73?,ooo

tOtAI.

mamptmd)

TREASURY DEPARTMENT
WASHINGTON, D.C.

Information Service

11
RELEASE MORNING NEWSPAPERS,
Tuesday, September 1, 1953.

H-237

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated September 3 and to mature December 3» 1953, which were offered
on August 27, were opened at the Federal Reserve Banks on August 31.
The details of this issue are as follows:
Total applied for - $2,36?,832,000
Total accepted
- 1,500,139,000 (includes $229,625,000
entered on a non-competitive
basis and accepted in full
at the average price shown
Average price
below)
- 99.504/ Equivalent rate of discount approx.
Range of accepted competitive bids: 1.96l$ per annum
- 99.507 Equivalent rate of discount approx.
1.950$ per annum
Low
- 99.503 Equivalent rate of discount, approx.
1.966$ per annum
(88 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 for
$
45,565,000
1,676,105,000
34,570,000
45,493,000
19,737,000
29,477,000
239,274,000
33,994,000
14,697,000
91,781,000
36,490,000
$2,367,832,000
100,649,000
0O0

36,256,000
974,668,000
17,223,000
36,185,000
13,867,000
17,589,000
186,840,000
19,503,000
9,577,000
79,855,000
24,940,000
83,636,000
$1,500,139,000

- 3 X83DDC

•but shall be except from all taxation now or harcafter imposed on the princip

or interest thereof by any State, or any of the possessions of the United State
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 b
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 ?;hich 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 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 -

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 incorporat
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 vdll be advised of the acceptance or rejection thereo

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 September 10, 1953 , I*1 cash or
other immediately available funds or in a like face amount of Treasury bills
maturing September 10, 1953 Cash and exchange tenders will receive equal
treatment. Cash adjustments vdll be made for differences betareen 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 hav:: 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,

TREASURY DEPARTMENT
Washington

- X. 3 r

FOR RELEASE, MORNING NEWSPAPERS*
Tuesday, September 1. 1953

"~~ * -m

~——

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
%1»399a956<000

September 10, 1953

> i n 'the amount of

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated

September 10, 1953

, and m i l mature

w — —

December 10, 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 o.m., Eastern/StaGa&OKSk time, Friday, September k* 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 comnanics and from responsible and recognized
dealers in investment securities,, Tenders from others must be accompanied by

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Tuesday, September 1, 1953*

IINGTON, D.C.

X.KS

H-238

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 10, 1953,
in the amount of $1,399,956,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated September 10, 1953,
and will mature December 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, Friday, September 4, 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 TrT 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 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
tenderswill
for
$200,000
or
less
without
stated
price
any
oneat the
tenders
bidder
decimals)
in
of
accordance
be
accepted
accepted
with
competitive
in
the
full
bids
atbids.
the
must
average
be
Settlement
made
price
orfrom
completed
for
(in
accepted
three

- 2 Federal Reserve Bank on September 10, 1953, In cash or othe.r,v__-;_„_.
immediately available funds or in a like face amount of Treasury
bills maturing September 10, 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 su.ch 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 the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
oOo
from any Federal Reserve Bank or Branch.

~3-

2. the Bearmtary at thai Treasury may at any thm9 or trm tima to time,
preaarifea supplemental or awrndfttwrar rmlea and ragalMlfcaa §©if»ri*I®g;th®
mtierimg9 which will fea eafaatzalaatad proisptly to-th« federal nemarve Banks.

0. M. HOMPHHKX,
Secretary of- the freaaury*

r
2* The Secretary at the Treaewy reserves the right to reject any sutocripttoa, In whole or in part, to allot less thais the amount at note® mppUad tmr9 amd
to close the books m t© any or all wtoeriptioi*® at amy timm without notleej amd
amy amtlm ha mey take In theaa r<sepeete shall to- final. Subject te these reservatlmm, all «atot^ptI*B» will'to allotted in full. AUotaial na-tiee* will to seat
o**t promptly upon allotment.

If* fkWMf
1. PayMent at par ito notes allotted toretmder stust to sade an or bmimrm
Septesttor 1$9 19$39 or on later alletaieat, and may be si&de only in Treasury Boeds
of 1951-53, dated September IS, 19k39 maturing f eptansber 1$9 19$39 whieh mill to
mmmmptmd at par9 md should mmmpamy the s^aerlptlou. Final interest due Septantor 15 on tto'Mtorlim tonde aurreiifttartd will be paid, la the case of ecrapon hmmd»9
by payment of Sej»te«itor 1$9 1953 ccmpoo®, wkieh ahovldfeedetaehed by holders before
presentation of the hoods, and In the ease of registered bends, fey cheeks drama %m
accordance with the assignments on the bonds ewrrendmred*

ta nmmwmm cor imwmm mms
1* Treamry loads of 1951-53 in registered form tendered in payment for notes
offered hereunder should be assigned by the registered payees or assignees thereof
to *fto Secretary of the Treasury for exchange for Treasury lotea of Seriea A-195?
to to delivered to
« a la eoeordame with the general regulations at
the Treasury Departiint'"govern 1J% assignments for transfer or eaeehaage, and thereafter should be presented md surrendered with the sutoeriptlen to a Federal Eeeerve
Bank or Branch or to the Offlee at the treasurer of the United States, Washington.
The bonds must he delivered at the expense and risk of the holders.

n. ommmi ?mfmmm
1, As fiscal agents of the United States, Federal Eeserve Banks are author*
iaed and requested to receive e^baeriptione, to make allotatnts on the basis and
up t© the amounts indicated hy the Seeretary of the Treaaury te the Federal Reserve
Beaks of the respective Mstrlete, to issue allotment notiees, to receive payiite«t
for notes allotted, to melee delivery of note* on fall-paid sutoerlptloii®, allotted,
end they soy iseise Interim receipts pending delivery of the definitive notes.
2. The Seeretary of the treasury may at amy time, or from tiase to tlaie, prescribe supplemental or amendatory rules md regt&stiens governing the offering,
whieh will to e**s*enie*ted promptly t© the Federal Beserve Bank®.

G* M. H W F H m f
lsecretary of the treasury.

mm®

m m

OF AMUQH

M/$ mmum tmMim mm OF m&xm i~i9$7
Bated and bearing interest frem topteistor 15, 19$3 ©me Mares 15, W$7

1953
Department Circular Ho. 9%9
.
Flseal fervlee
Bureau of the f^biie 3mht

tmmma

iMummm,

Office at the Seeretary,
Washington, September 29 19$3*

i. offEsun OF w&m
1. The Seeretary of the Treasury, pursuant t® the asittorityef the Second ,
Liberty Bend tot, as speeded, invites subsections, at par,, fro** the people of the
United States for notes of the United States, designated 2»|/i percent Treasury
?btes of Series A-1957, ia exchange for 2 percent treaswy Bonds of 1951-53, dated
September 35, 19k39 and maturing September 15, 3.953. The aswrnnt of the offering
under this circular will be limited t© the sawwai ef maturing tonds tendered In ex2. In addition to the offering under this circular, holders of the maturing
tonds are offered the .privilege of exehanging all or any part of such bends tor
t~5/l percent freasnry Certificate® ef Indebtedness ©f Series-.fr»l&li, which offering is set forth in Departwent Circular is* ?£0, issued simltaneeusly with this
circular.
11. BI$OtIPT.t0ff OP N0T28
1. The notes wi.ll to dated Seftewtor '15, 1953, amd will hear interest from
that date at the rate of 2-7/8 percent par annum, payable semiannually on March 15
and September 15 in aach year until the principal amount becomes payable, they
will nature March 15, 19$79 and. will net-to smejeet to call for redemption prior
te iiatmrity.
2* the Income derived from the notes'shall to subject to all taxes now or
hereafter imposed under the Internal Revenue Code, or laws anendatery.or supplementary thereto. The notes Shan be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but shall to exempt fro® all taxation now
or hereafter imposed on the principal or Interest thereof by any State, or any of
the possessions «f. tlis. Waited Jtate®, or by any local,taxing authority.
3. the notes will be acceptable te secure deposits of public moneys* They
will not to acceptable in payment- of taxes.
k* Bearer notes with interest coupons attached will he issued in denominations
of $1,000, 15,000, H0 f 000, $100,000 and $1,000,000. The notes will not to issued
in registered fern.
$. The notes will to subject to the general regulations of the Treasury Department, now or hereafter preseritod, governing United States notes.

in. stasetiPTiOM mv

ALLOTMENT
1. Subscriptions will to received at the Federal Eeserve 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,toutonly tha
Federal Reserve Banks and the Treasury Departoent are authorised te act as official
agencies.

- 2 -

XII. •: SiHSOaiPTlOl? AMD AUOIlfSNr
1. Subscriptions will be received at the Federal Eeserve Banks and
Branches and at the Office of the Treasurer of the United States, Washington.
Banking Institutions generally may submit imtooriptians tor account ef customers, but only the Federal Eeserve Banks and the Treasury Department are
authorised to act as official agencies.
2. Hie 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 tints
without noticej and any action he may take in these respects shall be final.
Subject to these reservations, all subscriptions will to allotted in full.
Allotment notices will be sent out promptly upon allotment.

If. fktmm
1. Payment at par for certificates allotted hereunder wast be wade on or
before September 15, 1953, or on later allotment, and may be made only in
Treasury Bonds of 1951-53, dated September 1$, 191*3, maturing September 15,
1953, which will be accepted at par, and should accompany the subscription.
Final interest due September 15 ©n the-maturing bonds surrendered w i n be paid,
in the case of coupon bonds, by payment of September 15, 19$3 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.
f. ASSB1§«T OF BIGISfBBHD BOIDS
• 1. Treasury Bonds of 1951-53 in registered term tendered in payment for
certificates offered hereunder should to assigned by the registered payees or
assignees thereof te ffThe Secretary of the Treasury for exchange for Treasury
Certificates of Indebtedness of Series 1-195*4 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 te the
Office of the Treasurer of the United.States, Washington. The bonds must be
delivered at. the expense and risk of the holders.
vX OnBIHL' PROflSIOMS
1. As fiscal agents ot the United States, Federal Eeserve Banks are authorised and requested to receive subscriptions, to sake allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the federal Reserve Banks of the respective Bistrieta-, to issue allotment notices, to receive
payment for certificates allotted, to wake delivery of certificates on full-paid
subscriptions allotted, and they may Issue interim receipts pending delivery of
the definitive certificates.

UNITED STATES OF AMERICA
2-5/8 PEtCSST TREASURY GEHTIHCATIS OP HSEBTIWESS Of SNOBS E-lf54

tK
Bated and bearing interest from September 15, 1953 Out September 15, 1954

1953
topartment Circular Mo»- 92S
Fiscal Service
Bureau of the Public Debt

Tssastrst mrtkWtwmt,
Office of the Secretary,
Washington, September 2, 1953.

I. OFFSHIHG-0F CSiTXFIOATES
1. The Secretary ef the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people at
the United States for certificatesW indebtedness of the United States, designated 2-5/8 percent Treasury Certificates of Indebtedness of Series E-1954, i»
exchange for 2 .percent Treasury Bends of 1951-53, dated September 15, i§43, and
maturing September 15, 1953. Me amount of the offering under this circular will
be limited to the amount of maturing bonds tendered in exchange and accepted*
2* In addition to the offering under'this circular, holders of the maturing
bonds are offered the privilege of exchanging all or any part of such bonds for
2-7/8 percent Treasury iote® of Series'£-1957, which offering is set forth in
Department Circular Mo. 929, issued'simultaneously with this circular.
II. WKaXPKOi -OF CKBTIFIGATp
1, The certificates will be dated September 15, 1953, and will bear interest from"that date.at the rate of 2-5/8 percent per annum, payable at the
maturity of the certificates on September 15, 1954, they will not be subject to
c a U for redemption prior to maturity.
2. The income derived fro® the certificates shall be subject to all taxes,
now or hereafter imposed under the Internal Bevenue Cod®, or laws amendatory ©r
supplementary thereto. The certificates 'shall be subject te estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt from
a H taxation now or hereafter Imposed on the principal or interest thereat by
any State, or any ef the possessions of the United States, or by any local taxing authority. Any premium paid on the acquisition of these certificates in ths
market may be amortised in accordance with Sec. 125 of the Internal Bevenue Code.
3. The certificates will be aeceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes,
4. Bearer certificates with one interest coupon attached will to issued in
denomination® of .11,000, £5*000, #10,000, $100,000 and ft,000,000. The certificates will not be Issued in registered form.
5. The certificates will be subject to the general regulations ef the
Treasury Department, now or hereafter prescribed, governing United States certificates.

RELEASE MOMIMI MBftrmPttS,
Wednesday, ieptember 2» 1953*
The Treasury today announced the details ef the offering, through the
Federal Eeserve Banks, of 2-5/8 percent treasury Certificates of Indebtedness of Series 8-195&, and 2-7/8 percent Treasury mtea at Series A-1957,
open on an exchange basis, par for par, in authorised denominatiene, to
holders ef 2 percent Treasury Bonds of 1951-53, dated September 15, 1943,
maturing September 1$, 1953, in the amount of #7,986,242,500. Cash subscriptions will not to received.
The certificates now offered will be dated September 15, 1953, and will
bear interest from that date at the rate ef 2-5/8 percent per annum, payable
at the maturity of the certificates on September 15, Wk*
they will to
issued in bearer form only, in denominations of §1,000, #5,000, |10,000,
1100,000 and 11,000,000.
The notes now offered will be dated ieptember 15, 1953, and will bear
interest from that date at the rate of .2*7/1 percent per annum, payable semiannually on March 15 and September 15 in each year until the principal amount
becomes payable. They will mature
March 15, 1957. They will be issued
in bearer form only, with interest coupons attached, in denominations of
#1,000, 15,000, #10,00?,ft&0,000 and §1,000,000.
Subscriptions will be received at the Federal Heaerva Banks and Branches
and at the Office of the Treasurer of the tfoited States, Washington, and
should be accompanied by a like face amount of the bonds to be exchanged.
^e subscription books will close tor the receipt of all subscriptions
at the close ef business Friday, September k* Subscriptions addressed to a
Federal Eeserve Bank or Branch, or to the treasurer of the United States,
and placed in the mail before midnight September 4 will to considered as
having been entered before the close of the subscription books.
The textsof the official circulars ..follow:

TREASURY DEPARTMENT
Information Service

IINGTON, D.C.

22
RELEASE MORNING NEWSPAPERS,
Wednesday, September 2, 1953.

. H-239

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 E-195^, and 2-7/8 percent Treasury
Notes of Series A-1957, open on an exchange basis, par for par, in
authorized denominations, to holders of 2 percent Treasury Bonds of
1951-53, dated September 15, 19^3, maturing September 15, 1953, in
the amount of $7,986,242,500. Cash subscriptions will not be
received.
The certificates now offered will be dated September 15, 1953,
and villi bear interest from that date at the rate of 2-5/8 percent
per annum, payable at the maturity of the certificates on
September 15, 1954. They will be issued in bearer form only, in
denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000.
The notes now offered will be dated September 15, 1953, and will
bear interest from that date at the rate of 2-7/8 percent per annum,
payable semi-annually on March 15 and September 15 in each year until
the principal amount becomes payable. They will mataire March 15,
1957.
They will be issued in bearer form only, with interest
coupons attached, 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
bonds to be exchanged.
The subscription books will close for the receipt of all subscriptions at the close of business Friday, September 4.
Subscriptions addressed to a Federal Reserve Bank or Branch, or to
the Treasurer of the United States, and placed in the mail before
midnight September 4 will be considered as having been entered
The
texts
ofof
the
official
circulars
follow:
before
the
close
the
subscription
books.

^7
CM

- 2UNITED STATES OF AMERICA
2-5/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES E-1954
Dated and bearing interest from September 15,1953 Due September 15,1954
1953 TREASURY DEPARTMENT,
Department Circular No. 928

Office of the Secretary,
Washington,September 2,
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 E-195^, l n exchange for
2 percent Treasury Bonds of 1951-53, dated September 15, 19^3, and
maturing September 15, 1953. The amount of the offering under this
circular will be limited to the amount of maturing bonds tendered in
exchange and accepted.
2. In addition to the offering under this circular, holders of
the maturing bonds are offered the privilege of exchanging all or any
part of such bonds for 2-7/8 percent Treasury Notes of Series A-1957,
which offering is set forth in Department Circular No. 929, issued
simultaneously with this circular.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated September 15, 1953, and will
bear interest from that date at the rate of 2-5/8 percent per annum,
payable at the maturity of the certificates on September 15, 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. 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.
3. The certificates will be acceptable to secure deposits of
public moneys. They will not be acceptable in payment of taxes.

24
- 34. Bearer certificates with one interest coupon attached 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 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 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 at par for certificates allotted hereunder must be
made on or before September 15, 1953, or on later allotment, and
may be made only in Treasury Bonds of 1951-53, dated September 15,
19^3, maturing September 15, 1953, which will be accepted at par, and
should accompany the subscription. Final interest due September 15
on the maturing bonds surrendered will be paid, in the case of coupon
bonds, by payment of September 15, 1953 coupons, which should be
detached by holders before presentation of the bonds, and in the case
oi1 registered bonds, by checks drawn in accordance with the assignments
on the bonds surrendered.
»

V. ASSIGNMENT OF REGISTERED BONDS
1. Treasury Bonds of 1951-53 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 E-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 Office of the Treasurer of the
and
United
risk
States,
of theWashington.
holders.
The bonds must be delivered at the expense

25
- kVI.

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 fullpaid 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.

- 5UNITED STATES OF AMERICA
2-7/8 PERCENT TREASURY NOTES OF SERIES A-1957
Dated and bearing interest from September 15,1953
1953 ' TREASURY DEPARTMENT,
Department Circular No. 929

Due March 15,1957

Office of the Secretary,
Wa shington,Septembe r 2,
1953-

Fiscal Service
Bureau of the Public Debt
I. OFFERING OF NOTES
1. The Secretary of the Treasury, pursuant to the authority of
the Second Liberty Bond Act, as amended, invites subscriptions, at
par, from the people of the United States for notes of the United
States, designated 2-7/8 percent Treasury Notes of Series A-1957, in
exchange for 2 percent Treasury Bonds of 1951-53, dated September 15,
19^3, and maturing September'15, 1953- The amount of the offering
under this circular will be limited to the amount of maturing bonds
tendered in exchange and accepted.
2. In addition to the offering under this circular, holders of
the maturing bonds are offered the privilege of exchanging all or any
part of such bonds for 2-5/8 percent Treasury Certificates of
Indebtedness of Series E-195^, which offering is set forth in
Department Circular No. 928, issued simultaneously with this circular.
II. DESCRIPTION OF NOTES
1. The notes will be dated September 15, 1953, and will bear
interest from that date at the rate of 2-7/8 percent per annum,
payable semiannually on March 15 and September 15 in each year until
the principal amount becomes ..payable. They will mature March 15,
1957, and will not be subject to call for redemption prior to maturity.
2. The income derived from the notes shall be subject to all
taxes now or hereafter imposed under the Internal Revenue Code, or
laws amendatory or 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.
3. The notes will be acceptable to secure deposits of public
moneys. They will not be acceptable in payment of taxes.

- 6-

4. Bearer notes with interest coupons attached will be issued
in denominations of $1,000, $5,000, $10,000, $100,000 and
$1,000,000. The notes will not be issued in registered form.
5. The notes will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing
United States notes.
III. 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. 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 notes applied for, and to close the books as to any or all
subscriptions at any time without notice; and any action he may take
in these respects shall be final. Subject to these reservations,
all subscriptions will be allotted in full. Allotment notices will
be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par for notes allotted hereunder must be made on
or before September 15, 1953, or on later allotment, and may be made
only in Treasury Bonds of 1951-53, dated September 15, 19^3, maturing
September 15, 1953, which will be accepted at par, and should
accompany the subscription. Final interest due September 15 on the
maturing bonds surrendered will be paid, in the case of coupon
bonds, by payment of September 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.
V. ASSIGNMENT OF REGISTERED BONDS
1. Treasury Bonds of 1951-53 in registered form tendered in
payment for notes offered hereunder should be assigned by the
registered payees or assignees thereof to "The Secretary of the
Treasury for exchange for Treasury Notes of Series A-1957 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 Office of the Treasurer of the United States, Washington.
The bonds must be delivered at the expense and risk of the holders.

- 7VI. 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 notes allotted, to make delivery of notes on full-paid subscriptions allotted, and they may issue interim receipts pending
delivery of the definitive notes.
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 ccniinunicated promptly to the
Federal Reserve Banks.

G. M. HUMPHREY,
Secretary of the Treasury.

1
RELEASE MORNING NEWSPAPERS,
Saturday, September 5, 1953*

^
^

•y u
''" '

The Treasury Department announced last evening that the tenders for $1,500,000,000

or thereabouts, of 91-day Treasury bills to bs dated September 10 and to Mature De

ber 10, 1953, which were offered on September 1, were opened at the Federal Reserv
Banks on September k*
The details of this issue are as follows:
Total applied for - #2,022,888,000
Total accepted
- 1,500,288,000

Average price

(includes 1221,801,000 entered on e
non-competitive basis and accepted in
full at the average price shown below)
- 99-506/ Equivalent rate of discount approx. 1*9$3$ per annua

Range of accepted competitive bids:
High - 99.519 Equivalent rats of discount approx. 1.903$ per annum
Low

- 99.502

1.0705!

(The entire amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied lor

Total
Accepted

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

$
21,871,000
1,159,1^1,000
J0,912,000
50,287,000
18,822,000
28,358,000
233,829,000
25,273,000
I5,hl5,000
39,123,000
27,715,000
71,792,000

$2,022,888,000

11,500,288,000

Total

21,771,000
965,1*61,000
15,812,000
50,217,000
15,-22,000
26,058,000
230,729,000
25,273,000
15,315,000
36,693,000
25,615,000
71,392,000

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Saturday, September 5S 1953-

H-240

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated September 10 and to mature December 10, 1953, which were
offered on September 1, were opened at the Federal Reserve Banks on
September k.
The details of this issue are as follows:
$2,022,888,000
1,500,288,000 (includes $221,801,000
entered on a non-competitive
basis and accepted in full
at the average price shown
Average price
below)
99.506/ Equivalent rate of discount approx.
Range of accepted competitive bids: 1.953$ per annum

Total applied for
Total accepted

- 99.519 Equivalent rate of discount approx,
1.903$ per annum
Low
- 99.502 Equivalent rate of discount approx
1.970$ per annum
(The entire 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 Francisco
TOTAL

Total
Applied for
$
21,871,000
1,459,461,000
30,912,000
50,287,000
18,822,000
28,358,000
233,829,000
25,273,000
15,^15,000
39,123,000
27,7^5,000
71,792,000
$2,022,888,000
0O0

Total
Accepted
$

21,771,000
965,461,000
15,812,000
50,217,000
15,922,000
26,058,000
230,729,000
25,273,000
15,315,000
36,693,000
25,645,000
71,392,000
$1,500,283,000

Draft-——•GSRMe!3^ri±2rrBCF~

YS ^ :

.^y-?™
*

Acting Commissioner of Customs David B« Strubinger
announced today the issuance of amendments to the Customs
Regulations required to conform to changes In the law
resulting from the enactment of the Customs Simplification
Act of 1953, approved August 8, 1953. These Regulations
were filed with the Federal Register on September 4, 1953,
and appear in the Register of today's date. This action
assures the public that there will be no delay in putting
into effect the many improvements and clarifications of
the Simplification Act.

J^jP****'** *

By its terms the Customs Simplification Act is
effective on and after September 7, 1953/ In order to
avoid any questions of the operation of the new provisions
on and after the effective date and to minimize possible
confusion and uncertainty with respect to the application
of those provisions it was necessary to publish these
Regulations as near the effective date of the Simplification
Act as possible.

Although advance notice was notGpeWikLe because of
this time limitation, the Bureau of Customs is interested
in receiving any criticisms or suggestions for possible
amendment of the new Regulations. All such comments should
be sent to the Commissioner of Customs within the next
30 days.

TREASURY DEPARTMENT
Information Service

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

32
RELEASE AM NEWSPAPERS,
Wednesday, September 9, 1953-

H-241

Acting Commissioner of Customs David B. Strubinger
announced today the issuance of amendments to the Customs
Regulations required to conform to changes in the law resulting
from the enactment of the Customs Simplification Act of 1953,
approved August 8, 1953. These Regulations were filed with the
Federal Register on September 4, 1953, and appear in the
Register of today's date. This action assures the public that
there will be no delay in putting into effect the many improvements and clarifications of the Simplification Act.
By its terms the Customs Simplification Act is effective
on and after September 7, 1953, with certain minor exceptions.
In order to avoid any questions of the operation of the new
provisions on and after the effective date, and to minimize
possible confusion and uncertainty with respect to the
application of those provisions, it was necessary to publish
these Regulations as near the effective date of the
Simplification Act as possible.
Although advance notice was not practicable because of
this time limitation, the Bureau of Customs is interested in
receiving any criticisms or suggestions for possible amendment
of the new Regulations. All such comments should be sent to
the Commissioner of Customs within the next 30 days.

oOo

•»*2—
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made .from cotton having-a staple-of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEs Provided-, however, that not more than -33-1/3 percent of the quotas shall
be filled by cotton wastes--other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case- of the- following- countries s United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italyg

Country of Origin

United Kingdom .
Oanacta . . . . .
s. ranee . . . . .
British India..
Netherlands „ «
Switzerland . .
Belgium . o o o o « . . .
Japan O O 0 0
China o o • o
Egypt o a . o o . o 0
Cuba o e • o
«
0
Germany o o o o
• a
o
a
Italy O O 0 o
o o
9 O

Established
TOTAL QUOTA

Total Imports
Sept. .20, 1952, to
September B, 1953

Established
33-1/356 of
Total Quota

Imports
Sept. 20, 19^ 2 >
to Sept, 8, 1953

1,441,152

166,747

75,807

13,032

22,747
14,796
12,853

15,715

,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

167,354
239,495
13,032
66,229
15,715

24,618
6.430

25,443
7,088

24,618
6,430

5,482,509

545,726

1,599,886

239,395

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

12,853

-""'fVt^- ^^Ly-^tt

^mxmeaep&m

/yy^a^fy-^ •]/&

IMMEDIATE RELEASE
'/X.€^y September 8, 1953

Established Quota

Imports

Country of Origin

Established Quota

Imports

752
Egypt and the AngloHonduras *. ^.,
783,816
Egyptian Sudan ....
Paraguay
871
247,952
Peru
53,664
Colombia
124
2,003,483
British India
Iraq
195
1,370,791
China
British East Africa ...
2,240
8,883,259
Mexico
8,883,259
Netherlands E. Indies
71,388
618,723
Brazil
124,891
Barbados ..;
Union of Soviet
l/0ther British W. Indies 21,321
475,124
5,377
Socialist•Republics
Nigeria ... j
5,203
16,004
Argentina
1,382
2/0ther British 1. Africa
237
689
Haiti
J/Other French Africa ...
9,333
Ecuador
Algeria and Tunisia ...
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
j / Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4*
Imports Sept. 20, 1952, to August 29* 1953

Cotton 1-1/8* or more, but less than l-ll/l6a
Imports Feb, 1, 1953t to September 8, 1953

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 20,007,495

45,656,420

Imports
35,639,284

TREASURY DEPARTMENT
Washington

H-242

IMMEDIATE RELEASE
Wednesday< September 9% 19?3
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 llnters) (in pounds)
CjQtogn_ under l~l/8 inches other than rough or harsh under 3/4"
Imports Sept, 20, 1952. to September 8, 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
247,952
2,003,483
1,370,791
8,883,259
618,723

Jfrports

53,664
8,883,259
124,891

475,124
5,203
237
9,333

1,382

Country of Origin
Honduras
Paraguay.
Colombia
Iraq
British East Africa...,
Netherlands E. Indies
Barbados
l/Othsr British W. Indies
Nigeria
2/0ther British W. Africa
2/Otter French Africa....
Algeria and Tunisia....

Established Quota

Imports

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sent. 20, 1952 , to August 29, 1953

Cotton 1-1/8" or more, but less than 1-11/36"
Imports Feb. 1, 1953, to September 8t 195 3

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 20,007,495

45,656,420

Imports
35,639,284

CJl

.. 2 COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WAST?,. LAP WAST?*, SLIVER WASTE, AND ROVING'WASTE, -WHETHTt OR NOT MANUFACTURED OR OTffHWTSE .
ADVAWC7B .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
v^a staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin
-^>j*i*--:

Established
: TOTAL QUOTA
„.

United Kingdom . ^ ,m „ »
4,323,4*7
Canada • % • _* • «• ^. *." *
239,690
227,420
France ,» ^ • • * -* -* •*» ••
69,62?
Br|tls& India i Wm, * -.
Netherjtaattdg ^^ „ ~* *• •
68,240
Switzerland i ,-. • • .. *•
44,388
Belgium „ ... * ^, . * . ^
38,559
Japan .^-va* « ... • .. •*» -*«
3kl9$3$
China . . , . , , • « ,• •
17,322
Egypt *******
a »<ma
8,135
Cuoa „ . . . « . » • i» m*
6,^44
Germany . •. . • . • ,» .<•
76,329
21,263
5,482,509

If included in total imports, column 2«
Prepared in the Bureau of Customs,

:
Total Imports
: Established :
Imports
1/
s Sept. 20, 1952, to $ 33-1/3$ of : Sept^.20, 1952,
s September 8, 1953 : Total Quota : to Sept. 8, 1953
167,354
239,495
13,032
66,229
15,715
12,853
-.
24,618
6,430

1,441*152
75,807
22*747
14*796
12,853
-—
._

25,443
7,088

«»
..-•
24,618
6,430

545,726

1,599,886

539,395

-Am.

-mm

166,747
•

•

rr,032
•

• "

15,715
m>

12,853
"

•

/ — j / **** %

7 "^

IMMEDIATE RELEASE
September % 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 29, 1953,
inclusive, as follows:

products of the
Philippines

Established Quota
Quantity
850,000

Buttons

: Unit of
: Quantity
Gross

Imports as of
August 29, 1953
530,918

Cigars

200,000,000

Number

Coconut Oil

443,000,000

Pound

63,791,464

Cordage

6,000,000

Pound

2,983,626

Rice

1,040,000

pound

2,500

(Refined
Sugars

1,904,000,000

Pound
1,317,903,751

(Unrefined . . . .
Tobacco

2,116,857

6,500,000

Pound

1,770,932

0-7

TREASURY DEPARTMENT
Washington

BLMEDIATE RELEASE
IMmsd&S.;.. September 9. 1953

H-243

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 29, 1953,
inclusive, as follows:

Products of the
Philippines

Established Quota
Quantity

:
:

Unit of
: Imports as of
Quantity : August 29, 1953

•
Buttons ©omaa*a*9*a*a*• •«•»

850,000

Gross

530,918

K> ZLgarS, CC..C.O0O9.O0..OO...

200,000,000

Number

KiOCOnUt U.3JLo.ao.oo.c.Q.ooo.

448,000,000

Pound

63,791,464

uOrdage ...o.ae.«•«•»«•.coo

6,0005000

Pound

2,983,626

KlCe 0CO9.C........9..0040O

1,040,000

Pound

2,500

1,904,000,000

Pound

(Refined *c.......
Sugars
(Unrefined •«...«©
iOPaCCO

<}*****t>m***9*****r>a

2 ,,116,857

1,317,903,751
6,500,000

Pound 1,770,932

y-*i&«^

• <**•

$•".,,<«

As ' / a V
(yyy^y

»,•£#$

'•* *x.

IMMEDIATE RELEASE
September^, 1953
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 August 29, 1953, inclusive, as follows j
Gommodity

Period and Quantity

Unit i
of
:
Quantity:

Imports
as of
Aug. 29, 1953

Ihole milk, fresh or sour . . . Calendar year

3,000,000

Gallon

8,549

Cream Calendar year

1,500,000

Gallon

849

5,000,000

Pound

1,691

33,8b6,287

Pound

Quota Filled

150,000,000
798,900,000

Pound
Pound

114,224,233
84,516,116

Batter

July l6, 1953Oct. 31, 1953

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish . . Calendar year
White or Irish potatoesj
certified seed
other

12 months from
Sept. 15, 1952

12 months from
Cattle, less than 200 lbs. each ApMl 1, 1953

200,000

Head

3,595

Cattle, 700 pounds or more each July 1, 1953(other than dairy cows) . . . Sept. 30, 1953

120,000

Head

12,772

Walnuts Calendar year
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved

5,000,000 Pound Quota Filled
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 in12 months from
eluding peanut butter ) . . . . July 1, 1953
, ._
12 months from
Peanut O H
J u l y 1} 19$3

7,000,000 Pound

5,938,984

4,500,000 Pound

4,107,270

1,709,000

Pound

700

80,000,000 Pound

(1) Imports for consumption at the quota rate are limited to 25,399,716 pounds during the first nine months of the calendar year.

TREASURY DEPARTMENT
Washington

£ 9

BfMEDIATE RELEASE
Wednesday. September 9. 1953

H-244-

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 August 29, 1953, inclusive, as follows:
• 5 Unit : Imports
Commodity

s
i

Period and Quantity

:
of
:
as of
^Quantity :Au&._ 2 & 2231

Whole milk, fresh or sour . * • Calendar year 3,000,000 (Gallon 8,549
Cream ............. Calendar year 1,500,000 Gallon 849
July 16, 1953~
Putter.
a a a a . Oct. 31, 1953
5,000,000

Pound

1,691

fish, freah or frozen, filleted,
etc., cod, haddock, hake,
pollock, cusk, and rosefish# • Calendar year

Pound

U-)
Quota Filled

TWhite or Irish potatoes:
I certified seed, . . . . . . .
other ...........
o

33,866,287

3.2 months from 150,000,000
Sept* 15, 1952 798,900,000

Pound
Pound

114,22/^233
84^516,116

12 months from
Cattle, less than 200 lbs. each April 1, 1953

200,000

Head

3,595

Cattle, 700 pounds or more each July 1, 1953^
(other than dairy cows) . . . Sept* 30, 1953

120,000

Head

12,772

Walnuts ...•••.••••• Calendar year 5,000,000 Pound Quota Filled
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved

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 in12 months from
eluding peanut butter) . . . ; July 1, 1953
12 months from
Peanut Oil
• • • July 1, 1953

7,000,000

Pound

5,938,984

4,500,000

Pound

4,107,270

1,709,000

Pound

700

80,000,000

Pound

(l) Imports for consumption at the quota rate are limited to 25,399,716 pounds du
ing the first nine months of the calendar year.

IMEDIATE RELEASE,

H - -2 ^

, ,

September^, 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?
•
s
t
:
:

«
Country
of
Origin

:
•

TSheat

Hheat flour.} semolina,
crushed or cracked
wheat, and similar
wheat products

Imports
t Established s
Established
Impc>rts
;
May
29, 1953s:
t
Quota
s
Quota
ftMay29, 19 53, to
ft
: to Sept. 8. 19:
Septembe r 8, 1953 :
• (Bushels)
(Pounds)
(Pounds)
(Busishels)
9

795,000
Canada
China
Hungary
Hong'Kong
~
Japan
United Kingdom
100
—
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
2,000
Argentina
Italy
100
Cuba^
1,000
France
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
~
Sweden
Yugoslavia
_.
Norway
-«
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics5
100
Belgium
100
mm

795,000
—
—
—
—
—
—
_
_
—
_
_
—
—
mm

—
—
-*
—
*->
_
_
mm.

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000

5,ooo
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
„.
mm

—

3,815,000
—
mm

—
—
—
mm

_
-*
—
—
—
—
—
—
_
_
—,
,

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Wednesday. September 9. 1953

H-^45

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 Presidents
proclamation of April 13, 1942, 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
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

795,000

Established :
Imports
Imports
Quota
:May 29, 1953 to
KT 29, 1953, to
:Sept, 8, \\9$3
.•September 8. 1953:
(Pounds)
(Bushels)
(Pounds)
795,000

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

3,815,000

795,000

U9000,000

3,815,000

m-9

100
-

100
100
-

100
2,000

100
-

1,000
-

100
—
—
—

1,000

100
100
100
IOC
800.000

- 3-

but shall be exempt from all taxation now or hereafter imposed on the principa

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 dis-

count at which Treasury bills are originally sold by the United States shall b
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 t
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 -

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 incorporat
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 thereo

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

"'""HEW ~ — ~
other immediately available funds or in a like face amount of Treasury bills
maturing September 17, 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 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 from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, uncer 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,

HTREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
.^HL§3ay,_ _Sejptember_ 10, 1953
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 17, 195,3 > in the amount
mm.
$1,500,503,000 , to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series w
dated September 17, 1953 3 and will mature December 17. 1953 3 when the
IlpIJBa

SBM3L

amount Td.ll 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, tyro o'clock p.m., Eastern/tfHMriiawi time, Monday, September 14, 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 t
the price offered must be expressed on the basis of 100, with not more

decimals, e. g.,. 99*92$. Fractions may not be used. It is urged that te

be made on the printed forms and forwarded in the special envelopes whi
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 vdll be received without deposit

incorporated banks and trust companies and from responsible and recogni

dealers in investment securities. Tenders from others must be" accompan

TREASURY DEPARTMENT
Information Service
RELEASE MORNING NEWSPAPERS,
Thursday, September 10, 1953.

IINGTON, D.C

45
H-246

The Treasury Department, by this public notice, Invites tenders
for $1,500,000,000, or thereabouts, of 91-fiay Treasury bills, for
cash and in exchange for Treasury bills maturing September 17,1953*
in-the amount of $1,500,503,000, to be issued on a discount basis*
under competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated September 17, 1953^ and will
mature December 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, September lk9 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 onappllcation 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 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
tenders
decimals)
in of
accordance
accepted with
competitive
the bidsbids.
must be
Settlement
made or completed
for accepted
at the

„ 2 -

Federal Reserve Bank on September 17. 1953. in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing September 17, 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 s.uch, 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 19^1, the
amount of discount at which bills issued hereunder are'' sold shall not
be considered to accrue until such bills'- shall be sold, redeemed or
otherwise disposed of, and such bills are-excluded from consideration
as capital assets. Accordingly,' the owner of Treasury bills (other
than life' insurance companies) issued hereunder need, include.. in hisincome tax return 'only-the difference between the price /paid.for
such bills, whether on original issue or on subsequent purchase, ,
and the amount actually received either aipon 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

• ^ 7
tLhm. tmammy B&p&rtmmt ®m®ammad tm$»$ %y% rmvrtm
mm

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HSartelt:hsv

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, September 9, 1953.

H-247

The Treasury Department announced today that reports
thus far received from Federal Reserve Banks relating to
subscriptions for the exchange offering of the 1-year
2-5/8$ certificates of indebtedness and the 3-1/2 year
2-7/8$ Treasury notes, to be dated September 15, amounted
to $7,705,000,000. This represents about 96-1/2$ of the
$7,986,000,000 maturity.
Subscriptions to the 1-year 2-5/8$ certificates of
indebtedness amounted to $^,717,000,000.

Subscriptions

to the 3-1/2 year 2-7/8$ notes amounted to $2,988,000,000,
which is about 40$ of the total subscriptions.
figures are nearly, but not quite, complete.

These

Final

results of the offering will be announced next Monday.

oOo

STATUTORY

DEBT

TREASURY DEPARTMENT
Fiscal Service

LIMITATION

AS OF A«^t 31, i?53 ""h'"9t°"' S^te?Tr ?53

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obi Rations i
under authority of that Act, and the face amount of obligations guaranteed as to principal and interest Dy tne
United States (except such guaranteed obligations as may be held by the Secretary of the Treasury;, sna.i 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.on 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
$20,207,918,000
Certificates of indebtedness
, 21,655,091,000
Treasury notes
35,468,958,500 § 77,331,967,500
Bonds Treasury
81,232,182,950
Savings (current redemp. value)
57,851,243,327
Deposi tary
44l ,378,000
Armed Forces Leave
Investment series
13,193,500,000
152,718,304,277
Special Funds - 0>. , „ ... . _
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:
Internafl Monetary Fund series .
Total

£0,^7J,<d39,UOO
14,514,401,900

*K>, 98 7,640,900
271,037,912,677
247,143,450

4/, 543,^21
I,430,4l6
1,291,000,000

1,339,973,837
272,625,029,964

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

62,124,236

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

—

62,124,236
1,144,825
63,269,061

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with statement of the Public Debt Atigust 31, 1953
".
(Date)
.
(Daily statement of the United States Treasury,Al3gust 3 1 , 1953)
(bate)
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

iy-$
ID • OAS » DC

272,688,299,025
2,311,700,975

273,205,827,441
63,269,061
273,269,096,502
580,797,477
272,688,299,025

STATUTORY DEBT LIMITATION
/Q
AS OF AUGUST 3 1 . 1953
September $ 1 , 1953"^
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued under authority of that A c t , and the face amount of obligations
guaranteed as to principal and interest b y the United States (except such guaranteed
obligations as may b e held b y the Secretary of the Treasury), "shall not exceed in
the aggregate $275,000,000,000 (Act of June 2 6 , 194-6$ U.S.C., title 3 1 , sec Q 7 5 7 b ) ,
outstanding a t 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 a t the option of the holder shall be considered as its face amount, 11
The following table shows the face amount of obligations outstanding and the
face amount which can still b e issued under this limitation:
Total face amount that m a y b e outstanding a t any one time
Outstanding
$275,000,000,000
Obligations issued under Second Liberty Bond A c t , as amended
Interest-bearing:
Treasury bills•,,...».......,,420,207,918*000
Certificates of indebtedness,,*. 21,655#091,000
Treasury notes
...,.». 35,4.56,958,500 $ 77,331,967,500
Bonds Treasury*
,.,...
.... 81,232,182,950
Savings (current redemp 0 value)57,851,243.327
Depositary
„
«. „ *..
441,378', 000
Armed Forces Leave *«»•»«,.•••
—
Investment series e ..»...*..*» 13.193.500,000 152,718,304-,277
Special Funds Certificates of indebtedness. 26,473,239,000
Treasury notes<,....
• 14.514.API<.900 40,987,640*900
Total interest-bearing ••..... •...«,•....... 271,037,912,677
Matured, interest-ceased.«
<><,
• ••«-••<,••
247,143,450
Bearing no interest:
War savings stamps.......
4.7,543,421
Excess profits tax refund bonds.,
1,430,416
Special notes of the United States:
I n t e r n a l Monetary Fund series 1,291,000.00,0
1^339.973.837
Total
........,„..,....,.„»*....„. 272,625,029,964
Guaranteed obligations (not held b y Treasury):
Interest-bearing:
Debentures: F.H.A
62,124,236
Demand obligations: C .C .C. «•».•
—
62,124,236
Matured, interest-ceased..........................
1.144.825
63,269,061
Grand total outstanding
,
272.688.299.025
Balance face amount of obligations issuable under above authority,•.•
2,311,700,975
Reconcilement with Statement of the Public Debt - August 31, 1953
(Daily Statement of the United States Treasury, August 3 1 , 1 9 5 3 )
Outstanding Total gross public debt
273,205,827,441
H-248
Deduct
Total
Guaranteed
-gross
debt
otherobligations
limitation
public
outstanding
debt not
and
public
owned
guaranteed
debt
by the
obligations
obligations
Treasury not subject
., to
272,6C8,29V,025
273,269,096,502
580.797.477
63.269.06l

For Release at 12 Noon
Friday9 September 11, 1953

jf
SV-oC

O//Q
' /

Treasury Secretary Humphrey today appointed Clarence E. Banter of
Hew York, lew York, as the Treasury representative to the new United
States Mission to the North Atlantic Treaty Organization and European
Regional Organizations located in Paris.
Secretary Humphrey administered the oath of office to Mr. Binter
at noon today at the Shore ham Hotel where the Secretary is attending the
annual meeting of the International Monetary Fund and the International
Bank.
Mr. Hunter, who will serve as financial advisor to Ambassador Highes,
the chief of the Mission, will have the rank of Minister.
Mr. Hunter has had previous governmental experience as Chief of the
Mutual Security Agency*s Special Mission to the Netherlands, a post he
held from 1949 until Ms resignation in June of this year. He had planned
to leave the Mission earlier in the year, but remained for several

additional months because of the emergency created by the disastrous floods
His home is presently in Montclair, New Jersey, but he is a native of
Wellsburg, New York. Mr. Hunter entered the banking business in 1919, and
prior to his government service was vice-president in charge of foreign
business of The New York Trust Company, N. Ya
1ft*. Hunter is a Director of the Council on Foreign Relations, New York,
and is a former trustee and member emeritus of the National Industrial
Conference Board, New York. He is a Knight of the Grand Cross of the Order
of Orange-Nassau, an honor conferred by the Government of the Netherlands,
and Commander of the Order of the Lion of Finland.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

51
FOR RELEASE AT 12 NOON
Friday, September 11, 1953

H-249

Treasury Secretary Humphrey today appointed clarence E.
Hunter of New York, New York, as the Treasury representative
to the new United States Mission to the North Atlantic Treaty
Organization and European Regional Organizations located in
Paris.
Secretary Humphrey administered the oath of office to
Mr. Hunter at noon today at the Shoreham Hotel where the
Secretary is attending the annual meeting of the International
Monetary Fund and the International Bank.
Mr. Hamter, who will serve as financial advisor to
Ambassador Hughes, the chief of the^ Mission, will have the
rank of Minister.
Mr. Hunter has had previous governmental experience as
Chief of the Mutual Security Agency's Special Mission to the
Netherlands, a post he held from 19^-9 until his resignation
in June of this year. He had planned to leave the Mission
earlier In the year, but remained for several additional
months because of the emergency created by the disastrous
floods. His home is presently in Montclair, New Jersey, but
he is a native of Wellsburg, New York. Mr. Hunter entered
the banking business in 1919, and prior to his government
service was vice-president in charge of foreign business of
The New York Trust Company, New York.
Mr. Hunter is a Director of the Council on Foreign
Relations, New York, and Is a former trustee and member
emeritus of the National Industrial Conference Board, New
York. He is a Knight of the Grand Cross of the Order of
Orange-Nassau, an honor conferred by the Government of the
Netherlands, and Commander of the Order of the Lion of Finland.

oOo

Dr. Vaughn H. Mitchell, Dorothy Mitchell, San Francisco, California
Dr. Mitchell, a physician and surgeon, and his wife, Dorothy
Mitchell, were found guilty of preparing a false income tax return for

I9I1.7, aiding and abetting each other in the preparation of a false return,
and conspiracy to conceal income. Dr. Mitchell •was fined ^25,000 and
sentenced to 3 concurrent 1-year prison terms, and placed on $ years*
probation. Mrs. Mitchell was fined 410,000. In 19k9 Dr. Mitchell was
acquitted of charges of evading his income taxes for 19k2 through 19k6,
at which tiiae the court expressed the opinion that the case was one of
the most flagrant violations of the income tax laws that had ever come
to its attention.

Chin i±m How, Oakland, California
Mow, using fifteen aliases, was engaged in real estate, merchandising, and the operation of a large Chinese gambling casino. He was found
guilty of income tax evasion and sentenced to serve 10 years in prison
and pay fines totalling C>20,000 plus $6,000 court costs. In 19^3 be
was fined -110,000 and sentenced to serve 1 year and 1 day in prison on
another income tax evasion charge.
Fred M. Saigh, St. Louis, Missouri
Saigh, owner of the St. Louis Cardinals baseball team was sentenced
to serve 1$ months imprisonment and fined a total of $15,000 for attempting to evade his income taxes for 19h7 and 19^9.
Dennis vf. Delaney, Boston, Massachusetts
Mr. Delaney, former Collector of Internal Revenue at Boston, was
sentenced to serve 6 months in jail following his plea of guilty to
charges of income tax evasion. The sentence was to run concurrently
with that imposed after conviction on bribery charges.
Lavonne and Joseph GUlespie, Pes Moines, Iowa
Lavonne Gillespie, who has been arrested for unlawful sale of liquor,
possession of gaming devices, lewdness, larcency, and the operation of a
brothel and her former husband, Joseph Gillespie, who is alleged to be

a gambler, were sentenced to prison for 2-1/2 years and 1 year, respectively,
as a result of pleas to income tax violation charges. Mrs. Gillespie
once complained that the internal revenue drive on racketeers had driven
prostitution to its lowest ebb in history.

Sam F. Termini, Hillsborough, California
Termini, also known as Sam Murray, Is a former employee of the
late Kansas City underworld leader, Charles Binaggio, and in recent
years has operated gambling enterprises in the vicinity of San Mateo,
California. He was convicted of income tax evasion and sentenced to
serve 3 years in addition to fines totalling £20,000.
Bert Hollinger, Le Mars, Iowa
Bollinger, an extortionist and former bootlegger, failed to report
as income the funds which he received from an elderly widow by selling
her glass gems as diamonds. He was found guilty of evading his 19^8
income taxes and was sentenced to the penitentiary for $ years.
Fred H. Herskovitz and Ellas Berger, Long Beach, New York
Herskovitz and his son-in-law, Berger, were convicted of charges of
wilful assistance in the preparation and presentation of fraudulent
income tax returns for other persons. More than £,000 returns were prepared by the defendants and each return understated the net income to
the extent that additional taxes of ^901,982.70 were assessed on thdp.
Herskovitz was sentenced to serve 3 years in prison and fined .15,000.
Berger was sentenced to serve 1 year and 1 day.
Gordon L Sadur, a'ashington, D. C.
Abraham Sekulow, Jack Sekulow, Baltimore, Maryland
The Sekulow brothers, naturalized citizens of Russian birth, operate
millinery stores selling popular priced hats. Sadur, a tax specialist,
was found guilty of counselling the filling of the Sekulow returns for
19h$ and 19k6. A jury also convicted the Sekulow brothers on charges of
filing fraudulent returns. The Sekulow brothers were eachfined £10,000
and costs and sent to prison for 6 months. Sadur was sentenced to serve
2 years in prison and fined '»?£,000 and costs.

Charles Blanda, Ton Incerto, Thomas Hovenic, Pueblo, Colorado
Blanda is reputed to be the head of the Southern Colorado Mafia.
Incerto is his alleged enforcer, and Hovenic is a slot machine owner
and operator. Following guilty pleas on charges involving their income
taxes, Blanda and Incerto were each fined §5,000 and sentenced to serve
1; years in prison. Hovenic was fined 12,500 and sentenced to a 2-year
term.
C. Roy Gaines, Fort Worth, Texas
Mr. Gaines entered a plea of guilty to charges of attempted evasion
of his own income taxes, those of his wife, and also the corporate income
taxes of his automobile agency. He was fined a total of a70,000.
Samuel N. Savitt, Rochester, New York
Savitt, who fled to Europe while under investigation for income tax
irregularities and had served in the French Foreign Legion In Indo-China
before being apprehended and extradited, pleaded guilty to income tax
evasion and was sentenced to serve 2 years in prison to run concurrently
with a 3-year sentence imposed for forging a United States Government check.
Salvatore Sollazzo, New York, New York
Sollazzo, a resident alien, is currently serving an 8 to 16 years
sentence for bribing college basketball players. In 1933 he was sentenced
to serve from 1-1/2 to 1$ years imprisonment for grand larcency and armed
robbery. In March 1953* he was sentenced to 1 year and 1 day and fined
#2,000 on income tax evasion charges to which he pleaded guilty.

filed pleas of guilty or nolo contendere. Many of the cases still remain
to be tried. Approximately 98 percent of the cases have resulted in
convictions or pleas of guilty or nolo contendere*
In the past fiscal year regular tax fraud cases not involving
racketeers, continued to play the leading role in Intelligence operations
as to number of such cases investigated, and in the amount of additional
taxes and penalties recommended, the Commissioner explained*
During the fiscal year 1,856 investigations involving regular fraud
cases were completecLaccording to Commissioner Andrews. In these cases,
assessments of additional taxes and penalties recommended by Special
Agents amounted to $105,698,98°•28#

A total of 522 cases were referred

to the District Enforcement Counsels1 offices with a recommendation for
prosecution, and U89 cases were there aften^gaaSfe referred to the Department of Justice with a similar recommendation. A total of k7$ of these
cases were referred to United States Attorneys for trial and k38 persons
were found guilty or entered pleas of guilty or nolo contendere.
Indictments were returned during the year against 601 persons and
many of these individuals have not as yet been brought to trial. Of the
criminal cases developed by Special Agents assigned to the Regular Tax
Fraud Program, approximately 95 percent of those referred to the United
States Attorneys for trial resulted in convictions, pleas of guilty, or
pleas of nolo contendere.
Among the 88U taxpayers who were convicted and sentenced during the
fiscal year were the followingt

Additional taxes

$50,376,713#63

Fraud penalties

17,269,7k9*l5

Other penalties

UJ970*763»3U

Total additional taxes and penalties

$72,617,226.12

«ln addition, there were outstanding at the end of the fiscal year
jeopardy assessments in 21*6 cases, totalling $35>H8,5ru58tt, the
Commissioner added. ^Jeopardy assessments are imposed to protect the
interests of the Government in those instances in which there is reason
to believe that the taxpayer may seek to avoid payment by disposing of
or secreting his assets, or that the ability of the Government to collect
the taxes due may be endangered.
w

Cases on 281 individuals were referred to the Department of Justice

during the year for criminal prosecution. Indictments were returned
against 223 persons and 163 were convicted. Of the criminal cases
forwarded to the United States Attorneys for trial, approximately 95 percent resulted in either convictions, pleas of guilty, or pleas of nolo
contendere.n
During the fiscal year, 19J6U wagering occupational tax stamp applications were filed, 9,539 by principals and 10,225 by agents, the
Commissioner stated. The stamp tax yielded $682,928.19 in revenue, while
the ten percent excise tax on gross wagers produced $9,57Q,U35«38, or
total wagering tax receipts of $10,253,361*.07*
The cases of 1*57 individuals were referred to United States Attorneys
for criminal prosecution. Indictments were returned or criminal informations filed against U35 persons, 283 of whom have been convicted or have

95 percent of the cases presented for trial and resulted in prison sentences
totalling 3U9 man years and fines aggregating $3,026,538.00. Fraud^
penalty but no prosecution ftas recommended in 1,23b cases; 196 resulted in
additional deficiencies but no fraud penalties5 lU8 were closed without
change; and U39 were found not to warrant a fraud investigation*
An analysis of the occupations of the taxpayers whose prosecution
was recommended for alleged tax fraud showed that $6<.7p&ot them were
classified as racketeers, gamblers, numbers operators, etc.
tt

Historically, the investigation of income tax evasion by criminals

and racketeers has been a notable part of the work of Special Agents of
the Internal Revenue Service11, Commissioner Andrews said. "Many notorious
criminals of national disrepute have beei/fcaa 11 1 IKIIIII imprisoned as a
result of tax cases. During the past fiscal year the Racketeer Program
stabilized on a level of high efficiency and Is being continued as an
Integral part of normal Intelligence operations. In each Intelligence
Division in the Internal Revenue Districts there are skilled and
experienced Special Agents assigned to ferret out the facts concerning the
financial affairs of members of the underworld. These Agents are assisted
in their task by selected Examining and Collection Officers*

Members of

the Racket Squads identify possible tax evaders among criminal groups and
then apply the extra effort required in such cases to develop evidence to
support criminal sanctions or civil penalties.11
During the fiseal year 15*872 racketeer cases were closed, with
deficiencies in 7,2l& of such cases. Assessment of additional taxes and
penalties was recommended as follows:

Treasury Department Release

Commissioner of Internal Revenue T. Coleman Andrews today reported
to Secretary of the Treasury G. M. Humphrey that Special Internal Revenue
Agents completed more than U6,Q00 investigations during the fiscal year
ended June 30, 1953.
These U6,llli Investigations included 37,322 involving alleged violations of Internal revenue laws of which 3,296 involved suspected
criminal fraud, 23,857 were preliminary investigations, and 10,169
special or collateral investigations. The investigations resulted in
recommendations for the assessment of additional taxes and penalties
totalling $178,316,215.1*0.
In addition, there were 8,728 investigations of applicants seeking
enrollment to practice before the Treasury Department and 6k investigations involving charges against enrollees. As of June 30, 1953, there
were 1,085 Special Agents and 132 Acting Special Agents. Examining and
Collection Officers are assigned locally on a temporary basis to assist
the Special Agents when needed.
An analysis of the 3,296 investigations of suspected criminal fraud
shows that l-,276 were referred to the Regional Counsels1 offices with
recommendation for criminal prosecution. Convictions were obtained in

TREASURY

DEPARTMFMT

Information Service
RELEASE SUNDAY NEWSPAPERS
September 13> 1953

WASHINGTON, D.C.

60
H-250

Commissioner of Internal Revenue T. Coleman Andrews today
reported to Secretary G. M. Humphrey that Special Internal
Revenue Agents completed more than 46,000 investigations during
the fiscal year ended June 30, 1953.
These 46,114 investigations included 37,322 involving
alleged violations of internal revenue laws of which 3,296
involved suspected criminal fraud, 23,857 viere preliminary
investigations, and 10,169 special or collateral investigations.
The investigations resulted in recommendations for the assessment of additional taxes and penalties totalling $178,316,215.40.
In addition, there were 8,728 investigations of applicants
seeking enrollment to practice before the Treasury Department
and 64 investigations Involving charges against enrollees. As
of June 30, 1953* there were 1,085 Special Agents and 132 Acting
Special Agents. Examining and Collection Officers are assigned
locally on a temporary basis to assist the Special Agents when
needed.
An analysis of the 3*296 investigations of suspected criminal fraud shows that 1,276 were referred to the Regional Counsels'
offices with recommendation for criminal prosecution. Convictions
were obtained in 95 percent of the cases presented for trial and
resulted in prison sentences totalling 349 man years and fines
aggregating $3,026,538-00. Fraud penalty but no prosecution was
recommended in 1,234 cases; 196 resulted in additional deficiencies but no fraud penalties; 148 were closed without change; and
439 were found not to warrant a fraud investigation.
An analysis of the occupations of the taxpayers whose prosecution was recommended for alleged tax fraud showed that 56.7$
of them were classified as racketeers, gamblers, numbers operators,
etc.
"Historically, the investigation of income tax evasion by
criminals and racketeers has been a notable part of the work of
Special Agents of the internal Revenue Service", Commissioner
Andrews said. "Many notorious criminals of national disrepute
have been imprisoned as a result of tax cases. During the past
fiscal year the Racketeer Program stabilized on a level of high
efficiency and is being continued as an integral part of normal
Intelligence
operations,
each
intelligence
Division
in the
financial
Special
InternalAgents
Revenue
affairs
assigned
Districts
of members
toin
ferret
there
of the
are
out
underworld.
skilled
the facts
and
concerning
These
experienced
Agents
the

- 2-

C ~L

are assisted in their task by selected Examining and Collection
Officers. Members of the Racket Squads identify possible tax
evaders among criminal groups and then apply the extra effort
required in such cases to develop evidence to support criminal
sanctions or civil penalties."
During the fiscal year 15,872 racketeer cases viere closed,
with deficiencies in 7*241 of such cases. Assessment of additional taxes and penalties was recommended as follows:
Additional taxes $50,376,713.63
Fraud penalties
17,269*749.15
Other penalties
4,970*763.34
Total additional taxes and penalties $72,617,226.12
"In addition, there were outstanding at the end of the fiscal
year jeopardy assessments in 246 cases, totalling $35,118,511.58",
the Commissioner added. "Jeopardy assessments are imposed to protect the interests of the Government in those instances in which
there is reason to believe that the taxpayer may seek to avoid
payment by disposing of or secreting his assets, or that the ability
of the Government to collect the taxes due may be endangered.
"Cases on 28.1 individuals were referred to the Department of
Justice during the year for criminal prosecution. Indictments
were returned against 223 persons and 163 were convicted. Of the
criminal cases forwarded to the United States Attorneys for trial,
approximately 95 percent resulted in either convictions, pleas of
guilty, or pleas of nolo contendere."
During the fiscal year, 19*764 wagering occupational tax
stamp applications were filed, 9,539 by principals and 10,225 by
agents, the Commissioner stated. The stamp tax yielded $682,928.19
in revenue, while the ten percent excise tax on gross wagers produced $9*570,435-38, or total wagering tax receipts of $10,253*364.07
The cases of 457 individuals were referred to United States
Attorneys for criminal prosecution. Indictments were returned or
criminal informations filed against 435 persons, 283 of whom have
been convicted or have filed pleas of guilty or nolo contendere.
Many of the cases still remain to be tried. Approximately 98
percent have resulted in convictions or pleas of guilty or nolo
contendere.
In the past fiscal year regular tax fraud cases not involving
racketeers, continued to play the leading role in Intelligence
operations as to number of such cases investigated, and in the
amount of additional taxes and penalties recommended, the
Commissioner explained.

- 3-

During the fiscal year 1,856 investigations involving regular
fraud cases were completed, according to Commissioner Andrews. In
these cases, assessments of additional taxes and penalties recommended by Special Agents amounted to $105,698,989.28. A total of
522 cases were referred to the District Enforcement Counsels' offices
with a recommendation for prosecution, and 489 cases were thereafter referred to the Department of Justice with a similar recommendation. A total of 475 of these cases were referred to United
States Attorneys for trial and 438 persons were found guilty or
entered pleas of guilty or nolo contendere.
Indictments were returned during the year against 601 persons
and many of these individuals have not as yet been brought to trial.
Of the criminal cases developed by Special Agents assigned to the
Regular Tax Fraud Program, approximately 95 percent of those referred
to the United States Attorneys for trial resulted in convictions,
pleas of guilty, or pleas of nolo contendere.
Among the 884 taxpayers who were convicted and sentenced during
the fiscal year were the following:
Charles Blanda, Tom Incerto, Thomas Hovenic, pueblo, Colorado
Blanda Is reputed to be the head of the Southern Colorado
Mafia. Incerto is his alleged enforcer, and Hovenic is a slot
machine owner and operator. Following guilty pleas on charges
involving their income taxes, Blanda and Incerto were each fined
$5*000 and sentenced to serve 4 years in prison. Hovenic was
fined $2,500 and sentenced to a 2-year term.
C. Roy Gaines, Fort Worth, Texas
Mr. Gaines entered a plea of guilty to charges of attempted
evasion of his own income taxes, those of his 6wife, and also the
corporate income taxes of his automobile agency. He was fined a
total of $70,000.
Samuel N. Savitt, Rochester, New York
Savitt, who 1'ied to Europe while under investigation for
income tax irregularities and had served in the French Foreign
Legion in Indo-China before being apprehended and extradited,
pleaded guilty to income tax evasion and was sentenced to serve
2 years in prison to run concurrently with a 3-year sentence
imposed for forging a United States Government check.
Salvatore Sollazzo, New York, New York
Sollazzo, a resident alien, is currently serving an 8 to 16
years sentence for bribing college basketball players. In 1933 he
was sentenced to serve from 7i to 15 years imprisonment for grand
larcency and armed robbery, in March 1953* he was sentenced to 1
year and 1 day and fined $2,000 on income tax evasion charges to
which he pleaded guilty.

- 4-

Sam F. Termini, Hillsborough, California
Termini, also known as Sam Murray, is a former employee of
the late Kansas City underworld leader, Charles Binaggio, and in
recent years has operated gambling enterprises in the vicinity
of San Mateo, California. He was convicted of income tax evasion
and sentenced to serve 3 years in addition to fines totalling
$20,000.
Bert Rollinger, Le Mars, Iowa
Rollinger, an extortionist and former bootlegger, failed to
report as income the funds which he received from an elderly widow
by selling her glass gems as diamonds. He was found guilty of
evading his 1948 income taxes and was sentenced to the penitentiary for five years.
Fred H. Herskovitz and Ellas Berger, Long Beach, New York
Herskovitz and his son-in-law, Berger, were convicted of
charges of wilful assistance in the preparation and presentation
of fraudulent income tax returns for other persons. More than
5,000 returns were prepared by the defendants and each return
understated the net income to the extent that additional taxes
of $901,982.70 were assessed on them. Herskovitz was sentenced
to serve three years in prison and fined $15,000. Berger was
sentenced to serve 1 year and 1 day.
Gordon L. Sadur, Washington, D. C.
Abraham Sekulow, Jack Sekulow, Baltimore, Maryland
The Sekulow brothers, naturalized citizens of Russian birth,
operate millinery stores selling popular priced hats. Sadur, a
tax specialist, was found guilty of counselling the filling of
the Sekulow returns for 1945 and 1946. A jury also convicted
the Sekulow brothers on charges of filing fraudulent returns.
The Sekulow brothers were each fined $10,000 and costs and sent
to prison for 6 months. Sadur was sentenced to serve 2 years in
prison and fined $5,000 and costs.
Chin Lim Mow, Oakland, California
Mow, using fifteen aliases, was engaged in real estate, merchandising, and the operation of a large Chinese gambling casino.
He was found guilty of income tax evasion and sentenced to serve
10 years in prison and pay fines totalling $20,000 plus $6,000
court costs. In 1943 he was fined $10,000 and sentenced to serve
1 year and 1 day in prison on another income tax evasion charge.
Fred M. Saigh, St. Louis, Missouri
Saigh, owner or the St. Louis Cardinals baseball team was
sentenced to serve 15 months imprisonment and fined a total of
$15,000 for attempting to evade his income taxes for 1§47 and

1949.

- 5-

Dennis W. Delaney, Boston, Massachusetts
Mr. Delaney, former Collector of Internal Revenue at Boston,
was sentenced to serve 6 months in jail following his plea of
guilty to charges of income tax evasion. The sentence was to run
concurrently with that imposed after conviction on bribery charges.
Lavonne and Joseph Gillespie, pes Moines, Iowa
Lavonne Gillespie, who has been arrested "for unlawful sale
of liquor, possession of gaming devices, lewdness, larcency, and
the operation of a brothel and her former husband, Joseph Gillespie,
who is alleged to be a gambler, were sentenced to prison for 2{\
years and 1 year, respectively, as a result of pleas to income tax
violation charges. Mrs. Gillespie once complained that the internal
revenue drive on racketeers had driven prostitution to its lowest
ebb in history.
Dr. Vaughn H. Mitchell, Dorothy Mitchell, San Francisco, Californi
Dr. Mitchell, a physician and surgeon, and his wife, Dorothy
Mitchell, were found guilty of preparing a false income tax return
for 1947, aiding and abetting each other in the preparation of a
false return, and conspiracy to conceal income. Dr. Mitchell was
fined $25*000 and sentenced to 3 concurrent 1-year prison terms,
and placed on 5 years' probation. Mrs. Mitchell was fined $10,000.
In 1949 Dr. Mitchell was acquitted of charges of evading his income
taxes for 1942 through 1946, at itfhich time the court expressed the
opinion that the case was one of the most flagrant violations of
the income tax laws that had ever come to its attention.

0O0

4^af^-f^tan^^e^W^-^

Sales of Series E and H Savings Bonds during the

first eight months of 1953 were $2,946,924,000, the Treasury announced
today. Redemptions of matured E Bonds and unmatured Series Sand H Bonds
for the same period were $2,758,846,000. Casti sales of i and H Bonds

exceeded redemptions of those series (matured and unmatured) by $188,077,000.
Sales of Series E and H Bonds during the first eight months of 1953
were up 24 per cent over the $2,369,953,000 sales during the same period
of 1952. Total matured and unmatured redemptions of those series in
1953 were 2 per cent below the $2,825,401,000 total during the first
eight months of 1952.
Sales of Series E and H Bonds in August were $346,267,000. That was
an increase of 12 per cent over the $309,073,000 sold during August 1952.
Total redemptions of matured and unmatured Series E and H Bonds
during August 1953 were $330,899,000. That was 4 per cent more than total
redemptions in August 1952 of $318,685,000. This increase reflects the
heavy Savings Bonds purchases of ten years ago as matured redemptions are
increasing as the War Loan sales reach their maturity dates.
Seventy-five per cent of matured Series E Savings Bonds continue to
be held by the owners under the optional extension plan. That percentage
of retained matured Series E bonds has held steadily for over two years.

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

61
RELEASE A.M. NEWSPAPERS
Monday, September 14, 1953

H-251

Sales of Series E and H Savings Bonds during the
first eight months of 1953 were $2,946,924,000, the
Treasury announced today. Redemptions of matured E
Bonds and unmatured Series E and H Bonds for the same
period were $2,758,846,000. Cash sales of E and H
Bonds exceeded redemptions of those series (matured
and unmatured) by $188,077,000.
Sales of Series E and H Bonds during the first
eight months of 1953 were up 24 per cent over the
$2,369,953*000 sales during the same period of 1952.
Total matured and unmatured redemptions of those series
In 1953 were 2 per cent below the $2,825,401,000 total
during the first eight months of 1952.
Sales of Series E and H Bonds in August were
$346,267,000. That was an increase of 12 per cent
over the $309,073*000 sold during August 1952.
Total redemptions of matured and unmataired Series
E and H Bonds during August 1953 were $330,899,000.
That was 4 per cent more than total redemptions in
August 1952 of $318,685,000. This increase reflects
the heavy Savings Bonds purchases of ten years ago as
matured redemptions are increasing as the War Loan
sales reach their maturity dates.
Seventy-five per cent of matured Series E Savings
Bonds continue to be held by the owners under the optional extension plan. That percentage of retained
matured Series E bonds has held steadily for over two
years.

0O0

SEP 3 13SS

mm
Mt fmmhmm
(Sgd) Charles X. Bramian

m*m

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, September 15* 1953.

H-252

During the month of August, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted in net purchases of $377,400,
Secretary Humphrey announced today.

oOo

Tuesday :.gr>.e,,ber 1>, 195-3.

ffee treasury Department announced laat araiiiiii that tte tanker® for 11,500,000,000
or t^reab@mts, c^r fl-4ay frtaswy bill* to b* datait SapMfewr IT and to aaturo
Beosaiber 17, 19$3, mhlah w«re offered on Sef^asOsei* 10, were opened at tn« Federal
Reserve Banks on September Ik*
the details of tbia issue are as fellow®;

Total applied tar • t8,55S,>.feJ»M0
total aoeeptei
- ls5©G#lSI*f00© (inoXiiiaa |33®tf0*00© eatarei on a
non-eo&pstitive basis and accepted in
iuH mm the average priee mhemn balm)
Average pria*
- 99.$>5/ le^&nCUmt rate of diaeeiiRt approx. Xafitt par emm j
Range of aooeistei eoapetiiiv© bide t
llgb

- f*,5fe0 m&wOmmt

rata mi dUmawmt approx. l.Sfffi per amm

(96 percent of th© aitomi bid for at the low prte* mis accepts)
Federal Reserve
District
.Boston
lew fork
Philadelphia
Cleveland
Richmond.
Atlanta
Chicago
St* Louis
Minneapolis
Kansas 0 i %
Dallas
San Francisco
total

total

.m***w,;, . .
f

*2 t DMQ»
J0,2#,OQO
?f,322,000
26 f f^,000

S0ffftf000
a?6f#^*OO0

$b»a§a,o©o
2k**?l*000

6?#6ff,©0©
58,371,000
U3,0i9«OOO
#2*£&,6»3»0QD

total
Accepted

l£,633,GQO

MQ^tSMQQ
f3,tWf^©
25,683,000

3M3$*W
tfhlll^OOD

JMoMW

15,^,00©

tibigxpoa'
ItftliS&m

,. *ltH»t*.>•L,$oo,iaMop

;

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday. September 15, 1953.

H-253

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated September 17 and to mature December 17, 1953, which were
offered on September 10, were opened at the Federal Reserve Banks on
September 14.
The details of this issue are as follows:
Total applied for - $2,555,693,000
Total accepted
- 1,500,184,000 (includes $330,955,000
entered on a non-competitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.505/ Equivalent rate of discount approx.
Range of accepted competitive bids: 1.957% per annum
High

- 99.520 Equivalent rate of discount approx.
1.899$ per annum
Low
- 99.505 Equivalent rate of discount approx.
1.958$ per annum
(98 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

$
42,338,000
1,723,790,000
38,255,000
79,322,000
26,242,000
50,952,000
276,620,000
54,882,000
24,273,000
67,629,000
58,371,000
113,019,000

$2,555,693,000

$1,500,184,000

0O0

19,633,000
980,256,000
23,240,000
63,257,000
25,883,000
36,035,000
153,988,000
34,204,000
15,248,000
44,853,000
46,435,000
57,152,000

IMMEDIATE EELEASE,
Monday, September 14, 1953*
the Treasury Uepartwent today announced the subscription and allotment figures with respect to the current offering of 2-5/8 percent Treasury
Certificates of Indebtedness of Series E-1954 and 2-7/8 percent Treasury
Hotes of Series A-1957, to be dated September 1$9 open to the holders of
2 percent Treasury Bond® of 1951-53, maturing September 15.
Subscriptions and allotments were divided ainong the several Federal
Reserve Districts and the Treasury as follows?
Series 1-1954
Certificates

Series A-1957
Hotes

Boston | 181,005,000 | 118,673,000
Nf*Xork
2,773,604,000
Philadelphia
126,384,000
Cleveland
155,629,000
Richmond
72,324,000
Atlanta
102,272,000
Cblcago
505,418,000
St. I^rais
137,130,000
Minneapolis
86,692,000
Kansas City
127,653,000
®*lla&
105,212,000
San Francisco
342,492,000
6,691,000

1,249,457,000
83,913,000
159,343,000
65,498,000
62,437,000
596,303,000
130,249,000
75,641,000
128,455,000
60,140,000
267,467,000
2,671.000

District

T0TAI 14,722,506,000 #3,000,247,000

ELKilby:afh
9-14-53

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C

IMMEDIATE RELEASE,
Monday, September 14, 1953.

H-254

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 E-1954 and
2-7/8 percent Treasury Notes of Series A-1957, to be dated
September 15, open to the holders of 2 percent Treasury Bonds of
1951-53, maturing September 15.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Series E-1954
Federal Reserve
Series A-1957
District
Certificates
Notes
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL

$* 181,005,000
2,773,604,000
126,384,000
155,629,000
72,324,000
102,272,000
505,418,000
137,130,000
86,692,000
127,653,000
105,212,000
342,492,000
6,691,000

$ 118,673,000
1,249,457,000
83,913,000
159,343,000
65,498,000
62,437,000
596,303,000
130,249,000
75,641,000
128,455,000
60,140,000
267,467,000
2,671,000

$4,722,506,000

$3,000,247,000

0O0

-k-

mmt

mi mmpetltlm

enterprise. Iter scale of taxation %m already too high

and to maintain a sound and honest dollar we mmt bring mr

expenditures

end revenues into bailee, lie srast continue to exmtim most carefully every
proposal t@ spend mammy9 whether it is a proposal for spending at hmmm or
abroad. Hie maintenance of our credit and of a sound dollar is »ost isportaat
for foreign countries as *ell as it is for us here at hose. Prosperity is
the ft&wd States is aaaaatial for prosperity In the mat mi the vorid, and
it is not only our duty bet it i® for the best interests of everyone concerned
that we kaep that fact always uppermost in our sinds.
We mm mil indebted to Senator Capehart and M a colleagues on the Sonata
Banking and Currency mmmtttm

for undertaking th© exploration of this very

iieportant fiola. It has bean a privilege to have this opportunity to m a t
with you gentlemn mad te leave vritii you these tern thoughts.

•3mmem the sad of the war, mm? ammtrtaa abroad ham hmem looking
to the Unitsd status for assistance in fiaaneinf thmXr economic daveloomant. In mmmy instance* foreign emmtrlee have ^referred to obtain thalr
aaaiataooa trem m^rmmmtml

amreema

1!*i» raiaas %w vamy wefttmm quaatloi*

of to what extent this oractie* should mm tmtlemed in the tmtvam and hew it
can boat ha pemvUed., to whatever extent it aeem heat to carry it on.
Sana countries have taken only Usltftd mtmem tm premldm the atailtim*
wader mhlah priwta la^tstssant will mlmmtartlj move abroad on the tresis «f
ftsffwal tscemcmtc eensicter&lione. More attention must bo paid abroad te
making inveatawnt attractive to foreign capital. The countries which

fc^nw

h&ve mama the greatest stridas in thoir dowalerient owsr tha years ara
the countries vhich ham r>rovid*d tlm conciition^ una*r which rrimt*? capital
was noat willing to invest, the Iteited States and Canada ara two of the
moot conspicuous emmpXmm mi cowntrias vhich have in the laat eaatary movad
from the state of underdeveloped countries t© strong industrial countries
in a position to exoort capital. But X remind you that our aeveloysserit and
Canadian dwalepMftttt was cm the basis of prtirmta invsatastiit voluntarily made.
Countries willfoebetter off if thalr capital requirement can be met by
sacuring primt© tmweetmmmt9tfhkehbring® with It not only money brat taohi&cal
know-how, established trade connections, md business aiioarieitc®.
I cannot forato'H what yon gentleman are going to suggest as proper
pillar for th© Itoilad Stataa (k,mrmmnt 'to mpmlj in the field at foraifn
iawateamt md 1 m

mre them will ba different viawa. I do not wisti

to prejudge the co^closdon which may bo reached either by tills advisory
group or by Saaator Capahart1® Gojatlttaa. However, ms Secretary of tha
Treasurer X da want to laaks clear to e^aryon© that the Goveraiaent mmt
question aoth its right and its tlmmtaX

ability to continue to uaa tax*

-2ebfning years la a subject which you gentlemen will be thinking about,
la this conneetlori we suggest that tha two institutions should co»ple»ent
eaeh other and overlap in their reapeetive activities to tha laast possible
extent, fo aoeo^Hali. this result it seems to, w that tha names of tha
institution® are of real stgaifioanee and may be a guide to their respective
fields of activity, ^fee International Bank for Eeoonatraction and Development
implies loans of a capita! nature- of long duration andV.fejr construction and
develop^nt purposes, the•Eapcrt-Iaoort Sank implies tha aid to e^ort® and
imports and to current trade W laans of much more rapid turnover and shorter
duration. Indeed, tha whole set-tip for eacfe Institution is mich that if confined to their respective fields mrnoh more definitely than baa bean th©
practice of th® oast a broader combined service cm be given and- competition
between them practically eliminated.

;

/'^" ,

—

•• t

Last week, as you may know, Senator Capehart and some of the rest of us
yA
attended the Annual Heating of tha International Honetary ^nnd amd the international Bank for Baeoaatsraetion.-. and £e**XopauRt., One-at the sessions was
devoted to a very interesting panal discussion on the role of private international investment in underdeveloped countries * Me found it very enlightening
to hear the views of outstanding repre sent stives from soma of the capital exporting countries as-wall as from countries seeking cayltal such as Egypt,
India and Mexico. There'is an obvion© and important role for private enterprise to play in foreign^ investment. In fact, I hope; that anuch larger
and snore important role 'Has abend for tha profitable inve&tuant of private
capital and technology abroad. These discussions w i H be published and
avallacle to you. I reeowrtend them to you for study.

Statement Pv*pAF#dMSm^ •&%%**?& by^Secretary Humphrey at Senator
Capahart1 s 4dvisory Qrou? Heating on September 35th i;tO .' .HJ 4 y\,\.

Senator Capahart, Gentlemen t

Me are all indebted to Senator Capahart for bringing together such an
outstanding grouts of businessmen, labor leaders and farm leaders. I want
to express our appreciation for the interest yon have shown by coming here.
X know that we will all benefit, thefcoverniaentia indeed anxious to have
the views of representative citisane' groups as to the proper course of
action in our foreign economic policy. We want to learn the facts and
obtain the views of others.
We have recently been giving special attention to the area of foreign
investment and considering what are the appropriat® roles for the United
States investor and the Wnited States Hovemiaent.

During th© past few

years American private investors have invested or reinvested abroad about
a billion dollars a 'year net. ' These Investments have bean primarily in
the dollar area. Sarly postwar private capital outflow was concentrated
in Latin America, and Canada lias taken an increasing amount in the last
few years. Petroleum investments, which bulked large at first, have declined from the 1949 peak, and In' l?£l the flow of petroleum investment was
substantially less than the total Invested In all other induetries together.
These substantial net IT. S. private inrestasents have exceeded by more than
four times the combined annual net disbursements on loans of the International
Bank and the Export-Import Bank.
During the last three years the International Bank has disbursed
*sore than 1400 million. The Expcrt-Iapert' Bank paid out nearly 1900 million
and received capital repayments of I$6$ million, resulting in net payments
imm foreipi borrowers of slightly more thm $300 million. What these two
banks have accomplished in recent years md what they can best achieve in
facilitating private investment end economic development abroad in the

77
TREASURY DEPARTMENT
Washington
Statement by Treasury Secretary Humphrey before
Senator Capehart's Advisory Group on international
Trade, Senate Caucus Room, at approximately 10:00 A.M.
September 15, 1953
Senator Capehart, Gentlemen:
We are all indebted to Senator Capehart for bringing together
such an outstanding group of businessmen, labor leaders and farm
leaders. I want to express our appreciation for the interest you
have shown by coming here. I know that we will all benefit. The
Government is indeed anxious to have the views of representative
citizens' groups as to the proper course of action in our foreign
economic policy. We want to learn the facts and obtain the views
of others.
We have recently been giving special attention to the area of
foreign investment and considering what are the appropriate roles
for the United States investor and the United States Government.
During the past few years American private investors have invested
or reinvested abroad about a billion dollars a year net. These
investments have been primarily in the dollar area. Early postwar
private capital outflow was concentrated in Latin America, and
Canada has taken an Increasing amount in the last few years.
Petroleum investments, which bulked large at first, have declined
from the 1949 peak, and in 1951 the flow of petroleum investment was
substantially less than the total invested in all other industries
together. These substantial net U. S. private investments have
exceeded by more than four times the combined annual net disbursements on loans of the International Bank and the Export-Import Bank.
During the last three years the International Bank has disbursed
more than $400 million. The Export-import Bank paid out nearly
$900 million and received capital repayments of $565 million,
resulting in net payments to foreign borrowers of slightly more than
$300 million. What these two banks have accomplished in recent
years and what they can best achieve in facilitating private investment
H-255and economic development abroad in the coming years is
a subject which you gentlemen will be thinking about.

- 2-

I KJ

In this connection we suggest that the two institutions should
complement each other and overlap in their respective activities to
the least possible extent. To accomplish this result it seems to
us that the names of the Institutions are of real significance and
may be a guide to their respective fields of activity. The
International Bank for Reconstruction and Development implies loans
of a capital nature of long duration and for construction and
development purposes. The Export-Import Bank implies the aid to
exports and imports and to current trade by loans of much more
rapid turnover and shorter duration. Indeed, the whole set-up for
each institution is such that if confined to their respective fields
much more definitely than has been the practice of the past
a broader combined service can be given and competition between
them practically eliminated.
Last week, as you may know, Senator Capehart, Senator Maybank
and some of the rest of us attended the Annual Meeting of the
International Monetary Fund and the international Bank for
Reconstruction and Development. One of the sessions was devoted
to a very interesting panel discussion on the role of private
international investment in underdeveloped countries. We found it
very enlightening to hear the views of outstanding representatives
from some of the capital exporting countries as well as from
countries seeking capital such as Egypt, India and Mexico. There
is an obvious and important role for private enterprise to play in
foreign investment. In fact, I hope that a much larger and more
important role lies ahead for the profitable investment of private
capital and technology abroad. These discussions will be published
and available to you. I recommend them to you for study.
Since the end of the war, many countries abroad have been looking to the United States for assistance in financing their economic
development. In many instances foreign countries have preferred to
obtain their assistance from governmental sources. This raises the
very serious question of to what extent this practice should be
followed in the future and how it can best be provided, to whatever
extent it seems best to carry it on.
Some countries have taken only limited steps to provide the
conditions under which private investment will voluntarily move
abroad on the basis of normal economic considerations. More
attention must be paid abroad to making Investment attractive to
foreign capital. The countries which have made the greatest strides
in their development over the years are the countries which have
provided the conditions under which private capital was most
willing to invest. The United States and Canada are two of the
most conspicuous examples of countries which have in the last
century moved from the state of underdeveloped countries to strong
ment,
you
established
of
if
industrial
private
their
that
which
our
capital
investment
countries
brings
trade
development
requirement
connections,
with
in
voluntarily
it
aand
position
not
Canadian
can
and
only
be
made.
business
to
met
money
development
export
by
Countries
but
securing
experience.
capital.
technical
was
will
private
onBut
be
know-how,
the
better
Iinvestbasis
remind
off

79
- 3I cannot foretell what you gentlemen are going to suggest as
proper policy for the United States Government to apply in the
field of foreign investment and I am sure there will be different
views. I do not wish to prejudge the conclusion which may be
reached either by this advisory group or by Senator CapehartTs
Committee. However, as Secretary of the Treasury I do want to make
clear to everyone that the Government must question both its right
and its financial ability to continue to use taxpayers' money to
finance investments abroad on a large scale in the development of
competitive enterprise.
Our scale of taxation Is already too high and to maintain
a sound and honest dollar we must bring our own expenditaires and
revenues into balance. We must continue to examine most carefully
every proposal to spend money, whether It is a proposal for spending
at home or abroad. The maintenance of our credit and of a sound
dollar is most important for foreign countries as well as it is for
us here at home, prosperity in the United States is essential for
prosperity in the rest of the world, and it is not only our duty
but it is for the best interests of everyone concerned that we
keep that fact always uppermost in our minds.
We are all indebted to Senator Capehart and his colleagues on
the Senate Banking and Currency Committee for undertaking the
exploration of this very important field. It has been a privilege
to have this opportunity to meet with you gentlemen and to leave
with you these few thoughts.

0O0

Bo iy&ufc&ixiktttB twat I0W& Jn& the &t0ek saar%Bt r^&stl^'
Iradieat-© t£%at a,tf^cm&&X®u1B on tfaB n y f

$ I© the Treasus^' ^t-uc3^iBg a sales tax at tl*e retail ISME
or at the i!^ijyracty.r€;r *s l^velf

% mm res ul t af the Wor-M Baak ar^d fisui sWrtiag last wmmk
m

jffft think w are ar;y neara P to eowaptiblllty ?

Q Bs- JW f-e 1 any stronger am a nn aaaivt fe.re&k down tariff

Q -There ter# fee« saaa; rigors ft»t yon mm mm mmm mmmmmm\.
Bhmut a 'orD'oer d#fasse mm ossoaed tofetM-^efchaian^ipig »ham
npfww ^B'MBWI.IW-

"<swi ,j|?^^^>lff^

^eweiMm •mm&fw-e* mi

*nm9&

am^gf^^i'm^m9rw'^mm- flp*wr a»^wwp|gj£*|P -ap

3wresw<aaiBw ^ w ijaeiiaro^t,

^paiKWas**

yen w » g i » Matt** agcy. Have ^ou cimnge4 p r attitude?

- 'ft -

&ac!t tiaii&l possible (|u@.stiOias whioh eoulcl t>€ ox* will te asked

Q XanTa tha mmmmmt mw^mmthlm tm higher internal
3&feM on ho$&e •BK'tga&fra?'

1 hffm \amrn solos ttsM* a&tfe atudlirl&g tfaa s&X#a t»

MOIIB

#tfear

t&in&t i» apita nC cbtljmn & M 6 * a ata&smat ttet * mmlmm
%mi ca&n&t p'&&m the M a t Qorype&z-.

% Tm % hmlmmmM tR>titoat mXkwmm ^ &*®& things? that is* wmld
mM

tte catting o£ sparcim*; or i«la&ag tto taxmm to gat m

balanced budget be a bad t M u g la a recession or adjustsieiit?

9 INaidattfc tram «M la ifetroit last »#^ thsVt tfea I4itfp*Y'
•tefcamat «a£aa

nay te to th© benefit of th© aor^y lerider

tat it i m a i ? *»wi lw*fc ^ ® » * t ot Hit p w p M * \

is thii

traa?

f IMI «aar that tfea iiilAar t^ia^ la awtfe about ft*!? Mnla*
ft» fact is taafe peat- iw»l#atta mm

jsaarleaiia ^taaiajr better aff t

gating; tuloa at? »or«

- 13 t hmwm tried && ask aome af t&e ^uestlOTiS "i^iich
oecmr to ©a*

i will imm %m a:lmil te anawer ayestiaris o&

- 12
attmnt felly wm^mt jmolttsaa at* mlmm of cmtaitaailag
ftatwam*

a a a w l U a a m%mmmi% at that tlaa*- Vltfeia tha

naat fan days m h a m tei a M H sM*ttf$tag raqpawa to
a p ^ p » a l to aiaat twtmaa a ana*|Raar maA a Sihf®»
aafea&t? la vaflxaaaiag a 1mm
BtiUtas* of tmm

;

ia»a that oana fea,

#3 tlUisa' of tha total laaaa ala^tai

mm , It la our flaia lataBtlaa ti&t n o w iatamsdi&ta and
lm-m~**m, Immmm « U l t a afci at «MMp*t«m tiaaa la tha
itatt&a* «& m M

nnf eava, of oom«®* not to pmmm ttta

awiteat ursduly in eatEyp-etitloaa Mith atsbas* state, Municipal
ap§ private f limiac;in^55 **hich is being, pres&ed this jfaaf*
la w^mw^'^M4^iit^i% m^w&twwziid w^^^vwm gaa&t mtwm-mwk o$n?
part to a^old wittily Interfering with it*

All la all* t§e hava isade noma paogpaaa la ttila mttmwt
tim «i taoMt feUar. It tftll- tafca a laet mmm

tla» ami a

lot notr* tanpit to- make fwthar prop"a«a* tat w© iataest to •
k£#g» at It, It is tha kind of progress tfeiati does* not
often make headlines baoaus# It la not of a dramatic
natwrai'.- But tha pres^ravatlon of our acooo^iyva© ^©11 an
tha pffeaamt&loa mi tha righta ansi prlvlla®M to it^Eit
llvla& for tha a&llloaa mi mmwl&mm. lawaftvad Hi it*
it all trapMa&waly woptli uhlla o w n if not to a felly

• 11
osn*

st&kaa %rm too fci#i to dhmmi talag only Mooad

taat* ^ l a toaa mt mmrnn, hfcaatvar, that %m emmmt

aaotlana

mmwf fey to'acva aft&alaatly $3*a our pvogiwHi to cat- tha
aoat for tha aoaay wa apand*

Singly spasdlag hUllmtm

dollars does not necessarily guarantee the best defense,
Wa must saaks atana that what we have la the most possible
ia lafealllgmt plmtmlm

&at orpj^lmtloa to prwlfe that

fealaaaa anl afflelaaey of tmmmm nt&mM will @ i w *h@ taat
fefaaM at the mlMmm

ml cost to the economy of our nation.

X mentioned tha operation of the latent! - aaaawa
flpataai aa the aaoood area which contributes to the effort
to obtain honest atoaay* Hie Federal i^serve has been
assured by thla A'^ialnifctration that it will have the pvlaa
responsiblli ty for maintaining a proper isoziey supply and
eon&ltlaaa m& baixk credit li^s of artificial restraints.

' ffe aotsay and eradlt to dataiaaiua it* mllaaar—•
Itoa third area iiaportant' to honest attMQr la debt
asjaagassaat* Mm hmm

been asked If we have abandoned our

goal to try to get more of thla debt Into long-terra laanaa*
.fla haae not abandoned this goal la any mmmm*

Da took

a first step back la April &y puttiny out a 3 ® * P ^ taad,
^ie rata of 3| pm&mmtmM

hl^mt* than tha i?at@ oa,pswioiia

issues, tat It reflected the going rate as fixed by the

- 10 overrdght, tat thaaa femunt obligations will mm reduced
tqr ataot-.|9 billion aaaatftiisg to iwuaaat aaftuamtaa*./. .
National t^yurity la a atajor consideration la this
attttav of.fealaglagtha tadeat into hmlmmm*
*MN&

^LMM la obifionsi

yam really that ®®m*i$ ttaa»Hitti*ta*a of our total

budget la hmd-m japeia. for that jnapcpaa*

caaa'.ot afford

to take the bra^adax approach to redue tion of the aanay we
are apaailag. for defense and na have not done ao*

This

Adsilnlstii^atiori frill* taatvar* with l&a new «Joi&t Owlets
of Staff at T#ork, review the daf aaaa j$*o§fw aaa|*2*feaXy

for tha- least'passible dollars, It ta^§oi« to take some
mml

work and a real nan jpatofeat*

it/^i^t fee feaa just

by pottlag aome additional chvom on tba btagtar, we have
to bava afcnaid~aairaod&l~~afia that will fe evaa. battar
than the one na did have--and Btlll cost laas monev.
With all the skill and ingemiitv that thax*a is la imerlQm
I foal mmm

that we can produce a new product, one that

m i l giva mm a atronger, more efficient mtmmmm siachlne
at less cost*
aaoaat i-eveiations that the Usaatansi ®m& htxve gone
beyond tha atossle bomb la the f laid of nuclear u^&potta
la additional acfearlag evider.ce that our course in belnz
earful &a we mwtmw our dafaaaa M M S M M

la a moat proper

- 9iaauea -in thla 275-Ml lion-dollar prob-lam. He are trying
to Wmkm it laaa inflationary by gradually extendlsg the
length of thm maturities of the laauaa and plaolag tmre
of It la the bands of Investors and aoabaak holders*
nearly mmm^mjmrtmwm
five yaara*

mi the* dolt aaturaa la leas than

tfeat is too higb a- peroeataga for the safety

of an boaeat dollar,
•

.MOtt ^

GETTING HONEST MONEY?

Wm are we doing 1 B gattlag boaeat money?
wo are mmMjm> soiie progreaa*

I thUHc

fbara are ladlcatloaa that

tha 13*-yaar daollaa la the purchasing power of tfee dollar
at last has- boon haltad.

ffee dollar ablcfe la worth only

a little over 50 cents today isaa worth im cents soma 13 'ytr
yeatra ago, fee value mi the consumer*a dollar for all
Items has changed lew® than half a cent in the past six
•aatba as compared with a daollaa of xmm^l$ «£0 cents in
tha past mix yaara*

ifiiile alx »ontba is of course a abort

tiaa la- -ishich to gauge a trend., it doea- ladloata that for
tha moment at least the dollar baa baeoi»a batter stabilized.
In tha budget field some real progress is being made,
Satlmtad expenditures for the current year have been
reduced by nearly $6| billion \mdmr the estimates we found
*pon entering office, sighty~oae billion dollars of 0.0.0*
orders previously placed will come due In the next one,
two or three yaara m& mmt

mm paid for. fbese past

obligations nafee it -isqpoaalble to wipe out deficit financing

-g ~
• w» *» « «°» to CTT fO IMfO* WBSg usifgr?
Wa are working at it in three iaain areas.

I think

tta^r ara fMdllar ta mmrnt of you, but I will aMaatioii thaia
¥$&& quickly,
tha first area baa to do with the budget and deficit
flaanolag*

Hhan a goverrjaent spends more than it takes in,

It tea to borrow to pay its bills* just as a ramiiy or a
business does,

fen

the goverrment borrow from m e baata,

it creates more credit, increases the money simply, mid
thus mam help to cause Inflation*

inflation mnm

that

the dollar la worth leas. Honast money ©eami the absence
^paw

»pp«npBi ^a^iSifcfiP1 wfc*SFS.a

•%• >Na

e^w^arJm ^3P

a#^ii»w»H«r''WaBa^^rv»J^

w M w a P ' S w f r 'B^^a

ViHpftkiaaiaj>ip»"

fSkjMS>

aaa*^*

dollar.
tta second area has to do with tha proper activities
of the Federal Reserve System,

In the paat* under Treasyry

domination the Federal Eeserve has eoatribiitad substanti^ly
to Inflation by artificial la&niptHatioa of the value of
goverranent bonda, which added substantially to the 3upply
of currency and thus aided Inflation. Freed from
arbi tratry central, it can contribute greatly to stability
of tha value of tint dollar.
The third area la in the sianaeement of our too huge
national debt. The weal-being of the nation la substantially
affected by the isaimer la which we refinance and place now

• 7will fiad fraai #5,000 to $*5,0QG la ovary pair of working
hands.
Because people bava saved and have the incentive
to save, X«£fX]yu&X American hands have power greater
tbaa aay otbar baada la tha world.

It mm dm aot coa~

tinue to provide thm incentive to cave, people are going
to save leas and additional good things that can come
frea tha Investment of savings are going to decrease.
If Americans lose the incentive to save, we are going
to set America hack so that mm American's baada are no
better then the baada of others.
Fair rates ef Interest ana fair earnings oa money
mmxm€ and sound honest money are essential for saving.
Wo one will save money that earns little or nothing
or that a# thinks will grow less and less valuable or
aay hmmomm worthlees. Honest, goad money aad fair
earnings oa aavlaga are primary objective* of this
Administration. , We knov that good aoaey ae&aa good
times.

i.
I think that most of mm do aot realize wall enough
until we atop to think about it just what it takes to
make a Job la America today. First it takes savings.
Sow, who are these people who aavef

fbay are alaaat

everybody la America, fbay are the Americans who have
savings account a; tbey are the Americans who are buying
Insurancej tbey are tha Americans who are p&yiag oa
pension pXmmm for decent old age, and many, many more.)
Because all these people save, there la money
available for investment, this Investment en&blea tbe

t^^-^^j^

development of aot only oar natural resources bat also _/
tbe aalaatists* aaaagera* aad all tbe people wfea

i^+fiyM*

-^i^^r

cooperate la tbe production ef machinery, the people «

w v-,-

^
.,

explore for new mines aad oil wells, tbe people who build j.
factories aad equip them with tools, tbe fanners who

X. *-#&

paateaa so much more witb aotefft far® equipment, tbe

MIAA^

power plaata, aad thm traaaportatlaa so that tbe two ~~fcyy*^
baada of mm American can produce twenty to a hundred

i,yA

times as much aa those two baada could do without these
great developments that savings have made possible.
This great power la la a pair of American baada
hwmwm® Americans saved. There la an investment of
$17,000 for every man worieiag la a ataal plaat today.
thla means that tbara are #17*000 wertb of plaat aad toola
which pat pover la bla baada. la nearly any industry you

- 5-

irMJvra gssga

This questionb&s b##a asked by many people la connection with discussions about "hard money,

sound money,

higher interest rates, tbe prices of government securities,
eta.

Information on all of these matters is due all

Americans, aad it la my purpose to keep trying to provide
Twaa-Wm w -

>a^mnaa- msfmt ssa4W'mw*•%>^paa m

Fundamentally, what we mwm up to la simple.. What we
are trying to do la to make the money of America honest
and sound so that it will better serve the well-being of
tbe American people.
tbe average American baa more than any other peraon
la tha world because be can produce more than aay other
pergon ia tbe world.

Why can he pwm&mmm moref

It la

becauae Americans have saved money, aad sound honest
money la essential to continued saving, Becauae someit
body bad the will aad the incentive to save money,/has II been
available la XMXIXiUi America to invest in plants, mines,
transportation, power^ tools, farm equipment, and all the
things we take tmr granted today. Without them there
would have been few of tbe Jobs for the millions of
Americans who earn their livellhcdds with them aad so are
able to outproduce all others.

~ * ~

studying the whole tax structure to help la every way we
eaa tbe Ways aad fteaaa Committee la praparlag a tax reform
bill wblith may be considerad by tha aext session of
Coagraas. la addition to prowidlag the reveaue whieh
will be aeedad oa tbe baais of spending estimates ia
tbe aext budget, tbia new tax bill will propose ravialoa
of our present tax laws and regulations which will remove
many inequities aad Injustices and provide tha fewest
obstacles to the healthy growth aad axpaaaloa of oar economy

WOT mm aa mrmmLwm n&m to ..My
Over aay extended period, interest rates will respond

to tbe supply and dtmaad for moaey. fbey are currently
determined daily by widespread purchases and sales of
securities in the financial markets*

if a bond pays a

fixed rata of iataraat, tbea tbe rata of iatereat which
a purchaser ©f it will receive oa hia lavastmeat will
depend mpoa tbe price be pays to b^y it-

If be pays par,

be gets the fixed rate, but If be paya more or less than
par, then tbe fixed rate will be eqmlvaleat to a lesser
or greater rate on the amciaiit of moaey be baa paid to
acquire it. Vhaa govaraaaat beads are sold by th®
Treasury either to ref iaaaoe a maturing iaame or to borrow
new moaey, tbe rate'of interest they bear mast reflect the
rates tbea earreatly being determined by the purchase sad

- %A sale of attaa* outstanding governroent aaawitlaa oa the
opaa market.

If a too ameb hig^r rate la put oa tha aew

bond, it fawora the bayar aa against the govaraaaat and
will farther depress tha print of other iaaaea. .-tet U
too lew a rata la paid oa tha aew bead, buyers woa't %m$
them bat will purchase other aaawrltlaa which glva a
batter ratara. $o, interest rataa tm gowarwaat bonds
are not arbitrarily determined bat are aow flxad by
©mrraat market eoaditioaa.

a* k a.

atadylag the whole tax structure to help ia every way we
can tbe Ways aad Jfeaaa Committee la preparlag a tax refof®
bill which may be eoaaidarad by tha aext aeaaloa of
Coagreaa. In addltioa toprowidtat the rawawa whloh
will be aeeded oa the basis of spending estimates la
tha aext budget, this aew tax bill will propoaa ravlaioa
of oar praaeat tax lava aM vafalatioaa which will remove
many inequities aad Injustices and provide the fewest
obstacles to tbe healthy growth and expansion of oar economy,

Over aay #xt#aded parlod, lataraat rataa will respond
to the supply aad damaad for money. They are currently
determined dally by widespread purchases and sales of
securities ia the financial markets. It a boad pays a
fixed rate of lataraat, tbea the rate of lataraat which
a purchaser of it will mmwtm

oa hia iavestaeat will

depemd apoa the price he pays to buy it. If he pays par,
he gets the- fixed rata, bat if he paya more or less tbaa
par, then tbe fixed rate will mm aamivalaat to a leaser
or greater rate oa the aaoaat of money ha baa paid to
aamjitra it. Vhaa govewmeat beads are sold by the
treasury either to raf laaaaa a matarlag laame or to borrow
aew meaty, tbe rate of lataraat they bear must reflect the
rataa then currently belag determined by the purchase and

-3
more proper place to exert prmmmmTm to aut spending la la
the appropriations committees whore the authorisations to
apaad are made aad given to tbe executive branch of tha
goveroaaent •
$

Via* PBOFOSFD TAX COTS GO TgftQgQH?
Some people have suggested that we shouldn't allow

tax cuts to become effective January 1 unless we have a
balanced budget. I do aot knew what we will have la sight,
at least clearly ia aight, whoa the aaxt Congress convenes.
But tha progress we are making toward a balance la sufficient so that I do foal sincerely that the President's
program of letting the excess profits tax die as well as
making effective the reduction la peraoaal Income taxes
oa January 1 should be allowed to go through oa schedule.
There la nothing in oar present estimates of spending and
income which would tend to change our recommendation la
this matter. We are continuing to make progreaa toward
balancing the budget aad we are going to kmmp right oa
trying la every ressoaabla way to do ao. It la aot aa
impossibility to balance tbe cash budget before the year
la ©war, or at least to get into a current balance by
that time.
In tha tax field ia general, Treasury people are
working diligently with congressional counterparts la

• f •
with tha amount of debt we have awtartat* tha fiaaaalag
raqaiiNsmsita to oover tha aatteatad budget deficit, the «aa*»al raaaipta af immmmm baaaaaa of the m i l * fiaa,and tha possibility ©f large unexpected raqaliHNwata for
.wash outlays la mm many dlreetioaa, it seems most fjspwdaat to us m*t to have adequate alaatialty to meet
whatever oar fuaaaalal mqmtimmmtm

aay b#. Via problem

conceraa not eeoaumy hat the fiscal management mt the
govemsieat. W# pledged that we will continue to work for
increased mmmmmlmn

la gawaaabaat, wtothar or aot w# have

the iabt~l*ads ceiling that we a*faaata«.
Mmmemr,

mm 1 aal« immediately foliowlag the feaata

aaamlttaa'a dtoalalaa, w« will bow to their judgment aad
we will try ia every way that we can to operate withia tbe
reatrlctloas. of the present limit* the total amount of
faifeMBa* tax collections should be kmowa withla the aaxt
two weeks. If our Income is ap to awtiaatsa aad there
mm mm aaaxasatai axpnaditares required, the chances are
that me may be able to gat by without goiag over tha
pmrnmrnt debt limit aad mm sat a#ad a apeclal aaaataa of
@mm®mm*

it U »y hope that we will ha able to do so-

We share rally the genuine eoacera of the aia»her*
of the aaaata Fiaaaoe Caavjlttaa as to the argaat aaed for
avoiding excessive apaadlag»

Bat we also teal that the

M3VAICF FOB KSLEASE Af 1 P.M.
VgPHg^DAY, 3EPTEICBIR 16, 1933

y> *

II H liij I IHH HI III BT SECRET AfiT Of TSE TRSAS8KT
GEORGE «. HUMPHFFY A? PlSSf FALL LUtCHEOW 09 THI XATIOIAL PB1SS CLCB
VASKaWOS, D.G., At 1 P.M., WEDHESDAT, SEPT. 16, 1933

Oeatlemea:
Iaaamuch as the mala recent Treasury sews was made by
the $2 billion plaaaed eat la fiscal 03% spending aad the
vary successful Treasury ref Isaac lag, I am today without
fresh, hard news to announce. So 1 will simply ash myself
a few of the omsatioaa which seem to be la people's minds
about our operations these days aad try to aaawer them
with aeaethlsg of the pailoaophy at what we are doing.
Then I'll be glad to aaawer quest!ess on matters which X
may aot have covered.
§

WHAT ABOOT fat DEBT LIMIT?
Just before tha Coagreaa adjourned, tha lease of

B ©present at Ives by a large majority passed bat tha Senate
Finance Committee refused to approve oar request for as
increase la the debt limit from 375 to 290 billion dollars.
We thought then aad think now that tha Ineraase was a
proper request la tha bast interests of orderly fiscal
management to provide adequate elasticity la handling our
flnasces. The government la apendiag about $6 billion a
aoath. If oar balances fall below thla, It means that we
must operate oa leas than a thirty days* cash basis.

TREASURY DEPARTMENT
Washington
ADVANCE FOR RELEASE AT 1 P.M.
Wednesday, September 16, 1953.

°^

H-256

Remarks by Seeretary of the Treasury
George M. Humphrey at First Fall
Luncheon of the National Press Club,
Washington, D. C , at 1 P.M., Wednesday,
September 16, 1953.
Gentlemen:
Inasmuch as the main recent Treasury news was made by the
$2 billion planned cut in fiscal '54 spending and the very successful Treasury refinancing, I am today without fresh, hard news to
announce. So I will simply ask myself a few of the questions which
seem to be in people's minds about our operations these days and try
to answer them with something of the philosophy of what we are doing.
Then I'll be glad to answer questions on matters which I may not
have covered.
Q WHAT ABOUT THE DEBT LIMIT?
Just before the Congress adjourned, the House of Representatives
by a large majority passed but the Senate Finance Committee refused
to approve our request for an increase in the debt limit from
275 to 290 billion dollars. We thought then and think now that the
increase was a proper request in the best interests of orderly
fiscal., management to provide adequate elasticity in handling our
finances. The government is spending about $6 billion a month.
If our balances fall below this, it means that we must operate on
less than a thirty days' cash basis. With the amount of debt we
have maturing, the financing requirements to cover the estimated
budget deficit, the unequal receipts of income because of the
Mills Plan, and the possibility of large unexpected requirements
for cash outlays in so many directions, it seems most imprudent to
us not have adequate elasticity to meet whatever our financial
requirements may be. The problem concerns not economy but the
fiscal management of the government. We pledged that we will
continue to work for increased economies in government, whether
or not we have the debt-limit ceiling that we requested.

Q7
KJ I

- 2However, as I said immediately following the Senate
committee's decision, vie will bow to their judgment and we will
try in every way that we can to operate within the restrictions of
the present limit. The total amount of September tax collections
should be known within the next two weeks. If our income is up to
estimates and there are no unexpected expenditures required, the
chances are that we may be able to get by without going over the
present debt limit and so not need a special session of Congress.
It is my hope that we will be able to do so.
We share fully the genuine concern of the members of the
Senate Finance Committee as to the urgent need for avoiding
excessive spending. But we also feel that the more proper place
to exert pressure to cut spending is in the appropriations
committees where the authorizations to spend are made and given to
the executive branch of the government.
Q WILL PROPOSED TAX CUTS GO THROUGH?
Some people have suggested that we shouldn't allow tax cuts to
become effective January 1 unless vie have a balanced budget. I do
not know what we will have in sight, at least clearly in sight,
when the next Congress convenes. But the progress we are making
toward a balance is sufficient so that I do feel sincerely that
the President's program of letting the excess profits tax die as
well as making effective the reduction in personal income taxes
on January 1 should be allowed to go through on schedule. There
is nothing in our present estimates of spending and income which
would tend to change our recommendation in this matter. We are
continuing to make progress toward balancing the budget and we are
going to keep right on trying in every reasonable way to do so. It
is not an impossibility to balance the cash budget before the year
is over, or at least to get into a current balance by that time.
In the tax field in general, Treasury people are working
diligently with congressional counterparts in studying the whole
tax structure to help in every way we can the Ways and Means
Committee in preparing a tax reform bill which may be considered
by the next session of Congress. In addition to providing the
revenue which will be needed on the basis of spending estimates in
the next budget, this new tax bill will propose revision of our
present tax laws and regulations which will remove many inequities
and injustices and provide the fewest obstacles to the healthy
growth and expansion of our economy.

Kmt KJ

- 3Q WHY DOSS THE GOVERNMENT HAVE TO PAY
MORE INTEREST ON GOVERNMENT BONDST"
*"

" " " ' "'•''|""

Over any extended period, interest rates will respond to the
supply and demand for money. They are currently determined daily
by widespread purchases and sales of securities in the financial
markets. If a bond pays a fixed rate of interest, then the rate
of interest which a purchaser of it will receive on his investment
will depend upon the price he pays to buy it. If he pays par,
he gets the fixed rate, but if he pays more or less than par, then
the fixed rate will be equivalent to a lesser or greater rate on
the amount of money he has paid to acquire it. When government
bonds are sold by the Treasury either to refinance a maturing
issue or to borrow new money, the rate of interest they bear must
reflect the rates then currently being determined by tshe purchase
and sale of other outstanding government securities on the open
market, if a too much higher rate is put on the new bond, it
favors the buyer as against the government and will further
depress the price of other issues. But if too low a rate is paid
on the new bond, buyers won't buy them but will purchase other
securities which give a better return. So, interest rates for
government bonds are not arbitrarily determined but are now fixed
by current market conditions.
Q WHAT IS IT THIS ADMINISTRATION
"T3HPRYING TO DO AJgOuTTTOFfE¥?
This question has been asked by many people in connection with
discussions about "hard money," "sound money," higher interest
rates, the prices of government securities, etc. Information on
all of these matters is due all Americans, and it is my purpose to
keep trying to provide that information.
Fundamentally, what we are up to is simple. What we are
trying to do is to make the money of America honest and sound so
that it will better serve the well-being of the American people.
The average American has more than any other person in the
world because he can produce more than any other person in the
world. Why can he produce more? It,Is because Americans have
saved money, and sound honest money is essential to continued saving.
Because somebody had the will and the incentive to save money, it
has been available in America to invest in plants, mines, transportation, power, tools, farm equipment, and all the things vie
take for granted today. Without them there would have been few
of the jobs for the millions of Americans who earn their livelihoods
with them and so are able to outproduce all others.

- 4I think that most of us do not realize well enough until vie
stop to think about it just what it takes to make a job in
America today. First it takes savings. Now, who are these people
who save? They are almost everybody In America. They are the
Americans who have savings accounts; they are the Americans viho
are buying insurance; they are the Americans who are paying on
pension plans for decent old age, and many, many more. Banks
and insurance companies are simply the intruments through which
those savings of millions are funnelled into the channels of
trade and investment.
Because all these people save, there is money available for
investment. This investment enables the development of not only
our natural resources but also the scientists, managers, and all
the people who cooperate in the production of machinery, the
people who explore for new mines and oil wells, the people who
build factories and equip them with tools, the farmers who produce
so maich more with modern farm equipment, the power plants, and the
transportation so that the two hands of an American can produce
twenty to a hundred times as much as those two hands could do
without these great developments that savings have made possible.
This great power is In a pair of American hands because
Americans saved. There is an investment of $17*000 for every man
working in a steel plant today. This means that there are
$17,000 worth of plant and tools which put power in his hands.
In nearly any industry you will find from $5,000 to $25,000 in
every pair of working hands.
Because people have saved and have the incentive to save,
American hands have power greater than any other hands in the world.
If we do not continue to provide the incentive to save, people are
going to save less and additional good things that can come from
the investment of savings are going to decrease. If Americans lose
the incentive to save, we are going to set America back so that an
American's hands are no better than the hands of others.
Fair rates of interest and fair earnings on money saved and
sound honest money are essential for saving. No one will save money
that earns little or nothing or that he thinks will grow less and
less valuable or may become worthless. Honest, good money and
fair earnings on savings are primary objectives of this
Administration. We'know that good money means good times.
Q WHAT ARE WE DOING TO TRY TO PROVIDE HONEST MONEY?
We are working at it in three main areas. I think they are
familiar to most of you, but I will mention them very quickly.

luu
- 5The first area has to do with the budget and deficit finane:'ng
When a government spends more than it takes in, it has to borrow
to pay its bills, just as a family or a business does. When the
government borrows from the banks, it creates more credit,
increases the money supply, and thus can help to cause inflation.
Inflation means that the dollar is worth less. Honest money means
the absence of inflation and a more constant, assured value of the
dollar.
The second area has to do with the proper activities of the
Federal Reserve System, in the past, under Treasury domination
the Federal Reserve has contributed substantially to inflation by
artificial manipulation of the value of government bonds, which
added substantially to the supply of currency and thus aided
inflation. Freed from arbitrary control, it can contribute
greatly to stability of the value of the dollar.
The third area is in the management of our too huge national
debt. The well-being of the nation Is substantially affected by
the manner in which we refinance and place new issues in this
275-billion-dollar problem; We are trying to make it less
inflationary by gradually extending the length of the maturities
of the Issues and placing more of it in the hands of investors and
nonbank holders. Nearly three-quarters of the debt matures in
less than five years. That is too high a percentage for the
safety of an honest dollar.
Q HOW ARE WE DOING IN GETTING HONEST MONEY?
How are we doing in getting honest money? I think we are
making some progress. There are indications that the 13-year
decline in the purchasing power of the dollar at last has been
halted. The dollar which is worth only a little over 50 cents
today was worth 100 cents some 13 to 15 years ago. The value of
the consumer's dollar for all items has changed less than half
a cent in the past six months as compared with a decline of nearly
20 cents in the past six years. While six months is of course
a short time in which to gauge a trend, it does indicate that for
the moment at least the dollar has become better stabilized.
In the budget field some real progress is being made.
Estimated expenditures for the current year have been reduced by
nearly $6-| billion under the estimates we found upon entering
office. Eighty-one billion dollars of C.O.D. orders previously
placed will come due in the next one, two or three years and must
be paid for. These past obligations make it impossible to wipe
out deficit financing overnight, but these forward obligations will
be reduced by about $9 billion according to present estimates.

101
- 6National security is a major consideration in this matter of
bringing the budget into balance. This is obvious when you
realize that nearly three-quarters of our total budget is being
spent for that purpose. We cannot afford to take the broadax
approach to reduction of the money we are spending for defense,
and we have not done so. This Administration will, however, with
its new Joint Chiefs of Staff at work, review the defense program
completely to make sure that we are getting the most possible
defense for the least possible dollars. It is going to take some
real work and a real new product. It won't be done just by
putting some additional chrome on the bumper. We have to have
a brand-new model--one that will do even better than the one we
did have--and still cost less money. With all the skill and
ingenuity that there is in America, I feel sure that we can produce
a new product, one that will give us a stronger, more efficient
defense machine at less cost.
Recent revelations that the Russians may have gone beyond
the atomic bomb in the field of nuclear weapons is additional
sobering evidence that our course in being careful as vie review
our defense machine is a most proper one. The stakes are too high
to chance being only second best. This does not mean, however,
that we cannot continue every day to more efficiently plan our
programs to get the most for the money we spend. Simply spending
billions of dollars does not necessarily guarantee the best
defense. We must make sure that what we have is the most possible
in intelligent planning and organization to provide that balance
and efficiency of forces which will give the best defense at the
minimum of cost to the economy of our nation.
I mentioned the operation of the Federal Reserve System as the
second area which contributes to the effort to obtain honest money.
The Federal Reserve has been assured by this Administration that
it will have the prime responsibility for maintaining a proper
money supply and conditions of bank credit free of artificial
restraints.
The third area important to honest money is debt management.
We have been asked if we have abandoned our goal to try to get more
of this debt into long-term issues, we have not abandoned this
goal in any sense. We took a first step back in April by putting
out a 30-year bond. The rate of 3i percent was higher than the
rate on previous issues, but it reflected the going rate as fixed
by the current daily market purchases and sales of outstanding
government securities current at that time, within the past few
days we have had a most gratifying response to a proposal to elect
between a one-year and a 3i-year maturity in refinancing a large
total
issue issue
that came
elected
due.toHolders
take the
oflonger
more than
term $3
security.
billion of the

1C2
- 7It is our firm intention that more intermediate and long-term
issues will be sold at opportune times in the future. We will
use care, of course, not to press the market unduly in competition
with other state, municipal and private financing, which is being
pressed this year in unprecedented amounts and requires great care
on our part to avoid unduly interfering with it.
CONCLUSION
All in all, vie have made some progress in this effort for an
honest dollar. It will take a lot more time and a lot more work
to make further progress, but we intend to keep at it. It is
the kind of progress which does not often make headlines because
it is not of a dramatic nature. But the preservation of our
economy, as well as the preservation of the rights and privileges
to decent living for the millions of Americans involved in it,
make it all tremendously worth while even if not in a daily
dramatic sense.
I have tried to ask some of the questions which occur to me.
I will now be glad to answer questions on any additional subjects
that I may not have covered.

0O0

- 3yiwA.

but shall bo exempt from all taxation now or hereafter imposed on the principa

or interest thereof by any State, or any of the possessions of the United State
or by any local taxing authority. For purposes of taxation the anount of discount at iThich Treasury bills are originally sold by the United States shall
considered to be interest. Under Sections ]±2 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 1941, the amount

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 aaended, 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 -

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 24, 1953 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing September 24, 1953 . Cash and exchange tenders will receive equal
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 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,

Bqj^fjJMMJiOTk
A I X I H T I T T ft

/STiTSttirtiSp

TREASURY DEPARTMENT
Washington
FOR RELEASE, ilORNIM} lETTSPAPERS,
.T^£sday.A. September^ 17, 1953
•

-isi

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 2k, 1953 , in the amount of
§1,500,229,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated September 2k, 1953 , and will mature December 2k, 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/gfomcbnnfl time, Monday, September 21. 1953 t

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders

the price offered must be expressed on the basis of 100, with not more than thre
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 b
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 comr>anios and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
Information Service

WASHINGTON!PC.

RELEASE MORNIWG NEWSPAPERS,
Thursday, -September 17, 1953.
1

• « * * — - II

» . — •.. —

»••• «. immU;mmmmmmmM\i,

,i i>»."«fijl' i | W " " »

• •> ,i i

•

106
H-257

iiwnr.u-

The Treasury department, by this publiaano;tiee,; invites tenders
for $1,500,000,bOOV;;pr.thereabouts,of 91-dayaTrea'^ury bills, for
cash and in exchange;'fpr Treasury bills maturing September 24, 1953,
in the amount' of • |l,'5'6b, 229,000, to be issued'on-a discount, basis
under competitive/arid "non-competitive bidding as hereinafter.1..^
provided. The bills'Vof this series will be dated September 2k,':
1953, and will mature'December 24, 1953, when1- the face amount "will
be payable without, Ir^erest, They will be Issued in bearer form.
only, and in denominations of $1,000, $5,000, $10,000, $100,000,J
$500,000, and $1,000,000 (maturity valaie).
'. .;
Tenders will be''raceived at Federal Reserve Banks and Branches
up to the closing', hourk two o'clock p.m.,. Eastern Daylight Saving
time, Monday, September ..$1," 1953. Tenders1 will not be received, at
the Treasury Department,;:,Washing ton. Each tender must.be for'an-,
even multiple of; 11,000, ^'.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 ,ur^Qd ;that tenders be made on the printed forms,and.-,
forwarded -In'ttie1,special envelopes which will be.'supplied by, •:-. ".-'rFederal Re serv^B&hks.,. or Branches on. application' therefor.". , 'Z^X
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 accompanies 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 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
atbids.
the
average
price
(inor
three
the
decimals)
tenders
Federal
inof
accordance
Reserve
accepted
Bank
with
competitive
on the
September
bids
must
24,
be
Settlement
1953,
made
in
orcash
completed
for
accepted
other
at

- 2 immediate^ available funds or in a like face amount of Treasury bills
maturing September 24, 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 bu£- shall be exempt from all taxation how 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

TECHNICAL ASSISTANCE BOARD

Reference: MAli-10/Add*l
3C June 1953
RESTRICTED

Request Tor Technical Assistance
Under the Expanded Programme
ADDENDUM
The Executive Chairman has been informed by PAO that the services of
Mr« Thomson, expert on agricultural marketing, are to be extended toto 1954*
H UMHUtiM

<fw^-^-~*y

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"v y^AX

j^^^^.„^^

The Treasury Department today made public a report of monetary
gold transactions with foreign governments and central banks for
the second quarter of 1953* Gold sales by the United States in this
period were $128.2 million, compared to sales of $599*1 million in
V
the first quarter. Sales in the first half of 1953 totaled
7
$jp27«3 million.
In the twelve months ended June 30, 1953, net sales of monetary
gold by the Iftiited States totaled $996*6 million. That figure
contrasts with net gold p]3rchasjss by the United States totaling
y
$1,670,1 million in the preceding twelve-month^ period ended June 30,
1952.
The gold movement during July and August 1953 continued to be
an outflow from the United States. Sales in the two months, which
ss- not yet available on a country-by-country basis, were $172*4
.

million and $78*6 million, respectively,
A table showing sales by country in the first two quarters of
calendar 1953 and for the two fiscal years (ended June 30) 1952
and 1953, is attached.

TREASURY DEPARTMENT
Information Service

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

m-.. L KJ

RELEASE MORNING NEWSPAPERS,
Friday, September 18, 1953.

H-258

The Treasury Department today made public a report
of monetary gold transactions with foreign governments
and central banks for the second quarter of 1953. Gold
sales by the United States in this period were
$128.2 million, compared to sales of $599.1 million in
the first quarter. Sales in the first half of 1953
totaled $727.3 million.
In the twelve months ended June 30, 1953, net
sales of monetary gold by the United States totaled
$996.6 million. That figure contrasts with net gold
purchases by the United States totaling $1,670.1
million in the preceding twelve-month period ended
June 30, 1952.
The gold movement during July and August 1953
continued to be an outflow from the United States.
Sales in the two months, which are not yet available
for publication on a country-by-country basis, were
$172.4 million and $78.6 million, respectively.
A table showing sales by country in the first
two quarters of calendar 1953 and for the two fiscal
years (ended June 30) 1952 and 1953, Is attached.

1HQ

UNITED STATES GOLD TRANSACTIONS WITH FOREIGN COUNTRIES

mm. \mt Km*

(in millions of dollars at $3$ per ounce)

Country

Negative figures represent net sales by the
United States; positive figures, net purchases#
2nd
1st
Quarter
Fiscal Year 1953
Fiscal Year 1952
Quarter
1?53*
(July 1952-yune 1953) (July 195l~June 1952)

Afghanistan . . . .
Argentina . . . . .
Be7.2i.um ,
BeL£j.an Congo . . .
Canica . . . . . . .

•

—

. -$54.9
- -36,5
•

—*
—

Chile . .
Colombia
..... .
Cuba
Deninark
.
Dominican Republic .
Egypt
Finland .
.
Fiance
...... .
Germany . . . . . . .
.
Greece
Indonesia
Lebanon . . . . . . .
Mead, co
.
Netherlands . • • . .
.
Norway
Portugal . v . . . .

Total

-3,4
-

-$?4.8

-02.5
-

••63,9
-2.0

20,2

-3

6,9

2>0

-3.5
-

-13.2

-19,2
-20.0
-'4.2
-•1,0

-3.5
-

-20.2

—

-31.0

-4.8

-30.0

-1.0
-28.1
~25»0
-5.0
-15.0

mm
Salvador
. -10,0
Sweden
Switzerland . . . . . -20.0
Switzerland-Bank foi*
Int*l Settlements - -23.5
Syria
.

South Africa .
Turkey
....
United Kingdom
Uruguay
Vatican City .
All Other

-$20oO

^
. .
.. .
-3.3
• • . -320.0
. -10.0
.. •

-10.0

-5o.o

tmn

-1.1
-

-15.0
—

-2.8
-53,1
-125.0
-5.0
-34.9
M.

-IOOO

71.6
-

-\6,k
-6,7
112.7
—
-

-30,0
-4.0
-17.0
22.5

~*25.0

-45.0

-8.8

-34.5

5-8

-1«0

-3.3

^
-

-i|0,O
-5.0
-

-.2

-.1

-$599.1

-$128.2

„,

-1,2
-440.0
-10.2
-

-$996.6

51.0
-

1,469.9
68.0

5.0
2.6
51,670.1

* There were no purchases of monetary gold by the United States in the first half of
1953.
Some figures may not add to totals because of rounding.

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TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, September 22,1953.

111

H-259

The Treasury Department announced last; evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated September 24 and to mature December 24, 1953, which were offered
on September 17, were opened at the Federal Reserve Banks on
September 21.
The details of this issue are as follows:
Total applied for - $2,150,175*000
Total accepted
- 1,500,148,000 (includes $286,901,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99=587 Equivalent rate of discount approx.
Range of accepted competitive bids: 1.634$ per annum
High

- 99.596 Equivalent rate of discount approx.
1.598$ per annum
Low
- 99^575 Equivalent rate of discount approx.
1.681$ per annum
(72 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
$
23,728,000
1,554,267,000
35,318,000
46,090,000
25,106,000
25,592,000
207,584,000
36,676,000
15,873,000
73,835,000
24,393,000
$2,150,175,000
80,713,000

Total
Accepted
23,428,000
997,507,000
19,618,000
43,220,000
24,906,000
24,242,000
167,034,000
36,662,000
16,045,000
56,865,000
23,393,000
$1,500,148,000
67,228,000

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A prosperous nation—which means continuing high
levels of employment and production—can only he assured
by sound money, for prosperity that is not solidly based
oa sound money Is Illusory, fleeting and sure to end in
disaster. We shall continue to press resolutely
toward our goal of high employment and sustained prosperity.

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- 15 ~
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My crystal ball is no bigger or brighter top f m m u

Indeed

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in this room la far superior to anything we knew. We mm moat
anxious to learn from yfeu. A t decline ia the stock market ia
heralded by massy as m sure sign of disaster.

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- 14A Insert in Secretary's speech, to he read
hut not Included In press copies

I want to express here our very deep appreciation of
the time, effort and advice which %m always at our c<
and given to us f re^uentiy'hylEil f Ine>€ommrtt ee s of your
organ!gationgandor she chairmanship 'Of MrT
"•and, Mr,

******

. The members of these committees

have even given their vacation time this summer—taken long
trips many times

mimA

difficult decisions.

"* ~~'riT^Tlito

M A

very

We are most grateful to them.

also want to mention how very JkWaw^- sorry I am
to have^missod slninkjragIIIMTOO wfttih mariy of you people and
your wives at the reception at the Gallery Sunday.
There was quite a crush, and I am sorry to have missed
/

many of you.

\^^%m^L>*e>^A/

However, I hope to seeTlMssv^f you In

person at the various functions which are going on this
week.

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- 9fII FEDERAL RBS1RTB SYSTIW
fhe second pillar of sound money Is a properly
functioning Federal Reserve System, fhls is another way of
saying effective monetary policy, the balance between the
money and credit supply and the actual flow of goods in
commerce Is best maintained by letting the price of money
rise and fall with the demand for money.

At the same time

our Federal Reserve System can and should use Its powers
to keep the market for credit orderly and to avoid excesses
In either direction, to avoid either inflation or deflation.

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- 4 -

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- 2 ~
dur goal in each of these areas is clear. If we have not
achieved our goal overnight, it Is not only because of the size
of the Job itself but also because we realize that our economy
is a very sensitive mechanism and we must proceed carefully,
but always steadily, toward the goal we seek, foo drastic
and precipitous action might react badly in many ways. We
must approach our objective cautiously but resolutely and
always press toward it.
fHE BuDOET
fhe first pillar--and one which we have already made
substantial progress in strengthening—is the budget pillar.
As you gentlemen well know, deficit financing—that Is,
spending more than you take in—means more and more borrowing
and debts which In times of high employment and incomes lead
to inflationary pressures and unsound money. When a government spends more than It takes in, It has to borrow to pay its
bills. When a government borrows from the banks, it creates
more credit, increases the money supply, and thus helps
cause inflation. This is what we are trying to check.
fhe midyear review of the 1954 fiscal budget showed some
real progress being made In getting the budget in hand.
Estimated expenditures have been reduced by nearly $6^
billion under the spending estimates this administration
found upon taking office In January,

In addition, income was

overestimated by more than a billion dollars. So that the
prospective deficit »rXKXIXX$XXX»IXXXSX has really been cut from
over $11 billion to less than $4 billion.

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TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

Address by Secretary of the Treasury Humphrey
before opening session of the American Bankers
Association, Constitution Kail, Washington, D.C.,
about 10:00 a.m., Tuesday, September 22, 1953
THE THREE PILLARS OP SOUND MONEY
The decision of the American Bankers Association to hold this
year's convention here in Washington, was made at your sessions
three years ago. Many things can happen in three years and many
things have happened. A new Republican Administration is here
and I as Secretary of the Treasury wish you a warm welcome.
You have done and are doing a magnificent work in assisting the
Treasury particularly in the distribution of Savings Bonds.
Nothing is more important in the Treasairy's plans and few things
are of greater significance in our whole economy. We thank you and
rely upon your further intensified efforts.
Since you as bankers are concerned intimately every day with
the money problems of this nation, I am going to take the liberty
this morning of talking for a few moments about what this
Administration is trying to do to achieve sound money. I say sound,
not hard but honest money.
Sound money is based upon three principal pillars--a proper
budget policy, a properly functioning Federal Reserve System, and
proper debt management. This administration is working constantly
to strengthen all three pillars. Our goal in each of these areas
is clear. If we have not achieved our goal overnight, it is not
only because of the size of the job itself but also because we
realize that our economy is a very sensitive mechanism and we must
proceed carefully, but always steadily, toward the goal we seek.
Too drastic and precipitous action might react badly in many ways.
We must approach our objective cautiously but resolutely and
always press toward it.
H-260

1 It
- 2 THE BUDGET
The first pillar--and one which we have already made substantial progress in strengthening--is the budget pillar. As you
gentlemen well know, deficit financing--that is, spending more than
you take in--means more and more borrowing and debts which in times
of high employment and incomes lead to inflationary pressures and
unsound money. When a government spends more than it takes in, it
has to borrow to pay its bills. When a government borrows from the
banks, it creates more credit, increases the money supply, and thus
helps cause inflation. This is what we are trying to check.
The midyear review of the 195^ fiscal budget showed some real
progress being made in getting the budget in hand. Estimated
expenditures have been reduced by nearly $6J billion under the
spending estimates this administration found upon taking office in
January. In addition, income' was overestimated by more than
a billion dollars. So that the prospective deficit has really been
cut from over $11 billion to less than $4 billion.
Eighty-one billion dollars of C.O.D. orders which were placed
by the government from one to three years ago will come due in the
next year or two and must be paid for. These inherited obligations
make it impossible to balance the budget overnight, but even these
forward obligations will be cut this year by more than $9 billion,
according to present planning.
As our midyear budget review showed, we have turned the corner
in attempting to get our government's finances in hand. For the
first time in the past few years vie are planning to spend less
this year than in the year before. The sharply rising curve in
Federal spending has now turned downward. This is a very encouraging
development, if we can reach a current balance in our cash income
and cash expenditures by the end of this fiscal year, it will be
much better than we had dared to hope for six months or so ago.
The budget review we announced a month ago also is a turning
point because for the first time since 19^8 we have total
appropriations which are less than estimated receipts for the year.
This points to future reductions in both spending and taxation.
For this encouraging start, the Administration is deeply
indebted to the Congress and to the various departments and agencies
of government for their wholehearted cooperation. Unless some
unexpected event arises which substantially changes the need for
money, we believe that we are finally on our way toward getting the
budget under control. Of course, this is all based upon estimates-estimates which we hope are realized--but this business of estimating how much the government is going to take in and pay out has
a great many pitfalls.

- 3-

Estimating a year ahead in a business this size is more than
risky and a small percent of error in our huge figures can mean
the difference of a great deal of money.
For instance, over 70 percent of our expenditures are for
national security programs, and even a relatively small estimating
error can mean hundreds of millions of dollars. For these
programs alone we are spending about a billion dollars a week.
There are other programs, too, where the relative margin of error
is even greater than it is for the military, although there may
not be so many dollars involved. Take the Commodity Credit
Corporation for example. In order to figure its net outlays in
advance you have to not only estimate the size of the various crops
but also just how the farm price support program is going to work
out in the year ahead and, even more important, how much of it
will be handled by the banks instead of the Treasury. In the last
fiscal year (1953) the budget estimate was about $800 million for
Commodity Credit but when the year closed it actually turned out
to be about $1 billion more. That is just one illustration. There
are many, many others.
Every banker knows that the matter of estimating budget
expenditures is further complicated by the necessity for estimating
the distribution of those expenditures from month to month—and
even day by day in some instances--and preparing to have sufficient
funds on hand to be able to meet current requirements. You all
appreciate that that is why we cannot ram our cash balances too
low--a point we made in the debt limit discussion. It is sometimes
hard to realize that if our cash runs down too much, a few days of
unexpectedly heavy expenditures, or an unpredictable shift of
a few days in tax receipts, might easily force the Treasury to do
borrowing at a time when conditions in the money market were not
propitious or in amounts that might substantially exceed our
estimated borrowings. Every banker knows that some real elasticity
in such circumstances is only prudent management. That was the
basis for our request for raising the debt limit.
We were not seeking to remove any limitation on or deterrent
to greater spending. We have demonstrated, we hope, to everyone
our insistent interest in and demand for economy and getting our
money's worth, but because we are responsible for the government's
fiscal policies we must have the elasticity required to plan them
in the best way. The operation of the Mills Plan, with which you
are all familiar, requires the payment of 90 percent of the
corporate tax money in the first half of next calendar year. In
accordance with the practices established by our predecessors when
the plan was first inaugurated, tax anticipation notes in the amount
of several billion dollars must be issued in the last half of the
makes
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- 4The great and really important reason, however, why it is most
difficult to cut expenditures radically and bring both a balanced
budget and a tax reduction into quick being at the same time
relates to our national security. Without due consideration for
it, the rapid reduction of expenses would be comparatively easy.
But with the real possibility of an atomic pearl Harbor hanging
directly over our heads, and
with the knowledge of the Russian
capability to produce an even more potent weapon, national security
is a matter of first concern.
I do not mean that hope of reduction in expenditures and taxes
must be abandoned. Quite the contrary. But the necessity for
caution and planning and assurance that reductions are justified
before they are made is paramount. A balance between our military
and our economic security must be achieved. The ability, the
ingenuity, the management, planning and experience of all Americans,
under the present able leadership of our Defense Department, I am
sure will devise and provide means of accomplishing stronger defense
for less money as times goes on, We cannot move as rapidly as vie
would like, but our course is plain, our objective is definite, and
we will achieve it with only the time necessary to be sure of the
safety of our actions as we move toward it.
THE FEDERAL RESERVE SYSTEM
The second pillar of sound money is a properly functioning
Federal Reserve System. This is another way of saying effective
monetary policy. The balance between the money and credit supply
and the actual flow of goods in commerce is best maintained by
letting the price of money rise and fall with the demand for money.
At the same time our Federal Reserve System can and should use its
powers to keep the market for credit orderly and to avoid excesses
in either direction, to avoid either inflation or deflation.
In the years preceding the March 1951 accord, the Federal
Reserve System, under Treasury domination, contributed substantially
to inflation by artificial manipulation of the value of government
securities. During and after World War II, the Federal Reserve
System lost much of its independence. It was used by the Treasury
to raise unprecedented amounts of money, and during the war this
requirement completely overshadowed monetary policy. As long as the
war was on and government controls kept wages and prices pretty
well in line, there wasn't so much trouble. But when in 1946
direct controls were removed without also concurrently releasing
the Federal Reserve, the excesses of the war years brought
inflation and hardship to millions of Americans.

1 1Q

- 5-

m*. KM- Km>

in the years from 1946 to 1951* the Federal Reserve was
a prisoner of the Treasury policy in handling the national debt.
Instead of allowing the natural increases in interest rates, the
Federal Reserve focused major attention on making sure that the
Treasury could handle the debt at low rates. This was not in the
best interests of the country as a whole. It resulted in the
absence of effective monetary policy until the accord of March
1951.
As you gentlemen well know, the March 1951 accord partly
restored effective monetary policy to its rightful place in our
economy. It laid the groundwork for the policy which the present
Administration is pledged to continue.
I should also note that the Federal Reserve System has no
"hard" money policy. It is a good money policy. It is free to
allow the demand for money to have its normal and natural effect
and to supply funds to keep pace with normal growth. It believes
as we do that good money makes good times.
DEBT MANAGEMENT
The third and final pillar is proper debt management. As of
the moment our debt is more than $273 billion--which is a terrific
amount of debt. The manner in which this debt is handled--that is,
maturing issues refinanced and new issues placed--has a very
substantial bearing upon the well-being of our nation's economy.
Nearly three-quarters of this debt matures within less than
five years or is redeemable at the holder's option. One of the
things we are trying to do is to extend that average maturity
gradually.
We took a first step in this direction back in April by
putting out a 30-year bond at 3i" percent. That rate was higher
than the rate for previous Issues, but it reflected the going rate
at the time of the issue as determined by the daily current market
purchases and sales of outstanding government securities. Earlier
this month we had an encouraging response to a proposal which
allowed a choice between one and 3i-ye&r maturities in refinancing
an issue of $7-9 billion. About $3 billion of the total exchanged
was voluntarily placed in the longer term security.
It is our firm intention to offer more intermediate and
long-term issues at opportune times in the future. We will use
care, of course, not to press the market in competition with
state, municipal and private financing which is at a peak of demand
at the present time.

- 6-

1 Q7
-L

KJ I

Too rapid movement on our part at this time in crowding into
this market and increasing the already enormous demand for longer
term funds might very well still further unduly press up on the
interest rates for all loans and even deny many other governmental
and private borrowers an opportunity to obtain the necessary funds.
It is also our.goal to move at opportune times a portion of
the debt out of the banks into the hands of private investors.
Randolph Burgess, who is known to most of you and who is the
Treasury's chief officer in this matter of debt management, will
talk to you in more detail and more scientifically, I am sure,
tomorrow about this very Important subject. Before I leave it,
however, I wish to make known to you my very great appreciation
for the work that Mr, Burgess is doing not only for the Treasury
but for the whole country in his very intelligent, patient and wise
counsel in this very difficult matter of handling our public debt.
THE CURRENT OUTLOOK
Now I want to say just a word about the current outlook. My
crystal ball is no bigger or brighter than yours. Indeed the
composite knowledge from so many localities represented in this
room is far superior to anything we know, we are most anxious to
learn from you. The decline in the stock market is heralded by
some as a sure sign of disaster. I cannot believe that that is so.
It may well be that, as the fear of inflation declines, some
switching is taking place from stocks to bonds or cash which the
holders have not dared to make during the past period of growing
inflation. It may also be that there is some fear of declining
earnings as certain supplies more nearly approach demand and goods
become available. That is nothing to shiver about. In our great
and growing economy some adjustment is constantly going on.
Wherever adjustment is required, let's face it with confidence
and get at it.
I do not believe in blind faith. If trouble is possible, just
the opposite is indicated. Keep your eyes open. Seek out the
soft spot and see what can be done about it. For over two years
now, from quarter to quarter businessmen have been expecting and
predicting some downturn. It has not materialized in many lines
because government and private spending has been increasing faster
than new productive capacity came in. Government spending now
appears to be on the road to reduction. That is what the American
people want and demand. Bait in spite of all we can do and all the
savings we can make, a relatively small reduction is the most that
we can hope to accomplish--quickly. That means that there will
still be a tremendous amount of money to be currently pumped into
the economy. And furthermore it is the definite policy of this
Administration, through tax reductions, to return to the people for
them
spending
to spend
whichfor
canthemselves
be reasonably
all anticipated.
the real savings in government

138
- 7As I promised at the time, the excess profits tax will expire
on December 31st, and there will be no request for renewal. At the
same time an average of 10 percent reduction in individual income
taxes is scheduled to go into effect, and it will become effective.
Many further adjustments in taxes are now under consideration by
the Ways and Means Committee and the Treasury for submission to
the next Congress.
The great additions to producing capacity in several lines
which have been stimulated by government action over the past
few years are now becoming available. Trie volume of goods we can
now produce is far greater than ever before. Lower levels of
operation in some lines will develop more material than we have
ever had, and it may well be that in some cases this output may
be all that the country needsfor awhile. Bait does this mean
catastrophe? Our volume of production and employment can be
higher than ever and we may still have some capacity in reserve.
High volume but good supply--that means competition, efficiency
and more value for the consumer's dollar. Surely we have not
deteriorated in this country so that all we can see is calamity if
the day of allocations and the order-taker is passing and we again
have to develop a salesman.
It cannot be that Americans can fear a free competitive
economy. That is what we have thrived on. That is how we grew
great. The necessity for a little more active selling never hurt
anyone. A little more quality, a little more value for the
customer has given us the best merchandise in the world. A little
more production from the same amount of human effort through
organization, management, ingenuity and Invention, labor power and
tools has given us higher and higher standards of living. Surely
we are not fearful that we cannot do it again. It is the American
way. Bankers, too, can do their part, You too can and should
look forward with confidence. Your service can be improved. You
can do that little extra for your customer to help him do his share.
And if we all do all we should, America will march forward on
sounder ground that we have had under our feet for some time.
I can assure you that this Government is dedicated to the
maintenance of a high level of employment and production, and
it will pursue policies to foster that end.

CONCLUSION
I have described what I consider to be the three pillars of
sound money. They are familiar to all of you. They are
objectives which we have pursued and will continue to pursue
diligently in the months ahead. The achievement of sound money is
one of the most important charges placed upon this Administration,
It is important because sound money lies at the very base of our
national existence. Sound money is fundamental for saving and
the creation of jobs.
Because Americans have saved, we have developed our national
resources. We have the scientists, the managers, and all the
people who make possible the production of complicated machinery,
the people who build and work in factories, the farmers who have
put modern equipment to such great use, the technicians, mechanics
and workmen who have made our great ppwer plants and transportation
systems possible. All these things and the employment they provide
would not have been possible if the savings of the people had
not been available to finance them.
Then why have these millions of people saved and what must
we do so that they will keep on saving? Sound money is an
essential to keep people saving money. Without assurance in the
worth of their money in the future, as well as the ability to
obtain a fair rate of income on it when it is saved, people are
either going to save less or not at all. No one will save if he
fears that the money he saves will be worth less and less as time
goes on or may even become worthless entirely.
The great productive power that is in a pair of American hands
today rests in the fact that Americans have saved. With sound
money, Americans will keep saving and make possible further
investments which will develop more employment and even greater
and better things for a more fruitful life for all.
Our national security is also involved. Sound money is of the
utmost importance to It. Without sound money and without the sound
economy that sound money produces, the great productive power of
America will deteriorate, and it is America's productive power
when mobilized that has won two wars and now provides the greatest
deterrent to aggression throughout the entire world. Sound money
is the basis for both our economic and our military security.
Sound money is essential for the future of America.
A prosperous nation--which means continuing high levels of
employment and production--can only be assured by sound money, for
prosperity that is not solidly based on sound money is illusory,
fleeting and sure to end in disaster. We shall continue to press
resolutely toward our goal of high0O0
employment and sustained
prosperity.

- 18 -

encouraging and not impairing the steady, forward growth of the countiy's

activity*

It is our belief that a sound debt policy will itself make for
greater confidence, stimulate enterprise, and contribute to the well-

being of all the people.

We can do no better at this time than to recall the words ©f George

Washington in his Farewell Address s
,!

As a very important source of strength and security,
cherish public credit. One method of preserving it is to
use it as sparingly as possible; avoiding occasi©ns of
expense by cultivating peace, but remembering also that
timely disbursements to prepare for danger frequently
prevent much greater disbursements to repel it; avoiding
likewise the accumulation of debt, not only by shunning
occasions of expense, but by vigorous exertions in time
of peace to discharge the debts which unavoidable wars
may have occasioned, not ungenerously throwing upon
posterity the burthen which we ourselves ought to bear."

y3o

SUMMARY
^

!Ehere is every reason to look forward with confidence to this
country1 s ability to put its financial house in better order without

any serious disruption of credit or markets. The stream of the Nation*s

savings is huge — larger than ever before; the credit base is secure;

the banking system is sound. With a reasonable assurance of sound, honest

money^ of stable buying powerjt there is no better investment than securit

of the United States Government* The banks, Insurance companies, and other
financial institutions, businesses, and individuals have shown both their
capacity and desire to cooperate with their Government in this effort*
The speed with which the National debt can be re-distributed will
have to depend on the rate of the flow of savings; the pressure of demand

for funds from other sources; and the state of the money market. Torn
can,t force free markets, and the Treasury has no intention of doing so*
It took a long time, a huge war, and a huge defense program to get us

where we are* It will take time to re-adjust.

In this process we shall always have as our objective, sound money

and economic stability, avoiding either inflation or deflation, and

m» J L Q **

other financing is lighter*

Lengthening the debt can apply to the banks, too, as well as to

nonbank investors* In 1939, before World War II, the average maturity

of Governments held by the banks was nine years* Today, it is three
years•

The Government debt would be more orderly; the dangers of inflation
and deflation would be reduced; the risk of interfering with the steady

flow ©f funds into productive use would be less, if the bank-held Government debt were smaller and better distributed over a period of years*

The experience of the September refunding offers hope that, under
suitable conditions, this can be brought about*

*m l ^ «*•

Ja) Government trust funds are absorbing $3 billion a year of

Government securities •** a large part of which may be con-

sidered long-term funding, such as *U'u uaud in pension and

insurance funds*

(b) State and local governments buy about three quarters of a

billion a year of U* S« Governments, about half of it for
pension funds*

(d) Insurance companies and savings banks are potential buyers
at present yields*

(e) Individual buyers of Savings Bonds have this year, been
buying more E and H Savings Bonds than they are cashing in*

We believe, with your cooperation, these sales can be in*»

creased substantially©

A steady flow of funds such as these will, over a period of years,

absorb substantial amounts of long-term bonds, especially at times when

*» 14 m

LOOKING AHEAD

The steps taken so far in funding the debt hardly show in the totals*

With this huge debt, getting shorter day by day, you have to run fast to

keep even* In 1954, we shall still have to refund a quarter of the debt*

But it is not as bad as it looks©

First, the budget picture is greatly improved© The newly released

figures discussed yesterday by Secretary Humphrey mean that there is real

hope that we may be nearly through with raising cash to finance a deficit*

Without new cash to raise, we and the market will be freer to deal with
refunding©

Second, the market has now shown evidence that it has weathered a re-

adjustment to higher yields and is able to stand on its own feet without

price props©

Third, experience shows us that, over a period, there are substantial

amounts of funds available for investment in U* S© Government long-term

bonds at fair rates© Let me name a few sources*

— 13 *•
As it is, the few steps we have taken toward spreading out the debt,

together with other pressures for funds and the Federal Reserve policy of

mild credit restraint, have caused some jolts and bumps in the market*

Some of these have been unpleasant, particularly for holders of long-term

Government bonds, who have seen the prices of their bonds depreciate in

the market* Most holders, including bankers, have taken the price change
in good spirit and with understanding, as one of the normal risks of
investment*

Fortunately also, the adjustment t© freer markets and more realistic
rates was begun several years ago and especially since the accord reached

by the Federal Reserve System and the Treasury in theJJpring of 1951* For
example, the longest 2-l/2i bonds were selling above 106 in April 1946;

k& *a*»r

they were down to 95 in January 1953, dropped ^

90 early in June and are

now back up above 93ty
You can't move from an inflationary financing policy to a sound one

without some readjustment* The abflaeMvs of ^ound, honest money cannot

be achieved without paying some price, and it is worth the price.

- 12 -

The only other substantial pool of non-bank funds was In the hands

©f corporations and other non-bank, short-term investors* We provided

securities which would attract that money in the form of Treasury bills

and tax anticipation certificates*

The net result wasA that we tga&a able to P»i&»-4lQ Mili<m of-new
w$m^mhmr*£mr this year/without aoy net increase in bank holdings of

Government securities and, hence, without any increase in inflationary
pressures due to that cause*

From time to time the banks have been most helpful in the initial
sale of new issues both through their own purchases and handling purchases

for their customers* Steady absorption of bills and certificates by business
and other buyers hay, balanead bank l^yiag>. -

In addition to the financing for new money, a short and modest step

has been made in stretching out maturities in refunding issues by giving

holders a choice between one-year and somewhat longer maturities* We should

have liked to have moved further in this direction, but market conditions

did not justify it*

-11 -

to buy a properly priced long-term Government bond© We, therefore, offered

such a bond in April at the going market yield, which was the lowest yield
i

at which it could be sold •*• 3**l/43U The bond was substantially over-

subscribed but, for two and a half months after its issuance, dipped below

par due to a variety of causes, including especially the huge volume of new

financing by corporations, states and municipalities, which put in the market

#7 billion of new securities in the first six months of the year — a larger

amount than ever before* The 3-1/4 bond has now regained a satisfactory
position In the market*

^h respeetHrottre"^^

pension funds wh4cja have legal requirements as to earnings, show an average

required rate of 3«20 percent© F©r insurance companies the)rate required

to maintain policy reserves is 2-3/t 4gi-3^» A 3~l/4# bond is thus an
appropriate permanent investment for these types^aC funds©

^y' \
let me reiterate that It was the going* market rate for that maturity
yf: '^ .
,^y

- •.<*&*„.

am 1 0 *"*

In the judgment of the Federal Reserve System, there were still in-

flationary pressures; the Reserve Banks raised their discount rates early

in the year and the System was pursuing a general policy of credit restraint*

What this all added up to was that the Treasury ought to finance its

deficit and handle its refunding in such a way as to avoid an increase in

bank credit through our operations© This meant financing with securities

that could stand on their own feet without Federal Reserve support and which
would be taken largely by non-bank investors©

Accordingly, we made an analysis of the availability of funds© We
were greatly aided in our study by a nation-wide committee of the American

Bankers Association, a similar committee of the Investment Bankers Association, and committees representing the savings banks, life insurance companies!

and by other groups and individuals©
•——i

It was clear from this analysis that there were two pools of funds which

we could draw upon outside the commercial banks© There was a limited amount

of long-term money available in the hands of insurance companies, savings

banks, pension funds and other private and institutional investors prepared

to make sure that our operations would stimulate neither inflation nor

deflation© This meant, in fact, deciding our policy in cooperation with

the Federal Reserve System, whose duty it is under the law to administer

the money supply with these same objectives©
By any objective test, the country was at or near the top of one of
the greatest booms America had ever known© The production index ©f the
Federal Reserve Board was making new high peacetime records month by month
and was 10 percent higher than the year before© The national income measured
in inflation dollars was steadily climbing and was $20 billion larger than

a year ago©
There was full and overtime employment*
Private bank credit was still rising, particularly in the fields of
consumer credit and real estate credit, in a way that was giving concern

to many careful students* Heavy deficit financing faced us, and direct

controls were being lifted©

The principal offsetting tendency was weakness in some agricultural

prices, due to large crops and diminished exports*

mm Q mm

it has no elbow room to turn around; it is constantly off balance and
c^uyjLA^^K^-9^^'

keeps the market off balance*

Even worse, a )amfaMaf stream ©f Treasury

borrowing leaves no space in the market for the Federal Reserve System

to operate, when it needs to make a policy move to resist inflation*

The Reserve System cannot serve two masters at the same time; it can't

lend necessary aid to Treasury financing and, at the same time, tighten
money to check inflation in the broad public interest*
The amount, the character, the placing, and the timing ©f public debt
moves add up to pressure for inflation or deflation. We want to avoid bothc
The second great principle of debt management is that it should aid
and not impair the dynamic growth of the economy* It must not interfere
wJTSft the flow of funds Into business enterprise*

Its policies should en-

A
courage saving, for saving provides the capital basic to economic growth*

OPERATIONS II 1953

In accordance with the foregoing principles, our problem in 1953 was

not just one of finding out what securities the market would take at what

rate, but it was also one of making an appraisal of the economic situation

(

marketso The national debt is woven into every corner of our economic life©

What can be done with the debt depends on the stream of incomes and expendi-

tures and savings and investment© And, in turn, what is done with the debt

has a vigorous impact on the whole financial life of the country and on the

welfare ©f all the people©

Therefore, debt management cannot be conducted in a vacuum but is re-

lated to the country's economic life© And I suggest that there are two great
principles which form the objective and the framework for decisions on the

debt©

The first is to avoid inflation or deflation© That means to manage the
debt in the interest of sound, honest money which retains a fairly stable
buying power© That apparently simple statement covers a lot of territory©

It is shorthand for a seething mass of operations by which the Treasury pump

money out to pay its bills «~ takes money out of the market as it collects

taxes and borrows, dealing each time with thousands ©f banks and millions

of individuals©
If the Treasury has to borrow money too often in the course of a year,

**» o *•

A substantial part of the Inflation, which doubled the price level

and cut the buying power of the dollar in half in 13 years, was due to

financing too much of the debt at short-term through the banks and so

creating bank credit, in effect, printing money© The total money supply,

currency and bank deposits, swelled from less than $65 billion In 1939 to

#195 billion in December 1952© This printing press operation doubled the

price level —<* the cost ©f living — more than doubled the price ©f a

house -of a piece of beef or a suit of clothes o Every person in the
country was hurt in one way or another and especially people who saved or
who lived on fixed or sluggish incomes© The only gainers were the specu-

lators or the pressure groups which kept their own incomes a jump ahead of

the trend©
These facts, with which you are all familiar, were the reasons for

the President's program of debt management©

TWO PRINCIPLES OF DEBT MANAGEMENT

Now a few words as to the framework in which debt management operates*

It is not just a mechanical problem, nor is it just a problem of finding

• 5gradually placing greater amounts in the hands of longer-term
investors©
tt

* * * Past differences in policy between the Treasury and

the Federal Reserve Board have helped to encourage inflation©

Henceforth, I expect that their single purpose shall be to

serve the whole Nation by policies designed t© stabilize the

economy and encourage the free play of our people's genius for
individual initiative. * * * «

FACTS
The facts of the shape ©f the debt are a matter ©f public record©

In 1953, the Treasury has had to finance maturities and redemptions

of over |60 billion and a deficit ©f $9 to #10 billion© Thus, a sum equal
to one-fourth of the national debt had to be financed in a year© Before

the end of the year, we shall have gone to the market, eithe* for refunding

or raising cash, nine times, exclusive ©f weekly offerings of Treasury bills

Nearly three-quarters of the debt matures, either definitely or

optionally, within five years©

mm t%. *-

Also, our ability to carry the debt depends on growth© If we

nourish a dynamic economy of free men, so that our strength grows

steadily and surely, the debt won't seem as big© That is the lesson of

history©

There is a third course -** te inflate — to so increase the national

income by price inflation that the debt seems relatively smaller© That

Is a form of partial repudiation, a reduction of the real value of our

bonds and our money© That is what has been done —•* and what we are

stopping© We want growth and not inflation©
Meantime, before we reduce the debt, we have to live with her©
THE PROGRAM

In his State of the Union Message on February 2nd, President

Eisenhower, in dealing with the national debt, said:

« * * * it is clear that too great a part of the national debt

becomes due in too short a time© The Department of the Treasury

will undertake <— indeed has undertaken — at suitable times a

program of extending part of the debt over longer periods and

— 3 *•*

Our public debt today is, in part, a symbol of a great war which we

and our partners won©

Almost everyone in this room is a holder of part of the debt in the

form of Savings Bonds or ©ther Treasury obligations© These bonds are

among our most prized and satisfying possessions© In this uncertain

world, they give us a sense of assurance and security© They may fairly

be called the world's best investment©

The interest paid on the Government debt is not just a cost to the

people; it is income to millions of individuals, either directly or through
life Insurance and savings accounts© When rates rise, the benefits as well

as the costs increase©
In candor we would admit, however, that, from a broad economic point

of view, the %ie«« of our present huge debt far more than offset its virtue

In the long run, the only real solution is gradually to reduce the debt*

That is the American way© We have always don© it before, and I believe we

will again© Until we live in a more peaceful world progress in this directs

will be slow though we have started moving in the right direction©

System©

—

That cooperation has been present in full measure this year©

I believe there is no finer body of devoted public servants than the

men and women in the Federal Reserve Board and Banks; they have proved

it once more, as they have worked with the Treasury in recent months©

For years, I have known the public debt, but in the past nine months,

since I became her slave, I have learned more of her trickso She is a

tough old bird to handle© She pokes her way into every cranny of American

life, and she goes around interfering with all sorts of people.

The public debt levies interest payments on every one of us as taxpayers. But her most serious misbehavior is the way she disrupts the flow
of our economic life when she gets out of hand. In the war, she and her

wicked economic side partners caused inflation, and, even since 1946, she

and they got out of control and put the cost of living up 35 percent. She

breaks into the money market and the investment markets and disturbs the

peace© She seems to be always under foot©

We should, however, remind ourselves that this character, like the

girl with the curl on her forehead, can be good as well as horrid©

The Treasury has a fine collection of p©rtraits of former Secretaries,
which are available to furnish its offices© When I moved into my historic

office, I asked for the portrait of Garter Glass, of Virginia, and he hangs

on the wall behind me, looking over my shoulder© If I can turn around and
look him in the eye without quailing, I am satisfied©
Garter Glass believed in sound money, vigorously, tenaciously, and,
at times, explosively© The Federal Reserve System, which he fathered, is
this country's best instrument for sound money, as Secretary Humphrey
suggested yesterday©

Carter Glass constantly reminds me of two principles©

One is that sound, honest money today, as always, is cherished and

promoted by distinguished men of both parties.

The other is that the Treasury's role in maintaining sound money can

be realized only in close and daily cooperation with a free Federal Reserve

TREASURY DEPARTMENT
Washington
FOE RELEASE ON DELIVERY
Address by W* Randolph Burgess, Deputy to the
Secretary of the Treasury, before the Annual
Convention of the American Bankers Association,
Constitution Hall, Washington, D. C , about
10:00 AM, Wednesday, September 23, 1953.
THE SHAPE OF THE DEBT

1 ZQ
TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY

Address by W. Randolph Burgess, Deputy to the
Secretary of the Treasury, before the Annual
Convention of the American Bankers Association,
Constitution Hall, Washington, D. C , about
10:00 a.m., Wednesday, September 23, 1953THE SHAPE OF THE DEBT
The Treasury has a fine collection of portraits of former
Secretaries, which are available to furnish its offices. When
I moved into my historic office, I asked for the portrait of
Carter Glass, of Virginia, and he hangs on the wall behind me,
looking over my shoulder. If I can turn around and look him in
the eye without qaiailing, I am satisfied.
Carter Glass believed in sound money, vigorously, tenaciously,
and, at times, explosively. The Federal Reserve System, which he
fathered, is this country's best instrument for sound money, as
Secretary Humphrey suggested yesterday.
Carter Glass constantly reminds me of two principles.
One is that sound, honest money today, as always, is cherished
and promoted by distinguished men of both parties.
The other Is that the Treasury1s role in maintaining sound
money can be realized only in close and daily cooperation with
a free Federal Reserve System,. That cooperation has been present
in full measure this year. I believe there is no finer body of
devoted public servants than the men and women in the Federal
Reserve Board and Banks; they have proved it once more, as they
have worked with the Treasury in recent months.
For years, I have known the public debt, but in the past nine
months, since I became her slave, I have learned more of her tricks.
She is a tough old bird to handle. She pokes her way into every „
cranny of American life, and she goes around interfering with all
sorts of people.
H-261

1 Pf)
mm.L> KJ

- 2The public debt levies interest payments on every one of us
as taxpayers. But her most serious misbehavior is the way she
disrupts the flow of our economic life when she gets out of hand.
In the war, she and her wicked economic side partners caused
inflation, and, even since 1946, she and they got out of control
and put the cost of living up 35 percent. She breaks into the
money market and the investment markets and disturbs the peace.
She seems to be always under foot.
We should, however, remind ourselves that this character,
like the girl with the curl on her forehead, can be good as well
as horrid.
Our public debt today is, in part, a symbol of a great war
which we and our partners won.
Almost everyone in this room is a holder of part of the debt
in the form of Savings Bonds or other Treasury obligations.
These bonds are among our most prized and satisfying possessions.
In this uncertain world, they give us a sense of assurance and
security. They may fairly be called the world's best investment.
The interest paid on the Government debt is not just a cost
to the people; it is income to millions of individuals, either
directly or through life insurance and savings accounts. When
rates rise, the benefits as well as the costs increase.
In candor we would admit, however, that, from a broad economic
point of view, the faults of our present huge debt far more than
offset its virtues.
In the long run, the only real solution is gradually to
reduce the debt. That is the American way. We have always done
it before, and I believe we will again. Until we live in a more
peaceful world, progress in this direction will be slow, though
we have started moving in the right direction.
Also, our ability to carry the debt depends on growth. If we
nourish a dynamic economy of free men, so that our strength grows
steadily and surely, the debt won't seem as big. That is the
lesson of history.
There is a third course--to inflate--to so increase the
national income by price inflation that the debt seems relatively
smaller. That is a form of partial repudiation, a reduction of the
real value of our bonds and our money. That is what has been
done--and what we are stopping. We want growth and not inflation.
Meantime, before we reduce the debt, we have to live with her.

- 3-

1 R1

THE PROGRAM
In his State of the Union Message on February 2nd, presidexnt
Eisenhower, in dealing with the national debt, said:
" * * * It is clear that too great a part of
the national debt becomes due in too short a
time. The Department of the Treasury will
undertake--indeed has undertaken--at suitable
times a program of extending part of the debt
over longer periods and gradually placing
greater amounts in the hands of longer-term
investors.
" * * * Past differences in policy between
the Treasury and the Federal Reserve Board •
have helped to encourage inflation. Henceforth, I expect that their single purpose
shall be to serve the whole Nation by
policies designed to stabilize the economy
and encourage the free play of our people's
genius for individual initiative. * * * "
FACTS
The facts of the shape of the debt are a matter of public
record.
In 1953^ the Treasury has had to finance maturities and
redemptions of over $60 billion and a deficit of $9 to $10 billion.
Thus, a sum equal to one-foairth of the national debt had to be
financed in a year. Before the end of the year, we shall have gone
to the market, either for refunding or raising cash, nine times,
exclusive of weekly offerings of Treasury bills.
Nearly three-quarters of the debt matures, either definitely
or optionally, within five years.
A substantial part of the inflation, which doubled the price
level and cut the buying power of the dollar in half in 13 years,
was due to financing too much of the debt at short-term through the
banks and so creating bank credit, in effect, printing money. The
total money supply, currency and bank deposits, swelled from less
than $65 billion in 1939 to $195 billion in December 1952. This
printing press operation doubled the price level--the cost of
living--more than doubled the price of a house--of a piece of beef,
or a suit of clothes. Every person in the country was hurt in one
way or another and especially people who saved or who lived on
fixed or sluggish incomes. The only gainers were the speculators or
the pressure groups which kept their own incomes a jump ahead of
the trend.
These facts, with which you are all familiar, were the reasons
for the President's program of debt management.

162
- 4TWO PRINCIPLES OF DEBT MANAGEMENT
Now a few words as to the framework in which debt management
operates, it is not just a mechanical problem, nor is it just
a problem of finding markets. The national debt is woven into
every corner of our economic life. What can be done with the
debt depends on the stream of incomes and expenditures and savings
and investment. And, in turn, what is done with the debt has
a vigorous impact on the whole financial life of the country and
on the welfare of all the people.
Therefore, debt management cannot be conducted in a vacuum
but is related to the country's economic life. And I suggest that
there are two great principles which form the objective and the
framework for decisions on the debt.
The first is to avoid inflation or deflation. That means to
manage the debt in the interest of sound, honest money which
retains a fairly stable buying power. That apparently simple
statement covers a lot of territory. It is shorthand for
a seething mass of operations by which the Treasury pumps money
out to pay its bills--takes money out of the market as it collects
taxes and borrows, dealing each time with thousands of banks and
millions of individuals.
If the Treasury has to borrow money too often in the course
of a year, it has no elbow room to turn around; it is constantly
off balance and keeps the market off balance. Even worse, a
continuous stream of Treasury borrowing leaves no space in the
market for the Federal Reserve System to operate, when it needs
to make a policy move to resist inflation. The Reserve System
cannot serve two masters at the same time; it can't lend
necessary aid to Treasury financing and, at the same time, tighten
money to check inflation in the broad public interest.
The amount, the character, the placing, and the timing of
public debt moves add up to pressure for inflation or deflation.
We want to avoid both.
The second great principle of debt management is that it should
aid and not impair the dynamic growth of the economy. It must not
impede the free flow of funds into business enterprise. Its
policies should encourage saving, for saving provides the capital
basic to economic growth.

1 pQ
- 5-

mm. U \^

OPERATIONS IN 1953
In accordance xvith the foregoing principles, our problem in
1953 was not just one of finding out what securities the market
would take at what rate, but it was also one of making an appraisal
of the economic situation to make sure that our operations would
stimulate neither inflation nor deflation. This meant, in fact,
deciding our policy in cooperation with the Federal Reserve System,
whose duty it is under the law to administer the money supply with
these same objectives.
By any objective test, the country was at or near the top of
one of the greatest booms America had ever known. The production
index of the Federal Reserve Board was making new high peacetime
records month by month and was 10 percent higher than the year
before. The national income measured in inflation dollars was
steadily climbing and was $20 billion larger than a year ago.
There was full and overtime employment.
Private bank credit was still rising, particularly in the
fields of consumer credit and real estate credit, in a way that
was giving concern to many careful observers. Heavy deficit
financing faced us, and direct controls were being lifted.
The principal offsetting tendency was weakness in some
agricultural prices, due to large crops and diminished exports.
In the judgment of the Federal Reserve System, there were still
inflationary pressures; the Reserve Banks raised their discount
rates early In the year and the System was pursuing a general
policy of credit restraint.
What this all added up to was that the Treasury ought to
finance its deficit and handle its refunding in saich a way as to
avoid an increase in bank credit through our operations. This
meant financing with securities that could stand on their own
feet without Federal Reserve support and which would be taken
largely by non-bank investors.
Accordingly, we made an analysis of the availability of funds.
We were greatly aided in our study by a nation-wide committee of
the American Bankers Association, a similar committee of the
Investment Bankers Association, and committees representing the
savings banks, life insurance companies, and by other groups and
individuals.

1G4
- 6It was clear from this analysis that there were two pools ox
funds which we could draw upon outside the commercial banks. There
was a limited amount of long-term money available in the hands of
insurance companies, savings banks, pension funds and other
private and institutional investors prepared to buy a properly
priced long-term Government bond. We, therefore, offered such
a bond in April at the going market yield, which was the lowest
yield at which it could be sold--3-l/4 percent. The bond was
substantially oversubscribed but, for two and a half months after
its issuance, dipped below par due to a variety of causes, including especially the huge volume of new financing by corporations,
states and municipalities, which put in the market $7 billion of
new securities in the first six months of the year--a larger
amount than ever before. The 3-1/4 percent bond has now regained
a satisfactory position in the market.
The only other substantial pool of non-bank funds was in the
hands of corporations and other non-bank, short-term investors.
We provided securities whioh would attract that money in the form
of Treasury bills and tax anticipation certificates.
The net result was that we have been able to finance this
year's huge deficit without any net Increase in bank holdings of
Government securities and, hence, without any increase in
inflationary pressures due to that cause.
From time to time the banks have been most helpful in the
initial sale of new issues both through their own purchases and
handling purchases for their customers. Steady absorption of
bills and certificates by business and other buyers has, in turn,
reduced bank holdings.
In addition to the financing for new money, a short and modest
step has been made in stretching out maturities in refunding Issues
by giving holders a choice between one-year and somewhat longer
maturities. We should have liked to have moved further In this
direction, but market conditions did not justify it.
As it is, the few steps we have taken toward spreading out the
debt, together with other pressures for funds and the Federal
Reserve policy of mild credit restraint, have caused some jolts
and bumps in the' market. Some of these have been unpleasant,
particularly for holders of long-term Government bonds, who have
seen the prices of their bonds depreciate in the market. Most
holders, including bankers, have taken the price change in good
spirit and with understanding, as one of the normal risks of
investment.

-L U *-»

- 7 Fortunately also, the adjustment to freer markets and more
realistic rates was begun several years ago and especially since
the accord reached by the Federal Reserve System and the Treasury
in the spring of 1951. For example, the longest 2-1/2 percent
bonds were selling above 106 In April 1946, they were down to
95i in January 1953. dropped below 90 early in June and are
now back up above 93iYou can't move from an inflationary financing policy to
a sound one without some readjustment. Sound, honest money cannot
be achieved without paying some price, and it is worth the price.
LOOKING AHEAD
The steps taken so far in funding the debt hardly anow in the
totals. With this huge debt, getting shorter day by day, you have
to run fast to keep even. In 1954, we shall still have to refund
a quarter of the debt.
But it is not as bad as it looks.
First, the budget picture is greatly improved. The newly
released figures discussed yesterday by Secretary Humphrey mean
that there is real hope that we may be nearly through with
raising cash to finance a deficit. Without new cash to raise, we
and the market will be freer to deal with refunding.
Second, the market has now shown evidence that it has
weathered a readjustment to higher yields and is able to stand on
its own feet without price props.
Third, experience shows us that, over a period, there are
substantial amounts of funds available for investment in
U. S. Government long-term bonds at fair rates. Let me name a few
sources.
(a) Government trust funds are absorbing $3 billion a year
of Government securities--a large part of which may be
considered long-term funding, such as go into pension
and insurance funds.
(b) State and local governments buy about three quarters
of a billion a year of U. S. Governments, about half
of it for pension funds.

166
- 8 (c) Individuals and other pension and trust funds are
steady though not large buyers.
(d) Insurance companies and savings banks are potential
buyers at present yields.
(e) Individual buyers of Savings Bonds have this year,
been buying more E and H Savings Bonds than they
are cashing in. We believe, with your cooperation,
these sales can be increased substantially.
A steady flow of funds such as these will, over a period of
years, absorb substantial amounts of long-term bonds, especially
at times when other financing is lighter.
Lengthening the debt can apply to the banks, too, as well
as to nonbank investors. In 1939, before World War II, the
average maturity of Governments held by the banks was nine years.
Today, it is three years.
The Government debt would be more orderly, the dangers of
inflation and deflation would be reduced; the risk of interfering
with the steady flow of funds into productive use would be less,
if the bank-held Government debt were smaller and better
distributed over a period of years. The experience of the
September refunding offers hope that, under suitable conditions,
this can be brought about.
SUMMARY
There is every reason to look forward with confidence to this
country's ability to put its financial house in better order
without any serious disruption of credit or markets. The stream
of the Nation's savings is huge--larger than ever before; the
credit base is secure; the banking system is sound. With
a reasonable assurance of sound, honest money of stable buying
power there is no better investment than securities of the
United States Government. The banks, insurance companies, and
other financial institutions, businesses, and individuals have
shown both their capacity and desire to cooperate with their
Government in this effort.
The speed with which the National debt can be re-distributed
will have to depend on the rate of the flow of savings, the
pressure of demand for funds from other sources; and the state of
the money market. You can't force free markets, and the Treasury
has no intention of doing so. It took a long time, a huge war, and
a huge defense program to get us where we are. It will take time
to re-adjust.

167
- 9In this process we shall always have as our objective, sound
money and economic stability, avoiding either inflation or
deflation, and encouraging and not impairing the steady, forward
growth of the country's activity.
It is our belief that a sound debt policy will itself make
for greater confidence, stimulate enterprise, and contribute to
the well-being of all the people.
We can do no better at this time than to recall the words
of George Washington in his Farewell Address:
"As a very Important source of strength and
security, cherish public credit. One method of
preserving it is to use it as sparingly as
possible; avoiding occasions of expense by
cultivating peace, but remembering also that
timely disbursements to prepare for danger
frequently prevent much greater disbursements
to repel it: avoiding likewise the accumulation
of debt, not only by shunning occasions of
expense, but by vigorous exertions in time of
peace to discharge the debts which unavoidable
wars may have occasioned, not ungenerously
throwing upon posterity the burden which we
ourselves ought to bear."

0O0

- 3 ^Jmi&k

but shall bo exempt from all taxation now or hureafter imposed on the principal

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 dis-

count at which Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11S> of the Revenue Act of 1941* the amoun

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

- 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 incorporate
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 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 October 1, 1953 in cash or
—~ ' —"TUT*"'— ——
yBwgtL

other immediately available funds or in a like face amount of Treasury bills
maturing October 1, 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 now
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,

TREASURY DEPARTMENT
Washington

hi - l ( 2 —

FOR RELEASE, HORNING NEWSPAPERS,
.Thursday^ Septe^Der Zk,_JL953L_*
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 October 1, 1953 3
.

Mmm.mmmJmm^Mm<M=£

the amount of

$1,500,319? OOP 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated: October 1, 1953

and*mil mature December 31, 1953

when the face

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of §1,000, $£,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday, September 28, 19
BUSES

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 bo 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

WASHINGTON, D.C.

1 71
-i. 1 X.

RELEASE MORNfflG, NEWSPAPERS,
Thursday, September 2k, 1953-

H-262

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 9I~day Treasury bills, for
cash and in exchange for Treasury bills maturing October 1, 1953*
in the amount of $.1,500,319,000, to be issued on a discount basis
under competitive ..'and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 1, 1953*
and will mature December 31* 1953* when the face amount will be
payable without interest. They will be issued in bearer form only,
and in,denominations.of $1,000, $5*000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to.the closing hour; two o'clock p.m., Eastern Standard time,
Monday, September 28,''1.953. 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 *except1for their own account. Tenders will be received
without deposit from incorporated banks and trust companlesvand from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount'bf 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 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
acceptedcompetitive
in full atbids.
the average
pricefor
(inaccepted
three
decimals)
ofbe
accepted
Settlement

- 2 tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on October I, 1953* in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing October 1, 1953. -Cash and exehangeytenders 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 ariy exemption, as such* and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as ,such, under the Internal Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject, to estate,
inheritance, gift or other excise taxes/ whether .Federal or State,
but shall be exempt from all taxation now or hereafter imposed on
the principal or Interest thereof by any State,-.or.;any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally,sold by the United States shall be considered
to be interest. Under Sections k2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115,of the Revenue.Act of 19^1*
the amount of discountat 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 i^sue. Copies
of the; circular may be obtained
oOo
from any Federal Reserve Bank or Branch.

BiflEDIATE RELEASE
September 2$, 1953

The Bureau of Customs announced today that the quota
of 8,883,259 pounds of Mexican cotton of less than 1-1/8
inches in staple length (other than harsh or rough cotton
of less than 3 A Inch in staple length, and other than
linters) for the quota year opening September 21, 1953*
was approximately 2k percent filled by entries presented
at the opening of the quota. The Bureau authorized release of 2,100,679 pounds which represents all that was
offered for entry.
The Canadian quota of 239,690 pounds of comber
waste made from cotton of 1-3/16 inches or more in
staple length, whether or not manufactured or otherwise
advanced in value and cotton card strips and comber
waste made from cotton of less than 1-3/16 inches in
staple length, lap waste, sliver waste, and roving waste,
whether or not manufactured or othend.se advanced in
value, was filled by entries presented on September 21»

TREASURY DEPARTMENT
Information Service

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, September 25* 1953.

H-263

The Bureau of Customs announced today that
the quota of 8,883*259 pounds of Mexican cotton
of less than 1-1/8 inches in staple length (other
than harsh or rough cotton of less than 3/k inch
in staple length, and other than linters) for
the quota year opening September 21, 1953* was
approximately 2k percent filled by entries
presented at the opening of the quota. The
Bureau authorized release of 2,100,679 pounds
which represents all that was offered for entry.
The Canadian quota of 239*690 pounds of
comber waste made from cotton of 1-3/16 inches
or more in staple length, whether or not
manufactured or otherwise advanced in value
and cotton card strips and comber waste made
from cotton of less than 1-3/16 inches in
staple length, lap waste, sliver waste, and
roving waste, whether or not manufactured or
otherwise advanced in value, was filled by
entries presented on September 21.

oOo

FOR RELEASE AT 7:00 O'CLOCK PJC.,
EASTERN DAILTGHT SAVTMG TIME
September 2$9 1953

H-

The Secretary of the Treasury announced today that the sale of
Treasury savings notes, Series B, offered under Treasury Department
Circular Ho* 922, dated May 11, 1953* will be terminated at the close
of business Friday, September 25, 1953•
A new series of Treasury savings notes with interest rates revised

downward to reflect recent changes in the Government Securities market win
be made available for purchase on October 1, 19$3a
Applications for the present series placed in the mail before
7:00 o'clock p.m., Eastern Daylight Saving Time, September 25, 1953*
and those received by commercial banks and paid for by credit in the
Treasury Tax and Loan Accounts before the close of business Friday,
September 25, will be considered as having been entered before the
termination of the sale of such notes.

TREASURY DEPARTMENT
WASHINGTON, D.C.
1 7Z
mm. i

FOR RELEASE AT 7:00 O'CLOCK P.M.,
EASTERN DAYLIGHT SAVING TIME
Friday, September 25* 1953*

H-264

The Secretary of the Treasury announced today that
the sale of Treasury savings notes, Series B, offered
under Treasury Department Circular No. 922, dated
May 11, 1953, will be' terminated at the close of
business Friday, September 25* 1953.
A new series of Treasury savings notes with interest
rates revised downward to reflect recent changes in the
Government Securities market will be made available for
purchase on October 1, 1953
Applications for the present series placed in the
mail before 7:00 o'clock p.m , Eastern Daylight Saving
Time, September 25, 1953* and those received by commercial
banks and paid for by credit in the Treasury Tax and Loan
Accounts before the close of business Friday, September 25,
will be considered as having been entered before the
termination of the sale of such notes.

oOo

- 2

The new State Advisory Chairman is a past commander of t he
Gilbert C» Grafton Post of the American Legion, Fargo; is past
president of the Fargo Chamber of Commerce; past president, Fargo
Exchange Clubs and former District Go/ ernor of Exchange Clubs for
N. Dakota. He is a past president of the Fargo chapter of ihe American
Institute of Banking and past Associate Councilman for that organization.
He is currently a member of the N. Dakota House of Bepresentatives for
the term 1951-1953.
In addition to the above affiliations, Mr. McLeilan is a member
of the University Club of Fargo; The Fargo Country Club: kO et 85
Shiloh Masonic Lodge; N. Dakota Bar Association; American Bar Association;
and is a member of the First Presbyterian Church of Fargo.

RELEASE SUNDAY NEWSPAPERS,
September 27, 1953

H- £-~ I" S

Secretary Humphrey today announced the appointment of
Adrian McLeHan, President^ Merchants National Bank and Trust Company,
Fargo, N. Dakota, as State Chairman of the U. S. Savings Bonds Advisory
Committee for N. Dakota.
Mr. McLellan succeeds Clarke Bassett, who has been named Vice President
of the First National Bank of Minneapolis. Secretary Humphrey, accepting
Mr. Bassett's resignation, expressed the appreciation of the Treasury
for the unselfish contribution he had made to the Savings Bonds program.
Secretary Humphrey wrote the new N. Dakota State Chainaan as follows:
"I am delighted to learn of your willingness to a ccept the Advisoiy
ChaJLimanship of the Savings Bonds program for the State of N. Dakota.
Our program needs leaders of your stature and we welcome you as the newest
member of our team."
Mr. McLellan was born in Minto, N. Dakota, July 25* 191l|* He is a
graduate of the University of N. Dakota, both from the School of Commerce
and the School of Law. He is married to the former Ada Thompson of
Ncrthwood, N. Dakota. Ihey have two children, Don and Mary McLellan.
Mr. McLellan joined the Merchants National Bank at Fargo in 1939 as
assistant Trust Officer. In 19U2 he became a special agent for the F.B.I.
In 19l;5 and 19i|6 he served in the U. S. Navy, and rejoined the Merchants
National Bank in 19U6.

TREASURY DEPARTMENT
Information Service
RELEASE SUNDAY NEWSPAPERS,
September 27, 1953-

IINGTON, D.C

H-265

Secretary Humphrey today announced the appointment of
Adrian McLellan, President, Merchants National Bank and Trust
Company, Fargo, North Dakota, as State Chairman of the U. S. Savings
Bonds Advisory Committee for North Dakota.
Mr. McLellan succeeds Clarke Bassett, who has been named
Vice president of the First National Bank of Minneapolis.
Secretary Humphrey, accepting Mr. Bassett's resignation, expressed
the appreciation of the Treasury for the unselfish contribution he
had made to the Savings Bonds program.
Secretary Humphrey wrote the new North Dakota Chairman as
follows:
"I am delighted to learn of your willingness to accept
the Advisory Chairmanship of the Savings Bonds program for
the State of North Dakota. Our program needs leaders of
your stature and we welcome you as the newest member of our
team."
Mr. McLellan was born in Minto, North Dakota, July 25* 1914.
He is a graduate of the University of North Dakota, both from the
School of Commerce and the School of Law. He is married to the
former Ada Thompson of Northwood, North Dakota. They have two
children, Don and Mary McLellan. Mr. McLellan joined the Merchants
National Bank at Fargo in 1939 as assistant Traist Officer. In 1942
he became a special agent for the F.B.I. In 1945 and 1946 he
served in the U. S. Navy, and rejoined the Merchants National Bank
in 1946.
The new State Advisory Chairman is a past commander of the
Gilbert C, Grafton post of the American Legion, Fargo; is past
president of the Fargo chamber of Commerce; past president, F^rgo
Exchange Club; and former District Governor of Exchange Clubs for
North Dakota. He Is a past president of the Fargo chapter of the
American institute of Banking and past Associate Councilman for that
organization. He is currently a member of the North Dakota House of
Representatives for the term 1951-1953.
In addition to the above affiliations, Mr. McLellan is a member
of the University Club of Fargo; The Fargo Country Club: 40 et 8;
Shiloh Masonic Lodge, North Dakota Ear Association; American Bar
Association; and is a member of the First Presbyterian church of
oOo
Fargo.

TREASURY DEPARTMENT
Information Service
FOR RELEASE
Thursday, October 8 T 19S5

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

Press Service
ICC*
No. H-«466-

The Treasury Department today made public data from the report,
Statistics of Income for 1950, Part 1, compiled from individual income" tax returns ariJ rrom taxable fiduciary income tax returns, for
the income year 1950. These tabulations are prepared under the
direction of Commissioner of Internal Revenue T. Coleman Andrews.
This release contains three tables compiled from data reported
on individual income tax returns and two tables compiled from data
on taxable fiduciary income tax returns. Table 1 shows the number
of individual returns, sources of income or loss, itemized deductions, tax liability, and tax payments, by taxable status and by
adjusted gross income classes, while table 2 presents, by the same
classifications, frequency distributions of returns for items tabulated in the first table. Table 3 contains selected data for individual returns by similar classifications with a further breakdown .
by marital status of the taxpayer. Table 4 shows the number of
taxable fiduciary returns, sources of income or loss, deductions,
and tax liability by total income classes ; and table 5 presents, by
the same classification, frequency distributions of returns for these
items.
INDIVIDUAL RETURNS
The number of individual returns filed for the income year 1950
is 53,060,098. This is approximately one and one-quarter million
more returns than were filed for the previous year. Current year
returns include 15,518,466 optional returns, Form 1040A; 22,488,805
short-form returns, Form 1040$' and 15,052,827 long-form returns
Form 1040.
'
Use of the optional standard deduction is reported on 42 739 800
returns. On 38,007,271 of these returns, the tax is determined from
the tax table; however, the income and exemptions on 13,277,664 of
these returns are such that there is no tax liability stated in the
table.
The adjusted gross income reported is $179,874,478,000 and the
income tax liability is .$18,374,922,000. This is the largest amount
of income tax ever reported by individuals. The tax increased
$3,836,781,000, or 26.4 percent, over the tax for 1949.

- 2 Individual returns, 1950 and 1949
(Money figures in thousands of dollars)
Increase or •
decrease (-)
Number i
;Percent
or
amount
Total individual returns:
53,060,098
Number of returns
53,060,(
orM
,478
Adjusted gross income
179,874,'
Taxable returns:
38,186,682
Number of returns
158,545,122
Adjusted gross income
18,374,922
Tax liability
Nontaxable returns:
14,873,416
Number of returns
With adjusted gross income:
14,468,882
Number of returns
21,329,356
Adjusted gross income
With no adjusted gross income:
404,534
Number of returns
726,202
Adjusted gross deficit

51,814,124 1,245,974
161,373,205 18,501,273

2.40
11.46

35,628,295 2,558,387
138,566,406 19,978,716
14,538,141 3,836,781

7.18
14.42
25.39

16,185,829 -1,312,413

-8.11

15,673,615 -1,204,733
22,806,799 -1,477,443

-7.69
-6.48

512,214
799,280

-107,680 -21.02
-75,078
-9.14

Returns included
The individual income tax returns included in this release are for the
calendar year 1950, a fiscal year ending within the period July 1950 through
June 1951, and a part year with the greater part of the accounting period in
1950. The returns are Forms 1040A 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 audit.
Form 104QA is the employeeTs optional return which may be filed by
persons whose total income is less than $5,000 consisting of wages reported
on Form W-2 and not more than a total of $100 from other wages, dividends,
and interest. The tax liability on Form 1040A 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
cannot 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 1040A if their combined income meets the requirements for use of this form. On a joint return, the tax liability, determined from the tax table.by the collector, is
the lower of two taxes: an aggregate of the two taxes on the separate'*
incomes of husband and wife or a tax on their combined income, which tax
is the liability under the split-income method.

1 o r.
- 3 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 1040A, and by persons who, although eligible to use Form
1040A, 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 itfhich nonbusiness deductions and tax credits are not reported, the tax being determined on
the basis of adjusted gross income, by the taxpayer from the tax
table provided under supplement T. If the taxpayer whose adjusted
gross income is less than $5,000 wishes to claim nonbusiness deductions^in excess of the standard deduction allowed'.. through use of
the tax table, he must file the long-form return and compute the
tax liability on the basis of the'net income after allowable exemptions. Persons with adjusted gross income of $5,000 or more file
the long-form return and compute .the tax liability. In computing
the net income to be taxed, the taxpayer may use, in lieu of nonbusiness deductions, the optional standard deduction which Is the
smaller of $1,000 or an amount equal to 10 percent of the adjusted
gross income, except that in the case of a separate return of "a
married person, the standard deduction is.$500.
Data tabulated for individual returns for 1950 with adjusted
gross income under $50,000 are estimated on the. basis of samples.
Description of the samples used and limitations of the data are
given on pages 5 and 6.
Changes 'jLn_ the , Internal -Revenue, .Code
The Revenue Act of 1950 amended the Internal Revenue Code in
many respects. The major change applicable to individual returns
Is the increase in tax rates effected by eliminating the percentage
reductions from tentative tax which were in effect during 1948 and
1949.
(a) Although the normal tax rate of 3 percent of normal tax
net income and the surtax rates ranging from 17 percent of the first
$2,000 of surtax net income to 88 percent of such income in excess
of $200,000 are retained, the 1950 act eliminates, as of October 1,
1950, the series of percentage reductions ranging from 17 percent
of the first $400 of combined tentative taxes"to 9.75 percent of
such taxes in excess' of $100,000. The total tax liability is now
limited to 87 percent of net income, as compared to the previous
limit of 77 percent.
For 1950 calendar year returns, a series, of percentage reductions amounting to approximately three-fourths of those previously
allowed is provided, with a limitation of the tax liability to 80
percent of the net income.
(b) On returns for fiscal years ending after September 30,
1950, the tax liability is the sum of (1) that portion of a tentative tax, computed at rates in effect before October 1, 1950, which

Mil

— L!\J

- 4 the number of calendar months in such fiscal year before October 1
1950, bears to the total number of calendar months in the fiscal
year, and (2) that portion of a tentative tax, computed at the rates
in effect after September 30, 1950, which the number of calendar
months in such fiscal year after September 30, 1950. bears to the
total number of calendar months in the fiscal year/
(c) The optional tax table under supplement T is revised to
reflect the increased tax liability resulting from the decrease in
percentage reductions applied to the aggregate tentative normal tax
and surtax for the calendar year. Also, for taxable years beginning
after September 30, 1950, an optional tax table is provided wherein°
no percentage reductions are applied.
(d) New income tax withholding tables provide increased withholding of income tax at source on wages paid on and after October 1,
1950; and the rate for percentage method of withholding is increased'
from 15 percent to 18 percent of wages paid in excess of the amount
of withholding exemption.
(e) Provision is made for enlisted personnel to exclude from
gross income all compensation and commissioned officers to exclude
not more than $200 per month of compensation received for active
service in the armed forces of the United States in a combat zone
after June 24, 1950.
(f) The definition of capital asset is changed for taxable
years beginning after September 30, 1950, to exclude a copyright and
a literary, musical, or artistic composition, created by the taxpayer.
£lasj3ification /of individual returns
For the tables in this release, individual returns are classified by adjusted gross income classes, by taxable and nontaxable
returns, and by marital status of the taxpayer: and returns with
iter&zed deductions are identified.,
Adjusted gross income, being common to all types of returns,
supplies the base for 'segregating the returns into" adjusted gross
income classes. Returns with adjusted gross deficit are designated
"No adjusted gross income" 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 oa interest from tax-free
covenant bonds and for income taxes paid to a foreiy.i country or
rescission of the United States. Such credits are reported only
on returns with itemized deductions. If the foreign tax credit
eliminates the tax, the return is classified nontaxable.

181
- 5 =
The classification of returns for sarital status of taxpayer
is based on the jnarital status of the .taxpayer at the close of the
income year, or on the date of the death of a spouse. The three
classifications are: Joint returns of husbands and wives, separate
returns of husbands and wives, and returns of single persons. Separate returns of husbands and wives include separate community property returnso
Returns with itemized deductions are1 long-form returns, Form
1040, on which:nonbusiness deductions are itemized in detail; longform returns, Form 1040, with no deductions filed by spouses of
taxpayers who itemized deductions (such spouses are denied the
standard deduction)) and all returns with adjusted gross deficit
whether or not deductions are itemized.
Description of the sample and limitations of data
Tables 1, 2, and 3 in this, release are derived from a stratified
random sample of individual income tax returns designed to comprise
three-tenths of 1 percent ,pf returns, Form 1Q4QA and Form 1040 with
adjusted gross income under. $8,,000 and with fotal receipts from
business, if any, under $50,000) 10 percem- 'of returns, Form 1040
with adjusted gross income under $8,000 and with total receipts
from business of $50,000 or more; 10 percent of returns, Form 1040
with adjusted gross .Income from $8,000 to $25,000; 25 percent of
returns, Form 1040 wi^h adjusted gross income from $25,000 to $50,000)
and 100 percent of returns, Form 1040 with adjusted gross income of
$50,000 or more. " •
•
"'",;
The decrease in sample size as compared with the preceding year,
from one-half of one percent to three-tenths of one percent, for
returns, Form 104QA, and Form 1040 with adjusted gross income under
$8,000 and total receipts from business under $50,000, is believed
to b | offset by the added efficiency of the sample design. Specifically, the 0.5 percent sample for 1949 comprised the first fifty
returns in each successive hundredth block of one hundred returns,
whereas the 0.3 percent sample for 1950 comprised the first return
in three of every ten successive blocks0 Use .of the return as the
unit of sampling instead of the .block or partial block, is more
efficient, in view of the. increasing use of sorting procedures in
the administrative processing .of the returns, prior to their arrangement in blocks.
In computing the possible variation of a given frequency due
to random sampling', a range ,of two standard errors was used) 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 time* 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 $8,000, frequencies

- 6 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 56 percent
at 10,000. In cells associated with adjusted gross income classes
from $8,000 to $25,000, frequencies of the magnitude of 100,000 or
more are subject to less than 2 percent variation) variation for
lesser frequencies Increases to a maximum of 6 percent at 10,000,
and a maximum of 20 percent at 1,000. In cells associated with
adjusted- gross income classes from $25,000 to $50,000, frequencies
of the magnitude of 10,000 or more are subject to less than 4 percent variation) variation for,lesser frequencies increases to a
maximum of 12 percent at 1 5 000. The degrees of variability noted
above relate only to cell frequencies and do not indicate the variability associated with money amounts of income, deductions, or tax,
TAXABLE FIDUCIARY RETURNS
There are 115^,252 taxable fiduciary income tax returns for the
income year 1950. The total income reported on these returns is
$1,233,957,000 and the net income taxable to the fiduciary is
$615,614,000. The tax,liability of $208,756,000 is the largest
amount of tax yet reported on fiduciary returns) It is an increase
of $64,726,000, or 44.9 percent, over the tax for the previous year,
Taxable fiduciary returns, 1950 and 1949
(Money figures in thousands of dollars)
^~
:

: 1950

Increase

: 1949 g TJuTTiber or :-.a.'.- „•
Percent

Number of returns
Total income
Net income taxable to
fiduciary
Tax liability

l l u ylCOfc

JL, ^ W O O , yo /

615,614
208,756

99,577
926,824

15,675
307,133

15.74
33.14

462,775
144,030

152,839
64,726

55,03
44.94

The taxable fiduciary returns included in this release are for
the calendar year 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. Fiduciary returns are filed
for the income from property held in trust and for the income of
estates under administration. Tentative returns are not used and
amended returns are used only if the original returns are excluded.
Statistical data are completely tabulated from each taxable return,
prior to audit.
Data are tabulated only from taxable fiduciary returns; 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

- 7 or more, and for every trust with',*%&t Income taxable to the fiduciary of $100 or more, or with gross income of $600 or more regardless of the amount of net income, and for every estate or trust of
which any beneficiary is a nonresident valien.
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 a ply 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 ah\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.
For the tables in this release, taxable fiduciary returns are
classified by size of total income. Total income is the amount
resulting from the combination of net 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
for the size classification of individual returns.

Total
number of
returns

Salaries
and
wages 2/

28
29
30
31
32
33
54
33
36
37
38
39
40
41
42
43
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
3 under 3.5
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
13 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
IOC 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
Total taxable returns

368,453
227,528
1,201,660
940,360
1,155,515
.1,178,077
1,507,851
1,807,977
1,693,386
2,397,459
1,640,026
2,745,411
2,067,053
3,856,034
2,065,115
4,363,384
2,163,146
5,124,584
2,422,594
6,226,120
4,593,387 13,545,057
4,075,219
13,879,034
3,300,418 12,632,244
2,439,982 10,324,141
3,025,105
14,438,833
8,126,991
1,523,868
797,054
4,519,041
469,495
2,701,975
299,177
1,728,393
215,904
1,288,780
156,347
946,927
125,378
777,951
99,119
621,657
82,366
540,199
256,019
1,855,309
139,837
1,205,394
83,645
847,817
91,105
1,088,371
45,357
679,946
25,064
434,430
15,535
306,763
221,305
9,995
7,083
166,157
5,012
128,253
11,564
330,615
133,105
3,948
1,872
71,382
35,825
896
37,678
891
399
19,960
20,904
446
6,923
177
3,632
114
1,479
41
1,962
35
229
12
221
9
8
170
122,535,987
38,186,682

50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

Nontaxable returns: 26/
No adjusted gross income 27/
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
Total nontaxable returns

404,534
3,780,013
900,559
1,111,097
1,335,351
1,077,985
1,017,574
1,121,891
712,305
798,872
744,882
455,174
794,942
373,252
144,611
100,374
14,873,416
53,060,098

1
2
.3
4
5
6
7
8
9
10
11
12
13
14
15
IS
17
18
19
20
21
22
23
24
25
26

Dividends 3/ Interest 4/

Rents and
Annuities
and
royalties 6/
pensions 5/ Net profit Ne^E loss

Business and
profession 7/
Net profit Net~T.oss

t
•"•*'

4,858
(30)
19,963
15,333
1,714
49,376
2,364
19,591
48,156
9,265*
39,472
149,346
44,681
8,863
172,221
46,027
162,762 . . 10,947
14,148
82,054
298,649
87,727
299,354
15,380
90,686
22,883
313,616
23,586
124,459
414,263
41,422
228,214
773,894
267,017
749,013
32,492
34,094
244,900
727,082
22,072
260,990
630,373
441,614
40,973
936,512
372,958
29,370
784,798
312,280
642,378 - 18,096
16,183
291,215
571,854
12,991
- 253,397
498,411
420,179
12,786
233,600
202,961
9,145
365,716
195,431
16,415
333,793
- 9,316
. 179,585
289,013
263,407
- 7,928
167^469
29,575
655,394
980,517
22,685
' 531,980
657,762
396,470
466,571
16,447
25,650
581,963
580,594
'363,-973
15,146
335,050
.260,795
195,024 : 10,682
127,431
7,643
193,936
87,543
140,859
• 6,490
110,688
64,948
5,690
43,704
4,646
84,306
16,664
232,832
108,929
104,599
45,033
10,310
52,803
19,243
4,470
.8,113
2,985
26,424
12,167
3,308'
30,334
2,947
3,116
10,613
5,972
3,698
16,593
4,033
2,459
4,282
.4,147
1,514
4,715
99
494
612
1,093 1,803
1,284
m
451
2,890
345
273
3.
118
3
9
.233,053 13,665,394
608,792
" 8,014,876

(30)
125
(30)
905
6,365
605
1,914
1,369
3,173
4,449
7,280
7,310
8,802
5,725
8,326
11,832
10,278
4,601
3,602
2,872
3,555
.3,470
3,036
2,845
9,770
7,026
5,278
6,505
7,025
3,349
. 3,205
2,600
. 2,322
1,452
4,863
2,672
1,315
1,117
1,312
753
1,728
1,115
590
231
530
177
42
20
168,274

2,139
6,746
10,756
18,246
24,799
23,771
33,055
39,353
44,198
43,350
99,094
95,600
102,783
102,622
196,690
163,166
146,476
142,672
131,142
117,553
107,774
109,103
99,819
91,459
398,190
335,540
267,081
423,495
335,441
247,861
198,534
160,905
139,496
120,079
386,392
205,692
136,449
88,187
109,525
74,661
98,206
60,616
50,153
32,057
29,744
12,585
16,928
37,736
5,917,919

1,065
6,472
6,992
14,139
23,422
23,512
22,922
25,124
23,795
31,766
58,560
52,602
63,953
53,218
98,959
75,356
55,619
49,837
41,150
35,784
33,476
27,474
25,242
23,243
92,049
68,683
53,721
77,503
49,212
32,531
23,707
17,681
13,825
10,939
31,302
14,514
9,277
4,470
5,437
3,856
4,349
2,686
1,918
625
993
172
56
2,384
1,393,572

116,998
1,093,015
435,324
644,536
1,005,022
1,012,875
1,167,709
1,556,346
1,149,845
1,510,805
1,558,890
1,087,241
2,113,357
1,179,737
511,424
394,014
16,537,138

26,793
13,255
11,478
23,640
27,396
26,704
17,734
21,952
11,142
10,406
8,440
5,631
8,592
4,481
3,170
18,966
239,780

12,706
19,571
11,474
25,143
27,651
25,747
17,316
13,616
11,757
8,263
7,540
3,821
5,245
2,989
2,464
6.729
202,032

-5,841
1,749
2,529
(30)
2,750
3,423
152,605

632,043

139,073,125

6,157,699

1,595,604

431,815

3,224,452

328,273 16,863,434

1,598,670

8,575 T 507

411,287

6a \ Taxable returns with adjusted gross income 45,567,223. 1 95,784,548
1 under $S,0OO and nontaxable returns
7,492,877 1 43,288,577
69 \ Taxable returns with adjusted gross income
\ of &5.QQO or nose
..„„,.--. „

886,292

609,574

314,958

1,533,849

210,245

8,006,108

1,229,150

2,116,640

291,873 J

126,857

1,690,603

118,028

8,857,526

369,520

•2-7

Grand total

5,271,407

986,03D

454
3,136
2,873
14,975
2,166
17,579
31,594
8,120
20,721
43,691
11,030
43,883
56,612
12,109
8,371
57,462
54,521
15,069
68,307
14,132
132,131
20,360
12,842
127,756
17,966 - 134,437
li5,722
16,140
21,574
203,828
12,697
144,854
11,598
121,502
89,083
7,187
5,619 . 75,043
4,078
67,391
4,369 • 57,598
3,399
50,325
2,684
47,400
2,463
45,416
8,740
157,472
5,460
106,199
3,911
85,523
6,045
116,100
3,267
70,646
47,678
2,443
34,651
1,568
i,442
25,546
966
20,993
8T1
14,343
2,577
46,093
20,212
1,116
854
11,106
544
. 6,976
456
7,407
257
6,125
4,597
248
103
3,468
85
1,478
30
1,139
128
1E910
17
XL
479
36
31
5
279,210 2,592,409

« '

partnersn
Net profit
Net loss

2,048
4,206
6,924
15,341 ,
30,871
20,526
21,327 ;
14,822
•8,725
9,015

40,797
50,527
34,811
70,570
83,899
60,752
48,741
55,261
38,9/48
39,660
30,055
15,782
24,372
13,844
8,130
15.894

(30)
1,592
1,158
3,359
5,213
5,271
.5,536
7,316
6,461
10,925
17,375
18,477
19,410
1.2,791
20,401
13,352
8,223
9,439
5,040
3,608
4,057
2,790
2,570
2,549
9,165
7,014
4,665
.6,174
.4,057
2,205
1,952
1,167
820
1,269
3,012
1,270
841
457
1,015
.215
398
121
60
47
49
• 1
22

47,293
16,785
11,600
114,250
. . 3,074
81,526
." 2,453
173,139
3,975
282,635
4,551
280,333
1,365
324,054
2,636
369,651
4,505
245,843
2,212
268,989
2,056
265,247
'. 757
155,472
1,849
313,802
151,106
1,467
71,194
1,832
3.595
84.014
95j220 3,198,040

758,250
47,672
14,058
23,243 :
21,069
." 32,273
11,370
20,365
9,780
11,755
6,145
9,587
6,779
4,992
2,491
10.049
989,878

21,038
21,497
14,868
25J491

38,375
. 43,721
43,312
60,058
39,816
48,734
48,329
. ,32,78i
66,273
28,500
10,185
17.653
560.631

187,740
'6,835
3,145
4,447
. 7,398
4,599
6,304
5,805
2,211
3,715
1,949
2,922
-1,187
(30)
(30)
3.077
243,013

Sales or exchanges
of capital assets 9/
Net gain
Net loss
817
959
3,831
(30)
4,203
1,390
12,451
2,745
16,779
3,295
10,407
2,399
17,366
4,032
19,854
7,177
27,143
6,186
37,148
6,000
65,066
14,941
66,303
16,662
83,777
17,323
72,919
13,181
132,642
22,801
135,665
18,865
113,340
11,609
92,503
. 8,677
74,110
7,600
69,836
'6,634
56,585
5,751
52,168
• 5,055
49,896
4,218
43,462
3,828
178,163
15,040
134,689
9,397
6,178
101,002
160,529 - '8,217
114,735
4,646
2,816
85,783
69,888
1,852
53,355
1,251
902
51,152
44,374
685
156,603
1,496
98,251
510
68,831
•_' 277
117
47,469
67,952
118
45,697
52
88,787
55
43,591
, ,: 36
15
49,920
16,178
10
31,355
6
•13,328
4
8,100
1
2
12,402
3,000,445
245,392
77,520
•16,430
'5,435
15,024
18,710
16,728
-IB,042
=16,385
12,968
10,452
9,825
.8,441
11,897
7,532
3,805
8.932
258,126
3,258,571
696,230

6,458,867 J 119,414 1 2,562,341 1

16,742
14,405
2,896
5,100
7,933
6,716
5,507
4,946
•4,974
.3,058
4,403
2,823
1,323
1,355.
1,339
1.716
85.236
330,628

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
66
| 67

181,907 1 68
148,721 1 69

Adjusted gross income classes 1/

(Adjusted
Sales or exchanges of
property other than
capital assets 10/
Net gain
| Net loss

PART t, - /a.1. RETOHSS - itinued
gross income classes andi money figures'"'In- thousands of dollars)
Income from
MiscelAdjusted
Amount of
Tax liaestates and
laneous
gross
exemption 14/ bility 15/
trusts 11/
income 12/
income 13/

Taxable returns:
0.6 under 0.75
(30)
0.75 under 1
(30)
(30)
1 under 1.25
(30)
(30)
1.25 under 1.5
1,597
(30)
1.5 under 1.75
844
1,446
1.75 under 2
2,727
1,481
2 under 2.25
1,716
2,744
2.25 under 2.5
1,493
899
2.5 under 2.75
2,345
1,377
2.75 under 3
1,247
2,138
3 under 3.5
4,854
2,961
3.5 under 4
7,473
3,227
4 under 4.5
4,729
4,191
4.5 under 5
6,561
6,067
5 under 6
8,323
8,417
6 under 7
4,221
3,503
7 under 8
3,555
5,167
8 under 9
2,590
4,065
9 under 1C
1,719
3,194
10 under 11
1,986
2,976
11 under 12
1,296
1,605
12 under 13
1,299
2,070
13 under 14
1,351
1,192
14 under 15
1,117
1,785
15 under 20
4,462
4,368
20 under 25
3,226
3,571
25 under 30
1,945
2,109
30 under 40
2,998
2,392
29
40 under 50
2,721
1,453
30
50 under 50
1,632
1,095
31
60 under 70
964
662
32
7C under 80
783
662
33
80 under 90
519
150
34
90 under 100
529
151
ICO under 150
1,159
416
ISO under 200
816
430
200 under 250
227
34
38
250 under 300
181
117
59
300 under 400
448
63
400 under 500
362
18
50C under 750
40
40
750 under 1,000
1,065
8
i,000 under 1,500
197
14
1,500 jnder 2,000
32
4
45
2,000 under 3,000
4
46
3,000 under 4,000
61
47
4,000 under 5,000
80,257
4fi
5,000 or more
Total taxable returns
1,694
53,140
Nontaxable returns: 26/
1,167
7,204
50
No adjusted gross income 27/
749
1,162
51
Under 0.6
1,302
3,981
52
O.e under 0.75
1,085
3,341
0.75 under 1
2,409
5,729
1 under 1.25
1,136
4,919
55
1.25 under 1.5
4,415
2,878
56
1.5 under 1.75
2,061
3,245
57
1.75 under 2
(30)
5,285
58
2 under 2.25
678
1,395
59
2.25 under 2.5
340
50
2.5 under 2.75
2,580
1,043
61
2.75 under 3
1,466
(30)
62
3 under 3.5
(30)
(30)
63
3.5 under 4
(50)
(30)
64
4 under 4.5
22,931
97,094
65
4.5 or more
135,446
103,188
66
Total nontaxable returns
67 Grand total
51,457
133,618
63 Taxable returns with adjusted gros3 income
under JS,00G and nontaxable returns
51,731
51,828
69
Taxable returns with adjusted gross income
of $5,000 or more
Far footnotes, see pp. 19 - 20; for extent tn which data ar* estimated,
I
Z
3
4
5
6
7
3
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

778
1,619
2,860
2,618
8,580
9,552
10,146
7,747
6,896
12,568
22,195
16,955
19,614
14,948
41,849
28,217
37,219
34,252
31,410
32,154
30,423
29,393
28,599
23,084
9°,243
88,526
73,612
117,563
64,373
71,009
56,493
44,539
38,086
33,020
114,135
67,668
51,258
30,706
39,316
17,807
34,621
29,655
24,815
20,568
17,301
13,070
1,640,429
13,809
5,380

2,320
10,789
13,116
17,161
16,593
17,237
23,388
26,582
30,443
32,863
50,755
54,654
41,496
32,812
66,406
49,445
26,653
27,763
20,213
16,567
12,257
11,641
10,782
11,233
35,555
22,025
18,078
21,864
12,709
9,099
5.743
5,406
3,650
3,417
3,822
1,746
693
278
398
201
247
47
80
133
75
6
768,476
21
14

10,318
5,084
4,388
5,035
5,742
6,208
2,558
5,717
930
1,353
4,859
(30)
1,653
1,664
(30)
(30)
59,645

10,262
15,775
10,883
16,108
28,631
21,106
21,494
24,506
17,300
16,471
17,641
13,855
19,763
9,936
4,977
3,841
250,598

1,700,072

1,019,074

196,699

620,807

1,503,373

398,267

70,377,873

14,398,079

see pp. 5-6.

261,501
1,049,309
.;. 1,297,733
"• 4,083,811
:!i2,745,812
3,073,123
4,387,731
4,903,162
5,691,283
6,961,107
14,912,416
15,242,570
13,988,086
11,569,605
16,486,505
9,820,005
5,937,515
3,970,911
2,831,132
2,261,011
1,795,883
1,563,720
1,335,375
1,192,951
4,396,990
3,110,483
2,281,381
.3,126,875
2,017,205
1,367,067
1,003,761
746,954
599,859
474,876
1,386,519
676,791
414,803
244,253
304,533
177,646
268,645
150,817
138,581
72,105
83,457
41,676
158,545,122
39,599
S7S98S
28/726,202
T,265,05S
593,525
976,107
1,506,300
1,463, f.46
1,653,959
2,106,098
1,514,621
1,893,587
1,941,397
1,308,381
2,557,884
1,394,322
612,305
557,555
29/20,603,154

221,072
720,996
693,309
1,176,730
1,401,377
1,367,139
2,204,618
2,269,988
2,617,902
5,424,319
7,020,651
7,001,100
6,085,262
4,607,426
5,789,533
2,886,491
1,525,013
894,354
574,950
417,728
306,145
246,200
195,735
162,712
510,469
282,271
169,716
184,005
91,333
49,927
30,520
19,560
13,776
9,621
21,937
7,370
3,461
1,591
1,577
691
779
290
188
58
56
14
55,209,968
13
15

2,470
37,867
79,410
117,669
179,800
233,325
290,776
357,094
416,807
474,177
1,061,686
1,115,555
1,078,595
965,188
1,502,335
999,266
654,927
472,667
354,503
296,894
246,567
225,583
201,507
186,828
757,996
615,361
505,858
791,446
590,640
446,682
357,167
281,649
236,089
195,419
613,196
328,914
209,388
129,918
165,726
97,526
152,615
87,266
82,542
44,275
48,833
25,401
18,374,922
25,309
34,390

Tax
withheld

17,847
380
75,824
1,764
-96,057
2,949
140,305
4,820
193,803
8,148
236,839
11,444
308,632
14,609
566,316
17,053
427,392
18,668
489,495
23,323
1,080,258
50,617
1,115,115
55,625
1,050,390
59,751
911,340
61,244
1,379,121
119,639
645,568
114,397
495,008
105,343
306,245
99,531
200,913
94,797
152,498
89,541
115,241
64,072
96,128
85,592
77,402
78,233
66,993
77,056
239,521
340,407
163,560
506,669
118,588
262,115
157,919
436,873
100,983
545,624
66,524
272,042
46,807
224,532
34,626
183,576
26,092
156,488
19,890
132,686
50,332
430,396
20,229
242,149
10,762
161,564
5,481
101,570
5,622
130,776
2,650
79,703
3,117
124,617
1,032
74,435
520
70,474
193
40,781
129
45,517
32
21,115
11,317,565
12 5,514,977
25,158
16
31,114

603,357
3,159,403
1,020,398
1,764,310
2,175,248
2,047,616
2,188,362
2,501,829
1,856,708
2,140,965
2,053,949
1,457,438
2,633,76-~
1,376,^72
576,253
426,028
27,985,096

9,787
81,114
24,278
22,183
33,508
28,076
28,705
37,931
20,685
27,554
28,083
16,380
33,782
19,485
10,608
10,815
452,974

29/179,148,276

85,193,064

18,374,922 11,750,539

29/108,770,403

68,794,985

6,410,419

payments
on 1950
declaration 16/

6,942,585

20,677
8,273
1,170
3,362
3,447
4,055
4,031
4,496
2,812
2,128
1,315
1,187
3,565
1,511
1,056
5.566
68,451

398,846

11,964,503 4,807,954 5,184,582

Tax due
at time
of filii«
445
5,456
10,986
14,287
22,306
25,148
28,791
34,430
37,094
41,558
90,855
9e,647
99,246
95,555
142,955
117,605
100,268
91,585
76,313
70,417
62,584
58,872
55,339
51,551
210,558
170,235
141,186
218,904
158,263
117,417
92,169
68,987
57,602
46,019
141,912
71,417
40,292
24,360
31,689
.16,461
26,858
12,748
12,293
3,363
3,689
4,351
2,140
5,521
5,106,885

Overpayment
(refund, or
credit on
1SS1 tax)
16,203
45,179
30,582
41,742
44,456
40,103
61,258
60,705
66,347
80,196
159,844
154,231
130,791
100,930
139,380
78,504
45,691
24,696
19,523
15,562
13,330
13,008
9,466
8,771
32,489
25,08216,027
22,246
14,231
9,501
6,342
5,539
4,094
5,175
9,443
4,881
5,250
1,493
2,362
1,487
1,977
949
945
62
501
76
1,566,492
60
30,464
89,386
25,445
25,548
36,955
32,131
32,738
42,428
23,497
29,683
29,399
17,565
37,347
20,995
11,663
16.172
501,416

5,108,883

2,067,908 67

602j984

1,533,983 68

2,505,899

533,925

Table 1. - Individual returns for 1950, by taxable and nontaxable returns and by adjusted gross income classes: Number of returns, income or loss from each of the
sources comprising adjusted gross income, adjusted gross income, exemption, tax liability, tax payments, and tax overpayment for all returns; also selected items
for returns with itemized deductions - Continued
PART II. - RETURNS WITH ITEMIZED DEDUCTI0>S 1 7 /
(Adjusted gross- income classes and monev figures in thousands of dollars'
Deduction for Payments
Tax due
Losses ._ Medical, MiscelAmount of
Total
Number
Adjusted
on 1950
Tax
Tax liaNet
Net
at time
dental,
from
exempAdjusted ^ross income classes 1/
laneous
deducof
Contribu- Interest
gross
bility 1 5 / withheld declaincome 2 4 / deficit 25/ tion 1 4 /
of filing
Taxes
20/
fire,
etc.,
deductions
returns
tions 18/ 19/
income 13/
ration 16/
storm,
expenses tions 23/
etc. 21/ MMMM
22/ ,
Taxable returns:
27
140
(30)
18
3,241
0.6 under 0.75
395
3,410
184
(30)
5,402
3,804
38
158
502
1,515
3,013
214
42,929
51,476
0.75 under 1
12,646
4,097
3,832
1,376
71,548
64,122
574
2,406
362
68,674
5,082
7,345
747
1,326
1 under 1.25
98,418
30,663
3,244
114,457
129,082
546
10,482
8,692
1,890
5,810
1,528
86,380
7,837
10,395
755
1.25 under 1.5
131,348
40,339
6,717
14,349
5,158
124,677
171,686
10,123
2,822
1,170
183,751
15,850
19,887
1,458
3,504
1.5 under 1.75
272,731
71,052
10,429
211,155
20,471
1,373
21,248
343,783
4,639
12,891
30,915
2,674
3,467
239,162
24,748
382,415
1.75 under 2
9,887
2,867
28,707
15,329
104,129
259,231
486,542
28,432
18,906
34,875
42,322
2,941
4,458
295,507
134,347
2 under 2.25
19,373
496,840
38,027
631,187
34,733
13,145
25,436
3,631
296,816
394,465
42,936
53,431
4,008
5,221
640,782
25,399
169,820
2.25 under 2.5
-44,427
4,714
.
341,223
i8,541
45,340
810,602
31,401
5,852
58,276
69,188
4,949
467,562
803,689
2.5 under 2.75 •
207,799
32,668
384,857
51,651
4,568
54,113
25,019
39,778
1,011,489
592,023
65,809
79,088
5,840
6,444
976,457
2.75 under 3
1,210,257
32,469
233,801
420,166
57,306
34,295
49,162
6,676
53,891
184,258
222,024
14,564
14,782
1,609,498
3 under 3.5
663,932 2,669,108
105,053
1,026,623
3,333,041
151,847
133,723
18,296
148,264
106,751
1,870,403
230,751
271,970
16,169
16,888
127,551
757,679 3,194,160
3.5 under 4
20,278
146,930
1,055,123
3,951,838
132,641
159,698
170,581
1,742,023
256,162
287,151
16,819
18,395
936,077
22,517
133,789 . 136,067 757,015 3,210,837
4 under 4.5
3,967,851
168,086
139,158
157,398
1,410,631
234,531
256,090
17,262
16,533
647 ,179 2,754,299
101,675
133,365
155,342
3,401,476
135,548
124,387
16,860
4.5 under 5
716,843
442,913
456,265
36,218
33,010
2,053,541
146,294
235,462 1,050,213 4,583,974
5,634,187
225,547
29,129
5 under 6
1,033,154
220,948
192,832
1,049,182
294,656
288,073
32,625
23,145
646,211 2,723,539
87,118
157,208
134,914
113,984
134,521
18,466
6 under 7
523,336
3,369,749
179,424
157,965
30,828
19,178
500,248
363,379 1,507,930
95,205
12,164
47,320
72,059
60,443
76,188
7 under 8
251,086
1,871,309
126,908
97,240
26,226
18,005
288,228
985,372
64,179
236,353
1,221,725
37,247
50,376
6,770
29,360
8 under 9
144,395
48,423
186,236
96,777
67,373
25,411
15,078
708,942
36,385
4,286 - 20,489
47,661
170,402
92,963
879,343
34,999
26,381
9 under 10
85,574
55,187
24,919
14,405
141,484
142,522
595,033
15,544
41,024
29,979
20,897
4,360
10 under 11
70,355
737,555
30,716
81,192
48,283
27,223
13,922
119,033
541,544
36,450
124,281
58,033
28,194
13,438
11.under 12
665,823
25,136 ' 17,994
3,069
81,723
45,321
29,937
14,957
101,860
112,625
517,706
30,835
2,730
12 under 13
50,498
24,832
16,608
26,082
11,539
630,330
76,657
38,360
28,970
.15,179
84,920
94,065
466,234
2,497
24,925
13,352
23,463
8,912
13 under 14
41,568
560,299
20,896
1
35,944
31,474
14,342
76,14Q
73,937
444,897
23,459 . 86,753
14 under 15
2,115
36,692
19,783
11,608
22,455
7,334
531,650
150,152
166,557
77,688
371,564
274,470
337,768 1,975,675
133,997
8,344
86,061
15 under 20
2,313,443
92,432
25,189
44,501
81,240
116,157
183,985
78,568
359,952
177,011
59,933
249,971 1,669,628
15,387
86,071
63,293
73,934
6,434
20 under 25
1,919,600
30.991
90,233
175,298
76,669
329,713
117,120
42,013
4,795
8,802
183,718 1,367 ,'842
25 under 30
1,551,559
48,291
22,090
57,726
56,809
581,652
131,435
.329,954
139,058
139,817
260,914 2,103,627
9,751
57,954
84,221
30 under 40
2,364,539 . 70,631
31,436
68,733
6,920
285,233
113,841
89,901
476,550
75,879
39,807
4.733
176,220 1,489,320
43,832
5,153
40 under 50
1,665,542
20,266
57,430
37,400
236,167
91,204
43,299
379,576 - 60,808
27,179
122,143 1,060,307
39,705
3^396
2,743
50 under 60
2i,S67
34,685
14,436
1,162,450
43,730
198,643
74,294
310,915
27,043
1,505
20,062
90,330
796,902
-887,232
29,249
2,562
60 under 70
. 13,728
26,380
10,573
167,921
58,826
254,072
32,642
17,663
612,136
69,534
7,859
22,179
2,297
9,119
681,669
20,919
888 ' 15,392
70 under 80
24,995
143,972
49,708
12,679
214,-8l6
58,667
493,026
18,077
1,949
633
13,996
6,636
551,693
17,376
80 under 90
6,514
180,054
19,065
123,596
40,434
8,939
45,657
. 395,574
9,532
1,723
541
4,657
14,534
5,026
441,231
14,302
90 under 100
577,472
49,008
409,387
128,132
20,788
143,827 1,170,469
32,495
15,634
4,848
915
10,951
46,844
43,091
1,314,296
100 under 150
233,955
66,483
19,889
7,108
315,619
16,417
73,607
578,336
20,509
2,305
243
651,943
7,332
3,803
26,801
150 under 200
158,660
39,032
205,192 . 10,720
3,400
52,324
354,977
1,589
107
13,968
V
18,842
4,916
12,903
1,838
407,301
200 under 250
1,555
126,943
5,346
100,419
22,665
29,423
209,395
39
6,899
2,654
7,531
1,009
238,817
11,292
876
2S0 under 300
31,024
5,609
129,428
38,547
1,558
163,700
1,643
8,359
262,300
15,447
9,903
26
3,168
300,847
880
300 under 400
683
95,921
2,836
78,691
15,882
150,303
5,305
879
6,409
24,613
11
174,916
9,828
2,180
393
400 under 500
122,927
26,657
150,722
233,674
770
6,223
31,578
3,103
2,647
1,138
11
265,252
14,447
7,112
440
500 under 750
286
86,395
1,023 " 73,616
12,698
817
5,291
21,175
127,855
4,284
9,677
1,105
1
175
149,030
750 under 1,000
70,474
123,194
188
82,342
520
12,293
2,546
7,747
641
4,038
411
3
15,386
114
138,581
1,000 under 1,500
58
44,275
193
40,781
3,363
157
2,710
9,806
62,299
342
1,663
81
72,105
4,854
41
1,500 under 2,000
124
49
46,644
43,514
3,507
2,245
852
1,192
9,935
69,116
79,051
5,434
212
33
2,000 under 3,000
14
21,115
IS
663
36,776
25,401
32
4,331
829
4,900
41,676
3,339
53
12
3,000 under 4,000
35,231
13
25,309
12
23,158
93
955
14
619
4,368
2,140
39,599
2,686
9
4,000 under 5,000
15
31,114
1,471
9,933
48,055
34,390
16
3,321
134
1,232
139
6,958
57,989
8
5,000 or more
14,535,543 8,143,810 3,500,537 3,932,797 1,451,937
8,724,546
53,109,091 2,128,527 1,360,020 2,043,508 248,413 1,260,182 1,881,295 8,921.944 44,187,158
Total taxable returns

Overpayment
(refund, or
credit on
1951 tax)

-'
—
-.
-.
--•m

. -

404,534
28,552
44,341
84,752
76,592
120,285
106,598
76,172
110,707
86,845
73,887
87,489
119,581
73,960
53,826
47,631
1,595,752

28/726,202
~
11,504
30,474
73,180
85,810
167,583
171,502
142,808
235,238
205,661
194,020
250,670
386,456
273,424
227,899
277,226
29/2,007,253

2,333
1,560
2,060
5,136
4,699
8,389
8,813
6,723
11,217
10,030
8,382
9,217
18,451
12,760
9,993
12,052
131,815

4,084
2,005
1,267
3,041
3,400
6,134
7,008
6,575
8,852
8,208
8,419
11,906
20,634
12,252
12,970
22,237
138,992

5,376
2,758
3,450.
7,036
'7,694
12,811
11,068
8,968
13,672
11,518
9,964
11,858
18,622
11,857
11,593
13,382
161,727

10,320,298 29/55,116,344 2,260,342 1,499,012 2,205,235
Grand total
940,433
752,741
Taxable returns with adjusted gross income 7,559,950 129/21,524,013 1,017,996
under $5,000 and nontaxable returns
33,592,331 1,242,346 1 .746,271 1,264,802
2,760,348
3 \ Taxable returns with adjusted gross income
|
of $5,000 or more

-1

1,228
(30)
298
216
3,466
966
1,241
1,225
1,789
3,817
3,551
1,941
3,100
5,656
3,968
26,576
59,387

4,164
4,806
4,738
13,373
14,245
20,572
25,502
24,066
25,793
23,115
17,538
22,294
34,374
23,085
20,173
22,519
300,357

19,203
2,021
851
12,331
5,120
17,673
19,197
'5,859
3,664
32,468.
42,846
37,764
4,261
50,978
6,825
55,698
113,031
12,292
65,923
107,188
55,287
89,677
7,730
9,127
70,449
166,216
13,681
70,370
136,867
133,952
12,692
60,548
12,541
69,758
181,016
27,932
264,054
123,111
24,041
89,649
183,964
81,815
147,169
23,018
52,141
148,905
145,531
218,676 1,010,952 1,787,106

745,405
5,945
6,396
2,135
2,931
.1,147
1,610
2,156
1,428
1,576
(30)
f30)
(30)
(30)
(30)
17,209
790,802

605,357
37,995
39,162
80,651
91,966
163,048
142,271
* 124,160
200,333
165,814
159,697
204,264
297,265
205,291
165,766
163,256
2,844,296

9,787
704
1,044
2,568
2,544
4,174
4,977
3,618
5,690
6,432
5,191
6,901
10,176
6,370
6,422
7,885
84,483

307,800 1,560,539 2,099,971 9,932,896 45,974,264

790,802 17,379,839

8,143,810 3,585,020

163,245 1,101,162

790,802 11,850,565

1,162,657 1,437,440

144,SS5

866,172 4,841,748 17,475,076

459,377 1,233,799 5,091,148 28,501,188

5,529,274

20,677
897
136
955
640
773
1,424
1,658
1,363
777
672
711
2,551
1,276
1,015
5,304
40,829

3,973,626 1,451,937
131,230

132
2,215
4,336
4,839
8,998
12,504
14,847
19,724
21,712
25,563
67,112
74,276
68,204
55,354
82,600
49,188
28,546
14,562
11,086
8,936
8,234
8,490
5,853
5,619
22,834
16,756
12,485
18,773
12,425
8,602
5,752
5,317
3,859
3,041
9,056
4,708
' 3,220
1,486
2,362
1,487
1,964
942
945
62
501
76

60
741,445

30,464
1,600
1,178
3,525
3,185
4,948
6,403
5,276
7,053
7,211
5,864
7,610
12,727
7,646
7,437
13,180
125,307
866,752

98,918 1

504,923

6,981,153 2,i47,58o| 3,842,396 1,353,019 I

361,829

for 1950,
nontaxable returns and by adjusted gross income classes: Frecmency distributions of all returns for each
stiecifie Individual
a o n m i .» •returns ~,"
' by
~J taxable
—-—"--"= and
=^^ auuuamujs
-*~
"•source
-"""rcaof
oxincome
incomeor
orloss
losscoapr
comprising adjusted gross incoaia, for each type of tax payment, and for tax overpayment; also distributions of returns with
itemized deductions for selected items
PART I. - ALL RETURNS
Adjusted gross income classes 1/
(Thousands of dollars)
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
3 under 3.5
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
13 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
30 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
Total taxable returns

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
66

Nontaxable returns: 26/
No adjusted gross income 27/
Under 0.6
0.6 u M e r 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

67 1

Total
number
of
returns

Salaries
and
wages

. 368,453
1,201,660
1,-155,515
1,507,851
1,693,386
1,640,026
2,067,053
2,065,115
2,163,146
2,422,594
4,593,387
4,075,219
3,300,418
2,439,982
3,025,105
- 1,523,868
797,054
469,495
299,177
215,904
156,347
125,378
99,119
82,366
256,019
139,837
•33,645
91,105
45,357
25,064
15,535
9,995
7,083
5,012
11,564
3,948
1,872

896
891
399
446
177
114
41
35
•

9
8

Dividends 31/ Interest 31/

326,535
1,096,034
1,072,322
1,345,281
1,513,741
1,494,375
1,866,063
1,888,729
1,998,702
2,227,490
4,283,762
3,811,903
3,076,876
2,261,058
2,770,424
1,349,520
668,521
366,033
217,309
151,279
104,463
80,397
61,448
50,993
154,625
83,168
43,345
53,847
27,646
15,532
9,782
6,535
4,525
3,233
8,027
2,797
1, 330

657
613
298
332
134
79
30.
28
6
5
8

Number of returns uith Annuities
Rents and royalties
and
Net profit Met loss
pensions

7,434
19,951
23,035
47,498
66,930
55,845
72,548
78,728
88,985
94,745
199,630
218,957
222,525
192,540
352,003
250,481
175,790
138,887
105,988
84,937
69,036
58,159
48,956
41,142
141,616
87,237
55,301
63,807
34,693
19,920
12,608
8,427
6,044
4,313
10,216
3,573
1,718

10,110
33,758
42,572
64,384
96,022
88.000
103^702
106,969
109,561
140,099
278,271
290,909
300,019.
243,165
425,102
277,163
173,476
134,348
95,454
75,633
59,602
50,718
41,684
34,698
113,-385
72,807
47,031
54,381
29,636
16,913
10,927
7,255
5,265
3,773
9,120
3,231
1,616

844
842
384
429
171
105
39
33
12
9
8

760
770
361
394
160
100
37
30
10
7
8

769
522
394
314
850
314
196
91
90
47
56
18
14
4
4
1
1
2

1,348
4,381
3,380
10,804
23,620
13,500
15,879
12,529
17,564
19,923
30,450
20,974
23,020
16,970
28,141
16,633
10,771
7,451
5,400
4,677
3,516
2,930
2,286
1,921
7,237
4,578
2,675
3,333
1,859
1,127

8,108
32,749
33,156
62,079
81,258
68,895
94,203
97,189
101,915
129,971
260,330
259,718
250,846
191,335
277,977
163,910
108,317
70,085
50,167
38,838
30,903
24,209
21,810
18,308
59,398
34,402
22,670
25,503
13,266
7,587
4,902
3,167
2,329
1,596
3,920
1,410

(33)
5,759
6,740
12,529
16,603
21,692
25,475
27,477
30,570
43,179
86,105
85,289
77,794
55,230
91,930
44,066
24,717
15,786
11,087
7,891
6,372
4,901
3,990
3,348
11,078
6,842
4,133
4,743
2,380
1,340

685
312
329
150
148
72
42
14
18
5
3
4

940
615
444
366
863
314
184
111
95
56
60
28
16
7
5
2
2
2

33,186,682

34,506,941

3,172,114

3,660,001

322,614

2,653,753

743,330

404,534
3,780,013
900,559
1,111,097
1,335,351
1,077,985
1,017,574
1,121,891
712,305
798,872
744,832
455,174
794,942
373,252
144,611
100,374

70,211
3,271,096
672,907
761,711
933,808
782,558
767,532
880,581
571,630
667,287
623,075
393,835
691,912
333.039
126', 267
81,321

23,135
58,875
35,950
61,903
74,717
55,885
38,762
38,455
22,532
19,826
19,736
3,576
16,526
7,575
5,869
6,377

36,024
106,396
54,758
100,460
100,052
85,037
60,376
62,021
30,581
29,593
21,878
14,691
23,623
8.319
8,268
3,137

2,864
16,860
13,490
28,665
42,145
24.6C1
25,2fj5
15,195
9,446
8,425
6,760
1,348
3,707
(33)
1,343
1,750

41,675
149,684
75,013
134,329
142,954
97,012
77,486
74,206
53,797
51,120
50,633
20,610
45,591
26,047
12,362
18,480

24,509
19,846
7,821
7,574
12,886
9,873
10,904
9,209
12,579
6,176
7,821
5,185
8,228
6.4d3

3J757
2,656

Partnership
Business and profession
Net profit Net loss
Net profit
Net loss

30,787
66,105
51,728
131,785
131,815
108,210
181,167
173,453
164,828
197,718
343,227
304,342
263,598
219,388
264,337
179,082
125,726
93,684
71,536
54,346
42,465
35,963
28,940
24,424
77,273
41,138
23,763
24,516
11,183
5,555
3,204
1,954
1,329

804
1,800

581
233
96
113
33
40
16
11
4
3

1
3,432,310

(33)
4,094
5,452
12,984
15,335
14,691
22,275
25,025
30,611
28,632
60,179
51,517
41,165
30,494
35,102
20,456
13,891
9,833
6,572
5,647
4,338
3,890
2,766
2,536
8,034
5,456
3,103
- 4,016
2,226
1,364
1,011

694
557
424
1,125

508
261
132
148
92
96
48
28
9
11
5
3
5

7,414
22,252
20,647
34,127
34,534
29,870
51,267
50,880
49,365
60,851
104,797
113,206
95,032
91,510
124,923
94,022
65,352
52,123
40,655
34,200
27,406
• 23,958
19,883
17,600
59,715
38,542
23,656
27,931
14,210
8,430
5,369
3,453
2,442
1,742
3,909
1,326

(33)
1,348
(33)
2,070
5,739
2,052
4,501
2,469
4,541
6,930
14,454
13,384
14,365
8,459
15,041
9,035
8,748
4,467
3,251
2,425
2,541
1,934
1,375
1,349
4,630
3,136
1,991
2,420 '
1,517

590
272
253
101
106
46
29
6
7
3
1
2

841
572
397
311
248
559
236
130
84
73
37
72
28
17
6
8
2
1
2

477,635

1,453,015

150,678

11,453
311,826
134,873
226,239
292,631
241,010
232,765
237,633
145,046
138,148
129,551
65,413
123,912
54,516
23,816
20,780

258,326
59,632
20,817
22,752
21,037
27,534
13,970
25,021
9,032
14,087
8,625
7,951
9,923
6,841
2,152
3,130

10,013
53,253
25,682
32,820
40,977
37,270
35,268
41,771
24,468
26,863
24,454
14,621
28,231
10,240
3,787
4,805

48,672
7,991
2,806
5,176
7,197
5,155
4,531
4,144
2,102
2,756
3,460
1,388
1,795
(33)
(33)
1,925
100,250

Total nontaxable returns

14,873,416

11,640,270

496,309

750,270

202,900

1,069,004

155,507

2,394,612

510,830

414,535

Grand total

53,060,098

46,147,211

3,868,423

4^410.271

525,514

3,727,762

899,337

5,876,922

988,465

1,872,550

250,928

45,567,221

39,903,141

1,390,690

2,657,81.1

417,242

2,740,806

650,623

4,762,763

853,958

1,180,287

183,144

7,492,877

6,244,070

1,777,733

1,752,460

108,272

988,956

248,714

1,114,159

134,507

692,263

67;784

68! taxable returns uith adjusted gross

Income under $5,000 and nontaxable
I -eturns
69 |T.».ablt ratuxns with adjusted gross
income o' #5,000 or more

For f o o ^ t e s , see pp. 19-20; for extent to which data are estimated, see pp. S-<S„'

Table 2. - Individual returns for 1950, by taxable and nontaxable returns and by adjusted gross income classes: Frequency distributions of all returns for each
speoific 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

Adjusted gross income classes ]J
(Thousands of dollars)

' Number,of returns uith
'• Sales or exchanges
of capital assets
Net gain

•1
2
3
4
5
6
7
8
.9

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
23
30
31
32
33
34
35
36
37
38
39
40
41
42
43
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 li'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 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
IS 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
Total taxable returns

.Nontaxable returns: 26/
No adjusted gross income 27/
50
51
Under 0.6
52
0.6 under 0.75
53
0.75 under 1
54
1 under 1.25
1.25 under 1.5
55
56
1.5 under 1.75
57
1.75 under 2
58
2 under 2.25
53
2.25 under 2.5
60
2.5 under 2.75
61
2.75 under 3
62
3 under 3.5
63
3.5 under 4
4 under 4.5
64
65
4.5 or more
Total nontaxable returns
66 1
Grand total
67 1
68 1 Taxable returns with adjusted gross
1 income under $5,000 and nontaxable
1 returns
6 il Taxable returns with adjusted gross

Net loss

2,359
9,833
9,149
18,043.
28,111
20,400
30,096
33,139 .
41,614
51,531
97,493
103,230
114,776
93,172
157^299
119,337
93,492
69,238
52,146
42,880
35,178
28,862
24,710
21,549
75,560
47,011
30,775
37,352
20,866
12,461
8,230
5,440
4,087
2,989
7,287
2,730
1,305
657
679
312
352
129
88
27
25
7
7
6

Sales or exchanges of
property other than .
capital assets
Net gain
Net loss
(33)
(33)
(33)
(33)
2,022
3,380
3,410
2,102
2,112
3,083
3,268
4,234
5,853
5,889
11,174
5,337
4,335
2,375
1,320
1,698
1,128
1,175
1,021
764
2,283
1,419
824
910
384
. 190
153
80
" 61
35
167
62
30'
19
13
17
11
4
4

1,556,019

1,358
(33).
4,718
7,177
8,212
7,891
8,605
' 16,324
12j085
13,373
36,115
41,154
40,233
32,905
54,340
40,832
27,365
19,030
15,210
12,616
10,851
9,519
7,860
6,936
25,951
15,876
10,188
12,707
6,928
4,031
2,583'
1,724
1,224
307
2,013
661
341
150
140
57
73.
40
16
12
6
4
1'
2
521,098

38,869
41,042
13,006
29,580
34,644
30,680
30,006
25,091
. 18,488
17,457
16,440
8,615
16,249
9,727
4,561
5,489
339,944

26,474
26,193
6,457
9,309
13,937
10,944
9,239
8,278
6,880
5,552
7,841
3,767
2,846
3,450
3,093
2,680
146,940

2,134
2,736
2,042
3,063
3,033
4,728
2,383
4,064
2,696
(33)
1,358

Tax
withheld

4,763
34,608
43,723
59,544
90,461
92,871
118,659
121,971
122,619
144,150
283,208
274,779
255,231
222,929
372,064
266,244
209,186
172,114
138,260
112,316
90,392
76,743
65,677
57,610
191,900
115,022
72,099
81,871
42,099
23,691
14,863
9,630
6,847
4,873
11,327
3,873
1,840
885
880
394
446
177
113
41
35
12
9
8
4,013,068

1,698,558

2,052
2,062
(33)
(33)
34,791

22,585
5,949
2,409
3,460
3,887
5,155
2,776
3,460
4,134
4,808
2,092
1,378
1,805
(33)
(33)
(33)
65,943

3,072
7,821
6,076
7,107
8,445
7,097
4,411
5,055
2,032
3,043
4,401
(33) 1,745
2,706
(33) '
(33)
64,614

12,334
90,311
36,691
46,903
69,390
48,590
44,247
45,264
33,166
35,168
33,469
13,260
37,194
17,281
7,492
4,258
580,018

56,621
3,046,095
531,598
521,277
623,463
522,225
516,324
622,952
381,881
460,094
454,401
284,050
532,879
259,930
104,290
66,159
8,984,239

57,544
38,120
14,401
19,637
26,519
27,977
25,638
27,663
16,970
17,380
13,531
9,155
18,908
8,199
3,780
5,352
330,774

-1
-

•

297,625
1,016,590
1,007,632
1,251,645
1,422,077
1,426,963
1,788,024
1,832,645
1,336,795
2,162,173
4,132,379
3,752,898
3,026,244
2,232,027
2,733,234
1,324,375
652,328
352,639
207,263
142,883
37,821
75,445
57,273
46,943
142,286
75,854
45,395
48,725
25,077
14,060
8,818
5,796
4,075
2,914
6,692
2,260
1,081
• 524
502
243
264
99
59
20
17
53'
7
33,420,703

Payments on
1950 declaration 16/

116,597

12,084
43,375
36,286
52,811
52,418
54,478
76,800
84,383
98,521
111,830
192,688
188,119
156,621
116,836
120,647
72,421
46,717
32,024
20,944
16,42812,403
9,636
8,252
7,677
22,629
13,739
9,270
11,037
5,856
3,604
2,278
1,582
1,151
861
1,092
420
217
102
134
56
70
28
15
" 7
3
3
2
3

1,685
2,026
4,044
3,727
8,118
9,133
3,149
7,781
6,790
. 8,792
19,142
20,390
17,375
12,683'
23,637
13,627
16,030
12,648
10,026
8,629
7,950
6,342
6,414
4,907
17,863
12,451
8,744
11,186
6,640
4,358
2,918
2,021
1,590
1,159
3,281
1,326
756
371
370
173
202
103
56
23
19
- 8
5
4
322,684

(33)
(33)
2,443
2,746
3,460
3,480
4,124
4,858
4,184
10,093
9,836
10,908
10,293
12,168
7,310
4,507
3,474
2,382
2,005
1,590
1,308
1,164
1,054
3,647
2,215
1,274
1,532
958
499
344
205
153
89
304
122
50
24
33
19
8
12
- 6
3
2

1
82,276

Income from Miscelestates and laneous
trusts
income 32/

Tax due
at time
of filing

Overpayment
(refund, or
credit on
1951 tax)

70,776
237,501
335,397
443,485
512,968
48"5,986
620,462
621,509
652,625
735,160
1,694,561
1,564,788
1,297,502
931,070
1,201,372
754,613
468,033
324,908
212,332
157,605
114,813
93,025
75,446
63,122
198,979
110,343
67,923
74,176
37,336
20,835
12,371
8,286
• 5,849
4,153
9,620
3,237
1,484
710
713
313
350
132
81
33
30
10
9
7
14,286,639

-.
-

294,323
936,488
761,747
1,002,956
1,105,353
1,057,304
1,340,545
1,336,120
1,386,670
1,562,281
2,737,872
2,407,122
1,929,308
1,407,946
1,808,468
761,667
325,164
141,693
85,105
57,019
40,237
31,563
23,013
18,594
• 55,262
28,680
15,328
16,455
7,815'
4,081 "
2,488
1,634
1,206 '
830
1,898
692
384
184
170
84
93
44
31
8
5
2
1
22,696,533
105,601
3,079,227
543,917
538,752
646,492
546,325
540,127
646,411
396,422
475,372
464,795
231,777
548,644
266,067
107,703
71,199
9,268,831

1,895,963

668,038

117,067

182,540

387,298

2,278,576

42,404,942

4,343,842

14,286,639

31,965,364

992,890

377,784

78,867

1-34,073

195,461

1,857,268

36,329,956

2,200,295

10,263,790

28,535,466

903,073

290,254

38,200

. 48,467

.191,837

421,308

6,074,986

2,143,547

4,022,849

•

3,429,898 J

PART H . - HETIIRHS WITH TTEMTTren DEDUCTIONS 17/
Number of returns uith —
Adjusted gross income classes L/
(Thousands of dollars)

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
3 under 3.5
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
13 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
S,OC0 or more

5,402
71,548
114,457
124,677
211,155'
259,231
296^816
341,223
384,357
420,166
1,026,623
1,055,123
936,077
716,843
1,033,154
523,336
251,086
144,395
92,963
70,355
58,033
50,498
41,568
36,692
133,997
86,071
56,809
68,733
37,400
21,667
13,728
9,119
6,514
4,657
10,951
3,803
1,838

876
880
393
440
175
114
41
33
12
9
8

Total taxable returns
Nontaxable returns: 26/
No adjusted gross incomw 27/
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
ToO-i nontaxable returns
Gran.': vital
Taxable returns vita adjusted gross
incoma urder $5,000 and non'-axoblsi
return*
Taxabla returns with adjusts: gross
'•..tia-ri of $5,000 a: :<•••.<.-?

Number
of
returns

Deduction for Contributions

Interest

3,380
61,771
104,283
114,457
195,890
243,898
276,823
321,497
361,077
400,709
983,910
1,016,523
909,309
701,481
1,004,822
' 511,003
243,170
140,135
90,655
68,531
56,715
49,493
40,586
35,848
131,182
84,428
55,600
67,293
36,436
21,232
13,457
8,918
6,396
4,533
10,750
3,743
1,812

865
365
387
436
170
112
41
32
" 12

9
8

Taxes

11,131
27,060
30,741
58,431
90,189
114,563
149,721
185,400
231,109
639,358
718,080'
677,292
542,947
779,350
395,680
192,270
103,517
65,030
48,134
39,733
33,051
27,700
23,114
82,121
50,877
31,714
37,938
20,555
11,810
7,666
5,033
3,743
2,658
6,476
2,321
1,164

2,022
54,337
94,183
98,241
179,991
230,378
258,475
308,953
355,208
391,903
979, 945
1,016,360
914,696
637,980
1,012,269
507,790
245,920
138,934
89,712
67,960
56,055
49,044
40,374
35,734
130,495
83,992
55,338
66,567
36,513
21,159
13,396
3,892
6,343
4,554
10,701
3,739
1,799

562
581
286
231
128
78
31
23
7
67

857
868
391
429
171
112
40
33'
12
7
0

Losse3 from
fire, 3torm,
etc.

Medical,
dental,
etc.,
expenses

4,381
7,781
8,762
13,153
25,642
27,664
31,698
38,191
53,039
140,863
152,664
146,632
114,417
196,150
106,303 *
51,195
27,364
16,752
13,837
9,956
8,369
6,452
5,958
19,015
11,040
7,807
9,201
5,401
3,104
2,128
1,445
1,130

805
2,029

736
404
224
227
97
132
57
33
16
14.
4
4
2

8,724,546

8,384,743

5,449,898

8,272,885

1,272,278

404,534
28,552
44,341
84,752
76,592
120,285
106,593
76,172
110,707
86,845
73,887
87,489
119,581
73,960
53,826
47,631

11,349
19,619
32,823
64,688
59,622
93,839
87,923
61,250
93,053
76,258
63,633
76,188
109,568
67,407
49,028
42,954

8,149
10,053
7,785
23,107
18,685
32,999
36,339
28,281
49,949
43,586
40,210
56,035
84,380
49,325
39,382
35,602

14,541
18,996
27,728
31,313
55,598
30,816
79,695
53,871
93.984
74,216
62,602
78,884
110,575
65,702
Si,724
41,299

1,522
(33)
1,362
3,063
4,391
4,738
8,792
4,401
6,413
10,140
6,790
7,157
14,601
11,201
10,130
12,429

2,359
38,091
66,479
73,913
121,203
154,233
174,306
198,646
218,482
225,815
557,310
554,715
470,780
327,697
443,428
212,767
•89,757
49,889
29,960
21,203
16,614
13,515
10,203
7,978
25, 011
12,043
6,553
6,777
3,088
1,550

811
467
324
247
431
108
56
17
11
4
3
1
2
1

_
4,137,354
7.527
11^648
21,628
47,384
41.264
66,292
69,128
49,586
74,534
51,704
41,538
54,043
76,866
48,741
31,304
27,324

Miscellaneous
deductions

Net

Tax

income

deficit

withheld

_ ' 2,022
43,810
_ 84,270
_
93,746
_ 146,278
_
_ 202,310
236,060
_ 282,676
324,261
_ ' 358,918
^ 913,113
_ 962,419
_ 859.930
- 659,702
_
_ 942,083
_ 464,119
214,066
_ 113,572
_
_. 69,039
51,039
_
40,626
_
34,513
27,210
23,726
_
84,616
_
52,043
33,756
_
39,632
21,866
12,670
8,095
5,427
_
3,854
_
2,763
_
6,463
2,205
1,067
_
511
498
_
239
259
_
97
59
20
15
5
3
7
~
" 7,425,728

(33)
24,283
49,252
53,970
103,846
142,338.
153,485
198,773
228,920
272,359
698,829
774,036
703,497
529,593
764,430
382,830
178,890
96,464
60,992
45,955
37,798
31,939
26,159
23,223
79,856
51,569
33,055
40,766
23,020
13,794
9,007
6,104
4,517
3,289
8,089
2,984
1,509

5,402
71,548
114,457
124,677
- 211,155
259,231
296,816
341.223
384,857
420,166
1,026,623
1,055,123
936,077
716,843
1,033,154
523,336
251,086
144,395
92,963
70,355
58,033
50,498
41,568
36,692
133,997
86,071
56,809
68,733
37,400
21,667
13,728
9,119
6,514
4,657
10,951
3,803
1,838

737
739
341
372
160
102
40
29
11
8
8

876
880
393
440
175
114
41
33
12
9
8

5,863,043

8,724,546

3,920
4,581
8,102
30,807
24,671
39,836
45,675
30,761
47,033
43,426
41,278
49,382
72,081
53,517
40,273
33,141

17,357
40,560
79,239
72,458
117,519
104,853
73,099
108,605
85,447
73,173
87,092
118,827
73,592
53,082
43,539

404,534
11,195
3,781
5,513
4,134
2,766
1,745
3,073
2,102
1,396
(33)
(33)
(33)
(33)
(33)
4,092

„

56,621
8,525
14,184
34,484
23,313
45,912
47,647
30,083
60,146
51,087
44,000
59,799
83,142
52,692
39,886
31,159

Payments on
1950 declaration- 16/

Tax due
at time
of filing

(33)
6,106
9,813
10,274
20,827
24,955
28,668
32,001
35,585
36,129
82,542
79,788
77,910
58,432
115,694
79,587
57,914
45,297
36,133
31,083
28,960
27,602
25,199
24,277
97,122
70,903
49,505
62,557
35,122
20,^59
13,228
8,837
6,333
4,555
10,753
3,742
1,807

3,370
30,067
39,593
38,251
72,398
71,525
77,059
77,406
87,146
96,054
200,412
212,302
210,017
165,933
247,312
146,893
90,700
68,178
47,232
38,716
32,937
30,323
27,230
24,454
94,577
64,054
44,612
54,646
30,306
17,795
11,378
7,493
5,333
3,849
9,061
3,116
1,452

868
869
388
439
175
113
41
33
12
9
8

691
702
307
345
131
81
33
28
10
9
7

1,362,864

2,485,524

57,544
3,741
2,776
5,624
4,234
8,081
8,438
8,388
7,438
6,436
4,392
6,763
8,648
5,456
3,283
4,855

_
_
_
_
-

Overpayment
(refund, or
credit an
1951 tax)

2,032
40,470
74,190
85,078
138,083
187,369
219,420
261,795
297,364
322,417
823,832
841,126
723,334
550,206
784,494
375,422
160,336
75,817
45,361
31,429
24,806
20,025
14,138
12,028
38,662
21,623
11,987
13,767
6,948
3,754
2,286
1,552
1,155

790
1,850

668
382
183
170
84
92
43
31
8
5
2

_
1
6,216,615
105,601
11,859
16,276
40,068
26,863
52,932
55,054
38,094
66,543
56,819
46,994
65,184
90,035
57,097
42,822
35,712

1,595,752

1,009,202

563,067

986,550

107,324

721,111

568,484

1,148,442

447, 310

682,680

146,097

10,320,298

9,393,945

6,013,765

9,259,435

1,380,102

4,859,065

6,431,527

9,872,988

447,310

8,108,408

1,508,961

2,485,524

7,024,568

7,559,950

6,704,210

4,039,389

6,569,227

372,711

3,90S,240

4,502,681

7,112,640

447,310

5,852,195

649,137

1,381,533

5,374,669

2,760,348

2,033,735

1,'373,876

952,825

1,328,846

2,760,348

2,256,213

859,824

1,103,991

1,649,899

2,690,2JG

i
extent to which data are ••sti.natad, see pp. 5-6

MMMM—

807,953

14 -

Table 3. - Individual returns for 1950, by taxable and nontaxable returns, by adjusted gross income classes, by marital status
and sex of taxpayers Number of returns, adjusted gross income, exemption, and tax liability
(Adjusted gross Income classes and money figures in thousands of dollars)
Adjusted gross income classes X/

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
Z 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 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
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 '

Total
number of
returns

368,453
1,201,660
1,155,515
1,507,851
1,693,386
1,640,026
2,067,053
2,065,115
2,163,146
2,422,594
4,593,387
4,075,219
3,300,418
2,439,982
3,025,105
1,523,868
797,054
469,495
299,177
215,904
156,347
125,378
99,119
82,366
256,019
139,837
83,645
91,105
45,357
25,064
15,535
9,995
7,083
5,012
11,564
3,948
1,872

896
891
399
446
177
114
41
35
12
9
8'

Total taxable returns
Nontaxable returns» 26/
No adjusted gross income 27/
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

38,186,682

404,534
3,780,013
900,559
1,111,097
1,335,351
1,077,985
1,017,574
1,121,891
712,305
798,872
744,882
455,174
794,942
373^252
144,611
100,374

All returns
Adjusted
Total tax
Amount of
gross
exemption 14/ liability 15/
income 13/

691
779
290
188
58
56
14
13
15
55,209,968

18,374,922 22,644,709

158,545,122

28/726,202
603,357
" % 265,068
3,159,403
593,526
1,020,398
976,107
1,764,810
1,506,300
2,175,248
1,463,246
2,047,616
1,653,959 .-- 3,-t 188,332
2,106,098
2,,501,829
1,514,621
1,856,708
1,898,587
2,140,965
1,941,397
2,053,949
1,308,381
1,457,438
2,557,884
2,633,760
1,394,322
1,376,972
612,305
576,253
537,555
426,028
29/20,603,154

27,983,096

Grand total

53,060,098 29/179,148,276

83,193,064

45,567,221 29/108,770,403

68,794,985

adjusted gross
more

7,492,877

70,377,873

312,440
507,756
615,519
1,540,684
1,951,438
2,638,654
4,059,283
9,860,771
11,731,990
11,705,776
10,123,678
14,983,632
9,027,087
5,473,247
3,564,791
2,527,893
2,000,544
1,577,998
1,364,566
1,163,989
1,041,371
3,811,676
2,719,997
1,995,577
2,728,351
1,763,206
1.188,377
862,910
642,503
513,667
403,798
1,165,189
564,209
338,346
192,619
233,875
140,693
205,703
108,207
80,192
29,310
30,265
14,635
13,652
19,720

221,072
720,996
693,309
1,176,730
1,401,377
1,367,139
2,204,618
2,269,988
2,617,902
3,424,319
7,020,651
7,001,100
6,085,2624,607,426
5,789,533
2,886,491
1,525,013
894,334
574,950
417,728
306,145
246,200
195,735
162,712
510,469
282,271
169,716
184,005
91,333
49,927
30,520
19,560
13,776
9,621
21,937
7,370
3,461
1,591
1,577

14,873,416

adjusted gross
and nontaxable

2,470
37,867
79,410
221,360
117,669
312,030
179,800
233,325
328,163
290,776
724,261
821,610
357,094
416,807 1,000,690
474,177 1,405,170
1,061,886 3,027,838
.1,115,355 3,133,447
1,078,595 2,760,566
965,188 2,134,266
1,502,535 2,747,961
999,266 1,400,398
654,927
734,815
472,667
421,549
354,503
267,211
296,894
191,034
246,567
137,349
225,583
109,408
201,507
86,387
186,828
71,897
757,996
221,844
615,381
122,265
505,858
73,166
791,446
79,482
590,640
39,651
446,682
21,790
357,167
13,355
281,649
8,598
236,089
6,066
195,419
4,262
613,196
9,722
328,914
3,288
209,388
1,527
129,918
707
165,726
684
97,526
316
152,615
342
87,266
128
82,342
66
44,275
17
48,833
13
25,401
4
25,309
3
34,390
3

261,501
1,049,309
1,297,733
2,083,811
2,745,812
3,073,123
4,387,731
4,903,162
5,691,283
6,961,107
14,912,416
15,242,570
13,988,086
11,569,605
16,486,505
9,820,005
5,937,515
3,970,911
2,831,132
2,261,011
1,795,883
1,563,720
1,335,375
1,192,951
4,396,990
3,110,483
2,281,381
3,126,875
2,017,205
1,367,067
1,003,761
746,954
599,859
474,876
1,386,519
676,791
414,803
244,253
304,533
177,646
268,645'
150,817
138,581
72,105
83,457
41,676
39,599
57,989

Total nontaxable returns

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

Joint returns of husbands and wives 34/
Number
Adjusted
Tax
Amount of
of
gross*
returns
income 13/
exemption 14/ liability 15/

14,398,079

For footnotes, see pp. 19-20; for extent to which data are estimated, see pp. 5-6.

265,632
374,436
393,796
1,098,638
1,237,633
1,626,873
2,535,658
5,609,708
6,124,832
5,564,825
4,318,033
5,514,623
2,763,271
1,464,277
846,874
542,341
392,530
286,982
230,236
182,302
152,140
474,704
263,578
158,556
171,557
85,217
46,454
28,173
18,073
12,701
8,829
19,967
6,669
3,067
1,390
1,360

„

604
665
242
141
32
31
7
4
7

2,754
13,415
25,305
46,034
83,081
120,737
178,837
526,858
719,710
811,108
785,815
1,310,941
890,467
587,552
408,894
304,564
251,657
206,422
187,337
167,225
154,918
620,849
507,930
417,931
654,191
493,295
373,027
296,018
234,589
196,384
160,997
501,324
267,410
165,609
100,516
123,646
75,886
114,200
60,546
43,798
16,227
15,839
7,647
9,063
10,647

117,519,784

42,827,648

13,251,260

254,167
537,877
275,035
635,240
819,024
777,164
.809,073
947,947
650,419
732,258
698,097
432,655
768,646
365,515
140,557
97,707

28/582,384
197,325
185,628
559,238
924,482
1,058,655
1,315,763
1,779,753
1,383,686
1,740,763
1,819,584
1,243,896
2,473,125
1,365,661
595,519
516,360

481,034
981,188
509,137
1,157,572
1,495,036
1,588,073
1,810,047
2,171,148
1,717,406
1,984,241
1,939,345
1,394,457
2,556,032
1,353,979
563,497
421,082

8,941,381

29/16,577,054

22,123,274

18,374,922 31,586,090 29/134,096,838

64,950,922

13,251,260_

29/71,605,043

51,273,318

3,313,654

62,491,795

13,677,604

9,937,606

6,410,419 24,810,782

11,964,503

6,775,308

18?

- 15

m a KM* \.

Table 3.

Individual returns for 1950, by taxable and nontaxable returns, by adjusted gross income classes, by marital status
and sex of taxpayer! Number of returns, adjusted gross income, exemption, and tax liability - Continued
(Adjustec gross income classes and money figure s in thousands of dollars)
Separate returns of husbands and vrives 35/
Vfomen
Adjusted
Tax
Amount of
gross
exanption 14/ liability 15/
income 13/

Men
Adjusted gross income classes 1/

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
3 under 3.5
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
13 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
GO 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

3,842
17,951
17,187
34,957
28,549
29,532
50,508
64,785
93,487
93,934
188,137
156,954
104,459
48,302
30,390
12,881
5,068
5,664
3,071
2,772
1,883
1,628
1,144
1,146
3,428
1,590

789
825
403
231
146
94
70
49
128
43
20
17
11.
4
16
6
15
10
9
4
2
2

4,498
26,415
32,139
62,017
60,207
71,480
120,082
164,592
248,430
272,625
567,003
526,069
362,291
209,264
130,732
" 75,112
34,402
40,474
25,298
25,104
18,837
20,192
12,952
14,495
48,426
32,871
21,510
28,109
17,988
12,541
9,409
7,105
5,970
4,655
15,577
7,289
4,463
4.505
3^700
1,850
9,662
5,460
18,464
17,405
20,796
13,241
8,515
14,894

1,008,573

3,459,115

1,006,554

8,368
42,996
13,797
13,095
14,790
12,762
11,093
14,762
5,045
5,368
7,727
1,687
6,054
1,67^

28/7,815
16,128
9,032
11,416
16,856
17,182
17,750
27,180
10,724
12,883
20,077
4,836
19,490
8,217

8,001
32,469
12,307
19,514
19,355
20,142
22,951
28,581
12,893
13,276
18,723
4,830
19,560
6,237

6,403
29,919
28,645
44,811
37,102
38,416
56,554
68,977
94,248
94,906
174,631
141,277
85,377
44,216
24,394
11,785
4,643
4,762
2,668
2,398
1,644
1,616

967
1,004
2,832
1.484

Total taxable returns
Nontaxable returnst 26/
No adjusted gross income 27/
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
Total nontaxable returns
Grand total
Taxable returns with
income under $5,000
returns
Taxable returns with
income of $5,000 or

Adjusted
Amount of
Tax
gross
exanption 14/ liability 15/
income 13/

Number
of
returns

adjusted gross
and nontaxable
adjusted gross
more

(36)

962
931
437
253
165
106
74
52
137
46
.. 30

23
12
4
19
6
15
11
10
4
4
4,

(36)

29/186,772

240,126

1,168,519 29/3,645,887
1,105,428 29/2,913,884

159,946

63,091

732,003

35
975
1,963
3,532
4,314
5,841
9,682
13,824
21,724
25,667
54,506
53,628
37,473
24,680
14,174
9,791
4,182
6,047
4,112
4,400
3,390
3,727
2,606
3,022
11,174
8,865
6,424
9,438
6,619
5,028
3,937
3,083
2,688
2,101
7,795
3,720
2,490
2,506
2,120

994
5,896
3,515
12,244
11,325
12,702
8,395
5,722
9,233
461,289

Number
of
returns
15,087
41,947
48,316
74,179
83,212
73,740
91,577
90,955
76,299
76,002
85,255
43,651
19,510
13,376
8,662
3,850
1,808
2,480
2,174
1,670
1,324

954
1,161

792
2,346
1,152

604
738
386
193
128
91
78
50
125
44
25
11
17
10
12
5
6
6
3

1
-

10,698
37,107
54,771
101,925
134,863
138,233
194,392
215,365
200,036
218,048
275,325
162,174
81,890
62,709
47,616
24,663
13,901
21,020
20,677
17,508
15,191
11,920
15,485
11,488
40,162
25,451
16,456
25,511
17,155
10,537
8,304
6,791
6,566
4,755
15,105
7,469
5,567
2,930
5,846
4,542
7,180
4,387
7,580
11,321
6,827

4,668

9,053
25,168
28,989
52,960
61,605
54,711
72,873
73,928
65,989
62,798
68,599
39,438
17,365
10,684
7,021
3,894
2,239
2,388
2,060
1,686
1,259

863
1,363

791
2,325
1,129

570
712
390
180
122
89
75
41
123
40
24
8
17
9
11
5
5
8
3

2
-

864,012

2,332,115

673,612

4,226
131,888
26,182
2r,453
24,485
12,439
9,729
11,737
3,368
3,350
4,030
(56)
(36)
(36)

28/7,110
42,522
17,065
18,583
27,535
16,872
15,909
22,265
7,108
7,783
10,502
(36)
(36)
(36)

2,749
93,199
22,147
28,139
33,780
21,981
18,114
23,530
6,868
8,035
9,874
(36)
(56)
(36)

(36)

254,631

(36)

(36)"

104
1,393
3,185
6,291
10,033
11,709
17,380
20,106
19,367
22,671
30,716
18,474
9,884
8,172
6,303
3,315
1,961
5,462
3,529
3,258
2,937
2,357
3.156
2,530
9,774
7,291
5,166
8,915
6,794
4,373
3,633
3,080
2,936
2,264
7,877
4,105
3,243
1,596
3,377
5,050
4,455
2,619
5,498
8,250
4,463

2,686

317,718

_
_
_
_
_
_
_
_
_
„
_
_
-

29/184,961

273,533

1,246,680

461,289 1,118,643 29/2,517,076

947,145

317,718

1,172,710

257,844 1,087,737 29/2,072,497

917,695

179,485

29,452

138,233

73,970

For footnotes, see pp. 1 9 - £ 0 ; for extent to which data are estimated, see pp. 5>»6.

203,445

30,906

444,579

Table 3.

Hen .

Taxable returnsi
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 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
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
i " 2,000 under 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more

1
•
;
j
1

Total taxable returns
Nontaxable returns! 26/
No adjusted gross income 27/
Under 0.6
0.6 under 0.75 .
0.75 urri.er 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
Total nontaxable returns
Grand total
Taxable returns with
income under $5,000
returns
Taxable returns with
income of $5,000 or

adjusted gross
and nontaxable
adjusted gross
more

Adjusted
gross
inccme 15/

Number
of
returns

Adjusted gross income classes 1/

Number
of
returns

n
Amount of
ax
exanption 14/ liability 15/

84,857
385,105
456,509
740,780
1,051,765
1,233,937
1,343,389
1,348,517
1,246,733
1,098,102
1,709,623
991,570
598,583
392,664
525,012
267,446
164,459
145,109
106,248
99,600
84,098
75,392
63,792
58,650
233,697
159,978
116,237
172,953
110,434
80,713
'64,025
46,983
37,733
35,097
104,820
53,683
39,046
22,393
37,177
15,706
25,928
19,302.
15,966
7,400
10,121
7,100
12,764
6,413

71,791
264,545
244,349
392,983
491,625
498,281
520,762
465,244
394,862
324,061
462,998
231,446
123,697
70,114
92,398
41,876
21,946
17,168
11,873
9,934
7,661
6,477
5,132
4,247
14,685
8,068
4,622
5,551
.2,755
1,610
1,100
692
479
406
955
340
197
85
120
38
50
20
13
4
4
1
4
1

5,884,002

2,373,481 6,152,394

15,707,689

4,817,270

28/74,985
602,954
209,863
160,001
232,739
172,530
138,429
137,377
59,78?
78,256
54,405
34,656
41,289
14,975
12,658
(36)

55,601
1,191,411
253,242
254,703
277,370
203,510
161,777
142,259
67,276
78,539
52,501
35,966
41,770
12,070
9,117
(36)

68,447
- 1,265,479
- 262,121
- 249,435
- 270,511
*- 146,913
- 102,369
- 74,544
- 25,257
- 24,896
- 14,134
8,419
- 6,401
- 1,695
- (36)
- (36)
- 2,522,857

20/53,908
406,139
171,938
218,869
304,688
198,007
166,108
139,523
53,320
58,902
36,829
24,039
20,703
6,251
(36)
(36)

55,972
861,137
223,565
304,802
349,707
213,910
175,472
136,311
52,267
56,874
33,505
21,187
13,126
3,878
(36)
(36)

161,448
600,682
754,314
866,649
991,221
1,013,954
1,189,184
1,223,250
1,357,430
1,333,049
2,499,694
1,830,767
1,239,546
781,290
799,513
425,697
251,506
199,437
151,016
118,255
99,759
91,650
79,157
66,947
263,029
172,186
131,601
171,951
108,422
74,899
59,113
43,572
35,923
26,571
85,828
44,141
27,381
21,806
23,935
14,855
20,172
13,461
16,379
6,669
15,448
6,700

16,962

7,516,994

19,526,419

69,326
1,801,773
323,424
191,869
206,541
128,707
85,310
72,901
28,216
33,000
20,894
12,080
12,814
4,028
3,043
'<• (36)

1,548
21,923
47,050
59,664
75,666
87,953
103,063
114,138
133,157
134,881
267,170
208,907
147,763
96,489
103,401
58,950
37,346
31,547
25,011
20,496
18,445
17,750
15,875
14,170
61,849
47,715
40,662
59,728
41,742
31,050
25,818
19,593
16,671
12, 918
43,053
24,058
15,401
11,895
13,795
8,377
11,907
7,689
10,048
3,678
9,418
3,864

10,201

Tax
Amount of
exemption 14/ liability 15/

119,651
440,909
407,248
536,861
648,502
658,272.
633,989
568,182
475,37,7
382,811
531,571
266,219
14], 760
82,853
96,321
41,695
21,947
17,150
11,204
9,512
7,334
6,048
4,736
4,049
13,631
7,188
4,264
5,038
2,476
1,477
992
629
445
371
875
313
176
81
!
109
36
45
22
13
4
4
2
3
1

227,312
688,885
671,306;
630,6401
612,540|
541,435
560,672
515,391
518,532
463,705
774,092
490,625
293,205
165,271
147,767
66,140
33,841
23,554
15,920
11,290
8,696
7,352
5,868
4,624
15,366
7,748
4,822
5,022
2,441
1,373
914
583
424
280
714
260
124
80
70
33
33
16
14
4
6
2

136,387
413,331
402,784
430,198
445,162
390,820
461,838
428,398
436,691
•407,888
691,208
448,430
274,918
160,292
145,102
64,570
31,482
22,240
15,605
- 10,806
8,360
6,996
5,794
4,388
15,325
7,906
5,005
5,255
2,534
1,429
959
600
446
293
757
275
142
86
68
36
34
16
13
4
7
2

Adjusted
gross
income 13/

7B3
13,576
27,2l2
45,428
76,372
102,537
114,617'
125,945
121,022
112,121
182,636
114,636
72,367
50,032
67,516
36,735
23,886
22,717
17,287
17,103
15,373
14,352
12,645
12,188
54,350
43,580
35,675
59,174
42,190
33,204
27,761
21,324
17,410
17,139
53,147
29,621
22,645
13,405
22,788
9,219
16,157
12,897
10,754
4,795
6,411
5,495
7,838
4,309
1,971,174

"
"
"
"
"
"
"
"
"
"

2,994,601 29/1,890,594

2,837,780

29/1,763,773

2,508,381

10,511,595 29/21,417,013

8,722,662

2,373,481 8,675,251 J29/17,471,462

7,325,651

1,971,174

10,146,212 29/17,733,072

8,366,125

1,499,352 8,417,062 29/14,445,907

7,065,139

1,160,084

3,025,555

260,512

811,090

365,383

3,603,941

356,537

For footnotes, see pp. 19-20; for extent to which data are estimated, see pp. s_6.

874,129

258,189

Table 4.

Total inc<Be classes 3 7 /

Taxable fiduciaiy returns for 1950, by total income classes; Number of returns, incase or loss from each of the sources comprising total income, total
income, deductions, balance income, amount distributable to beneficiaries, net income, exemption, and tax liability

Total
Rents and
number Dividends Interest royalties 6/
38/
39/
of
returns

Net

profit
Under 0.6
0.6 under 0.75
0.75 under 1
1 under 1.25
1.25 under l.S
1.5 under 1.75
1.7S 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 aider 5
5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
11 under 1 2
12 under 13
13 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
.Total
Taxable
income
Taxable
income

returns with total
under $5,000
returns with total
of $5,000 or more

8,530
4,384
7,190
6,184
5,372
4,781
4,144
3,865
3,418
3,250
2,942
5,100
4,337
3,792
3,208
5,407
4,433
3,618
3,074
2,464
2,266
, 1,988
1,639
1,402
1,289
: 4,589
2,867
2,000
2,436
1,375

889
608
456
346
238
633
270
150
85
96
37
44
25
12
6
11
1

.
1
115,252

1,139
1,156
2,411
2,727
2,838
3,022
3,108
3,403
3,431
3,727
3,673
7,407
7,47C~
7,318
7,148
14,725
14,646
13,924
13,468
12,533
12,429
12,519
10,872
10,354
10,294
43,800
36,360
31,335
49,890
35,252
28,376
24.03S
20,075
17,793
13,937
44,533
28,289
21,482
14,110
18,561
11,094
15,730
15,291
7,155
5,154
15,320
3,283

6,583
693,180

1,060

651
1,335
1,306
1,384
1,329
1,291
1,309
1,220
1,213
1,279
2,355
2,292
2,306
2,008
3,802
. 3,495
3,160
3,065
2,594
.2,586
2,536
2,084
1,874
1,962
7,507
5,500
4,432
5,905
3,903
2,869
2,283
1,700
1,595

loss

251
467

1,060

1,033
1,110
1,133
1,238
1,133
1,107
1,142
1,099
1,091
2,108
1,996
1,961
1,797
3,354
2,992
3,067
2,657
2,201
2,625
2,007
2,253
1,762
1,857
8,050
6,317
5,082
6,353
5,807
4,093
2,558
2,417
2,172
1,700
5,978
2,385
1,437
1,131
3,093

347

452

839
3,371
1,739
1,160

338
1,026

456
177
30
70
57

1,186

915

(Total income classes and money figures in thousands of dollars)
Sales or
Sales or
Income
exchanges
Trade or
MiscelPartnership exchanges
of property from
Total
business 4 0 / 41/
of capital
other than other
laneous income
assets
capital
fiduci- income
44/
assets 10 / aries
Net Net
Net Net
Net Net Net 43/
Net
profit loss profit loss gain
loss gain loss

8
13
28
43
32
23
20
22
16
19
14
41
33
24
36
83
68
64
38
47
28
25
26
18
17
93
64
62
143
74
32
56
7
37
5
35
52
22
44
28
m

1,316
20
_
8
«.
- - 35
- m

1,322
1,287
1,317
1,010

856
952
802
758
858
649
3,077
2,082
1,697
2,813
2,154
1,751
1,420

860
562
504
2,625
1,410

647
709
558
496
595
723

11
20
21
31
25
33
29
33
24
40
87
38
25
31
94
47
63
44
64
48
58
23
64
38
65
92
139
54
225
51
41
401
17
133

84
111
175
219
243
276
324
356
522
369
400
758
658
723
761
1,159
1,191

990
1,343
1,084

990
866
1,157

881
721
3,573
3,437
2,739
3,805
3,426
1,739
1,841
1,959

88S
988

256 1,379
30 1,116
256 1,158
155
130
8
579
3
764
4
764
702

_ 226
19
- • - -

,
-

9
210
12
255
15
611
727
6
7
838
7
906
933
10
22 1,026
5 1,055
14 1,170
1 1,059
15 - 2,163
23 2,135
3 2,157
61 2,185
13 4,085
8 3,916
57 3,813
12 3,647
5 3,380
14 3,261
12 3,299
29 2,804
79 2,750
16 2,588
68 11,044
171 9,137
57 7,812
29 12,800
440 9,367
255 8,726
69 5,904

15
10
18
5
Z
13
16

—

21
3

58
m
m

5,695
5,645
4,296
16,375
10,581
6,921
6,926
9,020
3,310
6,605
2,776
4,398
5,004
9,946

176

53
30
75
71
59
65
57
63
55
55
53
86
85
34
70
98
104
92
74
66
68
52
42
48
40
179
122
68
122
68
58
36
22
19
10
35
15
12

.
4
4

a
2
3

1
-

4
9
21
37
27
39
24
30
30
41
33
56
58
50
43
66
77
53
69
52
49
65
34
39
39
101
163
61
127
179
28
117
46
2
1
202
122
52

200

542 5,779

210 17,430

961

1
3
19
13
3
10
19
12
7
16
5
10
11
13
4
14
12
6
22
30
4
6
19
11
3
71
67
55
80
39
28
13
16
8
3
39
32
24
4
1

»
5
- • 60.
- 7
- ~ -

590
9
m

95,895 105,891 1,592 43,019 2,942 46,973 1,705 213,237 2,433 3,045

372 8,519

.
Interest Taxes

25
213
413
481
540
503
553
560
481
521
538
980
959
958
794

Deduction for -

502

70,497

59,978

22,338

18,666

44,755

633,202

73,557

87,225 1,220 34,500 2,400 41,194 1,495 195,807 1,472 2,543

79
69
164
190
207
253
225
262
218
207
236
364
344
296
325
575
617
501
419
346
517
399
336
214
297
1,058

46
109
256
295
297
324
301
298
312
310
298
524
487
506
423
749
722
575
600
519
514
470
324
373
417
1,638

600
858

957
966

1,444

1,565
1,146

648
641
555
1,155

484
25
1,896

696
584
91
515
61
962
637

"
m

770
1,166

365
361
293
845
439
61
41
8
35
10
42
606
68
205

2,ei6
2,964
6,260
6,929
7,380
7,754
7,759
8,198
8,103
8,514
8,446
16,526
16,222
16,121
15,219
29,581
28,686
27,138
26,069
23,369
23,751
22,846
20,441
18,912
18,682
79,346
63,990
54,689
84,103
61,210
48,591
39,304
34,209
29,284
22,554
76,821
46,444
33,188
23,310
33,335
16,551
27,404
21,542
13,629
10,177
25,474
3,332

6,794

824 20,570 21,636 1,233,957
146

47/

46/

6
6
20
35
44
46
45
47
54
58
51
119
118
120
125
202
245
225
217
145
194
170
148
151
150
727
635
564
686
668
448
377
403
266
198
993
503
310
534
327
70
322
110
338
155
612
125

44
34
122
164
192
220
195
202
207
216
225
428
430
386
355
647
599
594
512
476
459
471
404
390
399
1,579
1,266
1,138
1,661
1,200
1,057

772
668
574
446
1,741
1,004

570
251
627
167
374
290
125
22
426
110

12,142 24,501

139,211

894 3,420

678 17,131 16,850 1,094,746

11,248 21,081

3,439

4,786

Miscel- Total
laneous deducdeduc- tions
tions
48/

172
81
205
287
314
366
364
411
391
430
472
830
833
813
773
1,438
1,391
1,384
1,242
1,145
1,093
1,085

974
906
866
3,755
3,020
2,608
4,071
2,957
2,510
1,834
1,596
1,578
1,129
3,586
2,657
1,369

925
2,007

975
1,053

854
1,423

221
122
547
486
550
633
603
660
652
704
748
1,377
1,381
1,519
1,253
2,286
2,255
2,203
1,972
1,766
1,745
1,725
1,526
1,447
1,415
6,059
4,921
4,310
6,419
4,825
4,015
2,983
2,667
2,438
1,773
6,321
4,164
2,250
1,711
2,961
1,212
1,749
1,255
1,886

141
328
410 1,448
126
361

269

331

Amount
distributable
to beneficiaries

Balance
income

49/

2,596
2,843
5,913
6,442
6,830
7,121
7,155
7,538
7,452
7,810
7,698
15,149
14,841
14,801
13,966
27,295
26,450
24,935
24,097
21,603
22,005
21,121
18,915
17,465
17,267
73,286
59,069
50,379
77,686
55,386
44,565
36,321
31,542
26,847
20,782
70,501
42,280
30,938
21,599
30,374
15,340*
25,655
20,287
11,743
9,849
24,026
2,971

IBS
234
597
858
1,127
1,329
1,513
1,795
1,920
2,045
2,093
4,453
4,722
4,995
4,782
9,953
9,977
10,228
9,458
9,139
8,935
8,825
7,868
7,730
7,375
32,810
27,053
23,777
37,308
26,548
20,962
18,178
15,958
14,531
10,409
36,107
21,844
17,419
11,725
14,984
9,384
12,807
13,244
7,568
4,706
13,885
2,942

6,463

6,315

59,115 95,762 1,138,197

522,580

6,742 11,056

Net

Amount
income
Tax
of
taxable
exemp- liabilto fidu- tion
ity 5 2 /
ciary
51/
50/

128,155

32,648

52,373 84,706 1,010,042

489,932

2,430
2,609
5,316
5,585
5,703
5,792
5,642
5,743
5,532
5,765
5,605
10,696
10,119
9,806
9,185
17,342
16,473
14,707
14,639
12,464
13,070
12,295
11,047
9,754
9,892
40,476
32,016
26,602
40,377
29,837
23,603
18,142
15,585
12,316
10,373
34,393
20,436
13,519
9,874
15,391
5,955
12,848
7,043
4,175
5,145
10,141

149

853
1,575
2,779
2,299
1,952
1,678
1,411
1,272
1,115
1,036

923
1,559
1,270
1,108

885
1,478
1,234

937
802
626
591
492
416
345
327
1,162

271
180
441
573
655
715
737
779
775
831
829
1,634
1,610
1,597
1,544
3,021
2,992
2,786
2,892
2,541
2,784
2,719
2,520
2,278
2,400
10,580
9,403
8,605
14.368
1K790

699
486
576
331
204 ro^oo8
129 8,125
94 7,361
76 5,771
S3 5,156
139 17,815
65 11,122
32 7,561
IS 5,552
18 9,037
7 3,346
11 8,138
5 4,684
Z 2,425
Z 2,567
2 5,048
11

101

615,614 33,075 208,756
95,508 21,715

13,169

520,106|11,360 195,587

Far footnotes, sea pp. 19-20.

Taxable fiduciary returns for 1950, by total income classes: Frequency distributions of returns for each specific source of income or loss
comprising total income, for each deduction, and for amount distributable to beneficiaries

Total income classes 3 7 /
(Thousands of dollars}"

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 under 5
.5 under 6
6 under 7
7 under 8
8 under 9
9 under 10
10 under 11
1 1 under 12
12 under 13
13 under 14
14 under IS
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
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 3,000
3,000 under 4,000
4,000 under 5,000
5,000 or more
Total
Taxable returns with total income
under $5,000
Taxable returns with total income
of $5,000 or more

For footnotes, see pp. 19-20.

Number of returns with Total
Sales or exchanges of
Sales or exchanges
number
Rents and royalties Trade or business
property other than
Partnership
.of capital, asstj us capital assets
of
Dividends Interest
returns
Net profit Net loss Net profit Net loss Net profit Net loss Net gain Net loss
Net gain
Net loss
8,530
4,384
7,190
6,184
5,372
4,781
4,144
5,865
3,418
3,250
2,942
5,100
4,337
3,792
3,208
5,407
4,433
3,618
3,074
2,464
2,266
1,988
1,639
1,402
1,289
4,589
2,867
2,000
2,456
1,375

4,365
2,553
4,293
3,891
3,425
3,101
2,741
2,680
2,407
2,347
2,147
3,811
3,305
2,891
• 2,509
4,411
3,640
2,982
2,527
2,088
1,880
1,715
1,375
1,205
1,107
3,944
2,513
1,792
2,174
1,210

5,482
2,294
3,921
3,451
3,148
2,790
2,482
2,359
2,160
2,033
1,904
3,368
2,919
2,619
2,278
3,891
3,204
2,604
2,270
1,844
1,708
1,560
1,261
1,085

889
608
456
346
238

809
568
410
321
228
576
257
140
84
92
36
42
24
11
4
10
1

717
499
353
282
194
516
221
121
69
83
29
36
20
11
2
8
1

1533

Vo
150
85
96
37
44
25
12
6
11
1

971
3,596
2,253
1,599
1,927
1,083

863
927
1,691
1,467
1,296
1,195

980
873
807
755
679
1,184

988
880
736
1,227

992
866
659
558
540
422
409
326
298
1,113

671
493
552
361
232
127
109
95
66
171
67
35
16
21
7
9
7
7

•
2
'-

51
57
98
96
96
69
75
52
46
57
46
104
77
62
53
112
82
80
66
44
46
36
36
22
23
87
68
56
66
51
21
13
10
14
6
17
10
6
6
9

•31
-

80
340
532
485
438
354
345
310
244
236
224
370
313
279
216
316
273
223
168
137
125
97
88
87
61
252
126
97
122
86
49
38
16
13
8
50
12
8
4
2
5
2
1

2
-

8
25
33
39
29
18
24
25
21
20
23
32
25
19
14
30
24
20
22
18
20
8
17
8
9
32
26
16
35
IS
8
5
3
3

13
6
4
4
1
1
1

1
1

.
-

337
213
310
295
270
252
259
263
222
214
223
386
299
285
254
372
313
245
261
197
195
156
165
106
107
423
287
210
220
156
63
64
SO
25
26
27
21
16
9
7
5
2
2

.
_
-

25
12
26
21
15
16
15
14
8
21
10
15
15
12
14
21
13
23
14
12
20
17
17
14
7
39
23
14
29
15
12
16

3
2
10
5
4
3
3

3
1

1
_
„
„

1,594

974
1,892
1,875
1,864
1,762
1,617
1,601
1,516
1,463
1,361
2,497
2,153
1,991
1,816
3,082
2,572
2,207
1,865
1,573
1,385
1,294
1,016

922
828
3,012
1,926
1,391
1,683

948
655
444
332
252
176
483
211
116
75
62
29
34
19
9
6
11

_
m

;

475

187
398
316
275
278
224
242
213
206
199
292
295
247
203
343
301
231
194
172
173
145
107
101
103
396-

237
153
227
134
85
65
42
31
18
51
25
15

7
5
8
2
3

.
m

_
~

13
28
51
60
52
56
41
38
30
31
54
49
52
47
31
48
51
37
29
55
25
16
19
16
17
47
31
26
17
IS
12
9
6
3
3
9
6
2

.
_
1

_
_
_
_
_
-

I
Deduction for Income
Miscel- Total
Miscelfrom
laneous deducother
laneous
Interest Taxes
deduc- tions
income
fidutions
ciaries

12
11
29
24
17
19
21
17
16
19
13
23
24
31
12
33
22
IS
24
29
10
5
12
11
7
44
22
25
30
24
30
8
S
4
2
13
8
4
2
3

_
_
1
_
_
1
1

_
-

324
146
282
258
246
249
206
230
189
157
155
266
214
200
157
275
215
160
124
119
112
91
77
55
63
209
114
97
107
S3
35
22
25
14
7
50
17
11
4
7
2
3
1

_
_
_
_
_
-

267
315
625
580
526
493
423
392
357
365
325
551
512
460
359
627
539
418
373
306
281
245
189
176
192
649
429
312
377
236
151
103
71
52
32
89
54
19
9
13
6
7
2
4
1
4

_
«.
-

181
131
325
355
346
304
310
302
273
311
278
500
501
436
368
622
574
474
417
342
325
323
240
216
187
78S
515
419
489
313
207
149
109
76
71
151
90
46
29
22
U
13
6
6
2
6
1

1,803

870
2,020
1,966
1,921
1,829
1,626
1,549
1,438
1,364
1,309
2,411
2,063
1,881
1,591
2,812
2,241
1,953
1,672
1,378
1,262
1,160

946
837
739
2,748
1,789
1,252
1,580

880
616
421
306
231
166
446
212
115
61
73
26
37
17
9
4
7
1

4,295
1,499
2,773
2,720
2,579
2,370
2,167
2,147
1,915
1,867
1,780
3,129
2,738
2,489
2,171
3,667
3,059
2,567
2,217
1,809
1,634
1,532
1,228
1,080

969
3,571
2,317
1,634
2,008
1,127

5,010
1,928
3,780
3,606
3,379
3,109
2,812
2,684
2,412
2,318
2,168
3,898
3,353
3,004
2,598
4,422
5,665
3,043
2,614
2,130
1,925
1,762
1,444
1,232
1,111
4,075
2,606
1,852
2,237
1,269

759
524
392
296
216
561
247
134
77
88
33
40
23
12
4
7
1

842
581
426
327
232
601
266
144
83
93
35
44
25
12
4
10
1

Amount
distributable
to beneficiaries

944
636
1,226
1,363
1,397
1,403
1,349
1,397
1,333
1,312
1,215
2,218
2,036
x~ 1,878
1,629
2,916
2,411
2,135
1,741
1,533
• *4*537
<*,213

999
904
792

3,006
1,968
1,404
1,777
1,007

642
462
356
283
188
533
225
152
74
79.
31
36
20
11
4
8
1

115,252

84,643

77,227

25,779

2,030

7,256

706

7,830

580

54,613

7,425

1,096

663

5,348

12,516

12,157 51,659

70,473 85,193

49,563

70,497

46,466

43,208

15,321

1,039

4,766

355

4,082

239

25,976

4,050

613

288

3,279

6,550

4,921 25,641

36,639 46,079

21,336

44,755

38,177

34,019

10,458

991

2,470

351

3,748

341

28,637

3,375

463

375

2,069

5,966

7,236 26,018

33,834 39,114

28,227

Footnotes
1/ Adjusted gross income classes are based on the amount
of adjusted gross income (see note 13), regardless of the amount
of net income pr not deficit when computed; returns with adjusted
gross deficit are designated "No adjusted gross income" without
regard to the amount.

employment, certain deductions of life tenants and income beneficiaries of property held in trust, and allowable losses from
salos or exchanges of property. Should these allowable deductions exceed the gross income, there is an adjusted gross
deficit.

2/ 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 1 2 ) .

14/ Amount of exemption, allowed for purposes of both normal
tax and surtax, includes $600 per capita exemption for the taxpayer, his spouse, and each dependent, together with additional
exemptions for the taxpayer and/or his spouse, of 3600 if
blind, and )600 if 65 years of age or over.

J I Dividends, foreign and domestic, exclude dividends not
ing J100 per return reported as other income on Form 1040A
(see note 12) and dividends received through partnerships and
fiduciaries.

15/ Tax liability is the net tax payable 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 State3. Such credits
are reported on returns, Form 1040, with itemized deductions.

4/ 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-oxempt
Government obligations, and also includes partially tax-exempt
Government interest received through partnerships and fiduciaries}
but excludes interest, not exceeding 3100 per return, reported
as other income on Form 1040A (see note 1 2 ) .

16/ Pavments on 1950 declaration of estimated tax, reported
on returns, Form 1040, include the credit for overpayment of
prior year tax as well au the a.p.p.ret^ate payments made on the
declaration, Form 1040-E?!. The frequency of returns showing
such pavments includes returns showing credit only, canh payments
only, and those showing both.

5/ Income from annuities and pensions is only the taxable
portion of amounts received during the year. Amounts received
to the extent of 3 percent of the total cost of the annuity are
reported as income for each taxable year, until the aggregate of
amounts received and excluded 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 a tax is withheld may bo reported in salaries and wages.
6/ Rents and royalties net pro Tit is 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.
7/ Net profit from business is the excess of gross receipts
from business or profession over deductions for business expenses
and the net operating loss deduction. Conversely, net loss from
business is the excess of business expenses and net operating
loss deduction over total receipts from business.
8/ Partnership net profit or loss excludes partially taxexempt interest on Government obligations and net gain or loss
from salos of capital assets. In computing partnership profit
or loss, charitable contributions are not deductible nor is the
net operating loss deduction allowed.
9/ Net gain or loss from sales or exchanges of capital
assets is the net gain or the allowable I03S 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 1945-49, 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 tabic) 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.
10/ Net gain or loss from sales or exchanges of property
otherUian 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 (3) real property used in trade or business.
11/ Income from estates and trusts exclude partially taxexempt interest on Government obligations! (The net operating
loss deduction is allowed estates and trusts and is deducted in
computing the distributable income.)
12/ Miscellaneous income includes alimony received, prizes,
rewards, sweepstakes winnings, gambling profits, recoveries of
bad debts or .insurance received as reimbursement for medical
expenses if deduction for either was taken in a prior year, and
taxable income not elsewhere tabulated. For returns with adjusted
gross income under $5,000 there are included 531,965,000 of wages
not subject to withholding, dividends, and interest, not exceeding
in total 5100 por return, reported as other income on 661,338
returns, Form 1040A;
13/ Adjusted gross income -neans gross income minus allowable
trade and business deductions, expenses of travel and lodging in
connection with anploymcnt, reimbursed expenses in connection with

17/ Returns with itemized deductions are lone-form returns,
Form 1040, on which nonbusiness deductions are itemized} longform returns, Form 1040, with no deductions,filed by soouses of
taxpayers who itemized deductions (such spouses are denied the
standard deduction); and returns with no adjusted gross incoie
whether or not deductions are itemized.
18/ 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.
19/ Interest, reported on returns with itemized deductions,
is that paid on personal debt3, bank loans, or mortgages, but
excludes interest reported in schedules for business and rent
income and interest on loans to buy tax-exempt securities or
single-premium life insurance and endowment contracts.
20/ Taxes paid, reported on returns with itemized deductions, include personal property taxes, State income taxes,
certain retail salos taxes, and real estate taxes except those
levied for improvement 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; taxes deducted in the schedules for
business and rent income; income taxes paid to a foreign countiy
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.
21/ 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.
22/ Medical, dental, etc., 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 01,250 multiplied by the
number of exemptions other than age and blindness, with a
maximum of $2,500, except that on a joint return of husband
and wife the maximum i3 S5,000.
23/ Miscellaneous deductions, reported on returns with
itemized deductions, include alimony payments, expenses incurred
JLa-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.
24/ Net income reported on long-form returns, Form 1040,
which nave adjusted gross income in excess of itemized deductions.
25/ 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 tho excess ef
itemized deductions over the adjusted gross income. There is a
net deficit on 447,310 returns of vrhich 404,534 show adjusted
gross deficit and 42,776 show adjusted gross income of various
amounts and itemized deductions of larger amounts.
26/ nontaxable returns are those with no adjusted gross income and those with adjusted gross income which incone when reduced by deductions, standard or itcr.iizcd, and exemption.-., results
in no tax liability. The l,lf>l,218 nontaxable rcturro iritH
adjusted gross income and with ito ized deductions include 42,776
returns with net deficit.

20 -

Footnotes
27/ Returns with no adjusted gross income are returns
showing adjusted gross deficitj that is, returns on which the
deductions allowable for the computation of adjusted gross incieequal or exceed the gross income (see note 13),
28/ Adjusted gross^ deficit.
29/ Adjusted gross income less adjusted gross deficit.
30/ The 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 useyhowever, they are included in
totals. For description of sample, see pp. 5-6.
31/ Frequency of returns under $5,000 adjusted gross income
exclucfes returns, Form 1040A, with this source of income.
(See note 12.)
32/ Frequency of returns under $5,000 adjusted gross income'
includes 661,338 returns, Form 1040A, showing other income consisting of wages not subject to withholding, dividends, and
interest npt exceeding in total $100 per return. (See note 12.)
53/ Number of returns is subject to sampling variation of
more Than 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 sartple, see pp.5-6.
34/ Joint returns of husbands and wives include returns
filed on Form 1040A e?en though the collector determined the
tax on the basis of separate incomes of husband and wife.
35/ Separate returns of husbands and wives include community and noncqmmuhity income returns filed separately by
husband an^, wife), but do not include joint returns, Form 1040A,
wherein the collector determined the tax on the separate incomes'
of husband and' wife. Unequal numbers of returns for men and for
women result from insufficient information to identify returns
of married persons and from the use of samples as a basis of
estimating data.
56/ Number of returns is subject to sampling variation of
more Than 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. 5-6,
37/ Total income classes are based on the amount of total
income tabulated for taxable fiduciary returns (see note 45).
38/ Dividends, foreign and domestic, exclude dividends
received through partnerships and other fiduciaries.
59/ 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. •
40/ Trade- or'business profit or loss is the current year •
net profit or loss. (Net operating loss deduction is reported in
miscellaneous deductions.)
41/ Partnership net profit or loss excludes taxable and 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.

Continued
42/ Net gain or loss from sales or exchanges of capital assets
is the net gain or the allowable loss used in computing the nut
income taxable to fiduciary. Each is the result of combining net
short- and long-term capital gain and loss and any capital low.
carry-over from the years 1945-49, inclusive, not previously deducted*
Deduction for the loss, however, is limited to the amount of such
los3, 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.
43/ Income from othor fiduciaries excludes taxable and
partially tax-exempt interest on Government obligations.
. 44/ Miscellaneous incane includes taxable Income from sources
other than those tabulated.
45/ Total income is the amount resulting from tho combination of
neb 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 fiduciaries, and from
miscellaneous income. (Total income is an approximation of the
adjusted gross income tabulated for individual returns.)
•46/ Interest is that paid on debts, mortgages, and bank loans)
It excludes interest reported in schedules for business and rent
income, and interest on indebtedness incurred to buy tax-exempt
securities or single-premium life insurance and endowment contracts.
47/ Taxes paid include State income taxes, certain retail
sales taxes, and real estate taxes except those levied for improvements which tend to increase tho 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.
48/ Miscellaneous deductions include the net operating loss
deduction, 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.
49/ Balance inccme is the excess of total income over total
deductions; that is, income before the amount distributable to
beneficiaries is deducted.
50/ 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.
51/ 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.
52/ Tax liability after tax credits relating to inccme 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.

T-IR-DC

yimM

MORNING msmmi,

^.67

Tueadaj, September $9, 19>3*

The freasiary Department aa»ot«e«i last arming that tha tenors for #1,500,000,000,
or thereabouts, of 91-day Treasury bills to be dated October 1 and to mature
• "^Lsspy '

Deeeafeer 31 9 1953, mM$kwere

offered oa September 2k, were opened at the Federal

Hoserve Hanks on September 2b.
Tho detail® of this issue ere m follows i
Total mppUad for - •* 2,367,llii,000
fetal M*tpt«a
- 1,501,113,000 (laoivdM 1221,523,000 entered on a
nosi^MM90iiiiT« hamim and accepted in
fill at tfce average prime mlmm halm)
Average price
- 99.600 Equivalent rate of discount appro** 1,5831 per wmw
Hassg® of accepted competitive bids $
High
Low

- 99.605 £o>l?*lsnt rata of discount aporoxi 1.563& per annum
- 99.598 ^ •
-•-• «
*
* '"4.590S; *
•
(38 percent of the a n e m t bid for at tbe low price wee aesef&ed) ' •

federal Reserve
Bistriot
Boston
Hew fork
FMlMelphia
ClevelaM
'Richmond
Atlanta
Clileafe
-fit. hamim
Minneapolis
Kanse® Cltgr
Dallas
Kan Frsnoisoo
total

fetal
Applied for

total
Accepted

IS, 821, OCX)
1,61*6,193,000
-* lil,ltif 000
" 22,092,000
20,909,000
. 30,766,000
188,987,000
27,020,000
9,020,000
36,l*3it,O0O
1#,906,000
67,8Wi,000

|
11,121,000
1,153,907,000
20,623,000
19,568,000
11,661,000
21,1*56,000
Itl,966,000
20,669,000
8,020,00©
26,703,00©
3li,lU2,000
k7,3B2,000

^=2,367, nil, 000

|l,5oi,n8,00&

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, September 29, 1953

i c

H-267

ibU

The Treasury Department announced last evening that the tenders
for $1,500,00.0,000, or thereabouts, of 91-day Treasury bills to be
dated October 1 and to mature December 31, 1953. which were offered
on September 24, were opened at the Federal Reserve Banks on
September £8 .
The details of this issue are as follows:
Total applied for - $2,367,114,000
Total accepted
- 1,501,118,000 (includes $221,523,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99-600 Equivalent rate of discount approx
1» 583$ per annum
Range of accepted competitive bids:
High - 99.605 Equivalent rate of discount approx,
1«563$ per annum
Low
- 99.598 Equivalent rate of discount approx.
1. 590$ per annum
(38 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 15,821,000 $ 11,821.000
New York
1,846,193,000
Philadelphia
4l,122, 000
Cleveland
22,092,000
Richmond
20,909,000
Atlanta
30,766,000
Chicago
188,987,000
St Louis
27,020,000
Minneapolis
9,020,000
Kansas City
36^434^000
Pallas
40,906,000
Ban Francisco
87,844,000
TOTAL $2,367,114,000 $1,501,118,000
0O0

Accepted
1,153,907^000
20,823,000
19,568-000
14,661^,000
21,456,000
121,966,000
20.669,000
8,020,000
26,703,000
34,142,000
47,382,000

BMBXATE RKUEASB
Tuesday, S e ^ b c r 2?,, Iffl

/
I c
f-f ~ ^ 4
^

the freaeury Sepejrtoeiit announced today that tlie new
Series C Treasury Savings lotos which willfeemade avails*
ble on October 1, 1953, will tow an appreidjsate interest
rate of I.56 percent per mmm

if held for six aonths, 1.91 par*

cent for erne year, 2.10 percent for eighteen months and 2.21 percent if held for the full two years to maturity.

TREASURY DEPARTMENT
WASHINGTON, D.C.
1 Q?
-iv. W

IMMEDIATE RELEASE,
Tuesday, September 29, 1953.

H-268

The Treasury Department announced today
that the new Series C Treasury Savings Notes
which will be made available on October 1,
1953> will have an approximate interest
rate of 1.56 percent per annum if held for
six months, 1.91 percent for one year, 2.10
percent for eighteen months and 2.21 percent
if held for the full two years to maturity.

0O0

- 3 -

but shall bo exempt fron all taxation now or hereafter inposad 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 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 sal^ or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

- 2 -

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

the tenders are accompanied byjfan 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 there

The Secretary of the Treasury expressly reserves the right to accept or rejec
any or all tenders, in whol••. 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 October 8, 1953 , in cash or
other ionediatciy available funds or in a like face amount of Treasury bills
maturing October 8, 1953 Cash and exchange tenders will receive equal
treatment. Cash adjustments vdll 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 tho 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,

TREASURY DEPARTMENT
Washington

U -X C f

FOR RELEASE, MORNING NEWSPAPERS,
.Thursday.,.. October. 1,„ 1 2 5 3 _ — —
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 October 8, 1953 , in the amount of
$1,501,179,000

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated October 8, 1953 , and will mature January 7, 1954 , when the face
amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5*000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, October $. 19^3

Tenders will not be received at the Treasury Department, Washington, Each tende
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., 99.925. 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
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, October 1, 1953.

H-269

1SB

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 October 8, 1953,
in the amount of $1,501,179,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 8, 1953,
and will mature January 7, 1954, when the face amount will be
payable without'Interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, October 5, 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
irom others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
n ^ S ! ? i e d b y a n e * P r e s s guaranty of payment by an incorporated bank
or trust company.
th* ff2^^ilapely aft.?r the closinS hou^ tenders will be opened at
IntounoZlL f?,™Z B a n !P a n d Branches, following which public
a n d ^ n f L will be made by the Treasury Department of the amount
tdvised of fEF*° f a £ c e P t e d b i d s - Those submitting tenders will be
Trlasurv L ^ L ! ? C e p t a n c e ° r r e J e c t i ™ thereof. The Secretary of the
tenders
? " ' f y reserves the right to accept or reject any or all
shall be f? n «? 0 1 %°£. l n P^t, and his action in any such respect
tenders f n ^ l ^ n n ™ ° e c t t o t h e s e reservations, non-competitive
bidder wfl? tl°°>000°r l e s s without stated price from any one
decimLs^ of L n o ° ^ e d i n f u l 1 a t t h e average price (in three
tenders in L a n F t 6 d comPetitive bids. Settlement for accepted
ec tb ol bd es r m 8u s t2 b e
the
federal a
£ ev sa^nC ll ^wfunds
,^lth° tn hOor
^, din
e amount
or completed
at
immediately
mmecuately
available
in a like
' ^ 3face
cash
or
ofother
Treasury
bills

- 2 maturing October 8, 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 arid
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 otherdispositionof Treasury bills shall not have any special treatment,
as ..such/under the Internal' Revenue Code, or laws amendatory or
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other excise.taxes, whether Federal or State,
but'shall; be exempt from all taxation now or hereafter Imposed on
the principal,or interest thereof by,any State, or any -of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasurybills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal:
Revenue Code, as amended by 'Section 115 of the Revenue Act' of 1941,.
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such, bills shall be sold,
..redeemed or otherwise disposed of, and such bills are excluded frorn
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 oh original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which
:
the return is made, as ordinary gain or loss.
'
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 maturing October 8, 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 Treasurybills are originally sold by the United States shall be considered
to be interest. Under Sections 42 and 117 (a) (l) of the Internal
Revenue Code, as amended by'Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold,
redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury'
bills (other than life insurance companies) issued hereunder need
include, in his income tax return, only the difference between the ','.
price paid for such bills, whether oh original issue or on
subsequent purchase, and the amount actually received either upon'
sale or redemption at maturity during the taxable year for which
the return Is made, as ordinary gain or loss.
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.

y&&f^*

r*y?f-y

' •*•

' ^

'"" -£.

The trmmmmrf ham mMm&the

FrftaUcatg^jfjthtt it* studies

indicate that the general retail sales tax is la sach widespread use by
Stales mad ®ther Governmental taxing authorities that
ti^ttofr-dt^^ tMs fl«14 slmiM not he invaded |>y
UM» Federal Q^rewtwmmat..
The Tttmmmmrf** stadia* mm he^wtde range ©I other tax reforms
and methods ef taxfttlcra will continue* ^

Jfeg^LSIiSllSi^^ be

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, September 30, 1953•

H-270

Secretary Humphrey today Issued the following statement:
"The Treasury has advised the President that
its studies indicate that the general retail sales
tax is in such widespread use by States and other
governmental taxing authorities that the
• Administration should take the position that this
field should not be invaded'by the Federal
Government.
"The Treasury's studies on the wide range
of other tax reforms and methods of taxation will
continue, in collaboration with Congressional
committees and their staffs."

oOo

frfill*.*JM Iff},

ttmt th* tmmdmm tmw UsftMbOOajflj
, «t lOHtaar tmmmm *4H§ to INI datad mtmhmw % IB% «t «• wmtmm
l9 mm ^n»i *t mm fadtnl reserve
Tha dtfedi* mi

as folios?

fatal allied f*» • 12*5*11,10*000
• 2*500*620*000

1226,710,000

{

^ ,t_
fn24«fetfe#
nmtmm' Ptlam
* 9Mfc? ItdartM* mtm mi
Mmmm *t *9*apftad «NLo^»titlva b±4M$
ffl# - 9§*M1 JK%u2*t*Mt mtm 'mi
*»99*m
•
(3§ p****** «f tha

aistrlct

opgao** 3 U i m par mm
»

aid for «t tb» tar pr&aa
total
As^Mifi far

I tJA&uooo
37»96l*m>

St.

imm

Dallas

m
our

balm)

35»1|07*OQO
36,tat»000
23*704,000
263*333,000
1*3*790,000
8*712,000
52*302,000
7**251*000
avm |2*5la»10#aC»

1£,1|21*000
2,OI*,197,O00
26,112*000
o«*Q57«ooo
22*901*000
lf*9Q6tOO0
225*183,000
30,000,000
7,372,000

h&9m9m
18,376*000
3t*373*ooo
11,^00,620,0^

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, October 6, 1953.

H-271

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 8, 1953, and to mature January 7, 1954; which were
offered on October 1, were opened at the Federal Reserve Banks on
October 5.
The details of this issue are as follows:
Total applied for - $2,541,451,000
Total accepted
- 1,500,620,000 (includes $226,710,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.647 Equivalent rate of discount approx.
1.397$ pe^ annum
Range of accepted competitive bids:
High - 99.651 Equivalent rate of discount approx.
1.381$ per annum
Low
- 99.644 Equivalent rate of discount approx.
1.408$ per annum
(30 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for

TOTAL

> 23,421,000
1,891,427,000
37,761,000
35,407,000
16,402,000
23,708/000
263,333,000
43,790,000
8,772,000
51,382,000
79,151,000
$2,541,451,000
66,897,000
0O0

Total
Accepted
$
12,421,000
1,046.197,000
18,111,000
26,057,000
11,902,000
19,906,000
215,183,000
20,000,000
7,372,000
42,822,000
48,376,000
$1,500,620,000
32,273,000

- 3-

but shall bo exempt from all taxation now or hereafter imposed on the princiDa

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 dis-

count at which Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections kZ 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 biils issued hereunder are sold shall not be considered t
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, vhether on oricpr.al issue or on subsequent purchas
and the amount- actually received either upon salj or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

- 2 -

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, f ollowing which public announcement will be made
by the Treasury Department of the amount and price range of accepted bids.

Those submitting tenders vdll be advised of the acceptance or rejection thereo

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 th^se 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 October 1,5, 1953 3 ^n cash or
other immediately available funds or in a like face amount of Treasury bills
maturing October 15, 1953 Cash and exchange tenders will receive equal
Spat
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 specify, 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,

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, October 6, 1953
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

October 15, 1953
~

"3Xm\\~~~
Epsps

3 in the amount of
!

$ 1,500,280,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated October 15, 1953 , and'will mature January Ik, 195*1- , 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

closing hour, tyro o'clock p.m., Eastern Standard time, Friday, October 9, 1953

Tenders will not be received at the Treasury Department, Washington. Each tende
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 vfhich vdll
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions vrill 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 bo accompanied by

TREASURY DEPARTMENT
WASHINGTON, D C
RELEASE MORNING NEWSPAPERS,
Tuesday, October 6, 1953*

H-272

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 October lf>, 1953,
in the amount of $1,-500,280,000, to be issued on a discount basis
under competitive andnon-competitive bidding as hereinafter
provided. The bills of this series will be dated October 15^ 1953,
and will mature January. 14, 1954, 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 hpur^ two o'clock p.m., Eastern Standard time,
Friday, October 9, 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 ease 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 Bi^anc^es. 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 arld'(trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied b y 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.
«* _LJmedlately after the closing hour, tenders will be opened at
tne Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
ana price range of accepted bids. Those submitting tenders will
oe advised of the acceptance or rejection thereof. The Secretary of
trie Treasury expressly reserves the right to accept or reject any
» L \tenders, in whole or in part, and his action in any such
tl^lt: IhalLSS £ l n a l - Subject to these reservations, non-competitive
w?vT u
$200,000 or less without stated price from any one bidder
accept
«riL^
? ? l n f u l 1 a t t h e average price (in three decimals) of
d
!;3f
competitive
for accepted tenders in
h
h e b i bids.
d s m u s t Settlement
be
reserve
R^2™,fnBank
£e , ton
£October
15, 1953,
»»<te
in or>
cash
completed
or other
atimmediately
the Federal

- 2 available funds or in a like face amount of Treasury bills maturing
October 15, 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, undei? 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

COMPARATIVE REPORT OP ENFORCEMENT ACTIVITIES
FISCAL YEARS ENDED JUNE 30, 1953 AND JUNE 30, 1952

Fiscal Year
1953
(Preliminary)

Fiscal Year
1952

Increase (/) or
Decrease (-)
Amount Per Cwt

SEIZURES AND .ARRESTS
mn"TJSD~STAfES' TOTAL
Stills
Illicit distilled spirits
(gallons)
Mask (gallons)
Automobiles and trucks

10,697

10,269

172,951

160,738
5,700,599
2,183

6,151,092
2,333

Value of property seized l/ $3,104,276
Number of persons arrested
9,370

428

/ 4.2

/ 12,213
/450,483
/
150

/7.6
/7.9
/6.9

52,817,032
9,851

87,243
481

/lQ,2
- 4.9

14 SOUTHERN STATES
Stills
Mash (gallons)
Automobiles aad trucks
Number of persons arrested

10,340
2,059
8,514

9,912
5,368,642
1,914
8,924

8,250
2,4X4
6,588

8,250
1,923
6,109

409

438
6,130

5,783,453

/
428
/ 414,811
/
145
410

/ 4.3
/ 7.7
/ 7,6
• 4.6

/2S«6
/ 7,8

PRQSECUTIQIS
Prosecutions recommended
Pre-trial dispositions 2/
Indictments returned
Defendants indicted in jacketed
cases (included above)
Prosecutions terminated, total
Nonprossed, quashed or
dismissed 2/
Acquitted
Convictions, total
Pleas guilty
Verdicts guilty

6,543

805
388
5,350
4,748

602

693
315
5,122
4,533
589

491
479

29 a. 6*6
413 / 6*7

112 /16#S
73 /23*3
228 / M
215 / 4.?
13 / 2*2

PROSECUTIONS PENDING JUNE 30
Grand jury action
Trial action
Total
if
?J

W , .loll

1,657
4,781

752
46
706

3,876
1,611
5,487

»19.4
/ 2,9
-12 ©9

Includes value of tax-paid liquors seized except in Floor Stooks Tax seizures©
Includes offers in compromise aooepted as follows:

Before indictment
After indictment
Total

Number
227
17
244

1953
Amount
$328,461
90,544
#369,005

1952
Number

103
5
108

Amount
#60,820
6,000
$66,820

Case 10,776-M (Barney M. Fry, et alQ
This case covered a conspiracy on the part of Fry and eight
others in the operation of six or more illicit distilleries in Carroll
County, Tennessee. These six distilleries were seized by Federal
officers during the period from August 11, 19k9 to January 99 19$19
and the investigation in the jacketed case was closed September 18,
19$2* On April 6, 1953 at Jackson, Tennessee 11 defendants were tried
and six were convicted. Barney Fry and R* J. Adams were sentenced to
serve 18 months in prison and pay fines of .$1000 each; E. W. Fry was
senteraed to serve 18 months and pay a ?2£00 fine. Two other defendants
were sentenced to serve 11 months and 29 days and to pay fines of $5>00
each, and one defendant was sentenced to serve a year and pay a {2$0
fine.
Case 11,135-M (Bravo Woodcock, et al.)
This case involved a notorious violator Bravo Woodcock of Pass
Christian, Mississippi and six other persons in a conspiracy to
operate a number of large illicit distilleries in Harrison County,
Mississippi. This conspiracy began in the summer of 19$1, the distilleries were seized in November 1951 and January 1952, and the case came
to trial at Biloxi, Mississippi on June 1$9 19$3* The six defendants
who entered pleas of guilty were sentenced as follows; Woodcock to
pay a %3$® fine, together with six months suspension and probation^
/
one defendant to pay §25b fine, another to pay $l5b fine, a fourth
given a suspended sentence of six months and suspended fines totaling
$500, and to pay a $100- fine, a fifth defendant to pay a jj>500 fine
on each of three counts and the sixth being given a six months
suspended sentence and probation and suspended fines totaling $1500•
Case 11,190-M (Otis W. Drowdy, et al.)
On May 13, in Federal Court in Augusta, Georgia, 11 co-defendants
including the principals Otis W. Drowdy and Wilbur C. Feutralle who
had pleaded guilty or had been convicted by a jury on the charge of
conspiracy in the manufacture and distribution of moonshine whiskey,
were sentenced to a total of eight years imprisonment to' be served,
f;ll50 fines to be paid, and eight years probation. These violators
operated a number of illicit distilleries in the Southern Judicial
District of Georgia from February 1 to October 31, 1952. The seizures
included three large steamer type distilleries and eight vehicles,
and 21 persons were arrested.altogether during the investigation of
this case*

illicit alcohol manufacturing and distributing combine headed by
DiOrio, which operated a large St. Louis type continuous process
illicit alcohol distillery with a five-section 24" column seized in
full operation in Middlesex County, New Jersey on February 16, 1952.
DiOrio is a notorious New Jersey racketeer and was previously convicted in one of the Division's major conspiracy eases and sentenced
to five years' imprisonment. He has been identified with other
large-scale illicit alcohol operations since his last conviction.
CINCINNATI REGION
Case 11,157-M (Willis Clay Henry, et al.),
On July £5, 195£ at Lexington, Kentucky, Willis C. Henry and his
brother, Oliver, and his nephew Edward Henry were brought to trial
in what has been known as the Bank Street Dispensary case. They failed
to obtain a basic permit for their wholesale business in distilled
spirits, wines and malt beverages in Mt. Sterling, Kentucky. Evidence
obtained during the investigation showed that the Henrys had made
disposition at wholesale of large quantities of liquor without complying
with the law or regulations relating to such business. Willis Henry
was found guilty on three of the seven counts of the indictment, was
sentenced to serve three years in prison and to pay fines totaling
$2500. Oliver Henry was convicted on two counts, was sentenced to serve
three years and was fined $1000. Edward Henry was acquitted.
ATLANTA REGION
Case 10,821-M (Frazier Collier, et al.)
Collier, long known as a violator of the internal revenue liquor
laws, was reported by investigators to be furnishing automobiles to
other violators for the transportation of nontaxpaid whiskey. Investigation disclosed that Collier and ten other men had conspired to
distribute illicit liquor in three counties of South Carolina. A
number of substantive cases were made involving their violations, during
which 1665 gallons of whiskey and IE vehicles were seized, two of the
latter being seized on two different occasions. The ten defendants
were brought to trial at Charleston, South Carolina on May 22,9 1953,
when Collier and seven others entered guilty pleas. One defendant was
given a directed verdict of acquittal and the tenth defendant was
Nol Prossed because he was serving in the Army. Collier was sentenced
to serve 30 months in prison. Another principal J. B. Daniels was
sentenced to serve 15 months and the remaining six of the convicted
defendants were given 30 month suspended sentences and placed on
probation for five years.

-f.
Case 10,901-M (John M. Zicarelli, et al.)
On March 17, 1953, Frank R. DePalma and ten co-defendants pleaded
guilty in Federal court, Southern District of New York, to the charge
of conspiracy to defraud the United States of taxes on distilled spirits
and were sentenced to a total of eight years, two months, one day imprisonment to be served, four years imprisonment suspended, fourteen
years probation, and fined #12,100. This case relates to the criminal
activities of a well-financed illicit alcohol manufacturing syndicate
directed by ZicarellJ^^»ee4MfefeiMM^^
in which twenty other
individuals were originally involved, who, "beginning in the early
summer of 1950 and continuing up until January 3, 1951, operated a /
large continuous-run type distillery in Sullivan County, Southern
District of New York, seized by Investigators of the A&TTD on the
latter date. This illegal plant had a daily producing capacity of
566 gallons of alcohol. A number of vehicles used by this combine to
transport raw materials to the illicit distillery and the finished
product therefrom were seized during the perfection of this case,
PHILADELPHIA REGION
Case 11,050-M (Edward I. Heller, et al.)
This case involved a conspiracy in the operation of an illicit
distillery near Westchester, Pennsylvania which was seized on July 26,
1951. This one was a 1100-gallon twin still plant full of mash but not
in operation found in a chicken house on a farm. The principals in
the conspiracy were Edward I. Heller and Max Potnick, two notorious
bootleggers of Philadelphia. Potnick was also known to this service
as an important violator of the sugar rationing regulations during
the Second World War. No one was present at the still at the time of
seizure but seven defendants were arrested after investigation. At
the trial of the case on December 10, 1952 at Philadelphia three
defendants were given short jail sentences, with additional time
suspended, and were placed on probation for two years. Three other
defendants were given three months suspended sentences and two years
probation.
Case 11,171-M (Angelo DiOrio, et al.)
On May 18, 1953, on pleas^of guilty in Federal court in Newark,
New Jersey, Angelo (Slim)(^.0ri5>was sentenced to three years imprisonment to be served; Camillo Bordanaro, Louis Failla and Dominick Garzillo
were each sentenced to one year and one day imprisonment to be served,
fined #500 and each placed on probation for a period of five years, on
the charge of conspiracy to defraud the United States of taxes on
distilled spirits. Four additional co-defendants indicted in this case,
including Anthony Ippolito, are awaiting trial. This case dealt with
the criminal activities of a formidable, well-financed and persistent

•

NEgT YORK REGION
Case 11,196-M (Tob») (Homer Hector LaFontaine)
On March 20, 1953, Homer Hector LaFontaine and George Edward
Green were convicted in Federal court, Northern District of New York,
on the charge of conspiracy to defraud the United States of taxes on
cigarettes and were each sentenced to six months imprisonment to be
served and eaoh fined a total of $1,050, $500 of which fine was
suspended. The defendants were each placed op. probation for three
yoars to begin after the imprisonment term has been served. This
case dealt with the criminal operations of a cigarette smuggling
syndicate headed by Homer LaFontaine in which a number of Canadian
citizens were also involved but not subject to the Internal Revenue
laws of the United States, who, during the period from April 15, 1951, to
April 22, 1952, manufactured counterfeit "Chesterfield" cigarettes in
the Northern District of New York for sale and distribution in the
Province of Quebec, Canada, The evidence shows that during the life of
this conspiracy this organization produced at least 1,434,000 nontaxpaid
cigarettes, resulting in a tax fraud on the revenue of approximately
|6,000» One of the outstanding features of the case was the arrest of
Edward Green by the Royal Canadian Mounted Police on February 29, 1952,
in Montreal, Quebec, for possession of nine counterfeit Canadian $10
bills. The counterfeit money was part of $7,000 in Canadian funds that
Green was converting into American ourrenoy. It is alleged that the
money had been received by Green as payment either for nontaxpaid
cigarettes or for the cigarette-making equipment.
Case 10,625-M (vito Giallo, et al)
On October 31, 1952, six co-defendants including Vito Giallo and
Antonio Valenti were convicted in Federal Court, Southern District of
New York, on charge of conspiracy to defraud the United States of taxes
on distilled spirits and were sentenced by Federal Judge Sylvester J.
Ryan to 15-g-years* imprisonment, to be served, six years 1 imprisonment
suspended and six years probation. The principals Giallo and Valenti
were eaoh sentenced to five years* imprisonment and were remanded to
the penitentiary. This case relates to the activities of a persistent
and strongly-entrenched illicit alcohol manufacturing and distributing
syndioate headed by Vito Giallo who maintained headquarters of the
combine at Academy Wire Products on Second Avenue in New York, on
Eighty-First Street in Brooklyn, and at Brewster, New York. This mob
operated a large St. Louis continuous prooess illicit alcohol distillery having a mash capacity of approximately 25,000 gallons oapable
of producing over 600 gallons of nontaxpaid alcohol daily. B0000-^6Giailo 4 * chi^f ^ i e u ? t ^ a ^
thflu^upply of raw- materia^*- One tfuliiUSTTOTITtSh^
syndicate and is alleged to have operated under the-fjame--e#-4J«3te<0»
cjSSggEggjC ompargr •

- 3-

As a result of 10,823 investigations conducted by the Alcohol and
Tobacco Tax Division of alleged violations of the floor stock tax
provisions of the Revenue Act of 1951, 3,$$9 cases were made; 6,787 gallons
of taxpaid liquor valued at 182,982 were seized; and $192,851* in taxes and
penalties were collected or recommended for assessment, while offers in
compromise in the amount of $167,979 in lieu of criminal and/or civil
liability were accepted by the Department of Justice •
During the fiscal year trial action was had in a number of important
criminal cases, some of which follow:
BOSTON REGION
Case ll30l;2-H (Michael Tenore, et al.)
In Fedeaal Court in Concord, New Hampshire, on December 12, 1952,
defendant Michael Tenore was convicted and sentenced to pay a fine of
$2,500 and to serve two years in prison. This sentence was deferred
when five other defendants were sentenced on October 28, 1952, to pay
fines running from $100 to $500, one of them being sentenced to serve
two years and four others being given suspended prison sentences and
probation. This conspiracy case resulted from investigation of the
operation of an illicit distillery in Atkinson, New Hampshire. The
seizure included a 560-gallon pot still (daily producing capacity
kOO gallons) with 335 gallons of spirits, 1300 gallons of mash,
quantities of yeast and sugar and a truck. Tenore and three other
defendants were arrested on the still premises, and the owner of the
premises and a man designated as custodian of the place were arrested
later.

- 2 -

In the firearms program a total of H I , 285 investigations have been
conducted, resulting in the registration with the Commissioner of Internal
Revenue of 16,857.
"An intensive investigative program was undertaken in September, 19ii5,
for the purpose of bringing about the registration of machine guns, machine
pistols and other firearms coming under the purview of the National Firearms
Act," Commissioner Andrews reported. "This program is still in force. It
was necessitated by the fact that large numbers of these firearms brought
or sent into this country by members of the armed services were finding
their way into the hands of criminals, either by illegal sale or theft,
and were being utilized in the commissioner of violent crimes such as
killings and robberies.
"For the purposes of this act and its enforcement, Section 2733 of
the Internal Revenue Code defines a KtcMna gun as any weapon which shoots,
or is designed to shoot, more than one shot, without manual reloading,
by a single function of the trigger. The same Section of the Code defines
a firearm as a shotgun or rifle having a barrel of less than 18 inches in
length, or any other weapon, except a pistol or revolver, from which a shot
is discharged by an explosive if such weapon is capable of being concealed

MfiJhm /'
on the person,t or a machine gun* mm

includes a muffler or silencer for any

firearm whether or not such firearm is included within the foregoing
definition, but does not include any rifle which is within the foregoing
provisions solely by reason of the length of its barrel if the caliber of

such rifle is .22 or smaller and if its barrel is 16 inches or more in length

TREASURY- DEPARTMENT
Washington, P.O.

\mr^mmmmmmmtL®LK\ OCTOBER 9, ^3 ^- ^ ^ ^

Violations of tbe Internal Revenue liquor laws continued to increase
during the fiscal year ended June 30, 1953, Commissioner of Internal Revenue

T* Coleman Andrews today reported to Secretary of the Treasury G» M. Humphrey
Still seizures during fiscal 1953 totaled 10,697 as compared to 10,269
for 1952, an increase of k*2$9 according to the Commissioner* Number of

persons arrested was 9,370, a decrease of k*>9%y while the number of automobi
and trucks seized rose nearly 7% to a total of 2,333* ^ Convictions obtained
totaled 5,350, an increase of ka$%*
Automobiles, trucks and other property seized in connection with
violations of the ^Lawa onforood by the JLJcohol and tobacco-Tax SSSoion e£
tho IntnruaJL Rorenue Cogvioo in fiscal 1953 were valued at $3,101*,275. The

volume of nontax paid liquor traffic,' as indicated by gallons of mash seized
at illicit distilleries, increased U5Q,&83 gallons or nearly b*% over that
of fiscal 1952.
"This upward trend in liquor law violations was first observed in
December, 19U7,tt Commissioner Andrews said. wIt followed the abandonment
of sugar rationing in June of that year but the increase in violations has
been confined largely to regions of low income where the demand for cheap
spirits is high and to local option areas where taxpaid liquor is not
readily available .w

TREASURY DEPARTMENT
Washington

FOR RELEASE OCTOBER 9, V9$3

Violations of the Internal Revenue liquor laws continued
increase during the fiscal year ended June 30, 1953, Commissioner of
Internal Revenue T. Coleman Andrews today reported to Secretary of the
Treasury G. M. Humphrey,
Still seizures during fiscal 1953 totaled 10,9$f as compared with
10,269 for 1952, according to the Commissioner, ajfd the number of
persons arrested in 1953 decrease^ by $% ajs compared to 1952 while the
number of automobiles and trucks seized increased by nearly 7% during
the same period.
Automobiles, trucks and other property seized in connection with
violations of the laws enforced by tne Alcohol and Tobacco Tax Division

of the Internal Revenue Service in fiscal 1953 were valued at $3,101*, 275* \f
The volume of nontax paid liquor traffic, as indicated by gallons of mash
seized at illicit distilleries, increased U50,li83 gallons or nearly
over that of fiscal 1952,
"This upward trend in liquor law violations was first observed
in December, 19l*7,z Commissioner Andrews said. "It followed the
abandonment of sy&gar rationing in June of that year but the increase
in violations/has been confined largely to regions of low income where
the demandy£or cheap spirits is high and to local option areas where
taxpaid/Liquor is not readily available."

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Friday, October 9, 1953.

214
H-273

*
Violations of the Internal Revenue liquor laws continued to
increase during the fiscal year ended June 30, 1953, Commissioner
of Internal Revenue T. Coleman Andrews today reported to Secretary
of the Treasury G. M. Humphrey.
Still seizures during fiscal 1953 totaled 10,697 as compared
to 10,269 for 1952, an increase of k.2%9 according to the
Commissioner. Number of persons arrested was 9,370, a decrease of
k.9%, while the number of automobiles and trucks seized rose nearly
7% to a total of 2,333. Convictions obtained totaled 5*350, an
increase of k-5%*
Automobiles, trucks and other property seized in connection
with violations of the alcohol and tobacco tax laws in fiscal
1953 were valued at $3,104,275. The volume of nontax paid liquor
traffic, as indicated by gallons of mash seized at illicit
distilleries, increased 450,483 gallons or nearly 0% over that of
fiscal 1952.
"This upward trend in liquor law violations was first observed
in December, 1947," Commissioner Andrews said. "It followed the
abandonment of sugar rationing in June of that year but the increase
in violations has been confined largely to regions of low income
where the demand for cheap spirits is high and to local option
areas where taxpaid liquor is not readily available."
In the firearms program a total of 111,285 investigations
have been conducted, resulting in the registration with the
Commissioner of Internal Revenue of 16,857.
"An intensive investigative program was undertaken in
September, 1945, for the purpose of bringing about the registration
of machine guns, machine pistols and other firearms coming under
the purview of the National Firearms Act,p Commissioner Andrews
reported. "This program is still in force. It was necessitated
by the fact that large numbers of these firearms brought or sent
into this country by members of the armed services were finding
their way into the hands of criminals, either by illegal sale or
theft, and were being utilized in the commission of violent crimes
such as killings and robberies.

1... ,X \m*

- 2 "For the purposes of this act and its enforcement, Section 2733
of the Internal Revenue Code defines a machine gun as any weapon
which shoots, or is designed to shoot, more than one shot, without manual reloading, by a single function of the trigger. The
same Section of the Code defines a firearm as a shotgun or rifle
having a barrel of less than 18 inches in length, or any other
weapon, except a pistol or revolver, from which a shot is discharged
by an explosive if such weapon is capable of being concealed on
the person, or a machine gun. It also includes a muffler or
silencer for any firearm-whether or not such firearm is included
within the foregoing definition, but does not include any rifle
which is within the foregoing provisions solely by reason of the
length of its barrel if the caliber of such rifle is .22 or
smaller and if its barrel Is 16 Inches or more in length."
As a result of 10,823 Investigations conducted by the Alcohol
and Tobacco Tax Division of alleged violations of the floor stock
tax provisions of the Revenue Act of 1951, 3,559 cases were made;
6,787 gallons of taxpaid liquor valued at $82,982 were seized; and
$192,854 in taxes and penalties were collected or recommended for
assessment, while offers in compromise In the amount of $l6'7,979
in lieu of criminal and/or civil liability were accepted by the
Department of Justice.
During the fiscal year trial action was had in a number of
E0ST0N
REGIONfollow:
important criminal cases, some
of which
Case 11,042-M (Michael Tenore, et al.)
In Federal Court in Concord, New Hampshire, on December 12,
1952, defendant Michael Tenore was convicted and sentenced to pay
a fine of $2,500 and to serve two years in prison. This sentence
was deferred when five other defendants were sentenced on
October 28, 1952, to pay fines running from $100 to $500, one of
them being sentenced to serve two years and four others being
given suspended prison sentences and probation. This conspiracy
case resulted from Investigation of the operation of an illicit
distillery in Atkinson, Mew Hampshire. The seizure included
a 560-gallon pot still (daily producing capacity 400 gallons) with
335 gallons of spirits, 1300 gallons of mash, quantities of yeast
and sugar and a truck. Tenore and three other defendants were
arrested on the still premises, and the owner of the premises and
a man designated as custodian of the place were arrested later.

- 3-

S~ ~~ Km>

NEW YORK REGION
Case 11,196-M (Tob.) (Homer Hector LaFontaine)
On March 20, 1953, Homer Hector LaFontaine and George Edward
Green were, convicted in Federal court, Northern District of
New York, on the charge of conspiracy to defraud the United States
of taxes on cigarettes and were"each sentenced to six months
imprisonment to be served and each fined a total of $1,050, $500
of which fine was suspended. The defendants were each placed on
probation for three years to begin after the imprisonment term
has been served. This case dealt with the criminal operations of
a cigarette smuggling syndicate headed by Homer LaFontaine in
which a number of Canadian citizens were also Involved but not
subject to the Internal Revenue laws of the United States, vino,
during the period from April 15, 1951, to April 22, 1952, manufactured counterfeit "Chesterfield" cigarettes in the Northern
District of New York for sale and distribution In the Province of
Quebec, Canada. The evidence shows that during the life of this
conspiracy this organization produced at least 1,434,000 nontaxpaid cigarettes, resulting in a tax fraud or the revenue of
approximately $6,000. One of the outstanding features of the case
was the arrest of Edward Green by the Royal Canadian Mounted Police
on February 29, 1952, in Montreal, Quebec, for possession of nine
counterfeit Canadian $10 bills. The counterfeit money was part of
$7,000 in Canadian funds that Green was converting into American
currency. It is alleged that the money had been received by
Green as payment either for nontaxpaid cigarettes or for the
cigarette-making equipment.
Case 10,625-M (Vito Giallo, et al)
On October 31, 1952, six co-defendants including Vito Giallo
and Antonio Valenti were convicted in Federal Court, Southern
District of New York, on charge of conspiracy to defraud the
United States of taxes on distilled spirits and were sentenced by
Federal Judge Sylvester J. Ryan to 15^ years' imprisonment, to be
served, six years' imprisonment suspended and six years probation.
The principals Giallo and Valenti were each sentenced to five years*
imprisonment and were remanded to the penitentiary. This case
relates to the activities of a persistent and strongly-entrenched
illicit alcohol manufacturing and distributing syndicate headed by
Vito Giallo who maintained headquarters of the combine at Academy
Wire Products on Second Avenue in New York, on Eighty-First Street
in Brooklyn, and at Brewster, New York. This mob operated a large
St. Louis continuous process illicit alcohol distillery having
a mash capacity of approximately 25,000 gallons capable of producing
over 600 gallons of nontaxpaid alcohol daily.

- 4Case 10,901-M (John M. Zicarelli, et al. )

91 7
i~ 1 i

On March 17, 1953, Frank R. DePalma and ten co-defendants
pleaded guilty in Federal court, Southern District of New York,
to the charge of conspiracy to defraud the United States of taxes
on distilled spirits and were sentenced to a total of eight years,
two months, one day imprisonment to be served, four years
imprisonment suspended, fourteen years probation, and fined
$2,100. This case relates to the criminal activities of a wellfinanced illicit alcohol manufacturing syndicate directed by
Zicarelli in which twenty other individuals were originally involved, who, beginning in the early summer of 1950 and continuing
U.J until January 3, 1951, operated a large continuous-run type
distillery in Sullivan County, Southern District of New York,
seized by Investigators of the A&TTD on the latter date. This
illegal plant had a daily producing capacity of 566 gallons of
alcohol. A number of vehicles used by this combine to transport
raw materials to the illicit distillery and the finished product
PHILADELPHIA
REGION of this case.
therefrom were seized during
the perfection
Case 11,050-M (Edward I. Heller, et al.)
This case involved a conspiracy in the operation of an illicit
distillery near Westchester, Pennsylvania which was seized on
July 26, 1951. This one was a 1100-gallon twin still plant full
of mash but not in operation found in a chicken house on a farm.
The principals in the conspiracy were Edward I. Heller and
Max Potnick, two notorious bootleggers of Philadelphia. Potnick
was also known to this service as an important violator of the
sugar rationing regulations during the Second World War. No one
was present at the still at the time of seizure but seven
defendants were arrested after investigation. At the trial of the
case on December 10, 1952 at Philadelphia three defendants were
given short jail sentences, with additional time suspended, and
were placed on probation for two years. Three other defendants
were given three months suspended sentences and two years probation.
Case H3I7I-M (Angelo DiOrio, et al. )
On May 18, 1953, on pleas of guilty in Federal court in
Newark, New Jersey, Angelo (Slim) DiOrio was sentenced to three years
imprisonment to be served; Camillo Bordanaro, Louis Failla and
Dominick Garzillo were each sentenced to one year and one day
imprisonment to be served, fined $500 and each placed on probation
for a period of five years, on the charge of conspiracy to defraud
the United States of taxes on distilled spirits. Four additional
co-defendants indicted in this case, including Anthony Ippolito,
are awaiting trial. This case dealt with the criminal activities
of a formidable, well-financed and persistent illicit alcohol
manufacturing and distributing combine headed by DiOrio, which
distillery
in
operated
Middlesex
a with
large
County,
aSt.
five-section
New
Louis
Jersey
type24"
on
continuous
February
column seized
process
16, 1952.
inillicit
full operation
alcohol

91 Q
L-. X

- 5-

DiOrio is a notorious New Jersey racketeer and was previously convicted in one of the Divisionrs major conspiracy cases and
sentenced to five years1 imprisonment. He has been identified with
other large-scale illicit alcohol operations since his last
conviction.
CINCINNATI REGION
Case 11,137-M (Willis Clay Henry,, et al.)
On July 25, 1952 at Lexington, Kentucky, Willis C. Henry and
his brother, Oliver, and his nephew Edward Henry were brought to
trial in what has been known as the Bank Street Dispensary case.
They failed to obtain a basic permit for their wholesale business
in distilled spirits, wines and malt beverages in Mt. Sterling,
Kentucky. Evidence obtained during the investigation showed that
the Henrys had made disposition at wholesale of large quantities
of liquor without complying with the law or regulations relating
to such business. Willis Henry was found guilty on three of the
seven counts of the indictment, was sentenced to serve three years
in prison and to pay fines totaling $2500. Oliver Henry was
convicted on two counts, was sentenced to serve three years and
was fined $1000. Edward Henry
wasREGION
acquitted.
ATLANTA
Case 10,821-M (Frazier Collier, et al.)
Collier, long known as a violator of the internal revenue
liquor laws, was reported by investigators to be furnishing
automobiles to other violators for the transportation of nontaxpaid
whiskey. Investigation disclosed that Collier and ten other men
had conspired to distribute illicit liquor in three counties of
South Carolina. A number of substantive cases were made Involving
their violations, during which 1665 gallons of whiskey and 12
vehicles were seized, two of the latter being seized on two
different occasions. The ten defendants were brought to trial at
Charleston, South Carolina on May 22, 1953, when Collier and
seven others entered guilty pleas. One defendant was given
a directed verdict of acquittal and the tenth defendant was
Nol Prossed because he was serving in the Army. Collier was
sentenced to serve 30 months in prison. Another principal,
J. B. Daniels, was sentenced to serve 15 months and the remaining
six of the convicted defendants were given 30 month suspended
sentences and placed on probation for five years.

91 Q
* - J- KMT

Case 10,776-M (Barney M. Fry, et al.)
This case covered a conspiracy on the part of Fry and eight
others in the operation of six or more ILlicit distilleries in
Carroll County, Tennessee. These six distilleries were seized
by Federal officers during the period from August 17, 1949 to
January 9, 1951, and the investigation in the jacketed case was
closed September 18, 1952. On April 6, 1953 at Jackson, Tennessee
11 defendants were tried and six were convicted. Barney Fry and
R. J. Adams were sentenced to serve 18 months in prison and pay
fines of $1000 each; E. W. Fry was sentenced to serve 18 months
and pay a $2500 fine. Two other defendants were sentenced to
serve 11 months and 29 days and to pay fines of $500 each, and
one defendant was sentenced to serve a year and pay a $250 fine.
Case 11,135-M (Bravo Woodcock, et al.)
This case involved a notorious violator Bravo Woodcock of Pass
Christian, Mississippi and six other persons in a conspiracy to
operate a number of large illicit distilleries in Harrison County,
Mississippi. This conspiracy began in the summer of 1951, the
distilleries were seized in November 1951 and January 1952, and
the case came to trial at Biloxi, Mississippi on June 15, 1953.
The six defendants who entered pleas of guilty were sentenced as
follows: Woodcock to pay a $350 fine, together with six months
suspension and probation; one defendant to pay $250 fine, another
to pay $150 fine, a fourth given a suspended sentence of six
months and suspended fines totaling $500, and to pay a $100 fine,
a fifth defendant to pay a $500 fine on each of three counts and
the sixth being given a six months suspended sentence and probation
and suspended fines totaling $1500.
Case 11,190-M (Otis W. Drowdy, et al.)
On May 13, in Federal Court in Augusta, Georgia, 11 co-defendants
including the principals Otis W. Drowdy and Wilbur C. Feutralle who
had pleaded guilty or had been convicted by a jury on the charge
of conspiracy in the manufacture and distribution of moonshine
whiskey, were sentenced to a total of eight years imprisonment to
be served, $1150 fines to be paid, and eight years probation.
These violators operated a number of illicit distilleries in the
Southern Judicial District of Georgia from February 1 to
October 31, 1952. The seizures included three large steamer type
distilleries and eight vehicles, and 21 persons were arrested
altogether during the investigation of this case.

-7 COMPARATIVE REPORT OF ENFORCEMENT ACTIVITIES
FISCAL YEARS HNDED JUNE 30, 1953 AND JUNE 30, 1952

Fiscal Year
1953
(Preliminary)

Increase (/) or
Decrease (-)
Per Cent
Amount

Fiscal Year
1952

SEIZURES AND ARRESTS
UNITED STATES TOTAL
Stills
Illicit distilled spirits
(gallons)
Mash (gallons)
Automobiles and trucks
Value of property seised 2/
Number of persons arrested

428

4.2

160,738
5,700,599
2,183

/ 12,213
/45o,483

/
/
/

7.6
7,9
6a9

$3,104,275
9,370

#2,817,032
9,851

/|287,243

10,340
5,783,453
2,059
8,514

9,912
5,368,642
1,914
8,924

8,250
2,414
6,588

8,250
1,923
6,109

10,697

10,269

172,951
6,151,082
2,333

150

/ 10.2

481

4.9

428

4,3
7.7
7.6
4,6

Hi SOUTHERN STATES
Stills
Mash (gallons)
Automobiles and trucks
Number of persons arrested

AlU,8U
/
•-

145
410

/.
/
-

PROSECUTIONS
Prosecutions recommended
Pre-trial dispositions \\l
Indictments returned
Defendants indicted in jacketed
cases (included above)
Prosecutions terminated, total
Nol-prossed, quashed or
dismissed 2j
Acquitted
Convictions, total
Pleas guilty
Verdicts guilty

409

438

6,543

6,130

805
388

693
315

5,350
4,748

5,122
4,533

602

589

3,124
1,657

3,876
1,611

«.

/
/

491
479

/ 25.5
/

7.8

29
413

6.6
6.7

/
/
/
/
/

112
73
228
215
13

/ 16.2
/ 23.2
/
/
/

4.5
4.7
2.2

PROSECUTIONS PENDING JUNE 30
Grand jury action
Trial action
Total

U,78l

57237

752
46

-am

70o"

19.4

2.9
12.9

1/ Includes value of tax-paid liquors seised except in Floor Stocks Tax seizures*
2/ Includes offers in compromise accepted as follows*
1952

1953
Before indictment
After indictment
Total

Number
227
_17
244

Amount
$32o7Eol
_ 30,544
^359,005

Number
103

_5
108

Amount
$60,b20
6,000
&66,820

2^-

-y

UARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BAMS IN THE SIX
MONTH PERIODS ENDED JUNE 30. 1953 AND JUNE 30, 1952. M D THE
YEAH ENDED DECEMBER 31, 1952
(Amounts in thousands of dollars)
?

6 nonth8 enAed

Year ended
31

: June JO, t June 30. * ^g '

» i?w
Capital stock, par values
Preferred.
0oaB,lon
-

$
•

~«

e ^ 2
2,239.079

w?e
$

7»**60 $
a.iM.«li6

6,262
g.m.o*.

TOTAL CAPITAL STOCK |/ 2,244,741 X/mUXSKkOG g 2,177.888
Capital funds j/ 7.1^.973 1/6.723.091 2/ 6,275,13*
Darnings from current operations*
Interest and dividends:
On U. S. Government obligations...
3^0.704
On other securities
85.974
Interest and discount on loans.....•
853,754
Service charges on deposit accounts*
73,406
Other service (barges, commissions,fees,
and collection and exchange charges
4-3,225
Trust department
140,590
Other current earnings
•
62,309
TOTAL EARNINGS FROM CURRENT
OPERATIONS
1,500,022
Current operating expenses:
Salaries and wages:
Officers
Employees other than officers.....
Fees paid to directors and members of
executive, discount, and advisory
committees
Interest on time deposits (including
savings deposits)
Taxes other than on net income
Recurring depreciation on banking
house, furniture and fixtures
Other current operating expenses....
TOTAL CURRENT OPERATING EXPENSES..
NET EARNINGS FROM CURRENT OPERATIONS....

299.200
79.522
735.089
67.322

633,688
164,228
1.536,789
136,272

32,092
37.1o5
61,762

77.772
20,627
121,191

1,312,230

2,750,567

1*10,020
279,274

122,090
252,l44

271.7^
535.618

7.294

6,664

14,5*5

143,244
l
K),652

126,089
32,214

260,995
7S,6U6

21,258
243,166
875.508

18,716
216,643
787.l60

42,205
458,06l
l,66l,8l4

624,5l4

531.670

1.088,753

-?EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1953 AND JUNE 30. 1952, AND THE
YEAR ENDED DECEMBER 31, 1952 — Continued
(Amounts in thousands of dollars)
*
:

:
6 months ended
Year ended
June 30, : June 30, * Dec. 31,
195?
: 1952
*
1952

Recoveries, transfers from valuation
reserves, and profits:
On securities:
Recoveries.
$
2,449
Transfers from valuation reserves....
7,99*
Profits on securities sold or re-*
deemed.
•
7.657
On loans:
Recoveries....
8,246
Transfers from valuation reserves....
3*300
All other
7.565
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS
37,211

$ 3.135
8,946

6,824
14,8^4

11,696

20,165

4,925
4,322
5.91*

11,654
14,9%
12,604

39.052

21,100

23,420
13,0-MO

13,071
6,774

61,233
16,739

5.275
35.030
19,016

3.69*
34,524
10,906

H»3*9
23,972
29,922

96,44l

69,029

203.281

PROFITS BEFORE INCOME TAXES

565.224

501.699

966,572

Taxes on net incomes
Federal
State

262,079
9,617

213,959
2,221

327.963
17.128

Losses, charge-offs, and transfers to
valuation reserves:
On securities:
Losses and charge-offs
Transfers to valuation reserves.
On loans:
Losses and charge-offs
Transfers to valuation reserves
All other
TOTAL LOSSES, CHARGE-OFFS AND TRANSFERS TO VALUATION RESERVES

•

TOTAL TAXES ON NET INCOME 271,696 222,780 *J05.Q91
NET PROFITS BEFORE DIVIDENDS
293,588
278,919
5bl.t*8J
Cash dividends declared:
On preferred stock
158
208
*J00
On common stock
127,674
120,397
258,663
TOTAL CASH DIVIDENDS DECLARED........
127,832
120,605
259,063
Number of banks 3J
4,881
4,932
4,91b
Annual rate of net profits:
Percent
Percent
Percent
To capital funds
8.21
8.22
8.17
Annual rate of cash dividends:
To capital funds
3*52
3>56
3.77
XJ Averages of amounts reported for the June call date in year indicated and the
December call date in the previous year.
2/ Averages of amounts reported for the June and December call dates in year
Indicated and the December call date in the previous year.
2/ At end of period.

_ 2 -

operating expenses were $427»000,000 for salaries and wages of officers and

employees and fees paid to directors, an increase of $40,000,000 over the same
period in 1952. and $143,000,000 expended for interest on time deposits, an
increase of $17,000,000.
Cash dividends declared on common and preferred stock totaled $128,000,000
in comparison with $121,000,000 in the first half of 1952. The annual rate of

cash dividends xms 3»5^ percent of average capital funds. The cash dividends i

the current period were 44 percent of net profits available for the six months
The remaining 56 percent of net profits, or $165s000,000, was retained by the
banks in their capital funds.
On June 3^ 1953 there were 4, SSI national banks in operation, as compared
to 4,932 on June 30, 1952.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington

OfyUt^
JLATTY^n
-iffy J,

RELEASE MORNING NEWSPAPERS, rf ~** X 7wlf" /?' LULA/
/ (AAJ£-Z.^y-i

National banks in the United States and possessions had net profits be-

fore dividends for the six months ended June 30, 1953 of $293,000,000, which

at an annual rate amounts to S.21 percent of average capital funds, Comptrol

of the Currency Ray M, Gidney announced today. Net profits for the six month

ended June 30, 1952 were $279*000,000, or S.22 percent of average capital fu
Net earnings from operations for the first half of 1953 were $624,000,000,
and showed an increase of $93*000,000 over the same period in the previous
year. Adding to net earnings from operations profits on securities sold of

$8,000,000 and recoveries on loans and securities, etc. (including adjustmen
in valuation reserves) of $29,000,000 and deducting losses and charge-offs

(including current additions to valuation reserves) of $96,000,000 and taxe

net income of $272,000,000, the net profits of the banks before dividends fo

the first six months in 1953» &s noted above, were $14,000,000 more than for
corresponding period in 1952.
Gross earnings were $1,500,000,000, an increase of $1S1,000,000 over the

six months ended June 30, 1952. Principal items of operating earnings in the
first half of 1953

were

$854,000,000 from interest and discount on loans, an

increase of $119,000,000 over 1952, and $341,000,000 from interest on United

States Government obligations, an increase of $41,000,000. Other principal o
erating earnings were $86,000,000 from interest and dividends on securities

other than United States Government, and $73,000,000 from service charges on
deposit accounts. Operating expenses, excluding taxes on net income, were
$876,000,000 as against $787,000,000 in the first half of 1952. Principal

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS,
Tuesday, October 6, 1953.
National banks in' the United States and possessions had net ^
profits before dividends for the six months ended June 30, 1953 ox
$293 000,000, which at an annual rate amounts to 8.21 percent of
average capital funds, Comptroller of the Currency Ray M. Gidney
announced today. Net profits for the six Months ended June 30,
1952 were $279,000,000, or 8.22 percent of average capital funds.
Net earnings from operations for the first half of 1953 were
$624,000,000, and showed an increase of $93,000,000 over the same
period in the previous year. Adding to net earnings from operations
profits on securities sold of $8,000,000 and recoveries on loans and
securities, etc. (including adjustments in valuation reserves) of
,<b'3,000,000 and deducting losses and charge-offs (including current
additions to valuation reserves) of $96,000,000 and taxes on net
income of $272,000,000, the net profits of the banks before
dividends for the first six months in 1953. as noted above, were
$14,000,000 more than for the corresponding period in 1952.
Gross earnings were $1,500,000,000, an increase of
$181,000,000 over the six months ended June 30, 1952. Principal
items of operating earnings in the first half of 1953 were
$854,000,000 from interest and discount on loans, an increase of
$119,000,000 over 1952, and $341,000,000 from interest on United
States Government obligations, an increase of $41,000,000. Other
principal operating earnings viere $86,000,000 from interest and
dividends on securities other than United States Government, and
$73,000,000 from service charges on deposit accounts. Operating
expenses, excluding taxes on net income, were $876,000,000 as
against $787,000,000 in the first half of 1952. Principal operating
expenses were $427,000,000 for salaries and wages of officers and
employees and fees paid to directors, an increase of $40,000,000 over
the same period in 1952, and $143,000,000 expended for interest on
time deposits, an increase of $17,000,000.
Cash dividends declared on common and preferred stock totaled
$128,000,000 in comparison with $121,000,000 in the first half of
1952. The annual rate of cash dividends was 3-58 percent of average
capital funds. The cash dividends in the current period were
44 percent of net profits available for the six months. The
remaining 56 percent of net profits, or $165,000,000, was retained
by the banks in their capital funds.
On June 30, 1953 there were 4,88l national banks in operation,
as compared to 4,932 on June 30, 1952.

- 2-

O «""» o

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 19$3 AND JUNE 30, 1952, M D THE
IEAR ENDED DECEMBER 31, 1952
(Amounts in thousands of dollars)

6 months ended
June 30, i
1953
5

Year ended
Dec. 31,
1952

June 309
1952

Capital stock, par values
Preferred ••«,.;••,,•••••
.,..*.. $
5,662 $
Common ••09««#.••««•«••&«•oeo...r«.a»
2,239,079

7,460 $
2,146,946

6,862
2,171,026

TOTAL CAPITAL STOCK ....e ,«.*.l/ 2,244,741 3/ 2,154,406 2/ 2,177,888
Capital funds ...... .*.!/ 7,148,973 1/ 6,783,091 2/ 6,875,134
in

llm

•

, i

•

i —

!••!••

i n

J I

IIIIII II m i

Earnings from current operations;
Interest and dividends;
On U« S© Government obligationsc.
On other securities («««9«»i»i»t«
Interest and discount on loans ,-»••
Service charges on deposit accounts
Other service charges, commissions,
fees, and collection'and exchange
charges 9A*94.ococ«o.o....<io3a««69
irus~t> ctepar"omeno » » a o e c « M * « « i o o o » «

Other current earnings »<>...«a...c9

.in

-n

| f

i i i

I I -

i •

i«

—

•

—

•

340,704
85,974
853,754
73,406

299,800
79,588
735,089
67,322

633,688
164,228
1,536,789
136,272

43,285
40,590
62,309

38,098
37,165
61,768

77,772
80,627
121,191

1,500,022

1,318,830

2,750,567

140,020
279,874

128,090
252,144

271,744
535,618

7,294

6,664

14,545

143,244
40,652

126,089
38,814

260,995
78,646

21,258
243,166

18,716
216,643

42,205
458,06l

TOTAL EARNINGS FROM CURRENT
UxiiiiuiiXUl\lO

(e«»oei'tec«e««*itKio

Current operating expenses;
Salaries and wagesi
UII1C er S .<vQeo.ec.oc«.«.•<••<>.90»

Employees other than officers «0«Fees paid to directors and members
of executive, discount, and
advisory committees
Interest on time deposits
(including savings deposits) .„. c .
Taxes other than on net income 0 «o.
Recurring depreciation on banking
house, furniture and fixtures 0 « o *
Other current operating expenses «...

TOTAL CURRENT OPERATING EXPENSES, 875,508 787,160 l,66l,8l4
NET EARNINGS FROM CURRENT OPERATIONS .. 62iT,5l4 531,670 1,088,753

—

- 3 EARNINGS, EXPENSES, M D DIVIDENDS OF NATIONAL BANKS IN THE SIX
MONTH PERIODS ENDED JUNE 30, 1953 AND JUNE 30, 1952, AND THE
XEAR ENDED DECEMBER 31, 1952 — Continued

00T
*a nL i

(Amounts in thousands of dollars)
»>»»«•»» il

II jmmmmm.-—»»

' mwmmmmmmmmmmmmt\

Recoveries3 transfers from valuation
reserves3 and profits?
On securities:
Recoveries «.<*•%•»..•••.••••»o.«.*.*«
Transfers from valuation reserves ••
Profits on securities sold or
redeemed .««»«....ae..........•••••
On loans:
Recoveries .»..o....«..e•••«••••».*»
Transfers from valuation reserves «.
All other ••o«.*«..«...o.«....«<»..••*• &_
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES M D PROFITS .,...
Losses, charge-offs, and transfers to
valuation reserves:
On securities:
Losses and charge-offs C < I « < M
Transfers to valuation reserves ..c
On loans:
Losses and charge-offs
0...... ?
Transfers to valuation reserves ..»«
All other «r9«...«c...«.......«^....*•*.

TOTAL LOSSES, CHARGE-OFFS MD
TRANSFERS TO VALUATION RESERVES , 0
PROFITS BEFORE INCOME TAXES

...e«...e...9.o

mmmm

6 months ended
June 30,
June 30,
1952
1953

Year ended
Dec» 31,
1952

2,449
7,994

3,135
8,946

6,884
14,844

7,657

11,696

20,165

8,246
3,300

4,985
4,382
5,914

11,654
14,949
12,604

37x211

39,058
'XJL

81,100

23,480
13,040

13,071
6,774

61,233
16,739

5,875
35,030
19,016

3,694
34,584
10,906

11,349
83,973
29,982

96,441

69,029

203,281

565*284

501,699

966,572

213,959
8,821
222,780
278,919

387,963
17,128
405,091
561,481

208
120,397
120,605

400
258,663
259,063

Taxes on net income:
Federal
.•...••«
<.....• 262,079
State «,„...
o...
....p..**
9,617
TOTAL TAXES ON NET INCOME >..****., 271>696
293,588
NET PROFITS BEFORE DIVIDENDS o««««o«..«.«*o
Cash dividends declared:
Cn preferred stock .<>.»9..••••*«•»••••••
158
On common stock .»...c»..»».»..oe«a....o
127,674
TOTAL CASH DIVIDENDS DECLARED ......
127*832
Number of banks 3/ .... e c . r . c o » » o e t . o . c s & e .
Annual rate of net profits:
Percent
To capital funds ..0
.,...•••••«
8.21
Annual rate of cash dividends:
To capital funds »..„,
.......
3.58
1/ Averages of amounts reported for the June call date in
December call date in the previous year.
2/ Averages of amounts reported for the June and December
indicated and the December call date in the previous
3/ At end of period.
-0O0-

HT9T2"
Percent
"BT22

TT9T6"
Percent
TTlf

3.56
3o77
year indicated and the
call dates in year
year,

STATUTORY

AS 0F

D E B T LIMITATION

T R E A S U R Y DEPARTMENT

Mtm^joua^ __•;^ % Ik

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
or 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 2.6, 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 asiits face amount."
The following table shows the face amount of obligations outstanding and the face amount which caslstillie issued under
this limitation:
yi^y*
Total face amount that may be outstanding at any one time
$ 2 7 5 » 0 0 0 , 0 0 0 000
Outstanding
Obligations.issued under Second Liberty. Bond Act, as amended
Interest r bearing:
Treas ury. bills _
$ 19»50?, 693»000
Certificates of indebtedness
26,368,6l4,000
Treas ury notes
""
39.216. 660 .200 $ 85 , 092,967 , 200
Bonds Treasury
73,242 , 962 , 450
Savings (current redemp. value)
57,795,442,750
Depositary
458,690,000
investment T^ZIIIIIIZ.
13*088,398,000
144,585,493,200
Special Funds Certificates of indebtedness
Treasury notes
J"H
Total interest-bearing
„
Matured,, interest-ceased
a„
Bearing no.interest:
War savings stamps
_
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series

Total

m
. f\nr\
2 6 , 521,603 ,000
14,436.774.900

47,099,402
I,4l7,4l6
1,280,000,000

:::: z z z z z z z z z

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A. :
_ „..
Matured, interest-ceased
__

40,958,377,900
270 , 636 , 838 , 300
3 9 2 , 666 , 320

1,328 , 516 , 8 l 8

272,358,021,438

,
62,518,136
1,133 * 275

63 ,Oj± ,^±1

Grand tota 1 outstanding
,
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt September 30 » 1953
"""'
TDaTej
(Daily Statement of the United States Treasury, S e p t e m b e r 3 0 , 1 9 5 3
'"'(DaTe)
Outstanding Total gross public debt
_
Guaranteed obligations not owned.by the Treasury
Total gross public debt and guaranteed obligations
Deduct.- other outstanding public debt obligations.not.subject to debt limitation

2?2,W2m.,o"Zt0*7
2 , 5 (O » 3 ^ (»±J*

)

272,936,996,173
o3»o51i^l
273,000,647,5^
? 7 ^ t " ' ^ * '•"

272,421,672,849

fy\y
Treas.Dept.-PD-Wash.,D.C.

STATUTORY DEBT LIHETATIQN
AS OF SEPTEMBER 30, 1953

229
October 9, 19$3

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, 1946j 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 uaiteivthia liflitatione
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 j
Treasury bills
.$19,507,693,000
Certificates of indebtedness,,.. 26,368,614,000
Treasury notes,
„
3952165660,200 $ 85,092,967,200
Bonds Treasury..
73*242,962,450
Savings (current redemp.value)57,79$,442,750
Depositary* ,.».....«*
••
453,690 *>000
Investment series.
33,088,398,000 144,585.^493,200
Special Funds Certificates of indebtedness. 26,521,603,000
Treasury notes,
. 14,436,774,900
40^958,377..,900
Total interest-bearing.,...,
,..,.
"570,636,83B7300
Matured, interest-ceased,..
392,666,320
Bearing no interest:
War savings stamps.
• • •.«
47,099,402
Excess profits tax refund bonds.©
1,417,416
Special notes of the United Statesj
Internat'l Monetary Fund series 1^280,000,000
1,328,516,818
Total...
............
******777....*....'.... 272,358'j02l7E3B
Guaranteed obligations (not held by Treasury) J
Interest-bearing:
Debentures: F.H.A
62,518,136
Matured, interest-ceased
1,133,275
63,651,411
Grand total outstanding. * 272,421,672,849
Balance face amount of obligations issuable under above authority... a

27F78",32YJl£l

Reconcilement with Statement of the Public Debt September 30, 1953
(Daily Statement of the Unted States Treasury, September 30, 1953)
Outstandings
Total gross public debt
272,936,996,173
Guaranteed obligations not owned by the Treasury..,
63,651,411
Total gross public debt and guaranteed obligations.,
....273,000,647,584
Deduct - other outstanding public debt obligations not subject to
debt limitation
578,974,735
272,421,672 ',W
H-275

^Vw^-X^^ y<,A'•'.•<.

'' 2

Secretary Humphrey today announced the appointment
of Kenton R. Cravens, Administrator of the Reconstruction
Finance Corporation, as Special Assistant to the
Seeretary of the Treasury to perform the duties and
functions of the Secretary in making, servicing and
disposing of loans and loan guarantees under the
Defense Production Act of 1950, and in making and
servicing Federal Civil Defense Loans.
These duties were transferred to the Seeretary
of the Treasury by Executive Order 10489, dated
September 26, 1953 and by the Reconstruction Finance
Corporation Liquidation Act, appi?oved July 30, 1953.

TREASURY DEPARTMENT
WASHINGTON, D.C.
-s »

»_. KJ mi.

IMMEDIATE RELEASE,
Friday, October 9, 1953.

H-2?6

Secretary Humphrey today announced the
appointment of Kenton R. Cravens, Administrator
of the Reconstruction Finance Corporation, as
Special Assistant to the Secretary of the
Treasury to perform the duties and functions
of the Secretary in making, servicing and
disposing of loans and loan guarantees under
the Defense Production Act of 1950, and in
making and servicing Federal Civil Defense
Loans.
These duties were transferred to the Secretary
of the Treasury by Executive Order 10489, dated
September 26, 1953 and by the Reconstraiction
Finance Corporation Liquidation Act, approved
July 30, 1953.

oOo

/-/-3L77

$@l»rte«i§. anmun©@d lost m n U g that tfc» tMBdam for $1,500,000,0(

«r tlttroolmifeft-, of JMfcgr trraRirjr Mils to fe@ dated o®i@b@r 1$, 1953, aM t
Jnuargr 14, 199** «M«fe w» at£@w«t «a ootattr 6, mm opened mt thm Fadmral Mmrv*
Bmkti on October 9*
The details of thla tara* &m am followsji
Total a\mmlimd for - 12,219,088,000
Total accopttd
- l*5Qa,9Ofc,O0O

(JwOaAMi t t a i t ^ Q O O tistersd m a
mW&HStfmee^tlym basis and ajccsoted in
full at tto average price shown below)
Ammm
mlmm
- 9P-.637 S t r i a t a * rate at 6Sjmmab «&prau U i l ^ ptr
Eanpu «Nt i^e«pttd cottpotltito bl4r*
- ff .684 ^uiwtaft rft&t of elvcouat approx. 1.2501 per
- 99»6J4
•
e a r n
m
l4|fca£ *
®

Lew

(37 pir««&t, of tte

hM tm at ttotarprie® i

ammm^m

M«l

F@d^ml ftoaerve
Bigteiet

iaidlftd for

Boston

16*029,000

l!t«lOTi<m
t2»2is>»aaistQoo

11,^0*9^000

m9$m9tm

35*329,000
17*675,000
£3,s*it»ooo

lt4,76#»000
TOtttA

feta
iM&jOtt
1*0630 AoVOQO
t| f ^? # O0O
38,133,000
12,377,000
23,00,000
15Q, 749,000
27f8B6,000
13,40^000
50,964*000
Z99m99mo
52,640,000

i»ili,«w^ooo
19,167,000
43,703,000
14,477*000
25,160,000

IMl&d#l$iii&
Cftmtad
Eie^hsiond
A$l&$fc&
Chicago
St. &0«l0
i^.mwmp<oliM
Kansas City
DaUas

mmwfflmr^wj^titWBNfojp

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Saturday, October 10, 1953-

H-277

~,M

Km* W

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 15, 1953, and to mature January 14, 1951!-, which were
offered on October 6, were opened at the Federal Reserve Banks on
October 9.
The details of this Issue are as follows:
Total applied for - $2,219,088,000
Total accepted
- 1,500,904,000 (includes $224,983,000
entered on a non-competitive
basis and accepted in full at
the average price shown
below)
Average price
- 99-637 Equivalent rate of discount approx.
Range of accepted competitive bids: 1.438$ per annum
- 99.684 Equivalent rate of discount approx.
1.250$ per annum
Low
- 99.634 Equivalent rate of discount approx.
1.448$ per annum
(87 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'
KcUi3as City
Dallas
San Francisco TOTAL

Total
Applied for

Total
Accepted

> 16,029,000
1,645,628,000
39,167,000
43,783,000
14,477,000
25,160,000
208,580,000
35,329,000
17,675,000
53,994,000
44,769,000
74.497,000

$
14,529,000
1,063,748,000
23,5^7,000
38,133,000
12,377,000
23,0o3,000
150,749,000
27,3^6,000
13,409,000
50,964,000
29,839,000
52,640,000

$2,219,088,000

$1,500,904,000

0O0

TREASURY DEPARTMENT
Information Service

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

RELEASE MORNING NEWSPAPERS,
•TLUi.siLL.ayj OU^ULWIJJLI 15j lft5"K

//'
H=25^

SeftmpJrtw.

During the month of Au^ui*/ 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted in net purchases of §'$i7^&Pr,
Secretary Humphrey announced today.

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, October 15, 1953.

H-2J6

During the month of September, 1953
market transactions in direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted in net purchases of $38,406,800,
Secretary Humphrey announced today.

oOo

m*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 VALUE2 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

s Established
: TOTAL QUOTA
*

United Kingdom . . . . . .
4,323,457
Canada .........
239,690
France . . . . . . .
..
227,420
British India . . . . . .
69,627
Netherlands.. . . . . . .
68,240
Switzerland . . . . . . ,
44,388
Belgium . . . . . . . . .
38,559
Japan .no.*.....
341,535
anxna 0 0 . 0 . 0 .

. o *

Egypt o o o o e o o a e o
Cuba 0 0 . 0

o o a o o .

Germany • . . . , . . . . .
Italy . , . , , 0 0 0 . .

:
Total Imports
s Established s
Imports
l/
t Sept. 20, 1953, to s 33-1/3$ of s Sept. 20, 1953,
t October 13. 1953
1 Total Quota.t to October 13. 1953
165,750
239,690
-.
«.
16,947
••
1,099
—

1,441,152

165,750

75,807
22,747
14,796
12,853
—

16,947
1,099
—

J.y,322

•»*

—

8,135

—

6,544

«-

—

««,

76,329
21,263

24,298
«.

25,443
?s088

24,298
„

5,482,509

447,784

1,599,886

208,094

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

sny4'

„«^

^u^

^^^L/

IMMEDIATE RELEASE
October 13, 1953

Preliminary data on imports for consumption of cotton and, cotton «as.te chargeable to the quotas
established by the President's Proclamation of September 5, 1939., aa 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 53» to October 13, 1953, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan . . .
X CfU

9 . S 0 . . . 0 .

British India . . . . •
China

. . o o . o . . o

Mexico . . . . . . . .
OJVaZXX

Union of Soviet
Socialist Republics .
Argentina . . . . . . .
riaZLX>j.

o e « . . . o . .

Ecuador • • . . . . . .

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Imports

Country of Origin
Honduras .....
Paraguay
Colombia
j.raq « o o . « « o .

2,459,176
613,651

Established Quota
752
.
.

British East Africa . .
Netherlands E. Indies.
Barbados
l/0ther British I. Indies
Nigeria
2/0ther British W. 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.
3j Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 1953. to Oct. 3. 1953
_

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 19 53* to October 13, 1953

Established Quota (Global)

Imports

Established Quota (Global) Imports

70,000,000

86,812

45,656,420 40,245,952

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Wednesday, October 14, 1953

H-279

Preliiaihary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
• COTTON (other than linters) (in pounds)
Cotton under l~l/8 inches other than rough or harsh under 3/4"
Imports Septo 20, 1953* to October 133 1953, inclusive
Country of Origin

Established Quota

Egypt and the AngloEgyptian Sudan * *
Peru e © • . . . . • a
British India « 9 no
• . • . •
China* • •
Mexico • . • . .»...» . e
urazuL © ~> . ."" o . « e
Union of Soviet
Socialist Republics,,
Argentina C> » » . . o
• • .' . . . t>
Haiti
Ecuador a e •"*• a o « ©

783,816
247,952
2n003o483
1,370,791
8,883,259
* 618,723

Imports

Honduras <, e . . » « c
P«&i~aguay . . „ -» » • *

475,124
5*203

237
9,333

Country of Origin

«
-

2,459,176
613,651

Nigeria

- - -

•

871
124
195
2,240
71,388

British East Africa^ 3
Netherlands E Q Indiesc
Barbados x> *> *> » ••• o o
l/Other British Wo Indies- 21,321

• •

752

Colombia <> © «. a • o o

•3

••••

Established Quota

o o o o • • O

2/other British Wo Africa,
3/other French Africa* o
Algeria and Tunisia* Q

5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad,, and Tobago,
2/ Other than Gold Coast and Nigeria0
3/ Other than Algeria, Tunisia, and Madagascar^,
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20^ 1953, to 0cto 37"l95?""",
Established Quota (Global)
70,000,000

Imports
86,812

Cotton 1^1/8^ or more, but less than l~ll/l6»
Imports Febo 1, 1933, to October 13, 1953
Established Quota (Global)
45,656,420

Imports
40,245,952

-2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than l»3/l6 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE,. WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEs Provided* however, that, not more than 33<»l/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 Italys
"Established
. TOTAL QUOTA

Country of Origin
United Kingdom
Canada « «,"*'«,
France B 0 \ \
British India©
Netherlands' «
•Switzerland' *
-Belgium0 © o "•
Japan « a <y 9"
Qhlna &
Egrpt *
Cuba 9 a
Germa.ry0
Italy0 *

* ft

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
5,482,509

1/ Included in .total imports* column 2t
Prepared in tlie Bureau of Customs*.

3
Total Imports
f Septc 20, 1953* to
s October 13, 1953
165,750
239,690

Established s
Imports
33-1/3* of s Sept,.,20,, 1953,
Total Quota : to October 13, 1953
1,441,152
165* 7?0

•

•%

75,807
16,947
1,099
tm

22,747
14,796
12,853

16^947:

25*443
. 7*088

24,298-

1,599,886 ,:

208,094

,1,029,

24*298
447,784

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

Country of Origin
United Kingdom
oanacta . . . o
France . . „ .
British India.
Netherlands .
Switzerland .
Belgium . . .
&i.apan . o . o «
ItilinS e o . o t
Egypt < o « o c

<
«
«
«

*
o o
e .
9 O

o o
o e
o o

Germany
Italy 0

s o
o o

Total Imports
Sept. 20, 19 5^ to
September 19, 1953

Established
33-1/36 of
Total Quota

Imports
3^
Sept. 20, 19 52,
to Sept. 19, 1953

,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

167,354
239,495
13,032
66,004
15,715

24,618
6,430

25,443
7,088

24,618

5,482,509

545,501

1,599,886

239,395

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

12,853

1,441,152

166,747

75,807

13,032

22,747
14,796
12,853

15,715
12,853

^-*lx*^t

(jL^txy^^

"T 3

IMMEDIATE RELEASE
October 13, 1953

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
establishedby 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 3/411
Imports Sept. 20, V$Z9 to September 19, 1953, inclusive
Country of Origin
Egypt and the AngloEgyptian Sudan . .
e
.
o
o
o
.
Peru .
British India
o
o
e
China ,
Mexico . O O . . . * .
Brazil
........
Union of Soviet
Socialist Republics
o
o
o
o
Argentina
Haiti . . . . .
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

53,664

8,883,259
550,127
1,382

Country of Origin
Honduras ....
Paraguay
.
. . . e o
Colombia . . .
Iraq . . . . .
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. 195.2. to Sept. 19», 1953 ,

Cotton 1-1/8" or more, but less than 1-11/16'
Imports Feb. 1. 1953, to September 19, 1953

Established Quota (Global) Imports

Established Quota (Global)
45,656,420

70,000,000

22,501,346

Imports
37,566,909

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, October 14, 1953

H-280

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Presidents Proclamation of September $9 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1952, to September 19, 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
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Imports

53,664

8,883,259
550,127
1,382

Country of Origin

Established Quota

Honduras •
Paraguay . . . . . . . .
Colombia
Iraq
British East Africa. . .
Netherlands E. Indies. .
Barbados ,
l/0ther British W. Indies.
""Nigeria
2/0ther British W. Africa
3/0ther French Africa. . .
"" Algeria and Tunisia. . .

Imports

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

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1953, to September 19, 1953

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 22,501,346

45,656,420

Imports
37,566,909

r-o
\rnmm.

-2-

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

Country of Origin

Established
TOTAL QUOTA

United Kingdom . . . . . - -4,323,457
Canada . . » , . . # . r
-239,690
France • » . . . • . . .
227,420
British India. . . . . .
69,627
Netherlands. . . . . . .
68,240
Switzerland . . . . . .
44,388
Belgium
38,559
Japan
341,535
# # .
China * . . . . . . . .
17,322
Egypt
8,135
# .
Cuba
6,544
Germany. . . . . . . . .
76,329
Italy
21,263
# .
5,482,509

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

Total Imports
Sept. 20, 1952, to
September 19, 1953

167,354
239,495
13,032
66,004'
15,715

Established
-33-1/3$ of
Total Quota

1,441,152

Imports
1/
Sept. 20, 1952,
to Sept. 19, 1953
' 166,747

75,807

13,032

12,853

22,747
14,796
12,853

24,618
6,430

25,443
7,088

24,618
6,430

545,501

1,599,886

239,395

12,853

V-2

IMMEDIATE RELEASE
October^, 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 October 3, 1953,
inclusive, as follows:

Products of the
Philippines

Established Quota : Unit of
Quantity
: Quantity

Buttons

850,000

Gross

Imports as of
October 3, 1953

631,463

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

76,590,614

Cordage 6,000,000

Pound

3,262,435

Rice 1,040,000

Pound

2,500

(Refined
Sugars

1,904,000,000
(Unrefined

Tobacco 6,500,000

2,459,567

Pound
1,522,871,553

....
Pound

2,301,681

*?4 g
TBE&SUaT XEPAIEMgJT
Washington.
BEEDIATE KEI£ASK
Wednesday., October Ik? 1953

E-281

The Bureau of Customs azraouoced today preliminary figures showing the
imports for consxiBsption of cosaaodities on which quotas were prescribed by
the Philippine Trade Act of Wh&9 from January 1, 1^53, to October 3, 1°53*
inclusive, as follows.?

Established Quota
Quantity

Products of the
Philippines

Holt of
'Quantity

Imports as of
October 3, 3^53

Buttons • • •

• •

850,000

Cigars • • •

• •

200,000,000

Number

Coconut Oil «

446,OOO,OGO

Pound

76,590,6lk

Cordage • * •

6,000,000

Pogad

3,262,435

1,040,000

Poind

2,500

1,904,000,000

Pound

1,522,871,553

6,500,000

Pound

2,301,681

Bice • • • •

•

(Refined
Sugars
(Unrefined

• *

Tobacco • • • •

t •

Gross

631,1*63
2,459,567

IMMEDIATE RELEASE
October 13. 1953

9&m*

The Bureau of Customs announced today preliminary figures shoveling the imports
for consumption of the commodities listed below within quota limitations from the
beginning of the quota periods to October 3, 1953, inclusive, as follows:
Commodity

Period and.Quantity

Whole milk, fresh or sour . . . Calendar year
Cream Calendar year
July 16, 1953Butter

3,000,000

Unit :
Imports
of . :
as of
Quantity:
Oct. 3. 195S
Gallon

1,500,000 Gallon

jOct. 31, 1953

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

5,000,000 Pound

33,866,287 Pound

2,443

30,178,011

white or Irish potatoes:
certified seed
other

12 months from
Sept. 15, 1952

150,000,000 Pound
798,900,000 Pound

114,224,233
84,529,736

white or Irish potatoes:
certified seed
other

12 months from
Sept. 15, 1953

150,000,000 Pound
6Q,00q,0O0 Pound

200
170,425

Cattle, less than 200 lbs. each 4pri5nI,5195§m

200,000 Head

3,835

Cattle, 700 pounds or more each July 1, 1953(other than dairy cows) • . . «35pt. 30, 1953

120,000 Head

15,528

Cattle, 700 pounds or more each Oct. 1, 1953(other than dairy cows) . . . .Dec. 31, 1953

120,000 Head

ealnuts Qalendar year

5,000,000 Pound

Quota Filled

7,000,000 Pound

5,994,520

& Filberts, shelled (whether or not 12 months from
4,500,000 Pound
blanched)
Oct. 1, 1952

4,181,967

* Almonds, shelled, blanched,
roasted, or otherwise pre-*
pared or preserved

12 months from
Qct. 1, 1952

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
eluding peanut butter) . . . . .July 1, 1953
12 months from
Peanut Oil
July 1, 1953
(*)

Imports through September 30, 1953<

1,709,000 p oun d
to.000.000 Pound

6,220

TREASURY DEPARTMENT
Washington

a, ^ 0

IMMEDIATE RELEASE
Wednesday, October 14» 1953

E-282

Whole milk, fresh or sour,

Calendar year

Unit s Imports
of
:
as of
Quantity: Oct. 3, 19$;
3,000,000 Gallon
10,371

Cream •

Calendar year

1,500,000 Gallon

Butter

July 16, 1953- 5,000,000 Pound
Oct. 31, 1953

Commodity

Period and Quantity

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

943
2,443

33,866,287 Pound

30,178,011

White or Irish potatoes:
certified seed.........
other

12 months from 150,000,000 Pound
Sept. 15, 1952 798,900,000 Pound

114,224,233
84,529,736

White or Irish potatoes:
certified seed ........
other •,

12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

200
170,425

Cattle, less than 200 lbs. each

12 months from
April 1, 1953

200,000 Head

3,835

Cattle, 700 pounds or more eachJuly 1, 1953(other than dairy cows)
Sept. 30, 1953

120,000 Head

15,528

Cattle, 700 pounds or more eachOct. 1, 1953(other than dairy cows)
Dec, 31, 1953

120,000 Head

Walnuts ,

Calendar year

5,000,000 Pound

Quota Filled

Almonds, shelled, blanched,
roasted, or otherwise pre12 months from
pared or preserved
, Oct. 1, 1952

7,000,000 Pound

5,994,520

Filberts, shelled (whether or not
12 months from
blanched)
Oct. 1, 1952

4,500,000 Pound

4,181,967

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
cluding peanut butter)
July 1, 1953

1,709,000 Pound

6,220

12 months from
July 1, 1953
(*) Imports through September 30,
19537
Peanut Oil

9 #.

80,000,000

Pound

FOR EMEDIATE RELEASE,

yZf^

October 13, 1953

Ju
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, 194l, as modified by the president»s
proclamation of April 13, 1942, for the 12 months commencing May 29, 19 5^
as follows 2
•

—

O
*

•

s
s
:
:

4
0

Country

Wheat

of
Origin

Hheat H o u r, semolina.
crushed or cracked
wheat, and similar
wheat products

I Established :

Quota

ft.
• (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 s
Imports
Quota
s May 29.» 1953,
19 53 to s
to Oct. 13, 1??
X October 13, 1953
(pounds)
(Pounds0
(Bushels)
O Uit-i'Aj

tW/

795,000
—

795,000

100

—

100
100
—
.„

100
2,000

100
1,000
mm

100
mm

—
—
—
—
—
—
—
_
_
—
_
_
_
_
_
_

mm
mm
mm

rm
MM,

mm.

~.
1,000

100
100
100
100

_,
—
„_

_
^

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
—

3,815,000
-.
mm
mm

-4

—
—
—
—
«
mm

« • »

—
-

—

TREASURY DEPARTMENT
Washington

247

IMMEDIATE RELEASE
Wednesday3 October l4i 1953

H-283

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 flour, semolina,
crushed or cracked
wheat, and similar
wheat products

Wheat
Country
of
Origin

Established
Quota
(Bushels)

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

Imports
May 29, 1953, to
October 13, 1953

Imports
May 29, 1953,
to Oct. 13, 19?

(Bushels)

(Pounds)

795,000

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

3,8i5,ooo

- 3-

MM.

but shall be exempt from all taxation now or hereafter imposed on the principa

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 dis-

count at which Treasury bills are originally sold by the United States shall b
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

the owner of Treasury bills (other than life insurance companies) issued hereunder need incJLudo in his income tax return only the difference between the

price paid for such bills, ivhethor on ori^pnal issue or on subsequent purchas
and the amount actually received either upon sale or redemption at maturity

- 2 -

parent 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 incorporat
bank or trust company.
Tjnmediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, f oilowing 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 thereo

The Secretary of the Treasury expressly reserves the right to accept or reject
an3f or all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, non-caapetitive 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
ccopletod at the Federal Reserve Bank on October 22, 1953 s 3-n

casil or

other immediately available funds or in a like face amount of Treasury bills
maturing October 22, 1953 • Cash and exchange tenders will receive equal
X#9K
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,

TREASURY DEPARTMENT
Washington
FOR RELEASE, HORNING NEWSPAPERS,

LJ ^ y C (J
' f £-• * T:

.T52E§^yjL_9©*o^ep_ 15, 19$3__
The Treasury Department, by this public notice,, invites tenders for
'.p 1.500.000. OOO 3

thereabouts, of 91 -day Treasury bills, for cash and

in exchange for Treasury bills maturing October 22. 1953 > ^n ^e amount of
$1.500.620.000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated October 22, 1953 3 and mil mature January 21, 1954 s *'*en 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 n.m., Eastern Standard time, Monday, October 19, 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 thre
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 b
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 corroanics and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, October 15, 1953.

H-2S4

or.,
<-~l

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 October 22, 1953.
in the amount of $1^500,620,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated October 22, 1953.
and will mature January 21, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations:r of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks4 and Branches
up to the closing hour/J two o'clock p.m., Eastern Standard time,
Monday, October 19, 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, with1 not more than
three decimals, e. g., 99325. Fractions may not be used. It is
urged th^tt tenders be made oh the printed forms and forwarded in
the special envelopes which will be supplied by Federal"1 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 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 flnall. 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
accepted
completed
U n threetenders
at
decimals)
the Federal
in accordance
of accepted
Reserve
with
competitive
Bank
the
onbids
October
bids.
must22,
beSettlement
made
1953,or
in cash
for

2 or other immediately available funds or in a like face amount of
Treasury bills maturing October 22, 1953- Cash and exchange tenders
will receive equal treatment. Gash adjustments will be made for
differences between the par value of maturing 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 sal® or other disposition of the bills," ^hail not
h^ye 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 alnternal Revenue Code, or lawssamendatory or"'•'•
supplementary thereto. The bills shall be subjedt to estate^
inheritance, gift;.or; other excise taxes, whetherm: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 byaany ;locai taxingsauthority. 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 theVlnternal 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
bili;S; sha^l be sold, redeemed or otherwise, disposed of, and
such bills ;are excluded, from, consideration, as capital assets. v —
Accordingly,, the owner, of Treasury bills (other, than life:ihSurahce
companies), issued hereunder need: includeain ;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 gaih or*
loss
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills andfgovern the
conditions of their issue.. ..Copies of the circular may be o'btaihed
from any Federal Reserve Bank or Branch.
oOo >

- 2 -

Mr. Kennedy is a member of the faculty of Central States
School of Banking at the University ©f Wisconsin, and the
School of Banking of the South at Baton Rouges Louisianaybfc& ^*^
He has lectured many times on the Government securities market
before various national educational groups.
Mr. Kennedy married Lenora Bingham of Ogden, Utah, on
November 4, 1925. They have four daughters, and maintain
their home in Evanston, Illinois.

oOo

^tJy^Ju

//_

U /yJXX

~ RELEASE

IATreasury Secretary Humphrey today appointed David M. Kennedy,
48, of Chicago, Illinois, an Assistant to the Secretary.
Secretary Humphrey said that Mr. Kennedy will assist and
advise Deputy to the Secretary W. Randolph Burgess in Treasury
financing and debt management.
At the time of his appointment, Mr. Kennedy was a
vice president in the bond department of the Continental-Illinois
National Bank and Trust Company at Chicago.

Mr. Kennedy will

have offices at the Treasury Department in Washington and the
Federal Reserve Bank in Chicago.
In April 1930 Mr. Kennedy joined the Board of Governors of
The Federal Reserve System, and served in various capacities,
including technical assistant in the Division of Bank Operations,
and assistant chief for research in Government finance in the
Division of Research and Statistics.

He also served as special

assistant to the Chairman of the Board of Governors of the
Federal Reserve System.
A native of Ogden, Utah, Mr. Kennedy is the son of
George Kennedy and the late Katherine Johnson Kennedy.

attended the public schools of Utah, and prior to robGiving

q,ffl">«fc»T»«c.e.faVemG. f»™am Weber College at* Ogden, Utah, he received
on ftp mnri T T P in 1937 fnnm George Washington University.is—
Washington, D. C,

BaaQm 1

937 fro 1 9 3 Q

h<a

*++<*"***fch»Graduate

School of Banking at Rutgers University, New w - ^ ^ V * *y*>«A~*«><**~

TREASURY DEPARTMENT
WASHINGTON, D.C.
9K4

IMMEDIATE RELEASE,
Wednesday, October 14, 1953.

H-285

Treasury Secretary Humphrey today appointed David M. Kennedy,
48, of Chicago, Illinois, an Assistant to the Secretary.
Secretary Humphrey said that Mr. Kennedy will assist and
advise Deputy to the Secretary W. Randolph Burgess in Treasury
financing and debt management.
At the time of his appointment, Mr. Kennedy was a vice
president in the bond department of the Continental Illinois
National Bank and Trust Company at Chicago. Mr. Kennedy will have
offices at the Treasury Department in Washington and the Federal
Reserve Bank in Chicago.
In April 1930 Mr. Kennedy joined the Board of Governors of
The Federal Reserve System, and served in various capacities,
including technical assistant in the Division of Bank Operations,
and assistant chief for research in Government finance in the
Division of Research and Statistics. He also served as special
assistant to the Chairman of the Board of Governors of the Federal
Reserve System.
A native of Ogden, Utah, Mr. Kennedy is the son of
George Kennedy and the late Katherine Johnson Kennedy. He attended
the public schools of Utah, Weber College, Ogden, Utah, George
Washington University, Washington, D. C , and the Graduate School
of Banking at Rutgers University, New Brunswick, New Jersey.
Mr. Kennedy is a member of the faculty of Central States School
of Banking at the University of Wisconsin, and the School of Banking
of the South at the Louisiana State University. He has lectured
many times on the Government securities market before various
national educational groups.
Mr. Kennedy married Lenora Bingham of Ogden, Utah, on
November 4, 1925. They have four daughters, and maintain their home
in Evanston, Illinois.

0O0

SV. %m/ N-/

DAVTD M. KENNEDY
Assistant to the Secretary of Treasury

David M. Kennedy was born in Randolph,-Utah on July 21, 1905,
the son of George Kennedy and the late Katherine Johnson Kennedy.
Mr. Kennedy attended the public schools of Utah, and prior to
receiving his masters degree from Weber College, Ogden, Utah, he
received an AB degree in 1935 and an LLB degree in 1937 from
George Washington University in Washington, D. C. From 1937 to
1939 he attended the Graduate School of Banking at Rutgers
University, New Brunswick, New Jersey, and was elected to membership in Pi Gamma Mu, National honorary social science fraternity.
In April 1930 Mr. Kennedy joined the Board of Governors of
the Federal Reserve System, and served in various capacities,
including technical assistant in the Division of Bank Operations,
assistant chief for research in Government finance in the
Division of Research and Statistics. He also served as special
assistant to the Chairman of the Board of Governors of the Federal
Reserve System.
Mr. Kennedy joined the Continental Illinois National Bank and
Trust Company at Chicago, Illinois, in October, 1946. He was made
vice president in the bond department, a position he held until
Treasury Secretary Humphrey named him an Assistant to the Secretary
with the duty of assisting and advising in Treasury financing and
debt management.
Mr. Kennedy is a member of the faculty of Central States
School of Banking at the University of Wisconsin, and the School of
Banking of the South at the Louisiana State University. He has
lectured many times on the Government securities market before
various national educational groups.
Mr. Kennedy belongs to the Church of Jesus Christ of
Latter-day Saints, and is a member of Stake Presidency of the
Chicago Stake. His clubs include; Union League, University and
Banker's, all of Chicago. Mr. Kennedy is also a member of the
American Statistical, and American Economic Association.
Mr. Kennedy married Lenora Bingham of Ogden, Utah, on
November 4, 1925. They have four daughters; Marilyn (Mrs. Verl
Taylor), Barbara (Mrs. Carl Law), Carol, and Patricia.
Mr. and Mrs. Kennedy maintain their home in Evanston, Illinois.

October, 1953.

oOo

SUGGESTED TREASUHT RELEASE

^ ,,

— ^MM ' ^

Sales of Series E and H Savings Bonds during
the first nine months of 1953 totaled $3*290,11$,000, the Treasury
announced today. Redemptions of E Bonds and unmatured Series E and H
A
Bonds for the same period were $3,138,248*000* Cash sales of E and H
Bonds exceeded redemptions of those s eries (matured and unmatured)
by 1151,921,000.
Sales of SeriesE and H Bonds during the first nine months of 1953
were up 23.7 per cent over the $2,660,451*000 sales during the same
period of 1952. Total matured and unmatured redemptions of these series
in 1953 were one per cent below the #3,162,642,000 total during the
first nine months of 1952.
Sales of Series E and H Bonds in September were $343*245,000. That
was an increase of 18.2 per cent over the #290,498,000 sold duiing
September 1952.
tr 7riru*iC<i
-Total redemptions of matured and unmatured Series E and H Bonds
during September 1953were $379*402,000. That was 12.5 per cent more
than total redemptions in September 1952 of $337,241,000. This increase
reflects the heavy Savings Bonds purchases of ten years ago as the War
Loan sales reach their maturity dates.
More than 75 per cent of matured Series E Savings Bonds continue
to be held by the owners under the optional extension plan, lhat
percentage of retained matured Series E Bonds has held steadily for
over two yeara*

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, October 16, 1953.

H-286

Sales of Series E and H Savings Bonds during the first nine
months of 1953 totaled $3,290,169,000, the Treasury announced
today. Redemptions of matured E Bonds and unmatured Series E
and H Bonds for the same period were $3,138,248,000. Cash sales
of E and H Bonds exceeded redemptions of those series (matured
and unmatured) by $151,921,000.
Sales of Series E and H Bonds during the first nine months
of 1953 were up 23.7 percent over the $2,660,451,000 sales during
the same period of 1952. Total matured and unmatured redemptions
of these series in 1953 were one percent below the $3,162,642,000
total during the first nine months of 1952.
Sales of Series E and H Bonds in September were $3*1-3,245,000.
That was an increase of 18.2 percent over the $290,49o,000 sold
during September 1952.
Total redemptions of matured E Bonds and unmatured Series E
and H Bonds during September 1953 were $379,402,000. That was
12.5 percent more than total redemptions in September 1952 of
$337,241,000. This increase reflects the heavy Savings Bonds
purchases of ten years ago as the War Loan sales reach their
maturity dates.
More than 75 percent of matured Series E Savings Bonds
continue to be held by the owners under the optional extension
plan, Th.at percentage of retained matured Series E Bonds has
held steadily for over two years.

oOo

fuesday, October 20, 19$3*

th® treammj 'Department ammmmd last srrealng that tha tmdmra for |1,500,000,000,
or thereabouts, of 91-day fwmmmr Mils to be dated October 22, 1S#3, md to mtorm

January 21, 1954* vhioh -mm oitmmd on 0©t®btr 15, metre opined at the federal Rese
Banks on October 19*
Th® detail® of this issue are as t©Hears i
total applied for - 112*366,309,000
total amaptmd
- 1,500,549,000

(imlwlmm |#fc586,OOD entered on a
noncompetitive basis and accepted Hi
foil at ths average price ahmm halm)
Average price
- 99.653/ E$^mleiit mtm ®£ diwrnaA appaem. 1*372$ I*®*' annua
Range of osoipfed comp@titiv@ Mdmi (mmiMm «n» twwtar a* P<X>,000)
HiA - 99.656 lqpd.ir&l®8& ^®>^® <*f discount appim. 1*361$ per annum
tm
-99.652
*
*
•
«
»
1.377%-*

(70 psrecafe of the amount, bid for at the la* r>rice TSES ssssptad)

federal tlmmrm

fotal

mmj^
Boston
Sew fork
Philadelphia
ktmmmtmtm

Chieags
St. Zeals
j&iu*spoli*

Kansas City
^HatSan fran^s©o

ran.

Total
Accepted

49*729,000
96,331*000

30,305,000
1,015,310,000
2O,2a,000
38,321,000
17,703,000
25,850,000
175*558,000
32,007,000
8,804,000
30,065,000
41,029,000
65f3l6,000

t*»366,3Q9*O0O

11*5^,549*000

$0,423,000
1,702,580,000
36,51^,000
50,004*000
13,001,000
38,203,000
215,836,000
55,667,000
9,420,000

5S*569*ooo

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, October 20, 1953.

H-287

CTQ
£-. K.J

KM*

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated October 22, 1953, and to mature January 21, 195^, which were
offered on October 15, were opened at the Federal Reserve Banks on
October 19.
The details of this issue are as follows:
Total applied for - $2,366,309,000
Total accepted
- 1,500,549,000 (includes $258,586,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.653/ Equivalent rate of discount approx.
per annum
(Excepting
one tender of
Range of accepted competitive bids: 1.372$
$200,000)
- 99.656 Equivalent rate of discount approx.
l,36lfo per annum
Low
- 99.652 Equivalent rate of discount approx.
1.377$ 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
TOTAL
San Francisco

Total
Applied for
$
38,423,000
1,702,580,000
36,546,000
50,004,000
18,001,000
38,203,000
215,836,000
55,667,000
9,420,000
55,569,000
49,729,000
$2,366,309,000
96,331.000

0O0

Total
Accepted
$
30,305,000
1,015,310,000
20,281,000
38,321,000
17,703,000
25,850,000
175,558,000
32,007,000
8,804,000
30,065,000
41,029,000
$1,500,549,000
65,316,000

'the appointment of a National Director, the Savings
Bond Division has been under the general supervision of Assistant
to the Secretary Theodore W. Braun.

FOR RELEASE A.M. NEWSPAPERS
Monday, October 19, 1953

-"" </ &

Treasury Secretary Humphrey announced today the appointment
of Earl 0. Shreve of Fort Lauderdale, Florida, as National Director
of the Treasury's United States Savings Bonds Division.
A native of Mapleton, Iowa, he received a Bachelor of Science
degree in electrical engineering from Iowa State College in 1904,
and then joined the General Electric Company at Schenectady, New
York. He advanced to Vice President in Charge of Sales and was
Vice President in charge of all^feridwgtyi*%\Yrelations when he retired
in 1948.
Mr. Shreve served as President of the Chamber of Commerce of
the United States from 1947 to 1949 and is resign** as a member of
its Senior CounciIs^s>/&ccept^xhi appointment with the Treasury.
Mr. Shreve has also been President of Junior Achievement, Inc.;
is a member of the National Council of Boy Scouts of Imerica and has
been active in the work of the Future Farmers of America.
Mr. Shreve married Miss Annabelle Thompson of Lynn, Massachusetts
in 1908. They have two sons and one daughter.

-B***"*"""

«*&**

TREASURY DEPARTMENT
WASHINGTON, D.C.

2G2
FOR RELEASE A. M. NEWSPAPERS
today, October 19, 1953

H-288

Treasury Secretary Humphrey announced today the appointment of Earl 0. Shreve
$f Fort Lauderdale, Florida, as National Director of the Treasury's United States
Savings Bonds Division.
A native of Mapleton, Iowa, he received a Bachelor of Science degree in electrical engineering from Iowa State College in 1904* and then joined the General
Slectric Company at Schenectady, New York* He advanced to Vice President in Charge
tf Sales and was Vice President in charge of all customer relations when he retired in 1948.
Mr. Shreve served as President of the Chamber of Commerce of the United States
from 1947 to 1949 and is resigning as a member of its Senior Council in accepting
the appointment with the Treasury.
Mr. Shreve has also been President of Junior Achievement, Inc.$ is a member
tf the National Council of Boy Scouts of America and has been active in the work
Df the Future Farmers of America.
Mr. Shreve married Miss Annabelle Thompson of Lynn, Massachusetts in 1908.
rhey have two sons and one daughter.
Until the appointment of a National Director, the Savings BondsDivision has
ieen under the general supervision of Assistant to the Secretary Theodore W. Braun.

oOo

- 3-

but shall be Gxar.pt 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 dis-

count at which Treasury bills are originally sold by the United States shall b
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

the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his Income tax return only tho difference between the

price paid for such bills, whether on original issue or on subsequent purchase
and the amount actually received either upon sale or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss
Treasury Department Circular No, 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained from any Federal Reserve Bank
or Branch.

- 2 -

payment of 2 percent of the face amount of Treasur3>- bills applied for, unless

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 bid
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on October 29, 1953 s -*-n cash or

other immediately available funds or in a like face amount of Treasury bills
maturing October 29, 19$3 Cash and exchange tenders will receive equal
treatment. Cash adjustments vdll be ma.de 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, sho.li 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, un-eer 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,

TREASURY aeiPARTI-SNT
Washington
FOR R2IEASS, KC3NI3G :IaTys?APERS,
Tharsday, October 22, 1953
The Treasury Department, by this public notice, invites tenders for
X 1.500.000.000 3 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing October 29, 19$3 >

in the

amount of

% lj500.11Q>000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated October 29, 1953 ,

- ^.H mature January 28. 195k s -'iien the face

X±X.

Jm-m\%

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 3anks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday, October 26. 1953

Tenders will not be received at the Treasury Department, Washington. Each tende
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 inv-stm^nt securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS, ?££
Thursday, October 22, 1953.

H-289

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 October 29,1953, in
the amount of $1,500,110,000, to be issued on a discount basis under
competitive and non-competitive bidding as hereinafter provided. ....The
bills of this series will be dated October 29, 1953, and will mature
January '28, 1954, vihen the face amount will be payable without
interest. They will be issued in beaer 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 oTclock p.m., Eastern Standard time,
Monday, October 26, 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 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 ab 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

- 2 October 29, 1953, in cash or other immediately available funds or in
a like face amount of Treasury bills maturing October 29, 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 issued Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

FRIDAY, OCTOBER 23,

Ith

The Treasury today announced that sal© of aeries C
Treasury Savings Notes is suspended mm mi 7:00 pw., EST,
Wmfldhar, Omtohmr 33, it§S.
(In answer to press queries regarding the suspension mi the sale of Series € Savings Notes
today, the Treasury said;

The suspension is due

te two related reasons, foe first ia that
detersaining the amount of th© Treasury financing to be decided next week would he difficult
in view ef the uncertainties of future daily
sales of Treasury savings notes under present
conditions. Second the savings note, being one
%r sfc-

V M ^ F

vPjgjrVFwS

TP^>*PWWSF3WJP^P *

%$™w9m4\aMm mmm-mpmmajj^m

^m*

problem in connection with the debt limit on
the basis of present sales.)

t^f.)\

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR RELEASE AT 7:00 P.M.
FRIDAY, October 23, 1953.

H-290

(NOTE: THIS MUST BE HELD IN STRICT CONFIDENCE UNTIL 7 P.M. )
The Treasury today announced that sale of
Series C Treasury Savings Notes is suspended as
of 7:00 p.m., EST, Friday, October 23, 1953.
( In answer to press queries regarding the
suspension of the sale of Series C Savings
Notes today, the Treasury said: The
suspension is due to two related reasons.
The first is that determining the amount
of the Treasury financing to be decided next
week would be difficult in view of the
uncertainties of future daily sales of
Treasury savings notes under present
conditions.

Second the savings note,

being one of the "open windows," could
create a problem in connection with the
debt limit on the basis of present sales.)

oOo

REI$A$£ iKKNING HE'ASP^PERS,
Tuesday, October 27, 1953.

/ /
j < ~~"

The treasuri Department announced last evening that the tenders lor H,500,000,001

or thereabouts, of 91-day Treasury bins to be dated October 29, 1953, and to natu

January 28, 1954, which were offered on October 22, were opened at the Pederal Re
Banks on October 26.
The details of this issue are as follows:
total applied for - $2,095,953,000
Total accepted
- lf500,199,OOD (includes 1222,383,000 entered on a
noncompetitive basis and accepted in
full at the average prise shows below)
Average price
- 99.692 Equivalent rate of discount approx. 1.220$ "per annua
Range of accepted competitive bids:
High - 99.697 Equivalent rate of discount approx. 1.199$ ®er annus

Low

- 99.686

1.234£

of the amount
(89 pfreent^id for at the low price was accepted)
Federal Reserve
District

total
Applied for

Total
Accepted

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

$
21,708,000
1,440,228,,000
$99mi ,000
96,788,,000
9,534,,000
24,758,,000
221,483,.000
18,131,,000
7,090,000
57,271.,000
35,663.,000
103,6043,000

£2,095,953;,000

$1,500,199,000

Total

16,853,000
908,138,000
59,370,000
91,228,000
9,084,000
24,758,000
185,733,000
18,031,000
6,590,000
52,849,000
31,491,0)0
96,074,000

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS, o7r.
Tuesday, October 27,1953-

£, ^

H-<*L

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to oe
dated October 29, 1953, and to mature January 28, 1954, which were
POM
opened at the Federal Reserve Banks on
October 26.
The details of this issue are as follows:
Total applied for - $2,095,953,000
Total accepted
- 1,500,199,000 (includes $222,383,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.692 Equivalent rate of discount approx,
1.220$ per annum
Range of accepted competitive bids:
Hipj! - 99.697 Equivalent rate of discount approx.
1.199$ per annum
- 99.688 Equivalent rate of discount approx.
Low
1.234$ per annum
(89 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
DistriC

Applied for

Boston
$
21,708,000
New York
1,440,228,000
PMladelphia
59,695,000
Cleveland
96,788,000
Atlanta 24,758,000 24,758,000
Chicago
221,483,000
St Louis
18,131,000
Minneapolis
7,090,000
Kansas City
57,271,000
Dallas
35,663,000
San Francisco
103,604,000
TOTAL $2,095,953,000 $1,500,199,000
0O0

Accepted
$

16,853,000
908,138,000
59,370,000
91,228,000
185,733,000
18,031,000
J>4?°'°°°
^2,849,000
31,491,000
9o,074,000

- 3-

but shall be exempt from all taxation now or hereafter imposed on the princip

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, whether on original issue or on subsequent purchase
and the amount actually received either upon sale or redemption at maturity

- 2 -

pajTiient of 2 percent of the face amount of Treasury bills applied for, unles

Those submitting tenders vdll be advised of the acceptance or rejection thereo

other immediately available funds or in a like face amount of Treasury bills
maturing November 5. 1951 Cash and exchange tenders will receive equal
"\ '""7

treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of the now
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 fron the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under the Internal Revenue Code, or
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

TREASURY DEPARTMENT
Washington

V
\

FOR RELEASE, MORNING" NEWSPAPERS,
Tuesday, Oetober 27, 1953

mr"~—
The Treasury Department, by this public notice, invites tenders for
% 1,500»OOP,,000

, or thereabouts, of

in exchange for Treasury bills maturing
% 1,5®0»309,000

91 -day Treasury bills, for cash and
November $9 1953

, in the amount of

, to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated Jforenjfrsr $9 1953

"S9t

, and'will mature

February 4, 1954

—

, when the face

P5~~——

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of &1,000, $5,000, &10,000, $100,000, |500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o»clock p.m., Eastern Standard time, Friday, October 30, 1953
.«

-p—

£_—

m$3m%

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 avm 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 bo accompanied by

.
;

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday3 October 27, 1953.

274
H-292

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 November 5, 1953,
in the amount of $1,500,309,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated November 5, 1953.,
and will mature February 4, 1954, when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Friday, October 30, 1953- Tenders will not be received at the
Treasury Department, V.:ashington. 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 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 bids.
full
atbe
the
average
price
(in
decimals)
of accepted
with
competitive
the bids
must
Settlement
made
or completed
for
accepted
atthree
the
tenders
Federal
in accordance
Reserve
Bank

- 2 -.
on November 5, 1953, in.cash or other immediately available funds
or in a like face amount of Treasury bills maturing November 5,
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

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TREASURY DEPARTMENT
WASHINGTON, D.

IMMEDIATE RELEASE, c [ ^
Monday, October 26, 1953.

H-293

Secretary of the Treasury Humphrey announced today that on
Wednesday, October 28, the Treasury will offer for cash subscription an issue of $2,000,000,000, or thereabouts, of fully
marketable 2-3/4 percent Treasury bonds, to be dated November 9,
1953, and to mature September 15, 1961.
Subscriptions from commercial banks, which for this purpose
are defined as banks accepting demand deposits, for their own
account will be received without deposit.

A payment of 10$ of

the amount of bonds subscribed for, not subject to withdrawal
until after allotment, must be made on all other subscriptions.
Commercial banks and other lenders are requested to refrain
from making unsecured loans, or loans collateralized in whole or
in part by the bonds subscribed for to cover the 10$ deposits
required to be paid when subscriptions are entered, and a
certification by the submitting bank that no such loan has been
made will be required on each subscription entered by it for
account of its customers.
The Treasury reserves the right to reject or reduce any
subscription, and to make different percentage allotments to
various classes of subscribers.

oOo

- 2own $50,000,000,000 in these Bonds. The continued
and expanding investment in America by Americans
through these purchases helps to spread the ownership
of the public debt and so contributes to our program
whose goal is a sound dollar, as well as to the
development of the habits of thrift and savingsvirtues which have made America great.

We thank

the Chief Justice for helping us toemphasize the
importance of this program."

0O0

FOR RELEASE 12 NOON
Wednesday, October 28, 1953

H-

? 9
^

Chief Justice Warren of the U.S. Supreme Court today
jy

administeered the oath of office to Earl 0. Shreve of
Fort Lauderdale, Florida, as National Director of the
United States Savings Bonds Division of the Treasury Department.
Treasury Secretary Humphrey introduced the new National
Director at the ceremonies attended by Treasury and other
government officials and representatives of the many volunteer
groups which have aided in the development of the Savings
Bonds program.
Mr. Shreve was formerly Vice President of the General
Electric Company in charge of sales and customer relations.
He is also a past president of the United States Chamber of
Commerce.
The Secretary welcomed Mr. Shreve to the Treasury staff
citea InLm as an outstanding sales executive who has come out
of retirement to serve the country in the promotion of thrift
through the sale of Savings Bonds.
On introducing Chief Justice Warren at the Treasury
ceremony, Secretary Humphrey said:
"Chief Justice Warren1s taking part in this
ceremony is indicative of the support of the
Savings Bonds program at the very highest levels
of the Government, and we are deeply honored by
his presence .here. More than 40 million individuals

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR RELEASE 12 NOON
Wednesday, October 28, 1953.

H-294

Chief Justice Warren of the U. S. Supreme Court today
administered the oath of office to Earl 0. Shreve of
Fort Lauderdale, Florida, as National Director of the United
States Savings Bonds Division of the Treasury Department.
Treasury Secretary Humphrey introduced the new National
Director at the ceremonies attended by Treasury and other government officials and representatives of the many volunteer groups
which have aided in the development of the Savings Bonds program.
Mr. Shreve was formerly Vice President of the General Electric
Company in charge of sales and customer relations. He is also a
past president of the United States Chamber of Commerce.
The Secretary welcomed Mr. Shreve to the Treasury staff,
citing him as an outstanding sales executive who has come out of
retirement to serve the country in the promotion of thrift
through the sale of Savings Bonds.
On introducing Chief Justice Warren at the Treasury ceremony,
Secretary Humphrey said:
"Chief Justice Warren's taking part
in this ceremony is indicative of the
support of the Savings Bonds program at
the very highest levels of the Government.
We. are deeply honored by his presence here.
More than 4o million individuals own
$50 billion in these Bonds. The continued
and expanding investment in America by
Americans through these purchases helps to
spread the ownership of the public debt
and so contributes to our goal of sound
honest money. It also develops the
virtues of thrift and savings--virtues
which have made America great. We thank
the Chief Justice for helping us to
emphasize the importance of this program."

oOo

EARL O. SHREVE
National Director of Treasury's United States Savings
Bonds Division
Mr. Shreve was born near Mapleton, Iowa, on October 31, i^1;
He attended schools in Spokane, Washington, Idaho, and Charter Oa.*,
Iowa. Mr. Shreve received a B.S. in electrical engineering irom
Iowa State College at Ames in 1904.
Learning telegraphy on a home made set, Mr. Shreve began his
career as station agent for the Chicago, Milwaukee & St. Paul R.R.
at Harrisburg, South Dakota. He returned to Iowa to work for an
'electrical contractor at Marshailtown, and after receiving his
"degree in electrical engineering was employed by General Electric.
After two years of training with General Electric at Lynn,
Massachusetts, and Schenectady, New York, Mr. Shreve was assigned
to that company's San Francisco office as a salesman. He received
successive promotions until 1926 when he was made manager of the
General Electric Industrial Department at Schenectady. In 1929 he
was named assistant vice president, and in 1954 vice president in
charge of sales. In 1945 Mr. Shreve was moved to New York City as
vice president in charge of customer relations.
Mr. Shreve served as a director and vice president of the
United States Chamber of Commerce, and in 1947 was elected
president of that organization, servir.g two terms. He was
instrumental in promoting the Chamber's programs in national affairs
and education.
Mr. Shreve also served as national representative and member of
the executive board of the Boy Scouts of America at Schenectady,
member of the boys' work committee of the Rotary Club of New York
City, and three years as president of Junior Achievement, Inc.,
of which he is now honorary president and a member of the executive
committee.
In 1938 at Iowa State College, Mr. Shreve received the first
award of the Marston Medal for Engineering Accomplishment and in
1943 the Merit Award of the Chicago alumni of the college. His
alma mater conferred on him the degree of Doetorsof Engineering in
1949, and that same year Union College of Schenectady made him an
honorary Doctor of Laws.
Mr. Shreve's other public services have included the vice
presidency of the American Management Association; thirteen years
on the board of the National Electrical Manufacturing Association
and a term as its president; vice president of the national Fire
Protection Association, and membership in the U. S. national
commission for UNESCO.

-MM. G -i.

- 2 Mr. Shreve married Miss Annabelle Thompson of Lynn,
Massachusetts in 1908. They have two sons, Robert, and Earl, Jr.,
and one daughter, Mrs. Natalie Crow. Mr. and Mrs. Shreve make
their home in Fort Lauderdale, Florida.
Mr. Shreve was sworn in as National Director of the Treasury's
United States Savings Bonds Division on October 28, 1953, W
Chief Justice Warren of the United States Supreme Coairt.

0O0

r9/n
imimimn. mmm9

/rfT

0?{

Wednesday, October 28. W%%.
Secretary et the treasury ifemptirey announced
ascription books for the current ettmrimg of 2-3/4 percent
Treasury Irate of 196re^^^md

at the close ef business

today.

Subscriptions addressed to a Federal leserve Bank ©r Branefe,
or to the treasury Begartwnt, and placed in the mail before
miinifhi tonight, October t§, will be considered as having been
entered before the close of the subseription books.
Announcement of the amount of subscriptions and the basis
of allotment will probably be sade on Monday, iovestfeer 2.

TREASURY DEPARTMENT
WASHINGTON, D.C.
CLIKJ

IMMEDIATE RELEASE AT 5 P.Mf,
Wednesday, October 28, 1953.

H-295

Secretary of the Treasury Humphrey announced
today the closing of the subscription books for the
current offering of 2-3/4 percent Treasury Bonds
of 1961, at the close of business today.
Subscriptions addressed to a Federal Reserve
Bank or Branch, or to the Treasury Department, and
placed in the mail before midnight tonight,
October 28, 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 will probably be made on
Monday, November 2.

0O0

_-/-

-T'-Jfi

lffRMXKI » S P A F B R S ,
Saturday, October 31, 19$3*

IIXSBJK

the Treasury Department announced last evening that the tenders tar $1,500,000,0<&
or thereabouts, of 91-day Treasiiry Mils to bo dated November $, 19$3, and to mature

February 4, 19^4, liiich were offered on October 27, were opened at the Federal Reserv
Banks on October 30.
Tho details ef this issue are as follows:
total applied for - §*, Q66»10MQ0 .
Total « * M f M I
- 1,500,521,000
Average prlmm

(includes $101,912,000 entered on a
noncompetitive basis smd accepted in
full at the average prise shewn balm)
- 99*670 Equivalent rate of discount approx. l*306ff per

competitive bites

High
Low

- 99 #710 I*pivai#»t rat® ef iisoount approx* l»Xb7£ par
n
- 99*663
* *
a
a
1,33$% •
(79 peroent of the mmmt bid far at the low price was aeeepfcet)

Federal Eeserve
District

Total

Beaton
Sew imtk
Philadelphia
Cleveland

fetal
Accepted

Atlanta
Chicago
it* Louis
Kansas City
Dallas
San Francisco
tOBOi

24,771,000
l,55t,§a6,Q00
41,765,000
46,957,000
10,761,000
25,692,000
203,689,000
17,587,000
7,803,000
37,590,000
28,998,000
67,499,000

|t, 066,198,000

83,773*000
1,057,824,000
26,665,000
46,9*7,000
10,661,000
2^,692,000
3^,7S9,000
17,587,000
7,703,000
37,490,000
26,193,000
60,499,000

|lfSOO>$819000

•

TREASURY DEPARTMENT
WASHINGTON, D.C.

£M.

RELEASE MORNING NEWSPAPERS,
Saturday, October 31*1953.

-*M/

H-296

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated November 5, 1953, and to mature February 4, 1954, which were
offered on October 27, were opened at the Federal Reserve Banks on
October 30.
The details of this issue are as follows:
$2,066,198,000
1,500,521,000 (includes $181,912,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
99.670 Equivalent rate of discount approx.
Range of accepted competitive bids: 1.306$ per annum

Total applied for
Total accepted

High

- 99.710 Equivalent rate of discount approx.
1.147$ per annum
Low
- 99.663 Equivalent rate of discount approx,
1.333$ 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
San FranciscoTOTAL

Total
Applied for
$
24,771,000
1,552,886,000
41,765,000
46,957,000
10,761,000
25,692,000
203,889,000
17,587,000
7,803,000
37,590,000
28,998,000
$2,066,198,000
67,499,000
0O0

Total
Accepted
$
23,771,000
1,057,814,000
26,665,000
46,957,000
10,661,000
25,692,000
158,789,000
17,587,000
7,703,000
37,490,000
26,893,000
$1,500,521,000
60,499,000

- If
mwi mm* kmwtm

mil thim, mm mtmy strong $m arms t&dnv ~~

«NNry MUta*? w* «#«^i4# 4M1«UM» — all in th® Xervont hope
of I O Q I be Img ab le «s» H M mm a treng th t# n#*w £ he atseds

*»*« **» tte lan^f «u «**»*.

- 14 mm m
of nar t istan dei^sT,^iiA«
^wm*flF^aMmmw-m&Wwawm

mataVst tmmffithmmf

Tm*WemmWm£m*&$m

the two proalse a strong

lea thikt mmm
tor thia
of Killtary

i« im&alleti by full awareness that this world
W$H «ff all nations.

ittlttHf* imtiotft.
«f its children.

44 mm w m f ,

It mmmm

mm® 4m %4am3m mmmm

~ tm

greatest #tmoiftfct not only for onrwlvcs but for the whole

fi^i wrld, ia mtMm mkm thmm tm mm.w4 mtmmtm. mt
This an* th is tern throughout the mrlt,
it i& I E M « S to m

o^tai^s —

for their greatest mmpm

It in known to our to**** — far ttoir greatest fear ia
a ieaM o«Mrt.
How has yaax present GaaversiMSiEt applied this JuK/wledg©v
tm the^e wayss;
First:

mmm ylaoo* «ur faith firmly in tto genius of

mm&lm®
mitimtlm and enterprise — and **tove.sfcawed that
faith by removing ^ra^Scestemie Ujfty iicedleas atifUag oo»troi«.>
i: le mmm mt

tm mmmtmm. mt the federal

firmly iomrd tte mmmmti mmmlbl® balaiMsiii^ of the budget —
tottl* ia amr aerioiis
®^anti

la tt&v# vaN&iMWfced our jaoBetary policy &*K2 our

of tuo J M M J * 4afct te mm m giver the
A^riii&B ckjllitrs to sp#iad naif, tm
Wmmrtki

hmm mmmlttmd

mawM&mtmb •m&mm matwrnmakwm^^ew1memamaam \aw3p ^^w^v^aa^wmmmmm^em^^m

mwrnmlmm

to achieving, withie

mmWrmfc'^awmm^ef^ar emfewaawaaame e

wa.p'teiwpw'i

0m\J4vh\*mmpolicies and iraniiiaaa /qw*wifa»ai *w mmrm
Of
SmmSmmmSSSm,

O U T #<!&®$MS$iy llttt O O

lOOO

-KJ J

aot o»l#

t$60 *" " ***' "*** *•«***•>*rfMB.fi

- it Hit this to ml$ the b©£ismiM$U

«*t M M te M M Mtetttet.tte fia«u* of ti» tuani
Mapteljr oteot « defuses to ^ raoaey, and — #»". tte other
iOi oteoagte with mst afeaadoti tmmt
ami hence our Ration -•- without a
teteg fteart.
M t e te M sswt-^r f M » M f f »«®®* « * • *• fjtM^Wf.
, SUK! tel of alt. iHa @ @ i m seas*,. .
Ha ltea te mo mm MteaMteg 4 mvotettaa tm tte tooteipo
of mmm wm4 &wm$mm, ani te tte creation and ftoteotteo of all
te mich mm mm, tteM te o a oortote way to iffrtto
&teaoters te cotmlt aiiotloo** teoto ro»ourcos ami pro4uativ*
wwiiW' teinm^kW

9j^me$%m&mymse)±aim)m-ma' a/map. ^mwrneFeaw-aaf at WE1'*w •yp

^F^fe :TPB'^^fl^jjB*i^iPaoaiip

wfwwao 1 %*-

^aaa^y

, te aaaak M ago* ttero te mmt$ mm m® te t^oM iteaMatt
te^roady for tea hangar of today — while ooottefitef to develop
te6oM?tel JMMMP ttet cmi te swiftly «iteoot#*i to'aoot a
Mte* I MpHit# te a ito#ila w *
It tea its mimlccr te ®BM forolgft policy —
steadfastly seok a course that te ttea, prudent, and late*

e'jfgfc'c-fiwe
1P*BI

tel

^PWWKK*

ww#'»»»Wp

jjrlpjv^if^^ipjkjp

w M t *

JlVWI

«l^jWI^(^k«jS|^^ij^i^J|

W»*w»»**»*wW

-11' Wii'd i''^T SSii©t¥ te wiiialimm ioteitoot i
teo teoote

of ooiMyioii or of teotlos mmu
limh mm* iMpWttftiiift

— tte

•mitea mmd te» 4te*itjr mi

ttfj

ttet
lvoc* M tte
te attaia^lr^ithout oil of tte
M o t e te 'teixy — te teilt
Id
of
O&t&OO Wil

ia a iittte OoUil.

tet w
Wmmm%*

WSmJh^.TSmmwZM,. S«S»SSs.#

•asoit oo«?o tiuua % natter of ateo ate
It begins witfc a realises* to opote ate to
am OOOOifliWry w'** Mnl 1 mW&mmm i\WS^*^mm»m
-am/mm^t

oa* ^tw^^.yjywfr-'WP'jwiNa^ £<

*ia<PMj

" W N O itw^^pofc^iFaif' i M p i W % a

aP0O'*'^aa^p*^p'^,,p^""

^wp^kf^*^ri*^kF^'"r^^

•te-

la tte mmw4 §mmm9teooteooai*aro all our dmwmam ate
all our tear*.
Bangor tm pmmm 1m itaofor to all.
tte prayer for pmmm ia tm prafwr for America, te
groui> of nationo am declare it.
p#^# forteario*#w»»«ta tteao t&iagaj
ffgl* * jgfgag, «f tte oatioa mt^m mmwh te ^prt^a
upon aay aoute^~atigiMaor tte follT of attack.
g£C£ttds te economy mtmsm mmm^ aot only to suataia
such a iofooao tet also to allowtearioaaoto oajojr tte fate**
of ttete aw£s toil and gooitsjs.

- 9Our entire tax system, however, is being revamped so
as to reduce inherited obstacles to growth and Incentive
and correct unfair provisions and inequalities. This
program is the joint undertaking of the Treasury and the
Ways and Means and other congressional committees. There
are many desirable changes which should be made. We hope
to accomplish some of them.(But loss of revenue can only
be limited in amount, and each proposal must be carefully
evaluated. W© cannot afford as much reduction as we all
would like immediately, but our ambition is to establish
a pattern of reduction on which a modest start can
promptly be made with provision foradditional reductions
in taxes as rapidly as reductions in expenditures indicate
that they are possible.

Tax reduction Is desired by all, mad ever a period is
essential to the continued vitality of our entire economy.
^ y America, as the land of opportunity for the young, eager
for work and ambitious to improve their positions in life,
cannot long endure under the repressive tax burdens which
mf^

we inherited. HBut taxes can only be reduced as expenditures are curtailed, and expenses can only be out as consistent with the maintenance of a balanced posture of
defense adequate to our needs to meet the dangers with
which we are threatened.
Excessive planned deficits were implicit in our
inheritance, there was a deficit of over $9 billion in
the year before we came in. There was a planned deficit
budget; for us when we arrived of |9.9 billion for our first
year in office. This soon increased to $11.5 billion through
overestimating income. ("Fortunately, we have been able, by
untiring efforts of every branch of the government, to
i

cut this deficit to a present estimate of less than
$4 billion. Because of this reduction, and only because of
it, we have been justified in reducing some of the most
burdensome taxation. The excess profits tax will expire on
December 31 and will not be renewed. [Personal Income taxes
will be reduced by approximately 10 percent at the same
time. That is definitely determined, but when and to what
extent further tax reduction can be made effective depends
entirely upon the course of future expenditures, in which
of course ou:f security is the ma#or element.

- 80++o*e+»Vvt
field .te a y^tal arr

LaA^^^riaM^mH

framework for tte probles
a tax program to tte next Congress.
teat tola administration ia
have already been able to
m excess profits tax
scheduled 10
late effect oa

a fig«a*t

-7 -

H«
wealth but i s taken from tte toil and .savings of American
citisens w h o are tens deprived of having ttet

AC"

spend for themselves.
tte instances of extravagance t o date are lengthy

'mm a
recently canceled,

tetil

tte cancel;

aa many ^ ^ p W T W ^ l W r r i m ^
wore rolling ©nfcvof tte factories
al
ttiaates
ittl

Fifth ia tte financial m

inheritance of an almost

ix problfs,. .The inherited obligations test

bad™**

I have c i t e ^ c e n teikte only with taxes--or borrowing.
I f w o mm to got €%%% financial operations (ander control
they must te mot with taxes rather than additional
deficit glnancing.

Therefore, oar inheritance in tea

** § <m

A foinNilt fliiaiyitel teterlttlisaF ia tea ©attra^a^^an^^
in gormnnaiit ia gggp plgeag« teaa

« M I M N I '

ggaagtm

aro of e o w t e » U

run ate porfoi* MqteMtenibiy awaa&tel
Kdb*»H
functions, tat ttera are otters teloh tevo aoqutete an air
of axtrvi^pttioa uhlch nuat be curtails*,/tta aro

continually protting to ass if oaofi activity ia raalte vmmmmm^
Pood &# t*ke
^u
, ii
for ta.teariean pmm^M or if it te tmml^mmlt^mi^^tm,ttm
«.nye-*w
booauao onc#|oatat^l§tioa for soma allogod spooial note o r .en,|p€ma#«A
ofeJOct"*Vc
©-fie*
s£^te-4teo« There ia ateo^aatmragant* and waste which
oan .te alternated mrmn in tha case of ite&gpsnagfcte
ftmotioiia«
m a

aisifiistratioa is trying*-and aiMOOtelag

slowly anal iwrfiliftl.lgy :L4»tenio»«»ln asaoawtteg a now
spirit of ioilar ootwtlottsnaM on tte part of all
govaronant forsoitfiti* both aivUlan ate military. Ha beUave
teal that all gammaattt agpnolea «ust zma&mlmr ttet
ovary oant tltsgr ^ o n d oaaws not fr m soma agftmam goal of •

-3M L * * * tteva is tte teterteaaM Q f atet I lite to
oail tte.c,o«D, oriart* /®ite 4a o m of too test teouMMos**-*
ate teste uB4Lteg^M~lagaotestesLsiteaiatetivtteaJ^J^^ti^
Unon the man Adatetettefette aasumad office, it
fttute on aha Govertiia^nt ^ G boote soma 4oO billion of
orders pl&G@d by th& gsteddttsi Administration from one to
tnroo y e a r s W i ^ f o r goods which alia w l i g delivered ^thi^
yssr* noxt ysar* ate

OYOII

tte jroar afterdate aft&ah

saist te ggte for tea* rssstead^ ^ffe^so oadagg sr*Atoo
far caanltted to rsHteea or oatwoi ate mmt

"km not mail

payments in oote for nfeiefe no provision was previously mads*
State te all in addition to the other m^mmmm

of government.

Payment for ttesa large 0.0,0. orders, for taiiioti no jnonssr
mm provided., is a tejor fao.tor in our prosant .gtebite
of .Mtetgg cash. It is an Important factor in tte twin
gtefetea of tte dtet Xtelt./ibls lmz?m C.o.D. Jtesftlteaa*
is also, of courso, a major roanon atijr it ia Impossible
te feaiane® the budget

- te -

ftio result of this prmotios swans ttet mm Oav«raaant
borroisiag goon up in tho fall ate c o w s dotfls in the spring,
whloh utei gstaMfcLosily teres^i
i^r^ cut mJUUsdb Omm* A ^
0

/^rKj^XMi kM^iOJTO *

mim~wmmM«mim^^
*\\mlM fiiste inharlta&oo froa tte past* aa&sti
wtQr to oorraot"tetem-prss«titA

ttet in gpitg of all m L

can do, ^n Ancrgiusisj te the present debt limit
Oils condition tma f as***** W tte trss&gmfc* A s te
Ilia Stats of tho Union Message two weeks after ha had
adstmd offica* noted ttet teforo 'tte and of fiaoal yaar
195^ tho total govsrmant dafet ad^ht wall ascsssd ttedtebt limit.
%

careful handling, ate barring any unexpected
now
diaate for Immm additional mmm mi mmmw* it y*W
that ws wtllAggt throwatfc the grsssnt pariod ate until
tho Oongrass r o t u m a in gsnusvy without ssossdliigw^eeillng* tat < tho aattof* 'gaisfr hswo«Xiai

Us oamtot saws on both fronts slwggrg gt tho mmm ttes*
Ma cannot aovs too rapidly %® disioosts tte sonsitiYO balance
of our seonoaqr ate m »nai sAways te guided by current marke*^"
ooteitlo»s»

But our goal ia slag* ate wo aro oonatsntiy

working toward it.
Sseond* tter* is tho proolost of tm mm

Ua&t*

fti*

is sateter flasnelgl inharttanoo ifclsh is oausiag. SSSMSHNB*
dftsr passage toy a largo majority of mm House, tho lenata
-Vlnanoa OosgdttM M o t August mfwssd to SKnmms tha ggadiils«i»»
tlm's roquaat to raise tte-^£@si*«i§ait statutory dsbt ssUfc**
ife aaid thon^-ate m

any nm>~ttet a Mgter gate lisslt

will anrnblo tho goawmsamt to bottor hateis its flssal
sffalsg. It does not in any

SWIM

wording vigorously for ssowaay*

saHut that mam

not

Ha hawa d^^natratte wa

bmmmmm ttet ws tav* soecspliJted reductions in e n d i n g as
rapidly mm mm can agfwly do so#
tts satiating igw w h i t e s tte pasrwint of tte guile of
coloration tmm

in tte. first telf of tho calotear yaar,

Mten thla law t*mo first onaotod a f«w $& yaara ago it
substantially inoraassd gowraaasnt rsoa|>ta in tha first
telf of that calendar year, m u c h was tha last telf of
tte flseal year, ate sonrod to substantially rsduss a budget
deficit at that time*
fte pimetle* was than inauguratte^ate. tters is no way ts
oorro^t It now**of issuing tax TOtieipation notes in tte fall
wten tea oollsetlons wmm l^w, Aminai anticipated roosipts
OU.A-

In the spring wten tag oollsotlons mmmm hlgjh*

- 3to real freedom in America is true, lasting and durable peace
throughout the world. For only in peace--in real peace, can
this nation aad tte otter paoplae of tte world go on to the
batter things which tte economies of nations at peace can
produce,

Our financial inheritance, which complicates all our
efforts, includes it la sit a I T areas which I would lite to
discuss tonight.
First, there is the problem of our huge public debt.
When tte betes are issued that have just teen sold, it
will almost reach M i $2?$ billlom^aaate* fte manner in
which it has beam handled—maturing Issues refinanced and
now Issues placed—in tte past twenty years presents a
financial inheritance to stagger tte stoutest of hearts*
Nearly three-quarters of this debt matures within
lass than five years or Is redeemable at tte holder1 s
option. Xattettlgs loo large a proportion is in tte hands of
banks. We are trying to work our way out of this inherited
problem by doing two things which will mate this public
debt lass dangerous to tte value of money and to tte
nation's economy,

(1) We are trying to extend tte

maturity of the debt by placing longer torn issues.
/{%.) W# are trying to wmm more of tho dabt awsr trm
tte banks ate into tte hates of private Investors.

- 2 ~
this quest for peace is complicated by the inheritance,
which this administration fall hair to ten short months age,
not only of conditions among nations but of conditions
affecting tte daily lives of eaoh of us tera at home.
this im&ltxxm

Inheritance Involves matters of

foreign relations ate tte military, as wall as financial
and economic conditions tera In our own country, ftey
are all entwined.

I will speak briefly tonight

principally of our financial ate economic Xttftmial6ft*IX
iatentaaoa md prcgrams but* as you will see, ttey are
deeply woven into both foreign policy ate drntmrnmrn*
It is sometimes hard to realize how closely tte
world today is telt togetherj tew foreign policy affects
military plans ate hew together ttey aotnally determine
tte course of our economy right hare at home. What we
do about what may happen in mmm foreign late may wall
determine tte numter and type of Johs which people,in
A*
FhUadelphla will have t©morrow. What happens m

tte

valley of the Ilia or in Pakistan or on tte plains of
furtey may ters a real tearing, upon tte wolf are of our
farmers la Kansas ate Iowa,.
Our foreign policy and our military polity can vary
largely fia the shape and size of our financial c
and economic policies, tte one ate only ecaplste answer

Remarks by Secretary Humphrey at Union League Club Manor,
Union League Club, Philadelphia, Pennsylvania, at 7*00 p.m.
Friday, October 30# 1953

^j- A, gmm i0oi©iif wm rt*ei
W

tAmZUCry C7^^JL^mC0t^^

jfj? W# mm

^TU^VW^

fOA^Cmmm .

living in a tima.aot of paasaAtet of parll.

In tte world today tte physical security that this
nation once enjoyed by reason of geography and our two
teoad oceans has now teen jeopardised by tte long-range
bomber and tte awful destructive power of atomic weapons.
Continuing discoveries in tte field of science can
of course te used sitter for good or evil. But because
those discoveries are also known to otters in this world,
bJ&o **-~4^ iZ*LA>*. cAjUmpAj^JZ 0~&^JLZV<MU
Aw@

cannot te swiNrttai ttey will te, aaad only for good--

always.
Wa must realize that in this time la which wa now
are living there does exist tte possibility of sudden end
mass destruction, the swift wiping out of whole cities
ate populations.
ftese terrible forces must somehow te brought to
the service ate tte good of tte world's people ratter
than their destruction, this can be done only as a
result of a just ate durable peace throughout tte world.
Our search for this lasting peace cannot succeed on
hope alone. We cannot ignore tte factual conditions that
exist in tte world as they may affect oar mm nation.

304
TREASURY DEPARTMENT
Washington
FOR RELEASE AT 7:00 P.M.
Address by Secretary Humphrey at the Union
League Club Dinner, Union League Club,
Philadelphia, Pennsylvania, at 7:00 p.m.,
Friday, October 30, 1953
A SOUND ECONOMY FOR PEACE
Every American wants peace.
We are living in a time—not of peace—but of peril.
In the world today the physical security that this nation once
enjoyed by reason of geography and our two broad oceans has now
been jeopardized by the long-range bomber and the awful destructive
power of atomic weapons.
Continuing discoveries in the field of science can of course
be used either for good or evil. But because these discoveries
are also known to others in this world who may have different
objectives, we cannot be sure that they will be used only for good
always.
We must realize that in this time in which we now are living
there does exist the possibility of sudden and mass destruction,
the swift wiping out of whole cities and populations.
These terrible forces must somehow be broaight to the service
and the good of the world's people rather than their destruction.
This can be done only as a result of a just and durable peace
throughout the world.
Our search for this lasting peace cannot succeed on hope alone.
We cannot ignore the factual conditions that exist in the world as
they may affect our own nation.
This quest for peace is complicated by the inheritance, which
this administration fell heir to ten short months ago, not only of
conditions among nations but of conditions affecting the daily lives
of each of us here at home.
H-297

•*•

•

* - ,

K*r Kj \^f

- 2 This inheritance involves matters of foreign relations and the
military, as well as financial and economic conditions here in our
own country. They are all entwined. I will speak briefly tonight
principally of our financial and economic inheritance and programs
but, as you will see, they are deeply woven into both foreign
policy and defense.
It is sometimes hard to realize how closely the world today
is knit together; how foreign policy affects military plans and
how together they actually determine the course of our economy
right here at home. What we do about what may happen in some
foreign land may well determine the number and type of jobs which
people right here in Philadelphia will have tomorrow. What happens
in the valley of the Nile or in Pakistan or on the plains of
Turkey may have a real bearing upon the welfare of our farmers in
Kansas and Iowa.
Our foreign policy and our military policy can very largely
fix the shape and size of our financial commitments and economic
policies. The one and only complete answer to real freedom in
America is true, lasting and durable peace throughout the world.
For only in peace—in real peace—can this nation and the other
peoples of the world go on to the better things which the economies
of nations at peace can produce.
Our financial inheritance, which complicates all our efforts,
includes several areas which I would like to discuss tonight.
First, there is the problem of our huge public debt. When the
bonds are issued that have just been sold, it will almost reach
$275 billion. The manner in which it has been handled—maturing
issues refinanced and new issues placed—in the past twenty years
presents a financial inheritance to stagger the stoutest of hearts.
Nearly three-quarters of this debt matures within less than
five years or is redeemable at the holder's option. Too large
a proportion is in the hands of banks. We are trying to work our
way out of this inherited problem by doing two things which will
make this public debt less dangerous to the value of money and to
the nation's economy. (l) We are trying to extend the maturity of
the debt by placing longer term issues. (2) We are trying to move
more of the debt away from the banks and into the hands of private
investors.
We cannot move on both fronts always at the same time. We
cannot move too rapidly to dislocate the sensitive balance of our
economy and we must always be guided by current market conditions.
But our goal is clear and we are constantly working toward it.

- 3-

208

Second, there is the problem of the debt limit. This is
another financial inheritance which is causing concern. After
passage by a large majority of the House, the Senate Finance
Committee last August refused to approve the administration's
request to raise the statutory debt ceiling.
We said then--and we say now—that a higher debt limit will
enable the government to better handle its fiscal affairs. It
does not in any sense mean that we are not working vigorously for
economy. We have demonstrated that we have accomplished reductions
in spending as rapidly as we can safely do so.
The existing law requires the payment of the bulk of
corporation taxes in the first half of the calendar year. When
this law was first enacted a few years ago it substantially
increased government receipts in the first half of that calendar
year, which was the last half of the fiscal year, and served to
substantially reduce a budget deficit at that time.
The practice was then inaugurated--and there is no way to
correct it now—of issuing tax anticipation notes in the fall when
tax collections are low, against anticipated receipts in the spring
when tax collections are high.
The result of this practice means that now Government borrowing
goes up in the fall and comes down in the spring, which automatically forces temporarily increased borrowing for at least
a six-month period.
This fixed inheritance from the past, which there is no way to
correct under present conditions means that in spite of all we can
do, the present debt limit is too restrictive.
This condition was foreseen by the President, who in his State
of the Union Message two weeks after he had assumed office, noted
that before the end of fiscal year 195^ the total government debt
might well exceed the debt limit.
By careful handling, and barring any unexpected demand for
large additional sums of money, it now appears that we will barely
get through the present period and until the Congress returns in
January without exceeding the ceiling.

V-* Km*

- 4 Third, there is the inheritance of what I like to call the
C.O.D. orders. This is one of the most troublesome--and least
understood—legacies this Administration inherited. When the
new administration assumed office, it found on the government's
books some $30 billion of orders placed by the former administration
from one to three years previously for goods which will be delivered
during this year, next year, and even the year after—and which
must be paid for when received. These orders are in general too
far committed to reduce or cancel and must be met with payments in
cash for which no provision was previously made. This is all in
addition to the other expenses of government. Payment for these
large C.O.D. orders, for which no money was provided, is a major
factor in our present problem of raising cash. It is an important
factor in the twin problem of the debt limit. This large C.O.D.
inheritance is also, of course, a major reason why it is impossible
to balance the budget quickly.
A fourth financial inheritance is the habit of extravagance
in government in many places. Some government agencies are of
course well run and perform unquestionably essential functions,
but there are others which have acquired habits of extravagance
which must be curtailed. We are continually probing to see if
each activity is really necessary for the good of the American
people or if it is merely a self-perpetuating expenditure because
once established for some alleged special need or experimental
objective. There is also often extravagance and waste which
can and should be eliminated even in the case of indispensable
functions.
This administration is trying—and succeeding slowly —in
generating a new spirit of dollar consciousness on the part of all
government personnel, both civilian and military. We believe that
all government agencies must remember that every cent they spend
comes not from some unknown pool of wealth but is taken from the
toil and the savings of American citizens who are thus deprived
of having that money which they earned to spend for themselves.
Fifth is the financial inheritance of an almost staggering tax
problem. The inherited obligations that I have cited and current
operations of the government can be paid for only with taxes—or
borrowing. If we are to get our financial operations amder control,
they must be met with taxes rather than additional deficit financing
to the greatest possible extent. Therefore, our inheritance in the
field of taxation is a vital area requiring most careful future
planning.

K.KJD

- 5Tax reduction is desired by all, and over a period is essential
to the continued vitality of our entire economy. America, as the
land of opportunity for the young, eager for work and ambitious to
improve their positions in life, cannot long endure under the
repressive tax burdens which we inherited. But taxes can only be
reduced as expenditures are curtailed, and expenses can only be
cut as consistent with the maintenance of a balanced posture of
defense adequate to our needs to meet the dangers with which we
are threatened.
Excessive planned deficits were implicit in our inheritance.
There was a deficit of over $9 billion in the year we came
in. There was a planned deficit baidgeted for us when we arrived
of $9.9 billion for our first year in office. This soon increased
to $11.5 billion through overestimating income. Fortunately, we
have been able, by untiring efforts of every branch of the
government, to cut this deficit to a present estimate of less than
$4 billion. Becaaise of this reduction, and only because of it,
we have been justified in reducing some of the most burdensome
taxation. The excess profits tax will expire on December 31 and
will not be renewed. Personal Income taxes will be reduced by
approximately 10 percent at the same time. That is definitely
determined, but when and to what extent further tax reduction can
be made effective depends entirely, upon the course of future
expenditures, in which of coairse our security is the major element.
Our entire tax system, however, is being revamped so as to
reduce inherited obstacles to growth and incentive and correct
unfair provisions and inequalities. This program is the joint
undertaking of the Treasury and the Ways and Means and other
congressional committees. There are many desirable changes which
should be made. We hope to accomplish some of them. But loss of
revenue can only be limited in amount, and each proposal must be
carefully evaluated. We cannot afford as much reduction as we all
would like immediately, but our ambition is to establish a pattern
of reduction on which a modest start can promptly be made with
provision for future additional reductions in taxes as rapidly
as reductions in expenditures indicate that they are possible.
These then are some of the specific areas in which we have
inherited financial problems. They are deeply entwined with
both foreign relations and military decisions. Real solution
of each is interwoven with the solution of each of the
others. That is why the achievement of real peace is the
supreme purpose of this administration.

- o In the word peace, are all our dreams and all our fears.
Danger to peace is danger to all.
The prayer for peace is the prayer for America. ^No government
can proclaim it, no Congress can enact it, no group of nations can
declare it.
Peace for America demands these things:
First: A defense of the nation strong enough to impress
upon any would-be-aggressor the folly of attack.
Second: An economy strong enough not only to sustain such
a defense but also to allow .^aericans to enjoy the fruits oa their
own toil and genius.
Let us examine each in a little detail.
First: military defense.
This means much mere than a matter of size and numbers.
Certainly it begins with, a readiness to spend and to sacrifice
whatever is necessary--and I repeat whatever is necessary--for
a logical, ordered and balanced defense program.
But this is only the beginning.
V/hat must be sought is this: the finding of the ideal middle
way between extremes -which--on the one side--would stupidly cheat
our defenses to save money, and—on the other side—would amass
weapons and strength with an abandon that would wreck our economy-and hence our nation—without a gun ever being fired.
This is not merely economic sense. This is military sense,
and best of all it's common sense.
Me live in an age 'witnessing a revolution in the technique
of arms ana armies, and in the creation and production of all
weapons for defense.
In such an age, there is one certain way to invite disaster:
to commit a nation's whole resources and productive machine today
to the abundant production of weapons that may be obsolete tomorrow.

91 H
KJ

j*. \J

- 7In such an age, there is only one way to avoid disaster:
to be ready for the danger of today--while continuing to develop
industrial power that can be swiftly directed to meet a newer
and different danger tomorrow.
This, I repeat, is a middle way.
It has its analogy in our foreign policy—where we steadfastly
seek a course that is firm, prudent, and bold, without ever being
belligerent.
So we seek a defense program that is effective, without being
extravagant--carefully planned, and economically executed.
Such a defense does more than take account of the needs of
our economy. It depends upon our whole economy--for the greatest
strength, not only for ourselves but for the whole free world, is
nothing other than the power and potential of American mass
production.
This truth is known throughout the world.
It is known to our enemies--for their greatest hope lies in an
American depression.
It is known to our friends—for their greatest fear is such
a dread event.
How has your present government applied this knowledge?
In these ways:
First: We have placed our faith firmly in the genius of
American initiative and enterprise--and we have showed that faith
by removing from our economic life, needless stifling controls.
Second: We have set the coairse of the federal government
firmly toward the soonest possible balancing of the budgetas an indispensable battle in any serious war against inflation.
Third: We have redirected the monetary policy and the
management of the public debt so as to give the American people
their first hope in a decade of having sound, honest American
dollars to spend and to save.

Fourth: We have committed ourselves to achieving, within
limits dictated by essential defense needs, those reductions
in taxes which are indispensable to the vigor of our economic
life.
Our policy Is fixed and determined. It is flexible only in
its execution. Our objective is definite, but our progress
toward it realistically recognizes and adjusts to the changing
conditions in which we must operate always toward the attainment
of the same goal. We have made no change in either policy or
objective, notwithstanding reports to the contrary.
Such policies and objectives—serve not only the needs of our
economy but no less the needs of America's defense,
A strong economy and a strong defense do not compete with
one another—except in the fairyland of partisan demagogues.
Together—and only together—the two promise a strong America,
an America that can know true peace.
The search for this peace, however, goes far beyond immediate
demands of military defense and a prosperous economy.
This search is impelled by full awareness that this world
ultimately must find a way to ease the burden of arms and of
fears that now weigh upon men of all nations.
And so, knowing all this, we stay strong in arms today--we
keep our economy geared to meet any emergency—we weigh every
military and economic decision—all in the fervent hope of soon
being able to use our strength to serve the needs rather than
the fears of all mankind.

0O0

312

9> i
i(s<* '-

esIl ( A»'N«W' l '*'*~"' v " ,

'yLX*-/

Secretary vhuriphrey today announced the appointment ht
Daniel A. T ylor- of Chicago, as Chief Gounsel ofathe Internal
Revenue Service. Ha will take office on November 9, 1953.
•^j-*-*Ky~'*

Tna:

Chief Counsel of the Internal Revenue P.-Ticeif is

an Assistant Chyieral Counsel of the Treasury Department.
I!r. Taylor has been in active law practice in Chicago
since 191*% and is recognized as an outstanding member of the t^jrrt\i\
7-X fix of that city. bU^ o» *~Jn~fl*£~ flu^u^- &*~ sW-fc^M^
The new Chief Counsel is a "ajraduate" of the legal ^orv.ios y^,
Internal Revenue, having been appointee"
as an attorney in 192&0 He served as Special Attorney and latey
as. Assistant Head of the Civil Division in the Chief Counsralfs
Of'"'loe,j)<^Jiiater he transferred to Chicago where, from 193^ to
l?hZ, he was As blatant Appellate Comv 1.

Q4AJ**f & ^ i

-''"•• ^avlor was born In Y/u.J"'./' v ' vea~s ago and received 'his
law degree; from l^e. Uaahington and Lee TTniversity in Lexington.
iiTlgllf'1'"!1!."

tww

o»-fwiiiiry.n

^^#4^
f— *
jj^KjLr

A/V\

JaVy £*»%.

*"^* y"

TREASURY DEPARTMENT
WASHINGTON, D.C
Of Q
*-* ±. ••*•

IMMEDIATE RELEASE,
Friday, October 30, 1953.

H-298

Secretary Humphrey today announced the appointment
of Daniel A. Taylor of Chicago, as Chief Counsel of the
Internal Revenue Service. He will take office on
November 9, 1953.
The Chief Counsel of the Internal Revenue Service
is an Assistant General Counsel of the Treasury Department.
Mr. Taylor has been in active law practice in Chicago
since 1942 and is recognized as an outstanding member of
the tax bar of that city. He is a member of the American
Bar Association, and the Chicago, the Illinois and
Kentucky State Bar Associations.
The new Chief Counsel is a "graduate" of the legal
service of the Internal Revenue Service, having been
appointed as an attorney in 1928. He served as Special
Attorney and later as Assistant Head of the Civil Division
in the Chief Counsel's Office. He subsequently transferred
to Chicago where, from 1938 to 1942,he was Assistant
Appellate Counsel.
Mr. Taylor was born in Casey County, Kentucky 57 years
ago and received his law degree in 1921 from Washington and
Lee University in Lexington.
He was married in 1928 to Margaret Gallegher of
Covington, Kentucky. They have two children,
Daniel A. Taylor, Jr., now serving in the Air Force ar'1
a daughter Jane Carol Taylor, a junior at the college of
William and Mary, Williamsburg, Virginia.
Mr. Taylor was a member of the American Expeditionary
Forces in World War I.
u-Lu-uuaxy

oOo

H-*-rt

BMBOXATB HELEASE,
Monday, ioveaber
Z^J^-

the Treasury today announced tiis basis of allotment on subscriptions fer ins current ©ash offering cf 2-3/4 percent Treasury Beads of
1961.
Subscriptions In amounts up to and including 110,000, totaling
about $22-1/2 million, w e n allotted in full. Subscriptions from mutual
savings banks, insurance companies, pension and retirement funds -and
Stats and loesl governments, aggregating about $1.8 billion, war®
allotted 2k percent, and subscriptions from all others, including
%4-X/k billion fro® eewserelal banks, were allotted tik percent, but
not less than #10,000 on any ©ne subscription.
Preliminary reports received tram, the Federal. Eeserve Banks ahm
that subscriptions totaled over $12-1/2 billion^
totalis bj Federal Eeserve Districts as to subscriptions and
allotments will be announced when final r®p@rte/ere received from
the Federal Eeserve Banks.
/

Jin «%(r*i> *2u ,v

ItM^.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, November 2, 1953.

H-299

The Treasury today announced the basis of allotment on subscriptions for the current cash offering
of 2-3/4 percent Treasury Bonds of 1961.
Subscriptions in amounts up to and including
$10,000, totaling about $22-1/2 million, were
allotted in full. Subscriptions from mutual savings
banks, insurance companies, pension and retirement
funds and State and local governments, aggregating
about $1.8 billion, were allotted 2k percent, and
subscriptions from all others, including $8-1/4
billion from commercial banks, were allotted
16 percent, but not less than $10,000 on any one
subscription.
preliminary reports received from the Federal
Reserve Banks show that subscriptions totaled over
$12-1/2 billion, and total allotments will be about
$2.2 billion.
Details by Federal Reserve Districts as to
subscriptions and allotments will be announced
when final reports are received from the Federal
Reserve Banks.

oOo

TREASURY DEPARTMENT
COMPTROLLER OF THE CURRENCY
ADDRESS REPLY TO
'COMPTROLLER OF THE CURRENCY"

WASHINGTON 25

IMMEDIATE RELEASE yj
^—Monday, November )g, 1953
Comptroller of the Currency Ray M. Gidney today
announced the promotion of William B. Baker from the position
of National Bank Examiner to that of District Chief National
Bank Examiner of the Third Federal Reserve District with
headquarters at Philadelphia. •!» the new uapa^ity he will
succeed J. Lawrence Bailey who died on October 29- ~
Mr. Baker, a native of Maryland, was commissioned
a National Bank Examiner in 19l8»s4®ee«^^*@^^®©*-fee-^e
cxeditate3^#a^aed~e^f^^^
<
service as an examiner having been within the Philadelphia
district. For a considerable time he has been the senior
examiner in that district, £n charge of examinations of the
larger banks therein.
\

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, November 3* 1953.

H-300

Comptroller of the Currency Ray M. Gidney
today announced the promotion of William B,
Baker from the position of National Bank Examiner
to that of District Chief National Bank Examiner
of the Third Federal Reserve District with
headquarters at Philadelphia. He will succeed
J. Lawrence Bailey who died on October 29.
Mr. Baker, a native of Maryland, was
commissioned a National Bank Examiner in 1913,
and his entire service as an examiner has been
within the Philadelphia district. For a considerable time he has been the senior examiner
in that district, in charge of examinations of
the larger banks.

oOo

- 3-

but shall be exenpt from all taxation now or hereafter imposed on the principa

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 dis-

count at which Treasury bills are originally sold by the United States shall b
considered to be interest. Under Sections 1x2 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ of the Revenue Act of 19l|l, the amoun

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 thy amount actually received either upon sal- or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe tho 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 -

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

Those submitting tenders vdll be advised of the acceptance or rejection thereo

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 November 12, 1953 3 ^n cash or
—
TRY
' "
other immediately available funds or in a like face amount of Treasury bills
maturing November 12, 1953 • Cash and exchange tenders will receive equal
treatment. Cash adjustments vdll 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,

3XXX3QLXXI

TREASURY DEPARTMENT
Washington

/-3-/

FOR RELEASE, HOMING NEWSPAPERS,

^ November 5^. liJ^L-™™'
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 November 12
v lji500.702.00©

19$3 3 in "the amount of

3 "k° b e issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated November 12a 1953 3 and'mil mature February 11. 195k 3 artien the face

amount will be payable without interest. They will be issued in bearer form onl
and in denominations of §1,000, $$,000, ^j>10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday

November 9. 1953

Tenders will not be received at the Treasury Department, Washington. Each tende
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 vdll
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 vdll be received without deposit from
Incorporated banks and trust coirroanics and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, DC
RELEASE MORNING NEWSPAPERS,
Thursday, November 5, 1953.

oo^

H-301

c21

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 November 12,. 1953,
in the amount of" $1/500,702,000, to be issued on a discount basis ...
under competitive and npn-competitive bidding, as hereinafter
provided. The bills of this series .wi 1.1 be dated. November 12,.1953,
and will mature" February 11, 195^, when the face amount will be
payable without interest. They will be Issued in. bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value)
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, <two o'clock p.m., Eastern .Standard time,
Monday, November 9, 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'
irom others must be accompanied by payment, of 2 percent of the face
amount of Treasury bills applied for, unless the .tenders, are '•
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
^Hov,fiTldiately^af1ter' the cl0SinS hou^ tenders will be opened at the
mpnt f n i f T r v ^ B a { J k s ^ n d Branches, following which public announce^ n l n f , m a d f u L t h e 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
?nPwSn? y r e ? e r v e s * h e r l ^ h t t 0 a^ept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be
linn A n n b u b J e c t to these reservations, non-competitive tenders for
if
x 2 ? r leSS w i t h o u t 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

- 2accordance with the bids must be made or completed at the Federal
Reserve Bank on November 12, 1953., In cash or other immediately
available funds or in a like face amount of Treasury bills
maturing November 12, 1953. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for •
differences between the par value of maturing bills acoepte/d 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 amendatbryvor
supplementary thereto. The bills shall be subject to estate,
inheritance, gift or other.excise taxes, whether Federal or State,
but' shall be exempt fromyall 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 4^ and 117 (a) (l) Of the Internal
Revenue Code,.as amended by Section 115 Of the- Revenue Act of-I9kl,
the amount of discount at which bills is saved hereunder are sold;
shall 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; Issaied hereunder needinclude'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 dairing the' taxable year for whichthe 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 §ank or Branch.
oOo

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CtL.

TREASURY DEPARTMENT
Washington
FOR RELEASE AT 7 P.M.,
Friday, November 6, 1953.

Remarks by Treasury Secretary George M. Humphrey
at a dinner sponsored by the Republican State
Central Committee of Georgia, Biltmore Hotel,
Atlanta, Georgia, 7 p.m.,' Friday, November 6,1953.
INHERITANCE AND ACHIEVEMENT
There are two great goals on which this administration is
determined.
First, this nation must--and wlll--provide the military posture
best designed to promote peace in the world.
Second, this nation must--and will--maintain the sound economy
and productive power which is the basis for that military strength
and leadership for peace.
This administration is soberly and sincerely committed to,
and working toward, both of these goals.
We no longer have the physical security, protected by two
broad oceans, that this nation once enjoyed. There now exists the
possibility of swift and terrible destruction of great cities and
their people. The forces which could bring about this swift
destruction must somehow, some day, be brought to the service and
good of mankind rather than to its destruction.
So the goal of peace--real, lasting peace—must always be
continuously sought for the good of all.
In the meantime
and as a means to that end we must be militarily strong. Equally
and at the same time the maintenance of a healthy, productive
economy, without which a strong defense is impossible, must also
command its full measure of consideration in all that we plan and
do.
H-302

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- 2In his State of the Union Message two weeks after assuming
office, President Eisenhower described six areas in which this
administration would strive to develop a fiscal and economic
policy to reinforce military strength and at the same time make
more secure the nation's economic health and resources.
These objectives were:
First, to reduce the planned deficits of the previous
administration and then at the earliest possible time balance
the budget by reducing federal expenditures to the very minimum
within the limits of safety;
Second, to meet the huge costs of our defense;
Third, to properly manage the burden of our inheritance of
debt and obligations;
Fourth, to check the menace of inflation;
Fifth, to work toward the earliest possible reduction of
the tax burden, remove Inequalities, cover omissions and
reconstruct the tax laws to lessen their restrictive effect upon
the vigorous growth of our economy;
Sixth, to remove the strait jacket of wage, price, and other
controls and directives which then held the country hidebound and
make constructive plans to encourage the initiative of free
citizens.
An honest look at the ten-month record of this
administration shows some very substantial progress toward the
achievement of these objectives.
I should like to consider them tonight and try to put in
perspective exactly what progress has been made.
Before this, however, let us look at some of the heavy burden of
inheritance to which this administration fell heir in the fiscal
and economic field.
This inheritance included (l) the huge public debt, (2) the
restrictive debt limit, (3) $ba billion in C.O.D. orders,
(k) extravagance in government, (5) the staggering tax burden,
(6) a rigidly controlled economy, and (7) on top of it all,
a war of stalemate daily taking the lives of American boys in Korea.

in A

- 3A brief look at each of these inheritances villi develop
the difficult conditions confronting us when our start was made
to reach the objectives set forth in the State of the Union
Message.
The public debt. The public debt is now practically at the
limit of $275 billion. In addition to inheriting a debt of
enormous size, we also inherited a debt that had been badly managed.
Nearly three-quarters of the debt we Inherited in January
matures within less than five years or is redeemable at the holder's
option.
Too large a proportion of this debt is in the hands of banks
rather than distributed to long-term investors.
Both of these conditions affect the supply of credit. They
are inflationary. They have contributed to cheapening the value
of the dollar.
Pegging the price of government securities and the manner of
refinancing and placing of new issues by the past administration
have been important contributing causes to the inflation which
resulted in the heartless theft of hard-earned savings from millions
of Americans as the dollar declined from 100 cents to 52 cents in
purchasing power in the short span of only the last 14 years.
And ironically enough, this same policy which produced
inflation and devalued the dollar resulted in our paying so much
more for what we bought that we now have much more total debt to
carry and eventually pay than would otherwise have been the case.
The debt limit. This is a financial inheritance which gives
us great concern. The present law requires the payment of the
great bulk of corporation taxes in the first half of the calendar
year. When first enacted a feu years ago, this lav; substantially
Increased government receipts in the first half of that particular
calendar year. This was the last half of the then current fiscal
year, and so this disproportionately larger collection of taxes
was used to substantially reduce a budget deficit in that year.
The practice then began of issuing tax anticipation bills in
the fall when tax collections were low against expected receipts
the following spring when corporate tax collections were high.
This means that government borrowing temporarily goes up in the fall
and comes down in the spring, and so automatically forces increased
borrowing over at least a six-month period. This fixed inheritance
has made the present debt limit too restrictive.

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- k"
When we asked the Congress last summer to. raise the
debt limit, we pointed out that the change would enable the
government to handle its fiscal affairs in more orderly, businesslike fashion, doing what we should do at the time- when we should
do it, without technical limitations on planning and carrying out
the best possible fiscal policies. This still holds true, and
we are being hurt by this limitation in the meantime.
The danger of this specific inheritance was foreseen by the
President, who, only two weeks after taking office last January,
in the same State of the Union Message, stated that before the
end of the fiscal year 1954 the total government debt might well
exceed the existing debt limit.
The C.O.D. orders. When this administration came- into office,
it found about ~$bT" billion of orders placed by the former
administration from one to three years previously for goods to be
delivered this year, next year, and even the year after—all to be
paid for when delivered, without providing money for the payment.
This 8l-billion-dollar legacy without provision for its
payment now creates a most burdensome factor in raising cash to
pay the government's bills. These C.O.D. orders must, of course,
be paid for in addition to all the current expenses of the
government. They increase the problem of the debt limit as well
as the difficulty of balancing the budget quickly.
Extravagance in government. A habit of extravagance in some
government agencies is part of the burden of our financial
inheritance.
Some government agencies perform vital functions and are
well run.
Others have acquired habits of extravagance over the past
twenty years of free and easy spending.
This administration is determined to cut out careless spending.
First, we must continually review every activity of government to
see if it is actually necessary. Second, we must continue to
review necessary activities of government to see that extravagance
and waste are eliminated in the running of indispensable agencies,
both civilian and military. Third, we are trying to develop more
dollar-consciousness on the part of all government employees,
both in and out of uniform.
' All our efforts in caitting out extravagance are based on the
simple knowledge that every dollar the government spends comes
not from some mysterious pool of wealth but from the toil and
savings of American citizens who deserve and expect a full dollar's
worth for every dollar taken from them to support their government.

ipQ
- 5 The tax burden. Our inheritance in the field of taxation
is a staggering one.
It is staggering because of its size, due to inherited
obligations and the deficit financing of recent years.
It is staggering because of inequalities and deliberately
restrictive provisions, which, in addition to the very size of
the tax program, inhibit growth and incentive and deter initiative
and development of a vigorous free economy.
In 17 of the 20 fiscal years from 1933 to 1952, the government
operated with a deficit. Conversely, in only three of those
twenty years did the government live within its income.
So, excessive planned deficits were a part of our inheritance—
and tax burden. The fiscal year 1953, in which we entered office,
ended with a deficit of more than $9 billion. There was a planned
deficit budgeted by the previous administration for us of nearly
$10 billion for fiscal 1954, which, it soon became evident, would
be more than $11 billion because the Income had been overestimated.
Total appropriations authorized from fiscal year 1950 through
fiscal year 1953, plus those requested in the 1954 Truman budget,.
provided for spending which would exceed the income in those five
years by nearly $100 billion. At the same time, tax expirations
were being written into law to lower government income. By 1955*
when they planned for government spending to reach its peak,
planned tax reductions would have begun to reduce government
income by almost $8 billion annually. The deficits that would have
been incurred under this program would have been so large that we
might well never have recovered from the burdens thais piled on
us.
Controls. The country was throttled with controls—controls
over prices and wages, with all manner of directives and directions
issued by bureaus and boards from Washington, affecting, restricting
and directing the daily lives and activities of every citizen and
family in the land.
War in Korea. In addition to and overshadowing all else was
the grim conflict in Korea, taking the lives of American boys in
a stalemate that had been dragging endlessly, hopelessly, but not
bloodlessly, on and on for nearly three long horrible years for
almost every home in this land. The financial burden of Korea
alone piling deficit on deficit, debt on debt, and tax on tax,
built up commitments to continue for years in advance.

O H 7

- 6These, then, were some of the inheritances which we found on
the government's doorstep when we moved in last January, These
were the burdens and the hard financial facts which we fell heir
to and to which the President addressed himself in the State of
the Union Message when he took office.
Briefly now, what has this administration done in the ten
short months it has been at it and what has its record of progress
been?
(!) Deficits and the balanced budget. The first step toward
balancing the budget was a tremendous effort to get previously
planned spending under control.
Little could be done about expenditures during fiscal 1953*
which was all programmed and more than half gone.
But a thorough review of all future military and civilian
programs was immediately undertaken.
No program is too large to be challenged. No operation is
too small to be thoroughly examined.
These reviews have not yet been finished.* Conditions were worse
than we -expected, so, that they" have not" 'developed as rapidly as we
had originally hoped. But progress has been made.
By August of this year this administration had cut planned
expenditures for the fiscal year 1954 by more than $6 billion under
the January estimate of the previous administration. This plus
$800 million of Income gained from the six-month extension of
the excess profits tax has resulted in cutting a prospective
deficit from more than $11 billion to less than $4 billion,
according to present estimates.
It is true that this does not provide an administrative
budget in balance for 1954--but it is still a real saving of
billions of dollars and not far from a cash budget balance. And
more important the taxpayers of America will have these billions
of dollars in their own pockets to spend for themselves instead
of having the government spending it for them.
Significant, too, is the reduction by $10 billion of new
authorizations for spending in this fiscal year--that is a reduction
in authority to place orders, which will result in reduced spending
by that amount in future years.

a?^Q
V-* X.. w

- 7This is an important turning point in government finance.
For the first time in recent years estimates now provide for less
spending in the current year than in the year just passed.
Much remains to be done but progress has been made and more
will be made as each day and each week goes by.
More than 70 percent of our spending is for military defense
or in foreign or atomic programs. Under such circumstances the
reason for not moving faster is obvious. We are eager to make
sure that savings are only made with extreme care, knowing fully
the great peril in which we live in this atomic age.
(2) Meeting the costs of defense. This administration is
determined to develop, a proper posture of balanced defense,
which will provide not only for our security today bait for
tomorrow and thereafter for as long as may be required until we
find the way to real and lasting peace. We can and must spend
whatever we have to spend to defend ourselves.
We also know however that the real defense of America will
not result simply from the spending of huge amounts of money.
We know that any program for defense must be measured not
by its cost but by its wisdom.
The continuing almost unbelievable developments in science
and production techniques of the present age prohibit' a static
defense, committed to old-fashioned strategy, served by obsolete
weapons.
We are continually, currently reviewing our defense programs
to make sure that they are efficiently planned mobile and flexible
to face the threats of the future as well as the present.
(3) Management of the Debt. This administration plans to do
two things wnich will make this huge debt less inflationary and
less dangerous to the value of money and to the nation's economy.
First, at every appropriate time we will extend the maturity of"
the debt by placing longer-term issues. Second, as rapidly as
possiole we will move more of the debt away from the banks and
into the hands of long-term investors.
We cannot always move on both fronts at the same time. We
muF-t be careful not to dislocate thesensitive balance of our
econor.iy and we must always be guided by current market conditions.
out our goal is clear and we are working toward it.

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- 8 In February, owners of $9 billion maturing certificates were
given the chance to exchange their holdings for a bond of six
years maturity instead of the usual one-year certificate. In
April, the Treasury offered a 30-year bond--the first marketable
long-term bond since 1945. In September, a 3ir-year note was
offered, and in October a new cash offering of eight-year bonds
was made.
The net result of our debt management so far in 1953 has
been to finance a huge inherited deficit without any increase
in bank holdings of government securities, and hence without any
increase in inflationary pressures due to that cause. Ownership
of government securities by investors outside the banks, in fact,
increased by $4 billion the first nine months of the year,
while the holdings of commercial and Federal Reserve Banks
declined by about a half billion dollars.
In helping to spread the debt, we are also encouraging the
widest possible ownership of savings bonds. We note with pride
that the sales of Series E and H savings bonds so far this year
are higher than in any year since 1946.
Our policy is fixed and determined. It is flexible only in
its execution. While our objective is definite, our progress
toward it realistically recognizes and adjusts to the changing
conditions in which we operate.
We have made no change in either policy or objective. Our
goal has been and will continue to be a stable economy for a
healthy economy—for the military and economic security of all.
(4) The__menace of inflation. It is a matter of cold—and
tragic--record that the purchasing power of the dollar declined
from 100 cents in 1939 to 52 cents in January 1953. Even since
194o, after the end of World War II, the value of the dollar
has dropped from ?4 to 52 cents.
This has been a cruel hardship upon the millions of
Anwricftns wno have saved money either in savings deposits, in
insurance, or in retirement fraternal and pension plans.
f..r*>.Thi? 5dmi?istration ls committed to do all it can to halt
n S e r - i n j i a t l o n i w h i G h l s a l o n S wor><i for this decline in the
purcnasmg power of a dollar.

ecu
- 9 The monthly reports on the consumers price index are
eloquent proof that the trend has been halted. There has been
a change of only one-half of one cent in 1939 dollars in the
purchasing power of the dollar in the past year. This is real
proof of stability.
Every fractional new high in the consumers price index receives
interested public attention. From 1946 to 1952 this index
increased from 80 to 114, a total of 3^ points in just the
6 years. In marked contrast however during the past year it has
increased only one point which is only 1% this year. Here again
is the most convincing proof that a turn has been made and that
temporarily at least stability has been achieved at a high level of
productivity and employment.
(5) Tax Reductions. Tfcis administration is reducing taxes.
Because we have reduced expenses and only because we have
made these reductions in spending, the excess profits tax will
expire on December 31 and individual income taxes will go down an
average of 10 percent at the same time. Let no one be deceived.
No tax reduction whenever planned could be justified otherwise.
Additional tax reduction is desired by all and is essential
to the continued growth of our economy.
This nation, as the land of opportunity for the young—eager
for work and ambitious to better themselves—ean*t long endure
as such under the restrictive taxes which we Inherited.
But taxes can be further reduced only as expenditures are
further reduced. And expenditures can be reduced only as
consistent with maintaining a defense adequate to meet the dangers
which confront us.
Our entire tax system is being revised to remove wherever
practical inherited obstacles to growth and incentive. This is
a joint undertaking of the Treasury and the Ways and Means and
other committees of the Congress. There are many changes which
could well be made. But loss of revenue must be carefully evaluated.
We cannot afford as much reduction as we would all like
immediately. But we will set a pattern of reduction on which a
modest start will promptly be made, with provision for additional
future reductions in taxes as rapidly as reductions in
expenditures—consistent with security—indicate that they are
justified.

- 10 (6) Encouraging initiative. Needless and stifling controls
were lifted almost as soon as we assumed office. They had not
kept down the cost of living. They were curbing vital American
initiative and enterprise.
Lifting of controls was a calculated risk. The loud cries
that the end of controls would mean runaway inflation died out
almost as quickly as the consols themselves were ended.
This administration believes that the average American
can do more for himself—if he is allowed to do so—than the
government can do for him. Competitive enterprise, free
initiative—the courage to take a chance—the opportunity to
better oneself by effort—constructive work and invention—these
have made America great.
It is the collective effort of 160 million Americans, each
for himself striving to improve his lot, advance his children,
and improve the position of each succeeding generation, that
all taken together has been a power to create more things for
more people, for higher and higher standards of living for all,
than ever has been known in this world before.
Opportunity is the rightful heritage of our children. It
must be protected and guarded and handed on.
Korea: Shooting and bloodshed in Korea are ended, at least
for the time being, and the tension In the homes throughout
America is lessened. In its place our every effort is at work
to fashion a lasting, sound and equitable peace, and substitute
reconstruction for destruction in that war-torn land. It is our
fervent hope that out of it may come a permanent and constructive
settlement.
Conclusion, This then was our Inheritance of fiscal burdens
accumulated over 20 years.
These are our objectives.
Our accomplishments are real. They are a good start toward
substantial progress, have yet far to go, but are far enough
already to give us pride in the past few months of effort and real
hope for greater things to come.
If only real peace can result in Korea to dissipate anxiety for
our sons it will also help to relieve our financial pressures and
may even be a first step toward accomplishing the real and lasting
peace so craved throughout the world.
May Divine Providence guide us ever toward peace and give us
the strength, the wisdom and the courage to realistically face
iacts as we see them and act vigorously with fear or favor for none.

322

TREASURY DEPARTMENT
Information Service

FOR RELEASE
Tuesday, November 17, 1955

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

Press Service
No« H-505

The Treasury Department today made public a series of
tabulations which -will appear in the report wStatistics of Income
for 1950, Part 2," compiled from corporation income tax returns.
These data are prepared under the direction of CoGmissioner of
Internal Revenue T. Coleman Andrews.
SUMMARY DATA
The number of corporation income tax returns for 1950 is
665,992, of -which 426,283 show net income of $44,140,741,000, while
203,031 show deficit of $1,527,437,000, and 36,678 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 36 percent.
The income and excess profits tax liability reported on
these returns for 1950 is $17,316,932,000, representing an increase
of 76 percent as compared with the tax liability for 1949, which
consisted of income tax oriLy. The excess profits tax portion of the
tax liability for 1950 amounts to $1,387,444,000, reported on
50,301 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*

- 2 A comparison of the 1950 returns with the 1949 returns is provided in the following summary:
Corporation income tax returns, 1/ 1950
an<J 1949: Summary data "~
(Money figures in thousands of dollars)
Increase or
1950
1949
decrease (-)
Number or
Percent
amount
Total number of
returns
Returns with net
income: 2/
Number of returns
Net income 2/
Tax liability:
Income tax 3/
Excess profits
tax 4 /
Total
Returns with no net
income: 2/
Number o? returns
Deficit 2/
Number of returns of
inactive corporations

665,992

426,283
44,140,741
15,929,488

649,957

16,035

384,772
41,511
30,576,517 13,564,224

11
44

9,817,30a

1,387,444

6,112,180

1,387,444

100

17,316,932

9,817,308

7,499,624

203,031
1,527,437

230,070
2,381,680

-27,039
-854,243

-12
-36

36,678

35,115

1,563

£or footnotes, see pp. 25-26.
Allowance of the net operating loss deduction reduced the net
income for tax computation by $344,847,000 on 55,957 returns filed
for 1950, as compared with $196,304,000 on 39,709 returns filed for
1949. See note 25, page 26.
RETURNS INCIDTED
The returns included in this release are the corporation income
tax returns filed for the calendar year ending December 31, 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.

- 3-

23^

The data are from corporation income tax returns, Form 1120;
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 Inccme 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 Internal
Revenue Service 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.
CHANGES IN LAW AFFECTING CORPORATION RETURNS
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. - (sX) 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); 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).
(h) The Excess Profits Tax Act of 1950 imposes a tax at the
rate of 30 percent on excess profits, effective July 1, 1950. As in
the case of World War II 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
tax. 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 capital. The
act also increases the surtax rate under the regular corporate income
tax by 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,

- 4 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); for such years,
corporations pay a prorated amount of excess profits tax and are
unaffected fcy the 2-point rate increase, mentioned above. Accordingly,
for the calendar year 1950, the maximum combined rate is approximately
57 percent (23 percent normal tax, plus 19 percent surtax, plus
approximately 15 percent upon that part of the income representing
excess profits) and the ceiling rate is approximately 52 percent.
The method of computing the 1950 income and excess profits tax
differs from the World War II tax computation in that excess profits
are subject to both income tax and excess profits tax, whereas for
1942 through 1945, excess profits tax rates were substantially
higher and excess profits were excluded from the income tax base.
Thus the excess profits tax collectedibr 1942 through 1945 included
a substantial amount of tax which, in the absence of the excess
profits tax, would have been collected as income tax.
(c) The Revenue Act of 1951 increases the normal tax rate
from 2*5 to 30 percent; leaves unchanged the surtax rate of 22
percent; and makes provision for an 18 percent celling 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, 1951; 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

11A
- 5 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 l^ofits 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) 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 differenbe 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 carry-forward 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, classified by industrial groups. The industrial
classification is based on the business activity reported on the

- 6 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,w 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 nonlife 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 nonlife 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.
Table 5 shows data from returns with balance sheets, classified
according to size of total assets as of December 31, 1950, or close
of fiscal year nearest thereto. The total assets classes are based
on the net amount of total assets after reserves for depreciation,
depletion, amortization, and bad debts*
The classification of the returns by net income and deficit
classes, shown in table 4, and the classification by returns with
net income and returns with no net income, shown in tables 2 and
4, are based on the amount of net income or deficit which is the
difference between the total income and the total deductions as reported on the return, exclusive of the net operating loss deduction.
DATA PREVIOUSLY RELEASED
A tabulation, prepared from consolidated income tax returns
filed for 1950 by affiliated corporations, was included with other
tabulations in a preliminary report dated May 29, 1953, and is

- 7 omitted from this release. Table 1-A of the preliminary report shows
by major industrial groups the number of consolidated income tax
returns filed by affiliated corporations, with the corresponding
amount of total compiled receipts, net income, income tax, excess
profits tax, total tax, and dividends paid* Although the abovementioned table is not shown here, the data from consolidated returns
are included in all tables of this release.
Table 2 and Part II of table 3, shown in a preliminary release
dated May 20, 1953 (Press Service No* H-124) and also in the
preliminary report mentioned in preceding paragraph, show number of
returns, net income, excess profits net income, excess profits credit,
adjusted excess profits net income, income tax, excess profits tax,
and total tax computed from 50,200 corporation income tax returns
with excess profits tax liability. In table 2, these data are shown
by major and minor industrial groups, while, in PartH of table 3,
these data are shown by net income classes and by method of credit
computation.
Although the two tables, mentioned just above, are not shown in
this release, data from the 50,200 returns, showing excess profits
tax liability, are included in all tables of this release*

All
industrial
groups

1 Number of returns 6/

629,314
Receipts:
Gross sales 2/
374,406,271
Gross receipts from operations S/
65,475,261
Interest on Government obligations
(j.ess amortizable bond premium):
Wholly taxable 2/
1,553,724
4
Subject to 'surtax only 10/
176,213
S
Wholly tax-exempt 11/
218,006
6
4,556,998
Other interest
7
3,561,997
8
Rents 1 2 /
467,856
Royalties 13/
9
Excess of net short-term capital gain over net
31,994
10
long-term capital loss 14/
Excess of net long-term capital gain over net
1,096,754
11
short-term capital loss 14/
539,013
Net gain, sales other than capital assets JJj/
12
2,459,921
13
Dividends, domestic corporations 16/
643,651
Dividends, foreign corporations 12/
14
2,942,410
Other receipts
15
458,130,069
16
Total compiled receipts IB/
Deductions:
284,699,346
17
Cost of goods sold 12/
36,557,834
18
Cost of operations 12/
gg/7,606,840
Compensation of officers
19
3,866,220
Rent paid on business property
20
3,750,011
21
Repairs 22/
755,114
Bad debts
22
3,211,895
23
Interest paid
9,013,184
24
Taxes paid 2l/
252,366
25
Contributions or gifts 22/
7,858,130
26
Depreciation
1,709,330
Depletion
27
43,341
28
Amortization 22/
4,096,963
29
Advertising
1,660,915
Amounts contributed under pension plans, etc. 21/
30
.223,443
Net loss, sales other than capital assets 15/
31
49,993,827
Other deductions
32
277415,298,769
33
Total compiled deductions
42,831,310
34 Compiled net profit or net loss (16 less 33)
42,613,304
36 Net income or defioit 2/ (34 less 6)
344,847
36 Net operating loss deduction £5/
15,929,488
37 Income tax 2/
1,387,444
38 Excess profits tax &/
17,316,932
Total tax
39
25,514,378
40 Compiled net profit less total tax (34 less 39)
Dividends paid:
11,552,963
Cash and assets other than own stock
41
1,-292,460
42 | Corporation's own stock

2
3

For footnotes, see pp. 25-26.

Agrloulture, forestry, and fishery
Total
Farms
agriculand
ture,
agricul- Forestry Fishery
forestry,
tural
and
services
fishery
7,561

294

1,553,380 1,507,132
431,735
402,976

20,632
7,228

8,300

536

469

82
6
1
138
316
84
64

35,192

24,044

10,827

2,878
2,438
45,005
44 ,"915
3,156
3,153
27,523
25,972
2,130,965 2,041,795

415
43
3

2,035

1,905

191
145

185
143

3,875
17,105
8,209

3,654
16,684
8,125

1,086,851 1,049,002
195,259
209,179
47,781
50,354
30,840
31,216
33,003
34,974
2,221
2,133
15,473
16,551
31,354
33,744

936

910

65,309
3,375

62,165
2,153

110

109

10,986
11,122
2,582
2,531
2,498
2,063
272,256
285,301
1,836,323 1,768,018
283,777
294,642
294,497
283,634
6,805
7,359
97,462
93,168
5,317
5,283
102,779
98,451
191,863
185,326
106,530
4,795

103,631
4,795

445

960
60
134
37
682
1,367

7
772
1,216

1
54
26
290
3,169
29,500
11,366
11,365

236
3,604

14
3,618
7,748

9,056

1
83
106

Manufacturing

Crude
Bitumipetroleum
Anthra- nous coal
and
cite
and
natural
mining
lignite
gas
mining
production

Metal
mining

820

218

1,996

25,616 6,981,202 1,210,240 396,929 2,041,069
21,531 1,275,907
39,626 78,786
314,533

Nonmetallic Construcmining
tion
and
quarrying

Total
manufacturing

Beverages

Food
and
kindred
products

11,000

532,176 212,947,124 5,519,212 31,662,994
2,551,523 781,441
159,482
761,790 81,172 10,825,538
3,872,165
21,583

2
3

4,129

10,012

3,786

2,817

36
106

448
26
1

2,262

238
433

102
86

37
211

14,185
34,175
52,535
1,368

3,031
4,110
2,190

1,106
6,053
7,140

2,173
12,247
13,939

271

58,672

3,615

899

1,893

27,694

115,872

699
37
29

2,191

1,337
2,598
1,226

5,080
26,885
1,537

6,538
9,167
28,040
1,020

497

141,116
2,664
3,812
174,768
283,435
156,071
6,673

11,504

38,066

4,588

24,429

404,833

47
259

3,178

1,961

38
114
3,357
4,052
1,210

309
5,340

4
5
6
15,792
7
21,610
8
6,644
9
1,163 10
5,766

171
392

25,021

3,586
8,751
15,732
2,233
7,253
97
188
949
264
554
96,902
25,936 10,283
12,050
25,003
10,155
49,411
1,117
920,085
5,597
3,990
2,247
1,648
482,946
3,007
40,263
4,548
57
38
70,188
9,150
1,038
5,718
122,956
93,671
11,677
42,605
891,513
32,265
523
48,304 8,608,558 1,304,441 502,898 2,420,817 3,500,126 880,276 11,561,779 220,302,937 5,596,599 32,060,205

12
13
14
15
16

20,282 4,378,267
709,257 346,288 1,552,307 1,312,874 457,541
420,459 156,427,372 3,496,512 26,163,761
27,412 55,209
10,752
820,455
221,959
2,216,740
74,236
469,571 46,304 8,867,006
10,134
98,440
1,623
6,160
3,541
26,488
2,711,911
50,824
222,889
37,615 24,636
404,294
43,040
3,053
2,275
4,591
43,094
846,582
12,975
84,197
10,244
22,877
316
1,837
109,775
12,914 11,525
43,720
2,840,218
255,887
15,853 25,763
54,877
39,049
5,286
18,335
1,162
2,352
1,054
11,416
172,861
2,641
51
514
204
66,544
3,478
3,773
10,646
43,921
4,726
23,090
77,358
27,516
627,599
396
259,988
50,541 12,532
322,230
1,023
50,496
187,155 19,264
4,225,769
690,063
121,341
3,344
9,883
1,561
131,467
3,056
5,594
19
224
235
712
612
34,448 11,333
2,372
360,023
83,423
180,812
317,657
190,677 40,142
3,426,824
87,201
1,418
59,922
996,566
388,254 27,786
1,205
6 607,474 121,074 10,438
826
2,533
2,253
16,876
126
4
28
122
108
34
851
7,609
1,628
462,217
2,658
2,282
27,890
2,314,632
181,867
82
151
890
28,732
61,273
4,117
9,338
13,523
1,076
11,780
1,049,882
12,462
25
678
7,086
13,240
1,034
8,146
3,015
3,386
75,020
4,444
145
108
937
9,876
713,152
48,256 21,997
370,700 89,682
182,517
818,725 18,497,271
521,194 2,592,325
48,805 7,517,902 1,023,054 480,735 2,257,605 3,009,990 746,518 10,999,503 196,577,590 5,136,372 30,671,603
2S/501 1,090,656
281,387 22,163
490,136 133,758
562,276 23,725,347
163,212
462,227 1,388,602
2S/502 1,090,223
281,281 22,162
163,126
489,925 133,729
562,017 23,721,535
462,113 1,388,210
9,799
1,728
14,327
6,079
1,137
12,283
148,241
4,603
318
681
174
573,93B
67,620
228,683
196,225 54,324
9,564,912
690 430,570 105,467 6,934
195,933
16,911
3,465
1,805
6,577
18,028
37,211
4,921
1,071,954
8,823
20
143
69,425
202,802 59,245
246,711 10,636,866
611,149
710 447,481 108,932 7,077
204,756
643,176
172,455 16,086
93,787
287,334 74,513
315,565 13,088,481
777,453
2fl/l,211
257,471

17
18
19
20
21
22
23
24
25
26
27
26
29
30
31
32
33
34
35
36
37
38
39
40

321
25
47

1,028
40,866
17,567
3,168

Total
mining
and
quarrying

2,626

273

652,755
10,524

157,513

14,855

62,927
4,028

274,898
4,755

42,562
1,691

82,667
27,872

6,061,896
799,657

108,740
5,070

382,375
47,559

41
42

Table

1. <• C o r p o r a t i o n

i n o o a . tax r e t u r n s , 1 /

or d . f l o l t , net o p e r a t i n g

1U60, by m a j o r

lona d e d u c t i o n ,

lnooo. t m ,

Industrial

axoaoa

groupni

proflto

Ui,

Number o f
total

tax,

ratun
uumplle

oomplloil
nt profit

r m nlpl.il, oomplloil ilailuntloim, nompllail net profit or
laian total tax, anil d i v i d e n d s paid by t y p . of .llvl.lan

nt l o . a , n o t ln.Hinia
- Continual!

alula of do Ilarn)

_______^__ (rkiney^ flgurea In tho

MaJ0Vin.l1

itrlal g r o u p * 6/ - Oonl.lmioil
Mai ifni'lurlng - Continual!
Fabrlonl.au
matn 1

Appt
Tobaonn

T a x tile-

manul'ao

ralll

Lumber
ami wood Furniture Paper
and
produote,
and
allied
axaspt
fixtures
produote
rurnltur.

pr.xiurta

pro.lui.tn,

Printing,
pub 11 HIIlriK, ami
alll«l
Imluatrlai

nl 11 oil
proiluota

I'utroloum
and ooal
produotn

Stone,
olay, and

Leather
Kulilinr

mill

produote

prntluotH

g l u tin

Primary
met,, 1

axrapl.
trnriu|Hir'

ordnanaa,

liulustrl mi m a c h i n e r y ,

produote

Miinhlnary,

and

trana-

portatlon

latIon
equl (fiiaiit
nn>l
eleol.rl.ml

ai|ijl|mant

Number

8,704

I4,:iib

18,700,602

7,001,114
4:14,010

1,, 100,411:1

1,288
OS
17
2,107
6,880
h,:i7D

12,603

raturnu fl/

4,493

18,070

7,307

0(1?

0,100,444

10, 0 2 0 , 1 0 7

10,743,010

14,070

470,408

74,000

1,37,204

li.llllll

4,444

10,110

10,770

380
883

134
404
14,400

113
1)0

8,006

8,008

0,078

3 , 0 7 4 , 0 0 4 3 , 1 0 0 , 8 8 0 4,01,0,480 17,007,1,07

10,788,807

(100

8,700

4,846

0,010

Hanoi jittit
3,804,301

(Irona M l . a 2 /
(irons r . o a l p t a from

opnruLloua

:i, 1:14

830,01)3

1 ;•:!,.'ii 1

,01111,1,00
I'M, I Mi

n, 0:10, HIK!

0,036

I6,36li,777
0 7 , 1 18.
800,074

18,888

30,1,06

700,1,1 1

1 ,01,0

(118

4,008

10,047

4,032

10,046

II,

74
80

141
181

180
00

808
107

802
4U8

1,780
3,830

1,807

8,000

1 ,040

0,880
8,304

38,078
10,701

4,007
18,640

16,441
1.4,820

6,030

7,070

.'1,038

8 1 , 111 8

1
y

liiLoroat o n dovarnmonl. ui>i lgatiunH
(latin .tm i rUY.nl> I a liorul p r e m i u m ) i
Wholly

0,40!!

taxable O /

Iluiija.it to nui-tax only ifl/

130

Wholly

4li4

Othnr

tax-exempt

JJ/

Interaal

ItantH UL/
Uoynlllon J j /
Kxueaa

of
of

u,x:t!
10,1:10
;i,ob7

nat. nhorl-tnnii impl titl gnlii o v e r

long-tann
Kxoann

1,011:1
:i,:ii»4

.mpltnl
not

IOHH

117
H, 11(10
0,070
4,000
1,1.3

91b
8,224
706
11

(mpltnl

gain m o r

2,070

2,04.' 24,671

not

Limn

unpltnl

iitmol.M JJj/

000

867

118

I:IO,II;'8

3,176

1,1:10

662

10,410

11,800

8(1,707

84,177

88,71,1
1103 1,1:11

7,8,02

8,067

11,M;:I,

l,nl)0
lb,700

;'4,4:r/

Ulvl.lowlii, .loinentln mir|xu'ntliinn JJj/

4,308

20,006

III vlilaiulii, f o r e i g n

144
6,000

8,337
0.1,206

,824,001

1:1,177,31.3

:i,e;i3
aa.i
27,086
0,346,480

,C63,:iOH

1(),(Hid,761

,:ioii,iii4

11,8,903
177, HIT,

:i41,1100

110,100

.'111,4111

Hub, 0:1:1
71,243

100,701
10,030

18,136

130,004

II,,!!!)!'

4:1,170

17,093

7,1,11;:

0,284

4,260

1:0,;",'!,

15,740

7,400

nor|Kirat,lonH

Xl/

renelptn
ToL/il

10,177

:i,j'()4

17,001
00,607
26,440

401

170

834
10

40,017

3,041

1 ,0(10

7,080

3,306

140

120

'304,042

11,, 001,

1,748

11,704

(13,030

180,407

30,018

100

28,003

14,070

27,(104
10,408
8,100,71,4 1,,000,004

40,11,1
10,1100,701

66,800
10,030,1,80

11,,000,804

8,1,08,070 3 , 1 0 3 , 0 8 3
10,040
0, 100

13,401,430

7,708,1311

408,014

08,718

180,01,0

110

aiunpl I ad

r e o e l p t n JJj/

07,844

80,301
7,0:10
Oil,870
0,111:1,010

0,4:1b, 7 H I '1,031),077

103,311;
1,8,1170
1,0,003

07,.'100

I4,47(

I0,407,0i:i 8 0 , 1 0 0 , 1 7 7

4,01,0,048

Coat o f g o o d s ( o l d ill/

0110

limit

|»ilil on

Ounlnnnn

11,11110

H,IO«
4,007
2U2
23,1182
U S , 308

property

llnpnlrn i^l/
llml fluhl.ii
Intermit
T«xa„

pnlil

paid

a /

1)7(1

Ooiilrllnitlniin or g l r t a ilii/

12,104

Dnproiilntloii

l),l)07
:ii),,'ioi)

2,286,767

80,791

7,noi

3,346

8,688

41,101

93,370

88,646
181
17

1«

186,946

Amorll/,iillon

1,1

lib

iiii,;'i'ii

(Hi, 1,10

i;:,ouii
0,001)

Nat

IHHH,

tm l"fl o t h e r

than

l)ll,;'4:i
pannlon

plniin, u l n . 'ilt/

nnpHnl

(14,11116

Totn I oompllorf .la.luuUoiw
Oopil.i.l net prorlt or nat lOBS (ifl lass 3.'l)
Not

limoma

Inno.nn
Kminna

or d a n nit '{J (04 laUH

p r o d tn

l..u

tax

(.'14

leaa

39)

1137,081

;',:ioii
404,1,00

2.00,730

!'70,7:i7
0,1,07

01,7,;: 1:1

I ll),84o

244,000

(1,202

22,010

126,461

2(17,(10(1
000,724

204,644
30,207

411,01,.'
17,001

11,11,,'111 I

1,840,ODD

,0011,1171,
8711,71.4

II,:I,:IO:I

27,601
4,401'.
742
020,800

4,774,61111
3,07!'
ea,i8b
23,880.
146,703
3,070
28,100
111,801
6,436
130,777
6,340
1,01,0
;:7,OI,:I
:K),',I:IO

8,180
600,,'1:10

,770,.'100 •'., 701), 047L, 000,11OI1
2 4 0 , 0 0 0 1,007,001,
111,7, :I:KJ

j,840,840
7,468
B07(4ICI
30,012
600,200
7(»i,404

1:11,410
total

I,,I,:III
II;'4,OIHI

7,77:1
1,1111'

11,11:111,1114

11,011)

tax
proril, loan

:n ,111111

,11:14, OBI
1:00,700
401
120,400

Innti iln.lunl.ton gfi/

tax j /

Total
Compiled net

I 111

liMtlnl.M JJj/

Oilier ilnilunllonn

Nnl. oparnl.liig

lt,!iUII

41,4711

110,117;'.

in,0:111
I III,, Mill
84

80,327

801,8811

IJaplnll.in
Ad var 1.1 a lug
Amiiuiitn 'T.nil.i-1 lnil.o.l under

8,094

I3,7.'I0,003

2,001,046

0,140

240,01:1
4,1171.
07,000
10,707
1011,401,

10,038

18,044

81,146

400

000
10,717

1,818
80,080

82,410

8.7,700

12
18
14
16
111

iinneta o t h e r

Corp.,ration'ti o w n

than o w n ntoiik

nlooli

06,000

v,oi)8

107,1,00
111., 7 I D

10,306

11,008

0,880

14,430

0.1,431

8.6,016

43,007

483,078

133,007

08,400

808,884

160,8111

201,788

817,107

800,047
00,000
880,030
10,703

0,049

7,438

3,070

1,443

3, 100

0,01,0

0,808

1 1,041,

99,687

366,831

8.1,710

117,380

370,078

140,001

8110,800

88,003

643,31)0
701,010

00,701

67
48

30
800

181
00

8,108

07,010

Kill

104

401

1,009

01,011)

30, O H ;

87,088

0,707
30,840

03,838

HI,983
6,170
1,694,070
1.0,870,470
1,021,600
1,681,004
6,076
003,300
13,406
010,713
1,804,080

14,004

0,447
Mill

108,01)0
00,010

98,763

48,011
30,01,8

8,887
401,008
04,806

8,398
:i, 1,7:1
1,788,060
1,141,080
0 , 8 8 0 , 0 0 7 13,000,100
8,778,433
004,01,2

100,746

41,8,144

840,170
330,708

1,200,009

011,040

137,41)1)

0,434

73,000

14,,'107
08,741

00,001

80,002
8,000

1,100,001

107,441

1,4,000
1,',10,008

0,01,0

46,130

18,734

44,117

17,308
100,71,0

8,8,01

12,696

831,,430

1,1,0,1,1,1

10,034

860,64b

411,101
41 ,()4:i

I:II,I,:II,

10,840,818
84,130

17,000

68,310

31,094
80,900
81,328

8,771,HUB

4,41)0

70,000

4,020

60,600

668
84,00(1

11,3,000
88,100

7,423

1,1,13,024
772,001)
47,440

1,880

81,007
11), Kill

108,018

8,040

6,006

81,8,000
1,18,101
871,01,:
8 , 0 8 1 , 8 7 4 8,080,107 4,817,0011
111,0,300
107,007
484,701

10,41,8,1,01
8,414,800

040

484,707

700,160

11,7,080

000,100

8,414,170

8,008

40,801
14,484
1,080,747
0,710,000

087

3,088
8,008,180
18,088,173

1,817,048

8,044,811

1,817,8110

8,043,780

10,017

16,018

00,004

3,148
847,800

0,430

174,808

000,100

001,877

040,007

88,131

8,034

40,011,

188,170

1.7, 107

70,800

100,884
880,844

00,680

804,100

011), 0 7 8

400,130

1,180,300
1,808,004

0011,074

00,080

01,0,000

1,124,880

DC 1,207

73,l)l,(

811,1,01

108,780

087,840

841,010

00,302

13,17,'

1,400

80,807

448,710
02,018

1 ,000

0
I)

80,084
86.1,617
48,r,f,r

366,106
34,061
134,646
203,704
8.1,104

31,10(1
,1,70,088

ii.A,'l\H

004,780
h ,01,3

1,007,,'100

IHvMaiulii |»ilili
dnali ami

4, 1110,1,83 10,840,1101

870

Dndunllomii
(lout, o r u p m - n U u r i a H i /
l]oin|mrifi»t,1on o f o r f l n e r n

4
I,
0

818

1 111

loan jjl/

Nat (juln, a n i o n othtir

OtOnr

6,681

u,;:i7
0,1107

1 1

ll/

long-term

aliort-lanii unplLnl

1,041

net

Kill, 1)80

80,040

17
10
.10
80
8)
88
83
84
8.6
80
8V

88
89
30
31
38
88
34
31,
30
37
811
80
40
41
48

For footnoloa, nan pp. 26-811.

CO
CO

Manufacturing - Continued
Scientific
TransporMotor
instruElectrical
tation
vehicles Ordnance ments ;
Other
and
and
machinery equipment,
photomanufacand
except
equipment, accesgraphic
turing
equipment
motor
except
sories equipment^
vehicles electrical
watches,
clocks

1 Number of returns g/

3,127
Receipts:
Gross sales 2/
10,394,984
Gross receipts from operations £/
61,895
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 2/
7,129
4
Subject to surtax only 12/
74
5
6
Wholly tax-exempt H /
190
7
13,895
Other interest
8
7,605
Rents 1 2 /
12,783
9
Royalties 13/
Excess of net short-term capital gain over net
10
451
long-term capital loss 14/
14,732
Excess of net long-term capital gain over net
11
short-term capital loss li/
Net gain, sales other than capital assets 15/
12
152
51,119
13
Dividends, domestic corporations ! § /
12,196
Dividends, foreign corporations XJ]
14
35,940
Other receipts
15
16
10,613,145
Total compiled receipts IS/
Deductions:
7,334,540
17
Cost of goods sold 12/
16,327
18
Cost of operations 12/
101,402
Compensation of officers
19
34,587
20
Rent paid on business property
115,805
21
Repairs 2 2 /
7,967
22
Bad debts
24,964
23
Interest paid
222,435
24
Taxes paid 21/
5,128
25
Contributions or gifts 22/
148,097
26
Depreciation
Depletion
27
153
28
275
Amortization 23/
165,103
29
Advertising
94,630
Amounts contributed under pension plans, etc. 24/
30
2,981
Net loss, sales other than capital assets li/
31
Other deductions
921,643
32
9,196,037
Total compiled deductions
33
1,417,108
34 Compiled net profit or net loss (16 less 33)
1,416,918
35 Net income or deficit g/ (34 less 6)
8,732
36 Net operating loss deduction 25/
576,273
37 Income tax 2/
83,939
38 Excess profits tax i/
660,212
Total tax
39
756,896
4C Compiled net profit less total tax (34 less 39)
Dividends paid:
Cash and assets other than own stock
311,979
41
Corporation's own stock
29,062
4a |

2
3

For footnotes, see pp. 85-28.

982

7,233
3,894
5,185

32,910
~374

124
10,033
5,208
4,159

179

3,512

7,372

120

594

110,543
3,763

847,695
16,279

sale

Other
wholesalers

Total
retail

202
1
7
792
110
18

9,693

1,201

1,714

26
26

62
33

1,856
1,751
2,497

2,664
6,693
2,294

26,277

18,891

4,227

28,581

17,565

4,814

705

1,648
111,753
407,832
9,061
1,044

1,752

9,772

68,938

612

649
362

33
42

63,686
349,101
5,923

10,247
28,174

788

887
24

54,001

4,204

1,261

76,816
18,368

9,588

59,269

1,024

7,417

268
341

32
29

236
312

117,284
233^547
19,636
7,773

46,133
53,572
15,597
5,146

8,085
4,870
1,125

231

146
1

778

38,048
48,702
14,472
4,368

8,633

2,100

100,323

52,406

4,153

48,253

172
7
15
519
1,534

11,189

4
5
6
66,261
7
161,442
8
2,974
9
2,261 10
301
372

40,323

7,929
8,146
6,920
12,760
3,795
3,333
632
460
114
462
102,179
84,818
54,757
99,808
54,118
-243,964
2,210
12,041
42,077
39,633
12,887
2,496
1,485
8,906
64,570
62,918
10,056
74,833
1,652
109,471
30,512
467,057
687,636
155,957
10,543
5,431
1,218,692
59,813
407,244
32,136,928 19,518,624 4,604,763 7,809,905 203,636 155,102,744 78,392,953 4,130,835 74,262,118 69,122,315

12
13
14
15
16

79,263
59,339

68,857

8,441

2,681

209,339

665
751

16
1,429
37,299
29,023
2,105

169,421

10,072

1,898

20,382

6,030

1,444,260 3,464,558
155,923
204,483
7,212
40,004
19,656 18,893,797 12,689,614 2,325,281 3,795,822
2,111
165,345
278,300
207,316
28,366
49,353
37,931
13,171
35,025
800,305
680,315
68,287
48,980
502
8,067
29,996
40,118
63,061.
47,768
6,966
6,467
3,307
8,952
37,981
16,507
13,155
8,181
143
1,422
6,627
14,998
994,695
462,011
142,209
373,791
5,332
67,231
82,912 1,966,662
969,022
300,760
677,555
3,112
4,178
14,182
4,406
2,671
6,991
575
4,548
65,510 2,001,410
36,704
883,507
406,549
692,385
4,691
36,092
14,836
21,211
621
292
1,
4
19,444
19,337
152
.1
133
175
86
21
87,803
2,590
52,992
76,874
95,212
56,407
21,982
16,549
3,680
134,487
21,071
13,678
269,007
142,520
38,865
87,172
3,040
2,492
26,573
10,893
2,709
12,459
22
977
18,186
724,613
302,640
645,962 2,101,866 1,190,480
403,945
485,044
15,437,531 217,462 2,033,686 4,645,124 27,803,070 17,447,207 3,872,702 6,310,563
3,295,958
44,983
301,068
432,028 4,333,858 2,071,417
732,061 1,499,342
3,295,834
44,976
301,042
431,995 4,332,010 2,071,055
732,019 1,497,913
1,573
2,288
40,910
9,547
33,260
387
6,424
880
1,373,182
18,303
125,157
178,456 1,727,836
835,834
280,818
600,102
251,530
2,783
14,929
35,912
19,024
26,427
1,955
7,448
1,624,712
21,086
140,086
197,480 1,763,748
862,261
282,773
607,550
1,671,246
23,897
160,982
234,546 2,570,110 1,209,156
449,288
891,792

2,810,856 13,514,975
7,071
365,155
57,248
32,653
22,880
16,116
59,687
217,632
3,983
1,663
8,409
15,-672
427,065
69,151
1,675
12,121
208,168
55,428

Commission
merchants

Total

Total
trade

2
3

1,915

14,301
1,247
4,896
5,841
41,865
3,971
3,709
76,533
8,618
120
21,436
54,451
12,118
26,240
504
4,059,490 18,733,489 -262,445 2,334,754 6,077,152

1,054
11,145
19,651
2,457
233,996
3,689,134
370,356
370,040
16,685
149,114
13,126
162,240
208,116

Communication

Retail

125,498

57
259,056

20
316

Transportation

Other
Electric
public
and gas
utiliutilities
ties

56,725
2,085 150,466,171 75,830,698 3,276,857 72,553,841 67,305,832
2,292,580 4,960,498
299,456
229,226
11,420
766,106
2,730,119 1,790,811
759,914 1,030,897
36,662 30,786,756 18,576,255 4,447,440 7,573,759 189,302
309
7,359

1,276

3,525,725 18,486,684
470,447
13,003

3,529

Total
public
utilities

Trade
Wholesale

1,649,023
94,134

468,792
11,898

356,646
3,136

808,985
77,098

1,344 121,212,122
83,080
1,391,292
2,664,558
4,687
1,484,506
8,723
1,860
345,929
232,759
138
288,322
16,684
19,325
1,271,748
64,917
114
18,969
881,408
13,665
41
1,833
274 1,357,665
172,613
450
23,743
512
22,397 17,375,205
172,598 148,787,285
31,038
6,315,459
31,023
6,314,708
346
68,212
11,082
2,430,707
62
187,862
11,164
2,618,569
19,874
3,696,890

14,600
2,002

1,144,774
225,163

65,785,303 3,020,833 62,764,470 49,612,755
890,019
240,686
649,333
440,908
1,150,831
135,475 1,015,356 1,356,856
266,760"
24,481
242,279 1,149,382
100,586
3,370
223,550
97,216
88,099
82,456
129,684
5,643
137,206
134,395
9,000
125,395
706,905
469,594
19,559
470,035
34,891
27,098
2,260
24,838
543,148
278,831
13,767
265,064
1,272
16,954
16,355
599
1,212
450
41
409
^56,732
337,386
319,505
17,881
104,078
55,173
60,894
5,721
13,508
6,427
7,719
1,292
5,957,857
447,755 5,510,102 10,480,288
75,592,776 3,948,363 71,644,413 65,892,375
2,800,177
182,472 2,617,705 3,229,940
2,799,836
182,443 2,617,393 3,229,568
26,880
3,956
36,885
32,929
1,073,904
66,352 1,007,552 1,249,728
90,492
90,052
5,426
84,626
1,163,956
71,778 1,092,178 1,340,220
1,636,221
110,694 1,525,527 1,889,720
480,212
130,236

33,798
8,029

446,414
122,207

618,930
86,191

17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42

Table 1. - Corporation income tax returns, 1/ 1950, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income
or deficit, net operating loss deduction, income tax, excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend - Continued

(Kloney figures in thousands of dollars)
Major industrial groups 5/ - Continued
Trade - Continued
Retail - Continued

General
merchandise

Food

1 Number of returns £/
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42

Receipts:
Gross sales 2/
Gross receipts from operations 2/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 2/
Subject to surtax only 10/
Wholly tax-exempt 11/
Other interest

Rents 1Z/
Royalties 12/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
'short-term capital loss li/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 12/
Other receipts
Total compiled receipts 1§/
Deductions:
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 22/
Bad debts
Interest paid
Taxes paid £ } /
Contributions or gifts 22/
Depreciation
Depletion
Amortization 22/
Advertising
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit or net loss (16 less 33)
Net income or deficit 2/ (34 less 6)
Net operating loss deduction 26/
Income tax 3/
Excess" profits tax i/
Total tax
Compiled net profit less total tax (34 less 39)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock

9,193

7,631

Apparel
and
accessories

16,412

Furniture Automotive
and house dealers
and
furnishfilling
ings
stations
11,489

23,778

Eating
and
drinking
places

Drug
stores

5,355

15,500

Building
materials
and hard-

14,238

Other
retail
trade

21,902

Trade not
allocable

14,984

13,516,273 15,638,602 5,103,138 2,950,690 17,260,298 1,540,225 2,026,468 4,492,069 4,778,069 7,329,641
60,171
46,211
11,984
69,970
100,009
153,202
60,025
59,703
338,180
39,853

574
16
65

5,902

1,172

11
16

706
19
32

1,146

167
72

2,456
10,786
,637

22,712
65,981

2,504
26,917

6,067
5,749

19,368
17,712

71
43

75
127

405

315

473
28

5,314

5,446

2,176

537

344

458

38
106

115

2
845

246
12
24

591
13
40

737
25
15

752
96
38
4,890
18,533
1,065

5,409
7,132

6,385
13,107

1,334

97
10

184
131

603
119

429
154

1,736

12,234

880

2,006

5,795

4,736

7,594

605

2,521
4,839

237

909

1,131
2,553

1,187
2,879

1,036
6,057

5,490

- 515
8,568

366

3,438
12,346
7,027
3,781
1,479
1,291
1,969
7,889
2
4
24
24
50
5
89
207
73,256
176,928
14,086
55,022
63,999
27,307
87,345
131,303
107,654
14,735
13,629,858 15,996,915 5,290,583 3,144,615 17,765,859 1,577,776 2,125,297 4,610,335 4,981,077 7,587,476
10,936,731 10,263,591 3,341,996 1,925,899 14,115,037 1,051,424 1,125,800 3,447,265 3,405,012 5,814,064
54,668
15,168
4,466
24,701
60,365
39,952
16,757
26,779
220,433
37,984
182,165
156,871
122,402
156,998
126,904
409,177
41,771
80,411
150,697
86,331
68,364
98,060
25,717
92,675
301,148
264,376
72,083
121,364
53,152
120,807
12,630
21,793
22,876
18,367
13,866
8,570
34,867
6,523
44,122
61,729
14,976
17,089
20,549
25,831
26,648
14,334
18,943
4,934
559
797
15,258
32,038
6,626
13,487
16,721
13,329
3,739
28,905
10,179
13,645
61,405
75,249
113,899
45,611
47,009
59,141
36,855
21,571
224,659
96,755
2,928
7,182
2,577
2,314
3,918
2,297
4,646
10,575
670
712
55,185
59,429
16,161
39,891
22,360
95,575
48,532
122,293
50,074
93,077

15
52
74,264
17,799
1,495
1,773,134
13,307,759
322,099
322,034
1,660
133,273
' 9,667
142,940
179,159
65,358
12,478

28
93

7
169

6
85

90
353

144
38

13
124

935
42

34
256

439
171

Finance, insurance, real estate, and lessors of real property
Finance
Total
Security
Credit
Holding
finance,
and
Banks and agencies and other
insurance,
Total
trust
other
invest- commodityreal estate,
finance
exchange
than
and lessors
companies
ment
bonks
companies brokers
of real
and
property
dealers
171,841

36,966

101,148
147,294
7,831,354 1,618,698

14,810

655,060

839,578
865,885
1,343,679
161,175
159,535
171,579
146,058
150,796
210,549
4,115,601 2,575,747 2,087,525
2,329,560
139,349
118,165
2,090
204,459
68,869
12,675
8,041
3,253

42,673
7,478

15,562
4,358

102,532
38,133

14,027
1,307

12,543
1,335

37,298
9,304

26,845
5,234

45,632
8,736

7,514

1,528

15,678
54,368

111,157

4,777

14,910

6,620

997
2,452
10,244
2,368

148
548
12,580

135,813

10,179

2,668
3,337
479,864
69,720
3,374
665,860
14,832
1,009,934
709,349
17,813
50,569
3,489
46,463
54,617
458
307,281
131,332
43,006
36,293
42,946
18,574,819 6,870,305 4,136,970 1,350,184 1,157,899

60,341
10,844

219,627

109,408
28,400
26/947,367
278,838
170,631
272,620
1,109,123
891,386
24,189
585,201
45,145

81,929
24,158
545,144
89,572
27,148
253,615
645,514
208,448
14,800
102,047
10,405

436

61,055

413,586
54,414
22,689
182,586
361,735
157,169
10,625
77,386

174

1,778,190 1,267,768
115,343
75,320

415,397
52,076

387,109
3,626

68,875

62,848
24,505
2,947
54,320
202,473
28,922
1,678
11,479

27
22
21,606
6,721
2,560
463,623
952,606
397,578
397,163
5,856
155,435
5,688
161,123
236,455
110,876
6,325

13,054
24,158
24,611
3,680

996
15,844
70,278
15,103
2,170
10,778
9,832

35
637
1,541
4,134
119,691
316,592
841,307
839,436
1,383
92,992

677
93,669
747,638
732,643
16,095

1
2
3

4
5
6
7
8
111 9
693 10

527

356,373

116
415

1,871
90,869
15,190
66,520
3,547

27,557
69,294
63,547
119,020
72,929
47,639
16,542
137,058
166,714
20,633
356,228
88,442
67,649
57,263
1,640
3,114
7,641
92,665
1,838
1,154
1,420
4,427
67,819
4,867
2,754
1,487
1,452
2,516
68,753
21,389
14,324
3,499
1,059
611
381
770
937,060
7,901,711 2,067,876 1,380,677
543,232
841,767
305,746
610,464
3,152,718 1,018,153
673,167 1,561,907
14,759,092 5,102,974 3,006,139 16,911,648 1,528,816 2,097,193 4,355,239 4,823,515 7,302,134 22/12,644,893 4,232,680 2,780,267
5,929,926 2,637,625 1,356,703
157,562
285,342
48,960
28,104
255,096
138,476
854,211
1,237,823
187,609
5,719,377 2,486,829 1,210,645
255,056
157,547
285,304
48,958
28,080
854,105
187,593
138,444
1,237,751
2,295
4,677
4,447
39,704
10,888
1,901
4,798
3,505
2,100
3,726
3,454
665
408,817
1,214,064
668,105
107,075
17,669
17,963
85,355
57,745
307,639
71,460
49,307
509,317
21,904
14,799
7,318
41,659
5,741
3,084
1,856
24,720
523
673
42,491
1,737
690,009
423,616
1,255,723
91,096
60,829
114,393
18,192
18,636
51,163
332,359
551,808
73,197
933,087
9,468
164,000
96,733
170,949
4,674,203 1,947,616
30,768
521,852
114,412
87,313
686,015
302,092
6,564

13,114
85,470
798,113

12
13
159 14
9,087 15
225,252 16

- 17
- 18
19

44,099
6,973

20
516 21
865 22
11,028 23
7,254 24
327 25
2,404 26
372 27
28
2,997 29
2,124 30
371 31
103,885 32
183,215 33
42,037 34
39,585 35
1,748 36
10,861 37
740 38
11,601 39
30,436 40

41
824 42

8,852

For footnotes, see pp. 25-26.

CO
CO

Table 1. - Corporation income tax returns, l/ 1950, by major industrial groups: Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income
or deficit, net operating loss deduction, income tax, excess profits tax, total tax, compiled net profit less total tax, and dividends paid by type of dividend - Continued
(Money figures in thousands of d ollars)
Major Industrial groups g/ - Continued
Finance, Insurance, real estate, and lessors
Services
of real property - Continued
Real
Insurance carriers and agents
estate,
Lessors
MiscelAutomoHotels
except
of real
laneous
tive
Total
lessors
propand
Motion
repair
Personal Business repair
ance
Total
Insurance
insurance
of real
erty,
other
services services services services, pictures
agents
services
carriers
carriers
property except
lodging
and
other
and agents
buildplaces
trades
garages
brokers
than
ings
buildings

Other
AmuseNature of
ment,
services, business
except
includnot
motion
ing
allocable
pictures schools

1 Number of returns g/
2
3
4
5
6
7
8
9
10
11
12
13
14

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42

Receipts:
Gross sales 2/
Gross receipts from operations fi/
Interest on Government obligations
(less amortizable bond premium):
Wholly taxable 2/
Subject to surtax only 12/
Wholly tax-exempt 11/
Other interest

Rents 12/
Royalties 12/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
short-term capital I033 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 12/
Other receipts
Total compiled receipts 12/
Deductions:
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 22/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortization 22/
Advertising
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit or net loss (16 less 33)
Net income or deficit 2/ (34 less 6)
Net operating los3 deduction 25/
Income tax 3/
Excess profits tax 4/
Total tax
Compiled net profit less total tax (34 less 39)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes, see pp. 25-26.

10,497

2,686

7,811

118,942

17,151
5,022,373

17,151
28,995
4,578,830 443,543 1,190,283

460,710
9,916
58,760
1,487,117
144,836

460,238
9,899
58,730
1,485,060
142,236

362
714

289
676

25,591

24,414

2,071
267,075
2,818
30,755
7,530,249
12,841

26/124,238
59,637
2,533
8,430
9,831
174,353
2,349
42,763

145
29

55,233
1,411,721
7,689,262

11,372

4,373

323,047
183,911
496,195
877,407 1,205,421 2,155,999

102,522
287,628

6,302

11,628

12,898

4,186

5,440

1,270

380
819

108
174

112
164

15
5

50,060
2,677
2,037
2,600 1,897,022 148,353
73
4,852 130,376
3,646
38
274

13,511
225,864
15,830
-1,334

2,672
128,718

4,270

332
205

494
31

7,976

41,824

7,534

2,733

472
17
30

103,179

1,177

317
11
15
565

1,457

49
61
3,659
19,778
5,870

106
4
3
420
16,981

12,841

2S/21,964 102,274
42,611 17,026
1,749
784
5,780
2,650
1,902
7,929
8,820
165,533
1,500
849
36,851
5,912

124

232,883
24,628

21
29
6,324
2,480

315
263,093
412,479
60,452
60,422

738
19,290

954
20,244
40,208
21,370
1,176

14,638
4,242
271,150
124,252
138,664
10,301
413,272
476,890
6,809
426,747

811,534
-4,116,609
6,835
5,377
2,286

274
40,506
31,695

231
13,644

824 33,771
346
4
28,831
89
3,090
406
43,938
2,297
1,152,217 34,281
3,116,211 171,696
744,970 141,388
744,151 141,214
24,437
1,212
250,544 55,980
10,393
1,477
260,937 57,457
484,033 83,931
170,832
12,082

85,337
2,137

444,752
336,467
129,409
19,122
78,895
239,270
7,648
352,702

678

268,388
320,192
32,829
69,498
56,712
2,621
31,854
69,770
1,516
85,541

257
85

26,268
2,952

14,948
1,254

6,350

5,702

61,342
658,298

67,747
32,425

2
3

1,214

7
9

425
8
3

574
18
68

3,374
42,182
5,819

1,050
9,096
2,361

1,727
4,293

288
12
45
941

118

805
14

11,165

2,053

1,402

1,946
1,123
12,619
927
5,097
27
1,722
45,797
15,788
300,659 1,955,304 659,964

294

177
8,260

6,780

1,897

67
15

1,969
27,176
24,742
16,452
162,836
33,462
1,563
19,105
760
8,839
2,979
1,070
1,209
535,918
2,276,860
471,466
368,421
9,021,052 1,441,644 1,489,793 2,258,304
572,236
98,369
57,919
163,251
572,072
98,364
57,904
163,190
15,828
2,491
2,030
2,838
230,868
39,990
21,906
61,714
9,662
4,029
1,344
757
240,530
41,334
22,663
65,743
331,706
35,256
57,035
97,508
172,226
14,754

6,740
65,207
561,778

2,58r

546
67
23

165,928
126,081
668,125 1,244,897
97,015
149,396
43,840
43,931
18,945
12,769
3,481
4,876
6,859
6,984
30,826
35,132
1,176
1,438
53,216
64,340

191
89

5,881

99,682
79,815
196,516 1,746,215

82
721

6,324
1,792
279 406,873 1,200
709
687
603
894
5,563
1,312
9,261
3,071
31,157
261,471
5,604
30,439
230
176
1,249
40
6,657
12
.2,301
517
1,190
144,088
19,212
8,797
31,221
4,767
14,211 16,544
130,545 14,649
7,057,318 472,931 3,861,181 313,084 9,593,288 1,540,013 1,547,712 2,421,555 421,138

10,847
17,171
19,040
21,520
1,129
814
4,384,244
4,647,337
22/5,124,306 22/4,711,827
2,405,943
2,345,491
2,347,183
2,286,761
2,429
3,167
239,435
220,145
7,885
6,931
247,320
227,076
2,158,623
2,118,415
254,253
25,804

5,436

43,392
2,185

66,343
135,634
24,389
32,721
5,694

975
4,578
11,269

292
35,254

68
17

64,259
49,593
131,230 1,038,520
38,708
18,141
5,451
93,888
1,408
17,536
2,484
752
19,359
730
5,426
47,411
1,250
85
5,454
64,230

15
20

2
5

3,687

2,847

164
380

375
170

6
1,472
55,969
7,490

33,329
288,728
27,299
26,179
10,704
1,026
5,560
25,964
1,282
30,155

37,613
289,283
56,975
20,959
5,641
2,907
2,971
13,472

48,850
14,356
6,864
2,172
1,137

609

14,512

4,441

105
119

35
164

15,386

130
32
977
192

304

793

813

9,904
18,916

6,368
7,839

53,344
78,464

23,098
18,438

3,850
3,176

2,479

56,015
1,221

16,579
2,277

8,695
1,504

782
9,504

50,117
384,847
286,452 1,823,496
14,207
131,808
14,207
131,799
3,247
591
6,064
52,551

185

609
1,123
150,860
618,428
41,536
41,533
2,055
22,285

972 12
1,016
17
4,212
118,051

400

70,903
392,318
28,820
28,817

6,170

1,228
96
16,764
746,943

16,577
3,396
1,175
244,328
710,617
36,326
36,258
1,794
16,854
1,222
18,076
18,250

733

4
5
6
7
3,594
8
518 9
94 10

848
2,650
3,276

1,391
23,736
111,141
6,910
6,865
2,511
4,386

139
4,525
2,385
4,902

13
14

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

41
218 42

Table 8. - Corporation lnaow tax returna with balance sheets, j/ I960, by major Industrial groups - Tart I, all returnsi Part II, returns with nst ineomsi Numbar of returns, assets and
liabilities, ooaplled raoslpts, ooaplled daduotlons, oompllod net profit or net loss, net lnooms or riefleU, net operating loss doduotlon, Inooms tax, excess profits tax, total tax,
ooapllad net profit las* total tax, and dividends paid by type of dividend
PART I. - ALL RETURNS WITH DALANCI SHEETS
(fanyy fluuroo In

All
Industrial
groups

1
2
3
4
B
6
7
8
0

10
11
12
13
14
16
16
17
16
19
20
21
22
23
84
21)
20
87
28
20
30
31
32
.13
34
36
3(3
37
30
30
40
41
42
43
44
46
41)
47
411
411
1.0
bl
62
63
1,4
lib
1)6
67
60
60
00
61

tie
68

Nunber of returns with balance sheets 2 2 /
Assstsi
Cash 3 1 /
Notes and aooounts receivable
Lessi
Reserve for bod dabts
Inventories
Investments, Covsrnmant obligations 2 £ /
Other Investments JJ/
Oross aapltal assets 2 4 / (axoept land)
Lassi
Rossrval
Land
Other assets
Total assets _ ) /
Llabllltiasi
Aaaounts payable
Bonds, notes, mortgages payablei
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital ato.ili, oommon
Surplus reserves
Surplus anil undlvliloil profits 2 2 /
Lessi
Deficit 2 2 /
Total liabilities 21'/
(eoetptai
Qroas soles 2 /
Qrosa receipts from operations _/
Internet on Government obligations (liiun ninorll gable
bond premium)i
Wholly taxable $/
llubjaut to surtax only 1 2 /
Wholly iBX-.ixmnpL JJ/
Other Interest
Hnnte
H/
tWj_ttos 12/
Exoass of not nhort-tern capital unlit over not
long-term capital loss 1 4 /
Excess of net long-term aapltal tin In ovnr net
short-term oapltal loss 1 4 /
Nnt gain, salne otbar than capital assets U j /
Dividends, (lomnatln corporations 1 2 /
Dividends, foreign corporations 1 2 /
Othnr reaelpta
Total aomplled receipts Ifi/
hnduulloiim
Cost of goods sold Ig/
Cast of operations 19/
Compensation of ofl'laers
Kent paid on builunaa property
llnpalrs gfi/
lied debts
Internet paid
Taxns paid gjj
Contributions or u 1 rtfl j>_/
Depreciation
llnpletlon
Amortisation _ j /
Advert. 1 sing
Amounts contributed under pnnelon plana, eto. 8 4 /
Nnt, loss, onIno other thnn oopltii] anaetn ] _ /
Other ilnduntluno
Total aomplled deduntlons
Compiled net profit or nnt loan (37 lass 04)
Net liuiomn or deficit _/ (bb lass 87)
Net operating loss doduotlon ££/
Inaooa tax 3/
I'lumaa prorita tax 4 /
Totnl tax
Compiled net profit loss total lax (lib lass 80)
Dividends paldi
Cash and assets other than own stock
Corporation's own stoak

For footnotes, see pp. 25-28,

„ , _ _ _ . .

0,437

831

300

71,017,774
170,007
103,740
110,860,048
213,005
193,691
1,1)111,1,00
1,037
1,010
54,41111,18(1
321,(120
310,114
1 0 0 , II!!!!, Ollb
130,022
120,060
98,7(10, |bl
,103,134
107,442
200,0117,71,0 1,300,1100 1,314,1.00
74,2113,473
660,302
520,000
317,730
0,U7b,603
333,034
1,2,944,414
60,4211
64,763
l>00,3(10,24U !!, 280,605 2,114,200

0,019
13,400

3,338
0,01)1,

509,901

31,1! 07,00b

7,004

21111,243

200,004

0.1

0,806
0,11113
0,411(1
40,(107
10,1130
14,273
1,1)60
()0,',).'IO

3,841
8,600
(1,80(1
38,702
0,074
1,088
2,304
411,007

10,026

6,314

11),1144,013
140,021
141,U}'.0
216,140
0b,7IU,'/U4
240,01,1,
201,1108,343
140,470
1.21 ,610
l4,0()l),(iUb
42, (172
30,007
70,31(1,1)311
704,1,3'.)
71,(1,277
18,410,088
11(1, .'1112
114,771
IIOI ,111111
1!!4,1)1,11,1,70
lib 1,(11 id
120,4111
1)1,704
7,11(17,(170
l.01l,3(lll,l'4ll I!,2b0,mil, 2,1 I4,J!(I!I

2,ion
21,370
17,1.44
2,1,1)0
3(l,!,(',0

2,0117
9,633
1,010

370,1'41), 3(11, 1,1)011,717 1 ,4(11,,111)4
:illl),l,(',2
114,41 7, I'd!!
407,471)

0,007,003 1,807,U34
30,303
1,237,1130

10,800

837

401,3311
8,2(13
2,677
2,433,1100
44,746
44,035
3,163
040,010
.1,1611
211,034
26,022
2,0(13,021,
4b2, W!3,211 2,061 ,1106 1 ,1)00,031

300
43
3

111
47

3,640
IB,714
6,406

21)1,414,016 1,01,4,211 1,010,Odd
llll,40l|
36,01)7,700
104,121
46,436
47,110(1
ftf/7,41,0,030
30,.130
20,000
3,707,044
3,700,200
33,747
31,078
744,046
2,140
2,067
3,11)4,104
lb, (138
14,607
0,000,768
32,030
20,am,
1120
240,000
003
7,764,430
(11,0112
00,002
1,400
2,010
1,001,013
10(1
43,143
107
10,803
10, IKK!
4,041,000
2,602
1,064,713
8,314
2,104
100,060
1,003
40,220,060
273,20b
201,130
£2/409,007,722 1,704,613 1,008,200
270,333
207,302
42,1)36,4110
42,310,66b
207,247
270,100
(1,741
11,830
332,432
04,106
00,101
lb, 7(10,124
6,125
5,110
1,370,526
00,31,4
06,220
17,107,060
131,107
106,030
26,307,030
11,470,780

103,029

102,931

1,200,006

4,738

188,87b

88,641
80,000

430

100
143

004,200

20,401!
0,317

81,204

1,050

071

1,031,130
830,030
201,427
1,384,422
1100
18,109
1 (10,460
048,043
337,284
001,601
867,1183
1, M E , 300
10,1,07,010 1,(100,1167
4,040,200 1,130,008
80,041
133,770
04,331)
8,76,440
10,044,474 8,116,708

32,550
.•.l|,03!>
DO,030

400

GOO

nm
141,
3,7bU
1(1,1,06
l>,4Q0

0,043

Anthraolts
mining

Metal
mining

lb,100
1,100
17,430
4,048
40,007

606

31,841

1,031),ODD

1 ,11111)

Total
mining
and
quarrying

266,000
33,073
i.,020,:i?.i
01,600
220,00(1
000,024
61,800
877,601
8,404,1100
604,701,
04,000
300,700
4,704,600 1,037,747
4111,407
01,403
10,1144,474 8,lib,708

82
0
1
120
20b
04
04

1 ,637,043
171,,.'1117
111(1,034
4,680,803
3,432,7011
4b(l,401!
31,004

Ma.lor industrial groups i/
Mining and quarrying

Agriculture, forestry, and 'lshary
Total
Farms
agriculand
ture,
agricul- Forestry Fishery
forestry,
tural
and
servlaes

411

.
1
03
100

.
3

1)00
30,0411

1,88
44,880

17,47(1
8,430
1170

17,434
10,877
1,308

68
183
37
060
1,870

800
1,700

46
370
030
10

7
781

2,009

1,114

1
B4
86
883

70
88
100

3,010
80,000
10,000
10,040

881
3,400

0,003
44,117

109
100
802
086
80
846

3,438
7,403

g_/B37

8,623

873

0,000

3,700

837

438,
13,008
33,380
61,020
1,2011

10(1
3,031
4,004
8,177

07,602

3,613

271

IOO

Manufacturing

Crude
No ransHitumipetroleum tall 1c
nous
and natu- mining
soal and
and
ral gas
llgniU
produo- quarrymining
ing
1,743
5,704

636,430 l,|i('.0,733
003,713
800,8111
88,700
3,410
46,740
83,770
630,746 8,180,300
1.00,808

444,014
590,036
4,006
270,040
302,740
017,370
4,066,020
8,109,778
40,104
00,407
6,178,001

107,031
182,010
8,410
011,160
60,004
70,067
708,168
340,021
80,406
83,100
000,040

400,866

80,673

36,613
0,038
160,609 27,003
01,811) 800,060 1,181,600 74,1411
811,437
161,741
340,446 011,1,34
63,621
37,703
8O,b04
114,843
137,700 460,070
000,000 880,400
11,4,007 47,006
16,1)00
711,167
817,32b
048,0011 8,182,360 304,400
30,(130
47,0(11)
806,360
20,0(13
63U,746 8,180,311(1 6,172,001 000,040

£1,944

100,637

Bsvsragss

3,000

Food and
kindred
products

10,681!

804,730 1,016,300
13,370,300
361,080
400,303 1,010,331
8,637,100 88,814,008
0,003
401,046
36,006
17,620
33,0011,073 1,060,064 3,861,360
014,406
18,800,606
134.U0U
411,000
180,647
3411,444
7U1,000
378,400 18,387,004
1,038,038 01,149,00] 1,747,060 0,004,43(1
30,1100,404
1,76,078 8,048,170
708,310
873,003
8,117,318
0U,7bS
00,010
830,080
8,603,070
114,000
100,101
6,000,601 141,1)00,970 3,603,741 11,080,060

8
3
4
b
S
7
0
0
10
11
18

003,610

\,m

800,270
20b,081
000
3,080
27,30b
107,130
33,600
101,470
18b,300 8111,100
31,000
43,481

40,006

Construction

Total
manufacturing

1,1.17,174

18,07b, M B

434,8b0

068,061
370,00b
4,603,04b
183,871
1,830,338
18,8(10,406
433,770
610,870
001,000
8(14,400
1,862,010 14,780,014
0,004,033
730,638
140,041
U3.364
8,410,647
464,814
1187,420 20,007,030
400,000
0,308,11311
09,677
113,080
1,606,447 1)0,418,1187 1,1)08,860 4,816,874
44,046
111,110
113,272
1,807,030
6,0(10,1101 141,600,070 3,603,741 11,080,060

610,600 811,087,3811 b,4b0,126 30,071,784
303,41b 8,0111,867 8,610,874 777,303
80,760
140,0011
3,000,341
743,840 77,662 10,646,388
70,371
800,304

440
80
1

8,268

8,008

108
86

30
811

600
37
80

1,100
0,063
7,181!

8,100
11,0(10
13,604

0,361
0,086
87,61,1

1,800
8,608
1,810

2,138

900

402

140,603
2,0bl!
3,701,
173,047
201,717
166,430
0,600

11,362

37,843

4,676

83,7(10

31.14,760

40
8.B0
4,046
80,406
1,622

14
lb

IB
17
10
10
80
81
88

83
84

307

,38]
16,001
81,100
0,018
l,.1bl

26
80
87
80
80
30
31

4,746

1,048

30
114
3,308
4,017
1,800

6,717

170

84,04!

76
0,177
00,034
80,030
8,847
3,000
0,130
00,402
0,402,080 1,301,040

3,60b
1,778
14,367
801
610
6,711
18,0,13
010,838
6,1,07
84,077
10,2(13
10,148
40,300
1,117
4,640
400,001
3,007
311,708
1,346
3(1
67
1
111,430
38,040
0.1,393
000,078
6,6(111
1,033
11,634
48,100
400,062 8,308,707 3,437,144 878,8110 11,808,007 8111,871,018. 6,1,33,717 31,36.1,160

33
34
36
30
37

707,080
4,3311,300
87,135
706,000
06,004
0,134
41,1)10
3,060
1011,1)63
18,003
6,803
614
04,320
3,787
236.040
00,601
224
3,321
34,403
303,080
300,431
180,7.1b
180
2,680
7,642
161
80,603
4,117
004
10,804
000.063
47,000
7,400,060 1,080,300
1,006,970
801,268
1,000,030
801,140
0.000
670
106,106
426,080
3,444
18,760
448,606
100,030
178,013
643,804

34.1,033 i,i,: in, 01,0 1,808,1.81
64,034 811,748
467,000
3,3113
86,(174
30,603
8,801
10,074
88,162
11,600
43,348
16,716
804
1,141
2,311
1,0,640
3,473
48,800
40,61111
18., 434
186,380
1,1)61
83b
703
106,700
11,260
01,800
60,030
370,1)77
10,484
4
8,21)0
10
000
8,038
1,003
13,40b
070
0,006
0,301
100
8,060
177,806
308,344
81,321
470,767 P,8B1,B68 8,060,000
400,104
101,848
88,106
406,063
82,104 101,100
6,400
1,068
178
00,463
103,861
0,000
6,407
1,700
130
00,863
100,730
7,010
800,486
08,008
16,170

484,736
44,1,03
24,100
4,373
2b,407
1,038
4,800
10,01)4

410,140 164,034,070 3,468,11311 81, ,1,(111,11111
8,173,0.1!
lib, 1118
0,767
ll,04U,630
1.0,0.13
KJ 11,11111,
8,070,007
303,189
03(1,080
12,1101
118,787
41,010
8,026,303
311,071)
862,006
63,700
17,081
2,0011
170,074
11,110
76,06(1
88,020
20,018
081,(1.1.0
4,1.0! ,11(10
0111,480
3]7,628
117,020
0,006
3,080
130,701,
b,M!l
Oil, 111,1
170,804
11(1,180
3,402,171)
008,000
U8I!
1,4111
1,100
111,1
10,1183
08
34
1110,386
440,1011
8,800,08(1
87,860
18,404
00,870
l,04U,778
11,780
3,88.7
0,0110
(18,060
8,961
1,16,330 2,1,22,100
708,407 10,803,0611
10,717,077 104,004,041 6,078,840 80,11114,703
401,471
1,3011,300
646,020 83,007,671
23,003,770
401,307
1,307,076
644,701
10,787
.1.46,344
4,41,3
14,010
104,770
1,114,434
880,814
0,600,020
0,700
1,000,100
30,7117
17,106
237,300
10,674,720
001,281
203,071)
267,000
707,146
307,280 13,032,048

30
30
40
41
48
43
44
4b
40
47
411
40
bO
6]
b8
63
64
bl)
60
67
611
b0

08,724

871,044

42,400

01,361

0,037,168

100,660

373,733

4,080

4,780

1,601

87,033

700,000

4,010

47,640

340,034

137,813

10,384

_____

000
100

042

14,060

000
30,004
27,0b7

110
2,800
1,000

671
07,1117
737,174
136,114
136,006
1,117
64,186
4,018
60,040
70,074

n
o
01

Table 2. - Corporation income tax returns with balance sheets, _/ 1050, by major industrial groups - Part I ^ ^ ^ ^ ^ ' ^ ^ ^ ^
I Z T ^ T l Z / i V l ^ t T l ^
liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating loss deduction, income xax, exc
p
<~,
compiled net profit less total tax, and dividends paid by type of dividend - Continued
PART I. - ALL RETURNS WITH BALAMCE SHEETS - Continued
(;<oney figures in thousands of dollars)
Malor industrial erouos 5/ - Continued
Manufac turlng - Co ntlnued
Apparel
and
Textileproducts
mill
made
products
from
fabrics

Tobacco
manufactures

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
26
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
61
52
63
54
55
56
57
50
50
60
61
62
63

Number of returns with balance sheets 30/
Assets:
Cash 3J/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
LeBs: Reserves
Land
Other assets
-Total assets 35/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Less: Deficit 37/
Total liabilities 35/
Receipts:
Gross sales 2/
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
Wholly taxable 9/
Subject to surtax only 12/
Wholly tax-exempt 1 1 /
Other interest
Rents 12/
Royalties 13/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
short-term capital loss 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 17/
Other receipts
Total compiled receipts 18/
Deductions:
Cost of goods sold 12/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs gQ/
Bad debts
Interest paid
Taxes paid gl/
Contributions or gifts gg/
Depreciation
Depletion
Amortization 23/
Advertising
Amounts contributed under pension plans, etc. £4/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit or net loss (37 less 54)
Net income or deficit g/ (65 less 27)
Net operating loss deduction 26/
Income tax 3/
Exoesa profits tax 4/
Total tax
Compiled net profit less total tax (65 less 60)
Dividends paidi
Cash and assets other than own stook
Corporation1 a own stock
For footnotes, aee pp. £5-26«

167

5,570

13,411

Lumber
and
Printing, Chemicals
Furniture Paper and
wood
publishing,
and
allied
products, fixtures products and allied
allied
except
industries products
furniture
5,310

4,264

2,545

313,555
102,467
766,506
339,222
135,624
505,502
486,945 1,380,273
831,645
519,217
335,263
663,425
9,439
2,924
26,224
19,816
9,486
16,380
769,582
1,641,208 2,522,068 1,478,179
718,550
477,401
13,555
51,903
460,056
433,707
68,219
196,364
545,904
216,014
58,828
62,309
545,049
154,176
573,252 3,544,507
295,556 4,508,409
603,216 1,900,970
238,140 1,453,320
126,070 1,914,842
246,281
697,133
79,680
76,764
23,649
9,633
78,611
23,440
158,151
29,290
131,875
63,297
98,209
15,161
2,497,852 8,425,432 3,269,630 3,358,691 1,437,631 5,277,195
60,206

651,129

634,771

261,044

172,326

317,115

12,093

6,964

Petroleum
and
coal
products
629

Rubber
products

650

Leather
and
products

2,673

Fabricated
metal products, except
Primary
ordnance,
metal
industries machinery,
and transportation
equipment
4,027
2,670
6,468

Stone,
clay,
anil
glass
products

429,056 1,437,343
119,786
223,009
537,061 1,316,267 1,304,607
564,240
353,311
557,465 1,661,398
915,001 1,709,216 2,470,341
7,794
12,656
36,121
48,089
33,588
12,820
30,324
609,662
617,299 2,406,601
544,455
581,331 2,428,440 2,062,117
43,607
383,135 1,564,821
180,704
298,405 1,346,160 1,195,719
153,899
96,874
206,776
783,861
577,018 1,456,810 3,358,389
405,077 2,619,185 11,464,527
2,519,619 7,747,724 17,149,999 1,247,446
657,047
192,928 1,152,193 6,063,552
863,177 3,372,782 8,575,868
210,094
350,933
19,387
14,107
73,087
169,377
125,566
69,046
185,506
40,975
232,444
17,442
160,496
199,793
4,621,876 13,026,284 19,482,442 2,281,515 1,482,677 3,790,210 13,573,761
466,842

960,728

1,686,296

219,207

193,988

242,609

1,417,655

Machinery,
except
transportation
equipment
and electrical
9,511

760,017 1,259,690
1,202,734 2,193,355
27,766
64,867
1,684,536 3,596,549
372,785
903,409
322,399
692,936
3,072,006 5,217,369
1,288,787 2,277,710
117,322
149,260
124,234
193,872
6,339,400 11,873,863
645,877

1,184,168

142,466
71,531
91,681
319,409
412,518
229,153
98,906
541,866
196,832
540,799
286,486
342,727
158,218
510,896
671,080
65,586
47,315
427,055
1S5,580
339,464
1,566,959
703,025
315,153 1,003,784
849,901
93,331
35,989
190,825
411,570
55,871
3,800,577
984,548 1,427,543
566,564 2,300,554
56,255
53,060
26,990
66,892
28,371
8,425,432 3,269,630 3,358,691 1,437,631 5,277,195

266,790
216,956
16,772
103,657
67,815
105,036
133,628
363,127
98,248
278,222 1,318,274
440,473 1,074,547 2,358,343
803,262
266,323
121,486
406,934 1,560,667
564,441 1,561,381
82,488
137,011
846,696
834,753
307,027
198,443
275,928
306,047
297,969
951,724 3,033,283
844,644 2,438,046 5,447,135
72,891
490,845
158,276
167,322
566,442
961,179
198,487
530,613 1,581,186 4,831,341
766,323
2,000,502 5,396,302 7,767,755
72,705
65,511
18,763
34,613
30,036
13,003
123,069
4,621,876 13,026,284 19,482,442 2,281,515 1,482,577 3,790,210 13,573,761

186,395
242,943
368,956
795,382
663,606 1,235,977
243,908
579,851
1,321,857 2,536,457
277,790
711,738
2,734,874 4,685,107
103,783
97,760
6,339,480 11,873,863

3,173,575 12,725,167 7,738,950 4,997,053 2,940,661 6,740,960
22,651
420,305
114,655
13,992
3,008
238,087

6,168,183 15,941,658 18,714,011 3,973,443 3,140,633 4,917,183 17,829,926
536,361
6,030
12,666
27,013
765,603
457,029
73,541

10,645,896 15,221,593
65,581
293,918

304,711
600,621
168,369
228,031
476,935
44,698
618,563
4,302
2,497,852

167
47
44
891
3,215
19
8

6,458
130
454
8,299
15,903
2,680
1,638

1,239
62
17
2,113
5,084
5,373
60

2,577
68
116
2,819
9,586
4,341
541

1,207
5
17
907
2,212
706
11

5,235
134
299
8,207
6,825
3,196
48

4,428
328
209
5,502
18,076
11,225
300

15,064
134
464
14,413
16,325
26,721
305

10,762
113
95
17,036
98,591
25,446
401

1,850
IS
11
1,730
3,238
5,035
175

577
74
28
1,255
1,831
234
16

4,080
141
121
2,678
5,179
3,302
105

16,931
138
80
32,366
18,723
7,570
118

4,805
202
157
4,750
12,500
3,906
306

10,905
302
462
15,354
14,079
20,950
251

2,039

23,942

2,799

129,016

2,916

24,169

10,388

21,807

39,390

3,037

1,496

7,577

17,714

12,432

20,386

787
521
1,072
550
354
50
2,055
11,824
4,318
20,797
3,629
7,160
1,505
24,058
333
66
144
2,337
26,935
36,704
15,428
30,373
5,784
62,248
3,193,389 13,108,927 8,207,500 5,305,794 2,991,031 6,869,674

811
544
3,355
47
135
113
427
26,243
162,845
394,642
15,095
1,726
10,821
62,978
7,630
52,799
125,457
30,612
166
23,693
14,978
14,453
15,346
27,595
40,000
57,926
49,824
97,154
6,768,278 16,376,524 20,062,814 4,054,771 3,176,183 5,029,801 18,807,552

2,540,760 10,009,596 6,204,485 3,702,039 2,189,538 4,694,848
3,035
331,777
80,049
7,940
152,970
960
176,689
250,345
98,536
86,951
97,569
9,587
17,814
23,066
69,464
14,466
2,114
38,109
15,351
41,530
17,501
144,899
4,481
129,438
3,845
6,177
4,109
280
5,450
7,311
21,755
7,205
15,444
23,681
39,169
19,820
78,115
110,216
40,780
112,674
199,979
87,407
2,565
5,409
15,991
7,088
3,275
576
137,213
40,352
91,248
29,290
184,157
11,927
6,315
16
121,861
24
121
51
25
1,659
17
9
90
27,666
64,716
12,687
26, ¥59
65,133
99,093
7,685
6,759
4,435
30,551
31,879
6,584
140
4,91S
1,363
1,592
620
2,058
820,632
394,205
317,020
562,957
93,067
819,060
2,905,923 11,872,649 7,927,063 4,668,800 2,753,473 5,872,061
237,558
997,613
279,637
636,986
287,466 1,236,278
997,314
279,620
837,541
287,422 1,835,824
636,870
7,375
6,433
4,183
4,472
490
8,920
118,966
505,136
117,695
236,600
96,267
407,063
10,602
40,810
11,019
30,711
6,147
21,860
129,985
535,047
123,842
258,540
106,769
447,082
167,461
700,431
155,795
378,446
130,789
549,731

4,168,382
232,483
231,465
65,877
31,392
20,769
21,147
97,847
8,018
98,838
57
42
41,735
30,830
1,755
1,130,131
6,180,788
587,510
587,301
5,727
234,794
12,703
247,497
340,013

95,149
7,592

253,758
29,897

44,434
17,831

105,944
05,718

43,862
12,238

195,843
88,646

153,604
22,097

10,184,625 13,713,029 2,880,583 2,547,057 3,170,539 13,418,777
30,352
354,577
552
7,660
16,541
403,174
176,463
33,867
24,829
65,278
91,787
126,003
51,860
134,634
14,289
18,446
17,118
53,850
254,634
283,463
62,735
17,844
106,193
589,195
12,506
23,170
4,528
2,231
4,973
8,412
73,466
11,519
8,267
14,206
63,243
44,802
814,745
423,436
133,976
39,373
81,785
291,502
7,385
1,441
2,678
3,173
9,648
3,877
356,472
542,675
58,782
21,578
116,284
369,252
22,866
761,481
30
121
3,148
67,918
1,285
269
66
188
6,767
2,266
447,672
90,942
39,081
27,494
30,857
38,324
94,296
111,946
14,904
8,447
19,001
182,568
2,117
5,035
797
786
1,670
2,485
1,711,549 1,691,199
371,541
250,831
505 608
745,934
13,614,030 18,248,024 3,619,936 3,018,157 4,183,271 16,397,052
2,761,694 1,814,790
434,835
158,026
846,530 2,410,500
2,761,230 1,814,695
434,824
157,998
846,409 2,410,420
7,185
4,979
1,086
2,080
3,081
6,276
1,103,794
601,321
174,382
64,837
345,768
995,230
150,721
13,318
3,521
22,131
46,860
131,810
1,854,515
' 614,639 196,513
60,350
392,628 1,127,048
1,507,179 1,800,151
238,322
09,660
453,902 1,283,452
772,619
47,394

960,541
65,276

73,950
13,173

38,395
1,406

182,804
20,257

526,764
108,852

744
1,149
18,697
25,594
22,411
27,756
54,817
73,441
10,847,204 15,726,160
7,639,875
37,6S9
258,542
41,982
136,452
10,223
25,066
148,920
8,196
146,760
186
449
92,664
48,872
14,060
1,026,069
9,635,965
1,211,239
1,211,082
10,498
498,404
56,851
555,255
655,984

10,252,320
32,641
278,090
56,485
229,105
10,444
42,731
260,421
11,898
202,833
827
1,008
158,710
80,210
3,165
1,986,514
13,695,402
2,030,758
2,030,276
14,496
834,657
78,921
913,578
1,117,180

240,450
36,548

442,061
62,613

Table 2. - Corporation inoom tax returns with balance aheets, 1/ 1960, by major industrial groups - Part I, all returns) Part II, returns with net incomei Number of returns, assets and
liabilities, co-piled receipts, compiled daduotions, compiled net profit or net loss, not lnooma or deficit, net operating loaa deduction, Income tax, excess profits tax, total tax,
ooaplled not profit leas total tax, and dividends paid by type of dividend - Continued
PART I. - ALL RETURNS WITH BALANCE SHEETS - Continued

1
2
3*
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
10
20
21
22
23
24
26
26
27
20
20
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
65
66
67
68
59
60
61
62
63

'Money figures in thousands of dollars)
Ma lor industrial orouoe 5/ - Continued
Public utilities
Manufacturing - Continued
Scientific
instruTransMotor
Electrical portation
vehicles Ordnance ments;
Other
Electric
Other
Total
Transpor- Comminloa— and gas
machinery equipment,
and
photo- manufac- public
and
public
except
equipment, accesso- graphio
tation
tion
turing
utilities utilities
utilities
equipment
motor
except
ries
equipment)
watches,
vehicles eleotrical
clocks
1,580
2,983
22,973
1,132
910
1,229
54
1,837
17,060
3,201
9,070

Number of returns with balance sheets 30/
Assets:
865,721
Cash 3JL/
Notes and accounts receivable
1,361,954
Less: Reserve for bad debts
81,870
Inventories
1,882,739
Investments, Government obligations 22/
624,953
Other investments 33/
866,369
Gross capital assets 3J/ (except land)
8,294,697
Less: Reserves
984,946
Land
60,368
Other assets
118,868
Total assets 21/
6,908,144
Liabilities!
Accounts payable
875,401
Bonds, notes, mortgages payable:
Maturity less than 1 year
145,746
Maturity 1 year or more
472,668
Other liabilities
1,010,941
Capital stock, preferred
186,340
Capital stock, common
1,342,766
416,719
Surplus reserves
Surplus and undivided profits £_/
2,510,134
56,561
Less: Defiolt 22/
Total liabilities 36/
6,902,144
Receipts:
10,347,774
Gross sales 2/
60,409
Gross receipts from operations _/
Interest on Government obligations (less amortlzable
bond premium):
7,118
Wholly taxable £/
74
Subject to surtax only 12/
190
Wholly tax-exempt 11/
13,886
Other interest
*
7,687
Rents 12/
12,768
Royalties 12/
461
Excess of net short-term capital gain over net
long-term capital loss 14/
14,669
Excess of net long-term capital gain over net
short-term capital loss 14/
161
Net gain, sales other than capital assets 16/
61,119
Dividends, domestic corporations 16/
12,196
Dividends, foreign corporations 12/
35,481
Other receipts
10,563,663
Total compiled receipts 18/
Deductions:
7,300,930
Cost of goods sold 19/
16,029
Cost of operations _g/
100,517
Compensation of officers
34,230
Rent paid on business property
116,531
Repairs gO/
7,899
Bad debts
24,892
Interest paid
221,730
Taxes paid gl/
6,125
Contributions or gifts gg/
147,623
Depreciation
148
Depletion
276
Amortisation 22/
163,644
Advertising
94,695
Amounts contributed under pension plans, etc. g_/
2,902
Net loss, sales other -han capital assets _5/
915,707
Other deductions
9,151,777
Total oompiled deductions
1,412,006
Compiled net profit or net loos (37 lees 64)
1,411,896
Nat income or deficit g/ (65 less 27)
8,582
Net operating loss deduction £6/
674,194
Income tax 3/
83,907
Excess profits tax _/
658,101
Total tax
753,985
Compiled net profit less total tax (56 less 60)
311,820
Dividends paid:
29,062
Cash and assets other than own stock
ownpp.
stock
ForCorporation's
footnotes, see
25-26

355,466
594,662
5,609
087,734
238,430
281,031
1,374,850
735,645
44,682
141,300
3,217,800
322,784
08,350
183,083
557,117
123,901
523,381
160,070
1,403,607
87,433
3,217,808

Trade
Wholesale
Total
trade

193,496

6,647,410
820,146
32,620
212,631
157,258
1,032,010 43,655
294,009 3,177,566 2,012,168
36,035 14,499,683
830,739
360,447
263,538
1,134,914 23,156
636,326 3,066,297 1,946,905
431,614
4,736
26,404
1,196
8,366
40,670
0,234
11,076
18,648
1,113
16,616 17,393,890
949,733
171,928
770,540
2,136,388
62,933
655,420
926,866 1,908,817
12,067 1,318,191
330,728
372,824
2,969,012
14,372
177,068
116,753 2,163,423 1,447,804
3,240,277
47,624
55,396
521,583
110,462 200,481 8,096,095 4,495,985 1,326,653 2,225,033
4,318,765 109,600
817,368 1,113,466 76,889,320 35,619,393 12,121,161 20,002,802 1,065,964 12,353,064
4,555,692
2,047,506
37,897
358,014
451,389 20,004,080 10,563,299 3,442,816 5,793,233 204,732
1,230,800
272,828
16,877
22,462
79,664
3,050
21,685
44,460
558,977
246,810
1,163,363
25,050
641,338
89,193
447,812
134,326
2,969
69,584 3,394,126 2,279,928
10,267,070 876,081 1,883,374 2,930,726 79,208,972 38,427,273 11,438,361 28,297,413 1,046,925 51,759,462
812,402

2,747,446

1,954,542

183,496

468,363
2,638
56,988
163,610
885,342
241,671
33,704
128,568
225,500 20,912,340
2,049,699
22,893
279,786
318,026 6,915,961
416,223
20,650
122,470 4,272,664
78,640
1,039,738
25,556
395,862
612,876 20,761,309
602,106
26,875
67,838
88,630 1,211,865
4,696,370 118,940
756,720 1,157,854 16,641,023
1,009
68,402
25,582
82,813 1,038,878
10,267,070 276,021 1,883,374 2,830,726 79,208,972

25,074

145,632

321,775

376,501
12,214,673
3,386,867
1,314,519
9,062,043
606,263
10,387,007
874,132
30,427,273

92,187
4,870,300
928,969
204,500
4,337,037
62,967
1,397,441
36,638
11,438,361

222,608
3,519,904 18,403,460 259,034 2,277,714 4,822,701
291,784
7,161
463,961
12,947
309
36,010 30,632,816 18,440,258

680,509

28,899

Total
wholesale

66,249

Commission
merchants
6,839

2,418,046
311,081
8,150,629 808,030
172,649
16,724
7,912,683 180,919
588,416
63,591
1,765,991
234,539
3,804,613
193,090
1,402,793
57,914
302,178
15,700
441,731
42,680
23,798,745 1,775,992

9,213,456 •5,30G,382

543,134

21,998
3,901,443 2,341,094
117,228
394,656
465,346
3,951,430 1,669,761
122,004
11,062,088
1,631,516
68,619
4,590,774 1,988,489 142,810
631,894
42,344
85,103 1,643,990
2,668,448
9,973,665 4,168,561
313,240
7,140,598 221,831
20,826
1,313,715
643,193
31,439
521,809
3,607,026 148,660 18,001,782 7,437,011 516,063
730,782
338,440
51,270
110,064
16,146
28,297,413 1,045,926 51,759,462 23,796,746 1,775,992

66,996
11,143
4,436,047 7,469,691

Other
wholesalers
66,410

4,863,248 13
2,224,666
1,567,767
1,785,679
589,660
3,865,321
511,754
6,921,948
287,170
22,022,763

14
15
16
17
18
19
80
21
22

8,037 148,401,377 74,902,307 3,211,606 71,690,701
2,619,748 1,730,744
735,200
996,544
186,820

23
24

1,188
28
26
1,849
1,730
2,491
10

1,704
62
33
2,648
6,642
2,281
73

28,412
702
1,834
106,102
404,122
9,041
1,020

17,406
648
361
57,182
345,804
5,919
764

4,800
31
48
10,203
27,904
871
24

6,965
16
1,416
37,200
28,903
2,105
231

172
7
16
617
1,511
146
1

20,142
666
677
116,600
229,090
19,261
7,561

8,313
208
339
45,260
62,766
16,274
6,075

999
32
27
7,939
4,781
1,119
772

7,314
236
312
37,311
47,975
14,156
4,303

1,623

8,376

84,820

51,998

4,131

6,720

1,962

95,404

49,939

3,907

63
523
7,638
6,654
614
256
85
594
5,806
243,146
101,517
84,816
54,604
41,865
1,247
4,896
14,301
12,006
2,495
1,485
8,906
76,533
120
6,618
3,971
3,709
604
12,061
26,728
153,864
108,337
10,167
30,010
54,382
21,346
4,047,010 18,649,813 262,423 2,319,466 5,016,589 31,867,186 19,362,030 4,682,270 7,702,018

112
2,208

3,529
20
316
7,226
3,880
5,186
62

32,908
374
124
10,032
5,194
4,169
179

202
1
7
792
110
18

3,466

7,062

2,606,913
369,059
32,363
16,036
69,607
1,666
8,274
89,002
1,676
65,261
38
1,053
11,090
19,661
2,423
232,679
3,676,780
370,230
369,914
16,660
148,813
13,086
161,899
208,331
110,330
3,763

153,696
7,089
201,613
13,441,917 168,401 1,434,689 3,421,080
2,013
18,645 18,749,916 12,606,691 2,319,977
7,056
272,382
202,655
27,810
2,661
48,867
163,333
67,027
793,264
673,981
68,072
600
13,034
34,413
22,714
60,480
45,734
6,603
29,861
39,102
217,428
8,067
13,102
16,408
3,296
8,747
37,792
• 143
3,966
141,906
980,185
452,858
6,590
14,787
16,648
1,422
66,969
61,646 1,861,606
964,480
200,797
426,665
6,332
4,241
2,661
575
3,111
4,163
13,831
12,117
674,968
405,000
36,429
64,660 1,982,695
207,918
4,548
14,809
4
4,681
36,040
282
1
621
84
174
18,434
19,334
132
152
1
65,011
21,966
62,801
76,360
83,667
2,688
87,497
38,732
13,673
267,701
142,503
21,031
3,680
134,419
10,232
2,122
26,660
2,665
541
22
2,976
636,868 2,060,282 1,167,603
400,320
300,849
18,173
721,941
15,360,062 217,405 2,020,113 4,586,683 27,546,486 17,290,431 3,860,548
731,729
299,343
428,886 4,311,688 2,071,599
3,289,751 46,018
731,687
428,853 4,309,665 2,071,238
299,317
3,289,627 46,011
32,768
6,374
40,336
8,362
2,236
1,567
387
833,388
280,548
176,468 1,716,773
124,211
1,370,426
18,303
1,943
36,661
26,174
18,728
2,783
14,824
251,296
282,491
859,562
186,196 1,768,324
139,036
1,621,720 21,006
449,238
160,308
234,690 2,559,376 1,212,037
23,832
1,668,031

39,505
3,742,238
37,390
46,630
6,383
8,148
368,744
688,168
6,916
682,992
21,184
16
16,463
86,021
12,266
479,613
6,224,666
1,477,452
1,476,036
876
591,829
7,352
599,181
878,271

366,453
2,271

800,662
77,048

847,666
16,279

10,072

79,210
b9,339

76,181
18,368

1,639,963
93,219

468,071
11,898

2,106,966
8
7,342,599 3
166,926
4
7,731,764
5
524,885
6
1,581,452 7
3,611,483 8
1,344,879
0
286,478 10
399,051 11
22,028,753 18

25
26
87
88
29
30
31

46,032

11,621
3,602
455
3,147
96,959
61,560
11,268
40,292
74,026
64,562
1,644
62,918
5,360 1,201,162
469,420
68,630
400,798
200,858 162,894,810 77,309,407 4,038,369 73,361,038

33
34
36
36
37

1,313 118,623,778
82,012
1,323,490
4,527 2,610,957
2,681
1,457,388
1,760
338,862
134
228,626
16,587
283,167
18,171
1,260,406
113
64,251
18,737
865,836
41
18,660
1,811
267
1,341,888
446
171,885
396
20,468
21,746 17,119,644
169,940 146,622,210
30,919
6,272,600
30,904
6,271,923
317
65,364
11,008
2,406,963
62
186,709
11,090
2,602,662
19,829
3,670,938

64,978,930 2,963,068 62,015,668
864,681
232,099
622,482
1,134,293
131,663 1,002,640
262,491
23,923
238,668
99,087
3,264
96,823
86,498
6,505
80,993
132,114
8,816
123,499
481,091
19,126
461,966
26,784
2,200
24,676
274,011
13,305
261,526
16,061
590
16,358
446
41
407
332,994
17,686
315,369
60,655
b,646
54,909
6,886
909
6,977
5,864,527 433,356 6,431,178
74,813,141 3,061,014 70,752,127
2,776,266
177,366 2,598,911
2,776,927
177,388 2,598,699
35,624
3,738
31,888
1,062,950
64,125
998,685
88,729
4,985
83,744
1,161,679
69,110 1,088,569
1,624,687 108,246 1,516,348

38
39
40
41
42
43
44
45
46
47
48
49
60
51
62
53
64
56
56
67
68
59
60
61

441,921
122,041

62
63

14,687
2,002

1,134,879
224,804

474,696
130,070

32,976
8,029

Table 2. - Corporation income tax returns with balance sheets, 1/ 1950, by major industrial groups - Part I, all returns; Part II;, returns with net income:

Number of returns, assets and

liabilities, compiled receipts, compiled deductions, compiled net profit or not loss, net income or deficit, net operating loss deduction, income tax, excess profits tax, total tax,
compiled net profit less total tax, and dividends paid by type of dividend - Continued
PART I. - ALL RETURNS WITH BALANCE SHEETS - Continued
(Mnrtav f*lOTiT.auIn T.Virtuennrifl n f rinl Inral

Major
•

-r

*,,„

i n d u s t r i a l g r o u p s 6/ - C o n t i n u e d
Finance.insurance.real

Trade - Continued
Retail

estate.and

Total

l e s s o r s o f real. D r o D e r t y
Finance

finance,
Automotive

Food

"'•TC17477,

Number _f returns with balance sheets 30/
Assets:
Cash 31/

Notes and accounts receivable

Less:

Reserve for bad debts

2,884,958
S,505,876

233,895

Inventories

&, 459,323;

Investments, Government obligations 32/

Other investments 33/

'693,100
1,309., 927,

Gross capital assets 34/ (except land)

1?,.709,521'

Leas:

Reserves

•2,811,032

Land

840,368',

Other assets

11
12

Sytoe

7,062

Eating

dealers
Drug

and

stores

filling

drinking

22,367

and

places

stations

Other

real

not

retail

a l l o c a b l e and

trade

estate,
lessors

B a n k s and
Total
finance

833,390
&0\,OVM

looyoor'

W,a9S.

14
15

13,494

20,093

13,770

151,540

34,016

14,560

11,424

6,602

90,745
48,304

158,161
630,805

189,531

244,406

42,477,698

41,034,904

802,529

622,803

700,178
24,995

843,188

46,104,450
65,151,445

705,064

820/651

62,812,940

53,592,31!)

0,144,306

760,734

470,301'

112,709

17,823

9,912

2,140

122,442

15,1:31)

25,602

•21,457,

1,087

314

17,352

iU6.,017

624,375

Iy418,153.

1862,158

86,550

884,217

88,404

406,927,

110,953

496,306-

-153,11141

1^234,976' 2,418,410";

S«l,008|

71,137,218

69,649,093

218,068

826,795

174,359
839,030

70,125,907
19,879,745

15,731,721
2,375,274

5,839,102

816,137

S,557,633

|«,17Q,WM

125,120
688,686

1,408,186

212,240

697,724

33fy64B

68„238

230,153

203,694

274,992

341,867

4,419,233

421,417

199,574

7,619

46,750

71,123

54,952

88,334

4,650,658

226,643

114,668
040,036

73,697
29,222

120,262
67,663

9
10

210,123
197,878
1,273,266
4,987,484
2 9 8 , 6 2 3 , 9 6 4 1 9 5 , 0 2 6 , 3 4 0 171,-8O0,432 1 0 , 2 4 3 , 8 8 6 1 1 , 5 0 7 , 5 3 0

304,216

32,342

20,460- .

'208,497

205,561

56,400.

34,420

_4i<tB£

Bonds, notes, mortgages payable:

(

7,980,729 2 , 3 6 5 , 4 9 5 1 ,,807,034.
401,5111

802,464

6,951

tB.,708
#79,609

250,5711

25,428

50,959
60,718
38,767
30,2647 5 2 , 6 0 8 2 , 1 6 1 , 1 2 6 2,372,805 2 , 9 3 1 , 8 9 8

396,&&

W/QM

J.22,612

•274,984

402,474

550,883

1,361,973

U9,468

192,680

102,143

46 ,.515

160,809

179,140

197,576

2,021,999

227,626

582,997

177,707

174,562) • HSiMt&tV
3311/^
139,«20

17,839

Maturity 1 year or more

77,:ua

222,716

239,670

203,702

781,200

192,503

247,144

36,402

137,745
70,446

1-44,770

2,429,708

144,481

251,804

232,577

Capital stock, preferred

Capital stock, common
Surplus reserves
Surplus and undivided profits 8g/
Lessi

Deficit 32/

Total liabilities 35/

3,171,429

1,455,440

5,234,339

3,925,734

Maturity less than 1 year

821,858

123,666

365,557

113,223

45,04/5

5,173,601

424,82a

1,534,754

482,267

391,932

705,099

82,796

365,853

32,802

49,724

9,587,830

962,980

3,379,827

906,67^

643,v75.

339,439

34,937

24,603

43,233

36,459

25,028,810

•2,641,856

7,980,729

2,B65,4a&

1,807,034

8 6 , 2 9 8 , 4 0 2 13,310,992 15,598,454
62,266
740,846
69,128

5,040,1137

497^26
r

Gross sales 7/

Gross receipts from operations 8/
Interest on Government obligations

Subject to surtax only _ 0 /

Wholly tax-exempt 11/
Other interest

Rents _g/

Royalties _ _ /
Exoess of net short-term capital gain over net

Excess of net long-term capital gain over net
short-term capital loss _ 4 /

Net gain, sales other than capital assets _5/

34
35

Dividends, domestic corporations _6/

Other receipts

Dividends, foreign corporations 17/
Total compiled receipts _§/

Deductions:
38
39

Cost of goods sold IS/
Cost of operations ! _ /

Compensation of officers

Rent paid on business property

Repairs go/

11,093

567

301
300

IB
65

65,439

2,443

158,937
2,952

10,298
635

2,183

299

5r0flB
167!
f

38,133

5,189

s»

,6,836'

60,320

90,238
631,493

344,020

815,814

561,246

13,941,418

7,919,307

3,686,100

897,613

3,333,692

33,993

65,423

2,646,523

2,361,302

1,210,515

ZC.?., 9 9 5

816,999

212,858

208,003

806,977

730,738

976,941

25,291,240

13,853,375

7,800,946

952,578

4,675,938

98,937
337,951
1,912,701
3,619,542
298,623,964 195,026,340 171,808,432 10,243,886

1,424,580

11,507,530

85,470

15,246

23
24

; ^ee&vOBO
84V-7.*,9Wk,«W

9,082
&73,<609

1,112

704
18
32
6,<Q25.

t8,exa

38
. .
34
18,383

S,,645

_?,209
404

s.
40

2,0T8

,1,307

1,673

R , 5*6

114

69,626
52,903
62,113
26,016
7 5 2 , 6 0 8 2 , 1 6 1 , 1 2 6 2,372,805 2 , 9 3 1 , 8 9 8

238

SBQ
13

12
24

823

5-08

6,349

8,202

87
10
800

145,272

100,716

7,763,106

1,595,558

637,307

794,275

53,878

863,319

729

736

1,328,996

827,715

4,602

14,383

170,771

160,421

158,796

114

150,159
2,554,118

145,512

514
1,798

2,073,869

403
380,431

69,724

27
28

6,_2

4,819

209,584
4,088,996

25
26

6,970

12,8B6

18,197

2,220,424

136,819

116,393

3,440

14,636

181

601

026

1,025

197,461

65,970

2,073

145

63,641

113

116

149)

323

12,147

7,813

3,107

533

3,480

4,&i9

7,332

333,958

210,408

58,299

10,693

131,564

3,314
16,885

2,473

3,174

14,812

648,722

3,489

45,926

J
1,667

«,57Bj
1

328

391'

-47

.8,84.6

ieo

12,343
7,B89

7,024
2

1,272

4,659

3,781

1,074

1,081

999

436,715

66,721

2,541

2,068

6,047

989,935

691,175

24
50
5
89
207
U
72,326
63,124
14,123
04,317
13,776
129,650
106,166
26,552
178,418
86,232
678,610
6 8 , 0 5 3 , 6 3 4 13,415,117 IA, 9 5 6 , 0 0 7 6,224,774 3 , 0 9 2 , 3 0 5 1 7 , 4 2 7 , 7 8 6 1,605,288 1 , 9 9 7 , 1 7 2 4,543,564 4 , 8 7 2 , 6 3 1 7 , 4 5 1 , 7 6 9

53,968

49,918

10,056

1,969

657
1,478

4 8 , 8 3 6 , 8 9 4 10,763,867 1 0 , 2 3 2 , 7 6 9 3 , 2 9 8 , 8 3 5 1 , 8 9 2 , 6 2 3 1 3 , 8 4 6 , 0 6 2 1 , 0 1 4 , 9 1 7 1 , 0 6 0 , 1 6 3 3,396,612 3 , 3 3 0 , 7 6 6 5 , 7 0 8 , 9 5 4
50,389
57,233
3,267
29,342
24,032
214,497
33,909
28,110
13,900
16,230
411,676
177,300
163,447
73,473
140,151
402,327
38,942
120,873
154,316
124,649
83,106
1,323,217
90,263
67,142
51,638
92,128
26,034
118,416
300,244
261,010
70,703
1,127,755
118,319
17,907
21,433
6,345
21,817
18,445
13,709
8,379
34,174
61,594
219,432
43,262

291,694

128,752

344
42,027

18,233,017

6,771,867

4,085,641

108,541

81,704

28,296

24,054

g6/920,237

638,284

35,578

42,645

1,336,458

1,129,326

68,875

409,219

61,534

52,709

12,829

24,064

23,941

24,178

3,536

159,147

26,818

22,490

2,890

4,802

26,543

14,141

18,664

26,174

509

757

16,894

20,171

14,473

269,943

251,995

181,760

10,065

13,128

31,316

3,674

6,235

'13,208

14,930

16,444

639,501

358,672

927
15,812
69,626

43
44

58,452

42,358

46,244

59,965

74,067

1,083,564
862,395

53,611
200,413
28,354

28,807

Taxes paid 2_/

695,248

95,232

224,194,

Contributions or gifts 22/

47
48

Depreciation

270,604

87,260

36,287

111,709

20,837

205,176

155,254

14,416

34,572

4,596

10,562

3,683

2,273

675

2,551

2,272

2,695

23,762

14,696

10,577

1,671

2,141

91,088

121,923

49,625

15,722

45,476

58,402

666,376

100,967

76,745

11,317

10,625

1,260

144

39,296
933

53,704

Depletion

21,977
6

7,120
93,814

640

532,525

439

44,074

10,304

174

9,751

Amortization 23/

1,192

164

346

118

171

404

946,224
103,839

72,971
17,703

91
355,665

29
266

135,236

87,171
1,417

164,077

20,230
1,833

16,820
1,127

27,159
1,630

67,895

62,670

3,088

7,601

115,836
91,796

56
71,493

11,284

1,284
1,751,726

249
297,846

922
676,169

698
536,143

1,242
825,845

2,299

67,524

Advertising
Amounts contributed under pension plans, etc. 24/

Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit or net loss (37 less 54)
Net income or deficit g/ (66 less 27)
Net operating loss deduction 25/
Income tax 3/
Excess profits tax 4/
1
Totsl tax
1 Compiled net profit less total tax (56 less 60)
Dividends paid:
1
1

34,224
392,, 7 3 2
,'28,165

436

13,166

62
63

6,781

3,396

134,609

58
59
80
61

1,007,777

17,696

7,020

Interest paid .

1,461,379

990,948

204,923

39,362

1,1S1
• 11
2,457

Bad debts

54
55

3,137,228

1?,8«?

38, eta

73,

307,040

1k_a,311
12,693

92*29?

2 , S D 2 , 9 3 9 J8,, 9 3 3 , 4 3 0 J„489,9t39; 1 , 9 1 4 , 0 0 9 4,427,o-57 4,677,655 7 » 2 0 0 , 6 6 8
148,158
326,616
93,671
10,443'
5B,347
43,687
£5,910

•ft^ee*
'• 8S,7S&
<r?i

127,655

3,191,,898

long-term capital loss 14/
32

293,571

*ac20r»

(less smortlzable

Wholly taxable g/

2a ,

800,557

«6i,~a

bond premium):
2*

4,829,472
16,508,430
233,641,826 161,324,217 169,238,204
71,514
1,270,194
1,808,301

Receipts:

92,746,614

81,573
600,521

92,409

528,727

14,396

16,120
49,939

920,307

.3,266,1911

19,947

607,910

_»Bj__4

422,247

Accounts payable

622,053

815,982 1 , 0 2 1 , 8 8 4
36,675
37,625

£5,336

83-055

251,690•03,327

25,070

601,398

#23,540

24,f,82j
71,645 .

617.,, 3 3 9
240,4?.G

101,307

19
21 1
22

other

12,612

2,556,219

2,641,866

Other liabilities

companies

4,662

5,126

£70,673

and

than investment
companies
banks

other

£5,458
53,164

894,852

25,028,, SI 9

Total assets 35/

901,876!
1,733,959'

863,687
232,643

Liabilities:
13

agencies

trust

o f real
property

hardware

Holding

Credit

insurance,

Trade

Building
materials

and

2
4

merchandise

niture
' Apparel F u r and
and
house
acoeasa- furnish- '
lngs
rtes
'"IKSoi -'-•I677B5

General

' tfotal
W*ail 1

Cash and assets other than own stock
Corporation's own stock
tfor footnotoiBi»

use p p .

67,811
3,368

4,861
776

•

640

4,360
2,206

981,169
7,782,931
662,354
1,632,187
3,146,463 1 , 0 0 6 , 1 4 6
64,840,230 13,096,088 1 4 , 7 1 7 , 1 5 5 6,036,634 2 , 9 5 4 , 0 3 6 1 6 , 5 8 7 , 8 6 5 1 , 4 7 6 , 8 3 1 1,966,378 4,290,161 4 , 7 1 6 , 0 9 2 7 , 1 6 8 , 8 3 9 2 7 / 1 2 . 3 8 4 , 4 3 0
156,539
282,930
30,794
5,848,587
830,931
263,393
138,269
48,467
3,213,404
320,029 1 , 2 3 7 , 8 5 2
168,140
6,639,003
30,770
253,353
166,524
282,892
188,124
839,897
3,213,104
319,964 1 , 2 3 7 , 7 8 0
138,237
46,455
3,212
4,399
4,139
37,624
2,056
3,353
3,698
4,624
609
2,163
26,601
1,567
301,754
506,955
48,024
17,468
105,234
1,238,769
132,071
70,797
84,691
56,841
1,187,677
17,360
1,838
24,403
42,474
1,691
89,938
9,650
523
650
6,717
2,902
7,042
40,3C7
50,662
326,167
72,488
17,891
18,118
551,429
90,408
69,833
1,328,707
141,721
112,276
1,228,044
87,607
513,774
116,658
686,423
30,666
12,876
178,308
162,986
96,708
1,084,697
170,654
4,620,543

10,333,648

614,668
86,007

66,1971

301,966

41,342

12,4781

6,566

7,391

15,418

100,702

4,324

38,104

13,931
1,307

12,467
1,336

37,011
9,279

26,464
5,234

45,216
8,727

1,740,471
114,4K9

66,851
19,419
2,028,493
4,1G7,U61
2,004,006
2,41)4,647
10,543
G60,!J44

21,744
682,288
1,922,518
1,251,108
74,973

46,608
56,612

21
21,368
6,691

668
1,536

50
52
63
54

13,626

2,125

1,354,617
2,738,753

457,816

3,311
114,709

940,091
395,567

307,819
821,506

1,201,376
1,896

395,164

819,708

55
56

5,684

1,236

405,604
14,763
420,367
926,621

154,109
5,623
159,732
236,836

90,420

661
91,081
730,425

408,288

107,817
6,284j

1,346,888

51,776

60
61

726,617

16,089

Tel,!• 8. - Corporation Inooaa tax rolurna with balanoa sheets, 1 / 1060, hy major Indualrlal groups - Port I, all returns) P M t II, roturno with net incomei
Number of rotiyno, aaaeta and
M a i . m t i a a , no-piiad raooipta, oom|.iio<i doduotlons, oomplled net p r o m or not loss, not lnooma or doflolt, nst operating loss iioduntion, inooma t»«, axosss |,rorito taa, total tan,
oo^>lled

not profit laaa total

tax, and dividends paid by type of dividem) - Contlnuod

FART I. - ALL RETURNS WITH HAUMlK .iilUKT.'l - Oontlnuod

^Irtaf

__iey

flgUfflS 1 J L L"°"»8"»I Y*J,""f ' \*&
.T - X C T T A
_______
Major InduBtrlal iproups 6/ - continued
lastiiim of real property - Continued
Tlenl
atate
Lessors
Hole I a
of real
nut otllel
Total
property,
ln,l(/l,lK
sarvl.ie
of real
exaept
property
buildings
illior tlun
buildings
103,1178

Niunljer of ) s turns with l.alii
Assotsi
Cash j}/
Notes and aooounts receivable
Less i
Reserve for had debts
Invontorlos
Investments, Government ol)l Igat lontl _ _ /
Othar Investments 3Jl/
i.rono ospltal asstta _ _ / (except

land)

46,781)
1584,037
148,208
200
711(1,1130 80,813,438 3,600,738 8,068

Total assets _ _ /
I.UI.II II.IOH)
Aooounts payable
Uonds, note*, mortgagea payatilei
Maturity lass than 1 year
Maturity 1 year or mora
Other liabilities
Capital stock, preferred
Capital stook, aoinmon
prnrlt.B 3(1/

l.aam
Deficit 3 2 /
Total llabillttaa _ _ /
Receiptsi
(iruBB soles
(imaa renelptB from operations _ /
Interest, o n ilnvMi-niiioiil. ol,M(/ol.lona

aapltal

loi.K-term capital loss . _ /
K X O B B B of nnt liiiiK-tenn nnpltal

K«ln over net

67,7(10
10,71.(1
11)0
(1,1)02
280,443

ranalpts
Total uoraplle.i rminlpta Ifl/

lindiintlnnai
Coat of K»"d« Mold JJ/
li.ist of operations U y
Compensation of iiffluars
limit, pnld on business property

2,3(10
31,2

Advertising
Amounts oontrUnited under pension plana, e t a . _ _ /
Net, I.IBB, solas other Mian iinplt.nl naaeta ! £ /
Other ilMllletlmiB
Tiital ,',,,iii|,l la.l rleilii.itlona
(37 lass 1,4)

Net Inurane or doflolt )'J (lib lass 87)
Nat operating loan i1edii.il.lon JJj/

lllvldaids paldi
Cash and asseta other

for footnotes,

'i/

ee p p . 21,-211.

77,3110

140 ,004
1,040 303
706 ,710
30(1 ,8,03
(111,
,08,7
1,013,000

17,181
4,600,870

432,1)14

460,000
0,876
68,800
1,483,012
143,771
366
714

460,010
(1,060
1,0,6.10
1,401,061
141,200

1,11(11
2,4111

2.11(1
070

07
.. .'10

1,303,1103 41111,30
064,804
7,41)1,003

87,408
1,160,388

34,006

117,763

012,00(1 1111,300

5,400

8.300

3,063

118,1143
,6113,6111

18,148
340,01,0

316,441
10,1,71)4 1111,401
1,178,834 8,131,1140 877,31,6

Nature

Other

of
business
not
ullooa-

Borvexaept
ntlon
pl(lturea
4,004

840,341)
171,644
I), IIIII
3011,270
04,077
480 ,000
1,831 ,344
1,66 ,867
,031
,437
,043
80,046

04,307 41,31)8,
1117,330
117,610
84,370
8111,(127
11,023
40,1113
611,3111)
803,01)11
114,101
3,8110
110,8(13
460,01)7

AimiSB-

laneoue
Motion
repair
Borvloea, p lu I lire H
hand
tradea

8,11,417
40,107
081
111,044
3,6611
61,460
17,143
313,804
874,101
703,638
8.04,341
04,(177
44,033
28,11(10
07,430
13,8116
1,6113,61(1 34(1,060

17,H,I
6,001,11)3

1,210,111,
80,1.31

2,037
266,073
2,010
20,700
7,600,036

1,707
200,400
2,301
in.flB..

Lai (68 leaa BO)

0,400
024

(,,676
M 7
1(1,144

7,0:111, (Jin,

3(1,(17(1
184

7,084
»«4,M7

(1,083
284,070

8,11.1,1118

8,118,1111

81,11,Villi

on
4(1,337
1,71)6, OH I
4,1137
3,360

(• 32,41.1)
84,0811

00,000
10,1.41
708
8,4110
1,03(1
0,506
08(1
(,,74(1

11,1 13

8,470
310
287,476
401,030
60,740
60,710
600
111,000
(141
111,1)47
311,703
81,314
1,170

4,173
1011
174

6,312
110
1113

8,080
143,073
180,4011

13,867
817,8(11
16,701
1,304

870
7,681

311,003

30(1,11811
811,0411

6,11111
30,1167

1,1118
1111,763
3,0611,07(1

(1,007
14,3113
130,632
303,046 0,340,741

13, mm

18,1141

42,487
141,

18,884
301

110,031

80
111, (Kill 1(1,118(1
81,1,011
111,038
1,184
014
4,(133,.'1(18
4,378,087
1711,1,011 K_/I),1U4,IU(I 1^/4,708,876
2,330,700
40,1141,
8,30(1,1,811
8,8711,860
;ill,,-|',)ll
8,337,0111)
8,480
3,122
1,720
817,747
10,411
830,763
ll,Kili
80,7117

470
17
30

84,21)8

2,049
2,112
31,7
101,31,1

097

than own stook

Corporation's own atook

103,068

33,41,6
1)6,(130
8,061
64 ,418

I0,07T "

11,00}'., 737
271,431,
70,1,14,4(10

71,023,137
40,1011

4,'l,l,(IO 8JJ/120,402
gfl/81, 06(1
48,1)43
1,0,0114
(I,M1'7
1,740
2,1)011
1,11
6,7(111
11,207
lll'il
!),l)«]
10,111111
7,781)
1(14,93(1
173,1.81
7,162
1,600
8,3211
307

Interest paid
Taxes paid £ 1 /
(liintrtliutlona or girts _ 8 /
lloproillatlon
Ilepletlon
Amortisation g_/

1 Ii.l0i°e tax
h.nooo profits t.a> _ /
Total tax
Compiled net profit lass total

408,8113 1,803,000

10,414

106,670
4H,BBfl
430,30.1
2.8,478 1,810,066
33,380
1 111,300
008,1)38
8.11,011) 10,007,424 1,684,070 1,710,077
1,141,432
1.88,1176
00,700
7UU,381
(1(1,4(17
163,040
70,11)0
264,374
31,702
:il,8,0llll
111,(11.4
146,310
333,(1611
833,U73
107,431
3,43(1,1 10 1,378,000 1,670,4011
33,1)43
0,207
846,590
10,317
33,000
281,704
301,702
647,88(1
147,1.711
3,7110,814
714,014 2,070,761
10(1,440
42,302
16,4111
1,183,100
318,807
408,036
066,100 I
700,(130 80,813,432 3,000,738 8,068,603 1,1113,1100

12,041

Impairs _ Q /
hu.i debts

not profit or not loas

o,74B

6,600

48,200
17, Bill)
70,01,(1,(170
81,164
1,102,0114
11,814
(1,1115,11)0
21)6,044
711,717,(130

1), 111,11

gain over net

lilvldonda, foreign Mur|K,rat1<.nB J j /

Compiled

428,708
210,806
07,106
30,840
102,008
70,703
883,013
61,233
I,400,498

(1,(110
1)1)7
2,44(1
10,004
I!, 3 M )
111
003

nlmrl.-Lanii imp! Lai lona j i /
Net (/aln, M B I O O other than napltal assets _ • /
lllvldorido, domestlo n.irporutlrinn 1 " /
Otlror

400,(1211
(14,(101
4(1,5611

and
garages

MID Bl-

i.lo

r,,inc,

170,011 47,011

03,686
8,7,847
411,11110
611,121
81 , HOI

0,31.') I 10,1100 01,4711
4(16,1101) 118,787
11,667
1611,1176 60,764
1(1,000
13,1130
l,lib0
•111,11111
31,31111
337,301! 173,6311
",063
I ,030
73,348
IK) 1,000 107,061)
37,000
11,100
'.ni,313 68,179
131,(1011 ',174,043 878,873

117,880
84,8114
11,4,380
1,0,607
460,821)

08,06!
888,874

017,100

1111,1111)711,010
1116,63(1 1,780,600

"47B0T

70,418
35,036
I 15,061 76,336
0116
5,404
1,071
88,854
10,017
10,310
80,71)6
86,300
18,667
311,813 71,4111,
41,761
444,801) 8811,001 138,043
84,0111
101,800
83,11111
01), 34(1 80,413
I7,8i!g
811,0110
10,660
6711,873 4!,u,286 31,0,001

00,043

117,67U
111,11111,
61 ,01)1!
30,734
10,13(1
107,707
0,070
10h,634
1811,326
360,001
04,048
811,01)7

(lass mnortlaali

Interest,

Itentw l&/
lloyalttas _ _ /
Kxnnsa of net short-term

3(11,318

'jj

IJOIUI premium) i
Wholly taxahla _ /
ilulijaol to surtax only _fl/
Wliolly tax-exempt l y
Other

47,034

ill 3
1,0)4,001
iw,067
1,040,11111
1)4,708 1,084
14, 1(11
81
1)80
67(
1)4,810
8,7(l.'l,660
81 l,U4fl
1,0411
13,3110,1171) 3,420,000
6,661
3,683,320
487,461 2,804
4,11)3,003
244,017
737

Lassi
Reserves
Land
Othor assats

Surplus reserves
Surplus anil undivided

"4,TflT

lus1ne»B

servloos

Automotive
repair
eorvlooB

4,242
266,050
11.11,1)113
187,0311
11,413
31)6,0(11'
462,07b
(I, Kl 8
4Oh,n40
741
311
87,33;
3,033
34,1)1)1
1,000,181
2,047,1,7(1
7011,0(14
7011,403
88,770
836, Ilb3
11,21(7
844,1)40
404,164
188,801
11,084

700,088
4,030,08.0
0,441
430,200
324,3311
0,207
2,103
186,071
10,020
8.011
311,1180
77,00(1
31,083
832,770
7,.106
880
348,1,70
13,1311
38,11113
(173
4
1,1)80
1,67,606
78
33,303
404

309
11

1,
8,600

15
660

3,(100

I }!ll, B O O
387

4,112
400

111,1164
I,.11(111

11,71

8,880

0,037

873
61,1,
1,811(1
6,402,
18
170
11,6611
18,040
1,1,06,1101
1,801,808

660
0,!T,4

804,778
311,072
31,880
00,780.
68,BOB
8,500

1,174

30,1)41
011,081
1,4711
113,488
864
114
86,403
760

2,8,8.6
7,371)
1,111111
467,061)
38,1)61 8,1114,181)
101,,(1117 11,7111,6118 1,408,1177
00,401,
6011,1411
1.10,1611
00,400
607,1)110
1.37,11114
1,0111
14,011(1
8,3111
.10,8.10
880,1(13
1)4,787
1,344
11,661
1,478
4(1,1,113
8,:ib,734
60,100
01,1)1)0

338,411

114,1(33 170,300
14,1,11
1,(1(111

67,1148

1(18,104
(161 ,843

11,1134
8,331

1,01111
4,174
1104

10,7110

1,808

1,163

(1,(100

18
46

'/mi
.1,471
4113

70
6,713

4,1170
407,01

184,11111

04,3111
130,11114

118,037
184,400

88,873

17,47(1

31,11811
6,4118
1140

6,811,
1, 1118
710
(11)11

43,00

10,488
3,308
6,646
34,804
1,138
61,660
190
00

18,606
4,001
6,08b
30,343

]4,7M7
86,691
1,(1114
8,111,8

1,030

3,;i8U
41,708
6,1116

Kill

,3113,6113

48,800

88,81)7
36,(174

,10
07

840
1138
00 1,071
18,401
1 ,8.80
U77
16
110
17
Ii, 1)117
14,000
16,061
3,0117
44,11112
1,078
8,1111,404 1,1)8(1,1100 080,77; 708,1117 110,016

,834,7311
140, Kill

81,644
71,3

61111

1,801

3
480
10,4111)
70
710

1,841)
;io,iiiio

113,406

84,136
1,660
mill
360,606
1,447,11114
67,1)71
67,06(1
1,1103

106
4

1,41,7

1,487
00,808
07
IB
16,847
19,003
1,180
680,738
,830,783
1112,000
I (IP,,700
8,731,
(II ,380
4,1x1V
116,333
1)7, -,87
43,808
2,1(11)

048
8,30

4,4118
10,081
20(1

34,800

r
10
3,600
104
804
00,131
370,077
80,378
80,378
7B8
0,P(ll,
:i'.ir,
11,001
111,774
0,601!
0,171)

6,840
113
4,001

38,01)0
3(1,006
411,88(1
1,086,1106 874,111,0 877,701
37,1108
86,111)1) 64,6110
1I|,7.'I3

8.3,731,

80,0111

17,883
8,4(111
111,1117
411,4011
1,843
(18,0111
I!

10,11 I
11117
6,370
84,703

11,34(1
8,7611
8,1140
12,040

1,430
64,1,(111
8,741
7,411(1
301
143
6111
3711,114
40,1111
278,064 1,7117,0011
1811,710
18,1110
1811,71)1)
18,010
3,100
603
61,341
6,600
703
300
1)8,104
6,0011
77,014
0,011
8,4711

1,6,633
1,881

4(1,414
18,074
0,417
1 ,1163
1 ,003
73.1
1,076
8,11(10
111'
4,0110

300
I ,847
111,11411
811,0011
186
34
101
10.1
38
I III
till
14,6113
16,014
6111
3,303
1118
1,008
070
1,118
81,1011
140,61111 8111,374
6114,7114 000,(101, 101,614
0,1,01
41,111111 110,088
,16,(166
11,41,0
41,11111
1,111,0
8,380
1,077
21,01,:
4,1110
10,81111
7111
1 37
1,800
4,317
88,4311
17,4011
4,1114
111,660
111,683
10,634

8,877

11,014

4,874

1,404

118

Table 2. - Corporation income tax returns with balance sheets, 1/ 1950, by major industrial groups - Part I, all returns; Part II, returns with net income: Number of returns, assets and
liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating loss deduction, income tax, excess profits tax, total tax,
compiled net profit less total tax, and dividends paid by type of dividend - Continued
^t
PART II. - RETURNS WITH NET INCOME 2/
(Money figures in thousands of dollars)
M«t,vr In/lnn+.Tlfll crrnimn 5/

1 Number of returns with balance sheets 30/
Assets:
Cash 31/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Lnvesianents, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
Less: Reserves
Land
Other assets
T Total assets 35/
Liabilities:
13
Accounts payable
Bonds, notes, mortgages payable:
14
Maturity less than 1 year
15
Maturity 1 year or more
16
Other liabilities
17
Capital stock, preferred
18
Capital stock, common
19
Surplus reserves
20
Surplus and undivided profits 36/
21
Less: Deficit 37/
22
Total liabilities 35/
Receipts:
23
Gross sales 7/
24
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
25
Wholly taxable _/
26
Subject to surtax only 2S/
27
Wholly tax-exempt 11/
28
Other intereet
29
Rents ig/
30
Royalties _3/
31
Excess of net short-term capital gain over net
long-term capital loss 14/
32
Excess of net long-term capital gain over net
short-term capital loss 14/
33
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
34
35
Dividends, foreign corporations 17/
36
Other receipts
37
Total compiled receipts 18/
Deductions:
38
Cost of goods sold _§/
39
Cost of operations 19/
40
Compensation of officers
41
Rent paid on business property
42
Repairs 20/
43
Bad
debtspaid
44
Interest
45
Taxes paid 2j/
46
Contributions or gifts 22/
Depreciation
47
48
Depletion
49
Amortization 23/
50
Advertising
51
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets _§/
62
Other deductions
53
Total compiled deductions
54
55 Compiled net profit (37 less 54)
56 Net inoome g/ (55 less 27)
57 Net operating loss deduction 26/
58 Income tax 3/
59 Excess profits tax 4/
60
Total tax
61 Compiled net profit less total tax (55 less 60)
Dividends paid:
62
Cash and assets other than own stock
63 1 Corporation's own stock
2
3
4
6
6
7
8
9
10
11
12

For footnotes, see pp. 25-26*

Manuiacturlng
Mining and quarrying
Agriculture, forestry, and fishery
Nbnme—
Crude
Total
BitumiFarms
Total
petroleum tallic
agriculFood and
Total
Anthranous
All
and
mining
Metal
and natu- mining Construc- manufac- Beverages kindred
ture,
cite
coal and
industrial
agricul- Forestry Fishery
and
tion
mining mining
ral gas
forestry,
products
turing
lignite
groups
tural
quarryproduc- quarryand
mining
services
ing
ing
tion
fishery
16,905
76,860
1,723
6,888
1,193
2,185
1,023
197
97
400,914
4,169
173
180
4,695
4,522
69,316,127
160,641
149,203
106,384,908
182,543
168,191
1,536,307
1,623
1,517
51,593,191
291,908
281,596
108,648,949
126,348
135,467
93,968,764
157,091
148,960
192,817,492 1,211,123 1,156,114
69,408,469
476,385
495,552
280,420
266,808
8,388,105
11,720,118
44,229
41,807
571,892,878 1,966,247 1,861,125

2,126
932,518
227,701
9,312
10,728
3,624 1,187,199 251,874
896
87
9,082
19
585,052
150,707
7,877 2,436
870,981
336,154
6,617
2,502
4,065 4,066 1,185,474 235,592
36,615 18,394 8,362,018 1,496,316
927,097
13,264
5,903 4,065,337
90,062
8,099
12,445
1,167
1,005
215,297
66,280
1,417
75,725 29,397 9,354,182 1,844,730

381,296 102,829 600,027
194,823
25,869
522,875 115,772 2,255,739
36,312
260,366
2,385 2,365
13,278
2,574
862
485,728
250,965 63,982
96,677
22,721
300,953 56,329
124,156
27,652
149,893
198,870
557,824 71,781
323,556
121,407
435,838 1,657,310 4,083,249 689,305 1,310,743
213,950. 756,384 1,843,500 324,406
570,863
70,253
39,364 23,631
15,797
3,171
35,376
72,330 19,791
153,701
21,520
479,678 1,850,154 4,362,971 816,649 4,739,762

784,645

13,659,708
113,245
111,310
175,478
56,807,721
154,200
267,834,659
125,707
110,210
32,681
13,774,754
34,580
72,635,231
628,687
593,895
115,208
11,757,441
113,650
501,573
547,334
120,442,610
2,896,323
55,272
32,617
571,892,878 1,966,247 1,861,125

1,273
165,772
21,723
662
52,546
17,613
3,665 1,236,058
698,983
193,723
14,304
1,193
47,340
1,723
176
234,529
7,466 1,919,538 433,790
27,326
57,834
483
1,075
308,327
973,468
21,422 12,817 4,314,227
34,611
21,683
972
204,870
75,725 29,397 9,354,182 1,844,730

4,003,720
102,737
706,272
11,287,132
444,232 1,062,822
14,283,335
263,825
760,620
6,341,729
139,598
697,331
27,356,614
354,433 2,065,578
6,250,219
84,961
425,077
55,117,864 1,475,037 3,913,265
398,080
8,700
29,300
136,397,776 3,257,791 10,386,310

14
15
16
17
18
19
20
21
22

350,857,683 1,385,799 1,348,456
319,202
337,582
58,449,687

18,832 18,511 6,262,443 1,146,891 301,461 1,764,278 2,301,900 747,913 451,195 201,628,569 5,051,881 27,060,150
624,139 65,767 9,113,380
3,388,825
13,821
126,815
992,075
32,029 56,185 213,956
5,124 13,256

23
24

27,877,077

247,041

230,462

13,875

2,704

401,668

2,739
35
211
5,743
7,652
24,876
650

687
35
29
1,289
2,330
1,203
12

1,977
41
249
4,233
21,525
1,458
393

139,075
2,592
3,744
168,918
266,563
151,174
6,079

1,828
32
114
3,088
2,953
1,205
278

5,285
158
387
14,726
17,990
6,372
1,095

25
26
27
28
29
30
31

51,727

3,330

797

10,461

32,677

4,462

21,116

374,059

4,073

22,480

305
1,252
2,196
11,210
560
1,965
245
2,851
56
25
4
392
42
41
96,109
26,873 10,271
9,801
49,056
1,109
11,760
916,474
5,460
24,229
3
3,896
2,195
17
1,646
38
4,380
478,692
2,996
37,060
680
256
61,389
8,465
648
9,720
37,316
6,240 109,324
829,772
28,563
82,649
35,914 32,462 7,570,792 1,231,986 381,916 2,035,928 3,090,604 830,359 9,743,227 208,264,746 5,116,597 27,400,648

33
34
35
36
37

997,670

30,089

19,660

10,237

192

102,034
4,573

12,155,223

2,079
58
84
1,959
10,109
12,796
51

81
6
1
112
265
76
64

104,822
4,573

877,797

371
23
1
969
5,798
5,366
1

1,816
166
138
3,174
13,544
5,034
412

11,384,344
1,875,934

126,980

6,473
24,539
93,308 20,729
280,961
78,956
225,504
820,523 58,529
284,682
21,276
131,679 292,512 59,793 1,046,287
95,971 33,718
68,436
10,557
46,943
383,527
785,582 189,760
658,346
126,879
72,867 118, 411 44,916
104,419
14,299
858,514 1,905,406 373,646 1,437,438
203,193
20,399
125,102 11,084
18,604
13,674
479,678 1,850,154 4,362,971 816,649 4,739,762

3,774
24
106
2,994
3,996
1,984
268

1,944
172
140
3,336
13,900
5,109
479

265,505,649
951,764
922,922
149,845
141,586
32,249,777
37,541
gg/6,641,083
39,406
27,986
27,786
3,340,677
29,451
28,369
3,497,749
1,560
662,217
1,603
11,604
2,776,690
12,338
26,538
28,202
8,324,657
783
247,569
807
49,625
7,076,578
51,267
1,346
2,155
1,634,087
40,762
102
101
9,024
3,767,200
9,129
2,438
2,483
1,616,972
98,134
523
476
224,528
232,784
44,896,018
27/382,359,819 1,539,835 1,486,227
43,918,012
310,128
296,370
295,232
43,704,379
309,988
332,432
6,741
6,238
94,195
15,789,124
90,101
1,378,526
5,159
5,125
99,354
95,226
17,167,650
26,751,162
210,774
200,144

32,719

98,917

9,650
175
431
12,954
29,885
46,225
982

1,516,530
174,073
214,433
4,465,587
3,011,102
426,999
28,389

1,898
2,294
441,177
44,437
2,415,324
44,520
3,151
637,346
3,154
21,445
20,609
2,642,631
426,276,631 1,649,963 1,781,597

681,618

376,360 46,642

923,904
2
245,517
13,002,739
21,272,023
377,721 1,564,555
3
437,392
7,277
32,884
4
31,594,060 1,012,530 2,941,337
5
12,136,561
129,453
403,185
6
12,055,396
333,287
720,726
7
78,010,862 1,478,560 5,678,293
8
35,603,089
463,907 2,270,081
9
1,996,934
55,374
242,703 10
2,369,682
96,533
214,572 11
136,397,776 3,257,791 10,366,310 12

1
50
91

15,198 13,634 3,854,213
618,632
1,942
6,317
78,408
656
1,209
160
30,628
40
98,424
985
97
3,633
22
21
193
48,247
641
596
228,857
1,068
3,231
7
17
298,073
643 1,099
548,300
809
2,467
1
56
6,682
49
26,403
23
22
21
26
4,166
2,467
5,799 558,016
23,474 30,134 6,408,379
2,318 1,162,413
12,440
12,439
2,317 1,161,982
221
282
9,086
3,468
626
425,920
14
20
16,766
3,482
646
442,686
8,956 1,672
719,727

2,542

246

639,258
7,608

666,116
21,603
5,542
2,706
10,754
480
3,067
44,261
221
31,034
116,723
86
144
3,780
226
37,690
944,323
287,662
287,666
679
106,196
3,444
108,639
179,023

353,553 146,969,223 3,231,961 22,090,665 38
257,308 1,318,076 1,180,099 432,614
35,600
146,848
378,271 36,410 7,412,245 1,869,956
4,948
53,610 39
2,245
19,942
28,299 22,380
329,657
2,426,966
40,651
191,892 40
2,010
8,179
13,748
3,985
32,690
752,745
9,896
73,135 41
10,797
39,199
13,699 23,975
44,493
2,735,923
34,470
210,740 42
160
867
1,164
972
8,177
147,322
1,789
14,851 43
2,913
8,851
29,741
3,686
19,884
565,118
19,976
64,549 44
113,529
18,265
98,268
3,990,208
600,384
287,267
45
10,160
42,642
680
1,497
604
5,416
130,209
3,001
9,635 46
229
8,995
67,718
153,899 36,427 141,723
3,232,155
70,813
271,257 47
8,647
66,925
338,551 27,454
1,163
989,029
814
1,323 48
4
11
2,247
119
82
16,534
2
848 49
842
1,463
2,159
2,084
22,472
2,173,002
160,491
412,329 50
8,180
12,875
1,066
11,561
1,028,586
11,838
47,235 51
492
36
1,926
1,677
402
1,684
34,140
1,576
3,755 52
16,517
137,105
287,708 79,995
632,215 17,135,100
434,957 2,248,352 53
355,964 1,858,612 2,659,063 690,437 9,115,173 184,196,216 4,627,467 26,981,443 54
25,962
177,316
531,551 139,922
628,054 24,068,530
489,130 1,419,205 55
25,961
177,232
531,340 139,893
627,805 24,064,786
489,016 1,418,818 56
172
1,652
6,466 1,117
10,727
145,344
4,453
14,016 57
6,886
66,463 193,251 54,125 220,614
9,606,629 194,779
664,434 58
130
1,790
6,487 4,916
17,186
1,068,100
8,796
36,787 59
7,016
68,253 199,738 59,040 237,800 10,574,729
203,575
601,221 60
18,946
109,063
331,813 80,882
390,254 13,493,801
285,555
817,984 61

157,411 14,669
46

61,936
3,666

262,779 42,464
2.46S 1.548

80,040
26,266

6,006,930
794,726

107,978
4,834

357,413
46,934

62
63

fcble 2. - Corporation income tax returns with balance sheets, ] / 1950, by major iniustrial groups - Part I, all returns; Part II, returns with net income: number of returns, assets and
liabilities, coapiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating loss deduction, Income tax, excess profits tax, total tax,
coiniiled net profit lees total tax, and dividends paid by type of dividend - Continued
PART II. - RETURNS WITH NET INCOME 2/ - Continued
(tfoney figures in thousands of dollars)
Major industrial groups 5/ - Continued
Manufacturing - Qontlnued

Tobacco
manuf ac—
tures

Number of returns with balance sheets 30/
Assets:
Cash 3j/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
InveBtiaenta, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
Less: Reserves
Land
Other assets
Total assets 35/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Less: Deficit 37/
Total liabilities 35/
Receipts:
Gross sales 7/
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
Wholly taxable 9/
Subject to surtax only 1Q/
Wholly tax-exempt 11/
Other interest
Rents 12/
Royalties 13/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
short-term capital loss 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 17/
Other receipts
Total compiled receipts 1,8/
Deductions:
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts gg/
Depreciation
Depletion
Amortization 83/
Advertising
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit (37 less 54)
Net income 2/ (55 less 27)
Net operating loss deduction 25/
Income tax 3/
Excess profits tax 4/
Total tax
Compiled net profit less total tax (55 less 60)
Dividends paid:
For
footootes,
seeother
pp. 25-26.
Cash and assets
than own stock
Corporation's own stock

I2T

Apparel
Lumber
Stone,
and
Leather
ClmJ,
Furniture Paper and Printing, Chemicals Petroleum
TextileRubber
and
publishing,
products wood
allied
mill
coal
products
products,
allied
products glass
made
fixtures products and allied
products
products
except
products
industries products
from
fabrics furniture

47555

B7351

3,065

2,119

8,575

129,848
280,880
101,517 749,441
312,866
484,987 1,335,137 732,564
8,658
8,746
25,274
17,380
2,620
438,722
1,634,057 2,427,030 1,320,642 684,977
184,802
51,092
429,568
60,788
13,349
54,522
533,468
135,890 205,671
61,507
290,817 4,306,580 509,046 1,805,701 516,489
123,909 1,833,489 208,354 660,495 216,161
68,679
20,625
73,874
21,218
9,837
92,059
25,395
122,715
50,892
14,695
2,483,437 8,119,050 2,886,246 3,207,228 1,324,652

501,406
672,690
16,207
756,245
459,556
542,883
3,490,930
1,429,680
78,649
156,361
5,212,833

514,475
843,565
26,422
532,975
289,573
542,137
2,307,244
788,453
116,761
141,774
4,473,629

302,476

429,128

534,182

4,069

234,204

149,081

59,083

605,707

302,559
599,455
167,925
225,248
471,302
44,592
615,410
2,137
2,483,437

05,962
271,463 126,961 59,056
373,112
526,013
190,165
78,372
162,583
489,755
506,283
331,619 150,049
654,280 255,140
337,112
59,582
41,448
133,050
407,596
984,693
789,036
271,778
568,786
1,475,251
197,237
91,330
35,548
53,541
408,080
547,727 2,283,875
919,605 1,404,601
3,719,176
10,818
20,270
8,407
12,104
13,907
8,119,050 2,886,246 3,207,228 1,324,652 5,212,833

107,614
349,103
521,841
254,050
756,380
192,740
1,907,511
44,638
4,473,629

865
3,067

23,077

1,927
4,136
5,258

2,554
65
114
2,742
8,978
4,255

2,230

127,973

1,191

1,879
666
L

5,233
129
299
8,178
6,687
3,191
48

2,693 24,075

494

531

1,802

,428,781
423,
1,297,735223,100 108,543
,645,456
317,575 542,
2,453,114 562,055
35,769
12,
7,189
12,783
33,198
,383,816
2,044,495 540,881 546,982 600,
,563,109
38l!
40,976
1,195,170 180,702
780,197
87,654 198'
3,353,051 153,746
,379,207
L7,027, 026 1,236,690 349,876 2,540! 329
,034,980
169,418 1,124 992
8,542,636 652,172
434
165,976
12,720
19,252
347,641
64,820
182,408
25,001
16,665
197,587
,458,201
L9,339,985 2,267,136 1,312,720 3,685,233
225,391 1,392,422
923,980 1,674,210214,912 166,535

744,983
1,160,665
26,613
1,617,717
371,241
310,932
2,929,394
1,232,279
111,"
114,072
6,101,981

91,093
46,953
85,124
205,571 15,485
68,174 258,956 1,294,657
359,846
2,281,656
1,551,527
401,580
112,924
265,473
783,792
842,847
131,317
69,636
301,718 197,334
911,106 3,001,944
5,430,929 301,168 260,963
489,659
166,127
62,491
158,072
956,181
7,758,175 764,119 491,814 1,556,603 4,804,626
10,574
12,800
4,941
9,273
52,247
19,339,985 2,267,136 1,312,720 3,685,233 13,458,201

157,607
324,068
644,722
227,107
1,242,304
275,937
2,677,428
19,843
6,101,981

1,304,
1,677,
46,
2,386,
1,343,
1,445,
7,640,
3,338,
204,
219,
12,835,

247,831
1,038,629
1,550,535
818,985
2,363,079
565,166
5,345,419
17,866
12,835,758

15,714,88618,595,338 3,961,268 2,807,263 4,801,38917,698,206
763,984
24,970
10,864
5,941
534,735
69,129

3,156,137 12,277,9636,825,1174,800,5832,740,7656,660,276
11,770
20,284
99,835
218,670
280,274
3,073
6,393
128
441
8,104
15,042
2,648
1,

4,723

Fabricated
Machinery,
metal prod.
except
ucts, except
Primary
transporordnance,
metal
tation
machinery,
industriee
equipment
and transand elecportation
trical
equipment
2,343
7,297
6,949

4,228
325
203
4,519
16,856
9,132
276
9,596

15,023
128
451
14,203
15,494
26,618
352
21,381

10,754
110
90
16,917
98,430
25,419
401
39,345

1,849
15
11
1,725
3,203
5,033
175
2,949

895
1,433
184

4,058
138
120
2,842
4,885
3,266
102
7,447

,229,058
,115,992
52,621
,452,541
897,616
675,551
,966,931
,161,819
140,437
177,398
,441,084
672,051 1,120,265 13

10,341,89323
57,805
4,775
197
155
4,624
11,580
3,837
274

16,897
130
80
32,316
18,484
7,557
117
17,582

202,145 14
712,152
"
1,203,636
553,318
2,408,826
700,827
4,563,558
23,643
11,441,084

12,055

10,750
300
481
14,955
12,987
20,369
173
18,720

849
25,454
18,587
27,749
22,411
70,064
52,322
10,531,016 15,237,168

339
278
937
267
25 617
1,913
7,059
3,566
20,632
11 >
4,309
1,505
85
333
2,337
23,995
144
14,314
34,862
24,216
58,641
29,793
5,739
3,175,659 12,636,295 7,148,550 5,090,411 2,786,365 6,785,821

265
34
54 102
3,328
406
512
62,925
10,658
15,095
1,630
394,611
162,748
26,010
14,978
23,691
30,612
163
125,457
52,773
7,594
39,267
26,562
14,361
14,107
96,283
48,357
47,966
6,185,155 16,141,949 19,941,218 4,032,271 2,838,606 4,910,230 18,672,788

501

2,526,6929,616,050 5,445,9893,535,1682,025,7494,629,644
1,231
5,932
69,681
218,969
139,456
955
94,177
78,337
92,303
205,481
163,455
8,990
21,733
14,867
13,159
52,111
33,787
1,972
16,375 143,815
39,640
13,183
125,764
4,416
3,594
3,528
5,631
5,629
4,487
271
21,134
5,925
13,730
15,949
35,686
23,581
108,846
37,468
74,727
73,989
192,474
112,300
5,393
2,550
3,265
7,010
15,952
575
26,281 134,665
85,323
33,152
175,204
11,757
5,257
119
121,196
16
24
90
1,
14
22
28
62,501
98,654
27,403
11,949
58,030
31,363
6,570
30,502
6,733
7,321
2,981
130
1,493
891 289,552
578
774,364
90,570
550,988
365,966 ,536,284
687,448
2,887,442 11 ,373,638 6,824,883 4,439,384
5,781,533
250,081
,262,657
288,217
651,027
323,667
250,064 1,004,288
,262,216
288,173
650,913
323,651
4,183 1,003,989
7,375
490
4,472
8,920
6,433
96,267
505,136
118,966
407,063
236,680
117,695
10,502
30,711
11,019
40,819
21,860 106,769
6,147
535,847
129,985
447,882
258,540
123,842
143,312
726,810
158,232
556,406
392,487
199,825
43,760
195,774
104,758
252,666 43,525
95,102
12,218
88,646
85,674
17,415
29,698
7,592

13,615,5472,862,4552,258,5593,078,06813,305,670
3,801,30210,023,
401,817
15,212
6,207
474
353,486
185,075
121,748
86,617
56,454
23,978
32,618
202,334
52,875
16,065
14,891
14,015
134,319
55,397
586,339
15,932 104,451
62,423
281,516
28,503
8,173
4,637
1,816
4,511
22,523
14,337
82,164
13,151
5,648
11,327
71,787
17,834
288,679
79,344
35,424
133,570
421,966
89,312
9,646
3,161
2,611
1,441
3,877
7,949
365,670
19,024 112,101
58,263
535,966
89,823
67,894
3,128
121
30
759,650
38
6,767
187
63
269
1,225
20
38,085
29,846
25,680
38,921
90,698
36,406
182,368
18,964
8,181
14,954
111,725
30,382
1,672
1,015
607
334
4,935
1,073 1,661
733,103
217,951 488,345
368,436
1,680,388
997,950 13,359,
18,122,226 3,595,401 2,669,169 4,054,292 16,252,870
5,557,735 2,782
855,938 2,419,918
1,818,992 436,870 169,437
627,420 2,781,
169,410 855,818 2,419,838
1,818,902 436,859
627,217
7
1
6,276
3,081
2,880
1,086
4,979
5,727 1,103
995,238
345,768
64,837
174,382
601,321
234,794
150
131,810
46,860
3,521
22,131
13,318
12,703 1,254
392,628 1,127,048
68,358
196,513
614,639
247,497 1,527
101,079 463,310 1,292,870
1,204,353 240,357
379,923
38,006
182,016 525,503
73,931
772,047 950,382
152,292
108,847
1,337
19,949
13,173
65,276
47,340
21,530

7,392,226 9,875,813
28,089
31,297
255,558
242,363
51,777
37,608
224,523
133,863
9,156
9,362
37,533
20,867
250,799
143,222
11,876
8,175
269,102
138,558
777
167
990
306
152,722
89,599
87,
,798
48,432
1,
2,567
1,905,
979,365
13,164,
9,277,977
2,073,
1,253,039
2,072,
1,252,884
14,
10,498
834,
498,404
78,
56,851
913,
555,255
1,159,
697,784
441,139
240,002
62,059
36,442

Table 2. - Corporation income tax returns with balance sheets, 1/ 1950, by major industrial groups - Part I, all returns; Part II, returns with net Income: Number of returns, assets and
liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, net operating loss deduction, income tax, excess profits tax, total tax,
compiled net profit less total tax, and dividends paid by type of dividend - Continued
PART II. - RETURNS WITH NET INCOME 2/ - Continued

Electrical
machinery
equipment

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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

Number of returns with balance sheets 30/
Cash 31/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
Less.: Reserves
Land •
Other assets
Total assets 35/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Less: Deficit 37/
Total liabilities 35/
lece^pts:
Gross sales 7/
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
Wholly taxable 9/
Subject to surtax only 10/
wholly tax-exempt 11/
Other interest
Rents 12/
Royalties 13/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
short-term capital loss 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 17/
Other receipts
Total compiled receipts 18/
Deductions:
Cost of goods sold 19/
Cost of operations Jj/
Compensation of officers
Rent paid on business property
Repairs gQ/
Bad debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortization g3/
Advertising
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit (37 less 54)
Net income 2/ (55 less 27)
Net operating loss deduction 25/
Income tax 3/
Excess profits tax 4/
Total tax
Compiled net profit less total tax (55 less 60)
Dividends paid:
Cash end assets other than own stock
Corporation's own stock
For footnotes

2,102

(Money figures in thousands of dollars)
Major industrial groups 5/ - Continued
Public utilities
Manufacturinig - Continued
Scientific
Motor
Transinstruportation vehicles Ordnance ments;
Other
Electric
Other
Total
U
Transpor- Communicaequipment,
and
and
photo- manufac- public
and gas public
tation
tion
except equipment, accesso- graphic
utilities utilities
turing utilities
motor
except
ries
equipment;
vehicles electrical
watches,
clocks
1,047
551
2,318
919
866
37
5,724
15,233
10,949
1,229
1,862,383
1,786,427
7,075
904,465
1,409,273
4,371,977
33,162,654
9,889,188
809,378
2,129,236
35,939,530

208,486
243,883
4,462
170,652
328,576
1,322,802
12,048,171
3,416,520
19,767
443,458
11,364,813

867,946
800,004
26,055
751,180
370,174
1,950,197
27,259,783
5,593,102
265,843
609,905
27,255,875

29,895
28,777
765
15,521
11,260
46,068
993,987
185,121
14,196
22,626
976,444

275,498 2,458,242 1,713,010

173,353

548,760

23,119

82,619
4,250,832
924,560
199,697
4,302,190
61,909
1,389,721
20,068
11,364,813

355,186
11,587,217
1,423,950
2,517,227
7,012,803
396,484
3,455,312
41,064
27,255,875

646,100
331,004 1,013,188 43,501
150,015 281,854
1,330,980
564,989 1,102,713 22,640
366,464 589,647
20,758
5,227
10,311
1,110
8,905
18,346
1,825,863
939,584 2,073,878 62,563
524,436 846,590
623,636
236,168 2,966,450 14,372
176,495 113,868
841,632
211,824
517,442
55,396
106,849 187,300
2,234,346 1,260,276 4,191,427 108,753
769,887 993,266
899,277
674,056 2,004,898
37,787
332,343 403,695
58,788
39,416
76,661
3,028
20,307
39,855
106,725
131,796
130,066
59,483
2,890
26,005
0,748,035 3,036,574 10,056,616 274,245 1,799,210 2,689,822
848,110

301,642

780,746

25,596

133,691

2,968,710
2,859,091
38,357
1,841,818
2,119,283
7,691,044
73,464,595
19,083,931
509,184
3,205,225
75,536,662

118,329
74,421
443,710
132,304
750,815
2,410
45,101
449,291
104,242
170,921 33,380
109,743 178,917 27,388,725
095,243
535,298 2,037,991 22,630
269,311 297,091 5,410,630
411,497 20,500
174,005
113,279
72,789 112,392 3,938,116
1,291,582
473,678 1,009,764 24,842
374,133 525,059 19,873,065
411,509
154,908
595,582 26,875
67,308
86,471 1,024,565
732,111 1,104,414 15,060,086
2,473,441 1,331,021 4,610,443 118,505
51,915
13,475
4,028
493
4,977
22,324
367,582
6,748,035 3,036,574 10,056,616 274,245 1,799,210 2,689,822 75,536,662

294,570
11,107,073
2,996,180
1,137,859
8,363,590
546,721
10,080,464
299,937
35,939,530

52,812
10,153,367 3,397,562 18,026,375 258,171 2,192,689 4,584,234
237,194
172,240
10,595
56,946
383,018
11,675
309
6,411
29,297 28,962,372 17,149,486 4,381,884 7,257,151
7,098
73
189
13,625
7,303
12,500
447

3,474
20
315
7,007
3,351
5,114
58

32,859
374
124
9,792
4,978
4,096
171

202
1
7
792
108
17

14,362

3,298

6,981

Trade
Wholesale
Total
trade

141,842

5,267,039
13,622,973
407,454
16,284,440
1,282,639
3,015,871
11,233,383
4,152,304
1,153,850
1,016,025
48,316,462

Total
wholesale

49,472

Commission
merchants
6,062

Other
wholesalers
43,410

2
2,276,556
283,019 1,993,537
7,677,633
732,864 6,944,769
3
160,855
14,056
146,799
4
7,480,620 158,407
7,322,213
5
572,196
60,915
511,281
6
1,633,853 218,868 1,414,985
7
3,499,395
167,295
3,332,100
8
1,296,658
51,563
1,245,095
9
282,103
13,459
268,644 10
370,716
36,205
334,511 11
22,335,559 1,605,413 20,730,146 12

8,310,904 4,957,105

471,314

4,435,791 13

16,440 3,524,172' 2,171,699 101,338 2,070,361
443,603
3,438,044 1,489,915 105,816
1,384,099
123,908 1,700,850
65,940 4,336,300 1,824,758
563,307
35,789
527,518
83,333 1,402,532
194,482
8,872,574 3,749,129 265,900
3,483,229
19,451 1,285,837
521,211
30,089
491,122
134,589 17,397,437 7,180,332 493,365
6,686,967
6,513
231,338
121,897
22,106
99,791
976,444 48,316,462 22,335,559 1,605,413 20,730,146

14
15
16
17
18
19
20
21
22

1,547 139,6d3,489 70,593,955 2,933,026 67,660,929 23
874,717 24
173,851 2,311,448 1,530,260 655,543

1,164
26
26
1,792
1,546
2,415
9

1,642
60
33
2,435
5,193
2,015
58

27,679
654
1,801
100,414
387,782
8,797
926

17,022
609
330
55,248
332,427
5,795
671

4,757
27
41
10,045
27,668
859
24

5,739
14
1,415
34,629
26,402
2,092
230

161
4
15
492
1,285
51
1

19,324
626
658
111,038
209,903
18,400
6,913

7,956
258
338
43,211
48,633
14,848
4,534

948
30
26
7,733
4,169
996
708

7,008
228
312
35,478
44,464
13,852
3,826

1,591

8,691

61,556

48,795

4,074

6,727

1,960

89,901

47,805

3,631

44,174 32

85
67
556
50
381
5,849
5,060
502
211
51,025
14,215
41,862
1,247
4,882
5,549
240,878
101,161
04,707
52,801
12,195
3,631
76,520
120
8,618
3,725
12,761
2,419
1,436
8,906
33,702
19,308
52,954
503
11,574
23,665
135,784
95,054
9,378
27,779
10,362,917 3,840,438 18,269,317 261,556 2,232,793 4,666,978 30,184,447 17,986,317 4,535,997 7,476,908

76
2,209

7,144,162 2,701,888 13,110,213 168,656 1,371,025 3,158,514
158,508
113,104
6,833
37,609
287,815
1,553
15,052 17,692,524 11,712,981 2,295,418 3,609,900
15,360
6,192
28,217
53,076
2,610
43,661 144,241
233,071
167,583
93,335
25,402
35,981
31,516
14,260
20,715
483
11,309
28,492
737,250
625,214
65,493
44,059
114,293
56,533
211,064
8,064
29,427
37,003
43,826
32,163
4,561
5,835
3,751
137
2,091
7,282
29,821
6,683
1,386
9,817
12,278
7,618
1,408
12,126
7,302
12,137
5,510
921,477
410,956
141,238
353,684
23,155
421,169
5,314
65,181
74,811 1,866,534
896,451
297,968
653,945
217,946
64,387
5,114
1,675
12,115
575
3,108
4,147
13,658
2,655
4,109
6,781
143,575
50,862
193,872
4,505
34,204
57,013 1,863,538
780,948
401,348
664,573
621
292
34,904
8
38
1
4,667
14,743
4
20,142
264
1,053
151
1
132
157
19,335
19,245
76
14
160,822
10,418
83,326
2,551
51,119
71,159
84,647
47,272
21,243
15,881
94,528
18,976
134,297
3,680
20,961
13,303
262,043
36,357
142,264
82,992
2,405
479
2,402
22
241
813
19,541
5,022
2,251
12,071
875,963
209,215
690,882 18,012
284,438 581,047 1,787,142
947,992
377,795
443,476
8,930,129 3,454,504 14,955,983 216,310 1,923,961 4,209,827 25,767,819 15,823,957 3,796,827 5,994,561
1,432,788
385,934 3,313,334 45,246
308,832 457,151 4,416,628 2,162,360
739,170 1,482,347
1,432,599
385,619 3,313,210 45,239
308,806 457,118 4,414,827 2,162,030
739,129 1,480,932
8,582
16,660
1,567
387
2,236
9,362
40,335
32,768
6,374
876
574,194
148,813 1,370,425 18,303
124,211 176,468 1,716,773
833,388
280,548
591,829
83,907
13,086
251,295
2,783
14,824
18,728
35,551
26,174
1,943
7,352
656,101
161,899 1,621,720 21,086
139,035 195,196 1,752,324
859,562
282,491
599,181
774,687
224,035 1,691,614 24,160
169,797 261,955 2,664,304 1,302,798
456,679
883,166

311,410
29,034

106,988
3,620

847,291
16,279

10,072

78,882
59,330

75,993 1,625,001
17,498
93,092

463,619
11,819

356,379

2,22EJ

790,468
77,048

9,402
2,687
413
2,274
95,942
50,996
11,166
39,830
74,562
64,359
1,643
62,716
3,573 1,118,035
427,781
50,789
376,992
185,225 143,749,781 72,837,621 3,670,821 69,166,800

25
26
27
28
29
30
31

33
34
35
36
37

962 112,436,716 61,115,954 2,702,997 58,412,957 38
74,225 1,119,960
721,844 197,634
524,210 39
924,055 40
4,105
2,344,700 1,038,640 114,485
2,484 1,280,568
234,517
19,844
214,673 41
1,267
312,907
92,477
2,837
69,640 42
108
205,044
75,873
4,278
71,595 43
250,345
118,357
7,561
110,796 44
15,599
18,170 1,168,082
458,776
17,340
441,436 45
24,478
46
63,813
113
26,666
2,188
238,969 47
16,669
778,079
250,504
11,535
18,443
16,185 46
15
16,784
599
1,538
411
375 49
36
251
1,249,242
308,745
293,493 SO
15,252
430
169,535
59,133
53,757 51
5,376
197
11,062
2,989 52
3,435
446
17,879 15,795,161 5,430,643 377,943
5,052,700 53
152,474 137,205,195 69,952,659 3,480,351 66,472,308 54
32,751 6,544,586 2,884,962 190,470 2,694,492 55
32,736 6,543,928 2,884,624 190,444 2,694,180 56
317
65,364
35,624
3,736
31,888 57
11,008 2,406,953 1,062,950
64,125
998,825 58
82
185,709
88,729
4,985
83,744 59
11,090 2,592,662 1,151,679
69,110 1,082,569 60
21,661
3,951,924 1,733,283 121,360 1,611,923 61

14,538
2,000

1,127,935
223,3061

471,398
129,186

32,724
8,026

438,674 62
121,160 63

Table 2. - Corporation <"""•- tax returns with balance sheets, 1/ 1950, by major industrial groups - Part I, all returns; Part II, returns with net income: Number of returns, assets and
liabilities, compiled receipts, complied deductions, compiled net profit or net loss, net income or deficit, net operating loss deduction, income tax, excess profits tax, total tax,
ooaplled net profit less total tax, and dividends paid by type of dividend - Continued
PART II. - RETURNS WITH NET INCOME 2/ - Continued
(Money figures in thousands of dollars)
Major industrial groups 5/ - Continued
Trade - Continued
Retail

Total
retail

1
2
3
4
5
6
7
8
9
10
11
12
L3
4
5
6
7
8
9
0
1
2
3
4

5
S
7
8
9
D
1
2
3
i
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5

;

^
1
2
3

Number of returns with balance sheets 30/
Assets:

Cash 21/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
Less: Reserves
Land
Other assets
Total assets 35/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Less: Deficit 37/
Total liabilities 35/
Receipts:
Gross sales 7/
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
Wholly taxable 9/
Subject to surtax only 10/
Wholly tax-exempt 11/
Other interest
Rents 12/
Royalties 13/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net lonf-term capital gain over net
short-term capital loss 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 17/
Other receipts
Total compiled receipts 18/
Deductions:
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 20/
Ead debts
Interest paid
Taxes paid 21/
Contributions or gifts 22/
Depreciation
Depletion
Amortization 23/
Advertising
Amounts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit (37 less 54)
Net income 2/ (55 less 27)
Net operating loss deduction 25/
Income tax 3/
Excess profits tax 4/
Total tax
Compiled net profit less total tax (55 less 60)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes, see pp. 25-26.

82,555

Food

5,020

Furniture Automotive
Apparel
and
dealers
and
merchanhouse
and
accessodise
furnishfilling
ries
ings
stations
5,433

10,648

8,035

19,062

2,763,419
354,490
891,901
264,782
95,784
702,168
5,163,835
212,006 1,709,167
445,548
710,341
787,787
223,196
4,650
121,426
23,240
13,937
20,132
7,852,653
860,779 2,498,432
785,414
553,598 1,348,270
676,312
37,515
405,520
49,839
23,395
82,103
1,241,338
105,573
491,134
140,868
64,359
187,873
6,978,253 1,122,911 2,368,013
531,297
221,646 1,105,954
2,546,128
382,239
905,804
208,551
82,755
319,995
790,864
86,900
301,297
29,776
26,568
193,893
601,672
199,560
94,006
47,369
28,941
117,692
23,299,022 2,487,291 7,837,794 2,072,405 1,618,637 4,185,613
2,862,617

487,193

1,178,551
1,746,304
2,294,427
755,811
4,579,551
688,249
9,288,598
95,086
23,299,022

106,351
200,279
197,950
118,508
369,125
82,357
940,001
14,473
2,487,291

770,149

320,204

209,091

368,075

180,200
77,744
148,181
338,803
562,263
152,088
118,153
266,781
771,704
173,777
223,567
485,560
360,701
92,524
38,493
41,177
1,484,894
389,668
330,396
798,625
364,277
30,499
44,737
91,413
3,352,895
515,898 1,803,211
844,257
9,289
8,356
9,879
8,032
7,837,794 2,072,405 1,618,637 4,185,613

Eating
Building
and
materials
drinking
and
places
hardware

Drug
stores

3,330

5,896

11,328

Finance,insurance,real estate, and lessors of real property
Finance
Total
finance,
Credit
Holding
insurance,
Trade
Banks and
not
real estate,
Total
agencies and other
trust
retail
allocable and lessors
finance
companies other than investment
trade
of real
banks
companies
property
14,088
28,070
8,036
13,803
9,815
112,129
4,929

227,064
165,495
74,756
151,718
62,325
611,004
781,505
36,224
603,064
48,694
21,916
23,403
1,022
16,623
250
679,636
951,167
236,043
59,746
830,735
24,824
34,250
34,131
6,658
12,208
77,345
110,400
140,680
23,967 , 39,819
573,449
755,735
199,532
390,413
465,038
226,931
309,518
190,700
78,816
150,337
80,883
66,016
44,153
7,117
35,144
43,637
22,917
26,561
47,812
16,814
521,312
520,640 2,037,978 2,017,352 2,681,881
75,120
13,386
69,271
33,053
16,907
100,452
12,514
203,285
2,676
521,312

67,839

247,849

317,097

491,182

143,703
173,922
23,562
146,621
127,063
175,319
201,825
75,087
222,866
217,115
138,529
47,421
45,915
83,414
10,483
31,103
439,372
543,894
123,538
543,481
56,377
29,701
5,380
27,371
667,352
928,507
784,072
177,627
14,355
8,111
23,973
10,297
520,640 2,037,978 2,017,352 2,681,881

62,404,884 12,693,401 15,348,924 4,460,550 2,603,422 16,361,471 1,348,843 1,327,975 4,217,069 4,043,229 6,684,650
129,533
35,945
74,849
651,655
38,393
56,103
9,480
35,501
52,289
35,394
313,701

45,573,648 42,213,072 40,882,629
745,620
483,592
2
64,131,510 62,174,474 53,384,640 7,888,787
3
660,167
593,778
469,178
610,992
107,774
4
16,379
18,611
13,085
9,912
5
830
91,775,068 70,615,363 69,397,525
207,589
745,083
6
5,809,107
68,571,584 15,041,508
716,927 8,087,872
7
1,932,288
1,397,108
14,934,737
115,436
371,688
8
356,750
197,492
3,656,296
35,475
100,390
9
199,057
113,375
3,678,240
15,327
57,272 10
835,135
1,126,714
176,384
4,494,394
99,154 11
288,910,504 192,365,033 171,152,849 9,732,733 10,388,889 12

2,536,428

1,287,034

724,140

223,329

4,536,005
3,574,215
3,096,513
223,563
4,038,448
2,982,115
11,762,060
918,698
878,660
633,443
231,325,575 160,171,481 158,590,233
1,100,746
65,100
308,239
692,366
1,543,201
7,211,905
3,534,232
731,462 2,870,056
12,119,804
2,235,700
1,200,501
251,206
768,807
2,463,067
7,765,180
873,046 4,626,722
24,097,485 13,468,291
722,867
2,397
112,648
568,095
1,473,121
288,910,504 192,365,033 171,152,849 9,732,733 10,388,889

14
15
16
17
18
19
20
21
22

137,956
7,107,024

98,196
1,568,486

633,688

85,470
781,980

12,726
53,572

23
24

1,312,226
169,730
207,225
4,052,447
1,906,727
182,503
11,480

844,812
159,848
148,621
2,526,379
133,648
58,947
7,485

824,924
158,652
144,323
2,064,063
114,771
1,856
3,101

4,349
83
375
366,169
3,163
138
462

12,473
389
1,696
86,376
13,991
56,888
3,319

25
26
27
28
29
30
31

802
5,000
96
8

185
9
13
365
5,327
167
106

555
13
40
5,190
6,256
590
108

635
24
14
5,823
10,152
395
121

672
83
38
4,555
16,513
949
312

732

1,393

5,365

3,628

6,858

327,942

208,210

58,208

10,483

130,019

2,050
105
545
987
800
867
434
349
301
277
5,848
1,449
2,793
5,996
1,259
4,632
3,773
2,517
38,950
3,371
6,965
12,191
203
4
24
5
83
1,969
7,889
2
24
10,000
61,634
59,217
12,731
9,897
51,708
24,628
172,894
77,329
119,692
100,524
631,037
64,001,714 12,779,199 15,696,726 4,626,813 2,773,254 16,830,561 1,381,701 1,383,376 4,325,904 4,204,180 6,910,446

403,098
979,961
53,395
259,706
17,111,420

62,412
687,165
49,523
121,278
6,675,010

3,248
16,851
337
41,130
4,065,152

2,287
14,699
3,489
32,71C
1,305,86C

2,578
645,270
45,538
40,653
1,105,488

33
34
35
36
37

915,095
735,840 3,231,944 2,872,693 5,287,049
101,327
46,033,71? 10,272,167 10,053,934 2,906,741 1,688,049 13,357,250
21,632
37,675
42,331
26,593
203,212
2,591
16,994
355,785
23,821
15,060
24,371
10,429
46,413
138,039
145,635
137,057
26/844,710
128,844
108,813
386,255
69,325
113,668
32,111
1,169,103
58,518
231,264
60,226
21,367
68,958
292,759
220,685
60,462
109,683
45,834
107,559
987,533
19,790
130,286
7,439
32,565
5,807
15,034
11,771
15,092
60,729
11,857
40,346
200,640
17,284
12,995
242,665
23,249
449
15,850
25,626
12,601
16,502
422
116,176
4,193
14,166
901,953
3,905
11,928
11,893
11,060
27,861
3,254
11,756
27,655
8,510
117,822
68,803
754,379
27,337
43,446
49,578
51,586
32,513
107,209
18,872
89,523
220,439
640,503
23,359
2,219
2,868
2,248
7,095
629
622
2,527
4,553
10,549
3,837
34,279
450,195
36,405
44,341
52,594
18,897
88,712
13,958
28,727
82,468
119,259
42,214
474,981
431
39,517
3
924
27
6
76
143
14
28
7
1,228
315
52
220
132
66
327
31
35
39
83
142
995
10,983
25,069
55,806
57,760
105,844
77,739
158,371
18,831
119,751
346,590
69,597
882,737
1,596
2,942
7,433
09,748
1,068
4,320
1,822
4,735
1,310
67,634
17,542
102,969
429
283
1,168
94
237
423
421
1,087
18,747
2,813
672
6,540
584,852 1,467,571
269,552
379,467
500,542
696,201
844,695
7,055,638
878,651
9,519,823 1,652,253 3,091,734
60,644,827 12,445,828 14,448,560 4,414,961 2,620,668 15,974,924 1,329,046 1,326,357 4,063,498 4,020,985 6,607,709 27/11,016,540
262,406
183,195
302,737
6,094,880
57,019
152,586
855,637
52,655
211,852
333,371 1,248,166
3,356,887
302,699
5,887,655
183,181
57,006
262,366
855,603
52,653
152,555
211,839
333,308 1,248,094
3,356,605
3,212
2,183
4,399
4,139
37,524
3,598
4,624
609
2,056
3,353
1,567
25,601
48,824
301,754
17,368
17,468
84,691
56,841
105,234
1,187,677
508,955
70,797
132,071
1,238,769
7,042
40,367
2,992
5,717
24,403
523
650
1,838
1,691
42,474
9,650
89,938
59,833
112,276
1,228,044
18,118
90,408
17,891
50,662
326,157
72,488
551,429
141,721
1,328,707
190,461
4,866,836
123,362
38,901
171,998
101,924
529,480
34,764
696,737
139,364
191,650
2,028,180

78,101
23,843
522,010
83,503
26,287
230,282
586,255
200,357
14,670
94,546
7,636
12
69,714
66,533
14,224
1,967,969
3,985,942
2,689,068
2,540,447
10,543
660,544
21,744
682,288
2,006,780

68,875

9,226
23,843
21,387
2,999
837
2,106
31,404
12,512
2,135
5,833
7,139
1
554
1,460
514
98,607
220,557
884,931
883,235
1,236
90,420
661
91,081
793,850

38
39
40
41
42
43
44
45
46
47

46,206
56,417
13,180
1,343,931
2,716,063
1,349,094
1,204,771
1,895
405,604
14,763
420,367
928,727

56,845
22,671
2,702
48,264
192,087
27,012
1,657
10,485
27
11
20,371
6,649
384
436,888
894,935
410,925
410,550
5,684
154,109
5,623
159,732
251,193

1,244,337
74,691

407,583
51,706

105,664
6,261

723,047
15,900

10,690
285
282
63,272
144,757
2,663
2,067

523
13
63
2,370
8,778
604
297

5,877
165
72
22,514
64,180
300
21

1,054
9
13
2,303
24,168
60
40

677
16
31
5,520
4,989
75
126

1,085
36
34
18,385
15,907
376
1,240

35,318

4,440

5,295

1,754

1,615

11,096

105

611,869
85,462

65,021
12,406

301,786
6,530

41,045
7,222

15,236
4,264

100,069
37,988

13,831
1,282

12,286
1,314

36,725
9,255

25,870
5,201

44,668
8,658

1,730,879
112,331

405,840
52,031
22,349
179,223
355,741
154,363
10,575
76,076
126

1|g
50
51
52
53
54
55

c5C

57^
50,
5

6(fr
1
61

62
63

Table 2. - Corporation income tax returnB with balance sheets, _/ 1950, by major industrial groups - Part I, all returns; Part II, returns with net income: Number of returns, assets and
liabilities, compiled receipts, compiled deductions, oompiled net profit or net loss, net income or deficit, net operating loss deduction, income tax, excess profits tax, total tax,
compiled net profit leBs total tax, and dividends paid by type of dividend - Continued
PART II. - RETURNS WITH NET INCOME 2/ - Continued

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
16
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49

s
o
51
52
53
54
55
56
57
58
59
60
61
62
63

Number of returns with balanoe sheets 30/
Assets:
Cash 31/
Notes and accounts receivable
Less: Reserve for bad debts
Inventories
Investments, Government obligations 32/
Other investments 33/
Gross capital assets 34/ (except land)
. Less: Reserves
Land
Other assets
Total assets 35/
Liabilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other liabilities
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 36/
Less: Deficit 37/
Total liabilities 35/
Reoeipts:
Gross sales 7/
Gross receipts from operations 8/
Interest on Government obligations (less amortizable
bond premium):
Wholly taxable 9/
Subject to surtax only JO/
Wholly tax-exempt 11/
Other interest
Rents 12/
Royalties _3/
Excess of net short-term capital gain over net
long-term capital loss 14/
Excess of net long-term capital gain over net
short-term capital loss 14/
Net gain, sales other than capital assets 15/
Dividends, domestic corporations 16/
Dividends, foreign corporations 17/
Other receipts
Total compiled receipts 18/
Deductions:
Cost of goods sold 19/
Cost of operations 19/
Compensation of officers
Rent paid on business property
Repairs 20/
Bad debts
Interest paid
Taxes paid gj/
Contributions or gifts 22/
Depreciation
Depletion
Amortization 23/
Advertising
Aouunts contributed under pension plans, etc. 24/
Net loss, sales other than capital assets 15/
Other deductions
Total compiled deductions
Compiled net profit (37 less 54)
Net income 2/ (55 less 27)
Net operating loss deduction 25/
Income tax 3/
Excess profits tax 4/
Total tax
Compiled net profit less total tax (55 less 60)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes.

(Money figures in thousand s of dollars)
Major industrial groups 5/ - Continued
Services
Finance,insurance,real estate,and lessors of real property- Continued
Finance Real
Insurance carriers and agents
Continued
estate,
AutomoMiscelLessors
Security
Hotels
except
tive
laneous
of real
repair
Motion
and
Total
Insurance lessors
Total
and other Personal Business repair
commodityInsurance
Insurance
agents
of real property, services lodging services services services services, pictures
hand
exchange
and
carriers
carriers
and
property exoept
places
buildings
brokers and and agents
brokers other than
garages trades
dealers
buildings
1,369
3,148
6,215
2,555
1,896
27,818
3,372
6,152
73,982
2,980
1,017
7,067
6,202
101,231
240,880
447
2,343
265,166
427,602
48,056
23,393
13,083
16,041
1,090,562

2,425,401
551,659
5,102
5,470
20,772,811
51,264,880
661,487
43,070
22,188
2,93B,844
78,594,568

339,565

355,519

6,545

348,974

254,139
137,635
69,145
35,041
76,235
15,186
203,343
39,727
1,090,562

60,540
36,997
70,198,080
36,382
1,128,129
27,713
6,774,619
23,411
78,594,568

42,204
16,594
70,145,775
20,186
1,037,776
11,045
6,635,373
18,337
77,897,161

18,336
20,403
52,305
16,196
90,363
16,668
139,246
5,074
697,407

99,246

17,151
4,573,523

17,151
-4,199,650

373,873

3,066
724
2,227
9,771
1,723
65
603

451,844
9,477
57,762
1,481,929
140,876
336
696

451,402
9,461
57,732
1,480,158
138,862
271
661

9,500

24,449

23,369

1,080

88,038

54,299
10,345
159
6,782
198,510

1,776
260,925
2,656
26,002
7,049,402

1,576
255,517
2,150
12,144
6,650,104

200
5,406
506
13,858
399,298

337,908
28,858
1,176
99,135
3,115,357

18,841

12,841

_
_

37,938
5,802
399
689
7,023
6,463
303
2,152
344

8,043
824

26/103,002
£6/18,982
38,244
51,857
1,367
2,009
5,493
7,460
6,067
8,356
153,458
160,896
2,276
1,461
35,664
40,399
145
124
20
15,347
10,176
20,224
17,843
230
150
4,196,778
3,984,449
27/4,621,848 2774,287,119
2,362,985
2,427,554
2,369,792
2,306,253
2,426
3,122
236,753
217,747
7,864
6,923
244,617
224,670
2,182,937
2,13B,315

2,583
2,007
146
88,543
154,392
44,118
41,891
1,728
10,411
697
11,108
33,010

2,275,646
208,733
2,295
5,470
20,756,244
51,175,682
588,711
28,143
17,029
2,900,084
77,897,161

250,180
25,1B7

228,976
24,067

149,755
860,639
74,536
790,453 115,556
342,926 1,331,394
73,983 838,722
81,986
17,884
1,703
2,807
11,632
480
56
480,560
46,439
22,986
294,141
92,753 195,123
16,567
89,198 2,080,620 164,576
936,985 132,131
72,776 9,904,646 2,436,316 4,242,466 1,485,165
336,596 1,764,855 636,709
14,927 2,919,880
5,159 3,287,995 169,000 595,223 267,522
38,760
370,860
57,976 216,652
53,207
697,407 15,198,839 2,752,064 6,513,445 1,556,580

844,493

22,609
965,015

442
11,444
16
301
30
670
1,771
41,756
2,014 1,511,484
65
3,822
3,141
35

_
-

10,385
2,750
84,020
214,486
13,613
93,050
642
100,102
4,830
1,967
282,739
1,489
7,438
368,071
6,215
815
4,735
306,172
700
21
275
28
5,171
20,743
2,381
2,598
80
3,760
212,329
866,627
334,729 2,283,503
64,569
831,854
64,539
831,184
696
22,778
19,006
235,653
941
9,287
19,947
244,940
44,622
586,914
21,204
1,120

49,382

594,726

80,487

60,307
884,600
16,650 270,070
6,790,575 896,040 1,218,696 505,156
93,468
848,896 107,118
596,299
66,198
282,355 123,718 205,738
2,663,347 1,116,343 1,159,320 255,158
24,361 224,199
31,647
175,893
591,189 2,372,283 506,270
3,263,386
42,111
554,106 172,737 135,885
15,198,839 2,752,064 6,513,445 1,556,680

162,044
10,766

_1,115,736
6,213,766

411,406
716,111

67>864 218,377 26,521
33,319
92,042
362,785
5,983
530
2,037
43,135 15,233
61,737
44,360
3,409
15,086
48,605 287,095 13,713
582,785
545,557 233,043
248,764 210,527 62,194
37,558
17,284
34,477
30,507
47,333 10,191
682,304 1,339,416 290,263
59,786

212,779

26,046

11,906
210,730
31,150 124,170
1,490
615
21,790 268,398
57,578
6,767
2,338
396,924
36,700
902,714
14,041 401,883
2,049 183,398
2,629
42,811
100,673 1,783,350
22,236

Nature
AmuseOther
of
ment,
serv- busiexcept
ices, ness
motion includ- not
ing allocapictures
schools ble
2,239

2,768

74,464
26,348
620
7,084
24,124
32,315
290,715
108,120
48,258
19,265
416,833

65,035
94,922
4,906
16,744
20,811
23,864
165,787
62,617
14,677
10,709
345,026

125,149 28,454

39,788 15,099 13

33,368
45,791
31,985
78,265 141,715 68,722
52,842 222,952 18,701
40,056
11,327
23,869
169,048 195,196
45,073
5,546
87,986
3,202
269,736
410,157
90,334
10,156
17,216
5,127
682,304 1,339,416 290,263

4,369
66,679
8,219
332,225
14,886
108,401
- 945
37,472
20,851 281,311
1,460
65,207
28,755
786,079
1,048
19,173
100,673 1,783,350

77,828
251,678 163,546
916,524 1,867,861 237,027

63,406 38,670 43,130 55,302 23
76,072
147,743 1,415,747 415,405 497,348 23,215 24

4,126
104
172
2,383
120,719
119,398
158

4,436
72
141
11,639
171,869
12,856
1,085

920
9
5
2,295
96,834
259
182

265
11
13
460
3,132
462
20

1,265
30
44
3,246
15,065
3,641
162

102
4
3
304
12,705
76
545

7,245

35,682

6,371

1,979

7,420

18,652
28,247
41,878
17,731
77,900
20,894
123,816
23,880
345,026

6,948
16,846
11,543
5,893
47,283
1,600
64,197
11,571
157,838

14
15
16
17
18
19
20
21
22

422
19
20

1,005
7
9
3,000
34,335
5,475
42

352
5
3
860
5,887
2,264
103

455
6
64
1,436
3,489
660
11

219
11
44
608
2,948
417
52

25
26
27
28
29
30
31

6,428

492

10,263

1,750

979

5,518

1,002
3,778
436
354
401
678
3,013
29,762
5,446
1,254
9,159
230
40
6,409
176
12
1,248
13,291
104,267
15,613
6,757
18,452
4,022
271,651 7,711,578 1,256,065 1,182,921 2,081,540 339,952

56
13

640,997
_3,350,070
- 339,54 3

5,212
2,854
1,888
93
24,603
25,055
198
9,078
31,036
40
393
533
24,264
125,247
146,404
146,232
1,081
54,727
1,472
56,199
90,205

246,526
101,614
13,556
56,477
187,803
6,996
258,625
486
388
115,592
26,459
2,246
1,686,808
7,034,186
677,392
677,251
14,986
226,183
9,551
235,734
441,658

84,318
1,698

166,414
13,922

222,477 128,737 105,142 49,937
507,156 1,079,992 109,408
267,988
69,964 123,559
18,262
24,904
52,196
29,941
34,979 25,841
46,492
14,248
11,039
4,761
2,074
2,681
3,062
767
23,618
4,538
5,184
3,643
56,276
26,122
25,956
9,135
1,434
1,094
1,399
279
65,300
38,378
49,854 29,127
101
173
57
15
30
78
8
18
21,754
10,628
10,094
2,923
666
1,466
13,752
145
752
333
375
106
364,638 266,870 438,890 53,694
1,140,720 1,110,401 1,903,342 308,051
115,345
72,520 178,198
31,901
115,340
72,507
178,154
31,898
2,318
1,903
2,731
752
39,219
21,544
61,326
9,205
1,344
753
4,007
396
40,563
22,297
65,333
9,601
74,782
50,223 112,865 22,300
24,300
2,940

14,372
1,039

42,416
2,133

3,510
3,175

16,919
56,147
43,171
8,140
114,783
8,257
157,136
17,174
415,833

910

2
20,352
35,108
3
245
4
11,014
5
9,671
6
31,763
7
47,565
8
16,242
9
13,939 10
4,913 11
157,838 12

1,004
673
174
12,066
819
775
4,930
27
96
974
37,271
9,089 12,089
225,921 1,588,560 475,907 560,712

499 33
918 34
17 35
2,909 36
92,677 37

40,160 19,505 26,474 39,358
48,565
97,413 854,727 216,500 226,886
9,952
29,025 18,760 41,905
4,622
13,174
70,783 15,274 13,791
3,721
1,020
786
13,262
6,944 4,092
825
544
1,894
802
1,732
396
447
13,539
3,531
1,977
851
4,055
38,070 18,054 10,135
2,324
76
1,136
1,230
348
80
3,533
43,793 18,731
9,909 2,923
2
103
2
33
90
1
199
27
33
1
8,115
39,957 10,531
9,590
590
6,626
225
420
3,139
164
43
161
338
138
125
34,078 282,543 85,864 160,231 13,155
208,778 1,435,867 416,614 510,413 76,476
17,143
152,693 59,293 50,299 16,201
17,143
152,684 59,290 50,235 16,157
583
3,166
1,856
1,677
2,325
5,596
51,341 21,653 16,299
4,180
303
763
785
1,200
137
5,899
52,104 22,438 17,499 4,317
11,244 100,589 36,855 32,800 11,884
2,377
182

55,006 16,024 8,409
915| 2,066| 1,482j

38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
56
59
60
61

3,065 62
111 63

Table 3. - Corporation income tax returns with balance sheets, 1/ 1950, by total assets classes: Number of returns, assets and liabilities, compiled
receipts, compiled deductions, compiled net profit or net loss, net income or defioit, net operating loss deduction, income tax. exoess profits tax,
total tsx, compiled net profit less total tax, and dividends paid by type of dividend
(Total assets classes and money figures in thousands of dollars)
Total assets classes 35/
Total

1 Number of returns with balance sheets 30/

Under
50

569,961
236,854
Assets:
Cash 31/
71,017,774
658,299
Notes and aooounts receivable
110,256,945
1,036,429
Less: Reserve for bad debts
1,618,159
20,578
Inventories
54,496,128
938,520
Investments, Government obligations 32/
109,822,025
33,687
6
Other investments 33/
96,760,151
228,481
7
8
Gross capital assets 34/ (except land)
209,097,750
2,724,707
9
Less: Reserves
74,283,473
1,058,903
10
Land
9,875,693
321,187
11
Other assets
12,944,414
219,652
12
Total assets 35/
598,369,248
5,081,481
Liabilities:
13
Accounts payable
31,297,968
1,037,016
Bonds, notes, mortgages payable:
Maturity less than 1 year
14
15,844,613
482,299
Maturity 1 year or more
65,718,784
835,034
15
Other liabilities
261,899,343
547,972
16
Capital stock, preferred
14,905,585
113,851
17
Capital stock, common
79,310,039
2,339,173
18
Surplus
reserves
12,410,022
31,669
19
Surplus and undivided profits 36/
124,950,570
1,130,266
20
Less: Deficit .27/
7,967,676
1,435,799
21
Total liabilities 35/
598,369,248
5,081,481
22
Receipts:
Gross sales 7/
370,249,365
23
8,647,181
Gross receipts from operations 8/
64,417,262
3,236,200
24
Interest on Government obligations (less amortizable
bond premium):
25
Wholly taxable 9/
1,537,843
1,798
Subject to surtax only J£/
175,387
26
53
Wholly tax-exempt 11/
216,934
27
61
Other interest
4,520,263
11,613
28
Rents 12/
3,432,795
255,109
29
Royalties 13/
456,402
15,127
30
Excess of net short-term capital gain over net long31,004
1,859
31
term capital loss 14/
Excess of net long-terra capital gain over net short1,035,969
32
24,995
term capital loss 14/
Net gain, sales other than capital assets 15/
491,338
33
57,984
Dividends, domestic corporations 16/
2,433,808
3,706
34
Dividends, foreign corporations 17/
640,916
35
334
Other receipts
2,883,925
124,630
36
Total compiled receipts 18/
452,523,211
12,380,650
37
Deductions:
Cost of goods sold 19/
281,414,615
38
6,448,159
Cost of operations 19/
35,957,766
1,817,243
39
Compensation of officers
7,456,839
864,537
40
Rent paid on business property
3,797,644
366,587
41
Repairs 20/
3,708,296
78,451
42
Bad debts
744,845
26,728
43
Interest paid
3,154,194
53,258
44
8,898,752
Taxes paid 2 ] /
197,247
45
249,666
Contributions or gifts 22/
3,152
46
Depreciation
7,754,430
215,547
47
Depletion
1,691,813
3,982
48
Amortization 23/
43,143
49
754
4,041,690
115,174
so Advertising
1,654,713
1,973
Amounts contributed under pension plans, etc. 24/
51
Net loss, sales other than capital assets 15/
190,658
23,407
52
49,228,658
2,105,017
Other deductions
53
12,321,216
409,987,722
Total compiled deductions
54
42,535,489
59,434
55 Compiled net profit or net loss (37 less 54)
42,318,555
59,373
56 Net Income or deficit 2/ (55 less 27)
332,432
47,883
57 Net operating loss deduction 25/
15,789,124
77,566
58 Income tax 3/
1,378,526
59 Excess profits tax 4/
363
17,167,650
77,929
Total tax
60
25,367,839
29/18,495
61 Compiled net profit less total tax (55 less 60)
Dividends paid:
11,470,729
74,139
Cash and assets other than own stock
62
1,289,065 |
3,728
Corporation's own stock
|
63
2
3
4
5

For footnotes, see

pp. 25-26

50
under

100
under

250
under

100

250

500

101,645

111,503

49,735

500
under
1,000
29,093

596

688

784,823
1,558,001
30,693
1,475,281
76,885
344,624
3,605,687
1,264,527
524,129
243,125
7,317,335

1,760,066
3,921,086
77,348
3,604,912
271,465
974,221
8,345,711
2,892,840
1,260,547
518,754
17,686,574

1,720,636
4,043,212
89,041
3,503,110
446,623
1,129,505
7,735,814
2,770,645
1,146,829
498,792
17,364,835

2,180,881
4,698,430
87,958
3,824,130
1,049,305
1,729,496
8,380,550
3,090,004
1,111,233
541,696
20,337,759

8,809,308
15,650,795
229,516
8,973,867
10,555,637
5,785,191
20,325,770
7,623,568
2,046,134
1,161,648
65,455,266

4,881,984
7,895,581
117,269
3,857,214
7,935,481
3,330,113
9,433,475
3,669,957
666,981
553,855
34,767,458

11,233,402
17,216,540
272,299
8,706,613
18,521,101
9,893,779
26,533,193
10,065,863
1,185,107
1,724,650
84,676,223

4,989,179
7,238,046
125,134
3,658,802
8,188,160
6,003,281
15,366,848
5,121,503
309,925
i;047,494
41,555,098

33,999,196
46,998,825
568,323
15,953,679
62,743,681
67,341,460
106,645,995
36,725,663
1,303,681
6,434,748
304,127,219

2
3
4
5
6
7
8

1,000
under
5,000
30,643

5,000
under
10.000
4,987

10,000
under
.50,000
4,217

50,000
under
100,000

100,000
and
over

9
10

11
12

1,177,740

2,567,745

2,389,714

2,456,607

4,991,294

1,910,173

4,508,377

1,823,654

8,435,648

549,321
1,243,119
564,334
133,471
2,318,045
52,752
1,898,977
620,424
7,317,335

1,249,204
3,194,930
1,408,119
366,969
4,557,445
173,641
5,045,960
877,439
17,686,574

1,228,471
2,934,444
1,703,714
419,494
3,830,338
235,509
5,286,691
663,540
17,364,835

1,348,440
3,054,929
3,112,026
554,755
3,882,075
349,942
6,260,624
681,639
20,337,759

3,444,906
6,589,823
22,665,291
1,590,631
8,853,438
1,304,846
17,336,412
1,321,375
65,455,266

1,135,886
2,405,667
15,908,818
794,655
3,779,167
794,535
8,484,367
445,810
34,767,458

8,162,898
7,375,155
36,785,767
2,449,299
9,219,083
2,166,764
20,787,284
778,404
84,676,223

770,383
5,145,011
17,683,047
1,539,264
4,796,201
976,794
9,574,851
754,107
41,555,098

3,472,805
32,940,672
161,520,255
6,943,196
35,735,074
6,323,570
49,145,138
389,139
304,127,219

14
15
16
17
18
19
20
21
22

11,991,203
2,720,983

29,351,748
5,025,743

28,510,621
4,196,419

29,417,542
3,994,887

63,542,245
8,235,624

84,617,305
2,811,611

55,447,486
6,843,346

22,468,578
3,719,248

96,255,456
23,633,201

23
24

2,538

7,064

9,835

92
97

370
341

368
617

17,013
292,287
9,211
1,392

55,609
615,949
21,632
3,570

63,129
464,422
26,900
3,308

18,012
1,140
2,080
89,286
389,272
27,193
3,183

156,215
7,582
28,831
479,827
293,456
74,371
7,505

107,543
7,406
21,307
278,746
97,947
33,463
1,863

243,780
22,978
40,942
622,487
203,610
136,246
2,965

109,959
11,985
16,754
274,496
105,757
26,877
1,989

881,099
123,413
105,904
2,628,057
714,986
85,382
3,370

25
26
27
28
29
30
31

24,203

59,719

67,153

81,066

203,479

99,345

208,436

73,300

194,273

49,799
7,092

96,982
20,519
1,500
323,928
35,584,674

67,379
28,093
297,855
33,737,042

64,521
51,201
2,177
311,498
34,453,058

82,770
224,195
12,684
554,127
73,902,911

13,068
128,435
10,155
202,206
28,430,400

44,630
418,678
76,066
405,328
64,716,978

4,003
276,163
61,392
98,261
27,248,762

10,202
1,275,726
475,602
425,045
126,811,716

33
34
35
36
37

22,563,649
2,747,791
1,041,264
288,720
154,278
66,475
166,146
432,156
17,435
444,364
17,102
1,262
255,058
14,810
14,083
3,907,735
32,132,328
1,604,714
1,604,097
34,829
567,440
53,715
621,155
983,559

23,196,034
2,609,299
846,296
255,218
157,401
57,078
170,664
461,370
21,401
448,445
31,516
1,062
272,188
29,546
13,711
3,890,955
32,462,184
1,990,874
1,988,794
32,251
762,135
67,450
829,585
1,161,289

49,532,895
4,972,569
1,270,872
455,063
420,740
129,214
409,710
1,167,383
55,639
1,000,233
120,750

18,697,231
1,535,253
322,368
164,988
220,937
42,207
161,459
585,519
21,390
392,921
68,540

853

730

121,285
2,628
9,993
2,103,837
14,819,315
437,705
437,608
34,472
135,815
2,459
138,274
299,431

23,134,808
3,186,237
1,407,698
390,728
167,870
75,847
181,039
461,981
14,798
504,853
12,629
1,681
268,408
8,576
16,405
4,380,443
34,214,001
1,370,673
1,370,332
54,711
419,407
28,885
448,292
922,381

646,556
142,755
42,955
7,959,201
68,327,388
5,575,523
5,546,692
50,638
2,203,620
186,873
2,390,493
3,185,030

307,334
88,636
12,069
3,178,138
25,799,720
2,630,680
2,609,373
16,595
1,030,665
85,837
1,116,502
1,514,178

41,631,045
3,423,923
480,325
357,382
628,598
98,431
389,697
1,282,915
42,966
973,423
278,921
4,602
707,838
863,997
19,515
7,223,802
57,807,380
6,909,598
6,868,656
22,905
2,661,505
216,488
2,877,993
4,031,605

16,761,642
1,704,111
118,332
190,827
298,293
32,304
226,004
632,273
12,041
477,056
115,234
1,085
273,465
123,574
5,024
3,072,021
24,043,286
3,205,476
3,188,722
21,082
1,199,533
97,876
1,297,409
1,908,067

70,160,302
12,343,431
336,927
1,079,365
1,501,259
181,363
1,323,190
3,462,041
55,846
3,054,376
1,038,777
30,420
1,074,384
978,218
33,496
11,407,509
108,060,904
18,750,812
18,644,908
17,066
6,731,438
638,580
7,370,018
11,380,794

38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

88,708
12,156

224,443
48,393

259,269
60,738

352,492
84,739

1,111,168
246,418

598,271
71,947

1,886,734
192,805

959,401
118,247

5,916,104
449,894

62
63

63
141,047
15,257,020
9,288,850
1,617,909
768,220
248,766
80,469
35,198
73,027
215,867
4,998
243,212
4,362

694

943

Table 4. - Corporation income tax returns, l/ 1950, by net income and deficit classes, for
returns with net income and returns with no net incomes Number of returns, arid net
income or deficit| also, for returns with net incomes Total tax, income tax, and
excess profits tax
(Net income and deficit classes and money figures in thousands of dollars)
Returns with n©
Returns with net income 2/
net income 2/
Net income
ExcessNumber
Number
Total
and deficit
Income
Net
profits
Deficit 2j
of
of
tax
classes 2/
tax 3/
income 2/
tax 4/
returns
returns
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

80,317
40,176
28,287
21,878
17,820
58,142
34,241
25,215
24,713
37,151
24,181
18,527
7,215
3,989
3,437
472
522
426,283

No income data (inactive
corporations)
For footnotes, see pp. 25-26,

33,050
6,253
6,249
4 92,078
27,203
58,772
11,417
11,417
26,440
38,341
69,861
3 16,221
13,974
13,971
39,931
__ 11,190
75,957
15,512
15,512
38,817
79,918
16,494
16,494
8,236
36,858
31 21,697
419,384
89,186
89,155
153,205
57
421,169
91,990
91,93S
9,281
113,002
158
437,797
97,440
97,282
4,970
85,699
416
555,877
126,771
126,355
2,894
64,547
20,594
1,293,807
376,251
355,657
5,706
196,476
44,825
1,689,930
617,481
572,656
2,650 181,533
85,521
2,872,620
1,150,208
1,064,687
1,198
178,154
76,988
2,496,855
1,029,702
952,714
273
92,736
87,972
2,775,818
1,150,471
1,062,499
127
88,902
216,531
7,135,473
2,931,323
2,714,792
64
117,572
98,150
3,275,777
1,331,721
1,233,571
1
5,003
756,194
20,448,676
8,260,594
7,504,400
5
69,458
44,140,741 38/17,316,932 38/15,929,488 1,387,444 203,031 1,527,437
-

•» 36,678

- 85 -

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 Internal Revenue
Service and prior to changes resulting from carry-backs
after the returns were filed.
2/ "Net income" or "Deficit" is the difference
between the total income and the total deductions
reported, exclusive of the net operating loss deduction.
See note 25.
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 longterm 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.
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 inccme
and excess profits taxes are limited to a 62 percent
ceiling rate, applied to the corporation's excess
profits net income. For taxable years beginning before
and ending after July 1, 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. For the calendar year 1950,
the maximum combined rate is approximately 57 percent
("23 percent normal tax, plus 19 percent surtax, plus
approximately 15 percent upon that part of the inccme
representing excess profits) and the ceiling rate is
approximately 52 percent. Throughout this report, the
a-nount of excess profits tax tabulated is after
limitation and before credit for foreign taxes paid.
5/ The industrial classification is based on the
business activity reported on the return. TNhen 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/ Number of returns shown excludes returns of
inactive corporations.
7/ "Gross sales" consists of amounts received for
goods, less returns and allowances, in transactions where
inventories are an income-determining factor. For "Cost
of goods sold," see "Deductions."
8/ "Gross receipts from operations" consists of
amounts received from transactions in which inventories
are not an income-determining factor. For "Cost of
operations," see "Deductions."
9/ "Interest received on Government obligations,
wholly taxable" consists of interest on Treasury notes
issued on or after December 1, 1940, and obligations
issued on or after March 1, 1941, by the United States
or any agency or instrumentality thereof, reported as
item 9(c), page 1, Form 1120.
10/ "Interest received on Government obligations,
subject to surtax only" consists of interest on United
States savings bonds and Treasury bonds owned in
principal amount of over $5,000 issued prior to
March 1, 1941, reported as item 9(a), page 1,
Form 1120; and interest on obligations of instrumentalities of the United States (other than obligations of Federal land banks, joint stock land banks,
and Federal intermediate credit banks) issued prior to
March 1, 1941, reported as item 9(b), page 1, Form 1120.
11/ "Interest received on Government obligations,
wholly tax-exempt" consists of interest on obligations
of States, Territories, or political subdivisions

thereof, the District of Columbia, and United States
possessions; obligations of the United States issued on
or before September 1, 1917; all postal savings bonds;
Treasury notes issued prior to December 1, 1940;
Treasury bills issued prior to March 1, 1941; United
States savings bonds and Treasury bonds owned in
principal amount of $5,000 or less issued prior to
March 1, 1941; and obligations issued prior to March 1,
1941, by Federal land banks, joint stock land banks, and
Federal intermediate credit banks. Interest from such
sources is reported under item 19(a), (b), and (c) of
schedule M, page 4, Form 1120.
12/ Amount shown as "Rents" consists of gross amounts
received. The amounts of depreciation, repairs, interest,
taxes, and other expenses, which are deductible from the
gross amount received for rents, are included in the
respective deduction items.
13/ Amount shown as "Royalties" consists of gross
amounts received. The amount of depletion, which is
deductible from the gross amount of royalties received,
is included in the item of "Depletion" in deductions.
14/ Capital gain or loss is the amount of gain or
los3 arising from the sale or exchange of capital assets.
(A net loss from this source is not deductible for the
current year, but may be carried over and applied against
capital gains in the five succeeding taxable years to
the extent not allowed as a deduction against any net
capital gains of any taxable year intervening between the
taxable year in which the net capital loss was sustained
and the taxable year to which carried.) The term
'"Capital assets" means property held by the taxpayer
(whether or not connected With trade or business), but excludes (1) stock in trade or other property which would
properly be included in inventory if on hand at the close
of the taxable year, (2) property held primarily for sale
to customers in the ordinary course of trade or
business, (3) property used in trade or business, of a
character which is subject to the allowance for depreciation,
(4) Government obligations issued on or after March 1, 1941,
on a discount basis and payable without interest at a fixed
maturity date not exceeding one year from the date of
issue, and (5) real property used in the trade or
business of the taxpayer. Beginning 1942 gains and
losses from (a) sale or exchange of depreciable property
and real property, used in the trade or business and held
for more than 6 months, and from (b) involuntary conversion of such property and of capital assets held for more
than 6 months are treated as long-term capital gains and
losses, if the gains exceed the losses. If the losses
exceed the gains, the net loss is deductible as an
ordinary loss. For taxable years beginning after
December 31, 1941, "short-term" applies to gains or
losses on the sale or exchange of capital assets held six
months or less; "long-term" applies to gains or losses on
capital assets held over six months.
15/ "Net gain or loss, sales other than capital
assess" is the net amount of gain or loss arising from
the sale or exchange of depreciable and real propertyused in trade or business and short-term noninterestbearing Government obligations issued on or after
March 1, 1941, on a discount basis. If the property
used in trade or business has been held for more than
6 months, special treatment of the gain or loss is
provided as described in note 14 above.
16/ "Dividends, domestic corporations" consists
of dividends received from domestic corporations subject
to income taxation under chapter 1 of the Internal
Revenue Code. This item is reported in column 2,
schedule E, page 2, Form 1120, and is the amount used
for computation of the dividends received credit.
17/ "Dividends, foreign corporations" is the
amount reported in column 4, schedule E, page 2.
Form 1120, and is not used for the computation of
dividends received credit.

- 26 -

Footnotes for tables in this release - Continued
18/ "Total compiled receipts" consists of
gross sales (less returns and allowances), gross
receipts from operations (where inventories
are not an income-determining factor), all
interest received on Government obligations
(less amortizable bond premium), other interest,
rents, royalties, excess of net short-term
capital gain over net long-term capital loss,
excess of net long-term capital gain over net
short-term capital loss, net gain from sale
or exchange of property other than capital
assets, dividends, and other receipts required
to be included in gross income. "Total compiled
receipts" excludes nontaxable income other than
tax-exempt interest received on certain
Government obligations.
m-V Where the amount reported as "Cost of goods
sold" or "Cost of operations" includes items of
deductions such as depreciation, taxes, etc.,
these items ordinarily are not transferred to
their specific headings. However, an exception is
made with respect to amounts reported in costs
and identifiable as "Amortization of emergency
facilities" and "Amounts contributed under
pension plans, etc.," such amounts being transferred to the respective deduction items.
20/ Amount shown as "Repairs" is the cost of
incidental repairs, including labor and supplies,
which do not add materially to the value of the
property or appreciably prolong its life.
21/ The item "Taxes paid" excludes (l)
Federal income tax and Federal excess profits
taxes, (2) estate, inheritance, legacy, succession,
and gift taxes, (3) income taxes paid to a foreign
country or possession of the United States if any
portion is claimed as a tax credit, (4) taxes
assessed against local benefits, (5) Federal taxes
paid on tax-free covenant bonds, and (6) taxes reported in "Cost of goods sold" and "Cost of operations,"
22/ The deduction claimed for "Contributions
or gifts" is limited to 5 percent of net income as
computed without the benefit of this deduction,
23/ Amount shown as "Amortization" is the
deduction, provided by section 124 A(b) of the
Internal Revenue Code, with respect to 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.
24/ "Amounts contributed under pension plans,
etc.," consists of deductions claimed under section 23(p) of the Internal Revenue Code for amounts
contributed by employers under pension, annuity,
stock-bonus, or profit-sharing plans, or ether deferred compensation plans.
25/ 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, aad 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 carryback of net operating loss to one year and to lengthen the
carry-forward to five years.
26/ Amount shown as "Compensation of officers"
excludes compensation of officers of life
insurance companies which file Form 1120L. Data not
available.
_2/ See note 26.
28/ Compiled net loss or deficit.
29/ Compiled net loss after total tax payment.
30/ "Number of returns with balance sheets" excludes
returns of inactive corporations and returns of active
corporations for which balance sheet data are lacking,
31/ Amount shown as "Cash" includes bank
deposits.
32/ Amount shown as "Investments, Government
obligations" consists of obligations of the United
States or agency or instrumentality thereof as well as
obligations of States, Territories, and political
subdivisions thereof, the District of Columbia, and
United States possessions. See note SS.
33/ Where investments are not segregated as
between "Government obligations" and "Other,"
the entire amount is included in "Other investments."
34/ Amount shown as "Capital assets" consists of (1) depreciable tangible assets such as
buildings, fixed mechanical equipment, manufacturing facilities, transportation facilities,
and furniture and fixtures, (2) depletable tangible assets—natural resources, and (3) intangible
assets such as patents', franchises, formulas,
copyrights, leaseholds, goodwill, and trade-marks.
(Amounts in tables 2 and 3 of this release exclude
land.)
35/ Assets and liabilities are tabulated
as of December 31, 1950, oj: close of fiscal year
nearest thereto. Total assets classes are based
on the net amount of total assets after reserves
for depreciation, depletion, amortization, and
bad debts. Adjustments are made in tabulating the
data as follows: (l) Reserves, when shown
under liabilities, are used to reduce corresponding asset accounts, and "Total assets" and
"Total liabilities" are decreased by the amount
of such reserves, and (2) a deficit in surplus,
shown under assets, is transferred to liabilities, and "Total assets" and "Total liabilities,"
are decreased by the amount of the deficit.
36/ Amount shown as "Surplus and undivided
profits" consists of paid-in or capital surplus
and earned surplus and undivided profits. See
note 37.
,3J/ Amount shown as "Deficit" consists of
negative amounts of earned surplus and undivided
profits.
38/ Included in the total, but not in toe detail,
under "Income tax"and "Total tax," is 2144,000
of tax reported on returns with no net income. (See
note 5.)

1 /> A

TREASURY DEPARTMENT
Washington
FOR RELEASE 1 P.M..,
Monday, November 9, .1953.

Remarks by Secretary of the Treasury Humphrey
at luncheon of Detroit Economic Club,
Sheraton-Cadillac Hotel, Detroit, Michigan,
at about 1:00 p.m., Monday, November 9, 1953
OUR ECONOMY AND PEACE
We live today in a difficult time.
The world is shadowed by the fear of war and destruction.
Freedom itself is at stake.
Today America Is called upon to save the freedom that we
cherish.
What principles should rule and guide us as we strive to save
the heritage we have?
.We must face our task soberly.
We must face it patiently and resolutely and we must face It
with confidence.
We are sober because we can see no problem that can be solveci
in an easy way. : We do not for an instant see Soviet aggression as
some obliging kind of demon that can be disposed of by speaking
a phrase or indicating a threat. We do not dream that—here in
ourown land—the farmer can be- helped,- the worker protected, the
consumer relieved, -or the businessman encouraged--by the golden
promises of the demagogue.

H-304

- 2We are patient and resolute for like reasons. We are
realists. We scorn panaceas. We respect the fortitude, the
courage, the staying-power of the American people. We show that
respect by always speaking the plain truth, as we know it".
And we are confident for precisely this same reason: we
believe in the people. We believe in the ingenuity and the
industry of the American as resources that no nation on earth can
match. We believe in his capacity to work, to save, to invent, to
sacrifice, to create, to dream good dreams—and to bring them to;;'
true life.
To do all these things, the people need but one thing once
more: a government they can trust—a government worthy of that
trust.
That is the kind of government to which we are pledged.
That is the kind of government which we will give.
With this state of mind, we are dedicated instantly and
inevitably to achieving a certain state of the nation.
What is this state of the nation we seek?
What do we see to be the great and urgent tasks before us?
I believe they can all be summarized in one statement:
a sound economy sustaining a sturdy defense against the enemies
of freedom—inspired by a political leadership that is spiritually
strong and honest.
Let us analyze this statement.
In the final sense, the health of our economy counts for much
more than profits or wages. We assess it not merely in terms of
gross national income, balanced budgets, equitable taxes, fair
interest rates. We look to it for more than homes and cars,
washing machines and television sets. We see our economy as the
first line of defense for every freedom that we cherish.
No other purpose is worthy of us at this time in history.
No other purpose—material or selfish or partisan—guides
this government.

1 Vj>

- 3Now what have we done to serve this purpose?
We have,a more stable economy than we have had in many yearsfree and uncontrolled.
The alarming legacy from the past, inherited by the present
administration ten months ago, was arbitrarily ruled by needless
controls..
We lifted, those controls. They were raised almost as
quickly as the voices of mourners crying that it could never be
done without wrecking the economy.-, You all remember that debate,
Yet within a matter of weeks, the debate was as dead as the
controls
This was not done by magic or,qratory. It was done by
applying sound, honest financial policies, freeing natural
correctives which safely guarded the whole price structure. The
proof of their success is that over the period of a year—when
this major overhauling of our economy was achieved—the cost of
living moved less than one-half of one percent. This was the
disaster which our critics had prophesied.
The financial policies making this possible have had a single,
simple, focus and aim: to give the American people honest. American
money
The only thing remarkable about, this policy is that many
critics and a few demagogues, should, think it remarkable..
The fact .that they do is a sad. commentary upon the, habits of
financial thinking acquired over the last twenty years
But the people themselves.are not amazed- Honesty is an old
American habit. So..is saving. So is individual initiative
So
is industry
So is working with hands and brain. So is freedom.
And two decades of financial double-talk have not changed these
fundamental characteristics one single bit.
Honest money—the dollar that baiys a dollar's worth of goods—is not created by wish or promise or fiat,
It depends upon three things: sound budget policy, a sound
Federal Reserve System, and sound debt management.
We have worked toward achieving all of.these.

- 4First: We are on our way toward getting the budget of the
federal government under control as rapidly as expenditures for
adequate defense permit. We concentrate on this purpose because
we know that indefinite deficit financing spurs the forces of
inflation and eventually cheats every family in the nation.
Knowing this elemental truth, we have cut the prospective deficit
for the current fiscal year from more than $11 billion to
less than $4 billion.
But the next year is even more difficult. The best estimates
that we now have show that if our spending continues at the present
rate it will exceed our estimated income after termination of the
excess profits tax and reduction of individual taxes effective
December 31st by between $8 and $9 billion.
There are only four alternatives:
We can accept an $8 or $9 billion deficit in fiscal
1955.
We can cut expenses.
We can raise additional taxes, or
We can have a combination of the three.
The solution of this dilemma is our most urgent problem at
this time.
The answer is simple to state but terribly hard to accomplish,
We must first find and then maintain that delicate balance between
security from attack from abroad with a strong and vigorous economy
here at home. We must balance the cost of adeqaiate military
security with the capability of a strong economy to pay the bill.
And this must all be reckoned not on the basis of a short and all
out effort for a limited period of time but for the long pull not
knowing when or if ever the critical moment may appear.
It means the creation of a fluid mobile continually modern and
effective system of defense and the control of Its cost within
limits which the country can long afford to maintain.
It means an aggressive dynamic economy for1 that is the very
foundation of any sustained military strength.
It means military planning and the control of all governmental
expenditures so carefully balanced that we obtain the adequate
posture of defense that we require for our security within the
limit of our means.

34 Q
- 5Second: The Federal Reserve System is free to ensure effective
monetary policy. For many years the Federal Reserve's supporting
of government securities at par, to preserve artiflcally low
interest rates, invited banks and other holders of government bonds
to sell their bonds—making the debt almost like currency. This,
of course, was a sure way to encourage inflation. Today, the '"Federal Reserve System is free to use its power to provide a supply
of credit to meet the requirements of natural demand and avoid
excesses leading toward either inflation or deflation.
And Third: We have a program to meet the problem of debt
management imposed upon us by the inheritance of a total debt of
more than $273 billion of which nearly three-fourths
matures within less than five years, we have offered the first
long-term loan in twenty years and will continue to extend the
maturities of refinancing operations whenever and to whatever
extent appropriate conditions will permit.
Rates of interest are currently determined by changing market
conditions fluctuating both up and down with the supply and demand
for money. Partisan critics have loudly deplored any increase in
interest rates as if they benefitted only the few and defrauded
most of the people. Nothing could be further from the truth.
There are more savers than borrowers in America--more people who
benefit from higher interest than those who pay it. These
beneficiaries are the 45 million families—the 122 million people—
who have invested in savings accounts, life insurance, pensions,
annuities, government bonds, mortgages, fraternal and mutual
institutions and many other forms of investment for savings.
These, then, are the ways we have sought to make America's
economy strong with honest money.
What does the result of such a policy mean?
It means a check in the trend of dollars that continue to
buy less and less in clothes, in food, in homes.
It means savings—savings not only to give individual families
better security, health and education but- also to give the nation
the indispensable resources to build .factories, expand mills,
develop mines, drill oil wells, and erect power'plants. Savings
make jobs, and are essential for the high productivity of American
labor and our increasingly higher and higher standards of living.
It means—in cheaper costs to state and local governments—
the chance to build more of the highways, the hospitals, the
schools which are the priceless monuments of a nation prosperouslv
at peace.

- 6All these are our resources for the saving of freedom.
They are—in the largest sense—but some of the reasons for
holding confidence in our economic future.
They are part of the answer to those who see-or pretend to
see-threatening disaster in our economy, especially if the margin
of defense industries is cut.
Neither American business nor American labor needs war to be
prosperous.
Our population is Increasing—by thousands of new-born each
day—at a rate of close to 15$ in a decade.
The needs and wants of Americans are increasing no less
swiftly. Every American family wants more opportunity and a better
and fuller life for each succeeding generation.
And our capacity to meet these needs—as we stand on the
threshold of an atomic age for the good of mankind instead of for
evil—is beyond the imagination of most of us living today.
As the threat of aggression recedes, our huge expenditures
for defense can decline.
But this does not mean that we are headed for a depression.
In our great and growing economy, adjustments are constantly
going on. Wherever these adjustments are required, let's.face
them with confidence and correct them: keep our eyes open and
not believe in blind faith; seek out the .soft spot and see what
can be done about it.
Government.spending must be reduced. But tremendous amounts
of money will still be pumped into the economy by the government
because only relatively small reductions can be made quickly.
Likewise, it Is the definite policy of this, administration,
through tax reduction, to return to the people for them to spend
for themselves all real savings in government spending which can
be reasonably anticipated. This we are doing with the expiration
of the excess profits tax and the 10 percent reduction in individual
income tax which- will become effective on January 1st.
The reduction of taxes is a determined purpose of this administration. The sooner it is done, the sooner the consuming community
can quicken its demands upon the productive capacity of the whole
nation. And the potential increase in these demands through tax
relief, as fast as our defense needs permit, is the surest
stimulant to continued progress and a high level of activity.

- 7The o-reat Additions to producing capacity which have been
stimulated by government action over the past few years are now
becoming available. The volume of goods we can now produce is
far greater than ever before. Lower percentage levels of operation
in some lines will develop more material than we have ever had,
and it may well be that in some cases this output may be all that
the country needs for a while. But does this mean catastrophe?
Our volume of production and employment can be higher than
ever, and we may still have some capacity in reserve. High
volume but good supply means competition, efficiency, and more
value for the consumer's dollar a Surely we haven't reached the
point in this country so that all vie can see is calamity if the
day of allocations and the ordertaker is passing.
It cannot be that Americans fear a free competitive economy.
It is in such an economy that'we grew great. A little more
production, a little more selling, a little more effort and
ingenuity have given us higher and higher standards of living.
Surely we are not fearful that we cannot do It again.
I can assure you that this Administration is dedicated to
the maintenance of a high level of employment and production
and will always pursue policies to foster that end.
This is the kind of economy we are striving to encourage:
healthy and imaginative, fortified with sound currency, confident
of the prudence of its government, and ready for the exciting
challenges of tomorrow. Such an economy is equipped and alert to
meet—and to live by—the simple truth that America is the world's
greatest unfinished business.
I remind you again: this American economy—healthy, vital,
daring—is our first line of defense for freedom itself. For
a fact that cannot be too often repeated is this: America's
greatest defense against any enemy is the power and potential of
American mass production.
This is indeed a plain truth. And yet general awareness of
it would free us from a great deal of that kind of partisandebate which today generates more heat than light.
We know that a sick American economy would fulfill the
Communist dream of conquest just as surely as disaster on the
battlefield.

- 8We know that the strictly military defense of America does
not result simply from the spending of huge amounts of money. It
is of much more importance to know how well planned and how
efficiently the expenditures are made and how fully we get our
money's worth.
Our security depends upon economic strength, guarded and
directed to sustain a defense program whose worth can be measured
not by its cost but by its wisdom.
We live in an age witnessing a revolution in scientific and
production techniques. In such an age, the surest formula for
defeat would be a static defense--committed to old-fashioned
strategy--served by obsolete weapons.
For greater emphasis I repeat here what I have said before.
There would be not defense but disaster In a military program
that scorned the resources and problems of our economy—erecting
majestic defenses and battlements for the protection of a country
that was bankrupt and a people who were impoverished.
There would be not defense but disaster in so massive
a program of arms production that our strength and resources
might become exhausted and we would lose the capacity to continue
the effort — so that tomorrow's threat would have to be met with
yesterday's weapons.
To all those who pretend that these problems can be solved by
a dramatic slogan—to all those who give the people choices
between false alternatives—we Say that the essential truths are
simply these:
First: We know that a healthy economy is America's surest
source of strength in meeting any enemy.
Second: We know that a high level of employment and
industrial activity is essential for the maintenance of such an
economy.
Third: We know that no such economy could be assured without
the health of honest money, economical government, and sound
monetary policy.
Fourth: We know that a balanced but adequate defense program,
fluid and imaginative, mobile and elastic, will and must be
supported by whatever appropriations logic and necessity demand.

- 9 -

0/.Q
W Y u

We hold these truths not as some preconceived economic
axioms—or theories of which we are prisoners—but as simple,
common-sense rules for achieving true national security.
Of all these truths, this Administration is deeply aware.
We are aware, no less, that the economic problems we must
meet do not end at our shores.
Our trade in the world--and the world's trade with us—are
essential parts of the strength all of us need to stay free.
Our own Industries are vitally dependent upon raw materials
from the most distant parts of the earth. Our farms as well as
industry need markets abroad--without which our whole farm economy
could be gravely dislocated--even while many foreign nations are
increasing hugely their own production of grains and other
foodstuffs.
What happens In the valley of the Nile, on the plains of
Turkey, or in Pakistan may affect our farms in Kansas and Iowa.
What happens in Malaya or the Belgian Congo may affect our
industries and our defense program.
And so our defense of ourselves inevitably involves the
conditions obtaining in many areas--seemingly distant and strange,
yet really vital and near.
These, too, are truths by which we must live in this difficult
period. By them we must be guided in all our judgments and
actions, as the chosen servants of America at such a time.
But above all these matters, I venture to suggest that one
challenge rises to tower over all others. We must provide that
moral leadership, that steadfastness of spirit and mind, which
alone can make us worthy of the high commission that history has
conferred upon us.
We must care more for truth than for success.
We must care more for the hopes of the people than the votes
of the people.
We must always worry more about our problems than the headlines.
We must scorn the glib promise, the false phrase, the shallow
excuse, and the clever evasion. Let these be the devices only of
those who hunger for power.
Let our ambition be but one: justice and security for America.
Born of a brave past, we have nothing to fear of the future.
If worthy of the present, the future will be ours—with a freedom
of peace and productivity beyond the dreams of our fathers—worthy
of the hopes of our sons.

24$

Friday, MoveBtber 6, 19$3*

The Treasury Department today announced the subscription and allotment figures with reapeet to the current offering of 2-3A percent treasury Bonds of 1961.
Subscriptions and allotjaents were divided among the several Federal Reserve
districts as followss

District

total
Subscriptions

total
Allotments

$ew Tork

Atlanta
Chicago
St. louis
ffJUmeapolis
Kansas City

687,01*7,500
5,010,871,500
1428,960,000
703,281i,000
1*87,777,000
6BQ96$29OOQ
1,797,365,000
ti!*8f132,0G0
23^,709,000
391,I*li3,5O0
1*77,097,000
1,195,168,500

Government Invest*
stent Accounts

131,52*3,000
902,75li,000
73,275,000
118,611,500
86,1*28,500
113,866,500
302,936,500
75,776,500
1*0,233,000
67,209,000
78,082,500
197,^9,000
50,000,000

total*

|12,5ti2,507,000

$2,238,135,000

Allotments by investor classes were as follows:
Investor Class Allotments
(In millions of dollars)
Individuals, partnerships,
4 pors* trust acute..••••••..«••..«

Savins banks

101.5

l61*.5

Insurance companies
«.«••
Dealers and brokers.
Ponsion and retirement funds. .#....
Commercial banks.
..*,*
All others.
Total

,s
drand total..*......

186.7
170*5
65*3
1,299.0
l63.t
37.1*
12,188.1

5o«o
$2,238.1

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, November 6, 1953.

• " ! I
^ V, \J

H-305

The Treasury Department today announced the subscription and
allotment figures with respect to the current offering of 2-3/4
percent Treasury Bonds of 1961.
Subscriptions and allotments were divided among the several
Fsderal Reserve Districts as follows:
Federal Reserve
District

Total
Subscriptions

Total
Allotments

Boston
687,047,500
131,543,000
$
New York
5,010,271,500
902,754,000
Philadelphia
428,960,000
73,275,000
Cleveland
703,284,000
118,611,500
Richmond
487,777,000
86,425,500
Atlanta
660,652,000
113,866,500
Chicago
1,797,365,000
302,936,500
St. Louis
443,132,000
75,776,500
Minneapolis
23^,709,000
40,233,000
Kansas City
391,443,500
67,209,000
Dallas
477,097,000
78,082,500
San Francisco
1,195,168,500
197,419,000
Government Inve stment $12,542,507,000
50,000,000
Accounts
$2,238,135,000
TOTAL
Allotments by investor classes vrere as follovrs:
Investor Class Allotments
(Ir. millions of dollars)
Individuals, partnerships,
& pers. trust accts
Savings banks
Insurance companies
Dealers and brokers
Pension and retirement funds,
Commercial banks
All others
Unclassified
Total
Government Investment Accounts
Grand Total
0O0

101.5
164.5
lco.7
170.5
65!3
1s 299 \ 0
163! 2
37]4
v2,Ica!l
50,0
92,23c]l

9 CM
K.r \J mL

Mr. Taylor, a Kentuckian by birth, joined the Revenue Service
as an attorney In 1928. He gained promotion to Assistant Head of
the Civil Division in the Chief CounselTs Office, and subsequently
to Assistant Appellate Counsel in Chicago. He went into private
practice in 1942.
He is a graduate of Washington and Lee University law school
at Lexington, Virginia, and a veteran of World War I.

^-: y c

IMMEDIATE RELEASE
Monday, November 9, 1953

//- 3?k

Daniel A. Taylor was sworn in as Chief Counsel of the Internal
Revenue Service at a ceremony today (10:00 a. m.) at the Internal

Revenue building* Kenneth 1. G-eramill, Assistant to the Secretary/
Who has been acting Chief Counsel since June,
'
v
«aa<»jWtee^-QiM&e- ¥i^ea<
administered the
oath of office.
The ceremony included remarks by Under Secretary of the Treasury

Marion B. Folsom and Internal Revenue Commissi oner T.JDoleman And
Under Secretary Folsom,
said the appointment of air. Taylor completed a new
team of directing heads for the Service. He recalled Mr. Taylor's

work with the Service in several important capacities over a period
of fourteen years, and said Mr. Taylor thereafter won recognition
In private practice as a leading member of the tax bar of Chicago.
n

We jK^e-^#i3m^^^ regard

him as an excellent addition to the new staff of Revenue Service
officials," the Under Secretary said.
"The appointment of Mr. Taylor equips the Internal Revenue
Service with a most capable €ssefe Counsel and one in whom we have
every faith," Commissioner Andrews said.

TREASURY DEPARTMENT
WASHINGTON, D.C
or: o
O

Immediate Release,
Monday, November 9, 1953.

H-306

Daniel A. Taylor was sworn in as Chief Counsel of the
Internal Revenue Service at a ceremony today (10:00 a.m.) at
the Internal Revenue Building. Kenneth W. Gemmill, Assistant
to the Secretary, who has been acting Chief Counsel since
June, administered the oath of office.
The ceremony included remarks by Under Secretary of the
Treasury Marion B. Folsom and Internal Revenue Commissioner
T. Coleman Andrews.
Under Secretary Folsom said the appointment of Mr. Taylor
completed a new team of directing heads for the Service. He
recalled Mr. Taylor's work with the Service In several important capacities over a period of fourteen years, and said
Mr. Taylor thereafter won recognition in private practice as
a leading member of the tax bar of Chicago.
"We regard him as an excellent addition to the new staff
of Revenue Service officials," the Under Secretary said.
"The appointment of Mr. Taylor equips the Internal Revenue
Service with a most capable Chief Counsel and one in whom we
have every faith," Commissioner Andrews said.
, Mr. Taylor, a Kentuckian by birth, joined the Revenue
Service as an attorney in 1928. He gained promotion to
Assistant Head of the Civil Division in the Chief Counsel's
Office, and subsequently to Assistant Appellate Counsel in
Chicago. He went into private practice in 1942.
He is a graduate of Washington and Lee University law
school at Lexington, Virginia, and a veteran of World War I.

0O0

KJ <M*

O D.^r

xy~ -3 * 7

BBLB49K VRKGRa n S E U m s ,
Tmadmy, Hairier 10, 1953.

Tim Ttmammy .Dapartnanb announced last ®v©sing that th© teadar® for 11,500,000,001
or ttefefiOxmt®, of ^l-dar treasury bills to b® dated Sovwibtr 12, 1953, « d to matuvi
fataiaiT 11, 19Kt> afetoh » r s off«®d on Iwafeur $, war® mommad at the Ftodaral Raterrt
Banks an "Ic-veaiber 9*
The detail* ©f thia lsaue are as follow t
Total applied far - ^2,198,501,000
fatal Meaptid
- 1,500,316,000
ATOfag* {irloo

(incites $255,68$,000 oittaroi on a
noMGu^tltiv* basis and mamptad. in
full at the averages pric® ahovn below)
- ff. 626 j^uimLanfc a?at® of dlammt apprac. 1«1#II2| p@r aroma

Eange of

empati%iini bidas

Lew

• 99*700 Iq^ilvalafit rat® a£ discount apprac. 1.1@7$ par annua
- 99.621
»
«
•
•
*
1.1*99% M tt
(71 fwreant of thm

DlatarLcti
3oaton
Mm lavk
Piiiladelpnia
Clatalaad
Sltibaosad
Atlanta
Chicago
St. Loul®
Minneapolis
gfcxiaaa City
Ballns
San ftranolaco

total
applied for

fetal
&ecept@&

23*1*08,000
1,622,190,000
33,142,000
38,019,000

i5,l*8S,ooo
30,728,000
226,012,000
35,9l6,ooo
12,873,000
$k,923,000
30,353,000
74,652,000
TOTAL

p,is?a,5oi,ooo

20,028,000
1,015,1*30,000
18,342,000
38,019,000
13,985,000
29,138,000
131,767#000
28,616,000
12,773,000
51,133,000
30,153,000
60,282,000

H»S0O*3l6,ooo

TREASURY DEPARTMENT
WASHINGTON, D.C
Rj&EASE MORNING NEWSPAPERS,
Tuesday, November 10, 1953.

vaK
v_- <u •*->

H-307

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated November 12, 1953* and to mature February 11, 1954, which were
offered on November 5, were opened at the Federal Reserve Banks on
November 9.
The details of this issue are as follows:
Total applied for - $2,198,501,000
Total accepted
- 1,500,316,000 (includes $255,685,000
entered on a noncompetitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.626 Equivalent rate of discount approx.
1.482$ per annum
Range of accepted competitive bids:
High - 99.700 Equivalent rate of discount approx.
I.l87$ per annum
Low
- 99.621 Equivalent rate of discount approx.
1.499$ per annum
(71 percent of the amount bid for at the low price was accepted)Federal Reserve
Total
Total
District
Applied for
Accepted
Boston
i
23,408,000
$
20,828,000
New York
1,622,190,000
1,015,430,000
Philadelphia
33,142,000
18,142,000
Cleveland
38,019,000
38,019,000
Richmond
15,485,000
13,985,000
Atlanta
30,728,000
29,188,000
Chicago
226,812,000
181,767,000
St. Louis
35,916,000
28,616,000
Minneapolis
12,873,000
12,773,000
Kansas City
54,923,000
51,133,000
Dallas
30,353,000
30,153,000
TOTAL
San Francisco
74,652,000
60,282.000
$2,198,501,000
$1,500,316,000
0O0

O J- ,-x

*-- ^ 0

BlffiDIATE RELEASE
Monday, November 9919$3
Secretary Humphrey announced that the Treasury today
purchased from the Federal Reserve System and retired $500 million
of 2—1/8 percent Treasury notes maturing December 1, 1953* Payment
was made in effect by the use of gold which was part of the Treasuiy
General Fund balance. The use of gold in this way to retire Government
securities held by the Federal Reserve System has no effect on bank
reserves and therefore is neither inflationary nor deflationary* c~^
This completes the program contemplated in connection with the
sale of $2.2 billion of 2-3/W 7 year and 10 month bonds, delivery
of which today would have otherwise carried the national debt up to
or beyond the legal limit.
A substantial excess of expenditures over receipts during the
next two months is expected to reduce the Treasury balance to the
low operating level of about %2 billion early in January. Normally,
the Treasury would have taken larger advantage of present very
favorable market conditions to borrow enough money to maintain a
more adequate balance. Since this is impossible under the present
public debt ceiling, it is necessary to put to use a substantial
part of the gold in the Treasury General Fund.

?*~y ^ — ^

• *

A Z _

*— ^=-

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, November 9, 1953.

H-308

Secretary Humphrey announced that the Treasury today
purchased from the Federal Reserve System and retired
$500 million of 2-1/8 percent Treasury notes maturing
December 1, 1953. Payment was made in effect by the use
of gold which was part of the Treasury General Fund balance.
The use of gold in this way to retire Government securities
held by the Federal Reserve System has no effect on bank
reserves and therefore is neither inflationary nor deflationary.
The technical procedure was to pay for the securities from
Treasury balances in the Federal Reserve bank^; tie balances
were then restored by the deposit of gold cera^ricates.
This completes the program contemplated in connection
with the sale of $2.2 billion of 2-3/4$ 7 year and 10 month
bonds, delivery of which today would have otherwise carried
the national debt up to or beyond the legal limit.
A substantial excess of expenditures over receipts
during the next two months is expected to reduce the Treasury
balance to the low operating level of about $2 billion early
in January. Normally, the Treasury would have taken larger
advantage of present very favorable market conditions to
borrow enough money to maintain a more adequate balance.
Since this is impossible under the present public debt
ceiling, it is necessary to put to use a substantial part
of the gold in the Treasury General Fund.

oOo

STATUTORY DEBT LIMITATION
AS O F October 31, 1953

TREASURY DEPARTMENT

"^'/J^
Washington,

NOV.

1953

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issuedunder"authority

. . ~
prior to maturity at the option of the holder
snail 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
""Sasu^f * 19 ,509,020,000
Certificates of indebtedness
Treasury notes
H I I
Bonds Treasury
„....
Savings (current redemp. value) _
Depositary.......
'"
Investment ^rils^IIIZIIIII
Special Funds Certificates of indebtedness ..
Treasury notes
Total interest-bearing
Matured, interest-ceased
J
Bearing no interest:

United States Saving Stanopis._
Excess profits tax refund bonds
Special notes of the United States:
'
Internat'l Monetary Fund series _
Total
Guaranteed obligations (not held by Treasury):
Interest-bearing:
De be nture s: F .H.A
_ _
Matured, interest-ceased „

26,385,334,000
39,993,527,900

$ 85,887,881,900

73 , 239 , 348 , 800
57,775,453,978
454,121,000
12,939,481,000

±44,408,401;, 778

, .
, ,
26,512,416,000
l4 , 375 ,283 ,900

40,887,699,900
271,183,986,578
296, 206, 220

. __ .

47,523,279
1,356,536.
1,280.000,000

1,328,879,815
272,809,072,613

x, p-,0 pp/;
6Z4 , 0 ±9 , 0 0 0
1,119 a 100

65,938,986

Grand tota 1 outstanding
Balance face amount of obligations issuable under above authority

272 ,0/5 ,011,599
2 , lc\\ , 700 ,4Ul

Reconcilement with Statement of the Public Debt October 31,. 1.953
(Date)

(Daily Statement of the United States Treasury, O c t o b e r ^Ci^ 19.5.3

)

(Date)

Outstanding Total gross public debt
„
Guaranteed obligations not owned by the Treasury
Total gross public debt and guaranteed obligations
_
Deduct- other outstanding public debt obligations not subject to debt limitation

273,386,221,023
65 ,7a0,-/00
273,U52,160,ul7
5 7 f .il4o.i4-"i.

272,875,011,599

Treas.Dept.-PD-Wash.,D.C.

STATUTORY DEBT JJMIIATION
AS OF OCTOBER 31 f 1 9 &
November 129 1953

_ __ ^ o o

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 (Acti 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 wbich 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 amendecl
Interest-bearing:
Treasury bills,,••,,.,,
• $19,509,020,000
Certificates of indebtedness,,, 26,385,334,000
Treasury notes
.,...»..,., 39,993,527,900 $85,887,881,900
Bonds ••
Treasury,.,.,.4
,,... 73,239,348,800
Savings (current redemp,value) 5>7*775>453*978
Depositary,,„•,,.•.,•.,.,.•.
454,121,000
Investment series,.,•••,,•••• 12,939,481,000 144,408,404,778
Special Funds Certificates of indebtedness, 26,512,416,000
Treasury notes*....,
14,375,283,900 40»887*699,900
Total interest-bearing
••*„•„••
• 271,183,986,578
Matured, interest-ceased,,••••«»•••,,,,o,•,,,,,»,•«
296,206,220
Bearing no interests
United States Savings Stamps,.,,.
47,523,279
Excess profits tax refund bonds,,
1,356,536
Special notes of the United States:
Internat'l Monetary Fund series 1.280,000,000
1^328,879,815
Total,,,, .......,...,..
,
. . „ • 272,5*09,072,613
Guaranteed obligations (not held by Treasury):
•
Interest-bearing:
Debentures: F,H,A, .,
,,,,,,
64,819,886
Matured, interest-ceased,,,,,,,,,.,
1,119,100
65,938,986
Grand total outstanding....«••
•
••
....,»,.» 272,875t011f599
Balance face amount of obligations issuable under above authority,,,, 2,124,988,1+01
Reconcilement with Statement of the Public Debt October 31, 1953
(Daily Statement of the United States Treasury,October 30, 1953)
Outstanding •
Total gross public debt,.
«•••••
.,,.,
••.,..•,••••* 273,386,221,023
Guaranteed obligations not owned by the Treasury,,•*,«««••••...«••
65,938,986
Total gross public debt and guaranteed obligations,,,,,,,..,,,,•,,, 273,452,160,009
Deduct - other
outstanding public debt• obligations not subject
to
H.309
debt limitation
.•••••••*•
272,075,011,599
577,148,410

o r> r-t

Troaoury Pxeaa Rmleaae

-3^
flales of Series E and H Savings Bonds during the first ten months of
1953 totalled $3*647,000,000, the Treasury announced today.

Redemptions

of matured E bonds and unmatured Series E and H Bonds for the same period
were $3,491,000,000.

Cash sales of E and H Bonds exceeded redemptions of

those series (matured and unmatured) by $156,000,000.
Sales of Series E and H Bonds during the first ten months of 1953 were
up 23 per cent over the $2,970,000,000 sales during the same period of 1952.
Total matured and unmatured redemptions of these series in 1953 were only
$3,000,000 above the $3,488,000,000 total redeemed during the first ten months
of 1952.
Sales of Series E and H Bonds in October were $356,791,000, an increase
of 15 per cent over the $309,658,000 sold during^5aBoBer7 1 9 5 2 ^ ) daetfee

Jfc

Total redemptions of matured E Bonds and unmatured Series E and H Bonds
duulng Oi I nlii \mj_WV

were $352,829,000 and were 9 per cent more than total

redemptions of $324,957,000 in October, 1952.
<j**je

This increase reflects

heavy Savings Bonds purchases of ten years ago nb Lliu War Loan &al«5 iea«h.
th§l± imktnrity dalui>. At the end of October, 1953, approximately jwli|ilii<(i/pjlMIJ J'fif If? 'it 75 per cent
of the series E bonds so far matured continued to be held by the owners under the
optional extension plan.
^mj^M^LT^^eii^lly

for, tMip^nd-aUialf vears«««Tew

onds retained has
!n"inaturing a

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, November 10, 1953.

H-310

Sales of Series E and H Savings Bonds during the first ten
months of 1953 totalled $3,647,000,000, the Treasury announced
today. Redemptions of matured E bonds and unmatured Series E
and H Bonds for the same period were $3,491,000,000. Cash sales
of E and H Bonds exceeded redemptions of those series (matured
and unmatured) by $156,000,000.
Sales of Series E and H Bonds during the first ten months
of 1953 were up 23 percent over the $2,970,000,000 sales during
the same period of 1952. Total matured and unmatured redemotions
of these series in 1953 were only $3,000,000 above the
$3,488,000,000 total redeemed during the first ten months of
1952.
Sales of Series E and H Bonds in October were $356,791,000,
an increase of 15 percent over the $309,658,000 sold during
October, 1952, and $13,500,000 above sales in September.
Total redemptions of matured E Bonds and unmatured Series E
and H Bonds during October were $352,829,000 and viere 9 percent
more than total redemptions of $324,957,000 in October, 1952.
This increase reflects larger maturity due to heavy Savings Bonds
purchases of ten years ago.
At the end of October, 1953, approximately 75 percent of
the series E bonds so far matured continued to be held by the
owners under the optional extension plan.

oOo

O T A

etc

- 3-

but shall be 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 Sta

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 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, y:h:;ther on original Issue or on subsequent purch
and the amount actually received either upon saiu or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or los
Treasury Department Circular No. 418, as amended, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their
issue. Copies of the circular may be obtained from any Federal Reserve Bank
or Branch.

\m* L> KJ

- 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 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 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

November 19. 1953
_

, xTL cash or

—

other immediately available funds or in a like face amount of Treasury bills
maturing

November 19, 1953 • Cash and exchange tenders will receive equal

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 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, unaer 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,

v.»Ca

TREASURY DEPARTMENT
Washington

FOR RELEASE, .MORNING NEWSPAPERS,
Thursday, November 12, 1953
The Treasury Department, by this public notice, invites tenders for
$ 1,500.000.000 s

thereabouts, of oi -day Treasury bills, for cash and

-"^^aer^—

~39f—

November 19, 1953
> i n ^ h e amount of
xkx
$ 1,501.428.000 j "t° be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
in exchange for Treasury bills maturing

dated November 19, 1953 3 &n& mil mature February 18, 1?54 3 ^en "the face
amount will be payable v/ithout interest. They wj.ll be issued in bearer form
and in denominations of (#1,000, $5,000, &10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday, November l63 19$

Tenders will not be received at the Treasury Department, Washington. Each tend

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 t
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 bo accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
''--'•-

RELEASE MORNING NEWSPAPERS^- VvjThursday, November 12, IS53*

K^ Sam/

H-311

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 November 19, 1953*
inathe amount of $1,501,428,000, to be--issued on a discount basis
under .competitive, and non-competitive bidding as hereinafter
provided. The bills; of this series will, be dated November 19, 1953*
and will mature February 18, 1954, 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 dosing: hour, two o'clock p.m., Eastern Standard time,
Monday, November 16, 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 os: .
urged that • tenders be made on the printed forms and forwarded in. the
special envelopes which will be supplied by Federal Reserve Bank:s 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 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)
accepted with
competitive
bids.
Settlement
accepted
tenders inof
accordance
the bids
must be
made or for
completed
at the

- 2Federal Reserve Bank on November 19, 1953, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing November 19, 1953. Cash and exchange tenders will
receive eqaial 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
oridinary 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

1QQ
w <a>J

^; f* mm.

—

The oihor 8 Lie of the shieU is
ihat with/csood convert 1'ble"....montry
through the free world, ttarket^.-riow
ntiaf iy ci o sre d ^i 1 i ";b:$.apened::to
American good?-, t fi t; 'tii"t a i; v.o 1 u rrti-? o f
trade.will b e s 11 rtiti:'lvi t e ,cf, ' a fid- o:u r
mutual building' up'/^^ortiatar. economic
strength, wi 11 r net easier'-' b:ur :;pow:er to
res i st -aggress i on.

Q£7

~ 47 Mrhen our friends overseas become ?able
through i ncretss^ nbn -product i vi tyf
through more£careful attention to costs
and, more., importantly, othroufgfusound
monetary and 'fiscal practices -~ to
balance their international accounts and
overcome their foreign exchange problems
1 do not believe that the American,
exporter will be^driven from world
markets. tfith our enterprise and our
productivity and our marketing ability
-Americans will win a fair share; 'of any
market wnich is open in the manner which
converti bi i i ty impli es.

368

- 46 \\ is the opposite of ihe situation
of recent years, when an unlimited
demand for ,icrican goods was
financed, in large part, by American
dollars taken from American taxpayers.
... i-

confidence.

369

- 45 It means a worlcj in *fhich a .foreign
country's goods can compete; ^ji th
Aner i can gouds \n *t- own domestic
nar^t, in Jie -ii * t^d ^tat^s m^ricet,
and i.i thi rti jnarK^ts throughout tL,e

world. Coiivei t i b i 1 i t v Means, therefore
a situation \i wh i i h ttto American
export » faces,^ much keener-.type of
cumoetition tuan he has f^ced thus
far in the post-war period.

/ { j
! \m*

- 44 It is important for American
traders to recognize, as we enter
into a period when convertibility
becomes more possible, that the word
•'convert i b i 1 i ty" is oniv a sort of
shorthand phrase which is intended
to depict a certain kind of world.
it means a world In.which.foreign
coun.tr i es thc.ve succeeded in balancing
s,

their international accounts, and h*ve
every prospect of keeping them in
balance.

371

But tht

crucial ?tips tovard the

coal of -convert i b i li ty*fc ill bavfcrto
be taken- bv th G£e:'*coumtni es-3 themselves.
i'-hi uugh i ncr ease's - of efficiency, ord
through a cunctntrat^d effort to

expand= exports'of-- goods and; servites,
^-nd 'tiurB^ importantly-ly- a constant
v i g-i lance w i th regard-" to • i nterrul
financial stability-, our foreign friends

can'' ii mprove t(•*• e i r conn^et i t i ve pos
in world tra":e, • andf ai*o? attract an
increasing <*nount of private American
i nvbstment.

97Q
^

- 42 Hie increase "of 'American tourist
expenditures, already substantial,
way be expected to 'continue. \7e vill
continue to buy foreign ^olcl as it is

offered to us, and -gol ' production is
Increasing overseas. All of these
t h i.. ga should, t nrough time,
strengthen the position of frienk'ly
n at i o ns overseas.

37^
^

KM/

- 41 AS-I have said earlier, the
Randall Commission is studying this
general problem of our tariff barriers.
In addixion to whatever we nay o a out
mT

our tariffs there are other development,
which nay.assist our foreign frienda
in stabilizing and freeing their
current* ies. An expand hig Amer i oxn
econony will require nore raw naterials
and foodstuffs from a' road.

07 A

- 40 i do not know when and hoy the return
to convertibility will be.achieved.
\t will certainly not coran fron
unilateral action taken only by the
United States. More specifically, it
would not be realistic to expect tint
this $oal c^n be achieved by reduction
of United States tariffs alone. The
conplete elimination of each and every
American tariff would not ;be sufficient
to launch the world on a new era of
stable and lasting convertibility.

27^

- 39 Throughout the post-war period
the reestablishrtent of conditions of
convertibility and non-discriminatory
multilateral trade has been a major
a in? of the U. S. Sovernraent t.n6 it
has continuously had the support, in
those endeavors, of groups like the
National Foreign Trade Council. While
•

•

it would be rash to make any prediction
into the future, it seems apparent that
today our foreign friends arc closer to
achieving that convertibility than at
any time since the end of the "?ar.

376

- 38 I asu 8-ure that ,tbis is a question
which .will be, of major concern to
the Randall Oamrnis-sion, and, I shall
not attempt here to:anticipate the
find hi g3 of that .jroup.
ay third and last question— and
I think it nresents a real challenge —
as.this: Is the An.erican foreign
trader ready for convertibility of
foreiu-n currencies?

O (f

--37 -

Th 14, pal i cy leads to add i t i onal bu
upon the'Treasury, to unlaianc^e?
budgets,to the infyationary forces
¥hi ch ultimataiy will crippln our
econoiiy. But the" alternative, if we

are t o c'oht i nue to expand our exports
is to accept the goods and services
which foreign countries, in free and
fair competition, are ahle to"sell
in our" rfarnc t and competing Markets
abroad.

17u

- 36 My second question is this:
^re the members of this group, and
the .-.aerican public as z whole,
ready to accept a balancing of the
international accounts of the
United states?
We have only two alternatives.
•fe can maintain a high level of exports
by continuing to pour out vast suras of
the taxpayers' money in the form of
grants and credits to foreign countries

37Q

- 35V/'e recognize that our very size in
the economic picture raakes even a
mild recession here a natter of concern
to'.foreign countries, and we are
resolved to do our 4best to maintain a
healthy, stahle and growing economy
here since we know that it benefits
us as much as it does our foreign <; >
friends, in this process there will tfe
periods of.tight money at well-as easy
money and 'even at the best:sonefluctuations in business volume. They
are the earmarks of a dynamic economy.

38u

- 34 We appear to he entering ?<. po'fiod of
increasingly competitive'world trade
in whid each countr y' s po%er to
compete will re^t on its industrial
costs and the soundness or unsoundness
of its internal fiscal and nonetary
policies. %B are committed to a policy
of sound money; in the united* states —
ie will not be inflexible in the conduc,
of our monetary and economic affairs,
but we seek to avoid either a crippling
inflation dr an equally crippling
deflation in thiscountry.

381

- 33 Bavi fig sa i d t hat," let tne make
6tie' thin^ 'clear. It" is not,"and it
never can be, the "policy of this
country to inflate the y,»ierican
economy 'as- an offsetto inflation
abroad. To put it another way, there
is no'sound "way" of ""assur ing a large
liierican demand for foreign goods
regardless of their price.

382

- 32 -

i know that you have*all seene
evidences of this fear.'nCountriest
which believe that their experts
may suddenly decline becauec-of a
recession inithif country, are
inhi bite- from taking the coursgeoues
?teps which would fbe-'beneficial
bothitorthem and to us. For this

reason, a cont inuingr high.and reasonabl
stable level of economic activity in
the United States is perhaps the best
contribution we can make to the world
econany.

3.83

- 31 Problui-;:- yio±A
Mow as to the prospects for the
immediate future. i will touch
upon three problems, which i should
like to put in the form of questions
which have to be answered.
The first question is this: Are
our friends overseas justified in
fearing a recession in this country
•••hich ill disrupt their efforts to
maintain a healthy lev/el of
export ::

C U T

- 30 \Z
In summary,.the uajor countries
m*

of the free world ..arc .pledged -to fol
orderly international exchange practice
throughout the free world, including
the: United_States, there;hasuappeared
a vigorous trend toward, halting the
creeping inflation whichtfollowed war
inflation and.trade halances have
shown marked improvement, We may. hope
that these favorable developments can
*

be continued and strengthened.

- 29 .-

We are well justified, hdiever, in
taking some encouragement from
improvement which has occurred. A
part of it, at least, is firmly baged
on sound monetary and fiscal practices
*

and improved competitive ability.

1QQ

- 2d -

It would--not-feet prudent for'tie, to
b&nk too much upon.this gain, for two
reasons: In-'-the'-first placey sown of
that financial-gains''of the recent -pa-it
have.resulted from those "very
restrictions on the i itiport of,dollar
goods which we seek to eliminate.
Secondly, we all know that similar gain
in the past have been rapidly dissipate!
by a relaxation of efforts to v/i that and
internal inflation.

387

- 27 I !y • se con:'. r e as a n f o r a p t i n i :stn
is that in the past year the vexing
prob-lsfiis of trade -^-balance . and
exchang e d i f f i c u 11 i e3 have emed
cons i de rab 1 y. Europ e ,as a who 1 e —
the keystane of the free world economy
outside of.this Continent -- has.
attained,a measure.of stability which
has permittei; it to balance its dollar
auc-junts :a«.s| even torfruild up reserves
considerably, this, in the face of
increased expenditures for defense.

yRik
v/ U v^

- 26 Country after country !vr.e demonsfratod
at one time or another that*a sound
budget and prudent"control of the
wonry supply and credit facilities,
with realistic interest rates, lead's
rapidly %nr' diretat-1 y to ah expanding
international trade, ft*- is an
iimportant lds^oh to have learned.

Wr \J v-»

- 25 But here again, there is reason
for hope. In the first place there
is today a much morn widespread
understanding, no$ronly on the part
of those in positions of, responsibility
but also among-the general public that
unsound Internal monetary practices
lead to foreign exchange difficulties.
There is a rapidly spreading recognitiol
of the fact that sound raoney at home
leads to a strong currency abroad, and
to a stable and prosperous international
trade.

\mi W \J

- 24 As I say, these problems'remain.
Internal inflation and the related
overstimulation of demand have created
exchange d i ffi cult i es — someti mes
called Mthe dollar shortage" — which
st i 11 $persi st in nany" countrieo -'of
the world. Whereas cornet it ive
devaluation was the curse of the 1^30's,
inflation has i-oen the curse of the
post-war poriud.

w wl

- 23 The problerej*J)ich't$ac«s the American
trader today rs not so much the ed
prospect'of bompetitiv© devaluations,
but the prbbl©m of infi-ttions and
overvalued" fore i#n curren.oi est- whieh

lead1 to balance of ..payments A i f f i cult
and <foroe. countries to. take, arbitrary
and sudden steps,* in both the .trade
and exchange fi«td,ato shut out the
gooiie of mepd -currency countries.

QQ9
\m* \J C

- 22 Unstable and regimented
Currencies st ill Yersain, however,

a forem-t "problem for the international
trader. in the period since the
*

war thi™ problem of unstable
currencies has in rome respects been
exactly the oppbsite^of that "hich
troubled us in the 193i)'s.

yltijnafeigioo bevoiqwii avtrf, ew C'd&L .ni
evir-yttii .ras.i&ftriodff tadt -fio.a-.u
bsnio^ won BIB bl sow tfif tu es i -.tnooo
ritiw hntH yifitefiuw edi ni isf-regc*
gnibiov*. to seoq-iut* beJ^t® ^

oit«Ti3 bnj» .,tno i tfcUlfivab uv i 11 t»<|-t»ao
no i iss insgio e Mi: . Bt«is^dvun" ^ jfiisdojta
eiuesd'»q : insq i i aned tngtsnuo s arisxs
le^noff 3*n*wo.t a®y|f.j^ 1t g bn*
. vea.oitj if no 1t£••) is.tn i

- 21 In 1953 we have improved considerably
upon that mechani m. Fifty-five
countries of thy world are now joined
together in the monetary rund with
the stated purpose of avoiding
I

t. • y

•••.•'•".

••-• •>-

competitive devaluations and erratic
exchange movements. I'h i s orctanization
»

fcxert? a constant oeneficent pressure
and stimulus towards honest
i nternati onul money.

^94

- 20 That "\'9 good- for

monetary- stability

through the world'. It- is good' for
honest money.
fhe second thing v*h ictv gave • me
encouragement in 1933 was the

i r rpart i te a Agreement ;,~-wh i ch -%as
designed to place^a cheek on.
competitive divaluations, avoid
aroitrary•*nd erratic exchange
movements-'and promote a fuller mutual
understand i rig among the participants.

- 19 The first was the factbthatithell ty
U.* o. Treasury had maintained*'thedollar at ayfixed gold value for
nearly o years. The ma i nt'enance of
this stable v&iue had unquestionably
lessened the confusion and disorder
among currencies and facilitated
trade'. The power in the, lrw for the
administration to change the value of
the dollar has now exnired .and the
dollar is more fir iy cowwi tted to.
the present gold values.

W W

- 18 •

iPirrjbiey »StabUitx*hg

Wowaas tu unstable currencies.
ihen ! appeared before this group
in 1938-1 observed that #6 Were
^erhaos f i ndi ng our ^ay lout of the

mora *.?•••-of compet i t r ve dev^luat i on
which was the cur-#fof the depression
years. \$et e i s * a a muc h rearonan"
I huoa better reason to be optimistic
in 19D3. fifteen years ago I wa?
encouraged by two things.

~Q7

- 17 But we h^ve rejectedy in principle
the most arbitrary Kinds of trade
restrictions; we are continuing to
chip away at the barriers through
our Trade Agreements rrogram; and
we are undertaking?a.dispassionate
and objective study of the kind of
world trade policy which best fits
the position of our country.

0QQ
\J \mJ ^MJ

- IS The Commission on Foreign Economic
Pol i cy, whose member1 sh ip is dra-n
from the Congres^and the general
public, and which has the benefit of
the leadership of Mr. Clarence Randall,
is now engaged in an intensive review
of this -very subject.
Trade barrier^ are still with
us and f^ey present complex problems.

QQQ
^J

- lo ihis statement is, if anything, nore
forcefully., ^ppliudbxe to our ipo^ition
in

L&IJO

thGn it *•*•&. in l^vO. uun

relativa cccnot?iic strength hasj^it of
incre^&eoL tr emendpusly. ihM1 i r
Called for, J beiiev^, ii^,a complete
new

IOOK

at, our trade and investment

policy to ascertain how we can be~t
conduct ourselves in thta light of *
our pret'ondei ant economic strength.
ihis is precisely what ^resident
tisenhower has set about to do.

- 14 The third reason for ihope >ftfor
the future lies in ...the open-mind.ed
approach to the trade*problem wjhich
we are undertaking-under the
leadership"of the President. In 1B38
I- pointed out that in the circumstances
then-exi ?t i ng, tysified by.the great
strength- of the"United States, the
fnodt,: favorable development for the
United States would*be one

in which,

With an expanding total trarle, our
imports of foreign goods --would, gain
relative to our exports."

- 13 We should always be ready to review
the faces carefully. 3ut at five
5atue time, it-is only fair to look
at the record and to realize, from
figures such «s those cited, that
the United States has taken a leading
part in.trying to free the world
from unnecessary trade restrictions.

402

- 12 This has been done gradually and
realistically, piece-by-piece,
without any serious damage to
American business, but on the
contrary to its benefit.
I know that our friends in
foreign countries will say that the
United States still has excessive
tariffs; particularly on certain
tyoes of manufactured goods.

•• Li

VM/

In 196? 'more'• than" one-half our
imports were'subjict to riuti es of
10 Percent' orles-3'; without:;the

Trade Kjjr*emfetits " ProQraW tb&'-f i gure
would- have bean one-third of our
total1 imports": In- 196?-only 6npercent
ot; ourM moorti cirri Id SutieV of-more
thfe'ft 30-percent"' -- -without the Trade
Agrbe^nts ^'rotgrar- thfc:figur%- would
toave'bteen ?5V- Percent :ot our' imports-

$o4

- 10 -

it the ) r a d e Agree me n t s ? r o g r «
not been in effect tht study estimates
that our tariffs in 1^2 would have
amounted tu 10 percent of the value
of, our iot«i imports and more than
?4 percent of the value of our
dutiable iupprts. mth the frade
.Agreements yoyam in effect, however,
the 19^2 rates were in fact only half
as h i oh —• J percent oi total imports
and L2 percent of dutiable imports.

405

- 9 The Commission has found that
riurinu the period of the Trade
Mcreements Program ,duti e^ have
been reduced on commodities.
*

•

accounting for BO percent of the
total value of our dutiable imports.
i^tvS have been reduced on more
than 3,uu0 items.

406

Our e x p o r t e r ? h a v e b e , i e f i t e d

by the

reduction of "tar iff? abroad. 'Foreign
exporters have benefited bv reduction
of tariff* here. Consumers in both
areas have benefited!through lower
c o * t * .
ihe-general5 public, here or
overseas, tides not fully appreciate
the extent to which the united States
has played its p-it in this
cooperative effort. ihe fact" are
shown in a recent short study on this
subject made by the tariff Commission
in .i-ash i ny ton.

40 7

- 7 The second reason for hopo is
that our hade agreements Program,
which 1 cited *.s a favorable
development in 1938, has cuntinued to
chip away at unnecessary trade
restrictions here and abroad. ihe
mutual give and.taKe of tariff
negpti ations under th i s program has
further reduced the barr i ers wh i ch
hamper foreign trade.

4u8

- 8 ~
those-of vou w^o were actively ^s
engiged; iri« worlds trade 'before the
war-frili-rgcali that- t&'e nations which
hid-been-foremost^in develop i fig-these
techniques were -declSrl ng'-th&rn to be
"the "*af; of theJ f uttire*1 and manf> other
nations, resorting to thfese levies^ in
self-defense, were coiling to thinki
that they would necessarilv'becfiwe the
cornerstones-: of £#orid trading practices.
How, at least, we in the. free world'
abjure then in principle.

409

- b F i rst, most•of•the important-.nations
of the free world have declared their
intention to do away wi th quotas and
barter deals and•similarad ministrative restraints upon trade
at the earliest possible .moment
sn-juid not, untier-est i mate this
development.

410

- 4 foday, in 19o3,..tJhe.. quota and. the.
bartai .deal are, st.ill with us., and
art widespread. in..'one large and
unfortunate sector of.the world these
devices, and many mure are, furthermore,
used as i iistrumerits, of - poll t i cal
a w v, i • e s s i o n.

»*e ..have, however, made progress
since 193J, in spite of war.

#11

- 3 -

trade fcimriers
AS to trade barriersa we were
faced in 1938/'with thefcpro.-?ect that
new techniques of restricting trade -the rii tleri an'feirtar Dde^i- sihd cudta e*
Systems --'" mi ght become n^rmanent,
and: rfomrhate tha; world trading picture.
It seemed po-sifele that all semblance
of a single world market might disappear
and that the individual trader might be
reduced to case-by-case attempts to plaa
an order here and an order there, with ro
prospect of continuity or stability of

policy.

412

- 2 But I found the 1938 statement
timely for it dealt, witn trie two
major economic problems of the
world today — unstable currencies
and trade barriers. Thusu TWO were
then and are now the V?'o ^reat
economic obstacles to progress.

413

i'a/iOE CHAK6L0 AWO wiUNETAuY POLICY
After i had accepted the
invitation to appear here today I
decided, with some trepidation, to
read a statement which I made to this
same organization just 15 years ago
this month. You can understand my
trepidation. in the decade and a half
that has elapsed since that time many
things have happened. Sreat changes
have come over the world.

414

• ^-~-~

^y- K4V?S<^ OX 2 HTjrt» /^fmm^^^ft^j^

TREASURY DEPARTMENT
Washington
FOR RELEASE AT 3 P.M.,
Monday, November 16, 1953.

An address by W. Randolph Burgess, Deputy to
the Secretary of the Treasury, before the 2nd
General Session, International Finance, 40th
National Foreign Trade Convention, at the
Waldorf-Astoria Hotel, New York City, 3:00 PM,
Monday, November 16, 1953.
TRADE CHANGES AND MONETARY POLICY
After I had accepted the invitation to appear here today
I decided, with some trepidation, to read a statement which I made
to this same organization just 15 years ago this month. You can
understand my trepidation. In the decade and a half that has
elapsed since that time many things have happened. Great changes
have come over the world.
But I found the 1938 statement timely for it dealt with the
two major economic problems of the world today--unstable currencies
and trade barriers. These two were then and are now the two great
economic obstacles to progress.
Trade Barriers
As to trade barriers, we were faced in 1938 with the prospect
that new techniques of restricting trade--the Hitlerian barter
deals and quota systems—might become permanent, and dominate the
world trading picture. It seemed possible that all semblance of
a single world market might disappear, and that the individual
trader might be redaiced to case-by-case attempts to place an order
here and an order there, with no prospect of continuity or stability
of policy. Today, in 1953. the quota and the barter deal are still
with us, and are widespread. In one large and unfortunate sector
of the world these devices and many more are, furthermore, used as
instruments of political aggression.
H-312

—

•*- '^

We have, however, made progress since 1938, in spite of war.
First, most of the important nations of the free world have
declared their intention to do away with quotas and barter deals
and similar administrative restraints upon trade at the earliest
possible moment. We should not under-estimate this development.
Those of you who were actively engaged in world trade before the
war will recall that the nations which had been foremost in
developing these techniques were declaring them to be "the way of
the future" and many other nations, resorting to these devices in
self-defense, were coming to think that they would necessarily
become the cornerstones of world trading practices. Now, at
least, we in the free world abjure them in principle.
The second reason for hope is that our Trade Agreements
Program, which I cited as a favorable development in 1938, has
continued to chip away at unnecessary trade restrictions here and
abroad. The mutual give and take of tariff negotiations under
this program has further reduced the barriers which hamper foreign
trade. Our exporters have benefited by the reduction of tariffs
abroad. Foreign exporters have benefited by reduction of tariffs
here. Consumers in both areas have benefited through lower costs.
The general public, here or overseas, does not fully appreciate
the extent to which the United States has played Its part in this
cooperative effort. The facts are shown in a recent short study
on this subject made by the Tariff Commission in Washington. The
Commission has found that during the period of the Trade Agreements
Program duties have been reduced on commodities accounting for
90 percent of the total value of our dutiable imports. Rates have
been reduced on more than 3,000 Items. If the Trade Agreements
Program had not been in effect the study estimates that our
tariffs in 1952 would have amounted to 10 percent of the value of
our total imports and more than 24 percent of the value of our
dutiable imports. With the Trade Agreements Program in effect,
however, the 1952 rates were in fact only half as high-- 5 percent
of total imports and 12 percent of dutiable imports. In 1952 more
than one-half our imports were subject to duties of 10 percent or
less; without the Trade Agreements Program the figure would have
been one-third of our total imports. In 1952 only 6 percent of
our imports carried duties of more than 30 percent—without the
Trade Agreements Program the figure would have been 25 percent of
our imports. This has been done gradually and realistically,
piece-by-piece, without any serious damage to American business,
but on the contrary to its benefit.
TT -i. I onow that our frlends in foreign countries will say that the
United States still has excessive tariffs; particularly on certain
types of manufactured goods. We should always be ready to review
facts
carefully.
the restrictions.
same
time,
it is
only
the
look
thatworld
at
thethe
United
from
record
unnecessary
States
andBut
has
to at
realize,
trade
taken
a
from
leading
figures
part
in
such
trying
asfair
those
toto
free
cited,

- 3-

417

The third reason for hope for the future lies in the openminded approach to the trade problem which we are undertaking
underthfleadership of the President. In 1938 I pointed out that
in the circumstances then existing, typified by the great
strength of the United States, the most favorable development for
the United States would be one "in which, with an expanding
total trade, our imports of foreign goods would gain relative to
our exports." This statement is, if anything, more forcefully
applicable to our position in 1953 than it was in 193^. Our
relative economic strength has increased tremendously. What Is
called for, I believe, is a complete new look at our trade and
investment policy to ascertain how we can best conduct ourselves
in the light of our preponderant economic strength. This is
precisely what President Eisenhower has set about to do. The
Commission on Foreign Economic Policy, whose membership is drawn
from the Congress and the general public, and which has the
benefit of the leadership of Mr. Clarence Randall3 is now engaged
in an intensive review of this very subject.
Trade barriers are still with us and they present complex
problems. Bait we have rejected in principle the most arbitrary
kinds of trade restrictions; vie are continuing to chip away at
the barriers through our Trade Agreements Program; and we are
undertaking a dispassionate and objective study of the kind of
world trade policy which best fits the position of our country.
Currency Stability
Now as to unstable currencies. When I appeared before this
group in 1938 I observed that we were perhaps finding our way out
of the morass of competitive devaluations which was the curse of
the depression years. There is as much reason and I hope better
reason to be optimistic In 1953. Fifteen years ago I was
encouraged by two things. The first was the fact that the
U. S, Treasury had maintained the dollar at a fixed gold value for
nearly 5 years. The maintenance of this stable value had unquestionably lessened the confusion and disorder among currencies
and facilitated trade. The power in the law for the administration
to change the value of the dollar has now expired and the dollar
is more firmly committed to the present gold value. That is good
for monetary stability through the world. It Is good for honest
money.
The second thing which gave me encouragement in 1938 was the
Tripartite Agreement, which was designed to place a check on
competitive devaluations, avoid arbitrary and erratic exchange
movements and promote a fuller mutual understanding among the
participants. In 1953 we have improved considerably upon that
mechanism. Fifty-five countries of the world are now joined
together in the Monetary Fund with the stated purpose of avoiding
towards
organization
competitive
honest
devaluations
exerts
international
a constant
and money.
erratic
beneficent
exchange
pressure
movements.
and stimulus
This

- 4-

yy 1 Q
S x \J

Unstable and regimented currencies still remain, however,
a foremost problem for the international trader. In the period
since the war this problem of unstable currencies has in some
respects been exactly the opposite of that which troubled us in
the 1930's. The problem which faces the American trader today
is not so much the prospect of competitive devaluations, but the
problem of inflation and overvalued foreign currencies, which
lead to balance of payments difficulties and force countries to
take arbitrary and sudden steps, in both the trade and exchange
field, to shut out the goods of free currency countries.
As I say, these problems remain. Internal inflation and the
related overstimulation of demand have created exchange
difficulties—sometimes called "the dollar shortage "--which still
persist in many countries of the world. Whereas competitive
devaluation was the curse of the 1930's, inflation has been the
curse of the post-war period.
But here again there is reason for hope. In the first place
there is today a much more widespread understanding, not only on
the part of those in positions of responsibility, but also among
the general public, that unsound internal monetary practices lead
to foreign exchange difficulties. There is a rapidly spreading
recognition of the fact that sound money at home leads to a strong
currency abroad, and to a stable and prosperous international trade.
Country after country has demonstrated at one time or another that
a sound budget and prudent control of the money supply and credit
facilities, with realistic interest rates, leads rapidly and
directly to an expanding international trade. It is an important
lesson to have learned.
My second reason for optimism is that in the past year the
vexing problems of trade imbalance and exchange difficulties have
eased considerably. Europe as a whole--the keystone of the free
world economy outside of this Continent—has attained a measure of
stability which has permitted it to balance its dollar accounts
and even to build up reserves considerably, this in the face of
increased expenditures for defense. It would not be prudent for
us to bank too much upon this gain, for two reasons; In the
first place, some of the financial gains of the recent past have
resulted from those very restrictions on the import of dollar
goods which we seek to eliminate. Secondly, we all know that similar
gains in the past have been rapidly dissipated by a relaxation of
efforts to withstand internal inflation. Vie are well justified,
however, in taking some encouragement from improvement which has
occurred. A part of it, at least, is firmly based on sound
monetary and fiscal practices and improved competitive ability.

L" Q

- 5In summary, the major countries of the free world are pledged
to follow orderly international exchange practices; throughout
the free world, including the United States, there has appeared
a vigorous trend toward halting the creeping Inflation which
followed war inflation and trade balances have shown marked
improvement. We may hope that these favorable developments can
be continued and strengthened.
Problems Ahead
Now as to the prospects for the immediate future. I will
touch upon three problems, which I should like to put in the form
of questions which have to be answered.
The first question is this: Are our friends overseas
justified in fearing a recession in this country which will disrupt
their efforts to maintain a healthy level of exports?
I know that you have all seen evidences of this fear.
Countries which believe that their exports may suddenly decline
because of a recession in this country are Inhibited from taking
the courageous steps which would be beneficial both to them and to
us. For this reason, a continuing high and reasonably stable
level of economic activity in the United States is perhaps the
best contribution we can make to the world economy.
Having said that, let me make one thing clear. It is not, and
it never can be, the policy of this country to inflate the
American economy as an offset to inflation abroad. To put it
another way, there is no sound way of assuring a large American
demand for foreign goods regardless of their price. We appear to
be entering a period of increasingly competitive world trade in
which each country's power to compete will rest on its industrial
costs and the soundness or unsoundness of its internal fiscal and
monetary policies. We are committed to a policy of sound money
in the United States—we will not be inflexible in the conduct of
our monetary and economic affairs, but we seek to avoid either
a crippling inflation or an equally crippling deflation in this
country. We recognize that our very size in the economic picture
makes even a mild recession here a matter of concern to foreign
countries, and we are resolved to do our best to maintain a
healthy, stable and growing economy here since we know that it
benefits us as much as it does our foreign friends. In this
process there will be periods of tight money as well as easy
money and even at the best some fluctuations in business volume.
They are the earmarks of a dynamic economy.

- 6My second question is this: Are the members of this group,
and the American public as a whole, ready to accept a balancing
of the international accounts of the United States?
We have only two alternatives. We can maintain a high level
of exports by continuing to pour out vast sums of the taxpayers T
money in the form of grants and credits to foreign countries.
This policy leads to additional burdens upon the Treasury, to
unbalanced budgets, to the inflationary forces which ultimately
will cripple our economy. But =the alternative, if v/e are to
continue ac expand our exports, is to accept the goods and
services which foreign countries, in free and fair competition,
are able to sell in our market and competing markets abroad.
I am sure that this is a question which will be of major concern
to the Randall Commission, and I shall not attempt here to
anticipate the findings of that group.
My third and last question—and I think it presents a real
challenge—is this: Is the American foreign trader ready for
convertibility of foreign currencies?
Throughout the post-war period the reestablishnaent of
conditions of convertibility and non-discriminatory multilateral
trade has been a major aim of the U. S. Government and it has
continuously had the support, in those endeavors, of groups like
the National Foreign Trade Council. While it would be rash to
make any predictions into the future, it seems apparent that
today our foreign friends are closer to achieving that convertibility than at any time since the end of the war. I do not know
when and how the return to convertibility will be achieved. It
will certainly not come from unilateral action taken only by the
United States. More specifically, it would not be realistic to
expect that this goal can be achieved by reduction of United States
tariffs alone. The complete elimination of each and every
American tariff would not be sufficient to launch the world on
a new era of stable and lasting convertibility.
As I have said earlier, the Randall Commission is studying
this general problem of our tariff barriers. In addition to
whatever we may do about our tariffs there are other developments
which may assist our foreign friends in stabilizing and freeing
their currencies. An expanding American economy will require more
raw materials and foodstuffs from abroad. The increase of
American tourist expenditures, already substantial, may be expected
to continue. We will continue to buy foreign gold as it is
offered to us, and gold production is increasing overseas. All of
these things should, through time, strengthen the position of
friendly nations overseas.

- 7But the crucial steps toward the goal of convertibility will
have to be taken by those countries themselves. Through increases
of efficiency, through a concentrated effort to expand exports of
goods and services, and more importantly by a constant vigilance
with regard to internal financial stability, our foreign friends
can improve their competitive position in world trade, and also
attract an increasing amount of private American investment.
It is important for American traders to recognize, as we
enter into a period when convertibility becomes more possible,
that the word "convertibility" is only a sort of shorthand phrase
which is intended to depict a certain kind of world. It means a
world in which foreign countries have succeeded In balancing
their international accounts9 and have every prospect of keeping
them in balance. It means a world in which a foreign country's
goods can compete with American goods in its own domestic market,
in the United States market, and in third markets throughout the
world. Convertibility means, therefore, a situation in which the
American exporter faces a much keener type of competition than he
has faced thus far in the post-war period* It is the opposite of
the situation of recent years, when an unlimited demand for
American goods was financed, in large part, by American dollars
taken from American taxpayers. Is the American foreign traderready for this kind of a world?
There seems to me reason for confidence. When our friends
overseas become able —through increases in productivity, through
more careful attention to costs and, more importantly, through
sound monetary and fiscal practices—to balance their international accounts and overcome their foreign exchange problems, I
do not believe that the American exporter will be driven from
world markets. With our enterprise and our productivity and our
marketing ability Americans will win a fair share of any market
which is open in the manner which convertibility implies.
The other side of the shield is that with good convertible
money through the free world, markets now nearly closed will be
opened to American goods, the total volume of trade will be
stimulated, and our mutual building up of greater economic
strength will Increase our power to resist aggression.
0O0

<22

FOR IMEDIATE RELEASE,
j&L*

November^O, l?g3

^W»/

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse9 for consumption under the import quotas established in the
President's proclamation of May 28, 19Ul, as modified by the president's
proclamation of April 13, 19^2, for the 12 months commencing May 29, 1953,
as follows?
•

9
a-

:
s
s
t

Country

of
Origin

;
«
;
;
S

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

Hheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

Established t
: Established J
Imports
<^nports^)
Quota
Quota
i May 29Ti^3,
sMay 29, 1953, to t
s
: to November 1(
Nnvembnr 10. 1.9$3l
(Pounds)
(Pounds)
(Bushels)
(Bushels)
795,000

795,,000

_
_
_
_

100

«~

100
100

_
_
_

™

100
2,000

mtm

100

«.

mm
m»

1,000

*mm

100
—
—
mm.

«•
mmt
w

_M-_
mm

_
_

3,815,000
2l|,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

3,815,000
mm

mam
tam

100
ama

_
_
w(-

—
mu
mm
mm
m,

_
_
_
_
_
_
mm

100
100

—

100
100

_
-

—

1,000

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Thursday, November 12, 1953

H-3X3

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 19hl, as modified by the President's
proclamation of April 13* 19ii2, for the 12 months commencing May 29, 19$39 as
follows J

Country
df
Origin

Wheat flour, semolina,
crushed or cracked
Wheat
wheat, and similar
wheat products
Established!
Imports
"Established
Imports
Quota
:l%y 29, 1953, to : Quota
May 29\ 1953,to
:November 10, 1953
November 10,1953
T^uliheTs)
(Bushel!;
(Pounds)
TPounds T

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

•••

795,000
Pm)

m
ma

3k
mm

~
mm
mm
mm

«*
••
..
«.
„
mm

Urn

«•
••
•*
—

800,000

«•

3,815,000
2^,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
Ik,000
2,000
12^000
1,000
1,000
1,000
' 1,000
1,000
1,000
1^000
1,000
1,000
1,000

3,815,000

ll,000,000

3,815,100

100

IS*
at

m
ma

795,080

a
IMMEDIATE RELEASE
a/
November io, 19S3

;iS

fty
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 October 31, 1953,
inclusive, as follows:
Products of the
Philipoines
Buttons

( Established Quota
I
Quantity
I

j Unit Of I Imports as of
jQuantity | October 31, 1953
I
I

850,000

Gross

662,960

Cigars

200,000,000

Number

2,1<9U,267

Coconut Oil

UU8,000,000

Pound

86,92k,3l5

Cordage

6,000,000

Pound

3,^08,753

Rice

1,0U0,000

Pound

2,500

l,90ii,000,000

Pound

.....
(Refined

Sugars
(Unrefined
Tobacco

1,636, 228,061;
6,500,000

Pound

2,l*5l,6ll

a •K

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday, November 12, 1953

H«3lU

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 October 31, 1953*
inclusive, as follows:

Products of the
Philippines
Buttons • » « » . • • • « » •

Established Quota
Quantity

650,000

Unit of : Imports as of
Quantity : October 31, 1953

Gross

662,960

Cigars «•••««••••» 200,000^000

Number

2,a9U,267

Coconut Oil • . * » a » « • « i|l±8,000,000

Pound

86*92li,3l5

Cordage • ••••••»••• 6P000,000

Pound

3,^08,753

Rice •

Pound

2,500

• . » c « • . . • • l,0lt0,000

(Refined
Sugars l,90l;,000,000

Pound

(Unrefined • » • » •
Tobacco •«••••,,.•• 6,500,000

1,636,228,06k
Pound

2,U5l,6U

•*&*<*

: ^"...4»>

//=•>/

IMMEDIATE RELEASE

'/ ,
November \ 0 , 1953
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 October 31, 1953, inclusive, as follows:

Commodity
^

'«
• Period and Quantity
'»

• Unit
\ Imports
;
of
; as of
i Quantity \ Oct. 31, 1953

Whole milk, fresh or sour Calendar year 3,000,000 Gallon

11,255

Cream Calendar year 1,500,000 Gallon

1,008

July 16, 1953Butter

5,000,000

Pound

3.,068

Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
Calendar year 33,866,287

Pound

Quota Filled

Oct. 31, 1953

White or Irish potatoes:
certified seed
other

12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

Cattle, less than 200 lbs. each 12 months from 200,000 Head
April 1, 1953
Cattle, 700 pounds or more each Oct. 1, 1953(other than dairy cows)
Dec. 31, 1953

120,000 Head

3,997

535

Quota filled

Walnuts Calendar year 5,000,000 Pound
Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved ....

12 months from
Oct. 1, 1953

7,000,000 Pound

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not ineluding peanut butter)

12 months from
July 1, 1953

1,709,000 Pound

Peanut Oil 12 months from
July 1, 1953

1U9,020
3,99U,601

80,000,000 Pound

Ul8,800

6,320
1,531,090

^27

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Thursday, November 12, 1953

H-315

Commodity

Period and Quantity

Whole milk, fresh or sour «»,,,

Calendar year

3,000,000

s Unit :
Imports
s
of
:
as of
:Quantity: Oct* 31, 1953
Gallon
H725F

Cream • ••••«,«••••«»•<»«•«.•««•« Calendar year 1,500,000 Gallon

1,008

July 16, 1953Butter

5,000^000

Pound

3,068

33,866,287

Pound

.oa 12 months from
.• Sept, 15, 1953

150,000,000
60,000,000

Pound
Pound

llr?,020
3,99l*,601

Cattle, less than 200 lbs, each 12 months from
April 1, 1953

200,000

Head

3,997

120,000

Head

Oct. 31, 1953
Fish, fresh or frozen, filleted,
etcc, cod, haddock, hake, pollock, cusk, and rose fish....«,«
White or Irish potatoes:
certified seed •
other ...,,„.
,

Calendar year

Cattle, 700 pounds or more each Oct. 1, 1953(other than dairy cows)
Dec, 31, 1953

Quota Filled

535

Walnuts

Calendar year 5,000,000

Pound Quota Filled

Almonds, shelled, blanched,
roasted, or otherwise prepared or preserved
....•

12 months from
Oct, 1, 1953

7,000,000

Pound

Iil8,800

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
c

Pound

6,320

Pound

1,531,090

Peanut oil .,.,

12 months from
July 1, 1953
80,000,000

4?Q

-2-

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

Country of Origin

United Kingdom
Canada . . .0 o o
France . • o 9 ©
British India
Netherlands O O O
Switzerland 9 © O O O
Belgium * © •O e 9
a
©
Japan .
anxna . . . . » .
iiigypXi

o ©

Total Imports
s Sept. 20, 19 5^ to
t November 10. 1(

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

198,478
239,690

5,482,509
l/ Included in total imports, column 2,
Prepared in the Bureau of Customs.

Established
33-1/3$ of
Total Quota
1,441,152

Imports
Sept. 20, 19 53
to November 10. 1<
198,478

75,807
22,747
14,796
12,853

16,947

24,298

25,443
7,088

24,298

480,512

1,599,886

240,822

16,947
1,099

1,099

A 9Q

/-/

3/C

IMMEDIATE RELEASE
November"lp, 1953
'^Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 193$, as-amended

Jtf*

COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 19537~to November 10, 1953, inclusive
Country of Origin,

Established Quota

Imports

783,816
247,952
2,003,48®
1,370,791
8,883,259
618,723

—
—
—

Egypt and the AngloEgyptian Sudan . . ,
Jeru

. . « . . «

British India
UillUa

. a

....

. . . . . . .

Mexico . . .....
ijjVaZtX±

,
»

Union of Soviet
Socialist Republics
Argentina . . . . . .

475^124
5,203

. . . . . . . .

237

Ecuador . . . . . . ,

9,333

iiaiwi

2,654,630
618,723
—
-

Country of Origin

Established Quota

Honduras
Paraguay
Colombia
JLra>q . . . . . . . .

752
871
124
195
2,240
71,388

British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria
2/0ther British W. Africa
^/Other French Africa . .
Algeria and Tunisia •

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.
Cotton8 harsh or rough, of le-gs than 3/4"
Imports Sept. 20, 195?, to October 31, 1953
Established Quota (Global)

Imports

70,000,000

347,173

Cotton,1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1953,,,to November 10, 1953
Established Quota (Global)
45,656,420

Imports
42,29^,798

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RKLFASE
Thursday, November 12, 1953

u_o-|A
^

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 September 20, 1953, to November 10. 1953» inclusive.
Country of Origin Established Quota Imports Country of Origin Established Quota Impor
Egypt and the Anglo- Honduras .. . . . • . <, _• 752
Egyptian Sudan , , ,
783,816
Peru
,
247,952
British India . , . .
2,003,483
China
1,370,791
a a
Mexico
8,883,259
2,654,^30
Brazil • • * » . . . .
618,723
618,723
Union of Soviet
Socialist Republics.4
475,124
Argentina . „ . . e .
5,203
Haiti » . • . „ . * , »
237
~
Ecuador o » . . . • «
9,333
~

Paraguay . . . . . . . «
Colombia
o
Iraq
•
British East Africa, . •
Netherlands E. Indies o
t Barbados , . . . , « , * •
1/ Other British W. Indies
Nigeria . . . » * • . •
2/ Other British W. Africa
1/ Other French Africa . . .
Algeria and Tunisia

871
124
J?5
2,240
71,388
j
21,321
5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/
Other than Gold Coast and Nigeria.
\y
Other than Algeria, Tunisia, and Madagascar,
otton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more, but.less than l-gA^1
•v^rts Sept. 20, 1953, to October 31, 1953
Imports Feb. 1, 1953, to November 10, 1953
J raablished Quota (Global) Imports Established Quota (Global) Imports
70,000,000 347,173 45,656,420 42,299,798

„a^
CO

~2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than l~3/l6 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of l-3/l6 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 . . . . . . . . .
British India.
Netherlands
Switzerland, . . . . . .
Belgium.
Japan
China
Egypt
.
Cuba
,
Germany
Italy

Established
TOTAL QUOTA

Total Imports
is Established :
Imports
Sept, 20, 1953, to : 33-1/3$ of : Sept, 20, 1?53, to
November 10, 1953 t Total Quota : November 10, 1953
1,41*1,152

k,323,k$l
239,690
227,^20
69,627
68,240
4^,388
38,559
31*1,535
17,322
8,135
6,51*1+
76,329
21,263

198,478
239,690

24,298

25,W*3
7,088

5,482,509

480,512

1,599,886

1/ Included in total imports, column 2,

Prepared in the B ireau of Customs,

198,478

75,807
16,91,7
1,099

22,7U7
ll*,796
12,853

l6,9l;7
1,099

24,298

240,822

17*

431

o j (P.-ht.

H- s'7

BSSU3HTE REX&ISB,
Monday, November 16, 1953.
Secretary of the Treasury Humphrey announced today that the subscription

books will open on Wednesday, November 18, for the exchange of the 2-1/8 per-

cent treasury notes maturing on December 1, 1953, is the amount of $10 billio
Holders of the maturing notes will be offered a choice of exchanging
them for 1-7/8 percent notes maturing December 1$9 1254, or 2-l/2 percent
bonds maturing December 15, 1958. The bonds will be an additional amount of
the issue dated February 15, 1953.
Subscriptions will be received par for par in the case of the new notes,

and at par and accrued interest frow June 15, 1953, la the ease of the bonds.

The collection of accrued interest is necessary to mafceathe bonds freely interchangeable with those already outstanding.
The subscription books will close at the close of business Friday,
November 20, Any subscription addressed to a Federal Reserve Bank or Branch
or to the Treasury Department and placed in the mail before midnight
SoveMber 20 will be considered as timely.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMZOI.-.TE RELEASE, AT 3 P.M.,
i-icr.day, November lo, 1953.

H-317

Secretary of the Treasury Humphrey announced today
that the subscription books villi open en Wednesday,
November lo, for the exchange of the 2-1 y percent
Treasury notes maturing on December I, 1953, an the
amount of $10 billion.
Holders of the maturing notes vaill be offered a
choice of exchanging them for 1-7/3 percent notes maturing December 15, 195**, or 2-1/2 percent bonds maturing
December 15, 1958. The bonds will be an additional
amount of the issue dated February 15, 1953.
Subscriptions will be received par for par in the
case of the new notes, and at par and accrued interest
from June 15, 1953, in the case of the bonds. The collection of accrued interest is necessary to make the
bonds freely interchangeable with those already outstanding.
The subscription books will close at the close of
business Friday, November 20. Any subscription addressed
to a Federal Reserve Bank or Branch or to the Treasury
Department and placed in the mail before midnight
November 20 will be considered as timely.

oOo

433

JM\/

Hovsrober A, 1953
MEMQKiinDaM TQs Mr, Bartelt

The following transactions were mad© in direct and guaranteed
securities of the Government for Treasury investment and other accounts
during the month of October 1953*
Purchases 116,999,000
Sales 29,000
Het Purchases $16,970,000
C, L. Norman
yty^fc^-f Chief, Investments Branch
Division of Deposits and Investments

Statement- Jo, . 36.
Treasury Department
Investments Branch

EHeyden 11/4/53

TREASURY DEPARTMENT
WASHINGTON, D.C.
X:1A

IMMEDIATE RELEASE
Monday, November 16, 1953.

H-318

During the month of October, 1953,
market transactions In direct and
guaranteed securities of the government
for Treasury investment and other accounts
resulted in net purchases of $16,970,000,
Secretary Humphrey announced today.

0O0

Tuesday, Kmmmmhmr 17, 1?S3*

Z^™3?J

Tlte^lttasury BspsrtBsttt aanouttfttd last warning that the tenders for tl,!>oo,000,01
©r tfesreabouts, of ?l«4ar fr#««wj Mils U ha dated nmeahmr 19, 1953, snd to sattiira
Fetaasry 18, lt$k9 mhtah wers offered on Havener 12, were mpamd at the Fedsral
H«»«rv« ranks on mumbmr

16*

taHmat

fatal applied tar - Hf265,lli$,OQ0
fatal •eatptaft
- 1,501,737»000 (includtet #260,799,000 entered on a
ntMicompetiiiw basis and s&tsptsd in
tmm\l at the avsrsfs prime show* feeliw}
Avsrsf* fries
- 99*6|S tqmimlmt rate mi discount appro*. 1,1*33$ per amm
Hangs of aeissptitd cojspetitii?« bids;
High
tow

- 99.6SS I^mivalent rats mi discount approx. 1.365$ per anmaa
- 99.635
*
» «
•
«• l.UOit » •
(25 peawsat of tfcs ssomt bid for *% to* low price mm amamptmd)

fadsrsl Eeservs
PUtrUt

total
Applied for

Boston
lew fork
Pbilafi€lpai«
Cleveland
ttiahammd
Atlanta
0liiesi®
St. Imw&M
Mlnnssp@lls
Rattsas city
Bellas
San fraaoiroe

1
JO,751,000
l»663,8ai9000
32,191,000
1*6,023,000
%97QktQm.

fatal

Total
I I ^ T T S M

[ n -[ornrini)U

m9W3>mm

1
25»2$1,000
1,036,9*6,000
17,191,000
Mi,7**»000
31,60^000
30,bB3,O0O
1$3»178,OCO
26,073,000
10,893*000
29,187,000
39*176,000
57,033,000

42,265,1*4,000

11,501,737,000

m»m,o®®

i9lmOM,ooo
t*3»3?3»«»
11,693,000
3?flf?,000
b8,U6,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, November 17, 1953.

H-319

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated November 19, 1953, and to mature February 18, 1954, which were
offered on November 12, were opened at the Federal Reserve Banks on
November l6#
The details of this issue are as follows:
Total applied for - $2,265,148,000
Total accepted
- 1,501,737,000 (includes $260,799,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.638 Equivalent rate of discount approx.
1,433$ per annum
Range of accepted competitive bids:
High -99.655 Equivalent rate of discount approx.
1.365$ per annum
Low
-99.635 Equivalent rate of discount approx.
1.444$ per annum
(25 percent of the amount bid for at the low price was accepted)
Federal Reserve
Total
Total
Da strict
Applied for
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

TOTAL

30,751,000
1,683,821,000
32,191,000
46,023,000
31,904,000
39,258,000
194,028,000
43,373>000
11,693,000
37,197,000
48,426,000
66,483,000
$"£,263,148,000
0O0

25,251,000
1,036,946,000
17,191,000
44,722,000
31,604,000
30,483,000
15^178,000
26,0?-,000
10,893,000
29,187,000
39,176,000
57,033,000
$1,501,737,000

437

- 3-

but shall be exempt from all taxation now or hereafter imposed on the princip

considered to be interest. Under Sections l\2 and 117 (a) (1) of the Internal

Revenue Code, as amended by Section 11$ 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, whether on original issue or on subsequent purchas
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.

4^a

- 2 -

pajnnent of 2 percent of the face amount of Treasury bills applied for, unles

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 mil be advised of the acceptance or rejection thereo

The Secretary of the Treasury expressly reserves the right to accept or rejec
any or all tenders, in whol: 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 Ebvember 27, 19$3 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing November 27, 19*3 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 fron the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under the Internal Revenue Code, or
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

xrmira
-r

TREASURY DEPARTMENT

Mtf ***

Washington
FOR RELEASE, MORNING NEWSPAPERS,
l&ursday, November 19, 1953
The Treasury Department, by this public notice, invites tenders for
$l,f>OQ,QOO,OQQ , or thereabouts, of 90 -day Treasury bills, for cash and

-*^=^.—

—ear -

in exchange for Treasury bills maturing November 27. 19f>3 3 ln the amount of
$1,501*518,000 3 to ^e issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated November 27, 1953 , and will mature February 25, 1954 s v/hen the face

— ^

^5T~

amount will be payable without interest. They will be issued in bearer form on
and in denominations of &1,000, $5,000, $10,000, $100,000, $500,000, and
|1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday, November 23. 19

Tenders will not be received at the Treasury Department, Washington. Each tend

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 th
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 mil be received without deposit from
incorporated banks and trust corrroanics and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, November .19, 1953...

H-320

*-VU

The Treasury Department, by this public notice, invites tenders
for. $1,500,000,000, or thereabouts, .of 90-day Treasury bills, for
cash and in exchange for Treasury, bills maturing November 27, 1953,
in the amount of $1,501,518,000, to be issued on a.discount basis
under competitive and non-competitive bidding as hereinafter provided.
The bills of this series will be dated .November 27,< 1953, arid,will
mature February 25, 1954, when the face amount will be payable without interest. They.will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000 $500,000, and
$1,000,000 (maturity value)
Tenders will be received at.Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, November 23,. 1953. Tenders will not be received at the*
Treasury Department, Washington. Each bender, 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 hob 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 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
\or.n An S u b ^ e c t t o these reservations, non-competitive tenders for
Jj>d00,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted
e bids
f£mPu^i
tne
bids must
be
- made
Settlement
or completed
for accepted
at the Federal
tenders Reserve
in accordance
Bank onwith

- 2-

November 27, 1953, in cash or other immediately available funds or in
a like face amount of Treasury bills maturing November 27, 1953.
Cash and exchange tenders will receive equal treatment. Cash
adjustments wi.ll.be made for differences, .between• the;.par ,y.alvie..of
maturing bills-accepted in exchange andythe issue, price" of the 'new
bills.
The income -derived from;Treasury bills,, whether....interest, or g
from; the saleor -6ther; disposition/ of the bills, ".sliall .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 ox1 supplementary ..;'••
thereto. The bills shall be subject; to; e state,, .;.i nbEer it an ce., gift; or
o^her excise taxes, whether Federal- or...•State',' ibut. shall be:\-exempt; from
all taxation'now ora hereafter imposed: ;on, the principal .or! Interest
thereof'by any'iStatejXor: any of, they.possess ions of the United States,
or by any local taxing authority. For purposes "'df taxation, the a
amount of discount at which Treasury bills are ''originally sold by
the United' States^ shall be ^considered to be interest,. Under,T3ections
42 and 117 (a) (l): of the internal. Revenue Code, as, amended,;by .
Section 115-of the Revenue Act o:f. 1.941, the';^o^t\.bf.^d.i:s.cbui>t.. at":
which bills Issued hereunder .are sqld shall not be. ..cdnslderediito a:
accrue1 until-satch bills- shall be -sold,/ redeemed or otherwise 'disposed
of,;; "and :;such ^-hi lis -are^ excluded; from, •consideration, as* • capital/d s s^t s
.Accordingly,•• the dwhet»y.of .Treasury bills , (other than -life 'Insurance
companies) is suedfhere^urider vneed include in his; income, tax return
only-the''difference between .theapr ice 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
year1 for which the' return ;is made, ..as-ordinary..gain or loss.
Treasury Department :Cire:ular No, 4l8, as amended,. and this.
notice,- prescribe the: 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*

- 10 -

The «jdHln£fttx*ttan ii aeklag lie&dsiay In meeting theme difficult mid
vital problems* Ow objectives are clear., leaching these objective*

will be' a long end continuing process• -Turn administration 'has:nmde: a ;-.§©o
start — this encourages us to believe that our goal® will be -'MachecL

442

- 9 -

of the Congress, end good progress is being waM* ^Wmre are waxy changes
which could well be raade to remove inequities and to siB^lif$* the tax
system* Bat loss of revenue iaust^ careful^ evaluated.
m3tf®a

cannot afford as usuch reaction as we would all like iBmediate3y,

But we will set a pattern of reduction on which a modest start will prossptly
be urnde, with provision for additional future reductions in taxes as rapidly
as reductions in es^emiitures—consistent with security—indicate that taey
are justified.
We have made real progress in the field of tax administration* In
January morale In the Internal Revenue Service was very low—shocking
scandals had occurred in recent years*
Oar objectives have been to restore public confidence in Federal tax
administration by administering the law as it is written* speeding-up auditing
of tax re turns, tightening-up on enforcement, and giving a fair break to the
taxpayer*

443

- 8-

Gorapetitive enterprise, free initiative—the courage to take a chance—
the opportunity to better oneself by effort—constructive work and

invention*-»these have aaade America great*
{$).. Ijmx &eductions. this administration is reducing taxes* Because

we have reduced expenses and only because we have siade these reductions

in spending, the excess profits tax will expire an Beceufcer 31 and individu
income taxes will go down an average of 10 percent at the same time. Ho
tax reduction whenever planned could be justified otherwise.
Additional tax reduction is desired by all and is essential to the

continued growth of our econoE^.
But taxes can be further reduced only as expenditures are further

reduced. And expenditures can be reduced only as consistent with maintaining

a defease adequate to i&eet the dangers which confront us.
Our entire tax system is being thoroughly studied with a view to
removing wherever practical obstacles to growth and incentive. This is a

joint undertaking of the Treasury and the t&ys and Means and other consaitt

444

- 7-

Bids has been a Jsmeiir
^raelr hardship
hards. upon the s&llions of Americans who
have saved money either in savings deposits, in insurance, or in retirement

fraternal and pension plans.
this administration is cowiitted to do all it can to halt furrier
inflation, which is «&jLaa& word for this decline in the purchasing power
of a dollar.
fhere las been a change of only one-half of one cent in 1939 dollars in
the purchasing power of the dollar in tiie past year. This is real proof of

stability.
(4) Incouraging initiative. Heedless and stifling controls were lifted

almost as soon as the administration asstuaed office. They had not kept down

the cost of living. Ihey were curbing vital African initiative and enterprise
Lifting of controls was a calculated risk. The ies^pcris*. that the
md of controls would mean runaway inflation died out almost as Quickly as
the controls thesiselves were mdeda
this administration believes that ihe average American can do jaore for
himself—if he is allowed to do so~*than the government can do for him*

1 fw

- 6 -

five-year bond on a refunding operation*

In helping to spread the debt, we are also encouraging the widest

possible ownership of savings bonds* We note with pride that the sales

of Series E and H savings bonds so far this year are higher than in any
year since 1946.
Our policy is fixed and determined. It is flexible only in its

execution. While our objective is definite, our progress toward it
realistically recognises and adjusts to the changing conditions in which
we operate.

We have Bade no change in either policy or objective. Our goal has

been and will continue to be a stable econo&or for a healthy econongr—for

the military and econoadc security of all*
(3) The menace of inflation. The purchasing power of the dollar

declined from 100 cents in 1939 to $& cents in 195>0 and to 52 cents in

January 1953.

4£

S-

This adss&nistration plans to take steps to laake this huge debt less

inflationary and less dangerous to the value ot money and to the nation*s

economy. At every appropriate time we will extend the maturity of the debt

by placing longer-term issues. We will move more at the debt away from

the banks and into the hands of long-term investors, the real savers of thi
Nation.
We cannot always move on both fronts at the same tiae. We must be

careful not to dislocate the sensitive balance of our econoigr and we must

always be guided by current market conditions. But our goal is clear and

we are working toward It.
In February, owners of |9 billion maturing certificates were given

the chance to exchahge their holdings for a bond of six years maturity

instead of the usual one-year certificate. In April, the Treasury offered
a 30-year bond*—the first marketable lGng-*ten?i bond since 1945. In
September, a ^^yeer note was offered, aid in October a new cash offering
of eight-year bonds was made. This month investors were offered a

44 T

- 4~

Much remains to be done but progress has been made and more will be

Made as each day and each week goes by.

More than ?0 percent of jemtf spending is for military defense or in

foreign or atomic programs. TJhder such circuisstances the reason for not

moving faster is obvious. We are eager to riake sure that savings are only
Made with extreme care, knowing fully the great paril in which we live in
this atomic age*
(2) Management of the Debt. The public debt is now practically at

the Unit of ^275 billion. 3h addition to inheriting a debt of enormous
size, we also inherited a debt that-hat^43eenH3ad3^r-i^»«^ed*-.
Searly three-quarters of the debt we inherited in January matures
within less than five years or is redeemable at the holderfs option.
Too large a proportion of this debt is in the hands of banks rather
than distributed to long-term investors*
Both of these conditions affect the supply of credit. They are
inflationary. They have contributed to cheapening the value of the dollar

448

~3By August of this year this administration had cut planned

expenditures for the fiscal year 1954 by isore than $6 billion under the

January estimate of the previous administration. 2his plus $800 million
of income gained from the six-month extension of the excess profits tax
has resulted in cutting a prospective deficit from more than $21 billion

to less than $k billion, according to present estimates*

It is true that this does not provide an adsiinistrative budget in

balance for 1954—but it is still a real saving of billions of dollars

and not far from a cash budget balance. And more important the taxpayers

of America will have these billions of dollars in their own pockets to

spend for themselves instead of having the government spending it for them.
Significant, too, is the reduction by $10 billion of new authorizations

for spending in this fiscal year—that is a reduction in authority to place

orders, which will result in redueed spending by that amount in future year

This is an istportant turning point in government finance. For the

first time in recent years estimates now provide for less spending in the
current year than in the year just passed*

449

- 2 -

Fourth, to remove the strait jacket of wage, price, and other controls

and directives and isake constructive plans to encourage initiative;
Fifth, to work toward the earliest possible reduction of the tax

burden, remove inequalities, simplify the tax system and revise the tax

laws to lesson their restrlc tlvsr effect upon the vigorous growth of ou
economy.
What progress has been made toward meeting these objectives?
(1) Deficits and the balanced oudget. The first step toward balancing

the budget was a tremendous effort to get previously planned spending un

control*
little could be done about expenditures during fiscal 19>3* which was
all programed and nmre than half gone.
But a thorough revi@* of all future rdlitary and civilian programs

was immediately undertaken.

These reviews have not yet been finished. But progress has been Bade*

1/ \y(Ay^-y,^,
^

"""\/i

**„*'

Remarks by Under Secretary of the Treasury Marion B. Folsom
at a dinner meeting of the American Chemical.Association^:.
7 p.m. Wednesday, November 18, 1953, at the Shoreham Hotel.

In his State of the Union Message two weeks after assuming office,
President Eisenhower described five areas in which this administration

would strive to develop a fiscal and economic policy to reinforce military

strength and at the sane time sake oars secure the nation *s economic healt

and resources.
These objectives weres
First, to reduce the deficits as planned by the previous administration

and then at the earliest possible time balance the budget by reducing
federal expenditures to the very minimum within the Units of safety;
Second, to manage properly the burden of our inheritance of debt and

obligations|
Third, to check the laenace of inflation;

TREASURY DEPARTMENT
Washington
RELEASE 7 P.M.,
Wednesday, November 1,8, 1953.

Remarks by Under Secretary of the Treasury
Marion B. Folsom at a dinner meeting of the
American Chemical Association 7 p.m., Wednesday,
November 18, 1953, at the Shoreham Hotel.
In his State of the Union Message two weeks after assuming
office, President Eisenhower described five areas in which this
administration would strive to develop a fiscal and economic policy
to reinforce military strength and at the same time make more secure
the nation's economic health and resources.
These objectives were:
First, to reduce the deficits as planned by the previous
administration and then at the earliest possible time balance the
budget by reducing federal expenditures to the very minimum within,
the limits of safety;
Second, to manage properly the burden of our inheritance of
debt and obligations;
Third, to check the menace of inflation;
Fourth, to remove the strait jacket of wage, price, and other
controls and directives and make constructive plans to encourage
initiative;
Fifth, to work toward the earliest possible reduction of the
tax burden, remove inequalities, simplify the tax system and revise
the tax laws to reduce the obstacles to the vigorous growth of our
economy.
What progress has been made toward meeting these objectives?
C1) Deficits and the balanced budget. The first step toward
balancing the budget was a tremendous effort to get previously
planned spending under control.
H-321

&<0

- 2 Little could be done about expenditures during fiscal 1953,
which was all programmed and more than half gone.
But a thorough review of all future military and civilian
programs was immediately undertaken.
These reviews have not yet been finished. But progress has
been made.
By August of this year this administration had cut planned
expenditures for the fiscal year 1954 by more than $6 billion under
the January estimate of the previous administration. This plus
$800 million of income gained from the six-month extension of the
excess profits tax has resulted in cutting a prospective deficit
from more than $11 billion to less than $4 billion, according to
present estimates.
It is true that this does not provide an administrative budget
in balance for 1954—but it is still a real saving of billions of
dollars and not far from a cash budget balance. And more important
the taxpayers of America will have these billions of dollars In
their own pockets to spend for themselves instead of having the
government spending it for them.
Significant, too, is the reduction by $10 billion of new
authorizations for spending in this fiscal year--that is a reduction
in authority to place orders, which will result in reduced spending
by that amount in future years.
This is an important turning point in government finance. Fpr
the first time in recent years estimates now provide for less
spending in the current year than in the year just passed.
Much remains to be done but progress has been made and more
will be made as each day and each week goes by.
More than 70 percent of Federal spending is for military
defense or in foreign or atomic programs. Under such circumstances
the reason for not moving faster is obvious. We are eager to make
sure that savings are only made with extreme care, knowing fully
the great peril in which we live in this atomic age.
(2) Management of the Debt. The public debt is now practically
at the limit of $275 billion. In addition to inheriting a debt of '
enormous size, we also inherited a debt that was in bad shape.

3ry'5

- 3Nearly three-quarters of the debt we inherited in January
matures within less than five years or is redeemable at the
holder's option.
Too large a proportion of this debt is in the hands of banks
rather than distributed to long-term investors.
Both of these conditions affect the supply of credit. They
are inflationary. They have contributed to cheapening the value
of the dollar.
This administration plans to take steps to make this huge
debt less inflationary and less dangerous to the value of money and
to the nation's economy. At every appropriate time we will extend
the maturity of the debt by placing longer-term issues. We will
move more of the debt away from the banks and into the hands of
long-term investors, the real savers of this Nation.
We cannot always move on both fronts at the same time. We
must :a careful not to dislocate the sensitive balance of our
economy and we must always be guided by current market conditions.
But our goal is clear and we are working toward it.
In February, owners of $9 billion maturing certificates were
given the chance to exchange their holdings for a bond of six years
maturity instead of the usual one-year certificate. In April, the
Treasury offered a 30-year bond--the first marketable long-term
bond since 1945. In September, a 3i-year note was offered, and
in October a new cash offering of eight-year bonds was made. This
month investors were offered a five-year bond on a refunding
operation.
In helping to spread the debt, we are also encouraging the
widest possible ownership of savings bonds. We note with pride
that the sales of Series E and H savings bonds so far this year
are higher than in any year since 1946.
Our policy is fixed and determined. It Is flexible only in its
execution. While our objective is definite, our progress toward it
realistically recognizes and adjusts to the changing conditions in
which we operate.
We have made no change in either policy or objective. Our
goal has been and will continue to be a stable economy for a healthy
economy--for the military and economic security of all.

- 4 (3) The menace of inflation. The purchasing power of the
dollar declined from 100 cents in 1939 to 58 cents in 1950 and to
52 cents in January 1953.
This has been a serious hardship upon the millions of
Americans who have saved money either in savings deposits, in
insurance, or in retirement fraternal and pension plans.
This administration is committed to do all it can to halt
further inflation, which is only another word for this decline in
the purchasing power of a dollar.
There has been a change of only one-half of one cent in 1939
dollars in the purchasing power of the dollar in the past year.
This is real proof of stability.
(4) Encouraging initiative. Needless and stifling controls
were lifted almost as" soon as the administration assumed office.
They had not kept down the cost of living. They were curbing
vital American initiative and enterprise.
Lifting of controls was a calculated risk. The statement that
the end of controls would mean runaway inflation died out almost
as quickly as the controls themselves were ended.
This administration believes that the average American can
do more for himself--if he is allowed to do so--than the government
can do for him. Competitive enterprise, free initiative--the
courage to take a chance--the opportunity to better oneself by
effort—constructive work and invention—these have made America
great.
(5) Tax Reductions. This administration is reducing taxes,
Because we have reduced expenses and only because we have made
these reductions in spending, the excess profits tax will expire
on December 31 and individual income taxes will go down an average
of 10 percent at the same time. No tax reduction whenever planned
could be justified otherwise.
Additional tax reduction is desired by all and is essential
to the continued growth of our economy.
f 4.uBut taxes can be further reduced only as expenditures are
iurther reduced. And expenditures can be reduced only as
consistent with maintaining a defense adequate to meet the dangers
which confront us.

&-x
m. K

Our entire tax system is being thoroughly studied with a viewtb
removing wherever practical obstacles to growth and incentive.
This is a joint undertaking of the Treasury and the Ways and Means
and other committees of the Congress, and good progress is being
made. There are many changes which could well be made to remove
inequities and to simplify the tax system. But loss of revenue
must be carefully evaluated.
We cannot afford as much reduction as we would all like
immediately. Bait we will set a pattern of reduction on which
a modest start will promptly be made, with provision for additional
future reductions in taxes as rapidly as reductions In expenditures-consistent with security--indicate that they are justified.
We have made real progress in the field of tax administration.
In January morale in the Internal Revenue Service was very low—
shocking scandals had occurred in recent years.
Our objectives have been to restore public confidence in
Federal tax administration by administering the law as it is written,
speeding-up auditing of tax returns, tightening-up on enforcement,
and giving a fair break to the taxpayer.
The administration is making headway in meeting these difficult
and vital problems. Our objectives are clear. Reaching these
objectives will be a long and continuing process. The administration
has made a good start—this encourages us to believe that our goals
will be reached.

0O0

4^£

-2•
mmm^y%fi

delegatioiiVof author! ay

in the fast in usny cases w i U be eliminated.

Wmemhmr 12, 1913

v^
HMfc Secretary of the Treamry/mwm
emammed

It w^ffr.
®* i W w y /

tod&y that he had dmlm*tmd to the I n 4 r m l thymmmm

Service authority to eaeecut®

1Lth
1 tfal* delegation at amttorii

•h.

have c«#leted the islepttte* from the frss^ury
to the Internal Iev«i»e Service of all necessary authority
to denim***, UdtrUml

tax mama]^plae

Secretary stated

that prmwirnmltf there lm& been delegated to the Internal
Bevenue Service final authority to approve offers in
• U * , to review remissions or mltlmtims

claine for regard, to mate refunds «f internal revenue t M M ,
to collect tax: liabilities, to detersiine and assess tax liabilities, to recommend erJMaal proeeeiition, to grant extensions of tia», to grant ciaanges in accounting setaods for
taafflil.il© years, fhe S©ej?etary also said that anttaity to
appoint fersoifflei wad to establish Internal procedures had
been previMwXjr <3elejat@$ to tte Internal levenne Service.
tl» treasury « U X eontiane to raeoraaeaa aa& preseat to
0ojigre»8 all legislative proposals, approve regulations and
Treasury mmrnXmiaam, negotiate tax treaties, and dmelde all
f O M U o w of tax policy, fte Internal Bevenne Service, with
the poiaere delected to it, will act as m$ AlpWWmiilr nnit
in the freasnry in iealing with ta»fay®w on individual tax

/ r-y

•

- ~

•

AL-

'•<

—

I -y~+m~ D tS^VSecretary of the Treasury George M. Humphrey announced today
that he had delegated to the Internal Revenue Service authority
to execute final agreements in the settlement of tax controversies.
"With this delegation of authority we have completed the
delegation from the Treasury to the Internal Revenue Service of
all necessary authority to close individual tax cases. By the
various delegations of authority, duplication in effort and delay
which has been occasioned in the past in many cases will be eliminated", Secretary Humphrey said.
The Secretary stated that previously there had been delegated
to the Internal Revenue Service final authority to approve offers
in compromise, to review remissions or mitigations of forfeitures
of claims for reward, to make refunds of internal revenue taxes,
to collect tax liabilities, to determine and assess tax liabilities,
to recommend criminal prosecution, to grant extensions of time, to
grant changes in accounting methods of taxable years. The Secretary

also said that authority to appoint personnel^and to establish 4L++m~
internal procedures had been previously delegated to the internal
Revenue Service.
The Treasury will continue to recommend and present to Congress

all legislative proposals, approve regulations ana Treasury decisions,
negotiate tax treaties, and decide all questions of tax policy. The
Internal Revenue Service, with the powers delegated to it, will act
as a unit in the Treasury in dealing with taxpayers on individual
tax cases.

TREASURY DEPARTMENT
IINGTON, D.C

IMMEDIATE RELEASE,
Thursday, November 19, 1953.

4B3
H-322

Secretary of the Treasury George M. Humphrey announced
today that he had delegated to the Internal Revenue Service
authority to execute final agreements In the settlement of
tax controversies."With this delegation of authority we have completed
the delegation from the Treasury to the Internal Revenue
Service of all necessary authority to close individual tax
cases. By the various delegations of authority, duplication
in effort and delay which has been occasioned in the past in
many cases will be eliminated", Secretary Humphrey said.
The Secretary stated that previously there had been
delegated to the Internal Revenue Service final authority
to approve offers In compromise, to review remissions or
mitigations of forfeitures of claims for reward, to make
refunds of internal revenaie taxes, to collect tax liabilities,
to determine and assess tax liabilities, to recommend criminal
prosecution, to grant extensions of time, to grant changes in
accounting methods of taxable years. The Secretary also said
that authority to appoint personnel (except the Deputy
Commissioner and Assistant Commissioners) and to establish
internal procedures had been previously delegated to the
Internal Revenue Service.
The Treasury will continue to recommend and present to
Congress all legislative proposals, approve regulations and
Treasury decisions, negotiate tax treaties, and decide all
questions of tax policy. The Internal Revenue Service, with
the powers delegated to it,will act as a unit in the Treasury
in dealing with taxpayers on individual tax cases.
0O0

464

- 16 -

Only such security can make the peace we seek not a
prayer hut a fact*
now —

Serving so just a cause in such a spirit,

as in that tine a century ago —

hsmt must hrm^mltF mm voHSU

we cannot aemriar fail,

^65

- 15

As America is called, to he worthy of the cause of
freedom, so we —

this Party and this Government —. are

called to he worthy of America.
*

must he steadfast*

Us can never pretend to solve a prohlem with a slogan.
We can never sell principle in the crowded market-place ef -/^
political expediency.

He must always care less for our

performance on television than our performance in office.
We must he truthful* and true to our ideals*
We have no reason to fear or evade criticism*

Me must

prove ourselves too honest and too intelligent to he above < ^ ^
criticism or lKproacrtu At^t^t^t^y.
And we must he confident*
we cannot he feehle or faltering la what we helieve. For
we believe ultimately in the boundless courage and industry
and Ingenuity of the free American —

as a resource of nature-

unmatched in the? world*

We believe in his capacity not only

to dream a good dream —

hut to wake, to work, and to bring

that dream to true life. Confident, truthful, steadfast*
These are the marks of the leadership we must offer.
Only such leadership can create lasting security for
America*

466

- 14 a*

And —

as a final self-evident truth of our security —

we know that the economic Issues we must meet do not end at
our shores.
Our trade with the world -- and the world's trade with
us —

are vital to the strength we all need if we are to stay

free.
Powerful and productive as America is, we need markets
for our farms and industries abroad,

we need* no less urgently,

essential raw materials from Asia and Africa and Europe*
If we, in our vast strength, are so dependent upon ehhera —
we can instantly see how others, less strong, must depend upon
us, upon our trade amd markets, for their own economic health
and welfare.
And this truth we have learned and dare never forget: Our
freedom cannot survive in a vacuum!we need allies and friends —
and the menace to freedom for them can he a threat to any
industry, any farm, any home, any family In America.
ytt^^^^Ly
This Is nothing less than the plainest^!** of history*
under which we live*
I have spoken of peace, and I have spoken of security•
Clearly implicit in all I have said is our concept and
understanding of leadership*

467

- 13 1 remind you again that all these measures h a w mm a
final, ruling purpose — not merely <£s^S^s^S^tlo(»"Of all
our aatwlal M a d s — hut first, last and mil the tint they
art essential for the very security of America* tar America*©
surest defense against any enemy is the massive power and
measureless potential of American mams production*
In perfectly thl* defense, we hold several truths ^ma^uy
-%• self-evident*
ISbtse truths tret
Firsts

A crippled American economy would serve the

eonmjunlst dream of eonqpaat as surely as any military disaster
and would he an almost fatal M o w to the stability and security
of all free nations.
Seconds

The worth of our military defense program must

be mmmwped mot simply fey its cost but hy its wisdom — for
hilli«» of dollars waatefully w

unwisely spent, or production

schedules frosMsn to produce obsolete weapons, would spell
spectacular and fatal folly,
Third: Thm MMd of eeonomy %wm@md. to sustain our vast
•essential defense program demands a high level of employment
sad Indus tidal activity*
fourth: Bmh

.industrial esgileymettt and activity mist he

founded npon and can be anscm«mj»d and assured only hy honest
money* economical goveriisisat, and sound mousy policy.

1-68

_ 12 .

B3a

All these economic measures, finally, mean speeding the
day when successive further reductions in taxes following one
upon another as rapidly as reductions in spending are achieved
can allow the consuming community to quicken its demands upon
the productive machinery of all America* These quickened
demands are the surest stimulants to an American prosperity
producing goods for hotter living for all the people so that
we need never^have to rely upon defense spending for good times*
I M S administration believes that the average American
can do more for himself —
government can do for him*

if ha is allowed to do so —

than the

Competitive enterprise, free

initiative —> the courage to take a chance — the opportunity
to hotter oneself hy effort —

constructive work and invention —

these have made America great*
It is the collective effort of 160 million Americans, each
for himself striving to improve his lot, advance his children,
and improve the position of each succeeding generation, that
all taken together has seen a power to create more things for
more people, for higher and higher standards of living for all,
than ever has been known in this world before.
Opportunity is the rightful heritage of our children.
It must he protected and guarded and handed on*

4G3

11 -

They mean,, savings ~ ~ s a y i n g for individual families and
savings that mean Johs —

johs in factories, Jobs in mills,

jobs In mines and power plants that cannot he built without
such savings*
They mean, by virtue of cheaper costs to state and local
governments, new opportunities to build schools, the highways,
the hospitals which are so vital a part of the strength of our
whole nation.
This administration is reducing taxes* Because we have
reduced expenses and only because we have made these reductions
in spending, the excess profits tax will expire on December 31
and individual income taxes will go down an average of 10 percent
at the same time*

Let no one he deceived*

Ho tax reduction

whenever planned could he Justified otherwise*
Additional tax reduction is desired by all and is essential
to the continued growth of our economy*
The accomplishment of sound money will protect the savings,
pensions and incomes of the old, while supplying the tools of
production hy stimulating investment^ but this nation, as the
land of opportunity for the young — eager for work and
ambitious to better themselves — cannot long endure as such
under the restrictive taxes which we inherited.
Taxes can he further reduced only as expenditures are
further reduced. And expenditures can he reduced only as
consistent with maintaining a defense adequate to meet the
dangers which confront us*

dli

- 10 *

we have reshaped the financial policies of the Federal
Ooverament to serve a single, simple purpose: To give the
American people honest American money, the kind of dollar that

This action depends upon three things —

sound budget

policy, sound federal Reserve System and sound debt management.
We have, In the first instance, reduced the prospective
deficit for the current fiscal year from more than #11 billion
to less than $¥ billion.
we have freed the Federal Reserve System to use its power
to provide a supply of credit that meets natural demand and
avoids those excesses encouraging either inflation or deflation*
'we havefcegun"meeting the problem' of debt management by
offering the first marketable long-term loan An 30 years; and
we shall continue to extend the maturities of refinancing
operations as relevant conditions ^ictSte*

These measures

are not the concern simply of government statisticians or
titanic banking institutions.
They are vital to every individual and family In our
nation. They mean bringing an end to the withering of the
value of the dollar' that, with slow and implacable deceit,
cheats every family of the purchasing power of their Income and
even of clothes and food.

4-71

- 9 ~

In addition to and overshadowing all else was the grim
conflict in Korea, taking the lives of American boys 2M a
stalemate that had been dragging endlessly, hopelessly, but
far from bloodlessly, on and on for nearly three lose horrible
years for almost every home in this land*

The financial burden

of Korea alone piling deficit on deficit, debt on debt, and
tax on tax, built up commitments to continue for years to come*
?- -

.-.a

Shooting and bloodshed in Korea are mmdmd9 at least for
the time being, and the tension in the homes throughout America
is lessened.

In its place our every effort is at work to fashion

a lasting, sound and equitable peace, and substitute reconstruction
for destruction in that war-torn land.

It is our fervent hope

that out of it may come a permanent and constructive settlement.
These, than, were some of the financial inheritances which
we found on the governments doorstep when we moved in last
January*

These were the burdens and the hard financial facts

to which we fell heir.

472

- 8 -

A habit of extmvaganee 2M some government agencies is
part of the burd«i of' our financial inheritanea*
Some government agencies perform vital fistetlons and are
well run*
Others have aetpired habits of extmv&ganea ever the -past
twenty years of free and easy spending.
.Bils^ administration is determined to cut out careless
spending*

We are trying to develop more dollar-consciousness

en the part of all government employees, both in and out of unlfow
A H our efforts in cutting out ex^mvaganee are based on
the simple ta&owlsAms thafe traff dollar the government spends
comes not from some mysterious pool of wealth but from the toil
and savings of American citizens who deserve and expect a full
dollar* s worth for every dollar taken from them to support their
government*
Our Inheritance in the field-of. taxation is a staggering one.
It is staggering because of its else, dm

to inherited

obligations mmd the defiedt financing of recent years*
In 1? of the 20 fiscal years fro®. 1933 to 195S# the govertsmi
operated with a deficit*

Conversely, In only three of those

twenty years did the government live within Its income*
It is also ztyyarlng because of inequalities and deliberate^
restrictive provisions, which, in addition to the very else of
the tmx program, inhibit growth and incentive and deter Initiate
and development of a vigorous free economy*

473

- 7 -

The debt limit is a financial inheritance which gives
us great concern. A law was passed to require the payment of
the great bulk of corporation taxes in the first half of the
calendar year*

This disproportionately larger collection of

taxes was used by the previous Administration to substantially
reduce a budget deficit in one year*
This forced the practice of issuing tax anticipation bills
in the fall when tax collections were low against expected
receipts the following spring when corporate tax collections
were high, and so automatically forces increased borrowing over
at least a six-month period*

This fixed inheritance has made

the present debt limit too restrictive.
yfamn this Administration came Into office, it found about
$8l billion of orders placed by the former administration from
one to three years previously for goods to be delivered this
year, next year, and even the year after—all to be paid for when
delivered, without providing any money for the payment*
This 31 bill ion-dollar legacy without provision for its
payment now creates a most burdensome factor in raising cash to
pay the government's bills*

Thesa CO*D* orders must, of course,

be paid for in addition to all the current expenses of the
government*

They increase the problem of the debt limit as well

as the difficulty of balancing the budget quickly.

474

- 6-

There were other crippling burdens lahsrltsa from the
preview A^sinist«tIon ; to which this Administration fell heir
in the fiscal and economic field.

***

This inheritance included the huge public debt, the
restrictive debt limit, |8lmillion in 0.0*©* orders, extravagance In government, the staggering tax burden, and on top of
it all, a war of stalemate in Korea bringing sorrow and grief
to many homes and involving- heavy current expenditures for our
government.
The public debt Is now ptftstlailly at the limit of $275
billion*

in addition to inheriting a debt of "enormous siss,'

we also inherited a debt that had been badly managed, nearly
ahree~<f.x&rtei^ of which matures within l®mm than five years or
is redeemable at the holder*® option with too large a proportion
In the hands of bastes rather than distributed to long-term
investors*
Both of these conditions were deliberately planned by our
predecessors and affect the supply of credit* They are inflatlonary. Titty have contributed to cheapening the value of

fell from ^ w 03 I

\j£^MW

the dollar whichA00 cents/to 52 cents/at the present time.
Ironically enough, this same policy which produced iaflatioa
and devalued the dollar resulted in our paying so much more for
what we Imight; that we now have much more total debt to pay
than would otherwise have been the case*

7ET
/J

- 5 For I M s clear reason, our concern for the nation ( s economy cannot
-4*4yL

mm measured stereiy in hmmm o ^ profits # H S g p f r or dividends. V$
art not., In the ultimate sfcmse, thinkitig of stock quotations and
Interest rates, He are not waiting decisions in terms of washing
i»igiiiww wir s s ^ m v * m * s n me**i§*

*nir mmmmmMm-.m.Ww

*W3ig.jmjBimHi^iMa..AS..[ffiPw*g|

lap* than <my concern ftr # « f H w » lH*a, &T <tef*ns* for sr*gy r^eft

It have served this purpc>^3 faithfully and, I belisvs effectively,
Aaong the unhappy legacies this Administration inherited from the
past was the arbitrary rule mt mm

mmmmp

needless, stifling

controls. Us lifted these controls in our first tmm week* in
office — aa swiftly as the voices of the critics wars shouting

which has sa^n ssiployment pay rolls and Industrial activity rise
this year to the hi&hsst rec orda ever known and which has seen the
east of I iving move less fen ormhalf-of one percent over the
greater part of this year, save the lit to those who had thus

47b

•** *%

hlm^immmm

in all that tuattiy mmmmmm the safety a£

Afl»viaa in a world threatened byfiafcsdftAaaatfUet*
m i s , then is @ur broad vision #f the ideal mi keaee. which rules
all our thoughts and actions,
® w *Mff^*

of this

**•*! 4**aatl|r involves the pim*equlsitfe of

I cam define this security plainly* It means* im^^ d^tense
supported by a sound economy*

Security dm® not mean amaiea, wviaa# rockets and Jtis alona.
It alee means honest dollars and sound fiscal policies.
Security does not depefivd solely upon military

^fecticians or the

in&enultsf of nuclear Dhvaietlsts and weaken d@$li£ner$„

Ilk de&anda

also m*on. the In^iiuity of sa&nuf&aturers, the venturou^r*ess of
capital, tte skill of men aioiig the assembly-line,

^y*z ifmm^lm mm not nmtw»«- An* that manna a healthy and vlgorou*

1 must mm blunt about one point:
The question is frequently asked today*

"Which do you favor,

which art you most concerned abtut --. a prosperous economy mw an
adeauat© national defense?**
This is a specious Question. It is like asking a man whether Its
prefers to last* his head or his heart. For it is inconceivable
that a slmng national defense could be supported b^ m^mim
a healthy national economy.

*»»

477

3 •**

It must be deserved, pursued, and won* Art that in turn demands
wndssfttammlatv patience, sacrifice, wisdom, .and the kind of plain
American courage and steadfastness that alone can .halt and disain
"vy

the ensiles of fMftdkw*

Mm teow ** we held a nw^mr of basic convictioni"-* about this
pursuit of peace*

Firstt Ms taoar that willful, armed aggressors can never be ttamtd
back by wsafcaas* smMWH^tasms*

*Wmm is only tns thing that the

aggmNNM» f a strength stamaats ** grtattir. strength* And that
strength AHtslsa ttattm and stall have*
Seconds- W taw that such strength, wisely used t# serve peace,
does not dmmmm^ ttamftsnst • «r 1ti»Iligerencefloud' threats or bombast.
Me do not have to stout m mtmt «wr strength* we nasi only t#
have it* tod having it, we must and shall senate ever ready te
resolve, in peaceful discussion, any or all of the gmatt issues
dividing the world.
Finally % we teow that peace <** true, lasting peace »~ not only
involves the affairs among nations but also the 'affairs witfoin
our own nstlona
It demands ###n#mic' peace ••** for no nation, could long guard its
freedom if all its families lived in mmd or chronic fear of
And it demands, in. a certain clear sense, political peace — for,
hmwmm

sharply our two great parties may and should debate numbst-

lets issues, both must be pledged to a true and faithful

*7«

*» 2 •
It is am seta of a similar mM

mads 100 years age whan m i s

nation af ours was drifting *ewai€ civil, war, when the irmtituticn
of slatary |n di;a'torat *t*n was also the fateful issue, and when
the mttp&t** will brought tail a party of ours to birth. And hiatorj
has deerted that we talMata* this centennial of our Party's birth
hy asstffini, meeting, and mastering another stSBmotts to save our

tat* 1 am raying is *N*nat*n partisan rhetoric. It is the cold and
«***•» tsvttu
What anfttaK — for this Party, for is«rtea# im all free nations ^ £ W yLU^-/^y^o
%B mm tananfeft theftrfcfttato,-*md the wi^d^^ith which we face
this truth.

tat^itataMif
1 think 1 ess most slaarJjr answer that cjueat ion bv Bjaaaklru? to veu
of ttats of the words moat commonly ottered in these days — three
me^aT^m wmfmw

vi*wnw

*am$e vm- ^p^pr mm^weiw^a-mft^^ mm,:mm9sawm9mmmm m&mmwr

^pasSp 1

'itgsPSSWwiBj' *m ^niSJHHfiwffwS

ewe*

win^e^R ^

tta first word is pasta.»
tat second is J t B g ^ y
fUs thlra is lmm$mmM$».
1 speak of peace first for the simplest of reasons: Itm attaimaent
it the first prayer «r all America — and that instantly makes it
the miprvm* puvpo&a nf this MtaatetMttaa and this Government of
the VhitmX States.
Thlt. sin$t2.#fe&skswmons and directs all our anerisles.
It demnda an effort fully as total as total war*
Peace emmet be proclaimed ~» or ena#ttd — or declared ~~ or votrfi

A, 7 Q
y- i o

Remarks by Treasury esrs ar^ George M. Ha^phrey aaLJ - dinner
sponsored by the Republican Committee of Illinois, Palmefc Housi
Chicago, 111. -7 pirn* Monday, ^ov* 23, 1953

^^^%^k

i*i

Our an* bears witness to some

of the most revolutionary changes recorded^
-s^«4?y~-e^^»rta^4an*
St have s e ^ the panttratlon of the isysteries of nuclear fission
and fusion nfcagger the teagteatlon of the wisest m i M s ~~ and
a new ag© whose marks, whose mtnatta, whose tepee are beyond.
the hopes and fears of «t»y man alive today.
We have seen the naturt of war arid the weapons of war completely
revolutionised *
Me have saaau the naturt of paaes and the saftguards of peace beeeaw
utterly new.
We have seen organised revolution engulf nations, swallow hundreds
of millions of people* threaten all free nations, and bgaehiy
challenge America to what it concslvss to be a deadly duel for
the world.
Mow, in this tima of critical ehaiig©,* the .people of America have
summoned the Republican Party to lead titan*
Such a summons, in such an age* is no ©ere conventional electoral
mandate.
It is a ©all to guard arid save our very frttdon*

TREASURY DEPARTMENT
Washington

FOR RELEASE 7 P.M., CST,
Monday, November 23, 1953.

Remarks by Treasury Secretary George M. Humphrey
at a dinner sponsored by the Republican Committee
of Illinois, Palmer House,Chicago, Illinois,
7 p.m. Monday, November 23, 1953.

We are living in a time of critical evolution.
This is no idle figure of speech. Our age bears witness to
some of the most revolutionary changes recorded in history.
We have seen the penetration of the mysteries of nuclear
fission and fusion stagger the imagination of the wisest minds—
and bring a new age whose marks, whose menaces, whose hopes are
beyond the hopes and fears of any man alive today.
We have seen the nature of war and the weapons of war
completely revolutionized.
We have seen the nature of peace and the safeguards of peace
become utterly new.
We have seen organized revolution engulf nations, swallow
hundreds of millions of people, threaten all free nations, and
challenge America to what it conceives to be a deadly duel for the
world.
Now, in this time of critical change, the people of America
have summoned the Republican Party to lead them.
Such a summons, in such an age, is no mere conventional
electoral mandate.
H-323

/ Qi
-, "U mL

- 2 It is a call to guard and save our very freedom.
It is an echo of a similar call made 100 years ago when this
nation of ours was drifting toward civil war, when the institution
of slavery in different form was also the fateful issue, and when
the people's will brought this party of ours to birth. And history
has decreed that we celebrate this centennial of our Party's birth
by accepting, meeting, and mastering another summons to save our
nation and freedom itself.
What I am saying is not mere partisan rhetoric. It is the
cold and somber truth.
What matters—for this Party, for America, for all free
nations—is the honesty, the fortitude, the wisdom and the faith
with which we face this truth.
How do we face this truth?
I think I can most clearly answer that question by speaking
to you of three of the words most commonly used in these daysthree words that effectively summarize the challenges we face.
The first word is peace.
The second is security.
The third is leadership.
I speak of peace first for the simplest of reasons: Its
attainment is the first prayer of all America--and that instantly
makes it the supreme purpose of this Administration and this
Government of the United States.
This single task summons and directs all our energies.
It demands an effort fully as total as total war.
Peace cannot be proclaimed—or enacted—or declared—or voted.
It must be deserved, pursued, and won. And that in turn
demands undaystanding, patience, sacrifi.ce, wisdom, and the kind of
P^yin Airaacicpn courage aa.d steadfastness that alone can halt and
disarm the enemies of freedom.
We know--we hold a number of basic convictions—about this
pursuit of peace.

- 3First: We know that willful, armed aggressors can never be
turned back by weakness. There Is only one thing that the
aggressor's strength respects—greater strength. And that strength
America must and shall have.
Second: We know that such strength, wisely used to serve
peace, does not demand belligerence, loud threats or bombast.
Vie do not have to shout or strut our strength. We need only to
have it. And having it, we must and shall remain ever ready to
resolve, in peaceful discussion, any or all of the grave issues
dividing the world.
Finally: We know that peace—time, lasting peace—not only
involves the affairs among nations but also the affairs within
our own nation.
It demands economic peace—for no nation could long guard its
freedom if all its families lived in need or chronic fear of
economic disaster.
And it demands, in a certain clear sense, political peace—for
however sharply our two great parties may and should debate
numberless issues, both must be pledged to a true and faithful
bipartisanship in all that directly concerns the safety of
America in a world threatened by fateful conflict.
This, then is our broad vision of the ideal of peace, which
rules all our thoughts and actions.
Our pursuit of this Ideal directly involves the prerequisite
of security, national security.
I can define this security plainly. It means: A sturdy
defense supported by a sound economy.
This short generalization covers a wealth of specifics.
Security does not mean armies, navies,, rockets and jets alone.
It also means honest dollars and sound fiscal policies.
Seaurn'ty does not depend solely
the iiyy.;iaar.y of nuclear physicists
depena? y..-.j upon the ingenuity of
venturoaaness of capital, the skill

upon military tacticians or
and weapon designers. It
manufacturers, the
of men along the assembly-line.

- kThe simple truth is that no amount of arms can make a nation
secure whose people are not secure. And that means a healthy and
vigorous economy.
I must be blunt about one point:
The question is frequently asked today: "Which do you favor,
which are you most concerned about—a prosperous economy or an
adequate national defense?"
This is a specious question. It is like asking a man whether
he prefers to keep his head or his heart. For it Is inconceivable
that a strong national defense could be supported by anything but
a healthy national economy.
For this clear reason, our concern for the nation's economy
cannot be measured merely in terms of wages or profits or
dividends. We are not, in the ultimate sense, thinking of stock
quotations and interest rates. We are not weighing decisions in
terms of washing machines or television sets. Our concern for
our economy is nothing less than our concern for the first line
of defense for every freedom that we cherish.
We have served this purpose faithfully and, I believe
effectively. Among the unhappy legacies this Administration
inherited from the past was the arbitrary rule of our economy by
needless, stifling controls. We lifted these controls in our
first few weeks in office—as swiftly as the voices of the critics
were shouting that we would not dare to do so. And the aftermath
of that action, which has seen employment, pay rolls, and
industrial activity rise this year to the highest records ever
known and which has seen the cost of living only one percent over
the greater part of this year, gave the lie to those who had thus
predicted disaster.
There were other crippling burdens inherited from the previous
Administration to which this Administration fell heir In the
fiscal and economic field.
This inheritance included the huge public debt, the
restrictive debt limit, $81 billion in C.O.D. orders, extravagance
m government, the staggering tax burden, and on top of it all,
a war of stalemate in Korea bringing sorrow and grief to many
homes and involving heavy current expenditures for our government.

f r, A

- 5 The public debt is now practically at the limit of $275
billion. In addition to inheriting a debt of enormous size, \ie
also inherited a debt that had been badly managed, nearly
three-quarters of which matures within less than five years or
is redeemable at the holder's option with too large a proportion
in the hands of banks rather than distributed to long-term
investors.
Both of these conditions were deliberately planned by our
predecessors and affect the supply of credit. They are inflationary. They have contributed to cheapening the value of the
dollar which fell from 100 cents in 1939 to 52 cents at the
present time.
Ironically enough, this same policy which produced inflation
and devalued the dollar resulted in our paying so much more for
what vie bought that we now have much more total debt to pay than
would otherwise have been the case.
The debt limit is a financial inheritance which gives us
great concern. A law was passed to require the payment of the
great bulk of corporation taxes in the first half of the
calendar year. This disproportionately larger collection of taxes
was used by the previous Administration to substantially reduce
a budget deficit in one year.
This forced the practice of issuing tax anticipation bills
in the fall when tax collections viere low against expected
receipts the following spring when corporate tax collections were
high, and so automatically forces increased borrowing over at
least a six-month period. This fixed inheritance has made the
present debt limit too restrictive.
When this Administration came into office, it found about
$31 billion of orders placed by the former administration from
one to three years previously for goods to be delivered this year,
next year, and even the year after—all to be paid for when
delivered, without providing any money for the payment.
This 81 billion-dollar legacy without provision for its
payment now creates a most burdensome factor in raising cash to
pay the government's bills. These C.O.D. orders must, of course,
be paid for in addition to all the current expenses of the
government. They increase the oroblem of the debt limit as well
as the difficulty of balancing the budget quickly.

~t C ^J

- 6A habit of extravagance in some government agencies is part
of the burden of our financial inheritance.
Some government agencies perform vital functions and are
well run.
Others have acquired habits of extravagance over the past
twenty years of free and easy spending.
This administration is determined to cut out careless
spending. We are trying to develop more dollar-consciousness on
the part of all government employees, both in and out of uniform.
All our efforts in cutting out extravagance are based on
the simple knowledge that every dollar the government spends comes
not from some mysterious pool of wealth but from the toil and
savings of American citizens who deserve and expect a full
dollar's worth for every dollar taken from them to support their
government.
Our inheritance in the field of taxation is a staggering one.
It is staggering because of its size, due to inherited
obligations and the deficit financing of recent years.
In 17 of the 20 fiscal years from 1933 to 1952, the government
operated with a deficit. Conversely, in only three of those
twenty years did the government live within its income.
It is also staggering because of inequalities and deliberately
restrictive provisions, which, in addition to the very size of
the tax program, inhibit growth and incentive and deter initiative
and development of a vigorous free economy.
^In addition to and overshadowing all else was the grim
conflict in Korea, taking the lives of American boys in a stalemate
that had been dragging endlessly, hopelessly, but far from
bloodlessly, on and on for nearly three long horrible years for
almost every home in this land. The financial burden of Korea
alone piling deficit on deficit, debt on debt, and tax on tax,
built up commitments to continue for years to come.
Shooting and bloodshed in Korea are ended, at least for
the time being, and the tension in the homes throughout America
is lessened. In its place our every effort is at work to fashion
a lasting, sound and equitable peace, and substitute reconstruction
fha*
£ r U £ t i 0 n i n t h a t w a r ~ t o rn land. It is our fervent hope
tnat out of it may come a permanent and constructive settlement.

<-86
- 7These, then, were some of the financial inheritances which
we found on the government' s doorstep when we moved in last
January. These were the bairdens and the hard financial facts
to which we fell heir.
We have reshaped the financial policies of the Federal
Government to serve a single, simple purpose: To give the
American people honest American money, the kind of dollar that
buys a dollar's worth of goods. This has not been done by
oratory nor has it been done by magic. It has only been done by
tireless attention to detailed reduction of expense in every
department of the government.
This action depends upon three things--sound budget policy,
sound Federal Reserve System and sound debt management.
We have, in the first instance, reduced the prospective
deficit for the current fiscal year from more than $11 billion
to less than $4 billion.
We have freed the Federal Reserve System to use its power to
provide a supply of credit that meets natural demand and avoids
those excesses encouraging either inflation or deflation.
We have begun meeting the problem of debt management by
offering the first marketable long-term loan since 19^5; and we
shall continue to extend the maturities of refinancing operations
as relevant conditions permit. These measures are not the concern
simply of government statisticians or titanic banking institutions.
They are vital to every individual and family in our nation.
They mean bringing an end to the withering of the value of the
dollar that, with slow deceit, cheats every family of the
purchasing power of their income and even of clothes and food.
They mean protection for savings — savings for individual
families and savings that mean jobs — jobs in factories, jobs in
mills, jobs in mines and power plants that cannot be built without
such savings.
They mean, by virtue of cheaper costs to state and local
governments, new opportunities to build schools, the highways,
the hospitals which are so vital a part of the strength of our
whole nation.
This administration is reducing taxes. Because we have reduced
expenses and only because vie have made these reductions in spending,
the excess profits tax will expire on December 31 and individual
income taxes will go down an average of 10 percent at the same time.
i*t no one be deceived. No tax reduction whenever planned could be
justified otherwise.

ad/
- 8Additional tax reduction is desired by all and is essential
to the continued growth of our economy.
The accomplishment of sound money will protect the savings,
pensions and incomes of the old, while supplying the tools of
production by stimulating investment creating new and better jobs
but this nation, as the land of opportunity for the young—eager
for work and ambitious to better themselves—cannot long endure
as such under the restrictive taxes which we inherited.
Taxes can be further reduced only as expenditures are further
reduced. And expenditures can be reduced only as consistent
with maintaining a defense adequate to meet the dangers which
confront us.
All these economic measures, finally, mean speeding the
day when successive further reductions in taxes following one
upon another as rapidly as reductions in spending are achieved
can allow the consuming community to quicken its demands upon
the productive machinery of all America. These quickened demands
are the surest stimulants to an American prosperity producing
goods for better living for all the people so that we need never
more have to rely upon defense spending for good times.
This administration believes that the average American can
do more for himself—if he is allowed to do so—than the government
can do for him. Competitive enterprise, free initiative—the
courage to take a chance —the opportunity to better oneself by
effort—constructive work and invention—these have made America
great.
It is the collective effort of 160 million Americans, each
for himself striving to improve his lot, advance his children,
and improve the position of each succeeding generation, that all
taken together has been a power to create more things for more
people, for higher and higher standards of living for all, than
ever has been known in this world before.
Opportunity is the rightful heritage of our children. It
must be protected and guarded and handed on.
I remind you again that all these measures have as a final,
ruling purpose—not merely supplying all our material needs—but
qp
J*. * a n d a 1 1 t h e t l m e t h e ^ a r e essential for the very
security of America. For America's surest defense against any
enemy is the massive power and measureless potential of American
mass production.

- 9In perfecting this defense, several truths are self-evident.
These truths are:
First: A crippled American economy would serve the communist
dream of conquest as surely as any military disaster and would be
an almost fatal blow to the stability and security of all free
nations.
Second: The worth of our military defense program must be
measured not simply by its cost but by its wisdom—for billions
of dollars wastefully or unwisely spent, or production schedules
frozen to produce obsolete weapons, would spell spectacular and
fatal folly.
Third: The kind of economy needed to sustain our vast
essential defense program demands a high level of employment and
industrial activity.
Fourth: Such industrial employment and activity must be
founded upon and can be encouraged and assured only by honest
money, economical government, and sound money policy.
And—as a final self-evident truth of our security—we know
that the economic issues we must meet do'not end at our shores.
Our trade with the world—and the world's trade with us—
are vital to the strength we all need if we are to stay free.
Powerful and productive as America is, we need markets for
our fary.s en-.l ir-dustries abroad. We need, no less urgently,
essential ra>v materials from Asia and Africa and Europe.
If^we, in our vast strength, are so dependent upon others—
we can insWicly aee hew others, less strong, must depend upon
us, up.xy cur trade and markets, for their own economic health and
welfare,
^Aad this truth we have learned and dare never forget: Our
freed-vr. cyyyot survive in a vacuum; we need allies and friends—
ar."ii a a,) ;,iyyy,-e ti fyeelom for them can be a threat to any
induaary, any farm, any home, any family in America.
This is nothing less than the plainest record of history.
I have spoken of peace, and I have spoken of security.

' QQ
- 10 Clearly implicit in all I have said is our concept and
understanding of leadership.
As America is called, to be worthy of the cause of freedom,
so we—this Party and this Government--are called to be worthy of
America.
We must be steadfast.
We can never pretend to solve a problem with a slogan. We
can never sell principle for political expediency. We must
always care less for our performance on television than our
performance in office.
We must be truthful, and true to our ideals.
We have no reason to fear or evade criticism. We must prove
ourselves too honest and too intelligent to be above accepting
criticism or correction.
And we must be confident.
We cannot be feeble or faltering in what we believe. For
we believe ultimately in the boundless courage and industry and
ingenuity of the free American--as a resource unmatched in this
world. We believe in his capacity not only to dream a good
dream—but to wake, to work, and to bring that dream to true life.
Confident, truthful, steadfast: These are the marks of the
leadership we must offer.
Only such leadership can create lasting security for America.
Only such security can make the peace we seek not a prayer
but a fact. Serving so just a cause in such a spirit, now—as
in that time a century ago--we cannot fail, we must succeed.

0O0

(4^y^4

mimUM
wmwim
ic^si**™***
gmj<jsayt mmmtmr 21»,_ lSgjk
ths f a m « w y *M|«s^atiit w i m i i last mmdm

feat

the tcirisrs for #1,500,000, ooo,

or tHercahcutS! of 90-day tfcttray hills to he dated ifetariMT 27$ 19$3, aM to mtum
February IS, 195U, iMsh mvt c^Ttwd « »#v«stw 19, stra Cfs»i st ths federal Bistrn
tanks cm Scsttbir 2J»
the dtttils of this istot art as follows j
fetal a»llsd for - 12*266*957*000
fetal abttptt*
- 1,501,170,000
mmmm

yrlct

(includes 1231,261,000 entered m a
itmoqpatitlit basis and accepted in
full at -fee svsrags prim ah&m hsleur)
- 99*623 iqplvslent vttt of dlstevaft mgpwmku 1**»6$E per amm

- 99*675 *typg*tai2aa& rat® of diatom* 1*300^ psar lamia
- 99.685
«
» •
•
1,5&* f*
*

C69

of ih®

for at the 2sv price

ttwi
B***2»

IrfflgiM. ,

Boston
atv xtffc
fMlaiolpbla
Cleveland

# 27,^2*000
1,576,610,000
26,178*000
1*6,169,000
15**3*000
28,337*000
215,636,000
£*3,237#O00
11,193,00®

Atlanaa
Cfetioit^®
it* isois
MM^apalla
f^ae^e Oily'
Dallas
San Francisco

l%93hk9(m
lA,565,ooo

ran

62,619,000

if,iaf957*ooo

)

Total
$

16,1132*000
9SS,358,000
21*178,000
li6,869,000
15,91*3,000
20,975*000
173,071,000
36*937,000
21*193*000

m92m9om
lil*,565*ooo

_JX*MM22
11^01,170,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, November 2k. 1953*

H-324

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 90-day Treasury bills to be
dated November 27, 1953* and to mature Febraiary 25* 1954, which were
offered on November 19* were opened at the Federal Banks on
November 23.
The details of this issue are as follows:
Total applied for - $2,168,957*000
1,501,170*000 (includes $231*261,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.628 Equivalent rate of discount approx.
1.488$ per annum
Range of accepted competitive bids:
- 99.675 Equivalent rate of discount 1.300$
per annum
Low
- 99.625 Equivalent rate of discount 1.500$
per annum
(69 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 Francisco

Total
Applied for

TOTAL

$
27,432,000
1,578,610,000
26,172,000
46,869,000
15*943*000
22,337*000
215,636,000
43,237*000
11,193*000
54,344,000
44,565,000
$2,168,957,000
82,619,000
0O0

Total
Accepted
26,432,000
988,358,000
11, 172,000
46,869,000
15,943,000
20,875,000
173,071,000
36,937,000
11, 193,000
48, 282,000
44,565,000
$1,501,170,000
77* 473,000

a SmiC

x>yy
imwii.fi saLSASE,
Th9 Treasury apartment ammmmed

toflaythet reports thus tat

received from feietal Heserv® Banks show that amhemwlpttama for tit
current mmhamm

aiimrtmm: mi 1-7/8 percent trammawy lUtma amM. 2-1/2

percent treasury ltttftt amount to aJmmt $9,920,000,000, or 99 percent
of the Bjaturlng tesae oatstaa^ing.
the tmarrnt Beaerve System hoi* ^,990.^0,000, all of which
men exchanged for the l~7/§ percent no tee.

SabseHptieae tmm the

public amounted to ^2,930,000,000, or fS percent of their holding*.
Sixty percent, or $1,750,000,000 of th© subscriptions received fro«
the public were for the 2-1/'2 percent hemM of f f p , mad ^1,180,000,000
were ter the notes.
fhese fibres are nearly, hat mat- Quite, complete,,

details of

oOo

3°
'Via **

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, November 24, 1953.

H-325

The Treasury Department announced today that
reports thus far received from Federal Reserve Banks
show that subscriptions for the current exchange
offering of 1-7/8 percent Treasury Notes and 2-1/2
percent Treasury Bonds amount to about $9,920,000,000,
or 99 percent of the maturing issue outstanding.
The Federal Reserve System held $6,990,000,000,
all of which was exchanged for the l-f/8 percent notes.
Subscriptions from the public amounted to $2,930,000,000,
or 96 percent of their holdings.

Sixty percent, or

$1,750,000,000 of the subscriptions received from
the public were for the 2-1/2 percent bonds of 1958,
and $1,180,000,000 were for the notes.
These figures are nearly, but not quite, complete.
Details of the exchanges by Federal Reserve Districts
will be announced next Monday.

0O0

- 2 -

Before his recent retirement, Mr. Newman served on many rubber
industry and government committees especially during the Second
World War and during the Korean War. He was an industry advisor to
the U. S. State Department at several meetings abroad of the International lubber Study Group and its predecessor the International
Rubber Regulation Group. He served as the Director of the Rubber
Manufacturers Association; a trustee and member of the Operating
Committee of the Automotive Safety Foundation and was a past chairman
of the Inter-industry Highway Safety Committee*
Mr. Newman served in the United States Army from early 1917 to
1919 as a Captain and later Major in the Signal Corps, Aviation
Section, both in the U. S. H^i^and the AEF. In Europe he was

QXr
attached to the staff of General Charles W. Dawes, who was general
purchasing agent of the Army*
Mr* Newman was born in Brooklyn, New York, and received his
degree of BCS from New York University in 1913*
In 1920, Mr. Newman married Marie Louise Kevin of ^T^-Tfof
Ihey have two children, Patricia (Mrs. R. E. Rummage) and James Kevin.

*C5
""l \J "-'

i/7

/ v*
, hi

yAn
Jif

SU^s/sD^iF^a^-^ELEASE

Waabiag4»ay.^teg»,«»Mji

James J. Newman, recently retired Vice President

of B. F. Goodrich Company, has been appointed Consultant to the
Secretary of the Treasury, Secretary Humphrey announced today. He
will serve asassistant to the National Director of the U. S. Savings
Bonds Division, Earl 0. Shreve*
lira Newman, as yn.ce president of the B. F. Goodrich Company,
participated in all phases of his company's activities with particular
responsibility for sales. He will assist Mr. Shreve in establishing

sales policies of the Savings Bonds program and will devote a considerable part of his time to recruiting and maintaining\the program's
volunteer organizations*
In welcoming Mr. Newman to the Savings Bonds program, Mr. Shreve,
former vice-president in charge of sales for the General Electric
•utmtmve-

F-*Mjmi

Company, saidj "Mr. Newman brings an unlimited wealth of sales experien
to the Savings Bonds program. I have known him for many years* as one
of the country's outstanding sales executives. We of the Savings
Bonds program are indeed fortunate to have him on our sales team*"
Mr. Newman joined the B. F. Goodrich Company in 1931 as Assistant
to the President and two years later was appointed Vice President- and
S~ 4^9famr
<dFrom 1940 until his retirement was responsible for all sales of the
company with the exception of those outside subsidiary companies
operated as a complete unit*

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE AM NEWSPAPERS,
Wednesday, November 25, 1953*

H-326

James J. Newman, recently retired Vice President of
B. P. Goodrich Company, has been appointed Consultant to the
Secretary of the Treasury, Secretary Humphrey announced today. He
will serve as assistant to the National Director of the U.S. Savings
Bonds Division, Earl 0. Shreve.
Mr. Newman, as vice president of the B. F. Goodrich Company,
participated in all phases of his company's activities with
particular responsibility for sales. He will assist Mr. Shreve In
establishing sales policies of the Savings Bonds program and will
devote a considerable part of his time to recruiting and maintaining the program's volunteer organizations.
In welcoming Mr. Newman to the Savings Bonds program,
Mr. Shreve, former Vice President in charge of sales for the
General Electric Company, said: "Mr. Newman brings an unlimited
wealth of sales experience to the Savings Ponds program. I have
known him for many years as one of the country's outstanding sales
executives. We of the Savings Bonds program are indeed fortunate
to have him on our sales team."
Mr. Newman joined the B. F. Goodrich Company in 1931 as
Assistant to the President and two years later was appointed
Vice President. From 1940 until his retirement he was responsible
for all sales of the company with the exception of those outside
subsidiary companies operated as a complete unit.
Before his recent retirement, Mr. Newman served on many rubber
industry and government committees, especially during the Second
World War and during the Korean War. He was an industry advisor
to the U.S. State Department at several meetings abroad of the
International Rubber Staidy Group and its predecessor the
International Rubber Regulation Group. He served as the Director
of the Rubber Manufacturers Association; a trustee and member of
the Operating Committee of the Automotive Safety Foundation and
was a past chairman of the Inter-industry Highway Safety Committee.

^07

- 2 Mr. Newman served in the United States Army from early 1917
to 1919 as a Captain and later Major in the Signal Corps, Aviation
Section, both in the U. S. and the AEF. In Europe he was attached
to the staff of General Charles G. Dawes, who was general purchasing agent of the Army.
Mr. Newman was born in Brooklyn, New York, and
received his degree of BCS from New York University in 1913.
In 1920, Mr. Newman married Marie Louise Kevin of Brooklyn.
They have two children, Patricia (Mrs. R, E. Rummage) and
James Kevin.

0O0

- 26 rnada in getting the Federal budget imd®
control as rapidly as defense
expenditures permit, he want on to
consider the problem of fiscal 1955 as
follows :

n \j ^

- 25 dona, expenditures for fiscal.1954 were
bding reduced.enough to justify
eliminating this tax on December 31, an
simultaneously reducing personal income
taxes, by ten per cent.

This much tax <

reduction has therefore been assured by
th i s Adm i n istration.
What of the future?

Obviously I

cannot forecast here either the tax
program or the budget which the Preside
will present to. the Congress in January
I can only state the problem for you.
1 cannot put it more effectively than b
quoting from a speech that Secretary
Humphrey mads within the last two week
After discussing the progress we have
made

uti

- 24 budget situation at their various
expiration dates.

The excess profits

tax- was-scheduled to expire on June. 30
last, the personal income tax was to be
reduced 10% next January, the corporate
h/7LA T* too

rate ^^ft» down from 5 2 ^ to 4 7 * on
April 1, and various excise taxes decli
at that' date. *
Sound fiscal policy forbade tax
reduction until substantial progress
hsd been made-toward balancing income
and expense.

Accordingly, the

Administration, despite its dislike of
the excess profits tax, fought a major
battle to postpone its expiration until
the end of the year,

*s this was being
done

oul

- 23 for 1954 estimated that business in
1954 would maintain a level of activity
almost identical to that of 1953,
Adjustments are taking place, as they.
always will.
some are down.

Some of them are up and
That is the essence of

a free enterprise economy.
(5) The fifth objective stated by
the President was to work toward the
earliest possible reduction of-the-tax
burden.
As f have said, in addition to an
inflationary deficit and an inflationary
debt, our inheritance included tax
reductions built into the tax laws
without ragard to what might be the
budget

502

- 22 And it does not look to us as
though

inflation had been replaced by

deflation.

Look at the basic figures:

A year ago in October employment was
just under 62 million; this October it
wa? just overy 62 million,

* year ago

unemployment was at the very low level
of less than 1.3 million; October
dropped below 1.2 million.

it ha

Industrial

production has dropped a little from th
high point of earlier this year, but it
is still higher than it was a year ago.
I was

interested to see in last Sunday'

newspapers the statement that the
nation's second largest

insurance

company - the P r u d e n t i a l - in its annua
forecas

oU^/

- 21 index published by the Bureau of Labor
Statistics has risen less than one per
cent.

Even that small change

is due

mainly to rises in rents - which were si
recently decontrolled that some adjusts
was inevitable - and to rises in
slow-moving components of the index,, lik
transportation and medical care, which
ta«e a little time to catch up «nth
trends in other fields.

Of course, eve

now, whenever the BLS index rises
one-tenth of a point, you can find
headlinesreading
to new h i g h . "

"cost of living surge

But despite *uch headlin

I think that the inflationary trend has
been

arrested.
And

504

- 20 created our economy would he iost.aiHl1
The goal of this Administration ha
been honest money.

This goal has been

pursued in three major ways: first, by
reducing the Federal deficit to the
point where cash income and outgo are
nearly- in balance; second, by
non-iriflationary polic ies o f debt
management; and, thirdf by affirming th
freedom of the Federal Reserve Bo^rd t§
use it^ stabilizing powers over money
and credit.
What has '?een t^e result?
Inflationary forces ^ave been brought
under control.

$n terms of statistics,

in the past year tKe consumers1 price
i ndex

505

- 19 has been built upon the accumulated
savings of its people.

These savings,

directly and as channeled
corporations,

through

insurance companies and

banks, are what have created our
factories, our machines, our tools.
These savings have built our unrivalled
industrial plant.

That plant has put

into the hands of the American workman
many times the producing power and many!
times the earning power of any workman
anywhere else

in the world.

Our

accumulated savings have done all that;
but

if savings are melted away by

inflation, and the incentive to save is
impaired, the dynamic quality that has
created

506

- 18 In January of this year we were
still experiencing, in every field
except agr * culture, the

inflationary

risa in prices that h^d gone unchecked
since before the war.

The purchasing

power of the dollar fwfcf declined from
one hundred cunts in 1939 to fifty-two
cents in January 1953.

Almost half of

that decline - from seventy-four cents
to fifty-two cants - had come since 194
fthat this had done to bank deposit
«

to insurance policies - in fact, to the
entire savings of the nation - was
Tragic enough.

But to have let it go o

could have been catastrophic.

For the

vast economic strength of the country
. has

wU I

- 17 the expected receipts of the following
spring.

That established pattern of

mortgaging the future every fall
p r o d u c e s a fall peak and a spring valle
in the Government debt.

In addition to

the pressures created by those peaks
and valleys, it is desirable and even
necessary to allow some flexibility and
elbow room in the timing and quantity o
Treasury offerings of b o n d s .

Under all

these circumstances, including the
continuing deficit, the $275 billion de
limit ha* proved too restrictive.
(4) The fourth of the President's
objectives was to check the menace of
inflation.

COM
SM,

Km* KJ

- 16 September . and' December , ; had., been
decreasing, until now about.8Qt-of all
corporate taxes are received in the fir
half of-.the; calendar year and only 20f
in the last half. .The difference .•
between collections m

the two halves

currently in the?range of $13 billion.
Needless- to. sayf the -prior
administration had. never saved up the
excess collections of the January-June
period to cover the July-December
deficiency.

These excess collections

had been-spent to reduce the current
deficit.

Then in the last half of the

year tax anticipation bills and
certificates had been issued, mortgaain
the

- 15 important feature of our inheritance
that I should mention.

The statutory

debt limit is $275 billion.

In January

the debt was $265 billion, the current
year of 1953 was running at a very
substantial deficit, and the planned
deficit for 1954 was about $11 billion.
But that *«as not all.

The effect

of our tax laws was unbalancing more am
more the amount of taxes collected in tl
>

first half and the last half of the yeai
Under the system now in effect, for
several years the oercentage of the
corporation tax which was paid in March
and June of each year had been
increasing, and the percentage paid in
September

V-: X \m*

- 14 demonstrated that in a .free-market
interest rates go down as well as u.p.
At that point, some observers were sure
that the Treasury had under pressure
changed

its-policy. -Neither view is

right. - Vhst has happened has been
steady progress, as suitable
opportunities occur, in reshaping the
debt, in giving it a less inflationary
form, and in returning to the money.
market, under the general influence of
an .independent Fuciur& 1 ':ieserve Sy31em,
that "atmosphere of freedom" of which
the President spoke.
Sufore I leave the subject of the
national d'jbt, there

is one m.ore
jnportant

511

in bank holding* of.; Government
securities. ••This inflationary aspect
of debt management pollcy-has .been
held

i n check .

•This.was substantial pngre^.s.
It ..was made in the middle of a- '•'e
pol 11 i-cal .-debate th? t • cornet i-pes grew
very Hot. --As you vvill remember,
d u n no ,a period- 1-^t sprrng. the '•
compu t i t ron' of '-Sov-ir nment bor r ow i n g
and heavy corporate *tate and' municipal
borrowing drove ' interest rates up.
At that time, Treasury was'accused
of raising the -'rates for the benefit
of t h e bankers.

Then, a lull in the

v;«rnand for money in the lste summer
demonstrated

512

- 12 sold*- long or intermediate
to c o v e r a l l or part of
m en is.

securities

itsre^yire-

Th e 3 a , .s:a u ur 111 e 3..^'e r e

compet iyt i vely wricer to attract an
appropriate share* of tha.savin^s which
wer y :• aeek i ng..i longer term
Furthermore
dance

i nvestment.

, 1 ncreas^d --publ i c conf i -

in that soundne*? of our.money,

and'increased sales effort, have kept
sales of • .savings .Jttends ahead., of ..-,
redemptions.

The net result of the

1 ir-st- ten months

is- that $IQ,: bi llion

of new-cash has ba^n raised to
finance our

i n h ^ iitd c^f -icit; maturing

issues have -keen refunded; ?pd there
tvas b^en little., if any net

increase
in

CI-'}
WriLW

-nbecomes ciue in too short a time.

The

bepartn&nt of the Treasury will
unt^rtsKe -- indeed, has undertaken -at suitable times a program of
extending part of the do^t over longer
periods and grauu^lly placing qroater
amo.nts

in the hands of lonq-term

i nvt;sturs.ff
^hat does the record

show?

txclusive of its weekly offerings of
Treasury bill?*, the Treasury Has ?one
to thy Rsrkut nino tim^s during the
c2' i.enddr year 1S-; f.) 3, to rai "e cash to
cover the current deficit and to pay
off maturing

issues.

On five of these

occasions, it offered and successfully
sold

514

- 10 creates a vulnars hie

ituation.

^oul-r not ^-'?nt to have

You

o refinance

thu mort?c3e on your hoy^a or your
business jv^rv t**'o -T .three ye?r£.
Furthermore, to h-ve the Treasury in
the market for funr^ *vj frequently,
-'ami on suub ? large <scale, kejp? the
market unsettled.

It also mske* more

difficult the

job of the Federal

Reserve Board

in its proper

control

of ihe money supply.
On t K e ^ uu j -a c t of t H a public
debt, the President said

in h M

"tate

of the tin i on mossase :
M

* * * It i ^ clvj-r that too

ardrt a part of the Nation1*, debt .

w X V

^eserve- System to peg the pr roe of
Government bonds in the v.rriarKet.
Th i s'-m-.eant that, broadly speaking,
long-term Government bonds ^rxt not

suf-f i ciently attract-i ve ,to i nd i vi duals.
or corporations with, savings seeking
a lona-term

investment.

This .meant,

in turn, that a too large proportion
of "the debt had;., therefore to be sold
as short-term obligations to the
b.*nka, or other ^hort-term investors.
This, of course, had the effect
of a high inflationary increase in
the supply of money..and credit.

also had two other .bad results.

be forced to refinance from .$60 bi11ioft
to $100 billions of debt evjry yoar
creates

516

- 8 - ..
the-"'20 y e a r s of p e ^ c e .and 'war f r o m
1 9 3 3 t'o'1952.j:. I n / a d d i t i o n to the
$ 2 6 5 'billion a l r e a d y o u t s t a n d i n g , w e
h a d , a s I h a v e ^ ic\ tho p l a n n e d

def i o i t f or ; I95i\v: ahcT the'' $ 8 1 • hi II ioh"" ••
o v e r ha nor f r d m : • t h e" pt s t .
''Apart f r o m its s i z e , t h e p u b l i c
d e b t ' V a s • in'batl s h a p e .

Abtfut'';:one-

t h i r d of t h i s e n t i r e sum --

nearly

$90" bi 11 ion- -- matured''w : i t h i n one year.
N e a r l y three-quart"ers^''ma¥ure : dV^ or
could"'be v; m a t u r e d by t'e h o l d e r , w i t h i n
5" ye a r s.

Tfvi s s i t:u a t i o W had com e;v

a b o u t b e c a u s e u n t i l ' 1951' p r e v i o u s '

afcrtii n i s t r "a t i o n s, t o ' k e e'vp:" t'h e i r": interes
c o s t s l o w , ba"d forced"' t'he"'TederaT' ';

• ": Reserve; r

CI 7

- 7 swift advance of science, and its
impact on military plans, hafs become
s

almost incredible.

Our QQ^ehse

programs are beino continuously and
intensively reviewed to make sure
that they are balanced, flexible',
and adequate, not only for today, but
for tomorrow.
(3) Proper Marfa,qereept of the O^bt
Ten months ago, we started with
a debt of about $265 billion.

Much

of thrt represents, of course, the
cost of financing two world wars.

substantial part of it, however, is
•

•

due to the fact thst the Government
operated at a deficit in 17 out of
the

KM/

- 6 We can spend, we must spend, and we
will spend whatever is necessarv to
defend our selves-

How much this

should be in any given year is "not a
question for the Treasury Department.
On the subject, I can only emphasize
one point: The number of dollars
spent is not necessarily an accurate
measure of how much defense we are
buying.

The amount of real defense,

not the amount of money, is the test.
Buying the wrong things, or even too
much of the right things, increases
defense expenditure but really adds
nothing to effective defense.

This

ha~ always bean true, but it is
becoming even truer these days.

The
swi f t

^-1 M
v* X \u»

- 5 planned for f i seal^»1954 mdre than
$S b i11 ion below the Truman prdposals.
This cut, plus the excess-profits tax
extension, brought do^n that estimated
1954 deficit from over $11 billion to
less than $4 billion.

This is not a

balanced budget ;*hut*? it is within $1
billion of a caih balance.
vast improvement over the

It is a
inflationary

$11 b ill ion def icit we 4 ftced^10 Months
ago.

(2) (bating the Htfgefiftt#frof
our Sefgnsfc.
Th i s Administration is determined
to develop and maintain a balanced and
adequate defense-today,' and as long as
necessary until p e ^ c e h a s

e e n assured
We can

\-< £, U

-•• -4

estimat^d.
over of

We star tecl '*ith a carry-

?f b o u t

S81 b 111 ion of -jrev i ous

appropri at i ons for which we •• h^d to xx
find the cash.

We started with

built-in tax re duct i ons wh i oh -would
automatically ir e d u ce projected
revenues still furt hjr ? i n s u c c e e d i ng
years .

And

o star ted

'••* i t h a h a b i t

of great e x t r a v a g a n ce i n m a n y
Government agencies .
The t ime '>v % S

ery ^hor t in wh i ch

to do an yth i ng abou t th is s i t u a t j o n
f
^
h
e
n
t
h
e
i ^cal
be for u July f.irst,
year beo an . Put. th e Adroi n i strati on

set" to work- snd kep t h^rd at it.

August it had reduc ed expenditures
planned

521

- 3 (5) Work toward the earliest
possible reduction of the
•H
t*?x burden;
(6) Make constructive plans
to encourage the initiative
i= a a?

aif;a'

of our c i ti zens.

Now as to the first of these:

(l) Hmmi

gefiQjtg and, % Hl%m%i

Suriaet.
Look for a moment at "'hat we
- _ . •

y P

•

l ;

inherited from the past.
We started with the Truman budget
for the year 1954, "/hich planned a
deficit of $9.9 billion; but this
shortly rose to over $11 billion
because revenues had "been overest imated:

522

- 2 policy -which would preserve our
economic health and strength and
sup-port aaequate.iv military p ower.
His s ix',goals were :
(1) Reduce the planned deficits
and then balance the budget,
which means among other
things, reducing Federal
•J:«

„,

expenditures to the safe
.i5*y?-•«»•«**'

minimum;
(2) Meet the huge costs of our
, defense; . ..,_

s *tn

(3) Properly handle the burden
of pur inheritance of debt
. . - - . .

. . .

.J,

. ' ' • • ' . . . .

and obiigat ions;
(4) Check the menace of inflation

v_ ZX w

Five days ago, the^Eisenhower
Administration*had been in office just
ten months.

Ten months is not a long

time; but the question can now fairly b
asked:

How far have we come in the

direction of our objectives?

This

question, in the area of the !reasuryfs
respons ibili tyv.. is what. I want to talk
to you about today*
The President stated these
objectives on February 2ain his message
on the State oftthe Union.

He said:

"The qreat economic strenath of our
*•*

*AT

Democracy developed
of freedom."

in an atmosphere

And then he set out t^e

elements of a fiscal and economic
policy

524

<yy^J

H. CHAPWANJ?OSE;
8CFORE
bOWBINED MEETING OF
ROTAkY ANfl. ADVERTISIN6 CLUBS

CLEVELAND, OHIO
November 25, 1953

V— £ _

TREASURY DEPARTMENT
Washington

Address by Assistant Secretary H. Chapman Rose,
before a combined luncheon meeting of Rotary
and Advertising Clubs, Hotel Statler, Cleveland,
Ohio, Wednesday, November 25, 1953.

FOR RELEASE AT 12 NOON,
Wednesday, November 25, 1953*

Five days ago, the Eisenhower Administration had been in
office just ten months. Ten months is not a long time; but the
question can now fairly be asked: How far have we come in the
direction of our objectives? This question, in the area of the
Treasury's responsibility, is what I want to talk to you about
today.
The President stated these objectives on February 2 in his
message on the State of the Union. He said: "The great economic
strength of our Democracy developed in an atmosphere of freedom."
And then he set out the elements of a fiscal and economic policy
which would preserve our economic health and strength and support
adequate military power. His six goals were:
(l) Reduce the planned deficits and then balance the
budget, which means among other things, reducing
Federal expenditures to the safe minimum;
(2) Meet the huge costs of our defense;
(3) Properly handle the burden of our inheritance of
debt and obligations;
(4) Check the menace of inflation;
(5) Work toward the earliest possible reduction of the tax
burden;
(6) Make constructive plans to encourage the initiative
of our citizens.
H-327

I — i—! "*

- 2 Now as to the first of these:
(l) Planned Deficits and a Balanced Budget.
Look for a moment at what we inherited from the past.
We started with the Truman budget for the year 1954, which
planned a deficit of $9.9 billion; bait this shortly rose to over
fia billion because revenues had been over-estimated. We started
with a carry-over of about $31 billion of previous appropriations
for which we had tc find the cash. We started with built-in tax
redactions which would automatically reduce projected revenues
still further in succeeding years. And we started with a habit
of great extravagance in many Government agencies.
The time was very short in which to do anything about this
situation before July first, when the fiscal year began. But the
Administration set to work and kept hard at it. By. August it had
reduced expenditures planned for fiscal 1954 more than $6 billion
below the Truman proposals. This cut, plus the excess-prof its
tax extension, brought down that estimated 1954 deficit frcra over
$11 "billion to less than $4 billion. This is not a balanced
budget; but it is within 4>1 billion of a cash balance. It is a
vast improvement over the inflationary $11 billion deficit we
were faced with 10 months ago.
(2) Meeting the Huge Ccst of our Defense.
This Administration is determined to develop and maintain
a balanced and adequate defense today, and as long as necessary
until peace has been assured. We can spend, we must spend, and
we villi spend whatever is necessary to defend ourselves. How
much this should be in any given year is not a question for the
Treasury Department. On the subject, I can only emphasize one
point: The number of dollars spent is not necessarily an accurate
measure of how much defense we are buying. The amount of real
defense, not the amount of money, is the test. Buying the wrong
things, or even too much of the right things, increases defense
expenditure but really adds nothing to effective defense. This
has always been true, but it is becoming even truer these days.
The swift advance of science, and its impact on military plans,
has become almost incredible. Our defense programs are being
continuously and intensively reviewed to make sure that they are
balanced, flexible, and adequate, not only for today, but for
tomorrow.

_ ^ _

r •*> ~T
- .
<y

(3) Proper Management of the Debt.
Ten months ago, we started with a debt of about $265 billion.
Much of that represents, of course, the cost of financing two
world wars. A substantial part of it, however, is due to the fact
that the Government operated at a deficit in 17 out of the 20
years of peace and war from 1933 to 1952. In addition to the
$265 billion already outstanding, we had, as I have said, the
planned deficit for 1954, and the $8l billion overhang from the
past.
Apart from its size, the public debt was in bad shape. About
one-third of this entire sum--nearly $90 billion--matured within
one year. Nearly three-quarters matured, or could be matured by
the holder, within 5 years. This situation had come about
because until 1951 previous administrations, to keep their interest
costs low, had forced the Federal Reserve System to peg the price
of Government bonds-in the market. This meant that, broadly
speaking, long-term Government bonds were not sufficiently
attractive to individuals or corporations with savings seeking
a long-term investment. This meant, in turn, that a too large
proportion of the debt had therefore to be sold as short-term
obligations to the banks, or other short-term investors.
This, of course, had the effect of a high inflationary
increase in the supply of money and credit. It also had two other
bad results. To be forced to refinance from $60 billion to
$100 billions of debt every year creates a vulnerable situation.
You would not want to have to refinance the mortgage on your house
or your business every two or three years. Furthermore, to have
the Treasury in the market for funds so frequently, and on such a
large scale, keeps the market unsettled. It also makes more
difficult the job of the Federal Reserve Board in its proper
control of the money supply.
On the subject of the public debt, the President said in his
State of the Union message:
"* * * It is clear that too great a part of the Nation's
debt becomes due in too short a time. The Department of the
Treasury will undertake--Indeed, has undertaken—at suitable
times a program of extending part of the debt over longer
periods and gradually placing greater amounts in the hands
of long-term investors."

V, tm. KJ

- 4 What does the record show? Exclusive of its weekly offerings
of Treasury bills, the Treasury has gone to the market nine times
daring the calendar year 1953, to raise cash to cover the current
deficit and to pay off maturing issues. On five of these
occasions, it offered and successfully sold long or intermediate
securities to cover all or part of its requirements. These
securities were competitively priced to attract an appropriate
share of the savings which were seeking longer term investment.
Furthermore, increased public confidence in the soundness of
our money, and increased sales effort, have kept sales of savings
bonds ahead of redemptions. The net result of the first ten
months is that $10 billion of new cash has been raised to finance
our inherited deficit; maturing issues have been refunded, and
there has been little if any net increase in bank holdings of
Government securities. This inflationary aspect of debt management
policy has been held in check.
This was substantial progress. It was made in the middle of
a political debate that sometimes grew very hot. As you will
remember, during a period last spring the competition of
Government borrowing and heavy corporate, state, and municipal
borrowing drove interest rates up. At that time, Treasury was
accused of raising the rates for the benefit of the bankers. Then,
a lull in the demand for money in the late summer demonstrated
that in a free market interest rates go down as well as up. At
that point, some observers were sure that the Treasury had under
pressure changed its policy. Neither view is right. What has
happened has been steady progress, as suitable opportunities occur,
in reshaping the debt, in giving it a less inflationary form, and
in returning to the money market, under the general influence of
an independent Federal Reserve System, that ''atmosphere of
freedom" of which the President spoke.
• Before I leave the subject of the national debt, there is one
more important feature of our inheritance that I should mention.
The statutory debt limit is $275 billion. In January the debt
was $265 billion, the current year of 1953 was running at a very
substantial deficit, and the planned deficit for 1954 was about
$11 billion.
But that was not all. The effect of our tax laws was unbalancing more and more the amount of taxes collected in the
first half and the last half of the year. Under the system now
in effect, for several years the percentage of the corporation
tax which was paid in March and June of each year had been
increasing, and the percentage paid in September and December had
been decreasing, until now about 80$ of all corporate taxes are
received
is
thecurrently
last half.
in the
in first
The
the difference
range
halfof
of$13
the
between
billion.
calendar
collections
year and in
only
the20^
twoin
halves

r-q

- 5Needless to say, the prior administration had never saved up
the excess collections of the January-June period to cover the
July-December deficiency. These excess collections had been
spent to reduce the current deficit. Then in the last half of
the year tax anticipation bills and certificates had been issued,
mortgaging the expected receipts of the following spring. That
established pattern of mortgaging the faiture every fall produces
a fall peak and a spring valley in the Government debt. In
addition to the pressures created by those peaks and valleys, it is
desirable and even necessary to allow some flexibility and elbow
room in the timing and quantity of Treasury offerings of bonds.
Under all these circumstances, including the continuing deficit,
the $275 billion debt limit has proved too restrictive.
(4) The fourth of the President's objectives was to check
the menace of inflation.
In January of this year we were still experiencing, in every
field except agriculture, the inflationary rise in prices that
had gone unchecked since before the war. The purchasing power
of the dollar had declined from one hundred cents in 1939 to
fifty-two cents in January 1953- Almost half of that decline-from seventy-four cents to fifty-two cents--had come since 1946.
What this had done to bank deposits, to insurance policies-In fact, to the entire savings of the nation--was tragic enough.
But to have let it go on could have been catastrophic. For the
vast economic strength of the country has been built upon the
accumulated savings of its people. These savings, directly and
as channeled through corporations, insurance companies and banks,
are what have created our factories, our machines, our tools.
These savings have built our unrivalled industrial plant. That
plant has put into the hands of the American workman many times
the producing power and many times the earning power of any
workman anywhere else in the world. Our accumulated savings have
done all that; but if savings are melted away by inflation, and
the incentive to save is impaired, the dynamic quality that has
created our economy would be lost.
The goal of this Administration has been honest money. This
goal has been pursued in three major ways: first, by reducing
the Federal deficit to the point where cash income and outgo are
nearly in balance; second, by non-inflationary policies of debt
management; and, third, by affirming the freedom of the Federal
Reserve Board to use its stabilizing powers over money and credit.

< ji

\m> \^ \J

- 6What has been the result? Inflationary forces have been
brought under control. In terms of statistics, in the past year
the consumers' price index published by the Bureau of Labor
Statistics has risen less than one percent. Even that small
change is due mainly to rises in rents--which were so recently
decontrolled that some adjustment was inevitable--and to rises in
slow-moving components of the index, like transportation and
medical care, which take a little time to catch up with trends
in other fields. Of course, even now, whenever the BLS index
rises one-tenth of a point, you can find headlines reading
"cost of living surges to new high." But despite such headlines,
I think that the inflationary trend has been arrested.
And .it does not look to us as though inflation had been
replaced by deflation. Look at the basic figures: A year ago
in October employment was just under 62 million; this October
it was just over 62 million. A year ago unemployment was at
the very low level of less than 1.3 million; October it had
dropped below 1.2 million. Industrial production has dropped a
little from the high point of earlier this year, but it Is still
higher than it was a year ago. I was interested to see in last
Sunday's newspapers the statement that the nation's second
largest insurance company--the Prudential--in its annual forecast
for 1954 estimated that business in 1954 would maintain a level
of activity almost identical to that of 1953. Adjustments are
taking place, as they always will. Some of them are up and
some are down. That is the essence of a free enterprise
economy.
(5) The fifth objective stated by the President was to
work toward the earliest possible reduction of the tax
burden.
As I have said, in addition to an inflationary deficit
and an inflationary debt, our inheritance included tax
reductions built into the tax laws without regard to what
might be the budget situation at their various expiration dates.

- 7The excess profits tax was scheduled to expire on June 30
last, the personal income tax was to be reduced 10$ next
January, the corporate rate was to go down from 52% to k7%
on April 1, and various excise taxes were scheduled to declined
at that date.
Sound fiscal policy forbade tax reduction until substantial
progress had been made toward balancing Income and expense.
Accordingly, the Administration, despite its dislike of
the excess profits tax, fought a major battle to postpone its
expiration until the end of the year. As this was being
done, expenditures for fiscal 1954 were being reduced enough to
justify eliminating this tax on December 31, and simultaneously
reducing personal income taxes by ten percent. This much
tax reduction has therefore been assaired by this Administration.
What of the future? Obviously I cannot forecast here
either the tax program or the budget which the President will
present to the Congress in January. I can only state the
problem for you. I cannot put it more effectively than by
quoting from a speech that Secretary Humphrey made within the
last two weeks. After discussing the progress we have made
in getting the Federal budget under control as rapidly as
defense expenditures permit, he went on to consider the problem
of fiscal 1955 as follows:

"But the next year is even core difficult. Ihe best estimates that ?:e now have show that if our sy.endln^ continues aa
the oresent rate it will exceed our estimated income after
termination of the excess profits tax and reduction of individual
taxes effectiv2 December 31st by between $3 and $9 billion.
"There are only four alternatives:
"ye can accept an $3 cr $9 billion deficit in fiscal 1955.
''We can cut expenses.
"We can raise additional taxes, or
"We can have a combination of the three.
nr

2he solution of this dilemma is our nest urgent problem
at this time.

y.e answer is simple to state but terribly hard to accomplish. *."e must first find and then maintain that delicate
talance between security from attack from abroad, with a strong
and vigorous economy here at home. vie must balance the cast of
adequate military security ?:iah the capability of a strong
economy to pay the bill. And this must a_l be recl:oned not on
the basis of a short ana all out effort far a limited period of
time but far the long pull not knowing when or if ever the
critical moment may appear."
(6) The President*s sixth objective yas to encourage the
initiative of cur citizens.
A significant steo in t,riis direction hotlv debated at the
time, is no:: almost forgotten. In January price scab wage controls vrere stall in effect, with all their stifling paraphernalia
Dire predictions were made about the effect of ending them. -hey
were ended by the new Administration on April 30, and the debate
died almost simultaneously with them.
another and even more y-T'-Tit-cr!-1- st^o ^award ^"~e ^nco"ira=re —
ment of Individual initiative" is in the course of intensive
preparation in the tax field. Cur ores era sT-s~em of taxation
discourages initiative, not only because the absolute level of
taxation is too high for the long pull, cur also because of the
fem and impact of certain elements of taxation. Ilanp elements
of cur system are unduly restrictive and unfair, and taaas cost
more by inhibiting growth and initiative than the revenue they
produce is worth in the long run.
For a number of montrs a s^ri^s of ask forces in the
Treasury have been studying literaliv hundreds of suggest!:ns
from every source for the imorcvement of our s"stem of taxation.

KM-

- 9This work has gone on in cooperation with the Ways and Means
Committee and other Committees of the Congress, and a program
is taking shape to reduce wherever practical these inherited
obstacles to incentive and an expanding economy. How far this
program can be put forward now will depend on the budget problem
and°a careful evaluation of its revenue effect; but I think it
is safe to say that at least a start will be made along this
line in a number of important fields.
Those, then, are the six fiscal and economic goals that
the President set for us last February, together with a summary
report of the progress that we have made toward them in ten
months. No one would claim that all these objectives have yet
been fully reached. But no one can deny that the progress has
been substantial. More--much more--can--and will--be done.
Now, having indicated in what may frequently have seemed
like dry and statistical detail the progress we have made on
the economic front, I want to talk more generally about the central problem that we face. It is not new to any of you, but not
for a moment can we afford to forget it.
We are in a world-wide contest with another way of life.
This contest 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.
Now the fact that needs constant reemphasis is this: In
our free society, vie 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
ness
tivity,
that we
andare
the
faith
greater
engaged
of men
fertility
in.
andIwomen,
have
infaith
which
ideas,
that
are
thethe
greater
greater
fruits
resourcefulof
produca free

\MA-

\MA>

- 10 society, will in the short run and the long run outweight and
outlast those viho 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, voluntarily
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 America must not and will not fail to meet.

0O0

roc;
\M-

V~> »-/

- 3 -

but shall bo exempt from all taxation now or hereafter imposed on the princip

Revenue Code, as amended by Section ll£ of the Revenue Act of 1941, the anoun
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, whether on original issue or on subsequent purchas
and the amount actually received either upon sale or redemption at maturity

S3*
*-» v ^ s ^

- 2* T T-VTT »

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

Those submitting tenders will be advised of the acceptance or rejection there

-as"—
other immediately available funds or in a like face amount of Treasury bills
maturing December 3, 195>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 Re-venue Code, or
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

COT
*m> \J |

TREASURY DEPARTMENT
Washington

/ 7

FOR RELEASE, MORNING NEWSPAPERS,

The Treasury Department, by this public notice, invites tenders for
$ 1,500*0003000 j or thereabouts, of 91 _~day Treasury bills, for cash and
in exchange for Treasury bills maturing

December 3, 19$3

3 in the amount of

$ l,500fli82tQ00 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated _ December 3, 1953 > and'will mature March k, 195it 3 when the face
45EX

3^:

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of §1,000, $5*000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the

closing hour, two o'clock p.m., Eastern Standard time, Monday., November 30, 1

Tenders will not be received at the Treasury Department, Washington. Each tend

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 th
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 anr1 from responsible and recognized
dealers in investment securities. Tenders from others must bo accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C
roq
v~ K, \J

RELEASE MORNING NEWSPAPERS, ""•**•""*••'
Thursday* November 26, 1953,

H-328

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 December 3, 1953,
in the amount of $1,500,482,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter "
provided. The bills of this series will be dated December 3, 1953,
and will mature March k9 195^, when the face amount will be payable
without interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m.., Eastern Standard time,
Monday, November 30, 1953 • Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 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 instltaitions 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 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,
an whole or in part, and his action in any such respect shall be
^ono1' Sut)ject t o these reservations, non-competitive tenders for
4>2O0,0OO or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on December 3, 1953, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing December 3, 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,1 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. IJnder 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. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. -Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

*— v_ v->

- 2 All activities handled by the previous specialized
sections will be continued under the rrnaalft of thr
reorganization plan.
and %

In both the Washington headquarters

the field, emphasis will continue to be placed on

payroll savings and other special segments of the bond
program from which effective support has come in the past,.
Also, more of the responsibility for expanding sales will
hereafter be placed on State and county organizations which
are made up chiefly of volunteers.
The Treasury said the streamlining of the organization
was in line with the recommendations of sales and promotion
experts from outside the Treasury Department who have studied
the operation carefully in recent weeks.
The continued success and further expansion of Savings
Bond sales is essential to the best management of the national
debt, and is in the interest of the whole economy and a sound
and stable dollar. Under its new national director,
Earl 0. Shreve, the reorganized Savings Bonds Division is
expected to conduct this volunteer program with even greater
success, the Treasury said.

«*:-u

The Treasury today announced a reorganization of the
United States Savings Bonds Division of the Treasury
Department /to permit the division's staff to operate more
flexibly in the promotion of increased bond sales.1'
In the reorganization, 23 out of 130 positions in the
Washington headquarters will be eliminated, permitting
substantial reductions in the Division's expenses.
A new, more closely knit staff arrangement effected by
the reorganization is designed to pool the efforts of the
division's small group of sales and promotion specialists.
These specialists formerly were divided among a number of
distinct operational sections dispersed among the fields
of agriculture, banking and investments, national organizations,
education, labor, payroll savings, federal payroll savings,
and community, women's and inter-racial activities. Their
work will now be concentrated in two units devoted to sales
and planning, which with the office of the national director,
an advertising and promotion branch and an administration
branch make up the revised organization.

In this way the

experience and talents of the staff members will be avai]&>le
wherever they can be employed to the best advantage of the
program as a whole.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, November 25, 1953*

c
K-329

The Treasury today announced a reorganization of the
United States Savings Bonds Division of the Treasury Department
to permit the division's staff to operate more flexibly in the
promotion of increased bond sales.
In the reorganization, 23 out of 130 positions in the
Washington headquarters will be eliminated, permitting substantial
reductions in the Division's expenses.
A new, more closely knit staff arrangement effected by the
reorganization is designed to pool the efforts of the division's
small group of sales and promotion specialists. These specialists
formerly were diyided among a number of distinct operational
sections dispersed among the fields of agriculture, banking and
investments, national organizations, education, labor, payroll
savings, federal payroll savings, and community, women's and
inter-racial activities. Their work will now be concentrated in
two units devoted to sales and planning, which with the office of
the national director, an advertising and promotion branch and an
administration branch make up the revised organization. In this
way the experience and talents of the staff members will be
available wherever they can be employed to the best advantage of
the program as a whole.
All activities handled by the previous specialized sections
will be continued under the reorganization plan. In both the
Washington headquarters and the field, emphasis will continue to
be placed on payroll savings and other special segments of the bond
program from which effective support has come in the past. Also
more of the responsibility for expanding sales will hereafter be
placed on State and county organizations which are made up chiefly
of volunteers.
The Treasury said the streamlining of the organization was in
line with the recommendations of sales and promotion experts from
outside the Treasury Department who have studied the operation
carefully in recent weeks.
The continued success and further expansion of Savings Bond
sales is essential to the best management of the national debt
and is in the interest of the whole economy and a soamd and
stable dollar. Under its new national
director, Earl 0. Shreve, the
0O0
reorganized Savings Bonds Division is expected to conduct this
volunteer program with even greater success, the Treasury said.

ca-i o

fu#®dagf, pmmmhmr^ l^%9$3*n.n
f%i# tr-miay dmpmtmnt

mmmmed

Urnt mmnim

t&at thm Uwdmtm tm |X»50Qf 000,00%

or tbtrtrixrat*, «r 9l-4®3r tr»«Mrar WXU to hm dated mw@&wr 3* X95S, aM to wtom

Ssroli It, X9fl*, ifctofe nmre mttmtmA m tmmmhmw 26, mre mwamad. mt the Wadmml maa
Bank® on Botreaber 30.
Tim detail® of thla imam arm m i®lUma t
T a t a i w M M f«r - if,mk$ 814,000
Total a#«®|*t®i
- 1,500,219,000

Average price

(includes $213,«329,0OO entered on &
noncompetitive basis and accepted in
fmil at thm mmmgm P&laa ahm® helm)

- 99*598/ Bfgul**3«&t rata at dlaamnt apprm* 1*$&9% par mum

* 99.63S &iui«a*iit vmt» «f < a w « s & appro*. 1,1*32$ per
- 99*592
»
« »
*
»
X,6H$ «

(58

of th» amoust m a far at thm 1m prime

fedmml
Mmrve
Bigtrlet

fatal
tepH«i tm*

total

Womtm
%m J&rk
fbttrtalphl*.
Qlemlmtl

33,807,000
l*fc?l* 70(1*000

t6,52i*,ooo

ElCfimofJd.

Atlanta
ft.. Ionia
ainr^apolis
Xsuasaa 01%"
Julias
S*a fra&elaao
torn

&CC@£>tflfi

32,807*000
996,1*36*000

n9$2k9mo

37,193*000
19*890,000
22,34^,000
207,634,000
17,720*000
20,005,000
59,2U*,000
31,03,000
77*169,000

37,293*000
19,180,000
22,31*9,000
17$9Uh9000
17,720,000
20,005,000
S9,lH4,000
31,50&*QOQ

ta,0Sh*61afO0O

#1,500,219*000

Tft^ftSffi

TREASURY DEPARTMENT
WASHINGTON, D.C.
rAo

RELEASE MORNING NEWSPAPERS,
rpnoflHay. December 1* 1953.

H-330

The Treasury Department announced last evening that the tenders
fnr 41 500 000,000, or thereabouts, of 91-day Treasury bills to be
A»tA December 3, 1953, and to mature March 4, 1954, which were
offered on November 26, were opened at the Federal Reserve Banks on
November 30.
The details of this issue are as follows:
Total applied for - $2,024,814,000
- 1,500,219,000 (includes $213,829,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
99,598/
Equivalent
rate of discount approx.
Average price
1*589$ per annum
Range of accepted competitive bids:
- 99.638 Equivalent rate
1.432$
- 99.592 Equivalent rate
1.6l4$

High
Low

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

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

TOTAL

Total
Accepted.

Total
Applied for
$
33,807,000
1,471,701,000
26,524,000
37,293,000
19,890,000
22,349,000
207,634,000
17,720,000
20,005,000
59,214,000
31,508,000
77,169,000
$2,024,814,000

0O0

32,807,000
996,436,000
11,524,000
37,293,000
19,180,000
22,349,000
175,114,000
17,720,000
20,005,000
59,114,000
31,508,000
77.169,000
$1,500,219,000

'44

IC
(6) Encouraging initiative. Need!
and stifling contro/£
mere lifted almost
as ^eon
as we assumed
. ....
^. .........
, o: 'flee. Theylhad noi
(kept dowpr
"
. of/livingi
-- the) cost
They were curbing v^cal) American
'initiative a: enterprise.
'Lifting bfydontrols was a calculated rusk/ The lpud'/cries
the end Decontrols would mean runaway\inflation pi^a out
>st as quietly as the controls themselvea/were endel
This administration believes that the average American
can do more for himself--if he is allowed to do so—than the
government can do for him. Competitive enterprise, free
initiative—the courage to take a chance—the opportunity to
better oneself by effort—constructive work and invention—these
have made America great.
It is the collective effort of 160 million Americans, each
for himself striving to improve his lot, advance his children,
and improve the position of each succeeding generation, that
all taken together has been a power to create more things for
more people, for higher and higher standards of living for all,
than ever has been known in this world before.
Opportunity is the rightful heritage of our children. It
must be protected and guarded and handed on.
Korea: Shooting and bloodshed in Korea are ended, at least
for the time being, and the tension In the homes throughout
America is lessened. In its place our every effort is at work
to fashion a lasting, sound and equitable peace, and substitute
reconstruction for destruction in that war-torn land. It is our
fervent hope that out of it may come a permanent and constructive
settlement.
Conclusion. This then was our Inheritance of fiscal burdens
accumulated over 20 years.
These are our objectives.
Our accomplishments are real. They are a good start toward
substantial progress, have yet far to go, but are far enough
already to give us pride in the past few months of effort and real
hope for greater things to come.
If only real peace can result in Korea to dissipate anxiety for
our sons it will also help to relieve our financial pressures and
may even be a first step toward accomplishing the real and lasting
peace so craved throughout the world.
May Divine Providence guide us ever toward peace and give us
the strength, the wisdom and the courage to realistically face
facts as we see them and act vigorously with fear or favor for none.
0O0

r
W

4^
T KM?

- IB Bimmt

«at living*

Si£>jr

The ea4tag of controls was a
iaflacio^ dxd not result, as

initiative
risk,

fct

-erit£ca^#;lM«ilgr

C4£

• 1% and the 10 percent cut In
on January 1 are possible only because this administration
mmm able to c u ^ a ^ d i a g ' b y ^ ^ ^ l billions of dollars In
its first few months tm office.
v ^ t

t^ya^iiip that

taxes 1ft jOaaj^^iaV^ w

estly as consistent with maintaining
t the dangers which confront us.
, is be ing revised to
remove inherited obstacles to growth and Incentive,
a Joint undertaking of the Treasury and the proper

com-

a&ttees of the Congress. Ha cannot afford as much reduction
as na would all like irassediately,toutwe earn sat a pattern
of reduction on which a modest start will promptly be made,
with prevision Tmw ad&i%i©ii*! twrthmi* *adneti«ma mm rapidly
as reductions 1 B expenditures—conaistent with security—
Indicate that they are justified.

- 13 -

Our goal Jia* itaen and mlVkC continue to b# ftofesst
stable econooy —
.ty df^sll*
<W»:

tte

for the military sad

(
p^^l^sia^

of the tj^ag^ltytii dollar

dropped frcm ioi> c«ts in 1939 to $2" esnts in 1953*

®tis is

a matter of cold and tragic t*eeo3?d.
Hals has been a eruel h«&Milp upon the Billions of
teerlearos who have saved Booey* either in saving® aeccn&sfcs, in
insurance, or in retirement, fmtmmml
'^^^^^MrmWtW~m^M9Sm^

or pension plana.

sdatbilstretion is determined

halt tmthmr cheapening qt

Ui^dollar.
at least

$mm&mrm&X%$* fhere haw been a change of only mm**hmli of one
cent -^^^^^k^mmL

the purehaalisg poner of the dollar W duM*-

the pest year. This is real proof • ea^wtabliity •
1MBX

l ^ . R - . M ^ educed ay-.tfeiy adMinUtretion.

The .tea;

redugttoit..iihleh will go iaito effect on mQmbmr.j.JI

would not have b#©m possible except, for the reductions, in
uniii.i ini.Oiirii-'.iiii.i'iiii '•ii.uiii.iiiil'iiiinn. \mwm\mmMmmmmlmmatto

«mm*im. Mii*iMm*Ammmmm»im*\miMwmmmam<.m

(iiwmim »

•iiwiiinnnmimi w n . » i .

IMUMI IIIIIJIIIH.

syaoding which .this adBJnlstretlQn ha®, been able to achieve
sitter last. January.
>MUi,n w«m.iui.iWl»miiiiiiili«.u»WW i IIIIIJII.II'"»

imam

Let there he- no ^m^dlerafcaiidins. mbout this simple
fm-et*

The elimination of the excess profits t a x ^ ^

- 12 -

this is

what this adslniati

la trying to do mk

bringing infl^Cionstry pressures to p halt:
halt\ We are using t^e braire
ifullyyaai feeling our nay dojm so that we can halt S&flation
it halted.

IV; thlS/#ay, without smaahing in^o any telephoia

We- sen have axnaad^ttaBest ®oney for the A w ^ c s n people.
In ¥®hmm*y owners of $9 billion BaturtAg'esr£1 fixates were
given th® chance to exchange their holdings for a bond of six years
BSturity instead of the usual one-year certificate.

In April the

Treasury offered a 30-yssr band, the first amrfcetable iong-ters
hm%& since 19^5-

In September a 3§~yesr note was offered, and in

October a new cash offering of 8-year bonds was made

In
x+&

\(UAmm

December, -m

Ttie net result ef our debt stanageigent so far in 1953 has been
to finance a huge inherited deficit wlth^5& mgskf increase in banic
holdings of geveraBe»t securities, and so without any Increase In
inaviatienary pressures due to that cause. Ownership of government
securities hs investors outside the banks, in fact, increased by
$H billion the first nine sooths of this year, while the holdings
of eoastereial and Federal Reserve banks dropped a half billion
dollars *
s W e sho*Fcfur efforts^ to both lersglfien the^debj^/a^--weil
\

B 6ve

Jfc^iWto less" inflationary lhands.

\s
\

54S

- 11 dangerous to the value mt soney and our economy.
"Inj^e ftrat jaaoea, 144 are extending the seturltgr of
the debt by placing longer teiw issues whenever conditions
permit, -tedMtJWIIISIMI ji.ai *, as rapidly as possible we are
waving sore of the debt away froa the banks mmd into the
hands of long-term investors.
He e a n % always seva mm both fronts st the saws tine.
Us snst be careful net to dislocate the sensitive balance
of our economy, but our goal is clear snd we are working

*—'giV*. t*y. tx «- fi^u ^f^y^ti^Jc
~jjfcf¥ #g*lgt l #»"£*- ***» €JT^j»e AHfe mirfc mm have net. *}<jy~*^
ehanged -msm objective. We are seeking sound, honest^noney.
We will continue to seek it in our handling of this too
huge debt, as well as in all other fiscal and economic
polled. fMmAmmmm fcewlag w
the « w « «*T«u». / .
i w t w m - watten
™ n > f*^T*ip4llag the debt- we amst ~~~
J^XKA^m.

caution that we Bust

/CvfcvVa

inalting^ inflationary pressures is *«&*an automobile going down an ley hill. If you

slaw on the brake, yen spin
pole. igir^gg^giiC^WLam:
-4c^O-

X^r-

and swash into a telephone
tea apply
a>*^—

y^til* brake a little, then release it a little^ ws-feel your
way ^ « r ttefeiil, bringing pressure gradually until yen
finally come to a stop.

v_* \_' W

- It •
The solution of this dilemma is a most
ft means finding end Maintaining that delicate
toi ifro® abread
strong mmmsmj here at
saeuritV/i
'
' jjfdbeV'i
~~
balance the eest of wilitory security with
to par

the ability of a strong

bill.

en a ewtol*»to-et*»ls basis, we wast d®
plm mm the besis mf a short and all-out effort for a
Halted period of ttas, lis suat plan our mjtmt% and the
ability to sustain it for th® long pull, for
of yesrs, net iEnewtng wham, if

We wast have a fluid and continually im^lmm^mmm
<J

(

defense, which tlw country «sw long *fferd to aelntain within
the Halts of its
Seconds

S?'US

*&Ss*Sd sWwsffiS

ss^p *Mre»w am

tm spend to dmtmmd ourselves But we tmm

that mm* dtmti

Bust be measured not by its cost but by its wisdom.
^

thirds

this adminietimtlen is doing two things to

our nearly $i75 billion debt less inflationary end less

£5i

oy**~

|grt t|3Sg ^aeare r to

flcit financing.

We are

and suffering which all

brought t# millions ot Americans.

half of its worth in less
ttlon. But, acre

than fifteen years. That
important, history shows i

Has |£9ti£3filfWe^^W^ ' ~~" *"

< e # inflation always is
Is high, tiae

than the seeendHwSi'.
^

r, aft * «:itt * I M S * * * v >

been plmrg^^ for the fiscal year ending five souths
after this administration took office# >f we had gone"
j ^ h the |ll billion deficit that the past administration
~~~t%-4yb

\y^iA^"

Om*x~£-—

tHt=aWESt JJs&YTy*'^*
•y\

/xiAmUAmVr -i^rirv-'. •

administration "^ESbaimeil for the m^LXmtf years ahead, J ^ i
-seawafts^jrfbeiaft* wetild have seslly been in subata*Efctal

Ju*t*^
HSAAW*

552

- •

we taow that indefinite deficit
the- tasraws of inflation aa^cbea^/every faaily in
Mm hmm cut the prospective deficit for toe
from more than $U billion to less than #4
4 I W the fiscal yeary^4«M atart^ July l^is g g H p B L
xjai- even mmm difficult. ^Ma? present estimates show th;
at the present rate it
awtiawtod iucoiae, after termination of the
profits tax and reduction of individual taxes <
M , by sight? mtt nine b&lUaw. dtoUMra*

'Z^XT^^

i ^ / ^ "jf-***^

t^Cpk^ present and future years
__

this goal of budget balance one that cannot to

O^yu^^

Aycj^t^

auu ^JL. Oy&

>^f^'M

\J '••J

- f_
V"i^is s^iaiaistration is
yx.

J>KL. Qs4x****xxy^

swing a broadas in cutting.
^ rity of your country,
j^^u^di^u^

Kc^J^timm

^mmMmm.^^m,, can

IJX4AM

first, M eliminating extravagance, and, second,
i i ,-lx getting «&§er defense jggsp^as^ew fer less money.
•? .cxll^ -^BEahiR^^all-waeB ^extravagance iB^aiiltary operations, *-**- *^H
r T ^ ^ l k i s can and ^ « i ~ t o j £ i * * a w £ » ^ Jlnt this is a
'r
relatively
n ei4ynlasto^es^a¥sgsisa% ., c '-^
ISC^J:

-iyXr,-^-.

both civilias and a i U t a f y , 5 ^ ^ " ^ C ^
u+

5
M~r-

As&>

these, ^Swaf, were seas of toe hard financial facta
to which we fell heir and to which the President addressed
himself in thiT^tote ^of t^e^Bioa 18esflage wham he took
office.
^j1***^*"'

What, thamt~$§IFl£sn this administration*s record

in ton eleven souths it haw been working mm this IWteBPt8*

/' / ,

First: Be are en our way toward getting the budget
of the federal gevsrnaent under control.

It is no easy

Thmpf Sixase major reason why it is extrenely difficult to |gft(thig budget/Intotola-aceyaarapidly as we
X-Q^ ""t-4—«a»x.

would like -€©-. afl yen aH^Jaow, about 70 percent of all
the nosey we spend in govsrnawat is for security — that is, r0^1—
our military, our foreign operations and rifEa- atonic

—^

energy programs, about half of the $dd£fe£@aa, ^S^percentis nade up of fixed charges H & r interest jafc obligations
fixed by tar. This leaves only 12 or 13 percent for «M- L
the rest of govenuaent.

3E5ewein arsn wjsc^ governess t spending ballooned
mvir the past -three years jm&kr is the security ares*
CW<XM.

^c^i^V
If

A^oiyy

great reductions were to be made, they BSuEThave to be
^^vvi4. ^xy

aade in that area because it is such a large percentage
of our total espeai^ture. niji-yifer IMXm&MX^m^ai&m^LMm, ~ -' wa£kwhesryou wta^Ft iwttlBgf

- 5The tax burden.
is a staggering one.

Our inheritance in the field of taxation

It is staggering because of its size, due to inherited
obligations and the deficit financing of recent years.
It is staggering because of inequalities and deliberately
restrictive provisions, which, in addition to the very size of
the tax program, inhibit growth and incentive and deter initiative
and development of a vigorous free economy.
In 17 of the 20 fiscal years from 1933 to 1952, the government
operated with a deficit. Conversely, in only three of those
twenty years did the government live within its income.
So, excessive planned deficits were a part of our inheritance-and tax burden. The fiscal year 1953* in which we entered office,
ended with a deficit of more than $9 billion. There was a planned
deficit budgeted by the previous administration for us of nearly
$10 billion for fiscal 195^> which, it soon became evident, would
be more than $11 billion becaaise the income had been overestimated.
Total appropriations authorized from fiscal year 1950 through
fiscal year 1953; plus those requested in the 195* Truman budget,
provided for spending which would exceed the income in those five
years by nearly $100 billion. At the same time, tax expirations
were being written into law to lower government income. By 19553
when they planned for government spending to reach its peak,
planned tax reductions would have begun to reduce government
income by almost $8 billion annaially. The deficits that would have
been incurred under this program would have been so large that we
might well never have recovered from the burdens thus piled on
us.
Controls. The country was throttled with controls—controls
over prices and wages, with all manner of directives and directions
issued by bureaus and boards from Washington, affecting, restricting
and directing the daily lives and activities of every citizen and
family in the land.
War in Korea, In addition to and overshadowing all else was
the grim conflict in Korea, taking the lives of American boys in
a stalemate that had been dragging endlessly, hopelessly, but not
bloodlessly, on and on for nearly three long horrible years for
almost every home in this land. The financial bairden of Korea
alone piling deficit on deficit, debt on debt, and tax on tax,
built up commitments to continue for years in advance.

O 'mi

- 4 When we asked the Congress last summer to raise the
debt limit, we pointed out that the change would enable the
government to handle its fiscal affairs in more orderly, businesslike fashion, doing what we should do at the time when we should
do it, without technical limitations on planning and carrying out
the best possible fiscal policies. This still holds true, and
we are being hurt by this limitation in the meantime.
The danger of this specific inheritance was foreseen by the
President, who, only two weeks after taking office last January,
in the same State of the Union Message, stated that before the
end of the fiscal year 1954 the total government debt might well
exceed the existing debt limit.
The C.O.D. orders. When this administration came into office,
it found "ab6ut"T>cT billion of orders placed by the former
administration from one to three years previously for goods to be
delivered this year, next year, and even the year after—all to be,
paid for when delivered, without providing money for the payment.
This Sl-billion-dollar legacy withoutA^rovision^for Its
payment now creates a most burdensome factor in raising cash to
pay the government's bills. These CO.P. orders must, of course,
be paid for in addition to all the current expenses of the
government. They increase the problem of the debt limit as well
as the difficulty of balancing the budget quickly.
Extravagance in government. A habit of extravagance in some
government agencies is part of the burden of our financial
inheritance.
Some government agencies perform vital functions and are
well run.
Others have acquired habits of extravagance over the past
twenty years of free and easy spending.
This administration is determined to cut out careless spending.
First, we must continually review every activity of government to
see if it is actually necessary. Second, we must continue to
review necessary activities of government to see that extravagance
and waste are eliminated in the running of indispensable agencies,
both civilian and military. Third, we are trying to develop more
dollar-consciousness on the part of all government employees,
both in and out of uniform.
All our ef

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