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TREASURY DEPARTMENT LIBR ARY

LIBRARY
Ron 1*4 5030

JUN 141972
TREASURY DEPARTMENT

J3
tmadm,

January $9 195k,

Tim fmamwy

Bepartamt exmmmced Imt emmlm

that th« tawierm tor #1,500,000,000,,

or thereabout®, of 91-day freaJmry bills to he dmted Jarauary 7 and t© smtmr® April 8,

19$k, whiah were ottered on TLmmmhar 3D, 1953, wwe opened at the Federal Hmrnrve Banks
• •,

on Jamary 4.

^

The details of this issue me a© follows j
Total applied for - p,607,917,0Q0
fatal aoeepted
- 19$00,348,000

{im-mem #218,931,000 ©stored on a
noncompetitive basis and accepted in
fnil at the average price shoi/vn below)
Airerage pari©®
- 99.668 Equivalent rat® os£ discount apparafc* 1.314$ per anmua
Range off accepted eeepetitlve bides
gftgfc ~ 99.670 B<pival®&t vate oi dlaammt apprac* 1.305$ per anmaa
Lcwr
- 99.666
«
a m
a
a
1.323* »
(58 pareent of til© amnfe bid for at the low price ms aeeepted)
Federal Reserve
Biatfiet

fetal
Applied for

total
Accepted

Boston
|f#sr fork
Philadelphia

$
28,410*000
1,8*7,711*000
29,572,000
37,067,000
14,715,000
27,262,000
3y1t,579,O0O
24,353,000
7,402,000
5o,64t3,ooo
30,574,000
65,129,000

$

11,6071917,000

|i,5oo,348,ooo

GlOT©lat3d

Richmond
Atlanta
Chica.flft)

St. Louis
i&nneapolis
Kansas City
Dallas
Sail Franciseo

XOKaL

9,825*000
9B7*055,00D
12,318,000
28,097,300
13,267,000
16,812,000
322,709,000
19,867,000
6,752,000
22,465,003
26,22k, om
34,957,000

*

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, January 5, 1954.

H-359

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 7 and to mature" April 8, 1954, which v.Tere offered on
December 30, 1953, were opened at the Federal Reserve Banks on
January 4.
The details of this issue are as follows:
Total applied for - $2,607,917,000
Total accepted
- 1,500,348,000 (includes $218,931,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.668 Equivalent rate of discount approx.
1.314$ per annum
Range of accepted competitive bids:
- 99.670 Equivalent rate of discount approx.
Hj-gh
1.305$ per annum
Low
- 99-666 Equivalent rate of discount approx.
1.321$ per annum
(58 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
$
28,410,000
1,897,711,000
29,572,000
37,067,000
14,715,000
27,262,000
394,579,000
24,853,000
7,402,000
50,643,000
30,574,000
$2,607,917,000
65,129,000

Total
Accepted
9,825,000
987,055,000
12,318,000
2o,097,000
13,267,000
16,812,000
322,709,000
19,867,000
6,752,000
22,465,000
26,224,000
$l,500,54o,000
34,957,000

xwm
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 aiaount 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 11$ 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 hills, 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.

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 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 January Ik, 1954 , ,•> ^-n

cash or

xxx
other immediately available funds or in a like face amount of Treasury bills
maturing Jaimary Ik* 1954 Cash and exchange tenders will receive equal

xxxx
treatment. Cash adjustments will be ma.de for differences between the par
value of maturing bills accepted in exchange and the issue price of the newbills.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not hav3 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,

^^nmnnrxT

TREASURY DEPARTMENT
Washington

i/

-?
X>

A

"RELEASE^ FORMING NEWSPAPERS,
Thursday, January 7, 1954
^ . _ . ..... __

.-—

_

The Treasury Department, by this public notice, invites tenders for
$l,50OaOOP,000

xB

, or thereabouts, of

—

91 -day Treasury bills, for cash and

~W"~

in exchange for Treasury bills maturing
January lk ,195k
3 i n t h e amount of
$ l?5QlyMi*fyOQQ 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated

January lit« 195k .> and m i l mature

April 15. 1954

3 w i i e n ^he

faC8

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
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, tyro o'clock p.m.. Eastern Standard time, Monday% January 11, 19$k

xxxx
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS
Thursday, January 7, 1954

H-360

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 January 14, 1954,
in the amount of $1,501,444,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated January 14, 1954,
and will mature April 15, 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, January 11, 1954.
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 ofthe 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

- 2S#
Settlemen
£??Ee£i w e
t for accepted tenders in accordance
witn the bids must be made or completed at the Federal Reserve Bank
on January 14, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 14, 1954.
oasn 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
driginally 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) issaied hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original Issue or on saibsequent 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
oOo
from any Federal Reserve Bank or Branch.

- 2 I know that no system can be completely perfect,
but a prompt and thorough inquiry might develop some
recommendations which would help to prevent any further
similar difficulties.

This hot only for the protection

of the Government but to protect our employees by the
removal of temptation wherever possible.

To accomplish

this will you please be doubly certain that the security
^

procedures being followed at the Bureau of Engraving are
~ (hot only adequate, but that they are being properly
enforced.
I know that you will continue your vigorous
efforts in the location of the money still undiscovered,
as well as in clearing up any other details of this
most unfortunate crime against the Federal government.

G.M. HUMPHREY

FOR RELEASE AM PAPERS,
Thursday, January 7, 1954.

A^/^
/ '

3 ^

The Treasury makes public the following letter sent today
by Treasury Secretary Humphrey to the Chief of the Treasury's
Secret Service:
Dear Chief Baughman:
I wish to congratulate you and the Secret Service
for the prompt and excellent progress which has been
made in the investigation of the theft of $160,000
from the Bureau of Engraving and Printing.
The thoroughness with which the Secret Service
went at the job and produced results in such a relatively
short time are typical of what have always been the
high standards' of the Secret Service.

Please pass my

personal thanks on to all the Secret Service people
who were involved in the case.
In addition to the prompt and effective action
within the Bureau of Engraving itself I have noticed
with great satisfaction the fine spirit of cooperation
which the Secret Service has developed with other law
enforcement agencies.

In this case it brought splendid / ^ ^
*' <--~"-"^ ^

assistance from tJaeJlrginia State Police, the
-

"

""""*-•-

fc<a

Washington, District Police, Mt. Rainier and the
Prince George'& County, Maryland Police, to mention only
a few.

«^$s^2<

TREASURY DEPARTMENT
WASHINGTON, D.C.
FOR RELEASE AM NEWSPAPERS,
Thursday, January 7, 1954.

H-361

The Treasury makes public the following letter sent today byTreasury Secretary Humphrey to the Chief of the Treasury's Secret
Service:
Dear Chief Eaughman:
I wish to congratulate you and the Secret Service
for the prompt and excellent progress which has been made
in the investigation of the theft of $160,000 from the
Bureau of Engraving and Printing.
The thoroughness with which the Secret Service went
at the job and produced results in such a relatively short
time are typical of what have always been the high standards
of the Secret Service. Please pass ray personal thanks on
to all the Secret Service people who were involved in the
case.
In addition to the prompt and effective action within
the Bureau of Engraving itself I have noticed with great
satisfaction the fine spirit of cooperation which the
Secret Service has developed with other law enforcement
agencies. In this case it brought splendid assistance
from the many law enforcement agencies which helped so
effectively.
I know that no system can be completely perfect, but
a prompt and thorough Inquiry might develop some
recommendations which would help to prevent any further similar
difficulties, This would be not only for the protection
of the Government but to protect our employees by the
removal of temptation wherever possible. To accomplish
this will you please be doubly certain not only that the
security procedures being followed at the Bureau of
Engraving are adequate, but that they are being properly
enforced.
I know that you will continue your vigorous efforts
in the location of the money still undiscovered, as well
as in clearing up any other details of this racst unfortunate
crime against the Federal government.
G.M. HUMPHREY

0O0

10
STATUTORY DEBT LIMITATION
AS OF Decenfber 31, 1953

Washington, J a n u a r y

11,

1954

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$ 2 / 5 1000,000 ,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
S 1 9 , 5 1 1 , 4 6 7,00 0
Certificates of indebtedness
Treasury notes
I l l "
Bonds Treasury

2 6 , 3 8 6 , 2 0 9 »000
37.431.895.400

„

77 , 219 , 809,600

Savings (current redemp. value)
Depositary

5 7 » 709» 8 9 0 , 6 5 7
415,538,500

Investment seTie7'~~ZIZLllJ..

1 2 . 9 0 2 , 3 7 3 1000

Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing

M
.
26 , 913 , 954, 000
14,283.044,900

$ 8 3 ,329,571 ,400

l48,247,6ll, 757

41,196,998,900
272 , 774,182 , 057

Matured, interest-ceased

4 3 1 »397i 5 2 1

Bearing no interest:
United States savings stamps
Excess profits tax refund bonds _
Special notes of the United States:
Internat'l Monetary Fund series .
Total

48,345,495
1,*^37 ^ 2 8
1,3^0,000,000

II

1,389,682, 823
274,595,262,401

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

_

.
m r, s
74,544,186
1,094,450

75»^38, 636

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

2 7 4 , 6 7 0 » 901» 0 3 7
J)fcy, U 7 O , yOj

Reconcilement with Statement of the Public Debt ...December... 33-». ...1.9.53
(Daily Statement of the United States Treasury, J?©?®;^her^ J1,_ 1 9 5 3
fi»ai <•)

J.

Outstanding Total gross public debt

275 . l68,120 , 129

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

751 6 3 8 , 6 3 6
2 7 5 » 2 4 3 » 758» 7&5
572,o57« ?2o
274,670,901,037

H-362

J

M

4 l%£

Beer Mr., .AmAwmmmi
W*R «*$ DM Tr«#*iiirff arm hmppf t# k«t#w
#1 >mir wilUsigia**^ ta %«c#ft the ctotrmaastelfi
for Onit*d $t»t«s >&v lags Mmmda for tlM St&fo
#£ Mmrm Oft^iina* fo wfcltk ^*ttim> it fo my
mtemmere to «MS.W %f»$0|»i ya>a.
Frankly, ®mr k*r®%wem **#4» vetmto«r»
ol your £»?$¥«<! iea4#rahi|J &»«* califc>*r II mmr
fotmr# «fej«ctiv«* s w to b& r**ltiMHl«
f lease be aasmr«4 toat mm ahe.ll mmdaavar
at nil times to keep mmr dammed® mm yarn* time
*&i aeew$y to a rntfti&Btina*
Si$t€#r#t3r fmavtm,

(Siineay 13. g.: Humphrey

Ut. W„ II, A******, lr.f C*i~.U*
12*1* i la,ir
l#ff#r»#ti Building
Gteem%%hmmv Uerth Carolina

STANDARD FORM NO. 64

Office .Memorandum
TO

:

FROM :

Mr* !• Randolph Burgess
Earl 0. Shreve SE-

SUBJECT:

UNITED STATES GOVERNMENT
DATE:

December 28, 1953

f
^**"l

There is attached a proposed letter of appointment to
Ha H. Andrews, Jr., whom Mr. Neman has interviewed as our
new Chairman for Savings Bonds in North Carolina. A biography of Mr. Andrews is included in the file.
Attached also is a proposed press release concerning
the appointment in the event this candidate meets with your
approval.

Attachments

GPS/mas

- 2

Mr. Andrews, a chartered life underwriter, is manager of the home
office agency of his co rap any at Greensboro. He joined the compaiy on his
graduation from the University of North Carolina in 1920 and sold more
than a quarter of a million dollars of insurance in his first year, after
helping to organize a University agency. In 1922 he moved to Greensboro
when the home office agency was organized, was appointed assistant manager
of it in 1928 and manager in 1929. After serving as president of the
Greensboro life underwriters' association, as national committeeman, aid
as a member of the executive committee of the general agents and managers
section of the national association, he was elected a national trustee in
1938.
In 19k2 he was elected secretary, in 19ii3 vice president and in 19UU
president of the National Association of Life Underwriters. Meanwhile,
in 19111 when the association offered the services of its members to the
defense bond program, Mr. Andrews served as chairman of a volunteer force
of some 5>5>,000 underwriters who were responsible to a great degree for the
expansion of the Payroll Savings Plan for regular purchase of E bonds to
include thousands of firms and millions of employees across the nation.
Mr. Andrews gave this a major portion of his time, visiting about k0 States
to stimulate the volunteer operation, until he was elected president of the
national association. He had been executive vice-chairman of the North
Carolina Savings Bonds Committee since 19^2 and chairman of the Guilford
County Committee since 19l$.

-ggested Treasury Release

Secretary Humphrey today announced the appointment of ailliam H.

Andrews, Jr., of the Jefferson Standard Life Insurance Co., of Greensboro,
N. C, as State Chairman of the U. S. Savings Bonds Advisory Committee for
North Carolina.
air. Andrews succeeds William H. Neal, senior vice president, Wachovia
Baik and Trust Co., of Winston-Salem, who will henceforth devote his
volunteer services in the Savings Bonds program to his national duties as
chairman of the American Bankers Association Treasury Savings Bonds Committee. Secretary Humphrey, accepting Mr. Neal's resignation as State
Chairman, expressed the warm appreciation of the Treasury for the public
service he has rendered in the Savings Bonds program and gratification at
his having assumed nation-wide responsibility as head of the A.B.A. committee.
Secretary Humphrey wrote the new North Carolina Chairman as follows:
"¥e, at the Treasury, are happy to know of your willingness to
accept the chairmanship... Our program needs volunteers of your
proved leadership and caliber if future objectives are to be
realized."

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE SUNDAY NEWSPAPERS,
January 10, 195*1,

H-363

Secretary Humphrey today announced the appointment
of William H. Andrews, Jr., of the Jefferson Standard
Life Insurance Company, of Greensboro, North Carolina,
as State Chairman of the U. S. Savings Bonds Advisory
Committee for North Carolina.
Mr. Andrews succeeds William H. Neal, senior vice
president, Wachovia Bank and Trust Company, of
Winston-Salem, who will henceforth devote his volunteer
services in the Savings, Bonds program to his national
duties as chairman of the American Bankers Association
Treasury Savings Bonds Committee. Secretary Humphrey,
accepting Mr. Neal's resignation as State Chairman,
expressed the warm appreciation of the Treasury for the
public service he has rendered in the Savings Bonds program
and gratification at his having assumed nation-wide
responsibility as head of the A.B.A. committee.
Secretary Humphrey wrote the new North Carolina
Chairman as follows:
"We, at the Treasury, are happy to know of
your willingness to accept the chairmanship....
Our program needs volunteers of ypur proved
leadership and caliber if future objectives are
to be realized."
Mr. Andrews, a chartered life underwriter, is manager
of the home office agency of his company at Greensboro. He
joined the company on his graduation from the University of
North Carolina in 1920 and sold more than a quarter of a
million dollars of insurance in his first year, after helping
to organize a University agency. In 1922 he moved to
Greensboro when the home office agency was organized, was
appointed assistant manager of it in 1928 and manager in
1929. After serving as president of the Greensboro life
underwriters' association, as national committeeman, and
as a member of the executive committee of the general
agents and managers section of the national association, he
was elected a national trustee in 1938-

- 2 In 1942 he was elected secretary, in 1943 vice
president and in 1944 president of the National Association
of Life Underwriters. Meanwhile, in 1941 when the associati
offered the services of Its members to the defense bond
program, Mr. Andrews served as chairman of a volunteer
force of some 55*000 underwriters who were responsible
to a great degree for the expansion of the Payroll Savings
Plan for regular purchase of E bonds to include thousands
of firms and millions of employees across the nation.
Mr. Andrews gave this a major portion of his time, visiting
about 40 States to stimulate the volunteer operation,
until he was elected president of the national association.
He had been executive vice-chairman of the North Carolina
Savings Bonds Committee since 1942 and chairman of the
Guilford County Committee since 1948.

oOo

MVA-m KjRHBio m%y%ym9
lmmdmy9 Jaaaagy 12. l%k*

j

^

The Lr*«,r.yr-r Btps-t .ant anaounesci last «;venlnj thai the tsidsrs for $1,50(^000

or thereabouts, aT fl-dsjr Iroawary teUJUi to fee dated tfeau&ry lit &n& to : mature
1954, -mhimh w»re o££@r«<a oa a&assrjr 7, vert opened at the Fftdtral

RMWTW

Baal® cm

January 11,
lb* dsfc&Oa at this issw ars as follows:
total appliad for - *f*^*Sf*^ *&* ^^ dtt**^ « ,
total aoespfcesi
- l*500»»8t0OO
(sissies 1^65,796,000 entered on a
aonoompetiUv© basis and aeosptsd la
kver&ge prima - 99ad^W Igaimlsfifc rmmmt disooS approx. iJl^Ppsr aaaasi
gangs of accepted cospatitiw bidss
i* _ 99^697 lqplMJ«afc fat® at ctiteaunt agprau 1«19& par aarmuia
8
fljr .. 92.659
« «
«
«
1.3btf w
*
Low
09 parmmmh at the wmmt

Tedmral
Plst-rlct

team

Boston
lew tjr..
rhj^ie.]^>ia
0l©mUad
ESxteoad
Atlanta
cmsiLgo
St. Louis
iOsmsapolis
Kaaaui Citir
Dallas
San F ^ i a e o
TOTAL ISA*3*000 $1,500,528,000

Ud tmr at mm low prtm was mempted)

fotsX
Aj>plt®«! far

$otal

I
15,633, T O
1,765,25*,J30
35,1^5,000
30,732,000
17,440,000
36,334,000
175,381,000
34,061,000
15,769,000
68,791,000
1*2,498,000
_^79fa^OOO

| 16,133,000
1,3X0,740,000
20,165,00©
30,602,OOQ
2J$,94O,QO0

36,951,000
i5i,4Si»000
33,764,000
15,769,000
65,059,000
34,763,000
68,194,000

TREASURY DEPARTMENT
1Q

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, January 12, 1954

H-364

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 14 and to mature April 15, 1954, which were offered on
January 7, were opened at the Federal Reserve Banks on January 11.
The details of this issue are as follows:
Total applied for - $2,321,110,000
Total accepted
- 1,500,528,000 (includes $265,796,000
entered on a noncompetitive
basis and accepted xi full at
the average price shown
below)
Average price
- 99.662/ Equivalent rate of discount approx.
1.336$ per annum
Range of accepted competitive bids:
High - 99.697 Equivalent rate of discount approx.
1.199$ per annum
Low
- 99.659 Equivalent rate of discount approx.
1.349$ per annum
(39 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 16,633,000 $ 16,133,000
New York
1,765,952,000
Philadelphia
35,165,000
Cleveland
30,732,000
Richmond
17,440,000
Atlanta
38,834,000
Chicago
175,381,000
St. Louis
34,061,000
Minneapolis
15,769,000
Kansas City
68,791,000
Dallas
42,498,000
San Francisco
79,854,000
TOTAL $2,321,111,00b $1,500,528,000
0O0

Accepted
1,010,740,000
20,165,000
30,602,000
16,940,000
36,951,000
151,451,000
33,761,000
15,769,000
65,059,000
34,763,000
68,194,000

- 2 -

Sales of Series E and H totalling $381,432,000 in
December were 14 percent above those of December, 1952 and
exceeded total redemptions of the two series during the
month by $29,000,000.

The total of $352,096,000 redeemed

was up only 4 percent from the preceding December, despite
-hhgztaasy increased/in the aiUDuiat:-a^-^-Suaid already-matured
4n 1-Jia .meanwhile. Redemptions of unmatured E and H Bonds
decreased 6 percent from those of December, 1952.
Series E and H Bonds outstanding at the end of 1953
were at an all-time high of $36,663,000,000 cash value.

oOo

"ytlydyc ^ . ^ ^ , Qa,- ^ •< <• •« t * i
—

— — — — - f t

y/ .— --..

-. ..4

„---..A..i

/ $, /9sT^
,,,,. .MMmXm

The Treasury announced today that sales of Series E
and H savings bonds in the calendar year 1953 totaled
$4,300,000,000 stofctefng a seve^n-year record forA savings
bonds^ sold only to individuals.
Series H bonds, essentially the same as E bonds except
that the interest is paid currently, ha^been on sale
since June 1, 1952.
The 1953 sales total for the two series compared with
$3/s'7yt00,/O,i> h*, calendar 1952, and exceeded E bond sales of
a n y ^ y e a r 3ftprof'-dQn7'l'ia8BBagtt=ft99^ ^ — \ t J

>

The E and H series are the only ones limited to individuals
as buyers.
Redemptions of unmatured Series E and H bonds amounted
to $2,831,000,000 in 1953, compared with $3,139,000,000 in
1952.

Series E and H sales in 1953 exceeded total redemptions

of these series, including both matured E Bonds and unmatured
00 O , POP

I

E and H Bonds, by $211, B&iii-eirr: In 1952, total redemjpplbns
,

060,000*

had exceeded sales by $523 »iilioa.
The amount of matured E Bonds turned in for cash was
$1,32^,000,000 in 1953, compared with $1,6$&,000,000 in
1952.
The total of E Bonds maturing in 1953 was $5,jj}QQyOQOTjQQ01
approximately.

This brought total maturities since May 1, 1951,

when the first E Bonds issued began to come due, to approximately
$10,000,000,000.

Of this total, nearly $7-1/2 billion, or 75

percent, was being retained by the owners at the end of 1953,
under the automatic extension option.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

H-365

The Treasury announced today that sales of Series E and H
savings bonds in the calendar year 1953 totaled $4,368,000,000, to
set a seven-year record for the savings bonds series sold only to
individuals.
Series H bonds, essentially the same as E bonds except that
the interest is paid currently, have been on sale since June 1,
1952.
The 1953 sales total for the two series compared with
$3,575,000,000 for calendar 1952, and exceeded E bond sales of
any calendar year since 1946, when E bond sales were
$4,466,000,000.
The E and H series are the only ones limited to individuals
as buyers.
Redemptions of unmatured Series E and H bonds amounted to
$2,831,000,000 in 1953, compared with $3,139,000,000 in 1952.
Series E and H sales in 1953 exceeded total redemptions of these
series, including both matured E bonds and unmatured E and H
Bonds, by $211,000,000. In 1952, total redemptions had exceeded
sales by $523,000,000.
The amount of matured E Bonds turned in for cash was
$1,326,000,000 in 1953, compared with $962,000,000 in 1952..
The total of E Bonds maturing in 1953 was $5,100,000,000
approximately. This brought total maturities since May 1, 1951,
when the first E Bonds issued began to come due, to approximately
$10,000,000,000. Of this total, nearly $7-1/2 billion, or 75
percent, was being retained by the owners at the end of 1953, under
the automatic extension option.
Sales of Series E and H totaling $381,432,000 in December were
14 percent above those of December, 1952 and exceeded total
redemptions of the two series during the month by $29,000,000. The
total of $352,096,000 redeemed was up only 4 percent from the
preceding December, despite increased maturities. Redemptions of
unmatured E and H Bonds decreased 6 percent from those of
December, 1952.
Series E and H Bonds outstanding at the end of 1953 were at
an all-time high of $36,663,000,000 cash value.
0O0

TREASURY DEPARTMENT
WASHINGTON
IMMEDIATE RELEASE,
Wednesday. January 13, 1954.

H-366

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 December 31, 1953, inclusive, as follows:

:

Commodity

Period and Quantity

.* Imports
. Unit
* as of
of
sQuantity tPecember 31.

s

Whole milk, fresh or sour

Calendar year

Cream

Calendar year 1,500,000 Gallon

3,000,000

Gallon

12,989
1,102

Nov.1,1953Butter,

50,000,000

Pound

33,866,287

Pound

725U44

March 31, 1954
Fish, fresh or frozen, filleted
etc., cod, haddock, hake, pollock, cus&, and rosefish....... Calendar year
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
April 1, 1953

Quota filled

31,918,270
36,344,600

200,000 Head

4,320

120,000 Head

2,563

Cattle, 700 pounds or more each
(other than dairy coWs)

Oct. 1, 1953Dec. 31, 1953

Walnuts

Calendar year 5,000,000 Pound

Quota Fille

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

2,782,I}48

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
12 months from
roasted peanuts, but not inJuly 1, 1953
cluding peanut butter)

1,709,000 Pound

Peanut Oil

12 months from
July 1, 1953
80,000,000 Pound

6,320

1,531,090

23

TREASURY DEPARTMENT
WASHINGTON
IMMEDIATE RELEASE,

H-366

[ednesday, January 13, 1954.

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 December 31, 1953, inclusive, as follows:

Commodity

s

Imports
as of
December 31. 1953

Period and Quantity

*

Whole milk, fresh or sour Calendar year 3,000,000

Gallon

12,989

Cream Calendar year 1,500,000

Gallon

1,102

50,000,000

Pound

72,444

33,866,287

Pound

Nov.1,1953Butter
March 31, 1954
Fish, fresh or frozen, filleted
etc., cod, haddock, hake, pollock, cusk, and rosefish
, Calendar year
White or Irish potatoes:
certified seed *
other
*•.

12 months from 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
Walnuts Calendar year 5,000,000
Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

120,000

Quota filled

31,918,270
36,344,600
4,320

Head

2,563

Pound

Quota Filled

12 months from
Oct. 1, 1953

7,000,000 Pound

2,782,1(48

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
eluding peanut butter)
July 1, 1953

1,709,000 Pound

6,320

Peanut Oil 12 months from
July 1, 1953

80,000,000 Pound

1,531,090

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

H-367

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 December 31, 1953, inclusive, as follows;

Products of the
Philippines

Buttons

:Established Quota; Unit of
:
Quantity
Quantity

850,000

Gross

Imports as of
December 31, 1953

803,371

Cigars 200,000,000

Number

Coconut Oil 448,000,000

Pound

119,433,434

Cordage . 6,000,000

Pound

4,063,482

Rice 1,040,000

Pound

2,500

(Refined .
Sugars
(Unrefined
Tobacco 6,500,000

3,110,938

600,000
1,904,000,000

Jrounu.

Pound

1,827,252,542
2,887,200

25

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

H-367

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 December 31, 1953, inclusive, as follows:

Products of the
Philippines

Buttons . . .

Established Quota; Unit of
Quantity
Quantity

850,000

t Imports as of
s December 31, 1953

Gross

803,371

Cigars .... 200,000,000

Number

3,110,938

Coconut Oil 448,000,000

Pound

119,433,434

Cordage . . . 6,000,000

Pound

4,063,482

Rice . . . . 1,040,000

Pound

2,500
600,000

(Refined ,
1,904,000,000

Sugars

Pound
1,827,252,542

(Unrefined
Tobacco

6,500,000

Pound

2,887,200

««2—
COTTON WASTES
(In pounds)
* i * T«sa than 1-3/16 inches in length, COMBER
POTTON CARD STRIPS made .-from cotton having-* staple ol i j w

MANUFACTURED OR OTHERWISE

Switzerland, Belgium, Germany, and Italy*
"Established"
TOTAL QUOTA

Country of Origin

United Kingdom
Canada . . . o o o •
. 0
France • . .
0 .
o . o o
British India
0 «
Netherlands . o e • •
»
o
o
o
o « *
Switzerland
. •
Belgium . o o o * * *
0 .
Japan
o *
o
o
.
«
•
°
•
China
. o
Egypt
0 .
Cuba . • • • • • • ° a a
o
o
o
o
•
•
•
Germany
o.o
Italy o o o 0
c

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263
5,^82,509

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

Total Imports
Sept. 20, 19 53, to
January 12,_1954_
350,355
239,690
39,476
16,668
1,099

Established
33-1/3* °f
Total Quota,
1,441,152

Imports
1/
Sept, 20, 19 53
to J,.itu^ry l^_1252k
350,355

75,807
22,747
14,796
12,853

16,668
1,099

24,298

25,443
„JL08!

24,298

671,586

1,599,886

392,420

TREASURY DEPARTMENT
Washington

H-368

IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the Pre-sident'-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 $3yto January 12, 1954, inclusive
Country of Origin
Established Quota
Country of Origin Established Quota
Imports
Egypt and the AngloEgyptian Sudan , .
tT"xX\l

o

«

o

»

«

*

o

o

<

British India . . . .

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

—

Honduras ..... .
Paraguay
Colombia . . . . .
i.1 ^»(j[

•

»

o

o

«

o

»

752
0
o

.
•
*

British East Africa . .
Mexico
.......
5,859,580
Netherlands E. Indies.
Brazil
. ,
618,723
Barbados
Union of Soviet
l/0ther British W. Indies
219,428
475,124
Socialist Republics
Nigeria . .
—
5,203
Argentina . . . . . .
2/0ther
British W. Africa
237
J3/0ther French Africa . .
Ecuador .......
9,333
Algeria and Tunisia •
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
vuluct

. s o . . . . .

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

Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 19 51, to December 31. 1953

Cotton 1-1/8" or more, but less than 1-11/16*
Imports Feb. 1. 19 ^ to January 12. 1954 "~

Established Quota (Global) Imports

Established Quota (Global) Imports

70,000,000 1,206,959

45,656,420 45,656,420

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

H-368

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President'-s-Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1953, to January 12, 1954, inclusive
ountry of Origin
Established Quota
Imports
Country of Origin
gypt and the AngloEgyptian Sudan . .
Peru
British India . . . .
China
Mexico
Brazil
Union of Soviet
Socialist Republics
Argentina
Haiti
Ecuador

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237

9,333

5,859,530
618,723
219,428

Honduras
Paraguay
.
Colombia
Iraq
British East Africa . .
Netherlands E. Indies.
Barbados
l/0ther British W. Indies
Nigeria „
2/0ther British W. Africa
2/0ther French Africa . .
Algeria and Tunisia .

Established Quota

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20, 19 53. to December 31. 19^3

Cotton 1-1/8" or more, but less than 1-11/16"
Imports Feb. 1, 1 9 ^ , to January 12. 1954

Established Quota (Global) Imports

Established Quota (Global) Imports

70,000,000 1,206,959

45,656,420 45,656,420

-2-

COTTON WASTES
(In pounds)
0O

™LCA^S™^ m^Sl°m C°tt0n haVing a staple of less than X-3/l6 inches in length, COMBER
!™J^n^J\^£ S L I V E R W A S T E > A N D R 0 V I N G W A S T E > ™ T H E R OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be lined 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.
Established
Total Imports . Established s
Imports
TJ
Country of Origin
TOTAL QUOTA
Sept. 20,^ 19 53,^ to : 33-1/3* of s Sept, 20, 19 53
y.Ayy^^Y
1954
T
" "" 12, """"
Total Quota g to J-nuary 12, 1954
United Kingdom
350,355
4,323,457
1,441,152
350,355
Canada . . . .
239,690
239,690
75,807
France . . . .
227,420
39,476
British India. ,
69,627
16,668
16,668
22,747
Netherlands . ,
68,240
14,796
Switzerland . .
1,099
44,388
1,099
12,853
Belgium . , . .
38,559
Japan • . . . .
341,535
China . 0 . » .
17,322
Egypt . . . . .
24,298
8,135
25,443
24,298
Cuba „ «, , ,
6,544
7,088
Germany • . , ,
76,329
671,586
5,482,509
1,599,886
392,420
ataxy , 0 . .
21a263
l/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

H-369

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the Import quotas established in the
President's proclamation of May 23, 1941, as modified by the president's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1953,
as follows?

Country
of
Origin

Wheat
;
:
. Established t
Imports
1
Quota
taiay* 29, 1953?
.

(Bushels)
Canada
China
Hungary
Hong'Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba^
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

795,000

795,000

34

m~

100
100

46
C-J.W

-»
<_

100
2,000

100
-

1,000

^
mm

mm
*-m

100
mm

mm

Mm.

mm.

1,000

100
100
100
100

%

t Established 5
Imports
s
Quota
i May 29, 1953,
1 to January 12,151
..•, jlajauaxg-1£* 195&,«
(Pounds)
(Pounds ;
(Bushels)

-

100

:

Hheat flour, semolina,
crushed or cracked
wheat, and similar
wheat pi
coducts

rimt

__r

to

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

.
•

L00

"

=5D

"
mm
mm

—
~"
~
""
—
—'
~
^
—

TREASURY DEPARTMENT
Washington

9(1

IMMEDIATE RELEASE,
Wednesday, January 13, 1954.

V-- Km*

H-369
The Bureau of Customs announced to'day preliminary figures showing the
quantities of wheat and wheat flour authorized to be entei^ed, or withdrawn
from warehouse, for consumption under the import quotas established in the
president's proclamation of May 23, 194l, 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 :
Imports
Quota
tMay 29, 1953* to
(Bushels)

795,000
Canada
China
Hungary
Hong'Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina '
2,000
Italy
100
Cuba,
France
1,000
Greece
~
Mexico
100
Panama
~
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000

>JanuarxJL2, 1954-

Established
Quota

(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

34
46

Imports
May 29, 1953,
to January 12,1951!/
(Pounds)
3,815,000

100

4,000,000'
795,080

3,815,100

- 3 mmmtSStt

but shall be axonpt 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 11$ 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, rrhethor on original issue or on subsequent purchase,
and the amount actually received either upon salu 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.

£DCXX

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 thereo

The Secretary of the Treasury expressly reserves the right to accept or rejec
any or all tenders, in whole or in part, and has 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 January 21, 1954 3 ln cash or
other immediately available funds or in a like face amount of Treasury bills
maturing January 21, 1954 Cash and exchange tenders will receive equal
treatment. Ciash 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 soccial treatment, as such, uncler 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,

TREA!
TREASURY
DEPARTMENT
Washington

o"-"") f)

,

FOR RELEASE, MORNING NEWSPAPERS,

Tfcrarsday, Janmary 14, 1954
The Treasury Department, by this public notice, invites tenders for
% 1,500.000^000 , or thereabouts, of OT -day Treasury bills, for cash and
in exchange for Treasury bills maturing January 21. 1954 3

in

the amount of

$ 1^500*749*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 Janaary 21, 1954 ,

anc?

- "will mature April 22, 1954 , when the face

amount will be payable without interest. They VD.11 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, two o'clock p.m., Eastern Standard time, Monday, January 18, 1954

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 companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, January 14, 1954.

H-370

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bill;?., for
cash and in exchange for_Treasury bills maturing January 21, 1954,
in the amount of $1,500,749,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated January 21, 1954,
and will mature April 22, 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,QUO, 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, January 18, 1954.
Tenders will not be received at the
Treasury Department, Washington. Each tender muet be for an even
multiple of $1,000, and In the case of competitive ce&iders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g#, 99.92'-., Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking Institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in Investment securities„ Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, 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-compotitive tenders fur
accepted
$200,000 or
in full
less without
at the average
stated price from
(in three
any ne
decimals)
bidder will
of accepted
be

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 21, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 21, 1954.
Cash and exchange tenders will receive equal treatment. Cash
adjustments wl.il 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 ahe 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 c\i\y 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 Stains, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are
originally sold by tta United States shall be considered to be
Interest. Under Sections l\2 and 117 (a) (l) of the Internal Revenue
Code, as amend-1,! by Section 115 of the Revenue Act of 194l, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and ouch 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 taa return only the difference between the price paid for
such billa, whether on original issue or on saibsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during tne taxable year £or which the return Is made, as
ordinary gain or loss.
Treasury Department Circular No. 4i8, 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.

TREASURY DEPARTMENT
WASHINGTON, D.C

RELEASE MORNING NEWSPAPERS,

y J
Dairing the month of ItefMker, 1953,
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
j

net -^ale-s by the Treasury Department 01

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Friday, January 15, 1954.

H-371

During the month of December, 1953,
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in net
purchases by the Treasury Department of $615,500.

oOo

37

H
19S§» whiah

offered oa

ll

that the tenders for £1,500,000, OOO,

3^st
mi 91-day

M

Mils to be

January 21 and to m&ture April 22,

Hi,

at the Federal

18.
details ^ Vnl^

are aB

toUmai

Total ai^lisd for - $2,553,601,000
Tot^I accapted
- 1,501,661,000

4 * m g s prio©

(include |25?,0$2,000 entered on «
ooncoapeiitivs basis and accepted la
full at the average price &wm below)
* 99*69$ Equivalent rate of diseotsnt appim, 1.206$ per a a «

Itftage af fteo»?t*3 casa0titiTS hidrnt
gigh

- 99*731 T^oivaleot rut© of djjgNmiit aa^oac. l»lall per

- 99,mM
(70 percent at the

a

•

•

•

•

i^aian •

•

bid for at the X0*r price was
folil

fetal

District
Boston
Philadelphia
Cleveland

t»,$0*ooo

#
'|<08*OOO
,960,000

;#|ia,ooo

O,9**0Q0

19,160,000
33,612,000

13,66d,000
Chicago
St, i.cdie
IQaasas City
BsUae
San Francisco

M9$9$9om
m$U99om
57#61&>0O©
56,533,000
49,700,000
fO£4L P,55a,6mfOCK>

223,659,000
32,716,000
UtttfeQOO
42,933,000
43,960,000

imSmhm
$1,501, 661,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS, H-372
Tuesday, January 19, 1952-The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 21 and to mature April 22, 195^, which were offered^on
January 14, were opened at the Federal Reserve Banks on January Id.
The details of this issue are as follows:
Total applied for - $2,558,601,000
Total accepted
- 1,501,661,000

Average price

- 99.695

Range of accepted competitive
High - 99.701 Equivalent rate
Low

- 99.692

(70 percent of the amount bid
Federal Reserve Total Total
District

(includes $259,052,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Equivalent rate of discount approx.
1.203$ per annum
bids:
of discount approx.
1.183$ per annum
Equivalent rate of discount approx.
1.218$ P e ^ annum
for at the low price was accepted)

Applied for

Boston $ 29,523,000 $ 23,5^3,000
New York
1,835,058,000
Philadelphia
3^,960,000
Cleveland
45,712,000
Richmond
13,668,000
Atlanta
32,595,000
Chicago
283,159,000
St. Louis
57,616,000
Minneapolis
12,959,000
Kansas City
56,533,000
Dallas
49,700,000
San Francisco
107,118,000
TOTAL $. 2,558,601,000 $1,501,661,000
0O0

Accepted
928,028,000
19,160,000
33,612,000
13,468,000
28,5^5,000
223,659,000
39,716,000
11,529,000-*
42,983,000
43,960,000
88,458,000

mm&

- 3 -

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 anount of dis-

count at "which Treasury bills arc 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 anount
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 ori<yinal issue or on subsequent purchase,
and tho amount actually received either upon sale or redemption at ,.:aturity
during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 413, 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.

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, f ollowing 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 January 28, 1954 , in cash or
other^EjTiGdiately available funds or in a like face amount of Treasury bills
maturing January 2o, 195^ Cash and exchange tenders Tri.ll 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 hav::: any special treatment, as such, under the Internal Revenue Code, or
lav;s amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, whether Federal or State,

gxkodsiixii

lURY DEPARTMENT
Washington

/ __ a *~) *7
/ —f ~~ J) / J

JSSTRELEASE MORNING NEWSPAPERS,
Thursday,_ January__21^ 19^4
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 January 28% 1954 3 i-n the amount of
^1,499,879,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated January 28, 1954

}

and'will mature April 29, 1954 , -v.hen 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, January 25, 19^4
-g-ge

______

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 companies anr1 from responsible and recognized
dealers in investment securities. Tenders from othors must be accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, January 21, 1954.

H-373

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 January 28, 1954,
in the amount of $1,499,879,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated January 28, 1954,
and will mature April 29, 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, January 25, 1954.
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 ofthe 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
price from
any one
bidder will
be
accepted
in full
at the average
(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 January 28, 1954, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 28, 1954.
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 saibsequent 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
oOo
from any Federal Reserve Bank or Branch.

The budget situation does not permit further reductions in
the government's income at this time. We are therefore
requesting that the proposed cut in corporate&&&& be deferred
for one year and that the excises scheduled for reduction on
PC^yTlAi^jiy

April 1 be continued.

C<rr>~m* >r y<-c^

Any adjustments^in other excise taxes
_yyyytj>y ae^**' <m+c#£y >7 A •«~' •" y

should only be such as to maintain the Wfral y-b&Sal we are now
receiving from this source.
***~^*m*.

is**-u/y<y-'-'~"<<- *-

-j-i f>
^.^,s*'--~ST'S-/''''"'—*"^

/-"^"S.-'As rapidly as further reductions in government expenditures
are in sight we are determined to make further reductions
in taxatioroi^^h^{;>^ore"people can have more money left
r
"£">
'grafter taxes to spend,save or invest in their own way for the
purposes which they think best for themselves Instead of having
the government taxing and spending it for them.

-¥-get new machinery.<&&d ^t will stimulate building, revamping
and modernization of plants and equipment and spur on the
whole machine tool industry to greater production.
Nothing can so add to our national strength and
preparedness as modernization of the whole industrial plant in
America and nothing will make more sure more jobs at which raaaf1^
Acan earn high wages by producing more and better goods.
These revisions, as they help our economy expand, will^^-s.
result in more personal Income

to be spent by taxpayers for

their own account and in their own way and so will provide more
7yyXv>*. —&£&. y-tjy^^m '

money for the_4iurchase of goods and services. . I have mentioned
only a few of the many revision items which contribute to the
growing healthy economy so important to all of us as well as
giving proper help to the millions of individuals involved.
I have said many times in recent months when talking about
this revision program that we can not afford as much reduction
in tax as we would all like immediately, but that we will set
a pattern of reductijon_jajQuj«hicJi^ start can be made. The
President is proposing today much more than a start. He is
proposing a completely new framework for the tax system.
The revision proposal definitely puts us on the road to fairer
tax returns for millions with more incentive for a continually
expanding economy, with all that that means for t&e- future
employment and high standards of living for all Americans.

This start toward relief from the double taxation of
dividends will be helpful to the whole economy by making
equity financing--that is, buying of shares of stock instead
of bonds in an enterprise—more attractive.

This will counter

the trend of recent years toward too much dependence on borrowed
money for working capital and expansion.

Any enterprise which

is too heavily in debt is not able to develop as well or as
quickly as it could if not so burdened.

It is also in a l e s s ^ /

favorable position in more highly competitive times. So, t^pt^*double taxation of dividends proposal* in nnf nnlj nf nprrinl

encourage^greater economic growths and steadier. better
employment.
The proposal for liberalization of the tax treatment of
depreciation also will aid economic growth and be especially
helpful for small business. The proposed revision will allow

.. j^x

more discretion in how investments will be written down.^ At

(filif

present the deductions are usually written off uniformly and
often, especially in the early years, are below actual
depreciation.

This discourages long-range investment on which

the risk cannot be clearly foreseen.

It also makes it more

difficult for financing, particularly for small business. The
proposal to allow more discretion will help ^ f ^niy f-^p nmnlll.
bj] ?i 1 nPsramnnbut the manufacturer guying new machinery and the
storekeeper in expanding his store.

It will help the farmer

FOR RELEASE AT NOON THURSDAY
Statefcent^by Treasury Secretary Humphrey at
at
2: tO TJ .m. ". we/iraesnav. /.netnuary
at 2:10
• '
the p3ei
The proposed revision of the tax system represents
much cooperative work by the House Ways and Means Committee,
its staff and the Treasury Department.

The 25 specific

items listed in the President's message are very important
for the future of all Americans.
The revision accomplishes two principal objectives:
(l) It will make the tax burden fairer for millions
of individual taxpayers by removing most of the more serious
t axmrfl s/h i p<T and tax complications.
(2) It will encourage small business, stimulate
production and create bigger payrolls and more and better
jobs by reducing restraints and by encouraging initiative
and investment.
The revisions, which will benefit millions of individuals,
include those giving better tax treatment for working d o ^ ^ n t ^ ^
for child care expenses, for doctors' bills and for annuities,
as well as simplified procedures for filing returns. The
proposal for partial relief from double taxation of dividends
will be a stimulant to investment for the purchase of new
and improved machinery, plants and equipment to make jobs and
improve earnings.

The exemption from taxation of the first

$50 in 1954 and the first $100 in 1955 and later years will be
a real benefit and encouragement to smaller investors.

^ir^^y^M.

-2,

JkA^L^^N

7

As the Director of the Budget has told you, we have
reduced anticipated government spending by over $12 billion
since just a year ago. The deficit of over $9 billion for the <{OJIT
year w^t-f inched fo^ our predecessors will be less than $4
billion in the current year and less than $3 billion in the
year for which this new budget--our first—is made. That
is a tremendous reduction both in dollars and in percentage

(X
in any business anywhere%/h y^^- **^X^{X~—
"*^L'^
^L/
l}
«** < N ^ •-&*>* ->y: . c^c^Ao^- ***-•***• ^MX/r^<^--p.y( ^
'
Our dollar has been stable in value for months. Our
"^K?^>
debts are increasing only by approximately the amount of the

bonds we put in the .funds. We are not having to increase

S,

short-term borrowing for additional money from the banks, with
all its inflationary implications.
Controls are forgotten. Money and credit are plentiful.
A new foreign policy is crystallizing.

A new defense program

Is here, and Its first economies are included in this budget.
Defense spending is still high but on the way to continual,
moderate, orderly reduction, with more security for less
expense.
The first tax cuts have just become effective within the
last few days, and the recommendations for the complete revision of the tax laws are included in this budget.

Over $5

billion of tax savings are now igamil iljfaa^g^merican consumers
to increase their purchasing power in this year, and more will
be released as rapidly as additional savings in government
expenses are in sight.

TREASURY DEPARTMENT
Washington

FOR RELEASE AT NOON THURSDAY,
January 21, 1954.

H-37^

Statement by Treasury Secretary Humphrey at news conference
at 2:30 p.m., Wednesday, January 20, 195^, on tax aspects
of the President's budget.
As the Director of the Budget has told you, we have reduced
anticipated government spending by over $12 billion since just a
year ago. The deficit of over $9 billion for the last year of
our predecessors will be less than $4 billion in the current year
and less than $3 billion in the year for which this new budget—
our first—is made. That is a tremendous reduction both in dollars
and In percentage in any business anywhere. And in addition to all
this over $5 billion has been cut from the tax bill for the public.
Our dollar has been stable in value for months. Our debts
are increasing only by approximately the amount of the bonds we put in
the trust funds. We are not having to increase short-term
borrowing for-additional money from the banks, with all its
inflationary implications.
Controls are forgotten. Money and credit are plentiful.
A new foreign policy is crystallizing. A new defense program is
here, and its first economies are included in this budget. Defense
spending is still high but on the way to continual, moderate,
orderly reduction, with more security for less expense.
The first tax cuts have just become effective within the
last few days, and the recommendations for the complete revision
of the tax laws are included in this budget. Over $5 billion of
tax; savings are now being left with American consumers to increase
their purchasing power in this year, and more will be released as
rapidly as additional savings in government expenses are in sight.
The proposed revision of the tax system represents much
cooperative work by the House Ways and Means Committee, its staff
and the Treasury Department. The 25 specific items listed in the
President's message are very important for the future of all
Americans.

- 2 The revision accomplishes two principal objectives:
(l) It will make the tax burden fairer for millions of
individual taxpayers by removing most of the more serious tax inequities and tax complications.
(2) It will encourage small business, stimulate production
and create bigger payrolls and more and better jobs by reducing
restraints and by encouraging initiative and investment.
The revisions, which will beJnefit millions of individuals,
include those giving better tax treatment for working children,
for child care expenses, for doctors' bills and for annuities,
as well as simplified procedures.for filing returns. The proposal
for pax,tial relief from double taxation of dividends will be
a stimulant to investment for the purchase of new and improved
machinery, plants and equipment to make jobs and improve earnings.
The exemption from taxation of the first $50 in I954- and the first
$100 in 1955 and later years will be a real benefit and encouragement to smaller investors.
This start toward relief from the double taxation of dividends
will be helpful to the whole economy by making equity financing—
that is, buying of shares of stock instead of bonds in an
enterprise—more attractive. This will counter the trend of recent
years toward too much dependence on borrowed money for working
capital and expansion. Any enterprise which is too heavily in
debt is not able to develop as well or as quickly as it could if
not so burdened. It is also in a less favorable position in more
highly competitive times.
So, the double taxation of dividends
proposal encourages greater economic growth and steadier, better
employment.
The proposal for liberalization of the tax treatment of
depreciation also will aid economic growth and be especially helpful
for small business. The proposed revision will allow more discretion
in how investments will be written down without increasing the
total deductions. At present the deductions are usually written
off uniformly and often, especially in the early years, are below
actual depreciation. This discoairages long-range investment on
which the risk cannot be clearly foreseen. It also makes it more
difficult for financing, particularly for small business. The
proposal to allow more discretion will help the manufacturer in
buying new machinery and the storekeeper in expanding his store.
It will help the farmer get new machinery. It will stimulate
building, revamping and modernization of plants and equipment and
spur on the whole machine tool industry to greater production.

- 3Nothing can so add to our national strength and preparedness
as modernization of the whole industrial plant in America and
nothing will make more sure more jobs at which millions of people
can earn high wages by producing more and better goods.
These revisions, as they help our economy expand, will also
result in more personal income to be spent by taxpayers for
their own account and in their own way and so will provide more
money for the purchase of those better goods and services.
I have mentioned only a few of the many revision items which
contribute to the growing healthy economy so important to all of us
as well as giving proper help to the millions of individuals
involved.
I have said many times in recent months when talking about
this revision program that we can not afford as much reduction
in tax as we would all like immediately, but that we will set a
pattern of reduction on which a start can be made. The President
is proposing today much more than a start. He is proposing a
completely new framework for the tax system. The revision proposal
definitely puts us on the road to fairer tax returns for millions
with more incentive for a continually expanding economy, with all
that that means for future employment and higher standards of living
for all Americans,
The budget situation does not permit further reductions in
the government's income at this time. We are therefore requesting
that the proposed cut in corporation taxes be deferred for one
year and that the excises scheduled for reduction on April 1 be
continued. Any adjustments that may be considered in other excise
taxes should only be such as to maintain the total amount of money
we are now receiving from this source.
However you must always remember that as rapidly as further
reductions in government expenditures are in sight we are
determined to make further reductions in taxation.In that way
more people can have more money left after taxes to spend,
to save or to invest in their own way for the purposes which they
think best for themselves instead of having the government taxing
and spending it for them.

oOo

12
E1LEASE MOHIilHG J0KFAPIR8, /~T"~ "" J /^
Tmmdms. January 26, 1954.
the Traaswy Bspartiiisiit e*Nmn«*4 last m n i a g tiiat the tenders for fl,SO0,O0OfO90,
or thereabouts, at 91-daar Ttmrnwy bills to ha dated timmry 28 and to mature April 29,
19SI*, whleit were offered on January 21, were opened at tha Federal Reserve Banks on
25The details of this issue are as follows:
Total applied fur - $2,1140,313,000
Total accepted
- 1,S00,313,000 (ineltaSaa #217*103,000 entered on a
noncompetitive basis and accepted in full
at the average pries shown below)
Average prioa
- 99*7k$ Bquifslsnt rat© of discount approx. Q*99&$ per annum
Range at accepted competitive bidsi
High - 99.756 Equivalent rata of discount approx. 0.f6ftS per axmvm
%*m
- 99.736
»
»
•
•
n
l.oUrf «
(52 percent of the etaoitnt bid for at the low price was accepted)
Federal Reserve
District

fatal
Applied for

Total
Accepted

Boston
Mem Jerk
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

|
29,276,000
l,59!t,llSfO®0
21,622,000

I
29,276,000
1,023,075,000
13*622,000

Total

m97m9om
i7fUa»ooo

25,270,000
193,908,000
26,176,000
9,6*1,000
l$,325,O0O
26,673,000
66,082,000
12,1^0,313*000

m97Qk9om

17,2la,0OO
2l*,670,00G
11*8,328,000
26,076,000
99$U.,000

kB9k%$9ooo

25*273*000
66,082,000

11*500,313,000

•

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, January 26, 1954.

52

H-375

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated January 28 and to mature April 29, 1954, which were offered on
January 21, were opened at the Federal Reserve Banks on January 25.
The details of this issue are as follows:
$2,140,313,000
1,500,313,000 (includes $217,103,000
entered on a noncompetitive
basis and accepted in full at
the average price shown
Average price
below)
99.748 Equivalent rate of discount approx.
Range of accepted competitive bids: 0.998$ per annum
Total applied for
Total accepted

High

- 99.756 Equivalent rate of discount approx.
0,965$ per annum
Low
- 99.73^ Equivalent rate of discount approx.
1,044$ per annum
(52 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

Total
Applied for
$
29,276,000
1,594,115,000
28,622,000
68,784,000
17,441,000
25,270,000
198,908,000
26,176,000
9,641,000
49,325,000
26,673,000
$2,140,313,000
66,082,000

0O0

Total
Accepted
$
29,276,000
1,023,075,000
13,622,000
68,704,000
17,241,000
24,670,000
148,328,000
26,076,000
9,541,000
48,425,000
25,273,000
66,082,000
$1,500,313,000

out snail bo exempt from all taxation now or hereafter imposed on the principal

or interest thereof by any State, or any of the possessions of the United States
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the

price paid for such bills, arhathcr 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.

mmAOjSmm.

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 has action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on February k 195k 3 ln cash or
_ f a g * - *<*»•—xxx
other immediately available funds or in a like face amount of Treasury bills
maturing February k, 19$k « Cash and exchange tenders will receive equal
tSLt'

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 sv.ch, un/ler 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
<#0R RELEASE, HOMING NEWSPAPERS, IJ ^ 3 7 £>
Thursday, January 28, 19$k
*

~m

I

--——

The Treasury Department, by this public notice, invites tenders for
$ l.»50Q.OOQ.OO© , or thereabouts, of Ql -day Treasury bills, for cash and
in exchange for Treasury bills maturing February It. 195k 3

in

the amount of

& 1«500«621«000 3 "t° ^e issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated February k, 195k 5

anc

^ "will mature May 6, 195k 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
closing hour, two o'clock p.m.. Eastern Standard time, Monday, February 1. 195k

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 Tail 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 companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accooroanied by

RELEASE MORNING NEWSPAPERS,
Thursday, January 28, 1954.

H-376

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 February 4, 1954,
in the amount of $1,500,621,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 4, 1954,
and will mature May 6, 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, February 1, 1954.
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 ofthe 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
(in three
decimals)
of accepted

2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 4, 1954, in cash or other Immediately available funds
or in a like face amount of Treasury bills maturing February 4, 1954.
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 k2 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 oF the Revenue Act of 194l, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include In his
Income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies
of the circular may be obtained
0O0
from any Federal Reserve Bank or Branch.

p" j

j*^y

/-{ - X? 1 /

James H. Hard, Director of Personnel of the Treasury
?nt. im
imrrotiXmmmi na effective
Departmentj
January 31, the Treasury
announced today.
Mr. Hard, who is 67 years of age and a South Carolinian
by birth, has headed the Treasury Office of Personnel since
June 16, 1947, having transferred to this Department from
the Bureau of the Budget.
Prior to entering the service of the Budget Bureau in
1941, Mr. Hard served the State of Alabama and later
Jefferson County, Alabama, in various capacities, including
those of State Comptroller, adviser to the Finance and Tax
Committee of the State Senate, and Director of Personnel for
Jefferson County, in which the City of Birmingham is located.
Mr. Hard was an officer of the 30th Infantry in World
War I.

He and Mrs. Hard live at Cobb Island, Maryland.

B-e/jretary Hu^fipKre^ wpOte Mr/ Hard th
services t>otifreTreasuryf a'std expressin,

^

/

wou]J»s^ngoy
his well-earned retired states.
Joseph A. Jordan, Assistant Director, will become Acting
Director of Personnel.

"V

>!'

] ^

IMMEDIATE RELEASE,
Thursday, January 28, 1954.

H-377

James H. Hard, Director of Personnel of the
Treasury Department, has requested retirement effective
January 31, the Treasury announced today.
Mr. Hard, who is 67 years of age and a
South Carolinian by birth, has headed the Treasury
Office of Personnel since June 16, 1947, having
transferred to this Department from the Bureau of the
Budget.
Prior to entering the service of the Budget Bureau
in 1941, Mr. Hard served the State of Alabama and later
Jefferson County, Alabama, in various capacities, including those of State Comptroller, adviser to the
Finance and Tax Committee of the State Senate, and
Director of Personnel for Jefferson County, in which
the City of Birmingham is located.
Mr. Hard was an officer of the 30th Infantry in
World War I.

He and Mrs. Hard live at Cobb Island,

Maryland.
Joseph A. Jordan, Assistant Director, will become
Acting Director of Personnel.

0O0

IMMEDIATE RELEASE
Wednesday,, January 27. 195k

j_y/

The- TreasuryHEtopartetent arttiQU&ced-tada^that the Subscription books will
open on Monday, February 1, for the exchange of the 2-1/4 percent certificates
of indebtedness which will mature February 15, 1954, in the amount of
18,114,165,000, and the 1-3/8 percent treasury notes which will mature March
15, 1954, in the amount of $4,675,067,000,
Holders of the maturing securities will be offered the choice of one-year
1-5/8 percent certificates of indebtedness and 7-year and 9-month 2-1/2 percent
Treasury bonds in exchange for their present holdings.
En addition, holders of the 2 percent bonds of 1952-54 whieh reach final
maturity on June 15, 1954, in the amount of $5,825,463,500, and holders of the
2-1/4 percent bonds of 1952-55 and the 2-1/4 percent bonds of 1954-56 which will
be called for redemption on June 15, 1954, in the amounts of $1,500,780,800 and
$680,691,850, respectively, will also be given an opportunity to exchange their
holdings at this time for the new 2-1/2 percent Treasury bonds, with interest
adjustments as of February 15, 1954*
The new certificates will carry an interest coupon payable with the principal at maturity, and any premium paid on the acquisition of these certificates in the market may be amortized in accordance with Sec. 125 of the Internal
Revenue Code.
While the amount of the public debt outstanding in relation to the statutory limitation of $275 billion precludes the sale of a longer term bond for
cash at this time, consideration is being given to such an offering at a later
date.
The Treasury rVInn tinnnrmtBtiHtliiili If'will issue calls on February 15 for
the redemption on June 15, 1954, of the 2-1/4 percent bonds of 1952-55 and the
2-1/4 percent bonds of 1954-56. The option to call the 2 percent bonds of
1951-55 and the 2 percent bonds of 1952-54 (due December 15, 1954) for redemption
on June 15, 1954, will not be exercised.
The subscription books will close at the close of business Wednesday,
February 3, 1954. Any subscriptions addressed to a Federal Reserve bank or
branch or to the Treasury Department and placed in the mail before midnight
February 3 will be considered as timely*

TREASURY DEPARTMENT
IMMEDIATE RELEASE,
Wednesday, January 27, 1954.

WASHINGTON, D.C
H-378

Treasury Secretary Humphrey today made the following
statement:
Subscription books will open on Monday, February 1, for the
exchange of the 2-1/4 percent certificates of indebtedness which
will mature February 15, 1954, in the amount of $8,114,165,000,
and the 1-3/8 percent Treasury notes which will mature March 15,
1954, in the amount of $4,675,067,000.
Holders of the maturing securities will be offered the choice
of one-year 1-5/8 percent certificates of indebtedness and 7-year
and 9-month 2-1/2 percent Treasury bonds in exchange for their
present holdings.
In addition, holders of the 2 percent bonds of 1952-54 which
reach final maturity on June 15, 1954, In the amount of
$5,825,463,500, and holders of the 2-1/4 percent bonds of 1952-55
and the 2-1/4 percent bonds of 1954-56 which will be called for
redemption on June 15, 1954, in the amounts of $1,500,780,800 and
$680,691,850, respectively, will also be given an opportunity to
exchange their holdings at this time for the new 2-1/2 percent
Treasury bonds, with interest adjustments as of February 15, 1954.
The new certificates will carry an interest coupon payable
with the principal at maturity, and any premium paid on the
acquisition of these certificates in the market may be amortized
in accordance with Sec. 125 of the Internal Revenue Code.
While the amount of the public debt outstanding in relation to
the statutory limitation of $275 billion precludes the sale of a
longer term bond for cash at this time, consideration is being
given to such an offering at a later date.
The Treasury will issue calls on February 15 for the redemption
on June 15, 1954, of the 2-1/4 percent bonds of 1952-55 and the
2-1/4 percent bonds of 1954-56. The option to call the 2 percent
bonds of 1951-55 and the 2 percent bonds of 1952-54 (due
December 15, 1954) for redemption on June 15, 1954, will not be
exercised.
The subscription books will close at the close of business
Wednesday, February 3, 1954. Any subscriptions addressed
to a Federal Reserve bank or branch or to the Treasury Department
and placed in the mail before midnight February 3 will be
considered as timely.

f-t-Slf

mm mmtmmhmma

bilie $# be dated M t m n q r U mxi tt agfew* i^ay 6,

mi gl*fcqr

I95>k, ^ahimh mm

mftmmd m

tt» -ere ®pti§i at tho Federal

1*
Thm details o£ this Issu© ar® as follows:
fttal applied for - la, t96,lSf*CK50
M l mmmmphad - ' l ^ l i M *

(include t t t M I > » M l « * • " * «* •

Averts price

f m H at the average prica sh»n
rats af dig&omftt <^jyrox. 1*0311 UMP

~ 99*131$

img® mi mmmmt^d mmgmtxtdm
mM

- 99*77$ . S f i u M wmtm mi dim®

- »«m
(Ml ]«*•«* if ift#

«MHM§

•

•

•

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tM.
AHjji^^^yMi

I

$

festal

ifmmaWml 'mmmm
ffiSSff

•

» S « ^ 5 «rtK«J|IMM WlilJIiIMKWIUt*

?aoaton

m$m§m

anrtafe

13,623.000

,rhila^lprala

7#UW»0
3&*7fll»O00
Ot»J9fir000
M*3??*a©@
?,?§?*»
lf#W2»CTO

Attiafta'
Ct!llttft$&
St* & M S «
^SlJgtlBi^NSkll0

mmm

16,7^,000

cilgr

Dallas

safti&w&i**

xotut.

$$$m*m®
FjWkOSS.
!M9M*t»ooo

l^S
JMfeo*

lf%W*0®O
3*»9T7»<m
7#7lf»O0O
ItnOgH^ooo

SKS'SS
|1,>00,268,0CK)

TREASURY DEPARTMENT
WASHINGTON, D.C.

62
RELEASE MORNING NEWSPAPERS,
Tuesday, February 2, 1954.

H-379

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated Febraiary 4 and to mature May 6, 1954, which were offered on
January 28, were opened at the Federal Reserve Banks on February 1,
The details of this issue are as follows:
Total applied for - $2,296,152,000
Total accepted
- 1,500,268,000 (includes $181,373,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
- 99.739/ Equivalent rate of discount approx.
Range of accepted competitive bids; 1.031$ per annum
High

- 99.775 Equivalent rate of discount approx.
0.o90$ per annum
Low
- 99.734 Equivalent rate of discount approx.
1.052$ per annum
(44 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

$
18,648,000
1,753,115,000
33,623,000
46,173,000
7,439,000
31,764,000
232,339,000
16,377,000
7,787,000
39,732,000
33,669,000
70,486.000
$2,296,152,000
0O0

Total
Accepted
$
16,743,000
1,036,423,000
18,623,000
41,173,000
7,239,000
31,652,000
190,179,000
16,377,000
7,787,000
39,032,000
29,109,000
$1,500,263,000
65,926,000

- 7 fraudurerxt-usjs ofjgatSlTis^Bd cojjier'fnWieir
a^ait ing£*rial.
In a roundup of Secret Service activity, Chief Baughman reported that
his agency received a total of 40,221 cases of all kinds for investigation,
and that his agents completed 37,154 cases and arrested a total of 3,019
persons for all offenses. Of the cases -which were prosecuted, 9&«6 percent
resulted in convictions. Prison sentences aggregated 2,779 years, with an
additional 2,814 years suspended or probated.
As of December 31, the Secret Service still had 12,805 cases on hand
awaiting investigation, Chief Baughman said.

- 6*

*i*

Chief Baughman ^faiauwdata stressrthe need for storekeepers to use
caution in cashing Government checks for strangers. "The carelessness with
which some business men cash checks is sometimes incredible," he said. "A
few weeks ago a woman in Chicago received a formal Notice of Discontinuance
7
of Allotment Pay. This is a form printed on cardboard, perforated like a
Government check. Its purpose was merely to notify the addressee that she
would no longer receive allotment checks in the amount of $137.10. The woman,
believing the notice to be a check, took it to the proprietor of a Chicago
tavern, who had her endorse it and then paid her $137.10 in cash. When the
tavern owner took the check to his bank to deposit, he was surprised to find
it was worthless."
Another obstacle in Secret Service forgery investigations is lack of
observation by victims, Chief Baughman pointed out. His agents in Little
Rock, Arkansas, recently i*iugg aligned six forged checks, all cashed by a

A
short man wearing a bright blue jockey cap. Agents finally arrested Henry
Johnson, 22, wearing the blue cap. "Johnson was well-known to the six persons
from whom he had stolen the checks while he visited in their homes, but none

of the six mentioned him when agents asked if they knew a man of his descripti
Johnson was sentenced to serve two years.
Chief Baughman 3S&> reported the arrest^ of four men at Peoria, Illinois,
for grinding one-cent coins to the size of dimes^/ and using them to operate

merchandise-vending machines in a factory. Tho'mon admit Led LliaL Lha gjiawLt

- 5 Neumann the balance of $559.96, and discovered the crime only after they were
unable to deliver the set to the fictitious address he gave.
Neumann was trapped by coincidence. He stole a commercial check drawn
by Swift and Company, Chicago, and made the mistake of asking Swift and Company to cash the check. The cashier recognized the payee!s name as that of
a girl in her own office. She asked the girl if the man at the window was
her father. The girl said he was a stranger. Plant police were summoned,
questioned Neumann, and found on his person a Government check for $1.25 and
two other commercial checks. They called the Secret Service, who learned
that since Neumann had been released from Leavenworth penitentiary on July 30,
1952, he had stolen and forged 125 Government checks and about 900 commercial
checks.
Neumann pleaded guilty in Chicago and was sentenced to three years.
A convicted forger in California, formerly in the Navy, served his

sentence and then thanked the Secret Service for setting him straight. "Althoug
it sounds rather silly," he wrote, "I enjoyed watching the efficiency with
which your department operates. However, I didn't enjoy it enough to try the
same silly trick a second time. I have learned my lesson and from now on
people are going to see a sailor on the old 'straight and narrow.' I realize
that a simple case like mine isn't what you would call a feather in your cap,
but to me you've done more than catch an offender — you've proven how futile
it is for anyone to try to work outside the law. It just can't be done.
Thank you very much for the first step in getting me set straight." With his
letter was a postal money order payable to the Government for the amount of
the check he stole.

- 4 had gone on to Denver. In Denver, other agents quickly located Snead and the
women in a motor court and took them into custody.
Snead1s fingertips were scarred and agents learned that he had performed
a surgical operation on his hands to hide the fact that he had a previous
criminal record. He had transposed the top cushions of skin from the right to
the left fingertips, and vice versa. Snead also revealed that he had divorced

his first wife with her approval, in order that he might marry his second wife
who had inherited considerable money. After the second marriage he introduced
his first wife as his sister and invited her on the honeymoon. Later he told
the second wife the whole story, and the three were on friendly terms at the
time they were arrested.
Snead was sentenced to five years and the two women were each sentenced
to probation for four years.
Forgeries of Government checks continued to plague the Secret Service,
Chief Baughman said. There were 31,144 forged checks received for investigation, and agents completed 27,153 cases involving checks worth $2,187,367*65*
The Secret Service arrested 2,528 persons for forging and fraudulently negotiating Treasury checks.
In Chicago, Illinois, William Fred Neumann, 64, boasted that when not in
prison he could make a tax-free income of $20,000 a year by stealing checks
of all kinds. In one instance he stole a Government check worth $967.46,
forged the endorsement, and went to a Sears-Roebuck store where he spent
considerable time inspecting and pricing television sets. He was especially
interested in a console costing $407.50, but he- left without buying it. He
returned the next day and agreed to buy the set for cash if the store would
guarantee immediate delivery. The store promptly cashed the check, gave

- 3The swindlers devised a new technique. After persuading the victim to
withdraw a large sum of money from his bank, they explained that it was
necessary to place the eaam in an oven as part of the "duplicating" process.
Proving tinft the hand waeatiSfiL quicker than the eye, the swindlers contrived
to substitute for the real money a roll of blank paper treated with a heatsensitive chemical. This they placed in the oven, and a few moments later
the victim saw his "cash" burst into flame. Though angry and unhappy, the
victim was afraid to report his loss to the police, believing that he would
implicate himself in a criminal offense.
Rrri.wn riM 0awpbc3»EL next made the mistake of picking an honest man as
their prey. He pretended to be interested in their proposition then notified
fi^AJ^/^ yi^y-^yffX^ A^aXh——
the Secret Service. Vflion DruHIT pi1 uj^irori for •hira•po^foframes„,ho wcifeAaken

cheap chemicals and blank paper in "bankroll" form^ The men admitted their
guilt, Chief Baughman said, and were turned over to New York Police for
prosecution.
In San Francisco, California, a counterfeiter named Albert Snead, who
feared the law was hot on his trail, dumped his counterfeiting equipment into
the sea and fLed to Colorado feeling reasonably safe. He neglected to consider
that the incriminating evidence was sunk at high tide. When the tide receded,
his plates, press and other materials were high and dry and recovered by the
Secret Service, who had been closing in on Snead. Agents descended upon his
home at Santa Cruz only to find that Snead had left for parts unknown with
his wife and his former wife.
A neighbor recalled a conversation in which Snead mentioned Las Vegas,
Nevada. Agents sped to Las Vegas, canvassed motels, and learned that the trio

- 2 bore an Indiana tag. The Secret Service was notified, the car was traced,
and with the help of Indiana police the three men were arrested and charged
with passing nearly $300 in bogus notes in and around Pittsburgh.
The boy responsible for their capture said he had studied the Secret
Service material on the detection of counterfeit money as a part of his
school's Problems of Democracy class. The three men are now awaiting trial.
The perennial "green goods" game was played and lost by swindlers in
ClevelandJBOWi^ and 9%. New York City. The green goods scheme has been used
for years to cheat the gullible who watch fake "scientists" duplicate money
before their very eyes, then invest their savings in a "money-making machine."
In Cleveland a man reported to the Secret Service that he had been approached
by Mladin Lukan, a jeweler, who offered him a chance "to make a fortune."
Secret Service agents and Cleveland police concealed themselves in the victim's
home and watched while Lukan demonstrated his green-goods machine, a fancy box
rigged with lights, batteries and coils. After the demonstration Lukan was
arrested. He pleaded guilty and was sentenced to serve 15 months in a Federal

The New York case centered around Tinnter Tfrmny filiaa >fTVir> fflr, Rinofownifiy.jia
whose previous 14 arrests had compelled him to spend most of his life behind
bars, according to the Secret Service. SstOlD blessed with a cherubic face, ^—'
went into partnership with another old-time confidence man JumiiM.l Oimpbyin"
Caapboll'1^ job was to spot a prosperous merchant in New York's Harlem and
convince him that mffi£a4Jf^^ make two dollar bills where there
A

was only one before.

Descriptions of the new counterfeits were rushed to all banks, and
agents were diverted from other enforcement work to crack down
on the counterfeiters* Two suspects kept under surveillance since
Christinas were arrested January 20 in San Gabriel, California, for making
bogus $20 notes, the first of which appeared in circulation December 21
in Los Angeles* Agents seized cameras, presses, inks and paper just as
the counterfeiters were preparing to move to another location. Both men
are held under $10,000 bail awaiting trial*
Two/ other men w**H5y^aTrgpf!HHP«*8sq» responsible for manufacturing
A
counterfeit %$ and $10 bills were arrested January k in San Francisco
after some of the& counterfeits turned up there and in Honolulu* They
are 9\\\Wa awaiting court action*
Working with city police in Columbus and Atlanta, Ga., agents
apprehended four men on December 30 and seized plates for counterfeit .
which
became the workshop for the counterfeiting operation*

3 Vo
•Calendar ¥gar-39£3)

An influx of new counterfeit bills marked the close of

m^

according to

U. E. Baughman, Chief of the U. S. Secret Service, ..Uigiili^l'i'kecl the acti
of his agents during

•€.t9*%t»
ma**^

The wave of counterfeiting began just before Christmas when scores of
new and deceptive counterfeit $5, $10 and $20 bills were passed on retail
storekeepers in tho oagt, thif lnidifoat and aeutdht Most of the bogus notes
A
are of excellent workmanship, Chief Baughman said.
During 1953 the Secret Service captured 15 plants for the manufacture
of counterfeit bills, arrested 199 persons for counterfeiting offenses, and
seized $359,658.43 in counterfeit bills and coins. Of this amount, $190,163.82

was captured before it could be put into circulation. The balance of $169,494.6
was passed in retail stores.
^&H«fflSW^^ for counterfeiting said he never intended to
pass the $80,000 worth of partially-printed $5 bills which special agents
seized;^nVtn^te^uipment. "I was just making them for the heck of it," he
id.
insisted.
TneAfives
The were
fivesof
were
superior
of superior
quality^awd^were
qualityand^were
printed
printed
four.
four? to a
sheet bub

iii

irt**fltW'*fi^ Agents raided ham plant before

j^to print the backs. £f*~+ ^ JU-ZZl ~-*- {<— * ""F^
' The "Know Your Money" program of the Secret Service paid off in at least
one case near Pittsburgh, Pa., when a l£&0mwssm& high school boy detected a
counterfeit $10 note after it was passed by one of three men in a car. The

boy called to another clerk to get the license number of the automobile, which

TREASURY DEPARTMENT
WASHINGTON, D.C
IMMEDIATE RELEASE,
Monday, February 1, 1954.

7
1

H-3S0

An influx of new counterfeit bills marked the close of 1953
according to U. £. Baughman, Chief of the U. S. Secret Service,
in a review of the activities of his agents during the year. The
wave of counterfeiting began just before Christmas when scores of
new and deceptive counterfeit $5, $10 and $20 bills were passed on
retail storekeepers in many sections of the country. Most of the
bogus notes are of excellent workmansnap, Chief Baughman said.
Descriptions of the new counterfeits were rushed to all banks,
and agents were diverted from other enforcement work to crack down
on the counterfeiters. Two suspects kept under surveillance since
Christmas were arrested January 20 in San Gabriel, California, for
making bogus $20 notes, the first of which appeared in circulation
December 21 in Los Angeles. Agents seized cameras, presses, inks
and paper just as the counterfeiters were preparing to move to
another location. Both men are held under $10,000 bail awaiting
trial.
Two other men accused of being responsible for manufacturing
counterfeit $5 and $10 bills were arrested January 4 in San Francisco
after some of the counterfeits turned up there and in Honolulu.
They are awaiting court action.
Working with city police in Columbus and Atlanta, Georgia,
agents apprehended four men on December 30 and seized plates for
counterfeit $5, $10 and $20 notes. One of the quartette owned
a plumbing shop which appeared to have become the workship for the
counterfeiting operation.
During 1953 the Secret Service captured 15 plants for the
manufacture of counterfeit bills, arrested 199 persons for counterfeiting offenses, and seized $359,656.43 in counterfeit bills and
coins. Of this amount, $190,163-82 was captured before it could
be put into circulation. The balance of $169,494.61 was passed in
retail stores.
When Ellis J. Aylward was arrested at El Paso, Texas, for
counterfeiting he said he never intended to pass the $80,000 worth
of partially-printed $5 bills which special agents seized, with
his printing equipment. i:I was just making them for the heck of
it,1 he insisted. The faces of the five were of superior quality.
They were printed four to a sheet. Agents raided the plant before
any attempt was made to print the backs. Aylward was convicted
and given a 10-year prison sentence.

- 2 The "Know Your Money" program of the Secret Service paid off
in at least one case near Pittsburgh, Pennsylvania, when a high
school boy working as a clerk detected a counterfeit $10 note
after it was passed by one of three men in a car. The boy called
to another clerk to get the license number of the automobile,
which bore an Indiana tag. The Secret Service was notified, the
car was traced, and with the help of Indiana police the three men
were arrested and charged with passing nearly $300 in bogus notes
in and around Pittsburgh.
The boy responsible for their capture said he had studied
the Secret Service material on the detection of counterfeit money
as a part of his school's Problems of Democracy class. The three
men are now awaiting trial.
The perennial "green goods" game was played and lost by
swindlers in Cleveland and New York City. The green goods scheme
has been used for years to cheat the gullible who watch fake
"scientists" duplicate money before their very eyes, then invest
their savings in a *'money-making machine." In Cleveland a man
reported to the Secret Service that he had been approached by
Mladin Lukan, a jeweler, who offered him a chance "to make a
fortune." Secret Service agents and Cleveland police concealed
themselves in the victim's home and watched while Lukan demonstrated
his green-goods machine, a fancy box rigged with lights, batteries
and coils. After the demonstration Lukan was arrested. He pleaded
guilty and was sentenced to serve 15 months in a Federal prison.
The New York case centered around an old offender whose
previous 14 arrests had compelled him to spend most of his life
behind bars, according to the Secret Service. Blessed with
a cherubic face, he went into partnership with another old-time
confidence man. The latter's job was to spot a prosperous merchant
in New York's Harlem and convince him that it was possible to make
two dollar bills where there was only one before.
The swindlers devised a new technique. After persuading the
victim to withdraw a large sum of money from his bank, they
explained that it was necessary to place the cash in an oven as
part of the "duplicating" process. Proving the hand quicker than
the eye, the swindlers contrived to substitute for the real money
a roll of blank paper treated with a heat-sensitive chemical. This
they placed in the oven, and a few moments later the victim saw
his "cash" burst into flame. Though angry and unhappy, the victim
was afraid to report his loss to the police, believing that he
would implicate himself in a criminal offense.

7^
! \m/

- 3The swindlers next made the mistake of picking an honest man
as their prey. He pretended to be interested in their proposition
then notified the Secret Service, .arrests resulted and cheap
chemicals and blank paper in "bankroll" form were seized. The
men admitted their guilt, Chief Baughman said, and were turned
over to New York Police for prosecution.
In San Francisco, California, a counterfeiter named Albert
Snead, who feared the law was hot on his trail, dumped his
counterfeiting equipment into the sea and fled to Colorado feeling
reasonably safe. He neglected to consider that the incriminating
evidence was sunk at high tide. When the tide receded, his
plates, press and other materials were high and dry and were
recovered by the Secret Service, who had been closing in on Snead.
Agents descended upon his home at Santa Cruz only to find that
Snead had left for parts unknown with his wife and his former wife.
A neighbor recalled a conversation in which Snead mentioned
Las Vegas, Nevada. Agents sped to Las Vegas, canvassed motels,
and learned that the trio had gone on to Denver. In Denver, other
agents quickly located Snead and the women In a motor court and
took them into custody.
Snead's fingertips were scarred and agents learned that he
had performed a surgical operation on his hands to hide the fact
that he had a previous criminal record. He had transposed the
top cushions cf skin from the right to the left fingertips, and
vice versa. Snead also revealed that he had divorced his first
wife with her approval, in order that he might marry his second
wife, who had inherited considerable money. After the second
marriage he introduced his first wife as his sister and invited her
on the honeymoon. Later he told the second wife the whole story,
and the three were on friendly terms at the time they were
arrested.
Snead was sentenced to five years and the two women were each
sentenced to probation for four years.
Forgeries of Government checks continued to plague the Secret
Service, Chief Baughman said. There were 31,144 forged checks
received for investigation, and agents completed 27,153 cases
involving checks worth $2,187,367.65. The Secret Service arrested
2,528 persons for forging and fraudulently negotiating Treasury
checks.

- 4In Chicago, Illinois, William Fred Neumann, 64, boasted
that when not in prison he could make a tax-free income of
$20,000 a year by stealing checks of all kinds. In one instance
he stole a Government check worth $967.46, forged the endorsement, and went to a Sears-Roebuck store where he spent considerable
time inspecting and pricing television sets. He was especially
interested in a console costing:$407.50, but he left without
buying it. He returned the next day and agreed to buy the set
for cash if the store would guarantee immediate delivery. The
store promptly cashed the check, gave Neumann the balance of
$559.96, and discovered the crime only after they were unable to
deliver the set to the fictitious address he gave.
Neumann was trapped by coincidence. He stole a commercial
check drawn by Swift and Company, Chicago, and made the mistake
of asking Swift and Company to cash the check. The cashier
recognized the payee's name as that of a girl in her own office.
She asked the girl if the man at the window was her father. The
girl said he was a stranger. Plant police were summoned,
questioned Neumann, and found on his person a Government check
for $1.25 and two other commercial checks. They called the
Secret Service, who learned that since Neumann had been released
from Leavenworth penitentiary on July 30, 1952, he had stolen
and forged 125 Government checks and about 900 commercial checks.
Neumann pleaded guilty in Chicago and was sentenced to three
years.
A convicted forger in California, formerly in the Navy,
served his sentence and then thanked the Secret Service for
setting him straight. "Although It sounds rather silly,5'' he
wrote, "I enjoyed watching the efficiency with which your department operates. However, I didn't enjoy it enough to try the
same silly trick a second time. I have learned my lesson and
from now on people are going to see a sailor on the old 'straight
and narrow.' I realize that a simple case like mine isn't what
you would call a feather in your cap, bait to me you've done more
than catch an offender -- you've proven how futile it is for
anyone to try to work outside the law. It just can't be done.
Thank you very much for the first step in getting me set straight."
With his letter was a postal money order payable to the Government
for the amount of the check he stole.

7^
- 5Chief Baughman again stressed the need for storekeepers to
use caution in cashing Government checks for strangers. "The
carelessness with which some business men cash checks is sometimes
incredible," he said. "A few weeks ago a woman in Chicago
received a formal'Notice of Discontinuance of Allotment Pay'.
This is a form printed on cardboard, perforated like a Government
check. Its purpose was merely to notify the addressee that she
would no longer receive allotment checks in the amount of
$137.10. The woman, believing the notice to be a check, took it
to the proprietor of a Chicago tavern, who had her endorse it and
then paid her $137.10 in cash. When the tavern owner took the
check to his bank to deposit,he was surprised to find it was
worthless."
Another obstacle in Secret Service forgery investigations
is lack of observation by victims, Chief Baughman pointed out.
His agents in Little Rock, Arkansas, recently traced six forged
checks, all cashed by a short man wearing a bright blue jockey
cap. Agents finally arrested Henry Johnson, 22, wearing the
blue cap. Johnson was well-known to the six persons from whom
he had stolen the checks while he visited in their homes, but
none of the six mentioned him when agents asked if they knew a
man of his description. Johnson.was sentenced to serve two years.
Chief Baughman reported the arrest of four men at Peoria,
Illinois, for grinding one-cent coins to the size of dimes and
using them to operate merchandise-vending machines in a factory.
In a roundup of Secret Service activity, Chief Baughman
reported that his agency received a total of 40,221 cases of all
kinds for investigation, and that his agents comoleted 37,154
cases and arrested a total of 3,019 persons for all offenses.
Of the cases which were prosecuted, 93.6 percent resulted in
convictions. Prison sentences aggregated 2,779 years, with an
additional 2,814 years suspended or probated.
As of December 31, the Secret Service still had 12,805 cases
on hand awaiting investigation, Chief Baughman said.
0O0

t

^^tyr*m*s<sftx,m. A

^ yyyujL. \^*.yj~<s-v\

That growthJLs the basic purpose of our tax program.
Tfoooo ¥ho .in not want tax revisions which will encourage
1?rlt1 ntlvf? r.re those ¥h o<1fi,, nygt wnnt moi™—fmrt T ^ M ^ T * J^I^TT
f^or m m i n n a

?f. Amflj^gffina.

N O T to ynn+r to af>» 1n1i"tat-1,r<a

live and Rro^^^-aetr-i^D-TraaWbottey jobs and better living
:r^E--ali-^fieY±eans~f~~

jr

!t ig__jaasy^t© tr;v=^to make political capital by distorting
te purposes-t^~oiir/t ax efforts.

B^^|^i^^^^e^55e^^f2»age

Ame*ioa»-wants~^i^ governmejaiifc??i€e^£© what is required^» order
to .help tjke economy keep strong and growing.

For^ffte knows

that^4,t is this economy which provides - M m with his 4oh and
a ehanoo to bultui liliirs~elf as the years go by.
As, repr esentatlves of tne -Treasury, 4fe- are- particularly
,.v-

.

L^r^<-'-A-cA--c'yZ<r*\

y

- -^^^-

m^»

sLmMjU

%X ^

XlL/>c^l
Kr.
IP <«\

concerned with the basic value of, this tax program upon^the
's•

t%s\.

future health of our economy.

I- repeat that if-we—de-the

things LliaL facta show-we shouldr-do, we can look to the
A,
future with great confidence.
I shall be glad to answer any questions.

- 5Nothing can so add to our national strength and preparedness as modernization of the whole industrial plant in
America and nothing will make more sure more jobs at which
millions of people can earn high wages by producing more
and better goods,cS £ * ^ caoOS

_^ —f—

These revisions, as they help our economy expand, will
also result In more personal Income to be spent by taxpayers
for their own account and in their own way and so will provide
more money for the purchase of those better goods and services.

gome quarters buggebl that/additional tax cuts for all
r r
iy^X/4 fi€eXAA^<' '\ -. f&O^~^AM^k font
the taxpayers would be a greftter. benefit, to Aj^ihbean^t-axp ay or s. i
ThiD would--ceyt alnly be-tfee~j^mediate reaction butr-^we think inputting first things first, we must make sure we are doing
/

the things that by restoring Initiative will keep our economy
~1JI~~>

) expanding. More tax cuts from ear pay check will be of little
value if we tee no job to give-ue—a pay cheeky
LVUX jys*4 MU^s.^
As long as Americans know there is adequate chance for
gain they will save and invest. They will try new things
that will bring forward new business, growing business, more
jobs, better jobs, and higher and better standards of living *
JPSP

©verffsme.

In the past decade the growth of American industry i^aAf^ttXitt.n
depended-tee-much on, war and inflation. With these unwanted
*

/••

CK ...

ipy <*-4<x.

pressures pretty 4nuoh absent, we need to.make initiative and
enterprise more Wj^aHsir^wfeiie/lf our economy Is #©4»g- to continue to grow, in—tfee-^ttture.

- k Better prospects for p^viding companies to get shareholder financing—instead of go5.ng Into debt—thus means
better prospects for all Americans who work, for It is nm\.u^c >^&eeret that jobs come out of companies that are moving forward

'

and expanding.
There has also been some misunderstanding about what we
_are proposing In depreciation.

Depreciation is really the

,

X/y^-a-u/^; •*.-.-..* /••}{.^ u.^..<. •••—v ^ ^ T riy-s ^ , T ^ - •***#* -t*^.:-' - : '-•'•-: i &&+**

wrong word>aJCid-Iia-& the oonnotation of eomothing slightly
improper*

'

Depreciation Is simply the method by which the

j-.jr

/--cost of a building or piece of machinery is spread over the
'.. tV * a. ' - • * , io^^K
* *turtrvi t*£
/X^X^ years when it is being used up and worn out. Actually, do-

^>u4/

u

PEeGmm-9&mm^&~&&mW£ml~-^

do^s—towea?©Wfefee—eneV-^f™-er-p^eperty~LS"--life.

it

iT^H.
^

At^the moment

these deductions must usually be spread out evenly for tax
purposes. But if you-haven*t been—able—to write mtt the cost
- •••
- y.
X(J[ si
* £^~
t^&**s* y<A~ y~-- of a piece of machinery by the time yau-would like to rep l a c e * ^ with the better machinery, there is less inclination

to buy a new piece of machinery that will do the job better
fl; v*^s HZ. i,£y
f^t\JU SM IJ-«Z.
and cheaper than themacMnery^ j^t-ere-using. Our proposal
w •;-">.. A .., • ? - v^i «Ji,t«^-s:
"i y..j. ',"}. ., .: *u>* 1ft. ''-.'•- --.; &-A y K t£i
^ o let more depreciation be taken ih early years^simply
<SA*..J( ^yji^^^
\toxr~-i-JI ' a . •-.,*..; .., y ., M v. y ^ i^<u^.^,
tf*
c
recognizes the f actss fea ^oing so w^-sha3r|>help our e c o n o m y ^
stay modern and up to date, and so grow and expand faster.
And again repeating the obvious, out of this growing economy

come more and better jobs. \X ahu> ^A 4J^

MAJ^^J

~££&

A^

- 3 bills, for annuities, and from easier procedures in filing
returns•
And these same millions will benefit even more from
such revisions as liberalization of the tax treatment of
depreciation and partial relief from double taxation of
dividends. Everyone will benefit because the economy will
Us*zL *c2l<

^-SLASJUZX****

___.

j

<^<cey£cy r* (j /uvvt -yn&b '007^$, (rU&u- -X-cc

benefit aateooltot tct^e?.
y * . I , ^—,
,-.*—- . . ,
/ The tax revision program, by helping the economy to
C*n^j±
f , ... *y <Ur*<s yyX--r^<^.-,
^
.grow and expand, will Cr-eate^^aore and better jobs^- To see
lo^x. I 4 / ^xyxy^^cLu^ a.- £*-<-/&^c^i -^Jt ^ -{ \. ^t^x^L^^i/. , i^-utj
thistle eimply to put-first things first.k
°
J
In this connectionfefee^dividendsand depreciation pro' L
posals may not be well enough understood.

At th& wonfentoj-

*

earnings of a corporation are taxed twice—once as corporation
income and again as individual income when they are paid
si
out In dividends to the six million shareholders in American
A^/r.mJyy yy^'5uL<.

H^O^J^^-

m. o^aS^^ ; - •-< y«

C^AAJ

Industry. This has f»e*eed companies which want to expand to °
borrow money instead of selling shares in their future. In
the past ten years better than 75 percent of private-industry
financing has been done by going in debt instead of selling
shares. What does this mean?

It means simply that we have

enterprise heavily in debt so that It doesn't develop as well
or as quickly as It would without heavy debts hanging over it>
and Should business turn down, a company In heavy debt is, of
course, in h&d^Q^e.^^^^

C£>L**^U-H

ssyXt* ^Z^uJtA .

y^***jh

%

government expense wj.ll be fuFtn^g decreased. Iatith_this.
fn-ntV^T*flftpT»<»ftgft-In-aigMtj~4^~*-}»-~gP.AH ct>npt> t,n b e g i n to

transfer tke billions of dollars which the government will
not be spending back to the taxpayers so that there will
not be any sudden dislocation resulting from any obpence L&c
of large Jail Mono of dollars being put into the nation's
A
spending stream. In that way we help to maintain stability.
It is important to notice that Inasmuch as it looks as
though we w*4i almost reach a cash balance this year—and a
small cash surplus in fiscal 1955j-^e are thus eliminating Tju A
^ae—poXicy -of cash deficit financing*which Is unwioe in
St^.*../

*i-:.A-\ C ~ x*i,S.A..k

times1 of high levels of activity.

At the same time we are

moving closerAto'an administrative budget balance, which is
a goal we cextainly^w^l reach.
In addition to the $5 billion tax cuts of January 1,
we are recommending a general revision of the tax system.
It will do two principal things:
(l) It will make the tax burden fairer for millions
of individuals by removing the more serious tax inequities
and complications.
(2) It will stimulate production and create bigger
payrolls and more and better jobs by reducing restraints
and by encouraging initiative and investment.
Millions of Americans will benefit from better tax treatment for working children, child care expenses, for doctors7

y

HOLD FOR RELEASE (scheduled for about 10:00 a.m., Tuesday,
February 2, 1954)

Statement by Treasury Secretary Humphrey before Joint
Committee on the Economic Report, February 2, 1954
<$i,*sy<^ £ " £ * ^

Mr. Chairman, I am ^lad-gog, the opportunity to appear
before your committee this morning to discuss the 1954
Economic Report of the President which was submitted to
the Congress last week.
I subscribe e^sptefceiy to the conclusion of the report
to the effect that this nation can make the transition to a
period of less costly military preparedness without serious
interruption IS our economic growth. As the President says
in the letter of transmittal, there is much that justifies
confidence in the future.
Changes t&at this administration has put into effect,
A

as well as others which have been recommended, in the tax < £ w ^ ^ ~
£ie£d, contribute # great^cU^al to our confidence in the future.
'' s
As you gentlemen well know, the administration in the
past twelve months has cut more than $12 billion in anticipated government spending. This reduction in proposed
spending made possible the tax cuts on January 1. These
cuts now are leaving with the taxpayersA$5 billion a year
which formerly was spent by the government. We are cutting
taxes, even though we have not arrived at a budget balance# £»_/>
£&r a very good reason. We must ^ook ahead to the fact tha4 <-Xj*
(,

yI

HOLD FOR RELEASE (scheduled for about 10:00 a.m., Tuesda;
February 2, 1954)

Statement by Treasury Secretary Humphrey before Joint
Committee on the Economic Report, February 2, lyp4

Mr. Chairman, I am pleased to have the opportunity to appear
before your committee this morning to discuss the 1954
Economic Report of the President which was submitted to the
Congress last week.
I subscribe to the conclusion of the report to the effect
that this nation can make the transition to a period of less
costly military preparedness without serious interruption in
our economic growth. As the President says in the letter of
transmittal, there is much that justifies confidence in the
future.
Changes which this administration has put into effect, as
well as others which have been recommended, in the tax structure,
contribute greatly to our confidence in the future.
As you gentlemen well know, this administration in the
past twelve months has cut more than $12 billion in anticipated
government spending. This reduction in proposed spending made
possible the tax cuts on January I. These cuts now are leaving
with the taxpayers over $5 billion a year which formerly was
spent by the government. We are cutting taxes, even though we
have not arrived at a budget balance. There is a very good
reason for this. Vie must always anticipate the reduction of
goverrjrent expenditures and begin to transfer billions of
dollars which the government will not be spending back to the
taxpayers so that there will not be any sudden dislocation
resulting from the lack of those dollars being available to be
put into the nation's spending stream. In that way we help to
maintain stability.
It is important to notice that we expect to almost reach
a cash balance this year--and a small cash surplus in fiscal
19D5. ^ are thus eliminating the necessity for cash deficit
financing from the public which is inflationary particularly
in times of high levels of activity. At the same time we are
moving closer each year to an administrative budget balance,
H-381
which is a goal we are determined to reach.

- 2 In addition to the $5 billion tax cuts of January 1,
we are recommending a general revision of the tax system.
It will do two principal things:
(l) It will make the tax burden fairer for millions
of individuals by removing the more serious tax inequities
and complications.
(2) It will stimulate production and create bigger
payrolls and more and better jobs by reducing restraints and
by encouraging initiative and Investment.
Millions of Americans will benefit from better tax treatment for working children, child care expenses, for doctors5
bills, for annuities, and from easier procedures in filing returns.
And these same millions will benefit even more from
such revisions as liberalization of the tax treatment of
depreciation and partial relief from double taxation of dividends.
Everyone will benefit because the economy will benefit with the
resulting creation of more jobs with better tools and machinery
to produce higher payrolls and cheaper better things for
public consumption.
The tax revision program, by helping the economy to grow
and expand, will benefit every citizen, with steadier employment
and higher standards- of living.
In this connection the proposal for some relief from the
double taxation of dividends may not be well understood. Under
present law, earnings of a corporation are taxed twice--once
as corporation income and again as individual income when they
are paid out in dividends to the millions of shareholders in
American industry. This has restricted the market for shares
of stock in companies which want to expand and has forced them
to borrow money instead of selling shares in their future. In
the past ten years better than 75 percent of private-industry
financing has been done by going in debt instead of selling
shares. What does this mean? It means simply that we have
enterprise heavily in debt so that it doesn't develop as well
or as quickly as it would without heavy debts hanging over it.
Should business turn down, a company in heavy debt is, of
course, easily drawn into trouble.
Better prospects for enabling companies to get shareholder financing—instead of going into debt--thus means better
prospects for all Americans who work, for increasingly better
jobs
come more surely out of companies that are moving
forward and expanding.

- 3There has also been some misunderstanding about what we
are proposing in depreciation. Depreciation is really the
wrong word. Buildings and machinery not only wear out but they
become old fashioned and neither the workman using them nor
the business owning them can do as well either In earning
wages or in decreasing costs as more modern,up-to-date
equipment would make possible. Depreciation is simply the
method by which the original cost of a building or piece of
machinery is recovered over the years during which it is being
used up and worn out. At the moment these deductions must
usually be spread out evenly over the years for tax purposes.
But if the cost of a piece of machinery has not been written
off by the time it should be replaced with the better machinery,
there is less inclination to buy a new piece of machinery
that will do the job better and cheaper than keeping the old
machinery still in use. Our proposal to let more depreciation
be taken in early years does not increase the total that may
be taken as tax deduction by one cent. It simply recognizes
the facts and allows more of the dedaictlon in earlier years.
Doing so helps our economy to stay modern and up to date,
and so to grow and expand faster. And again repeating the
obvious, out of this growing economy come more and better jobs.
It also is very helpful to the small and growing concern in
arranging its finances for new purchases of additional or
more modern equipment and so aids small business to forge
ahead.
Nothing can so add to our national strength and preparedness as modernization of the whole industrial plant in
America and nothing will make more sure more jobs at which
millions of people can earn high wages by producing more
and better goods at less cost.
These revisions, as they help our economy expand and
reduce the taxes required will also result in more personal
income to be spent by taxpayers for their own accoamt and in
their own way and so will provide more money for the purchase
of those better goods and services.
Additional tax cuts for all the taxpayers will of course
benefit them. But until more reductions in Government
expenditures are in sight further cuts in taxes will only add
to the deficit. However as rapidly as reduced expenditures
can be seen, further tax reductions will promptly be made.
In the meanwhile, putting first things first, we must make
sure we are doing the things that by restoring initiative will
keep our economy expanding. More tax cuts from the pay check
will be of little value if there is no job to make the pay
check in the first place.

1\

As long as Americans know there is adequate chance fcr
gain they will save and invest. They will try new things
that will bring forward new business, growing business, more
jobs, better jobs, and higher and better standards of living.
In the past decade the growth of American Industry was
stimulated by debt and war and inflation. With these unwanted
pressures fading, we need to again make Initiative and
enterprise more compelling if our economy is to continue ac gro
'That growth stimulated by tax relief and reduction to
almost every taxpayer in the nation is the basic purpose of
our tax program.
We believe that this tax program will help to build
a firm foundation for the future health of our economy and
that we can look to the future with great confidence.
I shall be glad to answer any questions.

0O0

- 2 During heavy tax periods, particularly, there would be a tremendous
shifting of funds between banks and communities. The transfer of $8 to
§9 billion in the middle of March from the various communities throughout
the country to the accounts of the Government at Federal Reserve Banks would
play havoc with the banking system and business. In order to meet such withdrawals, in many instances banks would have to restrict credit and liquidate
securities in the market.
Millions of dollars of additional clerk hire, costs of currency shipments
and transfer of funds would be necessary if the Government should handle the
business now handled for it by banks in connection with deposits of withheld
income and social security taxes, the issuance of U« S. savings bonds, and the
handling of subscriptions to other types of Government securities. If all remittances had to be sent to Reserve Banks for collection, the Government
would have many more millions of dollars tied up in process of collection.
All Government deposits in banks are fully secured by securities pledged
with Federal Reserve Banks. Also, member banks are required to maintain a
reserve with Federal Reserve Banks against Government deposits as well as
other deposits. At the present time this reserve amounts to about 18 per cent
for all classes of member banks.
Under the Banking Act of 1933, banks are prohibited from paying interest
on demand deposits, including Government deposits. In view of the short time
they hold Government deposits, often only a few days, and the services they
render, the present arrangement appears equitable.
- 0 -

7

WHY THE GOVERNMENT KEEPS MONET ON DEPOSIT IN BANKS

Out of 14,000 eligible banks in the United States, approximately 11,000
have Government deposits. These accounts serve as a pipeline for the flow
of taxes and the proceeds from the sale of Government securities from the
public into the Treasury's accounts at the Federal Reserve Banks. They
also serve as temporary reservoirs on which the Treasury draws as it needs
funds. The amount now in these accounts is equal to about two weeks1 expenditures of the Government.
The Treasury keeps money in banks because (a) it is the most efficient
and economical way to handle the Government's business, and (b) it avoids
withdrawing funds from communities before they can be returned through
Government disburs ements •
Congress passed the National Banking Act in 1863 specifically authorizing
the Secretary of the Treasury to deposit money in banks after efforts by the
Government during the Civil War to act as its own banker failed, resulting
in the suspension of specie payments.
The present system enables the Treasury to keep a smooth flow of money
despite the unevenness of the flow of Government revenue and expenditure.
Assume for instance that Bank X in Panhandle, Texas, sells a half million
dollars of savings bonds to its customers. This money is left on deposit
in Panhandle until it is needed at the Federal Reserve Bank of Dallas to
pay the Government's bills. If this money should immediately be withdrawn
from the bank at Panhandle, before it can be returned to channels of trade
through Government disbursement, the money in the community of Panhandle
would be transferred to Dallas.

TREASURY DEPARTMENT
Washington
February 2, 1954
Secretary Humphrey today made, the following statement before
the Joint Committee on the Economic Report in reply to questions
on government deposits in banks:
Why the Government Keeps Money on Deposit in Banks
Out of 14,000 eligible banks in the United States,
approximately 11,000 have Government deposits. These accounts
serve as a pipeline for the flow of taxes and the proceeds
from the sale of Government securities from the public into
the Treasury's accounts at the Federal Reserve Banks. They
also serve as temporary reservoirs on which the Treasury
draws as it needs funds. The amount now in these accounts
is equal to about two weeks' expenditures of the Government.
The Treasury keeps money in banks because (a) it is
the most efficient and economical way to handle the
Government's business, and (b) it avoids withdrawing funds
from communities before they can be returned through
Government disbursements.
Congress passed the National Banking Act in 1663
specifically authorizing the Secretary of the Treasairy to
deposit money in banks after efforts by the Government
during the Civil War to act as its own banker failed,
resulting in the suspension of specie payments.
The present system enables the Treasury to keep a smooth
flow of money despite the unevenness of the flow of Government
revenue and expenditure. Assume for instance that Bank X
in Panhandle, Texas, sells a half million dollars of savings
bonds to its customers. This money is left on deposit in
Panhandle until it is needed at the Federal Reserve Bank
of Dallas to pay the Government's bills. If this money
should immediately be withdrawn from the bank at Panhandle,
before it can be returned to channels of trade through
Government disbursement, the money in the community of
Panhandle would be transferred to Dallas.
H-3C2

- 2 During heavy tax periods, particularly, there would be
a tremendous shifting of funds between banks and communities.
The transfer of $8 to $9 billion in the miad^e of March from
the various communities throughout the country to tfte
accounts of the Government at Federal Reserve Banks would
play havoc with the banking system and business. In order
to meet such withdrawals, in many instances banks would
have to restrict credit and liquidate securities in the
market.
Millions of dollars of additional clerk hire, costs
of currency shipments and transfer of funds would be
necessary if the Government should handle the business
now handled for it by banks in connection with deposits
of withheld income an# social security taxes, the issaiance
of U. S. savings bonds, and the handling of subscriptions
to other types of Government securities. If all remittances had to be sent to Reserve Banks for collection,
the Government would have many more millions of dollars
tied up in process of collection.
All Government deposits in banks are fully secured by
securities pledged with Federal Reserve Banks. Also,
member banks are required to maintain a reserve with
Federal Reserve Banks against Government deposits as well
as other deposits. At the present time this reserve amounts
to about 18 per cent for all classes of member banks.
Under the Banking Act of 1933, banks are prohibited
from paying interest on demand deposits, inclaiding
Government deposits. In view of the short time they hold
Government deposits, often only a few days, and the
services they render, the present arrangement appears
equitable.

oOo

- 3-

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

or interest thereof by any State, or any of the possessions of the United Sta

or by any local taxing authority. For purposes of taxation the amount of dis-

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

Revenue Code, as amended by Section llf> of the Revenue Act of 1941, the amou

of discount at which bills issued hereunder are sold shall not be considered

accrue until such bills shall be sold, redeemed or otherwise disposed of, an
such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued here
under need include in his income tax return only the difference between the

price paid for such bills, 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 los
Treasury Department Circular No, U18, 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 incorporate
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, f ollcwing 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
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
comDleted at the Federal Reserve Bank on February 11. 19$k 3 ^n cash or
other immediately available funds or in a like face amount of Treasury bills
maturing February 11, 1954 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,

TREASURY DEPARTMENT
Washington

/

2 X^M-3

FOR RELEASE, HOMING NEWSPAPERS, '
Thursday, February 4, 195U
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 February 11, 1954 , ln "the amount of
$l35Q0»066gQQQ 3 to

be

issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series will be
dated February 11, 195U , and will mature May 139 1954 * 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, two o'clock p.m., Eastern Standard time, Monday, February 8T 1954

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

LSS^fURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, February 4, 1954.

H-383

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of91 -day Treasury bills, for
cash and in exchange for Treasury bills maturing February 11, 1954,
in the amount of $1,500,066,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 11, 1954,
and will mature May 13, 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, February 8, 1954.
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 ofthe 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

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 11, 1954, in cash or other Immediately available funds
or In a like face amount of Treasury bills maturing February 11, 1954.
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 3hall 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 3hall 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 saibsequent 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
0O0
conditions of their issue. Copies
of the circular may be obtained
from any Federal Reserve Bank or Branch.

SUGGESTED TREASUET RELEASE

Treasury Secretary George M. Humphrey today ptudiuiLxnl the
employees of Republic Steel Corporation a special citation for the
',4^ £/•*•
outstanding record^achieved during j&s recent payroll savings drive,

(3iaplesK*_j$iite~a«c-e«te^
JfXkA., tfh* ** 0c€^c^c^*^f

jgEm\mm\\\m\\m\\\a% 44^- h6*<Cf 47k*. fin^+4~~rr - ^ — j

ployees*^y&uiMrJ9ojp&ryg^
are now purchasing regularly United States savings bonds through the

$y*9£*
^yCp^f
payroll savings plan*
plan. /fr*+l
*'"'
"" *'--- ~ //^
' - Wfe-x
-w^^ — *

*•/

In presenting the citation to the industrialist, Secretary Humphrey/^\
•seated—Ilia l,.y3Mr. White and the employees of the Hepublie Steel Corpo/'

^

ration give practical support to the national effort for strengthening
the value of the dollar. JA-t lilig isd-mrf- lhiie-4toaj>^ijuj^ u-ver

*t*'ldlJ!ti"iLyii'

continued, "that 66.ULKT employees

bonds."
Currently, Mr. White is the subject of a special business publications advertisement appearing this month in approximately 500 magazines
entitled, "I am Proud to be a Savings Bonds Salesman for Uncle Sam."

##

Treasury Secretary George al. Humphrey today awarded to
the employees

of Republic Steel Corporation a special citation

for the outstanding Savings .bonds record they achieved during
a recent payroll savings drive.

The Secretary presented thas

citation to Charles al. White, president of Republic Steel, who
in accepting on behalf of the company's employees said 66,091
workers —

96 percent of the number employed —

chasing £sgiiiwBi$r United States
pa yroll savings plan.

are now pur-

Savings Bonds through the

They are investing $16 million a year

in bonds•
In presenting the citation to the industrialist, Secretary
Humphrey told air. White that he and the employees of the Republic Steel Corporation /give practical support to the na tional
e^ffort P i "in iiiiifTi mj.ni 11 M[i I Inn II 11 mi ii P IT 11 i*p 1 linn J ' We especially need the hmamf of <fe$> management in encouraging more people
in M
>i

p

industry and business to purchase s avings bonds regularly*!
*y§"

t* * Q

""^

^

yfyu *f€^^4^k>*^^\ if*y%J& *

Through the payrolPsavings plan, every worker can take an active
part in our current csTmpaign to spread the ownership of the
national debt more widely, and to given Americans a dollar that
keeps its value over the years."
-gnEESXfixy ^J>* White is the subject of a special business
publications advertisement, a ppearing this month in approximately
500 magainesventifflerf, "I am Sroud to be a Savings Bonds Salesman for Uncle Sam."

Treasury Secretary George M. Humphrey today awarded to
the employees of Republic Steel Corporation a special citation
for the outstanding Savings Bonds record they achieved during
a recent payroll savings drive. JThe Secretary presented the
citation to Charles M. White, president of Republic Steel,
who in accepting on behalf of the company's employees,said
66,091 workers -- 96 percent of the number employed -- are
now purchasing United States Savings Bonds regularly through
the payroll savings plan^^ffie^--a3S@^lnvesting $16 million a
year in bonds.
Secretary

In presenting the citation

Humphrey told Mr. White that he^ and the employees of the
Republic Steel Corporation jymmc practical support to the national
/v
effort for sound Government financing.
"We especially need the assistance of management in
encouraging more people in industry and business to purchase
savings bonds regularly", the Secretary said.

"Through the

payroll savings plan, every worker can take an active part
in our current campaign to spread the ownership of the
national debt more widely, and to give^* Americans a dollar that
A/ y*A- vrv.. y ' '*"".'
keeps it*-walue over the years."
Mr.\White is thm subject of avspecial busirxes
publications advertlserii«it, appearing

month in approximately

500 m&ga.zln^h^-' en^titlid, l \ a m Proud /to be a^avtogS/fionjpf1
Salesman for Uncle Sam."
0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, February 4, 1954.

H-38^

Treasury Secretary George M. Humphrey today awarded
to the employees of Republic Steel Corporation a special
citation for the outstanding Savings Bonds record they
achieved during a recent payroll savings drive.
The Secretary presented the citation to Charles M.
White, president of Republic Steel, who, in accepting
on behalf of the company's employees, said 66,091
workers --96 percent of the number employed -- are
now purchasing United States Savings Bonds regularlythrough the payroll savings plan and thus investing
$16 million a year in bonds.
In presenting the citation, Secretary Humphrey told
Mr. White that he and the employees of the Republic Steel
Corporation are giving practical support to the national
effort for sound Government financing.
"We especially need the assistance of management in
encouraging more people in industry and business to
purchase savings bonds regularly", the Secretary said.
"Through the payroll savings plan, every worker can take
an active part in our current campaign to spread the
ownership of the national debt more widely,and to give
Americans a dollar that has relative stability over the
years."
oOo

s?

y

A
IMMEDIATE RELEASE,
Friday. .February 5. 195*1

The Treasury Department announced today that imports
received from the Federal Reserve Banks show that subscriptions
for the current exchange offering eo far tabulated amount to
/ MUS. £io H4iiiion fop the new 7-year 9-»onth 2-1/2 percent bonds,
and agar $6,600 million for the new one-year 1-5/S percent
certificates of indebtedness.
Because of the large number of securities outstanding in
the five issues eligible for exchange, and the heavy burden
on banks in handling subscriptions for their customers,
the Federal Reserve Banks have not yet completed the processing

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, February 5> 195^.

H-385

The Treasury Department announced today that
preliminary reports received from the Federal Reserve
Banks show that subscriptions for the current exchange
offering so far tabulated amount to more than $10 billion
for the new 7-year 9-month 2-1/2 percent bonds, and more than
$6,600 million for the new one-year 1-5/8 percent
certificates of indebtedness.
Because of the large number of securities outstanding
in the five issues eligible for exchange, and the heavy
burden on banks in handling subscriptions for their
customers, the Federal Reserve Banks have not yet completed
the processing of subscriptions received by mail.
A final report will be made in a few days.

0O0

-3
mium wmmo nmPAMts,

a

The tremmvarj D^partsent anmuncod last e w & o g that the tsadars for $1,$00,000,900,
or thereabouts, sT 91-day

BEWIMI?

Ulla t© b© d&ttd February II and to arton ^r 3|f

19SU, i^ich were offered on February 1$, ware opened at the Federal mmmrm mmha am
fmhrmmry 8.
The details of t&ia Issus are as follows;
fut&l a»Usd £«r - Wtf^trnm xn
fatal a^eptsd
- ^SOO.t^uOQO

(tmahammm f t a , y*7*000 entered am a
nonaoiipetiUvQ basis and accepts in
full at the ammrmm price ahmm halm)
Avamm
i*riot
- ^ . T ? M S^a&R&iiil *afc# ssf dldeoost i ^ m . 0 » S | ^ i»r
of aecapft«sd cospetitiva bidss
Higk i3qtiiTal#»l rt>t« nf dia^ouat appnss. 0,3701 par
"" 99.TI0
Lor
(71* ?*rein* of tfe* an@mi& bid , or at i&* low price ?ra3 accepted)

fsyjsjbwt^nu-i.^

tmtml
killed for

Total
I

Cleveland
Atlanta
Ghi©ag©
St* Xtfols
Iff ^ l ^ ^ e i ^ ^ . 1 j^

Kanaaa City
I&ll&e
smnffamlMmm

3fc,3UbfO0O
H f §21,000
tit, (05,000
a&5,K&9»oao
3^#8atf#ooo
12,032,000
101,6^,300

20,363,000
i^MkfWrrtOGo

33,671*000
li,I&£,0QQ
iHf 963,000
13,6g?,0OO
11,036,000
sitiatfOoo

n,9n9(m
T0TAI §2,252,639, ,x»

tl,5OO,ifii,OO0

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, February 9, 1954.

H-386

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated February 11 and to mature May 13* 1954, which were offered on
February 4, were opened at the Federal Reserve Banks on February 8.
The details of this issue are as follows:
Total applied for - $2,252,689,000
Total accepted
- 1,500,294,000 (includes $221,447,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99-774/ Equivalent rate of discount approx.
0.893$ per annum
Range of accepted competitive bids:
High - 99.780 Equivalent rate of discount approx.
0-870$ per annum
Low
- 99.770 Equivalent rate of discount approx.
0.910$ per annum
(74 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
$
25,328,000
1,678,547,000
30,724,000
34,314,000
12,891,000
24,815,000
265,169,000
19,815,000
12,032,000
44,643,000
21,972,000
82,439,000
$2,252,689,000

Total
Accepted
$

20,368,000
1,004,487,000
15,224,000
33,671,000
12,449,000
21,944,000
221,963,000
18,659,000
11,036,000
41,418,000
21,722,000
77,353,000

$1,500,294,000

...

.*»" -

,n

SUBSCRIPTIONS BY FEDERAL RESERVE DISTRICTS

1-5/8$

2-l/2#

FEDERAL RESERVE
DISTRICT

SERIES A-1955
CERTIFICATES

TREASURY BONDS
OF 1961

Boston

1

1

New York

79,933,000

456,735,500

5,151,934,000

4,688,578,000

57,874,000

314,259,000

Cleveland

177,747,000

604,264,000

Richmond

64,572,000

211,000,500

Atlanta

172,350,000

289,578,500

Chicago

532,241,000

1,730,497,500

St. Louis

123,152,000

420,097,000

Minneapolis

96,390,000

263,427,000

Kansas City

187,223,000

406,106,500

79,666,000

300,826,500

212,862,000

1,317,039,000

22,165,000

35,039,000

$6,958,109,000

$11,037,448,000

Philadelphia

Dallas
San Francisco
Treasury

• ^ i T i P T I O K S BY PiiBtRAL

MTWIW

(L^TIFlOkTgS

tmfi*r

va

Outstanding . For Certificates

km wons

? for Bonds

2-1/4^ Certificates
ssturing f/l$/$h

18,114,1^^^1^/4 4^/ (tat. *$^/&%}7ztfoh

1-3/W Hot*a «
aatariag jfiStSm

4,675,067i0Q^ « h 343/f£* •** 3,2-3^3^6*
57»8?!4,Ou€

BOIDS m t o r n
OR TO BE.CALLED
111

' •

177,747,000

n i n r iiniifii IJIIII m i I. • •

5,825^63,500

2g Bonds of 1952-54

(dot mUglWm)

4,03/,1 <\ St fa0

#I5M
2-1/1$ lWL*te at 1952-55
to be called for r@demption on 6/15/54
2-lA* Bonds of 1954-56
to b© called for redemption on 6/15/54
TOmLB

1,500,780,000 *»,, (mot eligible)
--*«u,
123,152,000
660,691,a50
vX] (not eligible)
^3fO,i5?
jjw,™
lo7,2^3,000

/, 6 7 3 oza- too
;

3&tfrxi,fooi,
J0

$20,796,168,1^5 | t^lfa Jo^^ro lf/^^7 W , ° 0 0
**- '*»*l3&emMmSlLtp*v^i

.

»,958,10o,C<*

f.~j&ZJ££-.
wv*

- 2The following tablesshow^ the amounts outstanding of the
five issues eligible for exchange in the current offering and the
extent to which they are being exchanged for the new issues. 0~J(^
<<l*Jte^jf£*^>: - ¥*** ?i((U-*.( (Ik^MV^tm, mm^mma*h+*4A**i

The Treasury Department announced today that reports thus far
received from Federal Reserve Banks show that subscriptions for the
current exchange offering amount to about $ et Qff jiytJUJ™. for the
new one-year 1-5/8$ certificates and $ n^^-j ->uMJy^^ for the new

X

7-year 9-month 2\% bonds.
Secretary Humphrey said he regarded the response to the
offering as "excellent, particularly in regard to the amount of
the subscriptions for the new 7-year 9-month bonds . ^ "

v

^

>re than $ / /
of medium-term securities has been placed> in a single

icates

term

4 ^I

^jJfmmWmmr

obligations.
k

0f $8 billion in bonds^ptffcuring or to be called on June 15^
raS*)**'

$ i>» -i

;K?

^xllir^i are now being exchanged voluntarily for the

new medium-term

^ ^ ^ ^ ^ ^ 1 ^ tJ^&t*

TREASURY DEPARTMENT
WASHINGTON, D.C
FOR RELEASE A.M. NEWSPAPERS,
Wednesday, February 10, 1954*

\mr W

H-387

The Treasury Department announced today that reports received from Federal
Reserve Banks show that subscriptions for the current exchange offering amount to
&6,95$ million for the new one-year "l**$/bfo certificates and ^11,037 million for the
new 7*year 9*,month 2-1/2/° bonds*
Secretary Humphrey said he regarded the response to the offering as "excellent,
particularly in regard to the amount of the subscriptions for the new 7-year 9-month
bonds. More than ill billion of medium-term securities has been placed in a single
operation," the Secretary said.
Of $8 billion in bonds maturing or to be called on June 15» holders of which
were given the option of exchanging into bonds, about i?$<,$ billion are now being
exchanged voluntarily for the new medium-term bonds© Holders of the remaining June
bonds will be given an opportunity later to exchange their securities for a Treasury
issue, probably short-term0
The following tables show the amounts outstanding of the five issues eligible
for* exchange in the current offering and the extent to which they are being exchanged for the new issues, and subscriptions by Federal Reserve Districts.
Amount Exchanged
for Certificates

Amount Exchanged
for Bonds

$8,114*165,000

$5,614,651,000

$2,334,172,400

4,675,067,000

1,343,458,000

3,232,336,000

MATURING CERTIFICATES
M P NOTES

Amount
Outstanding

2y±/k% Certificates
maturing 2/15/54
l-a>/8# Notes
mataaing 3/15/54
BONDS MATURING
OR TO BE CALLED
2% Bonds of 1952-54
maturing 6/15/54

5,825,463,500

(not eligible)

4,031,795,900

'2~l/4# Bonds of 1952-55
to be called for re1,500,780,800
demption on 6/15/54

(not eligible)

1,073,022,600

2-l/Iat Bonds of 1.954-56
to be called for re660,691,850
demption on 6/15/54

(not eligible)

366,121,100

TOTALS

1^20,796,168,150

£•6,958,109,000

till,037,448,COO

- 2 SUBSCRIPTIONS BY FEDERAL RESERVE DISTRICTS
1-5/8# 2-1/2$
FEDERAL RESERVE
DISTRICT
Boston
New York

$

SERIES' A-1955
CERTIFICATES
79,933,000

TREASURY BONDS
OF 1961
$
456,735,500

5,151,934,000

4,688,578,000

57,874,000

314,259,000

Cleveland

177,747,000

604,264,000

Richmond

64,572,000

211,000,500

Atlanta

172,350,000

289,578,500

Chicago

532,241,000

1,730,497,500

St. Louis

123,152,000

420,097,000

Minneapolis

96,390,000

263,427,000

Kansas City

187,223,000

406,106,500

79,666,000

300,826,500

212,862,000

1,317,039,000

22,165,000

35,039,000

$6,958,109,000

$11,037,448,000

Philadelphia

Dallas
San Francisco
Treasury
TOTAL

0O0

- 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 State
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United Stsvtos 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 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, rrhothor on original issue or on subsequent purchase
and th« amount actually received either upon salo or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. I4I8, as amended, and this notice, prescribe the 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.

- 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 thereof
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders., in who!; or in part, and has 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 __ February 18,-_195_4 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing February 18, 1934 . Cash and exchange tenders will receive equal
J0^M

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, unmcr 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,

•ffasiiamtoniiribgatoa

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
V^^S^fda&L February 10, 1954
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 February 18, 195^ , in the amount of
§ 1,501,687,000

3

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

competitive bidding as hereinafter provided. The bills of this series will be
dated February 18, 195k , and mil mature May 20, 195!*

9

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, February 15, 195^

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of 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 companies and from responsible and recognized
dealers in inv-stment securities. Tenders from others must be accompanied by

RELEASE MORNING NEWSPAPERS,
Wednesday, February 10, 1954.

H-388

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 February 18, 1954,
in the amount of $1,501,687,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 18, 1954,
and will mature May 20, 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, February 15, 1954.
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 ofthe 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
(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 February lo, 1954, i n c a s n o r other Immediately available funds
or in a like face amount of Treasury bills maturing February 18, 1954,
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 betv/een the price paid for
such bills, whether on original Issue or on saibsequent 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
0O0
conditions of their issue. Copies
of the circular may be obtained
from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, February 10, 1954.

H-389

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, 1954, to January 30, 1954, inclusive, as follows:

Products of the
Philippines

Buttons

[Established Quota
Quantity
850,000

Unit
Imports as of
of
January 30, 1954
'Quantity'
Gross

43,295
364,585

Cigars

200,000,000

Number

Coconut Oil • • •

448,000,000

Pound

1U,749,485

Cordage • . • . .

6,000,000

Pound

170,329

Rice ......

1,040,000

Pound

(Refined
Sugars
(Unrefined

1,904,000,000

Pound

Tobacco

6,500,000

-

hk,740,236
Pound

75,003

112
TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday, February 10, 1954

H-389

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, 1954, to January 30, 1954, inclusive, as follows 1

8

Products of the
Philippines

1Established Quota
t
Quantity
1

Buttons

850,000

• • ••

Unit
*
1 Q£
? imports as of
1
Quantity1
J * " W 30, 1954
Gross

43,295
364,585

Cigars ••«••«••..

200,000,000

Number

Coconut oil

448,000,000

Pound

14,749,485

Cordage * » * * * » * * • * «

6,000,000

Pound

170,329

xtjLce ««»«««••

1,040,000

Pound

(Refined • •
9 * 0
Sugars
(Unrefined • • • • •

1,904,000,000

Pound

TobaCCO

6,500,000

e

e

0 « e e « e « e e

•

e

-

44,740,236
Pound

75,003

- 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, 1HETHER 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, Germanyy 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
Sept. 20, 1953 To
February 9, 1954

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263

5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

388,953
239,690

Established
33-1/3^ of
Total Quota
1,441,152

Imports
l/
Sept. 20, 1953
to February 9, 1954
388,953

75,807
39,476
16,668
1,099

22,747
14,796
12,353

16,668
1,099

24,298
7,088

25,443
• 7,038

24,298
7,088

717,272

1,599,886

438,106

TREASURY DEPARTMENT
Washington
H-390

IMMEDIATE RELEASE,
Wednesday, February 1 0 , 1954.

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established hy the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 ^-P^ 63 other than rough or harsh under 3/4"
Imports Sept. 20, 1953* to February 9, 1954» inclusive
Country of Origin,

Established Quota

Egypt and the AngloEgyptian Sudan . . ,
Jreru . . . . . . . . I
British India . . . .
unina . . . . o . . .
Mexico
......*
Brazil. . . . . . . . <
Union of Soviet
Socialist Republics
Argentina
Haiti . . . . . . . .
Ecuador . . . . . . .

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

Imports
Honduras •
—
-»
mm

5,883,290
618,723
425,384
-

Country of Origin

Established Quota
752

Paraguay . . . . . o •
Colombia
.
.Iraq « . . . « e « . *
British East Africa . .
Netherlands E. Indies.
Barbados
.
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
^/Other French Africa . .
Algeria and Tunisia •

871
124
195
2,240
71,388
21,321

5,377
16,004
689

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20, 1953 to January 30, 1954
Established Quota (Global)

Imports

70,000,000

3,062,447

Cotton 1-1/8" or more, but less than l-ll/l6"
Imports Feb. 1* 1954,. to February 9, 1954
Established Quota (Global)

45,656,420

Imports

2,977,854

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, February 10, 1954.

H-390

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President1* Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20. 103/to February 9« 1954, inclusive
Impoi

Country of Origin. Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras
Egyptian Sudan . . .
Peru
British India
China
Mexico
Brazil
Union of Soviet
Socialist Republics .
Argentina . . . . . . .
Haiti . . . . . . . . .
Ecuador . . . . . . . .

...... 752
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333

—
5,883,290
618,723
425,384
-

Paraguay . . . . . . .
Colombia . . . . . . .
Iraq . . . . . . . . .
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria . . . . . . . ..
2/0ther British W. Africa
J/Other French Africa . .
Algeria and Tunisia „

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

if Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4" Cotton 1-1/8" or more, but less than 1-11/16"
Imports Sept. 20. 1953 to January 30, 1954
Imports Feb. 1. 1954,..to February 9, 1954
Established Quota (Global) Imports Established Quota (Global) Imports
70,000,000 3,062,447 45,656,420 2,977,354

in

- 2 COTTOH 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, JIHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE. Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes-made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland,--Belgium; Germany; and Italy?

Country of Origin

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

Established
TOTAL QUOTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,50?

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

Total imports
Sept. 20, 1953 To
February 9, 1954
388,953
239,690

: Established :
Imports
l/
. 33-1/3% of : Sept. 20, 1953
: Total Quota : to February 9, 1954
1,441,152

388,953

75,807
39,476
16,668
1,099

22,747
14,796
12,853

16,668
1,099

24,298
7,088

25,443
7,088

24,298
7,088

717,272

1^599,886

438,106

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, February 10. iq^k.

H-391

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 t

Country
0f

Origin

i
z
:
:

i Wheat flour, semolina,
t
crushed or cracked
s
wheat, and similar
:
wheat products

Wheat

5

S

,___._______._

r Established s
Imports
. Established s
Imports
:
Quota
sMay 29, 1953? to 5
Quota
: May 29, 1953?
_ i
L£ghr\iary 9, 1954 ;
* to February %
(Bushels)
(Bushels)
(pounds)
(Pounds)
795,000
3,815,000

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

mm

mm

100
-

_
—

„,
mm

3k

100
100

46

-

_

.m.

100
2,000

100
—

z

1,000
mm

100
—
—
—
m.

_
-

-

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

100
100

_
-

100
100

—

1,000

_

100

mm

m*

tm

_

—

117
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday r February I Q ,

1 9 5

H-391

4a

The Bureau or 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, 1953,
as follows?

Wheat
Country
of
Origin

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

Established :
Imports
Quota
tMay 29, 1953, to
, ;February 9j 1954
(Bushels)
(Bushels)
795,000

795,000

100

34

100
100

46

100
2,000
100
1,000
100
-

1,000
100
100
100
100

l/Jheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Established
Quota

Imports
May 29, 1953, to
to February 9f193i
( P o u n d s ) " (Pounds)

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

100

IMMEDIATE RELEASE,
Wednesday, February 10, 1954.

TREASURY DEPARTMwi
WASHINGTON
H-392

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 January 30, 1954, inclusive, as follows:

Commodity

Period and Quantity

: Unit
: of
:Quantity

Ihole milk, fresh or sour

Calendar year

Cream ••••• • ,

Calendar year 1,500,000 Gallon

: Imports
: as of
: January 30.

m

3,000,000 Gallon

710
67

Nov. 1, 1953Butter

50,000,000 Pound

432,790

33,950,386 Pound

Quota Filled

March 31, 1954
Fish, fresh or frozen, filleted
etc., cod, haddock, hake, pollock, cusk, and rosefish.
•

Calendar year

"fhite or Irish potatoes:
certified seed ................. 12 months from 150,000,000 Pound
60,000,000 Pound
other
•
• Sept. 15, 1953
Cattle, less than 200 Lbs. each •• 12 months from 200,000 Head
April 1, 1953

54,272,155
52,606,1*63
4,396

Cattle, 700 pounds or more each
(other than dairy cows)

Jan 1, 1954Mar, 31, 1954

Walnuts

Calendar year 5,000,000 Pound

568,060

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved ..........

12 months from
Oct. 1, 1953

7,000,000 Pound

4,901,904

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not including peanut butter)

12 months from
July 1, 1953

1,709,000 Pound

Peanut Oil

2,041*

120,000 Head

6,320

12 months from
80,000,000 Pound
July 1, 1953

1,531,090

Dec. 23, 19532,500,000 Bushel
Sept. 30, 1954

1,521,266

#

Oats, hulled and unhulled and unhulled ground

(1) Imports for consumption at the quota rate are limited to 8,487,597 pounds
during the first three months of the calendar year,
* imports through February 9, 1954.

-» 1 Q
MEDIATE RELEASE,
dnesday, February 10, 1954.

TREASURY DEPARTMENT
WASHINGTON

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 January 30, 1954, inclusive, as follows:
- i unit s Imports
Commodity

s Period and Quantity
%

t, of
i Quantity

* as of
t January 30. 1954

[hole milk, fresh or sour Calendar year 3,000,000 Gallon 710
{ream • Calendar year 1,500,000 Gallon 67
Nov. 1, 19533utter

50,000,000 Pound

432,790

33,950,386 Pound

Quota Filled

March 31, 1954
Fish, fresh or frozen, filleted
etc., cod, haddock, hake, pollock, cusk, and rosefish

f-*

Calendar year

JVhite or Irish potatoes:
certified seed
..••••••' 12 months from
other
•
Sept. 15, 1953

150,000,000 Pound
60,000,000 Pound

$k9272,155
52,606,463

Cattle, less than 200 Lbs, each .. 12 months from 200,000 Head 4,396
April 1, 1953
Cattle, 700 pounds or more each Jan 1, 1954(other than dairy cows)
Mar* 31, 1954

120,000 Head

2,044

Walnuts •. Calendar year 5,000,000 Pound 568,060
lmonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

4,901,904

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

6,320

80,000,000 Pound

1,531,090

Peanut Oil 12 months from
T

July 1, 1953

Oats hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954

2,500,000 Bushel

1,521,266

(1\ Imports for consumption at the quota rate are limited to 8,487,597 pounds
during the first three months of the calendar year.
* imports through February 9, 1954.

W

STATUTORY DEBT LIMITATION
AS O F J?^mn:..31>....193

February 1 0 , 1951

of , w A ?
/i S e f C ° n d L l b e I t y ?°Pf. A ° ' ' a S a m e n d e d > 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 ot June 26, 1946; U.S.Ca, 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 un<W
this limitation;:
Total face amount that may be outstanding at any one time
$275» 0 0 0 ,000 000
Outstanding
Obligations.issued under Second Liberty. Bond Act, as amended
Interest r bearing:
Treasury bills _
$19 , 5 H , 5 6 6 , 000
Certificates of indebtedness
2 6 , 3 8 6 , 209» 0 0 0
Treasury notes
Z Z Z
37.374:915.800
BondsTreasury...„

„

_ _....

Savings (current redemp. value)
Depositary
_
Investment S e r i e s Z Z I Z Z Z I
Special Funds Certificates of indebtedness
_..
Treasury notes
Z Z
Total interest-bearing
Matured, interest-ceased
_
Bearing no interest:
United States savings stamps
_
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series _
Total

„....

_

| 8 3 ,272, 690 ,800

77,217,689,300
57, 735» 5 2 2 , 5 2 6
Jj-11,601,500
12,889,428,000
., , .
2 6 , 6 5 ^ »7o8, 000
1 4 . 3 5 4 . 073 . 900

lM

,254,2fcL , 3 2 6

41,008,861,900
2 7 2 , 5 3 5 » 7 9 4 ,026
348,^14,^86

^9» 7 6 3 , 3 1 0
1,330 200
1,352,000,000

Z.

1,403,093,510
27^,287,302,022

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

_

.
-._,-,/7* , 0 2 1 , 8 3 6
1.076.100

75,097,936

Grand total outstanding

2 ? 4 , 362,399,958

Balance face amount of obligations issuable under above authority

OjftOQO,"^

Reconcilement with Statement of the Public Debt January 31, 195^
''
Wafe) "-"'•"'
(Daily Statement of the United States Treasury, J a n u a r y 2 9 , 1 9 5 ^

)

""(Date)

Outstanding Total gross public debt
„
Guaranteed obligations not owned.by the Treasury

2 7 ^ , 8*4-8 , 511,6?2
75»097«93C>

Total gross public debt and guaranteed obligations
_
Deduct- other outstanding public debt obligations.not subject to debt limitation .

H-393

Treas .Dept.-PD-Wash, ,D .C.

$06*
2 7 4*,
, 9 923,609',
2 ^ »609»9Q§
^61.209.650
274,362,399,958

STATUTORY DEBT (.IMITATION
January 31. 1 9 ^
A S OF

h

February 10, 1 9 ^
"?*">-€

-/ J
, . <\tlon ^* °^ Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority*" " i
o that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest - bearing:
Treasury bills
$19, 5 H , 566, 000
Certificates of indebtedness
Treasury notes
Z Z Z
Bonds Treasury
Savings (current redemp. value)
Depositary

2 6 , 3 8 6 ,209,000
37.374, 915. 800

83,272,690,800

77 ,217.689,300
5 7 , 735» 5 2 2 , 5 2 6
411,601,500

Investment s e r i e r i Z I Z Z Z I

12,889,428,000

Special FundsCertificates of indebtedness
Treasury notes
Z..1
Total interest-bearing
Matured, interest-ceased

. M .
2 6 , 6 5 4 »788 , 0 0 0
14.354.073.?00

Bearing no interest:
United States sayings stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
Total
Z l

|

148,254,241,326

4l ,008,861, 900
272, 535 , 794,026
348,4l4,486

49,763,310
1,330,200
1,352,000,000

1,403,093,510
274,287,302,022

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

,
.
74 , 021, 836
1,076,100

75,097, 93°

Grand total outstanding

274, 362,399 , 95°
" 3 1 ,OOP ,Ol-rC>

Balance face amount of obligations issuable under above authority .,
Reconcilement with Statement of the Public Debt _.^^^....<„..L._?..^y
(Daily Statement of the United States Treasury,

J a n u a r y 2 9s 1 9 ^ 4
(Data)

j

OutstandingTotal gross public debt

274,848,511,672

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

75»097*936
2 7 4 , 923 ,609 ,608
jOX , c.\Jy tOj\j

274,362,399,958

H-393

STANDARD FORM NO. 64

O^wtf Memorandum
TO

7ROm

* UNITED STATES GOVERNMENT

Mr. Nils A* Lennartson, Assistant to
the Secretary

DATE:

j? eDruar y k, 1954

'- ElUm E. Harris, Assistant National f^~)
Director, U.S. Savings Bonds Divis.

™sSmx&^

SUBJECT:

The attached suggested copy of a release to be
sent to the newspapers of the State of Michigan
was prepared to fulfill the arrangements made
by Mr* James J. Newman with Mr. Frank Isbey and
approved by Mr. Earl 0. Shreve and Mr. W. Randolph
Burgess.
Secretary Humphrey received a letter dated
January 25th from Mr. Isbey and a letter in reply
was drafted by Mr. Burgess, to be dated next
Tuesday, .Tannery 9 r lQffi{-- which has been signed
by Secretary Humphrey.
It has been agreed with Mr. Isbey that the
Treasury will give him this time before his
resignation is made public. This is to allow
him to send out approximately 3,800 personal
letters to people all over the State of Michigan
who have been working with him in the Savings
Bonds program during the period since May of 1941*
It is considered important to the continued sales
in Michigan that this be done.
attachment

y

'<yi

- 2 //

sales in the United States.

•RriHT^uuilejif ul roooind hd.IT bbyil

^Leganlaatleii ye-u dircctech-—My "Very- bcot-wlgtlgs—foi^ your^

Mr. Isbey^ president of the Detroit Fruit Auction
Company, has been active in many phases of civic affairs
in his home city and State.

In 1937 he was appointed manager

of the Michigan State Fair, and,, his management attendance
rose from 180,000 to over 800,000. He was instrumental in
writing the Michigan social security law, and served as
chairman of-the Public Works Planning Commission and as a
member of the Detroit Rapid Transit Commission.
His energy and his organizing and speaking ability/
made him one of the outstanding State chairmen in the nation's
bond program.

OoO

-7 — •^(y

IMMEDIATE RELEASE, tj
W&dnooday,
February tfi, 1954.
ry ip,

'

f

Secretary Humphrey today in accepting the resignation
A

of Frank N. Isbey, Detroit, as chairman of the U.S. Savings
Bonds Committee for Michigan,thanked 1^1 for the nearly
/

A

13 years of service he gave the savings bonds program as
head of the volunteer bond organization of that state.
'if Mr. Isbey had been Michigan state chairman since the inception
of the savings bonds program in May, 1941. He traveled
extensively throughout Michigan, particularly during the
great war loan drives between 1942 and 1946, speaking before
tXAMAMM-f*

hundreds of groups and assoclationsA organizing both these
and business and professional people, ffmd p-.ihlfnir.-1nc: rmrt &
pscmc*^ the sale of \\w T^vam-n^i 'a War Savings Bonds.
Replying to Mr. Isbey's letter of resignation, the
Secretary stated that "in view of your many years of diligent
and effective service, you have earned your release from these
arduous tasks. I want you to know how much the Treasury
appreciates the time and effort which hmrr produced for us
*fo*m*L**yy

such a'g^^. job in your state. Michigan has consistently
A-

been among the first ten in achieving bond quotas and is
currently responsible for approximately six per cent of all

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, February 11, 1954.

H-394

Secretary Humphrey today in accepting with regret
the resignation of Fran.a N. Isbey, Detroit, as chairman
of the U.S. Savings Bonds Committee for Michigan,
thanked Mr. Isbey for the nearly 13 years of service
he gave the savings bonds program as head of ahe volunteer
bond organization of that state.
Mr. Isbey had been Michigan state chairraaia since
the inception of the savings bonds program in May,
1941. He traveled extensively throughout Michigan,
particularly' during the great war I car. drives between
1942 and 1^40,speaking before hundreds of groups and
associations and organizing both these and business
and professional people for the promotion of the sale
of V/ar Savings Bonds.
Replying to Mr. Isbey s letter of resignation,
the Secretary stated that "in view of your raany years
of diligent and effective service, you have earned
your release from these arduous tasks. I want you to
knew how much the Treasury appreciates the tirae and
effort which produced for us such a grand job in ycurstate. Michigan has consistently been among the first
ten in achieving bond quotas and is ca;rrent^y responsible
for approximately six aer cent of all sales in the
United States."
Mr. Isbey, president of the Detroit Fruit auction
Company, has been active in many phases of civic affairs
in his home city and State. In 1937 he was appointed
manager of the Michigan State Fair,and under his rr.anager.ent
attendance rose from 180,000 to over 600,000. He was
instrumental in writing the Michigan social security
law, ar.d served as chairman of the Public Works Planning
Commission and as a member of the Detroit Rapid Transit
Commission.
Has energy and his organizing and speaking ability
made him one of the outstanding State chairmen in the
nation's bond program.
oOo

3&*&5ie!f-6P-

—-?%***

''jL-A-sm,* £

.-mW~S*,~-t

y^tX/^ a , ^

y~

^

***-*>

Secretary Humphry today announced the resignation of A. C. Grant,
ownf^ \x\i\ rnHnngFi of the ford Agency, Las Vegas, .as State Chaiiaan of the
• S. Savings Bonds

Committee for

£ ~ #fe*C*

Kr. Grant,
n^jNovember,
nn.ni»>r was
appointed to the volunteer Savings Bonds
in
1950.
He resigned to become a candidate for state governor**&*

AS*P»**«A

«

Secretary Humphrey, in accepting the resignation, wrote Mr* Grant:
"The Treasury Department is very grateful for the work that yon have
done and we appreciate your offer of future assistance. We believe our
program is of the^aost importance to all Africans and we are glad to know
that you will be continuing to help us with it.0

JULE.

WWW

TREASURY DEPARTMENT
WASHINGTON, D.C. ^C^-r^X

IMMEDIATE RELEASE,
Friday, February 12, 1954.

H-395

Secretary Humphrey today announced the resignation
of A. C, Grant, Las Vegas, Nevada, as Chairman of the
U. S. Savings Bonds Committee for his State.
Mr. Grant was appointed to the volunteer Savings
Bonds Chairmanship in November, 1950. He resigned to
become a candidate for governor of Nevada.
Secretary Humphrey, in accepting the resignation,
wrote Mr. Grant:
"The Treasury Department is very grateful for the
work that you have done and we appreciate your offer
of future assistance.

We believe our program is of

the utmost importance to all Americans and we are
glad to know that you will be continuing to help us
with it."

oOo

-27

- 3 The Bureau will fill future vacancies in plate printer
positions by reinstating, in the order of their seniority
as apprentices, members of the Bureau's former apprentice

Ag

training program before mwrt'nmtoMuffling hiring plate printers J V ^
The training program was ended last July because engineering
improvements in the Bureau made It unlikely that there
would be work for the 70 apprentices participating in it. Other
positions in the Bureau were offered to the 70 apprentices and
all accepted.

The policy of

4|^pTaTeprint er S
will apply to oJt(^

former apprentices still in the Bureau1s employ.

0O0

X

The United States Secret Service concluded that no
oowfcfrtTo counterfeiting problem would be involved in adoption of
the offset plan in view of the conditions under which savings
bonds are issued and redeemed.

Savings bonds are not

transferable, and the Treasury records detailed information
concerning each bond sold, such as the name and address of
the buyer, serial number, date of issue, and name of the
issuing agent. Holders of savings bonds must submit them
to qualified paying agents for redemption. The holders are
required to identify themselves to these agents.
In the unlikely event that counterfeit savings bonds are
presented to a paying agent and escape detection and payment
is made to the owners named on the bonds, the agent will not be
held liable for the erroneous payments provided the regular,
required payment procedure has been observed.

FOR RELEASE A.M. NEWSPAPERS,
Saturday, February 13, 1954.

/

The Treasury Department announced today a permanent
changeover to offset printing in the production of
Series E Savings Bonds of the $25 denomination, at an
estimated yearly saving in excess of $400,000.
Engraved printing of higher denomination E bonds and all
series H, J and K bonds, as well as all marketable bonds,
will be continued.
Application of the offset printing method to savings
bonds production was tested at the Bureau of Engraving and
Printing in January, and the results carefully analyzed.
It was found that it would permit maximum production
of about 480,000 bonds per press per 8-hour day, compared
with about 28,000 for the engraving process. This
program will require a reduction in plate printers and other
employees, totaling about 40 persons.

TREASURY DEPARTMENT
WASHINGTON, D.C
FOR RELEASE A.M. NEWSPAPERS,
Saturday, February 13, 1954.

H-396

The Treasury Department announced today a permanent changeover to offset printing in the production of Series S Savings
Bonds of the $25 denomination, at an estimated yearly saving in
excess of $400,000.
Engraved printing of higher denomination E bonds and all
series H, J and K bonds, as well as all marketable bonds, will
be continued.
Application of the offset printing method to savings bonds
production was tested at the Bureau of Engraving and Printing in
January, and the results carefully analyzed. It was found that
it would permit maximum production of about 480,000 bonds per
press per 8-hour day, compared with about 28,000 for the engraving
process. This program will require a reduction in plate printers
and other employees, totaling about 40 persons.
The United States Secret Service concluded that no counterfeiting problem would be involved in adoption of the offset plan
in view of the conditions under which savings bonds are issued
and redeemed. Savings bonds are not transferable, and the
Treasury records detailed information concerning each bond sold,
such as the name and address of the buyer, serial number, date
of issue, and name of the issuing agent. Holders of savings
bonds must submit them to qualified paying agents for redemption.
The holders are required to identify themselves to these agents.
In the unlikely event that counterfeit savings bonds are
presented to a paying agent and escape detection and payment is
made to the owners named on the bonds, the agent will not be
held liable for the erroneous payments provided the regular,
required payment procedure has been observed.
The Bureau will fill future vacancies in plate printer
positions by reinstating, in the order of their seniority as
apprentices, members of the Bureau's former apprentice training
program before hiring plate printers from the outside. The
training program was ended last July because engineering improvements in the Bureau made it unlikely that there would be work for
the 70 apprentices participating in it. Other positions in the
Bureau were offered to the 70 apprentices and all accepted. The
policy of reinstating them as apprentice plate printers will
apply to all former apprentices oOo
still in the Bureau's employ.

o

wymm mens mriurSKs,
thm Treasury iHtfimrtatsxt mmmmmd

imt mm&m$

7

t*»t ttai i#t*i««*s for tMfr>*OOQjOoo,

or m@reabouts? of 9'1-<W fr@iypisy bUl» to be dated February Id an4 to notm Wat 20,
'lf3$f mhleb mw sfX#£#A en. Mspary 30* utr® mpamd at the ImMml mmrm Baasfca ©a
Fobrwoy IS*
Tfcm dtftatt* of tttis is*™* arm mm . folia** t
?ot«i a-vita* for * ta#iw#<»f,#>© _£ ^ ^ ^ ,
•rotai o m p t a d
- ^ftttttfcooo
(I******* » a * f S W , o o o « * • » * on a
mxicQ^m%ixi:m hmiM &M mmmptmd la
fmtt. at the a w m g e prim atem Whm)
l***age prim
• $f*7w EqathmXM& i*ta of dimmwxmt mp&®&* l*mm par anon
Em3g# of a&ttffliNi ecrapvtitiii* tadUtet
- Ifa795 W^ffimlmt m t « of aU*a«att& a$pr«* 0«8U$ par annum
Kiaji
- 99*7%
•
«
•
•
»
X«0Mtf • «
Low
ted for mt thm 3m p r U t «t* a^apiai}

<75

ttwo.
District

f

Boffton

Saw Tork

31 # 101,000

GleveXaM
ftLa*****
Atlanta*
St. u«&a

tTtaknooo

Kansas City
3aa gTaiHiittco
fGt&I

St»#19$»0Q0
lW#0k8,000
2d,606,000
f,306,000
36,6**000
31,^0,000
6?»?J^i:-;-30
$2flltO,Q07f000

t$»Sto»ooo

16,101,090
S$»&5>»000
26,947,000
$0,iltS,ooo
ai,$3l,ooo
9,206,000
36,6fb»oc*
67,732,000
lifSoo^ihStOOO

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Tuesday, February l63 1934,

H-397

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated February 18 and to mature May 20, 1954, which were offered on
February 10, were opened at the Federal Reserve Banks on February 15
The details of this issue are as follows:
Total applied for - $2,140,007,000
Total accepted
- 1,500,145,000 (includes $206,587,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.741/ Equivalent rate of discount approx.
1.024$ per annum
Range of accepted competitive bids:
High - 99-795 Equivalent rate of discount approx.
0.811$ per annum
Low
- 99.73^ Equivalent rate of discount approx.
I.044$ per annum
(75 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
t
25,654,000
1,581,499,000
31,101,000
55,935,000
27,147,000
50,195,000
187,048,000
28,606,000
9,306,000
36,694,000
39,090,000
67,732,000
$2,140,007,000
0O0

Total
Accepted
$

25,529,000
995,187,000
16,101,000
55,935,000
26,947,000
50,145,000
149,498.000
28,581,000
9,206,000
36,694,000
38,590,000
67,732,000
$1,500,145,000

TREASURY DEPARTMENT
WASHINGTON, D.C

H -3/

RELEASE MORNING NEWSPAPERS,
'

/

'

•

•

-

-

During the month of Docomfcor, 1953>
market transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in net
purchases by the Treasury Department of $615,500.

oOo

TREASURY DEPARTMENT
WASHINGTON, D.C.

:;r:;3?A?zR5,
e:raay: lo, 1954.

•F.:;T:;C-

rrQv»i,rg't t ' ^ a n s a a a i e n s

In

aarscu

securities cf the geve:
iriVSQu-C..' -.-i 1 p ^ ~ ^. ^

d-.-i.
Q"

oOo

- 3 J30Btt

but shall bo 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 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 be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section Uf> 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, v.'hothor on original issue or on subsequent purchas
and the amount actually received either upon sale or redemption at „.:aturity

during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amanded, 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 part5 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 throe decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on February 2$. 1954 3 ^n

cas

h or

other immediately available funds or in a like face amount of Treasury bills
maturing February 2$. 19$k 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 se.eial treatment, as such, under the Internal Revenue Code, or
laws mandatory 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, _February_l6^ 1954

f"j

- ' '

The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 3 or thereabouts, of
in exchange for Treasury bills maturing

91 -day Treasury bills, for cash and
February 25* 1954 3 l n "the amount of

~wr
$ 1.501.170.000 3 "k° ^e issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated

February 25, 1954

, and will mature

May 27, 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
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock o.m., Eastern Standard time, Friday, February 19, 19$k •
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 7ri.ll 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

RELEASE MORNING NEWSPAPERS,
Tuesday, February 16, 1954.

H-399

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 February 25, 1954,
in the amount of 41,501,170,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated February 25, 1954,
and will mature May 27, 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, February 19, 1954.
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 ofthe 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

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 25, 1954, In cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 25, 19541
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 saibject 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 3hall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original Issue or on subsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies
of the circular may be obtained
0O0
from any Federal Reserve Bank or Branch.

^.w-.a 0
MondayA February l$f 19$h*
fh@ Treasury Baparfctraat announced today that final tabulation ot subscription*
for th® recent «K©haKge ottering ahomd #?,012 million for tha mm ene^yeer 1-5/8
percent certificates and |11,167 Billion for ttat new 7~y®ar 9*mymtmMh 2-1/2 percent
bonds, the total of fl8»179 Million Is |l82t million larger than tha figures
announced on tehrmmwy 10*
The final breakdown of thm amh&mge® hy leanee follewar

(lit millions of dollars)

Old Issues

Eligible
tor

Unexchanged
1-5/8$ Ott* 2*1/2% Bond
Total
(1-year) (7*>yr*9 9-®©.)

2-1/4$ Certificates.... 1 f 8,111*

$5,645

• 2,367

I 8,012

\ 102

1,36?

3,233

4,600

75

1-3/8$ Mot©s

4,675

2$ Bond® of 1952-54

5,825

4,083

4,083

l,7it2

2~l/kt Bonds of 1952-55

1,501

1,123

1,125

376

2-1/4$ Boots of 1954-56

681

359

359

322

Total 20,796

7,012

11,167

18,179

2,617

TREASURY DEPARTMENT
141
WASHINGTON, D.C

IMMEDIATE RELEASE,
Monday, February 15, 1954*

H-400

The Treasury Department announced today that final tabulation of subscriptions for the recent exchange offering showed $7,012 million for the
new one-year 1-5/8 percent certificates and $11,167 million for the new 7-year
9-month 2-1/2 percent bonds. The total of $18,179 million is $184 million
larger than the figures announced on February 10*
The final breakdown of the exchanges by issues followsj

(In millions of dollars)
Exchange Subscriptions
for New Issues
Unexchanged
2-1/2$ Bond
1-5/8$ Ctf.
Total
(7-yr., 9-mo.)
(1-year)

Old Issues

Eligible
for
Exchange

2-1/4$ Certificates ...

$ 8,U4

$ 5,645

$ 2,367

.'$8,012

4,675

1,367

3,233

4,600

75

$

102

2% Bonds of 1952-54 ...

5,825

4,083

4,083

1,742

2-1/4$ Bonds of 1952-55

1,501

1,125

1,125

376

2-1/4$ Bonds of 1954-56

681

3$9

359

322

11,167

18,179

2,617

20,796

7,012

- 9 lltUm %®mrd %m dittgouw emd Qa&pemtivmmmma mi mm psrsormel of the
Sarrieo*
Finally* thmra te a spoeial rotijMmaioility 1hm% rmata upo& yam *h©
mrk la thia, the l&rgast of all the vmrldH ports, tern* docks and air fiaMa
handle mora than forty par cent of all this satlo&'a lisports. fhis is tha
actional center of e^ert ability am axperienc© of all kinds is the
business of the Q&stosa®, The Custosai Series here is mdmr the new and
vigoroue loadarahlp of Collector f0* mil and /Vypraisoy Court, %&© ha*a
working vlth ®mm a dmated md hi#ily capabl® mmer aarrloa* m look
to to J>ort of Haw ¥o*Sc to plajr & aa4«r part ia %*ritiag IMs so* cfa&ptar
»•

ia th* long aad dlstia^iateA hiatory of the Omtme iarrlea.

- amwery day, because yem here a fund ei knowledge about it which asm me

duplicated nowhere also. 3ut to guide this process effectively, there

ssust he sincere recognition that chaa«ts are inawltahlew 1m t hi pro sent

ataosphere, those whose points of vlewj^oa thte euhjeet arm dominated ay

traditlaaalian MIHW UP w^Mg=3iiag^HaeWMMI»tl» status aee ere apt
to forfeit what influence their long experience wd&i% otherwise entitle then
to have. - the new a^

xhlrti, I want to pay tribute to the imaginative and helpful spirit in
which the leadership of the B-iaean of Cantons has cooperated and la
cooperating in the teak of simplification. In this they are entitled to,
and I know they will continue to get* the loyal cooperation et the entire
Customs service. /
S n^m
jourth, I cannot emphasize too strongly the isoortance, at all tines/

hoy particularly at this tiase, of the .minteaance ay every one in the Gastoas

Service of the most courteous and cooperative attitude toward the meahers

of the public with whom he deals. Nothing adds aa amah weight to the views

and recommendations of the 3ureasi aa a good iapression on the part of a

,-•7.-

since th#.®i>d of thm.^tha

a«v*oa^|^

an*V«e»*a-«-4fteWftl* tiwndv -a* linat #*<*)* 1**fkl®f!^
etna.* 1946t-:ia mrimm mktmm^a^mhma &mmtmwmd.,tmm*ffl$^^
mm

period* total yorsonnel hat mmm rmdmme*$ mhmmM mmm-M^%%

..^mtil im$

in ovary 3?*®* simoa-. th* v*^*a*l» .|ji I'lMWiHi^ Mi Im ir^aac^. Ik* wo*i4aaf Jt
featarramdst the end of each ..yam* the tocki^waa >%,^r thi^ a£.j»|»s:
aagimtoiS*

low, % a combination of statutory and administrative ohaaffts. It

,•

has atartad downward? and m %mm m rmmmhle

:m$m0&:M

within 12 to 18 aoftth*. ££L) 9*, .- ^^ ..*: .ft^*»*»f^

SY»4

**.

fhia-..«asflsa# is only mm of * good ©any tha| ,| :^*04 cits*«A& rnjtor ttaaa
list * lot of than,. X ^ a M l A life*, mry brtafty to ta*w a taw. am^Lmlom

tmmd

vmm tMrw^^^^^^^^W f***"**"*d*flr exyerience I have had with Oustosis,
first, r@^df€l«a» -of the oonoluaioaa that may .1M reai^djm^hai#ps^^
of the proper lovel of taffiffa« we mm. in %.parl©4 of .elapttftriag i**®*®8** ^
prevdhUNia* Sane StOpa asYf» B*m^)0Pat e*)lsa?t ****** tmhmm* ^

w

second, no on* is hotter .eju»Ufl«aa to .ad?i«t on or^to gal&o this process
thm thoaa.of jom, hoth in and out of tip. aervico, who deal .*£&.. Cat ton*

T0:

v^JL

& This improvement has not of course
been uniform throughout the Service j I
recognize that there is a continuing
problem in the Appraisers Stores which
requires intensive consideration? hut
there is no question that, taking the
Service as a whole, an important corner
has "been turned.

MR. HOSE

~ 6 complexity of the" probl*^ or by a traditional deaire to do things as" they
have alwayt heea'dome, or V the fears homo of"the t#nd*moy"of some
paopl* to eie&ggomte the of foot ©f specific measures either on tariff
protection or on law" enforcement.
Let a* illustrate th»«* points from what hat already happened.
,A

'"'""lb all ©f you know, ttntfl the paeaaat of the Customs Simplification Act

last summer, the Comptroller of Custom* were responsible %y statute ferauin*
lOOy audit of the transactions of the Collector^ $his audit was required
whether tho'good* were dutiable/ or free, and.: whether or not the* part ioalat
transaction involved tmy pay»s»t to the Government. Bvan in transactions that
involved" money, the audit went far beyond anything that is found In commercial
praotioe"" today.': Over some objection from th* diselple* of leaviai things aa
they are andiiaf* already/ he*a, Caajp*** eliminated this reoulrament. What
has been"the resullV
Witaout in "any way jeopardising the revenue, this statutory ehmge baa
permitted *ymor* effective redeployment of personnel trained in liqpidatloa*
Mainly as the result of this* In'tfe* last aim «ontht/?*r th* first time

- 0of rat* 8truotur#a, *4Uda*tio*' of multiple and 0©nfli®tin*s standards
of classification, consideration mi'- change® and the bates at
Valuation of imported article®, aaf oltmination of delays, redtape,
mil similar technical ©heiaoles to ©ffioient cmatomi-lovylag
administration.11
thm axprOisione of the H&nd&ll Report are to me particularly significant
because Its membership was broadly reprei*n*ativ* of so-many different shades
Of opinion regarding'%ajiaaaal* forai^ trade, la my opinion, that Report

Xm£
should be completely convincing to- any one who nmdn xfiaiHa*aa#. that changes
in this field" are tm&er way: and will not be denied.
«QT third iapwwtioa'l* thiol Again, in spite of the difficulty aad - •complexity of the problem, there are a lot of specific things that can be
done to": help almpltfSf and ®pmd up the Customs job. Many of them aeem
tlohnlealt many of them taken separately are not enormously Important? but,
tales' together, they can be of gr*at importance, and wit!, aolve a major
part of the problem that we face, imd we must not be deterred from doing
these specific things either by the apathy that miisht he generated by the

- 4 -

found a m£$&kmmmm degree at unanimity on simplification, low we hava ^t^^Ly

bal^a-«astha report of the Bandall Coamitsioa, and both the majority report

and the minority report of Messrs. Heed and Simpson, while Jttsa^lWltj^L many
f&lCl^y~tm*m** CXA*- Lm^-^im4m£^t*- ^\jtAm^U^^

mXhammma^am^mm on this one. The majority report says:
w

fhe present complexities of customs administration are a

significant deterrent to imports; more importaut^r they create

irritations which are detrimental to our total foreign relations.

Although the United States may be no worse than many other nations
in this regard, there is little excuse for the eoatiauaae* of

unnecessary administrative burdens on international trade."

fhe minority report concurs, without spall ii cation, la these words}
*finally, as the last and perhaps the most Important
topic in the area of general ^graenmt, we find ourselves in
accord with some of the facts, conditions, conclusions and " ^_
reeoi-asaendatlong of the Commission In this area. More spooiflomlly,
we approve the Commission's recommendations with respoct to
simplification of all coassodlty definitions and classifications

- 3have taxm®?

G*~nVbjUObC*A
complicated the clarification problesn, h?

,

^iitrimt ^^li^l^aaa^:
ftft,lN^^^ii^'ftffl^
flfla^aMAMPaaiMffi^ I n Wmmmimf.
- &m&L E&m-&e
ftatiit
iiftthBj^i!i:ft».<MMflfti^ha*toMa^
in j^Ma^'eMi
aiE*a#lalJa? of valuation ***&
-*^^^Ss*' —^*a
^yr*i^w

*^Bmtt^^-".wqp0£*awww%gFm9w^ww0-*9ggii&m^^mm^^*mw^mm^^^F^

e^ralaaasiif %h* pro*l«si ia *fa**iy MqpUaVf$m hav* a seaain^ slaple

fru^iLm.
3

<£** 4d^

fr**ly offered^to all purcha4M^e }ia .umal vholosale faautitl***

that ^ovorns mch of vaat you do. ahaa i found out soaj* of the
that h®l been attributed to that 3eenin©ly simple phrase, 1 was
And yot I have ruao found crnt, by lo^;; vresUii^ with the
provision ..of the Cagtoais Simplification BUi,.ltov hiird it m; to ge^ a
simple and workable substitute. --fa ay first Sii^r*^.^^
proMaiais aa.:liuaK»ft£ly mmmUmmd.mmm ;^^<---.- -• t****.
**> **#oaa iqaa******: ia this* MmmamM the inh@r*mt. difficulty aM
convexity of tlM pa^am* informed oplaio» ia#W® country has developed an
iaafttiamt**!^ at Customs.. procedure® which. In my
opJrttaar *tt* ia-,oa© mm ar another fore* th* chants u*o*stasy to eliminat*
thea*. I hmmm thim iiapreasion on *w*esa| thia^ii^Laet ?amr.^Jartjae*
responsibility of pr***utiPug tha.j^plalA^UcjiU jaa^ .&.*%** on the
Chstoa*.,3i^Lia*mtl^^4«t tOvtha^^tlpi*^ tte Hout* and

I

-3~

am isrprosaion of Custom*.

Countless thousands of other* importod good* of

mm tort into the country, totalling, in valua last maxAn, , .,„,
Many of the**'l^ortors, IVem many of you bare tonight, ware professionals,
!A°£&. 'T^^S&'i^^ C
l.i the huainos®, md

who have a real knowlod^e of instem*

procedures. But many other* wore mmtmwmlm&ammmBm*

whoa* impressions of

Custom* ia gainod is a single transaction or a very few transactions.
particularly at a tlm* like thia, when mah thing* a* tha report of the
mmdmU Qama&mtm brin^l the question of legislation about Customs to the
fore, th* puulio point of *i*w toward Cuatom* will inevitably he of

thm first conviction that 1 have Is that the problem of Custom*
administration is at best a eoapU***** and difficult on*, and that taB>^^Jb|
that there muat be a magic formula that will
all those difficult!** *waf# StfgaHaa«ia^iu

a s Tariff Aet of 1930 1*

a highly eonplieal*d *tatatt with theuiaiida of eJUMslfteetaaa. Sh»** ia
turn depend cm many standards. like component of chief value, chief end use,
and m on. The Reciprocal Tmdm A«p««evmt*4Ma*jteakftarai:

trr^mmm* I M M T * of th* *T '
t regard it a® a real homo* that ygu hmm asked'aa to"**' & M 'fl*l*Et
to t^eak "to th* annual dim*** of your 4**o*iation, which repreaont*' *uoh""a"
fital t*#awk of th» <^#to« Sorvl*** tot y*tt' wMlo lltootltl* privilege
to be here* I hme hem® oomsid^ramy troubled at what to tay %o you. fur
my contact with the Ou*loa* Service aid Its probliss li auly'a llttf* mam
than a ye&r old. Xa that *ho*t apao® of tl*tt' i»V ant I* oi&tttlad tomfool
that ho Ma dJtvolopod a full i*®«3tg teoAoic* of & Service that" ©couple*
*> field aa taahaiaal at yo««f fttth araditlMl* and ftaetloat that ,f©
even beyond th* timo when th* United Stat** mmm Into being a* a isatiea.
Aini ytttj wy-thm^-yhls^m®, it eaomed to mo that there rni^t he
value in prosontlng to ym briefly toni#it erne at th* point* of vi*w
toward th® Custom* S**vt«* that I hmm dm'wmt&pmd in,this yea® that"! hav®
bom dealing with it® problem, Thm public point of view toward th® Service
i« in the last analysl* of rsreat la$a*1atto*» Laat year acre"than 11? million
peopl® crotaad our bordort - a flgura •*!«** to mm^'tMmM^^r^mm'at thm
population of thl* country *»• mid moh mm of the** -had'a contact' with" aM

152
TREASURY DEPARTMENT
Washington
FOR RELEASE AT 7:00 P.M.,
Thursday, February 18, 1954.
Address by Assistant Secretary H. Chapman Rose
at the Annual Dinner and Forum on Customs
Relations of the United States Customs Examiners
Association, Hotel Statler, New York, New York
February 18, 1954.
I regard it as a real honor that you have asked me to be here
tonight to speak to the annual dinner of your Association, which
represents such a vital segment of the Customs Service. And yet,
while I feel it a privilege to be here, I have been considerably
troubled at what to say to you. For my contact with the Customs
Service and its problems is only a little more than a year old.
In that short space of time, no one is entitled to feel that he
has developed a full working knowledge of a Service that occupies
a field as technical as yours, with traditions and functions
that go back even beyond the time when the United States came
into being as a nation.
Even so, however, it has seemed to me that there might be
value in presenting to you briefly tonight some of the points of
view toward the Customs Service that I have developed in this year
that I have been dealing with its problems. The paiblic point of
view toward the Service is in the last analysis of great
importance. Last year more than 117 million people crossed oa*r
borders -- a figure equal to nearly three-quarters of the
population of this country -- and each one of these had a contact
with and an impression of Customs. Countless thousands of others
imported goods of some sort into the country, totaling in value
last year about $11 billion. Many of these importers, like many
of you here tonight, were professionals, who make their living
in the business, and who have a real knowledge of customs
procedures. But many others were amateurs whose impressions of
Caistoms is gained in a single transaction or a very few transactions.
Particularly at a time like this, when such things as the report
H-401
of the Randall Commission bring the question of legislation about
Customs to the fore, the public point of view toward Customs will
inevitably be of controlling importance.

- 2 The first conviction that I have is that the problem of
Customs administration is at best a complicated and difficult
one, and that it is an illusion to think as some people do, that
there must be a magic formula that will sweep all these difficulties away. The Tariff Act of 1930 is a highly complicated
statute with thousands of classifications. These in turn depend
on many standards, like component of chief value, chief end use,
and so on. The Reciprocal Trade Agreements have further
complicated the classification problem oy contributing to the
breakdown of the classification categories. In your own specialty
of valuation and appraisement the problem is equally complex.
You have a seemingly simple phrase "freely offered for sale to all
purchasers **•* in the usual wholesale quantities" that governs
much of what you do. When I found out some of the meanings
that had been attributed to that seemingly simple phrase, I was
amazed. And yet I have also found out, by long wrestling with
the valuation provision of the Customs Simplification Bill, how
hard it was to get a simple and workable substitute. So my
first impression is that your problem is an inherently complicated
one.
My second impression is this: Regardless of the inherent
difficulty and complexity of the problem, informed opinion in
this country has developed an impatience with complexities and
delays of Customs procedures which, in my opinion, will In one
way or another force the changes necessary to eliminate them.
I base this impression on several things: Last year I had the
responsibility of presenting the Administration's point of view
on the Customs Simplification Act to the Committees of the House
and Senate. I found a high degree of unanimity on simplification.
Now we have had the report of the Randall Commission, and both
the majority report and the minority report of Messrs. Reed and
Simpson, while diverging on many points, are in full agreement
on this one. The majority report says:
"The present complexities of customs administration
are a significant deterrent to imports; more importantly
they create irritations which are detrimental to our
total foreign relations. Although the United States may
be no worse than many other nations in this regard, there
is little excuse for the continuance of unnecessary
administrative burdens on international trade."

154
- 3The minority report concurs, without qualification, in these
words:
"Finally, as the last and perhaps the most important
topic in the area of general agreement, we find ourselves
in accord with some of the facts, conditions, conclusions
and recommendations of the Commission In this area
/of tariff and trade policvy7. More specifically, we
approve the Commission's recommendations with respect to
simplification of all commodity definitions and
classifications of rate structures, elimination of
multiple and conflicting standards of classification*
consideration of changes and the bases of valuation of
imported articles, and elimination of delays, redtape,
and similar technical obstacles to efficient customs-levying
administration."
The expressions of the Randall Report are to me particularly
significant because its membership was broadly representative
of so many different shades of opinion regarding our policy toward
foreign trade. In my opinion, that Report should be completely
convincing to any one who needs it that changes in this field
are under way and will not be denied.
My third impression is this: Again, in spite of the
difficulty and complexity of the problem, there are a lot of
specific things that can be done to help simplify and speed up
the Customs job. Many of them seem technical! many of them taken
separately are not enormously Important; but, taken together,
they can be of great importance, and will solve a major part of
the problem that we face. And we must not be deterred from doing
these specific things either by the apathy that might be generated
by the complexity of the problem, or by a traditional desire to
do things as they have always been done, or by the fears borne
of the tendency of some people to exaggerate the effect of
specific measures either on tariff protection or on law enforcement.
Let me illustrate these points from what has already happened.
As all of you know, until the passage of the Customs
Simplification Act last summer, the Comptrollers of Customs were
responsible by statute for a 100% audit of the transactions of the
Collectors of Customs. This audit was required whether the goods
were dutiable or free, and whether or not the particular
transaction involved any payment to the Government. Even in
transactions that involved money, the audit went far beyond anything
that is found in commercial practice today. Over some objection
from the disciples of leaving things as they are and have already
been, Congress eliminated this requirement. What has been the
result?

- 4 Without in any way jeopardizing the revenue, this statutory
change has permitted a more effective redeployment of personnel
trained in liquidation. Mainly as the result of this, in the
last six months for the first time since the end of the war, the
Service-wide backlog of unliquidated entries has shown a downward trend. The level of the workload has gone up radically
since 1946; in various categories it has increased from 50$ to
100$. During the same period, total personnel has been reduced
about one-eighth. Until 1953* In every year since the war,
while productivity increased, the workload increased faster;
and at the end of each year the backlog of unliquidated entries
was bigger than at the beginning. Now, by a combination of
statutory and administrative changes, it has started downward;
and we have a reasonable chance of becoming current within 12
to 18 months. This improvement has not of course been uniform
throughout the Service; I recognize that there is a continuing
problem in the Appraisers Stores which requires intensive consideration; but there is no question that, taking the Service
as a whole, an important corner has been turned.
This example is only one of a good many that I could cite.
But rather than list a lot of them, I should like very briefly
to draw a few conclusions based upon the short but intensive
experience I have had with Customs.
First, regardless of the conclusions that may be reached on
the question of the proper level of tariffs, we are in a period
of simplifying customs procedures. Some steps have been taken;
others will be taken.
Second, no one is better qualified to advise on or to guide
this process than those of you, both in and out of the Service,
who deal with Customs every day, because you have a fund of
knowledge about it which can be duplicated nowhere else. But
to guide this process effectively, there must be sincere
recognition that changes are inevitable. In the present
atmosphere, those whose points of view on this subject are
dominated by traditionalism or a preoccupation with the status
quo are apt to forfeit what influence their long experience
might otherwise entitle them to have.
Third, I want to pay tribute to the imaginative and helpful
spirit in which the leadership of the Bureau of Customs has
cooperated and is cooperating in the task of simplification. In
this they are entitled to, and I know they will continue to get,
the loyal cooperation of the entire Customs Service

1 ZQ
- 5Fourth, I cannot emphasize too strongly the importance, at
all times but particularly at this time, of the maintenance by
every one in the Customs Service of the most courteous and
cooperative attitude toward the members of the public with whom
he deals. Nothing adds as much weight to the views and
recommendations of the Bureau as a good impression on the part
of a listener toward the diligence and cooperativeness of the
personnel of the Service.
Finally, there is a special responsibility that rests upon
you who work in this, the largest of all the world's ports. Your
docks and air fields handle more than forty per cent of all this
nation's imports. This is the national center of expert ability
and experience of all kinds in the business of the Customs. The
Customs Service here is under the new and vigorous leadership of
Collector Dill and Appraiser Couri, who have working with them
a devoted and highly capable career service. We look to the
Port of New York to play a major part in writing this new chapter
in the long and distinguished history of the Customs Service.

0O0

^fiy^

fl

memtmf

aa^taip todar am®mmA.

tbs s*infc*j ** m StmlMJmt&mk

agr****at hmimamn th* United States ant Unit

The Agreement m * signed

% Jjit*asaa4i» tMapmlmmsfmv <m bahalf ft" hi* QstMaum* and the Gamtita
Baservs Bank of Bsru,
Wtdmr the terns of this J k p ^ « i ^ th* united SUtee iaschange
Stabilisation Fund umlertalee^ to purchase Piatwisja solos ip to an aisouat
eq^valent to 012.;; ralllion J'or thm piifj©** of *«ttli*Ja* th*' «aitoti
Statoa dmWm^mm^m

ml mt® at mwimhmm if... th© occasion fur t A is*
r—-yp-4^4—»

should as&i** It is mtoatosd mat ltoWiapH*3sP entered into am
tttth the- Xata^mttooO. llwtoqr laaad ^.sreby that institution
a&maa to mate mm$lmMm

up to |li»5 irtXttsa f®r tli* M * * * pup®*** fli*

toe mgr»*i«at© tosftita* earn {***£&* up to * total sf 1 0 sdlliaa to'
assist fmru ia stahlUatog its -«m»«r*
Obserring that Ps*u ham m,Mt$xmd
p p m t o m^mmx^M^

it* intenmtlonal trade mmd

tmmm imm wmammmtmX

xsstolatioa**

MreteBmyer advised the Treasury of his Omriaatttt's intention to
prmsmrm this freedom hy puroitag ssuaA fXmmmX tmd mmtary
Hi mM

pslistosi
H

mwk g l i d e s m i l mmhlm Peru to mtetain a staong imwafiay

l&toavtlttDBllr «*$ onatsifcuto to tarn's ^Itteato «*Jst*tft of
mm

mlttmtim,

mwhmtm

md to* mttahllabMmt mi a fihmd xato sf wrtasig*,,

Qssrattoas wider thm: Agmmmmt

with tant will ha *!*#*% osawttatfsd

tilth the aetivitiss of th* liitowmtloml. MKBtsiy F w a ia **a*r to oaatoifeutotoths sffbrts of th» Fund to stofcilia* th* aaataafs »*1l*tteiahl|>*
of it*

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE AT 11 A.M. EST
Thursday, February 18, 19$k

H-1402

Secretary Humphrey today announced the signing of a
Stabilization Agreement between the United States and Peru.
The Agreement was signed by Ambassador Berckemeyer on behalf
of his Government and the Central Reserve Bank of Peru.
Under the terms of this Agreement, the United States Exchange
Stabilization Fund undertakes to purchase Peruvian soles up to an
amount equivalent to $12,5 million for the purpose of stabilizing
the United States dollar-Peruvian sol rate of exchange if the
occasion for such use should arise. It is understood that Peru
has also entered into an arrangement with the International Monetary
Fund whereby that institution agrees to make available up to $12,$
million for the same purpose. The two agreements therefore can
provide up to a total of %2$ million to assist Peru in stabilizing
its currency.
Observing that Peru has maintained its international trade
and payments substantially free from governmental restrictions,
Ambassador Berckemeyer advised the Treasury of his Government! s
intention to preserve this freedom by pursuing sound fiscal and
monetary policies. He said such policies will enable Peru to
maintain a strong currency internationally and contribute to Perufs
ultimate objective of exchange rate unification and the establishment of a fixed rate of exchange.
Operations under the Agreement with Peru will be closely
coordinated with the activities of the International Monetary Fund
in order to contribute to the efforts of the Fund to stabilize the
exchange relationships of its members*

oQo

ft -<-/d-3
ffti&ASE mmim

NEHSPAPSRS,
Saturday, February 20, 19$k*
the Treasury Department announced last ***aiag that toe tender* for $1,500,000,000
or thereabouts, of 91-day Treasury bills to be dated February t$ and to mature May ??,
195U, which nere offered on February 16, were opened at th* Federal Reserve Bank* an
February 19.
The detail© of this iaaue are a* follow**
fetal applied far - $2,189,265,000
total accepted
- 1,500,751,000 (include* 1175,508,000 entered on a
neneaapetitiv* basis and accepted ia
tall at tat average price shown below)
Average price
- 99.751 Iqaivalent rat* at discount approx. 0.966* par m a
Range of aeoepted coapetitive bide:
High
low

- 99.795 Equivalent rat* of discount •paras* 0.811$ per armm
- ??.7a8
•
a *
*
•
O.fff* »
•
(ft percent of th* emomat bid for at th* lew price was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
New York
I%iladslphla
Cleveland
Richmond
Atlanta
Qhloage
St. Louis
Minneapolis
Kansas City
^eXl\\W
San Francisco

i
i6,iji»o©o
l»6lt7,82&,OO0
23,331,000
$kt,900,000
@i,501,000
lBi,250,000
193,,92.U,000
36.,0g7,000
7,,31*5,000
h3>,611,000
to,,h38,0O0
,068,000
95.

$

,285,000
•M**,

$afSoo,m,ooo

Total

1M&»000

I 9 0t7 9 jei f 600
8,331,000
61,900,000
7,501,000
16,7$6,0Q0
159,26^,000
tS,*77,O0O
7,1*5,030
U2,06l,000
35,638,000
95,OiilA,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

NC?-?'/

1 rq
—. v-- \J

RELEASE MORNING NEWSPAPERS,
Saturday, February 20, 1954.

H-403

The Treasury Department announced last evening that the tenders
for $1,500,000/000, or thereabouts, of 91-day Treasury bills to be
dated February 25 and to mature May 27, 195*1, which itfere offered on
February 16, were opened at the Federal Reserve Banks on February 19.
The details of this issue are as follows:
Total applied for - $2,189,285,000
Total accepted
- 1,500,751,000 (includes $175,508,000
entered on a noncompetitive
basis and accepted in full at
the average price shown
below)
Average price
- 99.751 Equivalent rate of discount approx.
0.986$ per annum
Range of accepted competitive bids:
High - 99.795 Equivalent rate of discount approx.
0.811$ per annum
Low
- 99.748 Equivalent rate of discount approx.
0.997$ per annum
(92 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 18,834,000 $ 14,254,000
New York
1,647,026,000
Philadelphia
23,331,000
Cleveland
64,900,000
Richmond
8,501,000
Atlanta
18,250,000
Chicago
193,924,000
St0 Louis
28,057,000
Minneapolis
7,345,000
Kansas City
43,611,000
Dallas
40,438,000
San Francisco
95*068,000
TOTAL $2,189,285,000 $1,500,751,000
0O0

Accepted
1,027,366,000
8,331,000
61,900,000
7,501,000
16,750,000
159,284,000
25,477,000
7,145,000
42,061,000
35,638,000
95,044,000

- 2 -

Mr. Brumder is a graduate of Princeton and the Harvard
Business School. He is president and director of the
Wisconsin Bankshares Corporation, as well as director of
Press Steel Tank Company, Waukesha Tank Company, Freeman
Chemical Corporation, and the Robert A. Johnston Company.

0O0

IMMEDIATE R2LEASE
**-*y

//- ^ 0 ^
1

^e^vt^*-^ -^^^

^ *a f *f/-M.

Secretary Humphrey today announced the appointment of William
Brumder, president and chairman of the board of the First Wisconsin
National Bank of Milwaukee, as State Chairman of the U. S. Savings
Bonds Committee for Wisconsin.
Mr. Brumder succeeds William Taylor, who because of 111 health
resigned both the State Savings Bonds chairmanship and the
presidency of the First Wisconsin National. Mr. Brumder succeeded
Mr. Taylor in the bank presidency, also.
In accepting Mr. TaylorTs resignation, Secretary Humphrey
expressed the warm appreciation of the Treasury for the public
service he has rendered in the Savings Bonds program since his
appointment in January, 1951.
In a letter to the new Wisconsin State Chairman, Secretary
Humphrey said:
"We at the Treasury are delighted to learn of your willingness
to assume the important volunteer role as State Chairman of our
Savings Bonds program for the State of Wisconsin.

This program

is important to us in our determination to achieve a sound and
honest dollar, and we welcome you to our team."
Mr. Brumder, who began his banking career in 1928 as a teller
at the Merchants and Farmers State Bank, Milwaukee, Is the tenth
president of the First Wisconsin.

Transferring to the First

Wisconsin in 1929, he was elected assistant cashier in 1932,
assistant vice-president in 1935, vice-president in 1936, senior
vice-president in 1949, chairman of the board in 1950.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, February 23, 1954.

H-404

Secretary Humphrey today announced the appointment of
William G. Brumder, president and chairman of the board of the
First Wisconsin National Bank of Milwaukee, as State Chairman of
the U. S. Savings Eonds Committee for Wisconsin,
Mr. Brumder succeeds William Taylor, who because of ill
health resigned both the State Savings Bonds chairmanship and the
presidency of the First Wisconsin National. Mr. Brumder succeeded
Mr. Taylor in the bank presidency, also.
In accepting Mr, Taylor's resignation, Secretary Humphrey
expressed the warm appreciation of the Treasury for the public
service he has rendered in the Savings Bonds program since his
appointment in January, 1951.
In a letter to the new Wisconsin State Chairman, Secretary
Humphrey said:
"We at the Treasury are delighted to learn of your willingness
to assume the important volunteer role as State Chairman of our
Savings Bonds program for the State of Wisconsin. This program
is important to us In our determination to achieve a sound and
honest dollar, and we welcome you to our team."
Mr. Brumder, who began his banking career in 1928 as a teller
at the Merchants and Farmers State Bank, Milwaukee, is the tenth
president of the First Wisconsin. Transferring to the First
Wisconsin in 1929, he was elected assistant cashier in 1932,
assistant vice-president in 1935, vice-president in 1936, senior
vice-president in 1949, chairman of the board in 1950.
Mr. Brumder is a graduate of Princeton and the Harvard
Business School. He is president and director of the Wisconsin
Bankshares Corporation, as well as director of Press Steel Tank
Company, Waukesha Tank Company, Freeman Chemical Corporation, and
the Robert A. Johnston Company.

oOo

- 3-

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 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 cr»/nur 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, ivhathcr on original issue or on subsequent purchase
and the amount actually received either upon sale or redemption at maturity

during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, as amended, and this notice, prescribe the 'teres 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 Yd.Il 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
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on March k, 19$k , i*1 cash or

xscx
other immediately available funds or in a like face amount of Treasury bills
maturing March k, 19$k • Cash and exchange tenders will receive equal
— — ^ m
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,

KStMlHftXX
XXEXX
A s

TREASURY aEPARTlaSNT
Washington

X\^

FOR RELEASE, MORlalaal NEWSPAPERS,
Thursday, Fabroary 2$9 19$k

~~

" W

"—

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 March k. 195k 3

in

the amount of

§ 1,500,262,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated March k9 195k , and. will mature June 3. 195k , when the face

™~W

g^b

amount will be payable v/ithout interest. They will be issued in bearer form only,
and in denominations of &1,000, $5,000, $10,000, #100,000, ,$500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern standard time, Monday, March 1, 195k

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 companies and from responsible and. recognized
dealers in investment securities. Tenders from others must bo accompanied by

RELEASE MORNING NEWSPAPERS,
Thursday, February 25, 1954.

H-405

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 March 4, 1954,
in the amount of $1,500,262,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 4, 1954,
and will mature June 3, 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, March 1, 1954.
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 ofthe 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
accepted
$200,000 or
in full
less without
at the average
stated price from
(in three
any one
decimals)
bidder will
of accepted
be

- 2competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 4, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 4, 1954.
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 194l, the
amount of discount at which bills issued hereunder are sold shall not
be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for
such bills, whether on original issue or on saibsequent 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
oOo
from any Federal Reserve Bank or Branch.

• 2 Mm $mm

mM

fclm

mM

ugain Wmt

ma mm

detemtowl t©

ocntlnua is aato tax cate&tleiia £rat timm to tiaa and to

immm

tmm itwmm to tte poppa** for th^a to q p m * far ttnaaalvaa %m%*%»
tten hav© tta jtov*rnnaii& fpnni It for t l m , .$mt $m rapidly as
fmrtter aadaetlaiia mm

jmtMlml*

tkmteJUUnp
teUava la mmm&m
to

out

tlsis vital taak la a way ttet.totAflto all a*N»*4p&a and «wr
ecaiafc^., Bufe ve will ^ ^ « ^ » l r ,€^0«efelattoft*tntttwaaaa
®X-

in exesiptiaia-3 t&t&t will thro-if lis b&ek Into sijfesto^^JLftl
ftaflelt flj*Keli* *tlafc m m o * to' JaofeUtta* at tba atfaaaafc
ttaa BJM wixieh «a have been working so hard to overcoroe-.

asaaasito& to total! ^tHl©fisi mat t$E8p$irfW& nUH JMiMt. to lt#
correct-aon olk many ox the tax'hm'-dmhlpsmoat abuses jfem
ablate tfoay torn tufftm* la toa faafe* & ^ vatoaaa of ttela
hu§p araouait of m o n ^ foi' the people to topa tills year,
the whole 'pTQzrmh Is atoa$a<r a £ U mm stimulating to the
aconongr aa$ «tll to att&in toa H a l t * mi mmA

tixamelaX

aamgoiMHife ableh 1® ea&anl&al to fui'thar j*rospr@,®& for tsha
lfctSan*a watfa*a.

For Mmlmmm

{Draft of
2:30 P.m.. %/m/^)
at iiOH p.a,, Thursday, February 35 # 195% \-

(
t

A

X»

Tto Administration*a tax pro§ra» has sot toea changed.
"to must pay tto M i l for the aoat of oar national security.
This cost 1* coming dmm tot la still very high, sa& la the
reaaoa why taxes must aoatlaa* to resa&Ia relatively high until
g^ifemmeat apaadlag man he fartfeer Ym**mm€ with aafety *
fax eat* trill re 1 rasa aore tbaa $6§ feillloa to tto people
this year. I M i has already toea partly accompli abed, by
radaetloa of ©war #3 Mlllsa la ladivldmal iaae* effeetlye

^

January I, 195%, *ad by ells&aatloa of tto universally e^adesaed^
exeess profit* taa of alaaat ft feimaa. /-'it ^
*b# Ways asd mam

l

? r 4^«^

*5

OaaaULtto*, *a*p*Ntlag'vitb tto treasury^/

atoff, b&a toaa working coatiaaoaaly oa^atongea ia tto tax
system whfeh will reaalt la further redactions that will mgouat
t© soaietblag aore tliaa aa additloa&l $l| billloa. Tbla work,
after weeto of bearings aact aoatto of study, la almost coaplated
and will to re M y for flaal gon^resalomal declaloa aoea* h tout
two -tblrda mf tbe aitfltioasl raliaf will go dlreetly to alllioas
af ladlvldual taxpayers aafferlag fro® apaalal tordafeips aad
u&falr t&xea. About oaa-tklrd of tbe total amount will toaaflt
all i M * l m a l b A b y a^fclaa aor* Joba; by Saareeaiag tto efficiency
of our tmmn$

alues aad factor lea; mad by laereaalag tto deauiid

for ttolr prodaeta*
fbia total tax redaatloa of aore tbaa $£# blllloa mm he
•oeoapliatod, we believe, sabatoatially vitbla tbe lialto of tto
Fre*Ideat?a props*** budget.

TREASURY DEPARTMENT
1£Q
WASHINGTON, D.C.

FOR RELEASE AT 6:00 P.M.,
Thursday, February 25, 195^.

H-406

STATEMENT BY SECRETARY HUMPHREY:
The Administration^ tax program has not been changed.
We must pay the bill for the cost of our national security.
This cost is coming down but is still very high, and is the
reason why taxes must continue to remain relatively high until
government spending can be further reduced with safety,
Tax cuts will release more than $6-1/2 billion to the people
this year. This has already been partly accomplished, by
reduction of over $3 billion in individual taxes effective
January 1, 195^.* and by elimination of the universally condemned
excess profits tax of almost $2 billion.
The Ways and Means Committee, cooperating with the Treasury
staff; has been working continuously on the Administration's
program to select the most effective ways to promote the prosperity
of all the people. The proposed changes in the tax system will
result in further reductions that will amount to something more
than an additional $1-1/2 billion. This work, after weeks of
hearings and months of study, is almost completed and will be
ready for final Congressional decision soon. About two-thirds of
the additional relief will go directly to millions of individual
taxpayers suffering from special hardships and unfair taxes.
About one-third of the total amount will benefit all individuals
by strengthening incentives; by making more jobs; by increasing
the efficiency of our farms, mines and factories; and by increasing
the demand for their products.
This total tax reduction of more than $6-1/2 billion can be
accomplished, we believe, substantially within the limits of the
President's proposed budget.

-^

\*~

\MT

- 2 We have said time and again that we are determined to
continue to make tax reductions from time to time and to return
tax money to the people, for them to spend for themselves rather
than have the Government spend it for them, just as rapidly as
further reductions are justified. We believe in carrying out
this vital task in a way that will bring permanent benefit to
all our people and our country. But we will vigorously oppose
blanket increases in exemptions that will throw us back into
substantial deficit financing which cannot be justified at the
present time and which we have been working so hard to overcome.
When the Ways and Means Committee's proposed bill is
presented in detail millions of taxpayers will find in it,
correction of many of the tax hardships and abuses from which
they have suffered in the past. The release of this huge amount
of money for the people to have this year, when the whole program
is adopted, will be stimulating to the economy and will be within
the limits of sound financial management which is essential to
further progress for the Nation's welfare.

0O0

~ § When tto lays aad Means Committee's proposed bill is
presented ia detail millions of taxpayers will find ia it,
correction of many of tbe tax hardships aad abuses from which
they have suffered la tto past. Thm release of this huge amount
of money for tto people to have this year, when tto whole program
is adopted, will to stimulating to tto economy aad will to within
the limits of sound financial management which is essential to
further progress for tto Nation's welfare.
It*s our job sow, it's tto job of this generation to not
oaly pay its owa bills but to so handle our country** affairs
that we continually make progress toward real peace ia tto world,
aad as we progress toward peace la tto world we tore at home
must progress with tto inevitable transition from war to peace,
from jobs making tools for killing to jobs making peaceful life
more and more worth while.

We have said time and again that we are determined to
continue to male* tax reductions from time to time and to return
tax money to tto people, for them to spend for themselves rather
than tow* tto Government spend it for them, just as rapidly as
further reductions are justified, to believe la carrying oat
this vital task in a way that will bring permanent benefit to
all our people and our country.

But we will vigorously oppose

blanket increases in exemptions that will throw us bade Into
substantial deficit financing which cannot to justified at tto
present time and which we tow* been working so hard to overcome.
m e n considering just what blanket increases in exemptions
would do, we must note exactly what tto rmimmmm losses would
to* m e toy fact is that for each $100 increase in exemptions
above tto present $600 per person there Is a loss in revenue to
tto Government of $2§ billion a year.

So that an increase this

year to $800 ia personal exemption, as has toea suggested, would
result in an additional deficit of five billion dollars In complete
reversal of all that we have done toward sound financial management of tto Government's affairs.
I do not believe that tto American public wants its
Government to rmver&m itself, to shirk Its current responsibilites
and to pass on to future generations, our children aad our grandchildren, the costs that we ourselves should currently bear.

~ 4 always anticipate tto reduction of government expenditures and
begin to transfer billions of dollars, which tto government will
not to spending* back to tto taxpayers so there will not to any
audden dislocation resulting from the lack of these dollars being
available to to put into tto nation's mmm^^m

stream.

In that

way we help to maintain stability.

and toans Committee in cooperation with tto Treasury will to ready
for final Congressional decision within tto next few days. This
bill is tto result of months of long study which included tto
m&m^mf^&ejmtem-

life.

9jHfm9wat0^fi0:wtm^

m^awM

mmtmmmmiajmmk m&mmmBa

aipiNi*

^m^am^m^^mf'wti a ^ a»-*a* ^^•Hr%^'»wNwF^iiti*"**'

a**,s>' «wiiaa (Hfc"*a»j»a

'iaaa*rtm»sa^w

ap**m>

This tax revision program will help tto nation make the

transition to a period of less costly military preparedness without serious interruption in our economic growth.

About two-thirds

of tto $1| billion relief from this tax revision bill will go
directly to millions of individual taxpayers suffering from
special hardships and unfair taxes, about one-third will benefit
all individuals by strengthening Incentives, by making more jobs,
by increasing tto efficiency of our farms, mines and factories,
and by increasing tto demand for the products of fuller and
better peaceful living.
This total tax reduction of more than $6| billion can to
accomplished, we believe, substantially within tto Halts of
the President's proposed budget, and without increasing deficit
financing except to approximately tto amounts additionally
collected for the Government's trust funds.

- 3economic growth. I feel today, aa tto President sali in
fitting tto economic report in January, that there ia
x^n/the accomplishment of this transition with a minimum of

Justifies confidence In tto future.
significance

Of aartisalar aaaaara to mm, and a main reason for ay
confidence ia tto future, la tto Jfetfjasftaatlaa's tax
Changes vhich have already toea put lata effect sad others which
have toea reoomaeaded to to made ia tto tax structure contribute
the creation of new jobs for better fuller peaceful living to replace the declining jol
death,

outlines of tto
Administration's tax program have mat toea changed, despite g-ssgr
"

±ai^zg^^:^ey^^-^^dr
:

*

:

la receat ^^* Jyli^ K^^
™
In tto past twelWaoatto this Jtdalaistr&tion has eat more * ^ S L
current and future

< 1
than $12 billion from aatlclpatedigoirernmeat spending. Tbla re- ^ *^*

due 11 on la pfOftesad spending made possible tto tax cats oa
January 1. Ttoae cuts are now leaving with tto taxpayers aore than
$3 billion a year which formerly waa spent by tto government.
Farther changes la tbe tax system being worked oat between the
Treasury and the May* mmd. Means Committer over reeaat months will,
wton eancted, provide farther reductions that will amount to something more than aa additional $l| billion.
Thus aore than fSJ billion will to released to tto people by
tax aate.ttta'fwW.uffela la a tremendous mm of money which la
left in the pocket books and

toiag/^raasferred to tto purchasing power of Bill lone of iaarlenaa*
We are cutting taxes even though w# have not arrived at a
budget balance. There la a, vary good reason for tbla. 'to auat

Thia,with tto xa&uetleas which are being wmdm am a result of the
look11 In defense and tto greater ei^haeis on tto use ami effectiveness
of mm weapons has permitted substantial deductions in tto expenditures
required in the coning year*

However, the costs me still high mod about

seventy cents out of every dollar of tax money collected from the people
still is being spest for our e o B e e t l w security* Mdmd to this Is also
tbe continuing costs which we wmt next hear for tto expenditures made in
past wars which were not paid for currently aa tto money was spent bat
which was then borrowed and now ia a caitinuing charge against us and
burden upon future generations. J Enough of this deficit spending has
already been done arid we mast
XBdxicjx±fe±fectoaiE see to it that we in tarn avoid more and more deficit
•

•

•

\

financing and keep our present^ taxes sufficiently high to pay-as-we-go
to the greatest p a s s i b l e ^ 3 ^ n ^ « t 4 t o ^ we
* will not pam
•burdened future generations which our children
will have to pay tor us*- y$a are now passing through a
period of transition, Beither real peace ^ r e a l war* Oar costs of
security mm declining aa the effectiveness of our batter planned security
increases. As fewer men are at work on weapons of war more men must find
employment on products of peace* Men melting guns for killing must
change over to mkiag all meaner of thing® for living* As war jobs
decline new pmamm jobs must be created* \fe is a great transition and
it involves painstaking effort to accomplish it without serious dislocations
being created*

% a ® waamplsjaaafc mm tto change-over continues ©annot be

avoided. The switch cannot in all case® be coir^Mted immediately but by
careful mmiageaant and proper fiscal policies it should be J(cm with tbe
least possible 3nt@rf@rame 2m the dally U v e a of the .gw&miss at our
people.

.2
tod that w# maintain aa economy of such strength and productive
power^Sa^saa continuously support that solitary

will provide .aeeurity fro* at tacit tmm atoaai sad at tto mmmm Umm
to within tto limits of oar economy to support for tto long pull
If necessary. Me are reshaping our defease so that It la act on
a eiisls-tQ-crisls basis, to mm reshaping It aa that It will to
fluid sad continual 1? aodernized^ and/still to althia too 9g*»j£
oar economy to support for aa indefinite aaator of years, act knowing
, if ever, toe critical,
Ta# faww^eaj air mmm^mmwmmtmm "posawjrwyij
idalalstoatloa,s -atfarta mamm

fiscal sj

we mast flad sad maintain that very delicate balance totw
security from atotoMand a afcr#ng economy tore at home.
During tto past year tto shooting war ia Korea has waded
This* of course, mmm mmmm not only a taaakful thing for all
toertoaas ato had lowed ones involved la It, bat provides
on tto financial requireiaents of tto
of-the-aa^aa-^^

'. mil*

also has ^mvldmdr-mamm^-mUH0^

ofAa tto President's economic report to the Congress la
•Tanaaiy-aalAj, this aatlaa can mmkm tto transition to a period of
leas costly preparedness without aarloas interruption la our

a ,..

Iwaarto by Treasury
0eorge M. Humphrey before tto League
of topablleaa Woaaa of tto
'at of Columbia, Chinese Boom, may*
flower tot#l,f*3Jr*a#*a»a.,
, larch 19 M B *
Wililaat*, Frograia Shalraaa
I understand that tto toagaa of Republican Woman of tto
District of CalwsMa la aach llto a f ©rty^iatl|4tate of tto
Satioaal Federation of Republican V<

a Ofato* this la so to-

caase your aeatorship Includes aoaan frto all mf tto fo^ty-alght
atates plus permanent residents of the Matrict. Because you do
represent and tova your roots,immm assy marts of tto seaatsy, I
am especially glad to have the etonce to talk 'with you for a few
its this ^earning about some of tto things tto Administration la
trying to do, with the tope that as tla#

hy you will help us

pass tto information took to tto people la tto vsri
*#*

states from

y

«hi#li\»any^f you have
.Humphrey, of course, is also very glad to to tore today

y

&*vn

la lias with sm^eettoaa- gmm- officers of your League, I would
like to talk for a few moments about some' Idaiaistrstloa problems
and achievements with which X aa |>articuiarly concerned, and then
try t# aaarvar mm fuestteas which you may have.
The Xiaaatoam Idalalatretloa, la Its first year ia office,
has toea working toward the accompllshaeat of two great goals.
fmejr are:
That we have military strength sufficient act only to defend
<xtoyy^ v u ^ nc<dl*
-fa &JUUS
ourselves batata tola mwmmm^ peace througbaat tto worl%

- 5When the Ways and Means Committee's proposed bill is
presented in detail millions of taxpayers will find in it,
correction of many of the tax hardships and abuses from which
they have suffered in the past. The release of this huge amount
of money for the people to have this year, when the whole program
is adopted, will be stimulating to the economy and will be within
the limits of sound financial management which is essential to
further progress for the Nation's welfare.
It's our job now, It's the job of this generation to not
only pay its own bills but to so handle our country's affairs
that we continually make progress toward real peace in the world,
and as we progress toward peace in the world we here at home
must progress with the inevitable transition from war to peace,
from jobs making tools for killing to jobs making peaceful life
more and more worth while.

0O0

- 4This revision bill which has been developed by the Ways
and Means Committee in cooperation with the Treasury will be ready
for final Congressional decision within the next few days. This
bill is the result of months of long study which included the
appearances of hundreds of expert witnesses from all walks of
life. This tax revision program will help the nation make the
transition to a period of less costly military preparedness without serious interruption in our economic growth. About two-thirds
of the $1-1/2 billion relief from this tax revision bill will go
directly to millions of individual taxpayers suffering from
special hardships and unfair taxes. About one-third will benefit
all individuals by strengthening incentives, by making more jobs,
by increasing the efficiency of our farms, mines and factories,
and by increasing the demand for the products of fuller and
better peaceful living.
This total tax reduction of more than $6-1/2 billion can be
accomplished, we believe, substantially within the limits of
the President's proposed budget, and without increasing deficit
financing except to approximately the amounts additionally
collected for the Government's trust fainds.
We have said time and again that we are determined to
continue to make tax reductions from time to time and to return
tax money to the people, for them to spend for themselves rather
than have the Government spend it for them, just as rapidly as
further reductions are justified. We believe in carrying out
this vital task in a way that will bring permanent benefit to
all our people and our country. But we will vigorously oppose
blanket increases in exemptions that will throw us back into
substantial deficit financing which cannot be justified at the
present time and which we have been working so hard to overcome.
When considering just what blanket increases in exemptions
would do, we must note exactly what the revenue losses would
be. The key fact is that for each $100 increase in exemptions
above the present $600 per person there is a loss in revenue to
the Government of $2-1/2 billion a year. So that an increase this
year to $800 in personal exemption, as has been suggested, would
result in an additional deficit of five billion dollars in complete
reversal of all that we have done toward sound financial management of the Government's affairs.
I do not believe that the American public wants its
Government to reverse itself, to shirk its current responsibilities
and to pass on to future generations, our children and our grandchildren, the costs that we ourselves should currently bear.

- 3As the President's economic report to the Congress in
January said, this nation can make the transition to a period of
less costly preparedness without serious interruption in our
economic growth. I feel today, as the President said in transmitting the economic report in January, that there is much that
justifies confidence in the accomplishment of this transition
with a minimum of difficulty.
Of particular significance to me, and a main reason for my
confidence in the future, is the Administration's tax program.
Changes which have already been put into effect and others which
have been recommended to be made In the tax structure contribute
greatly to our confidence in the creation of new jobs for better
fuller peaceful living to replace the declining jobs for making
instruments of death.
The broad outlines of the Administration's tax program have
not been changed, despite suggestions for a different approach
which have been urged in recent days.
In the past twelve months this Administration has cut more
than $12 billion from anticipated current and future government
spending. This reduction in proposed spending made possible the
tax cuts on January 1. These cuts are now leaving with the
taxpayers more than $5 billion a year which formerly was spent
by the government. Further changes in the tax system being worked
out between the Treasury and the Ways and Means Committee over
recent months will, when enacted, provide further reductions that
will amount to something more than an additional $1-1/2 billion.
Thus more than $6-1/2 billion will be released to the people
by tax cuts this year. This is a tremendous sum of money which
is being left In the pocket books and transferred to the purchasing
power of millions of Americans.
We are cutting taxes even though we have not arrived at a
budget balance. There is a very good reason for this. We must
always anticipate the reduction of government expenditures and
begin to transfer billions of dollars, which the government will
not be spending, back to the taxpayers so there will not be any
sudden dislocation resulting from the lack of these dollars being
available to be put into the nation's spending stream. In that
way we help to maintain stability.

- 2 The problems of our posture of defense are related directly
to the Administration's fiscal and economic problems because
we must find and maintain that very delicate balance between
security from attack from abroad and a strong economy here at home.
During the past year the shooting war in Korea has ended.
This, of course, has been not only a thankful thing for all
Americans who had loved ones involved in It, but provides less
drain on the financial requirements of the government.
This with the reductions which are being made as a result of
the "new look" in defense and the greater emphasis on the use and
effectiveness of new weapons has permitted substantial reductions
in the expenditures required in the coming year. However, the
costs are still high and about seventy cents out of every dollar
of tax money collected from the people still is being spent for
our collective security. Added to this is also the continuing
costs which we must now bear for tbe expenditures made in past
wars which were not paid for currently as the money was spent but
which was then borrowed and now is a continuing charge against us
and burden upon future generations.
Enough of this deficit spending has already been done and
we must see to it that we in turn avoid more and more deficit
financing and keep our present taxes sufficiently high to payas-we-go currently to the greatest possible extent. In that way we
will not pass more and more debts on to already-over-burdened future
generations which our children and grand-children will have to pay
for us.
We are now passing through a period of transition. Neither
real peace nor real war. Our costs of security are declining as
the effectiveness of our better planned security increases. As
fewer men are at work on weapons of war more men must find
employment on products of peace. Men making guns for killing must
change over to make all manner of things for living. As war jobs
decline new peace jobs must be created.
It is a great transition and it involves painstaking effort
to accomplish it without serious dislocations being created.
Some unemployment as the change-over continues cannot be avoided.
The switch cannot in all cases be completed immediately but by
careful management and proper fiscal policies it should be done
with the least possible interferance In the daily lives of the
great mass of our people.

Remarks by Treasury Secretary George M. Humphrey
before the League of Republican Women of the
District of Columbia, Chinese Room, Mayflower Hotel,
about 12:15 p.m., Monday, March 1, 1954

As suggested by officers of your League, I would like to talk
for a few moments about some Administration problems and achievements with which I am particularly concerned, and then try to
answer any questions which you may have.
The Eisenhower Administration, in its first year in office,
has been working toward the accomplishment of two great goals.
They are:
That we have military strength sufficient not only to defend
ourselves but also to help bring real peace to all the world.
And that we maintain an economy of such strength and productive power that it can continuously support that military
requirement.
In both defense and foreign relations the Administration has
made great progress in the past twelve months. We have taken
substantial steps toward shaping a posture of defense which will
provide reasonable security from attack from abroad and at the
same time be within the limits of our economy to support for the
long pull if necessary. We are reshaping our defense 'so that it
is not on a crisis-to-crisis basis. We are reshaping it so that
it will be fluid and continually modernized and progressively
stronger and stronger and still be within the limits of our economy
to support for an indefinite number of years, not knowing when, if
ever, the critical moment may appear.
H-407

f

fossday, .uiarch 2, 19$h*

the Treasury Departsaent announced last- evening that tha tender® for $1,500,000,0

or thereabouts., of 91-day Treasury bills to be dated liarch k md to satire June 3

which were offered on February 2$» mere opened at the Federal E@a#rv# B&nke on Mar
The detail? of this issue art as follow©:
Total apcaisa for - ^2922')9'jkl9'J00
Total accepted
- 1,500,798,000

average pries

(inelude* $201#950,000 entered on a
noncompetitive basis and accepted in
f Till at the average price sham helm)
- 9:9.732/ Equivalent rate of discount approx. 1»Q$9$ per annum

Bang© of accepted seBjSStitiv* bliss (Excepting one tender of $85,000)
Higi - 99.752 Equivalent rate of discount approx. 0.981$ per annua
Low
- 99.728
*
»
e
*
a
1.076* « ... *
(k9 percent of th® mm^mt hid for at .ths low price wae accepted)

Federal .Reserve
glstrioi^

Total
Applied for

Total
Accepted

Boston
Hear fork
Philadelphia
Olevelaiad
Hehmond
Atlanta
Ohieago
St. Louis
1 .Inneapolls
KSBSSS' City

t

f

B&j-las

$m Fraaciaeo
TOTAL

33,637*000
1*67**10$,000
35,87k,000

U8,5U,ooo
10,102,000
23,1420,000
223,326,000
17,310,000
8,335,000
15,2U7,000
27,61*0,000
72,222,000
$2,220,811,000

32,627,000
l,Ol6,85o>000
20,87^,000
1*0,033,000
10,102,000
23,216,000
182,766,000
17,089,000
8,63k,000

U5,2M,ooo
25,130,000
72,222,000
$1,500,798,000

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE- MORNING NEWSPAPERS,
Tuesday, March 2S J_954>
_

1
H-408

The Treasury Department announced last evening that the tenders
for $1-500,000,000, or thereabouts, of 91-day Treasury bills to be
dated March b and to mature June 3, 1954, which were offered on
February 25, were opened at the Federal Reserve Banks on March 1.
The details of this issue are as follows:
Total applied for - $2,220,841,000
Total accepted
- 1,500,793,000 (includes $201,950,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
b el cay)
Average pric<
- 99-732/ Equivalent rate of discount approx.
I. 059$ per annum
Range of accepted competitive bids: (excepting one tender of
$85,000)
High
Low

- 99.752 Equivalent rate
0.98l$
- 99.728 Equivalent rate
1.076$

of discount approx.
per annum
of discount approx.
per annum

(49 percent of the amount bid for at the low price was accepted)
Federal Reserve
Pistrict
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL

Total
Applied for
$

33,637,000
1,674,105,000
35,874,000
48,543,000
10,102.000
23,420,000
223,826,000
17,340,000
8,885,000
45,247,000
27,640,000
72,222,000
$2,220,841,000

0O0

Total
Accented
i
32,6^7,000
1,016,853,000
20,874,000
46,033,000
10,102,000
23,216,000
182/766,000
17,089,000
3,6^4,000
45,247,000
25,130,000
72,222,000
$1,500,798,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, March 2, 1954.

H-409

STATEMENT BY TREASURY SECRETARY HUMPHREY:
"We have nothing but the very highest praise for the splendid
cooperation between the Ways and Means Committee, Its staff, and
the Treasury Department, in the months and months of study that
have gone into the preparation of the tax revision program.
"We fully support that part of the bill introduced by
Chairman Reed today extending at present rates those excise taxes
which would otherwise be reduced on April 1 next. But we cannot
support that part of the bill which will reduce other excise
taxes in the amount of approximately $1 billion,
"The Treasury has been prepared for some time to concur in
selective reductions of excises in particular hardship cases
where industries were being badly hurt by especially high rates.
But the broad reduction in excise taxes now proposed in the bill
is more than the Treasury can afford at the present time.
"The carefully developed relief provisions of the general
tax revision bill which the Ways and Means Committee, now has
under consideration, have the full and complete concurrence
of the Treasury. Millions of taxpayers will receive benefits
where relief is most needed, and in the manner best calculated
to encourage initiative and make more and better peace-time jobs.
"The reduction of revenue which this involves is provided
for in the budget, and is all that the Treasury can now afford."

oOo

- 3-

mac

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 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 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. 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 idll 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 YO.11 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 March 11, 195fo 3 ^n

casil or

other immediately available funds or in a like face amount of Treasury bills
maturing March 11, 19$k * Cash and exchange tenders Yri.ll receive equal
—

•

j^asr

**

treatment. Cash adjustments vdll 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 hav.:: any special, treatment, as such, under 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 DEPARTMENT
Washington

\-Jy

FOR RELEASE, HORNING NEWSPAPERS,
Thursday, March k, 1954
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing March 11, 19$k 3
• • ••

$ 1,500,689,000

in

the amount of

——g_v—*^—~~~

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

competitive bidding as hereinafter provided. The bills of this series will be
dated March 11, 195k , and mil mature June 10, 195k , when the face
TOC ijnQm

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m.. Eastern Standard time, Monday, March 8, 195k 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, Ydth 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 companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

1SQ
«L» KJ \MJ

fMENT

:^£:Z7:jM7MMAMT^:.M'.-^MTra^Mv.xi^»iMim^

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, March 4, 1954.

H-410

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 March 11, 1954,
in the amount of $1,500,689,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 11, 1954,
and will mature June 10, 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, March 8, 1954.
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 ofthe 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

- p -

competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 11, 1954,
i n c a s h 0 r other Immediately available funds
or in a like face amount of Treasury bills maturing March 11, 1954.
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 Revenaie 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 saibsequent purchase,
and the amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made, as
ordinary gain or loss.
Treasury Department Circular No. 4l8, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies
of the circular may be obtained
0O0
from any Federal Reserve Bank or Branch.

T|IW$«f*, « » «

% J|p§a

U -. M i t e if ar^.a. ry * K m * « * l tw ^?^**t ft* M i l iii*
•rcriraioaw >'T««te n t H %» «P«I fir *MfeWW 4» Hm^iir* HM!«i(ii Hfc
^Hfe M p w H %i %s .write eie mm^t m *%sil$if$ MMtk Wkh n * idCQr

Wi^g^lm mmm\WSm $N»li$lifPr UP §jMvmm mm irapPPo^WPPPr HH «!» Mr liiJ^Pi£,

thm €««tef^m 1» *£fwr tot Mli#-m ita&§ ttei Mrtpmife mmm>

•

#•

TREASURY DEPARTMENT
WASHINGTON, D.C.
1 Q1
— \J -I.

IMMEDIATE RELEASE,
Thursday, March 4, 1954.

H-411

The Treasury announced today that on Wednesday,
March 10, $1.5 billion of Treasury tax bills will be
offered for cash subscription.

Books will be open for

tenders on Tuesday, March 16, with payment to be made
In cash on Monday, March 22. The bills will mature on
June 24, but may be used at par for payment of taxes
due on June 15.
On March 22, $5.9 billion of tax certificates
mature.

These certificates will be paid off out of

tax receipts and the proceeds of this offering of
Treasury tax bills.

Accordingly, tax .and loan account

credit cannot be given on subscriptions to the new bills.
The decision to offer tax bills at this time
postpones consideration of longer-term financing until
later in the fiscal year.

oOo

KSISASS s.caiiisa 8os»:jyA;-5Ss,

Thm tmamm

Wm^mtmrnt ammmmd

IA

h
lamt %mmim

M~ y

/

1——

tluft tun i w r i m far f1,500,000,00%

or tlnf«4ft»ift*,i at 91*>4®y Tre««iry Mils to t» <t&lM&i Hsn*eh 11 and to mtmm. mm 10

195h, Atoll -mm offered on itantii Ii, mm @$mmd «t the federal li«irT@ Bank® aa Uurtfe
thm i!«t«U* af this ian* mm m follow
Total a»U«i tmm - i2,&&$,?8:?,O0Q
fatal a*N9*eA
- 1^501,139*000

mmmm

?ric@

(lactate* |2tt,1t7O9O0O •ateHNril m a
MimWk&wm&etlti&e hamla and aeetfietud. In
full *t tto» mwriigfc #£&i* shorn li^lar)
- 29.731 ^qulvataat vatm mi dimmmmmt- a^tm* X«066jK per annua

Ii# * 99.752 BqptltilMA fat* «f *i**«iKt *p$rau 0.9634 P®* aamim
Urn
- ff.W
«
• •
*
»

X,0?6| **

(h5 percent «f Vim amnfe ta£4 for at #» tar pgl** wnst &®<S€ptal)
fmdmml mtmmmram T«U1 total

g^tri^t _ _
ttvMfc
itdlaMfebla
e i M W

__
m*' lSl»
rfcnnewoli*
M&mtCity
Oallaa
3an f r W S « w #
YQ&L tt«*68»*9«000 ttffeMJfcOQft

^aM^L—

l£SS^_

.# «bOT*000
1,110,^36,000
' ttl,l§3#OO0
«#J6k#ooo
15,Q&»000
30,390,000
i&»?87»ooo
20,(38,000
10,160,000
3S%3U f OX)
37»O7k,000
0:A3L93,,0?JP

|

IJtWfOOO
1,035,711,000
27,006,000
36,3§,ooo
12,768,000
85,515,000
iy*,sa?foao
B,738,000
9,7fp,000
. 29,7^,0^
27,52Ki#OQ0
_J!*Bl£22

•

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Tuesday, March 9, 19ft4•>

H-412

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated March 11 and to mature June 10, 1954, which were offered on
March 4, were opened at the Federal Reserve Banks on March 8.
The details of this issue are as follows:
$2,268,989,000
1,501,139,000 (includes $213,470,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
99.731 Equivalent rate of discount approx,
Range of accepted competitive bids: 1.066$ per annum
Total applied for
Total accepted

High

- 99.752 Equivalent rate of discount approx.
0*98l$ per annuel
Low
- 99•728 Equivalent rate of discount approx.
1.076$ per annum
(45 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
$
44,177,000
1,710,236,000
41,163,000
42,364,000
15,093,000
30,390,000
193,787,000
20,038,000
10,160,000
35,314,000
37,074,000
893 193,000
$2,268,989,000
0O0

Total
Accepted
$
43,127,000
1,035,711,000
27,008,000
36,364,000
12,768,000
28,515,000
144,887,000
18,738,000
9,750,000
29,764,000
27,524,000
86,983,000
$1,501,139,000

/a-

\.y-y^% H) f
Of v y
iy^
i

/

^bA

The Treasury Department today announced approval of an
order by the Acting Commissioner of Customs reducing from
18 percent to 6 percent the countervailing duties in effect
on imports of wool tops from Uruguay.
The Customs order followed action by the Government
of Uruguay modifying the Uruguayan exchange rate applicable
to wool tops exports from that country to the United States.
Tnp P.ustoft& •i&Hreacft determined that the modification would
reduce from 18 percent to 6 percent the net amount of bounties
or grants paid by the Government to the Uruguayan exporters.
The original order of the Customs Bureau levying the
countervailing duties was issued last May, after determination
that the benefit of a bounty was being received by the
Uruguayan exporters. The Tariff Act of 1930 provides for
countervailing duties equal to the net amount of any bounty
or grant.
The countervailing duties are added to all other
applicable duties and charges.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, March 8, 1954.

H-413

The Treasury Department today announced approval
of an order by the Acting Commissioner of Customs
reducing from 18 percent to 6 percent the countervailing duties in effect on imports of wool tops from
Uruguay,
The Customs order followed action by the Government
of Uruguay modifying the Uruguayan exchange rate
applicable to wool tops exports from that country to
the United States. It has been determined that the
modification would reduce from 18 percent to 6 percent
the net amount of bounties or grants paid by the
Uruguayan Government to the Uruguayan exporters.
The original order of the Customs Bureau levying
the countervailing duties was issued last May, after
determination that the benefit of a bounty was being
received by the Uruguayan exporters. The Tariff Act
of 1930 provides for countervailing duties equal to
the net amount of any bounty or grant.
The countervailing duties are added to all other
applicable duties and charges.

oOo

The Treasury Department today made public a report
of monetary geld transactions with foreign governments and
central banks for the calendar year 1953* For the year as a
whole, the outward movement of monetary gold from the United •
States amounted to Sl,l68 millioni the only U.S. purchase of "ssmi
monetary gold during 1953 was that of $4 million in the fourth m
quarter. These figures may be compared to U.S. sales of

flSUIBuaBW

|331 million and U.S. purchases of $725 million in calendar
1952 • '*&# foeduKfl ;snJi SJ8HUB8

The gold outflow continued at a substantially aojaiuuic
reduced rate in 1954. Net sales in January and February, not
y.t mJUO. for pablic.tia. o» . co^try-by^^^l^^
were |48.1 million and $9*7 million, respectively.
uojjttMi put aim
A table showing quarterly and annual net transactions,
by country, is attached. l?*tt;* MJ suogeatl^

297
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, March 8, 1954.

H-414

The Treasury Department today made public a report
of monetary gold transactions with foreign governments and
central banks for the calendar year 1953» For the year as a
whole, the outward movement of monetary gold from the United
States amounted to ^1,168 million; the only U.S. purchase of
monetary gold during 1953 was that of £4 million in the fourth
quarter. These figures may be compared to U.Se sales of
$331 million and U.S. purchases of £725 million in calendar
1952.
The gold outflow continued at a substantially
reduced rate in 1954. Net sales in January and February, not
yet available for publication on a country-by-country basis,
were $^8.1 million and -9.7 million, respectively.
A table showing quarterly and annual net transactions,
by country, is attached.

1 CQ
mm. V~ <~»

UNITED STATES GOLD TRANSACTIONS FITH FOREIdT COUNTRIES, 1953
(in millions of dollars at -35 per ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases

Country
,' rgentina -^54.9
Belgium
•*
Belgian Congo
Colombia

4th

1st
Quarter
1953

2nd
Quarter
1953

3rd
Quarter

-36. $

-A20.0
-3.4

•A10.0
-12.4

-10.0
-1.1

-4o.o

-5o.o

-.7

-1.8

1953

Quarter
1953

Calendar
1953

-A32.6
-9.9

-^84.8
-84.9
-9.9
-3.5

-3.5

Denmark ••••••••••••••. -13«2
Germany
-30.0
Lebanon ...............
-1.0
Mexico
-28.1
Netherlands •.• • •. -25.0
Norway •••.•.*.......••
-5.0
Portugal .............. -I5f0
Sweden..
,• -10.0

-4o.o
-15.0

-i5.o

-13.2
•130.0
-4.6
-28.1

-15.0

-65.0
-5.0
-59.9
-20,0

-10.0

Switzerland ........... -20.0
Switzerland-Bank for
International
Settlements ........ -23.5
Syria
.
Turkey
-3.3

-25.0

-i5.o

-5.o

-65.0

-8,8

-42.8

-19.2

-94.3

United Kingdom -320.0
Uruguay
Vatican City
/ll Other

-4o.o

Total -^599.1

-10.0
-.2

-

-.5

-.5

-

-3.3

-120.0

-480.0

-5.0
-.1

-.3

4.0
-.9

-<U28.2

-$306.6

-3130,3

Some figures may not add to totals because of rounding.

-i5.o
4.0
-1.5
! -^1,164.2

OP

r

-3 -

by any State, or amy of the possessions ©f the United States, or by any local
taxing authority. For purposes of taxation the amount of discount at which treasury
bill® are originally sold by the United States shall be considered to be interest.
mder Sections 42 and 117 (a) (1) of the Interna! Revenue Code, as amended by
Section 115 of the ievenue Act at 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 ©r 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 incests
tax return only the difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at Maturity, or the amount of income or profits taxes
fald by means of the bills, daring the taxable year for tfhicfa the return is made,
as ordinary gain or loss.
treasury ^apartment Circular lo. 4lS, Hevised, and this notice, preseribe
the terns of the treasury bill® and govern the conditions of their issue. Copies
of the circular may be obtained fro® any Federal leserve Bank or Branch.

-a -

Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be reeeived without deposit tram
incorporated banks and trust companies and from responsible and reeofaiaed
dealers in investment securities, fenders tram others Must be accompanied by
payment of 2 percent of the face amount of Treaeury bills applied for, unless
the tenders are accompanied by an express guaranty at fjayment by an incorporated
bank or trust company.
luaediately after the closing hour, tenders will be opened at the Federal
leeerve Banks and Branches, following which public announcement will be made by
the treasury Bepartment of the amount and priee range of accepted bids, those
submitting tenders will be advised of the acceptance @r rejection thereof, the
Secretary of the treasury expressly reserves the right to accept or rejeet any
or all tenders, in whole or in part, and bis action in any such respect shall
be final. Subject to these reservations, nooeoapatitivei tenders for #200,000
yer

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 leserve Bank on March 22, 1954, in cash or other immediately available funds.
the income derived tram 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 treaeury bills shall not have any
special treatment, as such, under the Internal Eevenue Code, or laws amendatory
or supplementary thereto, the b U l s 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

//-VAT
nntakm namim H^SPAPHS,
Wednesday, aareh 10, l*ff*s,
the treasury Department, by this public notice, invites tenders for #1,500,000, gj
or thereabouts, of 94-day Treasury bills, to be issued en a discount basis under
competitive and noncompetitive bidding as hereinafter provided, the bills of this
series will be designated tax Anticipation Series, they will be dated flares 22,
1954, and will mature June 24, 1954. they will be accepted at face value in payment of income and profits taxes due on June 25, 1954, and to the extent they art
not presented for this purpose the face amount of these bills will be payable
without interest at maturity, taxpayers desiring to apply these bills la payment
of June 15, 1954, income and profits taxes have the privilege of surrendering tbea
to any Federal Reserve Bank or Branch not more than fifteen days before June IS,
1954, mad receiving receipts therefor showing the face amount of the bills so surrendered,

these receipts may be submitted in lieu of the bills on or before

June 15, 1954, to the District Director of Internal Bevenue for the district in
which such taxes are payable, they will be issued In bearer fern only, and In
denominations of. #1,000, f$,0uo, #10,000, #100,000, #$00,0oo, and #1,000,000
(maturity value).
Tendera will be received at Federal Hescrve Banks and Branches up to the
closing hour, two o»clock p.w., Eastern Standard time, tuesday, Harch 16, 1*54.
tenders will not be received at the Treasury Bepartnent, Washington. Each tender
must be for an even multiple of #1,000, and in the ease of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used.

It is urged that tenders bs

made on the printed forms and forwarded In tbo special envelopes which will be
supplied by Federal Reeerve Banks or Branches on application thereCor.

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE

HCRi;nG NE;s?y?ir?.s,

..ednesdayj Karch 10f 1954

B-4l5

The Treasury Department, by this public notice: invites tenders for
tl,50050OO^OC0. or thereabouts^ of 94*day (Treasury tills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided,,
Tiie bills of this series will be designated Tax i.nticipation Series, they will be
dated March 22, 1954, and will nature June 24, 1954© They will be accepted at
face value in payment of income and profits taxes due on June 15, 1954, and to the
extent they are not presented for this purpose the face anoint of these bills will
be payable without interest at maturity « Taxpayers desiring to apply these bills
in payment of June 15, 1954, income and profits taxes have the privilege of sur«
rendering them to any Federal Reserve Bank or Branch not riore than fifteen days
before June 1$. 1954* and receiving receipts therefor showing the face amount of
the bills so surrendered* These receipts may be submitted in lieu of the bills
en or before June 15, 1954, to the District Director of Internal Revenue for the
district in which such taxes are payable© They will be issued in bearer form only,
and in denominations of vl,OG05 ^5,CC0, ^OjOGO, £>100#000, ^5^0*000, and ^OQQ^OOO
(maturity value)©
Tenders will be received at Federal Reserve Banks and Branches up to the
dosing hour, two o'clock p-mQ5 Eastern Standard tine, Tuesday, llarch 16, 1954c
Tenders will not be received at the Treasury Departrsnt, .jashington* Bach tender
must be for an even nultiple 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* go, 99o925e Fractions nay 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 thsreiora
Others than banking institutions will not be permitted to submit tenders ex«
Cfcjpt for their own account,, Tenders will be received without deposit from irrcorporated banks and trust companies and from responsible and recognized dealers
in investment securities* Tenders fron others nust be accompanied by payment of
2 percent of the face amount of Ireasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment oy an incorporated bank or
trust company0
Imnediately 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 bidsc Thoso
suboitting tenders will te advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall
be final* Subject to these reservations, noncompetitive tenders for v20Cf0C0

m 2 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 March 22, 1954, in cash or other immediately available funds.
The income derived from Ireasury 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, Jor 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
shrll 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 lify insurance companies) issued hereunder need include in his income tax
return only the difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity, or the amount of income or profits taxes
paid by means of the bills, during the taxable year for which the return is made,
as ordinary gain or loss.
Treasury Department Circular No, 4l8, Revised, 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

STATUTORY DEBT LIMITATION
AS OF lahjre^eyjaj^^

March 10, 1954

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 exceedin the aggregate $275,000,000,000
(Act of June 26, 1946; .U.S.C, title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as.its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation;:
Total face amount that may be outstanding at any one time
$ 2 7 5 , 0 0 0 . 0 0 0 000
Outstanding
Obligations.issued under Second Liberty.Bond Act, as amended
Interest r bearing:
Treasury bills .......
$ 19 , 510 , 305 , 000
Certificates of indebtedness
2$ , 2 7 7 t 6 1 7 » 0 0 0
Treasury notes
..'
32,753»56l1000
Bonds Treasury

8 2 , 749 , 870 , 500

Savings (current redemp. value)^

57» 797*437*344

Depositary
Investment series

410,385,500
12,870,308,000

Special FundsCertificates of indebtedness
Treasury notes
Total interest-bearing

...1.

Matured, interest-ceased

26,704,511*000
14,365,551*900

,

Bearing no.interest:
Un i ted States saVrngs stamp s
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series

Total

$77,541,483,000

153,828,001,344

41,070,062,900
2 7 2 , 4 3 9 » jn( » 2 4 4
379»

Oy2,O/O

50 * 2 7 " , 3 3 ^
3_ 3 2 0 , 8 8 9
1,352,000*000

III...

1*403,597*223

274,222,837,3^5

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

n.i,s hatt
75,946,40b
1.064»975

771OH1461

274 299 848 806
Grand total outstanding
Balance face amount of obligations issuable under above authority

1 ! ZZl
! . |
fOU,xpX,lyT|

Reconcilement with Statement of the Public Debt JFebruaxy 28, 1954
fZ)"£t'e)'

••

(Daily Statement of the United States Treasury, F e b r u a r y 2 6 , 1 9 5 z
'"(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

)

274,7*81,539,1^0
77*0-Ll»tK>i'
2 ? 4 , 8 5 8 , 55® 1 ®®*
fjb.7^1. ('J

274,299,848,806

H-416

STATUTORY DEBT LIMITATION
February 28, 1954
AS 0F

March 1 0 , 1 9 5 ^

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C, title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
_
Treasury bills
$ 1 9 , 5 1 0 , 3 0 5 .000
Certificates of indebtedness
2 5 , 2 7 7 , 617» 0 0 0
Treasury notes
I I
32,753*^1,000
Bonds Treasury

...

? ? f

^

5 7 , 797 ,437,344

Depositary
Investment series

410,385,500
12,870,308,000

Special FundsCertificates of indebtedness
-Treasury notes

.
.
26,704,511,000
14,365,551,900

Total interest-bearing

1 5 3 ,828 , 0 0 1 , 3 4 4

4 l ,070 , 0 6 2 , 9 0 0
272 , 439 , 547 ,244

Matured, interest-ceased

J (9»fc>9<£, O (O

(j

Bearing no interest:
United States savings stamps
Excess profits tax refund bonds _
Special notes of the United States:
Internafl Monetary Fund series

II

50,276,334
1,320,889
1,352,000,000

,

,
1,403,597,223

274,222,837,345

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

, ^ 3 , 000

8 2 , 749, 870 , 500

Savings (current redemp. value) _

Total

$

„_

(

. , . -^
7^,946,406
1.064.975

77,011,461

274,299,848,806

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt February 28, 19^4
Tb'nt'e) "
(Daily Statement of the United States Treasury, F e b r u a r y 2 6 , l ^ Z *
(Dale)
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

f UU ,ljl,194

)

2 ? 4 , 78l , 5 3 9 ,l40
77»0H»461
2 7 4 , 8 5 8 , 550 ,601
558i 7 0 1 . 7 9 5

274,299,848,806

H-416

- 3-

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

or interest thereof by any State, or any of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941* the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, vhethc-r on ori^nal 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.
Revised
Treasury Department Circular No. 418, &»xxgxgggg5 and this notice, prescribe tho 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 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-compctitivc 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 March 18, 1954 , in cash or
—

"/vrr*

'——*

other immediately available funds or in a like face amount of Treasury bills
maturing March 18, 1954 • Cash and exchange tenders will receive equal
1

'

' V"^>

\

II

i

i

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 so.cial 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

H'V-1

FOR RELEASE, MORNING NEWSPAPERS,
marsdaj, March 11,_1954_ _ •
BOOK

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 March 18, 1954 , in the amount of
$1,500,538,000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated March 18, 1954 , and will mature June 17, 1954 , when the face
—•

" " * " ~.lrfA
gi m m

'

,

11 •

\^ >•

> '1

l'}—\
M M

1 . - • 1. .1 1

T ™

amount will be payable without interest. They wj.ll be issued in bearer form only,
and in denominations of $1,000, $5*000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, March 15, 1954
11

~~ " ' '.tx^.\ ' '

Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

209

TREASURY DEPARTMENT
WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Thursday, March 11, 1954.

H-417

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 March 18, 1954,
in the amount of $1,500,538,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 18, 1954,
and will mature June 17, 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, 410,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, March 15, 1954.
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 ofthe 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

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 18, 1954,
In cash or other immediately available funds
or In a like face amount of Treasury bills maturing March 18 1954
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) (:b) of the Internal Revenue
Code, as ajnended 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
0O0
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

IMMEDIATE RELEASE
Wednesday, March 1 0 , 1954

Treasury Department
Washington
H-418

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 February 27, 1954, inclusive, as follows:

Commodity

Whole milk, fresh or sour .........

Period and Quantity

Calendar year

J Unit
t of
:
Qttaatity

3,000,000

Gallon

s

Imports
• as of
:February 71. -^
2,7l6

Cream. ... Calendar year 1,500,000 Gallon 112
Nov. 1, 1953Butter

50,000,000

Pound

33,950,386

Pound

527,447

March 31, 1954
Fish, fresh or frozen, filleted
etc., cod, haddock, hake, pollock, cask, and rosefish ........ Calendar year
White or Irish potatoes:
certified seed
other

12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

Quota Filled (1)
68,800,804
Qudta Filled

Cattle, less than 200 Lbs. each .. 12 months from 200,000 Head 4,486
April 1, 1953
Cattle, 700 pounds or more each Jan. 1, 1954(other than dairy cows)
Mar. 31, 1954

120,000

Head

4,906

Walnuts Calendar year 5,000,000 Pound 1,043,789
Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000

Pound

5,852,438

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

6,320

80,000,000 Pound

1,531,090

Peanut Oil 12 months from
July 1, 1953

Oats, hulled and uhhulled and un- Dec. 23, 1953- ,
hulled ground
Sept. 30, 1954
2,500,000

Bushel

2,465,367

(l) Imports for consumption at the quota rate are limited to 8,1*67,597 pounds
during the first three months of the calendar year»
•?f Imports through March 9, 1954.

01 1
t_ -L J.

M E D I A T E RELEASE
'ednesday, March 10, 1954

Treasury Department
Washington
H-418

The Bureau of Customs announced today preliminary figures showing the imports
consumption of the commodities listed below within quota limitations from the
ginning of the quota periods to February 27, 1954, inclusive, as follows:

Commodity

>le milk, fresh or sour .........

Period and Quantity

Calendar year

3,000,000

* Unit
t of
iQnantity

:

Imports
-as of
8February 27P__1954
2,716

Gallon

jam • Calendar year

1,500,000 Gallon

112

Nov. 1, 1953tter

50,000,000 Pound

527,447

33,950,386

Quota Filled (1)

March 31, 1954
sh, fresh or frozen, filleted
>yetc., cod, haddock, hake, pol"lock, cusk, and rosefish

Calendar year

|ite or Irish potatoes:
^certified seed
other

12 months from 150,000,000 Pound
Sept. 15, 1953 60,000,000 Pound

68,800,804
Quota Filled

12 months from
April 1, 1953

4,486

ttle, less than 200 Lbs. each .

Pound

200,000 Head

Jan. 1, 1954Mar. 31, 1954

120,000 Head

4,906

Calendar year

5,000,000 Pound

1,043,789

nonds, shelled, blanched,
.basted, or otherwise prepared
'-preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

5,852,438

sanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not including peanut butter)

12 months from
July 1, 1953

1,709,000 Pound

y(ttle, 700 pounds or more each
(other than dairy cows)
Lnuts

janut Oil

12 months from
80,000,000 Pound
July 1, 1953

jts, hulled and unhulled and un- Dec. 23, 1953Sept. 30, 1954
hulled ground

2,500,000

Bushel

6,320

1,531,090

2,465,367

rpFrnports for consumption at the quota rate are limited to 8,487,597 pounds
during the first three months of the calendar year»
• Imoorts through March 9, 1954.

•n2—

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! United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys

Country of Origin
United Kingdom
oanaca • . . .
France . . . .
British India ,
Netherlands . <
Switzerland • «
Belgium . . . .
japan . . . o <
C h i n a . . . <> <
Egypt o . o o .
Cuba o « • «

G e r m a n y <> <> . .
Italy o . o o

Established
TOTAL QUOTA

:
Total Imports
s Sept. 20, 1953, to
t March 93 1954

Established
33-1/3* of
Total Quota

4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
• 211263

441,941
239,690

1,441,152

-

75,807

5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.

39,476
16,668

Imports!
l/
Sept. 20, 19 53
to March 9* 1954
441,941

-

16,668

1,099

22,747
14,796
12,853

23,940
7,088

25,443
7.088

23,940

769,902

1,599,886

490,736

am

1,099

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday. March 10. 1954.

H-419

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President• s Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 19 53, to March 9, 1954* 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

Country of Origin

Imports

49,274
5,876,718
618,723
425,384

Honduras • • • . • •
Paraguay
Colombia . . . . . . •
Iraq
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
/^/Other French Africa . .
Algeria and Tunisia •

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

if Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
^/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 19 53 to February 27,1954

Cotton 1-1/8" or more, but less than 1-11/16*
Imports Feb. 11 19 54 A to March 9. 1954

Established Quota (Global) Imports

Established Quota (Global) Imports

70,000,000

4,254,077

45,656,420

4,660,938

wasmnguon
H-u-lEDIATE RELEASE,
Vlednesday, March 10, 1954*

H-419

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by.the President's Proclamation of September-5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept
Sept. 20, 19 53, to March 9$ 1954, inclusive
Country of Origin,
Egypt and the AngloEgyptian Sudan . . •
Peru
British India
China .
Mexico
Brazil
Union of Soviet
Socialist Republics •
Argentina
Haiti
Ecuador . ;

Estabiished Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237

9,333

Country of Origin

Imports

49,274
5,876,718
618,723
425,384

Honduras .....
Paraguay . . . . . . .
Colombia
Iraq
British East Africa . .
Netherlands E. Indies.
Barbados
.
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
2/0ther 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.lesjLythan_3A!!.
Imports Sept. 20, 19 53 to February 27, 1954

Cotton 1-1/8" or more, but less than l-ll/l6u
Imports Feb. I, 19 54.* to March ,9»: 195/'-

Established Quota (Global) Imports

Established Quota (Global) Imports

70,000,000

4,254,077

45,656,426

" 4,660,938

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.i 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 Italys

Country of Origin

United Kingdom .
uanacia . . . o .
France . . . . .
British India .
Netherlands . .
Switzerland . •
Belgium . . . .
Japan . . . . •
Onina . . • . »
Egypt
VsUD&

9 9 9 . .
3 9 . «

0

Germany . . . .
Italy B . . o

Established
TOTAL QUOTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509

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

Total Imports
Sept. 20, 1953, to
March 9, 1954,_„
441,941
239,690

Established
33-1/3$ of
Total Quota
1,441,152

Imports
lj
Sept, 20, 19 53
to March 9, 1 9 5 4 —
441,941

75,807
39,476
16,668
1,099

23,940
7,088
769,902

22,747
14,796
12,853

25,443
7,088
1,599,886

16,668
1,099

23,940
7,088
490,736

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday. March 10. 1954.

H-420

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, 1954, to February 27, 1954, inclusive, as follows:

s

Products of the
Philippines

Established Quota
Quantity

Unit s
: Imports as of
* of
J
Quantity * February 27, 1954
.

.

Gross

102,961

200,000,000

Number

598,200

448,000,000

Pound

19,615,461

Cordage •

6,000,000

Pound

293,866

Rice

1,040,000

Pound

-

1,904,000,000

Pound

Buttons ••••••

850,000

Cigars .......
Coconut Oil • • • •

(Refined .
Sugars
(Unrefined
Tobacco ••••••

176,900,152
6,500,000

Pound

137,503

?1£
t_ «L W

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,

H-420

Wednesday, March 10, 1954.,,
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, 1954, to February 27, 1954, inclusive, as follows:

!

Products of the
Philippines

^

"

•

•

'

i

i

: Established Quota
: ' Quantity

Imports as of
February 27, 1954

i

Buttons

850,000

Gross

102,961
598,200

Cigars

200,000,000

Number

Coconut Oil ....

448,000,000

Pound

19,615,481

Cordage

6,000,000

Pound

293,866

Rice

1,040,000

Pound

-

,904,000,000

Pound

(Refined .
Sugars
(Unrefined
Tobacco ••••••

176,900,152
6,500,000

Pound

137,503

IMMEDIATE RELEASE,
Wednesday, March 10, 1954.

Treasury Department
Washington
H-421

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?

Country
of
Origin

Wheat
;
:
r Established s
Imports'"
Quota
%
sMay 29,-'1953V to
5
*
March 9i.1954 _
(Bushels)
• (Bushels)

795,000
Canada
China
Hungary
Hong Kong
Japan
—
United Kingdom
100
Australia
—
Germany
100
Syria
100
New Zealand
Chile
—
Netherlands
100
2,000
Argentina
Italy100
Cuba^
=,
1,000
France
Greece
100
Mexico
Panama
Uruguay
—
Poland and Danzig
—
Sweden
Yugoslavia
—
Norway
Canary Islands
1,000
Rumania
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics:
100
Belgium
100
mm

mm

:

Kheat flour, semolina,
crushed or cracked
wheat, and similar
wheat j>roducts

s
i Established s
Import's"
s - Quota
: May 29, 19$39v to March 9, 10^
«
(Pounds)
(Pounds)

-

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

46

5,ooo

—
—
—
—
—
—
—
—
_

5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

795;•000

-

3k

m,

—
mm

3,815,000

-

i4o
100
m.

—
m.

-

"
-

—

mm

-

Treasury Department
Washington

-~ J. KJ

IMMEDIATE RELEASE,
Wednesday, March 10, 1954

H-421

The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 23, 194l, as modified by the president's
proclamation of April 13, 1942, for the i2 months commencing May 29, 1953,
as follows s:

a

•

t
s
;
:

9

Country

of
Origin

;
•

Wheat

TUheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

9

• Established :
J

Quota

.

(Bushels)
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba,
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium

Imports"
: Established :
Imports"
Quota
s May 29, 1953,
iiyr 29,1953? to s
1
• tp.March. 9, 19^4
March_9,_ 1954 _ *
(Pounds)
(Pounds)
(Bushels)

795,000

79$,000

-

-

100

34

-.

100
100
~
.-

100
2,000

100
mm

1,000
—

100
...
«.
—
...
--

1,000

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

3,815,000

46

5,ooo

100

—
_
..
_
«.
—
—
—
—
—
—
_
—
—
_
_
_

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

^

100
100

„.

100
100

^

t

_
MM,

M..

MM.

—

—
—
—
—

i4o
««,

_

_
_
_
mm

_

TREASURY DEPARTMENT
WASHINGTON, D.C.

/e

c%^yy^

^-^-

RKLSAOB MORHING KEWOPAPERS,
fji,-poH^-r ff-r^^i'a-pir Ifi 195*1.
^mT*^^^^y

r •**. y . „.i.

u- ~ —

• \

m

*^tfyi

• •••••! • •i»'^—^

During the month of Janmamfj, 1954,
market transactions in direct and guaranteed
securities of the government for Treasury
Investment and other accounts resulted in net
LutiuUirr- by the Treasury Department c?J¥/0

oOo

'

TREASURY DEPARTMENT
WASHINGTON, D.C.

I:-:MEDI~TE RELEASE,

Monday, March 15, 1954.

H-422

During the month of February, 1954,
y.arket transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of
$4,003,550.

oOo

2i ^

BKLSASS MOHHIMG NIS3FAPE1S,
Tuesday, gar oh 16, 1?54* *

A / ^JI l

JL 3
•-—^

The Treasury Department ennounced last evening that the tenders for
$1,500,000,000, or thereabouts, of ?l-dsy Treasury bills to be dated March 16 and
to nature June 17, 1954, which were offered on March 11, were opened at the Federal
Reserve lanks on March 15.
The details of this issue are as -follows:
Total applied for - $2,531,185,000
Total accepted
«- 1,501,048,000 fincludes $256,957,000 entered on a
noncompetitive oasis and accepted in
1
fall at the average pries shown below)
Average price
- 99*733/ Equivalent rate of discount appro*. 1.056$ per m o w
Range of accepted competitive bide:
- 99.740 Squivalent rate at discount epproat. 1.0295* per annua
B
- 99.731
*
" *
"

1.06M »

(16 percent of the amount bid for at the low price was accepted)
Federal fteserve
District

Total
Applied for

Total
Accepted

Boston
Hew fork
Philadelphia
Cleveland
Richsaond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San iranCisco

$

$

k$9m9oeo
l,86f,137,000
44,745,000
47,8fcl,OQO
18,514,000
38,725,000
208,043,000
30,304,000
13,315,000
43,100,000
65,869,000
112,689,000

Total

*2,531,185,000

42,403,000
982,653,,000
16,154:,000
41,757,,000
16,174*,000
37,013,,000
151,663,,000
25,804,,000
12,631,,000
38,038,,000
52,729,,000
84,029j,000

$1,501,048,,00Q

•

TREASURY DEPARTMENT
WASHINGTON. D.C.
IUCSUSJ

5

- JCM-. ^M.

MM-MJ .

—^^,-r.

The Treasury Department announced last evening that Ihe *• O »"^ ~i £S >*>
for ^1,500,000,000, or thereabouts, of SI-day Treasury ci__s to ce
dated March 15 and to mature June 1 7 , lSi?4, vrhich v;ere offered on
March II, vrere opened at the Federal Reserve Banks on March 15.

C

The details of this Issue are as fellers:
f

?.'-.^Q"i a^'-'^pH f*or> - *P ~^" 1 z^ 00 ~;
lw«uai

c

-i-_-'—i-cvi. X O X

-

o .£,>,_)—j-i. w_^ , ON_-<_/

Total accepted

-

Average nrice

- yy.753r

( m c _ u a e s 9^2^,-2, ,-s^o
entered on a noncompetitive
basis and accepted in full
at the average srice chevm
celo-y)
Equivalent rate cf disccunt approx.

IJ^JJ.,^-W,U00

hange of accepted compe

- SS.^ho

i-m^n

.->•!- T T J : s r r

y> rs T" .s

-p
^
_

- -? Q 'I ". ", 1 v- 4-

Q •»""• ""^ V> ,0 V

^ — o u v.- U^.-1/

dwk/i U A |

J- .

•S.'i5I scuivalent rate of discot
l.Ci-p per an
(lc percent cf the amount bid for at the low price v;as accepted)
Total
Acclied
roster*

*
9

V

1
— 3

"S;- - l c -5 ^ - - v-; -i a

Cleveland
itichmond

yh,7-5,C00
47,541,COO
lc,:?l4, 000

f~\ -^

200,0-3,000
C-,3--Jooo
•5,315,000

S'-2.c53,000
16,15^,000

25,60-,000
12,631,000

112, :y , 000
x o i .-—J

r —3

531,1:5,000
oOo

<--\~\ -s

lc . 1,'- . 000
37,013,000

rtt j.an"Ca

Chicago
St. Louis
Mime ay oil s
Kansas City
Dailas
San Francisc o

ll r\

"M\~\

=;•">"

r

- 2 -

work already done in investigating the fair value of imports from these
eight countries and in view of the representations which have been made
as to the events which may follow the resumption of appraisals, the Treasury
directed that investigations as to the fair value of imports from these
eight countries should be pursued to completion.
Customs was directed to observe future imports carefully to determine
whether their prices and effects warrant the imposition of dumping duties.

RELEASE MORNING NEWSPAPERS
WEDNESDAY, MARCH 17, 1954

hf m~ *~/ 2

y

The Treasury Department today announced that it had not found dumping
in the case involving alleged dumping of rayon staple fiber from Austria,
Belgium, France, Germany, Italy, the Netherlands, Norway, Sweden, Switzerland
and the United Kingdom.
Under the Antidumping Act of 1921 a finding of dumping is made only
if imports are sold below fair value and if the domestic industry is injured
or likely to be injured•
In the case of imports from Belgium and the Netherlands there was
insufficient evidence to show that sales were made below fair value.
In the case of imports from the other eight countries, the Treasury
found that under the particular facts there was insufficient ground for
a finding of injury or likelihood of injury to an industry in the United
States•
In announcing the decision as to the eight countries other than
Belgium and the Netherlands, the Treasury pointed out that the circumstances
which existed in the period under investigation were abnormal. Representatives
of certain foreign companies and importers had claimed that there had been
a historical difference of from 2 to 30 per pound between the price of the
foreign and the United States product so that no matter what may be the
U. S. price, the price on imports would normally be expected to be 2 or 3#
lower. The Treasury found no basis for this claim. The Treasury was not
prepared to state categorically whether future sales at prices under fair

t

value would be likely to injure domestic industry. In view of the amount

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Wednesday, March 17, 195*1.

i

H-424

The Treasury Department today announced that it had not
found dumping in the case involving alleged dumping of rayon
staple fiber from Austria, Belgium, Prance, Germany, Italy,
the Netherlands, Norway, Sweden, Switzerland and the
United Kingdom.
Under the Antidumping Act of 1921 a finding of dumping is
made only if imports are sold below fair value and if the
domestic industry is injured or likely to be injured.
In the case of imports from Belgium and the Netherlands
there was insufficient evidence to show that sales were made
below fair value.
In the case of imports from the other eight countries, the
Treasury found that under the particular facts there was insufficient ground for a finding of injury or likelihood of
injury to an industry in the United States.
In announcing the decision as to the eight countries other
than Belgium and the Netherlands, the Treasury pointed out that
the circumstances which existed in the period under Investigation
were abnormal. Representatives of certain foreign companies and
importers had claimed that there had been a historical difference
of from 2 to Z$ pe^ pound between the price of the foreign and
the United States product so that no matter what may be the
U. S. price, the price on imports would normally be expected to
be 2 or 3^ lower. The Treasury found no basis for this claim.
The Treasury was not prepared to state categorically whether
future sales at prices under fair value would be likely to
injure domestic industry. In view of the amount of work already
done in investigating the fair value of imports from these eight
countries and in view of the representations which have been
made as to the events which may follow the resumption of
appraisals, the Treasury directed that investigations as to the
fair value of imports from these eight countries should be
pursued to completion.
Customs was directed to observe future imports carefully
to determine whether their prices and effects warrant the
imposition of dumping duties.

oOo

- 3 I&f5tk
but shall bo exempt from all taxation now or hereafter imposed on the principal

or interest thereof by any State, or any of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 1x2 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 11$ of the Revenue Act of 19lxl, 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 fra., 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, whither on original issue or on subsequent purchase,
and thu amount actually received either upon salo or redemption at maturity
during the taxable year for which the return is made, as ordinary gain or loss.
Revised
Treasury Department Circular No. lil8,/x3xra33BteBt, 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 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 mil 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 whel; or in part, and his action in any such respect
shall be final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders In accordance yrith the bids must be made or
completed at the Federal Reserve Bank on Harch 25, 19$k , In cash or
XSHQX

other immediately available funds or in a like face amount of Treasury bills
maturing Mareh 2$. 1951t • 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 hav~ any special traatm~nt, as such, under the Internal Revenue Code, cr
laws amendatory or supplementary thereto. The bills shall be subject to
estate, inheritance, gift or other excise taxes, v.hcther Federal or State,

' TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS, /_V _, <f 2- J
Th^sday^ March l8.^_l?S*___„_•

f '

The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 3 or thereabouts, of _ 91_-day Treasury bills, for cash and
in exchange for Treasury bills maturing March 25, 19$k , in the amount of
• ""

$1,501,272,000

~Q-m-m-

~

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

competitive bidding as hereinafter provided. The bills of this series will be
dated March 25, 195k , and will mature June 2k9 19$k , when the face

-@s^—-—

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 Banks and Branches up to the
closing hour, tyro o'clock p.m.. Eastern Standard time, Monday. Mareh 22. 195k
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

TREASURY DEPARTMENT
m*:gj"J''>.riiBkUi

WASHINGTON, D.C
RELEASE MORNING NEWSPAPERS,
Thursday, March 18, 1952*.

H-425

The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 93. -day Treasury bills, for
cash and in exchange for Treasury bills maturing March 25, 195^>
in the amount of $1,501,272,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated March 25, 195^*
and will mature June 2k. 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, March 22, 195*1-.
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 v/ill 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 ofthe 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 thi-se reservations, non-competitive tenders for
$200,000 or less without, staled price from any one bidder will be
accepted in fail at th»- "average price (in three decimals) of accepted

- 2 C

7'T :. TL
* Settlement for accepted tenders in accordance
w.Uh the^bids must be made or completed at the Federal Reserve Bank
on i.arch 25, 1954,
i n cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 25 1954
Cash and exchange tenders will receive equal treatment. Cash
'
adjustments will be made for differences between the par value of
maturing bill3 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 k2 and 117 (a) (±) 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

i-i^DIAIij RuLtjAc/e,

•/ / .? i

Wedaes&ay, mrah 17, 19$k*

M

* ^ - ¥ **

u

*

The Treasury Bepsrtsseat announced that the tenders for $1,500,0 .3,000,' or" thereir- ar Value
abouts, of Tax Anticipation Series 9U~day Treasury bills to be dated"1 'arch 22 and to

ai&tare June 2\x9 19$k, which mra offered on .^arch 10, were opened at the Federal Re
Banks on larch 16.
yhe details of tills issue are as follows t
Total ^jiue for - ^2,716,773,000
Total accepted
- 1,501,159,000

^era^c price

(indtxieji §l55,361i,O0O entered on a
noncompetitive basis and accepted in
f-.il! at the arerage price shown below)
- 99.75V e.-.plvslent rate of discount approx* §*9$6% per annum

Range of -aeceytoe. cc*..>^-et^tive bids;
High - y?*77$ Bqttiivalent rate of discount approx^ 0.36.2:1 per aanma
lOW
- ;,.7U7
a
n
n
a
*
a
($8 percent of the aaau&t bid for at the low price was accepted)

Federal >isserve Total Total
District

Applied for

Boston I 35,335,000 $ *«»«»
Hew York
Philadelphia
Cleveland
aicto>r*l
Atlanta
Chicago
t. l.oui
19,858,000
17,52 J,00-J

1,9104,697,000
65,209,000
5^,520,000
10,303,000
li0,li«f000
313,103,000

Accepted
a.

'

.

9

M?'°°?
?6,321,oyO
H ^ ^
4*303,^0
>A>?pl*i
2ue^l>,u.>0

:ir*iKa?o

^w -. m~«_.

Saa Francisco
KM -2,716,773,000 |i,5Ol,059,0OO

33.l6k.000
33,l&i,000
HL1,111, 000

lo,33i4,vwO
_

_J^llkei^

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, March 17. 1954.

H-42S

The Treasury Department announced that the tenders for
$1,500,000,000, or thereabouts, of Tax Anticipation Series 94-day
Treasury bills to be dated March 22 and to mature June 24, lib-,
which were offered on March 10, were opened at the federal Reserve
Eanks on March 16,
The details of this issue are as follows:
Total applied for - $2,716,773,000
Total accepted
- 1,501,159,000 (includes 8155,-64,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.750/ Equivalent rate of discount approx.
0.756;'^ per ai-irum
Range of accepted competitive bids:
High - 99.775 Equivalent rate of discount approx.
0.552yS per annun
Low
- 99.747 Equivalent rate of discount approx.
0.969,3 per annum
(S3 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 35,335,000 $ 27,324,000
New York
1,944,597,000
Philadelphia
65,209,000
Cleveland
54,520,000
Richmond
10,303,000
Atlanta
40,4c5,000
Chicago
313,100,000
St. Louis
25,400,000
Minneapolis
19,coe,000
Kansas City
33,591,000
Dallas
33,164,000
San Francisco
141,111,000
TOTAL $2,716,773,000 $1,501,157,000
0O0

Accepted
971,575,000
30,321,000
46,152,000
6,303,000
32,907,000
200,515,000
15,300,000
17,525,000
25,105,000
1c,354,000
100,271,000

-a I am sure that evory Congressman in voting on this vital
M i l will te guided toy his highest sense of the national
interest.

of the

V. Martin, Jr
of Representatives

NALennartson:nmw
3/17/54

~a fi.aancingfegrborrowing rather than thm issue of
wearltlM, *£**«sH ••ta^w^Wi tfe©TOJtesrtiMlltf«*f
thm Mono*? to M r & w * deflation and
4, aft* adUMrtty m$m>t mi tl» House Ways and
mmam €c«ittt* in. I M S — a mliMdiritjr «fcu* then
iii#3toiis*I many of thm jNNMmt Hmms^mtM members of
the Ways and Means Committee — supported relief
JtaNt double taxation of dirt4«Ml». ffctfcr *#^ort
suggested a comprehensive vwialA* of the «Btli»
federal tax system and listed "such important
aattma as the double taxation of dividends" as
5. Organisations ranging from the American Farm
Federation to the Investors League and the
•lean Hetail Federation have opposed double taxation
of dividends in hearings before the Congress from 1947
to the present.
Am 9*wKUt»t auUMahoaa* t o M tti# tuition Monday sight, th©
rmllmi $&mr!Mtim for mmt®
taxatioa c*f diviAMda *»*iXl 1»
iapeetaat *• all of mm, afcaftfaa* <«r swing® ar# large or small.
There are ۤ aulliox* stockholders aciong the 47 million
mm om thm Federal incoiae tax rolls, so the number of
m who will benefit from the removal of this inequity
is large, both in nuiabers and is percentage. But the immt
importaBt thing is what encouraging incentive to.invest means
to thet future of our mmmmaw* Soa©l>ody has to provide betweei
eight and ten thousand dollars to provide the tools and
facilities to give one American a job. As tax inequities dis
courage people from invosting titular savings, there $M just
that much less wsm&f to pewriita those tools and facilities.
tmmmtiwmtm whim jooe. if keops laillions of workers now
engaged in heavy industry at work at their present jobs and
it creates new jobs with the tools which heavy industry makes.
To encourage
is im
the best
interests
m i s wellinvestment
bftlaMNMl tax
paean*
1* tl*
m r a a nof
t amil
M @£
Americans
&nd
not
m
selfish
short-sighted
advantage
f
t\m mmm
p r o g m #f tfci* 4tai»**timttUNi -a* proposed#t*r few.
President Eisenhower in his State of the Union and other
messages, it la ii#g*ig*MwS to Mfec.JMrlea «»©r* MCRMNI, *•**
f m a vlthmt @Md''twm within, and a battar, safw, M O M raally

:

^^^y

^favajiFajataw pvjy^^P^www^ff^Hr

faayamf&* mt aatmmr a

Thm House of Representatives la now debating the tax
revision bill granting relief to millions of taxpayers as
vail as ill* extending of tbe 52 percent rate mm corporations.
1 want to re-emphasise «®S* ®£ my thoughts as to the vital
importance of this M i l . I feel mm strongly as I can that it
la in the long-run interests of the American people that this
M i l be enacted substantially in its present fora.
This program has been developed by the House Vara and
Means Committoo, under Caairaen Daniel A. Heed, working with
the Administration after months of study, hearings and careful
analysis.
There im a substantial amount of misinformation circulating about one proposal in the revision bill. This is the
proposal to reduce by m modest amount or percentage the
existing double taxation on dividend incotao.
This is not something new. Both major political parties
have for almost twenty years reoogniifled the unfairness of
double taxation of dividends.
1 1, President Roosevelt recognized the inequity
of double taxation of dividends in his tax laeseage
of March 1236.
2. flie House Committee oa Postwar Policy and
Planning recoaaeaded consideration of the elimination
of double taxation in its reports mi both 1944 and
1346. This committee, under Democratic chairmanship
sad eoisposed of 10 Democrats, including Congressman
Cooper the ranking Deiaocrat oa the present eomaittee,
and 8 Kepublicane, said that "consideration should be
given tc the elimination of the present double
taxation mi dividend income" and that this tax reform
"would notrnmlfmmttmmt an inequity ia the present
tax mtmmtmm bat mlmm %wmvtmm mm i»p«**tast »tu»a»a
to risk capital. **
3. file toamlttaa l<» Economic Development, la
its November 1947 tax report, described double
taxation mi dividends as "Qmrnm inequity,* aa4
pointed out tbat it® exlate&ea encourages buaiaaas

%MM

~J

tJ~*f2
1

TOR REIJEASR P.M. NEWSPAPERS THURSDAY, MARCH 18, 1954

The folloving latter has beam sent by Treasury Secretary
George M. Humphrey to Speaker of the Bouse of Representatives
W. Martin, Jr.:

TREASURY DEPARTMENT
WASHINGTON, D.C. \ J s V ^ >
FOR RELEASE P.M. NEWSPAPERS,
Thursday, March 18, 1954.

H-427

The following letter has been sent by Treasury Secretary
George M. Humphrey to Speaker of the House of Representatives
Joseph W. Martin, Jr.:
My dear Speaker Martin: March 17, 1954
The House of Representatives is now debating the tax
revision bill granting relief to millions of taxpayers as
well as the extending of the 52 percent rate on corporations.
I want to re-emphasize some of my thoughts as to the vital
importance of this bill. I feel as strongly as I can that
it is in the long-run interests of the American people that
this bill be enacted substantially in its present form.
This program has been developed by the House Ways and
Means Committee, under Chairman Daniel A. Reed, working
with the Administration after months of study, hearings
and careful analysis.
There is a substantial amount of misinformation circulating about one proposal in the revision bill. This is the
proposal to reduce by a modest amount or percentage the
existing double taxation on dividend income.
This is not something new. Both major political parties
have for almost twenty years recognized the unfairness of
double taxation of dividends.
1. President Roosevelt recognized the inequity
of double taxation of dividends in his tax message
of March 1936.
2. The House Committee on Postwar Policy and
Planning recommended consideration of the elimination
of double taxation in its reports of both 1944 and
1946. This committee, under Democratic chairmanship
and composed of 10 Democrats, including Congressman
Cooper,the ranking Democrat on the present committee,
and 8 Republicans, said that "consideration should be
given to the elimination of the present double
taxation of dividend income" and that this tax reform
"would not only correct an inequity in the present
tax structure but also provide an important stimulus
to risk capital."

237
- 2 3. The Committee for Economic Development, in
its November 1947 tax report, described double
taxation of dividends as "gross inequity," and
pointed out that its existence encourages business
financing by borrowing rather than the issue of
securities, which "increases the vulnerability of
the economy to serious deflation and unemployment."
4. The minority report of the House Ways and
Means Committee in 1948 — a minority which then
included many of the present Democratic members of
the Ways and Means Committee — supported relief
from double taxation of dividends. Their report
suggested a comprehensive revision of the entire
federal tax system and listed "such important matters
as the double taxation of dividends" as among "needed
amendments."
5. Organizations ranging from the American Farm
Bureau Federation to the Investors League and the
American Retail Federation have opposed double
taxation of dividends in hearings before the Congress
from 1947 to the present.
As President Eisenhower told the nation Monday night,
the relief provisions for double taxation of dividends
"will be important to all of us, whether our savings are
large or small."
There are 6-1/2 million stockholders among the 47 million
people now on the Federal income tax rolls, so the number of
taxpayers who will benefit from the removal of this inequity is large, both in numbers and in percentage. But the
most important thing is what encouraging incentive to invest
means to the future of our economy. Somebody has to provide
between eight and ten thousand dollars to provide the tools
and facilities to give one American a job. As tax inequities discourage people from investing their savings,
there is just that much less money to provide those tools
and facilities. Investments make jobs. It keeps millions
of workers now engaged in heavy industry at work at their
present jobs and it creates new jobs with the tools which
heavy industry makes. To encourage investment is in the
best interests of all Americans and not a selfish shortsighted advantage to a few.

- 3This well balanced tax program is the cornerstone of
the entire program of this Administration as proposed by
President Eisenhower in his State of the Union and other
messages. It is designed to make America more secure,
both from without and from within, and a better, safer,
more really prosperous country for us all to live in.
I am sure that every Congressman in voting on this
vital bill will be guided by his highest sense of the
national interest.
Sincerely,
/s/
G. M. HUMPHREY
Secretary of the Treasury

Honorable Joseph W. Martin, Jr.
Speaker
House of Representatives
Room P-60
Washington, D. C.

0O0

- 2Trust Company, and Boston Mutual Life Insurance Company. An
alumnus of Massachusetts State College, Mr. Brett has
devoted considerable time during the past years to associations
connected with his alma mater.

He is director of the

University of Massachusetts, president and director of the
University's building association, and president and member
of the board of governors of the University of Massachusetts
Foundation.
Commenting on Mr. Brett's acceptance, Secretary Humphrey
wrote him:

"I'm delighted to learn of your willingness to

assume the important volunteer role as State Chairman of
our savings bonds program for the State of Massachusetts.
This program is important to us in our determination to
achieve a sound and honest dollar, and the addition of a
leader of your stature will help us greatly."

0O0

Secretary Humphrey today announced the appointment of
Alden C. Brett, Treasurer of the Hood Rubber Company,
Watertown, Mass., as State Chairman of the U. S. Savings
Bonds Advisory Committee for Massachusetts.
Mr. Brett succeeds Corodon S. Fuller, who has been
State Chairman since 1950, and actively associated with
the savings bonds volunteer organization in Massachusetts
since 1941.
In accepting Mr. Fuller's resignation, Secretary
Humphrey expressed his personal thanks and the Treasury's
official appreciation for the valuable service he rendered
during the past 13 years.

"It is hrn,vtrrir^. indeed,"

Secretary Humphrey said, "to know that you are willing to
^ © ^ 4 ^ good counsel and assistance to your successor whenever occasions arise."
The new State Chairman, who will direct volunteer
activities^during the Treasury's "billion more in '54" savings
bonds campaign in Massachusetts, has devoted 30 years to the
study of finance, economics, and monetary policies. He has
been treasurer of Hood Rubber Company since 1929, a n d also
president and director of the Arrow Mutual Liability Insurance
Company.

He is director of United Services Company, State

TREASURY DEPARTMENT
WASHINGTON. D.C.
IMMEDIATE RELEASE,
Friday, March 19, 1954.

H-428

Secretary Humphrey today announced the appointment of
Alden C. Brett, Treasurer of the Hood Rubber Company, Watertown,
Massachusetts, as State Chairman of the U. S. Savings Bonds
Advisory Committee for Massachusetts.
Mr. Brett succeeds Corodon S. Fuller, who has been State
Chairman since 1950, and actively associated with the savings
bonds volunteer organization in Massachusetts since 1941.
In accepting Mr. Fuller's resignation, Secretary Humphrey
expressed his personal thanks and the Treasury's official
appreciation for the valuable service he rendered during the past
13 years. "It is cheering indeed," Secretary Humphrey said,
"to know that you are willing to lend your good counsel and
assistance to your successor whenever occasions arise."
The new State Chairman, who will direct volunteer activities
in Massachusetts during the Treasury's "billion more in '54"
savings bonds campaign, has devoted 50 years to the study of
finance, economics, and monetary policies. He has been treasurer
of Hood Rubber Company since 1929, and also president and director
of the Arrow Mutual Liability Insurance Company. He is director
of United Services Company, State Trust Company, and Boston
Mutual Life Insurance Company. An alumnus of Massachusetts State
College, Mr. Brett has devoted considerable time during the past
years to associations connected with his alma mater. He is
director of the University of Massachusetts, president and
director of the University's building association, and president
and member of the board of governors of the University of
Massachusetts Foundation.
Commenting on Mr. Brett's acceptance, Secretary Humphrey
wrote him: "I'm delighted to learn of your willingness to assume
the important volunteer role as State Chairman of our savings
bonds program for the State of Massachusetts. This program is
important to us in our determination to achieve a sound and
hone so dollar, arid the addition of a leader of your stature will
help us greatly."
oOo

Gomparisoa of principal items of assets and liabilities of national banks - Continued
*
(la thousands of dollars)
,
.
.
{Increase or decrease tIncrease or decrease
| Dec. 31.
: Sep** 30. : Bse. 31» tsince Sept. 30. 1953 t since Bee. 31, 1952
X 1953
; 1953 ; 1952 : Amount
^Percent 1 frnorat {Percent

LIABILITIES
Deposits of individuals, partner^aant.?!!!!^!'!?!! 56.614,391 53.791.070 56.682,902 2,853,3a 5.25 -68,511 -.12
Time
22,863.011
22.5^8.572 21,517.160
31M39
1.39 *•%*•** * • «
Deposit, mil. S. Goverament
2,817.227
3.859.?l£
3.238.050 -l.0HC.fc9 ^ . 0 1 « » * - » . »
Postal savings deposits.
13.^*2
13.%6
13.588
6
.04
-146
-1.07
^LV.^ 6,793.634 6,222.445 6,271.676 571.189 Mi 521.958 8.32
Deposits^ baaks!::
10.155.9*2
8,881.0*10
9.920,522 1.27*.9©2 lH.36
235.420 2.37
"cTahi^^ 1.689,586 !.».« 1.613.878 388.3)3 29.84 75.708 *.6g
Total deposits
100.9*7.23396.6if.762 99.257.776
4.329.471
K m 1.689.457UW^
Bills payable, rediscounts, and
other liabilities for
r
c
M
borrowed money.
1*.851
H83.231
75.9a
-468.380 -96.93
-61,070 -80.44
Other liabilities.
1,7*5.099
1.902,351
1.739.825
-157.252 -8.27
5.27* .30
°capital accounts.!??.?..!f... 102,707.183 99.003.3** 101,073.522 3.703.839 3.7* 1.633.661 1,62
CAPITAL ACCOUNTS

°lreftrr1^! 5.211 5.*** 5.666 -233 Aa -*55 -8.03
Common.
2.236.5*6
•Dotal
2.361,757
Sarplus
3.523.W3
Undivided profit
1.310.761
Weaerra*
273.555
Total surplus, profits, and
reserves
5.107l759
Total capital accounts.
7.409.516
Total liabilities and
capitalsecurities
accounts.to total
110.ll6.699
U.S.
T^S5*i*«lieo4ais**o**o*^i*i.i««*«l!
LOSs
~ ' Gov't
.Percent
S
32.32
^^f

2,268,439
2,219,186
2,273.883
2,22*,852
3.*25.&993.334. a s
1,387.126
1,225.731
269.138
274,420
5.081,963
7.355.846

4,834.369
7.059.221

^107
27.87*
97.74*
-76,365
4,417
25.796
53.670

t

106,359.190
108,132,743
Percent
5*t#3
33 2D
Percent
53-f&
33.23

M3.757.509
O ^ i Minus

U*
7L|6o
£»
l.g3
76.905
V*~
^SM
189.225 5 T ^
-5.51 85,030 6.9*
1.64
- 865 -.3f
_
.51 273.390 %|fc
.73 390.295
4»9§
_
3.53
1.983.956
1.8]
«±«n
denote.
deeaafeiBe-

Statement showing comparison of principal items of assets and liabilities of active national
banks as of December 31. 1953. September 30. 1953. *»* December 3 L 1952
(in thousands of dollars)
:
I Dec* 31.
i
1953

t
t Sep** 30.
i
1953

number of banks 4,864 4,871 *.9l6 zL =28 —
ASSETS
Oomi.rol.1 anO. indurtrf«l 1 M M . l6.»l6S.»*55
16,612,176
Loan, on r«al ..tat
g.786,686 l/ 8,638,056
All other loans, including
OTerdrafts
13.2*3.586 1/ 12.3*2.510
Total gross loan.
3*l*9§.72t " 37!5?2,i*2
Less valuation reserves...
55*.581
5*3.H05
Net loans
37.§**.1*6
37.W.337
U. S. Government securities}
Direct obligations
35.563.33*
35.287.32*
Obligations fully guaranteed..
25.*29
25.*2?
Total TJ. S. Securities
S.gW.TftS
3S.JtJ2.Tg5
* Obligations of States and
political subdivisions
6,330.265
6,3*6,681
^Other bonds, notes and de-»
bentures
2,086,723
2,035.365
Corporate stocks, including
stocks of Ped. Reserve banks..
20*^*82
201,809
Total securities
44,210,233
43,896,608
Total loans and securities..^2.154,379
80.945.945
Currency and coin
i,292,2$*
1.385.691
Isserve with Ped. Reserve banks. 13A30.530
12.570.050
in process
of collection...
26,5*5.518
2*,030.l6S
y .lances
with other
banks
12,122.73*
10,07*.*27
ither
assets
I,*l6.g02
1.383.077
Total
cash, balances with
i Total
assets
110.116,699
106,359.190
other banks. Including re*
serve balances and cash items
f Revised.

»
t Dec. 3 L
.
1952

l6.895.*89
8,26^,630

3

* Increase or decreasel Increase or decrease
i since Sept. 30.1953 * •iao* P f . 31. 1952
i
t^wr-t «»«ra«ntt
Amount t Percent

-IjB.ja
l»l*,630

-.87
1.72

^ ' ^
522.056
r

H.*77.850
901.076
7.30 1.765.736
tfW.sfe
&£$**&
l.«60.758
518.2?6
U.ltf
2.06
,36.285
36.U9.6Y33fM092?51.824,473
„
^
35.921.339
276.010
.78
-357.905
.*frg5
^ ~
~3|2f
35.93o.'W2
276,010
.78
-347.679

-2.53
6.32
_.
15.38
5^T
7j00
5^T
„ ^
-1.00
2i|£-.97

5.982.753

-l6,*l6

-.26

3*7.512

5.81

2,176,230

51.358

2.52

-89.507

-^11

196,860
44.292,285
g
?**^958
1.446,134
12.956.212
26.399.^3
11.997.057
1.321,382
108,132.743

2.673
313.625
1»*>S.*3*
-93.437
560.480
2.515.350
2.048,307
33.725
3.757.509

1.32
7.622
.71
-82,052
l.ff ^J**^
-6.7* -153.880
4.46
17*.318
1Q.*7
146.115
20.33
125.677
2.44
95.420
3.53 1.983.956

3.87
-.£|
W
=IKl
1.^
ll
1.
7.2 y
1.8

-

2

-

purpose of purchasing and carrying securities, and to banks, etc., amounted to
$13,200,000,000, an increase of 7 percent since September, and 15 percent in
the year. The percentage of loans and discounts to total assets on December 31,
1953 ™as 3*.46 in comparison with 3*.S3 in September and 33»*0 in December 1952.
Investments of the banks in United States Government obligations on
December 31, 1953 aggregated $35,600,000,000 (including $25,000,000 guaranteed
obligations), an increase of $276,000,000 since September. These investments
were 32 percent of total assets, compared to 33 percent in September. Other
bonds, stocks and securities of $8,600,000,000, which included obligations of
States and political subdivisions of $6,300,000,000, were $38,000,000 more than
in September, and $266,000,000 more than held in December the year previous.
Total securities held amounting to $44,200,000,000 were slightly less than the
December 1952 figure.
Cash of $1,300,000,000, reserve with federal Reserve banks of $13,100,000,000
and balances with other banks (including cash items in process of collection) of

$12,100,000,000, a total of $26,500,000,000, showed an increase of $2,500,000,000
since September.
The capital stock of the banks on December 31, 1953 was $2,300,000,000, including $5,000,000 of preferred stock. Surplus was $3,500,000,000, undivided
profits $1,300,000,000, and capital reserves $274,000,000, or a total of
$5,100,000,000. Total capital accounts of $7,400,000,000, which were 7.34
percent of total deposits, were $53,000,000 more than in September when they
were 7.6l percent of total deposits.

TREASURY D^ARTI'^iT
Comptroller of the Currency
Washington

^
Ofouny
J&TNOr

HCBOTTG HSWSPAP^S ^_/ * ^A "

The total assets of national banks on December 32, 1953 amounted to more
than $110,000,000,000, it was announced today by Comptroller of the Currency
Ray M. Gidney. The returns covered the 4,g64 active national banks in the IMited
States and possessions. The assets were $3,700,000,000 more than the amount

reported by the 4,871 active banks on September 30, 1953, the date of the previous
caU, and were nearly $2,000,000,000 over the aggregate reported by the 4,9l£
active banks as of December 31, 1952.
The deposits of the banks on December 31 were $101,000,000,000, an increase
of $4,300,000,000 since September, and an increase of over $1,600,000,000 in the
year. Included in the recent deposit figares were demand deposits of individuals,

partnerships, and corporations of $56,600,000,000, which increased $2,800,000,000

or 5 percent, since September, and time deposits of individuals, partnerships, and
corporations of $22,600,000,000, an increase of $314,000,000. Deposits of the
United States Government of $2,800,000,000 decreased $1,000,000,000 since

September; deposits of States and political subdivisions of $6,300,000,000 shoved
an increase of $571,000,000; and deposits of banks amounted to $10,200,000,000,
an increase of $1,300,000,000. Postal savings were $13,000,000 and certified
and cashiers1 checks, etc., were $1,700,000,000.
Net loans and discounts on December 3PL, 1953

vere

$38,000,000,000, an in-

crease of $900,000,000 since September, and $1,800,000,000, or 5 percent, above
the December figure the previous year. Commercial and industrial loans of
$16,500,000,000 were about the same as in September. Loans on real estate of
$8,800,000,000 were up nearly 2 percent. Other loans, including consumer loans
to individuals, loans to farmers, to brokers and dealers and others for the

TREASURY DEPARTMENT
RELEASE MORNING NEWSPAPERS
Wednesday, Mar oh 24, 1954.

WASHINGTON, D.C.
H-429

The total assets of national banks on December 31, 1953 amounted to more
than $110,000,000,000, it was announced today by Comptroller of the Currency
Ray M. Gidney. The returns covered the 4,864 active national banks in the United
States and possessions. The assets were $3,700,000,000 more than the amount
reported by the 4,871 active banks on September p» 1953» the date of the previous
call, and were nearly $2,000,000,000 over the aggregate reported by the 4,9l6
active banks as of December 31, 1952.
The deposits of the banks on December 31 were $101,000,000,000, an increase
of $4,300,000,000 since September, and an increase of over $1,600,000,000 in the
year. Included in the recent deposit figures were demand deposits of individuals,

partnerships, and corporations of $56,600,000,000, which increased $2,800,000,000,
or 5 percent, since September, and time deposits of individuals, partnerships, and
corporations of $22,800,000,000, an increase of $314,000,000. Deposits of the
United States Government of $2,800,000,000 decreased $1,000,000,000 since
September; deposits of States and political subdivisions of $6,800,000,000 showed
an increase of $571,000,000; and deposits of banks amounted to $10,200,000,000,
an increase of $1,300,000,000. Postal savings were $13,000,000 and certified
and cashiers1 checks, etc., were $1,700,000,000.
Net loans and discounts on December 31, 1953 w®*6 $38,000,000,000, an increase of $900,000,000 since September, and $1,800,000,000, or 5 percent, above
the December figure the previous year. Commercial and industrial loans of
$16,500,000,000 were about the same as in September. Loans on real estate of
$8,800,000,000 were up nearly 2 percent. Other loans, including consumer loans
to individuals, loans to farmers, to brokers and dealers and others for the

247
-

2

-

purpose of purchasing and carrying securities, and to banks, etc., amounted to
$13,200,000,000, an increase of 7 percent since September, and 15 percent in
the year. The percentage of loans and discounts to total assets on December 31.
1953 was 3^.*6 in comparison with 3*.83 In September and 33.^0 in December 1952*
Investments of the banks in United States Government obligations on
December 31, 1953 aggregated $35,600,000,000 (including $25,000,000 guaranteed
obligations), an increase of $276,000,000 since September. These investments
were 32 percent of total assets, compared to 33 percent in September. Other
bonds, stocks and securities of $8,600,000,000, which included obligations of
States and political subdivisions of $6,300,000,000, were $38,000,000 more than
in September, and $266,000,000 more than held in December the year previous.
Total securities held amounting to $44,200,000,000 were slightly less than the
December 1952 figure.
Cash of $1,300,000,000, reserve with Federal Reserve banks of $13,100,000,000
and balances with other banks (including cash items in process of collection) of
$12,100,000,000, a total of $26,500,000,000, showed an increase of $2,500,000,000
since September.
The capital stock of the banks on December 31, 1953 was $2,300,000,000, including $5,000,000 of preferred stock. Surplus was $3,500,000,000, undivided
profits $1,300,000,000, and capital reserves $274,000,000, or a total of
$5,100,000,000. Total capital accounts of $7,400,000,000, which were 7.34
percent of total deposits, were $53,000,000 more than In September when they
were 7.6l percent of total deposits.

Statement showing comparison erf principal items of assets and liabilities of active national
banks as of December 31, 1953, September 30, 1953, and December 31, 1952
___ (in thousands of dollars) M>«OT™_«_IOT_«_™, __.
•
•
I Dec. 31,
| Sept. 30,
,
i
1953
I
1953
Number of banks 4,864 4,871 4,9l6 -7 -52 m

*

3

• Increase or decrease * Increase or decrease
| since Sept. 30,1953 * since Dec. 31* 1952
t
i^tmt
sPm^nti
Anount i Percent,,

Dec. 31,
I
1952

s

A.SSSTS

Oommercial and industrial loans. 16,468,455
16,612,176
Loans on real estats...
8,786,686 l/ 8,638,056
All other loans, including
overdrafts...
....
13.243,536 1/12.342,510

Total gross loans......

38.49&\727

Less valuation reserves...
55**5^1
Net loans
*
* 37.944,146.
U. S. Government securities:
Direct obligations.
35.563.33*
Obligations fully guaranteed..
25**29

Total u. S. Securities

16,895,489
8,264,630

-143,721
146,630

-.87
1.72

-427,034
522,056

-2.53
6.32

11,477.850

901.076

7.30

1,765.736

15.38

^S.W^T^ST^^r^eoVt^T

%0S

37.592,742"*" 36,637,9^9
&3^5
37,0*4§,337

518,236
36,119."©73™"

11,176
894,809

35.287.32*
25,429

35.921,239
15.203

276,010
-—

35.58Qp3^l53lirf53

35.936,442

176,010

^-Obligations of States and
political subdivisions
6,330,265
6,346,681
5.982,753
A-Other bonds, notes and debenture*
2,086,723
2,035,365
2,176,230
Corporate stocks, including
stocks of Ped. Reserve banks..
204,482
201,809
196,860
Total securities
44,210,233
"Tfrt896,6)8 ""W&JU&S
Total loans and securities.. 82,154,379
"soTPJTP?^" 80,411,958
Currency and coin
1,292,254 " " T ^ I ^ l
1,446,134
Reserve with Ted. Reserve banks. 13.130.530
12,570.05©
12,956.212
Balances with other banks
12,122,73*
10,07*.*27
11.997,057
—
Total cash, balances with ~"
— ~
other banks, including reserve balances and cash items
in process of collection... 26,5*5,518
24,030,168
26,399.^3
Other assets
1.416.S02
i.lgwT
1*321,532

Total assets
1/ Revised, no

110,116,699

106,359.190
—*——•————run

-l6,4l6
51.358 1

.78
-—

7.00
5.05

-357.905
10,226

-1.00
67.26

"Tnf2r""r""-3*7»679

-.97

-.26

347,512

5.8I

2.52

-89,507

-4.11

2,673
1.32
7.622
3.87
313.625^~l7r^'~'°«82,052
-.19
1,208,434
JT49
lT742.42i"
l^TT
" ^ 3 ^ 3 7 " ^97^~
-153,880 ' -10.64"
560,480
4.46
174,318
I.35
2,0*8,307 20.33
125.677
1.05
a
— _
"""'
"'
• -——

2,515.350
"~33.725

108,132,TO~~TJ57^
1| Tl7hnr i onffmnii[i~~n»iimnmiiiiiiinii

2.06
36,285
17?2™1,S24,473 "~—

•II.IIWIMIIIIHIMMI B m mi

mi n

10.47
2^4~

146.115
.55
WMT^~~~J^

~53~T^83^^^1~~ngr
«••

•mi

-

~^

"

^

*™w

^**

J

Coapasiyc of principal items of assets and liabilities of national "banks - Continued
- ~. ....m. —..-....
(in thousands of dollars)
1
s
iw. -n
« *. «•* s « .
.
, ^Increase or decrease I Increase or decreas'

pi——...-

: S53f

: Hth

s

Ihf* s ^ ^ s s i ^ ^
w

g
•—-—_—_J
£g_^-_JSL—-JL
J__isggn$
_lPercmt_l__Jino^t _ j Per c en*.
IIABILITI3ES
Depositg of individuals, partntsw
ships, and corporations!
Dgjaaad
•...••......•••••..•• 56,614,391
53,791*070 56,682,902
2,823,321
5.25 -68,511 -.12
Time...
22,863,011
22,5*^,572 21,517.160
31*.*39
1.39 1,3*5.851 6.25
Bepositt of U. S. Oofarnaent.........
2,817,22?
3*859,?l6
3*238,050 -1,0*2,689 -27*01
-420,823 -13.00
Postal savings deposits..............
13,4*2
15,*36
13,588
6
-1.07
& 0 * -146
Deposits of States and political
subdivisions..
6,793*614
6,222,4*5
6,271,676
571,189
9.18 521,958 S.32
Deposits of banks
10,155,9*2
8,881*0*10
9,920.522
1,27*. 902
14*36
235,420 2.37
Other deposits (certified and
cashiers' checks, ste.)............
I,689t586_/_ ___l,301>Sjg
1,613,878
388,303
29.84
75,70s 4.69

—•

,„,

Tota

J;4«po«i*»

. — TS5^ir7^r~loTbT7Tl^

99^f7nF~~H^

Bills payable, rediscounts, and
other liabilities for
borrowed money
14,851
^3*231
75,921
-468,380 -96.93
-61,070 -80.44
Other liabilities....................
1,7*5,099
1,902,351
1,739*825
-157,232
-8.27
5,2?4 .30
Total liabilities, excluding
capital accounts,..
102,?0?,183
99.003*3*** 101,073*522
3,703,839
3.74 1,633,661 1.62
CAPIT4L ACCOUNTS
Capital stocks
Preferred....
5,211
5,444
5,666
-233 -*.2S
-455 -S.03
*otal ,_.2,30l,7p7 2,273,853 2,_2£4,gg" Th&WT^T^^J^03~3^
S^lus
^*W*^T^^2^^
Undivided profits....................
l,310,?6l
1,387.126
1,225,731
-76,365
-5.51
85 030 6.94
Serves
..................*.
273.555
269,13s
2?4,4so
4,4l?
1.64 - S65 -.12
Total surpluy8 profits, and
^ J
reserves..............
540J^7J9_^
273,^0 5,66
#51
Total capital accounts.
~ 77*09^1b^^555,i4b
7*059,2a
^m^^^^^X^^^XxT^lX^Total liabilities and
- — —~-»
"—-^--*» —-s .
capital accounts......
110,116,699...... 106,359,190 108,132,743
3.75J.5Q9
3.53 1,93^.9^ 1.S3
Percent
Percent
Percent
' ""
"—~"~~"
™—-Jm~
-2ASH0S;
U.S.
Loans
Capital
assets
Gov't
& accounts
discounts
securities
to
tototal
total
to total
deposits.
assets..
*
»
34.46
2?*3?
7.34
54.S3
33*20
7.61 33*45
33.23 7.11
EDTSj Minus sign denotes decrease,,
1CD
^

XSXE&SB MCMXia NBM8FAHSB3,
tmnd®y9 March 23* 19jk*
The Traasury Dapartaent annouiieed last evening that ths tenders for #1,500,000,000,
or thereabout®, of 9i-3ay treasury hills to be dated March 2$ and to ssatura June 2k,
19$k, which were offered on l&rch IB, were opened at the ttdaral Reserve Banks oa
March 82.
The details of this issue are as followst
total applied for - 12,371,847,000
total accepted
- 1,501,440,000

(incites #*!&,3*7*000 entered on a
goneoapstittve haeia and accepted in
full at the average price shown below)
Average price
- 99.7*0 sqnivaleat rat® of discount approx. l.OOQf per annua
gauge of accepted competitive hides Cmtf&iftg one tends* of #127*000)
MA - 99.7*7 Equivalent rate of discount approm. 1*003$ per annua
im
- 99.717
"
s e e
»

1.0^

•

*

(58 percent of the etteaat bid for at the low price was accepted)
Federal Reserve
Blstrlct

total
l&oliei for

fetal
Accepted

Boston
Hew Xork
IMlatielphia
Cleveland
EiohBOBd
Atlanta
Chicago
St. Louis
lHanssnolis
lansas City
DaUas
San Francisco
TOtll

$

|

35,128,000
1,668,770,000
37,507,000
76,978,000
15,251,000
26,166,000
262,950*000
26,326,000
13,538,000
51,435,000
34,101,000
.12f**7*W

tl.,371,847,000

29,338,000
375,130, GOO
22,507,000
66,658,000
15,251,000
25,240,000
234,010,000
25,784,000
12,712,000
50,232,000
31,001,000

_J^!HA2E
$1,501,440,000

TREASURY DEPARTMENT
WASHINGTON, D.C.

2^
RELEASE MORNING NEWSPAPERS,
Tuesday, March 23, 1954.

L

H-430

The Treasury Department announced last evening that the tenders
for $1,5007000,000, or thereabouts, of 91-day Treasury bills to be
dated March 25 and to mature June 24, 1954, which were offered on
March 18, were opened at the Federal Reserve Banks on March 22.
The details of this issue are as follows:
Total applied for - $2,371,847,000
1,501,440,000 (includes $244,367,000
Total accepted
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.740 Equivalent rate of discount approx.
1.030$ per annum
Range of accepted competitive bids; (Excepting one tender of
$127,000) '
- 99.747 Equivalent rate of discount approx.
1.001$ per annum
Low
- 99.737 Equivalent rate of discount approx.
1.0k0% per annum
(58 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

Total
Applied for
$
35,128,000
1,668,770,000
37,507,000
76,978,000
15,251,000
26,166,000
262,950,000
26,326,000
13,538,000
51,485,000
34,101,000
123,647,000
$2,371,847,000
0O0

Total
Accepted
$

29,338,000
875,180,000
22,507,000
66,658,000
15,251,000
25,240,000
234,010,000
25,784,000
12,712,000
50,232,000
31,801,000
112,727,000

$1,501,440,000

N-»-MM

f

L... .LDI£xE iLii^ASL

M

r

491

Treasury Secretary iiumphrey today appointed Virgil R. Lee
of Chehalis, Wash., an Assistant to the secretary.
•secretary humphrey said t^at -r. Lee will assist and
advise him in matters of personnel policy.
i»lr. Lee has been in the insurance business at Chehalis'
for 30 years, ne served for 12 years in the Washington State
Legislature- two years as State i:iexresentative and 10 years as
State Senator, he did not seek reelection in the Jast general
ele ction.
While in the Washington State oenate -J°. Lee served as
chairman of the Revenue and Taxation Committee for two sessions,
and as chairman of the Committee on Insurance for three sessions.
He also served as a member of the Joint Interim Committee on
Highways and the Legislative Council.
In recognition of his leadership in the insurance business
In wasiiington State he was elevated to the presidency of the
Vv ashing ton Insurance agents association. &e served as a member
of the executive committee of the national association of
Insurance Agents.
when Secretary rxumphrey asked him to come to ^'asnlngton,
_-_r. Lee turned Lie management of his insurance business over to his
son, wiliiam h. Lee, who has been nis partner since 194b.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, March 22, 1954.

H-431

Treasury Secretary Humphrey today appointed Virgil R. Lee
of Chehalis, Washington, an Assistant to the Secretary.
Secretary Humphrey said that Mr, Lee will assist and
advise him in matters of personnel policy.
Mr. Lee has been in the insurance business at Chehalis
for 30 years. He served for 12 years in the Washington State
Legislature—two years as State Representative and 10 years as
State Senator. He did not seek reelection in the last general
election.
While in the Washington State Senate Mr. Lee served as
chairman of the Revenue and Taxation Committee for two sessions,
and as chairman of the Committee on Insurance for three sessions.
Ke also served as a member of the Joint Interim Committee on
Highways and the Legislative Council.
In recognition of his leadership in the insurance business
in Washington State he was elevated to the presidency of the
Washington Insurance Agents Association. He served as a member
of the executive committee of the National Association of
Insurance Agents.
When Secretary Humphrey asked him to come to Washington,
Mr. Lee turned the management of his insurance business over
to his son, William R, Lee, who has been his partner since
1946.

0O0

-3 The equipment consists of various components, including a hot
mill which does initial rolling to reduce the gauge of the metal and
a cold mill which further roUs and thins out the material. The
finished product of the cold mill can be either coiled or stacked.
The machinery which is offered for sale includes eoilers, as well as
a flying shear line for tin plate which is capable of cutting the
finished metal into desired lengths. The equipment is not complete
in some respects and certain electrical parts are missing.
This equipment was designed with the expectation that about 7$
percent of its output would be marketed as cold rolled products and
about 2$ percent as hot rolled products. To meet the requirements
for the production planned, which amounted to 400,000 metric tons annually of steel strip, the hot mill was to be operated at a capacity of
approximately 100 tons per hour. The output of this mill would vary
depending upon the products being rolled, the turns per day operated,
and the furnace capacity provided for supplying the heated slabs.
Detailed specifications of the property, and information regarding
the terms and conditions of sale, together with the bid forms may be
obtained from Mr. Laurence B. Bobbins, in care of Foreign Assets Control,
Treasury Department, Washington 2$9 D. C.

- 2 domestic or foreign buyer provided that the proceeds of sale would
remain available in connection with the settlement of American claims
against Czechoslovakia. Czechoslovak refusal to dispose of the
property on this basis led to an impasse which the sale order now
resolves. Funds realized from the sale will be deposited in banks
in the United States for the account of the Czechoslovak owners of
the property but these amounts will remain blocked pending consideration of American claims against Czechoslovakia.
Today's action will bring relief to the American firms on whose
premises in Philadelphia and New Castle, Pennsylvania; Troy, New York;
and Toungstown, Ohio, the steel mill equipment is presently being
stored. The Czechoslovaks for several years have been in default in
the payment of storage charges on the equipment. The successful
bidders at the Receiver's sale will have to satisfy the storage charges
before being allowed to remove the property.
The property affected by today fs order was manufactured by the
United Engineering and Foundry Company of Pittsburgh, Pennsylvania,
and consists of equipment which was designed for use in rolling and
processing steel. It can produce materials which find their end uses
in the manufacture of auto bodies, steel furniture, barrels, pipes and
tin plate. Certain components of the equipment, properly modified,
can also be used for the rolling and processing of non-ferrous metals.
The equipment does not produce raw steel but processes steel which has
already been put through a blooming or slabbing mill after having come
from an open hearth or other steel producing furnace.

DRAFT

3A£/?U

Treasury Secretary Humphrey, acting under the Trading with the
Enemy Act, today directed the sale by a Government Receiver of
Czechoslovak-owned steel mill equipment which was blocked by the
Treasury Department in 1952.
The steel mill equipment, for which the Czechoslovaks paid approximately $16 million, was ordered from an American manufacturer
before the communist coup in Czechoslovakia but was not completed
until after the coup. Its exportation was prevented under the Export
Control Law and the Treasury Department blocked the property to insure
that its disposition would be in accordance with the defense interests
of the United States*
Laurence B. Robbins, Special Assistant to the Secretary of the
Treasury, has been designated as Receiver and directed to sell the
equipment by public sale. He is immediately calling for sealed bids
on the property as a whole and on its various principal components.
Bids will be opened on /Ipril 2$, 1?54»
Secretary Humphrey's order to dispose of the equipment parallels
similar action taken with regard to foreign-owned property in the United
States during World War II where the owners, whether enemies or nonenemies, would not or could not effectively use or dispose of property
in the United States and where the disposition of the property was deemed
necessary in the public interest. The Treasury Department has been

willing to allow the Cansiche>alovako to sell the property to an acceptable

TREASURY DEPARTMENT
WASHINGTON. D.C

?S7
LM, W

'•E _ ?.: xnr».-co • - p — ; c
M-

~M—J,

..i. ^.M

Q ,

zi-^^a

'J'vjsp c;--->-r

•-ar.j ^u*zyonrey, acting under the Trading with
~y „~ y
v >
^ iir>ected the sale by a 3over™er.t Receiver
oz ~zecnos_cvak-ewned steel mill ecui?~ent which was clocked by
tne Treasury Department in 1952.
e

e

zz

tcia

^^^_^tv^^ f ??3l^Tii:- f ^Y—pmen-fc^ for which the Czechoslovaks paid
approx—r.a^e_y Slo rr.ii_lcr., was ordered, fron an -ycerican ^a^ufacturercefcre the cczruurist coup in Czechos Jculkia^but" was
no. cony.e.ed um,ii after the coup. Its eyyccrtation was
^pyrtnent clocked the proper-;.- to insure that its'disoosition
!iz^.ctJLn
accordance with the defense interests cf the
unitec states.
TjS.' --•-•--.•*• - =i 15 -^'-ll-'nQ Q„^„J„T *, „ ~ A r- m- ,* ~ J- m. ^ M. " <- -.

-..~ _.-_c^yy,/J nas oeer. designated as Receiver and directed to
O

! 1

T *- ""

f-A-.mmmZ.m-,.

~

' ~

for sealed "hid
principal ccryp

e ctened ci

•-i-'-'—-

^ - j

—

i / > ~ .

i^ecre^ary Ktcy.tkrev's order to discos*5 ^^ 4~>-^ ~~---i--~&^+parallels sln.ilar action taker. with re~~ard to foreiJ^-ov.-^^^
property in the United States during "orId War^II^vrhere yhe
owners, whether enenies or non-enenies, would not or^could^not
eccectiuely use or dispose of property in the United States
ana ynere trie disposition of the property vras deerced necessarv
ing to allow the owners to sell tne treyertv to a.- acce~tavle~
domestic or foreign buyer trcvided t^ = t~ tv-" -ro^eds ^ ~ q ~ i ^
_

_

"—

C*

~

•'''tu—oi renain ava~la~"- J ^

^* mm, *m* •* mm- -~m, \m* *.*,

W . - ^ ^ W

^•^••-••-C.'-.T-

will ren.ain c.ocked pendlny
against Czechoslovakia.

\J m. - ^ ,

-—

*m* mm, \m*f ^

TUT?-^>

-mm* \mr \JL km*

Km* _

K? ZZ Jm, ^

—-.-t .^^4.- ^^^»,_ ^_-,

I

9ZQ
-MM, \MJ

'^J

- 2 Today's action will bring relief to the American firms on
whose premises in Philadelphia and New Castle, Pennsylvania;
Troy, New York; and Youngstown, Ohio, the steel mill equipment
is presently being stored. The Czechoslovaks for several years
have been in default in the payment of storage charges on the
equipment. The successful bidders at the Receiver's sale will
have to satisfy the storage charges before being allowed to
remove the property.
The property affected by today's order was manufactured by
the United Engineering and Foundry Company of Pittsburgh,
Pennsylvania, and consists of equipment which was designed for
use in rolling and processing steel. It can produce materials
which find their end uses in the manufacture of auto bodies,
steel furniture, barrels, pipes and tin plate. Certain
components of the equipment, properly modified, can also be
used for the rolling and processing of non-ferrous metals.
The equipment does not produce raw steel but processes steel
which has already been put through a blooming or slabbing mill
after having come from an open hearth or other steel producing
furnace.
The equipment consists of various components, including
a hot mill which does initial rolling to reduce the gauge of
the metal and a cold mill which further rolls and thins out the
material. The finished product of the cold mill can be either
coiled or stacked. The machinery which is offered for sale
includes coilers, as well as a flying shear line for tin plate
which is capable of cutting the finished metal into desired
lengths. The equipment is not complete in some respects and
certain electrical parts are missing.
This equipment was designed with the expectation that
about 75 percent of its output would be marketed as cold rolled
products and about 25 percent as hot rolled products. To meet
the requirements for the production planned, which amounted to
400,000 metric tons annually of steel strip, the hot mill was
to be operated at a capacity of approximately 100 tons per hour.
The output of this mill would vary depending upon the products
being rolled, the turns per day operated, and the furnace
capacity provided for supplying the heated slabs.
Detailed specifications of the property, and information
regarding the terms and conditions of sale, together with the
bid forms m?..y be obtained fromoOo
Mr. Laurence B. Robbins, in
care of Foreign Assets Conrol, Treasury Department, Washington 25*
D, C.

- 19 -

Thm adoption of the revision feill wo.ll make most of the necessary
eham^ea in the structure at the tax Jem, with the emmptlen at a few
areas which w® have rmerved tar further analysis end 2m tar
rweoflmfidai&os** The revision bill will have iaw~reamMsm benefits
both ta the B O H O M at Indl^idmle directly attested &w£ to the whole
country tlaraagh the removal at tax roari-blocks to eeoncmda growth.
Once this revision bill has been adopted, we can look forward to making
further reductions in tax rates as additional reductions In Government
expenditures are brought into sight. With appropriate reductions in
retee, it Hill he pmmihlm to distribute the remitting, tax burdens
fairer among all c&tisef** Mm look tarmrd eomtldentmlf t©tli© emctment
mi th# tax rerlslon bill.

~m
emmMm

tar thm tm4Z& m$m thmmrn mhmmm

mm $%W@

mmthet^et

bucket te£ rata warn h i»re«*sffe* Oa tM«. €aei|«pla©% the aaatawttoa •
has g^ae <§0i»i 5 p*vca«t asii tlw tax rate hat gcsw up $®Q jpavenrtf
mtm remwatlma ~~ atai mt imrmmma la<*jbw^tla-aw-~~ mm mUed.
tm?1*mm$ attma&t tm reUmm

Imedmm im thm mrdmw in wWbefe may- \mtm

3J^pfiHpaa*

&® xmreamm in taw ^Bw^moa %m $ M & $ wmM
in thraa teai « U federal immm
«itte three mhmrem mmM

Umm*

It mmM

emmm

mm taxpayar

mmm that * fasiiljr

paw m laWAWluax will taw*7 late** «*&*«<«

% # 50® a y*ar, amer tb$® a muth* IVaatfaa* ateMlMarr «» »**& M5»
aaiti he fa*©niii owitiaf tmm
not hmU&m

nim® thmy maid he mt9 feat tlwt *w tiM

tiwt thm may to M * « taw oat- i m to emmm

«uaimi'«C

i ^ r i a m £rc« rofc* «ogr itseann tax &4 all. St want a« to- mam
*Thm mad Mms&stm awaaw9t mmU far Jamrwt position
®r trmtsmmk* mtwmX3mf he mmte all JHUUMI C I U M I to
pay tliair fair atom of taw tn-:x«*f amifa*wanta «*ai?y e#i&
ew21*efce4 to *• #pe&t via*)? mad ec& soatteally* Aat avaty
real kmerimm $m promi *• ® ^ ^ **• ^1Str® ** to ^v®**®*
Is «ar and paaeav I hmmrn aaesi oowstloaa asaa^laa mt Smtlean
pride an* «f taw waawwatagfa«tJjaw4rta§ aammm «f 3 ^ «
ilmrimm citlsaaw* I a&®$*3$r ctoa*t believe far one &©&&rfct
tawt afloat I » * * U « § I * to Mva is ttda cmstery wmtm

mmemm

elaw t© p&y his ©»a fair am jaw* afaara of taw owt o* **••

• 17dmtimtt vail opproiioi* Hi ffilia if thm awtta. tax rmthmt^m %m
mmetmda

hdMtivmd, tax cuta a* ths fpwawat tim would

$mp&mtm

Ws® awftlv* program of the Ada&a&atvatian*
It-ia tmr thdm r&uaoa that no oppo« taw aawamL s^ggaatlona
nhich hmm

ham mdm

in recent wmekm for laeroaawa 1 B taw

pm*mml

«aWawUoo ia taw ixrijtetfawl jteaww tax ay ftOOb IflDO* aaa #fOH

Wm

afaawa tha prawoat figure of. I-SO0. Ho not oiuy qpgwae any jEtortaw*
in revenue ureter OJdL&Mag cojsditicns, but n» fcwllaiw that tax

*<**% *«•

Xon ^ t il ra&aH idbat £iawator Claftrgo* itfao haa proiMaed thm.
mm&Grmam In exactions, migg&stm In M a ©|>e©ch to ./cu $a@ta
ago that tax ^nr<jeri3i altouM aw- gwllavwa1 aM^fa 'in the &rder In nfeioh
ttsay $md begn 3igposa4» "Wo agraw with this g«er*l .. rin-cipie, cut thm
that It aallt /.or m k reatatioae* not lawrwaaw* In

.the prmment mmm^tlm

mt I600 a ]arawa haa ©aaa la effect

19li6 ulna it w # raJaetf If tfao tepittiaia Caapreee fM I $9D0» abtca
tea feats ia O3tigt#neo alace lSfcfe* M s r to 15t&» taw aawaption wan
& f f « r a & for aSagfce aa* avrriad f»€pl€ and 4#p®»knfca»
t*k* m mmma

-JtaUy ****» **w?ew olCLaraa* ym will flaw that taw

total ewaewtlee* a* fiur back m
am*

But If yaw

1 ? U *»re •&*?& e©apira4 with ^3,000

J* tawt tlaw# taw lire*teaefce*tax »«te waa 10 parawawi it ia

a w 20 pirooufc. Aaaal la X $ # , taw laat year bafora P « r l Barter* tlia

16-

The policy of toe Adslaietrfetics la to peas beak to taxpayers
through tax reductions aavinge in Qevemseiit expenditures ee rapidly
ae tola can be done while maintaining a Bound budget positioa. Ihe
reduction io expenditure alreaoy aeae a m to sight perait too total
tax redactiona* amounting to. alawat $6} bUliea* ahiie at the ease
tiaw the deficit, ehicfe eaa over $9 hmien

is fc»*j*jS fieeal year,

la eetimted to be laae than $} billion in the ^ x t fiscal year*
The bill for reduction of excise taxea a e before the Senate l&li,
if adopted, load to a further lose of revenue of alawat U billion,
bringing total tax redoetioae close to f 7.5 billion. Thie la a
tremendous reduction, all occurring in a short period of tiaw*
Is viae of the very large reductions in expenditures which are

S
under way, it la atoaad economic policy to bring taxes damm ermm oof ore
the budget ie fully balanced, k balanced bud ret is and will resale
one of the objectives of the Acis&aistration. Bat a very rapid
cartailment of Goifernaent expenditures without tax reduction would
cause too" great a dislocation la the econoay, which aaa been
artificially supported by Goveraeent deficits.
We here mated that between $6& and Sff§ billion ia tax cute are
likely to be made in the first six months of this year. We do not
feel that the pre soot situation requires ao eaergeocy tax redaction
profraa. foe deficits for both t he current fieeal year and tee aaxt
year ere even now estimated at about 13 billion, and next yearfa

•1S1 want to turn flaaUy to a brief eaaeaaalaa of the general tax
and budget policy of the Adaiisietretioiw
In taw aarlaf' of last year, we a are aoaf routed with the prmqpaat
at a very letfe deficit ©a tfeefaaalaof the eaYewjILtara aaw tax prmgrm
of taw prior aoMslstratioB*

Xfale deficit tarawd oat to fee mere thm

$9 ULUioa. aaa projected eawaealttBrea for ttawal lf$% mem

Hi H U l a a

falser than 1*53.
zMeT firet decision was toraaantainrevenue until the- mmfpmdiSwma
and deficits could be redoeedU

Taw awe Adwla&etratlaa reeoaweadea*

and the Oeagreea voted, a 6-awataw extol*®!©** of the emem

prof ite tax,

even thouyh we did Dot like thie tax.
Expenditures for the currant — 19$h — M e w l year are being
reduced ff failllaa below thoeo ©rl^dnolly projected end a farther
awaeatlfla of mere than #$ hmmm

la eattaate* for the IW$$ J3Lawal year*

*en the baole of tkeaw eaawatiltam rewacttawa* tawrfa^aarylet tax
redmotlo^i could be made, ffeey were welcome firet steps* towards lower

^*e reduotiose la lawlvldeal Imme texee mmn a savings to tea*
paywna — and a lawa of reveiiae to the Govevaawa* —
full yam*

of 13 billies in a

Saw aliadaatioa of taw exeeee preflta tea aaouate to

$2 IdJPUoa* the tax. -revitiiott MM
taaqpayaew of abomt |1.5 billion*

will involve additional savimge to

-la-

ve are receiving criticiaas frca baelaeee concern© of the
provlelea which require* corporations to sake partial advance
payasate In the third and fourth quarters of the taxable ytar.
This plan would be put into affect very fradaally, atartiag with
$ percent per quarter in 1955, end reacniog 25 perceot la 1959*
Gewpaalee with tax liabilities of lest than £60,000 would sot be
affected — theee represent 90 percent of the corpoz atiooe.
tale proposal would aaeiet the Sreaeery by gpreediag taw
collectione evwaly throughout the year — etherwie* we will gat
all our taxes frow eerporatiesc la Hares aad June. It will, la
the loag run, help pot corporation* la a sounder financial
*

condition — too aaay BOW depend oa their tax ll&biiittf to help
ftaearw their operations. Individuals are now oa a pay-ae-yoo-g©
basis aad with tale chaoge, eorporatloae will by 1959 be afaea* am
close to a ewrreat basis am la f eaeiatie.
Theee are only a few of the aasy eaaafee In the lateraal &eveaee
Cede. As yea here observed, it is a tax refora bill* deaigaed to
correct the major defects aad to help the whole «ccnc*y, both iaaedlately
and in the long run. It la ejalte aafair to attawpt to coapare It
with ether plane to live iaaeciate tax reductlaaa on a big acale.
^^^mm cost of the bill la lows of reveaee la &•* hi Uion, cat em
important feature la that the corporation rate is continued at $2
percent instead of being permitted to go deem to a? perceat. Thie
will bring la £1.2 billion — alawat enough to finance the entire cost.
Same, it ie not a ^hand-out0 to baeiaeea.

- 13 and to risky enterprises? the additional year for tne
carryback increases the opportunity for prompt tax relief in
the year of loss when the refund is most needed.
Important changes have been made to remove handicaps on
investment abroad.
Two and a half million farmers will benefit from changes
in the treatment of depreciation and the increased allowance
for soil conservation expenses.
In addition to giving tax relief to many millions by
removing these inequities, the bill will also plug a number
of loopholes which have crept into the system, and thus save
revenue. Chairman Reed described fifty specific provisions
to close loopholes.

- 12 ~
Carrying charges on installment purchases will be
deductible as interest, even if the amount of these charges
is not stated separately in the purchase contract.
Many of the revisions will be of particular benefit to
small business; several of th#m were recommended by the Small
Business Committees of the Congress, including those of previous Administrations. The depreciation and double taxation
of dividends provisions will be particularly helpful to small
business. Laws covering the taxation of partnerships will
be spelled out la the statute for the first time. This will
facilitate the formation and continued operation of partnerships. An option to capitalize or wrlte£ off currently the
cost of research and development work will permit small companies to do what larger companies with well-established
research laboratories already have done, likewise, a shifting
of the burden of proof to the tovernment in cases involving
the unreasonable accumulation of earnings will be beneficial*/
The changes concerning corporate reorganizations will help
make it possible for smaller companies to maintain their
continued independent existence when one owner-management
group retires or needs to realiue on part of its investment.
The longer averaging period for corporation income will be of
particular benefit to small businesses with fluctuating incomes

u
if he earns more than $600* — 1,800,000 taxpayer* will
benefit from this change.
Several people sharing the support of a dependent may
decide among themselves that soma one of them is to have the
benef it of the e^pptieni f oxter children will be included
as dependants $ full split income treatment will be allowed
to widows and widowers with dependant children and single
people with very close dependent relatives, regardless of
where they live, — one million taxpayers will be affected
by these changes.
Medical expenses in excess of 3 percent of a taxpayer's
income will be deductible, compared with those over 8 percent
under present law, — eight and a half million taxpayers will
benefit.
Child care expenses will be deductible by half a million
working widows who support young children*
% to $100 a week of sickness and accident benefits will
be non-taxable to many millions of employees*
Employees1 pension and profit-sharing plans will be
strengthened.
Up to 11200 a year of retirement income will be tax
exempt for one million persons aged 05 and over*

- 10
is between $8,000 and $10,000. The present tax system makes
it difficult to attract risk capital to create these jobs.
It encourages corporations to finance themselves by beaded
indebtedness, because interest can be deducted for tax purposes*

In recent years over three-quarters of the financing
*

by industry has taken the form of beaded indebtedness. This
makes the economy more vulnerable in periods of business
unsettlement*

n

This plan for partial relief m

double taxation of divi-

dends was not designed to give relief to any one group, but
to help all*

In recent years people in the lower Income groups

have been investing ttmrm and more in common stocks* Ton are
familiar with the figures which were recently released by
one of the large corporations shewing that of their 300,000
stockholders, §6 percent made less than $5000 per year from
all sources. By giving tax exemption to the first $100 of
dividends ($200 to married people when both own stock), many
people with lower incomes would he encouraged to become
shareholders and thus participate in the growth of American
industry.
Many provisions of the bill will benefit individuals.
One will permit parents to claim a child as a dependent even

- 9 For many years, Inland hae had a system which largely
eliminates double taxatiea. It ia latcreatiag to note that
this plan has net been changed during the periods when the
Leber 0everament was ia central. Canada, several yeare age,
adopted a plan under which the stockholder now receives a
credit of 20 percent of dividends received, compared te 10
*

percent in the pending bill*
The plan proposed in the bill generally follews somewhat
-along the lines mt the Canadian plan except that the smaller
stockholder receives more favorable treatment than ill Canada.
The first $50 ©f divideade — $100 in 1955 — would be exampt
from taxation and the stockholder would receive, in addition,
a credit of 5 percent — 10 percent the second year — en
dividends received. This plan ^except for these in the lower
income tax brackets, where the relief is greats
relief of only about half as much as existed

y

The present double taxation, we feel, represents a real
handicap to expansion of business. This is a capitalistic
system; in the past we have depended on risk capital for
development of new enterprises and for expansion of old ones.
Large sums are needed to create jobs. It is estimated that
the average cost of providing plan.t and equipment for one jeb

8stockholder in turn pays a tax varying frost 20 percent to
91 percent. If yen follevr through en $100 of earnings ef a
corporation you will find that the cerporation pays a tax
of $52, leaving $48. If all this were paid eat in dividends,
the stockholder in the lowest bracket would then pay a
20 percent tax, leaving him $S3 out ef the $100 and if ha
should he in the $50,000 bracket the net would be $13 f or a
single taxpayer and $20 for a married couple*
Prior to 1936 dividends were entirely free tmm the
normal tax, which was usually the same as what we now ©mil
the first bracket rate. If we had the same plan in operation
today, dividends would be free from the first 20 percent tax.
In the Tax Message of 1936, President Roosevelt, in proposing
a change in the corporate tax, recognized the inequity ef
double taxation of dividends, mi he suggested a plan under
which the corporation would be taxed only for the earnings
which were not distributed to the shareholder. In the confusion over the enactment of this proposal, the dividends-rieeivel
credit to the individual was abolished and has not been ia the
law since* Thus, since 1938, dividends have been subject to
full double taxation.

- 7 .
about two-thirds of the east ef new buildings, machinery
and equipment, including farm equipment, ia depreciated In
the first half of its life* This would encourage investment
because the taxpayer could get a larger share of the coat
back in a shorter period of time. It would be particularly
helpful to small concerns in financing the purchase ef new
equipment. What we are doing is simply to allow tax deductions for depreciatien in accord with the facts. Aa every*
one knows, the value ef an automobile, for instance, declines
at a faster rate during the first year*

In the long run, of

course, there is no increase in tax deductions; in later
years the tax allowance would be less but taxea higher*
This prevision is one of the moat important in the bill and
would greatly stimulate spending for modernising and expanding plants and for creating jobs.
Next, let us discuss the provision to grant limited
relief to the double taxation of dividends — a provision
which many dispatches would indicate is the only thing in
the bill.
There is an inequity in the present tax treatment of
dividends. The corporation pays a 52 percent tax on earnings
before anything is distributed to stockholders. Then the

6 written off only once. The law itself p w M e s that "there
shall be allowed as deductions... a reasomble allowance far
the exhaustion, wear and tear (including a reasonable allowance for obsolescence)—\ m 1S§4 # in a search for additional revenue, the Ways and leans eemmittee was considering
a bill to reduce depreciation allowances %y 25 percent, across
the board. The Treasury realised that this meat-axe approach
would cause many hardships, especially to smaller businesses,
and proposed a mmm flexible alternative, but one which would
nevertheless increase the revenue considerably. This plan
was adopted*
Since that time there has been a great deal of criticism
that the allowances were inadequate and not in accord with
actual practice* This probably is the most widespread critl*
clam of the tax structure. In recent years many countries
have considerably liberalised the treatment of depreciation,
with the view to stimulating plant expansion and modernization. The changes were effective* /
The revision bill would permit more latitude in selection
of methods of depreciation and would permit larger depreciation charges during the earlier years of use. lader one
method — the so-called double rate declining balance —

5
The Cotsaittee for Eoonoalc D.Telopaent, in 1947, in
its objective tax study, recemme^ied, among other things,
that the tax system be revised to give greater deprweiatiea
leeway; that tax rates be lowered rather than persona!
and
exemptions increasedf/that steps be taken to reduce the
double taxation of dividends.
Uany other reports could be cited to show the demand
for tax revisions and that the objectives of many provisions
in this b U i have had widespread support * Da many cases
there has been pretty general agreement as to what should be
done*
Thus, this bill does net contain revisions which we
have suddenly cooked up; its previaiens are based upon many
Investigations and long objective study.
low let us look at some of the major revision: first,
the allowance for depreciation*
Prior to 1934, the taxpayer had wide leeway as to the
amount which he could write off each year against his current
income as allowance for the cost of machinery, equipment and
his
buildings. So long as jft$s/ policy was consistent and in
accordance with sound accounting practice, the tax authorities
raised little question, realising that the cost could be

- 4
House Special Committee on Post-far Economic Peliey and
Planning (the Colaer Committee), which consisted of ten
Democrats aad eight Republicans, made a number of recommendations in 1944 and 1948 on tax policy which would facilitate the conversion from war to peace end would encourage
the creation of jobs. For instance, they stated that in
view of the heavy tax load which we would hare for some
time, all citizens, other than those below a minimum subsistence level, should bear some share of the income tax
burden. They suggested that consideration be given to the
elimination of the present double taxation of dividend:
Income, and that this tax reform would net only correct an
inequity in the present tax structure, but would else provide
an important stimulus to risk capital. The reports also contained a proposal to permit greater latitude in making annual
allowances for depreciation.
The Democratic minority of the House lays and leans Committee, in 1947 and 1948, suggested a comprehensive revision
of the entire income tax system and listed such important
matters as double taxation of dividends and more flexible
depreciation. Incidentally, this minority report was signed
hj many of the men who are now minority members of the Ways
and leans Committee.

— 8 —
in some immediate leas in revenue.
Some of the inequities and handicaps in the present
system date baek to the changes which were made in the
early 1980 f a. The effects of these restraints were net so
evident then because the Federal taxes represented a comparatively small amount of the total national income, we
might be able to get by for awhile with a bad tax system
which takes 7 percent of the national income, as it did in
1936, but it is a different story when the Federal tax
receipts represent about 25 percent of the national income,
as they do today.
It is our view that the present tax system, unless
changed, will exert serious restraint on economic growth in
the future, la recent years, war and inflation have kept
the economy active, and again the bad effects of the tax
system have been hidden. Hone of us wants to depend on war
and inflation in the future; we must depend on the normal
incentives for growth.
Sinee World far II, there has been a persistent demand
for revision of the tax structure. Many of the provisions
of the bill have been recommended by Congressional committees
in the past and by many organisations. For instance, the

- 2 Since we were first asked by the President, in his 1958
State of the Union Message, to review the tax system with a
view to making recommendations to Congress, our aim has been
to determine what changes should be made for the best interests
of the country as a whale. We have been aided considerably by
the studies ef the tax system which have been made in recent
years by Treasury and Congressional staffs, and by many
organisations. Because of the tight budget situation, we
have also had to keep constantly in mind the revenue loss
involved in each change. We gave priority te those changes
which were needed to remove the gross inequities or those
which we thought would, by stimulating activity, increase
the national income and, incidentally, tax revenues in later
years.
Before discussing the major revisions In the bill, we
should consider for a moment the background of eur present
tax system. It has grown haphaaardly over the last 20 years,
with taxes being added on top of taxes. This, of course, was
due largely to the great need for increased revenue to finance
World War II and the defense build-up since Korea. It is
almost Impossible to revise a tax system with revenue requirements Increasing, since almost Brmrj reform or revision results

FOR RELEASE AT \. P.H. ^lEDNESDAY, KIRCH 2k9 195^4EXTRACTS TROM REMARKS BY UNDER SECRETARY OF THE TREASURY MARION B. K)LSOM BEFORE THE
SATICMAL PRESS CLUB LUNCHEON HEWING, -WASHINGTON, D. C. MARCH %y 1 9 ^ .

Under Secretary of the Treaaury Marion B*
~H^fere~ttar
jfstlonal Press Glub, Washlagten, B.C.

XM- (^
FAteEMPORTANCE OF

TOt TAX RIf ISIOH BILL

I am rmtj glad to have this opportunity to talk te
you about the Tax Revision Bill which last week was passed
by the louse of Representatives by a vote of 889 to 80.
This 875-page bill represents many months of intensive work
by the combined tax staffs of Congreaa .and the frweaury
Department, by the members of the Ways and leans Committee
and Treasury officials. It constitutes a major revision ef
the Internal Revenue Code — the first complete overhaul
since the Income Tax was first adopted*

Its purposes are

to remove inequities; to reduce restraints on economic
growth and the creation of jobs; te close loopholes; and to
simplify the tax laws as far as possible.
This bill was not designed as a tax reduetiea measure
but it is a long overdue tax reform, l^ay of its provisions,
however, will give relief to millions of Individual taxpayers. The immediate enactment will be particularly helpful at this time when we mml to encourage private spending
by business concerns to create jobs, as well as spending ty
consumers.

278

TREASURY DEPARTMENT
Washington

FOR RELEASE 1 P.M..
Wednesday, March 24, 1954.

H-433

Extracts from remarks by Under Secretary
of the Treasury Marlon B. Folsom before
the National Press Club Luncheon Meeting,
Washington, D. C , March 24, 1954.
THE IMPORTANCE OF THE TAX REVISION BILL
I am very glad to have this opportunity to talk to
you about the Tax Revision Bill which last week was passed
by the House of Representatives by a vote of 339 to 80,
This 875-page bill represents many months of intensive work
by the combined tax staffs of Congress and the Treasury
Department, by the members of the Ways and Means Committee
and Treasury officials. It constitutes a major revision of
the Internal Revenue Code — the first complete overhaul
since the Income Tax was first adopted. Its purposes are
to remove inequities; to reduce restraints on economic
growth and the creation of jobs; to close loopholes; and to
simplify the tax laws as far as possible.
This bill was not designed as a tax reduction measure
but it is a long overdue tax reform. Many of its provisions,
however, will give relief to millions of individual taxpayers.
The immediate enactment will be particularly helpful at this
time when we need to encourage private spending by business
concerns to create jobs, as well as spending by consumers.
Since we were first asked by the President, in his 1953
State of the Union Message, to review the tax system with
a view to making recommendations to Congress, our aim has been
to determine what changes should be made for the best
interests of the country as a whole. We have been aided considerably by the studies of the tax system which have been made
in recent years by Treasury and Congressional staffs, and by
many organizations. Because of the tight budget situation, we
have also had to keep constantly in mind the revenue loss
involved in each change. We gave priority to those changes
which were needed to remove the gross inequities or those which
we thought would, by stimulating activity, increase the national
income and, incidentally, tax revenues in later years.

p7Q
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t

- 2 Before discussing the major revisions in the bill, we
should consider for a moment the background of our present
tax system. It has grown haphazardly over the last 20 years,
with taxes being added on top of taxes. This, of course, was
due largely to the great need for increased revenue to finance
World War II and the defense build-up since Korea. It is
almost impossible to revise a tax system with revenue requirements increasing, since almost every reform or revision results
in some immediate loss in revenue.
Some of the inequities and handicaps in the present
system date back to the changes which were made in the early
1930's. The effects of these restraints were not so evident
then because the Federal taxes represented a comparatively
small amount of the total national income. We might be
able to get by for awhile with a bad tax system which takes
7 percent of the national income, as it did in 1936* but
it is a different story when the Federal tax receipts
represent about 25 percent of the national income, as they
do today.
It is our view that the present tax system, unless
changed, will exert serious restraint on economic growth in
the future. In recent years, war and inflation have kept
the economy active, and again the bad effects of the tax
system have been hidden. None of us wants to depend on war
and inflation in the future; we must depend on the normal
incentives for growth.
Since World War II, there has been a persistent demand
for revision of the tax structure. Many of the provisions
of the bill have been recommended by Congressional committees
in the past and by many organizations. For instance, the
House Special Committee on Post-War Economic Policy and
Planning (the Colmer Committee), which consisted of ten
Democrats and eight Republicans, made a number of recommendations in 1944 and 1945 on tax policy which would facilitate the conversion from war to peace and would encourage
the creation of jobs. For instance, they stated that in
view of the heavy tax load which we would have for some
time, all citizens, other than those below a minimum subsistence level, should bear some share of the income tax burden.
They suggested that consideration be given to the elimination
of the present double taxation of dividend income, and that this
tax reform would not only correct an inequity in the present
tax structure, but would also provide an important stimulus
to risk capital. The reports also contained a proposal to
permit greater latitude in making annual allowances for
depreciation.

^

- 3 The Democratic minority of the House ways and Means
Committee, in 1?^7 and 19-S, suggested a comprehensive revision
of the entire income tax system and listed such important
natters as double taxation of dividend and more flexible
depreciation. Incidentally, this minority report v.Tas signed
by many of the men who are now minority members of the Ways
and I leans Committee.
The Committee for Economic Development, in 1947, 1"
its objective tax study, recommended, among other things,
that the tax system be revised to give greater depreciation
leeway; that tax rates be lowered rather than personal
exemptions increased; and that steps be ta^:en to reduce the
double taxation of dividends.
Many other reports could be cited to show the demand
for tax revisions and that the objectives of many previsions
in this bill have had widespread support. In many cases
."• r r M-*
there has been pretty general agreement as to what should be
Thus, this bill does not contain revisions which we
have suddenly cooked up; its provisions are based upon many
investigations and long objective study.
Nov: let us lock at seme of the major revisions: first,
the allowance for depreciation.
Prior to 1934, the taxpayer had wide leeway as to the
amount which he could write off each year against his current
income as allowance for the cost of machinery, equipment and
buildings. So long as his policy was consistent and in
accordance with sound accounting practice, the tax authorities
raised little question, realising that the cost could be
written off only once. The lav; itself provides that "there
shall be allowed as deductions... a reasonable allowance for
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the board. The Treasury realized that this meat-axe approach
would cause many hardships, especially to smaller businesses,
and proposed a more flexible alternative, but one which would
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v.ras adopted.
Since that time there has been a great deal of criticism
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actual practice. This probably is the most widespread criticism
of the tax structure. In recent years many countries have
considerably liberalized the treatment of depreciation, with
the view to stimulating plant expansion and modernization. The
changes were effective.

- 4 The revision bill would permit more latitude in selection
of methods of depreciation and would permit larger depreciation
charges during the earlier years of use. Under one method —
the so-called double rate declining balance —about two-thirds
of the cost of new buildings, machinery and equipment, including farm equipment, is depreciated in the first half of its
life. This would encourage investment because the taxpayer
could get a larger share of the cost back in a shorter period
of time. It would be particularly helpful to small concerns
in financing the purchase of new equipment. What we are
doing is simply to allow tax deductions for depreciation in
accord with the facts. As everyone knows, the value of an
automobile, for instance, declines at a faster rate during
the first year. In the long run, of course, there is no
increase in tax deductions; in later years the tax allowance
would be less but taxes higher. This provision is one- of the
most important in the bill and would greatly stimulate
spending for modernizing and expanding plants and for creating
jobs.
Next, let us discuss the provision to grant limited
relief to the double taxation of dividends — a provision
which many dispatches would indicate is the only thing in the
bill.
There is an inequity in the present tax treatment of
dividends. The corporation pays a 52 percent tax on earnings
before anything is distributed to stockholders. Then the
stockholder in turn pays a tax varying from 20 percent to
91 percent. If you follow through on $100 of earnings of a
corporation you will find that the corporation pays a tax
of $52, leaving $48. If all this were paid out in dividends,
the stockholder in the lowest bracket would then pay a
20 percent tax, leaving him $33 out of the $100 and if he
should be in the $50,000 bracket the net would be $13 for a
single taxpayer and $20 for a married couple.
Prior to 1936 dividends were entirely free from the
normal tax, which was usually the same as what we now call
the first bracket rate. If we had the same plan in operation
today, dividends would be free from the first 20 percent tax.
In the Tax Message of 1936, President Roosevelt, in proposing
a change in the corporate tax, recognized the inequity of
double taxation of dividends, and he suggested a plan under
which the corporation would be taxed only for the earnings
which were not distributed to the shareholder. In the confusion
over the enactment of this proposal, the dividends-received
credit to the individual was abolished and has not been In the
full
law since.
double taxation.
Thus, since, 1936, dividends have been subject to

- 5For many years, England has had a system which largely
eliminates double taxation. It is interesting to note that
this plan has not been changed during the periods when the
Labor Government was in control. Canada, several years ago,
adopted a plan under which the stockholder now receives a
credit of 20 percent of dividends received, compared to 10
percent in the pending bill.
The plan proposed in the bill generally follows the
lines of the Canadian plan except that the smaller stockholder
receives more favorable treatment than in Canada. The
first $50 of dividends — $100 in 1955 — would be exempt
from taxation and the stockholder would receive, in addition,
a credit of 5 percent — 10 percent the second year — on
dividends received. This plan provides relief of only about
half as much as existed prior to 1936, except for those in
the lower income tax brackets, where the relief is greater.
The present double taxation, we feel, represents a real
handicap to expansion of business. This is a capitalistic
system; in the past we have depended on risk capital for
development of new enterprises and for expansion of old ones.
Large sums are needed to create jobs. It is estimated that
the average cost of providing plant and equipment for one job
is between $8,000 and $10,000. The present tax system makes
it difficult to attract risk capital to create these jobs.
It encourages corporations to finance themselves by bonded
indebtedness, because interest can be deducted for tax purposes.
In recent years over three-quarters of the financing by
industry has taken the form of bonded indebtedness. This
makes the economy more vulnerable in periods of business
unsettlement.
This plan for partial relief of double taxation of dividends
was not designed to give relief to any one group, but to
help all. In recent years people in the lower income groups
have been investing more and more in common stocks. You are
familiar with the figures which were recently released by
one of the large corporations showing that of their 300,000
stockholders, 5^ percent made less than $5,000 per year from
all sources. By giving tax exemption to the first $100 of
dividends ($200 to married people when both own stock), many
people with lower incomes would be encouraged to become
shareholders and thus participate in the growth of American
industry.

- o Many provisions of the bill will benefit individuals.
One will permit parents to claims child as a dependent even
if he earns more" than $600 — 1,500,000 taxpayers will benefit
from this change.
Several people sharing the support of a dependent may
decide among themselves that some one of them is to have the
benefit of the exemption; foster children will be included
as dependents; full split income treatment will be allowed
to widows and widowers with dependent children and single
people with very close dependent relatives, regardless of
where they live -- one million taxpayers will be affected
by these changes.
Medical expenses in excess of 3 percent of a taxpayer's
income will be deductible, compared with those over 5 percent
under present law — eight and a half million taxpayers will
benefit.
Child care expenses will be deductible by half a million
working widows who support young children.
Up to $100 a week of sickness and accident benefits will
be non-taxable to many millions cf employees.
Employees' pension and profit-sharing plans will be
strengthened.
Up to $1200 a year of retirement income will be tax exempt
for one million persons aged 65 and over.
Carrying charges on installment purchases will be
deductible as interest, even if the amount cf these charges
is not stated separately in the purchase contract.
Many of the revisions will be of particular benefit to
small business; several of them were recommended by the Small
Business Committees of the Congress, including those of
previous Administrations. The depreciation and double taxation
of dividends provisions will be particularly helpful to small
business. Laws covering the taxation of partnerships will
be spelled out in the statute for the first time. This will
facilitate the formation and continued operation of partnerships. An option to capitalize or write off currently the
cost of research and development work will permit small
companies to do what larger companies with well-established
research laboratories already have done. Likewise, a shifting
of the burden of proof to the Government in cases involving
the unreasonable accumulation of earnings will be beneficial.

- 7 The changes concerning corporate reorganizations will help
make it possible for smaller companies to maintain their
continued independent existence when one owner-management
group retires or needs to realize on part of its investment.
The longer averaging period for corporation income will be cf
particular benefit to small businesses with fluctuating incomes
and to risky enterprises; the additional year for the
carryback increases the opportunity for prompt tax relief in
the year of loss when the refund is most needed.
Important changes have been made to remove handicaps on
investment abroad.
Two and a half million farmers will benefit from changes
in the treatment of depreciation and the increased allowance
for soil conservation expenses.
In addition to giving tax relief to many millions by
removing these inequities, the bill will also plug a number
of loopholes which have crept into the system, and thus save
revenue, Chairman Reed described fifty specific provisions
to close loopholes.
We are receiving criticisms from business concerns of the
provision which requires corporations to make partial advance
payments in the third and fourth quarters of the taxable year.
This plan would be put Into effect very gradually, starting with
5 percent per quarter in 1955, and reaching 25 percent in 1959.
Companies with tax liabilities of less than $50,000 would not be
affected -- these represent 90 percent of the corporations.
This proposal would assist the Treasury by spreading the
collections evenly throughout the year -- otherwise we will get
all our taxes from corporations in March and June. It will, in
the long run, help put corporations in a sounder financial
condition -- too many now depend on their tax liabilities to
help finance their operations. Individuals are now on a
pay-as-you-go basis and with this change, corporations villi by
1959 be about as close to a current basis as is feasible.
These are only a few of the many changes in the Internal
Revenue Code. As you have observed, it is a tax reform bill,
designed to correct the major defects and to help the whole
economy, both immediately and in the long run. It is quite
unfair to attempt to compare it with other plans to give immediate
tax reductions on a big scale.

- 8 The cost of the bill in loss of revenue is $1.4 billion,
but an important feature is that the corporation rate is
continued at 52 percent instead of being permitted to go
down to 47 percent. This will bring in $1.2 billion — almost
enough to finance the entire cost. Thus, it is not a
"hand-out" to business,
I want to turn finally to a brief discussion of the general
tax and budget policy of the Administration.
In the spring cf last year, we were confronted with the
prospect of a very large deficit on the basis of the expenditure and tax program of the prior administration. This deficit
turned out to be more than |9 billion. And projected expenditures for fiscal 1954 were §4 billion higher than 1953.
The first decision was to maintain revenues until the
expenditures and deficits could be reduced. The new
Administration recommended, and the Congress voted, a 6-months
extension of the excess profits tax, even though we did not
like this tax.
Expenditures for the current — 1954 -- fiscal year are being
reduced $7 billion below those originally projected and a
further reduction of more than S5 billion is estimated for the
1955 fiscal year.
On the basis of these expenditure reductions, the January
1st tax reductions could be made. They were welcome first
steps towards lower taxes.
The reductions in individual income taxes mean a savings
to taxpayers -- and a loss of revenue to the Government --of
$3 billion in a full year. The elimination of the excess
profits tax amounts to $2 billion. The tax revision bill will
involve additional savings to taxpayers of about $1.5 billion.
The policy of the Administration is to pass back to
taxpayers through tax reductions savings in Government
expenditures as rapidly as this can be done while maintaining
a sound budget position. The reductions in expenditures
already made and in sight permit the total tax reductions, amounting to almost $6-1/2 billion, -while at the same time the
deficit, which was over $9 billion in the last fiscal year,
is estimated to be less than $3 billion in the next fiscal year.

- 9The bill for reduction of excise taxes now before the
Senate will, if adopted, lead to a further loss of revenue of
almost $1 billion, bringing total tax reductions close to
$7.5 billion. This is a tremendous reduction, all occurring
in a short period of time.
In view of the very large reductions in expenditures
which are under way, it is sound economic policy to bring
taxes down even before the budget is fully balanced. A
balanced budget is and will remain one of the objectives of
the Administration. But a very rapid curtailment of Government
expenditures without tax reduction would cause too great a
dislocation in the economy, which has been artificially
supported by Government deficits.
We have noted that between $6-1/2 and $7-1/2 billion in
tax cuts are likely to be made In the first six months of this
year. We do not feel that the present situation requires an
emergency tax reduction program, The deficits for both the
current fiscal year and the next year are even now estimated
at about $3 billion, and next year's deficit will approach
$4 billion if the excise tax reduction is enacted. Additional
tax cuts at the present time would jeopardize the entire
program of the Administration.
It is for this reason that we oppose the several suggestions
which have been made in recent weeks for increases in the
personal exemption in the individual income-tax by $100, $200,
and even $400 above the present figure of $600. We not only
oppose any further loss In revenue under existing conditions,
but we believe that tax reductions, when they can be made,
should take the form of rate reductions.
You will recall that Senator George, who has proposed the
largest increases in exemptions, suggested in his speech to
you just a month ago that tax burdens should be relieved much
in the order in which they had been Imposed. We agree with
this general principle, but the record shows that it calls for
rate reductions, not increases In exemptions.
The present exemption of $600 a person has been in effect
since 1948 when it was raised by the Republican Congress from
$500, which had been in existence since 1944, Prior to 194'I,
the exemption was different for single and married people and
dependents. But if you take an average family with three
children, you will find that the total exemptions as far back
as 1941 were $2,700 compared with $3,000 now. At that time,
the first bracket tax rate was 10 percent; it is now 20 percent*
And in 1940, the last year before Pearl Harbor, the exemption
for the family with three children was $3,200 and the first
bracket tax rate was 4 percent. On this comparison, the
500
exemption
percent:
has gone down 6 percent and the tax rate has gone up

- 10 Rate reductions — and not increases in exemptions — are
called for in any attempt to relieve burdens in the order in
v/hich they were imposed.
An increase in the exemption to $1,000 would excuse one
taxpayer in three from all Federal income taxes. It would
mean that a family with three children would pay no income tax
until their income exceeded $5,500 a year, over $450 a month.
President Eisenhower, on March 15, said he favored cutting
taxes when they could be cut, but that he did not believe that
the way to make the cut was to excuse millions of Americans
from paying any income tax at all. He went on to say:
"The good American doesn't ask for favored position
or treatment. Naturally he wants all fellow citizens to
pay their fair share of the taxes, and he wants every
cent collected to be spent wisely and economically. But
every real American is proud to carry his share of the
burden. In war and peace, I have seen countless
examples of American pride and of the unassuming but
inspiring courage of young American citizens, I
simply don't believe for one second that anyone
privileged to live in this country wants someone
else to pay his own fair and just share of the cost
of his government."
The adoption of the revision bill will make most of the
necessary changes in the structure of the tax laws, with the
exception of a few areas which vie have reserved for further
analysis and later recommendations. The revision bill will
have far-reaching benefits both to the millions of individuals
directly affected and to the whole country through the removal
of tax road-blocks to economic growth. Once this revision
bill has been adopted, we can look forward to making further
reductions in tax rates as additional reductions in Government
expenditures are brought into sight. With appropriate
reductions in rates, it will be possible to distribute the
remaining tax burdens fairly among all citizens. We look
forward confidently to the enactment of the tax revision bill.

oOo

-3 -

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- 2

parent of 2 percent of the £ace amount of Treasury bills applied for, naelmss
the tenders are accompanied by an express guaranty of xyeiei by an incorporated
bank or trust company.
Ineuudintoly after the closing hour, tenders Trill be opened at one Federal
P.esorvo 3 amis and 3ra:aohes, following which tub lie announcement will be made
by the Treasury Department, of the amount and price range cf accepted bids.
Those submitting tenders will be advised cf the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accent or reject
an;" or all tenders, In whclj or in t>art, and has action in any such respect
snail be final. Subject to th^s- r^s^rvataons, nou—cc.motitivc tenders for
^200,000 or less without stated price free: any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement fcr accepted tenders in accordance ~rith the bids must be made or
completed at the Federal Reserve Bank on At>ril 1 19$U , in cash or
HUMpC

other immediately available funds or in a like face amount of Treasury bills
maturing Apr^l 19 1951i • Cash and exchange tenders Trill receive equal

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bills.
The income derived from Treasury bills, Trhether interest or gain from
the sale or otner uasposation of tne be—as, sha L not nave any uxonptmen,
as such, ?.nd loss from the sale or ether disposition of Treasury bills shall
not hav an~r so.,cial treatment, as such, tender the Internal ?.evenue Code, or
laws amendatory or supplementary tmuutc. The bi-Is snail be subject to
estate, inheritance; gift or oth-;r excise taxes, -irhothcr Federal or State,

X

TREASURY DEPARTMENT

• ,

Washington
FOR RELEASE, llORNIfllG NEWSPAPERS, /
Thursday, March 2$9 19$k * '
The Treasury Department, by this public notice, invites tenders for
$ Ia500»000i000 3 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing April 1. 19$k 3

in

the amount of

% 1,502,270^000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated April 1, 19$k , and'mil mature July 1, 19$k 3 when the face
mm-

—

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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
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time, Monday, March 29. 19$k
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must bo accompanied by

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE MORNING NEWSPAPERS,
Thursday, March 25, 1954.

H-434

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 April 1, 195^>
in the amount of $1,502,270,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 1, 195^
and will mature July l, 1954
when the face amount will be
payable without interest. Tney will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, March 29, 195^.
Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and in the case of 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 ofthe 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

91

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank |
on April 1, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 1, 1954.
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 k2 and 117 (a) (r) 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, revised, and this
notice, prescribe the terms of the Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

do-

" r W >

5

l'.£d 4>"^'

\Af\6.

J

figeaaAajar g~rr-t~rj~ 1i m yu Iff Humphrey today awarded to
the employees of Pittsburgh Plate Glass Company a special citation for the outstanding Savings Bonds record they achieved
during a recent payroll savings drive.
The Secretary presented the citation to Harry B0 Higgins,
president of Pittsburgh Plate Glass, who, in accepting on behalf of the company's employees, said 21,520 workers — over
70 per cent of the number employed — are now purchasing United
States Savings Bonds regularly through the payroll savings plan
and thus- investing close to $5t million a year,In 1 THM
In prcoont4ng tho citation^ Secretary Humphrey told Mr.
/ifXX &Smm^ttS£5/P^ AOC^- *mtc
Higgins that kos&ds&e employees of the Pittsburgh Plate Glass
Companyy are giving practical support'xo The national effort for
sound Government financing.
"3fais payroll savings record whioh you ectablislntl is an
tr

-^Sc^xxx&yyx, s+

achievement in which every participant can take pride.
" J^r^j/ - /4*^tW' A<^I^-MM
patrintio egffiirificfrelpingeach employee provide for his own
future security, while he Tlfficctly aocicts through hi& bol
purchasco the •flamming uJ liteJ^vcrmucatgiMflle^ecTeUry bctld;*"
nT

hrrmgfr |-1i" ii*|yr*TT^aflithTtea p i an^^**ry'l?yrrtffvr -PuBirTygT>i,hffn?14y^

fee3^rthe-grgao\igy Dopaxiaae*rtT^a^4rfes"'t[i$^^ tabk~of financing
the national debt in a manner that will preserve the relative
stability of the American dollar over the years•"

#

/ /

jy^'

Treasury Secretary Humphrey today awarded to the
employees of Pittsburgh Plate Glass Company a special
citation for the outstanding Savings Bonds record they
achieved during a recent payroll savings drive.
The Secretary presented the citation to Harry B. Higgins
president of Pittsburgh Plate Glass, who, in accepting on
behalf of the company's employees, said 21,520 workers--over
70 per- cent of the number enip!oyed--are now purchasing
Unite! States Savings Bonds regularly through the payroll
savings plan at a rate of close to $5-12 million a year.
Secretary Humphrey told Mr. Higgins that the cSfiaffeHRsy
and m\^ employees of the Pittsburgh Plate Glass Company in
promoting the payroll savings plan so effectively are giving
practical support to the national effort for sound Government
financing.
"Your payroll savings record is an achievement in which
every participant can take pride," the Secretary said.
''Bond-buying helps each employee provide for his own future
security, and helps the Treasury manage the national debt in
a manner that will preserve the relative stability of the
America:" dollar over the years."
0O0

ZfylA,

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, March 25, 195^.

H-435

Treasury Secretary Humphrey today awarded to the
employees of Pittsburgh Plate Glass Company a special
citation for the outstanding Savings Bonds record
they achieved during a recent payroll savings drive.
The Secretary presented the citation to
Harry B. Higgins, president of Pittsburgh Plate Glass,
who, in accepting on behalf of the company's employees,
said 21,520 workers--over 70 per cent of the number
employed—are now purchasing United States Savings Bonds
regularly through the payroll savings plan at a rate of
close to $5-1/2 million a year.
Secretary Humphrey told Mr. Higgins that the
management and employees of the Pittsburgh Plate Glass
Company in promoting the payroll savings plan so
effectively are giving practical support to the national
effort for sound Government financing.
"Your payroll savings record is an achievement in
which every participant can take pride," the Secretary
said. "Bond-buying helps each employee provide for his
own future security, and helps the Treasury manage the
national debt in a manner that will preserve the relative
stability of the American dollar over the years."
0O0

- 18 national affairs. Tne determination to bring budgets
under control, to avoid credit inflation, to look outward
as well as inward —these are progress!rig at e. hopeful
rate. If these developments can be encouraged and continued, they will pave the way for further stability and
further relaxation of controls.

- 17 -*
comiodities haTe been re-oyened.** In many^countries,
internal finance has been brought under control^ and
interry tional payments have been brought more nearly
Into oalanee. - -Xf* *-- ^>**~
Trace and payments, while still not so free as w#
would like, are freer tnan <?.t &ryy other time since the
end of the war. Foreign countries nave increased tneir
golc anc collar bylances by a^out $8 billion in the past
foir years. The need for United States aid is lessening.
All of these developments briny us closer to the day when
foreign countries will find their economies sufficiently
stable to :>enait the convertibility of their currencies
and t,.e freer movement of commerce. These are goals which
we are striving for. In t^e worcs of the Commission on
Foreign Fi-oyonit: Policy, ^convertible currencies constitute
an I,dispensable condition for the attainment of worldyide multilateral trace and tne maintenance of balanced
traae in a relatively free market."
r

'e are making progress. There is a firmer deter-

mination—not everywhere, but in yian important countries—
to turn away from trie politically easy thing, and toward
the economically necessary thlny, in the conduct of

- io economy are setter tocaj. zyy tney i^ave £beea for a Yery
IOLJ

tiae.

a ne.itaicF

Stup by
V.JF1C

tsy, in a costless number of ways,

jconomy Is

w

'14 constructed.

?hore nas been a marked improvement in t.\t uncerivlriy
sterility of xne free isoric economy.

. yy

countries, nave

improv-u t eir -ih.ee of yayments, str-:n>.z.......en their
i&onetary reserves, a.x c^yti^nec to jlacrease tneir, :rouuction.
Alx of tni:. is happening orule txj the ^ix^yat ic.niare.
Economic ^oilapse makes

fcooc

headlines, cut the., road otcy:

*

•

to gooc money and ecou^yilc

-

.

-

-

:

:

.

,_MA\\-

.ealtn is uauaii^ lecg cra-iaxic.

le are therefore likely xo be uhfcwai»e 01 how iiLch^ forward
progress is being mace until xon,-; after the event.-i#
Ifevertiieiess, If we

TOOK

carci

.LIV

at the recorc of

tne last year, we are able to find many r&Lsons for ^ptimisy
l!any steps forward—none of them woric-thajtimg , t eaca of
t em a step in the rignt direction--^ave taxen rlace.
Liscrlmini.ti-nE against collar goods nave bee., reduced,
and in one case at least, eliminatsc.

Itece.it moves yzve

heen made to rycuce the complexity 01 hyrangements ;/It~
reg&rc to sterling, t..e guilder a..c t.:s Leutscne yiark.
General markets for tne s^Ie a:;c purine se of mm

rtc t

- 15 coulc set in motion long-term inflatieaaf^ forces through
increases d n the volume of money, and in additions to the
reserves of the banking system, whieh would previce the
basis for a large potential expansion of money aad credit,
out of proportion to the business volume. 'zmk&iHz&,h*mm
Furthermore, such a move would upset a relationship
which has been of treat importance to ourselves and to the
world.

The value of the dollar is firmly linked to golc.

1*1 tn only one major change this has been true throughout
the history of our country J under Administrations ef both
parties.

O U T people, and foreigners as well, Mve^eome to

think of the dollar as a secure currency, steadfastly defined in terms of a specific amount^of omr-basic^monetary
metal.

This is a relationship which^Skoaid . ot*be disrupted.

It woulc oe a

rievous error, particularly at a time when

the world is achieving some element1of"stability, to open
w®the possibility that this nation was^prepared to make
periodic devaluations of its currency~in terms of r-olc1. "
Progress Being Mfde ^-In spite of the instabilities anc dangers which remain,
the world is makiag progress.

Tnat iw* the-final point I wish

to make here today5. The projects for a stable free worli

- 14 of a free gold market in the*United utates, which is
recommended in two of the bills before the committee.

Um

Under such a free market tkmw& would be two alternatives:

either the United States Government, with its $22

billion in reserves, would stay out of the market, and we
would have a gold price tnat fluctuated mp anc down depending upon the demand for a relatively small amount of new
golc yrocuction; or the-Government would stand ready to buy
and sell-.gold at the official price to prevent fluctuations.
The first alternative would tend in the opposite direction
from our ultimate goal—it would be in the direction of
more instability instead of more stability. ^fhe*Tsecond
alternative would be, in effect, full convertibility of the
currency into gold.
Price of Gold
Another bill before the Committee suggests taat'we
increase the price of gold.

;je believe that such a move

woulc be against tne best interests of the United States
tne our foreign irienos. An increase in the price, with
tue consequent upwarc, revaluation of this country's gold
stock, would be contrary to tue Droyrtm of maintaining
stability in our economy.

A revaluation of the frold stock

Another fact emphasises that uncierlying forces of
instability still remain in tne world,

hxcept^in the

case of a few countries, international trace and payments
are still hedged around by a multitude of administrative
and political controls such as quotas, excessive tariffs,
ano exchange controls.
Wnen more restrictions have been removed and convertibility has been restored at least among the. principal
currencies, we shall be freer to consider the return to
gold redemption.

If we were to try to force the4ype,ce ,by

resuming gold payments before the foundations were, more
firmly laid through a continuation of recent policies
toward souacer budget, credit and price- practices,_the
golc released in this country might simply move out into
hoarcs, and become the tool of the international speculatorGold payments are the seal of approval of gooc money, and
the fr-je world has not jfct gone far enougn in the achievement
of good money.. It is doubtful wnether trie United States
should consider yolc redeemahility of-,itp..currency until
other major countries are ready and able to do likewise.
Free Golc Market

lf

.^^

The same factors wnich.ae.ke.it unwise for us to return
to a

old coin standard now also argue against the opening

JLcCf

**

During periods of strict wartime controls, almost
the'whole of new production ivent into monetary reserves—
and, Indeed, even yoro as many nations required their
people" to turn tneir gold into government stocks. '"At
other times there has been great variation-in the use
of new gold.

In 1951 only seventeen percent went into

monetary reserves. In 1952 it was better—thirty-seven'
percent—and""'for 1953 it is estimated at forty-nine ,*
percent.

^Cyyn \&

These'facts demonstrate the powerful anc capricious
forces which could'be focused upon any stock4of "olcHcoins
or *mmt othor forms of monetary gold psriitted to circulate
freely within the Irnited States. If-coins were "circulated,
they would be subject to the pull of demand" from overseas
sources—a demand which would rise and' fall'with every
political and economic turn of events.

•

^ ^

mt

' ^ W . * ^m:

In this connection, it should be noted from my*' first
table that foreign countries and international ^institutions
kola about $12 billion in short-tersr collar balances in
this country. Under present circumstance!, theie^balances
constitute no danger to our economy Jl but in a different
situation—one in which yold. could be drawn'from the y •: •
Treasury in unlimited amounts' and hcterded or exported'''"^
without limit, these balances could be troublesome.-

"'

- 11 The figures in thia tacle, derived frompublications
of the International Monetary Punc, are for gold bars »,&nd
you y-ill note the fauctoationa in price and tne race&t
trend toward lower prices.
Prices for coins W;re hi^er.

yven uow, when concitious

are more stable than at any time since the end o| ^orla 'Var II,
gold sovereigns are selling at the equivalent of about ^40
aii ounce in various markets.
ihotnyr way of Judging world psychology about gold is
to observe the amount of new golc production. v;nich*J|aaJ|een
going la to world monetary stocks as compared with ...the edii*amount...^oing imto no are a or into industry aao the arts.ate
This is shown in Table III.

X ft ?yjy w*re eirc>-l^te«»

Office Memorandum • UNITED STATES GOVERNMENT
v> C <s

DATE:
TO

:

FROM

SUBJECT:

Xat&iy

y&u^^

Office /MLemoranduM • UNITED STATES GOVERNMENT
TO

:

FROM

SUBJECT:

DATE:

^Itmam^mm^

^ —

„, „ M I ^

~ 10 •
la!a ebb aua flow of strength &o*c cohilcshce In forelyn
countries, which in Urge -art accounted for tbast euceessiv
i.-itr-ifefies yy d*er**a*a y owe pole reserves, was reflected
^ia, in t ^ u a s in tne prlc^o£_olu in mar^aU throughout
t.mii marl-,

this ia stosn la the s^aoM ta.ie wj.^ea I ..nw^it

ilkc- tu lay before tne tosmltee.

A»-**<n*,xa Table i9 betwtgttha ::.«afe of 'lai?i# far^JI#ipi.
and the exchange rate adjustmeata, of 1949#lour*gold aaaarfetva
increased- allien t one-fourth, from, twenty billion iollara*to
almost twenty-live billion dollars*. The mm

realistic IJ#I,4

enrrency vtad price relationships which foreign •aontriea-J'-iN
achieved from the -de valuations* and the added windfall from
our large imports of goods after the fighting began in Korea
—

as well as the support afforded hj the continuing flow of

American assistance and United States Government expenditures
abroad —

caused foreign reserves to riaef. so that our gold

stock fell to twenty-two billion dollars by the middle of
1951.
Then, as foreigners again began to demand relatively
„yr

..

©ore of our goods, they ©nceiaore found it necessary to
/

send us gold*

Our reserves rose"on® and one-half billion
y

dollars between August 1951 and April 1952*
There soon followed a substantial improvement In the
economic stability of important countries overseas. This
greater stability was reflected in a renewed, outflow of gold
from the United States* le have sold one and a half billion
dollars worth of gold to foreign countries in the last
eighteen months.

ce .Memorandum • UNITED STATES GOVERNMENT, _
ocb
TO : DATE:

FROM

:

SUBJECT:

-8Other crises whieh have swept the world in reeent years
have been economic In origin, when severe, these crises have
•M0&

$**aiawm

shaken the exchange rates of the countries concerned. Mietljer
*

/

df

# -f

.*••••-*•'••

severe or not, they have put pressures in their gold reserves.
r

£he United States gold stock his been a focal point which
w

feels the impact of'these crises.
ypw Chairman, with your permission, I will place in the
record a table which shows by years the gold stock of the
United States, and the required legal reserves 0/ the Federal
Reserve System, and also foreign holdings of bank balances or
short-term Investments In the United States which are potential
claims on our gold*

/"~
/~\

!\ f

7and becoming unavailable for monetary reserves. Until the
*f ;
• or
ypublic temper is one of greater security, it would be unwise
"-y-.y ;

&

to expose our gold freely to the hoarder*
'--v
h^t. '• ?um& • . ,*aefrb*'
In making ba^sic changes of policy, it Is desirable to act
courageously and firmly. But it is just as important to avoid
acting prematurely. Preiaature moves invite the possibility of
having to reverse the steps taken, perhaps under crisis conditions* And a retreat from an iioportant advance can cause damage
which far exceeds the benefits derived from the original advance.
Since the end of the war the free world has experienced a
series of crises. Soae.of.these crises have been,political in
origin, arising out of the division between free nations and
those dominated fron Moscow. A state of international tension
has been punctuated at intervals by physical aggression or the
threat of aggression. Each of these attacks upon the security
of the world has caused widespread political unrest.and, as
al?jays* people all over the world have sought the safety of gold
during such intermittent crises. I wish we were able to' predict,
today, that there would be no further disruptions of this sort.
Unfortunately, we cannot make that prediction and a prudent
government cannot act upon a basis of wishful thinking.

-8world values. It is a major reason itiy the dollar can be
•'•'•'-••

' --*

*

t-yy

used everywhere to settle international transactions.
In smaiary, this is our present gold policy: we are maintaining an assured ability to support a constant relationship
between gold and the dollar —

a relationship which is as

important to foreign countries as it is to us.
This continuing aid unchanging link is, in fact, the most
important part of our policy*

It is more important than the

redeemability of currency Into gold.

It Is a point of stability

in a world which sorely needs a stable bails upon which to build
a secure and healthy international economy.
Change* in Policy Proposed by Bills
One of the question* raised bj *the bills .before you is
whether it is now. wise to reduce the res trie tion# which we have
mints! ned to protect this monetary reserve. Can weysafely
now run the risk of letting both our own people -ami people
elsewhere draw down this gold freely .and perhaps dissipate it
so that the strength of our monetary reserves is impaired?
It is the position of the Treasury that it would not be
wise now to take the risk of a ma jor step in relaxing restraints.
We still live in a very uncertain world. A large part,, of the
world's new gold production has been vanishing into gold hoards

the regulations concerning geld, in an endeavor to find ways
in which we m y reduce the administrative burden* <$iieh they
impose on individual* and firm*. We hope that present conditions in the world's eoonotty will permit us to publish soon
certain simplification* of the gold regulation** which I believe
will be v*le<ned, although they will not involve .any ©edification
of o-ur general gold policy.
r .

The object of our policy mn.d regulation* is to protect
our gold reserves, which support the value ©f mmmj

and ©an be

used to settle international balances. lb* United State* holds
$22 billion of gold out of the world's monetary stock of gold
of £36 billion.

This huge stoejg of. gold is a bulwark for

confidence in the value of currency. In a world of great m
uncertainties it is one of the anchors of m L n e on which business transactions depend.
It has been said sometimes that the gold in Fort Inox: and
other Mint institutions is idle and useless* Nothing could be
"less true. This gold is tat legal reserve of the FederalReserve System against its deposits and currency in circulation.
for twenty years the knowledge all over the world that the
United States dollar had back of it this stock of gold coupled
with the intention and the assured ability to maintain a
constant price of gold, was at least one firm basis for measuring

-4"
in substance terminated the power of the Secretary of the
Treasury to buy or sell gold at other than the established price
of $35 an ounce.
Under jresent laws and regulations this country is on what
may be termed an international gold bullion standard.t V/e buy #?t
and sell gold freely with other countries through their central
banks and treasuries at the price of $35 an ounce, plus or minus
a handling charge of one-fourth of one percent*ls

v

*' i--'teci

We do not coin gold. We do not allow our citizens to hold
gold except'in industry and the arts and as jewelry, or^eollectors* Items.

Individuals and businesses^ cannot^export gold

rlthout license, Our citizens can buy gold dust but1 liave shown
little Interest in doing so.

'^ * « ^

^

-4***i

Our rules governing our citizens in these "matters are
basically similar to those of other countries with developed
economies.

There is no one of these countries where the central

bank or treasury redeems Its currency freely in gold coin, though
In a number of countries the citisens can buy gold in a so-called
s

free market", at whatever price it may be available.
;.'ince the removal of unnecessary restrictions on the citizen

is a steadfast objective of this administration, we are reviewing

-3terms of the-United State* dollar.
Our Present Gold Policy
i—IHJ—

'"•.

Liijnnriniruni.mil

i niiiniiiin n nil-

i»M—Jt»

Now, I should like to review just ufaat our present gold
policy Is, md how it got that way.
.-;. -.y.r.y£*i*c? *

y v

lou will recall that in the banking holiday in laarch,
1933 we stopped redeeming currency in gold, aid in April, under
emergency legislation, the publie was required to surrender
gold coin and gold bullion to the Government. % ^ n
The Agricultural Adjustment Act of May, 1933 gave t|ie
...•:.

••-: y

-'•" **OX*r

President power to alter the gold content of the dollar. Under
emergency authority a series of Increases in the price of gold
was aiade. The Gold Reserve Act of 1934 in effect confirmed the
previous emergency actions and gave the Secretary of the
Treasury broad powers In buying and selling gold and issuing
• • - • • .

i- '3-X

regulations with respect to gold. Thereupon the President,
in January 1934, established the dollar value of gold at $35
for ounce, an increase of 69 percent from the value maintained
for over 140 years. •...—*
Since January 1934 there has "oeen no change in the official
prioe of gold. The President's power to change the gold content
of the dollar lapsed in 1943. The Brett on-abods Act of 1945

**2-

to gold*

Hie gold value of the dollar, established under

Washington and Hamilton, was not changed, except fractionally,
for over 140 years*

The confidence in the value of the dollar

which this helped Instill in our people and the people of other
countries was one of the foundations of the Nation's spectacular
economic sucoess.
r

All business life depends on the making of promises, com*

mitments and their fulfillment*

Lending and borrowing money,

contracts to buy and sell goods and services, savings and
investments all depend on confidence that money will keep its
value. When this confidence is broken, as we have seen in so
many countries, the economic life is disorganized and retarded.
The solid link between the dollar ajid gold is a valuable
,.,-Zi • y

heritage*

y,.

Fundamentally, of course, the confidence of the

people in their money must lie in their faith that their government will conduct itself efficiently and prudently —

that all

of Its policies, and particularly its budgetary and fiscal and
monetary arrangements, will be honest and competently conducted.
Nevertheless, a fixed relationship between gold and the currency
of a country gives an added element of confidence and security.
In recent years the link between the dollar and gold has
represented a basic stable relationship in an unstable world
economy. Economic values the vo rid over have been measured in

STATE^NT OF J K W. MM3GLPH BURGESS, DSHIff TO TM SECRETARY
OF TIIS TREASURY, BEFORETHE SUBCGtMITTIE 01 FEDERAL R1SERYE
MATTERS OF THj BAIKIIG M CURREiCY CCMCITTEE 0F_T&^aEIATE,

:

MARCH 29, 1954
iar* Chairman and Members of the Cemaittees
I welcome this opportunity to appear before you to discuss the important subject of gold.
• • - : • . . . . *

,

,, :

•. ,: .-. .

;

h ,0;

. .jf ,

This Committee is considering bills which raise three
questions of gold policy. S. 2332 would put the United States
•••' •

:

'

;

*•'

"-

- .1

-ay

•*;;•:

back on the gold standard as we knew it prior to 1933. S* 13
and S. 2364 would establish a domestic free market for gold,
•••'•:
aar :..,a: .:..; ,-mx ;-a- yy. . --y .
and the fourth bill, S. 2514, involves, among other things,
- hi*5 :. .

yyy y;.

the question of a n increase in the official price for gold.
It is appropriate that the Congress should examine these
questions.
Various aspects of these questions were reviewed by SubCommittees of the Joint Committee on the Economic Report under
Senator Douglas In 1949-1950 and Congressman Patman in 1952.
From the founding of our nation until 1933, aith interruptions In time of serious war, the dollar was firmly attached

4*3 C

TREASURY DEPARTMENT
Washington

Statement of wf« Randolph Burgess, Deputy to the Secretary
of the Treasury, before the Subcommittee on Federal
Reserve Matters of the Banking and Currency Committee
of the Senate, March 29, 19$k
Mr. Chairman and Members of the Committee:
I welcome this opportunity to appear before you to discuss the
important subject of gold.,
This Committee is considering bills which raise three questions
of gold policy,, S u 2332 would put the United States back on the gold
standard as we knew it prior to 1933. £.13 a^d S« 236U would establish
a domestic free market for gold, and the fourth bill, S9 2$H\, involves,
among other things., the question of an increase in the official price for
gold. It is appropriate that the Congress should examine these questions.
Various aspects of these questions were reviewed by Sub-Committees of
the Joint Committee on the Economic Report under Senator Douglas in 19k919^0 and Congressman Patman in 19$2«
From the founding of our nation until 1933, with interruptions in
time of serious war, the dollar was firmly attached to goldo The gold
value of the dollar, established under Washington and Hamilton, was not
changed, except fractionally•> for over lhO years. The confidence in the
value of the dollar which this helped instill in our people and the people
of other countries was one of the foundations of the Nation's spectacular
economic success.
All business life depends on the making of promises, commitments and
their fulfillment. Lending and borrowing money, contracts to buy and sell
goods and services, savings and investments all depend on confidence that
money will keep its value. When this confidence is broken, as we have
seen in so many countries, the economic life is disorganized and retarded.
The solid link between the dollar and gold is a valuable heritage«
Fundamentally, of course, the confidence of the people in their money must
lie in their faith that their government will conduct itself efficiently
and prudently — that all of its policies, and particularly its budgetary
and fiscal and monetary arrangements, will be honest and competently
conducted* Nevertheless, a fixed relationship between gold and the currency of a country gives an added element of confidence and security.
In recent years the link between the dollar and gold has represented
a basic stable relationship in an unstable world economy. Economic values
the world over have been measured in terms of the United States dollar.

H-U36

- 2
Our Present Gold Policy
Now, I should like to review just what our present gold policy is,
and how it got that way.
You will recall that in the banking holiday in March, 1933 we stopped
redeeming currency in gold, and in April, under emergency legislation, the
public was required to surrender gold coin and gold bullion to the Government.

i
The Agricultural Adjustment Act of May, 1933 gave the President power
to alter the gold content of the dollar,. Under emergency authority a series
of increases in the price of gold was made,. The Cold Reserve Act of 193U
in effect confirmed the previous emergency actions and gave the Secretary
of the Treasury broad powers in buying.;and selling gold and issuing regulations with respect to gold* Thereupon the President, in January 193k,
established the dollar value of gold at §>3$ per ounce, an increase of
69 percent from the value maintained for over lUO years.
Since January 193h there has been no change in the official price of
gold. The President's power to change the gold content of the dollar
lapsed in 19U3* The Bretton-Woods Act of 19h$ in substance terminated the
power of the Secretary of the Treasury to buy or sell gold at other than
the established price of %3$ an ounce.
Under present laws and regulations this country is on what may be
termed an international gold bullion standard. We buy and sell gold
freely with other countries through their central banks and treasuries at
the price of %3$ an ounce, plus or minus a handling charge of one-fourth
of one percent*
We do not coin gold. We do not allow our citizens to hold gold
except in industry and the arts and as jewelry, or collectors' items.
Individuals and businesses cannot export gold without license. Our
citizens can buy gold dust but have shown little interest in doing so.
Our rules governing our citizens in these matters are basically
similar to those of other countries with developed economies. There is no
one of these countries where the central bank or treasury redeems its currency freely in gold coin, though in a number of countries the citizens
can buy gold in a so-called "free market", at whatever price it may be
available.
Since the removal of unnecessary restrictions on the citizen is a
steadfast objective of this administration, we are reviewing the regulations concerning gold, in an endeavor to find ways in which we may
reduce the administrative burdens which they impose on individuals and
firms. We hope that present conditions in the world's economy will permit
us to publish soon certain simplifications of the gold regulations, which
I believe will be welcomed, although they will not involve any modification
of our general gold policy.

- 3 The object of our policy and regulations is to protect our gold
reserves, which supoort the value of money and can be used to settle
international balances. The United States holds ^22 billion of gold out
of the world' s monetary stock of gold of $36 billion„ This huge stock of
gold is a bulwark for confidence in the value of currency. In a world of
great uncertainties it is one of the anchors of value on which business
transactions defend.
It has been said sometimes that the gold in Fort Knox and other T"int
institutions is idle and uselessa Nothing could be less true. This gold
is the legal reserve of the Federal Reserve System against its deposits
and currency in circulation. The knowledge all over the world that the
United States dollar has back of it this stock of gold coupled with the
intention and the assured ability to maintain a constant price of gold,
is at least one firm basis for measuring world values* It is a najor
reason why the dollar can be used everywhere to settle international
transactions«,
In si^mnary, this is our present gold policy: we are maintaining an
assured ability to support a constant relationship between gold and the
dollar — a relationship which is as imDortant to foreign countries as
it is to use
This continuing and unchanging link is, in fact, the most important
part of our policyc It is more important than the redeenability of currency into gold. It is a point of stability in a world which sorely needs
a stable basis upon which to build a secure and healthy international
economy*

Changes in Policy aroposed by Bills
One of the questions raised by the bills before you is whether it is
now wise to reduce the restrictions which we have maintained to protect
this monetary reserve. Can we safely now run the risk of letting both our
own people and people elsewhere draw down this gold freely and perhaps
dissipate it so that the strength of our monetary reserves is impaired?
It is the position of the Treasury that it would not be wise now to
take the risk of a major step in relaxing restraints. We still live in a
very uncertain world. A large nart of the world' snew gold production has
been vanishing into gold hoards and becoming unavailable for monetary
reserves. TTntil the public temper is one of greater security, it would be
unwise to expose our gold freely to the hoarderc
In making basic changes of policy, it is desirable to act courageously
and firmly. "But it is just as important to a^oid acting prematurely,
*rena+-ure moves invite the possibility of having to reverse the steps
taken, perhaps under crisis conditions*. And a retreat from an important
advance can cause damage which far exceeds the benefits derived from the
original advance.

-k Since the end of the war the free world has experienced a series of
crises, Some of these crises have been political in origin, arising out
of the division between free nations and those dominated from Moscow* A
state of international tension has been punctuated at intervals by physical
aggression or the threat of aggression* Each of these attacks upon the
security of the world has caused widespread political unrest and, as
always, people all over the world have sought the safety of gold during
such intermittent crises. I wish we were able to predict, today, that
there would be no further disruptions of this sort* Unfortunately, we
cannot make that prediction and a prudent government cannot act upon a
basis of wishful thinking.
Other crises which have swept the world in recent years have been
economic in origin. When severe, these crises have shaken the exchange
rates of the countries concerned. Whether severe or not, they have put
pressures on their gold reserves* The United States gold stock has been
a focal point which feels the impact of these crisesa
Mr* Chairman, with your permission, I will place in the record a
table which shows by years the gold stock of the United States, and the
required legal reserves of the Federal Reserve System, and also foreign
holdings of bank balances or short-term investments in the United States
which are potential claims on our gold*

TABLE I
U.S. GOLD RESERVE VS REQUIREMENTS AND POTENTIAL CLAIMS 1922-1953
(In millions of dollars)
?(A) (B)
End of Year u,s, Gold Reserves U-So Required
Gold-Reserves
f

Foreign Short-Term Total of
Dollar Balances 2/ A and B

1,686
1,652
1,599
1,558

1,009
997
1,237
1,193

2,695
2,6U9
2,836
2,751

U,083
3,977
3,7U6
3,900

1,56U
1?62U
1^621
1,611

1,639
2,591
2,U83
2,673

3,203
14,215
U,10U
U,28U

1,225
kP0$2

1,562
1,781
1,967
2;166

2,335
1,3QU
7U6
392

3,897
3,085
2,713
2,558

1922
1923
192U
1925

3;506
3,83U
ii«090
3,985

1926
1927
1928
1929
1930
1931
1932
1933

k>ok$
14,012

193b.
1935
1936
1937

8,259 V
10,121; ~
11,1+22
12,790

2,729
3,#10
U,101
U,170

670
1,301
1,623
1,893

3,399
U,9H
5,72U
6,063

1938
1939
19U0
19lal

1*4,591
17,800
22^0142
22,761

5,099
6,35U
7,397
8*310

2,158
3,221
3^ 938
3,679

7,257
9,575
11,835
11,989

19U2
19U3
19kk
19U5

22,739
21,981
20,631
20,083

9,997
11^902
1U,350
10^68

U,205
5,375
5,820
7P07U

1U,202
17,277
20,170
17,9U2

19U6
19U7
19U8
19U9

20.706
22,368
2U,399
2ii>563

10,731
11,29k
11,89k
10,753

6,U8l
7,135
7,756
7,623

17,212
18,U29
19,650
18,376

1950
1951
1952
1953

22^820
22,873
23,252
22,090

11,005
11,720
12,055
12,151

9,222
9,302
10,731
11,771

20,227
21,022
22^786
23,922

195U,Janc31

22,0UU

11,799

11,9U7

23,7U6

Footnotes on following page0

320
- 2 TABLE I (Continued)

1/ Includes $2,806 million, the increment resulting from the reduction
~~ in the weight of the gold dollar, January 19314c
2/ Data are based on three somewhat differing series^ as follows:
~
1922~1928f estimates based on 1929 figure., adjusted for previous
years by changes in foreign banking claims on the United States as
published by the Department of Commerce) 1929^1933, as reported to
the Federal Reserve Bank of New York by banks in New York City3
193U"1953, as reported to the Treasury Department by banks in the
United Statess Data represent short-term dollar balances of foreign
official and private institutions and of international organizationso
For the period 19kk"*19$3, holdings of U* S* Government securities maturing within 20 months after date of purchase are included^
SOURCES: Foreign Short-Term Dollar Balances; Department of Commerce,
The United StateFTn the World Economy; Board of Governors of
the Federal Reserve 5ystern5 Banking and Monetary Statistics;
Monthly Treasury Bulletin and Federal Reserve Bulletin^
U<,S3 Gold Reserves and Required Gold Reserves. 1922*19l4l Banking
&i^i;iva&&&ry
Statistics
19U2-1953 Federal
Reserve Bulletin,

mm

£> mm

As shown in Table I, between the end of World War II and the exchange
rate adjustments of 19^9, our gold reserves increased almost one-fourth,
from twenty billion dollars to almost twenty-five billion dollars. The
more realistic currency and price relationships which foreign countries
achieved from the devaluations, and the added windfall from our large imports of goods after the fighting began in Korea «-~ as well as the support
afforded by the continuing flow of American assistance and United States
Government expenditures abroad — caused foreign reserves to rise; so that
our gold stock fell to twenty-two billion dollars by the middle of 1951.
Then, as foreigners again began to demand relatively more of our
goods, they once more found it necessary to send us gold. Our reserves
rose one and one-^half billion dollars between August 1951 and April 1952.
There soon folloitfed a substantial improvement in the economic stability
of important countries overseas. This greater stability was reflected in
a renewed outflow of gold from the United States. We have sold one and a
half billion dollars worth of gold to foreign countries in the last eighteen
months.
This ebb and. flow of strength and confidence in foreign countries,
which in large part accounted for these successive increases and decreases
of our gold reserves, was reflected also in changes in the price of gold
in markets throughout the world. This is shown in the second table which
I should like to lay before the Committee*

TABLE II
FREE MARKET GOLD PRICES
(In $ per fine ounce for bar gold, converted at free
market rates of exchange)
Date

Paris

Ito^Konj;

Decn 31, 1947

~~

52*06

Deoo 31, 1948

49*54

48*76

Dec* 31, 1949

46*30

40,18

41,. 63

May 31, 1930
(pre-Korea^
July 31, 1950
(post Korea)
D e c 31, 1930

3Bo48

37*31

3%.M

43.39

44«59

39 14

43.05

44o47

mx&

Dec. 31, 1951

41.38

42.71

39*00

Dec. 31, 1952

38.95

40.48

37o81

Dec. 31, 1953

35.62

37*25

3^m

Feb. 27, 1954

35c86

37,58

35.31

LJ C -L.. L'. J

mm

VSn-Km*

Taken from International Financial Statistics published by
International Monetary Fundo

- 6The figures in this table, derived from publications of the
International Monetary Fund, are for gold bars and you will note the
fluctuations in price and the recent trend toward lower prices.
Prices for coins were higher0 Even now, when conditions are more
stable than at any time since the end of World 'jar II, gold sovereigns
are selling at the equivalent of about $k0 an ounce in various markets.
Another way of judging world psychology about gold is to observe the
amount of new gold production which has been going into world monetary
stocks as compared with the amount going into hoards or into industry and
the arts. This is shown in Table III.

324
TABLE III
WORLD OFFICIAL GOLD RESERVES AND GOLD PRODUCTION
(Excluding Russia)
Gold at $20*67 per ounce to 1933; s:>35 beginning with 1934*
Partly estimated,
(Dollar amounts in millions)

Year
ended
Dec. 31

r (1) " :

(2)

(3)

' :'

(4)

. Year-endj Increase during:
j
year

% Total

: (5) J
(6)
: New
sColumn (2)
: Pro- : as % of
:duction: Col* (5)

%

%

1433

1913
1914
1915

* 4,073
4,542
5,410

$469
868

1916
1917
1918

5,872
6,481
6,816

1919
1920
1921

31,5)
19.1)

412
443

113.8
195.9

462
609335

8»5) 8-year
10.4) average
5.2) 9.0^
p.a.

432
403
373

106*9
151.1
89.8

6,805
7,256
8,045

-11
451
789

- .2)
6.6)
10*9)

354
332
330

-3.1
135.8
239.1

1922
1923
1924

8,415
8,608
8,904

370
193
296

4*6
2*3)
3.4)

316
363
374

117.1
53.2
79.1

1925
1926
1927

8,904
9,349
9,496

0
245
347

o. ;

373
379
380

0.
64.6
91.3

1928
1929
1930

9,966
10,189
10,696

470
223
507

382
382
401

123.0
58,4
126.4

1931
1932
1933

10,996
11,566
11,589

300
570
23

427
458
469

70.3
124.5
4.9

* •

2.8)
3.8) 11-year
average
3.0*
4.9) p.a*
2.2)
5.0)

2.s;
5.2)
•2)

IDS
TABLE III (Continued)
V/ORID OFFICIAL GOLD RESERVES AND GOLD PRODUCTION
(Excluding Russia)
Gold at ^20#67 per ounce to 1933; &35 beginning with 1934. Partly estimated.
" (Dollar amounts in millions)
Year
ended
Dec. 31

-n?—
3fear-end
Total

w

w

Increase during
year

$
1934
1935
1936

21,685
22,660
24,090

~w

%

1

UT

:
New
:
pro—
: duction

—wr

$

10,096 87.1
975 4.5)
1,430
6*3)

Col. (2)
as % of
Col. (5)

823
883
972

1,226.7
110.4
147.1

1,041
1,137
1,209

182.5
15.0
160.5

1,297
1,266
1,126

136.5
97.2
95.0

872
777
739

95.2
48*9
52.8

756
767
798

46.3
56.1
47.6

833
858
840

57.6
47.8
16.7

)
)

1937
1938
1939

25,990
26,160
23,100

1,900

1940
1941
1942

29,870
31,100
32,170

1,770
1,230
1,070

1943
1944
1945

33,000
33,380
33,770

830
380
390

170
1,940

7.9) 7-year
.65)average
7.4) 5.3%
) P*a«
)

6.3)
4*1)

3.4
2.7
1.2)
1.2)
)
)

1946
1947
1948

34,120
34,550
34,930

350
430
380

1.0) 10-year
1.3) average
1.1 J 1. 1/b
) P.a.

1949
1950
1951

35,410
35,820
35,960

480
410
340

1.4)
1.2)

1952
1953

36,280
36,706

320
426

.9)

)

.4)
)

1.2)

865
37.0
865 est. 49.2

Note: Gold reserves include international financial institutions.
*

Source of gold reserves and production data is Board of Governors of
Federal Reserve System. Data on reserves for some years are subject
to some statistical uncertainties and should be interpreted as approximations only.

- 7During periods of strict wartime controls, almost the whole of new
production went into monetary reserves — and, indeed, even more as many
nations required their people to turn their gold into government stockse
At other times there has been great variation in the use of new gold0
In 1951 only seventeen percent went into monetary reserves0 In 1952 it
was better — thirty-seven percent — and f or 1953 it is estimated at
forty-nine percent.
These facts demonstrate the powerful and capricious forces which
could be focused upon any stock of gold coins or other forms of monetary
gold permitted to circulate freely within the United States. If coins
were circulated, they would be subject to the pull of demand from overseas sources — a demand which would rise and fall with every political
and economic turn of events4
In this connection, it should be noted from my first table that
foreign countries and international institutions hold about $12 billion
in short-term dollar balances in this country. Under present circumstances, these balances constitute no danger to our economy, but in a
different situation — one in W: ich gold could be drawn from the
Treasury in unlimited amounts and hoarded or exported without limit,
these balances could be troublesome,.
Another fact emphasizes that underlying forces of instability still
remain in the world* Except in the case of a few countries, international
trade and payments are still hedged around by a multitude of administrative
and political controls such as quotas, excessive tariffs, and exchange
controls.
When more restrictions have been removed and convertibility has been
restored at least among the principal currencies, we shall be freer to
consider the return to gold redemption. If we were to try to force the
pace by resuming gold payments before the foundations were more firmly
laid through a continuation of recent policies toward sounder budget,
credit and price practices, the gold released in this country might
simply move out into hoards, and become the tool of the international
speculator. Gold payments are the seal of approval of good money, and
the free world has not yet gone far enough in the achievement of good
money6 It is doubtful whether the United States should consider gold
redeemability of its currency until other major countries are ready and
able to do likewise,,
Free Gold Market
The same factors which make it unwise for us to return to a gold
coin standard now also argue against the opening of a free gold market
in the United States, which is recommended in two of the bills before
the committee.

- 8Under such a free market there would be two alternatives: either
the United States Government, with its a22 billion in reserves, would
stay out of the market, and we would have a gold price that fluctuated
up and down depending upon the demand for a relatively small amount of
new gold production; or the Government would stand ready to buy and sell
gold at the official price to prevent fluctuations,, The first alternative
would tend in the opposite direction from our ultimate goal —. it would
be in the direction of more instability instead of more stability,, The
second alternative would be, in effect, full convertibility of the
currency into gold,
Price of Gold
Another bill before the Committee suggests that we increase the price
of gold* !^e believe that such a move would be against the best interests
of the United States and our foreign friends© An increase in the price,
with the consequent upward revaluation of this country?s gold stock,
would be contrary to the program of maintaining stability in our economy.
A revaluation of the gold stock could set in motion long-term inflationary
forces through increases in the volume of money, and in additions to the
reserves of the banking system, thich would provide the basis for a large
potential expansion of money and credit, out of proportion to the business
volume0
Furthermore, such a move would upset a relationship which has been
of great importance to ourselves and to the world0 The value of the
dollar is firmly linked to goldc With only one major change this has been
true throughout the history of our country, under Administrations of both
parties,, Our people, and foreigners as well, have come to think of the
dollar as a secure currency, steadfastly defined in terms of a specific
amount of our basic monetary metal© This is a relationship which should
not be disrupted* It would be a grievous error, particularly at a time
when the world is achieving some element of stability, to open up the
possibility that this nation was prepared to make periodic devaluations
of its currency in terms of gold©
Progress Being Made
In spite of the instabilities and dangers which remain, the world
is making progress,, That is the final point I wish to make here today.
The prospects for a stable free world economy are better today than they
have been for a very long time. Step by step, in a countless number of
ways, a healthier world economy is being constructed.
There has been a marked improvement in the underlying stability of
the free world economy. Many countries have improved their balance of
payments, strengthened their monetary reserves, and continued to increase
their production0

9 All of this is happening quietly and without fanfare. Economic
collapse makes good headlines, but the road back to good money and
economic health is usually less dramatic. We are therefore likely to
be unaware of how ruch forward progress is being made until long after
the event,
Nevertheless, if we look carefully at the record of the last year,
we are able to find many reasons for optiirdsn, Xany steps forward —
none of them worId-shaking but each of them a step in the right direction—
have taken place.
Discriminations against dollar goods have been reduced, and in one
case at least, eliminated. Recent moves have been made to reduce the
complexity of arrangements with regard to sterling, the guilder and the
Deutsche nark. General markets for the sale and purchase of important
commodities have been re-opened. In many countries, internal finance
has been brought under control, and international payments have been
brought more nearly into balance.
Trade and payments, while still not so free as we would like, are
freer than at any other time since the end of the war. Foreign countries
have increased their gold and dollar balances by about a8 billion in the
past four years. The need for United States aid is lessening. All of
these developments bring us closer to the day when foreign countries :;iH
find their economies sufficiently stable to permit the convertibility of
their currencies an'2 the freer movement of commerce. These are goals
which we are striving for. In the words of the C omission on Foreign
Economic Policy, "convertible currencies constitute an indispensable
condition for the attainment of world-wide multilateral trade and the
maintenance of balanced trade in a relatively free market."
We are making progress. There is a firmer determination — not
everywhere, but in many ii'.portant countries — to turn away from the
politically easy thing, and toward the economically necessary thinq, in
the conduct of national affairs. The determination to bring budgets
under control, to avoid credit inflation, to look outward as well as inward — these are progressing at a hopeful rate0 If these developments
can be encouraged and continued, they w i H pave the way for further
stability and further relaxation of controls*

Tim Tm&amy

De^artoiit m m m m a d lam «ir«Hng that tUt tantam tmt #1,500,000,000,:!

m tharaabonta, at 9h*day tmmwey bills to ha d®ted kpm 1 and t® mtvm .July 1, l*%
which war* ottaxad ©& fe^rcb 25, iwr# ajtaaaA at the Federal Raaarva Banks oa fmreh 29.
The details of this 1mm am m follow*t
fatal ajq£la4 tmt ~ #2,339,935,000
fatal aacapted
- 1,500,672,000

(lroliid** #191,561,000 ©J*t«ee& on a
»on©oiJip#titiire baai® &&$ ae©#pt@it ia
fall at tla» avasaga prtea ahmn below)
Awr&g© prie®
- 99.73V Equivalent vat* a* dLaaavat a&prac 1.063$ f®r arasa
Bang© of aeo*ft#«l oompetitiir© bii®* (Jtoaajpttwg om tanda* of $200,000)
Hi#i * 99.750 EqaiTalaa* rate of dlmmmt approx* 0*9091 per mmm
tt
fl
Um
- 99.729
* #
*
1.072$ "
»
{?? fNis^eautt of the aqmnt bid for at thm %m prtm wa® accepted)
federal ^eaerv© Total Total
Biatrl€t| __
A^g.li#d. tor
Boston $ 2Jf2l|B,000 | 20,598,000
toff fork
1,791*1*61,000
IbUaAalpbla
32,720,000
Cl©T©la«a
6b, 760,000
- Xlatama
17,715,000
Atlaaia
29,186,000
mimgQ
177,912,000
it. Louis
27,07i*,0OO
tfiuiaapolia 7,1^70,000
6,970,000
Sanaa* Ctfcy
33,771*, 000
Ballaa
16,705*000
San frasioliicso
log, 910,000
f0ftft& - 12,339,935,000 11,500,671,000-

Accepted
1,071,1461,000
17,720,000
55,1*60,000
11*, 715,000
26,88?,000
122,002,000
26,77b,000
30,72li#000
18,305,000
89,0g6,.Q00

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, March 30* 1954.

H-437

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated April 1 and to mature July i, 1954, which were offered on
March 25, were opened at the Federal Reserve Banks on March 29.
The details of this issue are as follows:
Total applied for - $2,339,935,000
Total accepted
- 1,500,672,000 (includes $191,561,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.731/ Equivalent rate of discount approx.
1.063$ per annum
Range of accepted competitive bids: (Excepting one tender of
$200,000)
High
- 99.750 Equivalent rate of discount approx,
0,989$ per annum
Low
- 99.729 Equivalent rate of discount approx.
1.072$
(77 percent of the amount bid for at the low price accepted)
Federal Reserve Total Total
District
Applied for
Accepted
Boston $ 23,248,000 $ 20,598,000
New York
1,791,461,000
1,071,461,000
Philadelphia
32,720,000
17,720,000
Cleveland
64,760,000
55,460,000
Richmond
17,715,000
14,715,000
Atlanta
29,186,000
26,887,000
Chicago
177,912,000
122,002,000
St. Louis
27,074,000
26,774,000
Minneapolis
7,470,000
6,970,000
Kansas City
33,774,000
30,724,000
Dallas
28,705,000
18,305,000
San Francisco
105,910,000
89,056,000
TOTAL $2,339,935,000 $1,500,672,000
0O0

RALPH KELLY, COMMISSIONER OF CUSTOMS
Birth place:! Boston, Massachusetts
Birth date t\ August 16, 1888
Education jii leeeived a B.£# degree In electrical engineering
froa Harvard University in 1909.
Occupational
record
t\\ 1909 to 1917 - Employed as an apprentice ***£ In the
Engineering Department of the Westinghouse Electric
Corporation at East Pittsburgh, Pennsylvania.
1917 to 1919 - Unitdd States Havy.
1919 to 1920 - Employed by the Arma Engineering
Company, Hew York, New York.
1920 to 19^0 - Employed in the Engineering and Sales
Departments, Westinghouse Electric Corporation.
1930 to 1932 - Employed In thm St* Louis, Missouri,
sales office of the Westinghouse Electric
Corporation as District Manager.
1932 ha 1934 - District Manager, Westinghouse Eleetrie
Corporation, Pittsburg Peaiii^lvanJJu
1934 to 1938 - Vice President In Charge of thm East
Pittsburgh Plant, Westinghouse Electric Corporation.
1938 to 1942 ~ Vice President in Charge of sales*
Westinghouse Electric Corporation. Voluntarily
resigned In 1942 to accept another position.
19** te 19^3 ~ Sxecutlve Vice President and Director
of the Baldwin Locomotive Works, Eddystone,
Pennsylvania.
19*3 to 19%7 - President, Baldwin Locomotive Works,
Eddystone, Pennsylvania.
1947 to 1949 - Heiiiser mt the Executive Cowaiittee of
the Board of the Baldwin Locomotive Works, Eddystone,^
Pennsylvania. Voluntarily resigned on Hay 5, 1949.
.tion to the above, 8r. Kelly has served as
Chairman of the Hospital Planning Agency/aatiw**
iBPBftui^ aasar Member of the Board of Directors of
the Pennsylvania Coapany for Banking and Trust,
Philadelphia, Pennsylvaniaj
y/j^^yj^ y§ Member
,
1954.
of the Board
of Directors of the Pennsylvania
Bell Telephone Company, Philadelphia, Pennsylvania;
and a Member of the Board of Trustees of the
Philadelphia Savings Fund Society.
Appointed Commissioner of Customs, Treasury Departiaentj

%£«*<. ^y^J^

»fr~ £* *pyt>mmt**> C~~~m. >*»*<-*,

- 2As Commissioner, Mr. Kelly will supervise Customs
Service operations in Washington headquarters and in the
field.

He will direct a headquarters staff which includes

an assistant commissioner, four deputy commissioners and
approximately 225 employees.

The field service embraces

45 customs collection districts in continental U.S., Alaska,
Hawaii and Puerto Rico, with the Virgin Islands covered by
special statutes. Field service employees number approximately
8,500, assigned to the country's designated ports of entry,
customs laboratories, and other customs installations.
Magnitude of the operations of the Service is Indicated
by the scope of customs transactions handled in the fiscal
year 1953. There were filed with the bureau nearly 5,000,000
entries of merchandise and more than 7,000,000 declarations
concerning exports, in dollar value, imports exceeded
$10,000,000,000 and duties collected exceeded $600,000,000.
Carriers requiring the attention of Customs included about
50,000 ships entering our seaports, airplanes landing on
about 90,000 international flights, and about 28,000,000
vehicles crossing our borders. Nearly 120,000,000
individuals passed through customs inspections in the one
year.

(A biographical sketch of Mr. Kelly is attached.)

^^^^Wv^fc^ ^

&XJ&^ S0t^c £~

Secretary Humphrey today appointed.Ralph Kelly, a
Philadelphian of wide business and industrial experience, as
Commissioner of Customs. Mr

T7n11y.ii Mill 1M" "mmrrriTi nn -

^y/icd^j
IBb succeeds Frank Dow, who retired last March 31.
Mr. Kelly was President of the Baldwin Locomotive
Works from 1943 to 1947, having advanced to the presidency
from the post of executive vice president.

He went to the

Baldwin Company from the Westinghouse Electric Corporation,
in which he started as an apprentice and rose to vicepresident in charge of the corporation's East Pittsburgh
plant and later vice-president in charge of sales.
He has responded to many calls upon him for public service.
He was President of the Philadelphia Chamber of Commerce in
1949rl950.
He is a veteran of World War I, having served in the
Navy with the rank of lieutenant.
His office in private business has been at 311 South
Juniper Street, Philadelphia.
_,r. Kelly is Vice Chairman of the Philadelphia Council of the
aewcomen society of North America, an international organization
which documents various phases of industrial advancements He is
Chairman of the Franklin institute Vermilye Medal Committee,
rhiladelpnia, which presents a medal for outstanding industrial
management every two years.
XL?* Kelly married Ethel Burgess in Boston in 1914.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, March 29, 1954.

H-438

Secretary Humphrey today appointed and administered the
oath of office to Ralph Kelly, a Philadelphian of wide business
and industrial experience, as Commissioner of Customs.
Mr. Kelly succeeds Frank Dow, who retired last March 31.
Mr. Kelly was President of the Baldwin Locomotive Works
from 1943 to 1947, having advanced to the presidency from the
post of executive vice president. He went to the Baldwin Company
from the Westinghouse Electric Corporation, in which he started
as an apprentice and rose to vice-president in charge of the
corporation's East Pittsburgh plant and later vice-president in
charge of sales.
He has responded to many calls upon him for public service.
He was President of the Philadelphia Chamber .of Commerce in
1949-1950.
He is a veteran of World War I, having served in the Navy
with the rank of lieutenant.
His office in private business has been at 3H South Juniper
Street, Philadelphia.
Mr. Kelly is Vice Chairman of the Philadelphia Council of the
Newcomen Society of North America, an international organization
which documents various phases of industrial advancement. He is
Chairman of the Franklin Institute Vermilye Medal Committee,
Philadelphia, which presents a medal for outstanding industrial
management every two years.
Mr. Kelly married Ethel Burgess in Boston in 1914.
As Commissioner, Mr, Kelly will supervise Customs Service
operations in Washington headquarters and in the field. He will
direct a headquarters staff which includes an assistant
commissioner, four deputy commissioners and approximately 225
employees. The field service embraces 45 customs collection
districts in continental U.S., Alaska, Hawaii and Puerto Rico,
with the Virgin Islands covered by special statutes. Field service
employees number approximately 8,500, assigned to the country's
designated ports of entry, customs laboratories, and other customs
installations.

?yiz
\J\m*\m*

- 2 Magnitude of the operations of the Service is indicated by
the scope of customs transactions handled in the fiscal year
1953. There were filed with the bureau nearly 5,000,000 entries
of merchandise and more than 7,000,000 declarations concerning
exports. In dollar value, imports exceeded $10,000,000,000 and
duties collected exceeded $600,000,000. Carriers requiring the
attention of Customs included about 50,000 ships entering our
seaports, airplanes landing on about 90,000 international flights,
and about 28,000,000 vehicles crossing our borders. Nearly
120,000,000 individuals passed through customs inspections in the
one year.
(A biographical sketch of Mr. Kelly is attached.)

RALPH KELLY, COMMISSIONER OF CUSTOMS
Birth place

Boston, Massachusetts

Birth date

August 16, 1888

Education

Received a B.S. degree in electrical engineering
from Harvard University in 1909.

Occupational
record
:

1909 to 1917 - Employed as an apprentice in the
Engineering Department of the Westinghouse Electric
Corporation at East Pittsburgh, Pennsylvania.
1917 to 1919 - United States Navy.
1919 to 1920 - Employed by the Arma Engineering
Company, New York, New York.
1920 to 1930 - Employed in the Engineering and Sales
Departments, Westinghouse Electric Corporation.
1930 to 1932 - Employed in the St. Louis, Missouri,
sales office of the Westinghouse Electric
Corporation as District Manager.
1932 to 1934 - District Manager, Westinghouse Electric
Corporation, Pittsburgh, Pennsylvania.
1934 to 1938 - Vice President in Charge of the East
Pittsburgh Plant, Westinghouse Electric Corp.
1938 to 1942 - Vice President in Charge of sales,
Westinghouse Electric Corporation. Voluntarily
resigned in 1942 to accept another position.
1942 to 1943 - Executive Vice President and Director
of the Baldwin Locomotive Works, Eddystone,
Pennsylvania.
1943 to 1947 - President, Baldwin Locomotive Works,
Eddystone, Pennsylvania.
1947 to 1949 - Member of the Executive Committee of
the Board of the Baldwin Locomotive Works,
Eddystone, Pennsylvania. Voluntarily resigned on
May 5, 1949.
In addition to the above, Mr. Kelly has served as
Chairman of the Hospital Planning Agency; Member
of the Board of Directors of the Pennsylvania
Company for Banking and Trust Philadelphia, Pa.;
Member of the Board of Directors of the
Appointed Commissioner
of Customs,
Treasury Department,
March 29,
Pennsylvania
Bell Telephone
Company, Philadelphia,
1954.
and a Member of the Board of Trustees of the
Philadelphia Savings Fund Society. He resigned
from the Pennsylvania
Company for Banking and Trust
0O0
and the Pennsylvania Bell Telephone directorates
upon his appointment as Commissioner of Customs.

4

- 3 gFOTF
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 11$ 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 oriqp.r_al 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.
Revised
Treasury Department Circular No. 4l8,/3cxx3S^S^&&, 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.

- 2 -

payment of 2 percent of the face amount of Treasury bills applied for, unless
the -inners are accompanied by an express guaranty of parent by an inccrperated
bank or trust CT!)Q,T7
Tnnmaiaaoiy after the closing hour, tenders will be opened at the Federal

-.^•^^-Vv jja—v.i _atu ora.-O-.^s, z o_-acwaa:~ wmct nucleic aiuecaeeceLeenv waxm DO na^.
by the Treasury Department of the amount and price range of accepted bids.
Those submitting tenders will be advised cf the acceptance or rejection thereof.
The Secret eery of the Treasury expressly reserves the right to accept or reject
any" or all tenders, in wholi cr in tart, and his action in an?" such respect
see—L be fina_. Subject to thoSe respirations, ncn~ce__potit_vc tenders for
a,20P, Pel or loss withcut stated price from any one bidder will be accepted
in full at the average price (in tnroo doceheals) of accepted competitive bids.
Settlement for accepted renders in accordance with the bids must be made or
completed at tne Federal. Reserve Bard: en April S3 19$k , 1-

maturing
Treatment.

April 8. 1954
Cash and exchange tenders will receive equa
Xjsxk
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 ether disposition of Treasury bills shall
not have an" sen cite treatment, as such, raider the Internal Reveuu. Code, or
laws endatcry cr supplementary tmntc. The oills snail be subject to
estate, inheritance, gift er other excise taxes, whether Federal or State,

TREASURY DEPARTMENT
Washington
FOR RELEASE, HORNING NEWSPAPERS,
Thursday^, Aj>ril 1, 1954,
The Treasury Department, by this public notice, invites tenders for
11,500,000,OOP , or thereabouts, of 91 _-day Treasury bills, for cash and
in exchange for Treasury bills maturing April 8, 1954 ,

in

the amount of

$ 1 .,500.289,000 3 to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated April 8, 1954 , and will mature July 8, 1954 , when the face
xotxk
"
isSE
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, April 5, 1954 *
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

RELEASE. MORNING NEWSPAPERS,
Thursday, April 1, 1954.

H-439

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 April 8, 1954,
in the amount of $1,500,289,000, to be Issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 8, 1954,
and will mature July 8, 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, April 5, 1954.
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 ofthe 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
any one
bidder will
be
accepted
in full
at the average
price from
(in three
decimals)
of accepted

- 2 ~
competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on April^ 9 1954,
in cash or other Immediately available funds
or In a like face amount of Treasury bills maturing April 8, 1954.
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 tjie 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 aad 117 (a) (±) 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
s~uch 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

- 2 Between 1946 and 1950 Mr. Tormoe® was counsel and president
of Backer Electric Company, of Rotherham, England, and a group
of associated small manufacturing concerns in Scandinavia, and
spent most of this period abroad.

Recalled to active military

duty in 1950, he served for two years as legal officer at
Washington for the Army operation of railroads.
He was awarded the Legion of Merit, Bronze Star, Purple
Heart, and St. Olav's Medal (Norwegian).

He is a reserve

Colonel, JAGC, and a member of the Bar of Minnesota and New
York,

«^

He \km\-* married li|i'"Wttji M

Helen L. Baldwin of Minneapolis-^

Draft of ppapnsed release

appnliit^dtciarence 0. . /Lj^aju
Tormoen.

o"*Tne Secretary and

designated

as Personnel Security Officer of the Treasury

Department.

/

7 ^ - tf**^ k"*^ ^ ^ ^ ^ ^ ^ ^

<>&>*& *^yk&***«* S*^

Mr. Tormoen^saise was born in Duluth in 1903, b&aame_a-Jt_a41—
^ifl T "^i*^**--**--™""^^
for his education.

nontiawrtt^fhlff w^rk to help pay

He graduated from the Law College of the

University of Minnesota'in 1926, and c ^ ^ - ^ Y ^ ^ / A T X T ^ * as a
trial lawyer inAhlc homo city%____^^'"

^..

Te was active in giffOikh civic affairs^ood was District
Director of the 1930 federal census in the Duluth area.
LXRe entered military service in 1942 and served in the European
Theater.

As Assistant Theater Judge Advoc at eihr~iW# lieabY w

a

group of officers which_ reviewed all records of trials by courtsmartial involving

lumber and officer dismissals,

which cases required the personal action of Qi in m l Eluuulmwn .
>arajbion_of a stud^jaf-^w^ar-rrrttees
policy and orgjjy^aJ&Gfflftl
___

_

prosecution of

war- CrliflliiaI"sT
He became Judge Advocate of Taskforce "Nightlight," the
American component of Allied Land Forces in NQrway, in 1945,
and while serving in Oslo during the occupation of that country,
was assigned as the Army observer at the trial of Vidkun Qvisling.
In 1946 he became Exe^c/tive Officer of the Judge Advocate Division
at the American headquarters in Frankfurt, Germany.

1

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, April 1, 1954.

H-440

Clarence 0. Torraoen of Duluth, Minnesota was today
appointed an Assistant to the Secretary of the Treasury and
designated as Personnel Security Officer of the Treasury
Department. The oath was administered this afternoon by
Assistant Secretary H. Chapman Rose,
Mr. Torraoen was born in Duluth in 1903. He graduated from
the Law College of the University of Minnesota in 1926, and
practiced as a trial lawyer in Duluth where he was active in
civic affairs. He was District Director of the 1930 federal
census in the Duluth area.
He entered military service in 1942 and served in the
European Theater. As Assistant Theater Judge Advocate with
the rank of lieutenant colonel he headed a group of officers
which reviewed all records of trials by courts-martial involving
capital offenses and officer dismissals, which cases required
the personal action of the theater commander.
He became Judge Advocate of Taskforce "Nightlight," the
American component of Allied Land Forces in Norway, in 1945,
and while serving in Oslo during the occupation of that country,
was assigned as the A m y observer at the trial of Vidkun
Qvisling. In 1946 he became Executive Officer of the Judge
Advocate Division at the American headquarters in Frankfurt,
Germany.
Between 1946 and 1950 Mr, Torino en was counsel and
president of Backer Electric Company, of Rotherham, England,
and a group of associated small manufacturing concerns in
Scandinavia, and spent most of this period abroad. Recalled
to active military duty in 1950, he served for two years as
legal officer at Washington for the Army operation of railroads.
He was awarded the Legion of Merit, Bronze Star, Purple
Heart, and St. Olav's Medal (Norwegian), He is a reserve
Colonel, JAGC, and a member of the Bar of Minnesota and
New York.
He married Helen L,. Baldwin of Minneapolis in 1929,

oOo

in the raid yesterday.

Commissioner Anslinger said

that in most instances the heroin was brought into the
country concealed on the persons of seamen. Ornately
carved Oriental camphorwood chests with specially built
compartments were also used for the smuggling operations.
One of the dealers arrested in San Francisco operated a florist shop and made his deliveries of heroin
disguised as boxes of flowers. Other dealers made deliveries to undercover agents in the usual manner in
such places as Chinese restaurants and hangouts for
seamen. Arrangements for sales of heroin were often
negotiated over elaborate Chinese dinners. Chinese
social clubs were frequently the meeting places to
arrange for sale and delivery of the narcotics. One
such Chinese social club is known to authorities as
a gathering place for Communist Chinese and Chinese
alien smugglers, Mr. Anslinger said.
A full report of this Communist heroin traffic
will be made to the United Nations for discussion
during the forthcoming meeting of the United Nations
larcotic Commission which begins April 19, 1954.

-3-

Lee Dong Kan, age 67, 1055 Washington Street,
San Francisco,
Lee Chee Young, age 49, 870 Clay Street, San
Francisco,
Leong Ming, age 53, 1206 Stockton Street, San
Franc isco,
Chan Him, age 47, 900 Jackson Street, San
Francisco, employed at the Cathay House,
718 California Street, San Francisco,
Hoo Ah Sze, age 49, 66 Clay Street, San
Francisco .
Mr. Anslinger said it had been definitely
established that the heroin was smuggled from Communist China to the illicit market in the United
States. The principal source of the heroin was
identified as Judah Isaac Ezra, age 62, of Hong Kong,
operator of a combined hotel-restaurant-dance hallgambling emporium. Ezra, formerly a large trafficker
in narcotics on the West Coast, was sentenced in 1933
to 15 years in a United States penitentiary for narcotic violations and was deported from the United
States at the end of his prison term. It is expected
that Ezra will be prosecuted in San Francisco.
Merchant seamen who frequented Ezra's establishment obtained the heroin from Ezra and smuggled it
into the United States for the narcotic dealers taken

-2-

/

/(

H * "*i

A

J

/
y

rTti—£r. TTm i 111 i i

C o m m i s s i o n e r H a r r y J.

-^

Anslinger Ss^-arjjgorted +.r> ft^^i-mi-Hry TTnmfiliinjr the

A

UhXx^y?^r^sa r,
***** ****% •""' "j*1

j,* .

-

•?

arrest in San Francisco lasrt night by Federal narcotic agents of major narcotic traffickers. They
A
"-^
were taken into custody in raids which culminated
months of intensive investigation by undercover
agents of the Treasury's Bureau of Narcotics. Assisting in the raids were U.S. Attorney Lloyd Burke and
his assistants.
Pure heroin taken in the raids or purchased
as evidence by agents during the investigation
amounted to six pounds, worth millions of dollars
in the illicit narcotics market. The source of the
heroin was identified by Commissioner Anslinger as
Communist China.
All of those arrested in the San Francisco raids
yesterday were Chinese. Their names and addresses
were given as follows:
Ly Hing Soo, age 49, 1?30 Jones Street, San
Francisco,
Chan Chun, age 66, j66 Sacramento Street, San
Francisco, operator of the China Emporium,
733 Grant St.,San Francisco, convicted of
a narcotic violation in 1943,
Pon Wai, age 64, 53 Brennan Place, San Francisco,
operator of the Fragrant Flower Shop, 729
Washington St., San Francisco,

-1-

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, April $7 19$k

E-kbl

Commissioner Harry J, Anslinger of the Bureau of Narcotics this
morning reported to the Treasury Department the arrest in San Francisco
Sunday night by Federal narcotic agents cf a group of major narcotic
traffickers. They were taken into custody in raids which culminated months
of intensive investigation by undercover agents of the Treasury's Bureau of
Narcotics« Assisting in the raids were U© S* Attorney Lloyd Burke and his
assistants©
Pure heroin taken in the raids or purchased as evidence by agents
during the investigation amounted to six pounds, worth millions of dollars
in the illicit narcotics market. The source of the heroin was identified
by Commissioner Anslinger as Communist China*
All of those arrested in the San Francisco raids yesterday were
Chinese, Their names and addresses were given as follows*
Ly Hing Soo, age k9, wealthy merchant, 1530 Jones Street,
San Francisco,
Chan Chun, age 66, 766 Sacramento Street, San Francisco,
operator of the China Emporium, 733 Grant Street.?
San Francisco, convicted of a narcotic violation in 1943*
Pon Wai, age 6I1, $3 Brennan Place, San Francisco, operator of
the Fragrant Flower Shop, 729 Washington Street,
San Francisco,
Lee Dong Kan, age 67, 10^5 Washington Street, San Francisco,
Lee Chee Young, age 49, 870 Clay Street, San Francisco,
Leong Ming, age $3, 1206 Stockton Street, San Francisco,
Chan Him, age 47, 900 Jackson Street, San Francisco, employed
at the Cathay House, 718 California Street, San Francisco,
Hoo Ah Sze, age 49, 66 Clay Street, San Francisco*
Mr, Anslinger said it had been definitely established that the heroin
was smuggled from Com.Tunist China to the illicit market in the United
States, The principal source of the heroin was identified as Judah Isaac
Ezra, age 62, of Hong Kong, operator of a combined hotel-restaurant-dance
hall-gambling emporium,, Ezra, formerly a large trafficker in narcotics on

- 2 -

the West Coast, was sentenced in 1933 to 1$ years in a United States
penitentiary for narcotic violations and was deported from the United
States at the end of his prison term. It is expected that 3zra will be
prosecuted in San Francisco,
Merchant seamen who frequented Ezra's establishment obtained the
heroin from Ezra ana s::niggled it into the United States for the narcotic
dealers taken in the raid yesterday. Comnissioner Anslinger said that
in most instances the heroin was brought into the country concealed on
the persons of seamen0 Ornately carved Oriental canphcrwood chests with
specially built compartments were also used for the smuggling operations*
One of the dealers arrested in San Francisco operated a florist shop
and made his deliveries of heroin disguised as boxes of flowers. Other
dealers made deliveries to undercover agents in the usual manner in such
places as Chinese restaurants and hangouts for seamen* Arrangements for
sales of heroin were often negotiated over elaborate Chinese dinners,
Chinese social clubs were frequently the meeting places to arrange for
sale and delivery of the narcotics* One such Chinese social club is
known to authorities as a gathering place for Communist Chinese and Chinese
alien smugglers, Mr, Anslinger said.
A full report of this Communist heroin traffic will be made to the
United Nations for discussion during the forthcoming meeting of the
United Nations Narcotic Commission which begins April 19, 19$ka

H-^
RLLalSB JDRffINO m f S P A T O S ,
Tuesday, April 6, 195U*

' '

The fraaaury Department announced last even Lug that the tenders for $1,500,000,000,
or thereabouts, of 91-day Treasury bille to be dated April 3 and to mature July 8, 195k,
which were offered on April 1, were opened at the Federal Reserve Banks on April 5.
The details of this issue are as follows:
total applied for - $2,137,96%,000
Total accepted
- 1,500,053,000

(includes il9l*,2ii5#000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.71*4 Equivalent rate of discount approx. 1.013£ par annum
Bangs of accepted competitive bids: (Excepting one tender of $300,000)
High - 99*7k7 Equivalent rate of discount approx. 1.001$ per annum
LOW

- 99.71*2

»

a

n

a

a

1.021$ »

«

(60 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
We York
Fniladelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

|

|

TOTAL

31,592,000
1,610,218,000
35,100,000
111, 76?, 000
1^,784,000
25,635,000
202,859,000
18,009,000
(i,U83,000
31,803,000
37,688,000
73,QM*,000

$2,137,984,000

32,983,000
1,050,718,000
18,600,000
38,669f000
U,98U,000
22,82^3,000
180,709,000
17,709,000
8,01*3,000
24,303,000
36,828,000
56,66k,000

11,500,053,000

TREASURY DEPARTMENT
V- \J \m*

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, April 6, 1954,

H-442

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated April 8 and to mature auly 3, 1954, which were offered on
April 1, were opened at the Federal Reserve Banks on April 5*
The details of this issue are as follows:
Total applied for - $2,13"', 964, 000
Total accepted
- 1,500,053,000 (includes $194,245,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99,744 Equivalent rate of discount approx.
1.013$ per annum
Range of accepted competitive bids: (Excepting one tender of
$300,000)
- 99.747 Equivalent rate of discount apprcx.
I.OOIJJ per annum
- 99.742 Equivalent rate of discount approx.
1.021^ per annum

High
Low

(60 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Loui s
Minneapolis
Kansas City
Dallas
San Francisco

$
33,592, 000
1,610, 213, 000
55,100, 000
41,7^9, 000
14,734, 000
25,635, 000
202, 359 ,000
18,009, 000
433,,000
31,a03, 000
J>. 3o.3,,000
1 y , 044, ,^00
1 >w <W V >

TOTAL

Total
Accepted

Total
Applied for

$2,137,934,000
0O0

$

32,933,000
1,050,713.000
13,600,000
36.659.000
11,934.000
22,3-r i.OOO
130,709,000
17,709,000
Q *> ^ /-\ —\ ^\
O j ^ - r j . UL'<J

24,303,000
—1 _ .66^.000
z ~\ -"
"> ~\ •">
$1,500,053,000

,

-3-

cua snail bo exempt from all taxation now or hareafter imposed on the principal

or interest thereof by any State, or any of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections i|2 and 117 (a) (1) of the Internal
Revenue Code, as a.icnded by Section 11$ 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 froiu 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, vhothor on orir<inal issue or on subsequent purchase,
and thw 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.
Eevised
Treasury Department Circular No. 1^8,/sttxjHHHBtok, ^nd 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 incorporated
bank or trust company.
Immediately after the closing hour, tenders wall be opened at the Federal
Reserve Banks and Branches, f ollowing vtaich 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 tonders, in vrhclj or in Dart, a:x. 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 throe decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on April 1$. 19$k s ln
___—tt——-fSx—

tCS

cas

h or

-

XJJEPC

other immediately available funds or in a like face amount of Treasury bills
maturing April 1$9 195U • Cash and exchange tenders will receive equal
treatment. Cash adjustments will be me.de 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 hav. any social treatment, as such, unner 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,

mxsmx
mix
TREASURlr L3PARTL3NT
Washington
FOR RZ13ASE, nCRI'all'G :37:s?A?aRS,
Thursday, April 8, 195U
.
The Treasury Department, by this public notice, invites tenders for
t1,500.000,000 , or thereabouts, of 91 -day Treasury bills, for cash and

—*pr

~W~

in exchange for Treasury bills maturing April 1$. 19$k
3 i n the amount of
s?liJ>OQafr28»O0O , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated April 15, 195U , and will mature July l5» 1951; 3 "hen the face

amount will be payable v/ithont interest. They will be Issued in bearer form only,
and in denominations of ^1,000, §5,000, a?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, April 12.. 1951i
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 3anks 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 an/ from responsible and recognized
doalors in inv-stm-r.t securities. Tenders from others must be accompanied by

TREASURY DEPARTMENT
WASHINGTON, P.C.
RELEASE MORNING NEWSPAPERS,
Thursday, April 8, 1954,

H-443

The Treasury Department, by this public notice, invites tenders
for $1,5@@,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing April 15, 1954,
in the amount of $1,500,428,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 15, 1954,
and will mature July 15, 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, April 12, 1954.
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 ofthe 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

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on April 15, 1954,
In cash or other immediately available funds
or In a like- face amount of Treasury bills maturing April 15, 1954.
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 aad 117 (a) (i) 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

STATUTORY DEBT LIMITATION
AS OF March 31, 1954

A p r i l s , iy!>4

of thftAcra2n1/tfhf!efCOnd Uber!:y f°tiAct-' aS a*ended provides that the face amount of obligations issued under authority
TJ^A
nMiJ^t
amount of obligations guaranteed as to principal.and interest bythe United States (except such guaranteed obligations as m a y be held by the Secretary of the Treasury), "shall not exceedin the aggregate $275,000,000,000
(Act of June 26, 1946; U . S . C , title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
snalL be considered as its face amount."
, . .The f o . i l o w i n g table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation;:
Total face amount that m a y be outstanding at any one time
$275 000 000 000
Outstanding
Obligations.issued under Second Liberty.Bond Act, as amended
Interest r bearing:
Treasury bills _
$21,012, 578, 000
Certificates of indebtedness
19,377,175» 000
Treasury notes
32.368.145.800
Bonds Treasury

57 , 9 0 2 , 1 7 7 , 091
4 l 0 , 631, 50 0

Investment series

12,845.692.000
2 6 , 6 7 4 , 794, 000
1 4 , 3 2 7 , 531. 900
.,_

Bearing no. interest:
United States savings stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series..
Total ....;

72,757,898,800

82,807,986,700

Savings (current redemp. value)
Depos itary

Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased

$

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

41,002,325,900
267,726 , 711, 991
5 1 0 , 039» 6 6 0

50,3"O»2o5
1,298,294
1,391,000,000
;.

1,^2,664,579
269 ,679,416, 230

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

-x, ,
0
(O , Vjc,, Ojb
1,054,100

77,086,736

Grand total outstanding

2 6 9 , 7 5 6 , 5 0 2 . 9o6

Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt March 31, 19,54
'(Date)
(Daily Statement of the United States Treasury, M a r c h 3 1 , 1 9 5 4
""(Date)
Outstanding Total gross public debt
„
Guaranteed obligations not owned, by the Treasury
Total gross public debt and guaranteed obligations
D e d u c t - other outstanding public debt obligations not subject to debt limitation

H-444

5 . 2 4 3 #497.034

)

270 , 235,368,469
7 7 1 0 8 6 ,736
270,312,455,205
555* 9 5 2 , 2 3 "
269,756,502,966

STATUTORY
AS

OF

D E B T LIMITATION

March j l ,

g

^

1?5^.

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C, title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
Total face amount that may be outstanding at any one time
$275,000,000,000
Outstanding
Obligations.issued under Second Liberty Bond Act, as amended
Interest r bearing:
^_
Treasury bills
$21,012, 578, 000
Certificates of indebtedness
19 »3 77,175, 000
Treasury notes
111.". 32.368.145.800
$ 72,757,898,800
Bonds Treasury
82,807, 986, 700
Savings (current redemp. value)
57,902,177,091
Depositary
4l0 , 631, 500
Investment series
12,845.692,000
153,966,487,291
Special Funds Certificates of indebtedness
Treasury notes
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States sayings stamps
Excess profits tax refund bonds _
Special notes of the United States:
Internat'l Monetary Fund series
Total

26 , 674, 794, 000
14 , 327 . 531. 900

41,002,325,900
2 6 7 , 726 , 711, 991
510 , 039 , 660

50,366,285
1 298 294
1,391,000,000
'

Guaranteed obligations (not held by Treasury'):
Interest-bearing:
Debentures: F.H.A.
Matured, interest-ceased

„•
/ ,
7° , 032, 636
1,054,100

1,442,664,579
269 , 679,416, 230

77,086,736

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt March^l, 19,54
'(Date)
(Daily Statement of the United States Treasury, M a r c h 3 1 » 1 9 5 4
(DaTej
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

H-kkk

269.756.502.966
5 , 243 ,497. 034

)

270 , 235,368 ,469
77, 086 ,736
270 312 455 205
555 t 9 5 2 , 2 3 9
269,756,502,966

4r&j~~~ ~**4&^ f yfe r ^

> ~ ~ td~y£& -.

I am glad that you have
representatives of the Joint
©a Xatamal Eevenue Taxation,
„ .... ..... , _ ..
from tit* treasury staff will constitute a working group
to consider all technical criticises or suggestions re~
garding the tax revision bill which aay be suuie.
Thm Treasury is very glad to participate ia this
method of resolving technical suggestions com
this M i l . As fen said this aoraittg, ia revii
thiag as complicated as thisffifwipaa"*aeasure,
wmwm hmmmml tm mm mmmm teeiiaiiial, mlmwtmml mt?
printing mmtmm* We all want to get
rected to provide
thm best enactment
possible final
.Mil,
liest possible
of this
bill is
imperative t© assist ia the vital expansion of our
aad creation of thousands of Jobs. Straigh
out of minor technical defeets bv this &reui> which •
hmm announced should materially help ia prompt ee
tion of this vital bill as a whole.
With best

X

v

Sr^^lPiPr^lF m&mgaim gf

mif*a% ^#*a^ff

D. fiillikin

N/Lennarfson/klc
'iteen /4/8/54

m w vsMFlie 0

TREASURY DEPARTMENT
W A S H I N G T O N , D.C.
IMMEDIATE RELEASE
Thursday, April 8, 1954

H-445

Secretary Humphrey today sent the following letter to Chairman
Millikin of the Senate Finance Committee:
Dear Mr, Chairman: April 8, 19$k
I am glad that you have announced that technical
representatives of the Joint Congressional Committee on
Internal Revenue Taxation, and technical people from the
Treasury staff will constitute a working group to consider
all technical criticisms or suggestions regarding the tax
revision bill which may be made#
The Treasury is very glad to participate in this
method of resolving technical suggestions concerning this
bill. As you said this morning, in revising anything as
complicated as this lengthy measure, there were bound to
be some technical, clerical or even printing errors. We
all want to get these things corrected to provide the best
possible final bill.
The earliest possible enactment of this bill is imperative to assist in the vital expansion of our economy
and creation of thousands of jobs. Straightening out of
minor technical defects by this group which you have
announced should materially help in prompt consideration
of this vital bill as a whole•
With best personal regards.
Sincerely,
S/ G. M. Humphrey
Secretary of the Treasury

0O0

|teesday, Anril 13, 19$k*
fhe Treasury Department announced last evening that the tender® for fl, 500,009,000,
or thereabouts, of 91-day Treasury bills to be dated April 1$ and to mature ^u2y 1$9
195U, which were offered on April 8, were opened at the Federal Reserve Banks oa April 1|
The details of this Issue are as follows;
Total applied for - £2,21i±,161i,0QO
Total accepted
- l,501,27ii,OQO

(includes f0tl9mm19OQO entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Average price
- 99.731 Equivalent rate of discount approx** 1.066$ per annum
Eange of accepted ecsspetitive bids? (Bxeeptiag one tender of #325,000)
Hign - 99*750 Equivalent rate ef discount approx* 0*989% P&T annum
Low

- 99-728

••

n

u

n

«

1.0761

«

«

(h$ percent of the a&ouat bid for at th© low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accepted

Boston
lew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
ianncapolis

I

|

it^iiStis L*xi!!jy

Dallas
San Francisco
TOM*

33,k$7,GO0
1,563,328,000
36,301,000
k3,l*53,OOQ
21,523,000
32,639,000
19k,H2,000
35,301,000
31,562,000
66,719,000
1*6,126,000
106,105,000

$2,2lU,l6fcf000

32,1*87,000
965,953,000
23,201,000
39,903,000
19,528,000
31,197,000
163,209,000
30,5014,000
314,052,000

5^,5i9,ooo
29,576,000

72,iU5,ooo
$i,5oi,27b,OQO

TREASURY DEPARTMENT
360
WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Tuesday, April 13.1954.

H-446

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated April 15 and to mature July 15, 1954, which were offered on
April 8, were opened at the Federal Reserve Banks on April 12,
The details of this issue are as follows:
$2,214,164,000
1,501,274,000 (includes $241,667,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
Average price
below)
99.731 Equivalent rate of discount approx. •
per annum
Range of accepted competitive bids: 1.066$
(Excepting
one tender of
$325,000)
Total applied for
Total accepted

- 99.750 Equivalent rate of discount approx.
0.989$ per annum
Low
- 99.728 Equivalent rate of discount approx.
1.076$ per annum
(45 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
Applied for
$
33,487,000
1,563,328,000
36,301,000
43,453,000
21,528,000
32,639,000
194,112,000
35,804,000
34,562,000
66,719,000
46,126,000
106,105,000
$2,214,164,000
0O0

Total
Accepted
$

32,487,000
965,953,000
23,201,000
39,903,000
19,528,000
31,197,000
163,209,000
30,504,000
34,052,000
59,519,000
29,576,000
72,145,000
$1,501,274,000

7
Secretary Humphrey today announced the appointment of S. L. Butterfield,
president of ^he Bank of Nevada, Las Vegas, Nevada, as State Chairman of the
U. S. Savin|s Bonds Advisory Committee for Nevada.
Mr. Butterf ield succeeds A. C. Grant who resigned last February to become a candidate for Governor of Nevada.
f<m~t{ j** *. JUttm- $T
Secretary HumphreyMwee the new Nevada chairman;
A

,!

It gives me extreme pleasure to appoint you Chairman of the Savings

Bonds program for Nevada. Your broad experience in local, as well as national

banking circles should aid us mightily in our efforts to achieve and maintain
a sound and honest dbllar."
Mr. Butterf ield has been successfully identified with banking in Nevada
since 1926. He SSs served as manager of the Bank of Sparks. In 1934 he was
appointed manager of the Carson City Branch of the First National Bank of

Nevada, wheae he served until 194l when he became identified with the Bank of

Nevada at Las Vegas. |f Mr. Butterf ield served last year as President of the

Nevada State Bankers Association, and was recently appointed ABA Vice Presid

for Nevada. A native of Illinois, he has lived in Nevada since 1917« aand/rty
was educated in the Heno schools and the University of Nevada. Mr. Butterfield is a Past President of the Las Vegas Chamber of Commerce, a Rotarian,
an active and popular civic leader, .to im a forceful public speaker0

TREASURY DEPARTMENT
WASHINGTON, D.C. ^Q^j^
IMMEDIATE RELEASE,
Tuesday, April 13, 1954.

H-447

Secretary Humphrey today announced the appointment of S. L. Butterfield, president of the Bank of
Nevada, Las Vegas, Nevada, as State Chairman of the
U0 S. Savings Bonds Advisory Committee for Nevada.
Mr. Butterfield succeeds A. C. Grant, who resigned
last February to become a candidate for Governor of
Nevada,
Secretary Humphrey said in a letter to the new
Nevada chairman:
"It gives me extreme pleasure to appoint you
Chairman of the Savings Bonds program for Nevada. Your
broad experience in local, as well as national, banking
circles should aid us mightily In our efforts to achieve
and maintain a sound and honest dollar."
Mr, Butterfield has been successfully- identified
with banking in Nevada since 1926. He served as manager
of the Bank of Sparks, In 1934 he was appointed manager
of the Carson City Branch of the First National Bank of
Nevada, where he served until 1941, when he became
identified with the Bank of Nevada at Las Vegas.
Mr. Butterfield served last year as President of
the Nevada State Bankers Association, and was recently
appointed ABA Vice President for Nevada. A native of
Illinois, he has lived in Nevada since 1917. He was
educated in the Reno schools and the University of
Nevada,, Mr. Butterf ield is a Past President of the
Las Vegas Chamber of Commerce, a Rotarian, an active
and popular civic leader and a forceful public speaker.

oOo

362

Commenting on Mr. Kingmanfs acceptance, Secretary Humphrey wrote hirat
!l

¥e at the Treasury are enthusiastic over your decision to accept this

appointment, as our Savings Bonds program is important to us in our determination to achieve and maintain a sound and honest dollar. It needs men of
your calibre."

ffmf

a, AS

y#r

*

Of

.- a «!wts^-«--^iseB^^

sirpirsAviiaw-flcnsro^^

,<
Secretary Humphrey today announced the appointment of Henry S, Kingman,
President of the Farmers and Mechanics Savings Bank of Minneapolis, as State
Chairman of the TJ. S. Savings Bonds Advisoiy Committee for Minnesota.
Mr. Kingman succeeds J. C. Cornelius, Executive Vice-President of Bat ton,
Barton, Burstine & Osborn, Inc., who has been State Chairman since 1950.
In accepting Mr, Cornelius» resignation, Secretary Humphrey expressed

his personal thanks and the Treasury*s official appreciation for the valuable
service tn*> h r rendered, "The Treasury appreciates deeply the fine contributions you have made, and is comforted by the knowledge that you will still

be available to lend us your advice and counsel when needed, "*/&, ia^cZX^ I~
The new State Chairman, who will direct volunteer activities in Minnesota

during the Treasury1 s "billion more in '54" savings bonds campaign, has been
an officer of the Farmers and Mechanics Savings Bank of Minneapolis for 28

years, serving first as Secretary, later as Treasurer from 1932 to 1939, when
he was elected President. He is a director of Soo Line Railroad) General
Mills, Inc.; and the Title Insurance Company of Minnesota. He is a graduate

of Harvard School of Business Administration and an alumnus of Amherst Colleg
of which he is at present a trustee. He is also a trustee of the Mutual Life
Insurance Company of New York; Dunwoody Industrial Institute of Minneapolis;
Mayo Association of Rochester, Minnesota; and the Minneapolis Foundation.

Kr. Kingman served as President of the National Association of Mutual Savings
Banks from 1949 to 1950 and has served on its Council of Actaiinistration

since 1931, He is Vice-chairman of the Board of directors of the Internationa

Thrift Institute with headquarters in Amsterdam Netherlands, and is a Directo
of the National Thrift Committee with headquarters in Chicago.
(more)

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE AFTERNOON NEWSPAPERS,
Wednesday, April 14. 1954.

H-448

Secretary Humphrey today announced the appointment of
Henry S. Kingman, President of the Farmers and Mechanics
Savings Bank of Minneapolis, as State Chairman of the
U. S. Savings Bonds Advisory Committee for Minnesota.
Mr. Kingman succeeds J. C. Cornelius, Executive VicePresident of Batton, Barton, Durstine & Osborn, Inc., who
has been State Chairman since 1950.
In accepting Mr. Cornelius1 resignation, Secretary
Humphrey expressed his personal thanks and the Treasairy's
official appreciation for the valuable service the retiring
chairman rendered. "The Treasury appreciates deeply the
fine contributions you have made, and is comforted by the
knowledge that you will still be available to lend us your
advice and counsel when needed," the Secretary wrote.
The new State Chairman, who will direct volunteer activities
in Minnesota during the Treasury's "billion more in T54"
savings bonds campaign, has been an officer of the Farmers
and Mechanics Savings Bank of Minneapolis for 2-5 years,
serving first as Secretary, later as Treasurer from 1932 to
1939, when he was elected President. He is a director of
Soo Line Railroad; General Mills, Inc.; and the Title Insurance
Company of Minnesota. He is a graduate of Harvard School of
Business Administration and an alumnus of Amherst College, of
which he is at present a trustee. He Is also a trustee of
the Mutual Life Insurance Company of New York; Dunwoody
Industrial Institute of Minneapolis; Mayo Association of
Rochester, Minnesota; and the Minneapolis Foundation.
Mr. Kingman served as President of the National Association
of Mutual Savings Banks from 1949 to 1950 and has served on
its Council of Administration since IS31. He is Vice-Chairman
of the Board of Directors of the International Thrift
Institute with headquarters In Amsterdam Netherlands, and
is a Director of the National Thrift Committee with headquarters
in Chicago.
Commenting on Mr. Kingman's acceptance, Secretary Humphrey
wrote him: "We at the Treasury are enthusiastic over your
decision to accept this appointment, as our Savings Bonds
program is important to us in 0O0
our determination to achieve
and maintain a sound and honest dollar. It needs men of your
calibre."

/

y

Secretary Humphrey today announced the appointment of Henry S. Kingman,
President of the Farmers and Mechanics Savings Bank of Minneapolis, as State
Chairman of the U. S. Savings Bonds Advisory Committee for Minnesota.
Mr. Kingman succeeds J. C. Cornelius, Executive Vice-President of Bat ton,
Barton, Durstine & Osborn, Inc., who has been State Chairman since 1950.
In accepting Mr. Cornelius1 resignation, Secretary Humphrey expressed

his personal thanks and the Treasury's official appreciation for the valuable
service trn TITTT rendered. "The Treasury appreciates deeply the fine contriA

butions you have made, and is comforted by the knowledge that you will still

be available to lend us your advice and counsel when needed,"*/^- iu^zZX^ A^^
The new State Chairman, who will direct volunteer activities in Minnesota
during the Treasury's "billion more in f54n savings bonds campaign, has been
an officer of the Farmers and Mechanics Savings Bank of Minneapolis for 28

years, serving first as Secretary, later as Treasurer from 1932 to 1939, when
he was elected President. He is a director of Soo line Railroad; General
Mills, Inc.; and the Title Insurance Company of Minnesota. He is a graduate

of Harvard School of Business Administration and an alumnus of Amherst Colleg
of which he is at present a trustee. He is also a trustee of the Mutual Life
Insurance Company of New York; Dunwoody Industrial Institute of Minneapolis;
Mayo Association of Rochester, Minnesota; and the Minneapolis Foundation.

Mr. Kingman served as President of the National Association of Mutual Savings
Banks from 1949 to 1950 and has served on its Council of Adininistration

since 1931» He is Vice-Chairman of the Board of Directors of the Internationa

Ihrif t Institute with headquarters in Amsterdam Netherlands, and is a Direct
of the National Thrift Committee with headquarters in Chicago.
(more)

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE AFTERNOON NEWSPAPERS,
Wednesday, April 14, 1954,

H-448

Secretary Humphrey today announced the appointment of
Henry S. Kingman, President of the Farmers and Mechanics
Savings Bank of Minneapolis, as State Chairman of the
U, S. Savings Bonds Advisory Committee for Minnesota.
Mr. Kingman succeeds J. C. Cornelius, Executive VicePresident of Batton, Barton, Durstine & Osborn, Inc., who
has been State Chairman since 1950.
In accepting Mr. Cornelius' resignation, Secretary
Humphrey expressed his personal thanks and the Treasury's
official appreciation for the valuable service the retiring
chairman rendered; "The Treasury appreciates deeply the
fine contributions you have made, and is comforted by the
knowledge that you will still be available to lend us your
advice and counsel when needed," the Secretary wrote.
The new State Chairman, who will direct volunteer activities
in Minnesota during the Treasury's "billion more in '54"
savings bonds campaign, has been an officer of the Farmers
and Mechanics Savings Bank of Minneapolis for 28 years,
serving first as Secretary, later as Treasurer from 1932 to
1939, when he was elected President. He is a director of
Soo Line Railroad; General Mills, Inc.; and the Title Insurance
Company of Minnesota. He is a graduate of Harvard School of
Business Administration and an alumnus of Amherst College, of
which he is at present a trustee. He is also a trustee of
the Mutual Life Insurance Company of New York; Dunwoody
Industrial Institute of Minneapolis; Mayo Association of
Rochester, Minnesota; and the Minneapolis Foundation.
Mr. Kingman served as President of the National Association
of Mutual Savings Banks from 1949 to 1950 and has served on
its Council of Administration since 1931. He Is Vice-Chairman
of the Board of Directors of the International Thrift
Institute with headquarters in Amsterdam Netherlands, and
is a Director of the National Thrift Committee with headquarters
in Chicago.
Commenting on Mr. Kingman's acceptance, Secretary Humphrey
wrote him: "We at the Treasury are enthusiastic over your
decision to accept this appointment, as our Savings Bonds
program is important to us in oOo
our determination to achieve
and maintain a sound and honest dollar. It needs men of your
calibre."

April?* 32154

smmm,m&*

Purchase

J&ftff21J380

TREASURY DEPARTMENT
WASHINGTON. D.C

4
IMMEDIATE RELLE-3:
MondayT-44ar^h^

-H-4es

Thorj aUyf tori I N~, ifrv
y/ -y «e^C
During the month of February, 1954,
raarket transactions in direct and guaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of
y

^,eo6-,550.

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Thursday, April 15. 1Q54.

H-449

During the month of March, 1954,
market transactions in direct and gaiaranteed
securities of the government for Treasury
investment and other accounts resulted in
net sales by the Treasury Department of
$22,437,550.

oOo

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Wednesday. April 14, 1954.

H-450

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, 1954, to April 3, 1954, inclusive,
as follows:

Products of the
Philippines

: Established Quota
: Quantity

Imports as of
April 3, 19$k

9
9

Buttons 850,000

Gross

184,828

Cigars 200,000,000

Number

711,075

Coconut Oil , 448,000,000

Pound

28,529,776

Cordage • 6,000,000

Pound

567,822

Rice 1,040,000

Pound

-

(Refined
Sugars
(Unrefined
Tobacco o 6,500,000

1,904,000,000

Pound

403,349,308
Pound

137,503

TREASURY DEPARTMENT
IMMEDIATE RELEASE,
VJry.inDOdayf April 14, 1954,

Washington
H-450

Tho I bureau of Customs announced today preliminary figures showing the import:; for consumption of commodities on which quotas were prescribed by the
Philippine Trade Act of 1946, from January 1, 1954, to April 3, 1954, inclusive,
as follows:

Products of the
Philippines

; Established Quota
: Quantity

Unit
of
Quantity

:
$ Imports as of
: April 3, 1954

t

_

•

Buttons 850,000

Gross

184,828

Cigars 200,000,000

Number

711,075

Coconut Oil 448,000,000

Pound

28,529,776

Cordage 6,000,000

Pound

567,822

Rice « 1,040,000

Pound

-

(Refined
Sugars
(Unrefined
Tobacco , 6,500,000

1,904,000,000

Pound

403,349,308
Pound

137,503

«v_—

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, AM) ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEa 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 Italya
'
Country of Origin
*

I Established
s TOTAL QUOTA
t

United Kingdom . , . . . 4,323,457
Canada . . . . . . . . .
239,690
France . . . . . . .
..
227,420
British India, o . . . ..
69,627
Netherlands .. . . . . . .
68,240
Switzerland . . . . . . .
44,388
Belgium . . . . . . . . .
38,559
Japan 0 ........
•
341,535
China « o . « » » » « » »
ll9}22
Egypt 0 P 0 0 0 . 0 . . 0
8,135
Cuba 0 • • > . 0 . .'* »
6,544
76,329
Germany . . . . . . . . .
76,329
Italy
21
. 263
-•
- 0 0 . . , o o . . o
21so
5,482,509

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

1
Total~Imports
"Established 1
Imports
1/
s Sept. 20, 1953, to « 33-1/3% of * Sept, 20, 1953,
t Total Quota : to April 13, 1954
t April 133 1954
473,808
239,690
5
^yf?
16,668
1,099
—
—
"*

23,940
**22J
7tQ88
816,776

1,441,152
75,807
_
~
22,747
H^Z?;
12,853
-

473,808

AAa
16,668
i noo
1*099

lA

""

25,443
^
,££
7,088
1,599,886

"~
2

2'255
7^88
^°

8 8

522,603

TREASURY ©EPARTMENT
Washington
IMME1IATE RELEASE,
Wednesday, A p y 1 1 14- 1954.,

H-451

Preliminary data on imports for consumption of cotton and,cotton waste chargeable to the quotas
established by the Presidents Proclamation of September 5, 1939, as-amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1953, to April 13, 1954, inclusive
Country of Origin,
Egypt and the AngloEgyptian Sudan . . ,
JPeru

. s o . . . . . '

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

Country of Origin

Imports

49,274

6,049,405
618,723
425,384

Honduras
Paraguay . . . . . . .
Colombia • •
.Iraq .......o
*
British East Africa . .
Netherlands E. Indies.
Barbados . . . . . . .
l/0ther British W. Indies
Nigeria . . . . . .
2/0ther British W. Africa
jj/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. 1953, to April 3, 1954

Cotton 1-1/8" or more, but less than 1—ll/l6w
Imports Feb. 1. 1954. to April 13f 195L.

Established Quota (Global) Imports

Established Quota (Global) Imports

70,000,000

7,175,201

45,656,420 17,221,605

Imports

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Wednesday, April 1 4 , 1954.

H-451
Preliminary data on imports for consumption of cotton and cotton waste chargeable t n th«
established by the Presidents Proclamation of September " 1 9 3 ^ 3 ^ ^ ^
^ ^

COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough Z v,*^ mder 3/, „
Imports Sept.; 20. 1953. to April 13. 1 9 5 ^
int^™*1--^
Country of Origin
Estabiished Quota
Imports
Country of Origin
Established quota
Egypt and the AngloHonduras
752
Egyptian Sudan . . .
783,816
Paraguay
871
Peru
49,274
247,952
Colombia
124
British India
2,003,483
Iraq
.
[
0
e
195
China . . . . . . . . .
1,370,791
6,049,405
British East Africa . !
Mt
2,240
-- cc
8,883,259
618,723
Netherlands E . Indies.
71,388
Brazil .
618,723
Barbados
21,321
Union of Soviet
475,124
425,384
l/0ther
British
W.
Indies
5,377
Socialist Republics ,
5,203
Nigeria
16,004
Argentina
237
2/0ther
British
W.
Africa
689
Haiti
9,333
p
o
t
h
e
r
French
Africa
.
.
B
e
r
m
u
d
a
Ecuador
. . .0. ^. .
¥/
m ! ^ ^
^ ° ^
> Jamaica, Trinidad, and Tobago. Algeria and Tunisia ,
2/ Other than Gold Coast and Nigeria.
^*
J
car.
2/ Other than Algeria, Tunisia, and Madagast
Cotton, harsh or rough, of less than 3//,"
Cotton 1-1/8" or more T but less than l-n/iAu
Imports Sept. 20. 19^3, to April 3, 1954
Imports Feb. 3, 1 ? ^ to Apri1 ^ZlELZZZ
Established Quota (Global)
Imports
Established Quota (Global) Imports
70,000,000
7,175,201
45,656,420 17,2a,605

-2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of le3S than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE5 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 Italy1

Country of Origin

United Kingdom . . . . .
Canada . . . . . . . . .
France . . .
British India . . . . . .
Netherlands
Switzerland
Belgium . .
Japan 0 0 0
China . o •
Egypt . . .
Cuba 0 0 .
Germany . ,
Italy . 0 .

Established
TOTAL QUOTA

:
Total Imports
1 Sept, 20, 1953, to
s April 13, 1954

Established
33-1/3$ 0 f
Total Quota

Imports
1/
Sept. 20, 1953,
to April 13, 1954
473,808

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
-211261

473,808
239,690

23,940
7,088

25,443
7*088

23,940
7,088

5,482,509

816,776

1,599,886

522,603

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

1,441,152
75,807

54,483
16,668
1,099

22,747
14,796
12,853

16,668
1,099

TREASUKY DEPARTMENT
Washington
IMEDIATE RELEASE,
Wednesday, April 14,, 1954.

H-452

The Bureau of Customs annouh^edTtoday 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, 1953,
as follows?

Hheat flour, semolina,
crushed or cracked
wheat, and similar
•wheat products

Wheat
Country
of
Origin

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

Established :
Imports
Quota
:Kay 39, 1953, to
sApril 1 3 v 1954
(Bushels)
(Bushels)
795,000

795,000

—
mm
mm

100
-

100
100
mm

100
2,000

100
-

1,000
mm

100
—
mm

—
~
—
—

1,000

100
100
100
100

34

Established
Quota
(pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

k

Imports

May 29, 19 $1
to April 13, 19
(Pounds)
3,615,000

140
100

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,

H-452

Wednesday, April 14, 1954,

The Bureau of^cnT-rEoms 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, 1953,
as follows?

Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products

Wheat
Country
of
Origin

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

Established :
Imports .
Quota
tMay 29, 1953, to
iApriiaiAU^L-.
(Bushels)
(Bushels)
795,000

795,000

mm

~
~
-

100

34

-

100
100
-

100
2,000

100
-

1,000
mm

100
—
—
.-.
—
._.

Established
Quota
(PoundsT)

Imports
May 29, 19 53
to April 13, 19$k
(Pounds)

3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

3,815,000

ri^my^m

,27j0

-

140
—

100
-~
_.
—
—
~
*.
—
M-

—
-~

1,000

100
100
100
100
800,000

"7957^0"

IMMEDIATE RELEASE,
Wednesday, April 14, 1Q54.

TEEASWBY BEPAF2
Washington

H-453

The Bureau of Customs announced today preliminary figures sa owing the imports for
consumption of the commodities listed below vrithin quota limitations from the beginning
of the quota periods to April 3, 1954, inclusive, as follows:
Unit i
Commodity

of
j Imports as of
Quantity April 3, 1954

7_iole milk, fresh or sour ....... Calendar Year

3,000,000

Cream Calendar year

1,500,000 Gallon

259

5,000,000 Pound

10

cutter

April 1, 1954July 15, 1954

ish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish ....... Calendar year
t#nite or irish potatoes:
certified seed •
other

33,950,386

Gallon

Pound

12 months from 150,000,000 Pound
60,000,000 Pound
Sept. 15, 1953

200,000 Head
Cattle, less than 200 Lbs. each.. 12 months from
April 1, 1954
Cattle9 ?00 Lbs. or more each*... April 1, 1954-120,000 Head
(other than dairy cows)
June 30, 1954
Tialnuts •••• • Calendar year
Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct• 1, 1953

Peanuts, whether shelled, not
shelled, blanched, salted, prepared, or preserved (including
roasted peanuts, but not in12 months from
eluding peanut butter)
July 1, 1953
Peanut Oil

12 months from
July 1, 1953

11,385

10,766,945 (1)

73,084,254
o-uota filled

14

27io

5,000,000 Pound

1,867,163

7,000,000 Pound

6,497,861

1,709,000 Pound
80,000,000 Pound

-*0ats, hulled and unhulled and un- Dec. 23, 1953hulled ground
Sept. 30, 1954
2,500,000

Bushel

6,320
1,531,090

2,463,129

1,167,480
Liar. 31, 19bk~ 31,000,000 Pound
June 30, 1954
(i; Imports for consumption at the quota rate are limited to 16,975,194 pounds during
the first six months of the calendar year.
-* Imports through April 13, 1954, from countries other than Canada.
** Imports through April 13, 1954.

**gye, rye flour and rye meal

DIATE RELEASE,
me iiY> April J4f_lQcUt

o 77

TREASURY DEPARTMENT
Washington

ecdr

H-453

The B-.'rc;.».a o f C u s t o m announced t o d a y preliminary figures di ov.y.ng t h e - i m p o r t s f o r
j|o sumption o f the coir-inoditie-s listed belov: within q u o t a limitations f r o m t h e b e g i n n i n g
>f the q-'jot,.. i-jriods to .ipril 3 , 1 9 5 4 , i n c l u s i v e , a s f o l l o w s :

;o.',ir!:odity

,,hole m i l k , fresh o r sour

: Period a n d q u a n t i t y

Calendar Year

Cream Calendar year

i

utter

-1

fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
V.hite or Irish potatoes:
certified seed
other

April 1, 1954July 15, 1954

: Unit
Imports as of
:
of
: siuantity April 3, 1954

3,000,000

Gallon

11,385

1,500,000 Gallon

259

5,000,000 Pound

10

Calendar year

33,950,386

Pound

10,766,945 (1)

12 months from
Sept. 15, 1953

150,000,000
60,000,000

Pound
Pound

73,084,254
<^uota filled

Cattle, less than 200 Lbs. each.. 12 months from
April 1, 1954

200,000 Head

Cattle, 700 Lis. or more each.... April 1, 1954(other than dairy cows)
June 30, 1954

120,000 Head

a&lnuts ••••••.••••••.•••• Calendar year

5,000,000 Pound

1,867,163

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved

12 months from
Oct. 1, 1953

7,000,000 Pound

6,1*97,861

Peanuts, whether shelled, not
" shelled, blanched, salted, pre^ pared, or preserved (including
roasted peanuts, but not includiny per'nut butter)

12 months from
July 1, 1953

Peanut Oil 12 no nth s from

1,709,000

14

278

Pound

6,320

60,000,000 Pound

1,531,090

2,500,000 Bushel

2,U63,129

July 1, 1953
«0ats, hulled and unhulled and un- bee. 23, 1953I hulled yround
y e p t . 3 0 , ly$k

re, rye flour and rye meal ..••• I.iar. 31, ly'-iy31,000,000 Pound
1,167,430
June ju, IvSli
Imports for consumption a t the ,.uota rate are li,.iited to 16,975,194" •ounas a u r i n
tne Pir.-'t six .'.;OHi.h:: of U J O calcnd: r .vc'.-r.
-«- imports through ,^,1-il 1 3 , la-51., fro;.t ccantriv.s other than C a n a d a .
-;.-;; imports throujh ^px-il 1 3 , l y 5 a .
M-11-

HI

- 3 -

but shall bo except fron all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,
or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States shall be
considered to be interest. Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the
price paid for such bills, v/hothcr on original issue or on subsequent purchase,
and th^ auourit actually received either upon sale or redemption at aaturity
during the taxable year for which the return is uadc, as ordinary gain or loss.
Revised
Treasury Department Circular No. 418, 3XX3P5aoi£aEitj and this notice, prescribe the terns of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained fron any Federal Reserve Bank
or Branch.

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 April 22, 1954 , in cash or
- — — - • — — ~ ~ i» ••• -Tygng—>• • ••

'•• — " — —

Mnffl

other immediately available funds or in a like face amount of Treasury bills
maturing April 22, 1954 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,

i£-i-_QEJiB&]&8Qi.

TREASURY DEPARTMENT
Washington
FOR RELEASE, I!ORNIM> NEWSPAPERS,
Thur^day,_ April 15, 1954
.
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
/ r,y
HHBBM
mmmmmm>

*"-~*ZSK_.
mmi—

*~

^^^^r

in exchange for Treasury bills maturing
April 22. 1954
, in the amount of
$1,501,961,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated April 22, 1954 , and mil mature July 22, 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, April 19, 1954
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 fonus 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

obi

TREASURY DEPARTMENT
WASHINGTON, D C .
RELEASE MORNING NEWSPAPERS,
Thursday,, April 15, 1954.

H-454

The Treasury Department, by this public notice, invites tenders
for $L, 500,000,000, or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing April 22, 1954,
in the amount of $1,501,961,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 22, 1954,
and will mature July 22, 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, April 19, 1954.
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 ofthe 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

- 2 °?*Ee*£ ZQ
' Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on April 22, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 22, 1954,
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 exoise 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 aad 117 (a) (r) of the Internal Revenue
Code, as ajnended 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of tiie circular may be obtained
from any Federal Reserve Bank or Branch.

ty
IiySDIATy RELEASE
".Wednesday, April 14, 1954

H—

Aj ^ V a f
' <5f a

The Treasury announced today that on Friday, iupril 16,
cash tenders will be invited for $1.0 billion of treasury tax
anticipation bills. Tenders will be received up to 2 p.m. on
Wednesday, April 21, with payment to be made on Tuesday, April 27.
The bills may be paid for by credit in Treasury tax and loan
accounts. They will mature on Friday, June 18, but will be
accepted at face value in payment of income and profits taxes
due on June 15, 1954*
The $1.5 billion of tax anticipation biHs issued on
March 22 which will mature on June 24 wiH also be accepted
in payment of income and profits taxes due on June 15, 1954$
thus making- the total amount of Treasury bills to be paid off
out of June tax receipts, %2.$ billion.

—0-

FBartel^hi

TREASURY DEPARTMENT
WASHINGTON, D.C.

ooo
IMMEDIATE RELEASE,
Wednesday, April 14, 1954.

' H-455

The Treasury announced today that on Friday,
April 16, cash tenders will be invited for $1.0 billion
of Treasury tax anticipation bills. Tenders will be
received up to 2 p.m. on Wednesday, April 21, with
payment to be made on Tuesday, April 27. The bills
may be paid for by credit in Treasury tax and loan
accounts.

They will mature on Friday, June 18, but

will be accepted at face value in payment of income
and profits taxes due on June 15, 1954.
The $1.5 billion of tax anticipation bills issued
on March 22 which will mature on June 24 will also be
accepted in payment of income and profits taxes due
on June 15* 1954; thus making the total amount of
Treasury bills to be paid off out of June tax receipts,
$2.5 billion.

0O0

*»§*»

mt the burdsm. In warn* mmd mammm* 1
mt African pride mad mt thm
mt iwmm African eltiaans. I si^ly dm*h believe for on©
i privii^v.a to Xtm in this country xmU
m%mm tm• pqr him mam tmtr and just tmmrm mt Wm mmmh of his
of the mrtaftai b i U wi 11 sj&ke w s i cf -te
On the straeUire of tiie tax l*ii«* with the c a p t i o n ef a imm
tHEV® iiinrfiu *©» iwiiw»f 4Ht*w^$^*s mmm MM maw rwmmemwammma^mwmwmm

feUl n & l have f a r - m s c h i ^ bonitfttft fc©$h to the itfttlM mt

xTtrVtrtfsrmmimt, mmtpmmm

•JtA--

- *-fe- -

C

m^>m^\

imAwl^mlm

apgsaaspefMis jf»*lafi tft*^

zy^Jt\PrJ**>yXk ^ H ~ T € O - © SJ*X$XJ^/-

(Insert on Pag® 8)

(dictated bj MBF)

Q^An Increase in personal exemption m$ $1000 wull result
in a less of $7»8 billion in reYenud*^itfKx«
r^Jt^u^
^
A A ^
*Xjf
fromAincome t a s r W J & about $30 billion*
offset the losa resulting from iawape" increase/ in exemptions
isould require an average Increase of about 40 percent in
^feo*. $fc£f <p*4?*9f** $r~ y^/y*y*Lt^*j\ i**-******* T**?y %
taxes friri ririir71111 w riMiii Eiren an increase of $100 in exemptions
would represent mn increase ia j£

7

peroemt£g» ^ n £ke ^a3t

on those viHMi9« not Fellered-X^**^ jt*w^*W <£**** jflB^-

^%<>*^Utdi

i*>**»<

f*f

i4m*%*-***»m.%

V

-rOa tlit; bAsis of tte^e mgjmmtem
mdmmUmm9
thm January 1st
rsd^ttess coula be sade. ttey wore weloows first
H ^ re.^actioas ia ij^iivl^i&L iroeae taxee a@a& a aavSags to taxpayers —
a loss at r « w ^ to tl» cbveninHt — of $3 billion ia a fall *®ar.
e l M m t l o a «r i f e ^ m a a s profits tax a m s t * te |i billica. & * tax i w i s i ^
bill will Itm&v® additioikl aarlags to iaxjpajwrof atotit P * $ bHli<m# *
Ths Q3ccl^ tax reiaetifltl aot v^Ich went .Into effect % * i i 1 flwaat a
of m « e of afcaost ft billion lariagtag tetal tax Stttettftcae alase to
|?«5 b U l l w u Tbio is a tmawmdmm rmdammm/mXl
occurring la a short marlod
dollar tax ratetlam I* one y^ar ia $ * biat«y of the
the Administration In te pamm bask to
*aila isdatafiW a .Mtortwlist pesiUea. * tti r±m ot the mmmrlma^e -**Nfl
m^tdmm
1M eispcaditarae nhiefe ar* tmdtsr aay* It is s e m i «eeaeai& pmMmy
tm bring ts**s ataet wven >«far« % l « , t e ^ t is ^ a i y t » l « w w U -A tmlflaa?©d
budget is m i will r®aair> an* of Sh« obj-'ttives of tbe A ^ t d n i s u a U ^ . ait
n Y«ry rapid eta*tail«tBftt of ^mraaeafr #spe»dife3r#» ni&tout tax a$g§eat&68
w o a t t M m too great a dislocation £a ta# ^f*o^/tfiieh ba« b « ^ artificially'
- am aefesd th.it $7-1/2 Mllioe la tar cuts are iilcely tm lie amdm la
tins fire* six ^ntrw of this year, ' ^ d e n o t feel that %ha pmmmmt
mthmUm
requires an ©a»rg©aey tax ro«tefcioa program. 3ae deficits tortoatfetfc
fis-CcLl f*araa<i the »a*s ^ a r were estimated a% about $J billion, aaa
liar's deficit ^ila agsgmaeli & ; ilium as a result of thm mmaimm tax
It is for this r^scm Utat we mmmmme ttm
mmdm for ia©sr*i&a©s ia the persons! oaasstpfcica fa the iatilvt&sal
tear y #SSCIt 1 8 0 % aad a*** §1*00 above th* pvemmmt f l & m mt ^ 0 0 * Hi met
only- oppose mmr fartaa? lo©s la rsverm© tiasisr existing coadiUaae, but va
believe that tax xttfcwtloae., ^hmm they earn he mdm9 mmmmtd take ta@ £s*» a
Tho pre^nt aswapttan ef |6oo a p@rsea has been la effect sin;« 19-$
it iiae raised bgr the 3a?ub3LScaa 'on r-s*? from $500, utiles had hmmm fa
mdmtmm® miaam l * ^ PrSm- te ! $ & * tot v^ea^dea nae diffanmt tmr alagle
au-d :iarr-l-.C peoplo aad depamirMits* m% am av«ragefcuaUgrwith thr@a children
had total ^ ^ p t i e n e la 1?]1 mt ^,700 coapftred with ^3,000 aen* At tfaat
tlaa# th@ f lmtt bracket tax rate t^as 10 psrcantf It Is aoir 20 pexxienU Aad
ia 19l@$ the last ?esr betmrm Pmmxt Harbor, tee « n ^ p U e a for the aa::diy «d«a
tlrse chiliron was ^3,200 aad tae first brocket tax rate was U pero«nt. Oa
tlile eeaparleea> tfe^ exe?^tic»r tiae goat C^HI» 6 fateaal aad mtm tax rmtm hma
game up f»3© parcaaW

•

« •

tiie tliird aad £earHi ^aartesa ef
late effect vary ; racialiy, starting "Mtti $
reaching 25 paxaeat ia 10ft^
,-i^ ' •- *iz **> m **

M ' * tliis proposal aea&di aseist tae ffcaasasy by
tae yam* mm otherwia e mt will §et aOUL
la U n a * aad £iae» It « H l f in the long run, help pat
liabilities to i»ip fiaawsa tfmir operat&etia. Dnilviduals am mm ea a
hast* aad nitlt tale et*aiig% corporations will by X9$9 he about
te a cwimat basia ae ia faesiale*
**,

^

- ->4-

'-*%

In addition te aiviai: tax rslief *» aeagr a m t e a e fay taaeviag H & a e la*
tea bill w l U alee plug m aaafeer of loopholes whteh hare crept iate
provision te eleee lespiealas* -*fc?. v*.^ ^ ,
*•

v**

<«

#<

* ***

" *t «r

**

*^'

= • these are emly m tarn mt thm near saaa§e» ia tae Wedmrml tarn System* This
Sa a tax rafafa bill* daaigixsd ta mmprmm the aajar defeats aad to aalp Hie
«AMB§S m<mm&9
hmtk imw^diatmly and la thm Irnrng mm*
It te quite unfair te
attaapt to eeiaaur@ it with other f&aas te gi*a isatdiat® tax vedaatlflHi ea a
big aeela*
ijfcs
*%t m ,u«a ui -*?*: e*«* a\* ,» •
+&*

iff*

"*•

*6^»

**• *** *-

^*""

***'

**

^!J

Ike eoat of tea bill ia less of .fawaa ia $ U a biXltoa, bat ea
feature la tea* the mmmpmwmmmm *ete ieaeatiaa@€ at $2
hmim pam-dMed te ga dona te li? mar&mt* m i s will bring in fl.2 biliiaa —
alaeet eaeaga te finance the entire oast*
fe rmmtimmn blU is aa integral part *f the tax and hidgefc policy ef the
^ tie * ^ #r

I» the mmwhm mi last year, *a ware eoaaraata4 aiHt the praapeet ef a
iway la*§e deficit on the basis ef Hie 03tptai»t»iNi aad tax proyra® of tae prior
AdaiiiistvaUoiu TbU deficit taraed eat te hm more than # billion, aad
projected aspartates for fiscal 195U aefe $*• billion bigae? H m 1 ^ 3 .
me f trat daeteiea isea
aaficits mamU be rs^cad* >
vat»d» a 6-<aoatbs aataaeiifti ef Hie aaaaaa prafits taxf
like taie te*t* J ^
w*- a* ^
'^« . ^* I? b#|l4ffft balpw til?
$$ billioe ^i «#tiaat@d for Hie 1P55 fiaeal yssar*

^-^

1^
An option to capitalise or write off eurreatly the cost
of researclTand development work will penult m a l l cempaaies
to do what larger eeiipanies with well~estsblished research
laboratories alre&cly have donef

Likewise, a shifting of the

burden of proof to tae Government in eases involving the un~
reasonable accumulation of earnings will be beneficial.
The changes concerning corporate reorganisations will help
laake it possible for sssaller companies to maintain their con*
tinned independent existence when one ewner*feei3agemeiit group
retires or needs to realise on part of its investment*

The

longer averaging period for corporation income will be of particular

>

enefit to small businesses with fluctuating incomes

and to risky enterprises! the additional year for the carryback
increases the opportunity fer prompt tax relief in the year of
loss when the refund is moat needed*
Important changes have been made to remove handicaps on
investment abroad*
fw© mi. a half million farmers will benefit from changes
in the treatment of depreciation and the increased allowance
for soil conservation expenses*

V
~ $ *

Several people sharing the support of a dependent say
decide among themselves that some one of them is to have the
benefit of the exemption? foster children will be included as
dependents!" full split income treatment will be allowed to
widows and widowers with' dependent children and single peepla
with very close dependent relatives, regardless of where they '
live —

one-million taxpayers will be affected by these

'&**'£

change B7~J
Medical expenses in excess -of 3 pereent of a taxpayer*!
income will be deductible, compared with those over 5 percent
under present lew —> eight and a Tmlf million taxpayers will
benefit•
Child -care expenses will be deductible by'about half a
million working widow? who support young children*
Many of the revisions, will be of particular benefit, to
small business| several of them were recommended-by the Small
Business Committees of the Congress, including those of previous
Administrations* "the depreciation and double taxation of
dividends provisions will be particularly helpful to satall
business*' tews covering the taxation of partnerships will be
spelled out in the statute for the first time. This will
facilitate the formation and continued operation of partnerships.

eachere, firemen, policemen,
mW

planii or their widows, will receive relief through a pro*
...-•-./

*•>

-

y ^ ^ ^ ^ ^ A

&

vision which will exempt frem/vtaxa* up to ol&Xyretirement
iaeeme^ ^udey ^hisjpgpyislen the pensions to these people
*

as social security benefits*
The method of taxing annuities is « M
fairer treatment is given to survivorship annuities where an
-

-••••-

,-

--

:

• - y;,

•

:

•

.11- ".•.;

--•

employee elects to receive a lower retirement income with
the benefit, being continued to his wife after ale death*
Workers in the low incorte group will
exesspt from taxation the first $100
of dividends received and

a credit up to 10$ on

other di via ends, ^iany workers are now investing a part of
their savings in tstmrnn comon stocks to provide for their
old age*
Workers end saiiy others will benefit fro® tfce provision
<'••.

which permits deduction of interest oharges on installment
purchases
f cVjJ!^^ | Of mmmmm* -mm? other provisions of the b i U will benefit
X?

thm my a earner * lie will be permitted to claim a child as m
-.-::-'•

'• ••-

.

% j * ,-ia

•** •v ".

-

dependent even If the eiiild earns sore than $600 - 1,500,000
taxpayers will benefit from this change myadiately.

£m**~Mt
The saws tax

"pwldeg many benefits io emply^ed^
partimuariy true in xne tSdWliberal tax

\$^

treatment of employee benefits. For several years it has
been rumored that the Treasury would seek to tax as i n c o T n ^ ^ w * ^ ^
benefits lUCCiuetl bj tWpiuyeeH uKdm* IM

M~<Mlleflfffringe

- " i'l-JHk

which in recent years nave been widely adopted in
industry. The bill has definite provisions to the effeet *fc*-T\ .
•«. i **r~^y ^ ^

benefits such as those under, the Blue Cross and Blue

Shield plans and- other ciotoese nnd-accidont insurance plaus

y
are not taxable if they are paid in accordance with a definite
sn whieh. io nerbidiscriAatoiy^^^^ * I
Under another important provision, sickness benefits
paid to employees as compensation for loss of wages will be
tfet **a*«*4^ ***** ^uutc
tax exempt up to $100 a week, provided it +& m ^ualifl^t^
plan ^icii.iy non-diseriainator^*
benefits are tex

A**^**

at present these sick

they are paid under plans

insured by insurance companies*
The bill contains provisions to simplify the rules regarding
employees fewssfi pensions and profit-sharing plans, which will
make it easier for small companies to set up pension plans
for their employees.
Over a million and a half persons, and othoro •wfoe^io
*, who are now receiving retirement

- Jrate dining the'first year* Jta tha leny ray, mt coarse* them i» ae increase
in tax dotations?, ia layer years m « tax alloiw®® laould be less but taxaa
hitter. - Thlm pr&rl^lcn ia ona of the <-*.«t isxrortant.itt Hie bill and «a^aa.
grcsatly sttanlate' pending for sa^ctaatsiiv aad expanding plants m.1 for sweating
jobs.
Aaottor pr-viaioi* ef Hie blH weald grant linitect relief to the %wammmt
full double taxation of dividends. •' these is an ii^^utty is-the present tax treataaDt mt diri<laacle« fhe
oorporatioti ^::y a ^2 percent tax on earnings before aiarthiag is distributed
to. stoeklK>l^:-rD. than the stockholder ia turn-.pan-a tax varying fron 20
percent te 91 percent. If yam follow through m p O O of earnings of a corporation ym »*Hi find tna% the coy>y^tlmx pays a "tax of ':$29 leaving -ytS. IX
all this ware paid out is dlv tckmda, the stoeldioXaor ia - the lowest brocket
would then pay a 20 peroent tax, leaving hia '-38 oat of the '£100 aad If h©
sheila v^ in th^ y ^ r y w bcacawt •^'••"- net w » i M b e H 3 far a single taanayer
and. $20. for a aarrtey eeaple*
Prtmr te 1936 dividends were entirely free froei the aoriasl tax9 which
ii^a dually mm&asm aw-what we. mm cell thu fii^t bracket rate. If we bad
tkm aaaa plan ia operation today, dUridande would be free frcai the first ?^
percent taau In...the. lax ft^ssafgo of 1936t.President Roosevelt, in proposing *
change -in th* cooperate tax, 'ves1b$a&aed 'the Inequity of double taxation of
dividends, and b» suggested a plan under vhicn 'tha corporation would be tared
only tor- the eanifs^ whieh wewaaot at«teH&«te4 to. .the saartsholcltir. tm the
confusion ©v^r the nn&ct'j&rit of tills proposal, the d^vieands-rseslvcd credit
to ttie- 3ndi^i<&tal was • abolialiad and'has'.apt bmm ia -.the lam &lwz^. thus,
rime 1936, dividends have b m subject to fall double taxation*
•':

.

J

.. { •

SiBce 1303, ^ Uu.l has baa a mymhm which largely ©li^aatas double
v^.iu'-u. It is ^yv -.V-tK, to m^; that this plan has net bean changed daring
the period* when the tabor '^r,T»rt «a& in ?>yArrl. Canada, several years
ago, c^ :^.'. d a -das under which the ntocn »elcfer now receives a credit of 20
r>arc*3fit of "Jvi-* "•'* wietvei, w^pired te V" percent its the pcndlat; bill*
Tito ^lan t^cfjaeeil ia the bill jjaru:;* *1 y follows the. lines of the Canadian.
fjlan e^seapt that the smaller stoekfooldsr recaiyea iwt*® favoF&tal© tfeataant
than in ' -«- *.•• lb© first $$® o: alvtdanda —» $100 ia 1 9 8 — w^ild be emwmt
tram taxation &t%\ the 3Uxachol,lar nculd receive, in addition, a credit of a
poi\5eat -» 1" petuokat the H*cr: /war — oa dividend received, thia plan
|i«ividee r.-Ai.»f c" -^-ly about hal " as nueh as ^ristei prior ta 193&, eaBeapi
far those in the lotusr ineeaa tax braclqats, where the relief Is * rcnt^.T.
"'••&

:

•

m

•••-'

":--T

. . . .

.,

the pTOaent double ywt y9
we feel, represents a real handSjoap te
..^Tt^ar.vion ©f baeiaeae#. this is a capitalistic system; in tha past wa have
depended on risk capital far tiemlmpmmt of nm fmtarprlees amd for es^anaien
of old yr^.,,» ^Xtfrge mm
ans needed to create Jobs. It is eatlaatad.that the
mmm.:m cmt of r^twMing plant and ^q^pmmt far mo job is between "'$Bsr"nO and
"1 , rr >% |h@ prfeeat tax systea » k e s It diffiaalt to attoact risk capital

• 2 .

Oi tha tight bwfe-j. s l a ^ a >. fkm msmhmla was on changes needs a to ra;«re
gross inea&itiae or iooreaso tiia national ;.^w*? aad, imidentally* taw
rtsvtptfc J» latu* y^m*. 'tu^ loopholes ha.i to be closed and the tax laws
needed siaplifioatioft.
the • tax revision bill is Uits result of conjuration between Treasury and
Concessional staffs* * arkta*, closely, ttiese staffs foread a MMihmr at Joint
staoy groups to analyse particular test mrma and ask* r-sco^aanidatlans for
aayyiyes. . the <fsys ami Uammm. Ceawittae of ilia liou3© of ijapre^entattres* and
its' Caatraasi, Congraasaan Bmd of Wm xorlr, ttesew^ the highest liaise for
their efforts- on behalf of mlB tax refer® i»asus?e. tlireust: lone hearings and
•any weeks at mmmtdm
sessions* tbia Cosandttee labored to Iw^rwm the tax
aysteta and pit into affoat a long overdue tax .reform.
'. ^_
r&fiF^y Thm revision hill contains a great t&iy fjrovisions, far aorw.than can be
/
^yyemti&md
here* Bat a -few. of tho aajor r- Lai *j3 wiU. he Singled out for
^"^
comaints first deneaolation'
Prior to 193a» the tassps^tsr had wide leeway as to -.. amount which he
could write off ©aoii year against hln ^at'-a-fit insorae as allowance foa the oost
of laaoainasyt equip^at an*2 bwildir4^?:.o long a® hie policy was consistent
and in acoord^Kse- with souaU accounting practise* thm tax authorities raised.
little ^tsstioa* realising that the cost could be written off otHy once. ^ the
law itself prc*/i -s th#t »ther# ehall be allomd as- deductions.•• a reaa^oable
allowance for the- exhanatlon*. .wear and tear (including a r^asonabOU aliotiaae©
for obsoi-.sceHc@3*-!7. Bi 193l*# ia a s&aroh for additional r^veji'y^, the ¥ays and
l^emmm CmmsLttee waa coneidarlag a-bill, to * -,.. depreciation allowances hf
2$ percent, acroae.tao board..... tha treasury realised that- this ?£>at-«axe' approach
would oases mmp hardships, especially to snallor businesses, and proposed a
acre fia**bla;aXtan»tl*a» bat one vhina would wtw&rth&hma increase the revmtm
considerably*. . this. plan wm adopted*
i'^ince thaVtiaw there haa been a yreai dfeal of arl'JUiss that the allow*
warn® mm* inade<pafee and not in aooord with -actual practice. this probably
i«? the saoat widaspi«§ad criticism of the tax structure. In recast year® aaay
. ax-ar-l* . have oonaiderably liberalised the. tmatnent of depreciation, with
the "Jimm it stir.CUting plant expansion and ao^rnisation* the changes were
Ala, revision <4H wool: j^i-nit *aore latitude in solution of imthods of
'leorocistdon and would is^iait larger depreciation, charges .during, the earlier
years of use. Ttauer e m X-«; ->:, — toe ao-calleal double rate .d^kdlnint''balance «*abeat two-tli4iv"s of ^ ^ cost of new buJPUIing®t aachinery and ^ . i a ^ a t , "i«cladin« far» eo^iip* at, if daar-*;U*ed in tfee first half of its lif«» thin would
encourage iavaatnrCiot beeaase tho taxpayer could ^ t a. larger Share of .the coat
back ia a ohorVr porisd of -i.*.. I- would be particularly helpful to small
concerns in finanoing the fawrsSaao of :sew oojiiixnant* Vihai w® are doing is
aij^ky to ailoi' tax dedttctioike *ox* d^smGi&tJcm in accord with the facta. As
kmsma9 thm valu* of *.• aatooKuli t, for iasinnco, d a d lues at r. faster

Senator Millikin* Chsdrwa of the Semtt ll%mm

Coaaittssj

and Seerstary Eimpi^ey.havt.Sjiiii^^ii^i that teehniesl represent**
ti*se mt the Concessional and Tremens^ staffs have forasl &
•y

'

f

'

*

"*~

working p*©np to consldwr technical erttleUtat » M suggestions
regarding the blll# R^prsseai&tiires of snljipawalrorpiiis&tJb^i
American
'tush, as the Bar,.4ss0eiation mad the/Xastitaie ef aewmit&nts
have already Mt with this group, apNianastte have been
reached W:fmmmmm& sewrml cba&igs* sMeti immM elsrify esrt&ln
b t &i&X±Mi %,{$£

swotlong of the bill' m& oorrtot stiaar &tftets«

:

fMs. group
TV

would welcome suggestions fmy^LmmmmA mi thm blU*

:

y- ^-3
THE IMPORTANCE OF THE TAX REVISION BILL

the tax rmisim bill whloh has passed the Wmm and is pending in the Senate is the first cavf&ete overhaul of the federal tm System since before
the tarn of tho cewtasry and the enaetusnt of the JRCVM:- .- * a^-.r present
tax structure has groan a; haphasardly ove" sutay yearn a t%ma have been
added itpm tame*, aairly io finance the huge eostst of tlsrid'yer IX and the
defease build-up slnee Iter ,m
Any tax isyete?3 diverts te' dovarnaant w ~oods anrf services ww*eh-weald
otherwise be available for private pwjepose*.* tt ia vitally iapertaat that
our tec •-aysbsa) provide adequate revenue with a adniana of adfnrse effects on
the econo^. as tha tax system has developed it has ij^seeed serious inequities
as wall -as seje&Ndsn* oa oconoale. prmmth,anoltiwj.sseaUaas C /ato. S m effects
of these restraints w r o not so evident when federal taxes took a relatively
saell part of total J&tioml income. Vie could g@t ay,,with a bad tax ay* tea
which took ? percent of the^fetional iaeons, m it iid^ln'1936, bat it la gaits
different when IMsnvV- tax racily is are about 2$ percent of ^ktlot-l inooae,
as they are tsaay. '
''- the bad offeete of the present aya%avlwMflt not ereatad serious pemhLimam
only because war and Inflation have kept the oeonoay active. Unless the
system Is chan&mj* s#rlous tax restrainta will affect ccoBOiaie growth* $©ne
cf us want to aepenui <.a- war and iafXatioji in the futarei wa mat depemd mm the
normal inaeatlvaa for iyrowth.
Sine© <y Hr X% Oongreasdonal Coassitteea have called attention to the
pressing weed tmt revision of the tax st^etara. ifey private groups,
rapreeenting d l w a v m t nyj-y of view* have suggested changes — and there have
been broad a m a s ef agreawent in the plans prepasod by these group®.
Tkm President* in hie 1953 Stat® of the Union Usesage* asked the treasury
Bepartswnt tm review the taxipsteni with a vjbsw to mMmg rmw:***.i -wl *r^ to
Coagswaa^dPw awrawt-diBt aalttr '
u*A*A&. WMt^a.a \

Da tills stuclsr the trea3.*ry*s aim has been to determine "^hat change® should
bo my
in. tha best interests of the country as a W1K:1O« Of ©ours®, the
revenue cost involved in each change had to be given careful attention because

- 9Rate reductions — and not increases in exemptions — are
called for in any attempt to relieve burdens in the order in
which they were imposed.
An increase in the exemption to $1,000 would excuse one
taxpayer in three from all Federal income taxes„ lb would mean
that a family with three children would pay no income tax until
their income exceeded $5,500 a year, over ?450 a month.
An increase in the personal exemption to $1,000 would result
in a loss of $7.8 billion in revenue, reducing the present
revenue from individual income taxes from about $30 billion to
about $22.2 billion. To offset the loss resulting from such
an increase in exemptions would require an average increase
of about 40 percent in taxes from those still subject to
individual income tax. Even an increase of $100 in exemptions
would represent an increase of 9 percent in the tax on those
not relieved from paying any individual income tax whatever.
President Eisenhower, on March 153 said he favored cutting
taxes when they could be cut, but that he did not believe that
the way to make the cut was to excuse millions of Americans
from paying any income tax at all. He went on to say:
"The good American doesn't ask for favored position
or treatment. Naturally he wants all fellow citizens to
pay their fair share of the taxes, and he wants every
cent collected to be spent wisely and economically. But
every real American is proud to carry his share of the
burden. In war and peace, I have seen countless
examples of American pride and of the unassuming but
inspiring courage of young American citizens. I simply
don't believe for one second that anyone privileged to
live in this country wants someone else to pay his own
fair and just share of the cost of his government,"
The adoption of the revision bill will make most of the
necessary changes in the structure of the tax laws, with the
exception of a few areas which we have reserved for further
analysis and later recommendations. The revision bill will
have far-reaching benefits both to the millions of individuals
directly affected and to the whole country through the removal
of tax roadblocks to economic growth; the bill will stimulate
the creation of more and better jobs. Early enactment of
this vital legislation will be particularly helpful during the
oOo
present transition period.

- 8 On the basis of these expenditure reductions, the January 1st
tax reductions could be made. They were welcome first steps
towards lower taxes.
The reductions in individual income taxes mean a savings
to taxpayers — and a loss of revenue to the government — of
$3 billion in a full year* The elimination of the excess
profits tax amounts to $2 billion. The tax revision bill will
involve additional savings to taxpayers of about $1.5 billion.
The excise tax reduction act which went into effect April 1
meant a further loss of revenue of almost $1 billion bringing
total tax reductions close to $7.5 billion. This is a tremendous
reduction, all occurring in a short period of time, the greatest
dollar tax reduction in one year in the history of the country.
The policy of the Administration is to pass back to
taxpayers through tax reductions savings in government expenditures as rapidly as this can be done while maintaining a sound
budget position. In view of the very large reductions in
expenditures which are under way, it is sound economic policy
to bring taxes down even before the budget is fully balanced.
A balanced budget is and will remain one of the objectives of
the Administration. But a very rapid curtailment of government
expenditures without tax reduction would cause too great a
dislocation in the economy, which has been artificially supported
by government deficits.
We have, noted that $7-1/2 billion in tax cuts are likely to
be made in the first six months of this year. We do not feel
that the present situation requires an emergency tax reduction
program. The deficits for both the current fiscal year and
the next year were estimated at about $3 billion, and next
year's deficit will approach $4 billion as a result of the
excise tax reduction.
It is for this reason that, we oppose the several suggestions
which have been made for increases in the personal exemption in
the individual income tax by $100, $200, and evens $400 above
the present figure of $600. We not only oppose any further
loss in revenue under existing conditions, but we believe
that tax reductions, when they can be made, should take the form
of rate reductions.
The present exemption of $600 a person has been in effect
since 1948 when it was raised by the Republican Congress from
$500, which had been in existence since 1944. Prior to 1944,
the exemption was different for single and married people and
dependents. But an average family with three children had total
exemptions in 1941 of $2,700 compared with $3,000 now. At that
time, the first bracket tax rate was 10 percent; it is now
20 percent. And in 1940, the last year before Pearl Harbor, the
exemption
for gone
the
three
children
$3,200
andthe
the
500
first
exemption
percent*
bracket
has
tax family
rate
downwas
6with
percent
4 percent.
and
fcite
On this
taxwas
rate
comparison,
has gone
up

- 7 This proposal would assist the Treasury by spreading the
collections evenly throughout the year — otherwise we will get
all our taxes from corporations in March and June. It will, in
the long run, help put corporations in a sounder financial
condition — too many now depend on their tax liabilities to
help finance their operations. Individuals are now on a
pay-as-you-go basis and with this change, corporations will by
1959 be about as close to a current basis as is feasible.
In addition to giving tax relief to many millions by
removing these inequities, the bill will also plug a number of
loopholes which have crept into the system, and thus save revenue.
Chairman Reed described fifty specific provisions to close
loopholes.
These are only a few of the many changes in the Federal
Tax System. This is a tax reform bill, designed to correct
the major defects and to help the whole economy, both immediately
and in the long run. It is quite unfair to attempt to compare
it with other plans to give immediate tax reductions on a big
scale.
The cost of the bill in loss of revenue is $1.4 billion,
but an important feature is that the corporation rate is
continued at 52 percent instead of being permitted to go down
to 47 percent. This will bring in $1.2 billion — almost
enough to finance the entire cost.
The revision bill is an 'integral part of the tax and budget
policy of the Administration.
In the spring of last year, we were confronted with the
prospect of a very large deficit on the basis of the expenditure
and tax program of the prior Administration. This deficit
turned out to be more than $9 billion. And projected expenditures
for fiscal 1954 were $4 billion higher than 1953.
The first decision was to maintain revenues until the
expenditaires and deficits could be reduced. The new
Administration recommended, and the Congress voted, a 6-months
extension of the excess profits tax, even though we did not
like this tax.
Expenditures for the current — 1954 — fiscal year are
being reduced $7 billion below those originally projected and
a further reduction cf more than $5 billion is estimated for the
1955 fiscal year.

- 6|

j
Medical expenses in excess of 3 percent of a taxpayer's
I income will be deductible, compared with those over 5 percent
I under present law — eight and a half million taxpayers will
I benefit.
j Child care expenses will be deductible by about half a
I million working widows 'who support young children.

i
I
Many of the revisions will be of particular benefit to
j small business; several of them were recommended by the Small
| Business Committees of the Congress, including those of previous
I Administrations. The depreciation and double taxation of
I dividends provisions will be particularly helpful to small
I business. Laws covering the taxation of partnerships will be
1 spelled out in the statute for the first time. This will
I facilitate the formation and continued operation of partnerships,
IAn option to capitalize or write off currently the cost
of research and development work will permit small companies
to do what larger companies with well-established research
laboratories already have done. Likewise, a shifting of the
S burden of proof to the Government in cases involving the
! unreasonable accumulation of earnings will be beneficial.
| The changes concerning corporate reorganizations will help
| make it possible for smaller companies to maintain their
| continued independent existence when one owner-management group
| retires or needs to realize on part of its investment. The
| longer averaging period for corporation income will be of
I particular benefit to small businesses with fluctuating incomes
| and to risky enterprises; the additional year for the carryback
j increases the opportunity for prompt tax relief in the year of
I loss when the refund is most needed.
i

}
Important changes have been made to remove handicaps on
| investment abroad.
Two and a half million farmers will benefit from changes
in the treatment of depreciation and the increased allowance
for soil conservation expenses.
One provision requires corporations to make partial advance
^payments in the third and fourth quarters of the taxable year.
;This plan would be put into effect very gradually, starting with
5 percent per quarter in 1955^ and reaching 25 percent in 1959.
Companies with tax liabilities of less than $50,000 would not
be affected — these represent 90 percent of the corporations.

- 5 Under another important provision, sickness benefits paid
to employees as compensation for loss of wages will be tax
exempt up to $100 a week, provided the benefits are paid under
a non-discriminatory plan. At present these sick benefits are
taxable unless they are paid under plans insured by insurance
companies.
The bill contains provisions to simplify the rules regarding
employees ^pe-n^ons and profit-sharing plans, which will make
it e a s i e r ^ f o r e m a n companies to set up pension plans for their
emp 1 oy e e s.
Over a million and a half persons, who are now receiving
retirement income from pension plans for teachers, firemen,
policemen, or their widows, will receive relief through a
rovision which will exempt from the first-bracket tax up to
1200 of retirement income. Thus the pensions to these people
are given about the same treatment as social security benefits.
The method of taxing annuities is improved and fairer
treatment is given to survivorship annuities where an employee
elects to receive a lower retirement income with the benefit
being continued to his wife after his death.
Workers in the loii income group will be able to exempt
from taxation the first $100 of dividends received and will
have a credit up to 10 percent on other dividends. Many workers
are now investing a part of their savings in common stocks to
provide for their old age.
Workers and many others will benefit from the provision
which permits deduction of interest charges on installment
purchases even if these charges are not separately stated in
the contract.
Of course, many other provisions of the bill will benefit
the wage earner. He will be permitted to claim a child as a
dependent even if the child earns more than $600 — 1,500,000
taxpayers will benefit from this change immediately.
Several people sharing the support of a dependent may
decide among themselves that some one of them is to have the
benefit of the exemption; foster children will be included as
dependents; full split income treatment will be allowed to
widows and widowers with dependent children and single people
with very close dependent relatives, regardless of where they
live — one million taxpayers will be affected by these changes.

- 4in the corporate tax, recognized the inequity of double taxation
of dividends, and he suggested a plan under which the corporation
would be taxed only for the earnings which were not distributed to
the shareholder. In the confusion over the enactment of this
proposal, the dividends-received credit to the individual was
abolished and has not been in the law since. Thus, since 1936,
dividends have been subject to full double taxation.
Since 1803, England has had a system which largely eliminates
double taxation. It is interesting to note that this plan has not
been changed during the periods when the Labor Government was in
control. Canada, several years ago, adopted a plan under which
the stockholder now receives a credit of 20 percent of dividends
received, compared to 10 percent in the pending bill.
The plan proposed in the bill generally follows the lines of
the Canadian plan except that the smaller stockholder receives more
favorable treatment than in Canada. The first $50 of dividends —
$100 in 1955 -- would be exempt from taxation and the stockholder
would receive, in addition, a credit of 5 percent -- 10 percent
the second year -- on dividends received. This plan provides
relief of only about half as much as existed prior to 193^, except
for those in the lower income tax brackets, where the relief is
greater.
The present double taxation, we feel, represents a real
handicap to expansion of business. This is a capitalistic system;
in the past we have depended on risk capital for development of
new enterprises and for expansion of old ones. Large sums are
needed
to create jobs. It is estimated that the average cost of
ri^e
providing plant and equipment for one job is between $8,f'00 and
The tax
now before
Senate Finance
Committee
$10,000.
Therevision
present bill
tax system
makes the
it difficult
to attract
i~ nrov
provides
many benefits for the 60 million American wage-earners.
risk capital.
This is particularly true in the more liberal tax treatment of
employee benefits. For several years it has been rumored that the
Treasury would seek to tax as income, employer's contributions for
"fringe" benefits which in recent years have been widely adopted in
industry. The bill has definite provisions to the effect that
employer's contributions to employee's sickness and accident plans
are not to be taxed. In addition, benefits such as those under
such plans as the Blue Cross and Blue Shield plans are not taxable
if they are paid in accordance with a non-discriminatory plan.

- 3a bill to reduce depreciation allowances by 25 percent, across the
board. The Treasury realized that this meat-axe approach would
cause many hardships, especially to smaller businesses, and proposed
a more flexible alternative, but one which would nevertheless increa.
the revenue considerably. This plan was, adopted.
Since that time there has been a great deal of criticism that
the allowances were inadequate and not in accord with actual practicThis probably is the most widespread criticism of the tax structure;
In recent years many countries have considerably liberalized the
treatment of depreciation, with the view to stimulating plant
expansion and modernization. The changes were effective.
The revision bill would permit more latitude in selection of
methods of depreciation and would permit larger depreciation charges
during the earlier years of use. Under one method -- the so-called
double rate declining balance -- about two-thirds of the cost of
new buildings, machinery and equipment, including farm equipment,
is depreciated in the first half of its life. This would encourage
investment because the taxpayer could get a larger share of the cost
back in a shorter period of time. It would be particularly helpful to small concerns in financing the purchase of new equipment.
What we are doing is simply to allow tax dedaictions for depreciation in accord with the facts. As everyone knoitfs, the value of an
automobile, for instance, declines at a faster rate during the
first year. In the long run, of course, there is no increase in
tax deductions; in later years the tax allowance would be less but
taxes higher. This provision is one of the most important in the
bill and would greatly stimulate spending for modernizing and
expanding plants and for creating jobs.
Another provision of the bill woaild grant limited relief to
the present full double taxation of dividends.
There is an inequity in the present tax treatment of dividends.
The corporation pays a 52 percent tax on earnings before anything
is distributed to stockholders. Then the stockholder in turn pays
a tax varying from 20 percent to 91 percent. If you follow
through on $100 of earnings of a corporation you will find that
the corporation pays a tax of $52, leaving $48. If all this were
paid out in dividends, the stockholder in the lowest bracket would
then pay a 20 percent tax, leaving him $38 out of the $100 and
if he should be in the $50,000 bracket the net would be $13 for
a single taxpayer and $20 for a married couple.
Prior to 1936 dividends were entirely free from the normal
tax, which was usually the same as what we now call the first
bracket rate. If we had the same plan in operation today,
dividends would be free from the first 20 percent tax. In the
Tax Message of 1936, President Roosevelt, in proposing a change

- 2 The President, in his 1953 State of the Union Message, asked
the Treasury Department to review the tax system with a view to
making recommendations to Congress- which would"develop a system
of taxation which will impose the least possible obstacle to the
dynamic growth of the country."
In this study the Treasury's aim has been to determine what
changes should be made in the best interests of the country as
a whole. Of course, the revenue cost involved in each change had
to be given careful attention because of the tight budget situation.
The emphasis was on changes needed to remove gross inequities or
increase the national income and, incidentally, tax receipts in
later years. Many loopholes had to be closed and the tax laws
needed simplification.
The tax revision bill is the result of cooperation between
Treasury and Congressional staffs. Working closely, these staffs
formed a number of joint study groups to analyze particular tax
areas and make recommendations for changes. The Ways and Means
Committee of the House of Representatives, and its Chairman,
Congressman Reed of New York, deserve the highest praise for their
efforts on behalf of this tax reform measure. Through long hearings and many weeks of executive sessions, this Committee labored
to improve the tax system and put into effect a long overdue tax
reform.
Senator Millikin, Chairman of the Senate Finance Committee,
and Secretary Humphrey have announced that technical representatives of the Congressional and Treasury staffs have formed a
working group to consider technical criticisms and suggestions
regarding the bill. Representatives of some organizations such
as the Bar Association and the American Institute of Accountants
have already met with this group. Agreements have been reached
to recommend several changes which would clarify certain
sections of the bill and correct minor defects. This technical
group would welcome suggestions for improvement of the bill.
The revision bill contains a great many provisions, far more
than can be mentioned here. But a few of the major revisions
will be singled out for comment; first depreciation allowance.
Prior to 1934, the taxpayer had wide leeway as to the amount
which he could write off each year against his current income as
allowance for the cost of machinery, equipment and buildings.
So long as his policy was consistent and in accordance with sound
accounting practice, the tax authorities raised little question,
realizing that the cost could be written off only once. The law
itself provides that "there shall be allowed as deductions...a reasonable allowance for the exhaustion, wear and tear (including a
reasonable allowance for obsolescence)--". In 1934, in a search
for additional revenue, the Ways and Means Committee was considering

y>

t, •/*
/

FOR RELEASE ON DELIVERY H-456
Remarks by Marion B. Folsom, Undtor secretary
of the Treasury, before National Petroleum
Association, Cleveland Hotel, Cleve. {and, Ohio,
at approximately 2:30 P.M. EST Thursday*
April 15, 1954.
THE IMPORTANCE OF THE TAX REVISION BILL-,
The tax revision bill which has passed the House and la'r
pending in the Senate is the first complete overhau.l of the B\. deral1
Tax System since before the turn of the century and the enactmen "'t
of the income tax. Our present tax structure has grown up haphazardly over many years. Taxes have been added upon taxes,
*
mainly to finance the huge costs of World War II and the defense
build-up since Korea.
Any tax system diverts to Government use goods and services
which would otherwise be available for private purposes. It is
vitally important that our tax system provide adequate revenue
with a minimum of adverse effects on the economy. As the tax
system has developed it has imposed serious inequities as well as
restraints on economic growth and the /creation of jobs. The
effects of these restraints were not so evident when Federal taxes
took a relatively small part of total national income. We could
get by with a bad tax system which took 7 percent of the national
income, as it did in 1936, but it is quite different when Federal
tax receipts are about 25 percent of National income, as they are
today.
The bad effects of the present system have not created serious
problems only because war and inflation have kept the economy
active. Unless the system is changed, serious tax restraints will
affect economic growth. None of us want to depend on war and
inflation in the future; we must depend on the normal incentives
for growth.
Since World War II Congressional Committees have called
attention to the pressing need for revision of the tax structure.
Many private groups, representing divergent points of view, have
suggested changes -- and there have been broad areas of agreement
in the plans proposed by these groups.

LfXf<°
FOR RELEASE ON DELIVERY

l

Remarks by Marion B. Folsom, Under Secretary
of the Treasury, before National Petroleum
Association, Cleveland Hotel, Cleveland, Ohio,
at approximately 2:30 P.M. EST Thursdays
April 15, 1954/

yy

AQQ

FOR RELEASE ON DELIVERY

H-456

Excerpts from remarks by Marion B. Folsom,
Under Secretary of the Treasury, before
National Petroleum Association, Cleveland
Hotel, Cleveland, Ohio, at approximately
2:30 P.M. EST Thursday, April 15, 1954.
WAGS-EARNER'S BENEFITS FROM TAX REVISION BILL
The tax revision bill now before the Senate Finance Committee
provides many benefits for the 60 million American wage-earners.
This is particularly true in the more liberal tax treatment of
employee benefits. For several years it has been rumored that the
Treasury would seek to tax as income, employer's contributions for
"fringe" benefits which in recent years have been widely adopted in
industry. The bill has definite provisions to the effect that
employer's contributions to employee's sickness and accident plans
are not to be taxed. In addition, benefits such as those under
such plans as the Blue Cross and Blue Shield plans are not taxable
if they are paid in accordance with a non-discriminatory plan.
Under another important provision, sickness benefits paid
to employees as compensation for loss of wages will be tax
exempt up to $100 a week, provided the benefits are paid under
a non-discriminatory plan. At present these sick benefits are
taxable unless they are paid under plans insured by insurance
companies.
The bill contains provisions to simplify the rules regarding
employees pensions and profit-sharing plans, which will make
it easier for small companies to set up pension plans for their
employees.
Over a million and a half persons, who are now receiving
retirement income from pension plans for teachers, firemen,
policemen, or their widows, will receive relief through a
provision which will exempt from the first-bracket tax up to
$1200 of retirement income. Thus the pensions to these people
are given about the same treatment as social security benefits.

- 2 The method of taxing annuities is improved and fairer
treatment is given to survivorship annuities where an employee
elects to receive a lower retirement income with the benefit
being continued to his wife after his death.
Workers in the low income group will be able to exempt
from taxation the first $100 of dividends received and will
have a credit up to 10 percent on other dividends. Many workers
are now investing a part of their savings in common stocks to
provide for their old age.
Workers and many others will benefit from the provision
which permits deduction of interest charges on installment
purchases even If these charges are not separately stated in
the contract.
Of course, many other provisions of the bill will benefit
the wage earner. He will be permitted to claim a child as a
dependent even if the child earns more than $600 -- 1,500,000
taxpayers will benefit from this change immediately.
Several people sharing the support of a dependent may
decide among themselves that some one of them is to have the
benefit of the exemption; foster children will be included as
dependents; full split income treatment will be allowed to
widows and widowers with dependent children and single people
with very close dependent relatives, regardless of where they
live -- one million taxpayers will be affected by these changes.
Medical expenses in excess of 3 percent of a taxpayer's
income will be deductible, compared with those over 5 percent
under present law -- eight and a half million taxpayers will
benefit.
Child care expenses will be deductible by about half a
million working widows who support young children.
Many of the revisions will be of particular benefit to
small business; several of them were recommended by the Small
Business Committees of the Congress, including those of previous
Administrations. The depreciation and double taxation of
dividends provisions will be particularly helpful to small
business. Laws covering the taxation of partnerships will be
spelled oait in the statute for the first time. This will
facilitate the formation and continued operation of partnerships.

- 3An option to capitalize or write off currently the cost
of research and development work will permit small companies
to do what larger companies with well-established research
laboratories already have done. Likewise, a shifting of the
burden of proof to the government in cases Involving the
unreasonable accumulation of earnings will be beneficial.
The changes concerning corporate reorganizations villi help
make it possible for smaller companies to maintain their
continued independent existence when one owner-management group
retires or needs to realize on part of its investment. The
longer averaging period for corporation income will be of
particular benefit to small businesses with fluctuating incomes
and to risky enterprises; the additional year for the carryback
increases the opportunity for prompt tax relief in the year of
loss when the refund is most needed.
Important changes have been made to remove handicaps on
investment abroad.
Two and a half million farmers will benefit from changes
in the treatment of depreciation and the increased allowance
for soil conservation expenses.
One provision requires corporations to make partial advance
payments in the third and fourth quarters of the taxable year.
This plan would be put into effect very gradually, starting with
5 percent per quarter in 1955, and reaching 25 percent in 1959.
Companies with tax liabilities of less than $50,000 would not
be affected -- these represent 90 percent of the corporations.
This proposal would assist the Treasury by spreading the
collections evenly throughout the year -- otherwise we will get
all our taxes from corporations in March and June. It will, in
the long run, help put corporations in a sounder financial
condition -- too many now depend on their tax liabilities to
help finance their operations. Individuals are now on a
pay-as-you-go basis and with this change, corporations will by
1959 be about as close to a current basis as Is feasible.
In addition to giving tax relief to many millions by
removing these inequities, the bill will also plug a number of
loopholes yhich have crept into the system, and thus save revenue
Chairman Reed described fifty specific provisions to close
loopholes.

- 4These are only a few of the many changes in the Federal
Tax System. This is a tax reform bill, designed to correct
the major defects and to help the whole economy, both immedlatel
and in the long run. It is quite unfair to attempt to compare
it with other plans to give immediate tax reductions on a big
scale.
The cost of the bill in loss of revenue is $1.4 billion,
but an important feature Is that the corporation rate is
continued at 52 percent instead of being permitted to go down
to 47 percent. This will bring in $1.2 billion -- almost
enough to finance the entire cost.
The revision bill Is an integral part of the tax and budget
policy of the Administration.
The adoption of the revision bill will make most of the
necessary changes in the structure of the tax laws, with the
exception of a few areas whj ch we have reserved for further
analysis and later recommendations. The revision bill wall
have far-reaching benefits both to the millions of individuals
directly affected and to the whole country through the removal
of tax roadblocks to economic growth; the bill will stimulate
the creation of more and better jobs. Early enactmer.t of
this vital legislation will be particularly helpful during the
present transition period.

oOo

410
TREASURY DEPARTMENT
Washington
FOR RELEASE P.M. NEWSPAPERS,
Thursday, April 15, 1954.
•
H-457
Remarks by Treasury Secretary George M. Humphrey
before American Society of Newspaper Editors,
Statler Hotel, Washington, D. C., 9:15 a.m.,
Thursday, April 15, 1954
Just about a year ago I had the pleasure of appearing before
you. If you will remember there was then great concern as to
whether or not a hoped for peace in Korea would quickly bring on
a depression. My talk to the Associated Press Annual Meeting in
New York two days later, which many of you here today attended,
began with these words:
"There is no reason to fear peace.
"We are not headed for depression."
We all were grateful that the fighting in Korea soon ended
and 1953 was the biggest and the best year in American history.
Then we had only plans for reduction of government
expenditures and only hopes of tax reductions to follow.
And now a year later with actual accomplishments in both
fields where then we had but plans and hopes many people have
again been concerned with fears of depression and the prophets
of gloom have been loud in their dire predictions.
It is easy to be misled about how "good or bad" business
really is in this country after all the loose talking that has
been done. It would be especially unfortunate if the editors
of the great newspapers of this country should not have the proper
perspective on the state of ou.r economy.
Let us remember such things as these:
Average employment in the first thjgee months of this
year was 60 million people — the highest number of people
employed during that period of the year in any year of our
history except for the first three months of last year immediately
following President Eisenhower's election.

- 2 Construction contracts awarded in March of this year were
13 percent higher than a year ago.
Total personal income is running higher than it was a year
ago.
There are some other indicators which are down, and we
recognize that unemployment Is up over a year ago. Moreover
we fully realize that each individual who is out of a job has
a serious personal problem, and this Administration is greatly
concerned to see that everyone who wants work can have
employment.
But basically our present economic condition is a result
of necessary inventory adjustments plus a transition from wartime
to peacetime spending by the government. As we cut government
spending, we must return to the people in tax cuts — as we are
now doing — the billions of dollars of government money saved
so that it can then be put to making new jobs for the people who
previously got their income from government spending.
We are transferring this money back to the people by tax
cuts which, when the tax revision bill is passed, will mean total
tax cuts effective this year of $7.4 billion — the largest
single dollar tax cut in any year in the nation's history.
When our tax program is fully effective every single
taxpayer in this country will have received some tax cut and
benefit in this year.
The jobs which came from the government's spending of these
billions must now be found — and are being found — in private
industry making things for the people to buy. All of those
people who were making tanks and guns must now make washing
machines and other things for peaceful living.
The fact that employment continues at the very high level
of 60 million people at work shows that this transition to making
things for living instead of for killing is being made remarkably
well.
I am confident of the future and that we are not now headed
for a depression.
Some people, fearing further downward trends, ask when the
government is going to get "in" and do something about it.

- 3The fact is that the government is always "in.
There are
so many things that the government does — or does not do
*nat
have a very real bearing on the state of the economy.
There are many things that the government has already done;
things recommended which are now before the Congress; and things
which the Administration has proposed either for the future^or
for action by executive agencies, all of which have and will help
strengthen our economy.
First, in things already done, we should look at an area of
government action very close to us at Treasury -- the area of
flexible debt management and monetary policy.
The Federal Reserve Board — with its responsibility for
monetary policy — reduced reserve requirements of member banks
substantially as early as last June to make sure that there would
be no bar to the proper volume of bank credit necessary to a
growing economy. The Federal Reserve has purchased short-term
government securities in the market, to increase bank reserves,
for a considerable period. The rate at which bankers can borrow
from the Federal Reserve was reduced in February and again just
day before yesterday a further reduction was approved.
Treasury debt management also has been a positive factor,
and government Interest rates have fallen to the lowest point
in many years. Last July the Treasury had to pay 2-1/2 percent
for a 8-month loan. In February we paid the same rate for a
loan running almost 8 years. And our last one-year money
borrowing was at 1-5/8 percent. Ninety-day bills cost close to
2-1/2 percent last June; now they are down to 1 percent.
In the current economic environment the Treasury has
purposely done its financing in a way that would not interfere
with the availability of long-term investment funds to
corporations, state and local governments, and for mortgages to
home owners. We want to be sure that plant and equipment, home
building, and other construction all have ample available funds.
The fact that construction thus far this year is running so high
demonstrates how effective these policies are.
We have the Small Business Administration to ease the proper
handling of credit in this particular and vital part of our
economy.

414
- 5A committee for State, local and federal planning has been
appointed and is now at work.
The President has asked the Office of Defense Mobilization
to redirect its stockpiling program, which will help distressed
mining areas.
The Administration is going ahead with improved planning
of its public works programs which can be available for any
emergency.
Last but far from least, the tax revision bill now before
the Senate Finance Committee will upon enactment have a
tremendously helpful effect upon the economy. While it is
basically a long-overdue tax reform bill, it can help greatly
the current economic transition. There are many business
projects around the country which are being held up pending
final decision on this revision bill. It is imperative that
the earliest possible action should be taken. When the bill
is enacted, these new or expanding businesses can go ahead
with their plans, which will result in the creation of thousands
of jobs and the vital expansion of our economy.
But the success of our economy depends — not upon a single
government act or edict — but upon all the people trying to do
a little more for themselves, trying to better themselves and
their loved ones. Government can only help provide a fertile
field in which the l6l million Americans can work. The tax
revision bill will help provide a more fertile field by giving
further relief to millions of taxpayers and stimulating the
incentive and the enterprise which we need to create more and
better jobs.
Jobs are more important than tax cuts. Jobs are what
America lives on. The entire fiscal policy of the government
is designed and operated to promote more and better jobs,
which more efficiently create the better cheaper goods, and the
expansion of industry that makes for the ever improving
standard of living we all want in America.
0O0

- 3excise taxes, whether federal cr State, hat simll he exempt trmm all taxation aew
or hereafter imposed oa the principal cr interest thereof ay say state, or any of
tae possessions at the United States, or hy amy local taxing authority. Far parposes of taxation tae amount of discount at which Treasury bills are originally
acid by the Halted States shall be considered to be iaterest. Un&sr Sections 42
aad 117 (a) (1) of the Internal Revenue Code, as aseaded ay Section 11$ of the
Revenue Act ef 19U, the assoust at discount at which bills issued hereunder are
sold shell act lie considered to accrue until such bills efeaU be sold, redeemed
or otherwise disposed of, and such bills ere excluded from consideration as capital
assets*

Accordingly, the owner of Treasury tills (other than life insurance com-

panies) issued hereunder need include ia his income tax return only the difference
between the price paid for such bills, traetaer on original issue or on subsequent
purchase, aad the s^aount actually received either upon sale or refection at
maturity, or the &aount of income or profits taxes paid by means of the bills,
during the taxable year far which tae return is aade> as ordinary gain or lose.
Treasury Department Circular So. kl&9 Revised, aad this notice, prescribe tha
terms of the Treasury bills aad govern the conditions of their issue. Copies of
the circular amy be obtained from any federal Beserre Bask or Branch.

- 2 Others then banking institutions will not be permitted te submit tenders exeept far their men account*

Tenders vill am received without deposit free incor-

porated beaks aad trust companies aad from reapoaaible aad recognised dealers ia
investment securities, headers fraa others aaat be accompanied by paymeat of 2 per*
cent mt the face amount of Treasury bills applied for, aalaaa tae tenders are accompanied hy aa eaareas guaranty of paymeat by ea incorporated beak or trust company.
Xssediately after the closing hoar, tenders vill be opeaed at the Federal
Seeerve Banks aad Breaches, following vhieh public snpgsmcement will be Bade by the
Treasury Department of tae amount aad price range of accepted bide. Those submitting
tenders will be advised of tae acceptance or rejection thereof. The Secretary of
tha Treasury expressly reserves the right to accept or reject any or all teaiere,
ia vfeele or ia part, aad his action ia any each respect shall be final. SabJeet
to these leaartatlaaa, BOaeeametitlve tenders far $200,000 or less vitfeeut stated
price from any one bidder vill be accepted la fall at tae average price (ia three
decimals) of accepted competitive bids. Settlement far accepted tenders ia accordance vita tae bids mist be tmde or completed at tae Federal Heaerve Beak aa
April 27, 195*, la cash or other isawdiately available funds, provided, however,
any Qualified depositary vill be permitted to sake paymeat by credit la its Treasury
Tax aad Loan Account for Treasury bills allotted to it far itself aad its easterners
up to say amount for vhieh It shall be qualified la excess of existiag deposits
when so notified by the Federal Beeerwe Beak of its District.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, shall not nave amy exeiaptioa, aa such, sad
loss from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or lavs amendatory or supplementary thereto. The bills shall be subject to estate, Inheritance, gift or other

m S A S E MBSIBG KgWSPAPEBS,
Friday, April 16, 195*.

u

y^g

The Treasury Department, by this public notice, invites tenders for
$1,000,000,000, or thereabouts, of 5£~day Treasury bills, to %m issued oa a discount
basis under competitive aad noncompetitive bidding as hereinafter provided. The
*

bills of this series will be designated Tax Anticipation Series, they will be
dated April 27, 195*, aad they will nature June 10, 195*. They v I U be accepted
at face value in payment of income and profits taxes dim on June 15, Iff*, and to
the extent they ere mat presented for this purpose the face amount at these bills
will be payable without interest at maturity. Taxpayers desiring to apply these
bills in paymeat of June 15, 193k, imam

aad profits taxes have the privilege of

surrendering them to any Federal Beserve Bank or Branch not more than fifteen days
before June 13, 195%, and receiving receipts therefor showing the face amount of
the bills so surrendered. These receipts may be submitted in lieu of the bills
ea or before June 15, 195%, to the Mstriet Uireetar of Internal Revenue for the
district in vhieh such taxes are payable* They will be issued ia bearer fears only,
and ia denominations of $1,000, $5,000, $10,©00, #100,000, $$00,000, and $1,000,000
(maturity value).
Tenders will be received at Federal Beserve Banks and Branches up to the
closing hour, two o*clock p.a.., Eastern Standard tisse, Wednesday, April 21, 195*>
lenders will not be received at the Treasury Department, Washington, I&ch tender
must be for as even unltiple of $1,000, and in the case of competitive tenders the
price offered oust be expressed on the basis of 100, with not more than three
deeismls, e. g., 99*925. Fractions may not be vmd*

It is wtmmA that tenders be

made oa the printed for®® aad forwarded ia the special envelopes which will be
supplied &y Federal Heeerve Banks or Branches on application therefor.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE MDHNKG NEWSPAPERS
Friday, April 16, 19$ka

E-k$8

The Treasury Department, by this public notice, invites tenders for
$1,000,000,000, or thereabouts, of $2-day Treasury bills, to be issued en a discount basis under competitive and noncompetitive bidding as hereinafter provided.
The bills of this series will be designated Tax Anticipation Series, they will be
dated April 27, 19$k9 and they will mature June 18, 19$h* They will be accepted
at face value jn payment of income and profits taxes due on June 1$, 19$k9 a nd to
the extent they are not presented for this purpose the face amount of these bills
will be payable without interest at maturity. Taxpayers desiring to apply these
bills in payment'of June 1$9 19$k9 income and profits taxes have the privilege of
surrendering them to any Federal Reserve Bank or Branch not more than fifteen days
before June 1$, 19$k9 and receiving receipts therefor showing the face amount of
the bills so surrendered* These receipts may be submitted in lieu of the bills
on or before June 1$, 19$k9 to the District Director of Internal iievenue for the
district in which such taxes are payable. They will be issued in. bearer -form only,
and .an. -denominations of §1,000, $£,0Q0, #10,000, $100,000, #^00,000, and $1,000,000
(maturity value).
Tellers will be received, at Federal Reserve Banks and Branches up to the
closiag hour, two o'clock p»m», Eastern Standard time, Wednesday, fpril 21, 19$ka
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 then 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 Eanks_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 amy
or all tenders, in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, noncompet-Ltive tenders for §200,000 or
less without stated price from any one bidder will be accepted in full at the

-. 2 -

average price (in three decimals) of accepted competitive'bids« Settlement for
accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on April 27, 19$k9 in cash or other immediately available
funds, provided, however, any qualified depositary will be permitted to make '
payment by credit in its Treasury Tax and Loan Account for Treasury bills allotted
to it for itself and its customers up to any amount for which it shall be qualified
in excess of existing deposits when so notified by the Federal Reserve Bank of its
District.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but shall be exempt from all taxation now
or hereafter imposed on the principal or interest thereof by any State, or any of
the possessions of the United States, or by any local taxing authoritye 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 \±2
and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the
Revenue Act of 19Ul, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be sold, redeemed
or otherwise disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference
between the price paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or redemption at
maturity, or the amount of income or profits taxes paid by means of the bills,
during the taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Ul8, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue9 Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.

oOo

mu.ASi wmxm wxtntau,

- 2-

P

IS?

the Treasury Department a m m a a a d last «v*xiii^ that the taaiars for •1,^0(^CX)0,000,
or thereabouts, cf c^^ Treasury bills to be dated April 22 and to aetata *mly at,
195k, aalah uer® afta^ed #a jfe#*a 15* mere mpmmad at to Federal Baser?* Banks
If*
the stalls of this lean® are aa follow
„# . A
^
,* . .
total eaolla* for - $2,3A,WS,000
fetal aaeaated
- 1,501,3$*, 300

.^, Aether inter*-b# ss-1*
'*v - i««
{laalaiM' fe90»76»» 000 entered aa a
. noii&osaaetitlve heals an ^ aeaeatee; ia
•
fall at the average price shown below)
Average pria»
~ 99.7W Equivftlect' rate of discount am%wm* JUflftfl m
competitive bids j *... (is&aptiag am tmmdm* mt ^00,000) %_
gi#
Loir

- ^9*Ty Bq,uiTald3st rate of discount approx. 1.017$ per
- 99*739
•
• •
»
,« '- i*fiiu • ." «
bid for at the low price aaa

(ft»

Fadsrsl

fatal

total

A.?aaXi*Ml f o r

A fikM/am4tj0HAt

Boston

eeW^OOO
32,1*$I*GQO
>lfd7a#00Q
ttffliOOO
«U2, ^0,000
iii.lll»000

Failadalp^ia
Glavelaad
Atlanta
Chicago
St, l*ai*

S^MMOQ

10 f S^,OOQ
S2,f$SfG00
50,167,000

Kaaeas Oity
Dallas
Sam ffreaciaae

torn

.'

. ^t2Si222
#a,j%a7Mo&

* ££S
miha^mo

%k9m9m
^,m,ooo
38,7^0,000
22£,7€&,Q00
2ii,9&),000

M5*#M>
a7,l£§,000
kS,087,000
nsStfaOQO

%i*$m.939k9om

TREASURY DEPARTMENT
WASHINGTON, D.C.

42i
RELEASE MORNING NEWSPAPERS,
Tuesday, April 20, 1954,

H-459

The Treasury Department announced last evening that the tenders
fcr $1,500,000-000, or thereabouts., of 91-day Treasury bills to be
dated Apr!]. 22'and to mature July 22, 1954., which were offered on
April 1.5, were opened at the Federal Reserve Banks on April 19.
The details of this issue are as follows:
Total applied for - $2,364,475,000
Total accepted
- 1,501,394,000 vincludes $230,763,000
entered on a noncompetitive
ba.sis and accepted in full
at the average price shown
below)
Average price
- 99.740/ Equivalent rate of discount approx.
1.027$ per annum
Range of accepted competitive bids? (Excepting one tender of
$200,000)
99.743
Equivalent
rate of discount approx.
High
1,017$ per annum
Low
- 99.739 Equivalent rate of discount approx.
1»033$ per annum
(40 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

$
14,233,000
1,732,977,000
32,451,000
31,874,000
9,971,000
42,940,000
25^,151,000
31,9^6,000
10,852,000
52,938,000
50,167,000
101,955,000

$

$2,364,475,000

$1,501,394,000

0O0

13,933,000
984,752,000
14,351,000
24,914,000
9,971,000
38,760.000
216,701,000
24,96C,000
8,392,000
47^198,000
45,087,000
71,875,000

- 3 -

but shall be ex3i.pt froa all aoxation novr or hereafter iioposod on the principa
or interest thereof by any State, or any of the possessions of the Uniaed Stata
or hy any local taxing authority. For purposes of taxation the aiaount of disco-ant at -.Thich. Treasury bills are originally sold by the United States shall
considered to be interest. Under Sections 42 and 117 (a) (1) cf the Internal
Revenue Cede, as areended by Section ±1$ of the Revenue Act of 1941, the amount
of discount at vhieh 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 fro:., consideration as capital assets, accordingly,
the Q-.m^r 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, "bother on oriyonal Issue or on subsequent purchase,
and thu aaount actually received either upon sal- or redemption at ...aturity
during the taxable year for Trhich the return is iaadc, as ordinary gain cr loss.
Revised
Treasury Department Circular No. Lil3,/aaxacssa±i!±, and this notice, prescribe the terros of the Treasury bills and govern the conditions of their
issue. Copies of the circular nay be obtained fro:; 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 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
$200,000 or less without stated price from any one bidder will be accepted
in full at the average price (in three decimals) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be made or
completed at the Federal Reserve Bank on ___ April 29, 19$k > -*-n

casil or

other immediately available funds or in a like face amount of Treasury bills
maturing April 29* 19$k 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,

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, April 22, 1954
The Treasury Department, by this public notice, invites tenders for
$ 1«500*000f000 3

or

thereabouts, of 91 -day Treasury bills, for cash and

in exchange for Treasury bills maturing

April 29, 1954

3 i n the amount of

— —wr~
$1,500,3133 000
, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated April 29, 1954 3 and will mature July 29. 1954 3 ^n 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 t>.m., Eastern/atfeacKsisrat time, Monday, April 26, 1954
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust com/oanies and from responsible and recognized
dealers in investment securities. Tenders from others must be accompanied by

424

TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE MORNING NEWSPAPERS, . Thursday, April 22, 1954.

H-40U

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 April 29, 1954,
in the amount of $1,500,313*000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated April 29, 1954,
and will mature July 29, 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 Daylight Saving time,
Monday, April 26, 1954.
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 at
without
stated price
price from
any one
bidder will
be
accepted
in full
the average
(in three
decimals)
of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bid3 must be made or completed at the Federal Reserve Bank
on April 29, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 29, 1954.
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 3ale 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 aad 117 (a) (3r) 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

RELEASE MQftHItfG ME*SPAPE8S,
Thursday, April 22, 195k.
The fremsMry Pepartmeat announced last evening that the tenders for
§1,000,000,000, or thereabout®, of Tm toUaipatioa Series 5t-day treaavry bills to
he dated April 27 and to statwe 4wm 18, 1954* vhieh were, ottered on April 16, were
opened at the Federal Reserve Banks on April 21.
The details of this issue are as follows:
total applied for - $2,986,630,000
total accepted
- 1,000,863,000

Average prim

(includes $107,595,000 entered on a
noneoiapetitivefeasieand accepted in
full at the average price shown below)
- 99.895/ SQuivalejst. rate of dieeowit appro*. 0.726* per annum

Range of accepted competitive bides
High - 99.903 S^mivalemt rate of discount approx, 0*672* per annum
ym
- 99.892
*
"
"
*
*
0.743*
(21 percent of the »onnt feid for at the low priee was accepted)
Federal Reserve
District

total
Applied for

Boston t 143,996,000 $ 43,802,000
Mm lork
1,426,38©,OQ0
Hiiladelphia
124,736,000
Cleveland
166,585,000
HehBioad
100,162,000
Atlanta
11,344,000
Chicago
331,602,000
St. Louis
67,6?S,000
Minneapolis
56,086,000
lamias City
99,645,000
Ds&lms
$9,370,000
8m Frtmisco
289,234,000
total $2,966,820,000 $1,000,083,000

Total
Accepted
281,165,000
23,600,000
45,320,000
34,176,000
39,444,000
257,61*0,000
33,347,000
30,478,000
47,672,000
ti4,5S5,000
119,664,000

«

»

TREASURY DEPARTMENT
WASHINGTON, D.
RELEASE MORNING NEWSPAPERS,
Thursday, April 22, 1954.

426
H-461

The Treasury Department announced last evening that the tenders
for $1,000,000,000, or thereabouts, of Tax Anticipation Series
52-day Treasury bills to be dated April 27 and to mature June 18,
1954, which were offered on April 16, were opened at the Federal
Reserve Banks on April 21.
The details of this issue are as follows:
Total applied for-$2,936,820,000
Total accepted
- 1,000,883,000 (includes $207,595,000 entered
on a noncompetitive basis and
accepted in full at the average
price shown below)
Average price
- 99.895/ Equivalent rate of discount approx.
0.726$ per annum
Range of accepted competitive bids:
High - 99.903 Equivalent rate of discount approx.
0.672$ per annum
Low .
- 99.892 Equivalent rate of discount approx.
0.748$ per annum
(21 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
Applied for
Boston $ 143,996,000 $ 43,302,000
New York
1,428,380,000
Philadelphia
124,738,000
Cleveland
166,585,000
Richmond
108,162,000
Atlanta
81,344,000
Chicago
331,602,000
St. Louis
67,678,000
Minneapolis
56,086,000
Kansas City
99,645,000
Dallas
89,370,000
San Francisco
289,234,000
TOTAL $2,986,820,000 $1,000,883,000
0O0

Accepted
281,165,000
23,600,000
45,320,000
34,176,000
39,444,000
257,640,000 .
33,347,000
30,478,000
47,672,000
44,555,000
119,68^.000

- 4EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 31, 1953 «*& 3-952 - Continued
(Amounts in thousands of dollars)
!953
Recoveries, transfers from valuation
reserves and profits:
On securities:
Recoveries
$
Transfers from valuation reserves..
Profits on securities sold or
redeemed
On loans:
Recoveries
Transfers from valuation reserves..
All other

!

7,876
15,226

1952

31^1952

6,884
14,844

+992
+382

23,459

20,l65

+3,294

l6,502
5,328
13,626

11,6^4
l4,9%
12,604

+4,848
-9,621
+1,022

82,017

81,100

+917

96,676
31,454

61,233
16,739

15,494
77,164
45,763

11,349
83,978
29,982

+4,l45
-6,8l4
+15,781

266,551

203,281

+63,270

1,038,894

966,572

+72,322

446,687
18,920
465,607

387,963
17,128
405,091

+58,724
+1,792
+60,516

400
258,663
259»O63 '

-68
+16,221
+16,153

TOTAL RECOVERIES, TRANSFERS MOM
VALUATION RESERVES AND PROFITS...

$

|

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, AID
TRANSFERS TO VALUATION RESERVES..
PROFITS BEFORE INCOME TAXES
Taxes on net income:
Federal
State
TOTAL TAXES ON NET INCOME

NET PROFITS BEFORE DIVIDENDS 573,287 56l,48l +11,806~
Cash dividends declared;
On preferred stock
332
On common stock
274,884
TOTAL CASH DIVIDENDS DECLARED....
275,2l6

+

35,443
+14,715

Number of banks 2/ 4,864 4,9l6 -52
Rate of net profits; Percent Percent Percent
To capital funds
Rate of cash dividends:
To capital funds

7.92

8.17

-.25

3.SO

3.77

+.03

1/ Averages of amounts reported for the June and December call dates in year indica
and the December call date in the previous year.
2/ At end of period.

- 3 EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FOR YEARS
ENDED DECEMBER 31, 1953 and 1952
(Amounts in thousands of dollars)
1953
Capital stock, par value: 1/
Preferred
Common
TOTAL CAPITAL STOCK
Capital funds 1/
! •

1

1 1 1

1

!

•

$

!

Earnings.from current operations:
Interest and dividends:
On U. S. Government obligations
On other securities....
Interest and discount on loans
Service charges on deposit accounts
Other service charges, commissions, fees,
and collection and exchange charges
Trust department
Other current earnings
TOTAL EARNINGS FROM CURRENT
OPERATIONS....

1

1

5.512
2,253,234
2,263,746
7,235,820

.

1

1

;

Change since
1952

1952

$
6,862
2,171.026
2,177.333
6,875,134
1

. .

1

-1.350
+87,208
+85,858
+360,686
11

1

694,815
176,433
1,751,59b
150,490

633,688
164,228
1,536,789
136,272

+6l,127
+12,205
+214,807
+14,218

88,993
85,990
119,619

77,772
80,627
121,191

+11,221
+5»363
-1,572

3,067,936

2,750,567

+317,369

27L744
535.618

+26,377
+59.973

14,545

+1,549

260,995
78,646

+38,069
+5,871

Current operating expenses:
Salaries and wages:
Officers
298,121
Employees other than officers
595.596
Fees paid to directors and members of
executive, discount, and advisory
committees
16,094
Interest on time deposits (including
savings deposits)
299,064
Taxes other than on net income.............
84,517
Recurring depreciation on "banking house,
furniture and fixtures
47,388
Other current operating expenses
503,723
TOTAL CURRENT OPERATING EXPENSES
1,844,5O8

42,205
458,061
1,66l, Sl4

+5,133
+45,667
+182,694

NET EARNINGS FROM CURRENT OPERATIONS

1,088,753

+134,675

1,223,428

-

2

Cash dividends declared on common and preferred stock in 1953 totaled
$275,000,000 in comparison with $259,000,000 in the previous year. The rate
of cash dividends was 3»30 percent of average capital funds. The cash dividends
in 1953

were

48 percent of net profits available for the year* The remaining

52 percent of net profits, or $298,000,000, was retained by the banks in
their capital funds*
On December 31, 1953* there were 4,864 national banks in operation, as
compared to 4,9l6 at the end of 1952,

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNIN© NEWSPAPERS, j H-462
Wednesday, April 28, 1954.

I

National banks in the United States and possessions had net profits before
dividends for the year 1953 ot $573,000,000 which amounts to 7*92 percent of

average capital funds, Comptroller of the Currency Ray M. Gidney announced today.
Net profits for the previous year were $561,000,000, or 8.17 percent of average
capital funds*
Net earnings from operations for the calendar year 1953 at $1,223,000,000
showed an increase of $135,000,000 over the year 1952. Adding to net earnings
from operations profits on securities sold of $23,000,000 and recoveries on
loans and investments, etc. (including adjustments in valuation reserves) of
$59,000,000 and deducting losses and charge-offs (including current additions
to valuation reserves) of $266,000,000 and taxes on net income of $466,000,000,
the net profits of the banks before dividends for the year 1953*

as

noted above,

were $12,000,000 more than for the year 1952.
Gross earnings were $3,068,000,000, an increase of $317,000,000 over 1952.
Principal items of operating earnings in 1953

}aere

$1,752,000,000 from interest

and discount on loans, an increase of $215,000,000 over 1952, and $695,000,000 j

from interest on United States Government obligations, an increase of $61,000,000
Other principal operating earnings were $176,000,000 from interest and dividends
on securities other than United States Government, and $150,000,000 from service
charges on deposit accounts. Operating expenses, excluding taxes on net income,
were $1,845,000,000 as against $1,662,000,000 in 1952. Principal operating
expenses were $910,000,000 for salaries and wages of officers and employees and
fees paid to directors, an increase of $88,000,000 over 1952, and $299,000,000
expended for interest on time deposits, an increase of $38,000,000.

43 i
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE MORNING NEWSPAPERS, H-462
Wednesday, April 28, 1954.
National banks in the United States and possessions had net profits before
dividends for the year 1953 of $573,000,000 which amounts to 7.92 percent of
average capital funds, Comptroller of the Currency Ray M. Gidney announced today*
Net profits for the previous year were $561,000,000, or 8.17 percent of average
capital funds.
Net earnings from operations for the calendar year 1953 of $1,223,000,000
showed an increase of $135,000,000 over the year 1952. Adding to net earnings
from operations profits on securities sold of $23,000,000 and recoveries on
loans and investments, etc. (including adjustments in valuation reserves) of
$59,000,000 and deducting losses and charge-offs (including current additions
to valuation reserves) of $266,000,000 and taxes on net income of $466,000,000,
the net profits of the banks before dividends for the year 1953»

as

noted above,

were $12,000,000 more than for the year 1952.
Gross earnings were $3,068,000,000, an increase of $317,000,000 over 1952.
Principal items of operating earnings in 1953 were $1,752,000,000 from interest
and discount on loans, an increase of $215,000,000 over 1952, and $695,000,000

from interest on United States Government obligations, an increase of $61,000,000*
Other principal operating earnings wore $176,000,000 from interest and dividend*
on securities other than United States Government, and $150,000,000 from service
charges on deposit accounts. Operating expenses, excluding taxes on net income,
were $1,845,000,000 as against $1,662,000,000 in 1952. Principal operating
expenses were $910,000,000 for salaries and wa^es of officers and employees and
fees paid to directors, an increase of $88,000,000 over 1952, and $299,000,000
expended for interest on time deposits, on increase of $38,000,000.

432
- 2 Cash dividends declared on common and preferred stock in 1953 totaled
$275,000,000 in comparison with $259,000,000 in the previous year. The rate
of cash dividends was 3.80 percent of average capital funds. The cash dividends
in 1953 **** 48 percent of net profits available for the year. The remaining
52 percent of net profits, or $298,000,000, was retained by the banks in
their capital funds.
On December 31, 1953» there were 4,864 national banks in operation, as
compared to 4,9l6 at the end of 1952.

433
- 3 EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BAIiaS FOR Y£ARS
ENDED DECEMBER 31, 1953 &&* i952
(Amounts in thousands of dollars)
1953
Capital stock, par value: 1/
Preferred
Common
TOTAL CAPITAL STOCK
Capital funds 1/

$

:

1952

Change since
1952

5.512
2,258,234
2,263,746

$
6,862
2,171.026
2,177.888

-1.350
+37,208
+85,858

7.235.820

6.875,134

+360,686

633,688
164,228
1,536.789
136,272

+61,127
+12,205
+214,807
+14,218

77.772
80,627
121,191

+11,221
+5.363
-1.572

2,750.567

+317.369

298,121
595.596

271.744
535,618

+26.377
+59*978

16,094

14,545

+1,549

Earnings from current operations:
Interest and dividends:
On U. S. Government obligations
694,815
On other securities
176,433
Interest and discount on loans
1,751,596
Service charges on deposit accounts
150,490
Other service charges, commissions, fees,
and collection and exchange charges.,....
8S.993
Trust department
85,990
Other current earnings
119.619
TOTAL EARNINGS FROM CURRENT
OPERATIONS
3.067.936
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

299,064
34,517

260,995
78,646

47,388
503,728
1,844,508

42,205
458,06l
l,66l,8l4

+5.183
+4§, 667
+182,694

NET EARNINGS FROM CURRENT OPERATIONS

1,223,428

1,088,753

+134,675

.

+38,069
+5,871

- 4 -

EARNINGS, EXPENSES, AND DIVIDENDS OF NATIONAL BANKS FUR YEARS
ENDED DECEMBER 31, 1953 ^
1952 - Continued
(Amounts in thousands of dollars) ^_______
^

;

Recoveries, transfers from valuation
reserves and profits:
On securities:
Recoveries
$
Transfers from valuation reserves..
Profits on securities sold or
redeemed
On loans:
Recoveries.
Transfers from valuation reserves..
All other
TOTAL RECOVERIES, TRANSFERS FROM
VALUATION RESERVES AND PROFITS...

1953

7,876
15,226

;

1952

$

»
Change
; since 1952

6,884
14,844

+992
+332

23,459

20,165

+3,294

16,502
5.328
13,626

11,654
14.9&9
12,604

+4,848
-9,621
+1,022

82,017

81,100

+917

96,676
31,454

61,233
16,739

+35,443
+l4,715

15,494
77.164
45,763

11,349
83,978
29,932

+4,l45
-6,8l4
+15,731

266,551

203,281

+63,270

1,038,894

966,572

+72,322

446,687
13,920
4*65,607

337,963
17,128
405,091

+58,724
+1, 792
+60,516

400
258,663
259»O63

-68
+lb,221
+l6,153

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..
PROFITS BEFORE INCOME TAXES
Taxes on net income;
Federal
State
TOTAL TAXES ON NET INCOME

NET PROFITS BEFORE DIVIDENDS 573.237 561,481 +11,806
Cash dividends declared;
On preferred stock
332
On common stock
274,884
TOTAL CASH DIVIDENDS DECLARED....
275.216
Number of banks 2/ 4,864 4,9l6 I52
Rate of net profits: Percent Percent Percent "
To capital funds
7„92
Rate of cash dividends;
To capital funds
3.80

8.17

-.25

3.77

+.03

1/ Averages of amounts reported for the June and December call dates in year indicated
and the December call date in the previous year.
2/ At end of period.

H E H namro mmmmm,

(

I'

t g M d y , .iprtl 27, im*
Tim Treasury Depar&a&nt announced last evening that tha tenders for $1,500,0Q0fO0G,
oar thereabouts, of ?l-d*y Treasury bills to be dated April 2? and to aiature m? %99

1954, which were offmmd &n April. 2?., were opened at the Federal Reserve Banks on April
The details of mm imam am am folios:

Tmtml $m&temtmr -(fel^^ft*
fatal accepted

- l i ^l # SC& i O0O

(include* itlS,P?S,®» mmtmrmd m a

full at the average price shown below)
Average price
~ 99.776 Equivalent rate of dimmmmt approx. 0.836^ per annui
Range of accepted eostjpetitive bidat
Hi# - 99.77^ Equivalent rate ^f discount approx* 0.876^ par

Urn

~ mrt$

•

» «

•

•

0#$^r| *

(67 percent of the amount tM for at the 1mm price ms

fttotgiat r

Ajplied for

Accepted

%mtm I $7,601,000 I 37*466,000

Sew umk
im&mmmM

i9m9%9i9ooo
43,660,000

1,105,310^000
awi^ooo

mmrnlmmd
Richaord
Atlanta

68,203,000
12,34i,'300
p
,000
23,355,000

1^,813,000
8,641,000
123,942,000
13,855,000

ma i^m

$i^m$mo

$39im9ooQ

m^mmapoUm
Kansas City
Dallas

13,340,000
62,256,000
36,491,000

10,640,000
36,566,000
19,055,000

Tmio* m,km9$%i9®m ii,5og,§a4,ooo

«

TREASURY DEPARTMENT
WASHINGTON, D.C. N ^ j ^ ^
RELEASE MORNING NEWSPAPERS,
Tuesday,, April 27, 1954.

H-463

The Treasury Department announced last evening that the tenders
for $1,500,000,000, or thereabouts, of 91-day Treasury bills to be
dated April 29 and to mature July 29, 1954, which were offered on
April 22, were opened at the Federal Reserve Banks on April 26.
The details of this issue are as follows:
Total applied for - $2,493,521,000
Total accepted
- 1,502,504,000 (includes $215,978,000
entered on a noncompetitive
basis and accepted in full
at the average price shown
below)
Average price
- 99.776 Equivalent rate of discount approx,
0.886$ per annum
Range of accepted competitive bids:
High - 99.778 Equivalent rate of discount approx,
0.878$ per annum
Low
- 99.775 Equivalent rate of discount approx.
0.890$ per annum
(67 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District

Applied for

Boston $ 57,601,000 $ 37,466,000
New York
1,807,891,000
Philadelphia
43,660,000
Cleveland
68,203,000
Richmond
12,341,000
Atlanta
23,355,000
Chicago
.241,477,000
St. Louis
31,807,000
Minneapolis
13,840,000
Kansas City
62,256,000
Dallas
36,491,000
San Francisco
94,599,000
TOTAL $2,493,521,000 $1,502,504,000
0O0

Accepted
1,105,144,000
24,330,000
47,813,000
8,641,000
13,855,000
123,942,000
23,780 000
10,640*000
36,566 000
19,055^000
51.26s.000

2 -

Economic Club, Detroit Athletic Club, Public delations Society of America
and the Detroit Chamber of Commerce.
Commenting on Mr. Travis1 acceptance, Secretary Bimphrey -wrote him:
"We at the Treasury are enthusiastic, as our Savings Bonds Program is
important to us in our determination to achieve and maintain a sound and
honest dollar. Your broad experience in banking as well as local and
national circles will contribute heavily to this determination."

#

j

Secretary Humphrey today announced the appointment of Noble D. Travis,
Vice-President of the Detroit Trust Company, as State Chairman of the U. S.
Savings Bonds Advisory Committee for Michigan.
Mr. Noble succeeds Frank N. Isbey who resigned in February after

serving as Michigan State Chairman since the inception of the .savings bonds
program in May, 194l*
The new State Chairman, who will direct volunteer activities in
Michigan during the Treasury's "billion more in ,54" savings bonds campaign,
has been associated with the Detroit Tjust Company since 1929 and was
elected Vice-President in 1945 with his principal responsibility the development of business throughout the state of Michigan. He served for three
years as Chairman of the Public Relations Committee of the Michigan Bankers
Association during which time he set up a program which has been adopted
by many banking associations throughout the country.
A graduate of the University of Michigan Law School, Mr. Travis is
active in many educational, civic and charitable affairs. In 1951, he

served as Chairman of the Special Events Committee of Detroit's 250th Birthday Festival. He was Chairman of the Finance Division of the Detroit
Community Chest for five years, and for three years was President of the
Family Service Society of which he is still a director. He is a member of
the Board of Directors and Treasurer of both the International Institute of
Detroit and Junior Achievement, Inc» He served for several years on the
Committee on Cooperation with community leaders of the National Association
of Manufacturers. He is an active member of many Detroit groups including
Detroit Committee on Foreign Relations, Church-Industry Group, Adcraft dub

RELEASE MORNING NEWSPAPERS,
Friday, April 30, 1954. '

H-464

Secretary Humphrey today announced the appointment of
Noble D. Travis, Vice-President of the Detroit Trust Company, as
State Chairman of the U, S. Savings Bonds Advisory Committee for
Michigan.
Mr.Travis succeeds Frank N, Isbey who resigned in February
after serving as Michigan State Chairman since the inception of
the savings bonds program in May, 1941.
The new State Chairman, who will direct volunteer activities
in Michigan during the Treasury's "billion more in '54" savings
bonds campaign, has been associated with the Detroit Trust
Company since 1929 and was elected Vice-President in 1945 with
his principal responsibility the development of business throughout the state of Michigan. He served for three years as Chairman
of the Public Relations Committee of the Michigan Bankers
Association during which time he set up a program which has been
adopted by many banking associations throughout the country.
A graduate of the University of Michigan Law School,
Mr. Travis is active in many educational, civic and charitable
affairs. In 1951, he served as Chairman of the Special Events
Committee of Detroit's 250th Birthday Festival. He was Chairman
of the Finance Division of the Detroit Community Chest for five
years, and for three years was President of the Family Service
Society of which he is still a director. He is a member of
the Board of Directors and Treasurer of both the International
Institute of Detroit and Junior Achievement, Inc. He served for
several years on the Committee on Cooperation with community
leaders of the National Association of Manufacturers. He is an
active member of many Detroit groups including Detroit Committee
on Foreign Relations, Church-Industry Group, Adcraft Club,
Economic Club, Detroit Athletic Club, Public Relations Society of
America and the Detroit Chamber of Commerce.
Commenting on Mr, Travis' acceptance, Secretary Humphrey wrot
him: "We at the Treasury are enthusiastic, as our Savings Bonds
Program is important to us in our determination to achieve and
maintain a sound and honest dollar. Your broad experience in
oOo
banking as well as local and national
circles will contribute
heavily to this determination."

- 3m^mmmmmmtm

but shall bo exempt fron 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 Ststos 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.
Revised
Treasury Department Circular No. 418, SHtxxxzss^si, 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 incorporated
bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, f ollowir.g 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 wholj 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 May 6, 1954 , in cash or
other immediately available funds or in a like face amount of Treasury bills
maturing May 6, 1954 . 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 so..cial treatment, as such, unler 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,

imBmn8ta&B

TREASURY EEPAETEENT
.iashington

|f-aH
-'

/1\ la -J

5R RELEASE, IICRalaG yETySPAFERS,
Thursday, April 29, 1954
j. e i i . j-'-i

The Treasury Department, by this public notice, invites tenders for
y 1,500,000,000 , or thereabouts, of 91 -day Treasury bills, for cash and
jr\ -\—————

- - _Ln_l

jBH^K

9U9B

in exchange for Treasury bills maturing

May 6, 1954

, in the amount of

Q 1,500,318,OOP , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated May 6, 195^ , and will mature August 5, 195^- , ..hen the face

wmh
>u

v.__

^a%

>e payable without interest. The}- will be issued in bearer form only,

and in denominations of ^1,000, §5,000, iy>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/sisxiriarri. time, Monday, May 3, 1954
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 hy 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

443
>

WASHINGTON, D.C.
RELEASE MORNING NEWSPAPERS,
Thursday, April 29, 1954.

H-465

The Treasury Department, by this public notice, invitee tenders
for $ 1,500*000,000,or thereabouts, of 91-day Treasury bills, for
cash and in exchange for Treasury bills maturing May 6, 1954,
in the amount of $1,500,318,000, to be issued on a discount basis
under competitive and non-competitive bidding as hereinafter
provided. The bills of this series will be dated May b, 1954
and will mature August 5, 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 Daylight Saving time,
Monday, May 3* 1954.
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 reoeived a
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 oompany.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branohes, following whloh publio 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 respeot shall be
final. Subjeot 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 acoepted

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on May 6, 1954,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing May 6, 1954.
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) (it) of the Internal Revenue
Code, as ajnended 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, revised, and this
notice, prescribe the terms of the
Treasury bills and govern the
oOo
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

- 2Accrued interest on the securities surrendered in exchange
will be credited to their respective maturity or call dates, and
accrued interest on the new securities from May 17, 1954, will
be charged to those same dates.
The exchange subscription books for both issues, which
will open on Wednesday, May 5, will close at the close of
business Friday,May 7* Any exchange subscription addressed
to a Federal Reserve Bank or branch or the Treasury Department,
placed in the mail before midnight May 7, will be considered as
timely.

oOo

- 2 Accrued interest on the securities surrendered in exchange
will be credited to their respective maturity or call dates, and
accrued interest on the new securities from May 17, 1954, will
be charged to those same dates.
The exchange subscription books for both issues, which
will_open on ¥sd»^«*ov M ~~ *"
""
'"
"
~**
EXCHANGE OFFERING
Subscription books will be opened on May 5 for the following.:
(a) A 1-1/8 percent Certificate of Indebtedness dated May 17,
1954, to mature May 17, 1955 to be offered in exchange foi
1. $1,743,115,500 of outstanding 2 percent Bonds
of 1952-54, maturing June 15, 1954
2
* $373,161,500 of outstanding 2-1/4 percent Bonds
of 1952-55 called for redemption on June 15,1954
3. $311,551,150 of outstanding 2-1/4 percent Bonds
of 1954-56 called for redemption on June. 15,1954
/
(b) M^c \ fP percent Certificate of Indebtedness, dated May 17,
1954, to mature May 17, 1955 or -flfcfe, 1 l/0 percent Treasury
Note, dated May 17, 1954, to mature . >*
lSf% to be
issued in exchange for:
Va..t
^—
$4,858,173,000 of outstanding 2-5/8 percent
Certificates of Indebtedness, Series B of 1954,
maturing June 1, 1954.

- 9

Friday, April 30,* 1954.

'_

H-

H ^h

Secretary of the Treasury Humphrey announced today the
following offerings of Treasury Securities:
CASH OFFERING
On Tuesday, May 4, the books will be opened for
subscriptions to an issue of $2,000,000,000, or the]
of>
^y®@*x? -at
percent Treasury Notes to be
^y^ May 17, 1954, and to mature f*\,.r\**,irj i4-~f iQf<?
l
v
^\ 4JS The books for cash subscription to this offering will be
£•? ^/v^ °P e n only one day. Cash subseriptions^placed in the mail
t\
. before ID oTclock midnight, May 4, will be considered as having
I ly
been entered before the close of the subscription books.
%
Subscriptions may be paid for by credit in Treasury Tax and
Loan accounts. Subscriptions from commercial banks, which for
this purpose are defined as banks accepting demand deposits,
for their own account, will be received without deposit, but
will be restricted in each case to an amount not exceeding
one-half the combined capital, surplus, and undivided profits
of the subscribing bank. A payment of 10 percent of the amount
of notes subscribed for, not subject to withdrawal until after
allotment, must be made on all other subscriptions. All subscriptions for amounts up to and including $10,000 will be
allotted in full, and larger subscriptions will be allotted
on an equal percentage basis, but not less than $10,000 on any
one subscription.
Commercial banks and other lenders' are requested to refrain
from making unsecured roans or loans collateralized in whole or
in part by the notes subscribed for, to cover the 10 percent
deposits required to be paid when subscriptions are entered.
A certification by the subscribing bank that no such loan has
been made will be required on each subscription entered by it
for account of its customers. A certification that the bank
has no beneficial interest in its customers* subscriptions, and
that no customers have any beneficial interest in the bank»s own
subscription, will also be required.

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, April 30, 1954.

H-466

Secretary of the Treasury Humphrey announced today the
following offerings of Treasury Securities:
CASH OFFERING
On Tuesday, May 4, the books will be opened for cash subscriptions to an issue of $2,000,000,000, or thereabouts, of
4-year and 9 months' 1-7/8 percent Treasury Notes to be dated
May 17, 1954, and to mature February 15, 1959*
The books- for cash subscription to this offering will be open
only one day. Cash subscriptions addressed to a Federal Reserve
Bank or branch or the Treasury Department placed in the mail
before midnight, May 4, will be considered as having been entered
before the close of the subscription books.
Subscriptions may be paid for by credit in Treasury Tax and
Loan accounts. Subscriptions from commercial banks, which for
this purpose are defined as banks accepting demand deposits,
for their own account, will be received without deposit, but will
be restricted in each case to an amount not exceeding one-half
the combined capital, surplus, and undivided profits of the
subscribing bank. A payment of 10 percent of the amount of notes
subscribed for, not subject to withdrawal until after allotment,
must be made on all other subscriptions. All subscriptions for
amounts up to and including $10,000 will be allotted in full, and
larger subscriptions will be allotted on an equal percentage
basis, but not less than $10,000 on any one subscription.
Commercial banks and other lenders are requested to refrain
from making unsecured loans or loans collateralized in whole or
in part by the notes subscribed for, to cover the 10 percent
deposits required to be paid when subscriptions are entered.
A certification by the subscribing bank that no such loan has
been made will be required on each subscription entered by it
for account of its customers. A certification that the bank has
no beneficial interest in its customers' subscriptions, and that
no customers have any beneficial interest in the bank's own
subscription, will also be required.

- 2EXCHANGE OFFERING
Subscription books will be opened on May 5 for the following
(a) A 1-1/8 percent Certificate of Indebtedness
dated May 17, 1954, to mature May 17, 1955
to be offered in exchange for:
1. $1,743,115,500 of outstanding
2 percent Bonds of 1952-54,
maturing June 15, 1954
2. $373,161,500 of outstanding
2-1/4 percent Bonds of
i952-55 called for redemption
on June 15, 1954
3. $311,551,150 of outstanding
2-1/4 percent Bonds of
1954-56 called for redemption
on June 15, 1954
(b) The 1-1/8 percent Certificate of Indebtedness
dated May 17, 1954, to mature May 17, 1955
or the 1-7/8 percent Treasury Note, dated
May 17, 1954, to mature February 15, 1959,
to be issued in exchange for:
$4,858,173,000 of outstanding
2-5/8 percent Certificates of
Indebtedness, Series B of 1954,
maturing June 1, 1954.
Accrued interest on the securities surrendered in exchange
will be credited to their respective maturity or call dates, and
accrued interest on the new securities from Mav 17. 19*54 will
v
be charged to those same dates.
'
The exchange subscription books for both issues, which
will open on Wednesday, May 5, will close at the close of
business Friday, May 7. Any exchange subscription addressed
to a Federal Reserve Bank or Branch or the Treasury Department
placed m the mail before midnight May 7, will be considered as
aimely,

0O0

TCIASUW DE-HK** 3 0

in***

Treas.
HJ
10
.A13P4
v.99
Treas
HJ
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U.S. Treasury Dept,
Press Releases

U.S. TreasurxJteE^-