ar treasury 1941

ANNUAL REPORT OF THE SECRETARY OF THE TREASURY 2!il STATE OF THE FINANCES FOR FISCAL YEAR ENDED JUNE 30,1941,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

( .


ANNUAL REPORT OF THE

SECRETARY OF THE TREASURY ON

THE STATE OF THE

< T ' ^ , ^ -

FOR THE FISCALri^EAR

ENDED JUNE 30

1941::.^

'iM

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1942


) ^

TREASURY DEPARTMENT

DOCUMENT N O . 3114

Secretary


CONTENTS

Budget results: ^^se Receipts in general and special accounts. _. . 1 Expenditures from general and special accounts 7 Deficit in general and special accounts 1 . . . 11

Receipts and expenditures in trust accounts and checking accounts of corporations and credit agencies 11

The public debt . . _. 17 Treasury bonds and Treasury notes ._ 20

^ Treasury bills . . 21 United States savings bonds . . 21 Adjusted service bonds ^ ' - . 26 Depositary bonds 27 Special issues 27 Cumulative sinking fund 28 Amendment to the Second Liberty Bond Act : . ._: 28

Securities guaranteed by the United States 30 Estimated absorption, by classes of holders, of the increase in securities

issued or guaranteed by the United States during the fiscal year 1941 and the estimated ownership of such securities on June 30, 1941 33

Commercial banks ; .. . - . . . 40 Mutual savings banks and insurance companies 41 Federal Reserve Banks and United States Government agencies and

trust funds . 42 All other investors. . ;-. 43

Market movements in Government securities._ . . 43 Termination of exemption from Federal taxation of the interest on future

issues of United States Government securities 46 General Fund . . . 48 Securities owned by the United States and proprietary interest in govern-

mental corporations and credit agencies: Securities owned 49 Proprietary interest in governmental corporations and credit agencies. 51

Monetary developments: Stabilization fund developments . , 52 Monetary legislation... ^ ^ 53 Foreign exchange 54

Revenue legislation . 55 Second Revenue Act of 1940 55 Excess Profits Tax Amendments of 1941 59 Public Debt Act of 1941 ., 60 Other revenue legislation 60

National defense activities i 61 Regulation and control of vessels 62 Control of foreign vessels . 62 Transfer of certain personnel of the Coast Guard to operate as a part

of the Navy, and other developments in the Coast Guard in con-nection with national defense--- 63

Strategic and critical materials 64 Foreign funds control 66

Changes in organization and procedure . . . 67 Estimates of receipts . . . 68 Estimates of expenditures ^ 91

III

f i f^lX^ H Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

rv ; CONTENTS

ADMINISTRATIVE REPORTS OF BUREAUS AND DIVISIONS Page

Fiscal Service of the Treasury Department .95 Accounts, Bureau of ^ > ^ 95

Division of Bookkeeping and Warrants 95 Division of Disbursement 96 Division of Deposits 99

Depositary functions 99 Depositary bonds . . . . . 100 Designation of agencies for the issue of defense savings bonds,

series E J 101 Federal savings aiid loan associations and Federal credit

unions 102 Social Security ^ . - 103 Government Losses in Shipment Act-_^ i. . 103

Section of Surety Bonds 105 Budget Section 105

Foreign check control. 106 Section of Investments ^- 106 Accounting and disbursing of emergency relief funds 106 Budgetary administration and financial reporting 110 Daily Statement of the United States Treasury 111 Combined statement of receipts and expenditures 111 Financial statements published monthly in Congressional Record. .111 Combined statement of assets and liabilities of governmental

corporations and credit agencies . 112 Financial statements of governmental corporations and agencies

compiled under Senate Resolution No. 292 112 Appraisal of assets and liabilities of the Commodity Credit

Corporation : '. - - . 113 Federal savings and loan associations 113 Federal home loan banks . 114 Federal land banks:

Capital stock . 115 Payments on account of reductions in interest rates on mort-

gages and subscriptions to paid-in surplus 116 Federal Farm Mortgage Corporation i 117 Advances to Federal Reserve Banks for industrial loans, etc 118 Appropriations and expenditures under the Social Security Act . . 118 Obligations of foreign governments 119

Finland 121 Greece 121 Hungary 121

Receipts from Germany 121 - Army costs . . 121

Mixed claims, United States and Germany 121 Annuities under moratorium agreement 122

Treasury administration of alien and mixed claims. . . . 123 Mixed Claims Commission and Private Law No. 509: Claims

against Germany 123 War Claims Arbiter ' 126

Claims of German nationals 126 Claims of Hungarian nationals L 127

German special deposit account ._ 127 Tripartite Claims Commission: Claims against Hungary 128

Glaims of American nationals against Turkey 128 Claims of American nationals against Mexico 129 Railroad obligations . . 130

Section 204, Transportation Act, 1920, as amended 130 Section 207, Transportation Act, 1920, as amended 131 Section 210, Transportation Act, 1920, as amended 131

Federal control of railroads _._ _. 132 Administration 132 Finances 133 Securities, etc . . ^ 133 Claims . . :_ . 134 Compensation paymentsUnited States railroad employees. ' 134


CONTENTS V

Fiscal Service of the Treasury DepartmentContinued. Accounts, Bureau ofContinued.

Federal control of railroadsContinued. I*age Canadian Workmen's Compensation Board 134 Tax refunds and other collections 134

Trust and special funds invested by the Treasury . . . . 135 Adjusted service certificate fund . 135 Civil service retirement and disability fund 136 Canal Zone retirement and disability fund 137 Foreign service retirement and disability fund 138 Alaska Railroad retirement and disability fund.. . 139 District of Columbia teachers' retirement fund 140 Longshoremen's and harbor workers' compensation fund 141 District of Columbia workers' compensation fund.. 141 District of Columbia water fund . 142 United States Government life insurance fund _. 142 National service life insurance fund .. .^ ._ 143 Federal old-age and survivors insurance trust fund , 144 Unemployment trust fund 145 Railroad retirement account . 148 Library of Congress trust fund 149 National Cancer Institute gift fund 152 National Institute of Health gift fund 152 National park trust fund ^.- 153 Ainsworth Library fund, Walter Reed General Hospital 154 Pershing Hall Memorial fund . . . . 155 Alien property trust fund 155 Philippine funds in the United States Treasury 156 Supplementary sinking fund for the payment of bonds of the

Philippines 1 158 Miscellaneous trust funds 158

Special fund: Colorado River Dam fund 158

Public Debt, Bureau of the . 160 Division of Loans and Currency . . 160

Issue and retirement of securities . 160 United States savings bonds. . 161 Individual registered accounts _. 163 Claims . .164 Safekeeping of securities 1 . . . 164 Mutilated paper and redeemed currency 164

Register of the Treasury 165 Division of Public Debt Accounts and Audit. 168 Division of Savings Bonds 1 168 -Division of Paper Custody 169 Destruction Committee 170

Treasurer of the United States _. 171 Budget and Improvement Committee ' . 175 Coast Guard:

Effect of national emergency upon the Coast Guard . 176 General operations ^ - . 177 Administrative organization 178 Promoting safety of marine commerce and life and property at sea 178 Maritime law enforcement 184 Aviation ^ 186 Communications _. .. 187 Personnel and training 188 Floating equipment ^ * 191 Stations, bases, etc 192 Awards of lifesaving medals. 192 Legislation and executive order 193 Funds available, obligations, and balances ' .^ . 193

Comptroller of the Currency, Bureau of t he . . . ., 194 Changes in the condition of active national banks 194 Summary of changes in the National Banking System 196

- Administra tion of* unlicensed national banks -. 197


VI CONTENTS

Customs, Bureau of: ^age Collections . 197 Volume of business 200

Entries of merchandise 200 Vessel, airplane, and highway traffic. . . 201 Neutral i ty and national defense activities 202 Drawback transactions 203 Protests and appeals L . 204

Law enforcement activities: Seizures I . . ' . 204 Legal proceedings. . 207 Fines, penalties, etc .. .^ . . . . 207 Coordination with other agencies .: . . 208

Tariff administration ., . .. 208 Customs Agency Service 212

Undervaluation . . 212 Drawback investigations . 213 Foreign investigations . 213 Other investigations . ^ . . . 213

Miscellaneous: Appraisement Unit . ^ . . 213 Customs School of Instruction 214 Division of Labora tor ies . . 214 Division of Engineering and Weighing . - . 214 Changes in ports iand stations 214 Cost of administration ^ 215

Defense Savings Staff . 215 Engraving and Printing, Bureau of 215 Enrollment and Disbarment, Committee on 218 Foreign Funds Control . . . . . -.. 219 Internal Revenue, Bureau of:

General: Internal revenue collections 220 Refunds, drawbacks, and s tamp redemptions . 220 Additional assessments.. ^ . : 221 Cost of administration '_ 222

Income Tax Unit: General functions . 222 Returns, filed 222 Examination of income and excess-profits tax returns upon receipt

by the Washington office .- . 223 Investigation of tax returns by the field offices , 223 Revenue results of investigation of income and declared value

excess-profits tax returns . . . 224 Stage a t which additional tax was assessed.. ' 224 Refunds, abatements , and credits . 225 Inventory of returns on hand in the field offices as of June 30, . 1941 J . . . 226

Miscellaneous Tax Unit . . . . . . .: 226 Es ta te Tax Division J , . 226 Tobacco Division. 228 Sales Tax Division _. 228 Capital Stock Tax Division 229 Processing Tax D i v i s i o n . . . 230

Alcohol Tax Unit . . . . . . . 231 Procedure D iv i s ion . . I _. 231 Enforcement Division 232 Field Inspection Division 232 Laboratory Division 233 Audit Division . 233 Basic Permit and Trade Practice D iv i s ion . . 234

Accounts and Collections Unit . ^ 235 Taxes under the Federal Insurance Contributions Act 236 Tax under the Federal Unemployment Tax Act \ . 238 Carriers taxes . . . . 240

Technical Staff . ._. . 241


CONTENTS VII

Internal Revenue, Bureau ofContinued. Page Office ofthe Chief Counsel 242

. Appeals Division 243

. Civil Division 244 Interpretative Division ^ 247 Penal Diyision . 247 Review Divis ion. . . . . . 248 Legislation and Regulations Division . 249 Alcohol Tax Division . 249

Intelligence Unit _. . 249 Legal Division . . 250 Legislative Counsel, Office of the . 252 Mint, Bureau of the:

Institutions of the Mint Service . . . . 253 Coinage . 253 Bullion deposit transactions. " ' 254 Transfers of bullion for long-term storage 254 Gold operations ' 254 Silver operations 254 Refineries i . . 2^5 Stock of coin and monetary bullion in the United States 255 Production of gold and silver 255 Industrial consumption of gold and silver 255 Appropriations, expenses, and income. . . . 256 ,,General activities . 256

Monetary Research, Division of. . . . . . . . . 257 Narcotics, Bureau of.. . ' 257 Personnel, Division of. 260 Printing, Division of 262

Printing and binding . 262 Stationery supphes .' .. 264 Engraving work ^ . 264

Processing Tax Board of Review 264 Procurement Division 265 Research and Statistics, Division of . . 268 Secret Service Division .. 268 Tax Research, Division of . . . i 272

EXHIBITS PUBLIC DEBT

Issues and redemptions of Treasury bonds. Treasury notes, and depositary bonds

Exhibit 1. Offering of 2>1 percent Treasury bonds of. 195^56 275 Exhibit 2. Subscriptions and allotments. Treasury bonds of 1954-56 276 Exhibit 3. Offering of 2 percent Treasury bonds of 1953-55 277 Exhibit 4. Allotments, Treasury bonds of 1953-55 278 Exhibit 5. Redemption of 3% percent Treasury bonds of 1941-43 278 Exhibit 6. Offering of % percent Treasury notes of series B-1945, national

defense series. . 282 Exhibit 7. Subscriptions and allotments. Treasury notes of series B-1945,

national defense series 284 Exhibit 8. Offering of % percent Treasury notes of series D-1944, national

defense series 284 Exhibit 9. Subscriptions and allotments. Treasury notes of series D-1944,

national defense series . . . 285 Exhibit 10. Offering of 2 percent Treasury bonds of 1948-50 and % percent

Treasury notes of series D-1943 285 Exhibit 11. Allotments, Treasury bonds of 1948-50 and Treasury notes of

series D-1943 : 289 Exhibit 12. Offering of 2% percent Treasury bonds of 1952-54 and % per-

cent Treasury notes of series D-1943 (additional). ^ 1_. 290 Exhibit 13. Subscriptions and allotments. Treasury bonds of 1952-54 and

Treasury notes of series D-1943 (additional) . i 292 Exhibit 14. Offering of 2}4 percent Treasury bonds of 1956-58 and % per-

cent Treasury notes of series D-1943 (additional) 293 Exhibit 15. Subscriptions and allotments, Treasury bonds of 1956-58 and

Treasury notes of series D-1943 (additional) 296 Exhibit 16. Offering of 2 percent depositary bonds 297


VIII CONTENTS

Treasury bills Page

Exhibit 17. Inviting tenders for Treasury bills dated July 3, 1940 29& Exhibit 18. Acceptance of tenders for Treasury bills dated July 3, 1940.. 299-Exhibit 19. Summary of information contained in press releases issued in

connection with Treasury bills offered during the fiscal year 1941 299' Exhibit 20. Amendment, February 28, 1941, of the general circular govern-

ing the offerings of Treasury bills 302:

United States savings bonds

Exhibit 21. Offering of United States defense savings bonds of series E, and defense postal savings stamps for installment payments 304

Exhibit 22. Offering of United States savings bonds, defense series F and defense series G ^ _:- . ^ . . 309 '

Exhibit 23. Second amendment, February 20, 1941, to Department Cir-cular No. 596, as amended, relative to the tax exemption and limitation on holdings of United States savings bonds of series D . 314

Exhibit 24. First amendment, February 20, 1941, to Department Circular No. 530, Third Revision, relative to the limitation on holdings of United States savings bonds. . . . . _. 315-

Exhibit 25. Regulations governing agencies for the issue of United States defense savings bonds of series E, April 15, 1941 316-

Exhibit 26. Regulations governing United States savings.bonds, April 15, 1941 (Department Circular No. 530, Fourth Revision). 320'

Exhibit 27. First amendment, June 26, 1941, to Department Circular No. 530, Fourth Revision, relative to the registration of United States savings bonds in the names of fiduciaries 337

Miscellaneous

Exhibit 28. An act to increase the debt limit of the United States, to provide for the Federal taxation of future issues of obligations of the United States and its instrumentalities, and for other purposes . 337'

Exhibit 29. An act to adjust certain losses occurring in the redemp-tion of adjusted service bonds 339'

SECURITIES GUARANTEED BY THE UNITED STATES

Exhibit 30. Offering of Ji percent notes .of series F of the Commodity Credit Corporation . 340*

Exhibit 31. Subscriptions and allotments, Commodity Credit Corporation notes of series P 341

Exhibit 32. Partial redemption, before maturity, of 2^ percent mutual mortgage insurance fund debentures, series B (fourth call) 342*

Exhibit 33. Partial redemption, before maturity, of 2% percent mutual mortgage insurance fund debentures, series B (fifth call) 345-

Exhibit 34. Offering of }4 percent notes of series E of the United States Housing Authority . . . 348-

Exhibit 35. Subscriptions and allotments. United States Housing Au-thority notes of series E . . . 349'

Exhibit 36. Offering of Ys percent notes of series U and IJ^ percent notes of series V of the Reconstruction Finance Corporation . 349

Exhibit 37. Subscriptions and allotments. Reconstruction Finance Cor-poration notes of series U and series V . 352"

Exhibit 38. An act to increase the credit resources of the Commodity Credit Corporation . . 352'

Exhibit 39. An act to extend the life and increase the credit resources of the Commodity Credit Corporation, and for other purposes 353 -

Exhibit 40. An act to provide for increasing the lending authority of the Export-Import Bank of Washington, and for other purposes 353"

Exhibit 41. An act to extend the operations of the Disaster Loan Corpora-, tion and the Electric Home and Farm Authority, to provide for in-creasing the lending authority of the Reconstruction Finance Corpora-tion, and for other purposes . 354-


CONTENTS IX

MONETARY DEVELOPMENTS Pag t

Exhibit 42. An act to extend the time within which the powers relating to , the stabilization fund and alteration of the weight of the dollar may be

exercised 356 Exhibit 43. An act to extend the period during which direct obligations of . the United States may be used as collateral security for Federal Reserve

notes. . . . 356 Exhibit 44. An act to simplify the accounts of the Treasurer of the United

States, and for other purposes ._ 356 Exhibit 45. An act to amend section.3528 of the Revised Statutes, as

amended, relating to the purchase of metal for minor coins of the United States . ^ . . 357

Exhibit 46. Statement by the President, November 30, 1940, relative to a credit to the Chinese Government, and a letter, November 30, 1940, to the President from the Federal Loan Administrator with regard to a loan ^ to China . 357

Exhibit 47. Joint statement by the Secretary of the Treasury and the representative of the Republic of China, April 25, 1941, announcing the signing of a stabilization agreement involving the purchase of Chinese yuan 358

.Fixhibit 48. Announcement by the Secretary of the Treasury, May 1, 1941, of the appointment of the American member, alternate member, iand assistant to the board to adrninister the stabihzation funds of China 358

T]xhibit 49. Joint statement by the Secretary of the Treasury, the Argen-tine Ambassador, and the General Manager of the Central Bank of Argentina, December 27, 1940, announcing the completion of a stabiliza-tion arrangement between the United States and Argentina 359

TAXATION

Exhibit 50. Portion of the Second Supplemental National Defense Appro-priation Act, 1941, relative to Army, Navy, and Coast Guard contracts.. 359

"Exhibit 51. Joint resolution to amend section 124 of the Internal Revenue Code by extending the time for certification of national-defense facilities and contracts for amortization purposes . ._ 360

Exhibit 52. An act to amend the Merchant Marine Act, 1936, as amended (relative to ship construction funds and taxes on deposits therein) 360

Exhibit 53. Article V of the Soldiers' and Sailors' Civil Relief Act of 1940. . 362 Exhibit 54. An act to amend section 3493 of the Internal Revenue Code,

formerly section 404 of the Sugar Act of 1937.. . 366 Exhibit 55. An act to extend, for an additional year, the provisions of the

Sugar Act of 1937 and the taxes with respect to sugar . 366 Exhibit 56. Section 1 of the act to extend the provisions of the Bituminous

Coal Act of 1937 for a period of 2 years, and for other purposes ^ 367 Exhibit 57. An act amending the Bankruptcy Act with respect to the basis

of property . . 367

NATIONAL DEFENSE ACTIVITIES

Exhibit 58. Executive orders relating to the control of foreign funds and foreign-owned property 1 . . 368

Exhibit 59. Amendments to regulations of the Secretary of the Treasury relating to the control of foreign funds and foreign-owned property 374

"Exhibit 60. An act to provide for the establishment, administration, and maintenance of a Coast Guard Auxiliary and a Coast Guard Reserve.. . . 378

"Exhibit 61. Executive Order No. 8767, June 3, 1941, directing certain per-sonnel of.the Coast Guard to operate as a part of the Navy, subject to the orders of the Secretary of the Navy . 381

Exhibit 62. An act to restrict or regulate the-delivery of checks drawn against funds of the United States, or any agency or instrumentality , thereof, to addresses outside the United States, its Territories, and possessions, and for other purposes . . : 382

Exhibit 63. Regulations, March 19, 1941, relating to delivery of checks and warrants to addresses outside the United States, its Territories, and possessions . 383

"JExhibit 64. An act relating to foreign accounts in Federal Reserve Banks and insured banks l ' 387


X CONTENTS

OBLIGATIONS OF FOREIGN GOVERNMENTS Page

Exhibit 65. Correspondence exchanged between the Government of the United States and various foreign governments, legislation, statements, etc., concerning foreign debts owing to the United States . . 38S .

ORGANIZATION AND PROCEDURE

Exhibit 66. .Orders relating to organization and procedure in the Treasury Department - . 393

Exhibit 67. An act authorizing overtime rates of compensation for certain per annum employees of the field services of the War Department, the Panama Canal, the Navy Department, and the Coast Guard, and pro-viding additional pay for employees who forego their vacations 395

MISCELLANEOUS - .

Exhibit 68. Executive Order No. 8512, August 13, 1940, prescribing regulations pertaining to budgetary administration and financial re-porting - 395

Exhibit 69. Declaration of valuables, September 6, 1940, under the" Govern-ment Losses in Shipment Act (Notice No. 2) 397

Exhibit 70. Portions of the act authorizing the Secretary of the Interior to promulgate and to put into effect charges for electrical energy gen-erated at Boulder Dam, providing for the application of revenues from said project, authorizing the operation of the Boulder Power Plant by the United States directly or through^agents, and for other purposes 398

Exhibit 71. An act to carry to the surplus fund of the Treasury certain trust funds derived from compensating taxes collected pursuant to section 15 (e) of title I. of the act of May 12, 1933, as amended, upon certain articles coming into the United States . - - 400

Exhibit 72. First amendment, April 22, 1941, to Department Circular No., 394, relating to distinctive paper for United States currency and other securities. . . - . . . . 400

Exhibit 73. Letter of the Postmaster General to the Secretary of the Treasury, dated November 8, 1941, certifying extraordinary expendi-tures contributing to the deficiencies of postal revenues for the fiscal year 1941, in pursuance of Public No. 316, Seventy-first Congress, ap-proved June 9, 1 9 3 0 . . 1 . . . . - . 401

TABLES

Explanation of bases used in tables 405

Description of accounts through which Treasury operations are effected . 406

RECEIPTS AND EXPENDITURES

Summary tables on receipts and expenditures Table 1. Summary of receipts and expenditures, fiscal years 1932 to 1941

and monthly July 1940 to June 1941 (daily Treasury statement (un-revised) basis) . . 408

Table 2. Receipts and expenditures for the fiscal years 1789 to 1941 (warrant and daily Treasury statement (unrevised) bases) 412

Detail tables on receipts

Table 3. Monthly receipts, fiscal year 1941, classified by major sources (daily Treasury statement (unrevised) basis) 418

Table 4. Annual receipts, fiscal years 1932 to 1941, classified by major sources (daily Treasury statement (unrevised) basis) '. 424

Detail tables on expenditures

Table 5. Monthly expenditures, fiscal year 1941, classified by accounts (daily Treasury statement (unrevised) basis) : 430

Table 6. Annual expenditures, fiscal years 1932 to 1941, classified by accounts (daily Treasury statement (unrevised) basis) 454

Table 7. Expenditures by major functions, fiscal years 1933 to 1941 476


CONTENTS XI

. " Other receipts and expenditures tables Page

Table 8. Expenditures of the several activities of the Treasury Depar tmen t in each of the States and Territories, fiscal year 1 9 4 1 . . . . . 478

Table 9. Comparison of detailed internal revenue collections, fiscal years 1940 and 1941 (collection b a s i s ) . . . ' . . . . . l 1 i 482

Table 10. Internal revenue receipts, by tax sources, fiscal years 1916 to 1941 (collection basis) . 484

Table 11. Expenses of the In terna l Revenue Service, fiscal year 1941 (checks-issued basis) . 488

Table 12. In ternal revenue receipts, by States and Terri tories, fiscal year 1941 (collection basis) ^ _. 494

Table 13. Customs collections and payments , by districts, fiscal year 1941 . 496 Table 14. Expenditures by States and by fiscal years from April 8, 1935,

to June 30, 1941, under the Emergency Relief Appropriation Acts for the fiscal years 1935 to 1941 (checks-issued basis) . . . 498

Table 15. Expenditures by organizations and by fiscal years from April 8, 1935, to June 30, 1941, under the Emergency Relief Appropriation Acts for the fiscal years 1935 to 1941 (checks-issued basis) 500

Table 16. Financial s ta tus of appropriat ions provided in the Emergency Relief Appropriation Acts for the fiscal years 1935 to 1941, as of June 30, 1941 502

Table 17. Receipts and expenditures and s ta tement of account under the Social Security^ Railroad Retirement, and Railroad Unemployment Insurance Acts (daily Treasury s ta tement (unrevised) basis) 512

Table 18. Amounts appropr ia ted and expended to June 30, 1941, under authorizat ions contained in the Social Security Act 522

Table 19. Panama Canal receipts and expenditures, fiscal years 1903 to ^ 1941 (warrant bas i s ) . J ^ 523

Table 20. Postal receipts and expenditures, fiscal years 1789 to 1941.: . 524 Table 21. Selected receipts and -expenditures of the Government, fiscal

years 1789 to 1941 (warrant and checks-issued bases) 527

PUBLIC DEBT

Public debt outstanding

Table 22. Description of the public debt issues outs tanding June 30, 1941 (daily Treasury s ta tement (revised) b a s i s ) . . . . 529

Table 23. Principal of the public debt outs tanding a t the end of each fiscal year from 1853 to 1941 (daily Treasury s ta tement (revised) basis) ._ 550

Table 24. Comparat ive s ta tement of the public debt outs tanding June 30, 1934 to 1941 (daily Treasury s ta tement (revised) basis) 552

Table 25. Composition of the public debt ..at the end of the fiscal years 1916 to 1940 and by months from July 1940 to June 1941 (daily Treasury statement, (revised) bases) . 555

Public debt operations

Table 26. Public debt receipts and expenditures, monthly July 1940 to June 1941, with totals for the fiscal years 1937 to 1941 (daily Treasury s ta tement (unrevised) basis) _' 556

Table 27. Public debt ret i rements chargeable against ordinary receipts during "the fiscal year 1941, and cumulative totals from July 1, 1917, to June 30, 1940 and 1941, by sources and issues (daily Treasury s ta te-ment (revised) basis) . 564

Table 28. Summary of transactions in interest-bearing and noninterest-bearing securities, fiscal year 1941 (daily Treasury s ta tement (revised) basis) '. . 566

Table 29. Summary of transactions in interest-bearing securities, by form of issue, fiscal year 1941 (daily Treasury s ta tement (revised) basis) 669

Table 30. Changes in interest-bearing debt, by issues, fiscal year 1941 (daily Treasury s ta tement (revised) basis) _ . .__ 570

Table 31. Transactions in noninterest-bearing securities, by issues, fiscal -year 1941 (daily Treasury s ta tement (revised) basis) . . 574


XII CONTENTS

Pag% Table 32. Issues, maturities, and redemptions of interest-bearing securi-

ties, exclusive of trust account and other special issues, July 1940 through June 1941. _ - . _ - . . ._ . ._ 581

Table 33. Sources of public debt increase or decrease, fiscal years 1915 to 1941 (daily Treasury statement (unrevised) basis) . . 585

Table 34. Transactions on account of the cumulative sinking fund, fiscal year 1941 (daily Treasury statement (revised) basis) . . 587

Table 35. Transactions on account of the cumulative sinking fund, fiscal years 1921 to 1941 (daily Treasury statement (revised) basis) 587

Table 36. Securities retired through the cumulative sinking fund, par amount and principal cost, to June 30, 1941 (daily Treasury statement (revised) basis) . . . . 588

Interest on the public debt

Table 37. Interest on the public debt, payable, paid, and outstanding unpaid, fiscal year 1941 (daily Treasury statement (revised) basis) 589

Table 38. Interest paid on the public debt, by issues, fiscal years 1939 to 1941 (warrant basis) . . 589

Table 39. Amount of interest-bearing debt outstanding, the computed annual interest charge, and the computed rate of interest, for the fiscal years 1916 to 1941, and by months from July 1940 to June 1941 (daily Treasury statement (revised) basis). 591

Miscellaneous

Table 40. Contingent liabilities of the United States, June 30, 1941.. 592 Table 41. Contingent liabilities of the United States as of June 30, 1934

to 1941 . - -- 596 Table 42. Average yield on long-term, partially tax-exempt United States

Government bonds, by months, January 1919 to June 1941 597 Table 43. Prices and yields of Treasury bonds and notes and of securities

guaranteed by the United States 598 Table 44. Summary data from Treasury survey of the ownership of se-

curities issued or guaranteed by the United States, analyzing the owner-ship of such securities by classes of holders of each issue outstanding on June 30, 1941 . . 600

CONDITION OF THE TREASURY EXCLUSIVE OF PUBLIC DEBT LIABILITIES

Table 45. Current assets and liabilities of the Treasury at the close of the fiscal years 1940 and 1941 (daily Treasury statement (unrevised) basis) . . . 605

Table 46. Balance in the General Fund of the Treasury at the end of each month, fiscal year 1941 (daily Treasury statement (unrevised) basis) 606

Table 47. Assets and liabilities of the exchange stabilization fund as of June 30, 1940 and 1941 . ^ 607

Table 48. Securities, other than obligations of foreign governments, owned by the United States Government, June 30, 1941 609

Table 49. Principal of the funded and unfunded indebtedness of foreign governments to the United States, the accrued and unpaid interest thereon, a nd payments on account of principal and interest, as of November 15, 1941 611

Table 50. Principal of the funded and unfunded indebtedness of foreign governments to the United States, the accrued and unpaid interest thereon, and payments on account of. principal and interest, as of No-vember 15 of each year from 1928 to 1941 . 612

ASSETS AND LIABILITIES OF GOVERNMENTAL CORPORATIONS AND AGENCIES

Table 51. Combined statement of assets and liabilities of governmental corporations and credit agencies of the United States, as of June 30, 1 9 4 1 . . . . . . . . . 1. 613

Table 52. Proprietary interest of the United States in governmental cor-porations and credit agencies, as of June 30, 1929 to 1941 621


CONTENTS X i n

STOCK AND CIRCULATION OF MONEY IN THE UNITED STATES Page

Table 53. Stock of money, money in the Treasury, in the Federal Reserve Banks, and in circulation June 30, 1913 to 1 9 4 1 . . . 624

Table 54. Stock of money, by kinds, at the end of each fiscal year from 1913 to 1941 . . . . 626

Table 55. Mone}'' in circulation, by kinds, at the end of each fiscal year from 1913 to 1941 . . . . _ _ . . _ . . . 627

Table 56. Stock of money, money in the Treasury, in the Federal Reserve Banks, and in circulation, by kinds, June 30, 1941.. 628

TAX-EXEMPT AND TAXABLE SECURITIES

Table 57. Estimated amount of interest-bearing securities issued by all governmental units in the United States outstanding on June 30, 1941, classified by tax-exemption status and by type of issuer 629

Table 58. Estimated amount of interest-bearing securities issued by all governmental units in the United States outstanding on June 30, 1913 to 1941, classified by tax-exemption status and by type of issuer 630

CUSTOMS STATISTICS

Table 59. Values of dutiable and taxable imports for consumption and estimated duties and taxes collected, by tariff schedules, fiscal years 1940 and 1941 . 638

Table 60. Estimated customs duties, value of imports entered for consump-tion, and ratio of duties to value of dutiable imports and to value of all imports, for the calendar years 1931 to 1940 and by months from January 1940 to June 1941 _. 639

Table 61. Estimated customs duties, value of dutiable imports^ and ratio of estimated duties to value of dutiable imports, by tariff schedules, for the calendar years 1931 to 1940 and by months from January 1940 to June 1941 :__ 640

Table 62. Values of dutiable imports for consumption and estimated duties collected, by countries, fiscal years 1940 and 1941 644

Table 63. Customs statistics, by districts, fiscal year 1941 645

MISCELLANEOUS

Table 64. Net expenditures for Federal aid to States, individuals, etc. (ex-clusive of funds allocated for recovery and relief), fiscal years 1920, 1940, and 1941, and amounts appropriated for 1942, by appropriations (warrant and checks-issued bases) . . 647

Table 65. Expenditures made by the Government as direct payments to States, etc., under cooperative arrangements and expenditures within States which provided relief and other aid, fiscal year 1941 651

Table 66. Number and amount of awards of the Mixed Claims Commis-sion, United States and Germany, certified to the Secretary of the Treasury by the Secretary of State and the amount paid and balance due, by classes, as of September 30, 1941 660

Table 67. Transactions in food order stamps for the Surplus Marketing Administration from May 16, 1939, to June 30, 1941 ,__ 662

Table 68. Transactions in stamps exchangeable for cotton and cotton sur-pluses for the Surplus Marketing Administration from May 6, 1940, to June 30, 1941 . . . 663

PERSONNEL

Table 69. Number of employees in the departmental service of the Treas-ury Department in Washington, quarterly from June 30, 1940, to June 30, 1941 . . . . . . 664

Table 70. Number of employees in the departmental and field services of the Treasury Department on June 30, 1940, and June 30, 1941. 665

Table 71. Number of persons retired, departmental and field services of the Treasury Department, August 20, 1920, to June 30, 1941, and num-ber of persons eligible for retirement but retained, as of June 30, 1941.. 666


XIV CONTENTS

ESTIMATES Page

Table 72. Receipts and expenditures in general and special accounts, actual for the fiscal year 1941 and estimated for the fiscal years 1942 and 1943, in detail, as exhibited in the Budget for 1943 . 667

Table 73. Receipts and expenditures, trust accounts, increment on gold, etc., actual for the fiscal year 1941 and estimated for the fiscal years 1942 and 1943, as exhibited in the Budget for 1943 682

Table 74. General Fund balance and effect on the public debt of financing the deficit, actual for the fiscal year 1941 and estimated for. the fiscal years 1942 and 1943, as exhibited in the Budget for 1943 . 684

Index - .. 685


SECRETARIES, UNDER SECRETARIES, AND ASSISTANT SECRETARIES OF THE TREASURY DEPARTMENT FROM MARCH 4, 1933, TO NOVEM-BER 15, 1941,1 AND THE PRESIDENT UNDER WHOM THEY SERVED

Term of service

From To-Official Secretary ofthe Treasury President

Mar. 4,1933 Jan. 1,1934

.May 19,'1933 Nov. 17,1933 May 2,1934

Jan. 29,1937 Nov. 1,1938 Jan. 18,1940

Apr. ;18,1933 .June 6,1933 June 12,1933 Dec. 1,1934 Feb. 19,1936 July 1,1938 June 23,1939 Jan. 18,1940

Dec. 31,1933

Nov. 16,1933 Dec. 31,1933 Feb. 15,1936

Sept. 15,1938 Dec. 31,1939

Feb. 15,1936 Sept. 30,1939 Dec. 12,1933 Nov. 1,1937 Feb. 28,1939 Oct. 31,1938

Secretaries ofthe Treasury

William H. Woodin, New York Henry Morgenthau, Jr., New York.

Under Secretaries

Dean G. Acheson, Maryland Henry Morgenthau, Jr., New York. Thomas Jefferson Coolidge, Mas-

sachusetts. Roswell Magill, New York JohnW. Hanes, North Carolina.... Daniel W. Bell, Illinois

Assistant Secretaries

Lawrence W. Robert, Jr., Georgia., Stephen B. Gibbons, New York. . . Thomas Hewes, Connecticut Josephine Roche, Colorado... Wayne C. Taylor, Illinois John W. Hanes, North Carolina. _. iaerbertE. Gaston, New York John L. Sullivan, New Hampshire.

Woodin Woodin. Morgenthau..

Morgenthau.. Morgenthau. Morgenthau..

Woodin, Morgenthau... Woodin, Morgenthau... Woodin ;. Morgenthau Morgenthau Morgenthau Morgenthau Morgenthau 1

Roosevelt. Roosevelt.

Roosevelt. Roosevelt. Roosevelt.

Roosevelt. Roosevelt. Roosevelt.

Roosevelt. Roosevelt. Roosevelt. Roosevelt. Roosevelt. Roosevelt. Roosevelt. Roosevelt,

1 For officials since 1789 see annual report for 1932, pp. xvirto xxi, and corresponding table in annual report lor 1933.


PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS OF THE TREASURY DEPARTMENT AS OF NOVEMBER 15, 1941

OFFICE OF THE SECRETARY

Henry Morgenthau, Jr. Secretary of the Treasury. Daniel W. Bell : Under Secretary of the Treasury. Herbert E. Gaston Assistant Secretary of the Treasury. John L. Sullivan. Assistant Secretary of the Treasury. (Vacant) Fiscal Assistant Secretary of the Treasury. Harold N. Graves Assistant to the Secretary. Ferdinand Kuhn, Jr Assistant to the Secretary. Harry D. White . . . Assistant to the Secretary. James L. Houghteling Assistant to the Secretary. B. Marion Edwards Assistant to the Secretary. Dave H. Morris, Jr ._ Assistant to the Secretary. Chester I. Barnard 1 Assistant to the Secretary. John W.Pehle Assistant to the Secretary. Henrietta S. Klotz Assistant to the Secretary. H. Merle Cochran Technical Assistant to the Secretary. W. N. Thompson... Administrative Assistant to the Secretary. -Charles S. Bell . Assistant Administrative Assistant to the Secretary. Charles R. Schoeneman Special Staff Assistant. Theodore F. Wilson Director of Personnel. Elmer L. Irey Coordinator of Treasury Agency Services. Frank J. Wilson _ Chief, Secret Service Division. Thomas Tarleau Legislative Counsel. Eugene W. Sloan Executive Director, Defense Savings Staff. Charles Schwarz Director of Press Relations. William T. Heffelfinger Executive Assistant to the Fiscal AssistantJSecretary. Francis C. Rose. . Assistant to Assistant Secretary. F. A. Birgfeld : Chief Clerk. Denzil A. R igh t . . . . . Superintendent of Treasury Buildings. Gabrielle E. Forbush Chief, Correspondence Division.

OFFICE OF THE GENERAL COUNSEL

Edward H. Foley, Jr General Counsel. Huntington Cairns Assistant General Counsel. Lawrence J. Bernard _ Assistant General Counsel. Bernard Bernstein Assistant General Counsel. N. 0 . Tietjens Assistant General Couosel. Charles L. Kades Assistant General Counsel. Joseph J. O'Connell, Jr T Assistant to the General Counsel. Samuel .Klaus Special Assistant to the General Counsel. Ernest JEl. Feidler Special Assistant to the General Counsel. Stephen J. Spingarn Special Assistant to the General Counsel. John P. Wenchel Chief Counsel, Bureau of Internal Revenue. Robert Chambers Chief Counsel, Bureau of Customs.

DIVISION OF RESEARCH AND STATISTICS

George 0 . Haas - Director of Research and Statistics. Henry C.Murphy Assistant Director. Al F. O'Donnell-.- Assistant Director. Russell R. Reagh Assistant Director (Government Actuary). Anna M. Michener Assistant to the Director. Isabella S. Diamond Librarian.

DIVISION OF MONETARY RESEARCH

Harry D. White Director of Monetary Research. V. Frank Coe - Assistant Director. Frank A. Southard, Jr Assistant Director. Edward M. Bernstein Assistant Director.

DIVISION OF TAX RESEARCH

Roy Blough Director of Tax Research. Louis Shere Assistant Director.

BUREAU OF THE PUBLIC DEBT

William S. Broughton Commissioner of the Public Debt. Edwin L. Kilby Assistant Commissioner of the Public Debt. R e n e w . Barr Deputy Commissioner of the Public Debt. Edward G. Dolan Register of the Treasury. Byrd Leavell . Assistant Register of the Treasury. Marvin Wesley Chief, Division of Loans and Currency. Melvin R. Loafman Chief, Division of Public Debt Accounts and Audit. Maurice A. Emerson Chief, Division of Paper Custody. Arthur E. Wilson Chief, Division of Savings Bonds.

XVI


PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS XVII

BUREAU OF ENGRAVING AND PRINTING

Alvin W. Hall Director, Bureau of Engraving and Printing. Clark R. Long Assistant Director (Administration). Jesse E. Swigart _. Assistant Director (Production).

BUREAU OF ACCOUNTS

Edward F . Bartelt Commissioner of Accounts. Robert W. Maxwell Assistant.Commissioner of Accounts. Joseph Greenberg Assistant Commissioner of Accounts. A. L. Peterson Chief Accountant. E. C.N.ussear -.Executive/Assistant to the.G^ommissioner. . Guy FlAllen . "Chief Disb*ursing'Officer, Division 6f't)isbursement. L. L. Collie Chief, Division of Bookkeeping and Warrants. B.M.Mulvihil l Chief, Division of Deposits. Harry R. Schwalm Chief Examiner, Section of Surety Bonds. Eugene P. 0'Daniel.- Chief, Section of Investments.

BUREAU OF THE COMPTROLLER OF THE CURRENCY

Preston Delano _ Comptroller of the Currency. Cyr i lB. Upham Deputy Comptroller. R. B. McCandless Deputy Comptroller. L. H. Sedlacek _ Deputy Comptroller. W. P . Folger Chief National Bank Examiner.

OFFICE OF THE TREASURER OF THE UNITED STATES

William A. Julian. _ _.. Treasurer of the United States. Marion Banister Assistant Treasurer.. George 0 . Barnes Assistant to the Treasurer. M. E. Slindee Administrative Assistant to the Treasurer. Louis P . Allen- Chief Clerk.

BUREAU OF NARCOTICS

Harry J. Anslinger _ Gommis-sioner of Narcotics. Wil is . Wood - Deputy Commissioner of Narcotics. Malachi L. Harney . Assistant to the Commissioner.

BUREAU OF INTERNAL REVENUE

Guy T. Helvering .: Commissioner of Internal Revenue. Norman D. Cann _ Assistant to the Commissioner. Timothy C. Mooney Deputy Commissioner. George J. Schoeneman Deputy Commissioner. D . Spencer Bliss Deputy Commissioner. Stewart Berkshire - Deputy Commissioner. Eldon P. King ___ Special Deputy Commissioner. A. R. Marrs . . . Head, Technical Staff. Elmer L. Irey Chief, Intelligence Unit .

BUREAU OF CUSTOMS

W . R i Johnson.- !... Commissioner of Customs. Frank Dow Assistant Commissioner of Customs. Thomas J. Gorman Deputy Commissioner. A.S.Johnson Deputy Commissioner. (Vacant) Deputy Commissioner.

BUREAU OF THE MINT

Nellie Tayloe Ross , Director of the Mint. Leland Howard Assistant Director.

40763142 2


XVIII PRINCIPAL. ADMINISTRATIVE .AND STAFF OFFICERS

PROCUREMENT DIVISION

Clifton E. Mack . .^. Director of Procurement. Robert LeFevre . . . : . ._. Assistant Director. - . ' George Landick, Jr.- Assistant to the Director. W. N. Rehlaender Administrative Assistant to the Director., .

BOARD OF AWARDS

George Landick, Jr., Assistant to the Director, L. C. Spangler, Chief, Strategic and .Critical Mate-Chairman, rials Division.

Harry B. Dyche, Special Assistant to the Director, ' ,. Vice Chairman. . . . . .

STANDING DEPARTMENTAL COMMITTEES

BUDGET AND IMPROVEMENT COMMITTEE

C R. Schoeneman, Chairman. . L. C. Spangler. F. A. Birgfeld, Vice Chairman. ' Arthur E. Wilson. George 0. Barnes. T.F.Wilson. M . E . Slindee. George H. Jones, Secretary. ^Charles S. Bell.

COMMITTEE ON PRACTICE

Guy C. Hanna, Chairman. George D. Carrington. W. W. Cook. E. B. Van Veen, Attorney for the Government.

BOARD OF REVIEW

(Refunds of Processing Taxes)

William Schwartz, Chairman. Annabel Matthews. (Vacant), Vice Chairman. . Temple W. Seay. John W. Edwards. Bernard D. Hathcock. Percy S. Crewe.


DEPARTMENT OF THE TREASURY November I 5. 1941

THE SECRETARY OF THE TREASURV '

t u t UNOED StCRtlAl ly

GENERAL C O U N : FOR THE TREASURY

ISIANT SECRETARy IN CHARGE OF

ETERNAL REVENUE ASSISTANT TO

SECRETARV

H CHARGE OF CUSTOMS.

FOREIGN FUNDS BUREAU OF ENGRAVING BUREAU OF THE

PUBLIC 0E8"

DIRECTOR OF RESEARCH

iNO STATISTIC SECRET SERVICE

LEGAL DIVISION OFFICE OF THE

LEGISLATIVE FFICE OF THE LASURER OF THE (ITEO STATES

OFFICE OFTHE COMPTROLLER OF

THE CURRENCY

N OF RESEARCH

SUPERINTENDENT (

CHABT 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNUAL REPORT ON THE FINANCES

TREASURY DEPARTMENT,

Washington, D, C , January 7, 19^2. SIR: I have the honor to make the following report on the finances

of the .United.Statesior.the fiscal'year,ended. June. 30, i 9 4 1 .

BUDGET RESULTS

Receipts in general and special accounts

The fiscal year 1941 was the first year since 1918 to be dominated by problems of national defense during its entire length. Far-reaching fiscal legislation, designed to increase Federal revenues, was enacted during 1941 as a consequence of increased governmental expenditures necessitated by defense activities.

The Revenue Act of 1940 was approved on June 25, 1940, five days before the end of the fiscal year 1940. This act introduced no new forms of taxation, but it increased the rates or broadened the base of practically every existing source of revenue, frequently in the form of a special defense tax. The Second Revenue Act of 1940 was approved on October 8, 1940. I t increased corporate income tax rates and introduced a new excess profits tax. The Public Debt Act of 1941, approved February 19, 1941, made interest on future issues of secu-rities of the Federal Government subject to all Federal income taxes. The Excess Profits Tax Amendments of 1941, approved March 7, 1941, decreased potential revenues, principally by allowing a two-year carry-over of unused excess profits credit and by providing for more favorable tax treatment of corporations. . Because of statutory lags in collection, especially in regard to income tax liabilities, the effect of the above legislation was only partially reflected in the 1941 receipts. Even this partial effect, com-bined with high income levels, resulted in unprecedented Federal revenues. Total receipts in general and special accounts aggregated $8,269 milhons in 1941. Net receipts (total receipts less net appro-priations to the Federal old-age and survivors insurance trust fund) amounted to $7,607 millions and were $913millions above the previous record level in the fiscal year 1920.

The trend in receipts by major sources for the fiscal years 1934 to 1941, is shown in the chart on page 4. A comparison of receipts for 1940 and .1941 is presented in the table following. A more detailed

REPORT OF THE SECRETARY OF THE TREASURY

Receipts by major sources, fiscal years 1940 and 1941

[Dollars in millions]

Source

Internal revenue: Income taxes:

Current corporation * Current individual Back taxes _. . . _ Excess profits tax Declared value excess profits tax Unjust enrichment tax.

Total income taxes (collection basis) . Adjustment to daily Treasury statement basis,

unrevised

Total income taxes (daily Treasury state-ment basis, unrevised)

Miscellaneous internal revenue: Capital stock tax _. . ._. Estate tax _ Gift tax . . . Liquor taxes ' ^ ..-. Tobacco and products taxes * Stamp taxes .. -' _

Manufacturers' excise taxes: Gasoline - _ ._ Automobiles, trucks, tires, tubes, and parts or

accessories - . . Electrical energy Lubricating oils _ All other 2 . .

Total manufacturers' excise taxes

Miscellaneous taxes: Telegraph, telephone, cable, and radio facil-

ities, etc. - -- -Transportation of oil by pipe line Admissions __ Sugar tax 2 _._ All other, including repealed taxes^ ,_.

Total miscellaneous taxes

Total miscellaneous internal revenue (collec-tion basis) : . . . . .

Adjustment to daily Treasury statement basis, unrevised

Total miscellaneous internal revenue (daily Treasury statement basis, un-

revised) - _, -

Employment taxes: Employment by other than carriers:

Federal Insurance Contributions Act Federal Unemployment Tax Act

Total . . . . Carriers and their employees 1 _..

Total employment taxes

Total internal revenue

1940

$958. 3 891.8 252.6

18.5 8.5

2,129. 6

4.3

2,125. 3

132.7 330.9 29.2

624.1 608.1 38.7

226.2

119.4 42.3 31.2 27,6

446.7

26.4 n.5 21.9 68.1 21.4

149.3

2, 359. 6

15.0

2, 344. 6

604.7 107.5

712.2 121.0

833.2

5, 303.1

1941

$1,649.0' 1,314.3

306.4 164.3 28.1 9.1

3, 471.1

1.5

3,469. 6

166.7 355.2 51.9

819.9 697.7 39.1

343.0

156.3 . 47.0

38.2 32.5

617.0

27.3 12.5 71.0 74.8 21.5

207.2

2.954. 6

12.3

2,966. 9

690.6 97.7

788.2 136.9

925.2

7. 361. 7

In. crease or de-crease

(-)

$690. 7 422.5

53.8 164.3

9:6 .6

1,341.5

2.8

1,344.3

34.0 24.3 22.7

195.8 89.6

.4

116.8

36.9 4.7 7.0 5.0

170.3

.9 LO

49.1 6.7 .1

57.9

695.0

27.3

622.3

85.9 9.8

76.0 15.9

92.0

2.058. 6

Per-cent in-crease or de-crease

(-)

72.1 47.4 2L3

""51.9' 7.1

63.0

63.3

25.6 7.3

77.7 3L4 14.7 1.0

5L6

30.9 11.1 22.4 18.2

38.1

3.4 8.7

224. 2 9.8 .5

38.8

25.2

26.5

14. 2 9.1

10.7 13.1

n.o 38.8

Percent of total in-

crease in re-ceipts from general and

special accounts

29. 6 18.0 2.3 7.0 .4

57.2

57.4

1.5 1.0 1.0 8.4 3.8

5.0

L6 .2 .3 .2

7.3

2.1 .3

2.4

25.4

26.6

3.7 .4

3.2 .7

3.9

87.8

Footnotes at end of table.



Receipts by major sources, fiscal years 1940 and 1941 ^'Continued

[Dollars in millions]

Source

Railroad Unemployment Insurance Act Customs.

Total internal revenue taxes, railroad unemploy-ment insurance, and customs .

Miscellaneous revenues and receipts ^

Total receipts, general and special accounts Deduct: Net appropriation for Federal old-age and sur-

vivors insurance trust fund . .

Net receipts, general and special accounts _

1940

$4.9 348.6

5, 656. 6 268. 2

5,924. 8

537.7

5, 387.1

1941

$6.8 39L9

7, 760. 4 508.2

8, 268. 5

66L3

7, 607. 2

In-crease or de-crease

(-)

$1.9 43.3

2,103. 8 240.0

2, 343. 7

123.6

2, 220.1

Per-cent in-crease or de-crease

(-)

38.8 12.4

37.2 89.5

39.6

23.0

4L2

Percent of total in-

crease in re-ceipts from general and

special accounts ,

0.1 L8

89.8 10.2

100; 0

I The detail of income taxes and miscellaneous internal revenue taxes is on the basis of internal revenue collections with totals adjusted to daily Treasury statement basis, unrevised. Employment taxes, railroad unemployment insurance taxes, customs, and miscellaneous receipts are shown on the daily Treasury state-ment basis, unrevised. jGeneral and special accounts are combined. For description of accounts and bases, see p. 405.

2. Collections for credit to trust funds are not included

NOTE.Dollar figures are rounded to nearest tenth of a million and will not necessarily add to totals.

Total receipts in general and special accounts of $8,268.5 millions in 1941 represented an increase of $2,343.7 millions, 39.6 percent, over the total of $5,924.8 millions received in 1940. Eve.ry important source of revenue contributed to this increase: Income taxes provided 57.4 percent, miscellaneous internal revenue 26.6 percent, miscel-laneous revenues and receipts 10.2 percent, employment taxes 3.9 percent, customs 1.8 percent, and the receipts from the Railroad Unemployment Insurance Act 0.1 percent.

Income tax receipts, sensitive to changes in business conditions, increased to $3,469.6 millions in 1941. They were $1,344.3 millions or 63.3 percent greater than the 1940 receipts of $2,125.3 millions. Except for back income taxes and the unjust enrichment tax, which is of minor importance, income tax receipts for the fiscal year 1941 arose from liabilities of the calendar years 1939 and 1940, whereas the fiscal year 1940 receipts represented collections of liabilities of the calendar years 1938 and 1939. Eliminating the calendar year 1939 habihties common to both fiscal years, the increase in receipts of the fiscal year 1941 over 1940 results from higher income levels iand tax rates in 1940 than in 1938.

Current corporation income tax receipts accounted for 51.4 percent of the increase in income tax receipts in 1941 as compared with 1940. In actual amounts, the 1941 receipts were $1,649.0 millions, exceeding the 1940 receipts by $690.7 millions or 72.1 percent. Income levels were much higher in 1940 than in 1938. Moreover, the tax rate of from 16H percent to 19 percent in 1938 for corporations with net



incomes in excess of $25,000, depending on dividends paid, was raised to a flat 24 percent in 1940. The graduated rates on corporations with net incomes of $25,000 or less were also higher in 1940 than in 1938. The effect of these tax rate increases was offset somewhat by the allowance of a two-year loss carry-over, only one year of which was effective in 1940, and by more favorable treatment of capital losses incorporated in the Revenue Act of 1939.

TOTAL.RECEIPTS,* FISCAL YEARSJ934 TO 1941. CLASSIFIED BY MAJOR SOURCES

1936 1937 F I S C A L

1938 1939 Y E A R S

CHART 2.

The Second Revenue Act of 1940 established an excess profits tax at rates graduated from 25 percent to 50 percent on adjusted excess profits net income. Receipts from the tax in 1941 aggregated $164.3 millions. These receipts represented only part of the 1940 liabilities under the tax.

Current individual income tax receipts also increased by sub-stantial amounts, although by considerably less than taxes on cor-porate profits. Collections in 1941 were $422.5 millions greater than in 1940, or 47.4 percent. This increase represented 31.4 percent of the increase in income tax receipts in 1941 over 1940. The Revenue Act of 1940 lowered personal exemptions and increased the rates in the

1 Excludes trust accounts and net appropriation to tbe Federal old-age and survivors insurance trust fund.


REPORT OF THE SECRETARY OF THE TREASURY 5

individual income surtax schedule in. addition to levying a 10 percent defense tax. Improved business conditions also contributed . to increased individual income tax collections. Since the base of the individual income tax is much broader than the base of taxes on cor-porate profits, the revenue effect of improved business conditions on the individual income tax is less pronounced than that on the narrower and more volatile corporation normal tax base. The same state-ment applies even more emphatically by comparison with the excess profits tax base, most volatile of all.

Declared value excess profits tax receipts amounted to $28.1 millions in the fiscal year 1941, an increase of $9.6 millions or 51.9 percent over 1940. Higher income levels in the calendar year 1940 as compared with the calendar year 1938 and a 10 percent increase in the tax rate in 1940 each contributed to the increased yield of the tax. Back income tax receipts of $306.4 millions were greater than in any previous fiscal year for which information is available. They exceeded the fiscal year 1940 receipts by 21.3 percent.

Capital stock tax receipts in the fiscal year 1941 amounted to $166.7 millions, exceeding 1940 receipts by $34.0 millions, or 25.6 percent. The increase reflects higher income levels in the calendar year 1940 as compared with the calendar year 1939 and an increase in the tax rate from $1.00 to $1.10 per $1,000 of declared value of capital stock.

The remaining sources of tax revenue fluctuate much less violently with changes in business activity than do revenues from income taxes and the capital stock tax which is correlative with the declared value excess profits tax. Estate tax receipts were $24.3 millions greater in 1941 than, in the preceding year. Primarily because of the statutory lag between liabilities and collections the increase was only 7.3 per-cent, somewhat less than the defense tax increase of 10 percent. How-ever, gift tax receipts in 1941, totaling $51.9 millions, were 77.7 per-cent greater than in 1940. This substantial increase reflects to some extent the 10 percent increase in the tax rate, but probably more important are gifts made in anticipation of higher gift and estate taxes in future tax legislation.

The sources of miscellaneous internal revenue other than the capital stock tax and estate and gift taxes are taxes based on the production or sale of commodities, the demand for which is relatively stable. Therefore, for the most part, the relative collections in 1941 as com-pared to 1940 are commensurate with the tax rate increases made by the Revenue Act of 1940.

Liquor taxes increased 31.4 percent to total $819.9 millions in 1941. The tax on distilled spirits increased from $317.6 millions in 1940 to $428.5 millions in 1941, an increase of 34.9 percentthe tax rate increase was 33}f percentwhile fermented malt liquor tax receipts were $316.7 millions in 1941, an increase of 19.7 percent over 1940


6 REPORT OF THE SECRETARY OF THE TREASURY

the tax rate increased 20 percent. Total tobacco taxes increased from $608.1 millions in 1940 to $697.7 millions in 1941. The tax on small cigarettes, accounting for a major portion of tobacco taxes, amounted to $616.7 millions in 1941, an increase of 15.7 percent'over 1940 receipts. The increase in the tax rate on small cigarettes was 16.7 percent.

As liquor and tobacco taxes for the most part are stamp taxes, collections in 1941 theoretically reflect the higher rates of the Revenue Act of 1940 for the entire year, although in fact, because of advance buying due to increased rates, there is some reduction in expected consumption in the year in which the increase in riates is first effective. Although the Revenue Act of 1940 was effective July 1, 1940, collec-tions in the first month of the fiscal year represent collections at the rates in effect prior to the Revenue Act of 1940 for miscellaneous internal revenue other than liquor and tobacco taxes and other less important stamp taxes, because of administrative procedure. To some extent this lag is also carried through the second month.

Manufacturers^ excise taxes in 1941 totaled $617.0 millions, the increase of $170.3 millions, or 38.1 percent, resulting from increases in rates and consumption. The gasoline tax increased $116.8 millions, or 51.6 percent, to $343.0 millions, while the tax on motor vehicles, including tires and tubes and accessories, increased 30.9 percent to $156.3 millions. The rate of tax on gasoline was increased by 50 percent from 1 cent to IK cents per gallon by the Revenue Act of 1940, while tax increases on motor vehicles ranged from 16 percent to 25 percent.

Of the remaining sources of miscellaneous internal revenue, only the increase of receipts from the tax on admissions is of great conse-quence. Primarily because the exemption from tax was lowered from admissions of 40 cents and under to admissions of 20 cents and under by the Revenue Act of 1940, admissions tax receipts rose from $21.9 millions in 1940 to $71.0 millions in 1941, an increase of 224.2 percent.

Total employment taxes amounted to $925.2 millions in 1941, an increase of $92.0 millions, or 11.0 percent, over receipts in 1940. The bulk of the increase is due to increased employment. The effect of increased employment was reinforced, in the case of the Federal Insurance Contributions Act, by the base-broadening effects of the Social Security Act Amendments of 1939, under which a full fiscal year of collections was received for the first time. Receipts under this act rose by $85.9 millions, or 14.2 percent, to a new high of $690.6 millions. The effect of increased employment was more than offset, in the case of the Federal Unemployment Tax Act, by the effect of the amendments, which narrowed the base of this act by excluding



railway employees and wages iii excess of $3,000 a year. Receipts under this act fell from $107.5 millions in 1940 to $97.7 millions in 1941, the decrease of $9.8 millions amounting to 9.1 percent of the previous total.

Customs receipts were $391.9 millions in 1941, as compared with $348.6 millions iii 1940. The increase of $43.3 millions, or 12.4 per-cent, reflects chiefly the effects of the war. The increases are par-ticularly marked in schedules which reflect increased imports in con-nection with the defense program.

Miscellaneous revenues and receipts in 1941 showed the largest percentage increase of any major group, 89.5 percent, from $268.2 millions in 1940 to $508.2 millions. The bulk of this increase was due to repayments of capital funds by certain governmental corporations, as shown on page 50 of this report.

As in other years, the bulk of receipts in 1941 was derived from relatively few sources. As shown by the data on page 2, 81.5 percent of total receipts came from customs and the following taxes, arranged in order of magnitude: Current corporation income and excess profits, current individual income, employment including carriers, liquor, tobacco, estate and gift, and gasoline.

The proportion of income taxes to total receipts from general and special accounts rose sharply from 35.9 to 42.0 percent from 1940 to 1941. Miscellaneous internal revenue fell in relative importance from 39.6 to 35.9 percent, and employment taxes from 14.0 to 11.2 percent, to offset the relative increase in income taxes. Customs receipts constituted 4.7 percent of the total in 1941, as against 5.9 percent in 1940, while receipts from all other revenue sources rose from 4.6 to. 6.2 percent.

Expenditures jrom general and special accounts

Total expenditures of' the Federal Government from general and special accounts amounted to $12,775 millions during the fiscal year 1941. A. comparison of expenditures in this fiscal year and those of the seven previous fiscal years is shown by major categories in the chart on page 9 and in the table on page 476. Detailed information on expen-ditures by agencies and accounts appears for the fiscal year 1941 in the table on page 430 and for the fiscal years 1932 to .1941 in the table on page 454. -

The aggregate volume of expenditures during 1941 represented an increase of $3,648 millions over expenditures during the preceding fiscal year. . This increase in expenditures was more than accounted for by the requirements of the accelerated national defense program, expenditures for which were just beginning to get under way during



the fiscal year 1940. Comparative summary figures for the fiscal years 1940 and 1941 are shown in the following table.

Expenditures, fiscal years 1940 and 1941, classified by functions [In millions of dollars. General and special accounts]

I . Na t iona l defense expendi tures : W a r N a v y _ . . Defense aid (lend-lease) Miscellaneous nat ional defense _. .

T o t a l . . . . _ .

I I . Other expendi tures except deb t re t i rements : Vete rans ' Adminis t ra t ion i _ _ _ _ _ . P u b l i c works . . . . - . . Aid to agricul ture . . . _ _ _ Gran t s to Sta tes under the Social Securi ty Act Relief and work relief:

Work Projects Adminis t ra t ion and Nat iona l Y o u t h Admin -istrat ion . - -

Federal Emergency Relief Adminis t ra t ion and Civil W o r k s Adminis t ra t ion

Civil ian Conservat ion Coi'ps In teres t on the publ ic deb t Other . -

Tota l

I I I . Pub l i c deb t re t i rements

I V . To ta l expendi tures -

1940

667 891

99

1,657

657 949

1,559 357

1,572

1 283

1,041 1,022

7.341

129

9,127

1941

3,636 2,217

21 206

6.080

663 738 937 415

1,421

257 1,111 1,188

6.630.

64

12,775

N e t change-

-f-2,968-+1,325-

+^ +108

+4,423^

+6 - 2 1 1 - 6 2 1 +59 '

- 1 6 1

1 - 2 6 +70 '

+166-

710'

- 6 5

+3,648--

Includes transfers to adjusted service certificate fund.

NOTE.Figures are rounded to nearest million and will not necessarily add to totals.

I t is apparent from the data in the tables and in the chart referred to above that the expansion of the expenditures of the Federal Govern-ment during the fiscal year 1941 was confined primarily to those activi-ties which related to the country's rearmament program. Expendi-tures for work relief, direct relief, forest conservation, and nondefense public works began to decline during 1941 as the national defense effort increased and the Nation's attention was directed to the expan sion and equipment of the armed forces and the^ strengthening of the military defense.

This increase in the defense effort, it is pointed out, was accom-plished with a very considerable rapidity. In June 1941, the last month of the fiscal year, the rate of expenditure for national defense was in excess of $800 millions, which was nearly five times the' expendi-tures that had occurred in July 1940, the first month of the fiscal year. A comparison of monthly expenditures for defense activities and for other activities of the Federal Government are shown in the table-following.



Monthly expenditures, fiscal year 1941 \ in millions of dollars. On basis of daily Treasury sta'tements (unrevised), see p. 406. General and special

accounts]

July

Month

1940

AUETUSt September . October . . . . November -December - - - ---

January , 1941

February . . March i . April - - - . May June - -

National defense

expendi-tures

185 210 225 297 379 470

569 584 748 763 837 812

Other Federal expendi-

tures except debt

service

. 613 476 386 498 428 483

617 471 601 479 292 377

- Debt service

Interest

20 20

148 73 11

219

25 21

150 73 12

339

Debt retire-ments

12 3 2 1 1

16

7 2 2 1 1

17

Total expendi-

tures

831 708 760 870 818

1,187

1,118 1,077 1,401 1,316 1,142 1,546


EXPENDITURES,! FISCAL YEARS 1934 TO 1941. CLASSIFIED BY MAJOR FUNCTIONS

1934 1935 1936 1937 1938 1939 F I S C A L Y E A R S

CHART 8. ! Excludes debfretirements and trust accounts. > Includes grants to States undertthe Social Security Act.

1940 1941



In the table above and chart 3, as well as in aU other tables in this report, the classification '^national defense^' includes the mili-tary expenditures of the War Department, all expenditures of the Navy Department, disbursements made from the national defense funds of the President by various Government departments and agencies, the administrative expenses of Selective Service, outlays for emergency ship construction and all other expenditures by the Maritime Commission, defense aid under the Lend-Lease Act, and defense housing. The amounts expended under each of these various categories during the fiscal year 1941 are shown by months in the table on page 430.

The classification '^national defense^' does not include, however, certain other expenditures attributable to national defense, which are payable from funds which have supplemented regular appropriations of the civil establishments. Some of these outlays^ which have defense as their ultimate objective but are classified separately, were made by the Federal Security Agency, Tennessee Valley Authority, and the War Department. Other defense outlays not included were made by corporations such as the Reconstruction.Finance Corporation and its subsidiaries whose activities are not a part of the regular Federal Budget.

With respect to the changes in expenditures shown in the table on page 8 for activities other than those connected with the national defense program, it is noted that the largest changea decrease of $621 millionsappears in expenditures for aid to agriculture. This decrease is accounted for in part by the return to the Treasury by certain agricultural agencies of $315 millions which represented a portion of their surplus funds. Further details with respect to the agencies making such returns of surplus funds and the amounts involved by agencies appear on page 50 of this report.

The decrease in agricultural expenditures is also accounted for in part by the fact that no further appropriations for the restoration of the capital impairment of the Commodity Credit Corporation was necessary during the fiscal year 1941. During the fiscal year 1940 such appropriation had amounted to $120 millions.

Other large decreases in expenditures during 1941 occurred in relief and public works activities. These activities were progressively curtailed during the fiscal year in accordance with the expansion of national defense activities. '



Deficit in general and special accounts

,11

The excess of expenditures over receipts in general and special accounts for the fiscal year 1941 amounted to $5,168 millions. If public debt retirements are deducted, the net deficit for 1941 amounted to. $5,103 millions. The derivation of the deficit in general and special accounts for the fiscal years 1940 and 1941 is shown in the following table.

[In millions of dollars] .

Eeceipts '... Deduct net appropriation to Federal old-age and survivors insurance trust

fund- : ._ ___

Net receipts - . Expenditm'es including debt retirements

Gross deficit _ _ _ Deduct debt retirements.

Net deficit .*

1940

6.925

538

5,387 9,127

3,740 129

3, 611

1941

8,269

661

7,607 12,775

5,168 64

5,103


RECEIPTS AND EXPENDITURES IN TRUST ACCOUNTS AND CHECKING ACCOUNTS OF CORPORATIONS AND CREDIT AGENCIES

In addition to receipts and expenditures under general and special accounts, discussed above, certain receipts and expenditures of the GoverDment are reported on the Daily Statement of the United States Treasury under the title of ^'Trust accounts, increment on gold, etc.^' There are four main classes of receipts and expenditures reported under this title: Trust accounts, checking accounts of governmental corporations and credit agencies, increment on gold, and seigniorage on silver. Neither the receipts nor the expenditures of these accounts affect the Federal Budget except to the extent that appropriations are made to these accounts from the General Fund. Such appro-priations appear as expenditures under general and special accounts, and as receipts under trust accounts, increment on gold, etc. Certain trust accounts dispose of the excess of their receipts over expendi-tures by investing, such excess in Government securities, as provided by statute. The corporations and credit agencies maintaining check-ing accounts with the .Treasurer of the United States generally apply the cash balances not needed for operations to the purchase of Govern-ment securities for investment or to debt or capital stock retirement.

Details of receipts anci expenditures in ^^Trust accounts, increment on gold, etc.,-' annually during the fiscal years 1933 to 1941 and monthly for the fiscal year 1941 appear in the table that follows.



Receipts and expenditures for trust accounts, increment on gold, etc., fiscal years 1933 to 1941 and monthly for 1941

[On basis of daily Treasury statements (unrevised), see p. 406]

TRUST ACCOUNTS

[In millions of dollars]

Fiscal year and m o n t h

1933 1934 1935 1936. 1937 1938 1939 1940 -1941 1940July

Augus t S e p t e m b e r . October N o v e m b e r . D e c e m b e r . .

1941January F e b r u a r y - -M a r c h A p r i l . . . M a y J u n e

To ta l t rus t

funds, ne t re-ceipts or net

expend-i tures (-)

- 5 24 64 34 19 11 29 37 73 47

133 - 1 4 6

18 136

- 1 4 4 48

140 - 1 5 1

37 140

- 1 8 3

Federa l old-age and survivors

insurance t rus t fund

N e t

...... 1 3

10 38

121 - 1 5 1

32 123

- 1 6 6 37

132 - 1 6 6

41 146

- 1 8 6

Re-ceipts

267 402 630 580 717

36 119

1 32

123 1

32 132

1 37

148 66

E x . pend-i tures

267 401 629 677 707 - 2 - 1 161 (*) (*) 156 - 5

1 167 - 3

2 241

Unemploy-m e n t t rus t

fund

N e t

" " 1 2 " 1 1

- 4 - 1 1 .

6 3

- 8 1 8 8

- 7 2

- 6 (*)

1

R e -ceipts

19 294 763 838 959

1,114 59

143 ' 67

107 145

62 78

149 28 69

167 61

Ex-pend-i tures

19 294 751 837 957

1,118 , 70

138 63

115 144 44 70

156 27 76

167 49

Rai l road re t i r ement

1 account

N e t

2 2

- 2 11 10 10

(*) - 1 0

10 - 1 0 (*)

10

':\ - 9

2

R e -ceipts

148 109 123 127 20 26 10

" " 2 0 "

"""io" 20. 10 8

Ex-pend-i tures

146 107 125 116

10 16 10 10 10 10 10 10 10 10

(*)

Other- t rus t accounts^*

.Net

- 6 24 64 34 20

- 4 24 36 65 10

- 3 2 4 1

13 3 6

13 4 3

- 1

R e -ceipts

280 233

.301 2,053

858 323 349 366 625 117 16 22 26

35 32 46 56 42 84

E x . pend-i tures

285 2 J 0 237

2,020 838 327 325 331 469 107 18 20 22 16 21 33 27 31

. 61 39 86

OTHER ACCOUNTS

[In millions of dollars]

:Fiscal year and m o n t h

1933 1934 1935 -1936 1937 . . . 1938 1939 -1940. 1941 1940July

A u g u s t . . . September-Oc tobe r . . . N o v e m b e r December .

1941January . -F e b r u a r y .

^ M a r c h Apri l M a y J u n e

Transact ions in check-ing accounts of G o v e r n m e n t agen-cies, e tc .

To ta l all

t rans -actions

- 8 1 8 - 7 3 4

637 108

. 314 204 768 41

- 2 2 6 - 3 181

- 1 7 - 4 9

70 - 6 2 - 1 8

- 1 2 9 - 6 9 361

- 4 1 1 - 8 0

Issu-ance

of ob-liga-

tions 3

0) (0

1,106 288 852 - 4 285 - 2 - 4 176

- 2 9 - 3 - 1 - 3 629

- 1 9 2 (*)

Other t rans-

actions

(0

0) (*) (*)

- 3 3 7 - 2 4 6

- 1 , 0 7 7 1

- 1 0 4 - 1 5 - 4 5

- 1 0 6 - 3 3 - 1 5

- 1 2 8 - 6 6

- 2 6 8 - 2 1 9

- 8 0

Inc remen t on gold

N e t

811 - 1 1 1 - 4 0 3

- 9 9 - 5 1 - 5 (*)

f:| (*) (*) (*)

Re-ceipts

2,811 2 1 2 1

1? (*) (*) (*) (*)

i () (*)

Ex-pendi-tures

2,000 113 404 101 52 5

(*) (*)

. . . . . . . (*)

"" (* ) ' " . . . . . . .

Seigniorage on silver

N e t

140 176 40 90 90 49 20

3 2 1 3 1

^ 2 2 1 1 1 1 2

Re-ceipts

140 176 40 90 90 49 20

3 2 1 3 1 2 2 1 1 1 1 2

Ex-pendi-tures

Miscellaneous funds and a c c o u n t s '

N e t

2 8

- 1 6 4 3 3 6

11 - 4

- 1 7 - 1 5 - 1 8

3 6 , 3

i Re-ceipts

Ex-pendi -tures

2 - 8 16

- 4 - 3 - 3

. - 5 - 1 1

4 17 15 18

~ 3 - 6 - 3

*Less than $500,000. 1 Includes Government insurance and retirement funds, etc. Comprises PWA revolving fund, and special deposits (net). Also includes Surplus Marketing Admin-

istration commodity stamp transactions beginning with September 1941, shown as budget expenditures under -j&id. to agriculture in previous months. ,

3 Net receipts constitute net sales, and net expenditures constitute net redemptions of obligations. < Details not available. NOTE.Figures are rounded to nearest million and will not necessarily add to totals.



Because the Government corporations mentioned above and certain other Government corporations and credit agencies maintain only checking accounts with the Treasurer of the United States, the transactions shown in the preceding table represent only the net bal-ance of their operations, and, therefore, do not furnish sufficient data for a detailed analysis of the financial transactions of these agencies. Arrangements have been made with these corporations, however, whereby certain data are submitted to the Treasury so that the Treas-ury's books can reflect the operations of these corporations and agen-cies. These data have been combined and appear below in' tables

showing sources and uses of funds from the date of inception of the various corporations to June 30, 1941, and for the fiscal year 1941. These data are not on the basis of the daily Treasury statement and the figures, therefore, do not tie in exactly with the figures shown in other tables in this report.

Sources of funds of certain governmental corporations and credit agencies from incep-tion of organization to June 30, 1941

[On basis of reports received from the corporations and agencies]

Corporation or agency

:Central Bank for Cooperatives. . Commodity Credit Corporation. Disaster Loan Corporation Electric Home and Farm Au-

thority Export-Import Bank of Wash-

ington Federal Deposit Insurance Cor-

poration Federal Farm Mortgage Cor-, poration ' . Federal home loan banks Federal National Mortgage As-

sociation . Federal Savings and Loan In-

surance Corporation Home Owners' Loan Corpora-

tion National defense corporations ^.. Reconstruction' Finance Cor-

poration . RFC Mortgage Company Tlural Electrification Adminis-

tration United States Housing Author-

ity

Total

Appropria-tions from

General Fund of the Treasury '

$20,000,000 2 270,128, 592 3 24,000, 000

1,000,000

1,000,000

150,000,000

3 100,000,000

3 200,000,000

325,000,000

128, 476,047

37, 394, 572

1,256,999,. 211

Allocations, rediscounts,

and loans from other

governmental corporations and credit

agencies (net)

$6, 566,189

87, 634 884

273,029, 853

46, 479, 296

182, 496 968

596, 207,190

Sale of obligations to Treasury

(net) .

$140,000,000

19,916, 250

85,000 000

244, 916, 250

Sale of obliga-tions in the

market (net)

$696, 252,000

14,173, 750

1, 315, 287 900 75, 500,000

85, 240 000

5 3,114, 453, 550

1, 741, 449,000

226, 256 000

7, 268, 612, 200

Sale of stock to

other agencies

$794,100

174,000, 000

139, 299, 557

4124, 741,000

11,000,000

100,000,000

27,000.000

25,000,000

601, 834, 657

Footnotes at end of table.

40763142 ^3


14 REPORT OF. THE SECRETARY OF THE TREASURY

Sources of funds of certain governmental corporations and credit agencies from incep-tion of organization to J u n e 30, 1941rContinued

Corporation or agency Sale of other

property acquired

Repayment of loans.

Interest, divi-dends, assess-

ments, and property income

other receipts

Total, sources of

funds

Central Bank for Cooperatives.. Commodity Credit Corporation. Disaster Loan Corporation Electric Home and Farm Au-

thority Export-Import Bank of Wash-

ington Federal Deposit Insurance Cor-

poration.L .. Federal Farm Mortgage Cor-

poration Federal home loan banks Federal National M;ortgage As-

sociation . Federal Savings and Loan In-

surance Corporation Home Owners' Loan Corpora-

tion National defense corporations 6.. Reconstruction Finance Cor-,

poration . RFC Mortgage Company Rural Electrification Admin-

istration United States Housing Author-

i ty . . . . _.

Total..

$74, 846,133 110, 447

14, 305, 360

306, 388

$243, 300, 494 807,041, 728

8, 924,181 24, 258,131

52, 535, 279

74, 222,172

315,150, 464 604, Oil, 466

28, 946, 569

135,942,157 36, 862, 768

23, 424, 987 579, 722

956, 635, 981

951, 401

5, 374, 854,107 119, 424,161

6, 956, 366

525, 573,154

$10, 633, 581 19, 688, 932 1, 400, 544 3,760,152

10, 311, 206

301, 798, 572

432, 020. 940 40, 595, 513

19,323,163

35, 900, 526

878,045, 444 3,110

608, 725, 505 12, 440, 970

9, 595, 613

- 20,254,679

$4, 301,020 58, 548, 315

50, 743 308,002

707,119

4, 314, 703

9, 767, 066 80, 400, 409

3, 926, 367

121, 977

22, 795,063 620,157

.84, 850, 308 3, 373, 872

6.366

177, 523

$285, 595, 384 2,066, 505, 700'

34, 485, 915 43, 500,035.

238, 553, 604

669,635, 004:

2,186, 531, 730 925, 248, 388-

236, 377, 371

136,022,503

5,307,872,196 337, 515, 888

8,178, 220,157 207, 298,021

327, 531, 360

896, 607, 329

287, 329,363 9,141, 834, 253 2, 4.04, 498, 450 274, 269,010 22,076, 500, 584

1 Items in this column are the only ones in this statement which constitute a charge against the Federal Budget. They represent amounts of funds drawn against available appropriations.

2 Includes a $3,000,000 N. I. R. A. allocation; $97,000,000 R. F. C. notes canceled by the Treasury (see footnote 3); and $170,128,591.77 restoration of capital impairment, which is net Of a repayment to the Treasury of $43,756,731.01 on the basis of March 31, 1940, appraisal of the corporation, pursuant to Public No. 442,. approved March 8, 1938.

3 These funds were furnished by the Reconstruction Finance Corporation from the proceeds of its notes; sold to theTreasury, such amounts being included in the total of obligations of the Corporation canceled by the Secretary of the Treasury pursuant to the act of February 24, 1938.

* The Reconstruction Finance CDrporation purchased the stock of the Federal home loan banks from the Treasury Department on February 20,1941. The net effect of this transaction is the same as a sale of stock to other agencies, and is shown as such for purposes of this report.

Retirement of these obligations shown as "Retirement of obligations issued in exchange for mortgages"^' in the statement of uses of funds. . .

Comprises Defense Homes Corporation, Defense Plant Corporation, Defense Supplies Corporation,, Metals Reserve Company, and Rubber Reserve Company.

^ Receipts from the sale of property acquired in liquidation of loans are shown as "Sale of other property acquired"..

8 Includes $46,542,200 paid-in capital stock held by member institutions.


REPORT OF THE SECRETARY OF THE TREASURY 15 Uses of funds of certain governmental corporations and credit agencies from incep-

. tion of organization to June 30, 1941

[On basis of reports received from the corporations and agencies]

Corporation or agency

Expenses

Adminis-trative

Nonadmin-istrative

Purchase and improvement of property

Owned / Loans

Retirement of obliga-

tions issued in exchange

ar treasury 1941

Documents