Page:United States Statutes at Large Volume 53 Part 1.djvu/694

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(A) UNITED STATES GOVERNMENT OBLIGATIONS (Digested from Form 800-A, Revised, November 1, 1935, issued by the Commissioner of Public Debt, the 1936 edition of Treasury Annual Reports, Finance (Document No. 3079, pages 400 and 409), and Statement of the Public Debt of the United States, Form 774, July 31, 1937.) With the exception of three small loans, which are exempt from the payment of all taxes and duties of the United States, except estate, inheritance, or gift taxes, all interest-bearing obligations of the United States now outstanding have been issued under the Second Liberty Bond Act, approved September 24, 1917, as amended, and the same Act is the present authority for the Secretary of the Treasury to borrow money through the sale of additional amounts of interest- bearing obligations of the United States. CLASSES OF SECURTES The following classes of securities are authorized by the Second Liberty Bond Act. (a) Bonds of the United States, those termed Treasury bonds, bearing inter- est. Treasury bonds are issued with maturities more than 5 years from the date of issue, in two forms: (1) coupon (or bearer) bonds, payable to bearer, with coupons attached for the payment of interest when due; and (2) regis- tered bonds, payable to an inscribed owner, and with interest paid through checks drawn to the order of the inscribed owner. Both forms are issued in the denominations of $50, $100, $500, $1,000, $5,000 , $10,000 and $100,000 (except that the $50 denomination is not available for some of the earlier issues of Treasury bonds). Coupon and registered bonds are interchangeable for like amounts of the same issue. (b) United States Savings bonds, are issued on a discount basis. They may be issued with maturities not less than 10 nor more than 20 years from the issue date, and at prices to yield an investment return of not over 3 percent com- pounded semiannually. They are redeemable at the option of holders before maturity at increasing redemption values. These bonds are issued only in registered form and in the denominations of $25, $50, $100, $500 and $1,000 (maturity value). They are not transferable. Notes of the United States, bearing interest, with maturities not less than one nor more than five years from date of issue. These notes are termed Treasury notes, and they are issued only in coupon form payable to bearer, with coupons attached for the payment of interest when due, in denominations of $100, $500, $1,000, $5,000, $10,000, $100,000 (but the $50 denomination may be provided for some series.) Certificates of Indebtedness, commonly termed Treasury certificates of in- debtedness, bearing interest, with maturities not exceeding one year from date of issue. These certificates are issued only in coupon form payable to bearer, with coupons attached for the payment of interest when due, in denominations of $500, $1,000 , $5,000 , $10,000 and $100,000 (but the $100 denomination may be provided for some series). Treasury Bills, with maturities not exceeding one year from date of issue. These bills are issued on a discount basis, and in denominations of $1,000, $10,000, $100,000 , $500,000 and $1,000 ,000 (maturity value), payable to bearer. TAX EXEMPTIONS The provisions of the Second Liberty Bond Act, as amended, now in effect provide for tax exemptions of the public debt securities issued and outstanding, or issuable under that Act. Treasury Bonds and United States Savings Bonds.-All such bonds are exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate, inheritance, or gift taxes and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of such bonds the principal of which does not exceed in the aggregate $5,000 owned by any in- dividual, partnership, association, or corporation, is exempt from the taxes provided for in subdivision (b) mentioned above. For the purpose of determin- ing taxes and tax-exemptions on United States Savings bonds, the increment in value represented by the difference between the price paid and the price received (whether at or before maturity) is considered as interest. Treasury Notes. -The notes may be issued in any one or more of the fol- lowing series as the Secretary of the Treasury may prescribe in connection with the issue thereof: (1) Exempt, both as to principal and interest, from all taxation (except estate, inheritance, or gift taxes) now or hereafter imposed by the United APPENDIX CLXXXIX