EXHIBIT F. TAX-EXEMPT SECURITIES TABLE 1.-Estimated amount of securities outstanding, interest on which is wholly or partially exempt from the Federal income tax, June 30, 1938 1 [In millions of dollars] 1 "Total outstanding issues" of tax-exempt securities of the several borrowers differs from the gross indebtedness of these borrowers in that it excludes noninterest-bearing and taxable interest-bearing debt. "Net outstanding issues" differs from net indebtedness in that it excludes from "total outstanding issues" taxexempt securities held by governments, governmental agencies, Federal Reserve banks, and public sinking, trust and investment funds, while net debt excludes from gross debt the total volume of sinking fund assets, regardless of their character, but ignores all other public assets. Tax-exempt securities are segregated into 2 categories, those partially exempt and those wholly exempt. The former are exempt from the normal rates and the latter from both the normal and the surtax rates of the Federal income tax. United States savings bonds and Treasury bonds are here classified as partially taxexempt securities. However, it is to be noted that by statutory provision, interest derived from the first $5,000 of principal amount of these securities owned by any single holder is exempt from the surtax as well as the normal tax. The estimate of the volume of tax-exempt securities outstanding on June 30, 1938, is based in part on a questionnaire survey of State, local, territorial, and insular debt and specified funds, conducted by the Treasury Department in cooperation with the Department of the Interior Division of Territories and Island Possessions, and the War Department Bureau of Insular Affairs, and in part on the record of new security issues published by the Commercial and Financial Chronicle. The estimate of the volume of tax-exempt securities outstanding in earlier years, shown in table 56, was based on a questionnaire survey conducted by the Treasury Department and upon the Bureau of the Census decennial Financial Statistics of State and Local Governments and annual Financial Statistics of States and Financial Statistics of Cities, as well as the statistics of new security issues and security retirements published in the Bond Buyer and the State and Municipal Compendium of the Commercial and Financial Chronicle. Excludes such tax-exempt securities as may be held by the stabilization fund. In the absence of Nation-wide trust and investment fund data for 1938, it was assumed that the taxexempt security holdings of these funds increased 5 percent during the last fiscal year. This assumption was based on pre-1937 trends for States and cities and on available fragmentary data for 1938. States, counties, cities, etc. (wholly exempt) TABLE 2.-Estimated amount of securities outstanding, interest on which is wholly or partially exempt from the Federal income tax, June 30, 1913 to 1938, by types of borrowers 1 4, 528 4,949 5,417 1916.. 6,887 6,887 972 972 40 5,875 .B HELD BY UNITED STATES GOVERNMENT, FEDERAL TRUST FUNDS AND AGENCIES * On basis of daily Treasury statements (revised), see p. 351. Includes Federal land bank bonds (both those issued by the individual banks and the consolidated series), Federal intermediate credit bank debentures, and joint stock land • Federal Farm Mortgage Corporation bonds. Includes Home Owners' Loan Corporation bonds and home loan bank debentures. Excludes stabilization fund and Federal Reserve banks. TABLE 2.-Estimated amount of securities outstanding, interest on which is wholly or partially exempt from the Federal income tax, June 30, D. HELD IN SINKING FUNDS AND TRUST AND INVESTMENT FUNDS OF STATES, LOCALITIES, TERRITORIES, AND INSULAR POSSESSIONS 235 3 232 1937. 526 732 216 3 213 1938. 2,564 744 591 301 290 See footnote 3 on p. 543. 14, 854 Total outstanding issues less those held by U. S. Government, Federal trust funds and agencies, Federal Reserve banks, and in sinking funds of States, localities, territories. |