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or property “ordinary and necessary for the active conduct of a
qualified trade or business” (the active conduct restriction).
H.R. 10650, 87th Cong., 2d Sess., sec. 13(a) (1962). The Senate
eliminated that restriction. It retained virtually unchanged,
however, the language of the House bill describing the few
permitted domestic investments. Since the House undoubtedly
understood that language to describe investments satisfying the
active conduct restriction, it can be inferred by the Senate's
nearly verbatim adoption of the same language that it also
understood that language to describe investments satisfying the
active conduct restriction, notwithstanding its elimination of
that restriction with respect to all foreign investments and
U.S. investments of earnings that had been subjected to
U.S. taxation.
We are mindful that the exceptions to the definition of U.S.
property provided in section 956(b)(2)(A) include an exception
for "obligations of the United States", which, of course, could
include a long-term investment, such as a 30-year Treasury bond.
This fact does not alter our conclusion that Congress intended to
limit section 956(b)(2)(A), in general, and the section 956
deposit exception, in particular, to business facilitating
activities. It was only natural for Congress to encourage any
form of deposit of offshore earnings with the U.S. Government.
Given our conclusion as to the meaning of the term “the
banking business”, we are satisfied that the activities of WFNNB
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