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Credit Card
the first modern credit card was introduced, which would eventually change the financial lives of every American in the years to come. -
Housing Industry
The housing industry reports that housing construction rose 52 percent over the same period in 1949. -
FCC Domain Regulations
The Federal Communications Commission (FCC) sanctions an agreement between American Telephone & Telegraph (AT&T) and Western Union to stay out of each other's business domain. -
Mr. Potato Head
Mr. Potato Head becomes the first toy to be advertised on television. George Lerner, the creator of the toy, thought that his invention would help make vegetables more appetizing and fun for children. It was a success and over one million were sold within the first year. -
Steelworkers Strike
President Truman authorizes the takeover of the nation's $7 billion steel industry, to thwart a walkout by 650,000 steelworkers.
The steel strike ends in July that same year, but workers walk out again when the U.S. Supreme Court rules that Truman's takeover was unconstitutional. -
Dwight D. Eisenhower is Inaugurated as President
Republican Eisenhower and his running mate Richard Nixon defeated Democrat Adlai Stevenson with a popular vote of 55.2 percent to 44.3 percent. Eisenhower had previously been known for his service as a five-star general during World War II, eventually becoming the Supreme Allied Commander. He also acted as a Chief of Staff for the Army under President Truman. -
Economic Growth
Economic growth in the United States continues to rise, increasing by 5 percent ($368 billion) over 1952. -
Consumer Credit
Consumer credit increases for the sixth straight month, officially ending the recession. -
General Motors Sales
General Motors reports $10.2 billion in sales, topping all U.S. companies. -
SEC Staff Shortage
A number of staff positions at the U.S. Securities and Exchange Commission were eliminated due to budget cuts; by 1955, the SEC had just under 700 employees. Due to the staff shortage, the SEC regional offices were directed to rely on state authorities to investigate and prosecute securities cases. -
TIME Criticizes SEC
TIME published “Protection for Investors: The SEC is Unequal to the Job,” criticizing the U.S. Securities and Exchange Commission for being dominated by the financial industry. The SEC was faulted for choosing to prosecute small brokerage firms, rather than major Wall Street firms. -
Pooling-of-Interest Accounting Sanctioned
In Accounting Research Bulletin 48, the AICPA Committee on Accounting Procedure allowed for pooling-of-interests accounting for business combinations in the presence of certain attendant circumstances. The criteria were often ignored or weakly enforced by the U.S. Securities and Exchange Commission. -
Deferred Taxes Ruling
Utility companies sought to enjoin the AICPA Committee on Accounting Procedure from issuing a requirement that deferred taxes be included among liabilities, at variance with the industry practice of including them in equity. After the U.S. Supreme Court denied the judicial writ, the committee clarified that deferred taxes should be shown as a liability or deferred credit. The U.S. Securities and Exchange Commission confirmed this requirement in Accounting Standards Release No. 85. -
APB Succeeds CAP
Facing criticism for failing to reduce the number of acceptable accounting alternatives, the AICPA replaced the Committee on Accounting Procedure (CAP) with the Accounting Principles Board (APB). The APB was intended to develop conceptual context from which would flow specific applications, then choose between alternate rules and procedures to narrow differences. The APB soon turned from conceptual context to solving specific problems, as had the former CAP.