Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-21
MONEY CALL
WILL GO TO BANKS
Subscriptions to Part of $2,OOO,-
100000 Treasury Certificates of
Indebtedness to Be Invited.
THREE OR FOUR DAYS
Federal Reserve Board Promises
Fullest Cooperation in Dis
posing of Issue.

HSliiN'loN. April 2V.-First Call
10 tho country for war finances will
be made. Secretary Meade" announced
to-day, as soon as the $1,000 600 900
financial bill becomes a law. probably
within three or four days
The call Will be for subscriptions to
part OF the $1,000. 900 900 issue Of
Treasury certificates OF Indebtedness.
designed TO meet financial needs pend
ing the issuance of the $4,000. .000, 900
in bonds and the receipt by the gov
crnmcnt of its war taxes. and will be
made upon the banks Of the country,
and not upon individuals
The first portion Of tho s5.ono. 600 900
bond issue probably will he offered to
the public within sixty days. hardly
earlier.
In making its first call for finances
the government will utilize the ma
chircry OF the Federal reserve system
The Federal Reserve Board day in
structcd the twelve reserve banks to
enlist the co-oDcration Of all banks
throughout the country. State 3nd ma
tIonal. as we'll as trust companies in
the program OF preparing the field
This means that the banks Of tho
a
literally as they may, and AS the money
is needed. to the issue of certificates
OF indebtedness which will be put out
in advance of the bond issue
FIRST OFFER PROBABLY
WILL BE 5000 .OOO. 600
How many millions of>these ccrtifi-
Gates will he issued has not yet been
determined. The first offer. Secretary
McAdoo announced, probably will be
S:oo,0o0.oo0. Other offers by the hun
drcd Of millions probably Will follow
as the funds are needed. Under the
law. the secretary may pay up 3l-o
per cent. willingness has been re-
vealed by banks TO take Il substantial
offering at as low rate at 2l-2 per
cent.
Certificates purchased by the banks
may be used in lieu OF cash. Mr. Ne
Adoo again announced, in paying for
the bonds when issued. Moneys re-
cciNed for tho certificates will be
promptly returned to the market under
the secretary's program. SO that there
may be no arrangement of the money
market.
The fullest co:opcration of the Fed :
cral Reserve Board will he given the
Treasury department in disposing Of
the certificates. Letters so instructing
the Federal reserve banks were sent
out to-day by the board after Mr. Me
Adoo had announced his program.
HARDING SENDS LETTERS
TO RESERVE. BANKS
These letters, addressed TO the re-
serve banks. aud signed by Governor
| Harding. reads:
I'm vic nf ha lor
United states bonds which will he Of
fered in the near future. and which IL
is hoped will be subscribed for to a
great extent by investors. large and
small. whose funds are now on de-
post in banks. the board regards an
investment by banks in United States
certificates of Indebtedness having a
short maturity and which are rcceiv-
able in payment of subscriptions TO
United States bonds. as a highly de-
sirable investment for them.
The board does not doubt that you
will impress upon the banks Of your
district. both national and State. the
I Importance of this offer. and that you
will enlis: their hearty cooperation
! In THIS plan of preparing the field and
preparing themselves"
Although the 1000. .OoO.O 900 finance
I bill has passed both houses of Con
gress. il has not been finally disposed
OF because OF amendments of a minor
| nature. This situation will be adjust
| ed in conference shortly. and thereafter
only the Presidents signature will he
| required to make the measure law
April 90 is the tentative date fixed by
Secretary McAdoo .or his first informal
negotiations with the banks.