New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-27
May Raise a
Billion Dollars
On Certificates
Secretary McAdoo Plans to
Lessen Strain of Govern
ment Financing

Washington, April 26.-Secrctary OF
the Treasury McAdoo may offer soon
another block Of Treasury certificates
TO the banks of the country through
tho Federal Reserve banks. The sec
ond offering probably will be the same
size as the first, S25O,OOO,OOO, and may
he offered within ten days. Should the
Government decide to finance the Al
los to the extent Of s500,OOO,OOo
month. as is suggested, approximately
81 600 900, 900 would be needed to meet
roouirements prior to June 80, the date
,,,on which the first proceeds OF the
hand issue probably will be available
Raising 81 900, 100000 before the first
nroceeds of the first bond issue are
available could only be accomplished
nv the issue of further lots of certlh-
Gates Of indebtedness. Should the gov
decide to raise this sum- II
could best be done by offering three
,oore blocks Of certificates, S25O,OOO,OOO
TO each Offering, about three weeks
anart. according to officials OF the
Treasury Department.
McAdoo Favors Certificates
Secretary McAdoo is favorably in
clined to the liberal use OF certlhcates
of Indebtedness as a means Tor easing
the strain upon the countrys hnances
in connection with the bond issue. I'm
he is not limited TO a total issue or
60 00n 600 900. but is limited to an out
standing indebtedness Of S2,000,000,0 900
ronrpsentad by this form of security.
II would be possible. therefore. for
him 10 issue far more than S2.OOO,OOO,-
600 altogether, retiring the certificates
with bonds in such a manner as to
hiring the total due on certificates at
anv one time within the S2,OOO,OOO,OOO
limit.
Withdrawing money from the mar
kots az the rate Of s250,000,000 every
two or three weeks by the issue OF
blocks of certificates, officials believe,
would be preferable to a sudden call
for proceeds of a $4,000 00,0 900 bond
issue. Thus. should $1,000, 100000 IN
certificates be issued prior to June 49,
half of a $4,000 100000 bond issue
would virtually have been Withdrawn
from the money markets prior TO lts
issue. as the certificates carry the con-
version privilege and doubtless would
be exchanged for bonds.
Little Disturbance Expected
In this manner, it is thought. the
hanks of the country will be in a strong
nositior TO meet the strain of war
financing and minimum disturbance OF
financial conditions would result.
Secretary McAdoo is DESTROYS OF
completing his financial programme, at
the earliest possible moment, so that
tho country need not be kept waiting
for an announcement OF the details
longer than absolutely necessary. TO
This end instructions have been issued
10 take all steps necessary TO speeding
tho compilation Of data which must be
in hand before a tentative programme
can no placed before President Wilson.
Numerous conferences with foreign
Government representatives appear IN
nrospect. II is believed that a pro
qramme will be in shape for President
Wilson'S consideration not later than
Nav |. Mr.. McAdoo is known to be de-
sirous Of having the proceeds OF the
first bond issue or portion OF them
in hand not later than June 30, and II
inc customary sixty days are to be de-
voted TO receiving subscriptions and
collecting the proceeds. announcement
as TO the issue would have 10 De Iorth-
coming not later than May l in order
10 have Tie funds in hand at the close
Of the fiscal year, when the first $3.50,
0oo OO0 Of Treasury certificates Will
have 10 be taken up.