Evening star., 1917-01-14
EARLY BOND ISSUE
NOT CONTEMPLATED
Secretary McAdoo Satisfied
Treasury Can Get Along
for the Present.
MAY COME BEFORE JUNE

The administration. as represented by
President Wilson and Secretary McAdoo
is giving no thought to the question Of
an early issue of bonds. it is authorita-
lively known.
The President pays little detailed at
tention to the subject. leaving the mat
ter in the hands of Mr.. McAdoo. and
that official laughs at suggestions that
the Treasury cash balance is running so
low that bond issue of considerable
amount is imminent.
While Secretary McAdoo does not say
that there will be no bond issue in the
now in contemplation. AS a possibility,
too. that no bonds will be issued for
some months to come, Mr.. McAdoo
points out that before June Is next the
Treasury will be richer by approximate
ly $290,0OO.0O of mighty welcome re-
ceipts from the income tax on corpora
tions, individuals and the tax on rnuni-
tions. The only question which Mr.. Nc
Adoo must work out is whether he will
need money before that time, in which
event he might or might not sell either
Panama bonds, for which he has general
authority. or one-year certificates.
Eventual Issue Inevitable.
Mr. McAdoo already has shown in an
official statement, however, that between
now and the close of the fiscal year 1918,
ending June 80 of that year. the govern
ment must sell from s250.000.000 to
$500, 100000 bonds unless Congress un-
dertakes to meet the prospective deficit
now taxed.
Congressional leaders are expected to
consult Secretary McAdoo as to legis-
lation for meeting the deficit in the
next few days il Congress expects to
dispose of the important question be-
fore adjournment. March 4. and it is
regarded as unlikely that the subject
will go over until the next session of
Congress. although it would be pos
sible to do that.
Estimates of the Treasury Depart
ment are that by June Is next. most
Of it likely to be. be paid paid. in the the
Treasury will receive $125.OOO. 900 from
the income tax on corporations. $125.-
00O, 900 from the individual income tax
and $40.O00.O00 from the tax on muni-
tions. In the last fiscal year the re-
S67. 100000 from corporations and $685.
000. 900 from individual income tax.
To Be Guided by Cash.
These large sums will go far toward
replenishing what will then be a
mighty small working balance Of cash
in the Treasury. even if there is any
working balance by that time. Secre-
tary McAdoo will be guided as to an
issue of bonds or certificates before
June Is by the cash condition of his
big department.
To the suggestion that it might be
to the interests of the government to
divide the total amount of bonds 1t
will issue in the next year and a half
into a number of issues Secretary Nc
Adoo is understood to be of the opinion
that it is not really material whether
there will be several issue or one big
issue. He regards the country as so
filed with cash that 1t would quickly
and easily absorb government obliga-
tions at a satisfactory price. 1t is
within his discretion to put out most
of the bonds to be sold in the next
fiscal year or part of them the last
of this fiscal year and the others in
the next. Right now, as stated. he
thinks the Treasury is in such good
shape that he is not bothering with the
proposition.