The sun., 1919-07-28
D. S. REVENUE WILL
MEET 1920 DEBTS

20 been reduced by s4.4o2.51s.ooo. ieav'
ing outstanding s1,sst.777.50o.


ing outstanding s1.ss4.777.5oo.
During the next few months, there
fore. the actual cash requirements OF
the Treasury cannot be expected TO show
heavy further decrease, tand on the
other hand the proceeds Of the deferred
instruments Of the income and profits
taxes for the year 1919. and the deferred
instruments on Victory loan suhscrip-
lions will not have been fully received
until nearly the end OF the calendar year
1919.
Three months have passed since the
last Offering of Treasury certificates
other than those issued in anticipation
of taxes. This interval has been made
possible by the rapid decrease In the
current expenditures of the Government.
the very large early payments on the
Victory loan. and the ready sale OF tax
certificates. Beginning early In June
these have been issued up to July ~ to
the aggregate amount of $1,S7b,4s7.boo,
but In amounts less than the income and
profits tax receipts due at their respect
tive maturfties-
Having borrowed as much as 1t is in
the Treasury's judgment proper to Dor
row in anticipation OF the income and
profits tax instruments payable Septem-
Der Is and December ID. and having
already sold UP to July ~ Treasury
certificates maturing March IL, 1890, to
the amount of a bout s276.o00. 900. so
that the limit of that issue also would
soon be reached, the time has come when
the issue of loan certificates should be
resumed.
To Issue Loan Certificates.
THE Treasury has accordingly deter
mined to issue loan certificates Of five
months maturity. and with view to
aiding the banking institutions Of the
country in the distribution of these GER
tificatea will issue the certificates on the
LIST and 18th OK each month. beginning
August 1. 1919, thus making the issues
semi-monthly and setting fixed dates in
each month on which the issues will
open
Treasury certificates, which at the be-
ginning of our participation IN the war
had no market outside Of the banking in
stitutions Of the country, have come to be
appreciated by a great and steadily In
creasing class of investors. Banking in
situations, on the other hand, which at
the outset were loath to sell certificates
to their customers, fearing loss Of de-
posits have come increasingly to realize
the wisdom and advantage of buying
and distributing the certificates. Those
Numbering some $1,000 which have
availed themselves Of the privilege open
to all Of becoming depositaries OF the
proceeds of the certificates purchased,
have found ample compensation in the
resulting deposits.
THE minimum an cunt OF each semi
monthly issue OF thu certificates should
not IN any case exceed $500, 000, 900, and
after September and during the balance
.f he 40 Ghn 1nf IN
average. exceed half OF that amount, for
then all tho Vlctor ~ Loan certificates
will have been pal 1 or provided for and
such progress shruld have been made in
army settlemer s and in Generalization
as greatly to .educe the requirements Of
the current Y.o6ramme That would
mean the issue during the remaining
five months of the calendar year OF GER
tihcates to the amount Of. say. $780,
900, 900.
During the same period there will
mature and be paid loans and tax GER
tihcates to the aggregate amount Of S2,-
es7,54o.b00, a net increase OF s502.459.-
800.
No More Popular Loans.
1.-THE figures which the Treasury IL
now able TO present seem fully to Justify
the announcement made In April that
tho Victory loan would be the last loan,
and the statement made in tho report to
the committee of Congress above re-
ferred to, that the Treasury expects to
Moods by the sale OF Treasury certificates
Of indebtedness bearing interest at the
rate of IN per cent or less. and also
TO fund as many Of these as II may be
desirable to fund by tho issue OF short
term notes in moderate amounts at con-
venient intervals whom market condi-
lions are favorable and upon terms ad-
vantageous to the Government.
1.-THE Federal Reserve banks will ad-
wise ali national and State banks and
trust companies in their respective dis
tricts Of tho minimum amounts Of GER
tificates they are expected to take from
time to time In pursuance Of this pro-
gramms, which should be not less than
1.6 per cent. of the gross resources OF
each bank and trust company for each
ssmi-monthly issue during August ana
September. and may fall an low as. say.
0.s per cont toward tho and of the cal
endar year.
'@rhe programme may be varied at OPP
perfume times by the substitution OF an
issue Of tax certificates or by an alter
native Offering of such certificates to
which no quota will be applicable.
at IS with confidence that / lay be-
fore the banking institutions which did
60 much to make our successful record
Of war finance possible. the present pro-
gramme of the Governments current re-
quirements for the balance Of the calen-
dar year. and ask each Of them not only
to subscribe its quota for each semi
monthly issue OF Treasury certificates
but to use its best efforts to distribute
these certificates as widely as may be
among depositors."