The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-09-08
SEC. GLASS Announces
NEW FINANCING PLAN
Congratuiatex Bankers of Nation and
States That Government Needs
Are Being Met.

In letter to all banks and trust
companies throughout the L n e d
States. Carter Glass. secretary of the
treasury, has today modified the pro-
gram Of government financing AT the
same time. Mr. Glass extends congrat
ulations to the banks for the way they
have Loyalty met the government needs.
1t is because of this display OF loyalty
that the new plan is made possible.
Instead of the usual semimonthly
offering of loan certificates. two new
tax series. Ts maturing March Is.
1920, and Ito. maturing September Is,
1920. will be offered. The former will
bear interest at the rate of four and
one-Guarter per cent and the latter
four and one-half per cent semi-an-
nually. 1T is not possible" says the
secretary. TO say definitely when semi
monthly issues of loan certificates will
be resumed, nor upon what terms they
viii he issued, but such issues will
certainly not be resumed before Octo-
Der Is. and the minimum amount Of
fered will not exceed $3.50 900. 600
These notifications are made possible
because of the success OF recent
issues of treasury certificates the for
tunate cash position of the treasury at
the moment, and the reinvestment de-
mand which will result from the pay
ment of so large an amount of eerti-
ficates on or before September Is"
Secretary's Statement.
The secretary's statement to as fol-
lows:
The third .semi-monthiy issue of
treasury certificates of Indebtedness.
Series cisco, in pursuance of the pro-
gram outlined in my letter of July IS.
1919, was in accordance with the an
houncement made on August IS, 1919.
offered without asking the banking
institutions of the country to sub
scribe for any specified quota The
treasury felt confident that these GER
tifcates could be sold in amounts
duced needs OF the government with
out assigning the usual quota to indi-
vidual banking institutions. This con-
fidence was amply justified by the
event.
The certificates of Series cisco were
dated September 2 and subscription
closed on September 3. the following
day The aggregate amount of certi-
ncates OF this series subscribed for
and allotted was s57s,s41,50o, sum
greater by about $4o.0o0.oo0 than the
amount subscribed for either OF the
two preceding issues. which had
definite quotas assigned and remained
open a week after the date of issue.
This aggregate was in excess OF the
Immediate requirements of the treas
ury. but allotment was nevertheless
made in full upon ali subscriptions
made on the date OF issue and the day
following, in order not to disarpolnt
those subscribers who had presented
their subscriptions with reasonable
promptness: and the opportunity was
taken to redeem on September Is the
certificates of Series VK maturing oc-
tober I. 1919 tthe last OF the certifi-
cate issues in anticipation of the vic
tory. loan). The redemption Of these
certificates should have benencial
,effect in connection with the large pay
on September Is.
The aggregate amount OF treas
ury certificates of Indebtedness still
outstanding on August 30th of the
several series maturing or called for
REDEEM ption on September 9Th and
18th. 1919. was .7ss,041.500. This
entire sum (which has since been re
duced by exchanges and cash re-
demptions, is provided for from
cash In bank and income and profits
taxes due september 18th, leaving
an ample balance in the general funds
There remain no maturities of GER
tificates to provide for prior to 1920,
AZ the certificates maturing Decem
Der 18th are more than covered by
the income and proht tax installment
due on that date.
I'm the month OF August just past
ordinary and special disbursements
exceeded ordinary receipts by less
than $500. 000.0 900. In September, be-
cause of the income and profits tax
installment payment, ordinary re-
cetpts should exceed ordinary and
special disbursements by approx
nateiy $500. 100000. The success OF
recent issues of treasury certificates,
the fortunate cash position OF the
treasury at the moment and the rein
veAtment demand which will result
from the payment Of 50 large an
amount OF certificates on or before
September 18th create a situation
which should be awaited Of to make
m important step forward In fnanc-
Ing the debt growing out Of the war.
Program MAY 10 Varied
@ I'm my lsttsr July 3Jths above -