Bisbee daily review., 1919-04-02
FINANCIAL CONDITION
 OF COUNTY IS GOOD GLASS TELLS CALDER
No Extra Session Needed for Victory Loan; Expenses to
 Be Cut Soon

country and it's ability to float forth coming Victory Liberty joan was ex- pressed today by Secretary Glass, in replying to the suggestion of Senator Calder of New York that a special session of congress should be called to stop depreciation in the market price of Liberty loans.
 Far from agreeing that the decline in outstanding bonds might jeopardie the popular campaign for Notation of the Victory issue this month thereby tying up credits and forcing the banks to take the new bonds, MT. Glass de- clared that he was assured the treas ury's efforts to solve the financial )problems of the country would have the support of united and victo- rious people," Depreciation in bonds, he said ,has been the result of arti- ficial causes and he knew of no one who did not believe that all Liberty bonds would sell above par before majority.
 There is today no insufficiency of credit for the needs of any useful nor insufficiency of gold to support our credit structure" Secretary Glass 1 declared.
 Political Fight Echoed. ] Echoes of the political fight which occupied the closing of congress were contained in the secretary's reply, (which was in the form of letter to the New York senator He quoted from a speech by Senate rCalder on the Victory Liberty bond bill, in i which he declared that he saw no reason why we should feel certain of | the future"
 MT. Glass said there had been no adverse developments since the bill | was passed, which would make nee essary a special session as MT. Cal ] der advocated
 Already commerce and industry be- | gin to show signs of the renewed life | which must follow the removal of the l restraints and interferences which | war made necessary" MT. Glass said. | The war is won. Our present na- | tional debt of less than S25.OO0, ,OOO,- | 900 and our ultimate debt after the | war bills are paid, which ought not in | any event to exceed $50, ,O00, ,O0O, 900, | against which we shall hold some | S10,0O0,0O0 900 of obligations of for | eign governments, is the barest frac- | tion of our national resources. The | relation of our debt to our popuIa- ton and resources is small. indeed, l compared to that of any of the great countries of Europe
 Dollar at Premium.
 ''The discontinuance of government interference with the foreign ex- changes made possible by the cessa- tion' of hostilities has demonstrated the true position of dollar exchange, which not only is at a premium in relation to the currencfes of all of the European countries which were engaged nthe war, but has approach ed par or actually reported a pfe- mium with respect to the currencies of European neutrals.
 Our reserve at the greatest in amount in the world, the greatest in relation to circulation and deposit in any of the countries which were en- gagged in the war, was on March 2S. 1919, 51.9 per cent of the combined federal reserve note an ddeposit lia- bilities of the federal reserve banks. This compares most favorably with combined reserve of 49.S per cent on November 8. 1918. just before the armistice was signed, particularly in view of the fact that since that date the governments expenditures for the most part growing out fthe war, have approximated SS,O0O,OOO OOO, the greater part of which has necessarily been provided by the sale of treasury certificates Indebtedness to the banking institutions of the country.
 Expenses to Shrink
 The governments expenditures. E which shortly after the armistice reache da maximum in excess of S2- OO0,000,000 in a month, should after the war bills have been paid. srink quickly back to say $2,0OO,OOO,OOO a year in addition to the interest and sinking fund charges on the public debt This debt is widely distributed among perhaps 2O,OG0,OO0 of our peo- pie and involves merely payment by the taxpayers to the taxpayers we are fortunate above all the great countries of the world in having prac- tically no foreign debt.
 The liquidation which has taken place in Liberty bonds since the armi- stice, is traceable to other causes than the interest rate and terms of the bonds Foremost O fthese causes is the fact that many patriotic Ameri- cans, individuals and companies. sub- scribed for bonds in a spirit of pa-, triotic fervor induced by the war, sub- scribed for bonds in excess of their ability to hold. The lover sold" con- dition of the market for Hiberty bonds thus created was accentuated by the reaction following the armistice,