New-York tribune., 1919-06-02
'ahls to Put
L. s. Bonds Oh,
Constant Sale
Secretary Glass. Denying
Talk of New Loan Drive.
Says Projects fo, Raising
Funds Are Being Made
Netc York rijune

I
Washington Burecu
WASHINGTON, June l.-No new
bond drives will be made liz this coun-
try. but Secretary of the Treasury
Glass is considering a plan whereby
United States government bonds would
be kept constantly on sale throughout
the n~cion l means OF meeting gov
ernment expenses for which returns
under the revenue bill will be insult
cient to provide
No official calculation has vet been
made to show how tar Federal revenues
would run behind during the next fiscal
year if no new bonds were sold. but
the amount has been variously estimat-
ed by Congressional leaders dealing
with the problem Of finance at from
$1,000, 100000 to $4,000 900 600. Much
depends upon the degree Of economy
with which governmental expenditures
are made and upon the lengths to which
Congress is prepared to 90 in repeating
onsumption taxes and enacting new
taxes and tariffs.
by the Secretary of the Treasury would
be patterned after the method pursued
oy the British government during the
war IN having bonds "constantlv on
tap with Intermittent war drives. The
bonds would be placed on sale at post
Offices and every other distributing
agency at which war saving stamps
and thrift stamps now are sold.
The new securities probably would
be called notes. They would be
designed as a cross between the pres
ent war savings stamps and the Lioer-
ty bonds, their denominations running
as low as $25. The notes probably
would bear 4 70 per cent interest and
mature in from one to five years
Whether any new legislation by
Congress would be required TO permit
the Treasury Department to put such
plan into effect is question that is
now being studied by the Secretary of
the Treasury. The last bond authori-
zation act gave the Secretary wide dis.
cretion in fixing the rates Of interest
and dates Of maturity. The hotaton
Of the Victory Loan left the Treasury
Department with several billions in
bonds authorized bur as yet unsod
War savings stamps and thrift
Stamps, while asuccess during the war
when patriotism dictated the holding
OF these securities, are regarded by
high Treasury officials as failure in
the postwar period. Their sale is ex-
pected soon to be abandoned. Approx
mately $4,000 COO worth Of stamps is
being sold each month but tbo rro
visions of the act under which they
are issued permitted redemption of the
stamps at postoffices upon ten days
notice, and about 10000 0GO in stamps
Is now being redeemed each month. 1t
- costing approximately $500,000 q
month to maintain the thrift stamp
organization.
1t has been freely predicted at the
capitol during the past week by those
VINO have studied the estimates Of
expenditures during the next fiscal
year by various government depart
ments that there would have 30 be an
other popular loan drive Secretary
uiass stated positively when the last
driveopened, however, that there would
not be another after the Victory Loan
Was floated. The plan under consider
alton would reconcile the predictions
made at the Capitol more or less, With I
the Sccrctary's statement
Treasury Department officials rccog-
nizc that the continued sale Of govern
mont bonds during the read djustment /
period will necessarily interfere with
tho iiotation Of industrial securities,
but they sec no other way out