Saturday news. (Watertown, S.D.) 19??-19??, 1919-04-03
BONDS
TO Sell ABOVE
PAR, PREDICTED
Secretary Glass Asserts y. S. Sc
curities viii Be Bought on Mar
ket Above Face Value Before
Maturity. Is Confident Of Sue
cess Of Victory Loan,

sEEHA IN
cess Of Victory Loan.
By ARTHUR SEARS HENNING
Washington, April 3.-SecretatY Car
ter Glass today predicted that all lib
erty Loan issues would sell above par
before maturity and attrib,tted the dc
probation of previous issues not Is tsssa
interest rate, but TO purchases by patri:
otto persons Beyond their means the
reasticn from the arraistice and he OBJ
erations of stock swindlers.
Following conferences In he last
fortnight with numerous bankers and
traders in the war loan organization
Throughout the country, Secretary
Glass Indicated the conviction that it
will not be necessary to fix the interest
rate as high as 5 noer cent on any of
the classes OF short term bonds to be
floated in the forth coming Victory loan.
IN view of the recommendations OF a
5 per cent rate made by Chicago and
New York bankers. however, the secre-
ta18' has not definitely deeidsd upon the
terms Of any CT the securities and will
not do s. until the eve of the loan
drive, which opens April II. The bonds
now are being engraved with the inter
est rate left blank.
-Four Glasses Authorized
The loan act authorizes the. issuance
of any cne or more of four classes of
notes; maturing III from one to five
years the classes differing in The tax
exemption provisions. 1t is expected
each class will GEAR a different inter.
est rate.
In a reply to a letter from Senetor
w. M. Calder suggesting an Immediate
eau for congress to enact legislatien to
aid the Joan. Secretary Glass said that
as a result of his conferences he takes
"a very optimistic view Of the pros
poet for the loan and of the future o.
this country
Debt Fraction OF Resources.
Estimating the eventful natlonal debt
ut $40 ,00o, 0cu,0oo, offset by $40, 0oe, coo
600 due from .Allied nations, a net debt
Which is the barest fraction Of our ma.
tional resources" and small compared
with the debts OF the great European
powers, Mr.. Glass continued.
"Our reserve, the greatest in the
world, the greatest in relation to cir
culation and deposit in n of the coun,
tries which were engaged in tll,esyWar or
March 2S, 1919, was 51.9 per cent of the
combined federal reserve notes and dc
posits liabilities of the reserve banks
This compares most favorably with d
ceaayined Tvserve OF 48.S per cens OF
Nuv. s, 1918, just bafore the a1mistice
particularly ir view of the fact thai
since that date the governments CIV
penditures for the most part growing
out of the war, have approximate SO,
0c0,0Go ,0G0 the greater past of WHICH
has necessarily beer provided by TIE
sale of treasury certificates of inlett ted
ness.
Plenty of Credit and Gold
There is today no insufficiency o.
credits for the needs of many useful en-
terprises nor insufficiency Of gold tt
support OR credit structure There
never has been and never will be suci
of cash in the treasury to make ths
payments. The governments expendI
tures Which shortly after The arinistics
reached a maximum in excess of So. 900
600 900 in a month, should. after til,
war bills have been paid, shrink quick
ly back I say $4,000, 100000 a year. il
addition to the interest and sinking
fund charges o the public debt.
Since tho, aranistice the banking in
situations Of the country have respond
ed to the reaues. of the treasury /,
meet the current requirements OF tn,
government by spE-caiase5S9Nvs~stfeasM
certificates without any diminution O
their patriotic enthusiasm-in fac
tave made aeeessargtheAom.ss:nrAias
now % one OF the regular bfweekl.
offerings.
Approximately 81 100000, 900 Of In
come and croft taxes were paid int
HE treasury IN the period Of two o
three weeks before orr after March i
without financial disturbance:
How Deace-loying Russians mus
sigh VIXEN he1 thinks Of the old nilil
list daSs.Indainapolis Star.
Boishevild may reason that il stfies
can make al other naliong as rottet
Russia. then Russia will be as goos