New-York tribune., 1919-09-08

the government without ASSIGNING the
usual quota to individual banking in
stltutions.
Confidence Fully Justified
This confidence was amply justified
hy the event. The certificates of Series
c. 1920. We're dated September 9. and
subscriptions closed on Saptembcr 3
The aggregate amount OF certificates Of
this series subscribed for and allotted
was - Sal 800, sum greater by
about S4O,O00,00o than the amount sub
scrlbed for either OF the two preceding
ISSUES, each of which had definite quota
assignments and remained open a week
after the date Of issue
inns aggregate was in excess of tn =
immediate requirements OF the Treas
ury, but allotment was nevertheless
made IN full upon all subscriptions
MADE on the date of issue and the day
following, in order not to disappoint
those subscribers who had presented
their subscriptions with reasonable
promptness; and the opportunity vas
taken to redeem on September Is the
certificates Of Series V X, maturing
October 7, 1919 (the last of the certii.-
Gates issued in anticipation Of the Vic
tory loan). The redemption Of these
certificates should have beneficial
effect IN connection with the large pay.
ments of income and profits taxes due
on September Is.
'Ihe aggregate amount Of Treasury
certlticVatcs OF Indebtedness still lout-
standing on August 80 of the several
series maturing or called for redemp-
ton on September 9 and 10, 1919. was
$1,199 0a1 800. This entire sum (Which
has since been reduced by exchanges
and cash redemptions) Is provided for
from cash in bank and income and
profits taxes due September Is, leaving
fund.
'Therc remain TO naturities Of Ger
tifcates to provide for prior to 1920.
as the certificates maturing December
- arc moro than covered by the income
and profits tax instalment due on that
date
in the month Of August just passed
ordinary and special disbursements ex-
ceeded ordinary receipts by less than
5000, 100000. In September, ocrausc OF
the income and profits tax instrument
payment, ordinary receipts should ex-
ceed ordinary and special disbrrse-
ments by approximately S50OoOO, 900.
The success Of recent issues Of
Treasury certifcaOe Oes, the fortunate
cash position Of the Treasury at the
moment and the reinvestment demand
which Will result from the payment Of
SO large an amount of certificates on
or before September IS, create a sit
uation which should be availed Of to
make an important step forward in
financing the debt growing out of the
war. In my letter Of July 25, above
referred TO, indicated that the Treas
ury certificate programme might be
warned at opportunn times by the sub
stltuflon Of lsgues of tax certificates.
This obviously is an opportune time.
and accordingly the Treasury is offer
ing two se1les OF so-caIlrd tax cnrtif-
lcates- both dated September Is. 1919,
Series TO, maturing March IS, 1920,
and bearing interest at ths rate of
l Ii per cent and Series Ito, maturing
September Is, 1920, and bearing in
te1est a. the rate of AZ per cent semi
annually 1t IS not possible to say def
lnltely when srmi-monihly issues of
loan certificates Will be resumed nor
upon what terms they viii be issued: ::
but such lasors Will certainly not be
resumed before October Is, and the
minimum arnuua. offered should not
exceed $40 ,000,000- In view Of the
Important fact that now for the first
time IN over q year certificates (of
series TO maturing March l5) are Of
| deem II proper 10 say that. if here
after certificates maturing on or be-
tore March Is, 1920 should be issued
bear ng interest at q higher rate than
"A per cent, certificates OF Series T.
VIII be accepted al par with an ad-
lnstment % accrued interest in pay
ment for certificates Of such series
which may he subscribed for and AL
lottcd-
Appeals TO Bankers
u hope that each and every bank
lng institution in the United States
VIII not only subscribe literally for
one or both issues Of tbs ccrtiGcates
now offered, but also will usa its best
endeaVors 70 procure the widest poa-
siple redistribution Of such certificates
among investors
THE certificates, although acceptable
IN payment o. income and profits taxes
payable at maturity, are, rs you know.
payable IN cash when they mature and
should MAKE vide appeal to in
vestors generally because of their valu-
able exemptions from taxation and at
tractlve maturitles. The success of
these issues wiz be an important ad-
vance in the process Of financing the
war debt IN such way as to avoid
the necessity for great rcfunding op-