Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-04-02
CONF IDENT
VICTORY LOAN To
De TAKEN UP BY
GENE RAL PUBLIC
Declares Does Not Believe De-
probation of Former Issues
viii in Any Way Effect the
Coming Flotation,
REVIEWS FINANCIAL
STATUS OF COUNTRY
Shows That United States Is in
Far Better Condition Finan-
ciaIb Than Any of Great
Powers of Europe,
lsv .osnSe JOURNAL SPECIAL LEASED wrssi

Isy soNNlNe JOURNAL SPECIAL LEASED wtsEI
Washington, April 1--Confidence IN
the financial conditions of the coun-
ing Victory Liberty loan was expressed
today by Secretary Glass in replying
to the suggestion of Senator Calder
of New York that special session Of
congress should be called to stop de-
probation in the market price of Lib
erty Bonds.
Far from agreeing that the decline
in outstanding bonds might jeopar-
die the popular campaign for flota-
ton of the Victory issue this month,
thereby tying up credits and forcing
the banks to take the new bonds, Mr..
Class declared that he was assured the
treasury's efforts 10 solve the financial
problems of the country would have
the support of united and victor
ious people" Depreciation in bonds,
h 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
maturity.
There is today no insufficiency of
credit for the needs of any useful en-
terprise nor insuffsItncy of gold to
support onrf tredit structure" SeSre-
-eafs y1.aes Il Cared. y
business Improving.
ALREADY commerce and industry
begin to show signs of the renewed
life which must follow the removal
of the restraints and interferences
which war made necessary" the sec
retary said. The war is won. Our
present national debt of less than
$25, 600, ,000,000 and our ultimate debt
after all war bills are paid, which
ought not in any event to exceed
$50, 900, 900, 600 against which we shalt
hold some 100000, 100000 of oblga-
tons of foreign government, is the
barest fraction of our national re-
sources. The relation of our debt to
our population and resources is small
indeed compared to that of any of the
great countries of Europe.
The discontinuance of government
interference with the foreign ex-
changes made possible by the cessa-
ton of hostilitIes has demonstrated
the true position of dollar exchange,
which not only is at a premium in
relation to the currencies of all of the
European countries which were en-
gagged in the war but has approached
par or actually reached a premium
with respect to the currencies OF Eu-
ropean neutrais.
our reserve, 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 com bined
federal reserve note and deposit LA
bilities of the federal reserve banks.
This compares most favorably with a
combined reserve of 49.S per cent on
November s, 1918, just before the
armistice, particularly in view of the
fact that since that date the govern
ment's expenditures for the most part
growing out of the war, have approx
imated $S,000.000,O00, the greater
part of which has necessarily been
provided by the sale of treasury GER
tificates of Indebtedness to the bank
ing institutions of the country.
Expenditures to Shrink.
The governments expenditures,
which shsortly after the armistice
reached a maximum in excess OF
1000 100000 in month, should af-
ter the war bills have been paid,
shink quickly back to say $4,000
000,0 year i'm addition to the in
terest and sinking fund charges on the
public debt, This debt is widely dis
tributed among perhaps 10000, 900 OF
our people and involves merely a pay
ment by the taxpayers to the taxpay-
ers--for we are fortunate above all
the great countries of the world In
having practically no foreign debt.
The liquidation which has taken
place in Liberty Bonds since the arm
istice, is traceable to other causes than
the interest rate and terms of the
bonds. Foremost of these causes is
the fact that many patriotic Ameri-
cans, individuals and companies, sub
scribe for bonds ma spirit of patriotic
fervor induced by the war, in excess
of their ability to hold. The 'over-
sold condition of the market for Lib
erty Bonds thus created was accen-
| tuated by the reaction following the
| al mistice, which made many feel they
were released from the duty of hold
| ing their. bonds in aid of the govern
| ments credit; by the desire to real
| ize losses before the end of the year
| and thus reduce taxes; by the changed
I, financial positions of many bondhold
ers growing out fthe termination OF
hostilities; and. worst of ALL, by the
wicked devices Of bond sharps and
swindlers.
II believe that all these adverse
| influences have spent their force.
am sanguine to believe that the mark.
ct for Liberty Bonds has seen its
| worst and that the market position
of the bond will improve as true un-
derstanding of the immense strength
| of the financial position of the United
States becomes disseminated and az
] the Victory Loan proceeds"