South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-02-13
OFFICIAL SAYS
MONEY PROBLEMS
ARE NOT CRAVE
lSec'y Houston is Confident
European Financial Prob
lens viii be Settled.


WASHINGTON. Feb. 12-Cona-
dene that Europe's monetary prob
lens will be settled satisfactorily
was expressed today by Sec'y Hous-
Ton in a review OF tho international
financial situation. This country Us
constantly furnishing Europe CAPT
tai with which 70 reconstruct the
economic life Of nations there" said
bir. Houston explaining that adj
.vances are being made in the same
way that Europe aided this coun-
Try in time Of depression in the past,
not by government loans. so much
as by indirect methods such as
private loans. sale Of surplus army
equipment and the absorption of
high grade investment securities Of
fered in markets here by European
holders. lie estimated that Europe
had received approximately $4,000
900. 600 from this country since the
armistice was signed.
Treasury Strong.
The position Of the United States
sreasury was said by the secretary
ito be very strong and on Monday
the last Issue OF loan" certificates
OF indebtedness. about $60,000,0O0,
will be redeemed leaving no out
standing floating loan in the sense Of
short term certificates requiring to
he refunded at maturity. Tax certi-
fieates outstanding amounted 10 So
935. 949.50O AN of which Will be
paid by forthcoming income and
profit taxes.
Altogether. Secy Houston de-
'clined TO agree with the pessimistic
view Of some public men, who fore
east a financial crash. and asserted
that while there were many diff
Culties still 10 be overcome, there
was nothing in the situation TO be
regarded as extremely grave
Sec'y Houston's statement follows
sn part:
The rapid reduction Of govern
ment expenditure and realization Of
the surplus stocks accumulated for
war purposes have been important
factors in making possible the reduc-
tion of the floating debt and the
gross debt OF the government I'm the
past five months. The result OF the
elimination OF loan certificates and
the great reduction in the floating
debt and gross debt have both been
contributed 70 by the application to
the payment OF loan certificates OF
an important part Of the balance in
the general fund. which il had been
necessary TO retain at a high figure
as long as the loan certificates were
outstanding I'm order TO provide for
these frequent maturities and which
u was possible to reduce greatly in
connection with their retirement.
VIII Borrow
Although the treasury will. Of
course. be obliged to borrow from
time 10 time TO meet the current de-
ficit (Which in January amounted to
less than $4,000, 00O) in the inter
walls between income and profits tax
installment payments, and the cur
rent requireme nts OF the war fnan-
icial corporation, the fact that the
treasury has no uncovered maturity
is OF immense importance. SO long
as the treasury had certificates Of
Indebtedness maturing in very large
amounts and on dates when it could
fonly provide the funds 10 meet them
ply fresh borrowings. its position
Knight under certain circumstances
khave become embarrassing Though
az never did and It would conse-
kanently be impossible for the federal
~eserve board TO exert any effective
control over credit
Future Bright.
THE position of the treasury to-
tasy and the future OF the market
FOR the outstanding issues OF Lib
Arty bonds and Victory notes is very
kbright. The whole color of the pic
sture would, Of course, be changed II
koongress should embark upon new
expenditures on a large scale. The
whole problem today Is that of Civ
anR the people time and Will 70 save
Soapital sufficient 20 enable them 10
absorb that part Of the war issues
(which IS still owned or loaned upon
10y banks and as well the food OF
seoIritles which are being pressed
napon our markets from foreign
e0urces in consequence OF the ex-
s<eIne depression Of European ex-
Ehange"