Carrizozo outlook. [volume] (Carrizozo, N.M.) 1910-1945, 1920-06-18
NEXT ISSUE OF GOVERNMENT ga.
cuRlTlEs WILL BE AT
HIGHER RATES.
DEBT IS TO Be REDUCED
elLLIoN.poLLAR DEBT NATURES
ON JULY IS. SAYS sEcRE.
TARY HOUSTON.


Washington. June lO-CGnstantly
Increasing difficulties In financing
the needs Of the government nre indi-
,ated by an announcement by Score.
larry Of the Treasury Houston that the
next issue OF treasury certificates will
bear interest Of az and o per cent.
This Is the highest rate yet paid by
The government. Last months ISSUE
" certificates bore Interest at the rate
Of ~ per cent, which was the record
figure M 10 that time. There has been
= steady advance from u rate of AZ
per cent.
In a letter sent 10 bankers through
out the country urging their co-opera-
ton In obtaining the widest possible
distribution OF the new issue OF certi-
flcntes among investors. Secretary
Houston explains that treasury certifl-
Gates 10 the amount of nearly $1,000
OOO,00O viii mature on or before
July 10.
The secretary said that while the
greater part Of these are provided for
by the income and profits tax INSTALL
nent payable In June, II would be nee
essury 10 dispose OF treasury certifl-
Gates totnllng approximately $40O,OOO,.
900 TO refund the balance and provide
for current requirements up to that
rate.
In his letter TO bankers Secretary
Houston said that during the first
quarter Of the fiscal year ending June
30, 1920, there was n deficit Of about
ST70,OOO,OO0; In the second quarter
there was II surplus Of over $4OO,OOO,-
900, and the present quarter should
also show a surplus.
"The complete fiscal years opera.
tions should show little, II any, deficit,
the government having about balanced
It's budget, current receipts against
current disbursements, for the first
full fiscal year after fighting stopped"
said Secretary Houston In the letter.
'The total gross debt for the United
States, which on June 30, 1919, On the
basis OF treasury daily statements,
amounted to nearly $25,500,OO0 900
and on Aug. 81. 1919, to nearly $780,
GOO,OOO,OO0, had been reduced on May
81, 1920, TO less than S25,OO0,OOO,OOO
The floating debt outstanding loan
and tax certificates, which on June 80,
1919, amounted TO over S3,25O, 100000,
and on Aug. ~, 1919, to nearly $4,000
100000, had been reduced on May 81,
1920, to less than S2,S50,0OO. 900.
'"The reduced ordinary and public
debt disbursements have mnde posi-
bile a very important reduction In the
amount Of the net balance of the gen
eral fund which has been applied 10
the reduction Of debt
Secretary Houston said he believed
there would he a further reduction Of
both gross debt and floating debt dur
ing the first two quarters of the com
ing fiscal year and u very important
reduction IN the last two quarters.
Commenting on the great expansion
of commercial credits during the last
year, Secretary Houston noted that
while the federal reserve banks com
blned loans and discounts secured 10y
United States government war securl'
lies have been reduced by more than
S4On, UOO,OO0 their other loans and In
vestments have been increased by
about $1,000, 100000.
The new certificates are issued In
two series, both dated June 10, n OF
them bearing interest aut the rate OF
5% per cent nnd maturing Jan. 3, 1921
and the other bearing interest at o pei
rent aud maturing June 10, 1921.