Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-02-13
HOUSTON DECLARES
WORLD NOT FACING
F|NAAClA! CRASH
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"The rapid reduction o; govern.
ment expenditures and rclaizai'oa
OF the surplus stock accumulated for
var purposes have been important
actors in making possible thc -
dueticn Of the floating debt and tie
gross deb, OF the government IN
the past five months. Tho result Of
the elimination OF loan certificates
and the great reduction IN the float.
Ing debt and gross debt have bota
been contributed TO By the applici.
ton 10 the payment OF loan cerii-
fica,cs OF an Important part OF the
balance In the general fund which
u had been necessary 10 retain az
high figure as long Us the loan ccrtl-
ficates were outstanding In order &c
provide for these frequent matur.
tiles. and which Il was possible 10
reduce greatly IN connection with
their retirement.
81, WIN Negotiate Loans
ALTHOUGH the treasury will. @.
course be obliged 10 borrow from
time 70 time 20 NEE; the current de-
ficit (which IN January amounted 10
less than $4,000 .0O0) IN the inter.
vaIs between income and profit tax
insfsilment payments. and the cur.
reir requirements Of the var finance
corporation. the fact that the trea-
sury has no uncovered maturity IL
OF immense Importance SO long as
the treasury had certificates OF 10
dehtedness maturing In very large
amounts ana on dates when IL could
only provide the funds 20 meet then.
by borrowing fresh funds. Us pod.
ton might under certain eircum.
stances become embarrassing al.
though II never did, and Il was cor.
rectly Impossible fer the federal re.
serve board 20 excr; any effective
control over credit.
Position of Trrausry
THE position OF the treasury 10.
day and the future Of the market for
the outstanding issues OF iher,y
bonds and victory notes IS verS
bright. The whole color OF the pie.
fure would OF course. b. changed IN
congress should embark upon new
expenditures on n large scale. The
whole problem today IL thai % civ.
ing the people time and will To save
capital sr.ilelon, 70 enable them 10
absorg that part OF the var issues
rs;sk ~ .oiill Owned or loaned upon
BY Ninks and ne well tile flood Of
socarities which are being pressed
upon our markets from foreign sour.
Co.'S In question OF the extreme de-
preston In. European exchanges.
Heavy Socurit, Market
In that connection II Is interest.
Ing 10 observe tho impres sion In
high grade investment securities IN
this country q, the present time q
70 a very important extent the re.
suit OF heavy selling Of such scear
tiles In our markets from foreie1
soarens. TAI. IS Secretary Glas
said "a his annual report, T. one Of
the processes which. stimulated b,
the very position Of The exchane
which II tends 10 correct. ~ 40.
eorblng these high grade investment
securities the American people ar
furnishing the capital 10 Europe AZ
TINE OF kurope's need aud are giving
help In lust the way that Europr
holped America In the period OF Am.
efies's growth and OF her own mon.
etary troubles.
Europe Add America
I'm the uays ~ the infancy n, ~,
republic. In the days Of our civil wa-
and OF the period Of reeousirue,lor
sfter the Civil War. "a the mone,ar,
panies which we suffered p, go.
qnent intervals until the es,abllsb.
meni OF oar federal reserve sys,em
America suffered greatly for !nek ii
capital and credit and because % no,
Deprecated currency and later. Be,
ineiasfle currency. In those dav,
Europe came 10 Americas aid. NJ
oy government loans. not with an,
comprenhensive plsn. but by the m
vcstmeni o. private capital upon nj
trsefiss terms In American enter
prise and IN the purchase OF Amer
lean securities AZ bargain price
EUROPE profiied enormously by ,hes
investments and America priltet
TOO. because she obtained the capita
she needed al the price the capita