Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-02-13
LAST REMAINING
FLOATING DEBT
Of j. s. To Be
REDEEMED SOON
Secretary Houston Says the
Condition of the Treasury
S Very Bright and Sees
No Cause for Alarm.
RECONSTRUCTION IS
GOING ON IN EUROPE
Much Has Already Been Ac-
compIiShed Abroad in the
Way of Repairing the In
jury Caused By the War.

''NJ " l'SCUh us wv III
jury Caused By the War.
lsN MORNING JouRNAL SPECIAL LEASED wiREI
Washington. Feb. 12.-Announc-
ing that the last remaining floating
Indebtedness Of the government
would be redeemed Monday Secre-
tary Houston said the condition Of
the treasury was very bright" and
that government officials saw moth
ing In the present financial situa
tlon which they would regard as
extremely grave.
only about $4,000, 600 of short
term certificates requiring to be
refunded at maturity remain to be
redeemed. Outstanding tax certifi-
Gates, issued in anticipation of in
come and profits tax installment
dates for the purpose of relieving
the quarterly strain on the banks,
amount to $2,935, $40, 500 but in no
instance exceed the estimated
amount of taxes and accordingly no
funds will have to be provided to
meet them.
people lose sight of the many
ways in which we have been assist
| ing Europe since the armistice,"
| Mr.. Houston said.
! I'm addition to government
| loans, we have furnished them
| $500, 100000 worth of surplus army
supplies, $100,000,000 for food re-
lief. probably S4O0, ,OO0,O 600 in pr-
vate loans to foreign bankers and
| n considerable amount of accrued
interest on the government loans,
so that the total probably would
read 100000, 900. In addition
Europe has been sending securities
| here"
| from Europe indicated that "recon-
struction was goinr on while they
were talking about it," citing the
rebuilding of French railroads and
| bridges as q notable example
of what has been accomplished.
AS to the domestic situation, he
| pointed out that approximately
! $1,000, 100000 would be spent this
year and next in road building un-
| der arrangements made while he
was secretary of agriculture and
that building permits, always
good index of business conditions,
indicated that the country was rap
idly making up the shortage of
houses caused by the cessation of
construction during the war.
Secretary Houston's statement
follows in part;
"The rapid reduction of govern
ment expenditure and realization
of the surplus stocks accumulated
| for war purposes have been impor-
| tant factors in making possible the
reduction of the floating debt and
1.-THE gross debt of the government
| in the last five months. The result
of the elimination of loan certifi~
Gates and the great reduction In the
| floating debt and gross debt have
been contributed to by the applica-
ton to the payment OF loan certifi-
Gates of an important part of the
| balance in the general fund which
| it had been necessary to retain at
a high figure as long as the loan
certificates were outstanding in or
der to provide for these frequent
maturities and which 1t was possi-
BILE to reduce greatly III connection
with their retirement.
although the treasury will, OF
course, be obliged to borrow from
time to time to meet the current
deficit (Which in January amount
ed to less than sg3,000,000) in the
intervals between income ana
profits tax installment payment and
the current requirements of the
war finance corporation, the fact
that the treasury has no uncovered
maturities is of immense impor-
tance. SO long as the treasury mad
certificates of Indebtedness ma
turing in very large amounts ana
on dates when 1t could only pro-
vide the funds to meet them py
fresh borrowings. its position might
under certain circumstances nave
become embarrassing (though u
never did0 and 1t was consequently
impossible for the federal reserve
board to exert any effective control
over credit.
THE position of the treasury to-
day and the future of the market
for the outstanding issues of LIB
erty bonds and Victory notes IS
very bright. The whole color OF
the picture would, of course, be
changed If congress should embark
upon new expenditures on a large
scale The whole problem today
is that of giving the people time
and will to save capital sufficient
to enable them to absorb part OF
the war issues which Is still owned
or loaned upon by banks and as
well the flood of securities which
are being pressed upon our mar
kets from foreign sources in con-
sequence of the extreme depression
in European exchange.
"In that connection. 1t is inter-
esting to observe that the depres-
sion In high grade investment se-
curities in this country at the pres
ent time is to a very important ex-
tent the result of heavy selling OF
such securities in our markets
from foreign sources. This, as
Secretary Glass said in his annual
report, is one of the processes
which Is stimulated by the very 'po-
sition of the exchanges which 1t
tends to correct By absorbing
these high grade investment securi-
ties, the American people are fur
nishing capital to Europe at time
of Europe's need and are giving
this help in just the way that Eu-
rope helped America in the period
of Americas, growth and of her
own monetary troubles.
I'm the days of the infancy of
A 4. Il fx< he a. - -,