Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-10
TREASURY DEFICIT
|SWH|TTLEDDOWN
Debt Lowered and Further
Reduction Expected, Secre-
tary Houston Announces.

The completed operations of the
Treasury for the fiscal year ending
this month show little, if any, def
icit, the government having about
balanced it's budget, current receipts
against current disbursements. for the
full fiscal year after the fighting
stopped" Secretary Houston states in
a letter to the bankers of the country.
Unless Congress imposes additional
financial burdens there will be decided
reductions in the public debt during
the coming fiscal year, the Secretary
said.
Though the first quarter of the
present fiscal year showed a deficit of
about s77o.0o0,Oo0," Mr.. Houston said.
! "in the second quarter there was
surplus of over s150,000.000; in the
third quarter there was a surplus of
nearly $400,000.000, and the fourth
quarter should also show a surplus.
Debt Reduced to 25 Billions.
1.-THE total gross debt of the
United States, which on June 80. 1919.
amounted to nearly s25. 500.000,000 and
on August 81, 1919. amounted to
nearly s26.6oo.ooo,ooo, had been re-
duced on May 81, 1920. to less than
$25, 900, 0OO, 900. The floating debt out
standing Qoan and tax certificates),
which on June 80, 1919. amounted to
over $3,25O, 100000 and on August 81,
1919, to nearly $4,000. 900. 900. had been
reduced on May 81, 1920, to less than
$2,S50, 100000.
1.-THE reduced ordinary and public
debt disbursements have made pos
81 BILE a very important reduction In
the amount of the net balance in the
general fund, which has been applied
to the reduction of the debt"
The Secretary declared that both
gross debt and floating debt would be
further greatly reduced by the re
tirement of nearly $1,0OO,00O.oO0 IN
Treasury certificates due about July
lis. Most of this will be paid out of
taxes falling due this month, but to
meet the balance and to provide for
current requirements OF the govern
ment up to July 10 the Treasury has
decided to offer about $400,O0O,O0O in
new certificates, in two series, one
bea ring interest at per cent and
maturing June Is, 1921, and the other
bearing So per cent interest and ma
turing January 8, 1921. Both series
will be dated June 10.
Further Reduction Expected.
Discussing the outlook for the COM
ing fiscal year. the Secretary said
there would be a further reduction
of both the gross and floating debts
in the first two quarters and that I'M
less additional burdens should be i'm
posed by future legislation there
would be very important reduction
in the last two quarters.
"The period of upward of twelve
months since the fioatation of the vic
tory loan" Mr.. Houston continued.
"has witnessed great expansion of
commercial credits, but steady liqui-
dalton of United States government
war securities. The federal reserve
banks combined loans and discounts
secured by government war securities
have been reduced by more than $780,
900 900, though they have increased
their loans and investments by about
81 zoo, 100000. All reporting member
banks (about 500. believed to control
about 40 per cent of the commercial
hank deposits of the country have
reduced their holdings of and loans
unon United States government war
securities by about $4,000, 100000, but
have increased with other loans and
Investments by about $4,000, O00, 0OO."