The Idaho Springs siftings-news., 1920-06-11
U. s. NEEDS FORCE
INTEREST up
NEXT ISSUE OF GOVERNMENT sE-
lcURlTIES WILL BE At
HIGHER RATES.
DEBT IS TO Be REDUCED.
sILLioN-DoLLAR DEBT NATURES
s. ON JULY IS, SAYS SEcRE-
TARv HOUSTON.
western Newspaper Union News Service.

w eStefn newspaper mon NEWS SERVICE.
Washington, June 1O.-Constantly
increasing difficulties in financing
the needs of the government. are indi-
Gated by an announcement by Secre-
tary of the Treasury Houston that the
next issue of treasury certificates will
bear interest of 5A and 6 per cent.
This is the highest rate yet paid by
The government. Last months issu =
of certificates bore interest at the rate
of 5h per cent, which was the record
figure up to that time. There has been
steady advance from rate of Az
per cent.
In letter sent to bankers through
out the country urging their co-Opera-
ton in obtaining the widest possible
distribution Of the new issue of certi-
ficates among investors, Secretary
Houston explains that treasury certifi-
Gates to the amount of nearly x1,OO0.-
OOO,OOO will 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
essary to dispose of treasury certiff-
Gates totaling approximately S4O0,OOO,-
600 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 IA deficit of about
S77O, O,00000O; in the second quarter
there was Il surplus of over S4OO. .OOO,-
100, and the present quarter should
also show II surplus.
"rhe complete fiscal years opera
tions should show little, if any, deficit,
the government having about balanced
its 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 S25,5OO,OO0UOO
and on Aug. 81, 1919, 10 nearly x26,-
81, 1920, to less than S25,OO0,O00.O0O.
The floating debt outstanding loan
and tax certificates, which on June 30,
1919 amounted to over $3.50, 600, 600,
and on Aug 81, 1919, to nearly $4,000
OO0, 900, had been reduced on May 81,
1920 to less than S2.S50, 100000.
..The reduced ordinary and public
debt disbursements have made possi-
BILE very important reduction in the
amount of the net balance of the gen.
eral fund which has been applied TO
the reduction of debt
Secretary Houston said he believed
there would be n further reduction of
both gross debt and floating debt dur
ing the first two quarters of the COM
ing fiscal year and 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
bined loans and discounts secured by
United States government war securi-
lies have been reduced by more than
$4OO, 100000 their other loans and in
yestments have been increased by
about O0,OOO,0O0.
The new certificates are issued in
two series, both dated June -, one Of
them bearing interest aat the rate of
~ per cent and maturing Jan. 3, 1921
and tile other bearing interest at per
cent and maturing June 10. 1921.