Pine Bluff daily graphic., 1920-06-10
HOUSTON DECLARES J. 5. BOOKS SHOULD
 SHOW NO DEFICIT
Government Balances lis Rud. get First Time Since
 the War
GROSS DEBT UNDER
 TWENTY-FIVE BILLIONS
Further Reduction of Both Cross and Floating Debts During the Year is Foreseen by Treasury
 Secretary

Washington, June 9.-Secretary
 Houston, writing today to the bank
 CTS of the country, declared that the
 completed operations of the treasury
 for the fiscal year ending with this
 month should show little, if any, de.
 flcit, the government having about
 balanced it's budget, current receipts
 against current disbursements, for the first full fiscal year, after the fight.
 ing stopped"
 "Though the first quarter showed
 deficit of about S77O,OOO,OOO," MT
 Houston said, Gin the second quarte,
 there was a surplus of over $150000,-
 900 in the third quarter there was a
 surplus of nearly $400,O00,0OO and the fourth quarter should also show a sur plus.
 1 The total gross debt of the United States which on June 30, 1919, amounted to nearly $25,5o0 0,oo0,ooo and on August 31, 1919, reached nearly S26, 6,600,000,000 had been reduced on May 31, 1920, to les sthan $25,000,000,- 900. The floating debt outstanding (loan and tax certificates) which on June 30, 1919, amounted to over $3,- 25O,OOO,O00 and on August 31, 1919, to nearly $4,000,000,000 had been reduced on May 31, 1920, to less than $2,S5o,- OOO,O0O.
 "The reduced ordinary and public debt disbursements have made possi- ble very important reduction in the balance in the general fund, which has been applied to reduction of the debt"
 The secretary declared that both gross debt and floating debt would be further reduced by the retirement of nearly $1,000,0O0,0OO in treasury cer- tificates about July 15. Most of this will be paid in taxes falling due this month but to meet the balance and to provide for current requirements of the government up to July 15 the treasury has decided to ofefr about $4OO, 100000 in new certificates in two series, one bearing interest at 6 per cent maturing June 15, 1921, and the other bearing 3-4 per cent inter- est maturing January 3, 1921. Both series will be dated June 15.
 Discussing the outlook for the com- ing fiscal year, the secretary said there would be a further reduction of both gross and floating debts in the first two quarters and that unless ad- ditional burdens should be imposed by future legislation, there would be a great reduction in the last two quar- ters. /
 "The period since Notation of the victory loan," MT. Houston continued, "has witnessed great expansion Of comercial credits, but steady liquida- tion of United States government war securities. The federal reserve banks combined loans and discounts secured bv government war securities have been reduced by more than $4OO.OO0,- 900. though they have increasead their loans and investments about S1,2o0,- 100000. All reporting member banks (about 800 believed to control about 40 per cent of the commercial bank deposits of the country), have reduced their holdings of and loans upon Uni ted States government war securities bv about $2,OO0, 100000 but have in- creased with other loans and invest ments by about $4,OoO,oOo, o,oO0."