New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-06-18
DEBT IS TO Be REDUCED
NEXT ISSUE OF GOVERNMENT Sc.
cURITlES WILL BE HIGHER.
BlLLlON-DOLLAR DEBT NATURES
ON JULY IS, SAYS SECRC
TARY HOUSTON.

Washington. June 10 -ConstaHtll
increasing difficulties in fnancin.
the needs OF the government are indi
Gated by an announcement by Score
tary of the Treasury Houston thai tn,
next issue of treasury certificates viii
bear interest of "a and & per cent
This is the high"si rate yet paid by
The government. Last months issu
of certificates bore interest AT The rate
of "a per cent. which was the record
figure up To that time. There has been
a steady advance from a rate of A.!
Der cent.
In "A letter sen 10 bankers through
on the country urging their c0-opera.
tion in obtaining the widest po>Sibll
distribution of the new issue of ccrti-
ficates among investors, Secretary
Houston explains that treasury %certifi-
Gates TO the amount of nearly $1,000
100000 will mature on or brfor,
July 70.
The secretary said that while The
greater part of these are provided for
by the income and profits tax INSTALL
'ncnt payable in June, it would b" nee
"SSaTy to dispose of treasury r%rrtiti-
catcs totaling approximately Sl0o,0jD,
300 10 refund the balance and prorid"
FOR current requirements up Ia that
rate.
The new certificates are issued in
Two series, both dated Jun" II, II OF
them bearing interest tat the rate of
"a per cent and maturing Jan. :, 1871,
and the other bearing interest At & per
cent and maturing June IL, 1871.
In his letter to bankers Secretary
Houston said that during the first
quarter of the fiscal year ending June
30, 1880, there was a deficit of about
S77O,Ho1,000; in the second quarter
there was a surplus of over SlOo 900,
nhu, and the present quarter SHOULD
also show n surplus,
The complete fiscal years opera
tions should show l%ittl,, if amy, deficit,
IA" government having about balanced
its budget, current receipts against
current disbursements. for the frs;
fun 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 Ia nearly So oo.ooo,oOo
and on Aug. 81. 1919, 10 nearly S2d,-
,O0. oop,OO0, had been reduced on May
~. 1890, To less than S21,ooO,oOo,oo
The floating debt outstanding loan
and tax certificates, which on June 80,
1919, amounted To over S2,2-o,oonOOo,
and ON Aug. 81. 1919, to nearly $1,000
UOO,OO0, had been reduced on May II,
1870. to less than S2,S50,O00,Ooo.
The reduced ordinary and public
debt disbursements have mad" posi-
bic a very important reduction IA the
amount of the net balance of the gen
eral fund which has been applied 10
the reduction OF debt"
Secretary Houston said hc believed
there would he a further reduction of
both gruSs debt and floating debt dur
ing the first two quarters of the com
ing fiscal year and q very important
reduction in the last two quarters.
Commenting on the great expansion
of commercial credits during the last
wear, Secretary Houston noted that
while the federal reserve banks com
bined loans and discounts secured by
United States government war Sccuri-
lies have been reduced 10y more than
SiOu,UDD.0O0 their other loans and in
NrStments have been increased 10y
about 81, 2p0,UoO,Uo0.