Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-30
cALLSFORFUND
FROM Certificate
Government Financing Need
Urgent-Suggestion for Z
Refunding Operations.

The Secretary of the Treasury hi
called on banks having the proeve,
Of the sale of November Is Treasw
certificates on hand to repay iui
the Treasury not later than Decor
Der 90 per cent of the balance
such proceeds.
Within the two weeks since the So,
OF this certificate issue the govern
ment has drawn down over 30 n
cent OF the proceeds of over 5000 GOO
oo0 certificates. The first call W,
Tor 20 per cent. the second for 3S u,
cent of the balance, then for SO y.
cent of the balance and now for /
per cent. thus emphasizing the neeS
of the government.
Ordinarily there would be no furtt<
| certificate sale before December Il.
which time large block of incou
tax certificates mature. and the fourf
installnent of income taxes is pa,
able.
Certificates may be needed to a.
sist the financing. 1t is within n
probabilities, therefore, that anoth,
issue may be put out between Deem
per . and 10, as the needs of the gov
eminent are eXacting.
Urge Adoption of Safe Policy.
In this connection comment mas
~ i"oi n!Hs ny Sldrk. CnlidS d Co,
.eadlng New York Stock Exchans
hrm. on the money market, and sus
eestions toward a safe and sane mr..
ICY which should be inaugurated h
the government" are decidedly intel
esting. e'
1T is evident that we have safep
PASSED the point of momentary COD
Germ as to the money market aST
Las to do with stock prices.
iAirSe Treasury operations ma
! from time to time cause temnorzy
stiHening of call loans, but this ir
| nuence viii likely now be only ten
| porary, as crop movement call "a
| credit is satisfied. and retail trade 4
! our great cities realizes that LIQUID.
| ton must be accomplished and na
! borrowing is taboo. -
II would seem we are CLOSE tn "A
point at which federal reserve ~
thorities will feel justified IN makiS
! REDUCTION in the rate of rediscount n
. oo.n commercial paper and loans 4
government obligations.
The time has come, with emerper.
Oh business from a trying period |
, money market affairs for All hapE
10 get together to impress mn
washington need for adoption
| some safe and sane policy OF fnan,
ana taxation which will at once q,
courage business in the period of a.
I
good system for Treasury control.
Urge longtime Funding.
There is growing sentiment /,
banking circles in favor of the idea ,
funding for a fixed and fairly In '.
! Term the floating indebtedness of III
treasury, now represented by abo,
Two and a half billions of Treasu,
certlhcates- Do it and have il over
We believe the big item the 90,
eminent must assume in settlene,
with railroads for guaranteed onera
ing income should be kept separa,
! from other. federal affairs, becau,
this is a closed transaction and do,
not concern needs Of the Treasury {,
the future ~
1t will of itself bring floating del
10 worry the new Treasury Secret.r
put it should be promptly assume
Let US look facts in the face. put a
best possible front and devise SOC
reasonable basis of taxation. r.
Treasury certificate maturity Deceu
Der Is will of itself bring sufficie,
| evidence of instability to make Mai
| the needs referred to. Goverpme,
deposits in New York banks are aga
/ down to negligible amount. wbir
| may help lower interest rates"