New-York tribune., 1921-03-09

hearing 5% per cent interest and
maturing March Is, 1922.
"On the basis of the Treasury daily
statements, the current operations OF
the government during the first eight
months of the fiscal year through Feb
ruary 2S, 1921. show q net current
over ordinary disbursements) amount
ing to S1s6,115, ,b05.63. Ordinary re-
ceipts up to February 2S. 1921, have
amounted to $3,433,4l1,141.36, as
against ordinary disbursement during
the same period of s3,247 ,295 ,6S5.88 Cor
at the rate of almost s billions year,.
"Of these disbursements about $780,
100000 have represented expenditures
of the War Department, about $780,
100000 expenditures of the Navy De-
partment, about SAFE, 100000 payments
to the railroads under the transporta-
ton act. 1920 and about $3.50 100000
payments of interest on the public debt
"a total of about $2,225 900, 900 under
these four main headings. In the four
months which remain of the fiscal year
there will be two further quarterly
payments of income and profits taxes,
both based on the business of the
calendar year 1920.
''The gross debt Of the government
on February %, 1921, amounted to $24,-
051 ,6S4, ,72S.2S. on the basis of Treasury
daily statements, while on the same
date the floating debt (loan and tax
certificates unmatured) amounted to
S2,4S4, ,032 900. These figures contrast
with q gross debt on December 81, 1920,
OF S23, $50 ,224 6S.16, and floating debt
on the same date of $4,000 656, 600. AS
a result of the Treasury's operations on
March Is, 1921, these increases in
gross debt and floating debt (Which are
to be expected in the odd months, when
no quarterly income and profits tax
payments are made) should be largely
Offset and perhaps overcome.
Heavy Payments Due
1.-THE progress to be made during the
balance of the current year in the re-
tirement of gross debt and floating
debt will depend, of course, upon the
/. extent of the demands made upon the
Treasury and the volume of its re-
ceipts from tares and salvage This
progress is likely to be seriously linn
tied by reason of the heavy railroad
payments to be expected during the
next two or three months.
The period which has elapsed since
the last quarterly installment of in
come and profits taxes has been marked
by important Developments in the mar
ket for Treasury certificates of indebt
edness. On January Is, 1921. the
Treasury successfully sold an offering
Of three month 51a per cent certificates
and nine-month 5a4 per cent certif-
Gates. On February Is, 1921, an offer
ing of five-month 5lA per cent certifi-
Gates was likewise promptly oversub-
scribed.
The last three months also have
been marked by still further distribu
ticn Of Treasury certificates among in
vcstors and a reduction in holdings Of
Treasury certificates by banks. The
reporting member banks Of the Fed
eral Reserve system (abou. S25 banks
in leading cities, which are believed
TO control about 40 per cent Of the
commercial bank resources Of the
country and to have subscribed in the
first instance for about 75 per cent of
the Treasury certificates of indebted
ness now outstanding held on Febru-
ary 25, 1921, only about $235 900 900
of Treasury certificates, as compared
8 ith reported holdings on November
26. 1870 of about S5130 600 and on
February p, 1920. Of about $4,000 600.
lon March !, 1921, the Federal Re-
pledged with the Federal Reserve
Banks only about S110, 100000 of treas
ury ccrtih Gates to secure loans and dis
counts, or less than 5 per cent of the
aggregate amount Of loan and tax GER
tiiicaJes then outstanding. These fig
ures strikingly show the success OF
the efforts which have been made for
the past year or more to secure dis
trihutlon of treasury certificates among
real investors, and to keep them out Of
.he banks.
The two series of six months and
twelve months certificates now offered
are both acceptable in payment of in.
come and profits taxes, and should
prove peculiarly attractive to tax pay
ers as well as to persons having idle
funds awaiting investment. I know
that ! can count, like my predecessors
III office, on your hearty cooperation
in the distribution and sale Of treas
ury certificates, and hope that, as in
the past, you will subscribe literally
IN the first instance for the certificates
and use your best efforts to- recall
them to investors"