Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-05-12
71-2 BILLION BOND ISSUE
PROPOSED BY TREASURY
Funds Required to Meet Oblisa-
tons of the Government MAJ
turing in Next Two Years.
MELLON CONSIDERS PLANS
Loans Will BE Refunded Instead of
Paid, and for This Purpose la
yorablc Rate OF Interest Will he
Allowed.
MELLON CONSIDERS PLANS
ily John GirtS>nrr.
IIui,cd Nsws stan Correspondent.

UnitI1 News stan Correspondents
WASHINGTON. May ia new IS
sue of government bonds. in the
amount OF ST.5oo,eoo,ooo is in PROS
poet.
Tho issue is required 20 meet ohli-
cations Of the government matu!T.
ing during tho next two and hali
iigatiouS WIN b. refunded. instead Of
paid. and for TINS purpose bonds viii
bc issued At :. favorable ra;e o: IN
tcrest. maturing seNc;"i years hence
The total Indebtedness Of the govern
ment viii not he increased by the or-
Grafton Its ,ilect viii he to deter
payment until the financial SITUATION
4" Pay victory Loans.
The short-dated de7t INCLUDES the
victory loan. amounting 20 S4.t4Y.72i.-
zoo: Ccritiiyates Of indebtedness to-
falling S2.7Tl,2Ts.+io, and WAT SAVINGS
certificates IN tho HrHovut ot S5gS,SS2.-
436--a total - S71l4,SN1,5>s
II those debts were paid, IL would
he necessary 10 raise 'Uc SUM nN
taxation, aud leader, N Consre,,,s -
have cob u,sd this Is no; pritt,,a-
bic various activities of the
eovernine',. leaving the deb; out OF
account. Will cost Si0eNoyN.n3o an
nuallS FOR the max; Two 81 thrto
years. ana j; IS consila~pd imposs ihle
to levy tho added billions needed for
debt retirement
cengrcss Is now haylrE d!tiieu,,E
revenue for the cUr-cu, operations Nt
the roernmeut. without i'npos in=,
hardsh!pc.
w Wi, haye % rs e.5, ne cnl j,
House WAYS aud Means Committee
told tho writer. There Is no way
they could ne ne; by taNatio-
Mellon Considers Plans.
Secretary Mellon. /: = understood.
IS giving his attention - ;he prob
lem. and is working out details Of a
scheme which eventually WI! be put
before Congress. There is 10 diS0o-
sit!on for haste, because q the bust
ness depression. and the condition II
the money market The ne
would hc less iucl!ltG,; to caGse a DIS
turhancc at later date. X : ar
Eucd.
Holders q maturing seeurlt.es. :; is
lieu 81 payment new bonds bear ~
q slightly higher rae az interest.
Where payment is oHSfTed. bonds
would hc sold 70 make this possible.
Chairman Good. %, the House Ap-
nropriatirns Committee. likewise IA
vors the funding process
The Obligations maturing within
the next i~o and half years would
DE funded by tho safe of LONGTIME
bonds an Favorable terms" ne said
in tho past j., has been N. policy
az the government 20 psy our short.
time certificates 81 Indebtedness and
ali ether maturing obligations by TAX
alton. Moreover. :he government; has
attempted 10 maintain the price GF
Liberty bonds at something near their
I'ar value through the purchase O:
such bonds"
Good pointed ont that bonds which
would not mature ror a number Of
years. hay. h"cn retired In tho amount
OF sl.65S n0G noe
"Ohvious ne said. we cannot
maintain to- Selling pr.Cn 81 I.ih"r'y V
bonds ~ their par VAIN. by ANY. such
pqlLc:, nor should we lax the people
years an amount sufficient to pay So
0oooo.oor = year To carr" on Tho &c
ivit'.S q The government. ami So
suOo more with which 10 retire
GU; shpr -fatSi debit"