The New York herald., 1921-03-09
MELLON APPEALS
FOR MORE ECONOMY
contmnea rom Flrst Page.

certificates unmatured) amounted 70
S2.4S4, ,032 900. These figures contrast
with "a gross debt on December 81. 1920.
n S23,9G2, ,224,l6S and a floating debt on
the same date of $4,000, ,G56,000. As q
result Of the Treasury operations on
March 10, 1921, these increases IN gross
debt and floating debt (Which arc 70 be
expected in the odd months when no
quarterly income ard profits tax pay
mepts are lna0c) should bo largely
oflaet and perhaps overcome
The progress 10 be. made during the
remainder ~ the current year IL the
retirement IT gross debt and floating
debt win depend of course, upon the
extent Of the demands made upon the
Treasury and the volume Of its receipts
from taNes and salvage. This progress
Is likely 10 be seriously limited BY
reason OF the heavy railroad payments
to he expected during the next two
or three months
'Yhcse ngures as to the public debt
and the current operations OF tho Treas
ury show that the countrys finances are
sound, but that the situation calls for
the utmost economy. The nation cam
not afford extravagance and, so far as
possible, 1T must avoid entering upon a
new field of expenditure. The heavy re-
qulrements of the Government on ac-
count of necessary expenditures, includ-
ing interest and sinking fund on the
public debt and the majority of $500
| 100000 of short dated debt within the
next two years or thereabouts. make il
| imperative that the greatest care and
economy be exercised in matters affect
4 ing government expenditure
THE people generally must become
more interested fin saving the Govern
ments money than in spending ii. A
thoroughgoing national budget system
/ must be established ana the Govern
ments expenses brought into relation to
its income
"The period which has elapsed since
\ the last quarterly instalment OF income
and profits taxes las been marked by
important developments IN the market
Il for Treasury certificates Of Indebtedness
\ on January 10, 1921, the Treasury sue
cessfully sold an Offering OF three
\ months 5i2 per cent. certificates and
\ nine months so per cent. certificates.
on February % 1921. an offering of
\ five months 5la pcr cent. certificates was
\ likewise promptly oversubscribed.
Il Treasury certificates Of indebtedness
now enjoy a broad and active market on
a straight investment basis and all is
sues now outstanding are quoted in the
/ oRNAa mann f'Aif't O. HHL ~ o. q -
MUM.
"The last three months have also been
marked by still further distribution OF
4 Treasury certificates among investors
and - reduction III holdings of Treasury
/ certificates BY banks. The reporting
member banks of the Federal Reserve
/ system tabout SO banks in leading
I cities, which are believed to control
4 about 40 per cent of commercial bank
I resources of the country and 10 have
\ subscribed In the first instance for about
4 IS per cent. Of the Treasury certificates
I Of Indebtedness now outstauding) held
7 on February 25. 1921. only about
4 1885. 600. 900 of The Treasury certificates.
as compared with reported holdings on
November 26, 1920. of about S3l3,00o,000
and February 81 1920, of about
/ S673. .000,0 900.
"On March 4, 1921. the Federal Re
serve Board reported that there were
pledged with the Federal Reserve banks
only about Si10,000.00o of Treasury
certificates TO secure loans and dis
counts, or less than per cent. of the
aggregate amounts of loan and tax eer-
tificates then outstanding. These fig
urcs striltingly show tin success of the
Efforts which have been made for the
last year on more TO secure distribution
OF Treasury certificates among real in
vestors. and To keep them out Of the
banks"