Evening star., 1921-06-08
HALF BILLION NOTES
AND CERTIFICATES
Secretary Mellon Offers
Three-Year Securities,
53-4 Per Cent.
BY 1. A. FLEMING.

AS anticipated, Secretary Mellon mas
announced the first issue of three
year notes. coupling it with another
issue of Treasury certificates. both to
bear date June 10. and to be issued on
that date, the sum total OF the TWO
offerings being s500.00o.00o.
Bankers welcome the action as a
relief from the constant withdrawal
of funds for the retirement of ma
turing certificates. but express some
disappointment that the tender is not
Il billion dollars rather than half OF
that amount.
The one-year notes Will be OF 500.
$500. $1,000: 5000. $4,000 and $780,
coo denomination.
The rate of interest on the long ma
turity will be 90. per cent and D !. pr
cent on the Treasury certificates
which Will mature III one veal. Tle
rates insure success.
June l5. as before stated, will wit
ness one of the heaviest movements S
OF financial character IN the uSuIi
monthly periodical exchanges. 1t
VIII mark the second in.stal.mcnt pay
ment o. income and eActsS pronts
taxes. against hich Si3.CuU.UUo of tax
certificates Were issued by the Treas
Gry. these bills being used largely In
settlement of tax o5iis.atious.
Another issue of SlSS $4,000 of GER
tihcatci mature on the sane !ate, and
the int crest on the coupons on the
hrst liberty 3l2s and victory issues
Will call for S13e.00O 900
1t is expected that tax payments
VIII total about S5.a, OCT. .00U. includ-
lEg the large amount. which will be
merely matter of crcLiting the GER
t!hcateS to the payment of taxes.
The banks still retain about S13.000-
n h.. 0f
The sale of Treasury certificates, issue
of May 15.
Farmers Finance Corporation.
1t is probable that the Farmers
finance Corporation, with 100000. 900
capitalization, will be Launched with
IN the r.'xt few days. under The laws
of Delaware.
Mr.. Baruch has been named in con-
nection with this corporal but
lille giving the project his hcartiest
endorsement. he denies that he would
b. officially connected with it.
This corporation was approved at Il
conference in Chicago April :. as the
fiscal agent of the United States
grain growers
The project Of a finance corporation,
lth large capital to buy notes oi
grain growing farmers secured: by
Issue It's own paper against farmers
Individual notes. would. in the opin-
Ion of many bankers, be 4 real aid to
the credit structure OF the nation
The same plan might be worked in
the south with the cotton crop. The
only fear OF the success of such cor
poratlons would seem to lie in the
possibility of securing managers not
we'll grounded in grain financing.
who might turn the finance corpora
tions to crop-holdin:s o. othe: efforts
at creating fictitious value o. upset
ting the normal trend OF business.
Several bankers cast doubt OF the
proposition. as undertaking just what
bankers are doing now. and are fur
thtr skepticaI on a proposition VIII
Such an enormous capitals:
Would it develop into n farm
ers ailiance?" asks one banker. fol-
lowed by the assurance that II would
then have difficulty in piacins its pa
per. as IL would if it should become
Il political factor
Local Securities.
Utility shares and bonds moved
*parnEly on the local exchange to-
day. but they were the only Sc
curities in which there was any trad
ing Capital Traction eascd off TO
S'4 and the per cent bonds of the
same company to s71=- Railway pre-
ferred was steady at s. and Washing
ton Gas unchanged at i.A.
Washington Gas ~ per cent notes
sold at 102. Some of the bids for
the securities in which there was no
trading were lowered fractionaIy,
while others were unchanged.
Convention Program.
The convention program has been
entirely completed. and now contenl-
plates thi i,t business sessions, the
first presided over by President Har-
per. the second by Nice President
i-arner and the third by Vice Presi-
dent Evans
school saV:EcS, mighty impor-
tant matter. when the millions of
school children in America are con-
sidered. and OF considera Bile import in
the Dis;ri'',. WI! be one of the chief
topics discussed. Howard Moran.
vice pres:i NJ of tn. American Sc
curity and Trust Company. will han
die this topic. 1t is believed that it
will Hk-:- G-velcp much discussion
and VIII feature the convention pro-
gram.