Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-30
Result Of Survey Made
Public By President
Harding.
CITIES DISCOUNT CUT
Points To Treasury's Record Regard
ing Refunding Short Term Obliga-
tiOns.

Washington, July 30.--The Hard
ing Administration made public yes
terday its first general survey of the
financial situation of the country, and
after showing what measures had
been taken to relieve business Of the
burdens depressing it, prophesied a
general and decisive Improvement in
the immediate future.
This survey was made public at the
White House by direction Of the
President just before the Executive
left for New England to take part
in the Plymouth tercentennial cele-
bration. The President regarded the
steps taken by himself and by his ad-
ministration for strengthening busl-
ness as of such Importance that he
felt some comprehensive summary OF
the Government activities should be
presented to the American people.
The most important of the develop
ments in the Presidents mind is the
reduction in discount rates put into
effect succcssively by the individual
Federal Reserve banks. These rates,
it is shown, have been reduced one
half of ! per cent. most cases and L
per cent. in some.
Referring to this phase Of the bust
ness situation. the White House state
ment says:
Perhaps the most important de-
veIopment has been the action taken
b. the Federal Reserve banks in re-
ducing discount rates. This action is
calculated to relieve the stagnation
of business and at the same time give
authoritative recognition Of the i'm
provcment in credit conditions justify
ing the policy of reduced rates.
1T is unsafe" the White House
says "to prophesy concerning condl-
tions in the future, but it may be eX-
pcctcd that recognition will be given
to further improvements in conditions
in accordance with the dictates of
sound banking practice This obser-
walton is taken to mean in Washing
ton that the Administration looks for
still further reduction in discount
rates.
Turning to the activities Of the
Treasury Department proper, the
statement shows that refunding of
short term obligations is now in pro-
gress. Referring to the success OF
these efforts the White House says:
THE Treasury on its part has, dur
ing the last four months, success
fully inaugurated it's new policy Of
refunding the short dated debt Of the
Government and distributing the early
matulitcs over the period between
the maturity Of the Victory loan in
1923 and the Third Liberty loan in
1928. The first offcringof Treasury
notes pursuant to this policy met with
most enthusiastic response, and the
further development Of the program
should bring about a better distrlbu-
ton of the public debt and much i'm
proved market conditions for Gov
ernmcnt securities. There has already
been a marked improvement in the
market prices of Liberty bonds and
Victory notes, and the market for all
outstanding issues of short-term Gov
ernmcntl securities is in better shape
than at any time since the depres-
sion"
The White House also refers at
some length to the resumption of
active operations by the War Finance
Corporation. This corporation, it is
pointed out, has now agreed to fin
ance large quantities of cotton.