The Birmingham age-herald., 1921-10-30
FA[[|NG PRICE OF
 MONEY IS WEALTH
 ID WHOLE NATION
Means Liberty Bonds Will Advance and Government Will Save Millions of
 Dollars
By HARDEN COLFAX Special Correspondent of The Age-Herald- Copyright. 1921, by The Aee-Hernld.)

Washington. october 29.-The price of money is tumbling, There was a time when an announcement of this sort meant nothing to the mass of people It was but sign that the men of Wall street would have more and cheaper funds to play with.
 But each time money takes a drop 1t means millions of dollars to the plain people of the United States, for falling money carried with 1t an enhancement of the value of each Liberty bond issued by the govern ment of the United States. 1t means further that the government is en- abled to borrow money at lower rates to retire short time securities Issued at much higher rates
 The easing up of money has en- abled the Secre tary of the Treasury this week to make a cut of l per cent in the interest rate on new Issue of certificates that will go to make up the nations floating in- debtedness.
 The new issue of treasury certifi- cates and one year notes Is open to public subscription until next Tues day. The amount of the issue is $200, 100000. The interest rates are Az and 41a per cent according to whether a short or longer term ob- ligation is purchased Six weeks ago the same sort of obligation was offered to the public at interest rates of 5, 5A and 5h per cent de- pendent upon maturity of the obli- gation. The cut in six weeks time is l per cent
 New Low Level
 Incidentally the interest rate Is the lowest offered since the Liberty loans were floated. It Is 25 per cent lower than the highest rate the government had to. pay on borrowed money. which was 6 per cent in December. 1920. And the public is rushing in a miniature stampede to take the new certificates. They will be heavily oversubscribed. accord ing to all indications today, three days before the subscription books are closed.
 One per cent sounds small, but as a saving 1t is about the biggest thing Washington has witnessed in financial way since before the war. If saving of 1 per cent were ap- piled in the interest rate which the governm ent has to pay on its float ing debt alone. 1t would mean lessening in the high cost of gov ernment of more than $24,000,o0o a year, for the floating debt approxi- mates s2,400, 900. 900.
 From the response to the Secre- tary's offering of securities 1t is apparent the lower rates ere here to stay and for a long time to come the or short term notes will bear more than Az per cent, AS most of the floating debt Is to be retired within a comparatively short time by the Notation of other issues whose pro- ceeds will be utilized to pay off the maturing obligations, the saving of per cent will become reality on the entire floating debt within year or IS months.
 MT. Melons shrewd financial sense in cutting the rate will mean in- evitably, in the Judgment of officials here, further sharp rise in Liberty bonds. now upward bound toward par, and, in addition, 1t is thought presages still lower rediscount rates and cheaper money--at the federal reserve banks. It also means finan- cial experts assert. a rise to new high levels of gilt-edge bonds other s than securities issued by the gov ernment.
 Deposits Are Increasing
 Circumstances which made it pos sible for Mir Mellon to execute his stroke of economy at this time in- clude a rise in the federal reserve ratio of more than 70 per cent or more than half as much again as 1t was slightly more than a year ago, and a big increase In the amount of money which the depositors of the nation have put into the banks of the country during the past few weeks.
 The federal reserve boards fig ures show the country now Is bank ing money: until recently it hd been checking 1t out of the bank. Re- ports from 800 national banks to the board, as of October 1s, show indi- vidual deposits subject to check, rose more than $500, 100000 in two weeks and once more are back to the high rate of the $f0.000, 100000 mark They still have more than $1. 000, ,000. 900 to go to reach the fat balance of December last. But since then they have been almost uninter- ruptedly on the downgrade. Then upward turn indicates further healthy advance toward normal busi-