East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-03-06
Uncle Sam is
Paying Off His
War Debt Now

WASHINGTON. Mar. e.-fA. P. -
Uncle sam. recovering from his orgy
OF war sDendiRs. Is paving off his wal
debt to the American peope.
More than twe9fy-six billion dollars
borrowed by the old man from his
nieces and neDhews to fight the war
and TO help his allies is being paid off
at a rate which has just reached $780,
100000 a month. At the present rate
Of progress the next generation will he
relieved Of the vexatious tax burdens
that follow all warfare.
At the end of 1921 the gross public
debt OF the nited States was hut SEA-
43s. .ss4.s5l. To offset this, Uncle Sam
! had a cash balance in the treasury Of
| O4S7,T67,529. leaving him in the hole
almost sg3, 100000 net. Just a
year ago the war debt was practically
| S24, ,000, 900, and there was half bill
lion in the treasury. At its peak the
war debt, or more correctly tn gross
total debt, was s26. 6.5s6, ,701, ,64S.
All of this money was taken from |
the American people in return for lib
erty bonds, victory notes and other Sc
curities. II will go back to the people
over a long period of years.
Nearly billion dollars of the Vic
tory notes, has been paid off in the
past two years. In all the government
sold four and half billion dollars
worth of these notes after hotsilties
ceased. There were outstanding at the
end Of 1921, slightly over three and a
half billion dollars in these securities.
Millions of dollars worth were bought
in by the Treasury at profit and de-
through sinking fund opera
tions. Others were received as patri- !,
attic gifts, and millions were received
in estate taxes. /,
Treasury experts agree that good fl
nancial practice demands retirement !
Of at least GO per cent of the entire is
sue on or before maturity in April of /,
next wear. This means that Uncle
sam will have to find the means to pay !
,ff by that time at least another bill y
ion dollars and half. This might be =
lone with comfort were it not for the !,
act that there are outstanding treas !,
,rv certificates and other securities,
including treasury notes and war saw :
ngs certificates. in an aggregate .
amount of two and a half billion with /,
naturieles falling due ahead OF the
yictory loan. T
This means that the treasury Will i,
ave to continue the issue from time
O time of short term notes, when :
viii fund the floating Indebtedness !,
in the treasury certifi- - -
ates. :.
Despite this situation and the handi- ~ ~
APPS faced in congressional unwilling !.
ess to meet treasury plans. Uncle :
lam is doing very well. He has bor- :
owed on treasury certificates a bill :
ion and q half against this years tax
eceipts, but good management will /,
yipe this out unless q soldier bonus
ill Is passed or some other heavy ex-
,enditure encountered.
The treasury is in face in the best
,osition it has occupied since the ear
v days of the war. The necessity for
,aying off tax certificates maturing,
md of retiring victory notes can be
net through the issue of blocks OF
lew short time notes which VIII
,pread the maturities, and this is the
treasury plan. If all goes
we'll Uncle Sam will owe billion dol
ars less at the beginning of the next
New Year, than he does now. Il
II