The Washington times., 1922-06-20
new FOREIGN
ISSUES to- bE.
OFFERED soon
Largest VIII Probably Be One
OF $50. 900, 900 to
Cuba.
BY MUNROE ROBERTS.
tcopyrisht. Iss,. by Cosmopolitan News
s,a service,) "

Copyright. Isas. by Cosmopolitan News
t,I service,)
NEW YORK. June 2o.-During
the month of June there has been q
marked decrease in the number end
amount of new Industrial bond Issues
floated by the investment bankers
and banking syndicates. New for
eign issues and tax exemption muni-
the bulk of the new loans offered to
investors. This should not be taken,
however, as indicating a preference.
The market 10 az ready TO absorb
high-class Industrial and public
utility. bonds as Il IL those Of the
other classifications.
2 A number Of prominent foreign
loans are In prospect. the largest Of
which In probably that of the $50..
900 900 loan to Cuba. The Republic
Of Colombia. South America, In neso-
tiating for q $4,000, 900 loan. and 1t
fs reported that the Italian govern
ment is also anxious TO assign EN-.
ployment TO some of our American
money. Inquiries have also been
directed from q number of European
cities which are anxious to complete
q number of local Improvement Lroj.
ects and desire our assistance In the
operation.
Considerable interest has deyel.
oped In the announcement of the
plans Of the Treasury for the out
standing war bond issues. Sipce
August 81. 1919. the public debt has
been reduced from $50, 0,596, ,0O0. 900 to
y22 ,9s6, 900 900, q decrease of $780,.
100000. II carrying out this reduc-
ton process the Treasury has had
access to q number Of special funds,
including the sale Of war material
and the remittances OF foreign gov.
ernments as interest on their loans,
both of which should also be avail.
able In the future. Were II possible
to realize on the 81, 900. .000. 900 Of
allied debts, the process Of redemp-
ton would be a fairly simple one.
Unfortunately, no great hope is en-.
teertained that these debts will be
liquidated in full.
In a recent statement. one Of the
secretaries of the treasury stated
that from now on the liquidation of
the war debt will have to be accom-
plished chiefly from surplus revenue
receipts, particularly the sinking
fund and similar accounts. The
Treasury balance has already been
reduced to about as low N figure as
- consistent with the proper con-
duct OF the Governments business,
and there 10 little expectation Of be.
Ing able to accomplish further debt
reduction by cutting down the work
Ing balances In depositsries. ...
The sinking fund and other SINH
lar accounts must be relied on to
accomplish the most substa ntial
retirements Of debts in the years
to come.
The next step in the adjustment
OF the Mexican bond situation will
naturally be the call for the de.
posits OF these bonds with a COM
mittee formed for the purpose of
completing the adjustment. Pre-.
sumably the call win be DELAYED
until formal ratification of the plan
has been given by the Mexican
president and. other high officials.
but this will doubtless. be forth.
time. In the meantime, spectators
coming In a comparatively short
may be expected to put their bonds
on the market. not caring to eo
through the long process that WIN
be required to consummate the
liquidation Of the bonds. Should
the Mexican republic ultimately
make good. those who now acquire
the bonds at current prices viii
have ample profit to show for a
moderate Investment.