The Washington herald., 1922-03-16
FEDERAL BANKING
OPERATIONS PASS
STRENUOUS PERIOD
Tax and Interest Pay
ments and Subscriptions
Involve Millions.
EXPECT $46O,OOO, 900
Receipts From Income and
Tax Collected Estimated
To Total This Sum.

Yesterday witnessed heavy and I'M
usual Federal operating in the money
market. A great flood Of money
made its influx into the Treasury
Department by reason Of the initial
payment on account OF 1921 taxes;
the maturity of several issues OF
tax certificates Of indebtedness; in
terest on Third Liberty loan bonds
was payable as well as on certain
Treasury notes. and also payments
on account of the new Az per cent
certificates were made.
Some idea of the magnitude of
these Federal banking operations
may be gained from the following
gone through:
1. Maturity OF take certificates Of
Indebtedness, totalling 10000. 900.
.. Payment of approximately s107,-
oo0, 900 interest on Third Liberty
loan bonds and Treasury notes. Sc
ries B-1s24. bearing 81 per cent
interest.
>. Against these payments the
Treasury expects to receive about
s4so.ooo.ooo on account Of income and
tax collections, in addition to or
binary revenues.
t. Payment made on account Of
subscriptions to the new issue of
one-year AZ per cent Treasury tax
certificates. dated March Is. amount
ing to approximately S25o.ooo. 900.
5. Depository banks also repaid
about one-third OF deposits held aris-
ing from the sale February 1 Of
o1,5ss.5o0. series A-19z5 notes.
In addition the Treasury Depart
ment offered an indefinite amount OF
four-year ~ per cent Victory notes.
Payments cannot be made in cash
or by credit. This is purely a re-
funding operation to provide for the
gradual retirement of the Victory
notes.
The matured tax certificates, total
ing $3.50. 000.0 900 comprised three
blocks, as follows:
S2ss, sol. 900. due March is. bear
ing So per cent.
116.s91,0oO. due March Is. bear
ing 81 per cent
124,57a,000. due March is. bear
ing S per cent.
s52s,s64.o 900
Retirement of this 81 per cent
block OF bills leaves 51z per cent
as the highest rate on outstanding
government certificates of indebted
ness.
Mid April Federal Operations.
Following the March is Federal
operations. the government has a
S517s6. 900 issue OF so-called loan GER
tiicates Of Indebtedness falling due
April Is.
In addition there will be payable
on that date approximately S135.o0o.-
600 interest on Fourth Liberty loan
bonds.
After April is the next outstsnd-
ing certificate issues of the govern
ment fall due June Is.
These maturities and payments
money rates have eased slightly.
per cent. with the rate dipping as
low as 81 per cent.
Money to BE Easy.
1t is not expected that Wall Street
rates will materially harden after the
18th. or when the banks are ap-
prised of the extent to which they
were drawn upon for tax purposes.
Tax quarters of 1921 saw money
rates work easier after such trans
actions were contaminated. This was
because loans of all classes had been
Debated considerably during that
year.
The year 1920. however. was in
direct contrast to 1921. Around
March Is. 1920. the call money rate
shot to Is per cent. In mid-June
of that year it scared to IL per
cent. The rate was more stable
around the September and December
tax periods. being per cent, in
that the campaign OF loan dehation
was well under way at that time.