The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-10-11
HALF BILLION
BOND issue
ANNOUNCED
United States Needs
Money to Refund
Short Term Treas
ury Notes

lily MULES
Washington, Oct. S.-The first
government bond issue since the
war was announced tonight by the
treasury.
Secretary Mellon offered for sub
scription an issue Of about 5000
100000 Of 4 Ia per cent, 80 year
treasury bonds as part of the pro-
gram Sor refunding the short dated
debt.
The new issue will be dated oc-
tober IL, 1922. bearing interest at
IA per cent. annually. payable
April l 5 and October 10. on a semi
annual basis. The bonds will ma
ture October Is. 1852. but may be
redeemed at the option OF the Unit
ed States after October -, l947.
The last previous bond issue Of
fered by the treasury was the
fourth Liberty loan in October.
1918. II carried Interest at Ia
per cent. To mature in 20 years.
and amounted TO nearly 81 .0GG.9G0.
Bearer bonds OF the new issue With
interest," coupons attached Will be
issued in denominations OF 800,
$500. $1,000, $1,000 and sl0.60a.
while bonds registered as to pr;n-
cipal and interest will be issued in
denominations of 500. $500. $1,000,
$1,000. $4,000. $4,000 and $780,
coo. All will carry the usual tax
exemption provisions. Secretary
Mellon reserved the right to allot
additional bonds above the $500
000.0 amount fixed for subscrip-
tions to the extent that i Ia per
cent Victory notes Or treasury GER
titicates of the series maturing, De-
cember l5. 1922, are rendered in
payment. Applications for new
bonds not exceeding $4,000 from
any one subscriber Will be allotted
in full but applications for an
amount in excess OF $4,000 Will be
received subject 10 allotment.
ma letter to banking institu-
tons Mr.. Mellon asked continued
cooperation for the distribution of
the new bonds among investors,
declaring the time had come for a
longer term operation in the re-
funding f6f the short dated debt.
which heretofore has been accom-
plsihed without disturbance :. to
the market for outstanding securi-
ties" on q relatively short term bal
sis.
Discussing what had already been
accomplished in the refunding of
the short dated debt. Mr.. Mellon
recalled that on April so. 1921.
when the refunding program was
announced, the gross public debt
amounted to $4,000, 900. 600. Of
which over $500 Goo was matur-
ing within two years. While on
September 80. 1929. the total debt
was s22.S00. 600. 900 and about
$1,000. 1000. 900 Of the early matur-
ing debt had been retired or re-
funded.
This fiscal year; he stated. there
will fan due about $500. 10000
of Victory notes, s625, 5,000 900 OF
war savings certificates and about
81 900, 900. 600 of treasury certifl-
Gates. of which $4,000, 900 repre-
sent Pittnlan act certificates which
viii he retired this year through
the recoinage Of silver bullion.
while about st00. 100000 of loan
certificates maturing October l6,
1922. vii! he paid out OF funds al
ready in hand.
Retirement OF these latter certi-
ficates. he added. will leave only
sax certificates outstanding aud with
tax payments as large as they are
il is considered desirable for the
treasury to have outstanding At
least $1,000. 900. .090 tax certificates,
which correspondingly reduces the
amount of Necessary refunding into
other securities.
After October 10. 1922. Mr.. Mel
Ion said. the next maturities fail
on December Is. and include about
SS70.G00. 900 cf IA per cent.
Victory notes called for redemption
and about $i20, 900, 900 of matur-
ing tax certificates against which
the treasury win receive in Decem-
Der about $3.50. 1000, ,o00 on income
and profits taxes.
On January !. 1923. he said.
S625 100000 OF war savings certifi-
Gates became payable but special
facilities for their exchange for the
new treasury savings certificates are
10 he announced shortly. while the
only treasury certificates maturing
in the second half of the fiscal
Year. 1923. ara about $2G6 .d00. 600
an March -. 1923. and about S213.-
100000 on June Is, 1923, both OF
which are covered by the income
and profits tax payments estimated
for these dates. ON May 20. 1928.
he added The remaining $3.50. 600
900 OF l-3 Victory notes mature.
The naturitieS which viii re-
main ard have to be refunded.
Mr. Mellon said, The treasury Will
meet through issues OF refmdins
securities properly adjusted TO mar
he able tn meet them. rs il has in
the past. without disturbance TO
the markets and withou; strain to
the financial machinery.
The IT, asury secretary wrote the
bankers tina, ii had been~&''fou'.
years since the treasury had offer
ed to the people of the l'ni,ed
Sla1es an issue OF long time gov