Evening star., 1922-10-09
NEW HALE-B|LL|ON
BOND ISSUE BY j. S.
Thirty-Year Treasury Paper
Offered to Pay a Ia
Per Cent.
USUAL TAX EXEMPTIONS
Denominations From 500 Up to
$50,000-Pubic Debt Cut
$4,000 900.

tions for the short-dated debt partly
on a longer-term basis, Secretary Mel
Ion is offering for subscription an is
sue of about $500. 100000 of Az per
cent thirty-year Treasury bonds-the
first government bond issue since the
fourth liberty loan issue of the last
month before the armistice.
The new issue. as announced last
night. will be dated October 16, 1929,
bearing interest from that date paya-
BILE April Is and October Is on a
semi-annual basis. Although the date
of maturity Is October Is, 1852, the
bonds may be redeemed at the gov
ernment's option after October Is,
isaI: BESIDES bearer bonds, with in
terest coupons attached, in denomi-
nations of 800, $500. $1,000, $4,000
and $4,000. the issue will comprise
registered bonds in denominations of
from 800 to $4,000. although appli-
cations for any amount in excess of
$4,000 will be received subject to
allotment. All will carry the usual
tax exemption provisions. To the
extent that victory notes or Treas
ury certlhcates of the series matur-
ing December IS. 1922. are rendered
In payment, Secretary Mellon re-
served the right to aIlot additional
bonds above the amount OF $500, 900 900
Time for Longer Term.
In letter to banking institutions
Mr.. Mellon asked continued Cooper
alton for the distribution of the new
bonds among investors, declaring
the time had come for longer-term
operation in the refunding Of the
has been accomplished without dis
turbance to the market foI outstand-
ing securities" on relatively short
term basis.
The Treasury Secretary wrote the
bankers that it had been -four years
since the Treasury has offered to the
people of the United States an issue
OF longtime government bpnds'
adding that during that period it had
been financing itself on short-time
the war were not classed by the gov
ernment as regulation bond issue
Debt Cut $1,000 100000.
Discussing what has already been
accomplished in the refunding of the
short-dated debt. Mr.. Mellon recalled
that on April 80, 1921. when the re-
funding program was announced, the
000. 100000, Of which over $500, ,000,-
600 was maturing within two years.
while on September 80. 1922, the total
debt was 100000. and about
s4.000.0o0.000 of the early maturing
debt had been retired or refunded.
This fiscal year he stated. there
will fall due about $1.S00,0 900, 900 of
victory notes. 625.000.000 of war say.
inss certificates and about S1.100,0O0,-
900 of Treasury certificates, of which
SiS,000,0G0 represent Pittman act GER
titicateS which will be retired this
year through the recoinage of silver
bullion, while about s100.O00000 of
loan certificates. maturing October
- IA
already in hand
Next Maturities December Is.
Retirement of these latter certifi-
Gates, he added. will leave only tax
certificates outstanding, and with
tax payments as large as they are it
is considered desirable for the Treas
ury to have outstanding at least
$1,000. 100000 of tax certificates. which
correspondingly reduces the amount
of necessary refunding into other
securities.
After October 1S. 1922. Mr.. Mellon
said. the next maturities fall on De-
cember 10, and include about SS7O.-
100000 of 4a4 per cent victory notes
called for redemption and about $420.-
100000 of maturing tax certificates
against which the Treasury will re-
ceive in December about $3.50. 1000, 900
Of Income and profits taxes.
Sees No Disturbance.
On January l, 1928, he said, $685.
100000 of war savings certificates be-
come payable. but special facilities
for their exchange for the new Treas
ury savings certificates are to be an
nounced shortly, while the only
Treasury certificates maturing in the
second half of the fiscal year 1923
are about $266. 10000 on March is.
1923. and about s273.000.O00 on June
Is. 1923, both of which are covered by !
the income and profits tax payments
estimated for those dates. On May
20. 1923, he said, the remaining
s930,000.0o0 Of Az per cent victory .
notes mature.
THE maturities which remain and !
have to be refunded Mr.. Mellon said,
the Treasury will meet through is
sues of refunding securities properly
adjusted to market conditions, and
believe it will be able to meet them,
as 1t has in the past, without disturb
ance to the markets and without
strain to the financial machinery"