The Washington times., 1922-05-25
NEW TREASURY
OFFERINGS ARE
EXPECTEDSO0N
investment Market Is Antici-
- pating New Issue of Fed
eraI Certificates.
BY MUNROE ROBERTS.

Copyright, 1922. by Cosmopolitan news
service.)
NEW YORK. May 25.-1t Is more
than likely that in the near future
the Treasury Department at Wash
ington will test the investment NOR
ket with a new offering Of Treasury
certificates. Treasury officials are
experts in the testing and taking ad-
vantage Of favorable developments
in money conditions and borrowing
rates. Considering the immediate
needs Of the Treasury, II is hardly
likely that they will pass up an op'
portunity to put out new issue De-
fore money rates show tenuency
to harden.
About the middle OF next month
the Federal Treasury will be COM
PEELED to face the refunding OF $776'-
0oO, 900 in Government obligations
including $3.50, 900, 900 OF outstanding
certificates OF indebtedness, $27O.ooO.'
600 in Victory notes and $12b,OOO'OooI
In interest on Liberty bonds. AS the
receipts Of the Treasury IN the
meantime will not exceed 43oo'ooo'-
900, the Secretary OF the treasury
will be under the necessity of raising
the remaining SAFE. 100000. Under
present legislation the Treasury De-
partment may borrow either, on snort
time or on Government notes extend-
ing from three TO five years. Ihe
proba abilities are that the issue VIII
be split between these two 1orms,
and that the interest rate Will not
be less than 3h per cent the same
as the last issue.
Since the beginning Of the war
n has hpen an
important factor in the money mar
kets and a good many projects have
been side tracked in order to leave
the right Of way for the treasury.
While there are a good many mn
TURTLES to be taken care OF during the
next two or three years, the opera
tions of the Government will not
longer be considered burden upon
the financial resources or 1lnanclal
Institutions Of the country. The COM
mercial banks can assist in the snort,
term financing. and investors ana
investing institutions can take care
of the longer maturities.
The Federal Reserve Bank OF New
York announces that It will, on June
., discontinue the collection Of
coupons on all British government
securities.
This service was undertaken by the
reserve bank under special arrange
ments with the Bank OF England ana
the British treasury during the war
as an emergency measure on account
ot the high insurance rates then pre-
vailing on shipments OF securities
across the water.
These coupons may be readily dis
posed Of for cash or they may be
collected through those banks which
deal in foreign exchange. :,
Subscription books were opened
this morning at the offices OF J. +:
Morgan & Co. on new issue OF
s35, ,O0O, 900 thirty-year per cen:
series A bonds OF the New England
Telephone and Telegraph Company.
The issue Is non-callable prior 10
June l, 1949, after which II Is subject
to redemption at par. At the offer
ing price OF 97h, the yield on these
new bonds is 5.15 per cent. The New
England Telephone and Telegraph
| Company has an authorized capital
OF 800 ,000, 900, OF which about $780,
| oo0, 900 is outstanding. The com
panys total funded indebtedness,
giving effect TO this issue, will he
less than 81 per cent of the value OF
It's property. exclusive OF working
assets.
A New York banking syndicate is
offering SO, 900 900 of the Brooklyn
Union Gas Company's first lien and
refunding mortgage gold bonds, series
A, due in 1s47, at 105. to yield about
5% per cent.
The bonds are non-redeemab BILE
prior to their maturity. and appli.
cation will be made 20 have them
listed on the New York stock e1-
change. The company's net earn
ings for twelve months ended with
March 81 were 33.391.S79. or more
than 2.7 times the annual interest
charges on its mortgage debt.
A new issue OF $2.2i7.o0 aerial
AZ per cent gold bonds OF the New
| York State Realty and Terminal
Company is offered today on Il Sh
per cent basis. The issue is part OF
| the original issue of s3,400.000 OF
which $925,000 has been retired.
They are secured by leases on valu-
able property in the Grand Central
| district.
! Investment bankers report that
they have been somewhat disappoint
ed in their failure to close up nego-
tiations OF a number of prominent
domestic and foreign loans this
week. They hope to have them ready
for the bond market not later than
the middle of next weak Next
weeks offerings will probably in
clude two or three large foreign IS
sues as we'll as some attractive pub
lie utility and industrial bonds Of
domestic corporations.