The Colorado statesman., 1922-11-11

| 1G 1922, maturing October L. 1882,
and redeemuble ut the option OF
/ the United States ON and after Octo-
ber 10, 1917 The bonds will be issued
in both coupon and registered form, in
denominations of 500 and upwards.
This is Il refundlng issue, and il af-
fOrds an opportunity to holders of Az
per cent Victory notes to acquire n
| longtime government bond in place of
Victory notes which will mature or be
redeemed within the next few months.
On April 30. 1921. when the treasury
first announced its refundiDg program,
the gross public debt, on the basis of
daily treasury statements, amounted
to about $24.0OO, 100000, of which over
S7,5OO,OOO,OOO was maturing within
about two years. On September 30,
1922, the total gross debt on the same
basis stood about So, 500, 100000, and
of the early maturing debt about $4.-
000,0O0,0O0 had already been retired or
refunded. chiefly into short-term treas
ury notes with maturlties spread over
the next four fiscal years.
There will fall due this fiscal year
about $1,1O0.OOOOO0 of treasury GER
tificates of Indebtedness. about $685.
100000 maturity value of war saw
ings certificates of the series of 1918,
and about $1S00,000,0O0 Victory notes
OF the treasury certificates. about
$4S, 100000 represents Pittman act GER
t.fcates which will be retired this
year through the recolnage of silver
bullion; while about $100,O00,0O0 of
Lon, sat.tf ftnot f,fr nRfnhnr
1929, will be paid out of funds already
in hand. The retirement of these GER
tifcates will leave only fax certificates
outstanding.
New Savings Certificates
After October 16. 1922, the next ma
turtles fall on December Is, and In
clude about $S70.0O0,0OO face amount
of 4A per cent Victory notes called for
redemption, and about $42o,000,000 of
maturing tax certificates of series I'd
and TD2-1922, against which the treas
ury will receive in December about
$3.50, 100000 of income Sand profits
taxes. On January /, 1923, $625.ooO,-
600 of war savings certificates become
payable, but the treasury has already
announced a new Offering of treasury
savings certificates with view to re
funding as much as possible of the ma
turity into obligations of the same gen.
eral character and with the same ap-
peal to the needs of the small investor.
The treasury will shortly announce
special facilities for the exchange OF
maturing war savings certificates for
the new treasury savings certificates,
and plans in this manner to provide
for a substantial part of the war saw
ings maturity. The only treasury GER
tificates maturing in the second half
of the fiscal year 1923, are about $685.
100000 on March 10, 1923, and about
S273 100000 on June 10, 1928, both of
which are covered by the income and
profits tax payments estimated for
those dates. On May 20, 1923, the re-
naming 3o,0OO,00O of Az per cent
Victory notes will mature.
The maturities which remain and
have to be refunded, the treasury will
meet through issues of refunding secu'
rites, properly adjusted to market con
ditions, and Secretary Mellon believes
1t will be able to meet them without
disturbance to the markets and with
out strain on the financial machinery.
Market Hasn't Been Disturbed.
During the course of the refunding
operations which have been in prog.
ress, the treasury has issued from
time to time treasury certificates OF
Indebtedness, treasury notes and treas
ury savings certificates, all relatively
short term. These operations have
been successful and have been accom-
plished without disturbance to the
market for outstanding securities
With the announcement of the bonds
now offered, the treasury is adding to
its list "a refunding issue of longtime
bonds. SThese bonds will provide
through exchanges and otherwise, for a
substantial part of heavy maturities
falling on December 49, and the success
of the offering will leave only normal
amount of financing to be placed on
that date.
1t is four years since the treasury
has offered to the people of the United
States an issue of longtime govern.
ment bonds. During that period II
has been financing itself on short
term basis, and it has succeeded IN
placing with investors throughout the
country great volume of treasury
certificates and treasury notes.
The whole situation in regard to
Liberty bonds and Victory bonds which
the American people purchased so gen
erously during the war has shown
great improvement within the last few
months. The treasury department Is
of the opinion that there Is small like
lihood of these bonds ever going be-
low par again, and says that undoubt.
edly great many persons who sold
their holdings of these bonds when
| InrnrnSSnd