South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-03-06
j. S. PAYING DEBT
OF WAR BILLIONS
Government is Liquidating
Liberty Loan Securities
at Rapid Rate.

WASHINGTON, March 5. - Uncle
sam. recovering from his orgy o.
war spending. is paying on his wal
debt TO the American people.
More than IS billion dollars Dor
rowed by the old man from his
nieces and nephews TO fight the war
and 20 help his allies is being paid
of AT "a rate which has just reached
$4,000. 900 a month. Al the pres
emit rate OF progress the next genera
tion will be relieved OF the vexatious
tax burdens that follow all warfare
At the end Of 1921 the gross pub
dc debt Of the United states was but
$2S,43S.9S4351. To offset this, I'm
Gle sam had a cash balance 10 the
TREASURY OF s4S7.767. 529. leavins
him IN the hole almost $4,000. 00G,-
GOO net. Just year ago the Wal
debt was practically S2A0OO.000.000,
and there was half a billion i'm the
treasury. At its peak the war debt.
or more correctly the gross total
debt was Se6.596,70l64S.
All Of this money was taken from
tie American people i'm return fol
Liberty bonds. Victory notes and
other securities. 1t will go back 10
the people over a long period OF
years.
Nearly billion dollars of the Vic
tory loan. represented i'm Victory
notes. has been paid off i'm the past
two years In all the government
scId four and a half billion dollars
worth OF these notes after hOstilities
ceased. There were outstanding at
the end Of 1921. slightly over three
and a half billion dollars in these
securities. Millions of dollars worth
were bought in by the treasury at a
profit and destroyed through sinking
fund operations. Others were re-
ce!ved as patriotic gifts, and millions
were received in estate taxes.
Retire 900 by April, 1928.
Treasury experts agree that good
financial practice demands retire
ment of at least 60 percent of the
entire issue on or before maturity
| in April, of next year. This means
/ that Uncle Sam viii have to find tho
means 10 pay off by that time at
+ least another billion dollars and a
half. This might be done with com
. fort were il not for the fact that
there are outstanding treasury Ger
tificates and other securities. includ-
/ ing treasury notes and war savings
certificates. in an aggregate amount
of two and a half billion with ma
turtles falling due ahead of the Vic
tory loan.
This means that the treasury viii
have to continue the issue from time
no time Of short term notes, which
will fund the floating Indebtedness
represented in the treasury certii-
Gates.
Despite this situation and the
handicaps faced in congressional I'M
Willingness to meet treasury plans
Uncle sam is doing very well. Re
has borrowed on treasury certificates
a billion and a half against this
years tax receipts. but good man
agement will wipe this out unless
soldier bonus bill is passed or some
other heavy expenditure encountered
The treasury is in fact in the hes
position it has occupied since the
early DAYS of the war. The necessity
for paying off tax certificates matur
iEg, and of retiring Victory note;
can be met through the issue Of
blocks OF new short time notes
which will spread the maturities, and
this is the announced treasury plan
If all goes we'll Uncle Sam Will owe
a billion dollars less at the begin
ming OF the next New Year than ht
does now