The Washington herald., 1922-10-09
Half Billion-Dollar Loan
For Refunding Will
Run Thirty Years.
WILL TAKE PLACE
OF VICTORY NOTES
Secretary Mellon Appeals
To Bankers to Aid
Government Plan.


lon yesterday announced the is
suance of $500, 100000 long term
bond issue, the first since the war.
IL being a part of the governments
plan for refunding approximately
81 OOo, ,O00, 900 of the Treasury cbli-
cations maturing in the next nine
months.
The Offering is of AZ rer cent
Treasury bonds of 1ss7-52. fixed at
approximately $500. 600. 900. but the
Secretary of the Treasury reserves
the right to allot additional bonds.
to the extent that AZ per cent Vic
tory notes or Treasury certificates
maturing December Is are rendered
in payment.
Benr Interest From Oct. 10.
The bonds win be dated october
16. 1922. with interest from that
date at the rate Of AZ per cent pay
able April is and October Is In each
year. The bonds will mature oc-
tober Is. 1852. but may be redeemed
at the option of the Unied States on
and after October Is. 1947. in whole
or in part. at par and accrued in
terest, on any interest day or days.
on four months notice OF redemp-
tion.
Bearer bonds with interest cou-
pons attached will be issued in de-
nominations of 500. $500, $1,000,
IS, 900 and $4,000. Bonds regis
tered as to principal and interest
will be issued in denominations of
500. $500. $1,000. $4,000, $4,000,
$4,000 and 100000.
Within the limitation on the
amount of the Offering. applica-
tions from any one subscriber for
an amount of bonds not exceeding
$4,000 will be allotted in full APP
plications for amounts in excess OF
$4,000 will be received, subject to
allotment The right Is reserved
to reject any subscription for an
amount in excess of $4,000. and TO
allot less than the amount or bonds
applied for and to close the sub
scriptions at any time without no.
tice.
Purpose is Refunding.
This is a refunding ISSUE" said
Secretary Mellon in his letter to
American bankers. "apreaiing for
support of the ISSUE" aud ct af-
fords a particularly favorable Dp-
portunity to holders of AZ per cent
Victory notes to acquire Il long
time government bond on attractive
| terms IN place of Victory notes
which will mature or be redeemed
| within the next few months. / am.
therefore. addressing this letter to
the heads of all banking inst:tu-
| tions in the country, and asking
you to provide every possible facil-
ity for investing in the new bonds.
l hope that you will also make a
| special effort to bring the Offering
to the attention of your customers.
large and small. for it is the Treas
ury's desire to secure the w dest
possible distribution OF the bonds
among investors.
Decreases Short Dated Debts.
Il think you will be interested
| in this connection to know what
has already been accomplished in
the refunding OF the short dated
| debt. and what still remains to be
| done On April 80, 1921, when the
| Treasury first announced it's fund
ing program, the gross public debt.
| on the bass of daily Treasury
statements, amounted to about ;24.-
O00.000,000. OF which over $500
100000 was maturing within about
two years. On September 80. 1922,
the total gross debt on the same
basis stood at about s22sOO. 900,
600. and of the early maturing debt
about $4,000. 900 900 had already beer
retired or refunded. chiefly into
| snort term Treasury notes with
maturit'es spread over the next
four fiscal years.
Four Billions Coming Due.
There will fall due this fiscal
year about s1.10O. .0O0.O0O of Treas
| ury certificate of Indebtedness
about s625.OOO, 900 maturity value of
war savings certificates Of the
series of 1918, aand about $780,
100000 of Victory notes. or the
Treasury certificates about $500, =
600 represents Pittman act certifi-
Gates, which will be retired this
year through the re-coinage of sill
yer bullion. while about 800, zoo, 900
of loan certificates maturing on
October 16, 1922, will be paid out
of funds already in hand. The re-
tirement of these certificates will
leave only tax certificates outstand-
ing, and it will in any event. con-
tinue to be desirable with income
and profits tax payments as large
as they are. for the Treasury to
have outstanding at least $1,000
100000 of tax certificates in
amounts and maturities conform
ing to the quarterly tax payments -