Imperial Valley press., 1922-03-06
UNCLE SAM PAYING
WAR DEBTS TO
PEOPLE
United Press Leased Wire

WASHINGTON, March 6.-Uncle
Sam, recovering from his orgy of war
spending, is paying off his war debt
to. the American people.
More than twenty-siX billion dollars
borrowed bv the old man from his
nieces and nephcws to fight the war
and help his allies is being paid Off
at a rate which has just reached $780,
100000 Il month. At the present rate
of progress the next generation will be
relieved of the YeXatious tax burdens
that follow all warfare.
At the end of 1921 the gross public
debt of the United States was but $23,-
43S,984, ,351 To offset this, Uncle Sam
had cash balance in the Treasury of
S4S7, ,767, ,529, leaving him in the hole
almost $23 900 100000 net. just a year
ago the war debt was practically $24,-
000,000,000, and there was half bill
lion in the treasury. At its peak the
war debt. or more correctly the gross
total debt, was $26,596, ,70l ,64S.
All'of this money was taken from the
American people in return for liberty
bonds, victory notes and other securi
tics. 1t will go back to the people
over long period of years.
Nearly u billion dollars of the Vie
tory Loan, represented in Victory
notes, has been paid off in the past
two years. In all the government sold
four and 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. Mil
lions of dollars worth were bought in
by the treasury at a profit and dc
stroyed Through sinking fund opera
tions. Others were received us patri-
otic gifts and millions were re-
ccivcd in estate taxes.
Treasury experts agree that good fl
nancial practice demands retirement of
ut least 60 per cent of the entire issue
on or before maturity in April, of next
year. This means that Uncle Sam will
have to find the means to pay off by
that time at least another billion dol
lars and Il half. This might be done
with comfort were it not for the fact
that there are outstanding treasury
certificates and other securities, in
Guiding treasury notes and war savings
certificates, i'll an aggregate amount of
TWO anu HdlI DUllOn WIN mdturltlcS
falling due ahead of the Victory loan.
This means that the treasury will
have to continue the issue from time
to time of short term notes, which will
fund the floating Indebtedness repre-
scnted in the treasury certificates.
Despite this situation and the handi-
caps faced i'll congressional unwilling
ness to meet treasury plans, Uncle
Sam is doing very well. lie has bor-
rowed on treasury certificates Il billion
and II half against this year S tax re-
ccipts, but good management will wipe
this out unless !; soldier bonus bill is
passed or some other heavy cxpendi
ture encountered.
The treasury is in fact in the best
position it has occupied since the ear
ly days of the war. The necessity for
paying off tax certificates maturing,
and Of retiring Victory notes 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. il all goes well Uncle
Sam will owe billion dollars less at
the beginning of the next New Year,
than he does now.