The Washington times., 1922-06-08
RATE /
IS REDUCED ON
NEW us. ISSUES
Mellon Announces Further Cut
In Rates on New Treasury
Notes. .,
BY MUNRoE ROBERTS.

Copyright, 1879. by Cosmopolitan News
service.)
NEW YORK, June s.-Further
reductions in the interest rates Of
new Treasury notes are announced
by Secretary Mellon in the new
offering Of 81 year and year bills.
Notwithstanding the trend toward
lower rates for investments and COM
mercial loans. bankers were hardly
prepared for a reduction OF " per
cent In the one year Treasury bills.
nor for the marking down Cf Sh
year bills to ~ per cent. Neverthe-
less. the new notes will give preseut
holders Of Victory ~ per cent notes
a very attractive security for 3h
years to come and It should be
further noted that the exchange OF
Victory notes is optional with them
and not mandatory. Victory notes
mature May 20. 1928 but may be
called for redemption in whole or IN
part at the option OF the United
States on December Is. 1922.
Secretary Mellon announces that he
will offer an unfixed amount Of 3l
year notes with interest at a. per
cent in exchange for outstanding AZ
per cent Victory notes; also an issue
Of $3.50 00o. 900 in year az per cerft
certificates in order to provide FUNDS
to meet Federal obligations rnatur-
ing June IS.
II should be noted, IN connection
with the offering to exchange these
Victory notes, that the total amount
outstanding on June l was S2,blT..
019 $50.
The trend of prices OF the listed
Mexican bonds IL an indication that
little progress is being made by the
representatives OF Mexico and on
that country's bondholders, in ad.
justing the foreign debt problem.
Since last Friday, when the parleys
began, the Mexican SIS have declined
from IS to 59%. and the As from %
to so. New York bankers who have
been affiliated with the committee
are extremely reticent on the SUD:
ject Of the daily conference. Should
the natural resources Of Mexico, es.
eciaIly in her oil fields. continue To
ba ndon their showing as al present
the national debt problem should
not be a serious barrier to complete
! financial reformation Of that coun'
try.
According to the regular monthly
| Dow. Jones compilation, Lond trad
ing on the New York Stock ES'
change for the month Of MAY TO-
tailed s374,427,o00 compared With
s44s. .s23.00 in April and s241,20o,-
600 in May, 1921. Daily average
sales were: Miscellaneous $S.sc5.-
ass. Liberty issue. S5,575,e54; total.
all bonds. S14.401 ,039: and all bonds
May, 1921. S10.055. 900. Liberty
loans totaled s144,ss7,ooo. Chief
transactions were: Fourth 4H's
s3s, ,ss2, 900; Third 4k's, s34,15e,ooo:
second AIS, s2s.33s 900; First 3h's'
S19, 800. 900 and Victory 4&'s, VS.
5o2, 900 Foreign dealings. French:
Belgian. British. Colonial end
Canadian. were s1s,6o5.o0o in May,
1922, against. s21.727 900 in Aprfl
and s22.3so.oo0 in Nav. 1921. Brit
ish loans totaled s6,o27 900.
The Consolidated Gas Company
announces that II is now prepared
to redeem on September l all OF its
outstanding secured per cent con
vertible gold notes at i02h and IN.
terest. The original issue totsled
S25, 900 900, and II is understood that
large number of the notes have
been actually converted into the
stock Of the company. The corn
pany points out that under the terms
Of the agreement. the bondholders
have the right to convert them into
common stock on any interest date.
As there is only one interest date.
August !, 1922, in the intervening
period between the present and the
date Of redemption. the company is
giving notice so that holders OF the
bonds have ample opportunity TO
convert them by August l, when TIE
y,rfytle0e 'expirea