The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-26
Call for Victory Bonds
Issued by Government
Means Additional Debt

wAsHINGToN--The action oI
the treasury department In calling
for redemption on June is tho
s4O0, 900, 900 outstanding Victory 3A
pfr cent notes. the fully tax exempt
portlon OF the last war loan, follow.
closely on the retirement OF 5000.
600 900 of the Victory issue by ex.
change for treasury notes due In
1898.
These operations are OF interest AZ
representing thu first retirement OF
the war debt other than by pur.
ohases in the open market and the
calling in OF the sx per cent notes
for redemption will have a place In
the records as n substantial reduc-
lion In the debt on the first date
when this can be accomplish, d
otherwise than by voluntary sale
or exchange on the part of bond
holders. The Victory notes are due
May 30, 1928, but are redeemablc
nt the option of the government on
June is or December 10 OF this year,
But II would be easy to over
emphasize as factor in the
handling of war time bond issues
the measures by which the govern
ment has been seeking TO reduce the
amount OF Victory notes TO fall due
next year-measures that include
purchases from the sinking fund cs-
tabllsh"d by law. purchases through
issues OF short term notes exchange
for short term notes, and n part call
'or redemption which must be
financed mostly by short term bor-
rowing. What most needs to be
pointed out at this time is the fact
that the greater part of current re-
tirement of the Htory issue means
simply the incurring of new debt
maturing within the next few years,
and that nothing In the way OF a
definite funding operation has yet
been approached.
Yearly Obligations.
On Jan. 81 the gross public debt
was s23.3SS, 900. 200. or this amount
based on Secretary MELONS figures
a month earlier and adjusting for
changes duo to the last short term
borrowing. about $4,000, 100000 will
fan due within the next 15 months
This includes Victory notes-now
about $4,000, o, 0,000--treasury notes
md war savings certificates.
Retir ment OF Victory notes from
the sinking fund and other non-bor-
rowing sources in this end the next
fiscal year is matter of estimate.
only. but on the basis OF past figures
II is conservative TO suppose that
such purchases of the Victories will
reduce the amount outstanding by
something more than $500, ,000, 900.
SO on present basis of calculation
the amount OF debt that calls for re-
funding within n year and n quarter
is in the neighborhood OF s5,50O,-
100000. In addition, with the new
issue now in process included, the
government has 81 300, 900 OF
treasury notes due In 1924 and 1925.
And three years beyond the last of
these will come the Third Liberty
loan, which, with allowance for
sinking fund purchases. but without
assuming any previous retirements
otherwise. Is likely TO stand ut ma
turity around $4,000. 900, 900.
In the problem OF caring for this
debt, which is stated only after al
lowing for approximated retirements
from revenue through the sinking
fund and otherwise. no reliance can
be placed on anything other than
borrowing operations. Foreign
debt payments offer theoretical
possibility. but actual receipts from
this source are uncertain and at best
variable. AS to the current income
and expenditure CT the government,
Secretary MELONS recent letter TO
Chairman Fordney OF the house
ways and means committee shows
that on the basis of present budget
figures and not allowing for the
chance of further shrinkage in va
riOtis receipts. the signs Doint TO a