The New York herald., 1922-01-25
Total Public Debt.

ment on december 81, 1871, on the basis
| of daily Treasury statements. amounted
to $23.43S.9S4.351, of which almost
S8,5o0, 100000 falls due within the next
sixteen months. over $500, 600, 900 of it
in tho form of Victory notes, which
mature May 2, 1928. about So, 200, ,000, 600
In the form of Treasury, certificates
which mature at various dates within a
year, and nearly s700, 600, 900 in the form
OF War Savings certificates. which ma
ture January 1, 1928, or may be re-
deemed before that time. THE refunding
of this vast maturity will require the
Treasury's constant attention from now
on. Altogether it makes up an amount
almost as large as the Fourth Liberty
loan, and considerably more than the
First and Second Liberty loans combined
The Liberty loans were foated DUR
ing the stress of war. through great
popular drives and with the help of a
countrywide Liberty Loan organization
that comprised perhaps 100000 per-
sons To conduct refunding operations
on similar scale in time of peace to the
amount of ss.5o0.000,000 is a task of
unparalleled magnitude, and IL is OF the
utmost importance to the general well
rare that 1t be accomplished without
disturbance to business or interference
with the normal activities of the people.
embarrassed by other operations.
Victory Loan Problem.
"The greatest problem is the victory
Liberty loan. which amounted to So
S4sOOO.O00 on December 81, 1921. A
maturity OF this size Is too large TO nav
OH or refund at one time and IL Is ac-
cordingly necessary that the Treasury
should adopt every means at it's COM
mand to reduce the outstanding amount
In advance of maturity. To this end IL
VIII be the Trcasury's policy to con-
tinue to issue short term notes from
time TO time when market conditions
are favorable and to use the proceeds
10 effect the retirement OF Victory notes.
accomplishing this, IL they cannot be
had otherwise, through tho redemption
or part OF the notes before maturity.
1t Will likewise be the policy, so far as
possible, 10 apply the sinking fund and
other special funds available for the
retirement of debt to the purchase or
redemption or Victory notes.
The $1,000. 600. 900 OF Treasury cer-
tlfcates outstanding and the $780,
100000. or thereabouts, OF War Savings
certificates raise similar problems and
VIII likewise require refunding opera
tons on a large scale during the next
year and n half. The Treasury has al
ready placed on sale. on December Is.
1891, n new issue OF Treasury Savings
Certificates. which Is designed to provide
In part for the outstanding savings GER
tincates TO be redeemed.
rinds Refunding Necessary.
1T Is clear, however, that an impor-
tant part OF the maturity on January /,
1923. VIII have 20 be refunded, at least
temporarily. into other obligations. The
bulk OF the Treasury certificates Of in
debtedness will also have to be refunded
probably into other Treasury certih-
Gates. for II IL almost necessary while
Government expenditures are so large
and tax payments so heavy, TO float a
substantial amount OF Treasury ccrtifi-
Gates in order 10 carry on current op-
erations without money strain.
IF the situation continues TO develop
in an orderly way. and no complications
are introduced in the form OF extraor-
dinary expenditure which would force
new borrowings, the Treasury expects to
be able to proceed with the program al
ready outlined, and such other refund
ing operations as NAV prove TO he ad-
vsable within the limits OF its existing
authority and without interference with
the business OF the country or disturb 7
ance to tho Investment markets.
"The time IL coming. perhaps In the
near future, when II will be possible TO
undertake refunding operations for a
longer term with view to the distribu- 4
tion OF the debt among investors on q !