The Republican. [volume] (Oakland, Md.) 1877-current, 1923-05-10
TREASURY CALLS
VICTORY notes
May Financing Plan Winds Up
First Phase of War Time
Debt Refunding.
U. S. DEBT NOW s2,40o,o0O
1925, 100000 Surplus in Treasury by
June Heading Bankers Say Mar
ket Is Wide Open for New Issue
and 1t Will Be Absorbed.

New York.-The United States Gov.
eminent announced a new issue Of
S4OO,OOO,OOO Az per cent Treasury
notes.
This is the long-expected May fnan,
cling over which Wall street has been
specializing for weeks.
The fiotation brings to an end the
first phase of the refnancing of the
Governments great wartime debt.
The new issue will complete the re.
funding and retiring of the Victory
Az notes which, when issued, aggre.
gated more than S4,O00,0O0,OOO
AS leading financiers and business
men had predicted, the offering is of
a short-term nature, maturing March
IS, 1927. 1t will be followed, bankers
expect, by a $1OO,OOO,OOO issue early
in June, to care for maturing certifi-
Gates of Indebtedness.
In placing the $500 100000 fotation
at 424 per cent the Treasury is meet
ing the yield of other short term notes
now outstanding, which pay from 4.61
per cent to 40. Wall street hasagreed
all along that 434 per cent would have
to be paid, and there was expectation
in some quarters of as high as 5 per
cent.
In announcing the new financing,
Secretary of the Treasury Mellon in
cluded a statement of the Govern
ment's fiscal condition. declaring the
Treasury's refunding operations have
worked out so well that all of the
short-term debt can be retired grad
ually from surplus revenues prior to
the heavy financing necessary in con
nectiOn with maturity that year of the
third Liberty Loan.
Secretary Mellon predicted the gross
public debt of the United States will
be cut to approximately S22, 1000 900
by the close of the fiscal year on June
80 retirement Of some $1,000, 600 600
Federal securities since April 80, 1921.
There will be a June 80 surplus in
the Treasury, Mr.. Mellon said, of $125,-
600, 900, or SG5,000,000 more than was
estimated by Director of the Budget
Lord, who predicted Saturday that
Government receipts for the fiscal
year would exceed expenditures by
some S6O,OOOOO0
Announcement Of the new note Of
fering with its AZ yield, is in line
with the Treasury policy, carried
through postwar financing to date,
excepting only the thirty-year bonds
of last fall, of refunding such maturi-
ties as necessary into shortterm obi
cations.
This program, inauguratad in 1921,
contemplated a gradual retirement
ahead of the first big wartime issue,
of such obligations as could be han
died, and a spreading over the interim
between that and the maturity of the
third loan of all debt that had to be
refinanced.
The plan has met with encouraging
results, Mr.. Mellon said, adding that
at no time has the Federal fiscal OPP
erationdisturbed industry and bust
ness. uccess of the effort, the Secre-
tary said, was due to rigid adherence
to the policy Of balancing the budget
as nearly as possible from year go
year.
Although the new note Offering, ma
turing in three years and ten months,
is announced as S40O,O0O,000, provision
has been made by the Treasury to
accept such additional amounts be-
yond that sum as may be represented
by exchanges of the old for the new
securities.
Mr. MELONS statement explained
that interest to maturity would be al
lowed on the Victory notes which have
been called, and which do not mature
until May 20.
Five days interest therefore is ac-
corded holders of Victory notes who
convert them into the new Treasury
notes. The notes will be issued in de
nominations of 500, $500, $1,000,
$4,000, $4,000 and $4,000, with cou-
pOns attached