The Dawson news. (Dawson, Ga.) 1889-current, 1923-10-02
Operations of the Treasury.

! ODerdClOTS Oh
! The recent announcement by the United
States treasury department Of new issue of
certificates of indebtedness in the sum OF $ZOO,
OO0000 maturing in six months from Sep
TENDER 18th. directs attention anew to the
master1v way in which the treasury's prob
| lem of financing has been handled by the
present secretary. Without going into de-
tails it is sufficient to say that during the
| last two years the governments gross indebt-
edness has been reduced in the sum OF ST.
| 644.0O0000. On April 80, 1921, the total gross
debt was $23994, 100000 and on June 50 last
| it was $223500OO,O0O This reduction has
been effected and the conversion OF huge
| floating Indebtedness OF large amount
of short term obligations has been accom-
rlished without any severe strain on the
market and without disturbance to business
in general. A part of the floating indebted
ness has been paid part of the short term
obligations like the Victory notes and the
war savings certificates have been retired
out of current receipts and another part re-
funded In this connection it is interesting to
note that large amounts OF the Victory notes
and the war savings certificates called for
redemption have not been presented and
still are outstanding.
The operations of the treasury have con,
sisted of series Of short time borrowings,
together with effective utilization of current
revenue from internal and other taxes. New
issues of certificates of indebtedness have
been made and utilized to retire other issues
maturing, but at each maturity there has
been a reduction of the total amount Thus
the net result over a two-year period has
been to take up 81 ,50000O000 of short dated
debt maturing in two years and retire or re-
finance it, 1t is significant that the treasury
has been able to borrow from the public in
two years the sum of $7,50O000,000. and it
is also significant that twice that amount, or
$4,000, 100000, was subscribed to the treas
urys offering.
The tremendous scale OF the treasury's
operations is revealed by the statement that
maturing obligations of the amount Of $780,
100000 had to be met in September. These in
clude about $29O,0OO,00O in certificates of in
debtedness. To meet these obligations it was
necessary for the treasury to borrow only
S200,OD0000, the remaining $300,000,000 or
more being cared for by current treasury re-
ceipts.
At no time in its history has the govern
ment had so complicated and difficult prob
lem of financing as confronted it two years
or more ago. 1t hardly seemed then that it
could be solved without additional bond is
sues. Nevertheless, the impossible has been
accomplished. Rehnancing has gone forward
quietly, without any drives or appeals to pa
triotism. The money resources of the coun-
try have been proven abundant. The gov
ernment's indebtedness has been steadily re-
duced The achievement not only testihes to
the skill of Secretary Mellon, but it also dem
onstrates the solvency OF the American gov
eminent.
The governments total indebtedness on
June 30th last stood at something more than
$22 900 100000. If that sum is reduced at the
rate of $1,O00,00O,000 a year the whole debt
will be paid in p years. That is not SO bad
and perhaps we shall be able to do better