The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-10-30
j. s. BUYS BACK
BLOCKS Of
SECURITIES
100000. 900 Worth Will Be
Retired This Year, Invest
ment Bankers Hear.

The United States Government
will spend 300,000,000 in purchas.
ing its own securities for retire
ment purposes during the present
fiscal year, according to an ad.
Blress made today by Assistant Sec
etary of the Treasury Garrard B.
Winston before the Investment
BANKERS Association of America,
in convention at the Willard Hotel.
In an outline of the history of
Government finance, the science in
volved and the methods used, he
told the delegates that the United
States has made a most remarkable
record in reducing its debt during
the past four years by over four
billion dollars, and that he believed
the public debt would be substan-
TALLY retired by 1852, which year hap
pens to be the maturity date of the
last maturing funded obligation Of
the United States.
Cannot Guarantee Future.
There are many contingencies
which affect this estimate" he de-
clared, but it is safe to assume that
a plan or refunding that part OF the
maturing debt, which cannot be pres
entity met, to maturity dates within
the next thirty years is sound
policy to be pursued.
For its influence on the pros
perity OF your business, the question
you ask is: Will the Treasury in its
operations contribute to or take from
the supply of money which, like a
@great irrigation reservoir, exists here
lin America and from which you
raw your customers? We cannot
Guarantee the future. II new ex.
traordinary expenditures are author
lied, new financing may be neces-
sary or debt reduction slowed up or
stopped, but under conditions as
they now exist see no future drain
by the Treasury. We have drawn,
and drawn deeply, from that reser-
voir in the past, but only during the
war. To be able ourselves to draw,
We have had to increase the drain
age area of the reservoir by the edu.
cation of the small investor.
To Buy Own Securities.
During this fiscal year the United
States win spend $500, 000. 900 in pur-
chasing for cash its own securities
for retirement. This means that
each month holders of SIS 900 900
OF securities viii have paid back to
them their principal and viii be look
ing to you for new investments. In
like manner, $3.50. zoo, 900 a year of
United States securities will be pur.
chased by the British government
from holders here and turned in for
retirement.
THE effect Of pouring nearly half
q billion dollars every year back
into this reservoir for you to use
must he encouraging fo Won IF ia
ruly bread upon-the water returned
you. During the war you sacri-
heed your own profits to sell Gov
eminent securities. Now with nor
NAL conditions permitting, you will
receive the ultimate reward for your
labors in the available investment
funds you yourselves have helped to
create"
Investors holding victory notes to
the vast sum of $40, zoo, 900 and ma
tured War Savings certificates to
the amount of $22, 900, 900 have not
yet presented them for payment. il
was brought out in the report of the
bond committee of the
association, read to the convention
this morning.
Under the circumstances these In
vestors are losing $7,316 a day in
interest and in addition, over 500, 900
investors holding the temporary Lib
erty bonds. which were issued with
four coupons only, valued at $43, 000,.
900 have not presented them for ex.
change into permanent bonds.
Education of Investors.
The report also stated that the
committee had made efforts to edu.
cate the small investor from selling