The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-12-03
u. S. TO OFFER.
LONG TERM
BONDS
Treasury Announces Decenn-
Der Financing With $780,
600, 900 Issue

The Treasury today announced
its December financing, which
takes the form OF an offering Of 4
per cent Treasury bonds Of 1944-54.
The bonds will be dated and bear
interest from December 10, 1924,
maturing December Is, 1854, and re-
deemable at the option of the
United States on and after Decem-
Der Is, 1914, Fon four months notice
Of redemption. The offering is for
5000, 900 900, or whereabouts, with
the right reserved to the Secre.
tary Of the Treasury to allot add.
tional bonds to the. extent that
Third Liberty Loan AZ per cent
bonds, maturing September 15,
1928, Treasury notes Of Series A
1925, and Treasury certificates Of
indebtedness Of Series TN 1925,
both maturing March is, 1926, are
rendered in payment. Treasury
certificates Of Indebtedness Of
Series I'D and TD2 1924, maturing
December 10, 1924, win also be
accepted in payment, but are con-
sidered part of the cash offering.
The cash offering will be restrict.
Cd to the necessary cash require.
ments to carry the Treasury until
tho March financing period, but
the exchange feature Of the offer
permits the use Of securities matur'
ing in March and Third Liberty
Loan bonds to acquire the new
bonds, and 1t is expected that the
holders Of the present securities
win to q large extent avail them
selves Of their rights. This Is the
first offering of q long-term Gov
aAu,vnwNa ovn% hnn6 Ciraaa Tho iacYH0mNQ IN
October Of 1922 Of the Treasury
AZ per cent bonds or 1947-52, which
are now quoted on the market at
q very substantial premium, and
the banks and the investing public
generally should welcome this
opportunity to participate in long
term Treasury issue. The applica-
ton of March maturities or Third
Liberty Loan bonds in payment Tor
the new Treasury bonds VIII IN
part relieve the somewhat heavy
financing otherwise necessary In
March, 1925, and on the maturity OF
the Third Liberties In September
1928. Such exchanges mean no
withdrawal of funds from the invest
xnent market, but merely q change
in the character OF the investment
from short to long-term.
The extent to which Government
obligations in the hands OF the
public have been reduced IL re-
markable. In the five and one
half years since June 80, 1919, the
public debt has decreased from $780,
484. SOC, 16O.O5 to $21,241 ,535, 1928, a
total reduction of $4.242,971 ,O21.77.
This reduction has been effected,
first, out of the sinking fund, for.
eign repayments and other similar
items, the total of which for the
current fiscal year is estimated at
SAT-, 500, 401, and which items are
chargeable against the ordinary
Government expenditures before the
budget will balance; second, from
reduction in the working balances,
and, third, from surplus.
81. Through the orderly and con-
tinuous reduction in our national
debt out of the sinking fund and
other items, upon which the public
rely, Treasury obligations should in
crease in value. Their supply is
rapidly decreasing and the demand
for such type Of investment has
increased.
No further Government financing
10 expected until next March.
The bureau of insular affairs,
War Department, will open bids on
January Z, next, for an issue Of
] 81, 000, 900 per cent public improve
ment bonds of Porto Rico. The
bonds are payable semi-monthly on
January l and July /, and are in
coupon form in the denomination Of
$1,000 only. Bond sare payable an
nually in series of 100000 each on
July 1. 1850, to July l, 1855, and
are redeemable on July /, 1943, or
on any subsequent interest pay
ment date. Principal and interest
will be payable at United States
Treasury, Washington, D. C. The
Attorney General of the United
States has passed upon the legality
Of the issue. Bonds are acceptable
at par as security for deposits Of
public moneys or postal savings
funds of United States; also for de-
posits of Porto Rican funds and as
security required by laws Of Porto
Rico to be deposited with treasurer
Of Porto Rico.