Evening star., 1925-09-04
GOVERNMENT DEBT !
SLUMPS IN YEAR
Reduction of s7e8, ,688, ,925
Recorded for Period End
ed August 81.
BY CHAS. p. SHAEFFER.

Gross indebtedness of the United
States Government on August 81 last,
amounted to S20,446 So, ,8a772 repre- >
senting reduction in the last IL
months of S79S.6sS.924.80. and parinE,..
Of $3.50 ,03S,750.29 over August 3la
1919, when the war debt reached itFn
peak, $26, ,596. .701. .648.0l
Slightly more than 75 per cent Of
the gross Indebtedness is represented,
by bond issues. of which there are
SIS SOC, ,524.500 outstanding. Treasury
notes In circulation total 81 .404 941 400
and certificates $57i .4S5, 900 Treas surv
war savings certificates outstanding
amount to $685. 1879.
Matured debt on which interest has
ceased totals $17.74S .520.25. and the .
debt which bears no interest amounts
to 1858. .202, ,2S5.57
Net balance in the general fund Of.
the Treasury on August 81 amounted
70 1892, 1863 ,355.15.
Lower Interest Rates Seen
Delegates from 56 joint stock land
banks attending the annual conven-
ton In Colorado Springs have formu
Iated q program which. they antici-
pate, will increase by several hundreds
OF millions of dollars the supply or
money which will be available for farm
requirements at lower interest rates
Representatives of the United States
Government, which is closely studying
the agricultural credit situation. gave
counsel as to the best ways and means
of amplifying the amount of money =
which each year may be loaned to re
sponsible farmers.
Under the plan, joint stock land,
banks expect to borrow money from.
the public through the sale of wholly
taX-exempt bonds at Az per cent
This money in turn will be loaned by
them at 5la per cent. Both interest
rates represent a concession of one
half of per cent under present pre-
vatling levels.
Funds for All Farmers.
Robert a. Cooper, Federal farm
loan commissioner. told the delegates r
| that for the first time in the history
OF the United States there is now an
abundance of money obtainable for
any farmer who has productive land 3
a reliable knowledge of his business
and a reputation for paying his
debts" This condition, which he at
tr1buted in large measure to the sue
| cessful operation of the Federal farm
| loan system and supplementary in
sututions, was believed by him 10 in ,
| sure prosperity for the farmer--a
kind of prosperity he, never has known,
beforehand a degree of prosperity
| which Will be limited only by his abil-
! ity to use with advantage the money
! he obtains" =
According TO DR. David Friday. un- a
official Governmental adviser on agri-
| cultural problems, the supply of loan Il
] able funds is now ample and will con
tinue SO. There is every Hketihood
! that the supply of capital will flow to =
| the investment market in compare
| lively steady stream during the next .
| three or four years" he said. Moth
! ing but continuous demand for capi
/ tai can keep interest rates at their
/ present level and any sIackening OF 2
| demand Will send interest rates down
| and bond prices up"
Petition Before I. c. C.
The Chicago and Northwestern Rail
way today asked the Interstate Com r
merce Commission for authority 10 Z
acquire control of the Chicago St Z
Paul, Minneapolis and Omaha Rail =
way through the acquisition of cap.
ital stock of the latter. :
! Outstanding capital of the Omaha q.
carrier, other than that already owned =
| by the Northwestern. was given at r
| S5,S79,300 in preferred and s9.016,700
| in common issue. The Northwestern
has owned approximately 81 per cent
| OF the Omaha stock since 1882
Acquisition of the remaining shares
I would be upon an exchange basis at =
| the ratio of five shares of Mort Invest
ern common for seven shares OF. n
| Omaha common and three shares Of
! Northwestern common for two shares
! of Omaha preferred. IS
The Bureau of Finance of the In
| terstate Commerce Commission today
| recommended to that body that the
! Southern Railway Co. be authorized
| to abandon its line extending from
| Merristown to Corryton, Tenn. a
trackage Of SO miles.
! Railway Preferred Lower
/ Today's abbreviated session on the
| Washington Stock Exchange was fes-
tured by a further slump on the part
| Of Railway preferred, which eased off
to S73S on an odd-lot sale.
Potomac Electric consolidated 5s at
par and Capital Traction as at 99s,
was the only other activity recorded.
Labor Day Closing.
The Washington Stock Exchange,
! as well as all other exchanges. and
| local banking institutions will remain
suspended on Monday next, Labor day.
DEL FACE nM lAEDIT