The Washington times., 1928-01-10
NEW TREASURY
ISSUE JAN. IS
BY RICHARD HATT0N

yesterday 1t Is announces that the
Treasury offers for subscription
81 per cent Treasury notes, Series
C.193O-S2, dated and bearing inter-
est from January is, 1928, due
December is, 1892, redeemable at
the option of the United States at
par and accrued interest on and
after December is. 1880. The mites
are offered only In exchange for
third Liberty loan Az per cent
bonds.
Ont january 16
Secretary Mellon made the follow
Ing announcement:
THE Treasury announces that on
january lis 1t will Issue new az per
cent Treasury notes, Series C-195D-
81, in exchange for third Liberty
loan ~ per cent bonds OF 1928.
The new notes will be dated and
bear interest from January 49, 1928;
will mature December 15s 1882, ana
will be. caIIabIe on and after De.
cember lis, 1880. These notes viii
be issued only In exchange for the
third Liberty l1an bonds, and the
amount to be issued will be limited
BY the amount OF such bonds ten
dered and accepted. The third Lib.
erty Joan bonds mature on Septem.
Der Is, 1928, and viii not bear In.
tereet after that date. The present
exchange offering gives holders OF
the third Liberty loan bonds an
opportunity to exchange their bonds
as Of January 16 1928. par for par,
for Treasury notes bearing IN per
cent interest from January l6t l92S.
Those taking advantage OF this
offer win receive, when the new
notes are delivered, interest In full
to March is. 1873, on their third
Liberty loan bonds, without reduc.
tion because Of the earlier redemp.
ton. This interest payment will
compensate holders OF these bonds
for the premium az which the bonds
are now ceiling. The Secretary of
the Treasury reserves the right TO-
close the offering ct any time with
out notice.
Coupon bonds must have March
is, 1928, and September Is, 1928,
coupons attached and registered
bonds must be assigned IN accord.
aTlce with general regulations OF
Treasury Department.
Subscriptions viii be received al
the Federal Reserve Bank and its
branch offices.
Insurance Stocks Rise
The tremendous appreciation in
the market prices Of leading In.
sufance stocks during the last 30
years IL pointed out by Gilbert
Elliott and Company IN their most
recent bulletin. For IL LEADING
companies the only ones for which
reliable quotations can be obtained
prior to 1900, investment In these
companies has appreciated 300
per cent.
Stating that the national income
for 1928 according TO indications.
will be 500. OOO, 900, 600, an analysis
of business conditions made by
the Alexander Hamilton Institute
says: In 1911 the national IN
come Of the United states was
estimated 1T $31 200. 100000. The
total bank deposits on June 80
81 that year were $4,000, O00, 900.
The national income was 80 per
cent greater than the bank de.
pogits. In normal wears such a
relationship Is to be expected.
When there is rapid imitation Of
commodity prices. however there
IS a faster turnover Of bank de
oosits and the national income ex
ceeds bank deposits by 100 per
cent or more. On the other hand.
when commodity prices suffer
sharp decline, the turnover of bank
fiepoaits Il less rapid and the ma
tional income is only Is to ~
per cent greater than deposits.
ION June 80. 1927. the total
deposits of 27,O6i banks In the
United States amounted to S5l.
500, 200, 900. Since bank deposits
are increasing at the rate of about
81, O0O. 600, 900 per year. we may
expAct total deposits on June 80.
1928, to BE- around Sb3,0O0.O00, ODc
Assuming 4 free turnover OF de.
posits. the national income should
be at least 80 per cent greater
than deposits.
Total Bank Deposits
present indications IRE that trade
will be a little slow Turing January
and February. From March, 1928,
until March, 1929. however activity
should equal the normal trend or
better and a national income of 100
billion SnOuI0 De WTneSSea duELhS
that 12.month period.
1.-THE annual savings nave been va
riously estimated a. IL to Is per cent
of the national income We shall
select a ratio of IA per cent. At this
ratio the annual SAVINGS of 1928 will
be $4,000. 100000 as compared with
$13, 700 ,00O, 900
New construction tends to grow
in proportion with bank deposits.
national income and annual savings.
In 1927 new building amounted to
So .6O0. 900 900. In 1928 new building
should approximate $9,O00,0O0, 1000.
There il also some relation be-
tween fIotations of domestic securi-
ties and new constructor While
new building increased from $6,400,.
600, 600 in 1924 to 100000. 900 in
1927. public offerings Of domestic
securities increased from $4,000, 000,-
600 to $4,000, 900 900, refundiug ex-
cluded."
Industrial Show
Leaders In the Washington Cha m
Der OF Commerce are planning the
fourth industrial exposition to be
held from March IL to ~ A. the Au-
ditorIum. as the annual elimination
OF the orga nization's "Pny In Wash
inUtau" ga m OafCO,