The Washington times., 1929-05-31
TREASURY BILLS
7APP!R0VEDB
HOUSE,
BY HARRY GUSACK 2,
Financial Editor

auAuth0rlty proVldlnS LOT he"
issue of short.term bills TO pc
known as short-teru1 Treasury bills,
was voted by the House Of Repres
sentatives, May. 20.
Undersecretary Of the Treasury
Ogden il. Mills explained the
measure before the House Ways and
Means Committee, after which It
was considered Id executive session
and favorably reported by the unani'
nous vote Of the COMMITTEES.
In the hearing before the COM
nnittee, Undersecretary Mills said
the bills, wonld mature within 30
days. They would be sold under
competitive bidding, he pointed out.
In this way, he explained. the
money market would adjust the in
terest rate probably much more
closely to actual money conditions
than the Treasury Department
could do. The bills would be issued,
he said at ihtervals, as the Govern
ment needed the money. and thelr
maturity would coincide with
periods at which income tax collec'
tions are made.
Mr.. Mills pointed out to the COM
nnittee that on March Is of each
wear the Government has to borrow
$3.50, 900, 900 to meet interest pay
nents. Under the new planI the
amount would be taken care OF by
the issue of the proposed Treasury
bills. The interest rate on them,
he said, would be fixed by cornpeti-
tive bidding instead of by the
Secretary of the Treasury as is the
ease of certificates Of indebtedness
Issued at present.
The new system, MFR. Mills said,
would be put into effect gradually,
and ultimately 1t might permit the
Secretary Of the Treasury to do
away with the present depositary
system and the interest burden Of
that system on the Government. He
said, however, that the present
system should not be abandoned
until after the Treasury bill plan
Of financing has been given a
thorough trial.
The bill now will so to the Sen
ate and Is expected to be acted
upon favorably.
81
~, Reduce Debts
Railroads of the country which
became Indebted to the Government
during Federal control OF the car
riers or through settlements made
after the passage Of the transporta-
tion act are gradually reducing their
Indebtedness, and, according to fig
ures made public May 30 by the
Department of the Treasury, they
paid $1a,6e2.366 In the year ended
March 81.
The department held total of
$62,S75,S72 of railroad and kindred
obligations on that date, compared
with an original total that exceeded
$460, ,000, 600.
The largest payment during the
12-nonth period was from the
Chesapeake and Ohio Railway Com
pany. which liquidated a debts Of
$S,07S,023 in full. This obligation
was acquired under section 210 OF
the transportation act of 1920, and.
with two exceptions. was the largest
amount owed by any single carrier.
H. -
Store Sales Gain
Aggregate department. stores sales
for April were 2 per cent larger than
in April, 1928, according to reports to
the Federal Reserve system by 52S
stores, the board announced today.
On a daily average basis, however,
the sales were 2 per cent smaller, re-
flecting the fact that no part OF the
Easter selling season this year came
in April. Inventories Of the report.
ing department stores at the end qf
April were 2 per cent below the level
of year ago.
Reporting chain stores, except
shoe and candy, made substantially
larger sales than in April of last
year, which reflects in part. the es'
tablishment during the year of addi.
tionar stores" the board said.
Shoe stores in April showed loss
Of 5,4 per cent in business, while
ales of the candy chains dropped
off SO per cent. Percentage gains
we're as follows:
Grocery, 14.9; five-and-ten, So; ap.
oarel, dry goods, 12.s, and drugs, 90