Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-10
NEW j. S. LOANS !
MAY Be DELAYED
Financing Is Not Pushed,
Although Margin of Work
ing Capital Is Small.
By J. C. RoYLE.

The date on which additional new
Government financing win be announced
by the Department of the Treasury still
is uncertain. There seems to be de-
termination to defer such financing IS
long as possible
Treasury bills which fall due ON Mo-
veHnber II and which amount 70
$120.000.0o0 will be taken care Of by
the issue o. Treasury bills totaling
S125, 100000 .llch were offered the
public by The nsury today. But the
Treasury NJ 4 of working capital
from month to month is now smaller
than at any time since 1918. This fact
may account for the borrowing Of
$4,000 900 above the amount required to
meet the November II maturities.
Two Other Issues.
The next maturities which must be
met are two other issues of biAs-one
for S5l ,262 900 and one for ssh ,263 600,
which mature on December 16 and II,
respectively. In addition, there will be
an issue of certificates of Indebtedness
amounting to $43S, 34l 900 which viii
come due on December Is. The prob
lem Is to meet maturing obligations, vet
TO avoid new borrowings which would
leave money on which interest must be
paid unusued in the Treasury.
The final income tax payments come
due December is, and these will UNI
doubtedly go some way in meeting the
maturing December obligations. In adj
dition. the Treasury has net balance
OF approximately 5000, 900, 900 at the
present time. However some addi-
tional Treasury issues are anticipated
not only for near needs, but because
during the next year maturities are al
ready fixed for March, June and Sep
tember, and further financing must be
timed with due regard to its affect on
the provision Of funds on those dates.
The total OF the 1881 maturities already
hxed is well above 81 ,250, O0O, 900.
Treasury officials expect that the
BIDS for the issue announced today will
De very high. That is the Government
VIII nave TO pay very small rate of
interest. This may influence further
borrowing as the monetary situation
would seem to make it timely.
National Debt Increase.
The national debt shows an increase
during the month of October Of $685.
324,694, bringing the total to $16179,-
1857, 1896 as Of November /. This is ex-
planned by Treasury Department. on
Gals, who declare that when the bond
market Is favorable the Treasury makes
purchases Of Government securities
from the sinking fund and thus re-
duces the debt total. Few purchases
nave been made thus far in the fiscal
year and the debt has not been cut
down or held stationary. The deficit
at the end of the first four months of
the fiscal year amounted to SITS, 138, 1855,
or over SAL 900 900 larger than on the
corresponding date last year.
National bank resources, according
to the controller of the Treasury. ae-
gregate $2S,378, $50, 900, or $737, 856, 900
below the total resources of the national
banking system on June 80, 1890 De-
spite the fact that they had declined
steadily In the period since July /, the
condition showed an increase Of S454,-
$4,000 over the resources of the banks
at this time in 1929.
This figure gives most graphic pic
ture of just what is happening in the
banking and financial world. The banks
have curtailed lending and the CUSTOM
crs OF the banks have curtailed bor-
rowing. That makes the bank resources
higher than they were at this time
year ago, when the banks were making
and customers we're seeking loans.
Loans and discounts showed decreases
for the last three months of 1924, 647,-
900 and for the IL months of $685.
799, 900.
More u. S. Securities Bought.
The amount of investments in Gov
eminent securities increased indicating
the care and caution with which in
vestment funds are moving. The de-
cline in the last three months of the
resources Of national banks is attrib-.
uted largely to the drop in security val-
ues. The declines which preceded and
followed the Prince & Whitley failure
on the New York Stock Exchange had
much to do with the alteration of the
conditions.
Copyright, 1900