Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-18
NEW GOVERNMENT
BONDS MAY APPEAR
More Treasury Financing in
Near Future Is Held
Very Likely.
BY. J. c. RoYLE.

special DlSpatCh 70 AHe 0tdI'
Investors who have ready cash idle at
present probably will have an oppor-
tunity to buy additional Government
securities with it in the not distant
future.
The March quarterly financing OF
tine Treasury Department involving
$450 600 900 in new borrowings, resulted
in a heavy oversubscription, but the
outlook for additional offerings seems
extremely bright This is caused by
the request of the President for an
additional 100000 900 to supplement
the revolving fund available for use in
supporting the operations of the Farm
Board to stabilize productive prices.
Congress has approved of this request.
There is every indication also that
all the appropriation bills will go
through. since this is a congressional
election year, and measures calculated
to win approval of voters will be given
the right of way. 1t now depends
pretty largely on the amount OF money
which will come into the Treasury to-
day from income tax payments Treas
ury officials will set no definite inquire,
but il is known that they anticipate
receipts approximating $55O,OOO,OO0 on
that date.
Budgets Closely Calculated.
Budgets, expenditures and financing
have been calculated pretty closely on
this basis. The addition OF another
500 100000 for expenditure would
seem to indicate, therefore, additional
financing will be necessary after today.
This in all probability will take the
form of discount bills or Treasury bills
sold on a discount basis. There have
been two issues of this kind in the last
nj hOfh haup hppT C1nQ1l-
larry successful. These might be so
dated and issued as to mature early
in July, after the end of the present
fiscal year, June 80.
On the other hand, it is believed in
well informed Governmental circles that
the income taxes, especially the corpo-
ration taxes, will total far higher than
has been anticipated If this IS the
case, it is probable that no additional
financing viii be necessary to enable
the Treasury to keep 'out of the red"
until the end of the fiscal year.
There can be no doubt as to the sue
cess of any new Treasury financing.
The Treasury today is in a better po-
sition to borrow than for many years.
This is because many investors are
holding their funds in cash. awaiting a
settlement of the uneasiness of the Sc
curities market before making perma-
ucIlb AAlFEolAAACll1o'
Treasury Bill.
To all such the Treasury bills, being
short term securities and offering many
advantages, are absolutely safe. They
will liQuidate and can be turned into
cash at a moments notice and yield a
return during a period when the money
might otherwise lie idle. The same adj
vantages accrue to many short-term
issues of State and municipal bonds al
present, and in view of this fact the
market for those securities seems likely
to be we'll sustained for the coming six
months at least.
Controller of the Currency Pole says
that the lowering of the New York and
Cleveland rediscount rate, while largely
psychological, will aid business, and
whatever aids business will give an i'm
petus to the absorption of investment
securities on the part of the public.
(Copyrisht, 1900