Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-13
TREASURY REFUND
FINANCING IS DUE
Last of High Coupon Certifi-
Gates Soon to Be Called
for Redemption.
BY CHARLES f. SPEARE.
Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 13.-Preparations
will soon be under way by the Treasury
Department for refunding the last Of
the high coupon Treasury certificates
which were issued during the era of
money stringency and compelled the
Government a year ago to negotiate
$500, 000, 900 nine-month loan at SIS per
cent.
These notes fortunately matured at
time when rediScount rates were fall
ing, and at substantial saving of In
terest to the Nation. Following the sale
of a new issue of 10000 of Treas
ury bills, for which bids will be re-
ceived next Thursday, Secretary Mellon
and his staff will take up the question
Of the amount and the character of the
next loan, which Is to retire about
$3.50 ,000, 900 of AS per cent certificates
that came on the market last Septem-
Der and were nearly three times over
subscribed.
Last Notes Outstanding.
This is the last one of the high cou-
pom Treasury notes outstanding. It's
issue conceded with a per cent Fed
eral Reserve rediscount rate In New
York, and approximately the high
average of stocks last year, also Of
brokers' loans. It's success under these
circumstances was due, not only to the
unusual rate of interest allowed on 1t.
but to its exemption from ordinary
normal taxes and immunity from sur
taxes. In adopted its policy toward this
issue the Treasury Department depart
ed from former custom, and by making
the AS per cent notes free from taxes
and giving an equivalent from it Of 6h
per cent on incomes in excess OF
$l00, 900 it drew in an enormous amount
of subscriptions from individuals and
| relieved the banks from taking large
part of it at time when their re-
sources were being used to greater
extent than ever before for collateral
loans in the market.
With the AZ per cent certificates
| within a month of maturity, they are
quoted only a little above a per cent
basis. The next Treasury issues follow
| ing it are the ga per cent notes, due
September Is. which are quoted on
about a 25s per cent basis, and the 3H
per cents, maturing December is, now
close to a 8 per cent basis. If the
Treasury Department follows its former
| custom, 1t will offer for subscription
March, 1881. AS the rate to be placed
on this note will represent the best
| Judgment in the country as to the prob
able course of the money market dur
| ing the remainder of this year and In
the first quarter of 1881, this will b
looked for most eagerly by investment
| houses and business interests as cue
| to what they may expect to pay for
money in the future.
Several Sales Made.
Since the AZ per cent certificates
| were issued the Treasury Department
has made several sales of Treasury bills,
These have been steadily gaining In
favor. They are attractive to banks and
corporations at a time when there is q
plethora of funds and an urgent de-
mand for short-term securities of the
highest quality. It is quite probable,
therefore, that Secretary Mellon may b
disposed to increase the sales Of Treas
ury notes and to decrease the amount
of Treasury certificates in his program
Of refunding the $549, TOT 500 of AZ per
cent certificates due on June 16.
(Copyright, 1901