Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-07
GOVERNMENT LOAN
TERMS ANNOUNCED
New U. S. Certificates Are
Offered to Public at 2 7-8
Per Cent Interest.

The Governments June financing is
on the market, with the announcement
by Secretary of the Treasury Mellon
of an offering of one year Treasury
certificates of Indebtedness at the low
Z rate of "a per cent, in the sum of
about. $500 100000.
This is to take care of the quarterly
obligations which. on account OF matur-
ing securities. and interest payments on
the public debt. exceed the available
Resources for these purposes.
The new certificates will be dated and
bearing interest from June 10, ana VIII
mature June Is, 1881.
Marketing Plans.
Applications will be received at the
Federal Reserve Banks. The Treasury
will accept in payment for the new
certificates, at par, Treasury certlhcates
of Indebtedness of series TJ-l93O
maturing June 10, 1880. Subscriptions
for which payment is to be rendered in
certificates of Indebtedness maturing
June 10 1880, will be given preferred
allotment up to $150,o00,o0o.
Bearer certificates will be issued in
denominations of $500, $1,000, $4,000,
$4,000 and 100000. The certificates
will have two interest coupons attached
payable December is, 1880, and June
is, 1881.
These new certificates will be exempt.
both as to principal and interest, from
all taxation except estate and inherit
ance taxes.
About $3.50, OOU, 900 of Treasury GER
tificateS of Indebtedness and about
SOS oo0, 900 in interest payments on the
public debt become due and payable on
June 16, 1880.
The interest rate on this new issue is
the second lowest of any Government
offering since the World War. In 1924
and in 1925 the Treasury sold issues at
and IL month maturities at a rate of
2st per cent.
The Federal Reserve banks, as fiscal
agents of the United States, are au-
thorized and requested to receive sub
Scriptions and to make, allotments on
the basis and up to the amounts indi-
Gated by the Secretary of the Treasury
to the various banks.
Income Taxes.
The Treasury is expecting the second
quarterly payment of income taxes to
bring in on June Is about $475, 900 00O
but this will not be sufficient to carry
the Government over the quarterly pc
Rod, with certificates falling due on
June Is and interest accruing on that
date on other issues of the public debt,
including Liberty bonds.
The end of the Governments fiscal
year is approaching June 80, and 1t
is understood that officials are antici-
pating no deficit There has been no
late authoritative estimate, however, on
how large the surplus may be.
Railroad Investing.
The mutual savings banks of the
United States have an investment of
e ~, he ot
tions of American railroads, according
to the National Association of Mutual
Savings Banks.
Total corporate financing for May
was 81 ia, 500, 600, a decrease of 20 per
cent from the $1,474, 100000 offered
in May. 1929, according to the Stand
ard Statistics Co. of New York. Offer
ing of common stocks was only $437,-
100000. less than half of the 1898, AGO.
900 offered a year ago. Bonds con-
tinued to show an increase, last months
total amounting to 1894 zoe, 900 in COM
parison with $404, 100000 in May last
year Both public offerings and stock
rights declined sharply, public financing
last month being S174,100,000 and
rights s365.000.0 900. while a year ago
these figures were 1881, soc, 900 and
S737, 800, 600.
General Motors Truck reports Yellow
Coach deliveries for May as the largest
in the history of the company, deliver
les for the month amounting to more
than $500, 900. This sum represents
sale of 403 buses, mostly of the large
capacity type The total compares with
deliveries valued at $1,535, 900 for the
corresponding month of last year.
Increased sales as reported are due
TO large orders recently secured from
Public Service Co-ordinated Transport,
the Greyhound System, Fifth Avenue
Coach and other prominent motor
coach operators.
Business Activity.
Business activity continues at "a dis
tinctly subnormal rate" according to
Pask g. Walbridge, members of the
New York Stock Exchange, in review
of conditions. I'VE are approaching q
period of seasonal Summer dullness,"
1t continues. 1T therefore seems I'M
reasonable to expect any definite or
sustained upturn for the present. There
is insufficient available liquid capital in
the form of savings, upon which to base
the foundation of a speculative boom,
and at the same time to absorb new
issues of securities which are urgently
pressing, particularly for foreign ac-
count"
Gross sales of the j. c. Penney Co.
for the month ending May 81 were
$17,169, 87496, as compared with gross
sales for the corresponding month of
1929, which were $16,717,O58.18. The
gain over last year amounted to $452,-
Sl6.78, or 2.71 per cent.
Cumulative gross sales for the first
five months of the year were $70,640,-
907.53, as compared with cumulative
gross sales for the same period of 1929
of SOS, 981 1888, showing a gain of
S4,659, 009.90, or 7.06 per cent for the
1ive-month period.
Southern Grocery Stores, Inc, re-
ports gross sales for the four weeks
ending May 81, 1890. of $1,254,000, as
compared with $l,228,000 for the cor
responding period of 1929, represent
ing an increase of 2.11 per cent For
the fiye-month period ending May 81,
1880, sales were s7,195 ,215, as compared
to $6,237,679 for the corresponding
period of 1929, representing an increase
OF 1885 per cent.
OAE nm TEXTH z MnPKEPC