Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-03
i. S. $8lO,ODO,O0O
ISSUE GOES OVER
WITH BIG DEMAND
Extent of 0versubscription
Not Given as Books Are
Held Open "for ALL"

BY the Associated Press.
Another $500, 900 900 governmental
bond issue was reported heavily over
subscribed today, while administration
leaders gave thought to means of bal
ancing expenditures with revenue.
In announcing the oversubscription,
however, the Treasury said it would
keep the books open for the remainder
of the week in order that the whole
country might participate in the secu-
rites. Mail subscriptions from the Pa
cific Coast still are coming in.
High administration authorities said
the Government had every desire to
lop of all expenses that could be cur
tailed without reducing employment.
They added that all departments we're
being studied with this in mind.
Nature Of First Figures.
At the same time, the view was ex-
pressed by administration officials that
the $396,00o,Oo0 deficit rolled up for
the first two months Of the new fiscal
year did not supply fair basis for
calculating the total deficit for the
1882 fiscal year.
They explained that expenditures
early in the new fiscal year usually were
heavier than in later months and that
July and August ordinarily did not
supply as much income as later
months.
The Treasury statement, issued yes
terday, showed receipts for July and
August amounted to S230,399,15l and
expenditures we're s626,764,751. The
deficit was s144,ooo,o0o greater than for
the same period last year.
What recourse the Government may
take to bolster its declining income is
being studied by high administration
officials. President Hoover has been
described as not yet certain what
recommendation he will make to the
new Congress when it comes into ses-
sion in December.
Excise Tax Proposition.
Secretary OF the Treasury Mellon
previously has recommended that excise
taxes. such as were in effect during the
World War. be revived. He has de-
scribed the fluctuations Of income taxes
as unsatisfactory.
While no official would comment on
future financing of the Treasury. 1t was
regarded by some as likely that another
long-term bond issue or a Treasurv note
isue would be announced in December
In addition to the 1884, 900 600 CT GER
tificates falling due on September Is,
the Treasury must meet the maturity
of approximately $990.000 900 in GER
tificates and Treasury notes On Deem
Der Is.
In addition to the securities falling
due the Treasury must raise funds to
operate the Government IN the face of
declining receipts and increasing eX-
penditures.
The announcement by Secretary Mel
Ion did not say how much the new bond
issue was overSubscribed.
Size Of Subscription.
Oficials expected that while the over
subscription would be large, 1t would
not be as large as that for the June
issue of bonds which was oversubscribed
eight times with total Of Sc, 400 ,000, 900.
The recent ~criticism voiced by some
members of Congress and financiers that
the Treasury should not have issued
bonds, but should have continued to
use short-term securities at lesser rate
of interest was not answered. 1t was
pointed out, however, that in recent
months the Treasury has been carrying
on short-term financing and borrowing
about $50,000,000 a week to meet its
running expenses through issuance Of
Treasury bills.