Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-06

Issuance of Government bonds to the
OF transferring a part of the floating
indebtedness to an issue running Tor
10 years at 3is per cent, is accepted
by majority opinion as a wise move.
There is a warning. however. that it
should be accompanied by all possible
economy and by careful check on
future appropriations. The transaction,
taken with official reports of trade,
tends to give a more optimistic out
look for business.
The New York Sun believes that the
results will indicate at what price the
Secretary of the Treasury can re-
finance the First and Fourth Liberty
loans, which total more than $8.Oe0.-
900 900. The Sun adds: Most of the
First loan carries 3l2 per cent, the re-
mainder IA per cent. All of the
Fourth Liberty loan bears A per
cent. The deficit of billion dollars
for the fiscal year will necessitate the
sale of other issues this year. The
only satisfaction to be gained is that
the conditions causing a deficit re-
duced the cost of borrowing"
After all the misgivings which were
voiced earlier in the year, it is en-
couraging to find the first step in the
borrowing process attended by SO few
difficulties and SO little disturbance,
remarks the Baltimore Sun, which adj
viseS that although a tax increase
may be found desirable little later to
overcome the deficiencies of revenue in
future years, the deficit for the cur
rent year, and perhaps a part Of the
deficit for the next fiscal year, will
have to be met by borrowing"
X + X
e. -
not had to do in many years-isSue
of peace" says the Yakima Daily Re-
public, with the incidental comment
that the excuse for the terrific and
SenSeleSS waste at Washington, that
this is a big country, is beginning to
be less popular" AS to the bond issue,
the Providence Journal declares: Gen
eral conditions could hardly be more
favorable to ready sale of Govern
ment bonds. Money rates are exceed
ingly attractive, from the Government
standpoint. Investors, gripped by a
psychology of encouragement to which
the depression has given currency, are
| doubtless eager to buy Treasury bonds
In fact. presumably they are hoping
that further long-term issues will be
announced in the coming months"
1.-The Treasury" in the opinion OF
the Charleston IS. c. Evening Post
has done remarkably we'll with its
short-term paper, and no doubt this
form of financing public needs would
have continued in favor had not the
| sudden slump in revenues occurred, but
there is obviously no use in expecting
| from normal income to be able to take
care of the huge amount of loans that
would be necessary to tide the Government
| over. For the United States to have to
issue billion or two of new bonds Is not
J serious matter. The national debt has
been reduced very rapidly since, 1919
much more SO than the law required, and
| taxpayers have little or nothing to COM
, plain of in this department. Indeed
most of the complaint made has beer
to the effect that the debt has been re-
duced too fast, much faster than was
! necessary. but now that more money Is
needed, the wisdom of Secretary Mel.
don's rapid reduction policy becomes
apparent
The Springfield (Mass) Union OBJ
serves that 1.-THE fact that the issue
has been limited to $500, 900 900 is taker
as an indication that, in the opinion o.
| Treasury officials, business condition:
may be expected to improve in the neal
future" The Hartford Courant as
sumes that possibly the next issue viii
| have to be at a somewhat higher rate
and probably sound industrial issue:
will command somewhat less Of pre-
MUM
| The Richmond News Leader, however
finds a defect in the fact that "a
| funded debt Is a forgotten debt" ano
advises that with $500, 600, 900 of the
deficit tucked away in the general deb
! the new Congress may be inclined tc
pile up another vast deficit to satisfy
the clamor Of demagogues." The New
ark Evening News suggests. The, coun