Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-09
MELLON BOND PLAN'
IS DECLARED SOUND|
SeCretary'S Request for In
crease in Loan Limit
Held Timely.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, January 9.-Secretary
Melons proposal that Congress amend
the second Liberty bond act so as to
increase the total limit of the issue
from $4,000, 100000 to $4,000, 900, 900
should be passed right away At pres
ent a total of a little more than $18,-
000000,000 has been issued, leaving a
margin of less than S2000,000,000 for
future refunding operations of the
Treasury.
Secretary Mellon wants this act
amended so that he may be enabled
to issue bonds whenever he deems it
is in the public interest" to do so.
He wants a little leeway in which to
work.
Never was the time more opportune
to issue long-term bonds at low rates
of interest than now. Next year the
Liberty loans, totaling a little less
than $4,000 100000, with interest rates
at 3l2, and a. per cent, are callabie
although they mature in l947. The
Liberty loan, at 4l4 per cent, which
aggregates about $3.50, 100000, is also
callable, although it natures in 1888.
In addition, there are three issues OF
81 per cent notes, totaling a little
over $1,500,000,000, callable between
1880 and 1882. Two of these issues,
aggregating a little over 81, 900, 100000,
have been called for payment
March 15
The United States Treasury has
power to decide the kind of securities
which it desires to issue. 1t may be
long-term bond issue, a medlum-term
note issue, a short-term certificate OF
Indebtedness or a combination of any
or all of these three. 1t largely de-
ponds upon the state of the market.
Right now it looks decidedly like an
ideal long term bond market.
When this Job is finished Secretary
Mellon will have served 10 years con-
tinuously as Secretary of the Treasury
and will reach his Seventy-sixth birth
day anniversary on March 20. VIII ne
then retire from office?
There are some very wise Washington
observers who say that he will, but the
Secretary himself is observing his Gus
tomary silence.
Investment Trusts.
Watson Washburn, assistant attorney
general of New York, in his final report
on investment trusts, has recommended
that they be compelled to publish full
statement of their holdings and securl-
ties every three months Is this Sufl-
Gent protection to the public?
In 1927 there were 102 investment
trusts with total resources of about
SOUU,UUU,UUU. III May VI 1901 tlASIG NClC
270 investment trusts, with resources OF
more than S4,500,0 ,000-an increase
of $50 per cent in assets in three years.
Publication of their vast holdings is
a step in the right direction, but it
does not deal with the complicated and
involved questions Of intricate capital
structures, hidden fees to managers and
the use of the trust as a dumping
ground for otherwise unstable Securi-
&c toll fp,~ ami 11fNHTTV
other peoples money to buy voting con-
troll in corporations.
The New York Stock Exchange has
done some excellent work in regulating
the activities of the investment trusts,
but the Job is of such national impor
lance that no private organization has
sufficient power to meet all the issues
which are presented adequately.
ChadbOurne Plan Approved.
Thomas L. Chadbourne'S efforts to
obtain an international sugar agree
ment for the limitation of production
and export met with spectacular sue
ces yesterday when the German sugar
industry agreed to the proposal that
its quota be limited to 100000 tons
for the fiscal year 1901, $4,000
tons for 1872 and 100000 tons during
each of the following three years.
This is a signal victory for the New
York lawyer who refused to give up
hope that an agreement could be
reached after the recent breakup of
the Brussels conference. Whether the
agreement will result in final success to
the sugar producers and in bringing
order out of chaos depends upon the
cooperation achieved within the next
five years. AS it stands today the world
control of sugar is more complete than
it has ever been before.
Last year the United States, the
greatest sugar-consuming country, used
6,l23,000 long tons, as compared with
6,103,000 long tons in 1929
All sugar stocks had a furry yeSter-
day as a result of the German outcome.
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