Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-01
j. s. PUBLIC DEBT
MAKES new CLIMB
Reduction Effected Since War
Being Lost as Loans
Needed.

Uncle Sans public debt" which
reached the lowest point last Decem-
Der 80 since the World War, has started
on what promises to be big in
crease.
The new Treasury offerings of
$1,l00,0 900 900 in bonds and Treasury
certificates announced yesterday will
give a big boost to this public debt
with prospects that if the Treasury
intends to carry out for while this
policy of borrowing instead of lncre2S-
ing taxes to meet the needs of gov
eminent, the public debt may grow
even more substantially in the future.
The World War brought the Ameri-
can public debt to its highest peak on
August 81 1919, the year after the
armiStice was signed. when 1t reached
the figure of $26.597 ,000,0 900
With a policy of strict economy and
paving off the public debt the admins
tration brought it down gradually until
it reached its lowest point since the
war, of Sl6026000,0 900 on December 81,
1885, But the next day big figure
chargeable to the World War Veterans
adjusted service certificate fund was
added bringing the debt up to $685.
100000
August Increases Debt.
By a gradual increase the public
debt has been climbing ever since with
the result that on the last day of July
it had reached S16,6O1 900 900. Opera
lions this month, including the matur-
ing of certificates. and the addition of
the two big issues tCtaling more than
a billion dollars, brought the public
debt yesterday UP to a total of about
$17.347 100000.
One of the strange things, however
about the public debt Of the Govern
e l,,,p,o ~
of securities outstanding, which have
ceased to bear any interest whatever.
The total of this non-interest bearing
debt stood at $40 073, $685. 20 according
to the latest figures.
Among these securities which people
have neglected to turn in for payment
and which no longer bear interest are
many of the we'll known Liberty Loan
Bonds, which were more widely sold
perhaps than any other issues ever put
out by the Government. There are,
for instance, a total of S6,341 $50 in
third Liberty bonds which ceased bear
ing interest in 1928.
Securities of the American govern
ment have been purchased frequently
from time to time not only By Ameri-
can financial institutions and Ameri-
can people but by foreign govern
ments and the nationals Of foreign
powers.
Used by Nations.
Nations and corporations which need
TO pile UP considerable sum in the
United States for the payment of
some big debt such as war debt.
frequently are known to buy securities
of the United States. as investment, I'M
til the date for payment of their own
debts. This keeps their own money
active until it must be turned over.
In the case of intergovernmental debts
American securities are often used as
the medium of exchange. when the
price is below par. But with Govern
ment securities ranging considerably
above par foreign powers usually re-
sort to cash.
Under the moratorium arrangements,
however. whereby there is to be an
international war debt holiday of one
year. it is anticipated that the Ameri-
can Government probably will not re-
ceive anything at all next December
IS on the big debts which foreign pow
ers owe this country. Officially. Con-
gress would have to take some kind Of
action approving the moratorium, be-
tween the dav it meets early in De-
cember and December IS. when most
of the debts fall due. But it is an
ticipated that the administration has
sufficient support for this to bring
ABOUT the necessary approval.
In case there should be some delay,
however, it has been freely predicted
in unofficial circles that the powers
would delay making payments anyhow,
probably leaving them off altogether,
with the understanding that Congress
would approve the lead of President
Hoover in the course of time.
The Masonic membership of England
Is $4,000.