Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-28
F|NANC|ERS AWAIT
RATE ON i. S. LOAN
Treasury Will Announce De-
tails of New Issue
on Monday.
special pispa tch 70 The star.

Special Dispatch to The star.
NEW YORK, August 2s-Next Nom
day the Treasury will announce the
form Of It's September tax date finarc-
ing 1t gave notice last week that new
loans OF some sort would &. made to
meet the maturities on that Date
Up to now there has been some dis
cussion among bankers and ether Gov
eminent security dealers ss - the prob
ability OF long-term issue at this time.
1t Is taken for granted that the Gov
eminent will borrow on long -term bonds
before the end of the year in order to
reduce the huge and growing volume
OF floating short-dated debt. but the
bonds were expected in December. TIL.
only good reason for hurrying such an
issue would be the expectation that
money market conditions viii ne more
favorable next month than later on.
Outstanding Bills.
Wall Street is inclined to ccmpro-
mise on shcrt-term and a lorg-tern
issue for September. and looks for some
OF both. At the end of this month the
market will be asked for tenders on
another discount bill issue, to raise fresh
money for Treasury expenditures THIS
VIII increase the amount of money in
addition to refunding raised in August
to $4,000, 900 and wiz leave the Treas
ury with approximately S520, 900 900 Of
outstanding discount bills in eight
Issues, maturing at various datss be-
tween September 30 and November 80.
Treasury certificates maturing Sep
TENDER Is total 1854. 900. 900. including
S334,0 900 of 22s per cents and $780,
100000 OF / y per cents. Decemher Is
maturities aggregate 1894, 600. 900. Of
which s543 900 600 are Ia per cent GER
fiEoatac
G 312 per cent notes on which notice
of call was given last June The latter
issue in particular being itself one of
moderate life, was expected to be re-
placed by lcng-term bond. The total
OF bills. notes and certificates of indebt-
edness which the Treasury will have 20
refund in the next 80 months is thus
50, 148, 00e 900.
The only maturity scheduled for the
next year is $624,000. 900 of certificates
on March Is. All other tax dates are
open, but the June Is date may be
seized for calling OF the $3.50, 900 900
f1rst liberty 81 per cents, and possibly
the 81 1892 900 900 Of first liberty 81
per cents. Treasury bonds of earliest
maturity, 1910 optional date, are SELL
ing on basis Of about 500 per cent
Guesses on terms of new bond issue
which might be offered next Monday,
W bC adbCQ f0CPGGIlUEI 10, 1dNDT a ia
per cent coupon, the same as that for
the last issue. SEith the offering price
probably at slight premium above
par.
Refunding Operations.
Refunding about $4,000. 00o. 900 Of
bills and certificates will mean trans
fer of what are at present largely
bank credits given the Treasury to
long-term credit. Much of the latter
may be absorbed by the banks, but
they viii use it only in lieu Of better
employment for their funds. In gen.
eral, a long-term Government issue
absorbs from the capital market funds
which otherwise would go into indus
try. This Is an unfavorable aspect of
the present situation, at home and
abroad
The matter viii not end here with
mere refunding of Short-term debt.
The Treasury is faced with another
large deficit, PROBABLY billion or so,
for the current fiscal year, which
scarcely can be made good by greater
taxation In view of depressed business
conditions and the unwillingness of
either political party to increase tax
rates in those directions whence more
revenue might be obtained Nor is the
prospect for reduced expenditures en-
couraging, with agitation for unen-
ployment relief, soldiers bonuses,
greater public works expenditures and
other schemes designed to initiate cur
rency circulation. The capital market,
in other words probably will have to
put up another billion of new money
in the next year to keep the Govern
ment's books in balance Wall Street
regards this as largely a taking from
productive to give to non-productive
enterprise. something which tends to
prolong hard times.
fCopgTlsht. 1912