Evening star., 1934-01-05
TEN BILLION LOAN
PLAN RUSHED WITH
HOPEFUL MARKET
Moruenthau Declares Reac-
lion to Presidents Budget
Message Good"
DRIVE WILL BE LAUNCHED
TO COLLECT BACK TAXES
Sum Declared to Exceed $780,
oOo,Ooo-secretary of Treasury
Promises Action.
B. the Associated Press

B. the Associated Press
Terming market reaction to President
Eoosevelt's budget message very good, "
Secretary Morgenthau said today the
Treasury will begin right soon on its
$4,000, 100000 financing program.
This tremendous task. as shown by
President Roosevelt in his budget mes
sage to Congress yesterday, involves
borrowings by sales of bonds.
Such procedure is in line with eX-
pectations. There has been no reason
to expect the administration to use
printing-press money, indications con-
stantly pointing against resort to such
practice.
In his message. Mr.. Roosevelt spoke
of the Government having Ito borrow
approximately six billion dollars of new
money" meaning money in addition to
sums already borrowed The remaining
four billion of the ten te be borrowed
In the next six months is for re1undlng
previous obligations.
Drive for Taxes.
The Presidents chief financial aide,
whose confirmation in his new post by
the Senate is expected next week. also
disclosed that an intensive effort 10
collect back taxes is in the making.
having summoned internal revenue col
lectors and agents to confer with him
January II.
Back taxes exceed S8000000 900, he
told reporters. and the Treasury plans
to see how much of this can be brought
in as nourishment for the Treasury,
whose books-the President told Con-
gress yesterday-Would be some nlne
billion dollars off balance within two
wears because of the recovery program
needs.
I'VE will work out quota on back
taxes for each internal revenue col
lector, put the quota up on black
board and see how far the collectors
can bring down their quotas" Morgen-
thau said. "We1l have little rivalry.
Morgenthau said the conference with
internal revenue collectors. which will
last two days, is only the first of sew
eral planed. The week after the rev.
enue collectors assemble customs COL
lectors will be called in, and the fol-
lowing week agents of the Narcotics
Bureau. Later others will be sum-
nOned
These plans represented an expansion
of the policy he instituted upon taking
over the Treasury when he began
weekly meetings of all division heads.
1T gives us more of family feel
ing" he explained. and let's everybody
know what other parts Of the Treasury
are doing"
Plans Indefinite.
-, Morgenthau said that just now the
Treasury has no definite plans as to the
exact date of the first financing issue,
its size. or the type of obligation to be
offered.
I thought reaction in the markets
to the Presidents budget message was
very good. he commented.
we are confident we can raise the
money and will have to begin right
soon"
His remark was that the budget mes
sage yesterday had caused minimum
of disturbance in the Government bond
market.
Asked whether official buying might
have been partially responsible, lie re-
piled: We didn't do anything alb
normal"
For several weeks the Treasury has
been investing funds in Government Sc
curities
Last week the purchases aggregated
100000 and in the two preceding
weeks approximately sl6,500,00O each.
Meanwhile the R. F. C. price fol-
newly mined domestic gold remained
today at s3406 an ounce. The price
was posted as sterling opened in London
at s515l2 to the pound. making bsl
gold worth on that basis S32.86 ar
ounce.
Todays r. F. c. price represented
the thirteenth repetition of its peaE
quotation of domestic gold.