Evening star., 1934-04-04
u. s. OFFERS TRADE
|0F LIBERTY BONDS
Treasury Action Indicates
It Has Cash for Next
Three Months.
BY the Associated Press.

~ sA'S sAoSSSseeSe ASoS'
A two-billion dollar supply Of ready
cash was the indicated answer to the
Treasury's decision to confine its April
financing to strictly refunding oper-
alton for sl,244,234, 800 in maturing
bonds and notes.
Secretary Morgenthau offered pub
licly this morning to trade an issue Of
1912 year. 3A per cent Treasury
bonds for $1,000, 100000 in AZ per
cent Liberty bonds maturing April IS
and s244,234,6Oo in Treasury notes
maturing May 2.
He sought no extra cash, but linn
tied subscriptions entirely to an ex-
change basis, thereby indicating SUI
ficient funds on hand for the next
three months expenses.
Has Devaluation Profit.
In addition to the $4,000. 900 900
in cash, the Treasury has $780,
600 90 profit on dollar devaluation.
The refunding plan was viewed as
looking toward reduced expenditures
in the near future and deficit con-
siderably under $4,000, 100000 at the
end Of the fiscal year June 80.
The deficit was forecast at more
than $1,000, ,000, 900 by January budget
figures, but it came only to $2.542,-
600 900 for the first nine months OF
the fiscal period.
Should recovery costs fail to come
up this year to budget estimates, ad.
ministration officials have intimated
larger emergency expenditures might
be in order during the coming nscai
year.
The new Treasury bonds will ma
ture April IS. 1916, but may be called
as early as April IS, 1914.
Large Exchange Expected.
Holders Of the called Fourth Lib
ertys and May 2 notes have the op-
ton of taking the new bonds in ex-
change or accepting cash. The Treas
ury expects big majority to avail
themselves OF the exchange oppor-
tunity.
The Libertys due April is are part
of sl,875, 100000 which were called
last october for that date. At that
time the Treasury offered in exchange
a 1O-l2-year bond issue paying 4l4
per cent the first year and 3l4 there
after. The Fourth Libertys pay "a.
The October exchange amounted to
approximately $900.0OO,000, and the
remainder may now be exchanged for
the new issue Of bonds. The May 2
maturity are per cent notes.
Another Maturity in June.
With both April and May maturi-
ties covered by the bond issue, the
only other scheduled financing before
the end Of the fiscal year is a STA
905,500 maturity Of one-quarter OF
l per cent certificates due June Is.
Morgenthau's financing announce
ment conceded with figures on the
Treasurys financial condition at the
end Of March for the first nine
months of the fiscal year. In this
nine-month period, the Government
had taken in s2,305, ,704 900 and had
spent 81 ,987 ,039 900 on routine costs
and $2,860 1865 900 on emergency re-
covery outlays. The deficit of ST.
542 ,299 900. compared with an excess
Of expenditures on the same day last
year Of $2,254, 1928, 600.
Debt rs Billions.
The public debt stood at S26.157.-
509, 1000, as compared with $2l 1862,
464 900 year ago.
The rate Of spending again dropped
of in March. The months total of
s610 ,232 900, compared with $685. ,321, :
900 in February and $3.50, ,579 900 in
January, the peak month. From July
through January spending had in
creased steadily.
Administration officials say, how
ever, that the recovery budget should
be viewed on an 18-month basis
from LAST January, when estimates
were submitted to Congress to July
!, 1895. If estimated expenditures
are not fulfilled this fiscal year, the
Treasury expects them to be made in
the next fiscal year.