Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-04
TREASURY HAPPY
OVER BOND SALE
Morgenthau Refuses Com.
ment on Difference in
Market.
BY the Associated Press

BY the Associated Press.
Treasury officials were openly pleased
today with the success Of their latest
half -billion-dollar issue, especially
since the Treasury's recent failure to
obtain full subscription on a $780,
600 900 farm mortgage issue.
Secretary Morgenthau announced
last night that the new $500 900 900
issue of 31z year, IA per cent notes
had been oversubscribed, but he de-
clined to advance any explanation for
the difference in the market last week
and this.
Subscription books have been closed
on the new 5l2-year notes. but will
remain open until further notice for
holders of 81 $50 ,000, 900 in called Lib
erty bonds to exchange them for new
bonds or notes.
The financing announcement came
as Treasury figures showed that, COL
lecting IS cents for every dollar spent
a deficit Of 1862 ,594,078 had been
rolled up in the first two months Of
the financial year.
Cash Cut to s1,1S5, 5000, 900.
To cover this difference between in
come and OUTLAWS, it borrowed 1884,
600, 900 and dipped into its cash on
hand to the extent of s35s,o0o 900.
This reduced the ready money in its
vaults to $1.1S5 ,000, 900. Big as it was,
this sum ranked small by comparison
with the amount usually carried, espe-
cially since an estimated S400, 900 900
was ''earmarked" for retiring national
bank notes.
Considerable saving In interest pay
ments was expected from the ex-
change of Liberty bonds. The Liberties
yield "A per cent. The bonds for
which they are to be exchanged carry
a 234 per cent rate, with maturity IL
years hence, or the Liberties may be
turned in for the ~ per cent notes
maturing in 1899.
In this way the Treasury Is taking
advantage of prevailing low money
rates to reduce the interest payments
on the national debt. Much of it has
been converted into short-term paper,
however, and if the savings is to be
permanent low money rates must con-
tinue for the next several years. The
Treasury books schedule maturities
totaling $4,000. 600, 900 before 1910.
Comparative Figures.
FOR the first two months OF the
fiscal year, with the last day of Au-
gust yet to be reported, expenditures
! totaled 1921, 900 900. while revenues
added up to $574,0o0, 900. For the
same two months a year ago outlays
aggregated 1890, 600, 0Oo and revenues
s496, 900, 900, or tax collections of ap-
proximately So cents for each dollar
spent.
Last years deficit for the two
months was s434, 900 900 Is compared
with the 1861, 900 900 this year. Las
year, too, revenues more than GOV.
cred the expenditures which the
Treasury Classics as general" Il
distinguish from expenditures for re.
covery and relief. Against the re.
ceipts Of s496, 900, 900, general dis
| bursements totaled $429, DOC, 0OO.
But this year, all OUTLAWS were about
evenly divided between the two CLASH
fications, with revenues of $574, 900 ,00(
insufficient to cover either. Gen.
eral' expenditures totaled s6os,ooo.'
900 and outlays for recovery and re-
lief aggregated s628, 900. 900.
The receipts this year. however
were $4,000, 900 greater than a veal
ago with all ssifcations-except the
processing tax-revealing increases
Income tax payments rose from $42,'
000, 900 to sac, 900, 900; miscellaneou.
internal revenue from $271 ,o00,0 II
$3.50, 600 900, and customs from SAL,
00o, 900 to Sos, 00o, 900. Processing Ia,
collections meanwhile fell from $81,
600, 900 to s30,000,000.