Evening star., 1935-06-09
TREASURY FACES
REF|NANC|NG TASK
U. S. to Offer New Notes to
Retire $3.50, 900, 900 in
Old Obligations.

Financial operations of the Govern
ment will assume importance again
this week, with the Treasury facing
its most important activity since It's
announcement OF an exchange offer
ing for first Liberty loan bonds on
April 81. According TO previous an
nouncement by Henry Morgenthau.
jr., Secretary of the Treasury. the
Government before the end of the
week will offer exchanges for more
than $750, 100000 of It's obligations.
The obligations coming due are
$4l6, ,602, 800 Of 3 per cent Treasury
notes, series A-l935. maturing on
June is, and $353,S65.000 ia per
cent Treasury notes, series B-l935,
maturing On August l. To meet these
maturities Secretary Morgenthau has
said that before June Is the Treasury
will offer notes in exchange for both
issues, presumably at lower rate, in
accordance with the program Of re-
ducing interest payments.
Besides these obligations OF about
$75O, 900. .00C, the Treasury on next
Saturday will have to pay of the
first Liberty bonds which were not
exchanged under previous offering.
The total to be paid is about $3.50
O00, 900. The first Liberty loan total
amounted to over 81 1888 900 900, Of
which about $3.50, ,00O.0 was ex-
changed into the 27s per cent bonds
and Is per cent notes. About 1884,
00o, 900 went into the notes and $744,-
0oo, 900 into the bonds.
Total Balance Two Billion.
With this cash payment due. the
Treasury has working balance, ac.
oording to the latest figures. Of ST.
07S,577,127 Adding to this the profit
Of s792, ,37581 obtained from reduc-
ing the gold content of the dollar and
the seigniorage of sl34,6se,131 gained
from issuance of silver certificates.
the Treasury total balance Is s2.-
005.642,072.
The Treasury, however. will now
have to cope with the expenditures
of the $4,000, 900 900 work-relief pro-
gram. There are no plans until at
least July / for offering any really
large issue. The needs until the end
of this fiscal year will be met first by
the regular issue of weekly bills. which
on the basis of offerings of 500 00o.-
900. less maturing obligations Of S75,-
900 900, nets the Treasury S25, 100000
a week.
Any other new money" needed until
July will be obtained by issues OF
Treasury per cent bonds on
competitive bidding basis. On MAY
rs the Treasury offered $100, ,000 000
of such bonds at auction" and the
issue was oversubscribed. 1t has been
indicated that offerings of s100 .00o.-
600 or 5000, 100000 under the same
arrangements will take care of further
financing At least one and posi-
bly, two offerings. depending on the
amount, are expected before July /.
Income Tax Funds Due.
Next Saturday the Treasury funds
will be augmented by income tax pay
ments. which. it Is estimated. may
amount to as much as s250.000.o 900.
Collections in March of this year ap-
proximated S322. 900 900, a substantial
advance over the $3.50, ,000, 900 collected
in March. 1884. Collections last June
were about SlsS, 100000 but this year
the income is expected to be sub
stantially increased.
Because of the slovness of expendi-
lures by Government agencies, plus
the fact that income has kept up TO
or run ahead of estimates. the Treas
ury will end its fiscal year on June
| 80 in a better financial position, that
is lower deficit. than predicted. On
|. the basis of deficit for the 11-month
period of about $3.133 600, 900, the
total deficit for the IL months is not
expected to run much over $780,.
0O0,000 This is almost a 81, 500, ,000.-
| 900 below the Presidents estimate of
| S4,869 000,0 900. In round figures for
the two-year period of the admins
tration. the deficit will run closer to
a $1,000, ,ooo, 900 figure than the So
600, ,o0o, 900 prophesied.
(Copyrisht. 1889