Evening star., 1936-06-14
TREASURY IS SET
FOR BIC TURNOVER
OF CASH IN WEEK
Conversions, Tax Payments,
Bonus and Relief Will
Cause Huge Shift.
BY FREDERICK GARDNER,
Associated Press Financial writar

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The Treasury is set for its biggest
peace-time turnover Of cash next week.
Government and private financial
machinery will be mobilized to handle
up to $4,000, 10000 or more The vast
impending operations embrace an in
flow of about 81, 100 900, 900 to supple
ment cash reserves, conversion of
more than $1,000 100000 in maturing
obligations, collection Of around $780,
100000 in quarterly income tax pay
ments and the start of the outward
flow of bonus money, aside from the
daily turnover of millions for ordinary
and relief expenditures.
Accustomed to handling billions of
dollars in brief periods the last few
years, the Treasury expects to take
the mid-June hurdle in its stride.
Banks Will Help.
The post Office, the Federal Reserve
and commercial banks will join with
the busy Treasury forces to direct the
golden streams into and out of Gov
ernment accounts.
Payments due the Treasury next
week are expected to send it's cash re-
serves temporarily to the unprecedent-
ed height, at least for peace times, of
about 100000, 900.
From this brimming cash box Uncle
Sam will meet bonus demands and
relief expenditures over the next few
months.
Financial authorities look for the
banking system to handle the huge
mid-June turnover without difficulty.
Unemployed funds of member banks
Of the Reserve system have been
Swelled by another wave of gold i'm
ports. Despite Treasury deposits of
more than $500, 1000 900 in the Reserve
banks, the systems members have
nearly s3,0O0,OOO0O0 in surplus funds
above legal reserve requirements.
Credit Reservoir Full.
Banks are expected to use a sub
stantial portion of this excess to pay
for subscriptions to the Treasury'S
June offerings of new securities. For
many months the Governments op-
erations in the money market have
caused little more than ripples in the
overfiowing credit reservoir.
Eventually most of the Government
cash is expected to find its way back
into commercial banks to the credit
of individuals and business firms as
bonus and relief money moves out,
thus giving the rapidly rising total of
1Q Y1k 6avNncitc arnt6nr
Demand deposits of member banks
of the Reserve system in leading cities
already have risen to record figures
under impetus of Government spend
ing and the influx of capital from
abroad.
Odd Amounts Due First.
BY the end of next week actual
bonus money is expected to be pass
ing through the veins of trade and in
dustry.
Bonus bonds and checks for odd
amounts are slated to go out in the
mails to veterans Monday and Tues
day. But officials figure it will be
several days later before the bonus
money in force begins to spill into
channels of spending.
BY the end of the month some ex-
pect between $50O,0O0,0 900 and ST.
000, 100000 to have been paid out from |
the Treasury,s cash via the Reserve |
banks and post Offices.
How much of this would go i'm
into expenditures for goods,
homes and services is considered any
body'S guess. Surveys by veterans
indicate a wide variety
Of plans for putting money into trade
channels or for paying obligations.
From unusually good May retail
trade reports, both for city and coun-
Try stores, business analysts suspect
of the bonus payments
already has quickened the spending
,empo.