Evening star., 1936-05-28
HUGE j. s. ISSUE
ON SALE MONDAY
S2,050, ,000,0 900 to Cover
Maturing Bond Debts, Aid
in Bonus Payments.
BY tie Associated Press.

BY tic Associated Press.
Eclipsing all peace-time issues. Sec
retary Morgenthau next Monday will
float an offering of S2,050 900. 900 of
Government securities including ST.
000. 100000 to build up his present
cash balance.
The transaction will cover maturing
obligations of $1.050, ,00o, 900 through a
refunding operation and fortify the
Treasury's balance-which now stands
at 50. 1857 900, ,000-with new cash to
meet all needs. including the soldiers
bonus.
The billion-d dollar cash borrowing
together with the weekly borrowing
of $50,000,000 through the sale OF
Treasury bills. was expected to tide the
Government over until the next quar-
terly financing date. September IS.
Details to Be Announced.
The cash offering, the details oi
which will be announced Monday. will
cause the gross public debt to jump
81 900 600, 0,000-reaching 32,59o, ,000.-
600, on the basis of yesterdays Treas
ury statement.
The refunding offering viii not af-
feet the public debt, as it means SIM
ply the exchange of maturing obliga-
tions for new securities. It will provide
for $685., 600, 900 of Us per cent notes
maturing June Is. as we'll as for 1854,
100000 of 3A per cent notes falling
due August l. Both the cash and the
refunding issue will be dated June Is
At the same time, Morgenthau re-
vealed at special press conference
with the forthcoming flotation for
the protection of the small investor.
Confers With Officials.
To this end he said he had been
conferring with officials of the Fed
eral Reserve system and through their
cooperation had promulgated regu-
lations governing subscriptions which
would be transmitted to every bank
ing institution in their respective dis
trictS.
These regulations will increase the
cash deposit required on subscriptions
from to 10 per cent; require GER
tification that bank customers ap-
plications for securities were in the
amount entered on subscriptions: that
each application was, to the best of
the banks knowledge, "in good faith. E"
and that the bank submitting sub
scriptions had no beneficial interests
therein.
"The purpose of these provisions is
to provide for an equitable allotment
and distribution of securities to all
classes of subscribers" Morgenthau
explained.
Amount of Soldier Bonus.
Morgenthau said the entire soldier
bonus was in the amount of about
$4,000, ,000,0 900, with about $1,700, ,000,-
900 accruing directly to veterans. He
explained the difference was held by
various institutions, which had ad-
vanced funds on the bonus certifi-
Gates.
In addition to the $4,000, 900 of
new money, which the Treasury is
borrowing each week, it expects its
Seoii OdAdACC " NC 4Oi I1iCi dusiiIcieCu
next month, when about $375, ,000, 900
of income taxes are due on the Sec
ond quarterly installment on 1885
incomes.
The usual weekly issue of $50, ,000,-
900 of bills, fioated for the purpose
of meeting the same amount of ma
turing Indebtedness, was stepped up
to sl00,000,000 several weeks ago to
build up the cash balance. At that
time, it was announced the practice
would be continued until further no.
tice.