Evening star., 1941-02-20
Treasury Projects
SmaII-Bond Drive
Before July |
Three Million Asked
To PubIicize Campaign;
Other Issues Planned
By BLAIR BOLLES.

The Treasury has asked Congress
for a $3,000,000 appropriation to pay
for publicizing and administering
the contemplated sale of small
bonds to little investors between
next month and July /, Secretary
of the Treasury Morgenthau told
the press today.
AS soon as the appropriation is
available, the administration will
be ready to 60 ahead with its mod
ern version Of the World War Lib
erty and Victory Loan drives, aimed
at enliSting the support for the
national defense Of those millions
of persons who can afford only q
moderate investment in securities
of any sort.
At the same time, Mr.. Morgen-
thau prepared to take full advan-
tage of his new powers to tax all
Federal securities by preparing the
way for the issuance next week of
almost sl,300,000, 900 of bonds and
notes, whose holders will be subject
to the revenue laws.
No High Pressure" Campaign.
Mr.. Morgenthau said he was un-
able to announce exactly what type
OF publicity would be employed in
the small-bond drive, but he OBJ
served:
Il will reiterate that there will be
no high pressure or waving Of the
flag, but We intend to make the loan
as interesting as possible"
The Secretary revealed that there
will be limit, probably less than
10000 a year, to the amount Of the
small issues which any one person,
which includes any one corporation,
can buy. The effect Of this would be
to spread the investment among as
many people as possible and prevent
the issues being used by large groups,
such as insurance companies, as in
veStmentS.
The administration has a philo-
sophical basis for its approach to
this small investors issue. The idea
is TO establish a patriotic feeling Of
unity among all potential savers
through making possible general
financial cooperation in the Amer
ican defense effort.
Week End Events Watched.
Mr. Morgenthau said that If the
coming week end is quiet, the Treas
ury on Tuesday will proceed with a
81 ,222 900, 900 refunding operation.
The issues will refund bonds of
s545 900 900 issued March 1e, 1881,
and notes of s677, 900 issued
March l6, 1896. Both of them fall
Due on this coming March Is and
the refunding securities will be
dated March Is. They will be tax
able under the new law signed by
President Roosevelt yesterday rails
ing the national debt limit to $685.
000,000,000.
The Secretary intends to survey
the world situation Monday to de-
termine whether he will proceed
with this refunding operation. He
said he had made this sort of wait
before when world conditions are
strained, because some people in the
past have done certain things over
week ends"
A series of new Treasury loans will
be made weekly beginning March S,
Mr. Morgenthau said, through the
medium of 9O-day bills These issues
will be for $l00000,000 each, meaning
that the borrowing will cost the
Treasury the barest minimum. The
offerings probably will continue for
13 weeks, 1t was conjectured.
Mr.. Morgenthau said that recently
the GoveSnment bond market has
been turning steadily and moderate
ly upward, while the corporate bond
market still has tendency to slough
off.
He added that some time in March
or April, more likely April" the
Treasury would go into the money
market to borrow $500 900 900 for the
R. F. C.