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Show RESERVE BANKS LEND THE U, S Interest Is at the Rate of 2 Per Cent a Year; Govern-, Govern-, ment Needs More. WASHINGTON. March The twelve federal reserve banks today oversubscribed oversub-scribed on twenty-four hours' no tire a ninety -dav loan to the government of $nrt.000,0ny at the rale of 2 per cent a year. The money was borrowed on nlnely-day treasury certificates of indebtedness to help tide over the government until June, when the great stream of income and internal in-ternal revenue taxes will flow into the treasury. An additional $.Vi.on(oon. it was announced, may be borrowed in the same manner before the close of the fiscal year. Temporary finanrdnsj of the government in this manner was made necessary by the depleted condition of the balance in the general fund of the treasury, reduced re-duced to approximately $ijR.O00.noo, and .facing a further reduction of $LT.,OOn,000 'Saturday, when the government will Issue Is-sue a warrant for that amount in payment pay-ment for the Danish West Indies. The issue of certificates of Indebtedness, Indebted-ness, to run not longer than one year and to bea r Interest at a rate not exceeding ex-ceeding 'A per cent, has b?en authorized by congress up to $300.000. n00. and today's to-day's issue is the first lo 1iq niade. In addition. Secretary MiArloo has an-thoritv an-thoritv to issue $ 171,(hio.ooo in bonds for va rious purposes, including i he Panama canal bonds, to reimburse the treasury for the amount paid cult of ordinary receipts re-ceipts for the construction of the canal. Mr. McAdoo is understood to have the issuance is-suance of bonds under consideration. The rjuick subscription to the $50,001,- 000 issue of cer! ificn tos by federal reserve re-serve banks alone without reference to any of the member banks of the federal reserve system with their billions of dollars dol-lars of resources at h rate of interest 1 per cent lower than the- rate authorized is viewed by officials as a striking demonstration dem-onstration of the excellent condition of financial preparedness of the nation's financial system for any events that the future may bold. "This is ex t rem el y gratifying.'' said Secretary McAdoo in announcing the action, ac-tion, "and shows not only a fine spirit on the part of the reserve banks, but Is an additional demonstration of the usefulness use-fulness of the new reserve system to the country. A statement, of the allotments to the subscribing banks will be given out as soon as the details are completed. "It is possible that an additional ls-pue 1 of SSO.OO'Vh'O of these temporary certifi-I cates of indebtedness may he issued be- 1 fore the end of the present fiscal year. ' N'o statement can be made about possible: issues of government bonds until tur- ; ther developments in the international ' situation." |