Show MELLON MaLON ANNOUNCES HUGE BOND ISSUES Will Avoid Tax Increase e by Borrowing Billion for U. U S. S Expenses B Br BJ Press WASHINGTON Au Aug 31 Secre 31 Secre Secretary tar lacy tary of or Treasury Mellon revealed today to- to Iday day how he plans to avoid a tax increase increase in in- crease at the coming se session lon of congress con gress by a serl series s of bond issues someI somewhat somewhat some some- what like the huge liberty loan Joan Issues Issues issues is- is I sues sues of the world orId war var period He announced announced- a billion billion- dollar billion refunding refunding re rc- re- re I funding program the largest single operation of this character in recent years ears It consists of a year 24 bond i issue ue at the record low Interest rate of oC 3 per cent and a a. Issue of treasury certificates certificates cat cates to run for a year and to bear al' al Interest at at- 1 8 11 8 1 per cent cent cent-a. a grandI grand total of I This bond issue is to be followed by one In December another In InI I Continued on Pace Pae e Two o 4 MEllON ANNOUNCES HUGE BOND ISSUES Continued ltd from flom Pace One March t to meet notes coming due at that time and representing loans the government has made to pay its wa way during the depression DUE DUEA A total of of treasury certificates comes conies due on September 15 The bond issue and certificates are partly to refund this obligation and postpone payment as well weIl as to meet about in interest payments Old certificates maturing may be exchanged either for the bonds or orthe orthe the tue certificates The issues are arc dated September 15 IS the bond issue to mature mature ma ma- ture in 1955 It is callable in 1951 The new bond issue is the third of the year one being floated in March for a total of or and a second sec ond in June for On December De- De December De cember 15 15 another batch of certificates I- I cates mature totaling with others aggregating coming due March 15 The treasury has had to borrowa borrow on a large scale In the l lat last t few months to meet expenses The income tax I especially has fallen faIlen off ott with no immediate im mm- mediate prospect of any larger returns re reo re- re turns from this principal source of revenue The cost of operating the government his increased gradually The depression has called for unusual expenditures to help aid the unemployment unemployment unemployment situation AGAI AGAINST ST TAX BOOST A tax t. increase it is considered I would help solve some of the fI fiscal call problems but the thc administration is set against one at the next session and Democrats apparently are arc no nomore nomore nomore more anxious than Republicans to vote larger levies on the eve o of a na national election The treasury therefore is gatherIng gather gather- gathering Ing up bills for part of the depression costs tying them up in bond issues and putting them on the shelf to be paid by the thc next generation Secretary Mellon thus will see the public debt which he reduced from around 23 to a low point a a. few months ago of or begin to rise again |