Show AMERICAN WAR DEBT DWINDLES Gross Public Obligation Hits Peak However WASHINGTON Jan 4 h V- ty billion dollars worth orth of or Americas America's original World war debt has been liquidated This fact act was disclosed today In Inthe inthe inthe the year-end year statement of the treasury treasury treasury treas treas- ury which showed shoed only of rth the borrowed in the pros prosecution ution of war had not been paid off of by the end of 1934 Still outstanding were of If first Liberty 3 2 1 per cent bonds first fIr Liberty LIb converted 4 04 l 1 and of uncalled fourth Liberty 4 Ms 1 Tops Wartime Peak Four years of depression and attempts attempts at at- tempts to combat it however had caused the gross public debt to increase increase in in- crease by the years year's end to a total of This topped the wartime peak of by almost When the United States threw in her lot with the allies the debt was vas only This was on March 31 1917 Twenty-nine Twenty months later It had reached the wartime high The first reduction of any consequence consequence conse cons quence occurred in 1919 when a huge cash balance of more than a billion dollars donars accumulated in the treasury for war purposes was diverted di di- ver vetted ed to recall outstanding obligations obliga obliga- Then came the prosperous era cra from 1924 to 1929 when huge hUJe government government government govern govern- ment surpluses were employed sim As a. a result a low postwar level of or was established on December 31 1930 Expected Present indications on the basis of or daily dally treasury statements are are that the deficit will scale the mark by the end of ot the present fiscal year although definite information information mation Is lacking until official budget estimates are made public Lately the treasury financial operations operations op Ope op- op have been on a week week-to- week scale consisting of day bills sold to the highest bidder on a discount discount dis dis- dis count basis In other words the interest interest in in- terest is deducted by the bidder and t the bills are paid at par There are 26 of these issues outstanding at present |