OCR Text |
Show I S. HOIKS Hffl BONO ISSUE FIRST GOVERNMENT OFFERING j SINCE WAR IS $500,000,003 CF I TREASURY SECURITIES ! Much Money is Needed to Meet Out-standing Out-standing Bonds and Other Securities Securi-ties Says Secretary of the Treasury Mellon Washington. The first government bond issue since the war "was an nouneed Sunday by the treasury. Secretary .Mellon offered for subscription sub-scription an Issue of about STiOO.000,000 of 4 jier cent thirty-year treasury bonds rb of & program nor re funding short term debt. The new issue will be dated October 16, 1921', bearing interest at 4 per cent annually payable April lfi and October 15, on a semiannual basis. The bonds will mature October 1(1, 19"i2, but may be redeemed at the option of the I'nited Suites after Oc. tnber 15, 1947. The hist previous bond issue offered by the treasury was the fourth Liberty Liber-ty loan, in October, 1918. It carried interest at 4Vi per cent, to mature in twenty years, and amounted to nearly near-ly $7,000,000,000. Bearer bonds of the new issue with interest coupons attached at-tached will be issued in denominations denomina-tions of $100, $r00, $1000. J5000 und 10,000, while bonds registered SB to prinrip.nl and interest will tie issued in denominations of $100, $500. $1000, $5000, $10,000, $50,000 and $100,000. All will carry the usual tax exemption provisions. Secretary Mellon reserves the right to allot additional bonds above the $500,000,000 amount fixed for subscriptions to the extent that A per cent Victory notes or treasury treas-ury certificates of the series maturing : December 15, 1922, are tendered in payment. Applicants for new bonds not exceeding $10,000 from any one subscriber sub-scriber will bp alloted in full, but applications ap-plications for amounts in excess of $10,000 will be received subject to allotment. In a letter to hanking institutions, Mr. Mellon asked continued cooperation coopera-tion for the distribution of the new bonds among investors, declaring the time had come for a longer-term operation op-eration in the refunding of the short-dated short-dated debt, which heretofore has been accomplished, "without disturbance to the market for outstanding secor-ties.'' secor-ties.'' on a relatively short term lhasis. Discussing what has already been accomplished in the refunding of the short-dated debt. Mr. Mellon recalled that on April SO, 1921, when the refunding re-funding program was announced, the gross public debt amounted 1o $24,-000,000,000 $24,-000,000,000 of which over $7,300,000.-000 $7,300,000.-000 was maturing within two years, while on Feptenvher 30. 1922, the total to-tal debt was $22,500,000,00(1. and about $4,000,000,000 of the early maturing ma-turing debt had been retired or refunded. re-funded. This fiscal year, 'he stated .there will fall due about $1,800.000,000 . of Victory notes, $625,000,000 of war savings sav-ings certificates and about $1,100,000,-000 $1,100,000,-000 of treasury certificates, of which $48,000,000 represent Pittman act certificates cer-tificates which , will be retired tints year through the recoinage of silver bullion, while about $100,000,000 of loan certificates maturing October 16, 1922, will be paid out of funds already al-ready in hand. Retirement of these mature certificates, certifi-cates, lie added, will leave only tax certificates outstanding, and with tax payments as large as they are it is considered desirable for the treasury to have outstanding at least $1,000,-000,000 $1,000,-000,000 of tax certificates, which correspondingly cor-respondingly reduces the amount necessary ne-cessary refunding into other securities |