Ogden Standard-Examiner | 1920-04-18 | Page 1 | To Quit Buying Liberty Bonds in Open Market

10 QUIT 111 IJBERTy BiJNDS WASHINGTON. April IT. Government Govern-ment purchase of Liberty bonds ip tho open market except through operation of the sinking fund will stop July 1. Secretary Houston explained today. A "beneficial effect"' on the bond market was expected to result, he said. Other officials said the market in government govern-ment securities had already begun to right itself and that bond quotations hereafter might be expected lo trend upward. Mr. Houston explained that in continuing con-tinuing the purchase of bonds under the five per cent bond purchase fund the government was increasing its floating debt while decreasing its funded fund-ed debt. He said that current requirements require-ments of the government were such that, if the purchase of bonds were to continue, the treasury would have to issue more certificates of indebtedness I with which to buy them, i Mr. Houston's decision was based largely on the fact that on July l the 21 per cent sinking fund provided in tlie Victory loan act becomes operative He said it was not his intention lo treat the two funds as cumulative but to end one with the biginnlng of the other. The approximate amount set aside by tlie treasury for use in the period between no vr and July 1, will be taken over by the war finance corporation, which will make all .purchases of bonds for which funds are available until the expiration date. Hereafter such purchases as the treasury may make for the bond purchase pur-chase fund, will be "occasional and not habitual," Mr. Houston said. oo