U.S. ISSUES BONDS

Dominion, Volume 24, Issue 288, 1 September 1931, Page 9

U.S. ISSUES BONDS

Growing Deficit Faced By Treasury LOW INTEREST RATES By Telegraph—Press Assn. —Copyright (Bee. August 81, 7.30 p.m.) Washington, August 30. Apparently actuated by its dwindling resources —the deficit on the present fiscal year already is standing at 387,000,000 dollars—the United States Treasury has announced that it will offer on Monday 800,000,000 dollars’ worth of long-term bonds, maturing In 24 years and redeemable in 20 -years; also 300,000,000 dollars’ worth of short-term certificates of indebtedness, maturing in twelve months. Both Issues carry the lowest interest rates since the war for similar securities, the bonds paying 3 per cent, and the certificates only 1 1-8 per cent The bond issue will be the third during the calendar year. It is indicated in some circles that the Treasury prefers to increase the public debt rather than to increase taxes. This is the second substantial United States bond issue of the present year. On May 31 the Federal Treasurer, Mr. Andrew Mellon, announced that the offering would be made on June 15 of an 800,000,000-doilar issue of Treasury bonds at a rate 3.8 per cent., tv be callable in 1943 and to mature in 1949. This followed a report by the Treasury Department that the deficit had passed the billion-dollar mark. It was said at the time that Liberty loans were to.be resorted to unless there was a sharp improvement in the business outlook. Four days later the loan was oversubscribed seven times with a total of six billion.