The Public Debt and Foreign Loans

November 2, 1927

Report Outline
Reduction of War Debt Since 1919
Future War Debt Retirement

The Second Liberty Loan, issued November 15, 1917, to mature in twenty-five years, has been called by the Secretary of the Treasury for redemption November 15, 1927. All Second Liberties not presented for redemption and remaining outstanding in the hands of the public will cease to bear interest on that date.

The amount of the original Second Liberty bond issue was $3,807,865,000. To date same $1,075,090,000 of the bonds have been redeemed by the Treasury for cash, and $1,975,272,700 have been exchanged by their former holders for other Treasury securities bearing lower rates of interest, leaving approximately $757,500,000 of Second Liberties at present outstanding. Of the debt represented by these bonds, it is anticipated that about ten per cent will be extinguished on November 15, and the remainder refunded into short-term securities bearing lower rates of interest. The principal significance of the Second Liberty operation will be the reduction to be effected in the government's future outlays for interest on the public debt.

Redemption and Refunding of War Loans

The Second Liberty Loan is the second of the great war loans to be refunded during the last five years. The first was the Victory Loan which matured in 1922-23. Victory notes totaling nearly $3,000,000 remain outstanding, but they ceased to bear interest nearly five years ago and are now a part of the non-interest bearing public debt. The next great refunding operation will be carried out in connection with the retirement of the Third Liberty bonds which are payable September 15, 1928.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Deficit, Federal Debt, and Balanced Budget
Financial Institutions