Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-12-06

900. On the LIST of August the subscriptions
amounted to S65,775,55O, chiefly by the national
banks. Under date OF July II, 1871, Il dispatch
| was received from Hon. William A. Richardson,
assistant secretary of the treasury, then in Lon
don, stating that certain bankers in Europe pro
| posed to take the remainder of the two hundred
| millions of five per cents. upon certain con.
| ditions. This proposition was considered and
modified, and early in August an agreement
| was made with Jay Cooke 4 Co., representing
the bankers in Europe and the United States.
| By the terms of the agreement the parties rep
| presented by Jay Cooke & Co., had the right to
| subscribe for the remainder Of the 5000 900 600
| of said bonds by giving notice thereof at any
time previous to the LIST of April next, and by
| subscribing for S10,000,00O at once, and
for an average of at least S5,00O,OOO Of bonds
per month during the remainder of the time
| subject to the right Of the national banks to
| subscribe for $4,000, 900 within 60 days from
the 25th day ofAugust. 1t was also agreed that
the subscriptions should all be made through
national banks, and certificates of deposits
therefor issued by said banks to the secretary OF
the treasury bonds TO be lodged with the
treasurer of the United States for the amount of
the deposit
BY printed circular, issued on the 10th OF
August, 1871, it was announced that national
banks making or obtaining any subscriptions
payable in coin would he designated by the
secretary of the treasury as depositarics of the
public money, on the usual condition of placing
In the hands OF the treasurer of the United States
bonds of the United States for the security OF
such deposits, and that at the commencement
of each month notice would be given of the re-
demptiOn of an amount of bonds equal to the
amount of subscriptions in coin for the proceed
ing month, interest TO cease in ninety days from
the date of such notice. Ii was also stated in
the circular that as the bonds called Shonld ma
ture, the deposits would be withdrawn from the
several banks proportionately. 1t was further
agreed that the subscribers to the loan should
receive as commissions whatever might remain
of the half of one per cent. allowed by law upon
the two hundred millions, after paying the cost
of paper for the bonds, for engraving, printing,
advertising, and delivering and all other eXpen-
SEES of the same. Under this agreement the
books were opened in this country and in Eu-
rope, and by the last Of August subscriptions
were obtained for the entire amount offered.
THE REDEMPTION OF FIYE-TWENTIEs.
On the LIST of September public notice was
given that certain iive-twenty bonds, to the
amount of S10O,0000OO, of the issue of 1862
specified by numbers sinearly as was practicable,
according to the provisions of the act of uly
IA, 1870, would he paid on the first of December,
and that the interest would cease on that date.
OF the bonds SO called more than $50 900, 600 are
now in the possession of the department. Of
which amount ST. 100000 have been paid in
coin, and the remainder has been received or
deposited in exchange for the five per cent bonds
Previous to September five per cent bonds to the
amount of So, 1879 $50 had been issued and pay
ment made therefor. The work of diSbursing
the bonds subscribed for at that date is now go
ing on, and under such circumstances as to leave
no doubt that the whole business will be con-
cluded in n brief period of time. BY the act cS-
tabliShing the national banking system, the Sec
rotary of the treasury was authorized to make
them repositories of any public money, except
receipts from customs, and the act authorizing
the refunding of the national debt directed the
secretary of the treasury to give three months
notice OF the payment of any bonds, which in
such notice might be specified and called for
payment. In the same act it was provided that
the money received for the new bonds should he
used only in payment of the bonds outstanding,
known as hVe-twenty bonds. The statute pro-
ceeded upon the idea that the holders of five
twenty bonds should receive three months in
terest upon their bonds after Enotice should be
given by the government. As this notice could
be given safely upon the subscriptions already
made or secured, the general necessary result,
even IN case the money was paid into and held
in the treasury OF the United States, would be
a loss of interest for three months. On the
first of August last, the demand for
the new bonds had nearly ceased but bv
the agreement referred to, the necessary loss to
the government incident to the refundng of the
public debt was made the nucleus Of securing
subscriptions to the amount of about $780, 00,-
OOO. The banks, or those represented by the
banks, derived an advantage in the use of the
amount Of their subscriptions for three months
but this without other loss to the government
than what was incident to the negotiations OF
the loan under the law.
THE NEGOTIATION OF BONDS IN EUROPEAN
MARKETS.
am informed by Judge Richardson, and such
is my own opinion, that the most serious oh.
staCle in che way of negotiating the four and
four and a half per cent. bonds in Europe is the
inadequacy of the commissions allowed when
the circular of the 2Sth of February last was is
sued. One or two of the leading European
bankers declined 20 act as agents, and | am per
suaded that others, who accepted the agency
failed TO give that attention to the business
| which would have been bestowed upon il had
| the commissions correspondent more nearly Ia
| those usually received by them for the negotia
| ton Of public loan The credit of the COun
try is fully established in every financial centre
| of Europe, and the bonds of the United States
| can be negotiated at their market value in q
| larger number of cities than the bonds of any
| other country in the world. Under these cir
| cumstances think it my duty to advise such al
| allowance for commissions upon the four ant
| four and half per cent. bonds as will secure
| the negotiation of them with the least possible
| delay. 1t needs no analysis of the subject L
| show that the interests of the country will be
| greatly promoted by the proceeding, even though
| the commissions should seem to he necessarily
| large. also recommend that authority be given
for the payment of interest in London. This
can be done without the least COS Or risk to the
| government
In conclusion, Mr. Boutwell, discusses the de.
cline in American shipping, and some of the
remedies hthat have been proposed for it. Its
causes, he thinks, are the destruction of Ameri.
can vessels by rebel cruisers during the war, and
the substitution Of iron steamships for wooden
vessels in ocean commerce British shipbuild.
ers are believed to have an advantage over
Americans Of thirty per cent, owing to the supe'
| riority of British machinery and knowledge OF
the business by British mechanics, to the less
cost of labor, coal and iron, and the lower rates
of interest upon the capital employed To adj
init foreign built vessels TO registry would slim
ulate shipbuildiug in England and destroy it al.
together here. To remit duties upon FOREIGN
articles used in the construction of steamships.
or allow drawbacks equal to the amount of du.
ties paid, would involve questions of great prac-
teal difficulty, and probablyisuhject the govern
ment TO needless expense. The least obiectiona-
BILE way Of surmounting the difficulty is, in Mr..
BoutwelPs opinion, law guaranteeing to per-
sons who may employ in foreign trade Ameri.
can built, first class iron steamships. of not less
than two thousand tons burthen each, an an
nual payment for five years of s18 per ton, and
proportonatcly less sub Idly to vessels of a
lower classification. Such vessels should also
be required to carry the mails upon reasonable
terms, or in consideration of the subsidy and
perhaps be constructed so as to be available for
naval purposes, and, in case of war, subject to
the right of the United States to take them upon
an appraised value.
Report Ofthe Secretary of the Interior,
The humane policy maugurated by the roy-
eminent in the condition OF Indian affairs for
the past two years has been productive of grati.
lying results The board of commissioners
composed of citizens distinguished for rbilan,
thropy, and serving without pay, has assisted in
removing from the Indian service much that has
been heretofore regarded as the source of evil
and injustice. The Indian Itribes, during tbe
past year, have raised abont $4,000 600 worth
OF agricultural products There are ZIG schools
among the tribes, with an average attendance of
1920 pupils. Outrages which have occurred nv
nomadic tribes in Arizona, New Mexico and
western Texas, where the peace policy has not
fully penetrated, have been promptlyipunisbed
by the military authorities. Agriculture and
education must be encouraged among the
tribes, as conducive to a more complete
civilization. The Indian population now under
n flI.ffTn AN .NuI