The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-28

eub-Treaury. General Hllhouse, the sub-Treas-
urer. hal left the building, but Mr.. White and Mr..
Belknap his representatives, were sti busy footing
up
TIE FIGURES OF THE DAY.
The reporter was introduced to MI Whites
once, and IN reply to his question: that gentle
man stat'd that they had not yet received any
notice at TIE Sub-Treasury az to the intention OF
Secretary Richardson TO prepay the interest due
on registered and coupon bonds next November,
nor could he say whether such telegram was ex-
pected.
80 slATBMKNT At THE sUB-TREAsURY.
"How mich interest win be really due on regis
tered and coupon bonds altogether, Mr.. White ?"
asked the Exporter.
Mr.. White here carefully examined the state
ment OF tle public debt for August, and replied
"About N elve millions and a half; ct all events
from twelve TO thirteen millions Of dollars. Most
OF these bonds draw six per cent per annum in
terest. Offers, known as "the new loan" bonds
regstered,by the way-draw nve per cent per an
nun interest and the interest y payable, guar
cent the payments are made every six months"
docs tbs mean, Mr. White, that the govern.
money in Interest," without rebate, on the market
Immediately ?" asked the reporter.
~ DO notknow about the rebate e was n the an,
held ABROAD, particularly the coupon bonds. The
money for registered bonds which are held here
will, OF coute, be thrown upon the market imme-
dately. and will, doubtless, have some eject upon
II. In the csse OF the coupon bonds which are held
s
market IL lower than the gold market. perhaps
holders OF bonds will buy bills OF exchange IN pref
"That. as take it, would leave the money at this
sidef"
about how much OF our bonds are held abroad,
the interest on which becomes due In November 7"
"About tvO-thirds, believe"
The reporter then called on o prominent banker
in the strict TO ascertain the exact amount OF
money thus proposed action of Secretary Richard
have on the market. This gentleman was unwIll-
ing that hianame should be made public. In reply
to the reporters questions he made the following
very clear and Ineligible statement
BANKER's STATEMENT.
''You see,' he said, almost all the coupon bonds
so happens that unless these coupons are already
cut at the other side and are actually discounted
through the banks IN advance we can really hope
for little r(ief to our money market by the pre-
payment ofthe November interest in coin on these
bonds. Even should these coupons be cut on the
side that Secretary Richardson Intended to
prepay the interest on the fve-twenty
bonds without rebate. It would take some
scattered al over Europe, could be collected and
1t would be between twenty-five and thirty days
our trouble by that time we will never be out OF it,
Of course, by that time the exchange market Will
nnt 70 ms ~ po WIN
that way the money MAJ be kept here eventually;
but, as said, unless these coupons are discounted
In advance and the usual course has been to cut
them, as understand, ibout the middle OF Octo-
Der at the other side IN Europe)- cannot de-
ys AMY the s te
bonds or the '1ive-twHties" there are abroad:-
Coupon bonds oflss2 payae in November sls7 cog
Coupon bonds OF HsWooo
Tota, s34o 0Oo CNo
The interest to be pan on this is three per cent
for SIX months and would amount to ten millions
and quarter In round numbers;
But the real immediate relief in the money
market, which we look for in the present CRISIS,
from this action OF the government in preparing
the November interest, Is from the registered
bonds. or these there IRE held here, the Interest
on which is payable IN N'vember:-
BONDS BONDS OF Of Mar March, ISo
Bonds OF June 1894 g 900 o00
Bonds Of june 1855. s5OO,OoO
Total. So, 500 900
The new loan Of registered bonds, payable quar-
tery at five per cent, amounts to $143, 500, 900.
The interest on all these registered bonds will
amount to s. coo, 000 which will be thrown on the
market ana tbs tn the only suostan
Specie Payments.
Mr.. J. Thompson, the vice President Of the First
National Bank, has ISSUED a circular, in which he
states the following propositions:-
BY an immediate reSulnpuOn OF specie payments all
that g Us irom foreign countries would
this measure afford more relief than ali Tie eIpe
Snansnsisy adopted Sy ceaing House RESERVATIONS -
The time has come when nobody has money to hoard.
Be
The gold and silver in This COUNTRY thus utilized viii
become currency, and will add $S00OO OF positive re-
A reporter of the HERALD called upon Mr.. Thomp-
son yesterday in reference to this circular, and in
the course Of conversation the latter said that
there in this country $5O, 600 of gold out
side the Sub-Treasury. "There Is also SO, COO 900
$50, 600, 900 OF gold in the Sub-Treasury which
the banks are represented as holding in SubTreas-
ury certificates. Now we are approaching such q
deep line in prices that the money which is now in
the hands Of the people will rapidly pass into prop
erty and merchants securities, because they are
cheaper than gold There will be security IN this
state of things, and, with basis credit of the two
paper currencies that in the hands Of the peo-
ple-namely, certified checks and greenbacks-gOd
will go into currency If we are but wise enough
TO grasp the opportunity. 1t has be come
currencies in order to obtain all the relief we can
out of each. The circulating currency Of the
This viii 70 It
prices have declined so as to make 1t an induce
ment 10 use it.e
REPoRTER-H0w do you propose to utilize gold,
Mr.. ThOmpsonP
Mr.. THoMpsoN-The scarcity Of currency and the
low rate of exchanges in all foreign countries
make this a desirable opportunity to move This
gold out, as the currency which is now held as
property really takes currency to carry gold when
so held. BY placing gold on the same footing as
greenbacks we certainly augment the available
means OF the nation and bring it into use a
lief to the community. In relation to the matter of
gold my view is that we shall Import not less than
$25, 900, 600 in three months When imported 1t is
no help to the general public, unless we resume
specie payments and recon that gold into useful
shape here. The necessity OF the people which
demands a currency that shall enable them to buy
produce and pay debts, VIII throw this gold into
general circulation and there will be no desire to
retain gold when 1t is put ON the same footing as
currency.
REPORTER-How Is this to be accomplished-by
q natural or by q legislative awY
Mr.. THOMPsON-Neither, entirely. On the arrival
OF gold, Tor example, from Europe, would let the
SuD-Treasury turn II into available gold currency,
and against that gold / would issue gree backs,
making it Incumbent upon the Sub-Treasury to
exchange S. bill, for instance, for gold, at par
REPoRTER-That would bring down values to
their natural level, would 1t not2
Mr.. THonPs0N-Certainly, and that Is what this