The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1875-11-11

$500 200 600, the main purpose Of the act being
70 convert Treasury notes and some other out
standing obligation into the bonds authorized by
the act. Under the authority Of this act bonds
were sold for money and issued TO the value oil
2Ol 827 $50 These bonds bear six per cent
interest payable the first days Of April and No
vember. The principal is redeemable at the
pleasure of the Government after five years, ana
pavable in twenty wears from date. The amount
now outstanding is els, 554 80. The bonds
have printed on their face the words REDEEM
able after five, and payable twenty years from
date d" and "Act of MarchS, 1865, |" by which they
are distinguished from the consolidated bones Is,
sued that year, and known as ''consols OF ls65."
These bonds will probably be the next called ior
conversion.
Under the act of March 3, 1865, referred to in
the preceding paragraph, and supplementary
act passed April, les, bonds were issued for the
conversion and consolidation of certain outstand-
ing obligations Of the United States. The bonds
issued in exchange for outstanding Obligations
were to be in addition to the coo $50 900 author
lied by the act. The conversion OF outstanding
obligations into these loans gave TO the bonds the
title of "consols." The bonds were issued in
three series. The first bear date OF July |, 1850,
and are known as ''consols of 1885," They be-
came redeemable July !, 1870, and are payable
july l. 1855. The amount issued was 1872 ,9sS,-
95.. The second series, known as "cOnsols of
1851, d" bear date July /, 1861. They became re-
deemabe July ], 1872 and are payable July /,
1857. The amount issued was 1913 Coz ,2JO. The
third series 'consols Of Is : ;" bear date of July
|, 1868, and became redeemable July |, 1873.
They will be payable July !, lSSS. The amount
issued was $42 ,539 $50. All the bonds OF these
series are designated on their face Consolidated
debt issued under the act OF Congress approved
March 3, 1865 =" Redeemable after five and pay
able twenty years from date" and "In God is
our trust" They bear six per cent. interest,
pavable the lst days of January and July. The
aggregate amount issued of these consolidated
bonds was : 775, lac, $50. There is now outstand-
ding of the issue of Is s. 1902 SOB 100; of 1867,
500, G22 $50; of 1865, s37 44 900. Total amount
lin , hain
500 less than the amount originally Issued.
THE NEW FIvEs.
The funded loan of 1881, now being Issued,
were authorized Y act Of July II, lS7r. 1t was
created to enable the Secretary of the Treasury
to fund at a lower rate Of interest the fvetwenty
bonds which bear six per cent. interest. By the
terms of the act authorizing the loan the interest
and principal of the bonds are made payable IN
coin of the present standard value. II was pro-
vided in the original act that the Secretary of the
Treasury should borrow a sum not exceeding
500 600 OK 0, for which coupon registered bonds
should be issued, bearing five per cent. interest,
payable semi annually, the bonds TO be redeem
able at the pleasure OF the United Stat after
ten years from date. Also, that sum not eX-
ceedng in the aggregate 500, 900 ,OCO shall be
borrowed, the bonds Tor which shall in all re-
spects he ike those spoken of above, except that
the rate Of interest shall be four and one half per
cent per annum, and be redeemed at the pleas
ure Of the United States after fifteen years from
date Of issue. Also, that similar bonds, TO the
amount Of 81 ,OO0, 0OO, 600, may be issued, the
rate OF interest 10 he Jour per rent, rcGcelndDc
at the pleasure Of the United States after thirty
years from date of issue. The proceeds from
the sale of these bonds are to be devoted to the
redemption of any outstanding bonds known as
five twenties. An amenGatOry act, passed
January 20, ls7l, authorized the issue of the
amount of bonds bearing five per cent. to
be increased to $500, OO0, coo, and pro
yided that the interest on all the bonds
authorized by the original act shall be paid quar-
terly. The amount of five per cent. bonds now
issued is 5 437, 1856 $50. As previously stated,
calls are out for over twenty seven millions of
five tWenties, which leaves less than thirty mil
lions TO cOmpletr the amount of the five per cent.
bonds authorized by the act of Congress. The
full amount authorized $500, 10000 will
be taken by November Is, the option of the syn
dictate expiring upon that date. Though this loan
is redeemable at the pleasure of the Government
after the LIST of May, 1881, it is not absolutely
payable at that time. 1t is presumed, therefore,
in view of it being the latest loan issued, and at
lower rate of interest," that 1t will be one of the
last loans called in for payment. 1t Is for the
reason that these bonds will have a long time to
run, and that the interest is payable quarterly,
that they will be much sought after for perma-
nent investment and become a security. The
conversion of fve-twenties into this loan Will
save the Government annually in interest s.
OuO 600, and during the past five years, while the
conversion has been progressing, the actual saw
ing to the Government has been about Sl2,-
d