The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1877-06-22

vertible with legal tender green
backs at owners option, and IL these
notioual bonds were thus made in
terconvertibIe the effect would be
to make and keep greenbacks with
In q mere fraction of gold par val
ne, while not themselves legally re-
deemable In that wonderful metal.
But that sort Of interconvertiblity
would also result finally in SO edu-
eating the people as to enable them
to see how "specie payment Eek
cept the payment OF interest on
bonds as it falls due) could be dis
pensed with, and the much ridicul-
ed 'intercOnvertible bond and cur
rency plan" would become easily
understood and so popular that
nothing could oVerturn it, and then
bank currency and resumption, >
would be discarded, and that would
never do. But the proposed refund
ing Of the six per cent. into four
per cent. bonds will soon be mat
ter Of public interest so that we
clip the following tel egram:
THE NEW FOUR PER CENT. BONDS.
WAsHIN aToN, June 1O.-A specia
meeting of the Cabinet was held on
Saturday to consider the question
Of refundiRg the six per cent. bonds
into four per cents, under the re-
funding act of 1870. After q long
discussion it was determined to
discontinue the issue of AZ per
cents and commence at once The is
sue of $7OO,000,000 of four per
cents authorized by the re-funding
act, and the Secretary of the Treas
ury Was authorized to negotiate for
their issue with the syndicate of
bankers named. The agreement is
the same In terms with that made
for placing the AIS, with one i'm
portant difference, namely: 1t is
provided that the loan shall be
opened in the principal cities of the
country to popular subscription al
par In coin, and held open fer thir-
~ days, the subscribers to be given
ninety days from the date of sub.
scription In which to pay the
amount subscribed. The syndicate
agree to subscribe for an additional
amount of AIS to make their ag-
gregate subscription of that class
OF bonds $200000,O00, aud the re-
naming 100000, 900 authorized are
to be Withdrawn by the Secretary
of the Treasury. Five millions OF
this class and $4,000, 900 of the four
per cents are to be sold and held
for resumption purposes under the
resumption act. The following is
an autline of the agreement made
with the syndicate:
A contract has been entered into
and signed by the Secretary of the
Treasury and Messrs. Rothschild,
j. 8. Morgan s. Co., Seligman
Bros, and Morton, Rose 81 Co., OF
London, and Messrs. Belmont 81 Co.,
Drexel, Morgan & Co., j. and w.
SeliGmRn & Co., Morton, Bliss 81 Co.,
and the First National Bank of New
York, for the sale of the four pei
cent. thirty-Year consols, at par, in
coin, of which $25,O00,0O0 are SUBJ
scribed for now, to be paid for In
July and August; S5,000OO0 to be
for resumption purposes, aud S20,-
100000 for redemption of six pei
cent. bonds; and sales are to be
continued as rapidly as possible
The csntract Is for six months, anC
is similar in general terms to the
former contract, but has this impor.
tant provision: That for thirty
days after the loan shall be open tC
popular subscription in the princi
pal cities of the United States at pal
in coin, with the right to pay fol
the bonds within ninety days after
subscription, upon delivery. UpoT
the notice given some days since
the Secretary of the Treasury hal
Withdrawn from the market 500,
100000 of AZ per cent. bonds, anC
the former syndicate have subscrib
ed, under the old contract, for $25,.
100000 of the AZ per cent. bonds
being the balance of the 100000,
600, the amount of that loan; So,
100000 to be applied during Jun,
for resumption purposes, and So,
100000 during July for the samt
purpose, and $l5,0O0,000 to be ap
piled to the redemption of 6 pei
cent. bonds. These agreement
close out the Az per cent. loan, and
place upon the market the 4 pc
cent. loan, with q firm subscription
of $25,OOO,O0O. The new loan
drawing per cent, and extending
for thirty years, with interes at paya
BILE quarter-yearly, is far more fa
vorable for the government than eV
er before issued, and, from it's per
manency and security, will becomI
the national investment of TIT
earnings OF the people of the Uni
ted States and Europe. Every bono
sold will lessen one-third of the
burden of the public debt to thu
amount OF the bond. The bondi
are issued for $50, 500, $500, 81, 00C
and larger amounts, and will, b.
the mode Of their sale, be brough
within the reach of all classes o
people.
A surmise in regard to the effec
of this new loan upon the status O
savings banks may not be out o
place. 1t Is not only general,
known that the great majority o
savings banks could not, IL an
thing like q general demand for de
posits was made, meet such q de
mand, bat 1t is also getting to be un
derstOod that these banks hav
most OF their fands loaned upol
real estate that is not marketable
and could not be sold for enough
TO meet the loans, and that thei
condition 10 such that deposition
are liable, as Is the case Of the cit
savings bank of Manchester, N. Ii.
which we reported last week, to b
"docked " q considerable per cent
age of their deposits. AS natura
consequence, depositors must be ap
presensive Of loss if they do no
withdraw their funds, and at jus
this crisis GENES the offer of tn
government to sell its own four De
cent. gold interest bonds, thus OF
fering q sure investment of none,
al reasonable rate of interest, an,
In n form, alvVava unarkataAlo :. .