Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1879-03-11

THE SUCCESS OF THE ROUNDING
SCHEME.

THE SUCCESS OF THE REFJNDING
SCHEME.
IL any one bad predicted year ago that
40 this Time there would hc only >'-.u'1.-
oHI 81 >iN per cent bonds which were not
-cslI.l~ boo order tp Doe exchanged Tor four
r.- cents. hc would have been considered
au uurea~ouably >msuiuc individual In
deed. when Secretary sherman stated i'm
December that boz expected 90 Pee able 10
exchange Sjr1.uu1.ulu o. >iN per cents for
tIat amount Of four p,g cents during the
Nylr l~-Y, there was g. general feeling that
Dr. was expressing his hopes rather than
hi~ convictions During ,he past TWO or
three weeks llc sales of four per cents
have Not hg,u - barge - during ,Ac month
uf January. Nevertheless the sales IA
February 90 last saturday aggregated 500
30 90 aui wili 10 Is estimated. reach
SgJ.un1.UHU during the month. The sales
40 tlc present time average more than So
ylluu aJay. Ifth.> average j. continued
during the month or March 10 viii hc seen
that enough four peg cents vii, have been
sold Co redeem every >iN per cent bond now
outstanding Ouc may gct some faint Idea
OF the magnitude ol tuc success uf Tine re-
fauJiu- ~chrmc when De remembers that
un Aurl T. ISIS there was >t3~ f2U 300
of tlr ny,-tV,utic> cor six per cent bonds
outstanding 10 have sold enough four
per cents Zoo single wear 90 convert those
hundreds ot millions of >iN per cents into
f,ur> mly Doe regarded J~ one OF thy most
rlmarkab,. financial achievements ou rec
ord
When tIc ~iX pen cent, arc disposed OF
there vii. rJmaiG >IJf. 100000 OF ten-fortie>
OF 1853. aul % laJu OF $4,000 made .u
l>i~ also bearing five per cent 10 Do re-
funded IT. thr Treasury shall succeed in
changing these five per cents To iOur>.
there VIII hr 40 class VI bonds which can
bc redeemed or paid until December 81.
l~~l n the sale OF four per cents should
con-mug 40 the present rate. 10 j. evident
that sum sufficient to redeem the five per
cents viii De- disposed or in >iX months
from -.. Hr>t OF April. Should that meas
urc OF success Dee realized there would then
De "a period Of more than wear when no
fourpcr cents will be offered for sale by the
Government. This circumstance may have
am influence 90 hasten the sales OF the
S3000UJ.ol1 Yet To- Poe disposed of, partic-
ularly If there j. no greater demand for
money i'm other directions than there has
already been for The past two or three
Years.
The impression has prevailed that the
four per cents have been taken quite extern
>iyclv of late by the holders OF the called
>iN per cents. The fact that during Jauu-
arv less than SjO.uOO.UOO of the eljs 900, .
Uup OF four per cents subscribed were taken
by the holders Of six per cents viii not
sustain any such opinion. Later reports,
however indicate that more of the holders
oI >iN per cents - they are called are
changing them for the tour>. IL j e>ti-
mated that the holders of not over $50
uu0.Uln Of six per cents have replaced them
hx purchases uf flur> IniS would indi-
cate that SIjoUuu.Uuu Of capital invested
iu "callel bonds" has NOT awaited itself of
remyc>tmynt .u Government securities.
Their, H. fresh evidence that the new
Government securities are owned bV many
thousand more people than ever before.
one Of the banks iu New York engaged iu
the sale Of these bonds l. reported TO have
taken POO distinct orders for registered
bonds u ONE month"; and Is maA more
coupon bonds the greater proportion OF
which were for bonds OF low dcnOmiua-
tiou> Heretofore. even I'm the case of reg
i>tered bonds Tie official records show that
the holders We're not of a very bloated Va
riety. since. IN his last report. the TredSur-
er OF the United States shows that out of
ll.S55 holders OF 500, 464, 600 registered
bonds then outstanding, l0,U93 persons
held less than $4,000 each. When the re-
cent transactions are taken into cOnSidera-
ton. it is more than probable that twenty
persons are now Interested i'm the mainte-
nance OF the public credit by reason OF
ownership or the Government securities
where one was public creditor q year>ince.
In this connection it should De stated
that since TIE beginning of the present
wear enough OF the four per cents have been
sold o. take the place of the six per cents
60 make saving Of 5000, 900 year. and
that enough more viii be sold during The
balance Of the yeaI % increase the annual
saving iu interest To Sl0,0J0,o00.