Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1879-12-30
The Republicans Of Maine
Holding Meetings to Ex-
press their Indigna.
tion.
Secretary Sherman In a Letter 10
Senator Morrill,, Gives His
Views on Refunding
Operations.
The amount Of Five and Six Per Cent
Bonds Payable During the next
Year and Halt is nearly
$800,000,000.
GOVERNMENT BONDS,

GOVERNMENT BONDS.
Tho Amount Becoming Duo During the
Next Year aud y Half.
Washington, Dec. 3O.-Senator Morrill,
makes public the following letter from the
secretary Of the treasury 10 him as cb air.
man Of the SENATE committee on finance:
StR-ln response to your verbal en-.
quirie., | have therefore to submit the fol-
loving observations respecting the refund
ing Of the national debt: In addition 10
$l8,4l5,O0O Of six per cent bonds absolutely
payable December 3lst, 1880, and $9l5, 900
payable July lat, 1881, the following bonds
Of the United States will become redeema-
BILE within the next year aud half, VIZ !:
May lat, 1881. five per cents, $50S, ,44O $50 {;
June 30lh, 1881, six per cents, $264 32l $50.
making y total OF $772,76l, 200, the annual
interest charge on which is Sal 1881, ,29S.
About one-half of these are coupon
bonds, having coupons running only to the
dates Of redeemabillty, and il they are
Transferred or paid of the holders will have
to be supplied with additional coupon
sheets at the expense of the government,
and at a cost prsoabiy nearly an great az
would pay for the original issue of the loan
1t il manifest that these bonds cannot be
paid off in 1881. and therefore felt 1t my
duty TO recommend IN my annual repor.
that authority be granted to refund them
into per cent bonds, thus eff.ct'ng saw
ing in the annual interest charge Of about
ten and halt millions. The present time
believe to be the most advantageous for
favorable for the operation than any future
ouI houa ut hun.( ;,,A
consols bond already we'll known
and extremely popular. The successful
funding Of 80 large q portion
the public debt into these bonds during the
past year was mainly due to the exception
ally favorable state ofour foreign and home
trade aud tue resumption of specie payments,
aud it is my firm belief that our wise.t
course is 10 refund the remainder OF the
bonds bearing high ra:e of interest while
this state Of affairs continue. The bill in
troduced in the house of representatives on
the 81 INST. by Fernando Wood, chairmau
of the committee ON ways and means. and
which has been sent 10 me, provides as fol-
lows: Toat 10 much of the authority con.
ferred on the secretary of the treasury by
the act Of July 14th, 1870, and
January Goth, 1871, to refund the
public debt 10 the extent of fifteen hundred
million dollars rs has not been exhausted
and executed, be and the same is hereby
modified 80 as to limit the rate Of intere. t
uyon the bonds yet to be issued a. All hor.
lied by these acts to a rate Of interest not 10
exceed 81 per cent. per annun. Il il bill, If
enacted into a law, would perhaps be con-
strued as prohibiting The sale of bonds for
resumption purposes at . greater rate Of
interest than - per cent, although such il
not probably the intent Of the bill. Aside,
however, from the Irresponsible
bearing upon the ability of the
department to maintain resumption, l
believe it's passage would be fatal 10
rebuilding, although | should OF course bs
happy to refund this debt into 31a per
cent. if 1t were practicable 10 do so. That
3l8 per cent. bonds would not now sell for
par am fully satisfied. and l see no reason
,uexpect that such bonds will be more ia
vossUly looked on as Investment 10 1881
than 1t would be now. % the contrary,
with the revival Of industry and great &C.
tivlty 10 manufacturing, signs of which are
already to be seen 10 all parts Of the cOun.
try, aud the constant and increasing
demand for the former arising
therefrom, il seems to me to be not at all
certain thai We shall be able to borrow free.
ly at even four per cent per annum, and o
the correctness Of these views I received
most positive assurance during nv recent
visit to New York that our four per c. nj
consuls, nov having twenty-five years te
run, were worth, during the first half Of thi'
month, $l024 net, at which price they vieId
to the investor, to carry TO maturity, SO Of
per c. ut per annum. A thirty years 81 pei
cent bond to yield the same income woult
have to ne purchased at $3.50. Again, 1
four per cent bond to yield but 81 per cen
per annum would have to be purchased .
slOS S5, and therefore 81 per cent bont
cannot Sell fur par until four per cent bond
are worth $lO8.88. With = small suppI.
In market, the great bulk of them having
been aosorbed as permanent investments
'he four per cent bonds are now selling 70
nearly the best prices ever Obtaine'
lor them, but it il no
probable that this price can be full
maintained against the additional issue OF
any large amount, and would remind 20
mat during the last refunding operations III
sales OF these bonds had been snspende
more than once owing to derangeut nts j
'he money market and the unfavorable stat
o' exchanges thu. causing the bonds to IA
oe'ow par. ~ one time to per cent. Fol
'nna'ely these arrangements were but ten
pofary, and after more or less delay til
department waa able to resume the sale
As before stated, l think the present q
exceptionally favorable time for refandini
s"d am aatirfcd that III
oPer cent and Gper cen
'"sonn To bscomc redcemsblr, cannot b
p'ott.hiy provided for 10 any other ms'
".'. Tue very large smouht ~ t,e ,c'nn'
o on prior tn Ju.y 2ud, 1881. nearly 5 0O0
VyO, u consinss sahis 4, !. nrsa of iha ama,i,