The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-07-31

800, 101, $50. In the month of March tho sales
fell to $20, So, 100, chiefly by reason of q feal
that the enormous payments required unde,
the Funding act during the months of April
and May would create a disturbance in the
money market, but this fear having been dissi-
pated, by the 1st of April the sales were
rapidly resumed, and in four DAYS they
amounted to S73, 252,3OO, enough to cover
the United States. Thus, as the first fruit of
resumption, within 100 days cfter it's
coming, we sold $343 lie, 25O f. per cent. bonds.
i with which to pay an equal amount of 6-per-
cent. bonds. securing saving of Sc. S62. 205 a
year. Nor is this all. There were Outstanding
at that time $l4, Dot, 800 5-per-cent. 1910
bonds, redeemable at the pleasure of the United
States. To pay off these bonds the Treasury
Department offered $l50,OOO,OOO 4.per-cent.
bonds at premium of one-half of per cent.
the residue to be paid from the proceeds of SO
refunding certificates or the direct exchange of
bonds Pending the preparation of this offer.
it was greatly doubted whether the department
was 1ustlhed IN demanding premium, but, as
, these were the last bonds that could be offered
within two years, l then thought a premium
could be secured, and would have demanded a.
| higher rate but that the law required the re-
funding certificates to be exchanged at par for
lawful money. These refunding certificate
were designed to furnish an easy opportunity
for persons of limited means to invest their
savings in small sums, and were of great i'm
portance, not only for the convenience of all
classes of our people, but to interest them in
| the advantages and stability Of the public debt
Within two days the whole $3.50, 100000 bonds
were sold upon the terms stated, and offers
were made for the whole of the refunding Ger
tltcates, which offers were declined, and the
certificates were sold by postal money order
| Offices throughout the United States This
| closed all the refunding operations authorized
by law, for there are no other bonds that can
now be redeemed, except by purchase in the
open market at their market value.
The annual saving in the interest charge eff
fected by these refunding operations since the
1st of January last is $3.50, 465, and since the
lst OF March, 1877, to the present time, $14,-
397,1T.
Sometimes complaint has been made that
during this process OF refunding the amount of
interest bearing debt was temporarily increased.
and that interest was paid on two sets of bonds
at the same time. This, from the nature of
things, was unavoidable under the provisions
of the Refunding act of 1870 By that act. be-
fore any bond can be redeemed, notice must be
given for the period of three months Before
that notice can be given, bonds have to be sold
and the money either collected or secured, and
this process necessarily involves the payment
of interest for three months, not only upon the
bonds sold but upon those to be redeemed
Advantage WAS taken of this fact to uniustlv
arraign the department for a matter beyond its
control constant cutlery was made that the
lnterest-bearing debt was being increased
The debt statement would necessarily show
that, during the three months, two sets of
bonds were outstanding, but it would show,
also, that the money was in the treasury and,
this being deducted, would leave the balance
of the debt as before Thus, if you owe
81 900, with the right to pay it at your pleas
ure, and borrow money for that purpose, you
time until you can apply the borrowed money
to the payment of the first note.
This is precisely the condition the United
States was in when borrowing money to paw
outstanding bonds. The debt statement Of
July l shows as part of the public debt the
whole of the 1910 bonds and also the whole of
the bonds issued for their payment, bnt also
shows the money in the treasury to pay them.
In the next debt statement the 10-4Os will dis
appear, or such as are unpaid will appear
among the debt bearing no interest The cash
in the treasury will also decrease accordingly
thought the notice required by law as entirely
too long, and in my annual report to Congress-
Democratic in both branches, earnestly urged
shortening of the period to thirty days or
less, in order to save this double interest, but
the recommendation was declined or ignored
If any one is to be held responsible for the
double interest it should be Congress- In JUS
tlce to the department. it is but fair to state that
all the loans negotiated for the last two years
have been on more favorable terms than any
loans ever made by the United States They
were generally made by popular subscriptions
by the people directly. The saving from the
amount allowed for the expense of negotiating
the loan is over 81 100, 900, and the premium
exacted on and AZ per-cent. bonds amounts
to 81, 496, 94S.25 l can say without fear of con-
tradlction that no nation ever negotiated it's
loans at a less cost or on as favorable terms
The sales of the famous 3-per- cent consols of
England, when made, were on far less advan-
tageous terms than the United States was able
to secure after accomplishing resumption ''
The resumption of specie payments has had
the same beneficial effects upon the business of
private citizens The reduction of interest on
the public debt has made it possible to reduce
the rate on all debts, whether State, corpora
ton, or private. Nothing is more certain than
that irredeemable money leads to the increase
of the rate of interest. The first effect of it's
ssue is to reduce the rate of interest and to ad-
vance prices. If not redeemable in coin it de-
preclates In value and more of it is necessary
to conduct business 1t causes OVERT aiding
| and speculation, not only as to the prices of
commodities, but as to it's own value This is
shown in the advance of interest, and what is
called scarcity of money. This general rule
40 SU0tOu Wy ouCu Oll WIltoIS dS Audu DulUu
and Thomas Tooke, and is fully verified by the
rate of interest before the panic and since re-
sumption. Private debts are now being rapid
ly reduced from 10 to g. and even to per cent
The State of New York has by law reduced
the rate of interest in that State from to per
cent. The city of Providence sold AZ per cent.
bonds at above par The State of Pennsylva-
MIA sold $2,0O0OO0 4-per cent. bonds at above
par. The city of New York sold 5-per-cent
bridge bonds at 1876. Five million dollars of
Denver and Rio Grande Railroad Company r
per- cent bonds were subscribed in two hours
the first time for years that money has been
pledged for building railroad. All securities
| have advanced since January LIST at the average
rate of 10 per cent. Mortgages at from to 10
per cent. are daily being reduced to from to
Sper cent Capital is again seeking invest
ment in any safe securities that offer.
With the first decided preparations for re-
sumption there came slowly a revival of bust
ness; with the success Of resumption that
revival is marked in nearly every branch of in
dustry.
I do not propose to weary you with mass
of statistics, but will only state the general re-
suits with regard to few leading branches of
American industry. '4}-s ff 1r'
The increase of our axnorts of domestic NOR