New-York tribune., 1879-12-31

A LITTER FROM SECRETARY SHERMAN EXPLAINING
WHY HE THINKS MIR. WOODS THREE AND oNE-
HAIF PER CENT BOND WOULD NOT IsE A Sue
ex-senator MORRILLs BILL APPROVED.
GENERAL PRESS DIsPATCHl
WASHINGTON Dec. 30.--Senator Morril, OF the
Senate Committee OH Finance, has made public q
letter from Secretary sherman concerning the pro-
posed refunding of the and per cent bonds. The
Secretary says
In addition to the Sls415 900 six per cent bonds
absolutely payable Dec, 81 1850 and S945 200 payable
will become redeemabe within the next and hail.
VIZ: May /, 1851 per cents sSos. 40.35O; June So
S4i ,3Sl .29s So.
About one-balf Of these coupon bonds having
pons running only the dates OF redcemabity: aud II
they refunded paid Of, the holders wi haye
to he supplied with additional coupon sheets NJ the eI
pense OF the Government and at cost probably neary
as great would pay for an original issue Of loan
in 1881; aud l therefore felt II TO be my duty
TO recommend In my ennual report that authority
be granted TO refund them into por cent bonds,
charge Of about $40. .50O,OO5. The present time be-
lieye TO oe most adyantageouf Tor such refundins-
probably much more favorable for the operation than
future time and we have at hand III me per cent
consols bond already we'll known and extremely popu
lar The successiu funding OF 80 large portion OF the
public debt INTO these bonds during the past year was
mainly due to the exceptionally favorable state OF our
foreign and nome trade and the resumption OF specie
pay nens and ismy firm belief tnat our wscs course
Is the remainder OF the sonds bearing high rate
OF interest while this state OF affairs continues.
The bill IN the House on
the 81 nst by the Hon. Fernando Wood. Chairman OF
the Committee OF Ways and Means and whcn has beer
sent TO me, provides follows That much OF tDs
authority conferred upon Secretary Treasury
by the acts Of July Ia 1870 and January 20, S7l 10
A. has not been exhausted and executed b. aRc tne
same is hereby modified linfN tna
rate of interest the bonds yet TO be
issued, as authorized by these acis. 10 rpe Of
interest exceed three and Onehalf centum
aDpurI." This bill, II enacted into law, would per
maps construed prohibiting ihe sale oi bonds Tor
resumption purposes at greater rate OF Interest than
% per cent although such IL not Probably the intent
the blli. Aside, however, rom ITS possible bearing
upon the ability OF the Department TO mania reunr-
on beneye that Its passage would De atl 90 r. md
ing although should OF course be happy To refund tue
eut per cents, II practicable 10 do That
81. per cent bonds would now sell Tor par,
nIy satisfied and reason TO expect that suca
me in 1881 wouid be now. On .the contrary,
with the revival OF Industry and the great Lctyiy IN
manufacturing, signs II which are already TO
be seen In all parts of the country. and the
constant and increasing demand for money ar!s
ing therefroIn, II seeIns To me 70 be not ut
all certain that wesha thsn be abe 10 borrow freely
nj even cent annum, and or the correctness c
these views received the most positive Assurances
during my recent visit TO Neu-York-
our per cent Console now having twenty eight
years TO run; worth. during tue frst half OF thie
month 1C2i net, at which price they yield 70 The 10
yester TO % maturity $500 per cent per anDu
thirty years' 3is cent bond, 70 yield the same In
come would nave 10 DO purchased at 1870 Again, (
per cent bond 60 yield but 8s per cent per snnugi
would have to bo at los.ss. and, therefore. 3 per