The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-14
DEMANDS FOR FOUR PER CENTS
How the Issue Of New Bonds
Affects the Treasury.
, DUTIES ON SUGAR AGREED UPON
important Developments Promised in the
Potter Committee
FROM OUR SPECIAL CORRESPONDENT.

WASHINGTON, JAM IS, 1870.
LARGE DEMAND For FOUR PER CENTS AND THE
EFFECT ON THE TREASURY.
The extraordinary rapdity with which the four
per cent bonds taken up attracts attention here
and has caused apprehensions in some quarters that
the large calls of old bonds would embarrass the
Treasury and announcement demand for
gold to be shipped abroad. 1t is not possible
to tell what amount of the called bonds held
abroad but the best informed persons here believe
that the greater amount at this time are held
here In any the issue of four per cents is made
by the Treasury almost altogether to banks which,
under the law, deposit security in the Treasury
Department an equivalent number of six per cents,
and in fact tho Treasury, when the transaction is
closed receives from the banks, in exchange for the
four per cents either six per cents coin and
perence shows that it gets about ninety per cent Of
the amount in bonds. Solar as the Treasury is con-
cerned it therefore exchanges four per cents for six
per cents and little money passes.
Tho amount OF four per cents now sold by the
Treasury direct to private persons and for which it
receives greenbacks is very small compared with the
total amount Of four per cents disposed Of and it is
getting less all the time because private purchasers
find that they get better terms from the banks,
which divide their profits with their customers
The Secretary has asked the Committee Of Ways
and Means TO bring in a BILL which it is under
stood the committee will report. allowing him
to exchange directly with the holders four
per cents for uncalled sixes giving them the commits
sion and ninety days interest which, under the law
it stands, only the banks receive, and they
only for called bonds. If this billshould become q
law the holders Of per cents exchange these
directly at the Treasury for four per cents getting
the same terms in doing which the banks re-
ceive in turning in called bonds.
The whole body of coin liabilities Of the government
is now paid almost exclusively in legal tenders by
preference of the holders of them and the $50
of gold coined annually in the country is likely to
flow into the Treasury. which can keep it more
cheaply than the general public. 1t is understood
that the Treasury has. since the LIST Of January,
fused to give greenbacks for gold San Francisco.
THE BANKING AND CURRENCY CoMMITTEE--sUs-
PENSION OF BUSINESS FOR THE SESSION PRO-
POSED.
At the meeting Of the Banking and Currency Com
nittee to-day the. chairman Mr.. Buckner, proposed
that the committee should disband and hold no
further meetings. 1t was determined, however. to
hold another meeting on Wednesday. which may be
the last for this Congress. Mr. Chitenden is making
last effort to persuade majority of the COM
mitteo to report Mr.. Hewitt's bill making sfl-
dollars interchangeable at the Treasury for gold
greenbacks and authorizing the Secretary to coin
much as little silver as the public may demand,
with amendment suspendng the Secretary's dis
erection in the matter until fifty millions of silver
dollars shall have been coined. 1t is curious
mentary the profession Of sound money prnci-
pies made by both parties. and the confidence Of
the silver ia their assertions that the people
want the silver dollar that it has far been mpos-
sble to get majority Of the committee to agree to
this bill amended.
Mr.. Ewing proposes to try to pass. under the two
thirds rule, bill prohibiting the Secretary OF the
Treasury from selling any bonds hereafter under the
Resumption act for resumption purposes. 1t is not
probable that it will succeed.