Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-03-01

SOiIiC vi tLC nlCu W ilO uatC bCCu FtOhi
nent in the opposition the less said thu
better for them.
From the Boston Journal.
The Success of the ReftInding
Scheme.
If any one had predicted a year ago tina,
at this time there would be only 1917 .000,-
600 of six per cent bonds which were moi
.'called" in order to be exchanged for four
per cents. he would have been considered
an unreasonably sanguine individual. In.
deed, when Secretary Sherman stated in
December that he expected to be able to
exchange $500, 900, 900 of six per cents.
for that amount of four per cents. during
the year 1879, there was general feeling
that he was expressing his hopes rather
than his convictions. During the past
two or three weeks the sales of four pei
cents have not been so large as during
the month of January. Nevertheless the
sales in February to last Saturday aggre-
gated go, 272. 100, and will, it is estimat-
ed, reach go, 100000 during the month
The sales at the present time average more
than $3,O00,0oo day. If this average
is continued during the month of March
it will be seen that enough four per cents
will have been sold to redeem every six
hn,1
may get some faint idea of the magnitude
Of the success of the refunding scheme
when he remembers that OH April |, 1873,
there was $685., 620, 200 Of the fve-twenties
or six per cent. bonds outstanding. To
have sold enough four per cents in sim
gle year to convert those hundreds of mil
lions of six per cents into tours may be
regarded as one of the most remarkable
financial achievements on record.
When the six per cents are disposed of
there will remain Sl95, go, 800 of ten-for-
ties of 1864, and loan of $3.50, 900 made
in 1868, also bearing five per cent, to be
refunded. If the Treasury shall succeed
in changing these five per cents to tours,
there will be no class of bonds which can
be redeemed or paid until December 81,
1880. If the sale Of four per cents should
continue at the present rate, it is evident
that sum sufficient to redeem the five per
cents will be disposed of in six months
from the first OF April. Should that meas.
ure of success be realized there would
then be period Of more than year when
no four per cents will be offered for sale
by the Government. This circumstance
may have an influence to hasten the sales
of the $500. 0O0. 900 yet to be disposed of
particularly if there is no greater demand
for money in 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 ex
tensively of late by the ::holders of the
called six per cents. The fact that during
January less than $50. 000, 600 of the S5s,
DOC. 900 of four per cents subscribed were
taken by the holders of six per cents will
not snstain any such opinion. Later re
ports, however, indicate that more of tn,
holders of six per cents as they are callet
are changing them for the tours. 1t is es
timated that the holders of not over $50,
100000 of six per cents have replaces
them by purchases of tours. This woul'
indicate that $3.50, 900, 900 of capital invest
ed in 'called bonds has not availed itsel
of reinvestment in Government securities
There is fresh evidence that the new
government securities are owned by man,
thousand more people than ever before
One of the banks in New York engaged il
the sale of these bonds is reported to hav
taken POO distinct orders for registere
bonds in one month, and rs many NOR
coupon bonds of low denomination,
Heretofore, even in the case of registere
bonds, the official records show that tn
holders were not of very bloated varis
ty, since, in his last report, the Treasure
of the United States shows that out of |
357 holders of $50 .464, 500 registere
bonds then outstanding l0, 093 persons he'll
less than $40, 900 each When the recen
transactions are taken into consideration
it is more than probable that twenty per
sons are now interested in the maintenance
of the public credit by reason of owner
ship Of the government securities wher
one was public creditor year since.
In this connection IL snould be state
that since the beginning of the preser
year enough of the four per cents hav
been sold to take the place of the six pc
cents to make saving of s5.00O.OO0
year, and that enough more will be sol
during the balance of the year to increas