Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-11-01
ABOUT THE PUBLIC DEBT.

THE LOANS THAT ARE NEXT COMING DUE-REFUND-
ING OPERATIONS TO BE RESUMED IN 1SS1-LEGIS-
LATIoH REQUIRED NEXT SESSION AUTHORIZING
THE NEW WLOAN-PROBABLE RATE OF INTEREST.
December 31st next the loan of February, 1861,
six per cent, is payable by the government. 1t
amounts to SIS, $4,000. In July of the following
year the Oregon war debt, authorized March I'd
1852, also six per cent, becomes payable. 1t
amounts to $945,OO0. These loans will be
promptly paid at maturity, and the national
debt decreased accordingly. In 1881 three classes
OF high-rate-interest bonds become redeemabe
These are the loan Of July and August, 1861
amounting to $1s9, ,321 ,35e bearing a rate Of six
per cent. interest; the loan of 1868, currency,
called the 1ss1's six per cent, amounting to S75,-
0O0,0U0; and the bonded loan Of 1881, five per
cent, amounting to $5Os, ,44O,35O. The first of
these two loans Is redeemable June 3Oth, of 1881,
and the last named May 1St, 1881. As these
bonds cannot be paid off at the date they become
redeemable. and as they bear too high a rate of
Department will have to resume refunding
operations which recently closed with
tine Placing Of the four per
five-twenty six per cent bonds An act Of Con-
gresS will have to be passed authorizing the
refunding OF these bonds, the total Of which is
this shallbe erected. In order that the Treasury
shall be prepared to resume refunding opera
tons In 1881, 1t Is proposed that the necessary
legislation shall be enacted at the next session
give the necessary time to perfect arrangements
for putting the new loan into active operation.
To this end 1t Is understood that bill making
such provisions for refunding, was in the
eyes Of the Treasury department cover the
question, is being prepared. 1t will be sub
mitted to Congress at the next session. 1t will,
OF course, undergo changes at the hands of that
body. 1t is not known what the details of the
proposed measure are to be, but they will neceS-
sartly be somewhat similar to the operations
under which the five-twenttes were converted
int Into tours SondI The rate soa Of interest Of
in 1881 will not of course be higher than ~ per
cent, as $5OS, 40, $50 OF these becoming redeema-
Bile in that year bear but five per cent. 1t is
safe to say that no higher than four per cent.
bond will be put out. 1t is suggested that 81
per cent. would be easily taken. The success OF
the f0urS would seem to indicate this; also the
veIted is in trust funds, which would be again
put into government bonds as the only really
safe investment. Against this is the fact that
business has greatly revived, and money finds
would be offered In a 31 per cent bond. To
place bond OF the latter rate successfully it
would in any event have to run for very long
time-say for fifty years. This would run the
the fours become redeemable, 1907. A long bond
could not be Objectionable at SO per cent to the
government, as it is evident that even fifty
Years hence-iii11 idea Of paying off the public
debt in greenbacks issued by the wholesale for
that purpose having fallen with inhationism-
the Treasury would hardly be able to wipe the
loan out by paying it. 1t is the same witch the
bonds which will become payable in 1907. They
Will have to be allowed to run on or be refunded
into lower rate than they now bear. None Of
the actual work Of refunding the bonds redeem
able in 1881 will fall upon the prerent Treasury
regime; but II Congress passes the bill at the
next session, matters can be gotten into such
shape as to have everything ready when the