The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-07-19
SHERMAN'S SUCCESS.
THE GREAT REFuNDINe OPERATIONS OF
THE TREASURY.
A Full History OF the Refunding OF the
National Interest Bearing Debt
A brilliant Achievement
Of fRtatesmanshIp.

IN us various retunding transactions wa
prepared by Mr.. Carson, washlngto
correspondent Of the New York TINES:
On the lst Of August next the refundin
ofthe United States 0 per cent bonds, IN
der the acts of July II, 1870, and Januar.
20, 1871, will becompleted, and the month
ly debt statements will hereafter show tn
following issues under the two acts re
ierred to:
per cent loan, lss....,....~,..,,...., $50, Is
~ per cent Loan ... 2S0,0O000
per cent Loan 7627, %
TO,a.............. I9O OelsS
The above figures represent the total
amounts Of bonds sold since January II
l8!l. Ot this amount, however, $95, 800,
600 were sold under the specie resumption
act for the purpose OF accommodating golt
coin, and s, ,440, $50 were sold by Secre
tary BristOw to purchase silver, and Il
maintain in the Treasury the cash balance
OF legal tender notes, Now that all the
United States bonds which are subject e
call at this time are practically redeemed
and replaced with the funded bonds above
enumerated, q review OF the progress o.
the work Of refunding can not fall 10 prove
Of general interest.
The act Of July IA, 1870, authorized the
Secretary OF the Treasury to issue 500.
600, 600 coupon or registered bonds, "re.
deemable in coin OF the standard value. al
the pleasure OF the United States, after
ten years from the date OF their issue,'
and bearing interest at the rate OF 5 per
cent. per annum. The act also author.
lied the Secretary OF the Treasury TO issue
q sum not exceeding in the aggregate
$500, 100000 Of like bonds, ''the same in
all respects, but payable at the pleasure OF
the United States after fifteen years from
the date Of their ISSUE" and bearing In.
terest at the rate OF Al per cent, per an.
mum. By the same act the Secretary was
authorized to issue a sum not exceeding
In the aggregate 81 900, 900 900. payable at
the pleasure of the government after thir-
ty years from the date OF their issue, and
bearing interest at the rate OF
per cent per annum. tits specifically
provided in the act that the bonds
thus authorized shall be sold 'at not less
than par value for coin;" that the proceeds
thereof shall be applied to the redemption
OF $50 bonds at their par value, and 'ishall
be used for no other purpose whatsoever. I"
The actof January 20, 1871, was supple
mentary to the act OF July ii, 1870. ftin.
creased the amount OF per cent bonds
authorized by the act OF July, 1870, from
$500, 900, 900 to S5O0, 900, 900, but forbid any
increase in the aggregate amount OF bonds
authorized by that act, which aggregate ia
l,5OO OOO, 600. twill thus be seen that
under the refunding acts three classes OF
bonds were authorized to be issued
namely, 8 per cent bonds to the amount OF
$500, 100000; 4! per cent bonds to the
amount Of $S00,000,0O0, and 4 per cent
bonds to the amount OF $700,0O0,O0O; or
should the aggregate Of 4! per cent be less,
$500, 900, 900, the aggregate OF 4 per cents
could be correspondingly increased.
The first call OF $40 bonds for redemp.
ton under the refunding act was issued by
Secretary Boutwell,, in March, 1871, and
three months later the "funded loan OF
1881" made Its first appearance upon the
debt statement, the amount thus taken up
being $S;2l7 400. Secretary Boutwell, con.
tlnued at the head OF the Treasury Depart
ment until March, 1873, to which time he
succeeded in placing 500, 100000 OF the
new 5 per cent loan. Wm. A. Richardson
succeeded Secretary Boutwell,, and contin-
ued in office until June, 1874. During his
incumbency there were placed OF the new
bonds $lS5, SOC, $50, which made the
amount outstanding in June, 1874, when
Secretary Bristow succeeded to the
administration Of the Treasury De-
partment, Sl5,S00, $50. Secretary Bris.
tow sold the remainder Of the per cents,
and when he retired from Office in June,
1876, the aggregate amount OF that class OF
bonds which had been sold was SSH, ,494,.
l50. The amount in excess OF S50O,0OO,-
900, to which sum the issue was limited
by the retunding act, was sold under the
general provisions OF the RESUMPTION act
to purchase silver bullion for subsidiary
coinage, and to obtain legal tender notes
for the current disbursement OF the Treas
ury.
Lot NJ. Morrill,, OF Maine, succeeded
Bristow, and, shortly after assuming con-
troll Of the Treasury, negotiated with a
syndicate OF New York and European
bankers for the sale OF the II per cent
bonds. Mr.. Morrill, succeeded in disposinp
OF $50, 900 900 OF these bonds before he was
succeeded by Secretary Sherman.
Up TO this period March, 1871, the re.
funding OF the . per cent bonds had been
carried on, and in the routine manner
which marks the conduct OF business in
all the executive departments of the gov
ernment Contracts were made for plac.
ing the new bonds, and when that was
done the Treasury Department patiently
waited until the syndicate bankers ex-
changed the bonds and returned the old
ones to the department for identification
and cancellation. Practically the work Of
refunding was directed and carried on by
the syndicate, and the sales Of the new
bonds we're controlled by that BODY OF
bankers. When Secretary Sherman took
charge OF the Treasury Department a de-
cided change in the administration OF its
affairs soon became visible.
The routine business Of the department
was turned over to the Assistant Secreta.
ries, and Mr.. Sherman energetically deyo.
ted himself to making preparations for the
resumption Of specie payments on Janua.
ry !, 1870, and 10 the sale Of reipnding
bonds, The sale Of the q per cents was
pushed with q vi9or that startled the
bankers and brought them into active
competition for possession OF tho new
bonds. So earnestly and successfully did
Secretary Sherman push the sale OF these
bonds that In three months from his adj.
vent in the Treasury Department he had
placed Sl5O, 600, 900, making an aggregate
Of 500, 600, 600 disposed Of within the pe,
riod named.
The eagerness with which the bond.
were purchased at home and abroad, con,
WINGED Secretary Sherman that the credit
OF the United States was such that It's In
terest bearing debt could be refunded in {
4 per cent. bond, and accordingly he with
drew the Al per cents. and announced th,
sale Of I per cents. This bold polloy Ia as
tonished the bankers, hnt as the effect o
i was to place q premium on Al per cent
NNEaaa - ~