The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1879-12-05

goyernment Serives an Advantage In circusting its
notes without interest, and the people prefer such
nttes TO com zs money for their convenience Ia
use aud thsir certain redemption In coin on de-
mand- This mutua advantage may be secured
"i'nout the ex' reise Of Questionable power. Nor
need any Inconvenience arise from the repeal Of
the leg Il tender clause ~ 10 future contracts Con-
tracting parties MAJ stipulate for either gold or
SILVER coin or current money. In the absence OF an
express stipulation for coin the reasonable pre-.
sumption might be properly declared by lsw. and
the contract enfor ed sccor ingly The secretary
therefore respectfully submits to cor gress whether
the legal tender clause should not nos be repealed
~ 10 all future contracts, aud parties be left to
sttpniaie the mode Of payment United states
Dots should still be ysbe ter al cues TO the
errment; they should be Ioinp;ly red, emed on
demand, and ample provision made 10 secure Euch
Redemption.
On the 2Sd OF November, Il7s, at which date the
refundinR transactions were brought in the last
annual report, there bad Teen itusd OF p cent.
consois for refunding urpoees ~, 7U,e0o. and
ere remained at that time bonds redeenable, as
follows:
Authorizing act, rate of interest amount
Msr,h, .. lsea, per cent. fB7i ,42l. 800
March 8, 1864 lIo.Aosl, per cent?. 1914, SO. 500
TotAl......... ..".,..............s $3.50. 20. 100
In that report the attention Of congress was
called to the three mon his public notice q, fred
by law 10 be given 20 holders Of bonds call d for
redemption with the recommendation that the law
be 30 modified that the notice be, at the discreiun
Of the secretary, not less than ten days nor more
than three mouths As no action was taken loon
tins rec mmendetion. ON January /, 1879. thu per
cent loan was Offer d 10 the pub &c without chang
ing the period Of the notice, and in view OF the
practical ef CT OF resumption the secretary offered
10 receive Unit,d STATES notes IN payment for the
bonds Id. The bonds were rapfd sold In this
country, ADD the resulting redempti ms Of 6.2O's.
many Of which were he'd In Europe, rendered de-
sirabls the sale OF the bonds in London facent
TO prevent the shiumsnt Of gold from this country
To attain this object = contract Was made, on the
23d day Of January, 1919, with certain banks and
bankers, under which they agreed TO sub cribe at
once for slJ 00J 900 of per cent. bonds with the
option Of taxing SIS 600 more By monthly sab
Sc iptlons OF si,O00O00 during April, May and
June. On the part OF the gogernment the bonds
were delivered fire Of charge IN London, a. which
pl ce an agency was 10 be maintained during the
continuance Of the contract. Under this contract
under authority Of the act Of January 20, 49, the
secretary offered to exchanges per cent bonds for
unealled BIOS. The amount II b.20's SO ex-
changed was ss06,0O0, On March 4 notice was
be covered by subscriptions the sale Of
per csnts for reiunding the 10 40 bonds would
probably be made upon less favorable terms TO the
purchasers, owing partly TO fears that the heavy
payments, falling que in April and May would
create disturbance in the money market. There
WAS falling of In the sale Of bonds during the
month Of Mach. Measures were successfully
taken by the depar ment to secure the adj ustmeut
Of The accounts Of the purchaser Of the bonds with
out embarrassment to the business inter- SITS Of the
country. On the morning Of April the amount OF
outstanding 2Os not covered BY subscri ptions 10
the per cents. was SO, 565, 70D Before the close
OF business on that day, subscriptions were recey
ed sufficient to refund the remaining 12Os, and In
accordance with previous notice, the offer Of Jan.
was rescinded. Additional subscriptions were
ceived and rejected amounting to So, ,SO0 The
refunding Of the s. 20s having been accomplished,
and no other per cent. bonds being redtemable
on April l6 $50 0U0, 900 Of the per cent bonds
were offered &C premium OF u OF per cent, the
proceeds to be appl ed to the redemption Of the
per cent. bonds issued under the act of March g.
1854, known as IO-4Os, reserving the residue
$44.o66 800 necessary for the redemption of the
entire loan for the conversion Of refunding certih
bonds we're also offered In exchange for any out
| standing uncalled l040 bonds. On the following
day subscriptions amounting to $ll9, 3s9 $50 were
received and scceped, and $50 1885, 90 received and
the fes of the per cent. ooDc were withdraw.
Une subscription for $40, 100000 Of e certi cafes
Was also received ana declined, the evident pur-
pose Of the law authorizing the issue of these cert
ficates being to Cause, lar Practicable, dis
tributIon of the pubic debt among the people:
Exchanges were also made In the amount of 81,
es9, Boz. On April al Gall was made for the
call was made for $780, 100, loan of 1853, thus COM
p.eting the redemption Of all outstanding redeem
able bonds bearing interest at Fer cent.
On March IL, leT9, independent treasury officers
were authorized TO exchange the $lO certificates:
authorized by the act OF February 20 1879, at psr
for lawful money and the treasurer of the United
States was authorised to issue them upon the
tihcate Of any national bank designated for that
purpose To facilitate nd distribute the sale of
these certificates national banss and public cf ers
were invited to becoms depositaries or this pur.
purpose, ss authorized and provided by sections
3,G3y and B, 81. revised statutes of the United
states. Each certificate was prepared in the de-
nomination Of $l0 and bore interest at the rate Of
per cent. per annum from April ], 1873. at which
| time the quarterly interest began on the per
cent. bonds into which the certificates were
convertible in sums OF $50 or ns null
tiples. Any person subscribing could, at
his option, have the Certificates registered In
his name in the books of the department imme-
d lately on the advance by the department OF the
4 per cent. bonds to = OF per cent. sboye par.
The demsnd for these cert fcates greatly In.
creased. Offers for them at premium CORE pond
ing O the pr. MUM on the bonds into which they
were convertible we're received, but the act under
which they were is.ued not only authorized but
directsd them TO be issued in exchange for awful
money thus apparently preventing the sale Of them
at o IremIum, asd the offers were the efore de-
clin6d. 10 bring them within the reach OF small
investors, on aud sf.er April j, their sa was re-
ofacers tonded for that purpose, and to sums not
exceeding 500. At one tine evssions OF ths inteut
Of the law and instructions, however, with
vi of immediate COW rsion Of the certificates IN
t. bonds, soon became evident and on April 20, he
officers self the cert cates were directed to re-
fuse them when such evasion WAS manifest. At
the same time commis ioOs on the sales IN large
amounts were greatly reduc d. aud the COW rsiIn
OF the csItiheatss into bonds was POSITIONS. until
July, 1879. The entire amount was, however, DIS
posed OF rapidly the certificates could be pre-
pared, and before the close of tie isca year. In
re ponse 10 the invtati N to b. come d"positares
for sale of these Certificates, 90 Pnbc ON 70 and
70 natl banks were des grated for the purpose
and engaged in the sales. The certificates were
sold 10 follows:
By pub &c officers designated ss deposit
aries ................... ............ w
BY independent Treasury officers 10, q, $50
--
In ACKNOWLEDGEMENTS. s4O.0l ,750
II which amount there had been converted into
per cent bonds TO the close blu incss DC ober 81
l-79, IS, 2O3,350 leaving outstanding s. 800 400
Thus, since November 13, Isis. 10 which date the
trans ctons were brought IN the last annual report
there hsye been refunded 1870 RS goo par cent !,
and Sl93, SyO, $50 per ceIt. bonds Of the United
State. into ,nds barring interest at per cent,
making an annual saving Of interest hereafter Of
$o. S55, s77.6o.
The secretary then goes on to give
tables showing the entire amount and
kind of bonds redeemed under the re-
funding acts, from which it appears that
the total amount of refunded bonds is
81, 1876, 345, $50 on which the annual in
terest charge was $8l, $50 ,684. The
touds refunded were six percents., with
the exception of $208, l07 $50, which
bore interest at five per ceut. The bonds
which took the place of those refunded
involve an annual interest charge of
SOL, 1888 1913, from which il will be seen
that the annual saving in interest is
$l9, SOC. 846.
Bonds to the amount of 1872, 07l, 700
will mature In l880.8l, the bulk of them
not till the last named year. OF this
amount all but s273. 63l $50 ak per
cents. bear interest ut five per cent.
Jnder the refuneing acts of July II, 1870, and
JAM 20, 1871, binds for refunding purposes were
authorized IN the amount of 81 O,O0J. 600 OF this
amount there have been issued, as above stated,
800 leaving .yailable for future Iefand-
suggested that authority be given ut the
present session of congress 10 Issue, sell,
or dispose Of. at not less than par
forth in the said act Of July H. $780, and refundipg
certificates OF the description set forth In the act OF
Feb. rs, 1879. with like qualities, privileges, and
tent necessary 20 redeem the bonds falling due on
or before July !. 1881. above described, and
to use the proceeds for tina. purpose.
Of the country will ensbls the secretary
to sell such tonds and certificates at Q pre-.
MUM, but II seems better TO maintain the general
conditions OF me per cent. bends rather than 70
per cent. consoi is now universally known. The
rate OF interest 10 as low rs will generally maintain
the bond 81 par, and the premium will measure it's
advance above par at favorable periods. The Ger.
tificates SHOULD bear the rate and be sold on
the same terms the bonds. 1t IL important that
the authority granted should include the power
10 refund from the passage of the net at the pres
snt session, and 10 prepay the excess OF interest
he bond TO be refunded prior TO it, maturity. The
present Is believed TO be an exceptionally favorable
lime for such Tefunding.
A NoTIoS-Landlady Ito gasman-
. What? ali this for one quarters gasf
Neverp Gasman-" It's the same cry
Doa,t YOU know that