Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-04-08
About the 8. BABY BOnds..

The Issue Of the ten-dollar four per cent
refunding certificates began April 1st. There
have been disposed Of to date s61s, OOO On Sat-
urday last $3.50 were called for The amount
that has been issued IN seven days-s67S, OOO-is
not remarkably large. 1t Is daily average
though OF more than the subscriptions to the
our per cent. loan were for long time The
demand for them Will probably increase Sec
Rotary Sherman has said that he would use the
money accruing from their sale in refunding
the ten-forty bonds into four per cents That
8, as the money comes In he would issue calls
for the ten-forties. II this method Is pursued.
the proceeds OF the four per cent. certificates
disposed OF, already put the refunding of the
ten-f0rtie5 well under way
The fear has been expressed that the certih-
Gates viii come into general circulation as
money and initiate the currency inconveniently
II not dangerously This is hardly probable
The certificates will have to BE- paid for when
received, except in the case of depositarles.
These under the present law can keep the GER
ttdcateS and the money ninety days, the same
as with the four per cent. bonds. II the recon-
mendation OF the Secretary of the Treasury is
adopted by Congress the time for settlement
Will be reduced to thirty days. The depart
ment can, however, call on the depositaries for
their return at any time. The Secretary of the
Treasury could thus prevent any Imitation. 1t
Is not thought though that the certificates will
enter into general circulation. The object of
the purchaser in securing them Is of course
their ultimate conversion into per cent. bonds.
Unless the purchaser becomes hard pushed he
would not be very likely to spend them, as he
would greenbacks. At any rate after they
have been out long enough to make the interest
On them an object, the tendency VIII be to
boarding, and not to circulation. There Is
therefore, no reason to fear an inf alton of the
currency on account of the certificates or "baby
bonds" That the subscriptions to the four per |
cents. have been stopped Is known. The Ger |
tfncates would seem an avenue for those who |
want four per cents. They are convertible into !
-FOUR per cents. In sums OF $50 and upwards By |
purchasing the amount In certificates that he |
wants In four per cents. the man desiring the |
latter could get them by little circumlocution |
secretary Sherman day or two ago received |
q telegram from New York bank asking If II |
could purchase $1,000, 900 In certificates and |
convert them Immediately into four per cents.
The Secretary replied In the negative. II the |
bank had gone ahead and purchased the GER |
tiacates and presented them it would have pro- |
cured its four per cents, as the law creating the
certificate directs the conversion. The Treas |
ury department, however, wants It's new form |
OF loan to get among the people as far as pos |
siole, and all obstacles that can be thrown in
the way OF such attempted transactions as that
noted viii be utilized. The immediate CONVEX
sion OF certificates into four per cent. bonds
would be costly transaction for the Treasury.
They cannot, like greenbacks, be reissued when
The printing bills would, therefore,
count up more than desirable.