Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1879-04-10
NO MORE
The Famous Six Per Cent. Loan Finally
Called in---Extensive Sale Of
-Four Per Cents.

A correspondent writing from
Washington under date of April 9th
says
The officials of the treasury are
elated tonight wei the enormous
subscriptions paid this afternoon to
the new four per cent. bonds, and the
extinction of the '%fve-twenty" six
per cents By the redemption of the
last outstanding remnant Of this ia
nous government loan. The news
was not known in time for considera-
ton at the cabinet session, or it might
have been the occasion Of consider
able rejoicing and congratulation at
that distinguished gathering of gov
eminent officials. In fact it was not
until quite late in the afternoon that
even Secretary Sherman and his chief
assistants at the treasury building
were aware Of the extent of the days
business in subscriptions but they
soon communicated the good news TO
their friends, and it needs only an IL
Elimination to give expression to the
general delight and pride felt at this
signal instance of the success of re-
funding the national debt.
Secretary Sherman was asked WHY
there had been such a sudden, large
subscription in one day, the amount
reported at the treasury up to the
close Of business beingin the neighbor-
hood of S59, 200, 900. THE chief
reason, he answered, was a scramble
among the New York banks to get all
that was left of the four per cents
e~xchangeable for the remaining FIVE
twenties. There were about S58.OOO.-
900 OF the five-twenties running up
into and inclusive of all of the years
1867 and 1868, which were as vet
uncalled for redemption. AS soon as
the banks saw there was to be no
more trouble in the money market
from the April statements, they made
a rush to secure the bonds and the
commissions, and the subscriptions
poured in SO fast we had to call every
unredeemed tive-twenty. The sub
scriptlons began to outrun the total of
these u%nredeemed bonds, so we had to
telegraph right and left all over the
country, this afternoon, to stop the
subscriptions. The bulk of them came
from the New York banks, the Bank
of Commerce being one of the heaviest
applicants"
The secretary was asked, Were
not some of the fve-twenties out
standing unredeemed beyond this
Not many" he said. "The inter
est ceases after ninety days from the
date of the call. Heretofore some
bonds have continued to drop in after
the ninety days, because the holders
were ignorant that their bonds were
called for redemption. But with to-
days business word will go to every
nook and corner of the country that
every hye-twenty outstanding is now
demanded for redemption, and this
will bring them all into the treasury.
1t will be photographed everywhere to
the press in the morning that, in fact.
there are no more fye-twenties."
WHY did you not allow the sub.
scrlption to run along in excess of the
S58,OOO ,OO0?" was the next question.
We were not prepared to take any
more. We had not offered any more
four per cents than there were un-
called and unredeemed six per cent.
five-twenties."
Mr.. Sherman went on to explain
that the six per cent. bonds now out
standing were chiefly the long bonds
OF 1881, issued at the beginning of the
rebellion and payable in not less than
twenty years, and that they could not
consequently, be refunded until the
termination of that period. These
amount to about $2S0,0O0.00O 1--WE
shall next enter upon the ten-forty
five per cents, said Mr.. Sherman.
which are now payable. They amount
to about 5000, 0O0,0 900"
And that will leave how many five
per cents outstanding ?"
The $5OO,0O0,000 funded o. new
fves.' But we shall not he
able to reach them for some years.
After we redeem the ten-forties we
can do nothing until we enter upon
the r%efundipg or redemption of the
long skies Of 1881
Mr.. Secretary, the cable brings
word, on the authority of the London
Times, that a demand is springing up
for our four per cents. In London.
Have you felt anything Of this de-
mand in the subscriptions to-day?"
could not say that | have. But
We are always in steady receipt of
foreign subscriptions, and the sypdi-
cate are taking them"
Mr.. Sherman said this as if he were
better pleased at a home than a for
eign subscription to the bonds. The
above interview also left upon the lis.
tener the impression that in future
negotiations the secretary miaht al
tempt to get even bolton shan par for
his popular four per cents.