Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-04-05
ReflndlnE the Public Debt.


scripttons to the four per cent. loan amounted
to s6,5O2, $50 for the day Shortly after that
hour the New York bank of commerce sub
Sclbed 100000 COO md the First National bank
OF New York S19,GO0,000. This amount was suf-
tcient to wipe out the whole of the $50 loan
A call was issued and got out about ten O'Clock
last night for the balance of the ) 2os Of 1861
The call was for about $40 900 600 but owing to
the exchange In some instances OF 500 bonds
1Or !cur per cents Instead OF the direct purchase
or the latter 1t is impossible at this time to give
the exact amount OF the call When the four
per cent. subscriptions had amounted to the
outstanding 5-2Os of 1867 and 1865, Secretary
Sherman issued the following circular.
HSubscriptions to the per cent. consols hav
Ing Deen received to the full amount OF the $50
6 per cent. bonds outst andng, the circular OF
this department OF the date of January I. 1879
inviting such subscriptions, is recinded
Ihe $40 refundtng certificates will be sold, as
neretofOre. under the circulars OF the dates OF
March IL and 26,
The per cent. consuls will hereafter be sold
for the redemption of TO- 40 bonds OF the act Of
March 3, 1864, upon the terms to be hereafter
Tie Secretary had the contents OF this ctrcu-
lar telegraphed to New York. Before it mad
become known that subscriptions to the four
per cents had been stopped, additional subScrip-
tons to the amount of $50, 600, 600 had been
offered. day it had not become SO generally
known that no more subscriptions would be re-
Tefunding OF the 500 bonds into four per cents
has been going on since Secretary Boutwell, was
IN the Treasury. There was not until Secretary
sherman assumed control OF the finances any
rapid progress made in this direction. After
January first last there was decided increase
In the demand for four per cents. The filling OF
this demand enabled the Treasury department
10 rapidly call in the 5-2os. During the month
of January there was calls TO the amount
Of s150,000,0G0 In February the calls
We're for sloo,ooo,ooo. In March the bonds
checked the demand for them somewhat. but
the department called in $50 600 900 5-2o'5 dur
ing that month. In addition to the subScrip-
ttons Of Yesterday the department had pre-
Viously made call for $4,000 900 during the
present month. Yesterdays bond cali COM
pleted the refuDdng of the 1S61's into four per
cents; The conversion OF the 1858 was COM
pleted in November last To-day, a call for
s97 ,436 G60, the total amount Of the 1865, was
made; thus refundlDg that loan into four Der
cents. at one transaction. OF the 1865,
SI64'2; 100 was registered, and S2o9 800 cou-
pom: The operations in the four per cents and
5-20's during the past six months, with TO- days
transactions, effect saving to the government
in interest of over seven millions annually, the
HVe-tWenteS. a six per cent. bond, being con-
verted In bond bearing only four per cent.
The bonds, the conversion Of which was finally
erected o-day, were authorized by the act OF
March so. 1865, and issued in 1865, 1867, and
1865. They drew six per cent. interest and were
Tedeemabe in five or twenty years after date of
issue. OF the consolS OF 1861, there were issued
ss22, ,e9s $50; Of lsG''s, $3796ls,o5O, and Of the
1sCs's, s42, ,539, 1850.
The only bonds now subject to call are the
ten-forties, issued In 1864 They draw only five
per cent. interest. The amount OF them OUT
standing is sl94, ,5Gs,s0o. The length OF the loan
is Ten or forty years. In 1870 the issue OF re-
funding bonds, bearing 4, AZ and per cent in
te1est. was authorized. Under this act there
have been issued $50S. 40,350 five per cents:
$22o, 100000 ~ S. and about 1922 100000 five per
cents.
In 1881 the six per cents. OF 1881" will be re-
Getmable. They amount to $4,000 .OO0 The
i've per cent. funded loan Is also redeemable in
that year. At present the ten-fortieS are the
cnly bonds redeemable.
The Secretary of the Treasury is In no hurry
to pay OF the 10-4Os, as 1t will be two years be-
amount they represent Is comparatively small
II the four per cent. certificates are readily
taken he will pay off by their sale the ten forty
D9Ids. but II not he will sell the four per cents
so as TO cover the interest maturing during the
call.
If Secretary Sherman should sell four per
cents to refund the 10-40S, under existing law,
the cost of the transaction would make quite a
hole In the saving TO be effected thereby A
the law now stands settlements for four per
cents are made every ninety days. The inter
est continues On the bonds until the ninety
days lis up. When the 5-2O's were being re-
FUNDED, the two per cent. Interest difference be-
tween them and the As prevented the loss on the
niety days settlement plan being very i'm
poItant figure In the conversion. In refunding
the ten-forties, the difference In the intefes5
would DE only one per cent. There would thu
De quite an 1nroad into the saving effected
The Secretary has recommended that settle.
ments be made In thirty instead Of ninety DAYS
The element In Congress that is favorable to
such limitation ore afraid to make an advance.
would oppose 1t, and the financial legislation
would be opened. The above are understood to
ne TIE reasons why the Secretary IS in no hurry
10 refund the ten-forties by four per cents