Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-02-24

position by his representatives
in congress. They pretended
to believe that a bond bearing les!
than 4 per cent, would not be sold, Blu.
these opponents have changed or a
least modified their views, inasmucl
as not a few fnanOiers now express
certainty Of belief as 10 the accom-
plishment Of the Wood scheme. /
is claimed that the success of tn,
scheme would have been unquestlon
able If the option TO redeem had beer
omitted, Gas it gives the reservation O
the right to redeem at the enc
of twenty years. While the
20-40 bond agreed upon obviates the
objection to the early payment of the
debt for capital naturally seeks long
investment. The bill recommended
by the committee is as follows:
Be it enacted, ETC., That all exist
ing provisions of law authorizing the
refunding of the national debt. shall
apply to any bonds of the United
States bearing a higher rate Of inter-
est than fOur-and-one half per centum
per annum, which may hereafter be-
come redeemable Provided, That in
lieu OF the bonds authorized to be is
sued by the act of July IA, 1870, en-
titled An act TO authorize the
refunding of the national debt" and
the acts amendatOry thereto, and the
certificates authorized by the act of
February26 1879, entitled An act to
authorize the certificates of deposit in
aid of the issue of refunding of the
public debt, The, secretary of the treas
ury is hereby authorized to issue bonds
in the amount of not exceeding $780,
100000, which shall bear interest
at the rate of 81 per centum per an
mum, r,deemable at the pleasure
of the United States, after twenty
years, and payable forty years from the
date of issue; and also notes in the
amount of $500, 900, bearing inter
est at the rate Of 81 per centum per
annum, redeemable at the pleasure of
the United States after two years, and
payable in ten years from the date of
issue; but not more than forty million
dollars of said notes shall be redeemed
in any M fiscal year, and the p%articu-
lar notes to be redeemed from time to
time shall be determined by lot under
such rules as the secretary of treasury
shall prescribe. The bonds and notes
shall be in all other respects Of like
character, and subject to the same pro-
visions as the bonds authorized to be
issued by the act of July IA, 1870, en-.
entitled :" An act to authorize the re.
funding of the national debt" and
acts ameDdatory thereto Provided,
That nothing in this act shall be con.
strued as to authorize an increase Of
public debt.
Sec, 2. The secretary ofthe treasury
is hereby authorized in the process of
refunding the national debt, TO ex-
change at not less than par any of the
bonds or notes herein authorized for
any Of the bonds Of the United States
outstanding and uncalled, bearing a
higher rate Of interest than Al per
centum per annum and on the bonds
so redeemed the secretary of the
treasury may allow to the holders the
difference between the interest on
such bonds from the date of exchange
to the time Of their maturity and the
interest for alike period on the bonds
or notes issued, but none of the pro.
visions Of this act shall apply to the
redemption or exchange of any of the
bonds issued to the Pacific railway
companies, and the bonds so received
and exchanged in pursuance of the
provisionsof thisact shall be cancelled
and destroyed.
Sec. B. Authority to issue bond
and notes to the amount necessary t
carry out the provisions Of this act i,
hereby granted.
Sec. 4. The act approved February
26, 1879, authorizing the issue of GER
t~ifcates Of deposit is hereby amended
so as to continue and limit th,
amount Of certificates to be issued {,
fifty millions of dollars to be out
standing at any one time, and iixin,
the rate OF interest to be Above,
thereon at three and one. half pc
centum per annum for ore year, afte
which interest shall cease. and tn
said certificates shall be convertible a
the option of the holders when prC
scented in sums Of fifty dollars, or mu.
tiples thereof, into the coupon or REF
9 istered bonds authorized by this ac
. and whenever any of the said certif
/ Gates shall be converted into bono
= the same shall be cancelled and de
stroyed; but the secretary Of ii
/, treasury may in his discretion issr
new certificates in place of those {
I converted up to the limit of $50,000.O0
s until the aggregateamoun ofthe bono
G authorized by this act, and of the sal
4 certificates combined, then outstan,
: ing, shall equal the amount of bono
hereby authorized. It shall be unlav
e tul Tor any person or persons to for
: combinations by which to procul
. said certificates Of deposit authorize
!, under this act for purposes Of sale
i others, or for acting as agents
others and any person so offendir