, 1880-12-05
the lead Of Judge Kelly, who op.
lAses any refundIng. Bonds th2t 1aIl

the .leaQ OF JuQEe heA3s nt1~
poses any refundlng. Bonds that 1a'1
due during tho coming year, with the e@cep-
tion Of the first lot, are not aosolut:ts "a"
BILE They are only redeeinable, judge heIs
insists, and he las a considerable 1ollo".ns'
among them Judge Buckner, Chairman u lne
Banking and Currency Committee; snat tneso
bonds can all be paid off gradually from sur
plus revenues, and more economlcally H!an
by refunt:ing. It is claimed too, by Jndgo
Kelly, that the advocates OF retuna1ng are III
favor of creating a permanent National oeot'
which lie and his followers oppose. IL IS
very probable, however, that majority o1
tile Vays and Means Committee will favor
refunding In per cent bonds-
WOOD.
The Hon, Fernando Wood, Chairman OF
thc Committee Of Ways and Means, has been
i'll Washington for some time, aud has con-
ferred with Secretary Sherman on matters
relating to the revenue and to refunding. To
day.Mr. Wood said: 81 l thi3k that Secretary
Sherman will recommend the issue Of two
classes Of securities in which TO refund the
5 and per cent bonds that become redeem
able next year: First, bonds rcdeenlable say
in ten and payable in thirty years; aid,
second, Treasury notes payable IN one,
two, and three years, etc, uD to
Ten years. 1t Is my opinion that he
will recommend that the Secretary of tie
Treasury be given discretionary power to
effect this loan on the best terms possible,
the rate of interest not to exceed 31 per
cent"
+. "Do you think that Congress would be
likely to adopt such a recommendation ?''
asked the correspondent
NO" replied Mr.. Wood, "my Impression
is that the House, at least, will not agree to
any loan bearing higher rate than 5 per
cent; and l believe, moreover, that Secretary
Sherman himself would not offer very strell-
nous objections to 5 per cent loan.
Of course, his only objection to it
would arise from a fear that it could not be
placed ut par. have no fears myself on that
score, Before left New York acquainted
myself with the views Of leading dealers in
Government securities, including some lneln-
bers Of the syndicate which negotiated the
per cent bonds. think shall be able to
show that they share my belief that
THERE WOULD he NO DIFFICULTY
in selling either the 3 per cent bonds OF
Treasury notes at par. I should say that
one-haif the bonds to be refunded next
year could be provided for by all
issue Of Treasury notes. payable at the rate
OF $40. .000, 600 4 year for ten years. At the
end Of that period the ~ per cents will be-
come redecnable, and can then be provided
for. Our per cent bonds. which have about
twenty-seyen years to run, are now and will
continue to be the best investment bonds in
the commercial world. They are worth 120
to-day, although they do not yet sell for that
price,
"Will there be a renewal Of the discussion
over the silver dollar when the Refunding
bill comes up?''
"We have tried to avoid the necessity of
long debate over that BY simply providing in
the proposed bill that the act of 1870 shall
govern the details OF the new loan. I pre-
su1ne, however, that amendments will be
offered, and that ? discussion may then en-
sue on the point you mention"
Mr.. Wood remarked that he should try to
have the Refunding bill taken up at the very
beginning of the session, and time fixed on
at which general debate should cease. lie
hopes that the bill will pass the House before
the holiday recess. He thinks it important that
whatever measure may be adopted should
] become law as early rs the 1st of February,
because of the three months notice of re-
demption which must be given to the holders
OF ) per cent bonds. Some time will also be
necessary to prepare the plates and print the
new securities. Mr.. Wood does not expect
any tariff Legislation at the coming session.