The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-12-30
ESTABLISHED AUGUST "a. 1852.
INTEREsr ON y. s. RoNps.
Authority for Anticipating its Payment
-Resuits of the Reduction OF the Inter-
est Rate.

| e8S AAtgs
wAsuISorox, December 2o.-1nvesters
| in q. S. Bonds have come to think it rath'
er favor when the Secretary OF the Treas
ury anticipates the payment Of interest by
few days without rebate. It is scarcely
known that by authority Of Congress, con-
ferred as far back ss 1854, the Secretary OF
the Treasury Is empowered in his discre'
ton to anticipate the payment OF interest
as much as one year in advance without
rebate. At the time this authority was
conferred U. S. Bonds were not 80 high In
the money markets OF the world as they
are now, and Congress deemed it expedi-
ent to offer every inducement to
tempt investors. OF course no such
necessity now exists at a time when
the United States can, without diff.
Guilty, float bond at par at rate OF in.
terest as low, il not lower, than any coun'
trv in the world, but the authority to
anticipate interest still remains with the
Secretary. The United States Govern
ment is now in position that It can OBJ
tain an unlimited amount OF money on Its
own terms. Some doubts are expressed
in financial circles as TO whether the new
three per cent funding bonds can be
placed at par, but expert tinanciers have
no doubt whatever on the subject, II the
bonds are made to run for sufficiently
long period. British consols, which
are supposed 10 run indefinitely,
and which bear three per cent.
interest, were 90 at the latest quota.
-. IA - TT 6 khraa. moi rant m Fun
not less than ftty years may be certainly
anticipated to command par. Evidences
have, however, accumulated here within
the last few weeks OF widespread oppo-
sition in our domestic money markets to
the placing OF Government bond at less
than four per cent, as 1t is seen very plain
ly that permanent reduction OF the rate
OF interest on Government securities must
inevitably tend to reduce the rates Of in.
terest on money and commercial
transactions throughout the whole
country. The savings bank interest
throughout the country is evincing per.
haps the most concern in this subject.
The savings banks generally pay an
average interest TO their depositors of four
per cent. Next to real estate investments,
the bulk OF their deposits Rre held In U.
S. securities, and II they have to take three
per cent on these, Of which there is little
doubt, then depositors must be content
with the same rate, or the savings banks
must seek new channels into which to put
their immense accumulations, and in this
event probably run risks which it wonld
be better TO avoid. In the event Of the
passage OF the new bill authorizing the
issue Of three.per cents, it is understood
that the Secretary Of the Treasury will
stipulate that there shall be no authority
for the quarterly payment OF interest.
There are now about 81 400, 900, 600 OF
Five, Four.and.a.half and Four.per-
cents Of what are called the funding loan,
on which the interest is paid quarterly.
This entails an immense additional labor
and expense on the Treasury Department,
in fact, Just double as much as when the
interest was paid semi.annually, and it has
not been ascertained that 1t is any benefit
or convenience OF any consequence either
to the public at large or the holders OF
bonds.