The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-05-19
On the 18th inst, the Secretary issued thu
following order: ----.-,.-
TREASURY DEPARTMENT,
WASHINGTON, d. c., May II. 1881.

| WASHINGTON, D. c., May H. 1881. I
By virtue of the authority conferred by law upon
the secretary Of the Treasury, notice is hereby Civ
en- that the principal and accrued interest of the
five per cent coupon bonds issued under the OF
July IA, 1870, and January 10, 1871, and now out
standing and uncaled, will be paid at the Treasury
of the United States in the City Of Washington, D.
c. on the 18th day of August, 1881 and that the in
terest said bonds will cease on that day, and
none of these bonds Will hereafter be exchanged
for registered bonds bearing 1ntering per cent
terest; provided, however, that in case any of the
holders OF the said coupon bonds shall request to
have their bonds continued during the pleasure of
the Government, with interest at the rate Of per
cent. per annum, in lieu Of their payment at the
date above specified such request will be granted If
the bonds received by the Secretary of the Treas
Qry for that purpose on or before the 1st day Of
| July, 1881.
| The Secretary also .nounces that until the date
MENTIONED July l. 1881, he will receive for eontin-
ance in like manner, subject to like conditions any
OF the uncaled five per cent registered bonds of the
Acts of July A. 1870 and Jan. 90 1871 to an amount
not exceed ing $3.50 OO0 remainder of the loan
being reserved with view of its payment from the
surplus revenues. Foreign holders of any of the
five per cent bonds above described may have them
continued as above provided upon the receipt Of the
bonds at the Government agency established for
that purpose at the banking house of Messrs Nor
| ton, Rose Co., Bartholomew lane, London, En-
| gland.
The request above mentioned should be in form
substantially herewith prescribed; and upon the
surrender of the bonds with such request, the Sec
rotary of the Treasury will return to the owners
registered bonds of the same loan with the fact
such bonds are continued during the pleasure of
the Government with interest at the of 3% per
cent per annum stamped upon them in accordance
with this notice. Upon the receipt of bonds to be
continued as above provided, the interest thereon
to August r. 1885, will be prepaid at the rate the
bonds now bear.
signed to The Secretary of the Treasury for con-
tinuance,' under the provisions of this circular
They will be accepted for that purpose in the order
of their receipt at the Department.
The Department will pay no expense of transpor-
tatlon on bonds received under the provisions of
prepaid registered mail unless the owners other
wise direct. All bonds, whether intended for pay
ment or to be continued should be forwared to the
"Secretary of the Treasury, Loan Division with
letter of transmission, setting forth the purpose for
which they transmitted; and If to be continued
they must also be accompanied by the request
above referred to, and the package containing the
bonds should be marked "bonds for continuance
WILLIAM WINDOW, Secretary.
Accompanying the above is the form of request for
continuance of bonds.
The amount of the coupon bonds above re-
terred to, which are now outstanding and
covered by the calls, is about $3.50, 100000.
The total amount of the registered 5 per cent
bonds is about 1926 900. The privilege of
extending registered 5 per cents at the reduced
rate of interest beng limited to $3.50, 100000,
there will remain at least $4,000, 900 of them
which the Secretary of the Treasury intends
to pay absolutely out Of the surplus revenues
1t is believed at the Department that much
more than $250,000,000 of these registered
bonds will be offered for continuance, but all
applications received after the maximum of
$250000, 900 shall have been presented will not
be entertained.
Referring to this order the Washington
correspondent of the New York Tribune ofthe
18th says:
The bond call issued by Secretary Window
to-day is, in several respects remarkable. 1t
shows that the Treasury is strong and that the
Secretary is confident of the ultimate entire
success Of his refunding policy. Not only does
the Secretary call in all of the $12S 100000
coupon five per cents for redemption or con-
tinuance at 81 per cent (as has been done so
successfully in the case of the six per cents),
but he also announces that until July 1st he
Will, in addition, receive for continuance in
like manner 250,000,000 of the outstanding
registered IS, the remaining $77 900 900 being
reserved for redemption from the surplus
revenue
In short, as was suggested this evening by
prominent Treasury official, "it is call for
all of the $456,000,000 five per cents" The
same official remarked: 'These bonds will be
rushed in for continuance at 81 per cent, so
as to avoid redemption Especially is this
likely to be SO in regard to the $250,000,000
registered fives, because about ST. 000,0 900 are
to be redeemed outright, and holders of the
registered class will make haste to get in
first, in order to be sure of securing transfer
into 3! per cents"
A novel feature of this call is in the fact that
the Secretary offers to prepay three months
interest on such of these bonds as shall be sent
in for continuance. The practice of anticipa-
ing interest upon Government bonds is au-
thorized by the Act of March II, 1864, which
now constitutes section 1899 of the Revised
Statutes as follows: "The Secretary of the
Treasury may anticipate the payment Of in
terest on the public debt by a period not ex
ceeding one year from time to time. either
with or without a rebate of interest apon the
coupons as to him may seem expedient."
This is the first instance in which interest has
ever been anticipated to the extent of ninety
days.