Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-29

tailed-The Resumption Fund not
Available for the Redemption of
the Skies.
WASHINGTON March 25.-One Of Secretary
WINDOWS strongest arguments against an ex-
ira session was the statement which he pre-
sented to the President showing the resources
of the Treasury, present and prospective, and
how they could be applied in taking care Of
the and per cent. bonds soon to become re-
deemable.
After paying Off the twenty -ave millions of
hves already called for May 21st there viii re
main outstanding about four hundred and
thirty eight millions of these bonds. of which
one hundred and thirty millions will be of the
coupon issue, but not longer bearing coupons
for the payment of interest beyond May list
One OF the problems to be solved before the
list of August dividends fall due is the devising
of some means Of paying the interest on these
bonds. The obvious plan Of inviting holders
Of the coupons to exchange them for regis
tered bonds, on which the interest payments
by means of checks could continue indefinite
ly, is inapplicable to this loan, as under the
peculiar provisions of the act of authorization
the new registered bonds issued in lieu of such
coupon bonds would bear the very highest
numbers and latest dates and would thus be
the first bonds TO be redeemed whenever re-
demption began. Moreover, the holders of the
coupon bonds bearing low numbers are un-
doubtedly perfectly aware that these num-
Ders constitute an important element in cal
culating the probable length of time
that they can continue to receive interest at 5
per cent, and they are not likely to respond
with alacrity TO proposal for voluntary
s1arn
then but to give out new bonds having coupons
attached for the collection of, say, couple of
years interest, taking up at the same time the
clipped bonds. Here again the rights of hold
ers may be invaded. unless great care Is exer-
cised iD giving to each owner new bonds bear
ing the Identical numbers borne by the old
ones.
There can now be but little doubt that
the action of the new Congress as regards the
disputed features of the vetoed bill would be
serious disappointment to many. The banks
have not gained friends by their action during
the past few weeks, and, aside from any feel
ing of unfriendlneSs, many judicious persons
are convinced that the power which the fourth
section of the act of 1874 gives the banks to
regulate the amount of currency which the
country should have, is dangerous element in
our financial system. They point to the recent
sudden contraction effected by the banks that
the existing law might, In some moment of
resentment, be prostituted to the selfish ends
of these institutions, and work ruin to the
business of the country. 1t is,
therefore an9 updSS dEsednEX mPISGcSOle that
not carry with II repeal of the law above
mentioned can be passed. On the other hand,
1t is thought that the compulsory feature
would not find sufficient support from the
new Congress to secure its adoption as part
of q new funding bill. A large number of
members are not favor of selling the bonds of
the government through coercion They say
that SO long as it has not been demonstrated
that three per cent. bond can be depended
upon to attract voluntary purchasers at par,
It is not becoming. even If it is not of doubt
ful honesty, to force the banks to pay par for
them. 1t is evident that Congress- whenever
it acts upon a funding bill. will adhere to a
three per cent note, and doubtless to the
length of time agreed upon at the last session
OF the hundred and ninety five millions of six
per cent. bonds, which become redeemable on
the lst Of July next, forty-two millions are Of
the coupon ISSUE These are entirely devoid
OF coupons 1t is probable that but a small
portion of these can be paid off by the appli-
cation of surplus revenues, as the one hundred
and first call for twenty five millions of fives,
falls due May 21st, aud this liability mortgages
at least one half of the probable surplus up to
the close of the Ascal year. The government
is not obliged to pay off either these or the
I'VE per cent. bonds, and It is quito
possible that the holders of them would
consider it privilege to be allowed to keep
them, but it is obliged to pay tie interest on
them. and the difficulty that is found with the
coupon hves also exists as respects the coupon
skies. However, it is probable that great ma
jority of the holders of skies would be glad to
exchange them for registered certificates,
such an exchange, by giving them higher num-
bers, insuring longer lease of life for their
bonds, as the skies are to be redeemed in the
order Of their issue-that is, beginning at num-
Der one.
The Treasury cannot take care of the skies,
as many argue, by using the resumption re-
serve fund for their redemption. Such use of
this fund.- even if it was Of sufficient amount
and apart from its doubtful legality, would be
most dangerous experiment. not likely to
commend itself to the present admi oistration,
all the members of which have been from the !
outset firm friends of the resumption policy Of
the last two administrations.
PoToMAc.