Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-04-12
The Sax Per Cent. Bond Call.

HOLDERS CONSERVING TO LET THEIR BONDS con-
TINUR AT 81 FER CENT. ISTEREsT-THg sAMS
COURSE TO BE PURSUED WITH THE FIvKS.
Several national banks holders Of the six per
cent bonds called by Secretary Window yester-
day afternoon, have Informed him to-day that
they Will not present their bonds for redemp-
tion but will allow them to continue accepting
the rate OF 81 per cent interest offered them.
1t will cost but very little to issue registered
bonds in place OF the SKIES to those VINO elect
to continue at 81 per cent. The registered
bonds viii be printed from the same plate
only change In the bond win be the stamping on
the back the condition under which 1t is issued.
Tne bureau OF engraving and printing has been
oTdered to prepare bonds In conformity With
plan OF the department. II the exchange of 81
per cent registered certificates for the called
SKIES works sattsfactorily-an there Is every
Indication that it Will-the Treasury depart
ment will deal with the maturing fVes In the
same way. Thus, If all the holders Of called
SKIES choose to retain their bonds at SH per
cent interest the Secretary OF the Treasury VIII
thus fortified in case the holders Of fves should
refuse the option offered them. But everything
@ practical points to their acceptance OF the
can go On calling the fives By this means
TEE WHOLE OF TEE MATURING DEBT WOULD BE
PRACTICALLY REFUNDED
into 81 per cents without the passage OF a re.
Iunding bili, and Il successful It would be much
more economical for the government than the
Eiaclng OF new bond, Which would carry with
IL the expense OF new plates ard the commits
sion paid for the placing OF new loan. An
other point In favor OF the Treasury's schem3
Is the fact that the reduction OF the rate of In
tefest does not carry with 1t any specified time
aor Hnlcn tne rate OF 5 per cent will be paid
as the revenues OF the Treasury permit, the Sec
retary can pay of at will any Of the bonds. In
ne case OF a new loan, certain time
that 1t should run would have to be
specified in Issuing the bonds. Be-
secretary Windom received assurances from
tae largest holders OF the maturing bonds that
they were perfectly willing to retain them at
the rs,1v.s,, Nv r- cent. These assurances had
great weight in shaping the policy 70 be ppr-
sued. The prediction Is freely .., .oan' hiht DE-
fore Congress meets In December the 500, ,O0O,-
lion from the full amount, VIII have been
practically refunded by the means Indicated.
and that there Will be 10 absolute necessity for
the passage OF refundiDg bill. The rate Of
interest-3E per cent-tixed by Secretary Win
dom Is the same that the republicans in Con-
gress favored when the vetoed refundIng bill
was under consideration.
TIE EFFECT OF THE CIRCULAR
Issued yesterday Afternoon on the money mar
ket was rot noticeable to-day. AS regards
the sale OF s04 0010 600 Of IS and authorized by
law. 1t Is not thought that they Will be put on
the market unless it should be found necessary
10 realize on them IN carrying On the policy
determlned on In dealing with the f1ves and
SKIES. 1t is believed at the Treasury that the
surplus revenues Will be sufficient to pay Off all
The holders OF the called skies who may refuse
the terms offered.
The Treasury department was buslly en-.
gaged Today In Senutng out the circulars and
blank forms In regard to the six per cent
honds ana their conversion into 81 per cent.
certificates.