Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-16
OUR WASHINGTON LETTER.
Secretary Windom's Financial Poll.
cy-DOubtful Legality of His ctIOn
The First Official Junket-Of In
terest TO the Leaf Tobacco Dealers.


financial policy has been forecast by the cir
cular which he has just issued. By that cir
cular he calls in all the outstanding per
cent. bonds, which amount to about $196 00O. 900.
He does not offer to sell either or AZ per
cent. bonds in order to procure the money to
redeem the skies called in. He has not the
money available to pay that $196, ,e0O0Oe. He
does not expect to be called on to pay it. In
calling in the sixes he says that the holders
thereof may, if they desire, convert them into
registered bonds bearing 316 per cent. interest.
That rate is very good now eSpe-
cially for government securities. AS the
holders of the skies will naturally prefer
to have 3l3 per cent. interest than to give up
drawing any interest at all the expectation
that the actual amount of bonds presented for
redemption will be very small is very reason
able, and there is nothing to indicate that it
will not be realized. 1t can be taken for granted
that the great bulk of called Si96, 600 of
skies win be continued at az per cent. inter
est. But the skies are comparatively small
consideration in the 500, 600, 900 of bonds that
now mature. The balance of that big amount
are five per cents. The question of how to
deal with the fives is to be met in the same way
that the skies are disposed of; that is. the
holders will be allowed to keep their bonds at a
lower rate of interest 316 per cent.
and the government not be called upon
to redeem them. The fives will not be all called
in one batch. They will be called as the sue
cess of the policy develops itself. In order to
fortify himself and have the Treasury ready for
any demand that may be made upon it, there
May be realization of funds by the govern
ment in selling Sl04 00O,C00 of As or AZ per
cent. bonds yet unissued under the refunding
bill passed in 1875. Thus Mr.. Window smiles
and says: Now you see how easy it is. The
whole thing will be accomplished without any
trouble at all you know; it is just as easy" 1t
all looks very easy, and will probably work
desire. But the result will, when sifted
down, be simply that Mr.. Window is
refunding the debt at rate of 315
per cent. when no act providing for refunding
the fives and SKIES has become law. The
question arises, why have we had all this fuss
about 9 refunding bill, il Mr.. Window can go
right ahead with refunding without any legis-
lation /? A good many lawyers incline to the
opinion that he is acting contrary to the law,
and something about that phase Of the ques
tion will be said when Congress meets next
December. Attorney General MacVeagh, how
ever, decided that Mr. Window has legal au-
thority for what he is doing. Among officers
OF the Treasury Department, men who know
more about financial legislation than lawy ers
anywhere, the opinion is that while there
is nothing on the statute books that authorizes
Mr.. WINDOWS policy, there is nothing there
that prohibits it. In other words, the position
of Mr.. Window is a little unstable, but between
the existence of warranting legislation and the
non existence of prohibtory legislation the
honors are about even. The only difference
between Mr. Windoms continuing the matur-
ing millions at 311 per cent and what his action
would be under refunding act, is that the
holders of the fives and skies, after maturity
have no certainty as to how long their rate of
interest may continue. If a new bond had been
issued the time for it to run would be specified
and it could not be called in by the government
until certain specified time. But the contin-
ued bonds can be redeemed at any time the
government may feel like doing so if it has the
money in which to redeem them. They can
not be paid until refunding bill is passed.
Mr.. Window hopes that his plan will work so
well that there will be no necessity for the pas
sage of such bill He hopes that Congress
| will just let the thing go with the continued
bonds, only specifying how long the continued
| bonds may run. But Congress will do no such
! thing. The legality of the course that has
been mapped out by Mr.. Window and the Cab
met will be questioned in Congress-; and be-
| sides, there is some legislation other than the
mere taking care of the maturing obligations
| which is necessary to amend and aid to that
| which has guided the policy of the govern
ment in refunding operations There are
abuses, too, that need rectifying, and another
attempt at checking the insolenee and
dangerous power of the national banks will be
made Mr.. Windom's scheme is simple enough
to look at and thoroughly plausible but it Will
doubtless cause good deal of confusion when
Congress again tackles the refunding question.
THE FIRST OFFICIAL JUNKET
No matter how much man may rail out
about official junketing when he has no
chance at the pleasures thereof he
no sooner gets the opportunity than he sees
with different eyes and takes little iunketing
himself Doubtless while private citizens the
members of President Garheld's Cabinet had
no countenance for the official Inspections
by means of which government officials take
pleasurs trips at the governments expense
HhRV we IL To dn1rhf
quito sarcastic in their remarks about
the peoples money being spent in such dis
graceful manner. But now they are members
of the Cabinet, one of the perquisites of which
Office is the privilege of inspecting" around
with all expenses paid by Uncle Sam they
cannot resist the dead-head attractions. The
first of President Garfield's advisers to go a
junketing is Secretary Lincoln. He has gone
West to inspect the military prison at Fort
Leavenworth. Secretary Hunt has arranged
summers inspecting tour along the coast to
Newport, the fashionable watering place. The
others are yet to be heard from, but will come
out strong on inspecting tours"
OF INTEREST TO LEAF TOBACCO DEALERS.
Some time ago the Commissioner of Internal
Revenue addressed a letter to Collector Patter-
son at Memphis on the subject of leaf dealers
entering weights upon United States record
books The same question having come up
from so many different points, the text of the
Patterson letter, which is the ruling of the
Commissioner, is published for the information
and guidance of all concerned. 1t is as fol-
lows:
L am in receipt of your letter of the 21st in
stant, in which you call my attention to the
fact that Form No. n, revised, has, in addition
to the columns for gross and net weights
column also headed actual weight You ask
to be informed if leaf dealer must reweiph
tobacco at the time OF it's receipt whether it
comes to him loose by the wagon load, or put
up in proper packages with the weight marked
upon it, and make entry of the actual weight
in his book, or IL he may not be allowed to en-
ter the gross and net weight only when he re-
ceives tobacco in packages, on which are
marked the gross and net weights. You
further inquire if he must again reweigh the
tobacco when he makes a sale or shipment,
and how his entries are then to be made. Also,
when he shall commence to keep books In
reply, you are informed: First, When leaf
dealer purchases and receives loose tobacco by
the wagon load. he must enter the actual
weight Of the leaf at the time of purchase and
receipt. Second, When leaf dealer buys to-
bacco which has been put up at a packing
house or warehouse, weighed and marked with
the gross, net and tare weight, and it is in
voiced to him and paid for according
marked upon the package, he may enter only
the gross and net weight so marked,
not being required to reweigh simply for
the purpose of making that entry on his book.
Third When leaf dealer sells leaf tobacco
to another dealer or to person known to be
purchasing leaf tobacco for export, and makes
out his invoice or bill of sale, giving the num-
ber and kind of packages and gross
and net weights marked thereon, he will
make corresponding entries on his leaf book
Fourth, Whenever leaf dealer makes sale
of leaf tobacco to manufacturer of tobacco
snuff cigars, knowing that the marks
on the packages do not accurately and
correctly represent the net weight
of the tobacco contained therein he must
reweigh before delivery, and in addi
ton to the entry in his book of gross and net
weight, as marked upon the packages, he
must also enter the actual weight of the leaf
tobacco contained therein at the time of sale
and delivery. Fifth, The books of leaf
dealer must. in all sales made to manufac-
turers, show the actual u eight when the actual
weight differs from the net weight marked
on the packages, for the reason that all the
books and forms used by manufacturers call for
actual weight, and they are required to report
that weight in rendering their accounts to
Collectors, and through them to this Office 1t
has not been the practice of this office to re
quire leaf dealers to furnish themselves with
new books to correspond with Form No r. re-
vised until it is either necessary or convenient
for them to do so. The government books, Form
r. furnished 20 leaf dealers on the 1st day of
January last, should be kept in accordance
with the instructions herein contained
Potomac
Special Weather Bulletin.
WASHINGTON AnriI TX IN Tha