New-York tribune., 1881-03-31
TREASURY PERPLEXITIES.


OF INTEREST ON coUroN BONDS REDEEMABLH
THIS YEAR-A LARGE PART OF THE BONDS HELD
IN FOREIGN CoUNTRIEs-sUGGRsTIoNs FOR
AVOIDING THE DIFFIcULTY-THE REDEMPTION
OF CALLED BONDS ANTICIPATED BY TUE TREAS
URY.
Prominent bankers of this city, as well as
officers of the Treasury Department take
great interest in plans for the payment or
future interest on coupon bonds redeemable
during the present year. For the refunding
of bonds soon redeemable Congress made no
proper provision. A large part of the coupon
bonds is held abroad, and the last
coupon Is off Of the sixes and on
the fives will be payable May l.
Conflicting opinions were expressed by lead
ing bankers yesterday as to the probable
effect of the maturing of this last coupon on
the return of these bonds to this country.
Secretary Window gave notice yesterday that
the Government will anticipate the redemp-
tion of called bonds embraced in the latest
call. The Secretary will leave Washington
to-day for visit to New-York.
FUTURE INTEREST ON COUPON BONDS.
PLANS FOR ITS PAYMENT-wHERE TEE BONDS
ARE HEID-yIBws OF PROMINENT BANKERS.
D~~@SS--S
Of the Treasury by the failure of Congress TO pass
satisfactory Funding bil one of the most interest
ing is that of the future payment Of interest on the
coupon skies and fves redeemable in the present
year. The question is said to be causing the Treas
ury Department considerable perplexity. and al
though several plans have been suggested not one Is
wholly free from serious objection. What partieu-
lary adds to the difficulty is the fact that large
part of the redeemable bonds is held abroad.
According to the public debt statement of Febru-
ary the amount of the coupon skies outstanding az
the end of the month was $45. .391 900 and that Of
the coupon lives at the time was $l46 1O1 900.
The outstanding coupon SKIES are OF three classes
the Oregon war debt bonds issued under the act Of
March 2, 1861. which are payable July 1, 1881.
$71O55O; the loan of July and August, 1861,
1893, ,7s7, ,O50. and the loan of 1868 $1O,S93, 400.
The last two issues became redeemable at the
option of the Government after Juhe 80. The
last coupon on these issues was payable January 1.
The IS of 1881 were issued under the Funding acts
of July IA, 1870. and January 20, 1871, and they
become redeemable at the option of the Government
after May l. The outstanding coupon bonds still
carry one coupon, which will be payable at the same
date. The recent purchases of bonds by the
Treasury Department and tho redemption OF
coupon ives under the 1O1st call. which
was made February 21, have rednced the amount OF
outstanding coupon skies and ves very little below
the amount given in the latest debt statement. VI
the So 337, 800 coupon fiyes embraced in the last
call there has been redeemed at the Sub-Treasury
in this city only $4S2, 200 since the February debt
statement was made up. aud of un-
called coupons fives 50, 667, 100 has been bought
within the same period. The Assistant Treasurer
has also bought in the present month 9492 $50 OF
the coupon sixes. On the basis of these changes
since the February debt statement th, outstanding
coupon skies now amount to $43,44I7Fo and the
coupon tives to $141, ,952, 600.
A record of the United States bonds held abroad
was formerly kept in the Coupon Department Of the
Sub Treasury, but it was given up
several years ago. No exact stste-
ment of the proportion of skies and fves held In
foreign countries could be obtained therefore yes
terday hut it the opinion of officers of the Sub
Treasury that q much larger proportion Of these
bonds was held abroad thar of any other class OF
Government securities. BY the bankers who do
large foreign business, it was said to
be almost impossible to fix, even apprOxi-
mately, the amount of these bonds held
outside of this country, particularly az tue imDcrta
ton of tives had been very large in the last two
months A member of the firm of L. Won Hoffman 81
Co.. which has been prominent by its large dealings
in Government bonds for foreign account, estimated
Yesterday that S25 900 900 of the skies aud between
$40 600 900 and $50 600 900 of the iyes were held
in Europe Ii was insisted however, that the estimate
was purely conjecural, for he said that the Ount
had been largely reduced since February by ship
ments of the fives to this country. Within the lasb
two months his firm alone had received between
S1O,OOOOO0 and $15,000,O00 from Europe, and
MANY other houses nad received also considerable
amounts. 1t was said to be impossible even
TO guess what the aggregate ImpOrtations
had been recently. but that they had
been very large was beyond dispute. To
an inquiry as to what would be the probable effects
on the shipments of tie maturing of the last coupon
on the ives it was replied that it would be to in
crease them largely. 1t was, in fact, predicted that
the bulk of the hvcs held in Europe would be re-
turned to this country before Mays but the
opinion was expressed at the same time thas
the return would be so gradual. and the
amount of the bonds was comparatively so small
that the movement would have no effect at all on
The estimatei made by L. Won Hoffman & Co. was
corroborated by James Seligman. of J. u w. Selig:
man & Co., who thought the amount OF sl4Gs and
fyes held in Europe was about $75, 100000:
He was confident that It would tail
considerably short of $1OO,OOO0OO. At the Office
of Speyer & Co., another house prominent by lts
large foreign business. no estimate would be ven
tnred because IL said that all prevo Gus cOnJec-
lures had fallen wide of the mark, and actual results
had shown the estimates to be wrong ana misleading
similar reluctance risk guess was shown at the
office of Brown Brothers 6 Co. Both firms agreed.
however, IN the opinion that the older issues OF
Waited States bonds were held in Europe by
wealthy persons and institutions that won Id prefer
70 let the interest accumulate on the bonds rather
than to replace them. before they were Obliged to
do So by bonds bearing lower rate OF
interest. Among bankers generally the belief
was expressed that the holders of skies
and 6yes would retain their bonds as
inns as noss,bls because it appeared probable that
thew would secure the high rate of interest fol
abont a year longer. Unless means for redeemin2
pIa
thouQht probable that it would be year before Q
Fndng bill could be passed and put into practical
oDeration Some OF the officers OF the Sub treasury
op the contrary, were of the opinion that the de-
on W =. ooiI on "a of Conprass iudt-