Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-12-17

CONDITION OF THE MARKETS HERE
AND ELSEWHERE.
Money 5 to 6 Per Cent-GoVernments
Strong and Higher-Proyisions Ad-
vaneing-Flour and Grain Steady
o., Groceries Firm.
THE THREE PER CENT. LOAN BILL.

The bill introduced by Mr.. Randall,
portions of the bonded debt, is elabor-
ate. 1t proposes coin reserve of thirty
per cent. for the redemption of the
Treasury circulating notes, in addition
to the coin and bullion pledged for the
redemption of gold and silver certificates
and certificates of deposit; any coin in
excess of these revenues to be applied to
the redemption of the three and a half
per cent. extended bonds upon proper
notice to the holders. The second sec
ton Of the bill provides for the issue of
three per cent. registered and coupon
bonds, redeemable at the pleasure of the
Government after five and payable after
twenty years.
The object of the issue of these new
five-twenty bonds is to refund the con-
tinued bonds at the option of the holder.
In case holders of the three-and-a-half
per cents do not present their bonds for
exchange, the Secretary is authorised
to offer for sale to the highest bidders
such an amount of the proposed three
per cent. tive-twenty bonds as may be
necessary to provide funds for the call
and redemption of the continued bonds
in such amounts as the circumstances Of
the Treasury may warrant or make de-
sirable. The bill also provides that
banks desiring to withdraw their circu-
lating notes shall give ninety days no.
tice Of such intention in writing.
Some of the objects of the bill are
laudable, and may be expected to have
given to them the force of law during
the present session. Not a great deal
can be said in favor of the scheme for re-
funding the three-and-a-half per cents,
which the government may redeem at
its option with any surplus that the
Treasury may have. The indications
are that it will be possible for the gov
eminent to redeem and cancel a large
amount of the Observation-Disclosures cents
within the next five years out of its sur
plus revenues. Tosell three per cent. five
twenty bonds and apply the proceeds to
the redemption of the three-and-a-half
per cents, will operate to extend the
debt period considerably as to large
proportion of the extended bonds. 1t
will, We think, prove a wiser policy to
redeem those pledges absolutely out of
any surplus above the lawful reserves.
The operation of refunding involves
considerable expense, and cannot be
justified unless the Government finds
its resources inadequate to a sustained
and systematic reduction of the bonded
debt by redemption and cancellation.
Were the bill to become law with
its present provisions, and were the
government to sell the three per cents
as proposed and apply the proceeds to
the redemption of the extended bonds
it would exchange optional creditors for
creditors with fixed term, and in that
way put it out of its power to reduce
the bonded debt absolutely in so much.
The bill gives the Secretary four
months in which to apply the Treasury
surplus to the redemption of the debt,
after which he may resort to a sale of
the proposed three per cents. If this is
intended to leave the sale optional with
the Secretary, it may not, perhaps,
make much difference. There are some
reasons for believing that pretty nearly
the entire volume of extended bonds
can be redeemed and cancelled within
five years without further legislation
and MISUNDERSTANDING the debt.