Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-05-05
WINDOWS PLAN.
100000 of Gold May Be Paid
Out, and The Tax-Payers Relieved of
a Heavy Burden.

lNllauopois sun
The following explanation of the fl
nancial situation is taken from a
special to the nter-Ocean, and is full
of interesting points. Mr.. Window
does not quite grasp the true position,
nor do the bondholders see the end OF
his policy. That important changes
are taking place in the minds of the
leaders is, however, quite evident. The
nationals have only to remain firm
and their principles will yet be accept
cd.
TIE BONDS-THE SIXES.
1t is now regarded as settled
that the holders of per cent bonds
will, with u few exceptions, present
them to be restamped bearing 81 per
cent interest, until such time as con-
gress may provide for their refunding
There are many far sighted public men
who believe the next congress will not
attempt to refund the bonds which
have been stamped to bear - per cent
interest, but will allow them to run
until such time as they canbc redeemed,
enacting Il law by which the secretary
can pay them off as rapidly rs possible.
There is u difference of opinion among
the officers of the treasury as to the
resources at the disposal of the secre-
tary to meet the SIS after the 6's have
been provided for. Mr.. Window is
anxious, if possible, to provide for all
the banks without selling the $lOi, ,OOO,-
000 of 4 per cents in the treasury. In
this connection two things must be
borne in m'nl: The statutes provide
that no department of the government
shall expend in any one fiscal year any
sum in excess of such appropriations.
The secretary of the treasury is also
required by law to purchase per cent
of the entire debt of the United States
each year, to be set apart as a sinking
fund for the future payment of the
debt At the last session of congress,
on motion of Mr.. Bayard, an amend
ment to the sumdry civil bill was
adopted and became a law authorizing
the secretary of the treasury to apply
50 much Of the surplus money in the
treasury as lie may consider proper
each year to the purchase or redemp-
ton of United States bonds. Such
bonds to be Cancelled and form no part
of the sinking fund. On the first of
the current fiscal year there was a
balance due.
TIE SINKING FUND
of $l9,S17,12S. For the current fiscal
year the amount due the sinking fund
is, in round numbers, $40, 100000, maxi
ing IL total of S90,0O0,000 due the sink
ing fund before the 1st of July. Of
this sum. $42,000,000 has been met.
In addition to this $25, 1000 SIS have
been called, and in large part paid. On
the 25th of March Treasurer Hillhouse,
at New York, was authorized to buy
$l0,O00,0O0 of IS and 6's, and on the
Sd inst, $j,000,000 of bonds of the same
denomination, making really $S2,OOO,-
600 already provided for, and leaving
only $S,000,000 of bonds to be bought
on account of the sinking fund before
the end Of the present year. There will
be no arrearages due the sinking fund
for the next fiscal year, and its ordinary
demand for that year will be about
$i2,00O,O0O.
TIE SURPLUS REVENUES
for the next fiscal year it is estimated
by the secretary Of the treasury, will be
in excess of $lO0,OOO,000, leaving, after
the sinking fund is provided for, $780,
100000, which can be used for the re-
dcmption of the debt. This sum can
he used before the 1st of January next.
The surplus revenues during the last
four months of the present fiscal year
are as large as those of the correspond
ing months of the last fiscal year. the
surplus revenues for the year will
exceed the total sum required to be
paid TO the sinking fund $50, 100000
by $l6,SOO,00O. This sum is subject to
the provisions of the Bayard amend
ment. Treasurer Gillian points out u
way by which large amount of the
Indebtedness could be wiped out with
out the $l0i,OO0,00O of bonds above
referred to. Section 3,699 of the re-
yised statutes reads as follows:
"Thc secretary of the treasury may
anticipate the payment of the interest
on the public debt for a period not eX-
cccding it one year, from time to time
either with or without Il rebate of inter
est upon the coupons as to him may
seem expedient, and he is authorized
TO dispose of any gold in the treasury
of the United States not necessary for
the payment of interest of the public
debt. The obligation to create the
sinking fund shall not, however, be
impaired thereby"
There is Sl700O0,000 of gold in the
treasury. OF this sum $95, 100000 was
purchased for redemption purposes.
If MIR. Window does not feel disposed
to trench upon the resumption fund in
the slightest degree, and there are rea-
sons for believing that this fund could
now be reduced, he would have $751;
100000 Of gold with which he could
buy bonds. When Mr.. Boutwell, was
secretary of the treasury, under this
statute, he bought $lS0,000,000 of
bonds in excess of the amount required
for the sinking fund, and did not pur-
chase them with gold either. He sold
the gold for greenbacks, and with
greenbacks bought the bonds. Mr.
WINDOWS policy seems to meet with
the general approval among Republi.
cans here, and there is little or no dis.
satisfaction expressed by Democrats
Some of them are of the opinion that
the holders of the maturing IS would
have accepted 3 per cent interest
ENCOURAGEMENT.
Secretary Window says, from assur
ance already received he feels much
encouraged as to his line of policy re-
garding the maturing United States
bonds, and that judging from present
indications, it would prove successful
A number of kilograms were received
from national banks and other holders
of 6 per cent bonds, announcing con
currence in the secretary's plan. They
prefer to have their bonds extended al
81 per cent rather than have them re
deemed. A number of congressman
including members of the senate
finance committee, called on the secre
tary and rendered their congratulationl
upon the course adopted, unanimously
nrpliptinp ita euonaoo Sanotnr Char