New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-12

~
'..s.1 Al the Treasury on or before May
10 Il is not announced that new bonds VIII
e iesued or what provision will be MADE 1or
he Eve per cents.
FEATURES OF THE PLAN.
or ruy bonds MAY BE REDEEMED OR EXCHANGED
THE EXCHANGE BONDS EXPECTED TO BE
SOUGHT FOR BY BANKs-N0 ANNOUNCEMENT AS
m AN ISSUE OF POUR OR FOUR AND A HALF
PER CENTS.
Try TELEGRAPH THE TRIBUSE.]
WASHINGTON. April l. lI.-Holders of six per cent
au,d. ;ssusd under the acts of July II and August
< 1881, and under the act Of March B. 1868, nave
hsn informed to-day that their bonds Will be paid'
nueipal and interest. the 1st day OF July, 1881
fAe date on which they become subject TO redemp-
4on. II holders prefer to leave their money In the
hands of the Government subject to payment al lts
,leasure, they may do by presenting their bonds
At the Treasury on or before the 10th day OF May
1881, with request that, in Lieu OF the SIX per
1enta registered bonds bearing interest at the rate
.daio per cent per annum and payable sem-annualiy
- isued to them To holders who desire to make
a.. exchange interest at per cent to July VIII
Be prepaid. -,
Registered bonds issued in accordance with re-
rest. of holders of six per cents will bear stamp
sxuressina the fact that such bonds are continued
av,ne the pleasure of the Government, with inter
- At the rate of 3i9 per cent per annum. Holders
- renuired to pay transportation expenses on
Suds to the Treasury. Registered bonds, issued as
.have will be sent to them prepaid by registered
4 ~, un,ess they otherwise direct. The amount OF
X per cent bonds subject to payment or exchange
,aer the conditions above described Is $iO,
eoupon and $15543S,S50 registered; TOTAL
tla5. 600 400. This does not include the " oregon
vs., debit of which $63s.200 was outstanding
Aurl 1, 1881. This debt will be paid at maturity
July !, 1881.
TSe Secretary of the Treasury will know fifty
aavs before the call for skies natures the
I sxsct amount which he will be required to redeem
In cash, and will thus have ample time in which to
collect his resources. From assurances which he
hae already received, Secretary Window is Justified
N believing that very considerable proportion OF
the sixes will be presented for exchange under the
terms of the call The amount of skies now depos-
tied by National banks to secure circulation Is
about S45 OOO. 900. Probably most OF these bonds
win be exchanged and the Secretary undoubtedly
snticipates that many holders of the remaining
dxes will prefer gle per cent interest TO their money
II ia thought that 500 600 900 in all may thus be
taken care Of On the 1st of July the Secretary of
the Treasury probably will be able to pay for
c80UUU,UOO or $40, 600 900 Of bonds from the sur
plus revenue; and this amount will probably be
mfacient to pay all the bonds presented for
redemption at that time, provided $1OOOOO,OoO
shall have been exchanged. If this expectation
shoud be realized the Secretary would still have AT
his command S1O4, ,OOO, 900 of four OF four and a
half per cent bonds which he might sell and with
the proceeds begin TO refund the fives
Whether in case il shall be found necessary to
sell bonds to meet demands under the call Issued to-
day four or four and half per cents Will be Sold
"A a sueston not yet decided, and regarding which
TIE Secretary declines to express an opinion When
the matter was discussed in Cabinet, the opinion
WIS advanced that the option of redemption was n
thing of much less importance in fact than the ma
jcrity Of Congressman seemed to think. 1t was ar
sued that whatever the length of time which bond
might have TO run, its value-supposng the
money market 10 remain unchangcd-would
constantly, although slowly, dcpreciate as 1t ap-
preached maturity. On the other hand, the pre-
MUM which the Government would receive would
be 50 much money in hand for use. or might he put
out at interest and be constantly increasing. 1t
would therefore be within the power of the Govern
oent at any tine 60 take that premium, and adding
10 it the par value Of the bond, into the market
and buy the bonds, paying something less than it
lad originally received for them. 1t is known that
Secretary Window entertained this view of the case
tention to sell four per cents in the event
that he finds il necessary TO borrow money
st all. In fact. nothing is known in
regard 10 his intentions in reference TO the
fafe of interest which the bonds shall bear.
Secretary Window believes that the offer which he
made to-day is entirely within the lawful limits Of
bis discretionary power The law makes him the
Judge Of the ACCESSIBILITY of redeemiDg the bonds or
continuing pay interest upon them and he simply
exercises that discretion in way to save 2i2 per
cent yearly interest, while al the same time keeping
the bonds In position where they may be redeemed
d any moment when Congress shall provide the
seaBs. why il will be asked, did the Secretary
AZ wpon 81 per cent n Simply because some rate
had TO be fixed upon before the offer could be made,
snd that rate all things considered seemed the most
likely 70 bring the best results.
~ - what will be done in regard to the iycs, moth
ns appears TO be decided, and the general opinion
thz7 that snbjeet will remain undecided until
seerrfary Window shall have an opportunity To
pecast the result of his action Of to-day. Ii may
- thai he viii find II practicable not only to pro-
ye fof sll the skies but also 10 redeem or extend
4e hyes before Congress assemblies next December.
secretary Window expects that the effect of his
2eoey - announced to-day will be conservative so
- = the money market is concerned, and that no
9eaka contraction or expansion of the currency
va result from it.