The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-04-08
How Redeem Bonds.

Washington, 6. The proposition made
by g gentleman attending the recent
financial conference in New York,
namely, to extend the maturing and
per cent. bonds at lower rate of interest,
Is very generally approved by treasury
officials with the exception Of the secre-
tary who will not express an opinion on
the subject) as the most feasible plan
which government can pursue. The
secretary OF the treasury is not required
to give notice before calling outstanding
six per cent. bonds for redemption.
These bonds amount in the aggregate to
Sl95, $50, 400 and are redeemable on June
Both, next After that date any that
may be called will cease to draw interest.
Officials in favor of the proposed extern
sion of the bonds of a lower rate, argue
that the secretary might issue call for
the redemption of say Sl00,0 900 of
these bonds on June Both, next, and
make it optional with the holders Of the
bonds so called, TO present them for re-
demptiOn or have them extended at
rate of interest not exceeding 25. A
large majority, il not all the holders OF
bonds would, 1t is maintained, prefer the
latter course. This action, with regard
TO Is, according to the ideas of those ad-
vocating 1t, should be followed I'M
mediately By calls on amounts or out
standing 5s., equivalent to the smount OF
the series extended. These calls, an officiAl
suggests, should be made conditional, so
the persons desiring to continue their
bonds until Congress passes the funding
bill at 8 lower rate of interest, rather
than have them redeemed, may do so by
complying with the conditions necessary
within q specified time. The aggregate
amounts of per cents. redeemsble on
May 1t, are S453, 400 $50. Should this
method prove successful, 1t would not be
necessary to sell any bonds Whatever.
While nothing can be said Oticisliy SO
to the course which will be adopted,
there is good authority for the statement
that this plan is receiving thorough con-
| sideration, and the indications appear to
be in favor Of its adoption.
Washington, 7.-Important financial
conferences, between some New
| York bankers and the President and
Secretary Blaine, have been held. 1t is
/ urged that whatever srraD gements nisy
| be made for extending the 3 per cent.
bonds IF a reduced rate, the honor OF
government requires that the per cents,
| which are payable on June 80, must be
paid on toat day The 6s are on very
| different basis fIom the s.. II the former
are redeemable on June 80 without
notice, the latter cannot be redeemed
until sitter three months notice.
Government can give that notice
on May 1st, and that s. can
not be paid until three months
fer that. The mount Of 6s payable on
June Both, without further notice. Is
lSlS7, 00O, 900. Whenever the others upon
he same terms have become payable, II
has been held By the treasury that any
failure to make prompt payment wouid
be stain upon the honor of government
and it was urged that government has
$50, 900 from which to psy these
bonds. Through the sale ofSlU4, 0OO, ON
4 or AZ per cents, and the surplus reve-
uues obisinAble. s47, 0OO, 900 could be OBJ
tanned under the Bayard amendment by
antic patiug surplus revenues for three OF
four months. These g-ntIemen urged
that the 6s be paid, and means be pro-
vided IN this manner. The conditions
are different with the IS Notice neec
not be given until three months before
The present Congress will be likely x
| be able to take care Of them.