The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-12-13
FINANCIAL.

In discussing Senator Sherman's per
cent. funding bill, the Chicago Times says it |
is well calculated to test the question
whether it is possible for the Government
to make short loan at per cent. 1t |
provides simply for the deposit of not TO |
exceed S300,0O0,00 900 in lawful money of
the United States in the Treasury, and
the issue therefore of the same amount of
8 per cent. bonds the money deposited to
be applied solely to the redemption of
such bonds as have Ieen continued at 81
per cent, the new bonds being redeema-
BILE at the pleasure of the government after
the LIST day OF January, 1887. 1t provides
for no agency, and allows no commissions
of any kind; nor does it even make any APP
preparation for preparing the new bonds.
The most serious objection to the bill is
that it contemplates placing $500, 900, 900 of
the continued bonds out of the reach of the
government for five years, leaving only
about $50 700 subject to call in the
meantime. During these five years the
government could call in and redeem
at par only about S32,0000OO year on
the average, or $l5,00o,0O0 year less than
the average requirement for the sinking
fund. The prospect is that, after making
due allowance for any probable reduction
in taxation, there will be revenue surplus
available for reduct on o the debt ofnotless
than 2SOUO,0O0 year, average. OF this sur
plus, about SIS 5000 600 average, could Onlybe
applied to the reduction of the debt by
going into the market and buying bonds ut
current prices Probably Mr.. Sherman
thinks that the proposed per
cents can be purchased at or
near par at any time within the five years,
so that no great amount would have to be
paid in premiums during that time. And
this may, very likely prove to be the case.
Still, If $4,000 900 of per cent. bonds can
now be disposed OF at par, it is possible, to
say the least, that the same bonds will
bring so high premium in the course of
two or three years that the government will
lose moro in premiums than it will gain in
interest by exchanging 81 for 3 per cent.
bonds"
Will the Times please tell us why a per
cent. bond will ever command SO high q
premium as to involve the government in
any great loss in their redemption on call
or by purchased. ut is true money is becom-
ing more plentiful and is seeking invest
ment, but the small interest these bonds
bear can never greatly enchancc their
value, nor is it possible that they will ever
command anything but light premium,
il any at all. 1t is true the 81 per cent.
bonds are now subject to call, but it is
very doubtful If in the near future, money
market in this country. 1t seems to be
wise financial policy to fix our national in
debtedness at the lowest possible interest,
and bonds bearings per cent. are certainly
as low as they can be placed at this time.
The only question, it seems to US, to be con-
sidered is, can they be sold at that figure at
all?
THE Directors Of tho Mint have caused the
examination of the acsounts Of the United
States coinagosmints from the LIST of July,
1873, to June 80, 1881, to ascertain tho exact
amount and cost OF silver purchased
BY the government nn' and the, the profits
ing the three fiscal years named.
The profits have been $9,75, 2l0, which, with
the profits on hand at the mint July /,
1873, $42i725, and "a, $50 profits on trade
dollars, and surplus bullion credited to the
same account, make the total $40, 1871 ,495.
OF this amount $S774,374 has been de-
posted in the Treasury, 1921 ia paid for
expenses of distribution, and SS4,sF paid
for wastings and losses by sale of sweep,
leaving in the minis July 1, 1881, 81, l0l ,6i5.
The secretary of the Treasury has author
lied the Assistant Treasury. i New York
to redeem $5,00O,000 of bon.s under the
105th call each week until further orders,
beginning Wednesday next, and TO pay in
terest ON bonds to maturity, January
20, 1882.
DALLAS EXCHANGE AND COIN.
s !, York Exchange. n'EE'sE f Fs!5!3Ss
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:, Commercial exchange upon all points y to X