The Portland daily press., 1881-04-16
REFUNDING OPERATIONS.
Secretary WINDOWS Expectations Sur
ipassed.


ipassed.
WASHINGTON, April 15.-Seeretary Win
dom; referring to the returns from holders of
the six per cent. bouds; lsays the prospects Of
the success of refunding exceeds all his antici.
pations. Some of the Treasury officials are en-
thusiastc enough to predict that the govern
ment will not be required to pay out more than
ten millions of cash for the redemption of
bonds under this call for hundred and nine
ty-fiye millions. Secretary Window thought
that the movement would much resemble that
when the four per cents. were sold, and there
was a great rush from the banks before the
limit expired. There have been SOME criti-
csms by Democratic papers OF the fact that
the Treasury has not chosen as yet to give out
any authentic information as to the amount of
bonds which the holders have already offered
for continuance The truth is that no trust
worthy estimates can be yet made by the
Treasury. Banks telegraphed for blanks up
on which to make their REQUESTS for CONVEX
sion, and say they hold large amounts Of sizes.
The fact that new bonds, bearing new num-
bers, are to be given to the holders OF the SKIES
who wish to accept the Secretary's offer OF
by those who wish to find fault with the Secre-
tary's plan. Upon this they base the assertion
that Secretary Window is actually issuing q
new series of bonds without the sanction of
law AS a matter of fact the operation is that
which has uniformly been followed when regis
another. The Treasury always in cases of as
sgnment issues new bond in place of the
old one. The act, therefore, in this case will
only be equivalent to an assignment of the
bonds. AS matter of fact the greater portion
of the bonds are assigned by the original own
ers before they reach the Treasury.
In regard to the recall of the Secretary's cir
cular at the New York Sub-Treasury, which
has most absurdly been interpreted in some
quarters as a reversal of Secretary Window s
recently formulated policy, it may be said that
after the call t+ss Issued, accompanied by the
to accept the three and d half rate weTe to use
it was decided to make verbal change in
form and to provide that the seal of the person
making the request should be affixed to the
document. For that reason the first forms
were recalled and the new one Vas sent yester-
day.
Those who are likely to be called upon for
advice as to the method of meeting the out
standing fves are giving the matter some per-
sonal consideration. There is a general opin-
ion that little difficulty will be experienced In
converting them all into three and halls, and
perhaps lower rate may be practicable. One
of the subjects of consideration in this connec-
tion is how to meet the provisions of the law
which requires the call OF the bonds bearing
the highest numbers first without giving an
advantage to the holders of the hish numbers
to which they are not entitled The holders of
the low numbers, that is, the earliest inv est:
ors in tves, have an advantage which is per-
fectly legitimate in the fact that their bonds
will, under the ordinary operations of the law
be the last ones to cease drawing Ethe five pei
cent. interest. Should the call be issued for
large amounts and at short intervals, as now
seems probable, it will be possible. for the
holders of high numbers to reverse the order
by sending their bonds in earliest; and thus
getting in exchange the lowest numbers of the
reissued DO nds.