New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-03-06
MIR. FOLGER ON THE FUNDING BONDS.

WASUINGTON, March 5.-Secretary tolger, In
answer to an inquiry from the Ways and Means Commit
tee concerning the Potter bill III r. $500 says: Il
suggest should the oil become law. that Section be
amended by providing for the issue OF bonds OF the DC
nomination of $4,000 in addition TO those already pro-
yided for aud that appropriation be made to pay tho
exnenses OF preparing and issuing the new
bonds; and 1 further suggest IN vie" OK
the objections to the provision WHICH
requires that the Ole per cent bonds shall be numbered
with the same numbers by the per cent bonds for
which they shall be issued that provision be madc thas
the roposed % per cents be issued In the order OK tho
surrender of the per bonds and that the former DO
numbered conseeutiysly, commencing at the lowest NUM-
bers."
1t is observed that provision is made with re'er
enc t the order in which the bonds are to be issued IN
place of per cent and 4s per cent bonds that may DO
surrendered
The Secretary then says: Regarding the second sec
ton II it shall be enacted suggest that It be smended
so as to provide for the issue OF $1,000 bends Also 10
your inquiry whether the law would probably LEAD I'd
the conversion the per cent aud fa per cent bonds
I would reply that OF the opinion that, taken In
connection with the reduction of the tax on circulation
one-hali. as provided in Section .. 1t wewa
nrobaby result in the conversion OF saea
bonds TO considerable amount; ana PoS
sbly the amount offered for conversion NouA
include all of such bonds held as security lor
ton amountngt to about S150,0oOOOo IL Is no, PROV
ah that partteS other tnan NatlOnu D"hA9 "'""~
sent uuder the provisions Of this BILL should become
law 10 the conversion OF and Az per cent oonds ned ~
them into bonds bearing ~ per cent interest
The third INQUIRY Is, Whether the Government wooa
cain or lose by such conversion IN
6sol,no with this, the Secretary says:
sccon provides upon As converted the treasury
no nav In cash TO holder OF such bonds sum equal
% ~, worth the several quarterly ayinents
~ ,nteest from which the United States Ia released n
rs IN be invested quarterly at four per cent in asce
onS such present worth. IL is found that the SUN re-
onred To he paid each 800 under this section would
be about 800 4S 710wh payment OF this amount TO thosa
exchanging 4s for GIGS TO run Tor me
same periot-tweuty three yearswould leave the bal
oycrnmen But when such 2i2 per cent bonds are used
as basis for circulation the decrease OF the tax upon
the circulating notes OF National banking associations az
proposed in Section or the bill must be considered mo
proposed deduction OF ie OF per cent on clieuauons
based 2lo per cents, would, In twenty-three yedr
diminish receipts OF the Government IN the sum OF
SIS So T-l0 on each 800 OF circulation the pfeAeus
worth OF which would be ~ 1870 Inc account az DO
tween the bank and the Government would then seem 20
be IN favor the bank BY just that sum ~ SHOULD %
clearly stated In the third section whether he pressne
worth "a 10 be calculated for the day upon which the p
becomes a law or for the day upon WHICH
the bonds shall be surrendered for conversion Inc IAN
uage OF the sixth section OF the bill IL not qe ceSrs
and am Inclined doubt whether the people woun ap
nroye M s proysOns IL Is certainly open 10 the chargo
az hcing paita 10 the banks and its elect whether In
tended or not would 10 be TO defer tue calling IN OF
the security bonds until such time as bonds not used a.
basis OF circulation shall have been called 30 nes
thnk II wise policy to thus dsTininaie IN ia'os W