National Republican., 1884-03-05
CUTTING DowS THE INTEREST.
Text OF Senator Aldrioh's Bill for re


Text OF Senator AIdrich's Bill for Re-
funding "a Portion OF tho National
Debt at Lower Rate OF Interest.
In the senate finance committee yesterday
Senator Aldrich's bill providing for the
rerunding of the and A. per cent. bonds in
b onds Of lower rates was taken up. Senator
Aldrich offered an amendment in the nature
of a substitute, which amendment formed
the subject Of debate. Although no vote was
taken, tho expression of opinion on both
sides was favorable, leading to the belief that
the bill will be reported favorably and
receive support from democrats and repub-
licans.
The bill as revised by Senator Aldrich is
as follows:
That the secretary Of the treasury Is hereby au.
thorized to receive 1T the treasury from time to
time subject ~ such regulations as he may pre-.
scribe, any bonds OF the United States bearing
aud "a per centum interest, aud tO issue 10 eN-
enango therefor an equal amount IN bonds OF the
United States coupon or rcsstUsedl Of such form
and denominations us he may prescribe, bearing
interest Mt the rate OF ~ per centum p0r annum,
payable quarterly, sucf bonds shall be exempt
irOid taxation Dy or under state or municipal au-
thOrty and shall hccOme payable ut The same date
a. which the or ~ per ccntum bonds iof which
they are exchanged are payable, namely, on the
first day OF July 1907 for bonds exchanged for 4
Ter oentum bond, and tho first day OF September,
1891, Tor bonds exchanged for AZ per centum
bonds: ItOridCd That the 21s per Centum bonds
herein authorized Issued IN exchange for the 4
per CCutum bonds shall not be called In aud paid
81 long rs any bon IN of the Untel States hereto.
fore issued bearing higher rate of interest shall
be outstanding aud unCalled and the last of such
bonds originally Issued under this act, or the sub.
stltutes issued therefore, shall be first called in,
aud this order of payment shall be followed until
all of such bonds shall have boon called in or
paid.
SEC .. That in tho consideration Of the reduc
ton o Interest ELECTED TIE secretary nf the treas
| ury Is hereby authorized to pay out Of any money
III the treasury not otherwise Appropriated to the
| holders of United states ! or AZ per centum
bonds exchanged for the 2H per centum bond:
| authorized by the preceding section, u sum equa
in each case t. the aggregate present worth at tn.
| time Of exchange OF the portion Of the several
| quarter yearly payments of interest from which
| the United StatCB is released by such exchange
| PrOrided, That III ascerlalning such presen
worth interest shall shall be computed at not less
that 4 per Gent. per annum, re-invested quarter
! yearly: and the 4 and AZ per centum bonds re
| ceiyed in exchange shall cease to he evidence o.
indebtedness against the United states, and shal
payments authorized by this section shall bt
credited to, and form part of, the sinking funC
provided Tor by existing law.
| SIC. 8. That when any national banking asso
citation shall deposit with the treasurer of the
United States, in the manner provided by law, th
2l5 per centum bonds authorized by this act, n
security for It's circulating notes. tho association
making such deposit shall be entitled to receive
circulating notes, in manner, FORM and denomi.
nations authorized by law, not exceeding IL
amount the par value OF the bonds 80 deposited
and vt no time shall the total amount of sucl
notes Issued to nny such association exceed TIN
amount at such time actually paid in Of It's capita
stock.
SEC. 4. That all laws and parts of laws of tn
United States inconsistent with this act are hereb
repealed.