San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1888-05-24
Reagan on the Redemption ofthe -Four
Per Cent. Bonds.

| ANh Nctits bVtuns
We copy the following letter ad
dressed TO j. r. Durleson, Presiden
of the Hays County Farmers Ali
ance. 1t bears date U. s. Senate
Chamber, April Id, 'ss.
Dear Sir Your letter OF Apri
7th is Just received, accompanied BY
o clipping from tho Mercury newspa.
per Of March 22nd, and transmitting
copy Of tho resolutions OF conf.
dence of the Hays County Alliance
No. BOIL, in mo, on account of the
position 1 took on the floor OF the
Senate in the debate on the bill for
the purchase of bonds; and you in
form me that you arc instructed by
the Hays County Farmers Alliance
to forward the enclosed article on the
four per cent. bonds above reforred to
and ask whether there is o clause in
the revised statutes by which said
bonds may bo put on the market for
sale?
Under section 3693 of the revised
statutes (being the first section of tho
act of the 18th of March, 1869, Laws
of tho United States, Vol. 16, page ~
will be found tho following: "But
none of said interest baaring ,obliga-
tions, not already duo, shall be re.
doomed or paid before maturity, un-
less of suoh time United States notes
are convertible into coin at the option
of the holder, or unless at such time
bonds of the United States bearing o
lower rate Of interest than the bonds
to be redeemed can be sold ut par in
COIN"
You sec that by both these oondi-
tions, that is, that the United States
notes are convertible into coin at the
option Of the holder, and also that
the bonds OF the United States,
lower rate Of interest than
four and a.half or four per cent.
bonds can be sold Mt par in coin. It|
seems to me that this shows that the
government may now redeem these
bonds. If there is any provision Of
law which changes this I am not
aware OF il.
Undor the not of February 28, |
1878, claws, Vol. 20, page 25), tho
Secretary of the Treasury is author
zed to coin not less than two mill
on nor moro than four million
silver dollars monthly.
The policy of the Secretary of the
Treasury, under oil administrations
jince the passage of the law, has
1een to coin the minimum amount.
I it was tho desire OF the Treasury
to increase the volume
# money he could easily have done {
0 by coming the maximum of silver
authorized by this oct, instead of tho |
minimum.
AS further means OF paying off /
nd redeeming the interest-bearing
'onds and Of increasing the volume ,
4 circulation Of money, the Secretary
( the Treasury may, under section
of the Get of Congress of March 8,
891, claws of the United States, &
'ol. 2l, page 457), "apply the surplus
honey in the Treasury, not otherwise
ppropriated, or so much thereof
3 he may consider proper, to the
urchase or redemption Of United
tates bonds"
This seems to give the fullest au. !;
nority for tho purchase of bonds at
Thatever may be their market value, ,
ut under it, tho government would
present have to pay premium
pom those bonds.
My view is, that all OF these throo |,
Iws are open to the Secretary of the i
'reasury, and that he could apply =
lem for the redemption Of the inter /
st t-bearing bonded indebtedness OF !
10 government and for putting a !
.rger amount Of money into circula- a
on to aid business and to reward 7
Dor.
I foel very grateful to the Hays !
ounty Farmers Alliance, No. BOIL, !,
n the honor they havo done me in n
lopting the resolution OF confidence
hich you, Gs its president, have
ficially and kindly forwarded TO
o. Very respectfully,
john II. REAGAN.