Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-04-12
wHERRYs IDEA GROWING.
Republican Leaders May Adopt His Sink
ing Fund Resolution.


ing Fund Resolution.
rFRoM STAFF coRREsPoNDENT.
HARRISBURG, April 11.-There is a
rumor abroad that the Republican leaders
are considering Mr.. Wherry's resolution for
the future regulation of the sinking fund,
and that they will probably take it up and
pass it. The amendment of section 20 Of
the general revenue bill to decrease the
amount OF money going into the sinking fund
is interpreted as move in Mr.. Wherry's di-
rection. The amendment was made at the sug-
gestion of the Auditor General. Mr.. Wherry,
however. says that owing to the large increase
of revenues expected from the capital stock
tax, the supposed move in his direction is more
apparent than real.
Mr.. Wherry read the editorial in this morn
ings DISPATCH on his sinking fund resolution
and then said: II thank The DISPATCH for
its uniform courtesy. and compliment it on its
usual accuracy. But had the Joint sinking
fund resolution been before you, you would
have seen tnat propose to do the very thing
you recommend" Mr.. Wherrys resolution
follows:
The sinking fund commissioners shall invest on
the sinking fund in United States per cent bonds
except six months interest on the State debt and
for the purchase ofState loans and s256 900 addi-
tional, provided such bonds can be purchased at a
and that after June l. 1889 the cash surplus in the
sinking fund on September l. December l. March
ana June l. in each year, shall be invested in
United States 4per cent bonds, except six months
interest on the State debt and enough to meet
any actually pending negotiations for the pur-
chase of State loans, and $3.50 600 in addition pro-
vfded that the State can thus realize. by purchas-
ing and holding such bonds until maturity, not
less than per cent per annum. That after Au-
gust l. 1894, the sinking fund commissioners shall
not purchase any State loans at so high pre-
m4um, that the purchase of such State bonds
would not realize within one7half of per cent as
large an interest as would the purchase Of
4 Aaraf de fhn
market rate at the time the State bonds
are offered by the commissioners for purchase to
the State, and that, If the State bonds cannot be
purchased at rate showing to within at least
one-half Of per cent as large rate of interest
would the purchase of the United States bonds at
the market rate, the commissioners shall proceed
to purchase United States bonds at the said mar
ket rate and keep them as a reserve in the fund
until maturity, or until such time as their sale
would enable the State to purchase its own bonds
at rate whlchwould realize to the State an equal
interest, or an interest which shall not be more
than one-half of per cent less than the interest
which would be realized from the United States
bonds If held to maturity.
Concerning the editorial reference to the
difference in value between State and Govern
ment bonds, Mr.. Wherry points out that the
sinking fund commissioners last year paid from
lis to 1lS34 for State IS. payable in 1884 while,
at the same time, State As, with 25 years to run,
sold at l2l 1t is claimed now that State bonds
can be bought as low as l07, but Mr.. Wherry
doubts it.