Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-11

Secretary Carlisle Gives the Informs
ton Asked by Mr.. Allen.

SANAAbAC uAtCB thc AMAOEAhAu-
ton Asked by Mr.. Allen.
Secretary Carlisle sent to the Senate to-
day response to the Allen resolution in
curing under what circumstances the
Treasury Department had anticipated the
interest on bonds since July /, 1880. The
Secretary says authority for advance pay.
ments of interest is found in the act OF
March II, 1864. With two Insignificant ex.
ceptions the disbursements ON this &C.
count have been made without deduction
or expense to the bondholders. When in
terest was anticipated the conditions OF
the treasury and of the business of the
country were such as to make the exer-
cises of the power advisable, if not impera-
tive.
The Secretary then enters into the details
of the payment. beginning with the year
1881. when the effort was made to change
the 5 and per cent bonds to IL per cent
bonds, redeemable at the option of the gov
eminent AS an inducement to surrender
the 9 per cent bonds in exchange for 3 IL
per cents the treasury offered to prepay
the interest to July I, and so paid out
S.. 25S. 613. Interest was also prepaid to the
amount of s.. &c., 3l to August Il. 1881, on
account Of per cent bonds.
The Secretary shows how to afford relief
to the money market and prevent the fur
Their accumulation Of a surplus of Septem-
Der "a 1881. the department called in $50
000. 900 In bonds and announced It's readiness
to redeem weekly during October following
81, 000, 900 in IL per cent bonds, with inter-
est to date of redemption. Under like con-
ditions. in 1888, beginning August p, the
treasury announced that it would accept
S. 900 900 of bonds weekly for redemption.
During. the months of August, September
and October of that year nearly a quarter
of million of dollars was prepaid in inter
est.
Again, toward the close of 1856, the COM
mRrcial and financial situation called fol-
prompt action and anticipated interest In
| the sum of 81. 735. TAB. which was returned tc
| the channels of trade with great benefit tc
the country and without embarrassment tc
the treasury. In May, 1887 the last of the
bonds redeemable at the governments pleas
ure were called. There was no way OF
putting out again the surplus to the people
except by bond purchases at a premium, OF
by deposits in national bank depositaries
Doubling his authority to purchase bonds
not required for the sinking fund, the Sec.
rotary again anticipated interest to the
amount of slO,ss2, 7os The Secretary
of the currency. describing the circum-
stances under which the payments of in
terest were deemed advisable in the fall OF
1890 and up to September, 1892.
He refers to bank failures in New York
andi the ef tanglement Of Barring Bros, in
Lon4Sa4E and says that the department Of
feanto rlNfrchase bonds at that time had fol-
| their object the relief of severe monetary
stringency The operation Of the treasury
then rendered imperative not only by the
financial and commercial interests OF the
country. but by the largely increased reve-
nues due to pending tariff changes and to
the act of July IA. 1880. which. added to the
available cash balance, over S54, 0OO. 900. re-
suited in the release Of over 500, 900 900, OF
which sls,50o,OOo represented prepaid inter
est.
The anticipation of $26O.505 interest due on
September 2. 1889, was Offered as an induce
ment for the exchange of 1-2 per cen,
bonds for per cents. During the recent
monetary stringency and general depres
anticipate the interest due July / and Sep
TENDER I. 1893. and 81 9Sl S45 and SILL $50 were
disbursed few days in advance Of the date
Of maturity.