Evening star., 1898-06-07
Treasury officials About Ready to
Invite Offers.
ENVELOPES HAVE BEEN PREPARED
1t is Intended to Put Out $780,
100000 First.
WAITING ON THE CONFEREES

Preparations are substantially complete
at the Treasury Department to invite offers
for the bonds Cor carrying on the Spanish
war as soon as the bonds are authorized by
Congress. There will not ne delay of two
days in issuing circular stating the terms
under which the 10 Ids are offered and in
viting bids a par. Envelopes have already
been prepared. addressed to every national
bank, to the postmaster at every money
order office aud to the representatives of
certain express companies who have offered
10 aid in The placement of the loan.
The circulars announcing the loan will be
placed in these envelopes and dispatched
soon as the exact terms of the act Of
Congress are known A circular was pre-
pared several weeks ago the subject.
but is liable to changes based upon the
terms of the new law. Ii is The present in
tention to offer $500. 900 900 in bonds at
once, rcScrVing the right to issue an addi-
tional $lDnuoo.oa0 under the proposals of
the minority cf the finance committee, in
case an additional issue becomes neces
sary.
Secretary Gage al first proposed to issue
only S1o0.oo0.0o0 but was advised by prom
inent bankers that better offers would be
obtained If a large sum were offered at one
time tnan If one lot were held back to de-
press the price and the volume of offers
upon the other.
The Secretary has not favored the pro-
vision proposed by the republicans of the
finance committee, that S50.000000 in tenn
porarE certificates of Indebtedness should
be issued before the placement of the
bonds. He fears that such a requirement
may lniure the market for the bonds and
does not consider 1t necessary under pres
ent conditions. The cost of the war which
is already in sight will require a consider
able extension of the permanent debt even
II the revenue under the new law meets
the expenses of maintaining an adequate
military force in the Spanish colonies after
the war has come to an end.
Thirty Days for Receiving Bids
Thirty days will probably be given for
receiving bids before the loan is allotted
Allotments will be made at once, however.
for the full amount of all bids for one
thousand dollars or less. 1t is not antici-
pated that these will reach a sufficient
amount TO absorb the whole loan. hut il is
desired II give the preference to small bid
ders- This will aid the trea sury because
the amounts thus received can be covered
INTO the cash at ol ce without waiting for
the final allotment Of the large bids 1t is
not expected that any bids will be made "A
premium The simple requirement in
making anotmonts will be to divide the
amount subscribed for by the amount re-
naming to be allotted at par after the
sn all bids have been deducted from the
tctal amount of the loan. The entire loan
Is expected to be absorbed at home. and
no arrangements have been made with for
e'gn syndicates for the placement of any
portion, or even with any domestic bank
ing house for placements at u commission.
The banks have very generally offered 20
ald the treasury in placing the loan with
out charge. This offer will be availed of
by sending each bank number of circu-
lars and blank subscriptions, which they
VIII be requested to distribute to their
patrons who make application for them.
w ~ 1r-,,1
to the treasury. but the banks will prob
ably derive small profit from the trans
action by charging the usual commissions
upon New York drafts and other methods
OF sending money to the treasury. A small
deposit will be required in the case of large
bids, which will go toward the ultimate
payment when the bids are accepted.
Checks and other forms of credit will be
accepted for the bonds, but title to them
will rot be delivered until such credits have
been collected In cash.
The Payment of interest
Both the House bill and the amendments
proposed by the republicans of the finance
committee provided that interest on the
bonds should be payable quarterly. Secre-
tary Gage recommended to the Senate COM
mittee that as the bonds paid 3 per cent
the interest be paid once in four months to
the amount of one per cent.
This suggestion will be brought to the at
tention of the conference committee. and
may be adopted by them, in view of the
fact that the entire subject will be open for
their consideration. 1t is thought that an
even payment of l per cent will be prefer
able to payments quarterly to the amount
of three-quarterS of l per cent The bonds
will be dated ahead of the time when pay
ment is received and interest computed
at the treasury on the amount paid up to
the date of the bonds, in order to avoid
computations by the general pub
lie. This will permit the public to pay the
exact par of the bonds, and to receive in
terest on their money from the date when
it is set to their credit.
If the revenue bill becomes law by the
middle of June, the bonds will probably be
dated on the 1st of August, and interest
payments will thereafter come on the lst
of December and 1st of April.
If it is found necessary to issue certif-
Gates of Indebtedness, they will probably
be accepted in payment for the bonds,
converting the short term debt into
d long term debt, and increasing the mar
gin for future issues of certificates. De-
signs for the new bonds have been under
at the bureau of engraving
and printing, but they cannot be completed
until the exact terms of the law are known
under which the bonds are issued. Secre-
tary Gage will probably not adopt the sug-
gestion for putting on the bonds an engrav-
ing of the battle ship Maine.
TAkOMA PARK COUNCIL.