The Penn's Grove record., 1899-10-13
$3O,OO0,0Oo IN INTEREST,".
The Treasury's Plan to Relieve the
Stringent Money Market.
EXTRAORDINARY CASH BALANCE.

Government Offers to Anticipate the In.
tersSs on the Public Debt For the Re
nnainder of the Fiscal Year, Exactine
a Rebate of r~wo-tenth. of One Per
Cent. a Month.
WASHINGTON, D. G. (speciaI).-The Treas.
ury Department has decided to anticipate
the payment OF interest on the public debt.
not only for the month OF November, as
was anticipated, but for the remainder OF
the fiscal year ending June 80 next. The
November interest will be paid In full, but
a discount OF two-tenths OF one per cent. o
month will be exacted on payments Of In.
terest maturing subsequent to November
counting from the date OF payment to the
date on which 1t legally becomes due. This
will release "a, 400 900 on account of the
November interest and about S2j, 900 900
for the balance OF the year. Assistant See.
rotary VANDERBILT said this action was taken
because the receipts of the Government
we're now running larger than the expendi.
lures, thus drawing from the channels OF
the trade large sums OF money, every dol
lar OF which was demanded by the In
creased volume of business.
The following statement of its action
was issued by the Treasury Department:
THE Treasury Department has decided to
anticipate the interest for the entire fiscal
year., tie period ending with July /, 1900.
The interest duo November l will be paid
In full without discount, but II holders OF
bonds wish totake advantage OF the offer to
anticipate interest due at subsequent dates
a discount at the rate OF two-tenth5 of one
per cent. per month will be exacted. The
amount Of interest due from now until the
end OF the fiscal year is about $50, 900 900.
The prepayment of this amount should be
a relief of much Importance to the present
stringent money situation, while on the
other hand the discount will be the saving
of a large amount to the Government. The
Treasury Is In a position to advance these
payments without the least embarrass
ment.
"The interest due November 1 is made
up OF the 8 per cent. loan of 1898, the
SIS OF 1904, and the AS OF 1925. There Is
81 600 $50 coupon interest which will be
payable at all sub-treasurles on October
IS. The books for the registered bonds Of
1904 and 1925 do not close until the 10Th.
The checks for the interest on these regis.
tered bonds will be mailed October rs, and
the checks for the interest on the registered
3s will be mailed October 20. The total
prepayment OF November interest is $4,'
1853, pa"
Regarding the action of the Department
Assistant Secretary Vanderllp said:
"The Treasury is In a position to under
take very readily the prepayment OF all tho
interest due during this fiscal year. large
as is that amount. The cash balance is an
extraordinarily large one, being now near.
ly 1920, 900 900. 1t was larger than this q
year ago, but we were then Just receiving
the payments for the 5000 ,000, 900 war loan,
Our cash balance now, however, Is far
larger than 1t has averaged for many years,
and IL receipts continue to pear anything
like so favorable a relation to expenditures
as they have recently, 1t promises to be
still larger instead Of being reduced.
"The total amount OF interest due be.
tween now and July l is 1926, s96, 595. 1.-THE
holders Of all the bonds should this month
take advantage of the offer for the prepay.
ment OF interest it would be a saving to the
Government OF 5249, 476 in the rebate which
would be demanded. The several classes
OF United States bonds are now selling In
the market on a basis of about 24-10 pei
cent, per annum, and the rebate which the
Government asks-two-tenths OF one pei
cent. a months at that same rate. II the
demand for money Is as urgent as 1t is IN
quarters represented to be, 1t would
seem as II holders ought to be glad to an.
ttcipate the fiscal years interest when the
discount is SO small, and that the situation
ought to be, to a great extent, relieved by
this action.
81 see no reason why this prepayment OF
interest should not meet with approval
irotI-erorY quarter FROM tue dofern-
ment's point of view 1t Is certainly advan-
tageous, In view Of the extraordinary cash
balance the Government has lying idle in
its vaults, and of the saving which the dis
count will make; while, on the other hand,
1t offers to the money markets over $685.
600 900, which can be obtained with the
slight sacrifice of a discount at the rate OF
two-tenths Of one per cent. a month; which,
In view of the thirty and forty per cent.
quotations that have been made for call
money in New York, should look most rea.
anpahlap