The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1899-10-25
$30,0OO,OOO IN INTEREST.
The Treasurys Plan to Relieve the
Stringent Money Market.
EXTRAORDINARY CASH BALANCE.

Government Offers to Anticipate tho In"
terest on the p ublic Debt For the Re-
mainder of the Fiscal Year, Exactlns
Rebate OF Two-tenths OF One Pc,
Cent. q Month.
WASHINGTON, D. C. Special. 1.-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
discount Of two.tenths OF one per cent.
month will be exacted on payments OF In:
terest maturing subsequent to November
counting from the date Of payment to the
date on which It legally becomes due. This
will release "a, 100000 on account OF the
November interest and about S25, 900 900
for the balance OF the year. Assistant Sec
retary Vanderlip said this action was taken
because the receipts OF the Government
were now running larger than the expendt-
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.:
1.-THE Treasury Department has decided to
anticipate the interest for the entire fiscal
year, the period ending with July /, 1900.
The interest due November will be paid
in full without discount, but II holders OF
bonds wish to take advantage OF the offer to
anticipate interest due at subsequent dates
discount at the rate OF two-tenths OF one
x,,tt1 ha ka1 In
amount OF interest duo from now until the
end OF the fiscal year Is about $780, ,0o0, 900.
The prepayment OF this amount should he
a relief OF much Importance to the present
stringent money situation, while on the
other hand the discount will be the saving
OF large amount to the Government. The
Treasury Is in position to advance these
payments without the least embarrass-
mont.
"The interest due November Is made
up Of the per cent. loan OF 1893, the
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 18th.
The checks for the interest on these regis
tered bonds will be mailed October 25, and
the checks for the interest on tue registered
3's will be mailed October 23. The total
prepayment Of November interest is g..
363,244."
Regarding the action OF the Department
Assistant Secretary Yanderllp said:
"The Treasury Is In position to under.
take very readily the prepayment OF all the
interest due during this fiscal year, large
as is that amount. The cash balance Is an
extraordinarily large one, being now near.
" 1926, 900, 900. It was larger than this
year ago, but we were then just receiving
the payments for the 5000, ,00O, 900 war loan.
Our cash balance now, however, is fai
larger than 1t has averaged for many years,
and II receipts continue to bear anything
like so favorable relation to expenditures
as they have recently, II promises to bs
still larger instead OF being reduced.
"The total amount OF Interest due be-
tween now and July 1 Is $25, 1896 ,5S5. Ifthe
holders OF all the bonds should this month
take advantage OF the offer for the prepay.
ment Of interest 1t would be saving to the
Government OF S249, ,476 In the rebate which
would be demanded. The several classes
OF United States bonds are now selling IN
the market on basis OF about 2 4-l0 pei
cent. per annum, and the rebate which the
Government asks-two-tenths OF one pei
cent. months at that same rate. II the
demand for money is as urgent as 1t Is In
some quarters represented to be, 1t would
seem as II holders ought to be glad to. an
ticipate the fiscal years interest when the
discount is 80 small, and that the situation
ought to be, to great extent, relieved by
this action.
81 see no reason why this prepayment OF
interest should not meet with approval
from every quarter. From the Govern.
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,
It offers to the money markets over $25,.
OO0, 900, which can be obtained with the
slight sacrifice Of a discount at the rate OF
two-tenths OF one per cent. 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.
sonahlen