Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-10
Circular Sent by the Treasury to
the Bondholders.
WILL ease MONETARY SfRINGEECY
The Government Will Save if Offer
is Accepted.
r Flea S ES $40, 900, 900

The Treasury Department has decided to
anticipate the interest for the entire fiscal
year, the period ending with July l. 1900
The interest due November l will be paid
in full without discount. but if holders of
bonds wish to take advantage of the offer
to anticipate interest due at subsequent
dates, a discount at the rate of 2-10th of |
per cent a month will be exacted. The
amount Of interest due from now until the
end of the fiscal year is about 500 900 900
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 a saving
of a large amount to the government, # a
large number of holders accept the offer
which has been made. The treasury is in
a position to advance these interest pay
ments without the least embarrassment
The interest due November l is made up
of the per cent loan of 1898, the > of
1904 and the As of 1928. There is 81 d.t0-
e6U coupon interest, which will be payable
at all subtrea suries October Il. The books
for the registered bonds of 1904 and 1928
do not close until the 18th. The checks for
the interest on those registered bonds will
be mailed October D. and the checks for
the interest on the registered 3's will be
mailed October %. The total prepayment
of November interest will be 81, ,363244
What Mr. ynnderiip Says.
The treasury is in a position to under
take very readily the prepayment of all
the interest due during this fiscal year
large as is that amount" said Assistant
Secretary Of the Treasury Vanderlip today
The cash balance is an eXtraordina riy
large one, being now nearly $500 100000
1t was larger than this a year ago. but
we We're then just receiving the payments
for the $780, 000 war loan. Our cash
balance however is far la bao II
has averaged for many years. and, if re-
ceipts continue to bear anything like 50
favorable a relation to expenditures as they
have recently, it promises to be still larger
instead of being reduced
The total amount of interest due be-
tween now and July l is $2J, ,S36, 80 If
the holders Of all the bonds should this
month take advantage of the offer for the
prepayment of interest it would be a saw
ing to the government of $2i94TS in the
rebate which would be demanded TIE
several classes of United States bonds are
now selling in the market on a basis of
about 40 per cent per annum and the
rebate which the government asks-2-1O of
one per cent a months at that same rate
II the demand for money is urgent as
1t is IL some quarters represented to be-
1t would seem as if holders ought to be
glad to anticipate 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.
see no reason why this prepayment
OF interest should not meet with approval
from every quarter From the govern
ment point of view, 1t is certainly adyan-
tageous, in view of the extraordinary cash
balance the government has lying idle in
It's vaults, and of the saving which the
discount will make; while, the other
hand, 1t offers to the money markets over
S2ooOo,oOO, which can be obtained with the
slight sacrifice of a discount at the rate
OF 10 of one per cent a month, which
in view of the 30 and 40 per cent quotations
Il1a1 do for
New York, should look most reasonable
Circular to Bond Owners
The treasury has prepared a circular to
bond owners, giving the following details
of the proposed prepayments:
Owners of registered bonds desiring pre-
payment must present their bonds to the
treasurer or some assistant treasurer of the
United States, who will stamp upon the
face of the bonds the fact of such prepay
ment, and return them to the owners, with
the interest for the periods above men,
toned, less the rebate. National banks
owning bonds deposited with the treasurer
of the United States to secure circulation
or deposits may obtain prepayment upon
application to the treasurer of the United
States. The bonds held, upon which in
terest is prepaid, will be stamped as above
indicated.
Coupons maturing upon the dates in
Guided in this circular may be presented
Tor prepayment at the office of the treas
urer of the United States or any assistant
treasurer
I'm calculating the amount of rebate to
be allowed, any fractional part of a month
Will be reckoned as a full month, and the
rebate for such fractional part of month
calculated as full month will be retained
by the United States, except that no rebate
will be charged for the month of October,
1899
Prepayment under this circular will be-
gin Monday, October 16, 1899. and continue
until December 81. 1899
fhe interest due November l. 1899 on
registered bonds will be paid as soon as the
checks can be prepared They will be mail
ed to the payees on or about the 25th in
stant.''