The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-11
S3O.OOO,OOO IN INTEREST.
THE TRExsURY'S Plan TO RELIEVE
THE MONET MARKET
II oners to Anticipate the Interest on the
Public Debt for tho Remainder of tho
Fiscal Year, ExactinR Rebate of Two
tenths of One Per Cent. Month.

tenthS OF One FER Cent. moh'h'
WASHINGTON. Oct. 1.-THE Treasury De-
rnrtmcnt to-day decided to anticipate the pay
ncnt OF interest on the public debt. not only
for the month ~ November. as was anticipated.
iut for the remainder of the fiscal year ending
June 30 next. The November interest will be
taid in full. but II discount Of two-tenths OF one
t,r cent. q month will be exacted on payments
q interest maturing subsequent to November.
counting from the date OF payment to the date
o. which IL legally becomes due rms VIII
release 81. 400. 900 on account OF the Novemb Der
interest and about S25OOO.OOO for the balance
Of tho year. Assistant Secretary Vanderlip
said this action was taken because the receipts
ofthe Government were now running larger
than the expenditures. thus drawing from the
channels OF the trade large sums of money.
every dollar Of which WAS demanded by the in
creased volume OF business.
"prosreritv," he continued. makes money
worth moro than ever before. and tho Depart
,u.ut in this matter simny gives evidence OF n
desire to observe and apply sensible and sound
banking principles"
The following statements OF its action was
,ssucd by the Treasury Department at noon:
1.-THE Treasury Department has decided to an
tirlrat. tho interest for the entire fiscal year.
the reriod ending with July l. 1900 The inter-
cat due Nov / will be paid in full without
discount. but il holders Of bonds wish to
,,Ec advantage OF the offer to antici-
,,,o Interest due at subsequent dates n
discount at the rate OF two-tenths OF one per
cent per month will be exacted. The amount
ofirt.rest due from now until the end OF the
r,col ycar is about 3O.0OO.OOO. The prepay
tncnt Of this amount should be relief OF much
inheritance TO tho present stringent money
situation, while on the other hand the discount
will he the saving OF large amount to the
'h.,V rln Try ia n
advance these payments without the least en-
larrassment
'Tbc interest due Nov | is made up OF tho
q rcr cent loan Of 1893. the IS 81 1904, and
the A. Of 1928. There is SlGOO.66O coupon
interest which will be payable at all sub-treas-
urios on oct - The books for the registered
bonds Of 1904 and 1928 do not close until
the 18TH The checks for the interest on these
registered bonds will be- mailed Oct. 70. and
the checks for the interest on the registered
IS will be mailed oct. % The total prepay
uent O, November interest is 81. 1863. pa"
Regarding the action Of the Department As
sistont Secretary yanderlip said to a repre-
sentative Of THE Sun:
The Treasury is in q position to undertake
very readily the prepayment OF all the interest
due during this fiscal year. large as is that
T nnrtIV large one. being now nearly s3a0000-
900. Ii was larger than thi year ago. but we
we're thSn ms; rerciyinE the nayRents Tor the
however. is far larger than it has averaged for
many years and il receipts continue to bear
anything like so favorable relation to expend-
lures as they have recently. il promises to be
still larger instead of being reduced.
now and July / il So .S.I,535. II the holders
OF all the bonds shou ID this month take advan-
il would be a saving to the Government of
E2+"47b in the rebate which would be de-
manded. The several classes OF United States
bonds gpllinD in the market n
basis OF about . 10 per cent. per annum. and
The rebate which tho Government asks-two-
lcnths Of per cent, months at that same
rate. II the demand for money 10 as urgent as
i is in some quarters represented to be. it
nntcipate the fiscal years interest when the
discount is SO small, and that the situation
ought to be, to great extent. relieved by this
Il see no reason why this prepayment Of In
every quarter. From the Governments point
Of view 1t is certainly advantageous. in view OF
ne ba cash IN pa the ~ t6a
saving which the disrount will make: while. on
the other hand, It offers to the money markets
the slight sacrifice OF discount at the rate OF
tTo,t 81 tbs at Of PsT cent month Which, in
have been made for call money in New York.
should look most reasonable"
The following circul ar was issued later in the
day giving the details OF the plan which will
have to be observed by bondholders:
TREASURY DEPARTMENT.
OFFICE OF THE SECRETARY
NEW York. Oct. 10. 1879
In pursuance OF authoTity contained in sec;
States. public notice is hereby given that the
interest maturing on the several interest
july i, 1900. on the registered and coupon bonds
OF tho United States. will be prepaid. with a
rebate OF two-tenths OF l per cent. per month
on tho amount prepaid under the following
Owners OF registered bonds desiring pre-
payment must present their bonds to the
Treasurer or some Assistant Treasurer OF the
United States. who viii stamp upon the face OF
u mt se PICK TIM
Tor the periods above mentioned less the re-
Ps. The 0HPk Tnn e 9 tSs ds
states to secure circulation or deposit. may
Tq raNIuIpn repayment up2G application to the
stamped as above Indicated Coupons ma
may be presented FOL. payment at the ONCE OF
the Treasurer OF tho United States or any As
In calculating the amount of rebate to be
allowed, any fractional part OF month will be
such ractona I BART OF month anti as os
sf e: % S1SsG ,Ps win be
Monday. Oct 10. 1899. and continue until Dec
hs ssd lo vii
o. diiscontinTed while tho books OF those loans
registered bonds will lie paid as soon as the
checks can be prepared They will be mailed
10 the payoes on or about the 25th inst.
20 J.. sPAULpING, Acting Secretary"
EFFECT ON THE MONEY MARKET HERE.
News OF the governments purpose had an
excellent effect upon Wall street sentiment
Yesterday and was rellectedin sharp i'm prove.
ment IN the stock market. The opinion was
EXPRESSED that the action OF tho Treasury De.
har'm"nt would go great way toward bridg.
llg over the interval before the natural return
Now OF money to this city from the interior.
IN IN" money market, while lenders still held
toah per cent. rate. they rered to lend money
a. mat rate for al periods from thirty days tc
IA months. Until late in the day on Monday
Ihr banks were unwilling to put out time
money At per cent for less than six months
money on call was not so stiff yesterday as
rEe"rntly, The majority OF tho call loans on the
Cl"cK Exchange were made at rates ranging
m.nl 70 10 pee cent, nth tho rites declin inc
'aIe ~ the day and touching per cent.
CT ~ expected by the officers OF the United
G Etn,eS Huh-Treasury that OF the $50: 0O0,OQ0 o
tt,.rr"N', the advance payment Of which Il
Ma"H EossIhle. about one-third or SlOOOO.OOt
~. be released at this centre within the mex
i"W weeks or the 81 }3244 Of Interest
%n" Gr Nov l. payment OF which will be antGi
Ih,"i, about S3uOO.OOO will be paid here. The
nN"uhl tanks. trust companies and life