Arizona republican., 1899-10-16
TO PREPAY INTEREST
Circular Sent by inc Treas
 ury 10 Bond Holders.
For the Second Time inc Govern menf Will Contribute fo inc Re- lief of inc Financial SfringenCy. End of inc Fiscal Year.

N-OOANAONA i the interest for the entire fiscal year.
 the period ending July 1, 19OO The in
 terest due November 1 will be paid in
 full without discount. but if holders of
 bonds wish to take advantage of the
 subsequent dates, a discount at the
 rate of 2-1Oth of 1 per cent a month
 will be exacted. The amount of in
 terest due from now until the end of
 the fiscal year is about $26, 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, if a large number of holders accept the offer which has been made. The treasury is in a position
 to advance these interest payments without the least embarrassment.
 The interest due November l is made up of the 3 per cent loan of 1898, the 5's of 1904 and the As of 1925. There is S1, 600, ,660 coupon interest, which will be payable at all subtreasuries in October. The books for the registered bonds of 1904 and 1895 did not close un- til today. The checks for the in terest on those registered bonds will be mailed October 25, and the checks for the interest on the registered 3s will be mailed October 23. The total prepayment of November interest will be S4, 1868, PA.
 ''The treasury is in a position to un- dertake very readily the prepayment of all the interest due during this fiscal year, large as is that amount said Assistant Secretary of the Treas ury Vanderlip yesterday. ''The cash balance is an extraordinarily large one. being now nearly s2OO, ,O0O, coo. It was larger than this a year aga, but we were then just receiving the payments for the s20O, 900, 900 war loan. Our cash 1 balance now, however, is far larger | than it has averaged for many years, | and, if receipts continue to bear any thing like so favorable a relation to i expenditures as they have recently, it | promises to be still larger, instead of i being reduced.
 'The total amount of interest due be- tween now and July 1 is S25, ,9S6 535. If the holders of all the bonds should this month take advantage of the offer for the prepayment of interest it would be a saving to the government of S249, AIS in the rebate which would De demanded. The several classes of United States bonds are now selling in he market on a basis of about 4-10 per cent per annum, and the rebate which the government asks-2-10 of one per cent month-is at that same rate. If the demand for money is as urgent IS it is in some quarters represented o be- it would seem as if holders ought o be glad to anticipate the fiscal years interest when the discount is so small, md that the situation ought to be, to | great extent, relieved by this action.
 "I see no reason why this prepay nent of interest should mot meet with approval from every quarter. From
  advantageous, in view of he extraordinary cash balance the government has lying idle in it's vaults. md of the saving which the discount will make; while, on the other hand, it fers to the money markets over $25,- co, 000, which can be obtained with i he slight sacrifice of a discount at he rate of 2-1O of one per cent a nonth, which, in view of the thirty and orty per cent quotations that have cen made for call money in New -ork, should look most reasonable . The treasury has prepared circular 0 bond owners, giving the following etails of the proposed prepayments: Owners of registered bonds desir lg prepayment must present their onds to the treasurer or some assist mt treasurer of the United States who ' ill stamp upon the face of the bonds t ne fact of such prepayment. and re- t lrn them to the owners, with the in- crest for the periods above mentioned. b ss the rebate. National banks own e lg bonds deposited with the treasurer a E the United States to secure circula- e on or deposits may obtain prepay j, ent upon application to the treasurer a 2 the United States. The bonds so cid, upon which interest is prepaid, r i'll be stamped as above indicated. S Coupons maturing upon the dates e cluded in this circular may be pre- W nted for prepayment at the office of r; le treasurer of the United States or 4 " assistant treasurer. p Tn calculating the amount of rebate u
 be allowed any fractional part of ri onth will be reckoned as a full tC onth, and the rebate for such frac- W 0nal part of a month calculated as a hi MA1n Nh will be retained by the al