Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-11
TREASURY PLAN APPROVED
Many kilograms Received by Assistant Sec
retary Vanderlip.
1t is Thought That About Three.
FOurths of the BOndhoIders Will
Anticipate Interest Day.

Assistant Secretary Vanderlip said today
that the response of the country to the
treasurys proposal to anticipate the pay
ments of interest on the national debt had
been most cordial. kilograms of approval
have come in from many quarters.
The question has been raised as to the
extent to which this offer Of the treasury
may be taken advantage of. The discount
rate, 4-10 per cent, which Is practically
the rate realized by investors on the vari-
Gus issues of government bonds II pur-
chased in the open market, would make it
profitable for the banking institutions of
the country to accept the anticipatory pay
ments. These institutions. including state
banks and trust companies, hold about one
half of the total national debt, which is
s1,046, ,OO0,O This half, held by the bank
ers, it is estimated. will accept the propo-
sitions of the treasury and take the inter-
est now. The other half, held by private
individuals, will be divided. The larger
holders, who are awake to conditions of
active business, will take their payments,
it Is believed, while many of the small
holders, who use their interest payments
for current expenditures, will have no use
for the money and will not care to vary
their regular practice in it's receipt. In
other words the large holders are likely to
accept the offer and the small holders to
pay little attention to 1t. 1t Is falr 10 as
sume it is said, that one-haf of these pri-
vate holdings will accept the offer. This,
with the banks holdings would make about
three-fourths of the whole amount to ac-
cept the interest prepayments. This Is the
estimate of Mr.. Vanderlfp, whose knowl-
edge of financial matters is wide and whose
opinions are conservative.
Another question that has been raised IN
financial circles relates to the effect next
January of the advanced payments now.
1t is obvious, it is said that there Will be
so much less money then by the amount OF
January payments that are anticipated
now. In treasury circles 1t is believed that
this will do little harm, in view of the
fact that the governments interest pay
ments in January are but a small part of
the total disbursements at that time on Sc
curities of all kinds. The heaviest crop
movement will then be over and heavy
dividends on corporation and other securi-
ties are expected as a result of the present
prosperity and good times This would
have the effect Of making the money mar
ket easier as 1t would release many mil
lions of money.
Should the financial situation become so
pressed next year as to make the condltlon
of affairs dangerous the treasury could re-
sort to the purchase Of Its own bonds IN
open market. 1t has authority for thls.
but it is not now the intention of any OF
the officials to do thiss 1t is believed that
in few months the treasury could pe
able to spare $4,000, 900 without the least
inconvenience. This will be the case after
January l. when part of the heavy interest
prepayments has been regained In the cash
balance.