The evening times., 1899-10-10
money FOR BONDHOLDERS
The Treasury Decides to Anticipate
Years Interest.
This Step Expected to Relieve the
Financial SituntiOn-The Govern
ance-Assistant Secretary Wander
lips Explanation of the Action.

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 1 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 2-10 OF l
per cent a month will be exacted.
The amount of interest due from now un-
til the end of the fiscal year is about $780,
000.GO0. 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 saving of large amount to the Gov
ernment. The Treasury is in a position TO
advance these interest payments witnou.
the least embarrassment.
The interest due November ! is made up
of the 3 per cent loan of 1898, the SIS OF
1904, and the As of 1925. There is 81, 60O,
go coupon interest which will be payable
at all subtreasuries October 13. The books
for the registered bonds of 1904 and 1925
do not close until the 18th. The checks
fer the interest on those registered bonds
will De mailed October %, and the checks
for the interest On the registered SIS Will
be mailed October 23 The total prepay
ment CT November interest is $4,S6S,244.
calculation made in the Warrant and
Bookkeeping Division of the Treasury De-
| partment this morning shows that the to-
| tai amount of interest due to and includ
| ing July l, 1900, which may be withdrawn
! under the circular issued today is $685.,
: S96, coo.
/ Regarding the action of the department,
Spprarary NaOderlip said RI ra-
porter:
The Treasury is in position to under
| take readily the payment of all the inter
! est due during the fiscal year. large as is
! the amount. The cash balance is an ex-
traordinarily large one, being now nearly
I $3.50 900, coo. 1t was larger than this a
/ year ago, but we were then just receiving
! the payments for the 5000 600 coo war loan.
/ Our cash balance now, however, is far lar
! ger than it has averaged for many years,
and if receipts continue to bear anything
/ like so favorable 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 S25, $50, ,535 If
| the holders of all the bonds should this
month take advantage of the offer for the
prepayment OF interest it would be saw
/ ing tc the Government of the rebate which
/ would be demanded. The several classes
/ Of United States bends are now selling in
| the market on a basis of about 4-10 per
! cent per annum and the rebate which the
) Government askS-two-tenths OF per cent
! a months at that same rate. If the de-
mand for money is as urgent as it is in
! some quarters represented to be, it would
seem as if holders ought to be glad to an
! ticipate 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.
Il see no reason why this prepayment
| Of interest should not meet with approval
| from every quarter. From the Govern
ment's point of view, it is certainly ad-
! vantageCus in view Of the extraordinary
| cash balance the Government has lying
! idle in its vaults, and of the saving which
| the discount will make; while on the 9TH
! er hand it Cffers 10 the money markets
| ever $25, ,000,000 which can be obtained with
! the slight sacrifice of discount at the
| rate Of two-tenths CT l per cent month; ;
| which, in view of the 80 and 40 per cent
| quotations, that have been made for call
| money in New York, should look most
! reasonable