The Hickman courier. [volume] (Hickman, Ky.) 1859-current, 1900-03-09
NEW FINANCIAL LAW.
Treasury Department Preparing to
Put it Into Operation.
New Bonds VIII ne Issued TO the
Holders OF the Old bonds
90 Their Face
Value.

Washington, March 6.-Plans for
complying promptly with the ne"
currency law are being considered in
the Treasury Department, and IL will
be put into operation at the earliest
possible moment after its passage
Secretary Gage will have a new form
of the daily treasury statement pre-
pared, which will separate the funds
set aside for the redemption OF gold
and silver certificates and legal ten
der notes from the funds used in the
ordinary fiscal operations.
The most important work TO be
done is TO prepare the new bonds UNI
der the refunding plan.
The new per cent. bonds will be
issued TO holders of the old bonds "a
the face value OF the old bonds. but
certain premiums will be paid - the
Treasury in cash. These pre- mi9. ms
will be such that the bonds would "a y
two and quarter per cent. interest
until maturity, with allowance for the
sinking fund. The effect of the pre-
miums paid will be that a man hold
ing bond for $1,000 will receive a
new bond at ? per cent. for $1,000
will receive a check from the treasury
for the premium. amounting in the
case of the tours and fve's TO some
thing like 800. and will thereafter
receive interest at the rate of pei
cent.
None Of the new per cent bonds
will be offered for sale by the gov.
eminent. This probably accounts foI
the reported premium OF five or siN
per cent. upon new bonds when is.
sued. II the government were taking
up a loan which had matured some
Of the new bonds might be offered
upon the market and the money re-
ceived for them used in paying old
bonds whose holders desired their re
demption. In the present case. how
ever. the only option OF the holder Of
the old bonds is TO accept the new
ones or retain the old ones.
1T is proposed TO issue bonds ol
denominations ns high as $4,000 70
meet the needs of the banks. but the,
will also be issued rs low as $50.
An apprehension seems to have
gained ground that the pending bill
calls i'm large silver certificates: Thii
Is not the case. The treasury vii
not make any call for large silver Ger
tificates, but when they are received
m the ordinary course Of business an6
for redemption oniy certificates OF 81
and under will be issued in theii
| place. This will tend 80 put all The
1 i.
there will be a tendency 10 cameo
small legal tender notes and substi
tute large ones.
The high price OF the bonds capabl,
Of being funded and the recent IN.
crease of bank note circulation ind
cate that general preparations are be
ing made by the banks TO eNchang,
the old bonds for the new. II is ex
pected tina, a rush OF applications will
come TO the treasury when the law Is
approved. The issue of the bonds and
the payment of premiums which Sen.
ator Aldrich estimated at $1,000, 900
and would put this much money
i'm circulation so far as IL is not al.
ready in public use through the de.
posits in the banks. II is not general.
" expected, however. that all the
bond. will be refunded at the present
time.
The treasury balance will drop, &c.
cording 10 the present form of state
ment. TO about S255.O00.0 900. and the
setting aside OF the new gold reserve
of S150.O00,000 will leave the fiscal bal
ance. according 10 the new form of
statement. at about Sos. 200. 900
much more manageable fund than the
surplus OF the last few months. which
has threatened the supply of the
money market and required constant
special measuits by Secretary Gage &c
Drevent undue contraction.