The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-06-08

On May is the Secretary of the Treasury
Issued circular giving notice to the hold
ers Of the bonds of the funded loan of 1891
amounting to s25, Se4. see, that such bonds
would be redeemed on and after August is,
1900, and that interest on said bonds will
cease on that date.
The bonds to Re retired are the only in
terest-bearing Gebt which tho Gozern-
ment has the option OF paying of at the
present time No other bonds will ma
'ere until February l. 1904, when the per
cent bonds issued under Mr. CleveIend's
Administration in 1884 will mature. As
these bonds are being exchanged for the
new per cent bonds, however, 1t is posi-
bic that the Government will have no op-
portunfty to retire any bonds except BY
purchase at Dondholders' own prices prior
to 1907. sr-
The bonds that are now TO be paid on
were not issued during the war. but they
do represent portion OF the expense in
CURED in the war. When the war came to
an end the Government stood confronted
with a debt aggregating 81. 756. OOo. 600
Prior to 1852 the largest total the public
debt ever reached was about sI27, 900 .OOe In
1916. The financial problem was a very
serious one: a considerable portion of the
debt was payable AT once. while all the in
terest-bearing debt carried a very high
rate Of interest. so per cent of IL at per
cent. or over. and nearly one-third at 10
per cent per annum.
The Government made provision for sew
eral Issues Of bombs. among which were
what were Enown as the $40 bonds. These
bonds were Issued under the act OF March
3. 1865. bore per cent interest were made
reasonable at the option of the Govern
ment after five years and payable after
twenty years Most Of these bonds were
issued during the years from 1855 to 1865
and the greater part of them redeemed ip
the years 1873 ard 1879
The 5-2O bonds were issued 20 pay of the
temporary debt. consisting ma My OF the
one and two year ) per cent notes issued
under the act Of March 3. 1868; certificates
OF Indebtedness, compound interest rotes.
United States notes known as green
packs. etc When the 5-2Os BEGAN 10
mature the credit of the Government had
so improved that IL was possible TO bor-
row money at much lower rate Of inter
est than per cent An act was passed
oy Congress July II. 1870. authorizing the
Secretary OF the Treasury 20 issue ten
year per cent bonds. ffteen-year AZ per
cent bonds. or thirty Sear per cent bonds
70 be used IN refuIaing maturing bonds
Under that act $3.50 100. 900 OF Az per cent
bonds were issued in 1877 and 1873. OF
which SIS. 900. 600 were to refund the 500
bonds referred 70 above. and Sc. 900 coo
were issued under the act Of January Il.
1876. known as the Resumption act an
thorizing the Secretary to sell bonds de-
scrieec in the act Of July Il. 1870, for the
purpose of obtaining specie.
The "a per cent bonds were made pay
able September l. 1891, but as early as
lsss the Government began purchasing
them, and by June 80. 1891, only $50 sSs. geo
remained outstanding Secretary Win
dom. on Octoeer 9. 1880. in order to get
the surplus out OF the Treasury. offered
in an official circular TO redeem all the
"A per cent bonds then outstanding. with
interest prepaid 70 September / 1921 inc
date OF maturity His successor. Secretary
Charles Foster, on April %, 1881 resciuded
the Window circular, and reserved the
residue Of the loan for adjustment with
IN the hscai year 1892 Secretary Foster
gave the holders of the bonds then
amounting 10 $50 SIS. 200 the choice Of nre-
senting them for redemption. with interest
prepaid 20 September 2. 1881. or for con-
tlnuance at the pleasure of the Govern
ment al per cent At the time il was
thought the bonds would all be paid Of IN
a short time. and one-haR were presented
for redemption The remainder. S25. se4.-
500, were continued at per cent. and
when redeemed by Secretary Gage viii
have had an extended lease OF life OF nine
years. lacking about two weeks
such is the history OF the bonds now to
be paid of. They originally bore Az per
cent interest, and were issued party 20
retire per cent $40 bonds issued imme-
diately after the war, partly to obtain
specie 10 help out resumption The 5-2Os
were issued to provide for the retirement
Of notes and the payment of the tenn
porary debt created during the war.