Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1900-03-29
RBRUNDlNG THE DEBT.

within the next few weeks. There are
features about this issue, says the New
York Herald, which make 1t different
from many previous bond issues by the
government.
The public debt will not be increased
by tine new bonds.
The United States will float bond
at par at . per cent interest for the first
time among modern nations.
The annual interest of the existing
public debt of the United States will
Re reduced by more than S15, 600, 600 If
oil the bonds available for refunding are
exchanged for the new bonds.
None of the new bonds will be offered
for sale by the government.
No aid will be sought from any body
Of bankers or any syndicate in placing
the new loan.
Some of these features Of the new
loan arise from the fact that it simply
constitutes an exchange by the govern
ment Of the new 2 FER cent bonds for
the old bonds now outstanding. None
but holders of the old bonds can obtain
any Of the new ones from the govern
ment. The new bonds are offered in ex-
change for the old bonds which are not
yet due, 20 that the exchange is optional
makes it necessary to offer some induce
ment to the holders Of the old bonds to
suri ender them. The inducemcnt is in
the form of permission to the Secretary
of the Treasury to pay premiums for
the old bonds at valuation not greater
than their present worth to yield an in
come of 24 per cent year.
Active work is already going on at
| the Treasury in preparing for the issue
of the bonds. A great many formal.
| ties are required in converting an cid
loan into a new one, in order to see that
| no mistakes are made, that the owners
| of the bonds are protected at every
point and that records which cannot be
| questioned are made at every step in
the exchange. The process OF reoeiv-
ing, checking, recording, transferring
and cancelling the old bonds and issu-
ing the new ones will probably require
at, least score of separate counts and
records.
The Secretary OF the Treasury and
Assistant Secretary Vanderlip will
supervise the work and decide doubtful
points of law and practice. The bulk
Of the clerical work, however, will fall
upon four different offices of the Treas
ury. The bonds will be received by the
division of loans and currency in the
immediate Office of the Secretary: they
will be registered and cancelled and
new bonds issued in the office of the
Register Of the Treasury; the computa-
tions and checks in settlement of pre-
niums will be issued from the office Of
United States Treasurer Roberts and the
bonds pledged for national bank note
circulation will be released under the
signature of Controller Dawes, Deputy
Controller Kane or designated
acting controller. Even the higher
officials will have to atiix their sig
natures many thousands of times to
the bonds and the papers connected
with the process OF exchange before the
, transaction will be complete and every
! step duly authenticated.
A. Z. Huntington, chief of the divi.
; sion of loans and currency under Sec.
rotary Gage, will mail circulars to al
, national banks holding bonds affected
by the refunding plan and to any Other
j holder Of such bonds upon application.
} These circulars will set forth that thu
) bonds must be assigned upon the space
) provided for the puf pose on the bacl
of the bond and in accordance with tn,
formalities prescribed by law and b!
r the regulations of thsldepartment.
As soon as bond is received it will
5 be entered in receipt book. The pack
: age will then be counted and examined
d to see If the proper assignments ar,
Q made All bonds thus received vii
Z then be scheduled ON blanks prepared
8 for the purpose by cssses-the oil
Q afours" on one list, the ''fives'' on an
o other, and the 'threes" on a third list
s Duplicate schedules go to the Score
q 4 fk,rt xNf fhf DO %hoT
t urer. The Secretary of the Treasur
9 then. through the Register, authorize
!, the issue of the new bonds. The paper
o then go to the Treasurer, whose snbordi
mates calculate the interest and pre-
l. miums due to the bondholder outsid
Il the face of the bond. This process i
j. made easy for the Treasury clerks b
o the possession of tables, giving the in
terest for all sorts of periods on bond
/ from $50 upward, at different interas
d rates.
10 When the Treasurer has figured GU
the difference between the par value {
10 the new bonds and the present wort
1T Of the old ones, made the proper allow
rs ances for interest and mailed the check
. for the net amount due the owners {
the bonds, he will send the bonds bac
to the division Of loans and currenc
for transmission to the owners. The
will be sent wherever directed, whic
will in many cases be to a broker {
agent rather than to the ultimate owne
1t is proposed to issue temporary forl
OF bond while the Engraved bonds al
being printed. This course was take
with the war loan, and printed sui
stitute for the beautifully engraved d,
sign which was later issued was kept
the Treasury as a sort of pledge for til
final issue. A simple receipt was SOL
to subscribers whose bids we've a,
ID cepted, notifying them that they wou
receive bonds in certain amounts. Nor
of the dummy bonds left the custody
the Treasury Department. The san
course will he pursued with the new
per cent bonds.
twill be two or three months befo
Chief johnson, of the Bureau OF III
,et craving and Printing, completes IL
plate for the new bonds, with the
beautiful links of the coats of-arms
the various States tapping over eat
othei. The language Of the dunn
bonds, however, is the same as tn
which appears on the completed boz
when issued. There may he son
trouble in making transfers Of the boz,
before the final sue is made, b
efforts will be made at the Treasury
facilitate this as much as possible.
Most of the actual transactions b
tween the Treasury and the owners
bonds are carried on through New Yo
af banks and brokers, even where the bon
M are nominally owned elsewhere.
| a. Eoy -.