The age-herald., 1900-03-15
SECRETARY GAGE
 ISSUES CIRCULAR Arranging for Retirement of U.S.
 5 per cent. Bonds. PRESIDENT SIGNS THE LAW New Two per cent. Bonds Will be Is- sued in Lieu of Those Called in
 Under Provision of the
 New Bill.
PRESIDENT SIGNS THE LAW

upon receiving notice that the financial bill had been approved by the president, Secre- tary Gage issued a circular to holders of United States per cent bonds of 9he act
 of January fl, 1875; per cent consols of 1907
 act of July IA, 1870, and January 20, 1S71 and
 per cemt bonds of 1908, of the act of June
 13, 1898, in which their attention is directed to section Ill, of the act approved today. The secretary continued as follows:
 Under the provision of this law tine de-
 partment will be prepared to receive on and
 after this date until further notice, any of
 the bonds Issued under the acts above men, tioned and as early as practicable there
 after will issue in exchange therefor like
 amount of United States registered or
 coupon bonds bearing interest at the rate
 of per cent per annum as provided by the
 act approved March IA, 1900.
 "To effect that exchange the outstanding bonds should be surrendered to the secre- fary Of the treasury in accordance with the
 terms of this circular they will be accepted
 tor that purpose dn the order of the sur
 render or them to him, and new bonds bear
 ing interest at the rate of per cent per
 annum wdll be Issued in the same order in
 lieu thereof. A letter of transmittal should
 accompany each package of bonds for ex-
 change, setting forth the purpose for which
 they are forwarded and giving the address
 to which the new bonds and checks for the
 interest thereon shall be sent.
 Bonds held by the treasurer of the
 United States in trust for a national bank
 may be surrendered by letter addressed to the secretary of the treasury accompanied
 with the treasurer's report representing the
 bonds, together with resolution of the
 board of directors of the bank, authorizing
 the treasurer to assign the bonds.
 Prior t. Det rmined y Date
 Tho priority of issue of the new bonds will
 be determined by the date of the receipts
 of the secretary of the treasury of the out
 standing bonds or the papers representing
 the same, provided that the bonds or papers
 are in proper condition for such surrender,
 as set forth hereafter in this circular. If
 any correction is required in the priority of
 tho bonds % be issued will take date from the receipt and acceptance of corrected bonds or papers at this office.
 Any registered bonds forwarded should | be assigned to the secretary of the treas-
 ury for exchange into 2 percentum bonds. 1 The assignment should be dated and wit messed by one of the officers named in the note which is printed on the back of each bond Where a new bond is desired in the
 name of any one but the payee of the old
 bond the old bond should be assigned to
 the secretary of the treasury for exchange into per cent. bonds for account of-(here
 insert the name of the person in whose fa-
 vor the bond is to be issued).
 "Readstered bonds inscribed in the name | of an institution forwarded for exchange | must be accompanied by a resolution of the | board of directors of the institution author l izing their assignment to the secretary of | the treasury for such exchange. The reso- | lution must bear the seal of the instItu- | tion, or if the institution have no seal, there must be furnished with the resolution an
 affidavit setting forth that fact
 | Manner or CoIcu.atIon
 Upon acceptance of any bonds for ex-
 change under the conditions of this circular
 the present worth of the surrendered bonds | to yield an income of 2A percentum per | annum will be calculated as of the date of | their acceptance except as provided in the | next paragraph and the sum representing
 the difference between the present worth of | said bonds and their par value Will be paid
 to the owner thereof in due course by 1 check drawn in his favor by the treasurer l of the United States. The settlement will
 include payment by the department of ac- | crued interest on the old bonds to the date | of their acceptance for exchange and | charge against the owner for accrued in
 terest on the new bonds from the date of | their issue to said date Of acceptance 1 Bonds surrendered upon which interest has | been prepaid need not be accompanied by | a deposit to cover such prepaid district as | the department will deduct at the time or | the settlement any amount which may be | on account of unmatured interest Wnlcn
 had been prepaid.
 "The new bonds wild be dated April l, | 19OO therefore, all outstanding bonds sur
 rendered for exchange and accepted for | that purpose prior to that date wili bear | interest to April 1, and interest on the new
 bonds will begin; and the present worth | of such surrendeed bonds will be calcu- I lated as of the said April 1. The new | bonds will be issued In denominations as | follows: Coupons $50, $100, $5O0 s1.000 Reg
 istered $50, s1OO $1,OO0, 5000, $1O,0O0 $50o00. | "All bonds forwarded for exchange will
 be regarded as the property of the person, | firm or institution in whose favor the new 1 bonds are to be issued, and in each case | the check in settlement of the present | worth, etc., above referred to, will be | drawn in favor of such person, firm or | institution; but, if the agent forwardng 1 the bonds shall desire ard so request the | bonds and the check may be forwarded to such agents address for delivery to the l owner. | Packages containing bonds for sur | render or papers representing OoffuS nelu l by the treasurer of the United States in | trust for national bank, should be ad- l dessed to the secretary of the treasury, l division of leans and Currency, Washing
 ton, D. C., and be plainly naked "bonds | Cor paper) for exchange"
 'fBlank forms of application for the ex- | changes here authorized and the black res | oiutions for ure by institutions have been | prepared by the department, and may be | obtained application to the secretary of | t'ne treasury.
 | Tn exercise of tsle discretion given to | the secretary of the treasury under section 1 il of the act, he reserves the right to | suspend the exchange of bonds above con- | templated, whenever in his opindon the l interests of the government may be best l served thereby The secretary of the | treasury also reserves the right to change l the terms of exchange above set forth,
 either by requiring a bonus or premium l upon the per cent bonds or by requiring l the holders of bonds outstanding to sur render the same in exchange for the new l bonds At rate yield income Of