The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-03-15
EXCHANGING Of THE BONDS.
SECRETARY GAGE MAKES RULEs
FOR NEW FINANCIAL BILL.
Prescribes the Method and Form by
Which Outstanding Obligations
Can Be Turned Over and the New
Per cent. Bonds Issued in Lieu.


upon receiving notice that the financial
bill had been approved by the president,
Secretary Gage issued a circular to hold
ers of United States per cent. bonds OF
the act Of January IA. 1875 4 per cent.
consols Of 1907. acts Of July IL. 1870. and
January %. 1871. and 3 per cent. bonds Of
1908. of the act OF June 10. 1sss. in which
their attention is directed TO section IL OF
the act approved today.
The secretary continues as follows:
Under the provisions OF this law the
department VIII be prepared 10 receive on
and AFTER this date, until further notice,
any OF the bonds Issued under the acts
sooye mentioned, and as early as pfac-
ucable thereafter viii issue in exchange
therefor like amount OF United States
registered or common bonds bearing inter-
est at the rate Of per cent. per annum.
az provided by the act approved March
ITO effect the exchange the outstanding
bonds should be surrendered TO the sec
rotary OF the treasury in accordance with
the terms of this circular. They VIII be
accepted for that purpose in the order OF
the surrender Of them 10 him, and new
bonds bearing interest at the rate OF
per cent. per annum win be issued In the
same order In lieu thereof letter Of
uansmittal should accompany each pack
age OF bonds for exchange, setting forth
the purpose for which they are forwarded
and giving the address to which the new
bSnds 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 a letter addressed
to the secretary of the treasury. accom-
panied with the treasurer's receipt repre-
senting the bonds, together with a resolu-
ton OF the board Of directors of the bank
authorizing the treasurer to assign the
Registered 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
authorizing their assignment to the sccre-
tary OF the treasury for such exchange.
The resolution must bear the seal OF the
institution, or, II the institution has no
seal, there must be furnished with the
request an affidavit setting forth that
fact.
Upon acceptance OF any bonds for ex-
change under the conditions OF this cir
cular, the present worth of the surrender
ed bonds to yield an income of ~ per
oentum 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 there
OF in due course by a check drawn in his
favor by the treasurer OF the United
States. The settlement will include pay
ment by the department of accrued inter-
est on the old bonds to the date OF their
acceptance for exchange and a charge
against the owner for accrued interest on
the new bonds from the date of their is
sue 10 said date OF acceptance. Bonds
surrendered upon which interest has been
prepaid need not be accompanied by a de-
post TO cover such prepaid interest as
the department VIII deduct. at the time OF
settlement, any amount which may be
due on account of unmatured interest
which has been prepaid
The new bonds will be dated April l,
1900 therefore all outstanding bonds sur
rendered Tor exchange and accepted for
that purpose prior to that date Will bear
interest to April |. and interest on the
new bonds will begin and the present
worth of such surrendered bonds win be
calculated as OF the said April l. The new
bonds will be issued in denominations as
follows.
Coupon, $50, 500. $500 81 600 Register
ed. $50 500 $500, 81 zoe S. 600 5000 $50 000
"All bonds forwarded for exchange will
be regarded as the property OF the per-
son, firm or institution In whose favor
the new bonds are TO be- issued. and in
each case the check In settlement of the
present worth. etc, above referred to-
firm or institution, but, II the agents for
wardng the bonds shall desire aud so re-
quest, the bonds and the check may be
forwarded TO such agents address for de-
livery TO the owner.
Blank forms OF application for the ex-
changes herein authorized and blank res
olutlons for use by institutions. have been
prepared by the department and may be
obtained on application To the secretary of
the treasury.
In exercise of the discretion given TO
the secretary Of the treasury, under sec
ton II OF the act he reserves the right
to suspend the exchange OF bonds con-
templated, whenever ia his opinion the
interests Of the government may be best
served thereby.
The secretary OF the treasury also re-
serves the right 10 change the terms OF
exchange above set forth Either hv re-
curing a bonus or premium upon the
per cent bonds or by requiring the hold
ers OF bonds outstanding 20 surrender the
same In exchange FOR the new bonds at
rate td Yield an income of not more
than - per cent. per anuum.'