Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-07-05
MORE MONEY ISSUED
Big Increase in Circulation of the
Banks.
EFFECT OF new FINANCIAL Law
Presentation of Bonds for CONVEX
sion.
THE TREASURES ESTIMATE

The presentation of bonds to the treasury
for conversion into the new per cents
promises to reach 100000 within the
present calendar year. This will exactly
accord with the estimate of Treasurer
Roberts. who has closely studied the move
ment thus far. The bonds already pre-
scented for exchange have reached $3O8, 0O1,-
49, The receipts on some recent dates
have been rather light but Tuesday wit
messed presentations Of more than $1,000
600, and 1t Is expected that there will be
another burst Of activity when the new
bonds are actually printed and distributed.
Assistant Secretary Vanderlip now ex-
poets that the bonds Of all denominations
will be delivered by the bureau Of engrav-
ing and printing late this month Efforts
will then begin to get them to the owners
as rapidly as possible. and the distribu-
ton will be completed during August or
early in September. 1t is believed by some
of the treasury officials that a considerable
number of private holders have delayed
presenting their bonds for exchange, pend
ing the issue of the new bonds, because
the mere titles were not so readily nego-
table.
The basis of the estimate of Treasurer
Roberts that the total exchanges within the
year will reach 500 600 600 is found partly
In the present state Of the bonds held by
national banks to secure circulation and
public deposits. The bonds pledged In the
treasury to secure circulation on June 30
were s2sl ,3s7, 04O. OF these 1921. s43, $50 were
were of the three classes available for re-
funding and $1S,S000OO were of the two
classes which were not covered by the re-
funding law. The latter include s11 OO9. 400
In old %, which are in process of redemp-
ton. In addition to the sum of s27. 100000
OF refundable bonds pledged for circulation
the banks have pledged for public deposits
nearly $35.OOO,OOO of the same classes of
N,Ir T to IL - L.1l1 -
this sum of more than s82 900 600 in bonds
available for refunding s5O,OOOOOO will be
presented for that purpose. This item alone
will carry the issues Of new 2 per cents to
about $3.50 100000 and would leave only
$41 100000 to be obtained from private hold
ers or from banks which may acquire addi-
tional bonds in order to bring the total ex-
changes up to S4OO,OOO,OOO.
1t is not unlikely that the pressure for
currency during the crop-moving season
will also have an influence in increasing the
deposit of bonds by national banks as the
basis of circulation and conversions into
the new 2 per cents. The total amount of
the three classes of bonds available for re-
funding when the refunding law took effect
was $500, lac. 400. The refunding of $500. O00.-
600, or nearly 30 per cent, goes somewhat
beyond the expectations of conservative
judges and will afford net saving to the
treasury of about $40, 100000.
The saving thus far by the exchange of
bonds has been 81 $40, 10. This is the net
maturity of the old bonds. 1t does not in
clude the gross saving in interest up to ma
turity nor any of the saving by the reduced
rat of interest from the date of maturity
of the old bonds during the remainder OF
the thirty years for which the new ones will
run. The treasury Is out of pocket in a
sense for the present by the payment of
premiums in anticipation of interest pay
ments at the old rates in the future, but
this has been advantage by enabling the
Secretary to keep under control the large
surplus which has been accommodating dur
Ing the past year.