The Washington times., 1901-09-11
STATUS OF PUBLIC DEBT.
Its Refunding Described by tie
Register of the Treasury.
His Interesting Annual Report Sub
mittcd to Secretary Gage-Spnnish
Indemnity Certificates - some In
creuscd saI,rics Recommended.

In his annual report submitted to the
Secretary of the Treasury yesterday j.
W. Lyons, Register of the treasury IN
an interesting manner and with pam tap-
ulations illustrated the workings oi that
division of the Treasury Department with
which he has been entrusted. About the
Division of Loans, Mr.. Lyons said in part:
Like the two years which next pre-
ceded it. the year just closed has been
marked by changes in the public debt of
great magnitude. The values which have
been involved have not been equaled for
many years The largest single item was
the issue of $445.9i0. 150 in engraved bonds
equal to nearly half the interest-bearlnS
debt of the United States, which TOOK
place in little over five months. Inns
represented the completion of the trans
ferring of this amount of the public DEBT
from a 5, 4. and per cent basis to
per cent investment
THE total amount of bonds handled by
the division has continuously increased
every year since the fiscal year lSso-s''
when the amount was s2I2. 1880 During
the year recently closed the amount wds
S. 81. 1876. $50: the increase in values over
the preceding year was S127, ,3S1550, and
the number of bonds handled was 11.dsS
larger than in 1s99-i900.
Speaking of the refunding of the public
debt at per cent, Mr.. Lyons says:
LAS stated in my last report, on March
II, 1900, the Secretary of the Treasury is
sued a circular (under an act of Con-
gress of the same date, in which he Of
fered to receive bonds of the per cent
loan of 1904. the per cent funded loan of
1867. and the per cent loan of 19GS-l9lS,
and to issue in exchange therefor a like
amount of per cent bonds due in 1890,
with an adjustment for the differences in
rate of interest upon the various loans.
Very large amounts of bonds at the high
er rates of interest were Immediately pre-
sented for refunding at per cent and
the issue of the latter bonds began March
H. 1850. As the preparation of engraved
bonds in the usual form must necessarily
consume several months. certificates of
less elaborate design, but bearing the
exact phraseology of a registered bond,
were printed for use until the regular
bonds could be completed. These certifi-
Gates. which We're known as provisional
bonds, were all retained in the depart
ment. but the owners were permitted to
transfer them, and they were received
by the Treasurer of the United States as
security for circulation and for deposits
OF public moneys, precisely as would have
been done with bonds of the usual form.
ION the Both of June. 1900, the amount
of such provisional certificates outstand-
ing was s307, ,125, $50. During the present
fiscal year the issue of the provisional
certificates was necessarily continued un-
til bonds were received of sufficient
number of denominations to render it pos
sible to begin the isue of the engraved
in Tar h.s cin nj
bonds During this period the issues of
provisional coupon certificates amounted
to s550.15O. and of provisional registered
certificates to SIS, ,329 400, making the total
issue of provisional certificates in ex-
change for bonds of other loans from the
beginning s526004.9O0. During the two
fiscal years in which the issue of provis-
ional certificates was in progress. the
owners of s3.527. 800 in registered provis-
ionai certificates requested that their or
ders be changed to coupon certificates, so
that when the reissue Of these certificates
finally took place the issue of 9 per cent
bonds in place of coupon provisional GER
tificates. s3.9l3, $50: registered provisional
certificates, $322 o9l $50; total. 1926 90, 800.
''On July "a, 1900. sufficient amount Of
r. cis.ered 3 per cent bonds of several de-
nominations had been received to begin
the work of reissuing the PROFESSIONALS in
engraved bonds. and September "a the
necessary denominations of 2 per cent
coupon bonds were delivered to the Office.
The work of reissue was pressed forward
with great rapidity until the exchange of
PROFESSIONALS for bonds was completed
After that engraved bonds were issued
directly In place of the 3. 4. and per
cent bonds received. and without the in
termediate provisional stage. The amount
of 2 per cent bonds issued directly for
bonds of a higher rate of interest was.
coupon bonds. SIS SOL 200, and registered
bonds. siO4 ,434, 150 This makes the total
amount of per cent engraved bonds
which were issued on account of bonds
at higher rates of interest, as follows:
Coupon bonds .tI9 4l5, $50
Registered bonds. .426 ,525, 200
Iotal ....'-s.-'..-..'..-..-... .Si4S'5to 'SO
'It may be noted that the issue of 1926
o0i,s0o in temporary certificates (Which
under the circumstances was unavoidable)
increased very greatly the work of the
division over what would ordinarily have
been necessary in refunding this amount
of bonds. For over three-fourths of the
principal of the loan it was necessary to
issue all the amounts twice, and to can
Gel the whole Of one of such issues
OF the Spanish indemnity certificates
the report states that the Spanish indem-
nifty certificates represent a debt of the
Government of Spain to certain American
citizens. These claims" Mr.. Lyons
says, arose from the seizure by priva-
teers of vessels and cargoes belonging to
American citizens, or from the seizure
and confiscation of the same, either in the
ports of Spain or of its colonies but in
all cases under the formal sanction of the
Spanish courts On the 17th of February
1884, convention was concluded at Mad
rid between the United States and Spain
1t was intended to cover such matters as
had remained unsettled at the date Of the
prior treaty Of February p. 1919. as well
as such claims had arisen during the
period intervening between the two treat
les. The document stated that il was a
full settlement of all claims of whatever
class. denomination, or origin then at is
sue. The United States agreed TO receive
and transmit to the proper parties such
amount of principal or interest as might
be forwarded by Spain. The treaty pro-
Vided for the appointment of commits
sioner who awarded to certain claimants
against Spain the aggregate sum of S5gg
S5l.ZS; and the act of Congress Of June T.
lSb. provided suitable legislation for car
ryinS out The treaty.
For many years the sum of SIS 500 has
been received annually from Spain,
through the Department Of State, and di-
vided pro rata among the holders of this
stock. No payment has ever been made
on the principal The Treasurer Of the
United States was authorized to pay the
sXtieth installment Of interest on De-
cember q 1900.
1T is a fact worthy of mention that
Spain has paid in interest during the six
ty-five years since the ratification of the
treaty more than twice the amount of
1.r.