The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-01
BOOKS CLOSED.
Bond Refunding Operations Of the
Treasury successfully Concluded.

WASHINGTON, Dec. 3l.-Refunding op-
erations under the financial act of March
IA last, closed to-day, the books of the de-
partment having been open to the ex-
change of bonds for period of nine and
one-half months In discussing the SUBJ
ject to-day, Assistant Secretary yanderlip
said:
THE refunding has been successful from
every standpoint. Holders of the old
bonds. threes fours and fves. of 190s 1907
and 1904 respectively, have voluntarily Of
fered for exchange into twos approxi-
mately S439 100000 out of $3.50, ,000, 600, leaving
outstanding of this part of the interest
bearing debt less than one-half the
amount subject to the law Exact figures
will not be known for several days, as
some bonds are still In transit. The net
saving to the government of interest by
these transactions Is substantially $40, 100.-
0G0. This saving has been accomplished
by the payment now of the sum of $42.-
200, 900, which is really anticipation of
s52. 800 900 interest which would have had
TO be paid within the next eight years
in case the old bonds were permitted TO
run for maturity. The difference is the
net saving.
1.-The four per cents. of 1907 have been ex-
changed in greater amount than any other
class. their total up to Dec. % being $26i.
900. 600. OF the three per cents. OF 1903.
$50, 100000 We're exchanged, and of the five
per cents. of 1904, s70,500,000
authority under the law to resume refund
ing should he deem ii proper 10 do SO.
Whether not refunding will be resumed
depends largely upon whether the interest
of the treasury seems TO require IL at any
time in the future.
THE public debt is now I'm far better
condition for retirement than ever before.
1t may well be doubted whether the treas
which the bonds subject TO refundment
were 10 mature, could have discharged that
total indebtedness of $3.50. .000, 600. The pres
ent sinking fund requirements are SUBJ
stantially 10000 year and the retire
ment of the public debt can be more easily
accomplished at the rate of, $50, 600 900 for
each of the next eight years than II the
secretary of the treasury had been con-
fronted with the problem OF disposfng of
an average OF sl00.00o,Oo0 year.
The success o. the operation Is due
fortified treasury. ami therefore magnifi-
cent public credit: the other and less SEN
timentai reason being the greater ad-
vantage which the new two per cent CON
soils offer 10 national banks as a basis for
the security OF circulating notes. The
banks of the country have exchanged S26I =
$780, 600 of the CID bonds for the new ones
while individual holders have exchanged
."The department has taken pains TO con-
duct the refunding operations promptly,
and no delays have been encountered By
Checks have been forwarded daily for
premiums paid.
There is another feature Of the opera
tions OF the financial act which merits
attention and that Is the effect of the law
on national banks. From March IA TO date
Sq5 new banks have been organized OF
which 2S1 were with capital OF less than
$50 600 and ti5 with a capital over that
amount The aggregate capital OF the
former class was $7.3120Oo. and OF the latter
S12. $50 0o0. a total addition to banking cap
tai OF s20.O 600. Bank note circulation in
the meantime has increased nv fha st,y,,
OF $S5 2S3 900.
The department Is gratified to note that
the principal increase in the smaller class
OF banks Is throughout the Western and