The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1901-01-01
REFUNDING OPERATIONS.
Statement by Asst. Sec. Vanderlip sues
cessfuI from Every Standpoint.

Washington, Dec. S1.--Refunding OPP
erations under the financial act OF
March IA last, closed to-day. The books
of the department having been opened
to the exchange of bonds for period
of nine and one half months. In dis
cussing. the subject to-day Assistant
Secretary Vanderlip said:
"The refunding has been successful
from every standpoint. Holders of the
old bonds, IS, as, ard SIS, of 1908, 1907
and 1904, respectively have voluntarily
offered for exchange into Is approXi-
mately $439 100000 out Of 100000,
leaving outstanding Of this part of the
interest bearing public 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 SUD-
stantially $1o,700,000. This saving has
been accomplished by the payment now
of the sum of $42, 100000, which is really
an anticipation of $52,000,000 interest,
which would have had to be paid with
in the next eight years, In case the old
bonds were permitted to run to matur-
lty The difference Is the net saving.
''The As of 1907 have been exchanged
in greater amount than any other
class, their total up to and including
December 20 being $264,00000O. OF the
per cents. of 1908 $9S,O00,000 were ex-
changed and of the 5s of 1904 $40, 100000
"The secretary of the treasury has
authority under the law to resume re-
funding should he deem 1t proper to do
so. Whether or not refunding will be
resumed depends largely upon whether
the interests of the treasury seem to
require 1t at any time IN the future.
"The public debt isanow In far better
condition for Nretirement than ever be-
fore. 1t may well be doubted whether
the treasury within the next eight
years, during which the bonds subject
to refundment were to mature. could
have discharged that total indebted
ness of $Ss0,OOO,O00 The present sink
ing fund requirements are substantial
ly $50, 100000 year. ana the retirement
OF the public debt can be more easily
accomplished at the rate of $50, 100000
for each year of the next eight years
than If the secretary Of the treasury
had been confronted with the problem
of disposing of an average Of 100000
900 year.
"The success Of the operation is due
mainly to two causes. one being well
fortified treasury and therefore mag
nificent public credit, the other and less
reason being the greater
advantage which the new per cent.
consols offer to national banks as a
basis for the security Of circulating
notes.
The banks of the country have ex- |
1851 $50 900 of the old bonds for |
the new ones. while individual holders |
have exchanged s16S. III ,O00
There is another feature of the op-
erations Of the financial act which mer-
Its attention, and 1t is the effect of the I
law upon national banks, From March
IA to date 1886 new banks have been or
ganized, of which $50 were with a capt.
-al stock of less than $4,000 and lis
With capital stock over that amount.
The aggregate capital of the former
class was 1892, 900, and of the latter
'l265o 900, total addition to banking
'aptal of $2o,0220oO Note circulation
n the meantime has increased by the
sum of $s5,293,ooo.