The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-09-11
Notice Given that Proposals VIII BE
Received for the Purchase OF
Government Bonds.
100000 WILL BE TAKEN
PROVIDING THEY ARE OFFERED AT
FAIR MARKET VALUE.
Five Millions of Internal Revenue Re-
ceipts to BE Placed i'm National
Bank Repositories.

WASHINGTON, Sept. 10.-The following
announcement was made to-day at the
Treasury Department:
1.-The secretary of the treasury hereby
gives notice that he will receive and con-
slider proposals for the sale to the govern
ment, on account of the sinking fund, 3
per cent. bonds of the loan of 190S-191S; 4
per cent. bonds, funded loan of 1907; per
cent. bonds, loan of 1926, and per cent.
bonds, loan of 1904, to an amount not eX-
ceeding twenty million dollars. Proposals
should be submitted TO the secretary by
letter or telegraph not later than Thurs
cay, the 18th inst; and bonds accepted TO
be promptly delivered at the United States
subtreasury in New York. or to the
Treasury Department at Washington.
THE right to reject any or all proposals
is expressly reserved. i. ]. GAGE,
Secretary"
The secretary has also directed that in
national bank depositaries up TO the par
value of all bonds deposited, including the
2 per cent. bonds. This will release about
five million dollars Mr. Gage sent the fol-
lowing telegram to f. d. Tappan chair
man of the Clearing House Association,
New York city:
Recognizing the unavoidable influence
general business affairs of a continued
absorption into the public treasury of
revenue beyond expenditure. l have di-
rected that incoming internal revenue re-
ceipts be placed with national bank de-
reached equaling the par value of the
bonds held as securities from such de-
positaries. This will divert about five mil
lions from the treasury vaults. The sec
rotary will to-day invite proposals for the
sale to the government of twenty mill
liens of United States bonds, other than
the new twos. 1t is believed that these
steps will obviate the otherwise possible
endorsements which are pointed out in
your telegram Of yesterday
Commenting upon the offer made in his
circular Secretary Gage said that the &C
tive movement Of crops had begun through
out the country and he did not desire that
the treasury should absorb millions Of dol
lars that might be in trade channels The
subtreasuries in the West and South have
been calling heavily for currency to move
the crops, and the amount sent so far is in
excess of any year in the history of the
treasury. The placing of additional money
with the national bank depositaries will
divert about $5,C0O000 from treasury vaults
and put it into circulation At the same
time the purchase of S20,0O 900 in bonds
would be a decided relief. The only ques-
ton now is whether the offers to the sec
rotary will be such as to induce him to
purchase the amount he desires or any
sum at all. The tendency in offers of this
kind IS to cause the prices OF bonds to rise.
Secretary Gage does not intend to pay
above what the bonds worth and will
make no purchase if the offers indicate
that the market prices are to be raised.
Last April Secretary Gage made an offer
to purchase bonds to relieve the constantly
increasing addition TIC the cash balance of
| the treasury, but he fixed prices at which
the government would buy. These prices
| have governed the purchases of all bonds
| to this time. The price-limit is now re-
moved for the first time and offers are
| asked for, with the supposition that the
! prices will be such as will permit the sec
rotary to invest a number of millions of the
| treasury surplus in short time.
Since the offer of the secretary last April
| the treasury has purchased total of
about $20,0 1000 in bonds, and these have gone
| into the sinking fund, thereby decreasing
| The purchases have been made slowly.
sometimes a few thousands one day
and on other days reaching into the hun
| dredS of thousands.