Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1901-01-03
SAVES OVER TEN MILLIONS
Refunding Operations Under the FL
nanciaI Act Of March IA
Have Closed.

Washington, Jan. open
ations under the financial act of March
IA last closed yesterday, the books of
the department having been open to
the exchange of bonds for i; period of
nine and onehalf months. In discuss
ing the subject Assistant Secretary
Nanderlip said:
The refunding has been successful
from every standpoint. Holders of the
old bonds, S. As and 5s, of 1905, 1907 and
1904 respectively. have voluntarily Of
fered for exchange into IS approxi-
mately s4as,000000 out of $S39, DOC, 900
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 of interest to the
government by these transactions is
substantially $40. 100000. This saving
has been accomplished by the payment
now of the sum of $4220O,O0O which is
really an anticipation OF S52.900OOO i'm
terest which would have had to ba
paid within the next eight years, in
case the old bonds We're permitted to
run TO maturity. The difference is the
net saving.
THE As of 1907 have been exchanged
in greater amount than any other class
total UP to and including December %
being S2G4, 100000. OF the IS of 1908 S96, :
100000 We're exchanged, and of the as OF
1904 S7G 500, 600
THE secretary of the treasury still
has authority under the law 10 resume
refunding should he deem it prop
er to do so. Whether or not re-
ly upon whether the interest of the
treasury seems to require it at any
time in the future.
The public debt Is now liz better
condition for retirement than ever be-
fore. 1t may we'll be doubted whether
the treasury within the next eight
years, during which the bonds subject
to refundment We're to mature. could
have discharged that total indebted
ness of $3.50 100000. The present sinking
fund requirements are substantially
s50,000,000 year and the retirement of
the public debt can be more easily ac-
complished at the rate of s50,ooo,oo0 for
each of the next eight years than il
the secretary of the treasury had been
confronted with the problem of dis
posing of an average of SloO,000,0o0 n
year
The success OF the operation is due
mainly to two causes: First, being
we'll fortified treasury and therefore,
magnificent public credit; the other
and less sentimental reason being the
greater advantage which the new . per
cent consuls offer to national banks
lating notes. The banks of the coun-
try have exchanged s2S1.96000o of the
old bonds for the new ones, while indi
Nidual holders have exchanged
s6s. III 900.
The department has taken pains to
conduct the refunding operations
promptly and no delays have been en-
countered by those presenting bonds
for exchange. Checks have been for
warded daily for premiums paid.
Effect Upon National Banks.
There is another feature of The opera.
tons of the financial act which merits
attention and that is the effect of the
law upon national banks. From March
IA to dete, 1886 new banks have been
organized, of which $50 We're With a
capital stock less than $4,000. and 1l5
with a capital stock over that amount
The aggregate capital of the former
class was S1,372 900 and of the latter
sl2.650.c00. d total addition To banking
capital of S20,022, 600 Bank note clrcu-
lation in the meantime has increased
by the sum of $50 293. coo.
The department is satisfied to note
that the principal increase in the small
Ter class Of banks is throughout the
western and southwestern states, sec.
tons which heretofore We're unable to
accept the benefits OF the national
bank act owing to it's illiberal pro.
visions."