Evening star., 1901-09-10
HE WILL BUY BONDS
Secretary Gage Proposes to Lessen
the Treasury Surplus.
MONEY 10 Be PUT INTO CIRCULATION
Providing for the Usual Fall De-
mand for Small Notes
FOR MOVING THE CROPS
MONEY 10 BE PUT INTO CIRCULATION
FOR MOVING THE CROPS

The following announcement was made
today 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 Of
the United States 3 per cent bonds. loan
OF 190S-191S; 4 per cent bonds. funded loan
Of 1907: per cent bonds, loan Of 1925. and
5 per cent bonds, loan of 1904, to an
amount not exceeding $2QO00.O00. Propos-
ais should be submitted to the Secretary
by letter or telegraph not later than Thurs
day the 18th instant, any 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 ex-
pressly reserved.
"L. ]. GAGE. Secretary"
At the same time Secretary Gage sent
the following telegram to F. d. Tappen.
chairman Of the Clearing House Associa-
tion Of New York city:
Recognizing the unfavorable influence
upon general business affairs of q con-
tinued absorption into the public treasury
of revenue beyond expenditure, l have d.
rected that incoming internal revenue re-
ceipts be placed with national bank de-
positaries until balance with each Is
reached equal to the par value of the bonds
held as security from such depositaries.
This will divert about $5.OO0,0 600 from the
treasury vaults.
"The Secretary will today invite propos-
ais for the sale, to the government OF $780,
600, 600 Of United States bonds other than
the new twos. 1t is believed that these
steps will obviate the otherwise possible
embarrassments which are pointed out In
your telegram of yesterday.
"L. J. GAGE, Secretary"
Secretary Gage said to Star reporter
today that the active movement or crops
has begun throughout the country, and
that he did not desire that the treasury
should absorb millions Of dollars that
might be in trade channels. The subtreas-
uries in the west and south have been
calling heavily for currency to move the
crops. and the mount sent so far is in ex-
cess of any year in the history Of the treas
ury. The placing Of additional money with
the national bank depositaries Will, as Sec
retary Gage indicates in his letter. divert
about IS 900, 900 from treasury vaults and
put 1t into circulation. AT the same time
the purchase Of $4,000 600 in bonds would
be decided relief The only question now
is whether the offers to the Secretary will
be such as to induce him to purchase the
amount he desires 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 are worth and will make no pur-
chases II the offers indicate that the mar
ket prices are to be raised. The money
will be kept in the treasury in preference
to this.
Last April Secretary Gage made an offer
to purchase bonds to relieve the constantly
increasing addition to 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 removed
for the first time. and offers are asked for.
with the suppOsition that the prices will
be such as will permit the Secretary to In
vest q number Of millions of the treasury
surplus in a short time.
Since the offer of the Secretary last April
the treasury has purchased a total Of about
$50. .0O0. 900 in bonds, and these have gone
into the sinking fund, thereby decreasing
the interest payments Of the government.
The purchases have been made slowly.
sometimes few thousands on one day and
on other days reaching into the hundreds
of thousands