The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-09-26
Cl1cHiar Informing Holders
of GoUernmenf Bonds Hos
A7teoesf WIH Be Prepaid
10 June 80, 1908 Total
Funds TO Be Released,
$4,000, 600.

Secretary Shaw today issued the fol-
lowing circular outlining the method
whereby the interest on Government
bonds is 10 be prepaid:
IN the pursuance of the authority
contained in section 3599 Of the Revised
Statutes OF the United States, public no
tice is hereby given that the interest
maturing on the several dates between
and including November !, 1902. and July
l, 1903, on the registered and coupon
bonds OF the United States viii be pre-
paid with a rebate Of two-tenths Of one
per cent per month on the amount pre-
paid under the following conditions:
Owners Of the registered bonds de-
string payment must present their bonds
to the Treasurer OF some Assistant
Treasurer of the United States. who will
stamp on the face Of the bonds the fact
Of such payments and return them 10
the owners with the interest for the
period above mentioned. less the rebate.
National banks owning bonds depos-
ited with the Treasurer Of the United
States 10 secure circulation OF deposit
may obtain prepayment upon application
to the Treasurer Of the United States
The bonds SO held, upon which interest
is prepaid. VIII be stamped as above
indicated
Payment On Coupon Bonds.
Coupons maturing upon the dates in
eIuded in this circular may be presented
for prepayment at the Office Of the
Treasurer Of the United States or any
Assistant Treasurer
IN calculating the amount Of the re-
bate 10 be allowed, any fractional part
Of a month viii be reckoned as a full
month. and the rebate for such fraction
Al part Of a month calculated as fun
month will be retained by the United
States.
Prepayment under this circular will
begin Wednesday, October / 1902, and
continue until November 80, 1902. but
prepayment of interest on registered
bonds of the loan Of 1904, 1908, and 1925
viii not be made while the books OF
these loans are closed.
LESLIE 81. SHAW,
seeretary.'
Secretary shaw's latest offer for the
relief Of the money situation TO antici-
pate the interest on Government Obliga-
tions up TO next June brings the total
amount of Government money which he
has agreed TO release from the Treasury
to heir meet the emergency to 1885,
0OO
This is being deposited in banks az the
rate Of between $500. 600 and $500. .000 per
Gay and may so cut Of the Treasury
much more rapidly. The fact that the
total can be counted upon within the
next thirty or sixty days assures the
banks that they can now release more
Of their funds on hand than would
otherwise be possible.
When Secretary Shaw reached the
Treasury yesterday from his Western
trip he found awaiting him numerous
appeals for the further action by the
department to relieve the money strin-
gency. There were two plans before him
by which this could be accomplished
One, and the plan which is most fre-
quently followed IN such cases. was 10
anticipate interest payments. The other
was 10 increase the deposits of Govern
ment money in banks to nearly the
market value instead = of the par value
of the bonds those banks have in the
Treasury as security for the circulation /
This policy had been adopted several
times by Secretaries Fairchild and Gage.
hut is the more unusual Of the two
By each plan about the same amount Of
money was reIeased-s20. 600, 900.
After careful consideration and con /
ferences with bis assistants Secretary 1
Shaw decided 70 first try the effect of 4
anticipating interest payments for the /
next six months
From the Treasury standpoint this /
WAS the best proposition because il 4
would save the Government two-tenths /
per cent month interest If this plan
does not produce the desired effect the I
Secretary viii doubtless increase the /
deposits on bonds up to their market /
value, thus releasing another S2O, 900 600. +
The Secretary believes that the liaui- J
dation that has been going on in Wall /
Street and the relief that is coming from
ordinary commercial channels. such as
the Importation OF gold. etc. will before
long restore normal conditions. As he
stated in his official announcement yes
terday- however. he stands ready to
come 10 the assistance Of the banks
whenever they need It for legitimate
purposes.