The Honolulu republican., 1902-01-12

Issued N exchange for the old I1Te3s.
fours and hves, should not Be issaed
at less than par. The Secretary Of
the Treasury was Authorized to con-
duct the refunding operations 80 that
the old threes, fours and fves should
be received in exchange for the , per
cents on a basis Of q. per cent On
May /. 1909. almost one-third Of the
outstanding threes. fours and fves
had been converted into > per cents
Of the new issue. thus practically 81
curing the success OF the refunding
plan
No other nation OF the earth can
boast Of such an achievement as vas
the exchange OF these old. high-rate
interest bonds for bonds issued upon
so low a basis as , per cent Hither-
to Great Britain had been regarded
a. the financial Gibraltar OF the world
but while British consols bearing in
terest al the rate Of pa per cent per
annum were selling ? points below
par the United States was able TO
float a per cent bond al par with
ease. Such facts speak volumes for
the financial strength OF the United
States. To float a per cent bond at
par Of this kind means that the integ
rity OF the dollar was recognized in
the Law of the land. and there was
faith in the honesty OF our future in
tentions and purposes.
So much for the Advertisers ignor
snce on the Currency Bill. Now for
the Kansas Pacific railroad transac-
ton.
In the case Of the Kansas Pacific
indebtedness. by decree Of the court
an upset price on the sale OF the
property was fixed at a sum which
would yield TO the Government 81
100000 The reorganization commit .
tee in conference with the Govern
ment declared its purpose OF making
no higher bid than that fixed by the
decree of court, so that the Govern
ment was confronted with the danger
of receiving for its total lien upon
this line. amounting TO nearly s13.
100000. principal and interest, only
the sum of s2,500,00O
Believing the interests of the Gov
ernment required that an effort
should be made 10 obtain a larger
sum. and the Government having the
right to redeem the membranes
upon the property which were prior
to the lien OF the Government sub
sidy. by paying the sum lawfully due
in respect thereof out of the Treasury
Of the United States. so that the Unit
ed States should thereupon become
subrogated TO all rights and securities
heretofore pertaining TO the liens
and mortgages in respect of which
such payments should be made, the
President. on February s, 1898, au-
thorized the Secretary OF the Treas
ury 10 pay out of the Treasury. To the
person or persons lawfully entitled to
receive the same. the amounts law
fully due upon the prior mortgages
upon the eastern and middle divisions
OF the road
Steps were taken by the Govern
ment looking to the fulfillment of this
direction. whereupon the reorganiza-
tion committee offered to bid at the
sale of the road a sum which would
realize TO the Government the whole
amount of the principal of the debt.
S6.S03 900. II was believed that no
better price than this could be OBJ
tanned at a later date if the sale
should be postponed. and it was
deemed best TO proceed upon the
guaranty OF a minimum bid which
would realize to the Government the
whole principal of its debt. The sale
thereupon took place. and the sum
yielded to the Government was Sc.
303 .000 in cash. II will be perceived
that the Government secured an ad-
vance of sS.SOS. 600 in cash on account
of its lien over and above the sum
which the court had fixed as the up
set price. and which the reorganiza-
ton committee had declared was the
maximum which they were wiling to
pay for the property.
So much for the Advertisers bliss
full ignorance,