New-York tribune., 1903-03-27
BONDS TO BE REFUNDED
OPERATIONS RESUMED.
Treasury VIII ConUert 500, 900, 900
IS and Is Into 2s.
far TELEGRAPH TO TIE TRIBUNE. ]


Washington March 26-Under authority Of
.h. act OF March Il, 19OO Secretary Shaw to-
ssv ,ssued 2 circular addressed to the holders
or Tinted States per cent bonds of 1901, IS
sued under the acts OF July II, 1870. and Ianu-
srv % 1871; also Of holders OF per cent ocnos
Of 1908 issued under the act OF June 1A Io0o'
stating that after April he will refund oohos
Of both issues to an amount not e1ce ans
$1,000 OO0 The bonds to be issued IN e1ci1A'aSS
for the old ones will bear interest at eEri T0
Of 2 per cent will mature in thirty years from
Anr,r 1 1900 and will bear interest from April
I 1919 4 prenlium of per cent is to De
charged m the new bonds but the Secretary ls
to allow the investor an income OF ~ per cent d
wear to the date of maturity on the oonos sur
rendered.
The nrost TO the government through the
transaction is estimated by Treasury, onc'alS -
he between So 100000 and $3.OOo'OOo Whiie 'ile
money which will be released from the rec 90
will amount officials say to nearly $Ao'VV''0'o'
7-bis q ,s believed. wifi be inducement enough
IN the holders of the old bonds to cause thefn
to take ADVANTAGE Of the offer Of the Secre-
tary, The per cent bonds to be issued VIII
hear a smaller tax than the old 0onos' anu III
therefore be more desirable az = OASIS ior Ha
tionsI bank circulation. This = understood 10
be the prime object of the Secrstary IN making
the proposition.
mar there would be a profit to the owners tah
ing the present market value as basis, OF
ahout 4 per cent for the Per cent BONDS sur
rendered and about 81 PEI cent for the IS OF
1901 The Secretary des es to obtain an
ecutta bic share OF this nit Tor the govern
roent which is the reaso for charging pre-
nium of . per cent be new ponos 10 pe
issued. ooo, ,ooo
There are now outstanding about $9T0OO,OOO
.
which are affected by tEs circular issued to-day.
There are also outstan, az about S446OOooOo OF
che o ner cent consols q 1880. issued under the
act Of March IA, 100 These per cent bonds
we're issued in 100 fat par. under the pro-
visions of the refu1 E2g act The per cent
bonds Of the loan 1894 will not be received
for refunding und this circular. but VIII be
reserved for reder tion They mature on FEB
ruary ], 1904.
The new bond, will be issued in denomlna-
t-,e &C for1oxrs. pu1,cn SO 500, $500, $1,000;
registered $50 S1OO, $500, $1,000. 5000.
$1,000. $4,000 IN order that they may be uni
farm as to dat 0f maturity. with the = per cent
consols of 10: now outstanding, they Will be
dated ADril 1900 but interest will begin
~, occnTt9 h OF any bonds for exchange the
present wor' IF the surrendered bonds. to yield
an income , I ~ per cent will be calculated as
of the dat sf their acceptance, and the sum
f-enresentin fine difference between their pres
ent worth fsJ their par value VIII De pald 10
- o1Tnsr 4 due course by a check drawn in
mic favor ~ the Treasurer of the United States.
The ee+fIeHent will include payment by the de-
partment r accrued interest on me nonos 10 -
tLa 5ate 4 their acceptance for exchange, ana
a charge Igainst the owner of the premium OF
neT cerj and for accrued interest on the new
bonds fos April l. 1903, to the date Of accept
anre 8s,ds surrendered on which interest mas
been preezid need not he accompanied by a oe-
r,oe,t tot over such prepaid interest, as the oe-
nartu7 4 will deduct at the time of the settle
Inen+ ssy q m punt which may be due on account
81 I,s1Nfureo interest which had been prepaid
-r,asEer of Secretary Shaw. which was NOT Pu'-
1iht fere until after the close Of the market was
r,uexRcted by the bond houses as well as pS 'ile
So generally Estimates to the amount OF
etIyrbicb would be released by the retunolng
one3:ion were necessarily incomplete but some
ro0d experts wers OF opinion Ihhl II
'.eIis1tJrr ISSUES specified by the Secretary were
led in about 100000 would be released from
17-~