Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-03
The New Bonds.

THE bonds of the loan above mentioned
may be surrendered on and after April 6.
and will receive at a valuation equal to
their present worth to yield an income of
"a per cent per annum.. and like amounts
of United States registered or coupon
bonds bearing interest at the rate of per
cent per annum will be issued in exchange
therefor at a premium of 3 per cent
TO effect the exchange, the outstanding
bonds should be surrendered to the Secre-
tary of the Treasury in accordance with
the terms of this circular; they will be ac-
cepted for that purpose in the order of the
surrender of them to him, and new bonds
bearing interest at the rate of DER cent
per annum will be issued in the same order
in lieu thereof.
Bonds held by the treasurer of the
United States in trust for a national bank
may be surrendered by letter addressed to
the Secretary of the Treasury accom-
panied with the treasurer's receipt repre-
senting the bonds, together with a resolu-
ton of the board of directors of the bank
authorizing the treasurer to assign the
bonds.
THE priority of issue of the new bonds
will be determined by the date of the re-
ceipt by the Secretary of the Treasury of
the outstanding bonds or the papers rep
resenting the same. provided that the
bonds or papers are in proper condition
for such surrender set forth herea fter
in this circular If any correction is re-
quired the priority of the bonds to be is
sued will take date from the receipt and
acceptance of corrected bonds or papers
at this Office
And registered bonds forwarded should
be assigned to the Secretary of the Treas
ury for exchange into per cent bonds
Payment of Premium.
"All bonds surrendered for refunding
should be accompanied with remittance
of cash or bankable funds, made payable
to the order of the treasurer of the United
States, equal to the premium of 3 per cent
which is charged for the , per cent bonds
When the new bonds are issued the
amount found due the owner on account
of the present worth of the per cent
bonds to yield an income of pa per cent
per annum plus the difference in accrued
interest between the two classes of bonds
from April 1, 1907, to date of exchange
will be paid to the owner by a check
drawn in his favor by the treasurer of the
United States.
The new bonds will be issued in de-
nominations as follows:
Coupons, $50, 500, $500. 81 900.
Registered, $50, 500, $500, 81, Oo0, $1,000
SIC 600. $4,000. and in order that they may
be uniform, as to date of maturity, with
standing, they will be dated April 1, 1900
but interest thereon will begin April /,
1907.
BLANK forms of application for the ex-
changes herein authorized and blank reso-
lutions for use by institutions have been
prepared by the department, and may be
obtained on application to the Secretary of
the Treasury.
ANY bonds received for refunding after
the limit of $4,000. 600 shall have been
reached will be held for redemption on
July q 1907, or will be returned, the
owners may desire. In either case the
premium above provided for will be
promptly returned to the owner of the
bonds.
"The circular of March IA. 1907 provid-
ing for the redemption of So, 0G.000 of the
per cent bonds of 1907, with interest to
July 1, will remain in force until that
amount of such bonds shall have been re-
ceived.'
The result of refunding 500 4 per cent
bonds of 1907 under this circular is set
forth as follows
Cost of $iO0 2 per cent bond on April 10,
face value and premium at per cent,
SOB; accrued interest to April S0.05: total
cost, $1O305. Present worth of per cent
bonds. $10039; accrued interes' TO April TO-
500. 10; proceeds of As, $1,000 Net cost of
the 2 per cent bond premiuIc), $2.56.