The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-04-03
$5O,OOO,OOOBONDS
TO Be REF UNDED
Secy COrle|yOu Issues Statement
Regarding 1907 Loan
SURRENDERED AFTER 9Th
VIII Be Received at Valuation Equal
to Their Present Worth to Yield
Income of 2I4 Per Cent.
New Issues.
SURRENDERED AFTER 9Th

ment regarding the refundinf and redemp-
tion of the four per cent fonds of the
funded loan of 1907:
| Public notice is hereby given to tho
owners of United States registered and
coupon bonds of the four per cent funded
loan of 1907, that the Secretary of the
| Treasury will receive on anu after April
6 and before June 80, 1907 any of the
bonds of the said loan to an amount not
| exceeding S5O,O0O,00O for refunding under
! provisions of section II, of the act of
March IA, 1900 entitled An act to de-
fine and find the standard Of value to
maintain the parity of all forms of money
issued or coined by the United States to
refund the public debt and for other.
! purposes.
1.-THE residue of the bonds Of said loan,
after the refunding hereby provided for,
will be reserved for redemption on aud
after July 2, 1907, and the bonds con-
stituting this residue are hereby called
for redemption, and will ceas4 to bear
interest on the second day Of July. 1907.
"The bonds of tho loan abave men,
toned may be surrendered on md after
April g. and will be. received at valua.
ton equal to their present worth ia
yield an income of IA per cent per an
mum. and like amounts of United States
registered or coupon bonds bearing in
! terest at the rate of per cent per an
mum will be issued in exchange therefore
at a premium of three per cent.
Effect Exchange.
! ITO effect the exchange the nutstand-
| ing bonds should be surrendered 10 tho
! Secretary of the Treasury in accordance
| with the terms of this circular. they
will be accepted in order TO lirfender
| them to him and new heud2 nfa. sifs in-
flresf at me rate VI svq sti ssgr per
annum will be issued IN the same, in
! lieu thereof
Bonds held by the treasurer of the
United States held in trust, may be sur
rendered by letter addressed to the Sec
rotary of the Treasury.
THE priority of Issue of the new bonds
will be determined by the date of the
receipt of the Secretary of the Treasury
of the outstanding bonds, or the papers
representing the same, provided that the
| bonds or papers not in proper condi-
ton for such surrender as set forth here
after III this circular. IF any correction
is required, the priority of the bonds to
| be issued will take date from the receipt
| and acceptance of corrected bonds or
papers at this office.
ANY registered bonds forwarded should
be assigned to the Secretary of the Treas
ury. for exchange into two per cent
| bonds.
''All the bonds surrendered for refund
| ing should be accompanied with a remit
| tance of cash bankabIe funds made
! payable to the order of the treasury of
the United States. equal to the premium
of per cent, which Is charged for the 2
| per cent bonds. When the bonds are is
| sued, the amount found due the owner
| on account of present worth of the per
! cent bonds to yield an income of 2A per
cent per annum, plus the difference In ac-
crued interest between the two classes
| of bonds from April l, 1907, to date of
exchange will be paid to the owner by
| check drawn in his favor by the treas
urer.
Denominations of New Bonds.
'The new bonds will be issued in de-
nominations as follows: Coupons s50 $780,
$500, $1,000.
Registered $50. 800, $500, $1,000, $4,000, &c.,
| 600, $4,000, and in order that they may be
uniform as to maturity, with the per
cent consols of 1890 now outstanding, they
will be dated April ], 1900, but interest
thereon will begin April l. 1907.
BLANK forms of applications for the
exchanges herein authorized and blank
resolutions for use by institutions have
been prepared by the department, and
may be obtained on application to the
Secretary of the Treasury.
Bonds received for refunding after the
limits of $4,000, 600 shall have been reached
will be held for redemption July 2, 1907,
or will be returned as the owners may de-
sire. In either case, the premium above
provided for will be promptly returned to
the owner of the bonds.
1.-THE circular of March IA, 1907, pro-
viding for the redemption of $25000,000 of
the per cent bonds of 1907 with in
terest to July !, will remain In force until
that amount of such bonds shall have
been received
GEORGE B. CORTELYoU,
Secretary"
The result of refunding $780, per cent
bonds of 1907 under this circular is stated
as follows:
Cost of $780, 2 per cent bond, on April
10: Face value and premium at 3 per cent,
s103 accrued interest to April 10, .O5. Total
cost, $1O3.05.
Present worth of 4 per cent bonds,
s100 80. Accrued interest to April 10, 10.
Proceeds of fours. 500 40.
Cost of 2 per cent bond (premium),