The Montgomery advertiser., 1907-04-03
WILL TAKE UP s5.oa0y0oo OF FUND
 ED LOAN.
Secretary of the Treasury Corteiycu Gives Out Statement of Manner In Which Securities Will Be
 Redeemed.

telyou today gave out the following statement regarding the refunding and redemption of tho four per cent bonds of the funded loan of 1907:
 Public notice Is hereby given to the owners of United States registered and coupon bonds of the four per cent funded loan of 1907, that the secre- tary of the treasury will receive on and after April 6 and before June 30, 1907. any of the bonds of the said loan to an amount not exceeding S50,0o0,0o0 for refunding under provisions or Sec tion II of the act of March 14, 1900. entitled An act to define and fix the standard of value to raintain the par fty of all forms of money issued or coined by the United States, to refund the public debt and for other pur- poses"
 The residue of tho bonds of said loan, after the refunding hereby pro- vided for will be reserved for redcmp- tion on and after July 2, 1907, and the bonds constituting the said residue are hereby called for redemption, and will cease to bear interest on the second day of July 1!97.
 The bonds of the loan above men, toned may be surrendered on and after April and will be received at a valuation equal to their present worth to yield an income of two and one-fourth per cent per annum, ana like amounts of United States regis tered or coupon bond bearing interest at the rate of two DOT cent per an- mum will be issued in exchange there for at a premium of three per cent - To effect the exchange. t..e outstand- ing bonds should be surrendered to the secretary of the treasury in accord ance with the terms ot this circular; they will be accepted for that purpose in order of surrender of them to him and new bonds bearing interest at the rate of two per cent per annum will De issued in the same order, in lieu thereof
 Bonds held by the treasurer of the United States in trust tor national bank may be surrendered by letter ad- dressed to the secreta Y or the treas ury accompanied with the treasurer's receipt, representing the bonds, to- gether} with a resolutit u 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 receipt by the secretary of the treasury of outstanding bonds or the papers representing the same. provid- ed that the bonds or papers are In proper condition for such surrender as set forth nere natter in this circular. If any correction Is required, the prior ityi of the bonds to be issued will tak1 date from the receipt and acceptance of corrected bonds or papers at this office.
 Any registered bf uds forwardel should be assigned to the secretary of the treasury, for exchange into two per cent bonds.
 All the bonds surrendered for refund- ing should be accompanied with a re- IT ttance of cash or Dankabie funds made payable to the order of the Treasurer of the United States equa. to per cent, which is charged for the 2 per cent bonds When the bonds are issued the amount found due the owner on account of present worth ot the per cent bonds to yield an in- come of 1-4 per cent per annum plus the difference in accrued interest be- tween the two classes of bonds from April 1, 1907, to date of exchange will be paid to the owner by check drawn in his favor by the Treasurer.
 The new bonds will be isued in de- nominations as follows: Coupons. $50. $100, $500. $1,o0O; registered. v.v, S10O, $500, s1.OOo, $5,o00. $lO.oOo, s6o.o0O; and in order that they may be uniform as to maturity with the ? per cent consoIs of 1880, now outstanding, they wilt be dated April 1, 1900, but inter- est thereon will begin April l, 1907.
 DldHh IOI OA oppiiSdtloli iOt bAN 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.
 Any bonds received for refunding af- ter the limit of $50.000,000 shall have been reached will be held for redemp- tion July 2. 1907. or will be returned as the owners desire. In either case. the premium above provided for will be promptly returned to the owner of the bonds.
 The circular of March 14, 1907, pro- vidng for the redemption of $25,00O," 900 of the per cent bonds of 1907. with interest to July l, will remain in force until that amount of such bonds shall have been received.
 George B. Cortelyou,
 Secretary.
 The result of refunding $l00 per cent bonds Of 1907 under this circular is stated as follows:
 Cost of $l00 ? per cent bond on April 10: Face value and premium at per cent, 103; accrued interest to April 10. SOS. Total cost, $103.05.
 Present worth of per cent bonds, $I00,39.
 Accrued interest to April 10, $.l0.
 Proceeds of As, $100.49.
 Net cost of the per cent bond (pre- mium), $2,56.