East Oregonian : E.O. (Pendleton, OR) 1888-current, 1908-07-30
WAR BONDS MAY
BECOME AN ISSUE
SECRETARY CORTELYOU
MAY FURNISH THUNDER
Alleged Decision to Postpone Re-
demptiOn of the Three Per Cent
Paper VIII Give Democrats Chance
to Holler Bryan Himself May
Take Up the Cry.

Washington, July S0.--A new issue
may arise in the coming presidential
campaign, owing to the alleged de-
cision OF Secretary Cortelyou to post
pone the redemption Of the 3 per
cent Spanish war bonds when they
fall due day after tomorrow. 1t is
stated on good authority that Mr.. Cor
telyou, for various reasons, has de-
cided to allow the bonds 10 run on
Cor an indefinite period before re-
deeming them or refunding them into
per cent bonds. It is certain that
such course, if finally decided upon,
will result in good deal of criticism
and that the opponents of the admin
istration will not overlook the oppor-
tunity for making political capital out
Of 1t. 1t is alleged on behalf of Sec
retary Cortelyou that the bonds can
not be refunded to a good advantage
at this time and that he does not con-
slider it advisable to purchase them
for the sinking fund.
There are about S65,000,00 of the
bonds outstanding, total of nearly
5000, 100000 having been issued dur
ingthe Spanish war to run ten years,
Most of the bonds are in the hands
of the treasurer of the United States
in trust as security for the circula-
tion of national banks. To continue
them after August l will necessitate
the payment of close to S2,000,000 a
year in interest. Converted into
per cent bonds. which the secretary
has authority to do the annual inter-
est charge would be S1,5O0,0O0. Paid
off altogether the government would
be saved further interest
Bryan VIII Critlcise.
1t is regarded as practically a cer-
tainty that the democratic campaign
management, probably Mr.. Bryan
himself, will criticise the failure tc
pay off the bonds, If they should be
left outstanding after August /. Sec
retary Cortelyou's reasons for delay
ing their purchase are said to be
numerous, but the democratic crlti-
cism will be based upon the plain
allegation that the government has
plenty of cash on hand to pay them
off, thus retiring the bonded indebted
ness, and that they are continued for
the benefit of the national banks.
The working balance of the treasury
at this time is S64,000,000. That is
the various vaults contain that much
money, not in use, except to meet
daily expenditures, which are at pres
ent largely 10 excess of revenues. The
$64 100000 will meet deficits for
many weeks to come, as we'll as many
months. But the treasury has a large
available cash balance in national
bank depositaries. These institutions
now hold S13S.777,462 Of government
money, besides another S11,000,000 as
balances for disbursng officers. The
banks could be called upon without
serious detriment at this time, it Is
pointed out, for sufficient money %
pay off the per cents, IL refunding
was not considered.
Every day the treasury is making
advances out of its cash to the Pana-
ma canal, and it is simply a question
of waiting for a propitious occasion
before putting more Panama. bonds
upon the market to meet the balance
due and to provide funds for continu.
ing work.