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Printed forms for proposals, with regulations to be observed, will be furnished at this office.

THOMAS HILLHOUSE, Assistant Treasurer U.S.

The regulations and form of proposals referred to in the notice are as follows:

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Purchase of bonds. Proposals must be for not less than five thousand dollars, and must state the kind of bonds offered, whether coupon or registered, and of what loan and issue.

Proposals must specify the price desired, in currency, for the principal of the bonds only, without regard to the accrued coin interest which will be paid on purchased bonds to the date of purchase.

The payment will be in United States or national bank notes, as the convenience and condition of the Treasury may warrant.

The interest on the purchased bonds will cease from the date of purchase. Bonds purchased must be delivered, in all cases, the day

, following the award. In case of failure to deliver the bonds within the time specified, they will be purchased in the open market for account of the sellers.

Bonds will be received at this office and paid for, subject to examination by the Department at Washington, and if rejected the sellers will be required to substitute other acceptable bonds.

Bonds rejected by the Department as counterfeit, or for fraudulent alterations or transfers, of whatever nature, will be retained, without prejudice to the right of the Department to require the substitution therefor, by the seller, of other acceptable bonds.

Proposals must be plain, specific, and free from any erasures or alterations likely to lead to misunderstanding.

Proposals adverse to the interest of the Government will be rejected.

Each proposal must contain a certified check for five per cent. of the amount offered. When proposals are rejected, the checks will be returned as soon as the awards are determined

upon. If proposals are accepted, the checks will be returned on completion of the delivery of the bonds.

In all proposals for the sale of bonds, it must be distinctly stated that they are made subject to the foregoing regulations and conditions,

Suitable forms will be furnished on application at this


Sales of gold. Proposals must be for sums not less than five thousand dollars.

Payment may be made in lawful money or three per cent. certificates.

Each proposal must contain a certified check for five per cent, of the amount bid for.

Proposals adverse to the interest of the Government will be rejected.

The proposals will be opened at 12 M. on the days announced for purchases and sales.

The right is reserved to accept more or less than the amount advertised for, either of bonds or gold.

Form of proposal.

Form of proposal.


New York. SIR: In accordance with the terms of your advertisement, and subjected to the annexed conditions, the following offer

is submitted. Very respectfully.

mines amount of sales and pur

Proposals when opened are immediately telegraphed to the Secretary deterSecretary of the Treasury at Washington, and the amount to be sold or purchased on each occasion is decided by him chases on each and telegraphed back to the Assistant Treasurer, who announces the same at once.




In the bonds of the United States a distinction is made Distinction be

“ between “redeemable” and “payable.” They are “re-tween an deem.

able" " deemable" when the Government has the option to pay able." them or to let them remain outstanding with the interest running thereon, and "payable” when they are fully matured and payable on presentation at the Treasury, at which time they cease to bear interest. Some bonds are redeemable at the pleasure of the Government after a date fixed

Payınent of ma. tured bonds.

bonds for re

therein, and some between certain stated times at the expiration of which they become payable, and others are payable at a fixed day certain, as stated in the account of the several outstanding loans in Chapter I.

When the principal of any bonds becomes payable, either by maturity of the bonds or by reason of their being called in for redemption, they are paid only by the Treasurer of the United States at Washington, to whom they must be forwarded, and who pays the same in coin or in coin checks on the Assistant Treasurer at New York city, as the parties

presenting the bonds desire. Calling in 5-20 The act of July 14, 1870, chapter 256, for refunding the

national debt, makes the following provisions for calling in demption.

the five-twenty bonds for redemption:

Sec. 4. And be it further enacted, That the Secretary of the Treasury is hereby authorized, with any coin in the Treasury of the United States which he may lawfully apply to such purpose, or which may be derived from the sale of any of the bonds, the issue of which is provided for in this act, to pay at par and cancel any six per cent. bonds of the

, United States of the kind known as five-twenty bonds, which have become or shall hereafter become redeemable by the terms of their issue.

But the particular bonds so to be paid and canceled shall in all cases be indicated and specified by class, date, and number, in the order of their numbers and issues, beginning with the first numbered and issued, in public notice to be given by the Secretary of the Treasury, and in three months after the date of such public notice the interest on

the bonds so selected and advertised to be paid shall cease. Payment of frac- By the first three calls under this law the three months tions of coupons notice fixed for redemption of the bonds expired before the

coupons thereon for the current six months became payable, so that to each bond there was one coupon upon which only a fraction of the nominal amount was due. These coupons are often detached by the holders of the bonds and purchased by dealers at their face value without either party noticing the fact of the bonds being called in for redemption.

This must occur in like manner in future calls, and in order to prevent persons from being defrauded by such errors, and to save the rights and equities of all parties buying and selling coupons, the Secretary of the Treasury has made the following regulations:

When coupons, detached from bonds that have been called in for redemption, are presented for payment, the Department will pay such portion of the interest specified in such coupons as had accrued at the day fixed in the call for the redemption of the bonds, and no more, unless the party presenting them claims payment of their nominal value, in which case the Department will retain the coupons until the bonds from which they were detached shall have been presented, and the conflicting claims adjusted.

When a called bond is presented for redemption, from which a coupon, maturing after the day fixed in the call for such redemption, shall have been detached, the nominal value of such coupon shall be deducted from the sum due upon the bond, unless the coupon shall have been paid as above; the sum thus deducted to be retained to await the presentation of the coupon and a settlement.

The bonds of the Funded Loan, all of which are redeem- Calling in ani able at the pleasure of the United States after a fixed time, Of Funded Loan

payment of bonds when called in for payment, are required by law to be called to begin with in reverse order to the five-twenty bonds; that is, beginning with those last issued and numbered, so that the bond first issued will be last paid. In other respects the same rules apply alike to each class of bonds. For the law see page 9.

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bonds last issuede




On the first day of each month the Secretary of the Treas- Contents of

monthly debt ury publishes a complete, carefully prepared, and thoroughly accurate statement of the whole public debt, as it appears upon the books of the Department on that day, setting forthFirst. DEBT BEARING INTEREST IN COIN,

under which is given the title of each outstanding loan not matured, dates of acts of authorization, rate of interest, when the principal is redeemable and payable, times of payment of interest, amount of registered bonds, amount of coupon bonds, total, interest due and unpaid, and accrued interest.

Second. DEBT BEARING INTEREST IN LAWFUL MONEY, including the three per cent. certificates, navy pension fund, and certificates of indebtedness of 1870.

Third. DEBT ON WHICH INTEREST HAS CEASED SINCE MATURITY. Under this head are included the balances of all loans matured or called in for redemption and not presented for payment, specifying each by the title of the loan, except those matured prior to 1837, which are combined in one item.

Fourth. DĖBT BEARING NO INTEREST, giving the amount of United States notes, fractional currency, coin certificates, certificates of deposit, and unclaimed interest.

To which is added a RECAPITULATION, with a statement of the amount of coin and currency in the Treasury, the amount of reduction of the debt during the preceding month and other periods of time, and an account of BONDS ISSUED TO THE PACIFIC RAILWAY COMPANIES.

This monthly debt statement is printed on sheets and forwarded by mail to all journalists, bankers, brokers, and other persons in this country and Europe who request copies, or who are known to desire them, as well as to Government officials at home and abroad, for distribution, and is so extensively circulated throughout the United States that every citizen may easily know each month the exact condition of the national debt.

Circulation of monthly debt statement.

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