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prescribe, registered bonds in exchange for, and in lieu of, any coupon bonds which have been or may hereafter be lawfully issued; such registered bonds to be similar in all respects to the registered bonds issued under the acts authorizing the issue of the coupon bonds offered for exchange.



The following are the rules of the Treasury Department Interest on regis. in relation to the payment of interest on registered bonds:

Payment of interest.

tered bonds.

Holders of registered stock of all loans but the funded loan where payable. of 1881, must select one of the following offices at which to receive their interest.

It is payable to the holder on application in person or by attorney.

The place of payment will be changed on notice in writing from the holder, if sent to the Register of the Treasury before the transfer books are closed.

The Treasury of the United States at Washington, D. C. Dividend offices.
The Assistant Treasury at Boston, Massachusetts.

The Assistant Treasury at New York, New York.
The Assistant Treasury at Philadelphia, Pennsylvania.
The Assistant Treasury at Baltimore, Maryland.
The Assistant Treasury at Charleston, South Carolina.
The Assistant Treasury at New Orleans, Louisiana.
The Assistant Treasury at St. Louis, Missouri.
The Assistant Treasury at San Francisco, California.
The Designated Depository at Buffalo, New York.
The Designated Depository at Pittsburg, Pennsylvania.
The Designated Depository at Cincinnati, Ohio.

The Designated Depository at Chicago, Illinois.

In case stock is transferred between the day for closing the Interest on stock dividend books and the day it becomes due, the interest is assigned while declared to the registered payee, and the purchaser must look to him for that interest.

On the funded loan of 1881, registered interest is payable by check of the Treasurer to the order of the holder or his attorney. These checks will be sent by mail, when the correct postoffice address is known, otherwise they will be held by the

transfer books

are closed.

Interest on funded loan payable

by checks.

Interest on

stocks of joint holders.

Interest not

ty days, how collected.

Treasurer until called for. They are payable, when properly indorsed, on presentation at any one of the above-named offices.

Holders of this stock should notify the Register of the Treasury of any change in their address.

Interest will be paid to any one of several joint holders, or co-trustees, executors, administrators, or guardians, but in the execution of a power to a third party to collect all must join. In case of the death of either, the survivors will be recognized as having full authority, upon due proof of such death and survivorship. The same rule will govern at the final redemption of a loan.

If the interest on registered stock of the old loans is not claimed for nine- claimed within ninety days after interest day, it will be returned to the Treasury as unclaimed, and must then be collected in person or by attorney, at the office of the Treasurer in Washington.

Dividend officers to deposit un

For the convenience of the public, powers to collect specified unclaimed interest may be made in favor of the "Chief of the Loan Division of the Secretary's office," and be sent by mail to the Secretary of the Treasury. It will then be collected, and a check for the amount will be sent by mail. Deposits of unclaimed interest should be promptly made by the several dividend offices at the expiration of the ninety claimed interest days. The certificates of deposit should specifically state why the interest is deposited, and to what loan account it belongs. If on account of several loans, the amount to each must be stated. The information must be full and explicit, and should be indorsed on the back of the original certificate, which should be at once forwarded to the Secretary of the Treasury, the depositor retaining the duplicate.

at once, &c.

Powers of attor


Powers of attorney to collect interest on registered bonds ney to collect in- are required to be in the same general form, must be acknowledged, and are subject to the rules and instructions applicable to powers to assign and transfer certificates of stock, as given on pages 59, 60.

Payment of coupons.



Coupons are paid by the Treasurer of the United States at Washington, by either of the Assistant Treasurers or Designated Depositaries named on page 69, where interest on reg

istered stock is payable, and also by the Designated Depositaries at Mobile, Alabama; Louisville, Kentucky; Santa Fé, New Mexico; and Tucson, Arizona Territory, at the option of holders.

For the regulations of the Department in relation to the payment of coupons on bonds called in for redemption, when only a fractional part of the coupon is payable, sce Chapter V.



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The Secretary of the Treasury has authority to pay, and often does pay, coupons and interest on registered stock in advance of maturity. When the time of payment is only a few days in advance, the whole amount is paid without rebate, but for longer periods of time a proportional rebate has been made. No interest is subject to rebate which is not voluntarily applied for before maturity.

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Previous public notice is always given in each case of the intention of the Government to make advance payments at any designated time.

Payment of in

terest in advance

of maturity.

The following is the law of Congress under which pay- Law for advanced ment of interest is thus anticipated, being chapter 20 of the payments. Resolutions of the year 1864:


Be it resolved by the Senate and House of Representatives
of the United States of America in Congress assembled, That
the Secretary of the Treasury be authorized to anticipate
the payment of interest on the public debt, by a period not
exceeding one year, from time to time, either with or without
a rebate of interest upon the coupons, as to him may seem
Approved March 17, 1864.







for payment of vance on rebate

coupons in ad

There is a standing order of the Treasury Department Standing order that coupons will be paid on presentation sixty days before maturity, upon a rebate of interest at the rate of six per cent. per annum in gold.

of interest.



1. Coin in the Treasury.

3. Payment and redemption of bonds.

Coin kept in the

Authority to sell gold.

-to buy bonds.

2. Sale of gold and purchase of bonds.


4. Monthly debt statement.


The coin received from duties on imports has every year been more than the amount necessary for the payment of interest on the public debt and the principal of that portion which has matured during the same period, and for other disbursements of the Government required to be paid in specie; and from seventy to a hundred millions of dollars have been constantly kept in the Treasury for several years past, under different Secretaries, as a reserve, to be used at times when the exigencies of the Government should require it.



Congress, by joint resolution of March 17, 1864, authorized the Secretary of the Treasury "to dispose of any gold in the Treasury of the United States not necessary for the payment of interest of the public debt: Provided, That the obligation to create the sinking fund, according to the act of February twenty-fifth, eighteen hundred and sixty-two, shall not be impaired thereby."

And by act of July 11, 1862, chapter 142, section 1, the Secretary of the Treasury was authorized to "purchase, at rates not exceeding that of the current market and cost of

purchase not exceeding one-eighth of one per centum, any bonds or certificates of debt of the United States, as he might deem advisable." The act of March 3, 1863, chapter 73, section 3, repealed so much of the act of July 11, 1862, and another act, as restricted the "negotiation of bonds" to market value, and if that applies to the purchase of bonds, it allows the Secretary to buy at any price.

and bonds are purchased.

It has been the invariable practice of the Department How gold is sold since March, 1869, to sell gold and purchase bonds in the open market, and only through the Assistant Treasurer at New York, on proposals invited from the public by notifications in the newspapers. Within a few days of the close of each month the Secretary sends written instructions to the Assistant Treasurer at New York as to the amount of gold to be sold and bonds to be purchased during the then next month, specifying the dates of purchases and sales, and the amounts of each.

The purchase of bonds always takes place on Wednesday and the sale of gold on Thursday, so that currency may be paid out of the Treasury for bonds before it is required for the payment of gold purchased.

The Assistant Treasurer publishes in the newspapers a Public notice. notice inviting proposals in the following form, only vary

ing the dates and amounts each month according to the direction of the Secretary:


NEW YORK, June 3, 1872.

During the month of June, 1872, I shall, by order, receive bids for gold, and offers of bonds as follows:

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A certified check for five per cent. of bid or offer must be deposited therewith. Proposals will be opened at 12 o'clock, noon, each day specified. The Treasury may, at its option, accept offers of bonds or bids for gold in excess of the amount advertised for.

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