The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-08-11

petition for IL Shows.
The opening of the bids on Monday last for
the new United States loan of ten millions OF
dollars reveals the existence of some curious
and instructive facts in our financial circles.
The first point that strikes us on examining
the list of bids is the discordance of opinion
amorg the leading financiers as to the market
value of United States five per cent loan with
fifteen years to run. The next point is that our
domestic bankers have higher and more hope
full estimate of the market value of the stock
than that entertained by the foreign bankers
and those who are generally supposed to hold
intimate relations with parties in Europe Bel
mont and Riggs offered to take the entire loan
at 3.77 premium, Rittenho1se Il Co. proposed to
do the same at 5, and come of the German bank
ing houees bid from rs to premium. The
award of the loan has been made at an approx
mate average Of 4.85 premium, mostly to parties
who are supposed to want it for domestic
investment. The amount of the bids was for
about four times the sum required; and we
believe this is the first time that American
capitalists have ever taken one of our
government loans, to the almost entire exclu-
sion Of foreign bankers, by outbidding them;
and the fact leads to some curious reflections
The reason Of this may be attributed to two
causes: First, the great increase Of capital
among us, and its concentration without en-
ployment at the centres oftrade. Second, the dis
credit of industrial enterprises managed by cor
porate associations as safe investments. We are
inclined to believe that the latter cause has had
more to do with the unexpected high premium
at which the loan has been taken than any other.
The accumulation of money in our bank vaults
is more owing to the temporary stagnation of
trade, and its want of employment in that d.
rection, than 10 tho accumulation Of capital
among US. Yet there is no denying that money
has largely increased in abundance among us
during the last ten years, while the facility of
procuring it has tended to stimulate the spirit
of extravaganza and bad faith that has charac-
terized many Of our Industrial associations.
To this latter reason do we attribute the evil
dent increase among us of that class of capital
which seeks safe investment rather than
high rate of interest. The fraud and deceit
which the recent financial revulsion has shown
to exist, both in the expenditure of capital and
the payment of exorbitant and unwarranted
dividends, have disguised large portion of the
minor capitalists and turned them In an espe-
cial manner from investment in railroad securi-
ties. Perhaps to the same cause may be at
tributed the apparent anomaly that some of our
State stocks command high premiums In the
market while others paying the same rate of
interest are below par. Public confidence in
these State investments does not increase so
fast as does capital and the consequence Is that
a few favorite stocks command premiums to
which they do not seem entitled by any pre-
eminent merit. II Is no doubt the pressure Of
this confidence upon our domestic bankers that
has placed them in the foremost position as
bidders for the new loan, to the great surprise
of Wall street. Each has found in the circle of
his customersa portion that prefer United States
stocks at five per cent interest TO State or asso-
ciate securities at much higher figure; and Il
is the aggregation Of these in separate bids for
the public loan that has shown the tone of the
public mind.
decomposition that Is generally entertained
that the government will come into the market
for the rest of the loan authorized by Congress
had, no doubt, an effect In keeping down the
rates Of premium bid for this one. Had IL been
definitely known that Mr. Cobb will not require
the rest Of the amount authorized by Congress,
the rates Of premium at which the present stock
would have been taken would have been much
higher than those obtained. We now believe
that the prices Of this stock will feel the effect
Of the fact so palpably put in evidence by the
offer of forty millions Of dollars when ten only
we're required and that should the Secretary Of
the Treasury find it necessary to put the balance
of the authorized loan upon the market he will
find takers for II at considerable advance on
the present rates.
TON CoRwN VS.. THURLow WEED-Hon. Tom
Corwin, the great gun of the republicans Of
Ohio, has lately made a speech, in which he
thinks that fairly adopted slave State constitu-