Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1861-08-28

New York, il, coin, to pay the interest
due to nonresident bond-holders.
COULD OUR BONDS HAVE BEEN SOLD ON
BETTER TERMS IN NEW YORK?
They could not have been sold in New
York at any price until the Legislature
haabeen called together to change the law.
This is one point settled. After the
trouble and expense of another extra ses-
sion of the Legislature, what could then
have been realized for the bonds in Wall
street? 1t is not possible to give posi-
tive answer to this question, but we have
data sufficient to enable us to form an
opinion. We will, in imagination, step
into the office Of leading broker and
large capitalist on Wall street, and talk the
matter over.
BRoKER-Go morning Mr.. Wisconsin /;
| understand you wish to negotiate loan
for your State.
WlscoNsIN--Ye sir! such is the OBJ
ject of my visit to your city.
BRoKER--You have probably noticed
the price at which Z. S. 6 per cent. stocks
We're sold out this morning-83. You
will not expect to sell your State Bonds at
price exceeding that at which we can
purchase government bonds. Iowa 7 per
cents were offered this morning at 80, and
no buyers. This would be equal to about
70 for a six per cent. | suppose you do
not claim that your bonds are worth any
more than those of the State of Iowa, as
that State has always paid her interest
promptly. There is one disadvantage I'M
der which you labor in having your bonds
thrown upon tins market for the first time.
Your State is not known here. She has
not established credit with those who
deal in State bonds. The probability is,
that she would be prompt in the payment
Of her interest, but we have as yet, had no
evidence Of this. The note of man who
is known to be worth $4,000, whose note
has been frequently on the market and al
ways promptly paid, will sell much better
in Wall street than the note Of another
man offered for the first time. even though
he may be worth ten times as much as the
first one. Before his note will sell freely
fol- its full value, he must become known as
a prompt paymaster. This fact under
present circumstances, while there are
50 many opportunities for investment,
would probably affect the value of your
state bonds some or 5 per cent. at least.
WIscoNsIN-Why sir, you present any
thing but an encouraging prospect for the
speedy negotiation of our State loan.
BRoKER-True sir, very true sir, and |
am sorry to tell you that | have yet TO
mention what | fear will be the most
formidable obstacle in the way Of your
success.
Our capitalists, before making invest
ments of this kind are very careful to have
the most abundant assurance that the laws
under which the loans are authorized are
properly drawn and are strictly constitu
tional. regret TO inform you that have
the written opinion Of my lawyer that your
law is so drawn that your loan cannot be
negotiated less than par, and as no one in
this market will take it at that rate it will
be impossible for you to dispose of your
bonds here. But this is not the point to
which | was about to call your attention.
In case the law was unobjectionable there
is another difficulty. Although our capt
talists are exceedingly careful in relation to
questions of this kind, yet after all they
rely mainly upon the known character Of
the people who issue the bonds. If they
have ever shown a dispositiof to tlrow OBJ
stacles in the way OF the prompt collection
of debts, by the passage Of stay laws, by
the passage of laws rendering it difficult to
foIeclose mortgages, or any other legisla-
ton of this kind, their securities will be
but little sought after. Another thing
our folks are not apt to discriminate be
tween your different local, municipal and
railroad corp 1rations. and your State at
large. We understand them to be the
same people, and sohdt they hare done IN
one capacity, ace fear they may do IN
another.
A large amount Of bonds issued by diff
ferent railroad and municipal corporations
in your State are now held in this city
upon which the interest for many years re-
mains unpaid, and however unjust you may
regard it, that your State as State should
be held responsible for this condition Of
things, our moneyed men find il exceed
ineIy difficult to make distinction between
the different parts and the a0hots.
| fear, should you advertise your loanin
this market, you would be assailed 10 4
manner similar to that in which your neigh
boring State of Iowa is assailed in this
mornings Times, as your State IS much
more vulnerable in these matters than is
that State. Please read the article to which
| allude
IOWA BONDS.
To the Editor of the Neao York Times.
AS there is some talk Of a new loan by
The State Of Iowa to be issued soon, we
i oaId respectfully call the attention Of the
a.a,teurs Of Wall street to several city and
county bonds of the same State. Wsrefer
especislIg to the Des Moines and Henry
Counties. and TO the Burlington and Day
enpert cities. B, sides that, these bonds
were drawn according to all the require
ments OF the law. They rest also, like the
State Bonds, upon the good faith OF the
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