The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-08-30
The Great Loan.

The banks of the cities of New York,
Boston and Philadelphia, through their
officers and delegates, held meeting at the
American Exchange Bank on Thursday
last, for the purpose of assisting the United
States Government by lending it money.
The action resulted in subscribing one
hundred and fifty millions to the Govern
ment loan on the following terms:
SECTION /. An immediate issue to be made
by the United States Treasury Department of
Treasury notes. dated August Is, 1861, bearing
interest from that date at 7.30 per cent, to the
extent of fifty millions of dollars.
SEC. 2. The banks of New York, Boston
and Philadelphia associated to take jointly this
fifty millions at par, with the privilege OF taking
at par an additional fifty millions October 10.
by giving their decision to the Department
October and also at par fifty millions De-
cember ID, by giving their decision December
|, unless said amount shall have been previous
ly subscribed as National Loan. 1t being
understood and agreed that no other Govern
ment stocks, bonds or Treasury notes, Except
Treasury notes payable on demand, and the
Oregon War Loan,) shall be negotiated or
paid out by the Government until Feb. l, 1862.
should the associates avail of both privileges,
OF until DecemDer l0tI. 1901, SuOuiu tucy avail
of the first only, or until October Is, 1861, if
they take but the present fifty millions,-eX-
cept that the Government may negotiate in
Europe, or through subscriptions to the Ma.
tonal Loan.
SEC g. The capital of the banks of New
York, Boston and Philadelphia, and the re.
spective proportions under pro rata division
would be as follows;
Pro Rata
Proportion of
Rank an;tn E,ftu mill
New York ........ .$70000,00 S29, 100000
Boston ............. SO 100000 5,500O00
Phi adelphia. ....... l2,O00,000 5000, 900
1t is proposed that the division should be,
say to:
New York;. .............. $50 600. 600
Boston. ................ ....... $4,000, 600
Pnila0eiphla 5,OUU,OOO
The omitted sections OF the agreement
specify various minor stipulations. The
above comprises the main provisions OF the
subscription.
1t will be observed that the issue of a
Treasury circulation OF small notes redeem
able on demand is not Intertered with, as
was enormously telegraphed from New
York. TIE effect of this liberia and prompt
action of the banks Was felt on the stock
market Immediately. 1t became decidedly
irmer On the Government Securities the
two years Treasury Notes advancing rap
idly to 97a994 per cent. on the street, and
961aa96A at the Board of Brokers.
This loan is the most gigantic monetary
arrangement ever concluded in this country,
involving the amount Of $l50O00,0O0, and
giving the Government abundant OF means
to carry on the war against the rebels until
New Years. On Fri'ay last there was
placed to- We credit of Secretary Chase the
first ins cent of fifty millions, which, it is
understood, be will draw against at an aver
age rate OF million per day.
Of this great loan the New York Times
justly remarks: ..aI. ...
| And the promptness with which it has been
| taken speaks louder than cannon could possl-
bly, do in demonstration of the loyal cou; age
and determination of our people. Hall dozen
such defeats as that at Bull Run would be more
than offset by this single act. 1t VIII breatne
| confidence and courage into the hearts OF the
people. and will satisfy foreign nations that
| we are not yet ready T. surrender the govern
ment into the hands of traitors. The London
| Times can now suspend for season its solemn
warnings to English capitalists against taxing
the American loan. They haven't been asked
! to do SO yet.