Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1863-04-08
The New "Ffve-Pwenties" L IAN.

to the public:
-, BEREs Co, Pa, March -, 1868
JAY COOKE, Esq, United States Loar
Agent, No. III South Third Street, Phil
lphia-Dodr Sir see 10y our paper
that you are selling for the Governmen
new loan called ''five-twenties. ex
pect to have shortly few thou
sand dollars to spare, and as have made
up my mind that the Government loan,
are safe and good, and that it is my duty
and interest at this time, to put my mon
ey into them in preference over any 9th
er loans and stocks, | write 10 get infOr
nation of you as follows:
l. Why are they called the Five
Twenties ?"
=. Do you take country money or only
legal tender notes. or will check Oh
Philadelphia or New York answer fol-
subscriptions
3. Do you sell the bonds at par2
4. As | cannot come to Philadelphia
how am TO get the bonds?
5. What interest do they pay, and how
and where and when is it paid, and is. it
paid in gold or legal tender!
6. How does Secretary Chase get
enough gold to pay this interest?
Z. viii the face of the bonds be paid
in gold when due?
8. Can l have the bonds payable to
bearer with coupons, or registed and pay
able to my order?
9. What sizes are the bonds?
10. Will have to pay the same tax
on them as | now pay on my railroad and
other bonds?
IL. What is the present debt of the
Government, and what amount is it like
ly to reach should the rebellion last a
year or two longer!
u Will Secretary Chase get enough
from Custom House duties and Internal
income taxes, &c, to make it
certain that he can pay the interest
promptly?
have no doubt that good many of
my neighbors would like to take these
bonds, and if you will answer my ques-
tions will show the letter to them.
Very respectfully, S. NJ. F.
OFFICE OF JAY Cooke, SUBSCRIPTION
AGENT, la S. Third Street, Philadelphia,
March %, 1868.
Dear Sir Your letter of the Goth inst
IS received, and | will cheerfully give you
the information desired 10y answering
your questions in due order.
|. These bonds are called "Five-Twen-
ties" because they are t,0eaty year bonds,
but may be redeemed by the Govern
ment in gold at any time after five years.
Many people suppose that the interest is
only 20-lO0 percent This is mistake.
They pay six per cent interest.
oh
Ipon Philadelphia or New Yord that will
bring legal tenders are what the Secreta-
y allows me to receive. No doubt your
nearest bank will give you check or le-
al tenders for your county funds.
). The bonds are sold at par, the inter
st to commence the day you pay the
money. -
4. l have made arrangements with
rour nearest bank or banker who will
have the bonds on hand. III
lot, you can send the money to me by
express and l will send back the bonds
rec of cost.
5. The bonds pay six per cent. interest
n gold, three per cent. every six months,
N the lst day of May and November at
he mint in Philadelphia, or at any Sub
treasury in New York or elsewhere. Iii
ou have coupon bonds, all you have to
10 is to cut the proper coupon off each
tx months, and collect it yourself or give
t to your bank for collection; if you
ave registered bonds you can give your
'ank power of attorney to collect the
interest for you.
6. Congress has provided that the
'onds shall be paid in gold when due.
I. The duties on imports of all articles
rom abroad must be paid in gold, and |
his is the way Secretary Chase gets his
old; it is now being paid into the Treas
ry at the rate of $4,000 each day,
Ihich is twice as much as he needs to
'ay the interest in gold.
8. You can have either coupon bonds |
ayable to the bearer, or registered bonds I.
ayable to your order.
9. The former are in SOS, zoos, 500's, |
nd l,000s-the latter in the same |
mounts also S5,000s and l0,000's.
10. No. You will not have To pay any |
axes on these bonds if your income from |
hem does not exceed 5000; and on all
n all above 5000 you will only have to
ay one-half as much income tax as if
our money was invested in mortgages |
4
rnment bonds as first of all all other |
onds are taxed one-quarter per cent. to
sy the interest ON the Government |
onds, and the Supreme Court of the
United States has just decided that no
tate, city or county can tax Government
onds.
ii. The present bonded debt of the
United States is less than three hundred |
lillions, including the Seven-and-three- /
enths Treasury Notes but the Govern
lent owes enough more in the shape of
4egal Tenders, Deposites in the Sub
reasuries, Certificate of Indebtedness, !
c., TO increase the debt to about eight |
r nine hundred millions. Secretary
hase has calculated that the debt may
Zach one thousand seven hundred mil
ons, if the rebellion lasts eighteen
lonths longer. 1t is, however, believed
ow that it will not last six months long
r. but even if it does, our national debt
i'll be small compared with that of
reat Britain or France, while our re-
'urces are vastly superior.
u. have no doubt that the revenue
i'll not only be ample TO pay the ordina-
= expenses of the Government, and all
Ie debt, but leave at least one hundred
lillions annually toward paying off the
ebt, and that the Government will be
BILE to get out of debt as it has done be-
're, in few years after the close of the
ar.
1 hope all who have idle money will at
nee purchase these Twenty Year Bonds.
he right to demand them for legal ten
ers will end on the first day of July,
s63, as per the following authorized no
ce:
Especial Notice.-0n and after July l,
S63, the privilege of converting the pres
ut issue of legal tender notes into the
ational Six Per Cent. Loan, commonly
lied the 'Five-Twenties') will cease.
"All who wish 10 invest in the Five
wenty Loan, must therefore, apply be-
re the lst of July next.
'Those who neglect these Six Per
ent. Bonds, the interest and principal
which they will get in gold, may have
,casion to regret it.
81 am very truly your friend,