Orleans independent standard. [volume] (Irasburgh, Vt.) 1856-1871, 1864-08-19
The 7-30 Government Loan.


Many Of the advantages of this
loan are apparent on their face, but
there are others that will be best
after consideration
Among them there are.
ITs ABSOLUTE SECURITY,-Nearly
all active credits are now based on
Government securities. Banks of
issue and Savings banks hold them in
large quantities--in many cases,
more than the entire amount of their
capitals--and they hold them as the
very best and strongest investment
they could possibly make. If it
were possible to contemplate the
financial failure of the Government,
no bank would be any better or
safer. Savings Banks already have
a large part Of their assets invested
in Government securities. As
rule they allow but five per cent.
interest, and can only pay principal
or interest in Greenbacks or bills of
State Banks,--for every note or
bond held by them and due before
the resumption Of specie payments
is payable in Government legal ten
der paper. Banks Of issue and dis
count can ask or get anything better
in payment Of customers notes, and
they prefer it to all other, for they
are compelled to redeem their own
notes in that paper as the circulating
medium next to specie in value
By the issue Of this loan the l. S.
Treasury becomes Saaiags bank
toJ the PloPie. There are none
stronger-noDe more solvent, and
not one that pays 50 literally for the
use Of money. You may deposit fifty
dollars or fifty thousand. The more
YOU put in, the more you will aid and
strengthen the Government, and the
more valuable will be the remaining
currency of the country.
ITs LIBERAL NTEREsT.-The gen.
erai rate of interest is six per cent,
payable annually. This is seven and
three-tenths. payable semi-annual'y.
If you lend ON mortgage, there must
be a searching Of titles, lawyers fees,
stamp duties and delays, and you
will finally have returned to you only
the same kind of money you would
receive from the Government, and
less oft. Ifyou invest in this loan,
you have no trouble. If there is no
National bank at hand, any banker
will obtain it for YOU free of charge,
and pay you the interest coupon at
the end of six months as a most con-
venient form of remittance to his city
correspondent. If you wish to Dor
row ninty cents on the dollar upon
it, you have the highest security in
the market to do it with. If you
wish to sell, it will bring within a
fraction of cost and interest at any
moment. 1t will be very handy to
have in the house.
IT'S CONyERTIBILITY INTO A SIX
PER CENT BOND.-Here comes an
advantage that must not be lost sight
of. At the expiration of three years
a holder of the notes of the 7-3O
loan has the option Of accepting pay
ment in full or of funding his notes
in a six per cent. gold interest bond,
the principal payable in not less
than five nor more than twenty
years from its date as the Govern
ment may elect. For six months
past, these bonds have ranged at an
average premium of about eight per
cent. in the New York Market, and
have sold at 100 to-day duly 2S).
Before the war U. S. six per cent
stocks sold at a much higher rate
and were once bought up by the U:
S. Treasury under special act OF
Congress at a premium of not less
than twenty per cent. There is no
doubt that this option of conversion
is worth at least two or three per
cent. per annum to the subscriber TO
the loan, thus increasing the actual
rate of interest to about ten per
cent. Notes of the same class issued
three years ago, are now selling al
premium that fully proves the cor
rectness of this statement.
It's EXEMPTION FROM STATE oH
MUNICIPAL TAXATIoN.--But ASIDE
from all the advantages we nave
enumerated, a special Act OF Con
gress erempts all bonds and Treasury
notes from local taratioH. On INC
average this exemption is worm
about two per cent. per annum' az
cording to the rate of taxation u
various parts of the country Osn