Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1864-08-05
From the n. Y. EIaminer.l
The 7.3O Government Loan.

Many Of the advantages of this loan are appa-
rent on their face. but there are others that will
be best understood after consideration. Among
them are,
Irs 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 cspitals-and they hold
them as the very best and strongest investment
they could possibly make. lift were possible to
contemplate the financial failure Of the Govern
ment, no bank would be any better or safer
Savings banks that allow their depositors but
FIVE per cent. can only pay interest or principal
in greenbacks notes of State banks. Banks
of issue and discount can not ask or get anything
better than Government paper in payment of
customers notes, and they prefer 1t 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 u
s. Treasury becomes a SdriHgs bank for the
people. There are none stronger-none more
solvent, and not one pays so 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.
Irs LIBERAL lSTEREsI.-The general rate Of
interest is six per cent, payable annually. This
seven and three-tenths, PAYABLE semi-Gnnudi-
%. 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. aud less of it. If
you invest in this loan, you have no trouble. If
there is no National bank at hand, any banker
will obtain it for you without charge, and pay
you the interest coupon at the end OF SIX months
as a most convenient form of remittance to his
city correspondent. If you wish to borrow nine
" cents on the dollar upon it,you have the high
est security in the market to do it with. If you
wish to sell il will bring within q fraction Of /
cost and interest at any moment 1t will be very I
handy to have in the house
Irs COMPATIBILITY INTO SIX PER CENT. 4
BosD-Here comes an advantage that must not |
be lost sight Of At the expiration of three years
holder Of the notes Of the 7-30 loan has the OPP
ton of accepting payment in full or of funding
his notes in q six per cent. gold interest bond,
the principal payable in not less than five nor
more than twenty years from its date as the
Government may elect. For SIX months past.
these bonds have ranged at an average premium
of about eight per cent in The NewYork market,
and have sold At 100 to-day (July 2e). Before
the var, U. s. six per cent stocks sold at much
higher rate-snd were once bought up by the
q. 8. Treasury under special act Of Congress at
. premium Of not less than 20 per cent. There
ID no doubt that this option Of conversion is
worth II least two or three per cent. per annum
10 the subscriber TO the loan. thus increasing the
lctual rate Of interest to about ten per cent
Notes of the same class issued three years ago,
ne now selling at . premium that fully proves
hs CORRECTNESS Of this statement