The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1864-08-12
The 7-30 Government Loan.

y
advertisement of the new Government Loan
We need not urge upon upon our people tn
the necessity Of finances in order to prosecute
the war; for armies connot be sent into the
field and supported while there without
liberal supply of money. The appeal which
the Sec. OF the Treasury has made to the
people, showing the urgent necessity o'
lending to the government from out their
means, has sufficiently demonstrated the im'
portance that those who have the mean:
should come forward and subscribe to this
loan. We have already published the ap'
peal to the patriotism of the people. and nOw
wish to call the attention OF the reader to
other considerations aside from any patriotic
ones, speaking on thissubjcct the N. Y. Ex
aminer remarks upon its absolute security
Nearly oil 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 il We're possible q
contemplate the financial failure OF the Gov.
eminent. no bank would be any better or
safer. Savings Banks already have large
part of their assets invested in Government
securities. As u rule they allow but FIVE pei
cent interest, and can only pay principal or
interes, in greenbacks or bills OF State Banks
for every note or bond held bv them and
due before the resumption of specie payments,
is payable in Government legal tender paper.
Banks OF issue and discount can not ask or
GET anything better in payment OF customers
notes, aud they prefer il to ali other, tor 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. ) Treasury becomes SGrings bank
for hs people. There are none stronger
none more solvent, and not one that 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 viii be the remaining currency Of
the country.
lrs LIBERAL ISrEREsr.-The general rate
of interest is six per cent, payable annually.
This ~ seven and three-tenths, payable semi
annually. lfyou lend on mortgage. there
must DO searching of titles, lawyers fees,
stamp duties and delays, and you will finally
have returned to you only tho same kind Of
money you would receive from the Govern
ment, and less of it. If you invest in this
loan, you have no trouble. II there is no
National bank at hand, any banker will OBJ
tain it for you without charge, and pay you
the interest coupon ut the end OF six months
rs u most convenient form OF remittance to
his city correspondent. If you wish to bor-
row ninety cents on the dollar upon it, you
have the highest security in the market to do
il with. II YOU wish to sell, it will bring
within fraction of cost and interest at any
moment. 1t will be very handy to have in
tho house.
ITs CONVENIENTLY INTO SIX PER CENT.
BoNp.-Here comes an advantage that must
not DO lost sight of. At the expiration OF
three years q holder of the notes of the 80
loan has the option 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 Eve nor more than twenty years
from its date Us the Government may elect.
For six months past, these bonds have rang
ed at an average premium OF about eight per
cent. in the New York market, and have
sold at 100 to-day (July 2S.) Before the
war, U. S. six per cent. stocks sold at q
much higher rate-andwere once bought up
by the U. 5. Treasury under special act of
Congress at 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 sub
scriber 10 the loan, thus Increasing the actu-
al rate Of interest to about ten per cent
Notes of the same class issued three years
ago. are now selling at a premium that fully
proves the correctness OF this statement.
Irs EXEMPTION FROM STATE OR MUNICIPAL
TAxArioN-But aside from all tho advanta-
ges We have enumerated, special Act OF
Congress exempt, all bonds and Treasury
notes from local taratioa. On the average
this exemption is worth about two per cent,
per annum, according TO the rate OF taxation
In various parts OF the country. Can greater
DO asked for than those we have
The Secretary Of the Treasury has been
told that he must "buy money at the highest
rate necessary to command it," that he
should sell his obligations "ior what they
would bring" 60 us to lead the market; but
the Secretary will do no such thing. II Shy
lock bought bonds ut 30 in August. he would
demand concession OF another ten per cent.
in September. and twenty in October, until
he would finally Offer to lend only the inter
est and keep the principal. II Government
securities arc worth anything, they are richly
worth all their lace calls for in gold, and the
country is not so poor in spirit or in purse
rs to submit to any such sacrifice as Shylock
demands. There is but u limited supply OF
money seeking investment at any time, and
the Government offers to pay literally for
its use. At the rate OF seven and three
tenths per cent. per anuum, to say nothing
of the collateral advantages. 1t is the strong
e.. borrower in the market, and every feeling
OF interest, as well as patriotism and duty,
should induce our readers to invest in its
loans.