Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1864-08-20

e8S THE GOVERNMENT LoANs.-We call
attention to the following article from the
NeY York E9aminer, in relation to the new
7.30 Government loan called for by the Sc
cretary of State. There can be no safer or
better investment than this loan affords
The s-Je Government Loan.
Many of the advantages of this loan are
apparent on their face, but there are Others
that will be best understood after considera
tior. Among them there are.
Irs ABSOLUTE SECURITY.--Nearly all ac-
tive credits are now based on Government
securities. Banks of issue and Saving
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 Gov
ernment, no bank would be any better or
saier.-Savings Banks already have large
part of their assets invested in Government
securities. AS rule they allow but five
per cent. interest, and can only pay princi
pal or interest in greenbacks or bills of State
| Banks,-tOr every note or bond held by
| them and due before the resumption of
specie payments is payable in Government
legal tender paper; Banks of issue and dis
count can not ask or get any thing better in
payment of customers notes, and they pre-
fer 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. 5. Treasury
becomes q Savings bank for the people
| There are none strongcr-none more solvent
and not one that pays so literally for the
use of money. You may deposit fifty dol
lars or fifty thousand. The more you put
in, the more you will aid and strengthen
Government, and the more valuable will
be the remaining currency of the coun-
try.
It's LIBERAL INTEREsT.--Thc general
rate of interest is six per cent, payable an
nually. This is sever and three .tenths, pay
able scmiannually. If you lend or mort
| gage, 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 ofmoney you would receive
trt IN the Government; and less of it. II
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
renaissance to his city correspondent. If
you wish to borrow ninety cents on the dol
lar upon it, you have the highest security
in the market to do it with. Il you wish
to sell, it will bring within fraction of
cost and interest at any moment. 1t will
be very handy to- have in the house.
IT'S CoNvERTIBILITY INTO A SIX PER CENT.
BOND.-llCre comes an advantage that must
not be lost sight of. At the expiration of
thee years holder of the notes of the 7-30
loan has the option of accepting payment in
f,1l
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 rast, 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 (July 2S). Be-
fore the war, |. 5. six per cent. stocks sold
at Il much higher rate-and were once
brought by the L. 5. Treasury under spe-
cial act of Congress a: a premium of not
sless thaMtwcpty per cent. There is no doubt
THAT t}siS 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 at a premium
that fully proves the correctness Of this state
ment.
It's EXEMPTION FROM STATE OR MUNICI-
PAL TAXATIoN.-But aside from all the ad-
vantagcs we have enumerated special Act
of Congress cXcmpts all bonds and Treasury
notes from local taxation. On the average
this eXemtiOn in various parts of the cOun-
try. Can greater inducements be asked for
than those we have enumerated!
The Secretary of the Treasury has been
told that he must "bny alOaey at the highest
rate necessary to command it; that he should
sell his obligations "for what they would
BRING so as to lend the market; but the
Secretary will do no such thing. If Shy
lock bought bonds a: 90 in August, he
would demand concession of another ten
pre- cent. in September, and twenty in Oc,
tober, until he would finally offer to lend
only the interest and Keep the principal
If Government securities are worth anything
they are richly worth all their face calls fol
in gold, the country is not so poor in spirit
or in purse rs to submit to any such sacri-
fee as Shylock demands. There IS but q
limited supply of money seeking investment
at any time, and the Government offers to
pay literally for its use. AT the rate OF
seven aud three-tenths per cent. per annum
to say nothing OF the collateral advantages
it is the strongest borrower in the market
and every feeling OF interest, as we'll II,
patriotism anu duty, should induce oul
readers to invest in its loans.