Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1864-08-19
[From tbs ". y. E1qA.iaer.l
The 7-so Government Loan.

Many Of the advantages of this loan are appar-
ent ON their face but there are Others that will be
misunderstood after consideration, Among them
there are,
Irs ABSOLUTE SECURITY al active
credits are now based on Government securities
Banks of issue and Savings banks hold them in
large quantities-iu many eases, 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 Govern
ment, no bank would be any better or safer.
Savings Banks already have a large part Of thcir
assets invested in Government securities. As
rule they allow bat 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 tender
paper. Banks Of issue and discount can not ask
or get anything better in payment of customers
notes and they prefer it TO all other, for they
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 Z. S. Treasury be-
comes a iSarmgs bank for the 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 ald
strengthen the Government, and the more valua-
bic will be the remaining currency of the country
ITs LIBERAL INTEREsT.-The general rate of
interest is six per cent, payable annually. Thus
is seven and three tenths, payable SeBliGnaatdit
Ii you lend on mortgage, there must be search
ing titles, lawyers fees, stamp duties and delays,
and you will finally have returned to you only the
same Elad OF money you would receive from the
Government and less of it, If you invest in this
loan, You have no trouble. Hthere is no Nation
al bank at band any banker win 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
Ii you wish to borrow ninety cents on the dollar
upon it, you have the highest security in the mar
ket to do it with If 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.
1Ts CoNVERTBILITY INTO A Six PER CENT
BOND. comes an advantage that must not
be lost sight Of At the expiration of three years
a holder Of the notes Of the 7-30 loan has the OPP
ton OF accepting payment in full, or of funding his
notes in SIX per cent. gold interest bond, the
principal payable IN not less than hve nor more
thaH twenty years from Its date as the Govern
meRt may elect. For SIX months past, these
bonds have ranged lat an average premium of about
eight per cent ia the New FORK Market and have
sold at l99 to-day July 28). Before the war IT,
S. six per cent stocks sold at a mnch higher rate
--and were once bought up by the Il. s. 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 annm to the subscriber TO the
loan, thus increasing the actual rate OF interest to
about ten per cent, Notes of the same cass is
sued three years ago, are now selling at premi-
un that fully proves the correctness of this state
meIts
Ifs EXEMPTION FROM STATE OR MUNICIPAL
TAxAuoN.-But aside from all the advantages we
have enumerated, special Act OF Congress er-
eDapfs all bonds and Treasury notes from local ta-
atton. 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 inducements be asked for than those
we have enumerated
The Secretary of the Treasury has been told
that he must buy money at the highest rate ne
cessary to command it; that he should sell his OBJ
| legations for What they would bring, 70 as TO
lc1a the market hHs the Secretary VIII do no