The Jeffersonian Democrat. [volume] (Chardon, Ohio) 1854-1865, 1864-08-26
.4 .r.e, From the N. Y. Examiner.
The 7.30 Government Loan, 3

Many OF the advantages of this lonn are
apparent on their face, but tbere are 9th.
ers that will be best understood after con.
sideration. Among them there are,
lTs ABSOLUTE SECURITY Nearly all ac.
tive credits are now basod on Govornment
securities. Banks of issue and Savings
bauks hold them in large quantisies-in
many cases, more than tho entire amount
of oapitais--and they hold them as the
very best aud strongest investment they
could possibly make. II it were possible 30
contemplate the financial failure of the
Government, no bank would be any better
or safer. Savings Banks already tave q
large part OF their assets invested 10 Gov
ernment securities. AS a rule they allow
but five per cent interest, and can only
pay principal or interest in greonbacks or
bills of Stale Banks,-iOr every note or
bond held by them and due before tho re-
sumption OF specie payments is payable iu
legal tender paper. Banks of issue aud
discount eau not ask or got anything better
in payment of customers notes, and they
prefer il to all other, for they arc compe Ied
to redeem thoir own notes 10 that paper asl
tho circulating medium next to specie in
value. BY the issue of this loan the u S
Treasury becomes a ,Sn@iags bank for The
proPf. There are noue strOnger--none
moro solvent, and not ono thal pays co
hberdHy for use of money, You may do.
poslt fifty dollars or fifty thousand. The
more you put in. tho more you will aid and
strengthen tho Government. aud tho more
valuable will DO tho remaining currency Of
tho country. .
ITS Liberal lNTEREsT.-The general rate
OF interest is six per cent. payable annually.
1h's is seven and three, tenths, payable
semi annually. If YOU, lend on mortgage,
there must DO searching OF titles, lawyers
Ices, stamp duties and delays, aud you will
hnaiiy have returned to you only the same
R'ha OF money you would receive from the
Government, aud loss Of II. If you invest
10 TINS loan, you have no trouble, II there
no National bank at hand. any banker
vii! obtain It for you without charge, and
pay you the interest coupon at tho end of
SIX months as most convenient form of
remittance to bis city correspondent. II
you wish to borrow ninety cents on the dol
lar upon Il, you have tho highest security
In tho market to do it with. II you, wish to
sell, II will bring within q fraction of cost
ana interest at any moment. IL will be
very handy to have iu the house.
ITS CoNvERTDILIrr INTO Six PER
CENT BoND,--IIere comes an advantage
that must no. be los. sight of. Al tine ex.
p'ra'ion OF three yesrs a holder Of the
notes OF the 73O loan has the option Of
accepting payment in full or Of funding
his notes in six per cent. gold Interest
oond' 'he principal payable in not less
Than hive nor more than twenty years
from its date as the Government, may elect
For six months past, these bonds have
ranged al an average premium Of sbou
eight per cent. in the New York market
and have sold at 100 to.day(J (July a8)
Before the war. U. s. six per cent. stock
sold at much higher ra,e--and wer,
once bought up by the U. s. Treasury
under special act Of Congress. at premi
nm oi not less than twenty per cent
There is no doubt thai this option of con
version is worth at least two or three pei
cent. per annnm 10 tho subscriber 10 th,
loan, thus increasing the actual rate o
interest TO about ten per cent. Notes o
the same class issued three years ago, ar,
now selling at a premium that fully proves
the correctness Of this abatement.
lrs EXEMPTION FROM SrArE OR MusIc
IPAL TAxATIoN.-But aside from all III,