The Vermont transcript. [volume] (St. Albans, Vt.) 1864-1870, 1864-08-19

will finally have returned TO yon only
the same Kind Of money you would re-
ceive from the Government. and less
OF it. IF you invest in this loan. YOU
have no trouble. If there is no Ma
tional 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 n most convenient
form of remittance TO his city cores
pendent If you wish TO borrow nine
ty 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 q fraction of cost
and interest Mt any moment. 1t will
be very handy to have in the house.
ITS coNvERTIBIIITY INTO A SIX PER CENT
BOND
Here comes the advantage that must
not be lost sight of. AT the expiration
of three years a holder of the notes of
the 1880 loan has the option of accept
ing payment in full or of funding his
notes in a 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 pre-
MUM of about eight per cent in the
New York market, and have sold at
100 to-day July %. Before the war,
L. 5. six per cent. stocks sold Mt a
much higher ratc-and were once
bought up by the I. 5. Treasury under
special act of Congress ut a premium
of not less than twenty per cent. There
is no doubt that this option of CONVEX
sion is worth Mt least two or three per
cent. per annum TO the subscriber tc
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 premi-
um that fully proves the correctness Of
this statement.
ITS EXEMPTION FROM STATE or MUNICIPAL
TAXATION.
But from aside from all the advan.
tages we have enumerated, a specia
Act of Congress erempts all bonds anc
Treasury notes from local tdrdtion. Or
the average this exemption is worth
about two per cent. per annum, ac
cording to the rate of taxation in va
rious parts of the country. Can great
er inducements be asked for than thos,
we have enumerated?
The Secretary of the Treasury hai
been told that he must "b1y MONEY a
/ the highest rate necessary to commanC
G." that he should sell his obligations
''for what they would bring, so as tt
lead the market; but the Secretar,
will do no such thing If Shylocl
! bought bonds at 80 in August II,
would demand concession of anothe,
4 ten per cent. in September, and TWEEN
4 ty in October, until he would finall,
4 offer to lend only the interest and keel
4 the principal. If Government securi
ties are worth anything, they are rich
" worth all their face calls for in gold
4 and the country is not so poor in spir
it or in purse as to submit to any sucl
sacrifice as Shylock demands. There
is but a limited supply of money-seek
ing investment at any time, and thu
Government offers to pay literally TO
its use AT the rate of seven and three
tenths per cent. per annum, to sa..
! nothing of the collateral advantages
it is the strongest borrower in tn
market, and every feeling Of interest
as well as patriotism and duty, shoul'
induce our readers to invest in it
loans