The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-08-13
The Increasing Activity of Government
Securities.


From the Times.
The business the last week at the New
York Stock Board, and through the COM
mission houses, in Government securities, has
been extraordinarily heavy, stimulated in a
great degree by the highly favorable exhibit of
the national finances officially published on the
Sd instant, indicative of liquidation of over
$47, 7,OOO 900 of the aggregate indebtedness within
the past two months, and of over S124, 900, 900
during the past twelve months. The business
in the public funds has been mainly for home
investment account, save in the instance OF the
5.2Os OF 1862, which have been eagerly bought
for export and which domestic holders have
freely exchanged at an average profit OF .wo-
and-ahalf per cent on the 5-20S of 1865. The
latter bear the same liberal rate of coin interest
as the earlier issue, and have absolutely nearly
three years longer to run before the redemption
option OF the Government shall have become
operative. Hence they are deemed by rapidly
increasing NUMBER OF home buyers as the bet
ter investment OF the two. Large conve rsions
OF August 7'30s into the new 52Os have been
made during the week.
This (the tirst) issue OF the Seven-thirties,
which will mature in August, 1861 is the only
one on which, by IA concession OF tue Treasury
Department, the convertible privilege is imme
diateIy available, and III this instance only, on
an equalization OF interest, making the cost of
the EIvc-tWenues, issued IN exchange for the
Seven thlrties. about the same rs Tne ruling
rate for the bonds In the open market Know
ledge OF this fact induces many holders of the
August SeYen-JhTtles TO sell them out absolutely
and buy in the new Five-tSenues through the
commission houses, thus avoiding the delay
and trouble OF the conversion process. The
Flye-tWenties of 1860 sold Friday at l070ll07l,
while the 1862 five tWentes were dealt IN at
O9sWlO96. The foreign houses have been taking
unusually large amounts of the latter Tor eX-
fDnT haoNr hoGn tpr i1
pose ale only temporarily prevented by the de-
preston in the lOrelgn exchange market and
the difficulty experienced In the negotiation of
bills IN the face OF the liberal supply OF good to
prime drafts available. The supply OF the 5.20s
OF 1862 is unusually light, and even the actual
exchanges OF these bonds Tor the latest issue by
domestic investors is insufficient to keep the
stock up TO tie requirements of foreign buyers,
who have to make steady advances in their bids
10 bring QUO the bonds which they need for
shipment. On all issues of the 52Os there is the
accrued com interest at the rate OF SIX per cent.
per annum, since May |, worth with gold at
l49, over $2'G0 per cent in currency. The bonds
yield an annual increase of nearly nine per cent,
on the basis OF the ruling price of gold.
The six per cents OF 1881 have become eX-
tremely scarce III tue open market and no
round lots could be purchased without causing
urtner rise in the price, which now stands at
llO8, or less than one per cent. higher than the
5-20s OF 1862. The margin between the going
rate for these two classes OF national stock is
very rarely so narrow. The 1881 bonds are an
absolutely ftteen,year six per cent coin interest
obligation, aDd as such, are generally considered
by Tar the best OF all the public securities as
an investment. They are mainly held at
home. The Tenorties touched par on
Thursday, on brisk demand, which was
only partially satisfied as the bonds We're
not sufficiently abundant at the current
figures. They have not been as high as at pre-
sent Tor about year and a half. A half years
coin interest at the rate OF five per cent. per
annum, VIII be due on them by Septem-
Der l. The September coupons are even
now be marketed through the Government
commission houses at about lag per cent, or
only per cent less than the price OF gold.
Some OF the large holders of the coupon Ten
Fortes are avaIling themselves of this oppor-
tunIty, and turning the proceeds OF their coin
interest into public stocks, seemingly giving the
preference to the later issues of the Five-twen-
lies ana Seven-thirties. Altogether, the presenC
market for the Government interest-bearing OBJ
legations is the best that has been available since
the early spring OF 1865 And, as money is a
drug on the market at 10 per cent. on call,
and lenders are unable to temporarily place
their balances more adyantageo the chances
are that the public funds will even further i'm
prove, until they shall have reached the same
footing, as regards price, as other stocks, and
bonds which bear no more liberal rate of cur
rency interest.