The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-04-26
Great Activity in Government Securities.


From tie Times.
Within the past week or ten days there has
been an unusually, and, in the regular course
of trade, we might add, an unprecedentedly
heavy business transacted in all classes of the
national stocks, at steadily advancing prices.
AT the outset of the movement, the currency
obligations OF the Government met with most
favor, especially the compound-interest notes
and seven-thrties. The former were bought
in mainly by the national banks in huge
sums, to be held as an interest.bearing legal
tender reserve. The effect of these purchases
is seen in the swift rise in the price, which
is now within the smallest fraction of par
and the whole OF the accrued interest The
seVen-thirtes have been taken out of the mar
ket, chiefly by private parties for investment
purposes, in such extreme quantities as to re-
duce the available supply to very msagre limits,
rendering quite difficult the execution of large
orders, at even the high rates now current the
highest, indeed, by about two per cent, that
these notes have ever commanded. The notes
cannot be bought in round lots to-day at less
Than l02, and the accumulated interest, which,
IN the instance of the second serles make the
absolute cost price OF each hundred-dollar note
precisely l04s. Early in December last the rul-
ing figures were 964096t, interest added. Leav-
ing aside the interest item, the actual improve
ment in this particular national security is
nearly six per cent. in less than Six months, or
about one per cent. month.
During The rapid appreciation OF the currency
interest obligations, the gold-bearing bonds
moved rather slowly, until their relative
cheapness turned the current of the enormous
investment demand in their favor. They are
new IN most request, and must continue 50 to
be, at least until they shall have reached a
point which will place them proportionately
as lIgh as the currency STOCK, all the circum-
stances of the permanency OF the investment
and the rate of interest being duly considered.
The ten-fOrty five per cent. bonds have risen
five per cent. within few weeks, being
now up to 964 to So, as against 9O5 to 81 a
month ago. The six per cents. OF 1881 Tor
the 'long sixes," as they are called IN the
street) have advanced three per cent. in
a month"; being now 1914, as against
lO4l about the middle of March. AS they have
of six per cent. per annum in coin, many
wealthy investment buyers give them the pre-
ference. The popular hve-twenties have ad
vanced two per cent. in less than month.
They are now quoted very strong at 1861, which
covers the three per cent. coin interest due
next Tuesday. AT the ruling rate OF gold, THU
six months interest Is worth and can be sole
to-day for about $3.50 IN currency Tor eacl
three dollars in coin. Deducting the currenc.
value of the interest from the absolute cost q
each hundred-dolar bond dnterest II
fraction fraction less than lOil, ex the LIST of Ma
coupon This indicates that the hvetwentie
have not, thus far, advanced as speedll
as most other public securities thoug
they are now tenaciously holding the
own in the upward movement The 6ve-twe
Ties have one element OF strength almost pee
liar to them in their extraordinary popularit
in Europe, especially in Germany as an UNI
siieht depression in their price in Frankfort al
london. IRON causes wholly temporary, and +
1ess detrimental to them, than to the competiI
pubhc stocks of the foremost States in the o
World. ii s felt that war on the continent wou
terd n vastly increase rather than serious
diminish their popularity among foreign caplt
ists as a 6rstclass, thoroughly reliable and
comparably profitable investment
our home buyers, however, DO not at presel
aeem 10 attach much Importance to the forei
news, on this point, one way or another;
they now purchase freely to hoard and not
speculative purposes. They eagerly absorb