Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1867-04-25
Tho .ttir state LOnH-- The state
T'f-faeuru Ntrindff.

Treasury S,rindfe.
II seems, says the llollidaysburg
Standard, that 'loyap sharks who
were engaged during the continuance
of the war in swindling the United
States Government, finding that their
occupation was ended In that direct
ion, cast about for a new field to oper-
ate ina fresh pigeon TO pluck. The
old State of Pennsylvania seems to
have struck their fancy and straight
way they 60 to their "loyal" friends
in the Legislature, and induce them
TO create new loan OF S23, 100000 at
six per cent. interest to pay that much
of the present debt, which only bears
fDe per cent. interest, and insert Il pro
viso that will permit the new loan to
be taken up with the old bonds. This
is nice little arrangement a par ty
of these "loyal" fellows first 60 into
the market to buy up all the old loan
they can get, at about 80 cents on the
dollar, and then, as soon as the new
loan has been taken, presto, the old
bonds are worth from one to two per
cent. premium. Tax payers, that is
the way your hard earnings are filch-
ed from you, through the State Treas
ury. We hope the people will soon
get enough Of the rule Of these "loy-
al fellows.
In referring to this matter, Fernon' S
Rail Road and Mining Register, has
the following ..a1 ae..
A discussion OF public question
seems necessary to elicit the truth in
all its bearings and aspects For it
now turns out that, the old State loans,
which the preamble to the s23, 900, 900
loan act, approved I'd February, 1867,
declares Dhave been overdue and un-
paid for some time past" are not over
due. The words on the face Of the
State certificates aro-"the principal
Of which stock is reimbursable by the
Commonwealth dt dny time after the
first of July in the year 1855" Here,
it will be perceived, the Common
wealth only bound herself not to re-
deem said loans (erroneously said to
be overdue in the preamble to the act
Of Assembly, before July, 1858, and
explicitly reserved to herself the OPP
tion to redeem them subsequent to
that date, at her own pleasure.
These old loans, moreover, bear on
| ly fUe per cent interest, whereas the
new loan not only bears sir per cent.
interest, but the act creating it ex-
pressly declares that il ''shall not be
subject to any taxation whatever, for
State, municipal or local purposes"
Why, then, should the Common
wealth redeem five per cent loan free
from taxationY Why, indeed
See Section 5, Of the act of I'd Feb.
1867, which reads
"sec. 5. Any person or persons standing in the
hduciary capacity stated in the fourth section Of
this act, who may desire TO invest money in their
hands for the benefit Of the trust, may. without
any order Of court, invest the same in the bonds
authorized TO be issued by this At, at a rate Of
premium not exceeding twenty per oentum.'
This section shows that it is the ex-
pectation of the successful bidders for
the new loan TO work it up to a high
price above par in the market; but TO
authorize the Investment Of trust funds
"without order Of court at a crate
of premium" as high as "twenty per
centum," is startling provision to
incorporate into a loan act. The
State herself, it will be seen, on refer
cnce TO the list Of bids, received Of
fers at premium Of q few mills, many
OF the offers being for par, the entire
premium being hardly sufficient to
pay advertising expenses.
The new loan being payable as well
in five per cent. loans as in cash, bid
ders for the new six per cent loan who
bought five per cent. loans under par
which of course, some of them took
care TO do-their chances for "big
thing is correspondingly enhanced.
Moreover, we assert on the best au-
thority that representatives Of foreign
creditors of the State, holders of the
outstanding but not overdue five per
cent. loans, complain that too short
notice was given between the issuing
OF the prospectus of the new loan aud
the date fixed for the opening of bids,
to allow them opportunity to become
competing bidders.
The act creating the new loan was
passed Feb. =, 1867. Proposals wero
advertised on the Sth Of February.
The bids were opened April /. Why
this "hot hastey" Was il done TO cut
off distant bidders, keep down the
rate Of premium accruing to the
State and then raise the rate of pre-
] ,,,iuno IN tho narkaf