, 1869-05-13
MONETARY AND COM MMERCIAL
MONETARY.

.... "WEDNESDAY EVENING, March T.
The notice Of The Secretary OF the Treasury, liz
Wing proposals through the Assistant Treasurer
At New Itrk for the sale to the government o.
as' bonds 10 the amount Of sl,ooo, 600. specifies
mat payment for them Is to be made m currency,
md the Proposals to be made TO sell the bonds
nas, that IS including the accrued interest," tuat
as thc5 hare n!wars been quoted In the market
TO f6ts Last part Of the specifications New York
journal a axes, With good reascA We think. an Oh
eee.ioo, art nrges tEatt..A: Secretary change the
node o: n.aktnl the hid, that the bid shall be TO
seH Tue bond alone without The accrued interest,
or Fnseer that the seller shall get the accrued L.
II rest IN addition to the price Of tho bond The
oovcl in having the Secretary make the change
10 Il auSc the present custom Of qupsing bonds
nat which alwass requires a complicated
calculation on the rsH Of a would-ec purchaser to
aad ont which ere the ehcarest For instance:
The lsGts, which are quoted NJ ll1t, to-day, have
accrued Interest since Jaaualy i, equal to nearly
IL per cent which makes the market price for the
bond Itself really mas: while In The case Of fht
Old taa- the quotation for which to-day Is 11e,.,
feerr IL only accrued tlnee the lat Of MAI In
cuded ~ that the price OF The bond isssf IA really
6ho1e over 11s's. The present mode OF quoss-
Ton was % some extent The unavoidable conse-
quencc o! the manner Ia which the bou,is were
ISt on the market when the government sall
them. though It w4s aroided IN the case o{ The
i-sos, Which were alWays qunteI 1t price for the
nctc IN addition to the Interest. II such
change In The public custom Of quot
ting United States bonds could he accom-
risael it wuulu render qpotat,ons much
N 1rr smile ard ~pull show al : glance which
ba1tls re- ~ bore the lowest price. The advertise
nent ef he sccrc1ar! tnsii,ng proposals 10 sell
buds does not specify any particular se.ies Of
o-ecs hu: TIC purchases of the government would
o3c 'ufse ec ussde frum the anne Handl oint ss
those Of q private clntslst, vir with respect to
which bos.ds are the eh ,apezr, that t., which OF
then, II sept uns,i maturity, Will pay the hode.
re tecst return Esen Il the Secretary should
decide 70 destroy The bonds purchased, this viii
necessarily be the principle Oh which he should
buy, ecaus rs al! the prctt that any bondaoid,r
t,etts 81 eI.d c latd - the government, L would
save the usorr BY destroying such bonds The
pr n:ahlencss OF securitiea-she rate OF interest
br!ns eq&ai-ls governed by the length OF time
tseJ have TO run, And whether they are aaoye or
hc!oW ra:. When boah Is above par, the loas,r
II has to run the cheaper It Is, and when II Il
below rar the thotTr1 the time ls to
It's maturity the cheaper It IL, because II the bond
"a palt In full al maturity xny psoat that the
holder nay gri BY having bought 1t at q discount
Is secured IN less time The government III Its
own accounts ignores the difference in value be-
t*ccu 81 s1ceuoacka aud gold AMI In this way ,al1ng
the currency market quotations for the price Of
The eon1s7 and counting interest Al SIX Per cent,
rssaellees Of whether It Ii paM In currency or
gid VIC md that tho price Of the lstas II l1s,
being 10 Above par in Currency, nakea them II
kept until Iuaturlty-twetve JeaI@psy a return
o. the fsst Investment equal to per cent per au-
nun, while the 1866 and 1884 being At 11< to
il&k, mud having Is and - years, respectively, to
run, pay rrtusn equal to 81 per cent Per annum-
This difference holds good with reference to the
Old tondssan new bonds IN general. II calculated
on cC1ErneJ basis. ...
II. however, The nctusl gold cost Of the nrst
Investment tn the bondA be calculated. the
relative nsoaahleuess Of the old bonda
and tie lcw ones reversed. 20 that,
calculated entirely upon = gold bAais. the
lSess, II fert untl maturity, would give prods
eaaAi 70 st Per cent per annum In golt- while The
e'A ies instance, II Kept until maturity, would
ou., fas front eqoA to per cent per suuu.n In
eolo. This ser7ea 10 show why foreigners who
e*Aelaso everything Gu = gold basis, rsefer 1he
oto oonds that aturc the quickest
oue c! The evidences that wc are In direct COM
nuolcatlon hy faN With The Pacific COAST Is the
leeeila aefe u newspapers and circulars In shorter
t'ne thah We have ever had them before C1rcu-
LATE Of business houaes in ean Francisco dated tie
evening Of Ass :, snA delivered here this morn
ing. have only been eight days on the way from
city to city. In one Of these Eight drafts On New