The Hawaiian gazette., 1870-04-13

RUSSIAN BoSDs.-Tbe remarkable avidty with
which Russian Government securities have been sought
in European markets demonstrates two very impor-
points Ist The confidence felt in the honor of
Russia. And, ID. 1t develops the fact that immense
peouniary have been long lying idle and
productive in European markets. Russia asked for
loan of fl2. 600, OOo and applications have been
eeiyed the extent of flOO 600 eco. The Roth
ehlds have been terribly bored by the great number
Of applicants, and late-eomers represented be-
ing quite disPleAsed at having their checks returned
to them. The stock has been issued at premium of
So and bears per cent interest which viii be equal
81 per the price Of issue. The priDeipa
to be paid, at par, in eighty-One years.
Prior to the Crimsan war, Russia had narrowed
largely in England but the disruption of amieable
relations did not prevent Russia from paying regular
ly the annual interest aeeruing the indebtness
England and to her honorable attributable
the confidence manifested in her securities
The fact that so very large a sum flOo 900 zoe
should be quickly offered is evidence of the Difficult
y experienced by European capitalists in placing their
funds and the redundancy Of the at their dis
posal. The Gillian loan. amounting to only 81 ,OO0,
Geo. received applications to theextent of fsso0OOeo;
and every other security, considered good, with
long time to mature and rates ranging from Il to
per cent, is sought for with aridity.
With facts Ike these to contemplate. We have good
ground to believe that American Government securi
ties can hardly fail to find increased favor, public
confidence is fairly settled in respect to their
soundness and the honor of our Government. The
amount Of bullion lying idle in the Bank Of France
and the Bank of England ss45 900 zoe, and the
amount Of idle funds in Germany is estimated to be
sI25. 600 OOs making aggregate Of $40, ooO.eO
1t Is wonder that the owners anxious for some
mode Of investment, and grasp the chances eagerly,
when satisfied of their soundness.
There is so great CLINT of gold in Europe that any
investment at rates from per cent
upward, is taken with extraordinary avidity. The
Paris price for money is p per cent per annum, in
bank. and per cent on the open market In Lon
don, money is worth only 21@s per cent. and other
European markets show eOrresPondingiy low rates.
1t is strange that European capitalists should
der such circumstances direct their attention the
Of the securities presented By American invest
ments.
There i class Of capitalists whose extreme timid-
ity prevents them from ever touching anything
that looks at all hazardous or speculative Such
avoid priced seePrities, believing them someEhat
insecure. because they lowPreed, but snap greed
Ty at those which End popular favor, under the i'm
preston that they mast be sound This eharaeteis-
tic has brought fresh class of buyers Of American
bonds the marset and created increased dsnsAd
for them. and they carrying other american Sc
-urities With them
Very recently, an arrangement was concluded With
heavy European banking house for the purchase Of
s. goo 600 Of this class Of securities, and another
saer to purchase IS goo 900 vorth made, but de-
sIined. Certain German bankers also com nissioned
AZ agent to come 70 the United States aud make in
spection Of the Pacific Railroad enterprise aud his
visit resulted the expectation Of s51op,ooo Worth
II the Central Pseise bonds In this manner Euro
psau capital is seeking employment in the United
States and knocking down the rates Of interest the
Eaz; xbieh, get even, i sending large sans for
Investment on the Pacific coast, where much
higher the dissrsBes between eausneJ and gsldbeing
noE reduced % mere fraction, comparatively speak
iag. -f