Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1871-09-27

Messrs. JAY COOKE & Co., have issued
the following financial circular, relative
to the general condition of the loan
market, and the exchanging of govern
ment bonds for railroad securities:
BANNING HOUSE OF JAY Cooke & Co.
Philadelphia, September, 1871.
The signal success of the New Five Per
cent: Government Loan foreshadows the early
iunolng OF the entire Public Debt at 5 per
CENT. or less rate, and indicates that the av-
erage rate of interest on loanabIe capitaI in
tnls country will not henceforward be much
ABOVE per cent, the tendency being to an
Europe.
IN view OF these facts, the present holders
OF United States Five-Twenties must decide
whether 1t IS not best to make at once such a
change OF investment as will enable them to
realize as profit, or add to their capital the pres
ent average premium of IA per cent on Five
IWentles, while at the same time largely in
creasing their annual income.
Holders of Five-Twenties of the issues of
1862 which, under the recent announcement of
the Secretary of the Treasury will be paid off in
December next, have special and Immediate
reason to consider the question of conversion
unless they wish to receive coin for their Five
IWentles, or exchange them at par for bonds Of
! the new issue, bearing an average rate of ~
per cent.
To all holders of United States securities
who wish to take advantage of the present
most favorable opportunity for making the
suggested change of investment we strongly
recommend Northern Pacific SeTenThirties
| principal and interest payable In gold) now
selling at par in currency. The results al
ready accomplished in the construction and
! equipment of nearly Three Hundred Miles of
road, and the rapid development Of the ada
cent country, have established the permanency
and success of the Northern Pacific enterprise,
and created large add rapidly increasing
demand for the First Mortgage Bonds of the
Company. With their high rate of interest,
ample security, and their convertability into
the Lands of the Company at 10 per cent
| premium, they constitute most desirable
investment, and can hardly fail to advance
considerably above par at an early day.
| The holder of a 81 900 Five-Twenty bond
who exchanges it non for Northern Pacifcs,
thereby increases his principal by Il per cent,
| receiving 81 40 in Northern Pacitics for
! 81 900 in FiveTwenties. He also permanent
| ly increases the yearly interest income on his
| Investment more than 50 per cent, OF from
$4,000 in gold to $83. % in gold.
Funds invested in Five-Twenties at their
present premium, yield 81 per cent. interest
| in gold or 5 $40 in currency. Northern Pacific
| Seven-Thirties yield $40 per cent in gold or
| 81 in currency.
| These most unusual opportunities for the
profitable conversion of Government Bonds
into Corporate Securities of undoubted relia-
billy cannot, in the nature of the case, long
continue. The increasing abundance of loan
| able capital both at home and abroad the al
most certain rise in value of all desirable rail-
road mortgages, the early funding of the resi-
due of the National Debt at lower rates, the
rapid absorption of Northern Pacific Seven
Thirties and the probable early substitution of
a Six per cent. bond for the remainder of the
Northern Pacific loan tp
change the entire aspect of the loan market,
which is just now SO peculiarly favorable to IL
Vestors.
This state of things suggests prompt ac-
ton on the part of those who wish to ex-
change securities in time to profit by the pre-
sent high premium on Five-Twenties.
JAY Cooke s. Co.
PHILADELPHIA. New York and Washington