The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1871-09-29
Converting u. 8. Five.Twenties.

| Messrs. JAY Cooke Il 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:
BANKING HOUSE OF JAY COOKE x Co.,
Philadelphia, September, 1871.
The signal success of the New Five Per
| Cent. Government Loan foreshadows the
early funding Of the entire Public Debt at 8
per cent. or a less rate, and indicates that
the average rate of interest on loanable capi-
tai in this country will not hencetorward be
much above 8 per cent, the tendency being
to an equalization Of rates between America
and Europe.
In view of these facts, the present holders
of United States Five-Twcnties must decide
whether il 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
present average premium of IA per cent. on
Five-Twenties, while at the same time large
ly increasing their annual income
Holders of Five-Twenties of the issues OF
1852 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-Twenties, or exchange them at
par for bonds of the new issue, bearing an
average rate of AZ 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 Seven-Thirties
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 o.!
road, and the rapid development of the ja-
cent country, have established the per-
manency and success of the Northern Pacific
enterprise, and created a large and 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 Com
pany at 10 per cent. premium, they consti-
tute most desirable investment, and can
hardly fail to advan ,e considerably above
par at an early day.
The holder of 81 900 Five-Twenty bond
who exchanges it now for Northern Pacifics,
thereby increases his principal by IA per
cent, receiving 81 ,l40 in Northern Pacifics
for 81 900 il Five-Twenties. He also per-
manently increases the yearly interest in
come on his investment more than SO
per cent, or from $4,000 in gold to SS3.22 in
gold
Funds invested in Five Twentes at their
present premium, yield st per cent. interest
in gold or go in currency. Northern Pa
cifc Seven-Thirties yield $40 per cent. in
gold or st in currency.
These most unusual opportunities for the
profitable conversion of Government Bonds
into Corporate Securities of undoubted relia-
biity cannot, in the nature of the case, long
continue. The increasing abundance of
loanable capital both at home and abroad !;
the almost certain rise in value of all desr-
able railroad mortgages, the early funding
of the residue of the National Debt at lower
rates, the rapid absorption of Northern Pa
cifc Seven-Thirties and the probable early
substitution of six per cent. bond for the
remainder of the Northern Pacific loan, pro-
mise very soon to change the entire aspect
of the loan market, which is just now so pc
culiarly favorable to investors.
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
present high premium on Five-Twenties.
JAY COOKE & Co.,
Philadelphia, New York and Washington.