Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1871-09-28
Converting U. s. Fiye.Twenties.

Messrs. Jay Cooke & Co., whose opinion
regarding money matters is certainly en-
titled to great weight, have issued the fol-
lowing financial circular relative to the
general conditions of the losn market, and
the exchanging of government bonds for
railroad securities:
OFFICE OF JAY Cook s. 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
less rate than per cens., and indicates
that the average rate of interest on loan
able capital in this country will hencefor-
ward be considerably lower than it has
been, the tendency being to an equaliz4-
ton of rates between America and Europe
In view of these facts, the present hold
ers of United States Five Twenties must
decide whether it is not best to make at
once such 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 eTwenties, while at
the same time largely increasing their
annual income.
Holders of Five-Twenties of the issues
of 1862 which, under the recent announce
ment 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 ~ per cent.
To all holders of United States securities
who wish to take advantage of the present
most favorable opportunity for changing
their investment at large profit, we
strongly recommend Northern Pacific
Seven Thirties principal and interest pay
able in gold), now selling at par in cur
rency. The results already accomplished
in the construction end equipment of near
| ly Three Hundred Miles of road, and the
rapid development of the adjacent country,
have established the permanency and sue
cess of the Northern Pacific enterprise, and
createda large and rapidly increasing de-
mand for the Fist Mortgage Bonds Of the
company. With their high rate of interest,
ample security, and their convertibility 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 coo Five-twenty bond
who exchanges it noto for Northern Pa
cifics, thereby increases his principal by IA
per cent, receiving 81 ,140 in Northern Pa
cifics for s ,000 in Five Twenties. He also
| permanently lnCTtdSSS the yearly lnleIeSt
income on his investment more than SO per
cent, or from $4,000 in gold to $S3.22 in
gold.
Funds invested in Five-Twenties at their
present premium yield 81 per cent inter
est in gold, or 9-10 in currency. Northern
Pacific Seven Thirties yield $40 per cent
in gold, or 81 in currency.
These most unusual opportunities for the
profitable econversion OF ofGovernment Bonds
into Corporate Securities of undoubted
reliability cannot, in the nature of the
case, long continue. The increasing abun
dance of loanable capital both at home and
abroad the almost certain rise in value
of all desirable railroad mortgages, the
rapid absorption of Northern Pacific
Seven-Thirties and the probable early sub
stitution of six per cent. bond for the re.
mainder of the Northern Pacific loan, and
the early funding of the remainder of the
National Debt at lower rates, promise very
soon to change the entire aspect of the
loan market, which is just now SO pecu
liarly favorable to invs stCrs.
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.
| PIiL1delphid, NetD York and Washington.