Centre Hall reporter. [volume] (Centre Hall, Pa.) 1868-1871, 1871-10-13

MosEs. Jar CooKK A Co., have issued
the following financial circular. relative
10 the general condition Of the loan mar
ket, and the exchanging OF government
bonds for railroad securities /:
BASKNa HousE or Jar CooKK A Co.,
Philadelphia, September: 1871.
The signal success u the New Five Per Cent
Government Loan foreEhad0wH the early fund
inR of the entire Public Debt al per cent. or a
loss rate, aud indicates that the average rate Of
interest on loanable capital Ia thia country will
not benceforwArd be- much above per cent,
the tendency being to an equalization of rates
between America and Europe.
Ia view ~ these faets, tho present holders o.
United Htaten Five -Twentiea must decide
whether i IL moi best 90 make az once such
change of investment ns win enable them %
realize A. prQN, or add 10 their capital, tho
present average premium of IL per cont on
livo-fWontirs, while AZ the same time largely
increasing thoir animal income.
Holders Of Five -Iwcntirs of the issues OF
1902, which, under the recent announcement of
tho Secretary Of the Treasury, viii be paid on
IN December next. have special aud immediate
reason 10 consider the question nf conversion,
unless they wash 90 re1eiVe coin for their Five
1wentes, or exchange th0m at par for bonds nf
the how Issue, bearing an average rate OF a
per cent.
To all holders Of United States securities WIN
wish 10 take advantages ~ the present most
favorable opportunity Tor making the suggested
change u investment We strongly recommend
Northern Pacific Seven Thirties lprincipal and
interest payable in goidi now selling al par In
currency. The results already accomplished
ia the construction and equipment ~ nearly
Three Hundred Niles ~ road, and the rapid
development al the adjacent country, have ea-
l@b.lsbcd the permaneney and success q the
AorthrrB Pacific enterprise, and created large
and rapidly Increasing demand for the FIRST
Mortgage Bonds of the Company. With their
high rate ~ interest ample security, aud their
cenyertahiilty into the lands OF the Company
at 10 per cent. premium, they constitute q most
desirable investment, and can hardly fail 10 ad-
vance considerably above par at an early day.
The holder Oi tl 600 Fiye-T Twenty bond who
exchanges Il noe for Northern PArihes, thereby
increases his principal by IL per cent, receiving
81 40 10 Northern PAeihcs Tor 81 900 in Five
Iwenties. lie also permanently increases tho
yearly interest income on bis investment more
than ~ per cent, or from $1,000 In gold 10
sss.2 "a in gold.
Funds invested in Pive-Twentiea at their
present premium, yield 81 per cent. interest In
gold or $40 Ia currency. Northern Pacific
seyen-Thirtics yield $40 per cent. In gold or
" in currency.
profitable conversion OF Government Bonds into
Corporate Securities of undOubtsd reliability,
cannot. la the nature Of the case, long coniin-
ue. The increasing abundance OF loanable
capital both at home and abroad the almost
certain rise Ia value 0f ali desirable railroad
mort ages, the early funding Of the residue Of
the National Debt al lower rates, the rapid alb
sofpiion of Northern Pacific sevcn-T -Thirtiee and
tie probable early substitution of q six per
cent bond for tho remainder Of the Northern
Pacific loan promise very soon 10 change the
entire aspect of the loan market, which is Just
nov sO peculiarly favorable 90 investors.
This state Of things suggests FFOmpf action
on the part o. those who wish 10 exchange
securities in time TO profit by the present high
premium on hVe-Tweniies.
jar CooKE A Co..
Philadelphia, New York aud Washington.