The Superior times. [volume] (Superior, Wis.) 1870-1912, 1871-09-30
Converting u. s. Fiye-TWenties.

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
BANKING HOUSE OF JAY COOKE Il 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 per
cent or less rate, and indicates that the av-
erage rate of interest on loanable CAPITAL in
| this country Will not henceforward be much
above 6 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 Twenties must decide
whether it 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 Ii per cent. on Five
Iwentle5, 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 III
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 al par Tor bonds of
the new issue, bearing an average rate of j
per cent.
To all holie.o 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 goldD 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
fha Do,
and created 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 Company at 10 per cent.
premium, they constitute a most desirable
Investment, and can hardly fail to advance
considerably above par at an early day.
The holder of 81 900 Five-Iwenty bond
who exchanges it ia0ao for Northern Pacifics
thereby increases his principal by IL per cent.
receiving 81, 140 in Northern Pacifics for
81 900 in Fiye-Twenties He also perment-
investment more than 80 per cent, or from
$50 90 in gold to ;5S3. % iii gold.
Funds invested in Five-Iwenties at their
present premium, yield 81 per cent interest
IN gold or $40 in currency. Northern Pacific
Seventh hirties yield7 $40 per cent. III gold or
81 in currency.
These most unusual opportunities for the
profitable conversion of Government Bonds
into Corporate Securities of undoubted relia-
bility 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
six per cent. bond for the remainder OF the
Northern Pacific loan, promise very soon to
change the entire aspect of the loan market,
which Is just now 80 peculiarly favorable to
investors
This state of things suggests prompt action
on the part of those who wish TO exchange
securities III time to profit by the present high
premium on Five-Twenties.
jay COOKE Il Co.,
Philadelphia. New York and Washington