Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1871-09-29
Cauyertiup IT. 8. 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 & 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 3
per cent or a less rate, and indicates that
the average rate of interest on loanable capt.
tai in this country will not henceforward be
much above per cent, the tendency being
to an equalization of rates between America
and Europe.
In view of these facts, the present holders
of the United States Five-Twenties must de-
eide 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 capt.
tai, the present average premium OF IA per
cent. on Five-Twenties, while at the same
time largely 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, bear
ing an average rate Of A. 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-Thlrties
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
adjacent country, have established the per-
manency and success of the Northern Pacific
enterprise, and created large and rapidly
increasing demand for the First Mortgage
aonds 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 a 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 IA per
cent, receiving 81 ,14O in Northern Pacifics
for ST. 900 in Five-Twenties. He also per-
manently increased the yearly interest in
comaon his investment more than 3S per
cent, or from $4,000 in gold to 1892 in gold.
Funds invested in Five-Twenties at their
| present premium, yield 81 per cent. interest
III SOlU or D J-IU III NOIth6I
Pacific 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 re-
liability cannot, in the nature of the case,
long continue. The increased abundance OF
loanable capital both at home and abroad;
the almost certain rise in value of all desir-
able railroad mortgages, the early funding
of the residue of the National Debt at lower
rates, the rapid absorption of Northern Pa
cifc Seven hirties and the probable early
substitution of a 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 so peculiarly favorable to investors.
This state of things suggests prompt action
on the part of those who wish to exchange
securities in time to profit by the present
high premium on FiveTwenties.
JAY Cooke & Co.,
Philadelphia, New York and Washington