The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-02-11
Financial and Commercial.
FINANCIAL FACTS AND OPIN-
Efsyf. IONS. irtg .,AIsy
Floating the New Loan.
Rr,,1 N. y.,r York pn,f -aI Ha

Floating the New Loan.
From Mt Mtp Rork Post. -a'
As all the six per cent and five per cent
loans Of the United States arc now below
par In gold there Is no immediate prospect
Of selling any even Of the new five per
cents for coin. Any sale OF the bonds
bearing a still lower rate Of interest Is, ol
course, impossible, so long as five per
cents may be had in the open market at q
lower rate The value OF tho new law to
the government, therefore, for the present
lies practically In the hope that holders
Of six per cent bonds now subject ut any
time to redemption, will exchange them
for five per cents not redeemable for ten
years 10 come. Yet investors arc not
likely to part with bonds drawing six per
cent, through the fear Of redemption, 50
long as the money with which they are
redeemed will buy other bonds equally
good, and leave them u surplus. a5a 4
For instance, A has $4,000 In five
twenty bonds anl draws 5000 q year
upon them. Mr.. Boutwell, offers him for
them $4,000 Ot new bonds, paying $500
q year. The only motive he has 10 offer
for the exchange Is the danger that II A
does not accept ii, MIR. Boutwell, will take
up his fiye-twentics, and pay him So 900
In gold for them. But with his 900
in gold he can now buy $4,000 ofsix per
cents in the open market, paying for them
$0,7l5 In gold, besides accrued interest,
and have clear profit Of $2S5 in gold
left in hand. Or he can buy ten-forty
bonds yielding five per cent, paying fol
them $3,5S0 in gold, besides accrued in.
tcrest, snd have clear profit Of $420 In
gold LEFT. Thus lis clearly for AS ad.
vantage not to exchange his bonds; but Ia
let tho Treasury carry out It's threat OF
rcdeeming them; and until five per cent
bonds, which are now worth 05e per cent
in gold and interest, shall rise In the open
market to par, this advantage remains,
The first condition, therefore, oil funding
tho five-twentics, now. in private hands
ut lower rate Of interest, Is that the five
per cent bonds Of the United States rise tC
par in gold in the open market. l
This condition is not likely TO bG fulfill,
ed very soon. But II docs not follow that
no exchanges Of bonds will be made. The
banks now hold about one hundred and
fly millions Of dollars in flve-twenty
bonds, and there arc strong reasons why
they should voluntarily accept the now
bonds in place Of them. The discomfort
in Congress and in the countryat the high
rate ot interest paid to the banks upon
their securities Is an element in their stu.
alton which they cannot disregard. II
they determine, US n class, to accept the
lower rate tOf, interest of the new. cOnsols
they will strengthen their positionin the
country; ind, besides, fortiiy themselves
for ut least ten years to come, with IN in.
vcstment that cannot be disturbed In any
state Of the money market. II new na.
tiOnal banks arc organized, they will be
required TO take the new bonds, 10 secure
their circulation. Thus, there Is q proba.
bility that some part Of the issue advertis.
cd to-day may find market, without
waiting for any great change in the prices
Of securities already issued. I T'1''7'
1t Is impossible to foreseo what effect
upon the prices Of the older bonds would
be produced by the sale of new bonds Ia
inc banks lncsc prices arc nnuenceo
Dy pollucal prospects anu ny financial
movements IN the country py tno gener.
al condillon OF trade' Dy the disturbances
exchange and Of gold. Taking these
things together, the future course Of our
puOlic Iunus presents . very olmcuIt prop-
lem but tnere Is cerGalnly holhlng IN
the present SITUATION OF tne money mar
Key, ellher ~ nome q ABROAD, 70 sncour,
age thc pene! that q n nnYcper cent. Donu o.
tue Unlte9 ouates WIN soon DC sought ~
par Us IN investment sa,..r4 lilo
Fio" no A'u'sa1 Statesled erMe U s. Atrcdh'
r, we av"'oS- -, a.Lna
inc asscts Of Ine community are Ger
fanny nos IN as ayallaplo snaps IL, s ,ney
were I%o OF nree years ago' 1ne lineS
Of crealt Wnlcn were ughtly uraWn our
lng INC war, ana lor q year OF TWO suose. Y,
guent 70 us Close, nave peen grao9ally
loosenea, moi only ny lne wholesale deaI- ~
CT, D9t from INC RETAILER 70 the consuiher |,
and, II o careful examination couid o. Dc nau IlaC
o. Me S9hultlon o. uie magon!y u unuels
y wouid DC alScoyerea lnat ou'stslangs nv, " ~
9vtS VI bno SoAt'J 1850 NAJ 1850