New-York tribune., 1871-06-27
BORROWING POWER OF THE GOVERNMENT
RATES OF INTEREST REALIZED ON U. S. BOND:
PUBLIC CREDIT ACKNOWLEDGEMENTS OF
TIE NEW LOAN.
rvRon ouR oyy CORRESPONDENT

RATES OF INTEREST REALIZED ON U. S. BONDS
PUBLIC CREDIT IMPROYNG-PRosPECTS OF
TIE NEW LOAN.
[FRoM OUR OWN CORRESPONDENTS
WASHINGTON, June $3.50 many elements
enter into the market value Of United States securities
that it difficult for bankers and others whose
business 1t TO deal in stocks and bonds to integenty
compare the prices Of the several issues that have from
time to time been made and determine which yled tne
higher rates OF interest and careful computation Is also
REQUIRED in the Treasury Department in asceralnlng
tho lowest rate at which the Government can DorroW
money and what kind OF securities will be most readily
taken In order arrive at exact conclusions, there
fore Mr. Elliott of the Treasury Department is prepar
ing tables TO show the rate OF interest which
the holders Of United states bonds received on their In
vestments as shown by the market value OF those bonus
before the war and the rate which is paid on the
market value OF each issue.
1t should be remembered that the price OF bond as
quoted in the market affected by the price of gold III
the interest on it is payable in specie the amount OF
interest which has accrued the period which the bond
has to rum and public confidence in the credit OF the
Government Mr. Eliots tables show that from 1854 to
1861 the rate at which the United States could borrow
money varied from 81 TO per cent During the war tho
necessities OF the GOvernmentwe SO great that the
rate OF interest greatly increased being as hghas per
cent during the very first year In june 1862 just after
the present Administration into power 1t was It
per cent During the past two years the credit OF the
Goyernment has, upon the whole, steadily improved
and the rates on the 22d of May last as follows
Six per cent Pacific Railroad bonds, on which the primer
pa and interest payable in currency at tne
rates then quoted yielded to the holder per cent
per bonds the principal and interest OF wch are
payable gold yielded from 15 to 50 per cent the lat
ter rate being realized the supposition that they
would be paid at the end OF 10 years, ana the FORMER
supposng them to 30 years. Six per cent godDear
ing bonds yielded 81 per cent. - -,
It will thus be that the Government can borrow
money somewhat lower rate on long currency bonds
than either gold or per cents sold az market rates,
though there some doubt which would ultimately be
value Of gold and greenbacks at the time the bonds are
paid The present borrowing power OF the Government
is somewhere between and 5 per cent The apparent
relative popularity Of the per cent currency bonds Is
before the bonds become due and that they Will
tnen be paid in gold. The effect Of Democratic threats
pay the GQ bonds in greenbacks Is doubtless one OF
OF the slight depression In their market Vaue
and the consequently somewhat higher rate OF interest
But the most interesting deductions to be made from
these tables in regard 10 the practlcaby OF oatng
the new five gold bonds authorized by Congress
i'm the Funding Act passed last Summer This they fully
demonsrate five per cent being the actual rate which 10
realized by the holders Of the Pacific Railroad bonds ana
but small fraction below that obtained from others
TO, being more favorable for the Government added
TO certain elements OF popularity which the new Donus
possess-quartery payment OF interest It's payment Dy
check and their freedom from taXatl0n-nust cause
them shortly TO be at premium In the markets. IL
will also be that IL the credit OF the GoYernuent
continues Increase during the past TWO years IS
unreasonable TO hope that the ~ and per cent DOhds
can be fOated at very distant day. - -. -.
Another interesting fact Is brought out Dy MT ElotCs
researches and that is that when the rates or foreign eA
change are taken into account and the prices OF Ued
States securities in NewlOrk, London ana frankIOrt are
carefully reduced 10 the standard tney are lounu
m was To be expected he nearly Identical That Is our
bonds are worth substantially the same in the monetary
centers OF Europe as in New-fork.