Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1871-09-28
Converting u. 4. Five.Twenties.

MEssRs. JAY COOKE 81 Co, whose opin-
ions regarding money matters are certainly
entitled to great weight, have issued the
following financial circular relative to the
general conditions of the loan market and
the exchanging of government bonds for
railroad securities:
OFFICE or JAY COOKE b 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
less rate than per cent, and indicates
that the average rate of interest on ioand-
bic capital in this country will hencefor
ward be considerably lower than it has
been, the tendency being to an equaliza.
ton of the rates between America and
Europe.
In view of these facts, the present hold
ers 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, o.
add to their capital, 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 1862, which, under the recent announce
nent 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 Fwen-
ties, or exchange them at par for bonds OF
the new issue, bearing an average rate OF
~ per cent.
10 all holders of the United States secu-
rites who wish to take advantage OF the
present most favorable oppor tunity for
changing their investment at large profit
we strongly recommend Northern Pacific
Seven Thirties principal AID interest
payable in gold, now selling at par In
currency. The results already accom-
plished in the construction and equipment
of nearly Three Hundred Miles of road,
and the rapi development OF the adjacent
untry, have established the permanency
and success OF the Northern Pacific enter
prise, and created large and rapidly in.
creasing 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 Com
pany at 10 per cent. premium, they con-
stitute a most desirable investment, and
can hardly fail to advance considerably
above par at an early day
The holder of $1,000 Five-Twenty
bond who exchanges it n0so for Northern
Pacifics, thereby increases his principal by
IA per cent receiving 81, 140 in Northern
Pacifcs for 81 900 in Five-Twenties. He
also permanently increases the yearly in
t rest income on his investment more than
3S per cent, or from 5000 to $s3.22 in
gold.
Funds invested in Five Twenties at
their present premium, yield 81 per cent
interest in gold or $40 in currency.
Northern Pacific Seven Thirties yield 2
8. 10 per cent in gold or 81 in currency
These most unusual opportunities FOL
the profitable conversion of Government
Bonds into Corporate Securities OF IN
doubted reliability cannot, in the nature
of the case, long continue. The increas.
ing abundance Of loanable capital both at
home and abroad; the almost certain rise
in value Of all desirable railroad mort
cages; the rapid absorption OF Northern
Pacific Seven I hirties, and the probable
early institution of Elk per cent bond
for the remainder of the Northern Pacific
loan, and the early funding of the remain
der of the National Debt ut lower rates
promise very soon to change the entire AZ
pect of the loan market, which Is just now
so peculiarly favorable TO investors.
This state Of things suggests prompt de
ton on the part OF those who wish TO ex
change securities in time to profit by the
present high premium on Five Twenties
JAY COOKE d. Co,
Philadelphia, New York and Washington