The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-01-16
t!overnnment Loans..New and Old.

NOVeInnmeut LOhnb-sNeW anu OIus
Prom the Chicago Tribune.
The Rothschilds proposition 10 take
5000, 600 900 more Of the bonds authorized
by the Funding Act, evidently means
business, and their proposal Is now beioIe
the Ways and Mems Committee Of the
House. Its, Of course, understood that
the Rothschllds would not contemplate
this operation unless there was profit In
II, though II Is difficult at present 10 guess
Just where II Is TO come In. The only
thing that can be safely assumed Is, that
the provision In tho Funding Act, that
the bonds shall not be sold below par In
gold, will be cyadCd by the payment Of q
large commission, or by the duplication
OF interest or by some other means Our
per cent bonds are now worth about 1903
In gold, on which tile o per cent interest
pays about % per cent. Our 1910 five
per cents arc now selling for Doc In gold,
and the new per cents for traction over
00c. These figures certainly show that
the legitimate demand for American So
cnriLies in Europe would not enable the
Messrs. ROthschilds to sell tho $500. 0O0,-
900 Of Al per cents and the $20O, 600, 900
Of per cents-which they offer to take
during the next twenty-five mOnths-at
par.
But The experience Of the calling in oil
the 0 eos OF 1862 for redemption at par In
gold, shows that the effect on tue "called"
bonds has been TO reduce their price to q
fraction below par in gold. II the Gov.
eminent had the money In hand TO pay oil
the whole OF the 5.20's, and were to call
them oil In for redemption the price Of oil
Of them would drop to par, and the with.
drawal Of 80 large mass OF securities
from the market would obllge capital to
seek investment In other bonds and secu.
rites. The process OF changing the in.
vestment Of so much capital would In
itself advance the price Of all securities
which afforded comparatively permanent
investment; In other words, the effect oil
this capital seeking new investment,
would be 10 put down the rate Of in.
tereSt. Something like this might
DO expected II the public were
persuaded that the $G00,0O0000 Of
new bonds proposed for by the Roths.
childs would be sold and the money ap.
piled 10 the redemption OF the live.twen-
ties at par. Holders Of five-twenties,
whichare now from Q TO 8 per cent above
par in gold, would hasten 10 sell them
before the whole oil tho decline TO par
was experienced; and Us the capital now
invested in them would necessarily seek
investment in similar securities, 1t would
How into the noxt beet intorest-paying
stock, viz: into 8 per cents; and eventu.
ally, when these get above par by reason
Of capital Crowding into them-into the
next best interestpaying security. But
the Government has not sufficient surplus
in the Treasury to show Rprospect Of
calling in any considerable amount OF five.
twenties. If the Rothschilds furnish
enough money 10 start this process oil
changing the investment Of 5000, 900, 900
OF capital there Is no question but they
will charge for it, and that their profit
will come out Of the Treasury Of the
United States.
THERE'S, however, still another aspect
to the proposition 10 turn 5000, 900, 900 OIL
capital now invested in zoos out, TO seek
investment In bonds or something else, al
n lower rate Of interest, namely: the ef
feet 1t Nwould have to lower the rate OIL
interest generally, and consequently to
make money more plenty. The effect o.
the purchase Of $500, 100000 of the pei
cent debt in the last three years, together
with the calling in of $l4OO0O,00O Of
5-20s of 'O2 for redemption has already
had the effect TO make material reduc
lion in the average rate of interest in the
interest Of 1871, and is the cause of The
present abundance of money. These Gf
IectS afford basis for estimating those
which would probably follow the tnaugu
ration Of the plans proposed by the
ROthschilds. ''