National Republican. (Washington City (D.C.)) 1872-1888, 1874-09-02
DTgTBT0T SECURTTTEg.


ing the intrinsic value of the several classeI
Of District securities are attracting universal
attention in this vicinity. And well theJ
may. A glance at the quotations of the
stock board shows that all our securities
are discredited OF home. Even seven-thir
ties are quoted at 81 bid. These are known
as the fve-year certificates issued under the
administration of Mayor Emery, an6
mature November 20, 1875. The interes
on them is promptly met. They amount
to about $500, 900. The ten-year Bowen
skies are quoted as held at IS. These
mature January 1, 1879. and amount to
about $3.50, 900. All of the above securities
were issued in compliance with acts Of Con.
gress, and are payable, principal and inter-
est, in lawful money. Market stock bonds,
bearing seven PER cent, are held at 81.
Fund loan gold bonds at 9S. Eight per
cent. certificates, Board of Public Works,
at S6@SS. Sewer certificates are wanted
at so.
1t will be noted as o popularity of these
quotations that no transactions are reported.
The quotations are so much asked" and
so much IBID, = from which it Is fair to
suppose that the members of the board go
through the formality Of making offers of
sale and purchase for the purpose of estab-
fishing a quotation. 1t is probable that
most of these securities are held as invest
ments for the advance and interest or are
hypothecated as collateral securities for
loans. At all events, such quotations as
are daily put forth under the authority Of
our stock board, without sales, are a
positive injury to the credit of the District.
Who would imagine, from reading these
quotations, that the bonds were not only in
good repute, authorized and guaranteed by
Congress, and the interest promptly pro-
vided every six months? How can we ex-
pect capital from the North to seek invest
ment in our securities, whilewe quote them
at our own stock board at from thirty to
six per cent below par, and the latter
figure being upon gold bondsf 1t would
seem to be scarcely necessary for US to urge
upon our citizens the propriety of taking
some measures to have their credit placed
in its appropriate rank among that of sister
cities. .a.-r IT,
With the guarantee Of the Federal Gov
eminent in a positive pledge by Congress
to provide the means for the payment of
both principal and interest upon our in
debtedness, it should stand head and Shout
ders above that of all other cities, and rank
second only to that of the Government IT
self In market, as 1t really does in intrinsic
value Capitalists who wish to invest their
money in safe and reliable securities cannot
do better than to purchase the bonds and
evidences of debt against this District at
from five to fifteen per cent. in advance of
the above quotations. ... g.
Below we print a letter from highly
esteemed citizen upon this subject. illus
trative of the present condition Of affairs:
To TIE Editor Of the National Republican:
Sir; 1 thank you for your efforts to sppre-
ciate our District securities. The low rate Of
interest established BY Congress was, 1 have no
hesitation in saying, an arbitrary exercise Of
power to our injury; and our worthy Presi-
dent, who always seems to do the right thing
at the right time, took q noble stand when he
declined at first TO approve Of that provision Of
the act. 1t Is to be regretted that the expls-
nation Of the committee induced him to alter
his purpose. The rate of interest on the new
bonds should have been or at least ~ per
cent
The allegation that the certificates and
sewer bonds were obtained at a heavy discount
by the present holders was only correct 10 part.
Ny experience will serve as an illustration Of
many cases. Having great faith in the future
of this District, sold what property had in
another city for the purpose Of investing here,
and for temporary Investment bought few
thousand dollars worth Of certificates direct
from contractors, who were suffering for the
want Of funds to pay their workmen, giving in
May, 1870, s71< cents on the dollar. On their
subsequent decline refused to sell, but bor-
rowed money at s per cent, in the firm belief
that they would, with interest added on the
bonds obtained for them, soon reach par. 1t
now appears that the sewer bonds, with inter
est from January 1 at s per cent, will only
bring about 20 cents on the dollar, although
the first cost and interest nearly reaches 100.
1 have therefore declined to accept the new
bonds at S.65 interest, in exchange for bonds at
8 per cent. issued by board which was ap-
pointed by Congress, for which bonds
the District Is responsible. If am ultimately
compelled to accept these bonds, is the consti-
tutional prohibition to pass a law ''impairing
the obligation of contracts" dead letterl
lam glad to observe that your efforts to ap-
preciate the new bonds are seconded by Mer.
chant, and hope that the movement will be-
come general. As these bonds are as fully
secured as the greenbacks, as they are issued
In as small sums as $50 and bear interest, (even
at moderate rate,) 1t seems as If they should
be received at their face value in payment for
clothing, groceries, provisions, dry goods, sc.
For house rent they will probably only be re-
ceived at their market value, owing to the fact
that taxes on real estate are high, and that
many persons have no other income than that
derived from rents. But If grocers, provision
dealers, butchers, clothiers, and dealers in dry
goods, boots and shoes, furniture, &C., will re-
ceive the 3.55 bonds at par, their market value
will soon be appreciated and all parties be ben
Gifted. Your advertising columns will be ex-
amined for limitations Of the willingness of
dealers to exchange their commodities for the
securities under consideration by many engaged
in the CIVIL SERVICE.
=SEPTENBERI :, 1874