National Republican. (Washington City (D.C.)) 1872-1888, 1874-09-02
DISTRICT SECURITIES.
A TALK WITH MR.. PETER CAMPBELL
ON THE SUBJECT.

ON HE OODJbO1s
Yesterday afternoon representative Of TIE
NATIONAL. REPUBLICAN held casual CONVEX
sation with Mr.. Peter Campbell, broker, who
deals only in stock bonds and District secun-
ties, on the financial situation. Mr.. Campbell
has been for a long time q resident Of the city,
and connection in legislative capacity with
the recent territorial government, as well as
his present business, entities his views to the
consideration Of investors.
In order that it may be connected, the talk
is given IN dialogue:
Reporter, Mr.. Campbell, what Is the state
Of the market for District securitiesl
Mr.. Campbell. District securities are now 40
low as to make them the most desirable and
profitable investment Of any securities now
offered, bearing as they do the Endorsement Of
Congress both in principal and interest.
R. Can you assign any reason for these low
prieesi + .0r -a'..-
Mr.. &c. The reasons are plain and natural
principally because our obligations, although
amounting to many millions of dollars, are
held mainly by contractors and dealers in their
material, who have not the time or facility
for concentrating them in large lots, which must
be done 70 attract the attention Of capitalists.
Many of these securities are also held by
banks and money-lenders as collateral for
loans, and being good security they have no
VI.
brought together and negotiated through
some inancier who is familiar with all our
District matters. Another reason is they have
not been properly commended 10 the attention
of capitalists by advertising. In response to a
circular which recently issued to bankers
throughout the country, the inquiry is in
variably: care they guaranteed by the United
statesP showing the Importance and necessity
of presenting that fact.
m 0ur sacuritiaa ara MT o11ara lead nv
Congress Ha...
Mr.. C. Congress at fits last session guAran-
teed and Endorsed them all. What can be
palmer than the act of Congress of June 20,
1874 the tenth section is in these words:
THAT the act of the Legislative Assembly Of
the District of Columbia entitled tAn act to
fund the unsettled liabilities of the city Of
Washington, and providing for the issue OF
bonds and levying and collecting taxes to pay
the same,' approved June 20, 1872, is hereby |
ratified and approved; but none of the bonds |
authorized by said act remaining unsold shall be
or sold at less than par" Yet |
these bonds, bearing six per cent. interest in |
gold, payable May and November, can be |
bought at about 81, while United States FIVE |
twenties and six per cent. gold, May
and November, are selling at 1171S. |
Were it not for the reasons above stated and |
the unfavorable criticism of newspapers op- |
posed to the Administration, they would all be |
above par, excepting the Sos bonds to be |
issued, the interest being too low. In my
opinion the United States should not authorize |
the issue of any security at such a rate of in |
terest as will prevent its being sold at par, and
l hope some action may be taken by Congress |
to remedy this. I do not wish to see these |
bonds upon the market until Congress can re- |
view its legislation Of last session for the Dis
trict, which, although 1t bears the impress Of
skilled and trained minds, was hasty and |
crude and incomplete. If these |
bonds are placed on the market now the wis |
dom of President Grants suggestion in his |
special message in regard to the interest will |
be plainly apparent.