The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1875-11-11
OUR NATIONAL BONDS.
History and Conditions of the Several
Government Loans
From the New York Times.l

Government Loans.
Prom the New York Times.l
The attention Of the public is directed on
the first day Of each month through the news
papers to the financial condition Of the Ma
tional Treasury. This publication Is made
by the authority OF the Secretary Of the
Treasury, and j. known as the "Atatement
OF the public debt Of the United States. -
This statement shows the various loans out
standing, which are classified under proper
headings; the cash balance in the Treasury,
the amount Of the public debt, and the de-
crease made in the previous months. ms
debt statement i matter OF particular IN
terest 10 bankers and brokers, and OF general
interest TO all who pay any attention TO the
administration OF public affairs. The news
papers print mere skeleton of the monthly
statement But were the entire statement
TO be printed il would remain sealed book
to most people, since they can know little
about the various loans, which are referred
10 only bv title. when they were created,
what amount OF bonds were authorized,
when redeemabe and when payable, and the
numerous other details that go TO make up
their individual history. Reliable infOrma-
ton upon these points cannot fail to be ad-
vantageous to those who hold United States
bonds, or who may be seeking safe and pro-
fitable investments. The following facts
and figures on the subject have been OBJ
partment:
Reference to the public debt statement for Oc-
tOber will show that the bonds Of the United
States, OF which both the principal and interest
are payable in gold, appear under fourteen heads
or titles, which represent that number Of differ
ent loans. Oh this number, however, the loan
known as five twenties of is 2, )" which was the
largest loan issued by the Government, has been
called in for payment; or, in other words, for
conversion into bonds bearing five per cent. IN
terest. The call made July IS, 1873, for Sl4,-
s97 200, which will mature October q, 1879, ex-
tinguished the entire amount Of the original loan
This loan was authorized by act of February p,
1862. Opportunity was given the public TO sub
scribe for this loan, and when the time arrived
for the closing Of the books, it was found that
SIl o q, 900 were subscribed IN excess of the
amount authorized by Congress, the amount au-
thOrzed being s SOC, % 900. BY act of March 3,
1864, the issue of the additional ii COZ 600 sub
scribed was authorized, and the construction
Civ, n the act OF January Is, 1863, further In
creased the issue - o. 0 $50, making the amount
issued s5lI OOO, 600. The entire amount has
been extinguished by actual payments and by
conversion into five per cent. bonds, and after
the 18th of the present month Will cease TO appear
in the list of interest bearing debt on the monthly
debt statement.
The whole amount of bonds known as ''flve-
twentcs of March, 1864, have also been called,
and viii mature November -, 1915, after which
date they will cease 20 draw interest. This loan
was issued under act of March 3, 1864, the same
act under which the n-fOrty loan was issued,
and was for the balance of the $500 600, 900 not
taken up in ten-forty bonds. The original
amount Of the loan was 50 $50 800. Ii was made
redeemable after five years, and payable at any
period not more than forty years from date.
OF the bonds known as ve-twenties of June,
1864, S27, O53, 400 were called under date of Au
gust -, September and Il. 1875, and it is pre-
sumed that for the purposes of the further con-
version of five twenties and also for the require
ments Of the sinking fund, the entire balance OF
this loan will soon be exhausted in calls. The
act under which il was created authorized the
issue of bonds to the amount Of 400 900 900, re-
deemable in five and payable within forty years
from date. The total amount issued was 49,
SCI 300. The amount Of this loan now borne on
the list Of interest bearing debt is S57, $50 Z g.
Calls are now ont for half Of this amount.
AMI the - 600 900 of five per cents yet TO sue
to complete $500, 90 900 authorized will extin-
guish nearly the entire balance by November Is,
the date upon which the option of the syndicate
viii expire. Thus by the LIST of March next the
fye-twenties of 1862 and 1864, which originally
amounted TO S64! ,443, 500, will be eXtinguished.
THE LOAN OF 1853.
OF the remaining eleven loans on the debt
statement the first on the list is 1.-THE loan Of
1885," the amount being $500, 900, registered
stock, interest five per cent payable on the nrst
days of January and July. This is the oldest of
all the outstanding loans Of the United States.
Twenty millions were issued, payable any time
after January /, 1874, from which fact the bonds
are known in the market as ''ives of 1874" No
bonds Of this loan were issued for less than ST.
900. The small balance yet outstanding may be
redeemed at any time at the pleasure of the
vision for the payment or conversion of these
bonds before the Secretary can extinguish them.
LOAN OF FEBRUARY, 1861.
This leaves but ten loans which have any time
to run, and which will, it is hoped, in thefuture,
constitute the entire list Of Government loans in
the market. These may be classified as follows:
The loan of February, 1861, is classified in the
market among the skies of 1881" The rate of
interest per cent, nayable January and July.
At the present time the bonds known as skies of
5 l are the most popular of the Government
bonds and in the daily reports Of stock quota
tons will he found at the head of the Government
list. Their popularity is attributable TO the
length OF time for which they run. The loan Of
1851 was authorized by act Of February 5, 1851.
Twenty five millions were authorized, but bonds
were issued only for : Is AS, 600. This was is
sued in coupon bonds of s Coz, and registered
bonds Of s 600, g., 900 and Il, 600 On the
bonds it is expressed that they payable at any
time after January l, 1881, but the extreme limit
of the act authorizing the loan is December 81,
lSS0 and the bonds become payable upon that
day, Notwithstanding the language of their face.
II viii be noticed from the date Of authorization
that this loan was created on the eve of the re
bellOn, and less than one month before the in
auguratiOn of President Lincoln. By the pro-
visions OF the act, the President was authorized
TO borrow, on the credit Of the United States,
sum not exceeding S25, 900 900 to be used in the
payment of the current demands upon the Treas
ury, and for the redemption of Treasury notes
then outstanding. From the phraseolOgy Of the
act, it will be observed that So, 00G, 900 were
needed for the purpose OF providing tor de-
fciency which then existed in the income of the
Government, and at a time of profound peace.
AS previously stated, the amount Of this loan is
sued was SIS, AIS 90, Of which the Treasury re.
ceived 81 1876 ,2-3. go showing that it cost the
United States to negotiate the loan 81 Ol9, TO-
which is equal to about eleven per cent. of the
full amount borrowed. The entire expense Of
negotiating the 500, 900 900 of the new five per
cent. will cost the Government about -, 2J0 900,
which is in marked contrast with the eXpense of
negotiating SIS, 90, 600 in the early part of 1861.
The fact that the United States had to pay eleven
per cent. 10 place a loan Of 50 900, 600 shows
how much the credit of the Government was re-
duced before the retirement of President Bu-
chanan. And just here itmayn not be out Of place
to state that on June 30, 1851 the year President
Buchanan was inaugurated, the public debt was
s2S 500, e32. When he retired il was $50 $780,
s74.
OREGON WAR DEBT.
The "Oregon war debt also comes to us from
ante -bellum days. 1t was authorized by the act
of March ,, 1861, and was created TO provide for
the expense incurred by the Territories of Oregon
and Washington in the suppression OF Indian
hOstities in those territories in the years lS5-6.
The total amount issued was 81 $50 $50, all OF
which were coupon bonds. The rate OF interest
is six per cent. The interest on the bonds for
$50 and 100 is payable annually on July while
the interest on the $5l bonds is paid semi
ally on January and July ]. Unlike any other
coupon bonds, these are made payable to the or
der of payee named in the bond, and can only
pass by assignment, duly executed, as in the
case of registered bonds. Of the amount origl-
naliy issued, lf5 800 have been redeemed, ieaV-
ing Z 945, 600 now outstanding, which is redeema-
BILE July |, 1851. The words ''OregOn war debt"
are printed on the face Of the bonds, from which
the title of the loan is derived.
LOAN OF JULY AND AUGUST. 1861.
On July II, 1861, Congress passed an act au-
thorzing the Secretary of the Treasury to Dor
row on the credit of the United States sum not
exceeding $3.50, 90, GOO, and to issue therefor
coupon or registered bonds and Treasury notes
in such proportions as he might deem advisable,
redeemablc at the pleasure of the United States
AFTER twenty years. By a supplementary act,
passed August 5, 1861, il was provided that no
bond should be issued for less than $50, and
the Secretary of the Treasury was authorized TO
exchange bonds of that denomination for Treas
urv notes issued under the former act. This is
why the loan is known as the loan of July and
August, 1861 ;" the words justquoted being print
ed on the face of the bonds. In the market the
bonds n called 'siXes of ISL" and are dlstin-
guished from the other skies, or loan of Februa-
~ 1851 by the date of redemption, which Is
July l, ISL. The entire amount of this loan is
sued was s lS9 32l $50. and the entire amount is
still outstanding. This loan, by the act author
izing it, is made redeemabie at the pleasure of
the United States after twenty years. The rate
of interest is six per cent, payable on the hrst
days OF January and July. This was the first
loan authorized after the formal secession OF
some of the Southern States
LOAN OF 1868.
The loan of 1853 is also known in the market as
'sNes of ISL )" from the rate Of interest and the
fact that the bonds may be redeemed in 1881.