Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-10-21

MisffllaneoMs.
GOVERNMENT LOANS.

GOVERNMENT LOANS.
THE Debt STATEMENTS NEUTRALITY-SUSPICIOUS.
AND CONDITIONS OF THE SEVERAL LOANS THE
20s OF 1862 AND 1864 WILL BE ExTINGuIsHED
By MARCH-wHEN OTHER BoNBS ARE PAYA-
BLE-ADyANTAGEs OF GOVERNMENT BONDS.
The attention of the public is directed on the
first day Of each month through the newspapers to
the financial condition OF the national Treasury.
This publication is made by authority of the Sec
retary of the Trea;ury, and is known as the
"Statement of the public debt of the United
States" This statement shows the various loans
outstanding, which are classified under proper
headings; the cash balance in the Treasury; the
amount Of the public debt, and the decrease made
in the previous month. This debt statement is a
matter Of particular interest to bankers and brok-
ers and of general interest to all who pay any at
tenton to the administration of public affairs. The
newspapers print mere skeleton of the monthly
statement. But were the entire statement to be
printed it would remain sealed book to mos
people, since they can know little about the va
rious loans, which are referred to only by title,
when they were created, what amount Of bonds
were authorized, when redeemable and when pay
able, and the numerous other details that 90 to
make up their individual history. Reliable infor-
nation upon these points cannot fail to be advan-
tageous to those who hold United States bonds, or
who may be seeking safe and profitable invest
ments. The following facts and figures on the
subject have been obtained from the records Of
the Treasury Department.
Reference to the public debt statement for DC
tober will show that the bonds of the Unitec
States OF which both the principal and interest
payable in gold, appear under fourteen heads OF
titles, which represent that number Of different
loans. Of fthis number, however. the loan known
as five twenties of 1867" 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. interest. The
call made July 2S, 1875, for Sl4. .S97 200, which
will mature Oct. rs, 1879, extngushed the entire
amount Of the original loan This loan was au-
thorzed by act of Feb. 25, 1862. Opportunity was
given the public TO subscribe for this loan, and
when the time arrived for closing the books it was
found that 81 900 600 were subscribed in excess
of the amount authorized by Congress, the an cunt
authorized being $500 600, 900. BY act of March
3, 1864, the issue of the additiona! 81 000, COO
subscribed was authorized, and the construction
given the act Of Jan. %, 1865 further increased
the issue 81, 900 900, making the amount issued
S5l5, 900. This entire amount ha, been eX-
tinguished BY actual pay ments and by conversion
into five per cent. bonds, and after the 2Sh of the
present month will cease to appear in the list OF
interest-bearlng debt on the monthly debt state
ment.
The whole amount ofbonds known as "lv twen-
ties of March, 1854" have also been called and
will mature Nov. IL, 1915, after which date they
will cease TO draw isters st This loan was issued
under act of March 3, 1864 the same act under
which the ten-forty loan was issued and was foi
balance OF the $500, 900 not taken up in ten
forty ,nds. The original amount of the loan
was $3,oS2. 800 1t was made redeemable alter
five years, and payable at any period than
forty years from date.
OF the bonds known as "iivc-twenties of June
1864" 27 ,O53 400 were called under dates of Aug
49, Sept. and l7,lS75 and it is presumed that for
the purposes of the further conversion Of five
twente, and also for the requirements ofthe sink
ing fund. the entire balance of this loan will soon
be exhausted in calls. The act under which it was
created authorized the Tissue of bonds to the
amount of $500 900, 600, rec eemable in five and
and pays able within forty wears from date. The
total amount issued was Sl25, SCI 300. The amount
this lean now horne the list Of interest bea-
ing debt Is S57, ,S29, $50. Calls are now out for
onc-half OF this amount and the So 100000 of
five per cents yet to issue to complete the $780,
10000 authorized will eXtinguished nearly the
entire balance by Nov Is, the date upon which
the option of the syndicate will expire. Thus, by
tle lst of March next the five-twentes of 1862
and 1864 which originally amounted to SGli, ,443,-
500, will be extinguished.
THE LOAN OF 1888.
OF the remaining eleven loans on the debt state
ment, the tist on the list il "the loan of 1893, the
amount being $3.50, 900 registered stock, interest
five per cent, payable on the lst days of January
and July. This is the oldest Of all outstanding
issued, payable any time after Jan. |, 1874, from
which fact the bonds are known in the market as
''fyes of 1874" No bonds of this loan issued
for less than 81 900. The small balance yet out
standing may he redeemed at any time at the
pleasure of TIE United States. Congress will
have to make provision for the pavmeut or con-
vel sion of these bonds before the Secretary can
eXungui>h them.
LOAN OF FEBRUARY, 1861.
This leaves but ten loans which have any time to
run, and which viii, it is hoped in the future con-
sttue the entire list Of Government loans in the
market. These NAV be classified as follows The
loan OF February, 1861 is classified in the market
among the ",ixes of 1881" The rate of interest is
six per cent, pay able January and July. AT the
present time the bonds known SKIES OF 1881 tn
most popular Of the Government bonds and in the
daily reports of stoc kquotations will be found at
the head of the government list. Their popular
Try is attributable TO the length Of time for which
they
The loan of 1861 wa, authorized by act of Feb
8, 1851. twenty-five millions autholi2 d.
but bonds were issued only for SIS 900 This
was issued in coupon bonds of ~ 600 ard regis
tered bonds of 81 900, $1,000 and $4,000. On
the bonds it is expressed that they payable at
any time after Jan. |. 1881, but the extreme limit
of the act authorizing the loan is Dec. 81 1850, |
and the bonds become pay able upon that day, not
withstandng the language OF their face. 1t will
be noticed from the date Of authorization that this
loan created on the very eve OF the rebellion,
and less than one month before the Inauguration
of President Lincoln. BY the provisions of the
act the Presid, MT was authorized to borrow the
credit of the United States sum not exceeding
$25, 900 000 to be used in the payment Of the cur
rent demands upon the Treasury, and for the re-
demption of Treasury notes then outstanding
From the phraseology of the act it will be OBJ
served that S25 100000 were needed for the pur-
pose of providing for deficiency which then ex-
isted in the income of the Government, and at a
time of profound peace. As previously stated
the amount of this loan issued was SIS AS 000 OF
which the Treasury received SIG 1895. .223.90, show
ing that it cost the United States to negotiate the
loan s., 2,0l9, ,116l0, which is equal to about eleven
per ceut. of the full amount borrowed. The en-
tme expense Of negotiating the five hundred mil
lions oil new five per cents will cost the Govern
ment about ~, 25O 900, which is in marked con-
trast with the expense of negotiating eighteen and
one halt millions in the early part of 1861. The
fact that the United States had to pay eleven per |
cent to place a loan of tw, nty five millions shows
how much the credtofthe Government was reduced
before the retirement of President buchanan
And Just here it may not be out OF place to state
that on June 80, 1857, the year President Bu-
chapsn was inauguiated. the public debt was S2S.
699, ,832. When he retired 1t was so0,5So,Sf. |
OREGON WAR DEBT.
The "Oregon war debt" also comes to us from
ante. .bellum days. 1t was authorized by the act |
of March 9, 1861, and was created to prov de for |
h., ~ e n..