New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-12
LOCAL. MISCELLANY.
THE NEW GOVERNMENT LOAN.


A COMPARISON or THE VALUES OF UNITED STATES
BoxDS-A PROMINENT BANKING FIRMS VIEWS.
A circular has been issued 10y Fisk d Hatch,
BANKERS and dealers in Government securities at No
Nassaust which they the relative valu" o!
the new 4lo per cent bonds with the Old Government T.
sues. They conclude that as The negotiation oil the
$500 Oo0 600 per cent bonds OF 1881 occupied about
five years &c VIII be from one 10 and half years be-
fore an the old gxtyhyes viii be called in and between
one and two years more before all The hxty-tycs
will be wanted when alter ali the new bonds have Deen
taken there will still be $53,O0O0OO Of the new sixty
yes outstanding bcsdcs all TIC 520s Of 1867 aud 1858
suUposing the negotiations Of the loan 10 bc fairly
successful Meanwhile, a revival IN Tue general bust
meas interests Of the country, increased ACTIVITY
in the money market and other causes may postpone
the results for longer periods. They therefore conclude
that the old sixtyfves win draw interest for period
running from thlee % eighteen months ana t,e otnei IL
sues ms folows New sixtyycs, aud half 10 three
ond bolf years sixty-scycns and Xty-eghts n m as
20 seven years; 1881, fOF lac pef"uj NcS 81
1881 rOn - 70 20 year8 tcnioFiies from 70 TO ~
Nears The currency skies cannot be- called Ia until ma
turty they are payable at ENcd Peods ron 1870 10
1890.
Ia illustration OF the relative value of the different
bonds the following among other comparisons are given
81 600 fyewcnty bond Of 1865, new sold al present
market urcc l3ll woud produce 81 13l % de duct for
present vaae OF accrued Interest say 81 70 OF ITO
Tor the principal at present market price 900 four
and-haf per cent hoEd would cost no" Tor tle pfli
difference which could be realized by exchanging ~ pres
ent prices OF $40 81; difference n favor OF holdins
81 O6O new sxtyyes over exchanging ~ present prices
provided they two yedrs, So rs or aOpnG - per
cent BY the process OF reasoning the dnciaGS
ia of holding 900 H. nyc-twcDtics OF 1857 wO1ld
be 4 So nearly L per cent To render an exchange
of hve-twenties OF 1867 for fo1rahd -Ia PCT en-
bonds AZ the present tiDc equal in advantage 10 tIe
difc,ence OF interest for five years the former should
now sell taking into account the accrued iutcfesD ny
100 as compared with the latter at II or in c case OF
ve.t vent bonds OF 1863 per cent bonds OF lsSl
the selling price should be about 123 as compared
with the fonr-and-a-Ialf per cent bonds at III.
In conclusion they say IL has been nOpar OF our pr
pose TO depreeac the value Of theneW - Der cent DOnd
but only 10 Indicate the relative value OF the other GOV
erumert bonds In comparison. We believe lbat N NE
preqent condition Of our nrigna credit ana WIN lts
steady growth throughout the financial world bona OF
Tie United states, bearing 4l2 per cent interest dnu
offered sale at little over par IA gold u We ~ -
attractive investment offered 10 The capital O cllneI
thus country or Europe executing only Tor tlie Ee De-
ing the other Issues OF United States bonds, winch
Tout taisapprebcnsion have Temporarily declined Dc.
low theh true yciaYC value. We have heretofore op
posed the OF Az per cent bonds but only on VIC
ground that the Issue OF such bond was unnecessary
te Government would abandon tie policy or sAOri ah
OPTIONAL loans ard per cent bond having sli
fcent tine TO uD say 80 years and that per cent
bond having 90 years 10 run would he more desirable
and attractive capital than 4l2 cent BOND having
the promise OF but 10 years OF life ana would IN e
be available for the funding OF all te outstanding pei
cent bOnds enormous saving TO the National Treas
ury in the interest payments iof future years