The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-07-22
THE FOUR PER CENT LOAN.

cent loan In New orleans amounted 10 S1U3, UU0,
but Mr.. Bonzano, the Assistant Bub-T'reas-
uror, fixes IL at about double this sum, and
says that single capitalist invested as much
as 100000 In gold In these securities This Is
q fact for which we confess ourselves entirely
unable 10 account We know that the Secre-
tary Of the Treasury, and tho persons en-
trusted by him with the negotiation of these
securities, have cndeavorcd to attach TO them
the idea of popular loan"--a term
which was given peculiar Sig
niicanoe by Mr.. Chase in the negotiation
OF the war loans But we can not believe that
any man of ordinary intelligence could have
boon affected In the investment of ID much
money by any such absurd assumption rs
this. There Ia no earthly reason why the
question Of investment lii The four per cents
should not be regarded by an American from
precisely tho same standpoint as that from
which an alien would look at them simply
on their merits as IN Investment, with refer
ence to which but two qualities are to be con-
aidered viz. their safety and the rate Of In
terest upon them. These securities possess
not a single characteristic OF those loans to
which MIR. Chase gave the Distinguishing quail
ifleatlon OF popular" loans Those loans
were recommended by the government ut
time of tremendous peril, when tho OK
istpnce as well IA Tho credit of the
nation was nj stake. Chases appeals
were justified by tho desperate cireum-
stances that provoked them, and the hearth
ness with which they wero responded to, o
heartiness which sprang from the public
spirit and patriotism Of tho nation, insured
the success Of his financial policy.
NOW ittztiry atfnll
peals, and III making them the government
is simply encouraging Tho timidity Of capital,
an Inherent constituencies that has derived d
morbid and unnatural activity from tho con-
tinued depression that las afflicted the cour-
try. Therefore, In making such appeals. the
government Ia greatly to DO condemned. Ii
ia not in need Of money nor is It's credit
even remotely involved, nor Is there anything
peculiar TO this loan, or the circumstances
under which IL is negotiated. TO distinguish 1t
from any other ordinary financial operation
of the government.
These pretenses arc SO extremely gatizy
that wo can not attribute 10 them tho sur
prsing rapidty with which these securities
are being taken up. Our impression La that
this results from an idea Of unusual safety
that has been attributed TO them, and 1t Ii
probably In tho encouragement Of this idea,
and In the discrcditing Of private securities.
that tho reason of tho success tho govern
inent has met with may be found.
Certainly these securities offer no great
Inducements as paying investments. There
is not locality in the Union where four
per cent Is regarded az standard interest
on capital. In all tho Eastern cities it
readily returns on perfectly safe in
vestments, even i'm these times of strin-
gency when capital demands safety ut
the expense OF profit, as much as seven
per cent per annum, while In New Orleans
IL commands on good security almost any
thing that may be demanded between eight
and fifteen per cont,
Two hundred thousand dollars is large
sum TO be taken from local enterprise at this
particular time and invested In government
securities. There must be some grave rea-
son for this flight Of capital 1t cannot be
due TO public spirit, nor 10 the profitable
ness of tho Investment; hence we conclude
that this sum has been so placed simply
on the idea that there are no local invest
ments paying moro that AFRO equally as safe.
II this be the true explanation OF the mat
ter, ii does no credit TO the patriotism and
stand that corporations like insurance COM
panies should invest their surplus funds In
this manner so as TO be in possession of
securities readily convertible in times of
emergency, but II many Of our capitalists
should seek such Investments as this for their
money, and manifest such indifference to the
material advancement OF their State and city,
we could hardly hope 10 induce strangers to
send to us the capital which is SO much re-
Quired for the development OF our resources |
A general disposition OF this kind would suf
flee to utterly paralyze our industries put an |
end to our commerce and deprive of employ |
ment and condemn to poverty thousands of |
our laborers who are clamoring foc work.
We hope that such capital as we possess |
will, in the near future, rid itself of its exag-
gcrated timidity and take hold of the nu-
merous legitimate industries and enterprises |
which are appealing TO 1t for sustenance. AS
matter of popularity" there is not one of /
many local enterprises that might be men-
TONED which does not commend itself to
every pubiic-spiritcd capitalist, while as in
Nestinehts they are Just MS safe and three or
iour tunes as profitable as government /
II securiIes. AZ Is not our purpose
here 70 ulscuss or specially urge the
attfaeuVeness OF any particular enterprise
as an Investment for local capital. but we can
not torego the expression Of regret that tho
S2oo,ooo subscribed in this city TO the four per
cent loan was not invested in the SECOND
mortgage bonds OF the New Orleans Pacific
Railway Company which, according to tho
testimony of the presidents of many of our
banking and insurance institutions and Other
competent judges, will yield an interest of |
seven per cent per annum, to say nothing of |
the immense advantage to be derived by our
State and city from the construction of the |
road.
The order Of Judge Rogers sentencing
butcher to prison for twcnty-four hours and
fine of fifty dollars for violating an injunc-
ton obtained by the Crescent City Slaughter