The New York herald., 1877-09-24
THE SAFEST INVESTMENTS.

VIEWS or PROMINENT BANKERS AND fiSAN'
cIERs ON CHEAP CITY AND GOVERNMENT
BONDS FOR THE PEOPLE.
During the last session Of the Legislature Senator
James W. Gerard introduced amendment 10 The
woodnFish charter 10 effect that when city bonds
issued converted, that in lieu Of such oonus or
stock nteresIoearing certificates IN sums varying ro"
S25 10 sl0o each be issued providing that neAcr 'ne
principal nor the interest OF such certificates snail bs
paid any o.her person the subscriber or his le
gal representatives, except upon properly executed ana
authenticated instruments In writing 10 MS attorneys
assgnecs This passed both houses. but was vetoed
by the Governor with the rest OF tho charter Tne o.
jecl OF this ndment to give savings bank de-
posors who had lost confidence In those Institutions
places OF deposit opportunity for safe anu secure
investment II would, IN the opinion OF many, also
tend TO keep down the city's expenses and depI
inasmucn the holders Of those certificates, ieens
that they had stake in the good government OF the
city, would assume moro of the responsibilities OF
citizenship, weigh we'll their votes for candidates or
once. and when those candidates were elected. hoid
them TO strict account for their actions IL wou'd
also. measure prevent strikes, the dissemination
OF Communistlc doctrine, and forge astrongsr BOND
Of union between the different classes
THE coMPIRoLLERs VIEWS
HERALD reporter called Comptroller Kelly,
the Deputy Chamberlain and several Of the leading
bankers get thor views the feasibility OF such
an
Mr. John Kelly nrst seen, and with him tho
following conversation had
REPoRrgR-Do you think the issue Of a city
bond or certificate OF S25 would be
feasible project.
Mr. KxLLy-Not as low as SIS; $50. think. would
as low as practicable.
REpoRrER-Ars there many issues Of city bonds to
be nader
Mr.. KELLY-The Dock Department issue bonds when
they have occasion 10 use money. There arc bridge
BONDS aud assessment bonds Tho othors are, think
long bonds.
REpoKrER-would city bond, such AS have men,
toned be so popular as the consol OF England tho
rente OF Frances
Mr. kELLY--The United States government bond
would be- but say to New York city bonds.
REroRrER-what do you think OF the English postal
savings banks?
Mr. KELLy-I think they are excellent institutions,
and would recommend their adoption by the United
States government.
REpoRTER-Wi there be any effort made to make
an issue OF small bonds law?
Mr. KELLY There Will be a bill prepared and pre-
senteG the next Legislature 10 that effect.
NEW YORK CITY BONDS
Tho reporter subsequently called on the Deputy
Chamberlain, and he said that the city's bonds are
largely distributed but are held in large blocks by
savings banks, national banks. insurance companies
similar institutions, as we'll rs by capitalists
abroad The city debt $9l, ,000 900, and there
are only 1000 OF persons to whom interest is
paid in May and November
REPoRrER-ls there any demand tor $25 or $50 city
bonds by brokers ana people VINO deal in bondsf
DEPUTY CHAMBERLAIN-N0; but there Is for $50
United States bonds. There is no harm In trying
these small bonds and passing law to that effect.
There may beno demand Tor small city bonds, because
there none issued
NM DRExEL's OPINIONS.
Mr. Drexel, OF Drexei, Morgan y Co., was next
visited anu repliod 70 the questions as iollows:-
REP0RrER-DU you think an issue ol CITY bonds or
Understanding certificates oi small amounts, say $50,
feasible?
Now York city bonds 10 tell; but agree with Sccre-
tary sherman in issue Of $50 aud 500 coupon
bonds and registered stock OF the last government
loan. II encourages poor people 10 buy them.
REroRTER-Would you recommend smaller denomi-
natiOus tnan S5OY
REpoxrER-Would these bonds iurnish an invest
people OF inis country similar 10 the con-
soils OF Great Britain or tho rcntes Of FranceS
Mr URExEL-The government bonds would, but am
not prepared 10 say as to CITY bonds
savings system OF Great Britain rs means 0t deposit
Tor the poOrY
REpoKrEK-ls there large demand in this country
Tor tour per cent $50 ana $lO0 coupon
MIR. DRExEL-Well, yes
REpuRrEK-Is there much difficulty In registering
bonds OF small amounts; does II require great iorce
OF clerksy
Mr.. DRBxEL-No
ruE NEW FUNDED UNITED STATES LOAN.
Another OF the Syndicate SAID that the debt
Of the city and of Now York Is in bonds, having
a long run, and as tho city and State are pay
ing tneir debts will be time before thero will
another issue. The new funded loan OF tho United
SLatos has an issue OF $50 aud $l00 coupon bonds and
$50 aud SlOO gistered bonds bearing four pcr
interest They are rapidly being taken all over
country, and in small quantities. which goes 10 show
that popular ISSUE One o the reasons that this
loan Is beng quckl. and successfully placed is the
want oi confidence in savings banks, and business
being dull, people with money naturally look or somo
safe and paying Investment which they hna In United
States bonus. When confidence can De restored small
depostOrs will prefer 70 deposit their money where
they can draw 1t out in from $5 10 locking
II up IN bond which Is not practically available 10
them.
WHAT OTHER BANKERS
Mr.. Fisk, OF Fisk ~ Hatch, said they always found
that the more small bonds there were dis.
trioutcd among the people the better It was for the
government
REPoRTER-Would an issue Of city Donos OF small
denominations be feasiDleY
Mr. FIsK-The CITY bond OF small denomina-
tons 10 issue just al present. The loan the United
States is issuing Is in good demand at premium.
RHpoKrER-Wbat relation does such bond or cer-
tacale the consol Of England or the rente Of
FranceY
Mr. FIsK-In England you buy consol, that Ia an
annuity lhe conso originated IN l'ol, through me
union OF various distinct annuities anu bears an In
terest OF three per cent These consols ara held
chiefly by class Of people In England that Is rapidly
forming IN this country and Is made up OF curaes,
lawyers and traucspeopie, VINO nave accumu-
lated sufficient means enable them to live respect
aUIy Iner income II IS safe and sule, and gives
the m uneasiness.
In France the rente more widely distributed.
This table Will Idea.-