The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1877-06-28


The Nation refers to the four per
cent. bonds as follows, which is very
clear statement of this last financial
project:
The most important financial event
of the week has been the sale of S25,-
600, 900 four per cent. thirty year bonds
10y the United States treasury to IL
syndicate of bankers, including most
of the members of the syndicate
which had charge of the sale of the
four and half per cent. bonds. The
four per cent were sold at par III gold
less the commission of one-half of one
per cent. and with the sale was given
the privilege of unlimited subscrip-
tiOnS on the same terms for the next
six months. The treasury imposed
the condition that the public should
have the chance to take these bonds at
par in gold for thirty days. Before
the sale of the four per cents the old
syndicate, subscribed for So, 5,O00,O 600 of
four and a-half per cents. which
makes the total amount of these bonds
sold 5000. 600 or 500, 100000 less
than authorized. BY reserving this
Sil00, ,0OO.G00 the treasury has fund to
use for resumption purposes, or, if not
needed, the bonds can be issued as
four per cents which would make the
entire amount of four per cents an
thorized $500, 600. OF the $25 ,000,-
600 four per cents sold, the proceeds OF
So 600 900 are to be devoted to prepar-
ing for resumption i'll 1879, and of the
$4,000, 600 of four and a-half per cents.
sold, so, 900, 600 are to be applied sc
that out of the proceeds of the sale OF
$50, ,0O0,0 600 bonds Sl5,OO0,O00 is to be
used for the improvement of the cur
rency and S35 900, 900 for the reduction
of the interest on the six per cent
funded debt. 1t is understood to bC
Mr.. Sherman's policy to accumulate
81, 900, 900 per month for the purposes
of resumption, either by holding the
gold or, under his construction of tho
law, by selling the gold for legal
tender notes, and then either lone
holding, them as special fund, OF
(two) crediting them to the sinking
fund or (three) cancelling then as new
national bank-nOteS are issued, $50 O
the former to 500 of the latter. Mr.
Sherman may not have done the bes
possible thing, but in giving lis $5, 900,
600 contraction per month he has
done better than any of his predeces
sors.
Whether the four per cent. bonds
will sell readily is a question. They
run thirty years, and in this respec
are the best bonds yet issued. 1t can
not he expected that they will at pre-
sent sell at par in gold in Europe, ant
should the war there become genera
their chance of a market on that sid'
the water would for time who'll,
disappear. The remOnetization of tn,
old Silver dollar would prevent thei
sale either here or in Europe, unles
the price of silver should advance 81
that the Alp! dollar would be the equa
of the gold dollar in which all til,
bonds should be paid if gold faith il
to be kept. Legally, however, all tn,
bonds of the government could be paiC
i'm 4l2} grain silver dollar. if that coin
should be remonetized. AT the clos
of the week 4l24 grain silver dolla
would have been worth $50 SO cent
gold, and paper dollar 954 cents s.
| that now a bond payable principal an,
| interest in greenbacks would be bet
ter bond than one payable in silver.