The morning star and Catholic messenger., 1878-04-07
Diocesan Loan.

4 CuF6s no Vhluo Ol lilo RAORCAey AAoA~ocSSN
to secure the bonds is about one million
and eighty thousand dollars, while theloan
| or aggregate of bonds is only quarter Of q
million. The annual surplus revenue Of the
Diocese 10 even now about thirty thousand
dollars, an amount, no doubt, far below
Ahat may be reasonably calculated on
| uHNer normal conditions of prosperity. Bnt
at SSp, coo there will be 9 surplus of $l7 500
annually after paying of all interest on
the wHSle amount of the proposed loan.
Out of Mis- surplus Sl2, 500 more is set
aside to hay off tho principal of the loan,
commencing with the year 1882. From
that moment the amount requisite for in
terest will, Of course, diminish yearly.
As to the solidity of tho investment,
there can be no question. 1t is based on
real estate assessed at the minimum rates of
the present day. Besides this, though the
mortgage were absolutely cancelled, the
Diocese of New orleans in its corporate
capacity "pledges it's honor and good faith
for the fsithful discharge of the obliga
tions." I'VE believe this guaranty to be
highef than o mortgage of all the lands
wit,sfn the State of Louisiana.. will
nsker be permitted to fail in substance or
II form, in general scope or in minutest de-
tail. The best guaranty for any engage
ment is honesty, and If strict honesty is
not found in the administration of the
Catholic Church in its temporal affairs, it
would be vain TO expect it elsewhere.
As to the rate of interest, FIVE per cent
;ba - oh t.
exceptionally good. In England, Holland
and other European countries three per
cent-little over half of that now offered-is
considered good when secured by public
credit, and such security is not whit better
than that of Roman Catholic Diocese
A Catholic Diocese can hardly ever dissolve
from the action of interior forces, while
the United States Government is by no
means certain of Immortality yet United
States par bonds give only four per cent
interest.
1t is true that a savings bank will pay
six per cent, but even with the best con-
Quoted institutions of that class there is
always q certain amount of risk. Bank
stocks and other stocks, also frequently
more or less of anxiety and alarm connect
cd with their ownership. With this Dio-
cesar scrip, not the slightest care need
ever be felt by its owner. He need never
make calculations as to the contingencies of
panics and wars and temporal fluctuations
generally when the interest coupon is due
it will be paid. Human certainty as to
INF kaI
than it does in such an anticipation.
People who are actively engaged in
business can make more with their money
than five per cent if they know how to
handle it. Even in ioanipg out capital,
q much larger rate than this can be real
ICED on mortgages and other collateral
securities, but active, sagacious, personal
supervision Of such business is always
indispensable. 1t requires consummate
knowledge of affairs to conduct it, and
even then there is always risk aud anxiety
as we'll as labor, attending it. Persons
who wish to be absolutely safe end free
of personal exertion in the supervision of
their Investments are obliged to take
lower rates, and for such persons we know
of no opportunity like that now offered.
There has been some little misapprehen-
sion as to the "drAwing" feature of the
plan. But this feature does not at all iden-
tify it with eP"Premilm Bond" scheme.
There will be no premium con nected with
this drawing. The winning number will
get it's bond paid off, but will get no prize.
There Is nothing of the lottery about it. In
fact, success in drawing will be misfor-
tune, because holders will not want their
bonds paid, as there can be no doubt that
by that time they will command premium
on the market. The drawing is introduced
as the only fair way of selecting bonds
which must be produced for payment in a
system that provides for their gradual
extinguishment.
Rome.
We still continue to be afflicted with