Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1878-08-14
An Encouraging Indication.

/ been exceeded, AMI the prospects
are that by the close of the month,
the subscriptions will be several
millions in excess Of those for July.
So far as the government is con-
rerned, there are so many bonds
which are now redeemable at its
pleasure in coin, that the four per
cent. subscriptions can hardly come
in too fast. On the 3lst of July,
when the latest public debt state
ment was issued, there was in
round numbers S450,O00,O00 of six
per cents which could be redeem
ed at any time when the govern
ment was able, and this sum is suf-
ficiently large to permit Of daily
subscriptions to the four per cents
averaging nearly one million dol
lars for every working day for n
year and n half. or until the close
of January, 1880. After the avail
able six per cents are taken up and
redeemed-if this should happen
during lSS0-the government has
outstanding about S195,000,000 of
fives, which can then be redeemed
with the proceeds of sales of four
per cents. In 1881 the remaining
six per cents, amounting to $685.
100000, are payable or redeemable,
and at the same time the five per
cent. funded loan, amounting to
S50S,000, 900 can be taken up as
the government procures the means.
The transfer of the six per cent.
bonds into four per cents, which is
practically what the sale of the
four per cents amounts to, will I'M
doubtedly increase rapidly as it be-
comes apparent to the present
holders of the bonds bearing the
higher rate of interest that it will
be only a short time when those
bonds will he called and redeemed.
The fact that the subscriptions are
coming in so freely will have a ten
dency to induce the holders of skies,
which are among the first TO be
called to subscribe themselves in
order to secure safe investment,
even at a much lower rate Of inter
est. When this force gets fairly
into motion, producing a colnpe-
ton between the invested capital
in bonds and the surplus capital
looking for investment, we look to
see great impetus given to the
four per cent. loan.
The success Of the four per cent.
loan can only be regarded with
feelings Of unmixed satisfaction
and is productive of good in null
titude of ways. In the first place
each million of dollars subscribed
means an annual saving to the
country in interest of $4,000.
Then the fact that the great bulk
of United States bonds are now
held at home is OF unusual value,
because by reason thereof the pay
ment Of the skies does not render
necessary q transfer of part of the
surplus capital of this country to
Great Britain or Germany, and does
not diminish to any noteworthy ex-
tent the surplus in the United
States for private Investment. 1t
also facilitates the sale and pur-
chase of bonds. But if the bulk
Of the skies were held in Europe,
the subscriptions in the United
States to the four per cents. would
60 from the treasury to the foreign
holders and the stock of specie in
private hands would be largely de-
pleted. With the skies to be re.
deemed held in this country, the
gold received for their payment re-
: mains here, and after one call ha'
, been made the money then receiv
; ed can go back and forth dozeI
{ times, and there is no drain of an,
r kind. II the payments went t
D Europe fresh gold would have t.
be found for every fresh subscrip
ton; and though the peopl
q would reap the benefit Of the re
a duction in interest, it would be &C
J, companied with some drawbacks.
: Perhaps the most important cor
L sideration in connection with th
II movement in four per cent Is to b
found 10 the reduction, as relatin
II to all unemployed capital. 1t make
o In the standard rate Of interes
II It may be accepted as an axio
II that in any well-governed countI
q the interest which the governmel
n pays represents the brightest cred
o in that country, and the rate Of j
II to.o.t Il, ,.naraI heara N cloeo rel