Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1878-08-22
The BIoated BondhoIders.

| of Uniled States bonds as criminals
who should be summarily strung up TO
lamp posts, unless they submit TO i'm
mediate conversion at the hands of the
orators of the sand lots. Pending these
suspensions it may be worth while to
| inquire who the bondholders are and
what popular and personal interests
are dependent upon the value of the
national securities. 1t is pretty well
known that the savings banks, trust
com panies, insurance companies and
other fiduciary associations hold very
many millions of such bonds, and that
very large proportion of the invest
ments thus conditioned are those OF
people in the lower and middle classes
of life, who, out of their earnings, have
accumulated few hundreds or thou
sands, and are relying upon these in
vestments for future contingencies.
The beautiful programme Of the de-
structionists contemplates wiping out
all such savings by repudiation of the
bonds, the consequence ofwhich would
be the bankruptcy Of the institutions
in which the increments of labor are
deposited. This prospect may look in.
viting to the classes of idlers and
tramps, and also to the wOrkingmen
who have never saved anything in all
their lives, but it is undoubtedly
gloomy for the frugal lahorers who
have set apart from their daily wages
sums that now represent their credit in
the books of the savings banks, their
payments on life insurance risk OF
their redemption of home into pos
session of which they came through
the medium of a building association
or land company.
Now, who are the bloated bondlhold
ers? The average daily sales of the
four per cents since the 1St OF August
have been more than million Of dol
lars Banks, insurance companies
trust companies and other tina ncia
corporations have been ordering them
in Jumps of from one hundred thou
sand to half million dollars. The Cal
for the bonds of large denominations
plainly indicates that they are bought
| for permanent investment by men
who believe that the profits OF busi
ness, the rates OF interest and the
terms of of contracts are to be reduced
to the level of four per cent, which is
considered an excellent rate of interes
the future have 10 be considered fail
profit, and the law of conditions may
compel the reduction accordingly o
the rate of interest upon State and cor
porstion securities. The process i:
demonstrated by the fact that small
investors SO largely take part with the
great companies and banks in the pur-
chase of the four per cents. In almost
tevery case the investment is parma.
nent, In one of our contemporaries We
find conversation between CORES
pondent and high official of the
Treasury that throws great deal o.
light upon this subject:
"In what proportion do you find the SUP
posed rich and the supposed poor investors:
| Which class takes the most hQnds?"
| "Well, from my observations, i Judge that
| the greatest number of finveStors is comprised
in the class who have had their money in
banks-savings banks, especially. The next
largest number Of bonds are taken by insu-
rance companies and trust companies, who
want long time bonds Third, would Aame
new banks that are being organized, who buy
them for post to secure their circulation,
and old banks who have called bonds on
which interest has ceased, and which they
must replape, Tbs next olaas la composed OF
private capitalists; they are few, but when
| they buy they take large amounts. Oi course,
the second, third and fourth class L have
named have the largest amount invested, hut
you will find by far the largest amount of in
vestors in the first class. notice that the n ost
of the bonds called for are either of very sn all
or very large denominations. That indicates
shat the people who buy four per cents are
either poor or else they are very rich. The
advantages offered by these bonds are greater
+SNf fho rstnha and hn
to the middle classes"
How do you explain that?''
why, the middle classes want bonds that
are easily converted. They keep their money
in motion, They see a way in which they
can make sum OF money bring a big yield
for few weeks They sell their bonds and
use it. When they have real ped the profit
Of these bonds to the very poor or very rich
are
|. The long time that they run.
2, Their small denominations,
3. They are Tree from taxation.
4. The interest is payable quarterly, and a
draft is sent to the pOstotfice address of the
owner, whereas, in collecting interest on 9TH
or bonds, you have to go somewtere and be
identified or hire lawyer to get it for you,
which is great bother"
Further investigation de velops that
OEly uOpNN VI Jul uCUb Is
held abroad. and we may add that this
amount is being gradually reduced by
the ceiling in Of the five-twenties,
which We're the fsvorites of foreign
AS things are now the
bonds of the United States represent
partially the direct investments of our
own people, and for the rest they stand
for the securities Of the institutions to
which the people have confided their
money. The destructionists, ranging
from Dennis Kearney to Senator Thur.
man, propose to break down these Sc
curities and thereby ruin millions of
men and women in this country who
have the misfortune to be more or less
bloated bondholders.-3al American.
The yellow fever is making fri ght-
full ravages in number of Southern
cities, Grenada, Miss, has by deaf b and
the flight of the inhabitants been re-
duced from population Of 200 whites
to 200, with only from thirty to forty
we'll ones. The deaths have been 63.
At New Orleans the total number OF
eases up to the close of last week was
]75, OF which 266 had disd, Seventy
three new cases and tWenty-seven
1eaths were reported in the twenty.
our hours ending with Saturday night
numbered 100, of whom 26 have died.
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