Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-08-21
FOUR-PE r. CENTS.
Who fire Inresting In Thent-Ouer Eight
Per Cent. of the Public Debt Held at
Home.

Who fire Inresting In Them-Orer Eigh6
Per Cent. of the Public Debt Held at
Home.
Dispatch to Detroit POST
The sales of 4-per- cent bonds continue as
large as ever, and the demand is increasing.
So far during the month of August, the sales
have averaged nearly $1,500,O09 a day.
The first seven days of the month one bank
in New York bought ST. 100000 day
Register Schofield, of the treasury depart
ment, who signs all of these bonds, saws that
three fourths of those sold are registered
bonds which indicates that the purchases
are made as a permanent investment.
Nearly every day, as he goes over them, he
finds individuals, often women, investing
$4,000 in a single lump. By far the
largest portion of registered bonds called for
are in small denominations-$5Os S1OOs,
and $5OOs. When man buys registered
$50 bond, it is to be inferred that he has
only that amount to invest: when he buys
one, two, or three 500 bonds, it is evident
that he hasn't got $500. Judge Schofield
says that from his observation he Judges
that the greatest number of investors in this
| new loan are people of small savings, who
have had their money in savings banks.
| The next largest class of investors are in
surance and trust companies who want
| long time bond. Then there are many new
| banks starting who buy their bonds to
secure their circulation, and old banks whose
| bonds have been called in, and on which in
terest has ceased. Next in order are the in
| dividual capitalists, chiefly people who take
| large amounts in bonds of large denomina-
tons. One man recently bought four $50
600 bonds and had them registered in his
| ,fx,1, III
| he wanted to put his money where he
| wouldn't have to watch it as long as he lived,
and in such shape that the interest could
be sent to him regularly. The chief advan-
tage of the per cents is. that the interest is
payable quarterly, and is sent by mail, in a
draf. on New York. to the owners of regis
tered bonds, SO that they do not have to en-
ploy an attorney to collect it.
Judge Schofield argues that the cry about
the government coaxing money away from
investment III private enterprises is all nom
sense: that there IS not SO much. b. over
100000. invested in government securi-
ties to-day as there was year ago. and that
for every per cent. bond sold a per cent
bond is purchased by the government. The
people who buy these per cents. are not
those who would invest in private enter
prises. 1t is great mistake, and a universal
one, to suppose that the most of our securit-
les are held by foreign capitalists. Some
time ago Secretary Sherman instituted an
examination into this subject, and, by trac-
ing the sources from which interests oupons
came, and by keeping record of where the
interest on registered bonds was sent, it was
discovered that over so per cent. of the
public debt is held in this country. There
is scarcely village, that has bank in it,
that does not send its quota of coupons to
the treasury twice year, and registered
bonds are held at nearly every town where
there is a post-office. The government pays
less than 20 per cent. of the interest on its
debt to foreign capitalists.