Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-09-05
OUR BONDHOLDERS.
Some Interesting Facts in Re-
lation to the New Four per
cent. Government
Loan.
The People Who are Subscribing for
1t and the Advantages they find
in 1t as an Investment.

in 1t as an Investment.
| Correspondence OF the Inter Ocean.
WASHINGTON, August To- The
success OF tho new 4 per cent gov
eminent loan. conso.s of 1907, is
considered phenomenal by Secretary
Sherman !; and the sale of the bonds
ontinues as rapid as ever. with a
gradual increase in the demand The
manner in which this loan has been
accepted, and its general popularity
! among the class of smaller INVESTORS,
bearing as it does such low rate of
interest, it is very gratifying to Sec
rotary Sherman, exceeding as it has
the expectation of every one, and
having gone even beyond his far
therest hope. In placing this loan
upon the market Secretary Sherman
supposed he would be compelled to
force its sale. lie intended it for
funding purposes, and thought he
could gradually place il in the hands
Of people who wanted long invest
mont, and one which would produce
its interest at short intervals. And
| at first he did have some difficulty
10 introducing the bond, and it will
be remembered that last fall be was
compelled by the New York bankers
to go back to the four and one.half
per cents, in order to get money for
resumption purposes, but after the
sale of a few four and one-half per
cents. and by offering unusual 10 :
ducements for placing the new bond,
he succeeded in creating a market
for the four per cents which he now
regards az permanent.
A prominent officer of the treas
ury yesterday called my attention
to the fact that since tho first of Au.
gust the daily average sales Of four
per cents had been ovcr million
dollars. He said that one bank in
New York had subscribed, since the
first of July, for daily average Of
$500, 900; and that it was common
thing for banks, insurance companies
trust companies, and other financial
corporations to order bonds in Jumps
of one, two, three four and five hun
dred thousand. Those companies al
ways asked for bonds of large de-
nominations, too, which indicated
that they wero intended as per-
manent investment by men who be
lieved that the profits of business.
the rates of interest, aad the terms
of contracts were to be reduced in
this country within a year or two
to the level you find them in tho old
world. He said that in his opinion,
four per cent. on mans money, in
q safe investment without risk, was
going to be considered O fair profit,
and that unless there was another
war, or some foolish legislation to
destroy the credit Of this government
it would not be many years before
high interest bonds would DO entire
ly out of the market, and boarded as
misers boarded gold during tho war.
He believed that the next step would
be to reduce the rate of interest on
State ard corporation secsri.ios. and
that resumption of specie payments
would not only make the greenbscks
more valuable, but would make state
bonds and railroad bonds and stocks
moro valuable also.
| had talk afterward with
treasury official of national reputa.
ton, who has Immediately to do
with the issue of those new bonds,
and asked him if be could tell me
the class of people who were accept
ing these low priced securities most.
readily.
"Yes," he replied, IL am prepared
to answer that question, because /
have studied it great deal. Every
one of these bonds passes through
my hands. | see tho denomination
of zach one of them, and on the reg
istered bonds appear tho name of
the owner of zach. You can tell o
great deal by that who these inves
tors are. You can judge how many
of them go to banks, and trust CON-
panies and firms, and individuals.
Here is bond, for instance" and he
lifted from pile of similar ones q
sheet marked $4,000. "This bond
belongs to a woman. You see her
name-(Mrs. -.) Now, this wo-
man doesn't buy a $4,000 bond for
the purpose of selling it again as soon
oc ITO uatuo 20 ,noraooaI n crovto. - !.
half per cent. She bought this
bond, | warrant you, to keep, and
she will got $500 interest upon il,
sent to her from this department 10
check on New YORK every quar-
ter. see lots of such bonds as ]
go over them. A man came in hero
from Pittsburg the other day and
bought 100000 worth He said he
was getting old, and wanted to put
his money where he wouldn't have to
bother with it. You can always de-
pend upon it, that registered bonds
of low interest are intended mostly
for permanent Investment, and
will not change hands very often.''
What proportion Of these four
per cents are registered ?"
Nearly three-fourths of them; and
the largest proportion are 10 small
denominations, S50's $100's and $500.
OF course, one $4,000 bond Offsets a
grea: many of tho little ones, and the
amount of money invested 10 large
bonds may equal that invested in
small bonds, but the number of small
bonds issued is more than one hun
dred to one. When a man buys =
$50 registered bond, you know he
has only that amount to invest. The
same is the case with 800 bonds ;
and if man takes three or four 500
bonds it is readily understood that
he hasn't got $500, and he isn't GER
tain that he will have it very soon !;
and the same is the case all the way
up the scale. I have bsen exceed.
lingly gratified at the number Of
! y