Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-02-01
Our Bonds i'm Europe.

The hard .times across the water are
having direct beneficial effect upon our
credit Stagnation in all parts of Great
Britain has thrown large sums of money
upon the market seeking investment. Fac
tories have closed down, the fires in the
furnaces have been extinguished, ship
building is at standstill and capitalists
are eagerly looking for some safe security
into which they can put their funds. There
are no bonds on the market more desirable
than those of the United States, and Eu-
rope appreciates the fact.
Six months ago, some time before the
great bank failures which brought on the
existing English panic, it was said by good
authority that England had one Thousand
million dollars on deposit at one per cent.
The amount of unemployed capital in Lon
don seeking gilt-edged investments is u.s.
ually very large; but, for reasons which
we have stated, it is now much larger than
common. At the present time it foots up
but little if any short of $500, 1000, 900.
London capitalists have had very dear ex-
perience in purchasing Turkish, Egyptian
and Central American bonds, and will be
shy Of them in the future. They are now
looking more to the quality of securities
and less to heavy discounts and high rates
of interest. And here is where the bonds
of this country meet their views. Now, it
is well known, of course, that large sums
of our 90 bonds, which have have been
called in. are held in Europe. These
bonds are redeemable in gold; and it was
serious question with the government as
to what the effect npon the Treasury would
he by the action of European bondholders
Would they send over the bonds and make
drain upon the gold reserve instead of
replacing them by the new four per cents ?
Such a course would have embarrassed
the treasury, weakened our credit abroad
and doubtless retarded refunding at home
Now not only has all apprehension from
this possible source of danger passed but
n demand for the new bonds has arisen
outside of circles where the old ones were
held. Besides the six per centum FIVE
twenty bonds beng exchanged for the four
per cents new investors i'm our securities
are taking the latter in liberal quantities
As these four per cents run thirty years
they offer inducements of the highest
character to the conservative capitalists Of
Europe, who like long investments. This
new outlet for our lower bonds of course
insures the sale of the entire lot at an early
day. The demand for them across the
water will stimulate the demand at home,
though the sale of Sl20, O00, 600 since the
first of the present month shows that no
stimulus is now needed to carry on the re-
funding at a rapid rate. Every 500, 0OO,-
900 of the skies replaced by the tours
saves two million dollars year in interest
TO the Governments matter Of no small
interest in these hard times. OF the five
twenty bonds of 81 bearing six per cent
and Of the ten-forty bonds at five per cent
both Of which are now redeemable, the total
amount outstanding is about $432. 900, 900
In 81 $2S3, 0O0, 000of skies will be reached.
But if there is no setback the 1882 ,O00,-
600 will be funded before the 81 bonds
are due. The high estimate which IS put
upon our credit in Europe, and the rapid
tv with which the low interest bonds are
selling at home speak well for our pres
ent and future financial standing Albany
journal.