New-York tribune., 1879-01-20
CovrJyTED rrNDING SUCCESS.

CONTINUED FCNDING SUCCESS.
Another call for $2O, 1000, 900 of the six per
cent bonds of 1867 makes $9O.OOO'OOo OF
that issue called since January !. 1hen TJlo'-
Gl4OOO of the consOls OF 1861 were
outstanding. and Secretary sherman was
by some thought too sangulne Wheh
he expressed his confidence that all
of them would be refunded before
the close of this year. Within only fifteen
business days, nearly 80 per cent OF the en-
tire issue has been called, and the last oi lheh
would be called, at similar rate OF pro-
greSs, more than a month before the hrst
call will mature The sale of four per
cents since resumption has been more rapid
than that of any other class of bonds
since refunding began. The most powerful
syndicate of bankers ever formed was never
able topush the sales. even Of the -four and hall
per cents, beyond 50,O0O,OOO III montil-'hc
amount sold in March, 1871 An equal
amount of four per cents was subscilDcu
from July to August D, 1877. But .thc
sales since January l have averaged anoat
S6. 600. 600 for each working day. The largest
sales, those of January II, were %l3.93O,2OO.
1t is known that "a considerable part OF theSe
and other subscriptions early last week
were of speculative character. As the
First National Bank promptly picked
I'D about %12,OOO,OOO of these bonds.
which were sold at 99's to 1926
by banks subscribing for them at par. 1t had
no occasion to send direct subscriptions TO
Washington for n ike amount at par IN order
to supply its customers. and the subscriptions
were comparatively small on Friday and Sat
ufday Such banks rs have virtually borrowed
money from the Government 10y subscribing
for bonds in excess Of demands from Gus
TONERS, will be the less likely to continue
the operation in view of the fact that the
calls maturing during the first half OF Aprli
will be uncomfortably large. As The Sccrc-
tary will hardly venture TO call upon the
banks for 500, ,OOO, 900 within eighteen days,
he may not impTObably begin to draw
in the sums on deposit before the expiration
of the calls. As the possibility OF loss on
sDeculativc subscriptions becomes more clear,
operations of that character are likely to
diminish. But there is no reason to anticipate
any diminuton in the subscriptions on account
of holders Of six per cents or other per
manent investors.
Some surprise has been expressed ut the
fact that, while many millions OF the four
Ter cents have been taken by permanent
investors who are not holders OF called
skies, the purchases of railroad bonds and
the safest investment stocks, have also
been very large. Daring last week
the recorded sales of railway bonds
III the Stock Exchange amounted to about
$4,000 900, and during the previous week to
nearly $j,OOO,000. 1t is presumed that the
mrecordcd sales were much larger. But 1t
should be remembered that the amount dis
bursed in interest and dividends has been
very large. Besides the January interest on the
public debt, about $22 600, 600, the interest on
bonds of solvent railroads amounts to about
$47, 900, 900 each half-year, the greater part
of which is payable in January the half
yearly dividends on paying railroad stocks
amount to at least $50, 100000; the interest
on municipal, county and State bonds which still
nav promptly must exceed SO 100000 each
half-ycar; the dividends on National bank
stocks are about 81 100000 half-ycaIly
and the dividends on manufacturing stocks,
even in the present depressed condition OF in
dust1les, must exceed S40.000,0O0 half
YEARLY. OF about $161, 600 thus dis
bursed in interest and dividends for the half
wear exclusive of interest on the public
debt. certainly more than half Is paid in Jan
nary, so that the sum disOursed in January,
TO be reinyested, or applied to the personal
expenses of investors must be over $780,
600, 600. As long as United States bonds,
and other first.class securities, are Of
fered at low rate and in large amounts,
ne tln Ill, a
will naturally seek such investments, the more
because such securities may be expected to
advance in price before the return of full
prosperity III commerce and manufactures in
vitcs enlargement of the capital therein eni-
plOyed.
AT the same time, it is well known that
there has been large accumulation of
wealth during the past two years which
has been held back from permanent in
ye.tment. Prevailing distrust, the appre-
hensiOn that even the great railroads might
he dragged down by extreme competi-
tion. and that the Government itself might be
started on the road toward bankruptcy 10y
victory of the rcpudators, has caused very
many to keep their funds within easy
rcach. There has been little induce
ment to put new money into branches
Of industry in which production had
already outrun consumption. DiStruSt of
savings banks was stimulated by many fail
urcs. Loans on mortgage were undoubtedly
reduced IN amount, in part because borrowers
were struggling to get out OF debt, and in
pirt because the popular temper AT the West
and South in respect to public loans
offered little encouragement 10 lenders. Thus
= large proportion of the sum diSburscd last
wear for interest and dividends undoubtedly
remained unemployed, awaiting the suc-
cess of resumption and the establish
-. Is q p,ore solid h1siS for futrr,