Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1894-01-31
GOVERNMENT BONDS.
SOME BUYERS FORGET TO COLLECT
INTEREST OR PRINCIPAL.

How Interest Piles Up.
A number of snug fortunes are lying
in the United States treasury waiting
for somebody to step up and claim them.
This money is due ON bonds long ago
called in. Some of them have never
been cashed by the holders. On the
"old debt" which embraces all loans
made to this government up to 1887,
kl21 900 is still owing. Since that date
more than 81 ,O0O, 600 has accumulated,
being uncalled for by the persons en-
titled to it. either through negligence or
for other reasons.
A considerable fraction of this great
sum is now held by the treasurer of the
United States in the shape of checks.
Interest on registered bonds is paid by
check, but as people are constantly
changing their addresses it not infre-
auently happens that track is lost for
awhile of an individual bondhOlder. I'm
der such circumstances the quarterly in
terest checks are retained as they fall
due and in the course of time pile up.
They are kept for an indefinite period
and are good forever.
There are such checks in the treasur-
er's office now which have accumulated
during more than 10 years. On the 9TH
er hand, knowing that they are always
good for the money they represent, peo-
pie often keep these interest checks, put
ting them away and boarding them. just
as if they were so much cash. Only the
other day batch of 40 checks for 81
each was received at the treasury. The
owner had simply put them away as
they came in year after year.
The millionaire is commonly repre-
sented as engaged in clipping coupons
from bonds. This is an egregious error.
Rich men, as rule, do not hold coupon
bonds. Such bonds are not safe prop
erty. They are always payable to bearer
like treasury notes. If lost, the govern
| ment will not replace them. According
ly, for the sake of security. people are
constantly exchanging them for regis
tered bonds. The sum total of coupon
bonds is now about $70,000,0 900, mostly
| in the hands of small holders.
Registered bonds are rich mems prop
erty par excellence. At present about
1900, 900, 900 worth of them is held by
private individuals. Of this great sum
kS7. OOO. 900, or not far from one-half, is
owned by / 900 persons, roughly speak
ing. whose holdings average $4,000.
The names of these fortunate individ-
uals are kept secret by the treasury.
Some of the fortunes possessed in this
shape are enormous. Among the great
est holdings are those Of the Wander
bits. Old William H. Vanderbilt had
al, 100000 in registered bonds at one
| time.
About 20 years ago $4,000 worth of
the consols of 1865 and 1867 We're stolen
| in Havana. The thief altered them by
erasing the name from the face and sold
them to ignorant persons. They were
for 81 900 each. Ever since then they
have been coming in to the treasury
through banks and otherwise. Of course
they were useless to the holders, being
registered and only payable to the orig
inal owner.
The original owner lost nothing, OF
course. All he had to do was to notify
the secretary of the treasury, giving an
affidavit and bond of indemnity. and
the stolen consols were replaced. That
is the advantage of registered bonds.
The number of such bonds that have
been lost and stolen is astonishing. A
list of them, numbering nearly 1000. is
printed and circulated by the govern
ment.
It is called the .Gveat list and is de-
signed to warn bankers and Others
against accepting securities of the num-
bers mentioned. Some time ago report
came from indianapolis of bond that
was said to have been destroyed. Aft
lavits, etc., being furnished, new one
was issued to replace it. Ten years later
that identical security was forwarded to
the treasury from Holyoke, Mass.
It had been found in a lot of waste
paper at a paper mill. There was no
question of fraud in this case. The own
er lost it and supposed that it had been
burned.
A great many bonds called for re-
demption 90 years and more ago have
never been presented forpayment. Some
Of them have doubtless been put away
and forgotten. It is imagined that 9TH
ers have been lost at sea together with
their owners. The quantity of gold and
silver in coin and bullion sunk from
wrecks in the ocean amounts to many
| millions of dollars in the course Of a CEN
tury.
Only about 2,0O0, 900 worth of bonds
is possessed by comparatively poor per-
cons, and these in sums of $500 or less.
About 80 years ago Uncle Sam lent a
lot of money to help build various trans
continental railways. It was understood
that the companies would refund the
cash a. soon as they got well started.
There is little likelihood that any con-
siderable part Of it will ever be paid.
There is still owing e64, 000. 600 Of orig
inal indebtedness, plus pa, 0oO. 600 Of in
terest.
To raise this money for the use of the
railways, tip government issued bonds
st differen t3mes from 1855 to 1859. They
were to run for 80 years at 8 per cent
The treasury il still paying this big in