The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1894-11-22
NEW ISSUE OF BONDS.
VIII increase Interest-Bearlng Debt of
the United States One-Twa,fth

VIII increase MISUNDERSTANDING Debt of
the United States One-Twelfth.
Inc contemplated new issue of bonds
D! the government, if it be a $4,000.
oOO issue, will increase the nterest-bear-
ing debt of the United States about one
twelfth. 1t was $3.50, O39.31J Jan. 1.
iS9i. The whole amount of bonds issued
Dy the government from the beginning Of
the union to 1880 was the enormous sum
OF SlO,69O, 100000. OF course a good deal
or this is made up of bond issues to re-
fund other bonds which were falling due
and which the government was not ready
at tbs tlrce to pay. So that this amount
Is a larger one than the Understanding
Indebtedness which the United States
has been. or will be, called on to pay. q.
The United States issues two kinds of
bonds. One kind is known as registered
bonds, the other as coupon bonds. The
coupon bonds are payable to bearer, and
attached to them are coupons each repre-
senting three months interest on the
bond to which it is attached, or if the in
tcrest is paid ~semi-annually, six months
interest. The coupons are all numbered.
When interest is due the owner of the
bond cuts it off, and if he has a bank ac-
count, as bondhOlders usually do, he de-
posits it just as he would a check or draft
II it is credited to his account. The
/ bank gets them cashed at the subtreas-
ury. 1t is clipping off these coupons that
is popularity supposed to be the principal
occupation of bondholders.
Registered bonds have no oupons..
Each bond is made payable to the person
whose name is written on the face of it.
n record of these is kept in the office of
the register Of the treasury. When an
owner sells one he transfers it by indorse-
ment witnessed by persons appointed by
the government, and the transfer is re-
corded as the original ownership was. A
month before interest day the clerks
in the registers office go through the
books, and treasury drafts are made out
for the interest due, payable to the per-
son who stands of record as the owner
of the bond. The largest amount for
which q single bono was ever issued by
the government was for SO. 800, 900.
That was the amount paid by the British
government to Secretary of State Fish
under the Geneva award. Congress
had failed to make any provision for the
disbursement of the money. so pending
legislation on the subject Secretary Fish
invested it in government 8 per cent
bonds and one bond, engrossed by hand,
was issued to him for the whole amount
The oldest United States bono known
to exist is in the possession Of the treas
ury. 1t is about the size of a So bill, and
acknowledges the receipt of $500 from
John Bonfield and promises to pay it
three years from date with interest at 4
per cent. The promise was redeemed.
The first lOans ever negotiated by the
United States were with foreign coun-
tries, Holland, Belgium, Spain and
France taking up the bonds. The first
issue of bonds for home Investment was
in 1875, when what were called loan
office certificates were negotiated. Part
of these bore interest payable in specie
and part in paper money.
In 1870 the first large bond issue was
made. The amount was SOL. OOO,OOO and
the rate of interest was 6 per cent. This
issue was made to fund the debts in
Cured by the various states of the United
States to carry on the war of the revolu-
ton. The debts incurred by the several
states were assumed by the national gov
ernment. This was Alexander Hamil-
toms scheme and it was bitterly opposed.
In 1912 another loan was made for
war purposes. The amount of bonds is
sued at this time was S11 ,OOO.000.
There were other loans made between
that and the beginning of the civil war.
The year 1861 and the beginning of the
war marked the era of large bond issues.
At this time Secretary Chase negotiated
with the bankers of the country a loan
of $15O,OOO,O00. the largest that up to
that time had ever been made. There
were larger ones made during the war
and since to refund other issues falling
due, but it was this loan which estab'
lished the credit of the country.