Crawford avalanche. (Grayling, Mich.) 1879-19??, 1894-11-22
NEW ISSUE OF BONDS.
VIII Increase Interest Bearing Debt q
the United States One-Twelfth.

VIII AnCFone0 Ant6T0ot-DGnFinK DoDt Oh
the United States One-Twelfth.
The contemplated new issue of bonds
by the government. If II be a 0,0O0,-
900 issue, will increase the interest-bear-
ing debt Of the United States about one
twelfth. 1t was $685., ,039,315 Jan. 1,
1894. The whole amount Of bonds issued
by the government from the beginning OF
the union to 1880 was the enormous sum
Of $40, 800, 100000. OF course a good deal
of this is made up of bond issues to re-
fund other bonds which were falling due
and which the government was not ready
Mt the time to pay. So that this amount
is larger one than the interest bearing
indebtedness which the United States
has been, or will be, called on to pay.
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 ii is attached, or if the in
terest is paid semi-annually, six months
interest. The coupons are all numbered.
When interest is due the owner of the
bond cuts il 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
and ii 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 coupons.
Each bond is made payable to the person
whose name is written on the face of it.
A 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 bond was ever issued by
the government was for $15, 500 900.
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 lSSutu 10 MN IOT tLe WuOic
The oldest United States bond known
to exist is in the possession of the treas
ury. 1t is about the size of a s. bill, and
acknowledges the receipt of $500 from
John Bonfield and promises to pay il
three years from date with interest at
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 1890 tie first large bond issue was
made. The amount was $64, 100000 and
the rate OF interest was 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'
tons scheme and it was bitterly opposed
In 1912 another loan was made fol
war purposes. The amount of bonds is
sued at this time was $11 100000.
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 loan
| Of Si50,000,0 900, the largest that up tc
that time had ever been made. There
were larger ones made during the wal
and since to refund other issues falling
due, but it was this loan which estab.
,ished the credit of the country.