The Camden chronicle. (Camden, Tenn.) 1890-current, 1894-04-06
BILLIONS IN U. s. BONDS.
HOW THE GOVERNMENT BoRRoWs
MONEY.
Coupon and Registered Bonds A
Notable Attempt at Counterfeit
ing United States Securities

OulJCu GldltS' luCy art but uIOD
in the bucket with what Uncle Sam has
borrowed since he began business a
little more than one hundred years
ago. The total amount Of bonds sold
bg Ihg G9, y.a.5 from the begin
Gtng OF the Union down to the year
1880 was $40, 800, 900, 900, a sum which
makes the mind dizzy and which would
buy up dozen of the small
monarchies of Europe This vast sum
includes the bond issues Of the United
States up to that time. Many of them
were made to fund previous loans, but
interest was paid ON every one Of these
dollars, and the gold which has been
spent in this way by Uncle Sam would
gid the great departments of Wash
ington and leave enough TO make
solid gold statue as large as that of the
Goddess of Liberty which stands on
the Capitol dome. This last loan is
for $4,000, 000 The interest on the
bonds is five per cent, but Uncle Sam
has sold them at such rate that he
pays in reality only three.
Have you ever seen a Government
bond?
1t is only piece of paper, but it is
often worth its weight in diamonds.
The bonds of the present issue are in
denominations of $50, 500, $1,000 and
$40, 900. The bonds are of the same
size and the difference is shown by the
figures on their faces. Four of these
would make goodsized dinner nap
kin, and [ would like TO have a set of
napkins made up of these SO, 900
bonds. Each napkin would be worth
$40, 900, and the twelve would make a
nice snug little fortune Of $3.50, 900 or
nearly half million. These bonds
run for ten years and they bring in
five per cent interest. Each of the
napkins would pay $4,000 in the way
of interest, or $4,000 before they
would have to be redeemed for their
face value.
The new bonds are of two kinds.
One class is OF registered bonds and
the other coupon bonds. The coupon
bonds are payable to bearer and to
them are fastened number of detach-
able coupons about the size of an old
ten-cent shinplaster. The interest is
payable quarterly, and every three
months you clip Off these coupons and
cash them at the Treasury Of the Uni
ted States or at the banks. Any bank
in the country knows Just what they
are worth and will pay You the inter
est on them. You can use the coupons
and the bonds in business deals and
their value is so we'll fixed that they
/ could almost pass as money. The chief
danger connected with them is that
anyone can use them, and if the holder
of a coupon bond loses it the man who
finds it can turn it into money on the
next pay day. No Identification will
be asked az the bank by the man who
presents it, and the burglar who gets
hold of lot of coupon bonds consid-
ers them more valuable than so many
greenbacks or $50 gold pieces.
AS to registered bonds, these are Of
O somewhat different nature. They
have no coupons and are payable tC
the person whose name is written on
the bond. In the Office Of the registe:
of the treasury at Washington there il
a record kept of the men who hole
these bonds, and about a wagon loa(
of ledgers and journals are devoted t.
this purpose alone. As soon as a bono
is sold an account is opened with the
person who buys it between him anj
the Government, and in this is stated
the amount he paid for the bonds an(
the rate of interest. Every three
months the clerks so through The
books and make out set Of accounts
They notify the Treasurer of the Uni
ted States to pay all the interest du,
to the persons who hold these bonds
and this money is forwarded t.
them in the shape of a treasury
draft. As soon as the bond i
redeemed the account is closed. Ii
the owner of a registered bond desires
to transfer it to another the transfer
must be Endorsed upon the back of tn
bond before witnesses appointed by
the Government and a record of thi
must be made at the Treasury De
partment. As the interest is Away
paid to the last owner of record til
books for these transfers are closed
month before interest payment day
These registered bonds are the safes
investments known to the Unite
States, and rich men put large sum
of money into them. Only the fewes
cases are known where such bond
have been stolen. One of these oC
Cured few years ago when the Man
haitian Savings Institution was bur
glarized by Jimmy Hope and owe
81, 600, 900 of these bonds were stolen