The farmers' union. (Memphis, Mo.) 1891-1895, 1894-11-22
NEW ISSUE OF BONDS.
VIII Increase Hearing Debt Of
the United state, One-Twe1fth.

VIII Increase 1ntere>t- Hearing Debt Of
the United state, One-Twelfth.
The contemplated new issue Of bonds
by the government. if it be = $1,000
VD issue. will Increase the interest bear
ing debt OF the United States about one
twelfth. 1t WAS S1Sl,ts;a.Si. Jan. 1.
1S9i. The who&e amount of bonds issued
by the government from the beginning of
the union to 1881 was the enormous sum
of S1O.6.D. ui1UN. OF course Il good deal
of this is made up of bond ISSUES 10 re-
fund other bonds which were falling due
and which the government was not ready
III the tiEie To pay. 50 that this amount
Is a larger one than the interest hearing
Indebtedness which the United States
has been, or will be-. called ou ID 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-
sentin, three months interest on the
bond To which il is attached, ur If the in
terest is paid >emi-anuuaNy. six months
interest. The coupons are al numbered.
When interest is due the owner of the
! bond cuts it off. and if he ha> Il bank ac
count. Us hou,ii,olders usu"iiy to. Ii, do
po>itS it Jus. rs he would check ar draft
and il is credited sn his account. The
bank gets them casl.cd ~ he snh!reas-
! ury. Ii is clipping off these coupons that
is popularity supposed - he the principal
occupation OF bondhol,ers.
Registered bonds nave no coupons.
Each bond is made payable ~ the person
whose name is written un the face Of il.
\ record OF these i kept iii the office of
the register of the treasury: When an
| owner sells one he transfers il by indor>e
mant Witnessed by persons appointed by
th" government. and the ;-.ln>frr is re-
corded rs the original ovE~r>htp WAS. \
month before intcr"S; Iay tn" clerks
iii the registers office - through the
| books. and treasury drafts are made cut
for the interest due. pavailr to the per-
son VIII" stands of record rs thr owner
"f the bend. The largest amount for
! which Il single hon! was eyer issued Ivy
! the government WAS fnc SI.t. SEQ 600.
| That was the amount paid y, the British
| government IL Secretary %: State Fish
! under the Geneva award. Congress
! had failed to make any pro, iSicn for the
disbursement Of the money. SO pending
legislation on Tie subject Secretary Fish
! invested it in government ; per cent
bonds ana one l~id. en=rnsSrd by hand,
was issued to him for the whole amount.
| The eldest United States bond known
to cNis; is in the rossrsSion of the treas
ury. 1t ia about the size of Il 81 bill, and
! acknowledges the receipt Of 500 from
John Bnnficid and promises 10 pay it
three years from date with interest at 4
per cent. The promise WAS redeemed.
Tie 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 1115. when what were called loan
office certificates were negotiated. Part
J of these bore interest payable i'll specie
and part in paper money.
| In 1880 the first large bond issue was
made. The amount was SGi .00OOOO and
the rate Of interest was q 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 rcvoIu-
ton The debts incurred by the several
states were assumed by the national gov
ernment This was Alexander Hnmil-
tons scheme and it was bitterly opposed.
In 1872 another loan was made for
| war purposes. The amount Of bonds in
sued ut this time was 81 .RO.0OO.'
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 Il loan
of $1JO.O0O.NN, 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 il was this loan which estah.
lislled the credit of the country.