The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-06-15
THE NEW GOVERNMENT LOAN.

THE NEW GOVERNMENT LOAN.
The promptness with which the new war
loan has been put upon the market and the
completeness of the arrangements for piac-
ing it show excellent business management
and executive ability. In these respects it
is a record breaking transaction for never
before was a government loan placed on the
market and the machinery for handling it
set in full operation on the very day of the
passage of the law authorizing it. The
manner in which this has been done shows
a practical knowledge of business details
and experience in large financial transac-
tions which the country has been led to ex-
pect from Secretary Gage, who has shown
himself fully equal to every demand of the
kind.
The character of the loan, the machinery
by which it is placed before the people and
the manner of subscribing for it are mat
ters of so much Importance as to call for
the widest publicity, and in the interest
of it's readers, as well as of the government,
the Journal wishes to contribute to that
end. The main points are as follows: The
bonds will bear interest at the rate of
per cent. per annum, payable quarterly;
they will be redeemable at the option of the
government in ten years, and payable in
twenty years; interest and principal will be
payable in coin, which means gold or its
equivalent; the bonds are of the denomina-
tons of $2O $780, $500, 81 OOO So 900 and $4,000;
subscriptions can be made at any national
or state bank, any money-order postoffice
or any express office in the United States
of subscriptions can be made in postoffice
money orders or in bank drafts or express
money orders; subscriptions for $500 or less
must be paid fully at the time of subscrib-
ing, and any person subscribing for more
than $500 will be permitted to take his bonds
in five equal instalments; the bonds will
be dated Aug. /, 1898, and will be delivered
to subscribers free of expense for trans
portation as soon after that date az posi-
BILE. These are the main features of public
interest, and if further information on the
subject is desired it can be obtained from
one of the circulars issued by the govern
ment and to be had at any bank, money
order postoffice or express office. An impor-
tant feature in the case is that the bonds
will be exempt from state or municipal tax
alton. This will add materially to their
value making the annual per cent. inter
est equivalent to Az or more. according
to the rate of taxation thus escaped.
The loan is a very attractive one, and
should be very popular. In offering the first
$780, GOO, 600 to the people in amounts of from
500 to $500, through machinery which will
reach all parts of the country and give
subscribers at small money-order or ex-
press Office equal facilities with those in
New York or any other money center, the
government has shown disposition to deal
with absolute fairness. 1t would be graft
flying if the people would make a generous
response to it's call. Aside from patriotic
considerations and the fact that the gov
eminent needs money to prosecute the war
the investment is an inviting one. No other
investment is as safe as a government bond,
and those investments which offer the high
est rate of interest are the least safe. Gov
eminent bonds can always be converted
into money instantly at their face value.
with premium and interest added. Other
stocks may depreciate in value or be diff
cult to realize upon, but with government
bonds this is never the case. They are bet
ter than gold coin because they bear in
terest and are always convertible into gold.
For these reasons the Journal would ad-
wise every person who has money to loan
or invest iii small sums to place it in these
bonds Large investors, banks, insurance
companies and trust companies do not need
any advice, as they will get all they can
of the bonds anyhow. The first appeal is
to the people, and no allotment of more
than $500 will be made until every subscrip-
ton for less than that amount hasssbeen
filled. This is the first time an effort has
ever been made in this country to negotiate
a distinctly popular loan, and it would be
an impressive illustration of our national
resources if the whole amount offered
should be taken in comparatively small sub
scriptions.