The Providence news. (Providence [R.I.]) 1891-1906, 1898-06-17
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can hold.-They are attractive,
not only because Of the absolute
security offered, but because there
is at all times a puble market for
them on Which holders can quickly
sell; and they also offer the most
desirable form OF collateral if the
holder wishes to secure a tempo
rary loan. The fact that United
States bonds are not subject to
taxes of any character-Federal,
State, or municipal-is a valuable
feature of that form of investment.
United States bonds are issued i'll
both coupon and registered form.
A coupon bond is payable to the
bearer. 1t may be bought and
sold without sormality as freely as
any kind of property and without
Endorsements of any kind. Owing
to the freedom of transfer, coupon
bonds are usually preferred by per-
sons who expect to hold them but
a short time. Their disadvantage
for the person who wishes to make
a permanent investment lies in the
danger that they might be lost or
stolen, in which case the loss to the
owner would be as complete as
would be the loss of a bank note.
The coupon bonds take their name
from the method by which interest
is collected by the holder.
Printed ON the same sheet with
the bond is a series of coupons or
small certificates Of interest due,
which r SO designed that one is
cut off at each interest period.
Each coupon bears the number of
the bond and shows the date of the
coupons maturity. The holder of a
coupon bond, ateach interestperiod,
detaches the coupon due that day
and collects it. The coupons are
payable at any Sub Treasury, and
may be collected through any bank,
and will usually be accepted by
any merchant having a bank ac-
count, with whom the holder of
the bond has dealings. The hold
er OF a coupon bond may at any
time have it converted into a reg
istered bond free of charge.
A registered bond is payable to
the order of the owner, and car
only be transferred by being prop
erly Endorsed and assigned by the
owner. Such assignment is made
by the owner filling in the blank
form on the back of the bond, and
must be witnessed by some officer
authorized by the regulations OF
the Treasury Department TO wit
ness assignments. The owner of the
registered bond who wishes to part
with it writes his name on the back
of the bond in presence of the off,
GER then the witnessing officer
writes his name in its proper place
and afixes an impression of his
official seal.
When the owner of a registered
bond disposes of it and has proper
ly assigned it, he delivers it to the
new owner, who should at once
forward it to the Register of the
Treasury for the transfer on the
books of the Department. The
Register cancels the bond so for
warded and issues a new bond in
name of the new owner, and sends
it to him by registered mail. The
Department makes no charge for
transferring bonds.
Coupon bonds are issued in de-
nominations Of SEQ, 500, $500
and $1,000. Registered bonds are
issued in denominations of $40,
$Ioo, $500, $1,000, $1,000, $4,000.
The war loan which is now be-
ing offered will be sold to SUBJ
scribers at par during the period
of subscription, which ends July
Ia, 1893. The method of sub
scription has been made as simple
as possible. Blank forms may be
obtained at every money-order
postofhce, and at most of the banks
and express Offices, and on these
forms is clearly indicated all that
it is necessary for the subscriber
to fill out. The subscriber may
himself mail to the Treasury De-
partment at Washington the blank
form filled out, together with his
remittance covering the par value
of the amount of bonds for which
he wishes to subscribe. That re-