The times. [volume] (Richmond, Va.) 1890-1903, 1899-09-03
NIKGINIA BONDS.

The brisk demand Of late for Virginia
bonds ana the rise in price of these
securities have been most favorably com
mented upon far and wide When the
bonds were first issued they sold at about
56c. on the dollar, but they have been
steadily rising In price until they are
now worth about Sc IL. and it IS believed
that when they finally get on a per
cent. basis they viii easily 80 90 par.
There is lesson here which we would
IMPRESS. when the hard times were upon
us IN 1896 this paper and others who
were opposed TO the free coinage Of silver
urged that the distress in the business
world was due to lack of confidence. 70
was contended that capital. which IS pro-
verbally a timid thing. had gone into
hiding because capitalists were afraid TO
make investments. Hence the so-caned
scarcity of money. There was really no
lack I'm the volume of money n existence.
but so long as it was I'm hiding It ala
not get into the channels Of trade. ard
there was a scarcity OF money I'm cir
cu1atton. worse than all credit was im-
haired and that made it appear that
more money was needed. 1t was further
contended that the remedy for this was
restored confidence That as soon as men
Of means should see that it was safe TO IL
vest, the money in hiding would begin
TO dow into the channels Of trade and
the streams which had run dry would
soon be overlooking.
That prediction has been literally ful-
filed. Confidence has been restored,
credit is playing its part In business,
and money is now plentiful for Oh icg'i-
mate enterprises.
But to the lesson which we Ind IN i"e
rise of Virginia state bonds What, we
ask has caused these securities 10 Use
in value? There are several minor rea-
sons. but the great underlying cause is
increased and increasing confidence in
vireinia's willingness and ability 70 pay
interest on these bonds as they inl cue,
and to create as the years 90 by q sink
ing fund with which TO retire them.
United states Q per cent bonds are now
quoted at jos T. That is the top notch
for 3 Der cent. bonds, for United States
bonds are recognized to be an investment
that IS absolutely safe. There is perfect
confidence in the willingness ana ability
Of the government to take care Of ''s
securities. ana perfect confidence of this
character carries with It the highest mar
ket price for securities involved.
In point Of fact, Virginia per cent
bond is worth as much as % United States
bond bearing the same rate of interest
IN all human probability our Virginia
bonds will pay their interest regularly
and VIII be redeemed at maturity. But
there is not the same public confidence
in the Virginia bond as there is in
government bond, and hence the differ
ence in price
The same condition exists with refer
ence to railroad bonds. Northern Pacific
per cent. bonds are quoted at l0S l-2.
Norfolk and Western as at 80. Reading
As at IS, and 50 ON. Zach Of these bonds
Yields The same rate Of interest and
the difference Of price is solely matter
Of public confidence.
A great many people have laughed at
the gold standard people when they have
talked about confidence. and some Of the
free silver leaders have done their best
to rldlcule the idea. But you cannot ridi
cuie fact Public confidence means
public credit, and whenever public credit
abundance OF money 20 carry on the
transactions Of life and there win always
be prosperity Shake credit and you
shake the very foundation of business
and prosperity Is lacking.