The Birmingham age-herald., 1913-07-05

the bait must be ailuring The new and
presumably great republic of China baited
its financial hook sufficieGtly to cause its
offering of national bonds to be oversub-
scribed in Europe. But when China comes
to the time OF payment of these bonds the
payment at par win be about 20 per cent
more than the money received by China
for the sale of these bonds, exclusive of
the heavy rate of interest China was COM
PEELED to pay.
At an Earlier Day
Tennessee's recent experience and tie
fact that her issue of short time notes Is
now being peddled, as the term is, mas
revived recollections of an experience of
some 10 years ago At that time the credit
of Tennessee was rot as high as 1t has
been in recent years, although 1t was good
and in fact unimpeachable. 1t was found
expedient 90 issue considerable block
of state bonds and at the terms in the
bonds it was not easy to secure underwrit-
ing of the entire issue. Governor Taylor
visited some of the northern financial CEN
tres In the hope presumably of interesting
capital in this ISSUE When he was in
New York he met dashing, spectacular
operator whose home was in Boston ana
who had gained considerable notoriety of
a kind which justified applying to him
nickname. He was known as Merry"
Evans. His courage or audacity was not
always supplemented by good judgment.
He was a man of some personal attrac-
ton, although some of the larger opera
tors deemed him eccentric. The governor
of Tennessee met 'Nervy'' Evans in New
York and vas somewhat impressed by
him. Evans was gratifed that so great
man as a governor of an American state
should have shown a disposition toward
cordial companionship or fellowship,
Therefore Mr. Evans invited the COVER
nor of Tennessee to his home in Boston.
The governor was royalty entertained and
on the other hand Mr.. Evans was so
greatly impressed with the financial prop
osition which the state of Tennessee was
Offering that he agreed to buy and did buy
a block of the bonds at par value Of
81, 900, OOO
The struggles of that man to carry so
great financial ioad as this was con-
stant. He was Obliged to borrow a great
deal of money and he exhausted his credit.
and collateral in securing these loans.
Not finding any profit making market in
Boston or in New York for these bonds,
Evans went to Canada. hoping that he
might persuade Canadian capital to take
all or the gerater part of these bonds off
his hands. There was no question about
the credit of Tennessee then. It was high,
but In the condition of the money market
at that time the terms nominated in Ten
neSstt > DoHuS WSTb not Lelilpliie eHOuSii
to secure ready market for them.
Mr.. Evans finally succeeded in disposlng
of this large block of bonds. He may
have come out even in the transaction,
but If he did he war fortunate.
The recent issue Of short time notes by
Tennessee will be marketed no doubt Ii
small quantities. One investor having a
small amount of cash-about s10,000-made
haste this morning to withdraw the money
from his bank and invest it in the Ton
nessee notes. He heard of others who
were persuaded that they could do no bet
ter with a few thousands they had laid
aside than to utilize the money by invest
ment in the Tennessee notes. The very
fact that this issue of notes will be mar
keted in small blocks for the most part TO
those who have laid aside little sums
proves that there is money enough for in
vestment purposes provided temptations
are sufficient Six per cent and high
credit make fairly good temptation
Buying Bonds at This Time
Yet there is a large number of very
small capitalists who are at this time
ready to make investment of their savings
In bonds. These little investors are men
and women who have deposited their saw
ings in the postal savings institutions of
the United States. On June 80 the treas
urer of the Urited States received check
for approximately S117,0O0, for which the