"NEW YORK, _March 14, 1873_.
"My dear Sir,--I have been waiting until something should turn up cheap
enough and, at the same time, safe enough to warrant the reinvestment
of your money. There are gold-interest-bearing bonds at about 90--7 p.
c.; but I wanted something cheaper. I sometimes hesitate about taking
for you what involves so much reliance on one's own judgment as is
necessary, where you buy securities new and not well established in the
market.
"Some time ago I bought 50 bonds on two railroads--now consolidated
in Texas. One is the Houston and Great Northern R. R., the other the
International R. R.
"The bonds are $16,000 per mile, and many of our best business men
have invested in the stock, which is issued at $16,000 per mile. I
think the lines likely to be productive, and the investment is managed
with a cautious and conservative spirit. I gave 82-1/2 and the accrued
interest for these bonds. I will let you have enough of them to come
to your money and interest while it has been in my hands at 7 p. c.,
tho' I generally have a considerable sum lying in bank at 5--say, 40 or
50,000$.
"We sold 6 of your bonds, which gave 6 per cent., or $360 in gold.
"By taking off one coupon--if you can wait--the money and interest
would buy about 7 of these bonds. That would give 490 in gold, or a
gain of 130 a year in gold.
"Your money, according to the a/c sent you, was $5,334.46
Int. to Mar. 14 190.86
________
"As my young man has computed 5,525.32
Int. to July 1 115.91
________
7000 at 82-1/2 5,775
Deficiency 133.77
________
"Take off 2 of the coupons--making the other begin
to run July 1 140
_________
Surplus $6.23
"I would like to have you inquire into the matter if you incline to do
this, so as to act as much as possible on your own judgment. If you
wish to come down here I will be happy to consult with you and put you
in the way of making up an independent judgment.
"If you incline to something more current you can buy Cleveland and
Pittsburg stock--which can be converted at any time into money; but it
will only give you 7 p. c. currency on 90.
Very truly yours,
"S. J. TILDEN."