551
PAPERS OF MIRABEAU BuoNAPARTE LAMAR
the nominal product ·of the loan, until the reimbursement of one-fourth of the bonds issued shall have taken place. Certainly, we are far from having the intention to compare the situa- tion of Texas, an infant and thinly inhabited state, to that of FranC'e, the numerous population of which makes the soil richly productive. It is exactly b€cause her situation is so unequal, that Texas wishes to bor- row money, and must borrow it on conditions of credit alike unequal. But it is not less interesting for the lender to compare the advantages of these two modes of investment. A very simple calculation shows at once that the first thousand bonds which will be drawn out in 1843, will derive from the investment in 5 per cent. stock, a superadded bene- fit of 40½ per cent. in fact. The loan being issued at 75 per cent., the lender will have paid 750 francs in exchange for a bond of.......................1,000 fr. 00 c The interest during two years at 6 per cent. will have produced, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Together, .... , ............ 1,120 fr. If these 750 francs had been invested in 5 per cent. stoek at the actual price of 114, the annual interest would have been 52 fr. 90c.: consequentJy, one would possess a capital of, . . . . . . . . . . . . 750 fr. 00 c. And receive 2 years interest, . . . . . . . . . . . . . . . . . . . . . . 65 80
Together, . . . . . . . . . . . . . . . . . 815 f. 80 c. 815 fr. 80
Making a difference of. . ... . . . . . . . . . . . . . . 304 fr. 20 c. Consequently, this difference of 304 fr. 20 <'. on 750 is equal to 40 fr. 56 c. per cent. benefit on the first investment over the second, and finally a bond drawn out in 1843, will have produced to the possessor, 1st. Two years' interest at 6 per cent. 120 fr. 2d. The difference of the reimbursement of the bond at par, and the price at which it has been· issued, 250 Equal to 49½ per cent. · In following up this calculation for four years, we form the annexed table: Annual drawings. ]st drawing, 1843, 2d 1844, 3d 1845, 4th 1846, Together, . . . . . . . . . . . . . . . . . 370 fr. Overplus on the investment in 5 p. c. stock. 304 fr. 20 c. or 40 fr. 56 c. per cent. 331 30 44 17 do. 348 40 47 78 do. 385 50 51 40 do. Up to this fourth drawing inclusive there is an absolute certainty of thr. reimbun,ement, as it has for guarantee the fourth of the loan in- vested in Treasure bills and not paid to Texas, but the situation of the h.Jlders of the bonds which haYe not been drawn in the four first draw- ings, shall not be more unfavorable than at .present; for supposing, against every probnbility, that no sales of land should take place, the
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