MATTERS OF FINANCE by L. McCoy

Seventh-Day Adventist Publishing Association · Battle Creek, Mich. · Thursday, March 4, 1880

FromThe Advent Review and Sabbath Herald, Advent Review and Sabbath Herald, Vol. 55, No. 10

MATTERS OF FINANCE.

By L. McCoy

It is a fact well known to those who are familiar with the finances of the country, that money is becoming more plenty, and rates of interest much lower. In fact, capital of all kinds is seeking safe and permanent investment, at remarkably low rates of interest. Stocks bearing a low rate of interest, well secured, command a high premium.

In 1879 the government issued a new series of bonds at the unprecedentedly low rate of four per cent, which were intended for the masses, and not for sharks or moneyed capitalists. Legal steps were taken to prevent a monopoly of this kind, by limiting to each person the sum of one hundred dollars. It was found that even the large amount issued was entirely inadequate to supply the demand. And it is said that the government is thinking seriously of issuing another series at three and one-half per cent.

But the object of this article is to call the attention of the friends of the Sanitarium, Publishing House, and College, to the facts above stated, and the fact that the U. S. government finds no trouble in getting means at four per cent.

With these facts before us, and also remembering that we profess to believe the hand of God has planted these institutions, and that they have grown up under his fostering care, why can we not safely intrust our means with these institutions at a rate of even five or six per cent interest?

We can assure our friends that, with returning prosperity in financial affairs throughout the land,

and with the renewed energy given industrial pursuits, and with the unlocking of the hitherto unavailable millions, we may confidently expect continued increase in our business and earnings, as well as a decrease in our expenses and outlays. This will enable us to more rapidly reduce our debt, and thus substantiate our claims to the confidence of those who have invested their funds with us.

We inquire, Are the bonds of the government safer and better than the bonds of these institutions? If so, we will give the government the preference. But if we believe the Lord is guiding affairs and shaping the course of our institutions here, we shall show our faith by our works.

In view of the foregoing facts and conclusions, it has been decided by the Board of Directors of the Health Reform Institute to call in the series of bonds which are payable March 5, 1880; but not due till March 5, 1883, as they draw interest at the rate of eight per cent. It is the design to re-issue a portion of these at five or six per cent, if thought advisable, and if the holders wish to retain them at that rate.

At the time these bonds were issued, money was dear, and readily commanded ten and twelve per cent in the West. Many of our brethren and friends called in funds placed at ten per cent, and loaned to the Sanitarium at eight. For this they have our thanks, and gratitude, and so much treasure laid up in Heaven. But now money is vastly cheaper, and as the custodians of these sacred institutions, we deem it our duty to save every dollar we can, justly and honorably. The bonds provide for this step, as this state of affairs was anticipated by those who drew them.

Money is now being offered us at from five to six per cent, and we feel it duty to reduce the rate of interest on our bonds to these figures. And we know that our friends will congratulate us on having reached the point where we can do this.

In the notice sent to those holding the bonds of the Sanitarium, we say, that if you wish the bonds returned to you with amount of coupons reduced from eight to six per cent, please inform us at once. There are thousands held in the banks by our brethren all over the country that might be invested at a low rate of interest here, and thus be of substantial service to the cause. Thousands are lost annually by loans at a high rate of interest to those who are engaged in speculations, and who take heavy risks.

Brethren, let us show our faith by our works, and use our means in such a way as to be a real benefit to the cause of God and a blessing to ourselves.

In behalf of the Board of Directors,

L. McCoy.

Battle Creek, Mich., March 1, 1880.