NEW 7-30 GOLD LOAN OF THE NORTHERN PACIFIC RAILROAD CO. Secured by First Mortgage on railroad and land grant.
[Philadelphia, PA?]: Jay Cooke & Co., nd [ca. 1870-1873]. Broadsheet. 43 x 25 cm. Promotional for a loan at 7% per annum for 30 years, principal and interest payable in gold, or if desired converted at 1.10 into real estate. Text describes the land granted the railroad, the Emigration Scheme to settle and develop the Land, work already begun, services to be provided by the railroad, etc. On verso is a map showing the route of the Northern Pacific Railroad from Duluth, Minn. to Bellingham, Washington. Old fold lines, a few small spots, else very good. Item #70529
Jay Cooke & Co. was originally created in 1861 as a partnership engaged in the banking business in Philadelphia. Separate companies were also formed in New York and Washington, DC and the three were combined into one in January 1871, with assets exceeding $6 million. "In addition to their large negotiations of government securities they had conducted an extensive business in the negotiation of railroad bonds and paper, as well as the ordinary business of discounting and negotiation of other securities." The Panic of 1873 caused many disruptions including destroying "all market for railroad bonds for the time being... [reflecting] the various antagonistic influences then at work against the railroads of the country, culminating during the spring and summer of 1873 in almost total destruction of the credit of the railroad securities." Jay Cooke & Co. suspended operations in September 1873, and its assets, including Northern Pacific Railroad stocks and bonds were sold by order of the courts in December of that year. [see: an article in the Philadelphia Inquirer, July 23, 1874, for a lengthy discussion of the company and its finances].
Price: $375.00