TILDEN TO N. W. PARKER
"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 $16,000 per mile. I think the lines likely to be productive, and the investment is managed with a cautious and conservative spirit. I gave 82½ and the accrued interest for these bonds. I will let you have enough of them to come to your money and interest while it has been in my hands at 7 p. c., tho' I generally have a considerable sum lying in bank at 5—say, 40 or 50,000$.
"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.
"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."