The Sun.
London, England, 1870-02-07 00:00:00

AIUERICAN FINANCE.

(From the Anglo-Amerzcan Times.)

In our last we commented to some extent upon
the U. S. Funding Bill of Mr. BOUTWELL, and also
upon the U. S. Consols Clearing Centres, as planned
by Mr. CHARLES BOWLES, of Paris. The objec-
tions we brought forward to certain sections of
both plans have been strongly commented upon by
many of our American readers, whose ideas we now
propose to present in defence of the feasibility of a
4 per Cent. Loan. The first ground taken by these
gentlemen is to the effect, that, however doubtful
such an experiment might have proved six or eight
months ago, or even at the present day, the posi-
tive gain in confidence evinced not only in the
United States, but in Europe, now indicates that
public opinion is rapidly changing. We are assured
that it is not to London alone that Mr. BOUTWELL
will make his appeal should Congress decide to
adopt his scheme, nor to foreign bankers as a class,
but to the people through the bankers as public
servants, more especially on the continent of Europe,
where much the largest proportion of United States
securities are now held—Germany and Holland
alone controlling four-fifths of the total amount, of
which the lowest estimate is over $700,000,000. It
is the growing opinion of German bankers, how-
ever much against their own interest, that the pro-
posed conversion would be successful with actual
investors, and the amount being small that it would
be mainly taken among the smaller holders, that
the fortune-making upon the Frankfort Bourse by
speculation in Five-Twenties is at an end, and that
the bankers must be content with their regular
business commission. This result has already been
strenuously opposed by these money kings, as also
by their agents and wire-pullers in the United
States. Opposed to that influence; however, is the
experience of those members of Congress who have
travelled in Europe during the past year, and have
had the opportunity of judging for themselves.
Our critics claim that all the Americans who have
most carefully investigated the subject in Europe
and America maintain the same opinions as those
expressed by Mr. BOWLES, differing only more or
less as to the time when the conversion can be
offered to the world with a fair prospect of success.
This is furthersupported by thefact that the amount
to be applied for in Europe will be considerably
less than that now actually held, and is no new
investment, but simply a conversion of the existing
bonds. Supposing the total to be $1,500,000,000, by
the new banking law $000,000,000 will be at once
absorbed, leaving only $900,000,000 to be offered,
first by the American nation itself, which, reckon-
ing savings banks, insurance companies, trust loans,
may be safely counted upon, with private inves-
tors, to take up at least $400,000,000, the more so
that the present amount of U.S. Securities held in
Europe could be reduced one-third, and yet leave
an ample margin to absorb all that would be offered
from the other side. To exemplify the value of the
Clearing Centres, we are told that in the new
Russian Loan just brought out by the ROTIIS-
CHILDS, " a marked point of interest is the triple
currency feature, similar to that proposed by Mr.
CHARLES BOWLES for the new United States Consols.
These new Russian bonds are payable in francs,
sterling, and roubles, at fixed rates ; but negotiaUe
in other currencies or money centres, only at the
rate of the day when negotiated. oNo better evi-
dence could be educed of the correctness of this
policy. While striving to give them the largest
scope, it is necessary to centralize such loans as
much as possible. Paris and London are the only
true centres, to which Frankfort and Amsterdam,
though they should be even temporarily larger
dealers, are still subordinate.' "

While we admit the force of these comments,
and bow to the experience of those who have made
them ; while we feel as confident as any of our
critics, both as to the worth of the bond and the
ultimate success of the loan, we do not think that
bonds bearing 4i per cent.woukl as yet be largely pur-
chased in Europe, though a considerable portion of
the Five-Twenties held on this side might be con-
verted into the new securities. It may be that Mr.
BOWLES and the numerous supporters of his opinions
are right, as they are for the most inn practical
fivauciers, and Mr. BOUTWELL certainly has good
cause to believe in the success of his scheme, yet
we still believe that European ignorance will de-
feat American calculations. The question is purely
one of ignorance, as we have repeatedly observed,
for no man who thoroughly understood the sub-
ject, who knew the country and people of the Re-
public, would hold any European security whatever
in higher e3tima;ion ; yet in England even Indian
securities are preferred. We grant the growing
knowledge, we grant the beneficial effects of
General GRANT'S Administration, and his outspoken
declaration, as well as that of Congress, against green-
back payment, but our argument is, that, though
changing, aye, rapidly changing, public opinion is
not yet sufficiently formed in Europe to make Mr.
BOWLES' plan of a 4 per cent. loan successful. It
might be a question for consideration at Washing-
ton whether it would not be advisable to postpone
the proposed conversion into 41 per Cent. Bonds, for
a year hence it might be accomplished at 4 per cent.
However, the question of will soon be settled by
the actual test of experience, and if the prof ortion
is absorbed in America, calculated on by our critics,
Mr. BOUTWE.LL will in all probability be successful.
It is most desirable, on political as well as on financial
grounds, that small holders, that is, the mass of the
people, should be invited to subscribe, and the ad-
vantages offered by the Great Republic freely
brought to their notice.

POLITICAG AND ELECTION NEWS.—In the
Missouri Legislature on the 18th of January bills
were introduced abolishing capital punishment, and
removing the State capita to St. Louis.—There is a
proposition before the Illinois State Constitutional
Convention to abolish the Senate, and to vest the Legisla
tivo authority of the state in a single body, to be called
the Legislative Assembly, composed of 300 members.
The Legislature of West Virginia met at Wheeling, Jan.
18. The Senate organized by electing the Hon. D. D. T.
Farnsworth President and E. W. Morse Clerk—both
Republicans. In the House, William M. Welch, a liberal
Republican, was elected Speaker, by two, majority over
Putnam, Republican. William P. Hubbard, Republican,
was elected Clerk by eight majority. The Senate is
largely Republican, and in the House there are 24 Demo-
crats and 32 Republicans.--The vote in favour of the
Amendment in the Lower House of Ohio on the reception
of the resolution adopted by the Senate was —Yeas, 57 ;
against 55 nays. Messrs. Bates, Hill, and Kleinschmidt,
and Cunningham, Reform Republicans, voted in the
affirmative. The result was received with cheers by the
crowd in the galleries and lobby.—General Reynolds re-
ports that the Texas Senate will consist of eighteen Re-
publicans and twelve Democrats ; the House of Represen-
tatives of fifty-one Republicans and thirty-nine Democrats.
—ln the New. York Legislature resolutions have been in-
troduced opposing treaties for the avisition of foreign*
territory, without the consent of the House of Representa-
tives.—The Maine Legislators, on the 18th of January,
elected Lot M. Morrill, United States Senator for the
full term. In the Senate, the vote stood for Morrill, 27 ;
Reed, 3 ; in the House, for Morrill, 100 ; Reed, 20.—The
Rhode Island House of Representatives ratified the Suf-
frage Amendment, Jan. 18. The Senate ratified it in
June last.—ln the Kentucky House of Representatives on
Monday, Jan. 17, a. message from the Governor, an-
nouncing the rejection of the Suffrage Amendment by the
New York Legislature, was received with great applause.
—ln the contested case of Van Wyck v. Greene, the
Election Committee of the United States House of Re-
presentatives agreed upon a report, Jan. 18, giving the
seat to Mr Van Wyck.—On Jan. 18, is the lowa Legislature
the Hon. G. G. Wright was elected United States Senator
for six years, by a vote of 117 *publicans to 19 Democrats.
James B. Howell was elected by the same vote to fill the
vacancy occasioned by the resignation of Mr. Grimes. The
Senate ratified the Suffrage Amendment Jan. 19 and the
House Jan. 20 by 83 to 20.
The growing magnitude of .the United States
may be gathered from the evidence just given by Mr.
Kennedy, who superintended the census of the last de-
cade. He was asked to estimate the cost of certain sche-
dules which, according to the bill now before the Senate,
mutt be supplied. According to Mr. Kennedy's data, the
paper, for the population in agricultural schedules, that is
not one-half, being only the largest two out of eight, will
amount to 23,000 reams of folio post, at a cost of $141,000,
or six-fold the cost of all the schedules of the two
previous census. To distribute these schedules, and
the necessary instructions, will require the mail for
two months to carry from seven to ten tons of extra mat-
ter, while the expense, great as it must be, will be trifling
compared to the cost of printing the information gathered
as required by the bill. It is not easy to take the census k
over e, vast a space.