The Sun.
London, England, 1869-06-28 00:00:00

TRADE AND FINAA7f3tE:-

A comparison of the position of the stock markets with
that of some twenty years back affords some very peculiar
features which are well worthy of notice. Foremost
among these is the great depreciation which has
taken place in the value of foreign bonds, and
which has been gradually making progress since
the opening of the Russian war. Previously to 18:70 the
average rate of interest on foreign Government stocks was
barely over sto 5i ler cent. In that year Russia
issued a 41 per cent. loan nearly at par, while in 1852
an Austrian 5 per cent. loan was brought out by Messrs.
Rothschilds at 90. Now, however, the case is very
different. The last Nicolai Four per Cent. loan,
brought out under the guarantee of the
Russian Government, was issued at 64, while
an application cn the part of Austria would
probably be fruitless. The causes of this great depreciation
are not difficult to discover, although its influence upon
the money market involves some very intricate considera-
tions. The Crimean war gave a great impetus to borrowing,
and brought forward a new borrower—Turkey. A
second— Sardinia— followed in the course of the
same struggle, and since then foreign loans have been
brought forward with greater or less rapidity, until
the return obtainable on this description of investments
bas become as great as it is at present. The rate of
interest afforded on the low-classed investments of this
kind, which are not necessarily the most unsafe, amounts
with the payments on account of the sinking fund
to 10, 11, and even 13 per cent., while from 6 to 9 per
cent. is obtainable on all European stocks. This
great depreciation has been caused by the fact that while
the number of applicants for accommodation has been
greatly increased, and the demands have become more
and more frequent, the circle of capitalists willing to invest
in this description of security has not extended itself in
proportion. The supply of stock has, therefore, been
greater than the demand, and prices have accordingly
given way. It may, therefore, be confidently stated
that the natural tendency of the value of foreign bonds
will be in a downward direction, so long as theseapplications
to the money market are encouraged. It would almost
appear, however, that we have for the present come to an
end of our resources available for lending, and after present
engagements are fulfilled, we shall hear of few applications
being made to this market. At present there are on
the tapir the Portuguese Loan, which is likely to be intro-
duced by Messrs. Frubling and Goschen next week, and
the Roumanian Railway Loan. It is also asserted that
the New Turkish Loan for £10,000,000 is being nego-
tiated for, but as yet little has transpired concerning it.

It must be borne in mind, in estimating the causes
which have created the great decline in the value of
foreign bonds referred to, that a new danger has arisen

for which no calculation was ever made, and which was
not foreseein. We refer to the taxation of the interest
payable by foreign States to the foreign holders of
their debt. Austria, last year, astonished the financial
world byan income tax upon, and a forced conversion of, her
national debt. Italy has levied a tax upon her national credi-
tor, a similar step has been under discussion in Spain, and
the project of a tax has been more orless rumoured in Por-
tugal. The fact of these taxes being sanctioned by the
foreign Chambers arises from the peculiar modes adopted
of raising revenue, by which, in many instances, particular
industries and particular districts are laid under
contribution, instead of the more justifiable adoption
of a general tax being agreed to. The foreign bond-
holder evidently offers a great opportunity for this kind of
plunder, as causing little outcry at home, and the wonder
is that so easy a mode of obtaining revenue was not
thought of before. In all future loans it will be advisable
to obtain a guaranteed immunity from all such imposi-
tions, and so long as the power exists in the hands of
foreign Governments of levying such a tax, their bonds
will continue in disrepute.

It is said to be " within the range of probability"
that Lord Mayo will invite the Duke of Argyll and a num-
ber of other notabilities from England to be present at the
great Agra tiro bar to be held in November next in honour of
t he Duke of Edinburgh.

On Friday afternoon a s very aitac't was made on
r. Samuel Grainger, she col:cctor i f ucor rates for one of
the Birmingham districts. lie yai cautioned by some of the
inhabitants in eLstle-street that be would have a warm re-
ception if he ventured in that Ivaco for rarer. Notwith-
,,,andirg the threats made he went, and about two o'clock
n Fr day afternoon he was surrounded by a number of per-
son,,, who, as is described, began "to chaff and bully him."
In a short time those present increased to some hundreds,
wl:o commenced an attack on him, by throwing stones at
Lim. He was chased all along the Wolveihampton turnpike
road, \ viler° he fled for safety, stones showered round him all
:me way, ;:nd he at last got into a hence adjoining the mill.
',efore he got inside they overtook him and continued the
attack. When inside the mob threatened to break in for him
unless he was loosed out, and that they would smash the
windows. A number of police officers had to guard him
;.way about two hours after to protect him. During the
storm of stones" two persons Tocaiv..4 scalp wounds.