The Sun.
London, England, 1869-08-09 00:00:00

TRADE AND FI2ITANCE.

The

The United States, however, do not stand in the posi-
tion of Austria. On the contrary, like ourselves, they
have never made an appeal to a foreign money market fox
assistance, and therefore they have the same justification
as ourselves in taxing the interest on their debt. In
point of fact, we believe that it is merely suggested to
adopt the English system of collecting the income tax,
which allows of deductions by bankers, etc., on all
such payments, which are, therefore, not entered in the
income-tax schedule. So far as legal justification
goes, there is every opportunity for the Americans to adopt
the plan if they are so inclined, and we do not see the
remedy that the European bondholders would have under
the circumstances. There is no doubt, however, that such a
course wculd not be prudent. The fact of such a very large
amount of bonds having been sent over here is a sufficient
indication that the present use of European capital is of
great service to the Americans, and the whole transaction
savours very much of a foreign loan. The interest paid,
under the circumstances in which the trade of the
United States is at present placed, may be fairly
regarded as the consideration for capital loaned,
and it will be seen, when the subject is looked at in this
light, that it would not be prudent to tax such interest.
We do not anticipate that the suggestion will be carried
into practice, but the Americans will do wisely to take
into consideration the fact that there is at present
a very heavy trade balance against them, which has been
temporarily settled by the shipment of hive-Twenties
which can at any time be returned to them, and a large
portion of which would probably find their way back I o
New York in the event of any impost being laid upon
them. This would lead to serious consequences;
but, apart from this, there is another considera-
tion which will probably induce the American
Government to hesitate to adopt the system which
hasty politicians are about to force upon their
notice. It is evidently their policy to enhance the value
of their securities as much as they can; and, if possible,
to force them above their par value—which is not at all

impossible to happen if the Americans keep undeviating
good faith with their creditors. By so doing they will be
better able, when the proper time arrives, to consolidate
their debt, and to substitute a bond bearing a lower
rate of interest for the Six per Cent. Bonds now in
existence. The tax, however, would tend to make the
bonds unpopular, and would have the effect not only of
immediately lowering values, but also of attaching a sus-
picion to the financial action of the Government.

A rumour is circulated that Sir Wiifrid is
likely to be called to tho Upper Ifouse.
Two measures which have crepe down from th:.:
Lords to the Collin-Tits—the Halitual Criminals
the Bishops' Iteeigmtion Bill—have Leen published, "as
amended in Committee."
Lord Lyttelton, Mr. A. Hobliouse, QC., ar.d
Bev. 11. G. Robinson are gazetted Commissioners for the
purposes of the Endowed Schools Act, 18G9 ; and Mr. 11. J.
Roby is appointed secretary.
The post of side-de-camp to H.R.11. the Field-
Marshal Commanding-in-Chief is vacant by the promotion of
Colonel Curzon to be major-general. It is likely to bo filled
by Lieut.-Col. the Lou. W. J. Colville, who has discharged
the duties of an assistant-inspector of volunteers.

During the recces Mr. Gladstone, Mr. Bright, and
Mr. Lowe will pay a visit to Ireland, and will be entertained
in Dublin to a great banquet. The Freeman says that the
visit of Mr. Gladstone is with a view to satisfy himself, by
personal observation, of the real state of the country, and
especially as to the state of land tenure.

The post of Foreign Secretary to the Government
of India, duricg the alsence of Mr. Seton Karr, has been
offered to and accepted by Mr. C. Aitchinson, of the Bengal
Civil Service, a civilian of 1856-7, and with ono exception,
that of Mr. Wyllie, the late unseated member for Hereford,
the youtgest gentleman who has filled the office in recent
times.

4 r The Esmonde will case is again under trial in
Carlow, before Mr. Justice Lawson and a special juty. Mr.
Butt applied on Friday for a postponement, on the ground
that the jury panel was not properly formed, but the Court
overruled the objection. The trial is regarded with great
interest, and involves a largo endowment to Trinity
College.

The foundation stone of a new ball which is to be
presented to the inhabitants of Forfar by Mr. Peter Reid, a
confectioner in the town, has been laid with Masonic
honours by the Gland Master, the Earl of Dalhousie. His
Lordship also placed the corn, r-stone of a now Court-House
in course of erection for the county of Forfar. The day
was observed as a general holiday in the burgh, and the
proceedings passed off most successfully.

Another case of rattening has occurred near Shef-
field. A scythe-grinder, named Kay, who was in the employ
of Mr. G. Hellewell, of Eack-enthorpe, Las been rattened of
three grinding bands. Kay is a member of the Grinders'
Union, and is not backward in his payments ; but it is be-
lieved that he works a little unaer the other men, and that
this is the cause of the visit of "Mary Ann." Ho was rat-
tened about 18 months ago.

The report of the Joint Committee of the Lords
and Commons on the despatch of business in Parliament
has been published. It suggests that (xpedition in legisla-
tion might Le ot tained by the introduction of le.i;al and
ecclesiastical bills in tho Lords; but it is added that the
arrangement must bo left to tho discretion of Ministers.
The appointment of a joint Committee of Referees on
" Opposed Private Bills" and of a joint Committee on Stand-
ing Orders is recommended.

Her Majesty held a Privy Council on Saturday at
at Osborne, which was attended by the L )rd President
of tho Council (Earl do Grey and Ripon), the Lord Privy
Seal (Lord Kimberley), the Secretary of State. for
India (Duks of Argyll), and the Lord Chamberlain
(Viscount Sydney). Arthur Helps, Esq., was clerk of the
Council. At the Council the Queen's Speech on the forth-
coming prorogation of Parliament, by commission, was sub-
mitted to her Majesty, and approved of.
A Welsh will case has been tried at the Hereford
Ass'Z2S. A woman who had lived w:th h r cousin, to whom
she had borne children, was thought to have died intestate.
Her property in default gassed to her brother, with whom
she had quarrelled. Suddenly, however, a will was produced
by one Roger Williams, written by him, and purporting to be
" marked" by the deceased, giving her property to her cousin.
The man, however, bore a bad character, and it was alto n
that the deceased could write. The jury therefore declar(N,
the will a forgery.

A fatal boat accident has occurred at Dover. Fuur
n left the beach at East Cliff in a small sailing boat, and

It. th i g ?ct out on the to r v y go Iron D al. The
br,cz ) freshened to such a tlegre3 that the fulness of adi
caused the boat to lie over. Two of the men insisted n the
sail being reduced, or they would bo landed. They Nvero
placed on shore, and the other two w,nt out again. Soon
afterwards tho boat filled and sank. One only of the nu
was picked up by a French boat. The other, supposed to
have been drowned, was Mr, C. Hills, a coach tatile.er in
_ .
Pau..

The peculiar circumstances in which the United States
have been placed since the attempted secession of the
Southern States have caused such an intimate connection
between political and commercial affairs that it is difficult
to separate the one from the other. Agitations, ostensibly
commenced on behalf of commerce, are not unfrequently
set in motion by the political wire-pullers of Washington,
and no little suspicion, therefore, attaches to the scanty
information that arrives through the cable. A somewhat
remarkable, but by no means astounding, piece of news has
this week arrived from New York, which we are inclined
to believe is the result of a political agitation of the
kind referred to ; nevertheless it deserves more prominent
notice than it has yet received, as, should the course
recommended be adopted, it would have an important
bearing upon commercial interests. It has been proposed
to tax the interest on the American Debt held in
foreign lands—a step which, for cur own part, we
have always been prepared for, and which is defen-
sible on very important grounds. It is only fair to
the Americans to state that the subject has never been
seriously discussed in either branch of the Legislature,
being merely an agitation of a particular section, and
probably set in motion from sinister motives. We wish
to point out, however, that in taxing the coupons the
Americans would be merely adopting the plan now fol-
lowed by the British Parliainen t, which Las always, and with
evident justice, taxed the interest payable to those
foreigners who have chosen to invest their capital in
English Government Stocks. In so doing, we standin a very
different position to other European States--Luch as Austria
—who have latterly laid an impost upon the interest pay-
able to foreign holders of their bonds. We have never made
an appeal to any foreign market for assistance in our financial
difficulties ; on the contrary, the whole of our debt was
raised at home, and we are, therefore, justified in taxing
the interest upon it to any extent we may choose. The
ease of Austria, however, is materially different. Here a
direct appeal was made to foreign— and particularly
to the British—money markets, and investors, in
complying with the demand, were not aware that,
by an arbitrary Act of the Reichsrath, they could
be mulcted of a considerable part of their dues, or that
Austria would in any way be able to free herself from her
engagements. We shall not stop to inquire into the con-
sequences of this egregious folly, merely remarking that,
after the success that has followed this act of national
dishonesty, one cannot be surprised at agitations arising
in more needy and more hardly-pressed States for the
adoption of a similar course. The hidden clanger, how-
ever, has now revealed itself, and will be sufficiently
guarded against in any future loan.