The Sun.
London, England, 1866-10-22 00:00:00

AMERICAN GOVERNMENT SECURITIES

(From Glenn and Co.'s Circular.)
LONDON, Oct., 1866,

dwelt upon, but is so little understood. Many years ago
Mississippi, one of the poorest and most insignificant of
the Thirty-six States, contracted a debt in Europe which
has never been paid; but none of the older States have
ever repudiated, much less the Central Government, com-
posed of all the States. Many people, probably, still be-
lieve that Pennsylvania, one of the wealthiest of American
States, once repudiated. It is an error ; to prove which
we hereby give notice that wo are prepared to purchase at
a good price any Bonds ever issued by the Commonwealth
of Pennsylvania.*
America repudiate her debt ? Why, what necessity
could she have for doing it, when her valuable Govern-
ment lands if sold for eight shillings per acre would pay
off her debt twice over ; and one coal mine near Pittsburgh,
Pennsylvania, if exhausted and sold at two shillings a
ton, would pay off the National Debt twenty-seven times.
Yet this is but one of a thousand coal tit.lds in that coun-

try. Coal is admitted to be the foundation of England's
greatness and power as a commercial nation ; yet the coal
deposits in America are more than forty times the size of
those in England.
Is America prosperous ? Let facts speak for themselves.
At least one-half of the gold and silver annually produced
in the world is now taken from American mines. During
the late panic, when millions of gold were leaving England
for the Continent at the very time it was most needed at
home, there is no estimating the awful consequences that
would have followed had not the United States promptly
checked the run on the London Banks by sending them,
within three weeks' time, specie to the unprecedented
amount of eight million pounds. The States and Terri-
tories immediately west and north of California, which
seven years ago did not produce an mace of gold or silver,
yielded in 1865 above £6,000,000 of the precious metals.
The Western States, of which Illinois is the centre, last
year produced one thousand million bushels of corn, and
have capacity to grow enough for the wants of all Europe.
The magnificent cluster of Southern Districts which flank
the Middle and Western states on the South, and which
under a new system of labour will soon be more produc-
tive than ever, are too well-known for their cotton to need
any comment. While the flocks and herds, the petroleum,
and iron, the commerce and manufacturing industry of the
Middle and New England States, are great facts pregnant
with untold wealth. The United States, as a whole,
larger than all Europe, with every variety of climate and
soil ; her teeming cities and towns knit together by a net-
work of railways 35,000 miles in length ; her great prairies
and rich valleys, and fertile hill-sides opened up to good
markets by navigable rivers, which penetrated thousands
of miles into the interior; her commerce now quickened
and immensely benefited by that greatest achievement of
modern science, the Atlantic Telegraph ; and her Govern-
ment the most economical of the first-class powers—present
a picture of unexampled prosperity.
From her geographical position, as well as from her

traditional policy, America can never be involved in any
European war; and, consequently, her securities will de-
preciate less than any on this side of the Atlantic, in the
event of such a war occurring. This is an important fact
for investors to consider, especially as the future peace of
Europe seems far from being an established fact. Aad as
America has no neighbour who would ever think of en-
gaging in a war with her, it is difficult to see how her
future is anything else but one unbroken and profound
peace with all the world. There may be occasional insur-
rections in a free country where politics are so exciting,
but the Federal Government is now so strong—as was
shown by the late war—that no insurrection, however
formidable, can possibly succeed against it.
For these reasons, and from an abundance of sound,
solid, snd substantial data, officially furnished us, we do
not hesitate to declare that, next to Consols, American Go-
vernment Securities are the safest investment now offered

to the public. Moreover, we believe that every American
Bond purchased in England will prove a bond of friend-
ship between the two countries, which, according to Lord
Stanley, "are a little more than kin." And is not the
friendship of America of more importance to us now than
all the European alliances we could possibly make ?

American Securities aro now the most popular of any
,n Germany, where large fortunes have been made in them

since the collapse of the late Southern Confederacy. And
now the French, who are proverbially cautious in their
investments, have commenced buying them, not only on
account of the high rate of interest that they pay, but
because there is likely to be a large advance in the price of
the Bonds during the next year, as American paper money
gravitates towards a specie basis.
in conclusion, we submit, have not Englishmen lost
quite enough by insolvent finance companies, with their
train of ruinous calls, and by the depreciation in Securities,
such as those of Spain, Greece, Turkey, Venezuela, and
Mexico,f for them now to seek new and more promising
investments ? and what more inviting or better paying
security can be offered than the guaranteed Bonds of Eng-
land's great offspring—the Republic of the West ?

* The interest on some Pennsylvania Bonds was once
deferred on account of an irregularity, but both principal
and interest have since been honoured.

t Lord Palmerston two years ago said that this country
had invested, within fifty years, 150 million pounds in the
Bonds of old worn-out States, and littlo struggling repub-
lic, all of which, both principal and interest, had been
lost.

Given a nation of ample resources, inhabited by a thrifty,
growing, and industrious population, and the Bonds of that
nation, which are a first mortgage on its entire wealth,
have ever been regarded by Englishmen as a most desirable
investment. On tho principle that the whole is greater
than any of its parts, Government Bonds aro usually pre-
ferred by capitalists to Railway Shares, Bank Shares, or
Financial Oompanics of any sort, the best of which repre-
sent but a small portion of the wealth of a country.
Besides, a Government that keeps faith with its creditors,
neither accident nor any disastrous event can impair its
obligations. For these reasons English Consols stand so
deservedly high with prudent people, and are so largely
held by the solid men of this country. But the high and
constantly advancing price of living renders it necessary
for persons who are not possessed of large fortunes to
seek investments which yield a larger income than the
3 per Cents. After the severe lessons taught by the recent
panic, which
dvhbi the
yc d,
htlhcaaeurrgied ruin and misery into so many homes,
talleama oipevt, glitter
rtioouf ssppeecouplaletivneatcuoim•alplya•naire.es no longer
We believe, in offering you an American Guaranteed
Bond which pays just double the interest that Consols do
at a price 15 per cent. less, we supply a want long felt in
thiS country by that large class who do not speculate, but
who desire above all things a safe investment, and, if
If any facts were needed to prove
possible, a remunerative income derived from the same.
the comparative
cheapness of these Bonds, we have only to
shares in several English Railways which pay the same
dividends are selling for nearly double the price, and that
the 6 per cent. Bonds of such Democratic Colonies as
Canada and Australia find ready purchasers at 95 and
105 respectively.
But will not America some day repudiate her debts? is a
question sometimes asked by timid people. We answer
decidedly No, and for the following reasons :—First, Ame-
rica owes nine-tenths of her debt to her own people, and
no nation in history has over repudiated under such cir-
cumstances. Property is so much more equally divided
in America than in most other countries, that from the
highest to the lowest in the social scale there is scarcely a
man who is not in some way a creditor of his Government.
And considering that the entire currency of the country,
as well as every bank in the United States (under the new
law), is based on Government Securities, repudiation would
be madness on the part of a people who would suffer so
greatly by it. And here it is important to observe, that
thelate seceding States have recently, both in State and
National Conventions, unanimously and enthusiastically
pledged their honour and property to the support of the
Federal Government, and to the payment of all its finan-
cial obligations.
Secondly—Taxation in America, though at present
heavy, is not complained of nor considered extremely
burdensome by thirty-three million people, possessed of
almost immeasurable resources. Besides the present Con-
gress has recently reduced the taxation considerably on
many articles, and yet the revenue constantly increases ;
as in this country the revenue has dot been diminished
by the repeal of heavy duties on many leading articles. It
is expected that from this time forward tariffs and inland
duties will gradually be reduced, and as emigrants from
Europe are now pouring into New York at the rate of one
thousand per day, and wealth is so rapidly increasing in

all parts of the country, that in a few years light taxes w
produce a very largo revenue.

Thi
rdcal
in rhea() A
expensivemerica n R:aprufcb i ,s thoughnever
rietr
daisa
tbe ede tai
single shilling of indebtedness in the ninety years of its
existence. In the late war, which lasted four years, her
debt, a portion of that time, increased at the rate of
£500,000 a day—and yet not one penny of her home or
foreign obligations did she fail to meet when they became
due. And even should America again drift into a civil war
(which in our lifetime is most unlikely) does any one sup-
poso, it would be anything like as expensive or of as long
duration as the last ? or that the Government and the credit
of the Government would not be maintained ? If any one
does so suppose, he knows little of the patriotism and
financial integrity of the men who rule America, men of
the same blood and race as those who made England" the
richest and most powerful nation in the world.
Now, one word about State repudiation. -which is so often

rHE SON LOINLOIN, MONDAY EVENING, OCTOBER 22, 1866,

since ; and I should like to ask any unprejudiced reader
what conclusion he can draw as to whom the credit is due

for the conception and organisation of the scheme. But as
it is as well to settle definitely and finally the presumptive
claims to merit for the imperishable glory which surrounds
all who were concerned in this triumph of science, I trust

I shall not be trespassing on too much of your space if I
continua the history of the various companies which ul-
timately resulted in the formation of one which was to

carry it to a successful issue.
The Memorandum of Association of the Atlantic Tele-
graph Company (Limited) was
.drawn up and signed on
the 20th day of October, 1856, and the nominal capital of
the company was to be £300,000, divided into 3'o shares
of £l,OOO each. The two largest subscribers aro John
Watkins Brett, of London, and Cyrus W. Field, of New
York. On the formation of the company in London the

directors issued a prospectus, in which they use the fol-
lowing language :—" The favourable nature of the sound-
ings of Atlantic, which have been so liberally made
for this object by the United States Government, at the
instance of Mr. Cyrus W. Field."
Surely here is proof enough of Mr. Field's zeal and
usefulness in promoting the enterprise, and of his influence
also. The reader will next perceive the confidence which
he and his co-labourers manifested, for the directors say—
"ln order that the capital subscribed may be wholy
_ _

applied to the immediate object of the undertaking, the
projectors, Messrs. Brett and Field, in conjunction with
Messrs. Whitehouse and Bright, propose that their compen-
sation for the privileges which they assign, and for past and
future services, shall entirely depend on the successful result of

the enterprise."
To testify still further their confidence in the undertak-
ing, the promoters and their friends have subscribed up-
wards of £lOO,OOO of the capital required.
Mr. Field, before he embarked for Europe, had been
elected Vice-President of the Atlantic Company. In con-
sequence of the glowing picture which he presented to
those in power, the British and United States Governments
contributed, by a grant of 4 per cent. each on the capital of
£350,000, making £28,000 per annum. They also nobly
aided it by a giant of their finest vessels.
In 1857 we find William Brown, M.P., chairman, and
Samuel Gurney, M.P., vice-chairman of the Atlantic Tele-
graph Company, while Cyrus W. Field was general

manager.
We all know the result of the trials of 1858 ; the terrific
storms which met the ships which were engaged in laying
the cable, and which were so graphically described by
Mr. N. F. Wood, the special correspondent of the Times. We
all know the continued failures that met them in mid
ocean, and bow finally they conquered, and a message
was despatched on the sth of August in 1858 ; and we
know that at the end of that month it had ceased to act.

For eight long years no message ever passed between the
shores of Europe and America, and disheartened were
those who had entered into the project as a speculation,
that it was long ere the public would listen to any renewed
attempts being made to join the two countries by an electric
cord. I can personally testify that Cyrus W. Field from
the first hour that he became a projector and promoter
never faltered or wavered in his determination to conquer.
Despite of the ridicule which was too often aimed at him,
even in the columns of the press of his own country, de-
spite the monetary losses which he and his friends sustained,
despite of the lukewarmness of those whose aid he believed
necessary, he continued active and buoyant in spirits.
Winter and summer he crossed and recrossed the ocean ;
his special business was neglected, his home deserted, and
all his efforts were given to the ultimate accomplishment
of that which had become the aim of bis life. With his
subscription, book in hand, and his earnest pleading, he
sought the co-operation and support of every eminent
banker and merchant in both countries. Do we not all re-
member bow last year, when the cable broke, Mr. Russell,
in describing the catastrophe, said that Mr. Cyrus W.
Field seemed to have as much faith and confidence in suc-
cess as ever. In the letter from Lord Derby, and which
was read by Lord Stanley at the Liverpool Banquet, there
is no evidence of a desire to derogate from the honour due
to Mr. Field, although there is none conferred direct. But
I believe that, as honours have been lavished upon the
promoters, manufacturers, ind engineers on this side of the
Atlantic, America will confer through Congress some dis-

tinguishing mark on her countryman.
It is true that most of the capital for the last undertaking
was subscribed by English capitalists, and it may not be
unreasonable to state the money was subscribed in the
belief of the stock being good-paying security.
It is true the cable was manufactured here, and it

evinced the confidence the manufacturers had in tho sue
cessful insulation of their cable, and the quality of the
work which they could turn out.
It is true that the ship which conveyed the cable on its
route was built here, and nobly did the Great Eastern per-
form her part.
But it is equally true that some credit is due to Professor
Samuel F. B. Morse, the inventor of American telegraphy.
To the United States Government for their deep-sea
soundings which they so liberally made.
To Professors Morse and Wheatstone for the conclusive
experiment they made on a length of over 2,000 miles of
subterranean wire, establishing beyond doubt the practi-
cability of laying the cable and of working efficiently
through it when sub:nerged.
To Professor Wheatstone, the electrician, who has so
ably and devotedly aided the enterprise from first to last.
To Captain Moriarty, 11. N., and all those who accom-
panied him on the numerous arduou's voyages they so
cheerfully undertook.
I do not for ono moment desire to detract from the
credit given to those whom it has been thought fit
to single out for special honours. But I do say
that there are others equally entitled to praise and to
distinguishing marks of a nation's gratitude and admira-
tion, and I cannot see wby Mr. Cyrus W. Field, in con-
sideration of his manifold labours, might not have been
permitted to accept or decline any mark of honour which
the Queen might desire to bestowupon him; and I am sure
that it redounds little to the credit of any man who may at-
tempt to undervalue his efforts or refuse to credit the United
States with her share of the glory of this splendid triumph
of a civilised age. The American Telegraph is a triumph
of peace, and all associations connected with it should be
in harmony with that sentiment. I believe, when the
reader takes a calm survey of the history or this under-
taking, he will agree with me that it was carried out by a
company of noble men, and that amid that company
there was not ono more worthy of a people's grati-
tude than Cyrus W. Field, the American citizen. If credit
is due to those who were the first projectors, then Cyrus
W. Field stands first. If it is due to the promoters his
name stands equally prominent. If it is due to those who
provided that all-important element, the money, we find
Cyrus W. Field the first largest subscriber; and by his
individual efforts it may be safely said that one-half of the
capital was obtained. If the assistance of Government has
been of any service, then I say that Cyrus W. Field again is
foremost. The indisputable activity, the tireless enthu-
siasm which carried him forward, have been the wonder of
his friends. Speaking in Liverpool, in London, in New
York, in Washington, and back again to address a meeting
at Manchester ; writing communications to the press,
answering letters from thousands of correspondents, and
without a moment's delay. Braving the perils of the deep
a hundred times, watching as a sentinel, and an ardent
love; through weary night and day, he has wit-
nessed in company with a brave few what seemed
endless failures, and at last is it to be wondered at
that when his pet project proved a complete success, round
as a priceless pearl, he should have telegraphed to the Pre-
sident a little of the Ego. lam sure, for my part, I can
sympathise with the almost boyish enthusiasm which he
is said to have indulged in. The hope, the labour of his
life is accomplished, and so long as the electric spark
flashes intelligence and language he may rest
satisfied his name will not be forgotten. There
have been no honours given or bestowed on
Professor Morse or on Wheatstone. Surely if science
is to be rewarded, they, and in this instance, especially
Professor Wheatstone, deserves some mark of his coun-
try's approbation. Then how unjust is the treatment of
Captain Moriarty and the navy, whose services have been
so generously recognised by Captain Anderson in a letter
to the Times. There has evidently been some haste in
the awarding of the prizes, and I trust it is not too late to
confer " honour where honour is due," and to meet out im-
partially praise to the citizens of both countries.
The inhabitants of these British isles have so increased
and multiplied that their home has long been too narrow
for them. They have gone forth to replenish the earth and
subdue it. They have spread over the greater part
of the New World. Over the northern breadth of that
continent the British tongue and the British race are
predominant. The bond of instantaneous communication
annihilating time and space between brethren of the same
blood, speech, and religion, ought surely to be the means
of perpetuating peace and goodwill, and banishing all sel-
fishness and jealousy..
Gresham House, Oct. 19.

T. RAIVLINGS,

On Wednesday next the Lord Mayor of Dublin
will give a banquet in the Mansion-house to the Cardinal
Archbishop of Dublin, and will have at the civic board to
meet him seven Roman Catholic judges, and a host of Ca-
tholic nobility and gentry. A reunion of a different kind
will take place on the 21st of next month. On that day the
Lord Mayor will give a banquet to the Lord Lieutenant of
Ireland, to which will be invited the heroes of the Atlantic
Telegraph who have received honours from the Queen,
and other gentlemen who have distinguished themselves
in the cause of scientific and social progress.
[ADVERTISEMENT.I—HoIIoway's Pills.—This purifying
and regulating Medicine should occasionally be had re-
course to during foggy, cold, and wet weather. These
pills are the best preventives of hoarseness, sore throats,
diptheria, pleurisy, and asthma, and are remedies for con-
gestion, bronchitis, and inflammation. A moderato atten-
tion to the directions folded round each box, will enable
every invalid to take the pills in the most advantageous
manner ; they will there be taught the proper doses, and
the circumstances under which they must be increased or
diminished. Holloway's Pills act as alteratives, aperients,
and tonics. Whenever these pills have been taken as the
last resource the result has always been gratifying, even
when they fail to cure they always assungo tltc severity of
symptoms, and diminish danger.

Bail

ralia.

By the last mail from Australia we learn that the
meats of railway communication in Queensland, the
youngest province of the colony, are being rapidly
extended. The object being to open up the interior
of the country by providing easy access to the sea-
board, and that at a cost which, while making the roads
as efficient and durable as possible, and will not saddle
the colony with a heavy or unprofitable expenditure,
the Government, acting on the advice of Sir Charles
Fox and Sons, and availing itself of the services of
Mr. A. Fitzgibbon, C.E., a resident engineer, de-
termined some time ago on constructing a 3ft. Gin.
gauge single line of railway with the necessary
passing places, so as to make it capable of accom-
modating the traffic which might be expected in
future years. Only a couple of years have elapsed
since the plan was decided upon, and already a rail-
way has been opened from Ipswich to Ilelidon, a
distance of 50 miles, while another extension of 130
miles in a western direction towards Toorroomba
is now under construction. From this the line runs
off to Dably in one direction and to Warwick in the
other, and the greater portiod of these several lines,
forming a total length of about 180 miles, it is pro-
posed to open about the autumn of next year. While
this has been going on in the south the northern dis-
trict has also been moving in the same direction, Mr.
Plews, the engineer-in-chief, having under construc-
tion a line having its terminus at Rockhampton,
running also towards the west as far as Westwood.
It is anticipated that this will be open to the public
in May, 1867. By the August mail we heard that
Mr. Plows had just completed the survey for a fur-
ther extension of some 200 miles. As the gauge of

the railway at first glance appears so dispropor-
tionately narrow to those who travel on our lines,
a few remarks as to the general character of the
rolling stock will not be out of place. The carriages,
which are of the very description, the framework
being of iron and the bodies of wood, were built in
this country, and are of the ordinary design. They
are 30ft. long and 6ft. Sin. wide inside to enable
them to pass round curves, of which there are many
of small radii. They are fitted with Adams's radial
axle-boxes, which permit of their passage round
these curves with perfect ease and safety. The
engines are also built by the best English firms, and
weigh only 15 tons each ; but, notwithstanding their
lightness, they are fully equal to the work required,
taking, as they do, a load of 60 tons up gradients
of one in 40 at the rate of 15 miles an hour, and on
a level at double that speed. The stock being
light admits of the permanent way being propor-
tionately so, the rails used weighing but 401 b. to the

lineal yard. The way consists of a flat-bottomed
section laid on timber sleepers of a transverse sec-
tion secured by dog spikes, and at the joints by fish and

fang bolts. The country traversed by the railway
from Ipswich to Toorroomba presents many serious
obstacles to cheap railway construction, as there are
two ranges of hills to be surmounted of 700 ft. and
1,400 ft. respectively above the level of the country
at their bases. The sides of these ranges are cut
up by numerous deep ravines, and their slopes are
likewise very steep. This has involved the con-
struction of a very large number of viaducts,
bridges, and culverts. The spurs between them,
in some instances, have been tunnelled through,
there being as many as 11 tunnels, one of which is
over three-quarters of a mile in length. Nor was
this the end of the difficulties which had to be over-
come by the Government engineer, as the low
lying country at the bases of these two mountain

ranges is intersected by innumerable streams
and watercourses, which in the wet seasons become

heavy torrents, overflowing their banks, and thus
necessitating an amount of bridging and waterways
greater, perhaps, than what appears on any 75
miles of railway yet made in any country. Not-
withstanding these exceedingly heavy and costly
works, this part of the line has been constructed at
an average cost of about £15,000 per mile, while a
mile of that section of the line, presenting but ordi-
nary difficulties, is being made at a cost of about
£6,000. The bridges, and also the stations and
workshops' buildingg, are chiefly of iron, and have
been constructed under the superintendence of Sir
Charles Fox and Son, the agents of the Govern-
ment. It is gratifying to hear that the spirited
policy of the Queensland Government has been so
far successful that that part of the line now opened
is paying, after the payment of all the working ex-
penses, at the rate of 8 per cent. per annum.