The Sun.
London, England, 1866-06-11 00:00:00

American Five-Twenties in Europe.

The New York Commercial Chronicle, j us t received,
has an article on " The Return of the Five-Twenties
from Europe," which, as indicating the financial
feeling in the United States, we transfer to our
columns. The paper from which we quote occupies
a similar position in America to the Economist
newspaper here :
" We have among us a certain class of financial
men who profess to be in no small alarm lest the
European holders of our securities should be led,
under the pressure of the continental war panic, to
send them back to this country in larger amounts
than can easily be absorbed by our own investors.
The experience of the last four weeks does not
justify these tremulous forebodings. During that
time, probably, ten millions of five-twenties have
been imported here from European markets. Yet
the whole amount has been absorbed, and a glance
at our Stock Exchange report shows that the price
is nearly one per cent. higher than when the return
movement first set in. Suppose that during the
next two months another ten millions should come
this way, is there any reason for contending that a
similar result would not recur ? Is it not extremely
probable that with the rapid increase of capital
seeking investment these bonds would be eagerly
bought up ? For we must remember that these
five-twenties are extremely scarce, and the demand
from all parts of the country is growing with most
active rapidity, while the supply is almost sta-
tionary.

"There are two things, however, which render it
probable that the return current of our securities
from Europe will not, for any great length of time,
be kept up. First, there are comparatively few of
our five-twenties in England. Of the 350 millions
of these securities which are in the hands of Euro-
pean holders, it is computed that not more than
50 millions are owned by British capitalists.
Hence, if on the continent of Europe, in conse-
quence of the troubled state of the political atmo-
sphere, a considerably amount of bonds should be
thrown on the markets they will be very likely to
be taken up in Europe, where there is always an
immense amount of capital waiting to invest itself
in sound and safe securities. The firmness in Con-
sols indicates that the scare in the London money
mdrket is passing away, and that the financial at-
mosphere is clearing up.
" The same cause which has given a turn to
British investments in the direction of Consols can
scarcely fail to operate in favour of American secu-
rities, especially as all the securities of the conti-
nental Governments are temporarily depressed and
avoided.

"Secondly, there is in England a growing con-
viction which is permeating the masses of the
people, and is obtaining more and more power over
the monied and governing classes, that this country
is well able to bear its load of debt, and that our
unbounded faith in the vast resources and recuperative
energy of the United States does not rest on a false
foundation. This conviction has recently found ex-
pression in the House of Commons in a speech by
the Chancellor of the 'Exchequer, Mr. Gladstone,
whom no one will suspect of undue partiality. He
observes that the debt of the United States is in
itself something wonderful—wonderful as the crea-
tion of four years, strictly of four years, and
no more ; and yet amounting to. nearly
$3,000,000,000, or £600,000,000, and the rate
of growth of the debt in the last year ex-