The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-21
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Ss sss sIs,Ss Sss"S S ssSS az 600
This gives a great reduction in the securities for the
onh indicative of the small demand for money for busi
purposes The feeling in relation to American secu-
tiles remains unchanged and is expressed in leading
london paper in the following terms =
appears by the papers lately received there
an the U. States that the leading European
capitalists have the determination not 10 enter in
any contract for loan to the United States State
government. until efectual measures shall have been
dopted for the restoration Of State credit and in
formed that declarations to that effect have been made by
houses here of great influence II the capitalists referred
did make any such contract il does not probable
nat the English public would take the loan from them
for investment Stock issued by American States whose
are question: is present without de-
rand; which we only account for in the situation Of
money market by the existence of apprehension
hat the principles Of reputation in respect to public
saSenens evnced in some of the States pervadc the
whole country Daash three per cents and New York
hves are at about the rate the hrees current
err that in population and wealth, New York very much
surpasses Denmark While the United States govern
ment is unable to raise money in London, currently
reported that the government Of Mexico have been offer
ed an advance Of 900 of dollars by the British
chans in Mexico, condition that Santa Anna brings
forward liberal tariff
The state Of public opinion here limited at is of grave
consideration for those who imagine that the credit of
solvent States be improved by involving the
federal government in their insolvency, through the
process of assumption. As financial measure the
proposition, to which alluded yesterday, that of
issuing per cent stock the basis of the public
lands-if we admit for the moment that the public lands
will meet the proposed debts of peculiar absurdy.
la relation TO debts the States may be divided into three
classes, viz those without debts those whose debts
amply provided for, and those which bankrupt In
regard TO the first class of what possible utility will four
per cent stock be To them If any share of the public
lands belongs to them they should have it, without any
I.s:-
lcndi at fourper cent II they entitled to certain
amount of money as part Of the proceeds Of the public
lands why not pay without calling it div idend
four per cent stock What necessity is there for
complicating the matter by substituting stock for the
landsi 1t is plain sound reason can be given. The
object Of substituting the stock is cheat the unndebted
States The share Of the proceeds of the lands coming to
the insovent States is mere nothing II stock is
created on the pretencc Of paying the interest by the lands
and then the proceeds of those lands found be
sufficient the balance must he made up by taxation The
States whose debts good similarly situated be-
cause their stock being good and drawing five and per
cent interest the holders will not be absurd
change them for four per cent stock They WILL there
FORE have increased debt forced upon them against their
wishes. For instance the State of New York has debt
Of 00O of five and six per stock the sccu
rity is infinitely better than would be government stock
Of the description proposed The holders of the New York
stock would therefore be better than unatcs to
change them for United States four per stock The
State of New York has decided create no more stock
debts but by the operation othis scheme would have
forced upon her 900 of national stock for which
her citizens would be taxed $500 per annum II
this stock applied to the redemption of the
State debt, no deminuton Of taxation will have been
brought about because the redemption must be in the re-
lavc values stock and the amount actually realized
ne lands he tbe hon
to the citizensa benefit that will be more than counter
balanced by the expenses Of the whole opera
ton. We now come to the insovent States. These de-
claresome of them-hat they unable to pay their
debts-others thai they will not pay them being illegally
contracted We may trace the operation by taking one
State, say Illinois their debt is S7643 OOo bearing an
interest Of $685. $780, Under tide Distribution Bill this State
would receive S2l 900 per If 500 900 of ma
tional stock is created and divided among the States lii
nos will get bearing charge of 500 per
annum United States six per stocks now selling
apar-at the relative value the four per cent would
be worth &c; per cent. For this she could retrieve
$4,000 5000 Of her stock She would then be taxed
$4,000 annum above the proceeds OF the lands and
have remaining $l 100000 of her own dshonored debt
Instead being taxed the $4,000 by her own State the
people would have the tax gathercrs of the Federal Gov
eminent upon Them These three classes of States NAV
be summed up in the following table =
TABLE SHOWING THE DEBr EACH SrArE-THy Pho.
rohIioS or NATIONAL STocK 500, 900 900, WHO
UPON THAT STocK-THE PROCEEDS or HC PtnIrc l. wn.
WITH THE DFrERENcE TO BE RAISED ny TAxATIoN.