New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-05-23
BRITISH FINANCES.
FROM Our Own CorsspoHdeEt

Although the bOmbardment OF Odessa, which sp-
pears after all, to have been very Indifferent affair
LeLly oxctos the public mind, there is another bonn
barcment which, at this very moment works upon il
still more eriuly-namely. the bombarlment OF
tie public purse. Before entering into an analysis of
tie fnsIca statement made by Mr. Gladstone in yes
torcSys sitting Of the Commons, must cast q ret
respective glance at his official transactions hitherto
Mr. Disrae, when in Office had reduced the inter-
est OF Exchequer Bills to ID. day, which was lower
than it Lad ever been before; hut Mr.. Gladstone
anxious to improve upon his predecessor went on
further, reducing it 10 ID. neglecng 10 notice the
Circumstance that when Mr. Disrael reduced the in
terest of Exohcquer Bills money was abundant and
cheap, whiic il and dear when Mr.. Glad
stone undertook to suIPass his rival. Consequently
the great called upon to pay three millions
Of money for Exchequer Bills which. if left alone
would have fOated at the rate OF interest at which he
found them. This rot all. Having hardly paid
Oft the Exchequer Bill at great public Inconvenience,
they had to be resued again at higher of inter-
e,t. Ills the first proof of tie transcendent gen.
ius Of the Oxford casust, ~ho supposed to unite
as it We're all the talents in bis single person. the
alon OF ali the talents having elected the Tory Gov
CTLmoIt uPoB tier financial scheme and thus pro-
claimed finances the strong point OF their policy
Mr. Gladstone, not content with dealing with the
floating Debt, made still more curious experiment
upon the funded debt. In April l-53 he went down
10 the House Of Commons with a very complicated
scheme for the conversion OF the South Sea stock and
other funds, Wth an arrangement which might compel
lin 10 pay of nine and half millions 1t the end OF six
months aud twelve months II has been very justly re-
marked that when he did so he had before hm the
cIet dispatches Of sir Hamilton Seymour, and the
warnings Of Col. Rose and Consul Cunningham. COM
municatons which could leave doubt OF the hostile
intention of the Russian Government and the prOxIm
ity Of II European war. But your readers will reco
ltct that at the very period wnen Mr. Gladstone pro-
posed his scheme foretoid it's failure. aud the
ny in which II would place the Government Of borrow
ing al the end OF the financial year. 10 the amount Of
hNc Fix millions. made this statement without any
lospect 10 the Eastern complication. Besides, the
scholastic air of Mr. Gadstones scheme not being like
j, 10 seduce the stock Obbing mob OF the Exchange,
thefe wanted ns great saeacy 10 iOreel that the
harvest Must prove failure because the extent sOwed
far below the average on account of the very wet
that bad Lay,st would cause drain of bul
hons that dram Of bullion could certainly not cOuli-
teract the already existing tendency To rise Interest
in the money market end that with the general money
market llsLg II was absurd 10 suppose that the public
creditor would allow the interest OF his stock 10 be
ductd o. not eagerly grasp at the opportunity afforded
him by Dir. Gladsiones experiment 10 insist On the
pay men OF his stock at par in order to invest tue fol-
loving day at net profit. Indeed at the close of the
hnaICa year Mr.. Gladstone was obliged Ia pay of Ut
PAR millions If South sea anhutes which without
Lis ineimeddling, would at this moment only command
SO for every tlUU Of stock az the Exchange Thus
he not only made reedlessiy away with six millions of
the public funds, but the public incurred by thls bill
liant operation actual loss of hast million,
while the balance in the Exchequer which YVES in
April, l-a3 -, $4,000 has been reduced in April.
l-Ji, al time Of war, to only E271- OUJ being loss
Of than Gd,O,U.JuO. The abOrtiye conversion
scheme Of MIR Gladstone is at the foundation OF all
the monetary difficulties against whch the Government
has 10 contend. On the 9TH of March, only "a
DAYS before the declaration Of war, Mr. Gladstone laid
down the very basis Of all his operations that the
supplies should be provided within the year 10 pay the
cuntIt expenses aid declared he had taken measures
10 cast he burden, of war ony upon the present. and
that resort t0 lie money market for iOan out
a ssiiun. lie repeated HE statement again the
"a a March, and even the 18th OF April Yet On
the 2ist Of April when Parliament was not sitting,
oihcla notice appeared that loan would be required,
and Il at ExcLrqUer BoIds Ia the amount OF millions
would consequently be issued. The Exchequer Bonds,
you viii remember, are an Invention OF Mr. Glad
stone cctempoTaneousiy introduced with his CONVEX
zion fcLeme.
Tie ordinary E1chequer bill is security for II
moths. snd Il generally exchanged paid OIL al the
eLd 81 that tine. and it's of interest uctuates
with the market rate OF interest. The LXchrquer
bonds on the contrary bear Il i.ed rate OF interest
for Years. snd are termlnabe annuity transferable
/ ir,m Land 20 hand by simple Endorsement without
any ccst hateyer 10 either buyer seller pom the
Woe. thtl NAY De described as limitations OF railway
debtLturts. When Mr.. Gladstone trst inverted them
IN l-o3 he took power 10 issue 3J,VVUUUU. and So
IIcud be al his invention that he thought
tie - TO- 60 would be sufficient 10 answer the
public demand. ana that they would be- al high pre-
Ialum. However, the public We're guited boy very
b;ie more tLsn riD' .UuU, or about One-seyrnth Of
tie amount he expected would be required" In
cder 10 his loan of 6.uUu, co. Nj Glad stone
brought out three sorts OF Exchequer bonds such IS
have tour Years run such have I'VE years 10 run
and such have SIX years 10 To make them
mole acceptable to the Exchange, ne decided that the
interest Mould be allow I'd nstalments aOt YET paid
he pretended t. issue them al par, wife interest
thee and oLchai per cent, considering the eXrrSOr-
aUary advantages belonging 10 the form of secu-
rites being equivalent 10 from 10 10 per cent, on
/ 1he amount OF tue dividend. When the tnders we're
opened. Il found that the bid ior was bat
t>3U co Of bonds II the ist series 70 b.. paid of 10
l-> while with respect 20 the other series .! bonds
/ Il l. and l-UJ overs we're made az all This i
not a. lie was forced "a issue his commodities AZ
discount, selling them az the minimum, Of ninety -esh
sud iLIe,-Ourths and throwing In few months inter
esr 50 that he is simply borrowing Der cent in
eXckaLle iOr the South >ea stocks, which were az
/ three per cent. annuity. thus losing the capital
niieen rer cent and tie interest twenty-five per
cent Notwithstanding all these concessions bis ail-
/ IRE VS. complete. Lee being obliged 70 extend tie
reri1d fOr receiving tenders 70 the tn ms. aal %
! cone Gown from LIS demand 81 u,DOO,UUO 10 the
''ridculous.y small sum" 81 2,UOo,OUJ The failure
/ Wss necessary because his COMMODITY was LeIiher
/ We'll adapted Tor VcruaLrnt Investment no- Tor
t,n Ioia4y -ze. t,c-.sr tie repayment ia is -nd