Daily American organ. [volume] (Washington, D.C.) 1854-1856, 1855-02-21
1884 persons deposited f2l,979,
1888 charitable Institutions deptd 485,
1888 friendly societies deposited zoos,
f23.47l,0bO

798,055 depositors, and f23,47l,0 b0
five compare the statement of persons receiving
incomes, and add to the number Of those whose
incomes do not exceed f800, the number Of de-
positors in the savings banks il will be seen that
the public debt Of England great as 1t Is is distrl
buted among the masses And this fact should
admonish us that the funded debt of England, dis
tributcd as it is among the people, has become an
essential part Of the government OF England; Tor
every one who Is Interested In the funds, is to that
extent interested in upholding the government
The Emperor of France understood this well, when
he distributed the war loans among the people OF
France instead of placingit with the large bankers
The interest upon the funded debt of nine prin-
cipal European States, payable chiefly in London,
is about two hundred and fifty millions Of dollarsper
annum, and constitutes one Of the means by which
the exchange is ruled in favor OF London. But
this Of ITSELF is not sufficient to regulate the ex-
changes. We have seen that the Duke OF Yelling
ton declared that England was indebted to her sys-
tenn Of homo manufactures and OF commerce, for
the power and strength which enabled her to SUBJ
due the elder Napoleon; and it will be found, upon
analysis that England is enabled to sustain her
public debt not because the debtor and creditor
sides balance each other, as assumed by the elder
Peel but because she has SO regulated her COM
merce with foreign nations as to give employment
to her home industry, and receive, in the shape OF
profits on her merchandise, consumed by Joretgn
nations, more than sufficient to pay the interest
upon her debt, the burden Of which is thus trans
ferred upon those who consume her manu-
features.
And il is therefore pertinent that should in
ouire how It is that England is enabled to give
profitable employment to her home labor, and at
the same time undersell her competitors in the
markets of the worldf The answer is: that she
does this by the wisdom and forethought with
which she regulates commerce with foreign ma
TONS" SO as to protect her public and private
credit.
For example, a merchant in San Francisco
wishes to purchase British goods Money In San
Francisco is worth thirty per cent. per annum,
whilst in London 1t is worth but three per cent.
vet he is compelled to pay premium on FUNDS
which in San Francisco are worth thirty per cent,
TO obtain like sum in London, where it will be
worth but three per cent. Why Is TINS soI Is ~
not because the people of England have so regu-
lated their commerce with San Francisco, that the
merchant at San Francisco is compelled to trans
far his funds from San Francisco to London, and
therefore is compelled to pay the expense OF the
tFapsfas,, not because England has 70 regu
tons to 20 to England to Sci sen and also 70 buy
And how is she enabled to do thisY Isit not by
the. wisdom and foresight which "proteets" hel
home industry, her commerce, and her credit !
What constitutes her power and strength Is Il
the bullion In the Bank of England Or is mo-
rather the measures, by which she so regulates he
commerce with other nations, as TO enable the
bank at all times to bring supply Of the precious
metals to London as the centre Of the fnancia
world, and thus protect the public and prvat,
credit Of England, 80 that they are available Al
capital, In giving employment to labors Is It no
because she is enabled TO use her credit as capital
that she is enabled to furnish the capital at chea,
rates, with which she employs her home labor
and creates the foreign commerce, the profits OF
which pays the interest on her public debt, anc
makes Il available as capitalg
Let me be understood-gold and silver, are by
common consent received at fixed rates. In all the
operations Of commerce gold and silver therefore
are received In payment, and pass from man 10
man, at their standard value A bank note is also
received In payment, because, II the bank b in
good credit the note be converted into specie.
That Is the credit Of the bank enables the holder
OF the note to use the note as gold or silver; and,
therefore the hah note Is equal 10 gold and silver
30 long the credit Of the bank is such as 10 give
u currency as money. 30 with the public debt of
England. 30 long as thcv convertible into gold
and silver, consols will be received as money, at
the rates at which they are convertible and there
fore, although that public debt represents sums
expended In wars, and in maintaining armies and
navies, and other expenditures of the British ma
tion-it represents also the actual sum in money
which the holders have paid for II, n the sum thus
paid be no more than the current market value.
Yet we know that the value Of the debt consists
In the payment Of interest and that Whatever may
weaken the confidence OF the public In the ability
or stability Of the government win diminish the
value Of the debt and to that extent impair the
power and resources OF the British government
You viii thus see that ID is the imperative duty
Of the British government, and Of all others
who are interested in the prosperity Of Eng
land TO aid as far as they can in maintain
ing the public credit; and hence Il follows that
the bark Of England is compelled TO adopt such
measures, az win prevent such competition be-
tween our system OF credit and the public credit
Of England, as will depreciate the value Of British
consols.
II we admit that IL Is the duty of the Bri-
tish government and Of the bank Of England
TO protect their credit 30 TO prevent lis de-
probation, and Il be true that the wise use made Of
their credit enables them to employ Il as capital,
giving profitable employment to their labor, and
through Its agency TO make all other nations tribu-
tary to them, then II becomes to inquire whether
we may not organize a system Of credit competent
TO give employment TO our labor, and thus to rem
der us independent Of and protecting us against
the measures and policy of the bank Of England
This inquiry however deserves most careful con-
siderston, and is reserved for another letter.
Very truly, your friend,
DUFF GREEN.