The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1859-06-18

This question may be worth answering
a. present when every one is looking with
interes: to the commercial status Of ursas
Britain. A rise or fall in "Consols" y
invariably taken as sign Of commercial
prosperity or adversely, yet few have
very definite idea of what is meant by
"Cousols." We find in the Boston Her.
aid the following explanation OF the
term;
1t is not expected that everybody
should know what Consols are, or II they
do, that they should constantly bear 10
mind what su important element they are
in the affairs of Great Britain. We pro-
pose to make simple explanation - 70
their importance, by renarking that
permanent fall of per cent involves
loss to holders, in round numbers, OF thirty
millions Of dollars. ...
The national debt of England bcgan
with the relinquishment Of the Old cus-
tom OF extor,ins from the people and sub
stituting borrowing therefor to meet
public exigcncies. Charles |. borrowed
largely from his partlsans; but all his
debt. were extinguished by the RevoIu.
tion. 1t was under his sons, Charles IL.
and James IT., that the foundation for .
permanent debt was laid in England.
On the accession of William Ill, the
debt was SG64, ,26a. During this reign,
however. tho system Of credit was sx.
paaded throughout Europe. A large
part of the annual expenditure Of the
Government was betrayed BY borrowing
money and pledging the State to pay "a
nual interest upon it. A, Williams
death the debt was Els, ,13o, 439. From
this time to the present, the process OF Dor.
| rowing has been continued in oil exigen-
cies, such as war, the largo payment on
account of Negro Emancipation, &c. In
periods Of peace and when the rate OF In
tercst has been low, the Government has
redeemed small portions of the debt, or Il
has lowered the annual charge by reduc.
in,, with the consent of holders, tue rate
| of interest.
| The debt then consists Of several spc-
cies Of loans Of funds, with different q.
nominations, which have been, in pro-
cess of time, variously mixed and ming
led, such as Conso's, i c., several diffef-
ent loans consolidated into one stock, J
per cents, Consols, New 3 per cents, &c.
The public deb, continued to increase,
until, at the accession Of George l. In
lT14, it was G5i, ,l45,3 1868 Some two
million was paid off durin. this reign, bus
duriug that Of his successor it was great
ly increased, SO that in l163 it had
reached the sum of .el3S, ,S65 ,430. Dur
ing the peace from 1903 to 1875 ten mil
lions were paid. Then came the great
moral and political revolution of Europe,
in the course of which England sided
with despotism. The femented quar-
rel. caused coalition after coalition, to be
formed, spent moro freely to uphold eve
~ absolutjst, subsidized every despot, and
was the enemy Of the people. During
this insane career she contracted an To-
crease Of debt exceeding sac hun.lred ns;l.
lions sterling, SO that, at the close Of tho
war and when the English and Irish Ex.
chequcrs we're consolidated, the Total fund
ei debt, in 1917, was SS40. $50 ,49l, and
tho annual charge upon it was G32, ,0l5,
o4l.
From that time to 1884 there was a
continual reduction of debt. Ga the l.,
of April, 1854, it was c769, 9,644, 249-
Bat then came the Crimeau war, and az.
terwarls the war in ludia. Immediate.
ly following these, came the necessity for
increased expenses iu placing the navy
and army in preparation for a general
European war. The Crimean aud Indian
war have increased the debt more than
all the reductions which were made dur.
ing forty years, and to-day it cannot b
less than $3.50 900, 600.
This vast sum, reduced TO dollars, il
four thousand two hundred millions,
most Of which is CoDsols, bearing inter
est at three per cent. The ordinary
price Of the three cents, is % becausa
people investing at such low rate, will
not pay par when money is worth high
er per centage, The last news is that
Consols had fallen to 50 and 90. This
fall is equal to two years Interest, on four
thousand million dollars. If holders
were obliged to sell now, the aggregate
loss would be f24o,OO0,0 900. As it is,
only those who hnve money engagements
aud mast sell ont to meet them, will b.
losers. Already we hear of the failurs
Of four stock brokers Of this class, and
others will follow unless Consols i'm