Evening star. [volume] (Washington, D.C.) 1854-1972, 1859-06-08

WHAT ARE CONSnLS,

This question may he worth answering at
present, when every one is looking with in
terest to the commercial a0fUS Of Great Brit
am. A rise or fall i'm ..Consols'' is invariably
taken NJ a sign Of commercial prosperity or ai-
yersiiy, yet few have a very definite idea of
what l. meant by "Consos > We find in the
Buston Herald the following explanation Of the
term:
% Ii is not expected that everybody should
know what CUnSols are, or if they do, that they
should constantly bear IN mind what an i'm
lOrtSnt element they are in the affairs of G reHt
Britain. We propose to make single expIa-
nstl"n AS TO their Importance, by remarking
that permanent fall of one per cent. involves
= l"ss To holders Of, in round numbers, thirty
mllliuns Gf dollars
The national debt Of England began with
the REIMBURSEMENT of the old custom Of extort-
Ins from the people and substituting borrowing
therefor to meet public exigences. Charles !.
borrowed largely from his partisans; but all
his debts were cxiinguished by the revolution
IL was under his SONS, Charles III aud James
IL that the foundations Of a permanent debt
were LAID in England Uu the Accession of
William III The debt was f66I .263 During
his reign, however, the system of credit WAS
expanded throughout Europe. A large part of
the annual expenditure Of the government " as
betrayed by borrowing money and pIedging
the state {" pay annual interest upon it, At
Hi.liams death the debt was SIS. $50 43g
Prom hIS tame to the present the process of
b'rrowlng has been continued in all exigencies
such n war, the large payment on account OF
Nesr" Emancipation. dc. In periods of peace
and when the rate OF interest has been low the
government has redeemed small portions of
the debt, or it has lowered the annual charge
by reducing, with the consent of the holders
the rate Of interest.
The debt, then, consists of several species
Of loans or funds, with different denominations,
which have been, In process of time yariousIy
mixed and mingled, such as Consols 4. e sew
erdl different loans consolidated in one stock.
3 per cents, Reduced COnsols, new per cents.
&c. The public debt continued 10 increase
until at the accession of George l., in I7I4, it
WIS tj41I5.353. Some two millions was paid
on during this reign, but during that Of his
successor II was greatly increased-so that in
1868 II had reached the sum of sI3S, So, ,43O.
During the peace from 1868 to l775, ten mil
lions were paid, but at the conclusion of the
American revolution it was f2l9 85I623
In the peace which ensued from 1874 to
1925, ten and n half millions were paid. Then
came the great moral and political revolution
Ot Europe, Ia the course of which England
sided with despOtism. She fOmented quarreIs
caused coalition after coalition to be formed
spent more freely to uphold every absOlutist.
subsidized every deSpot, and was the PERSIST
ent enemy of the people. During this insane
career she contracted an increase of debt ex-
ceeftIng SIX hundred millions sterling SO that
at the close of the war, and when the English
and Irish Exchequers were consolidated, the
total funded and unfunded debt. in 1917, was
tolU S5O.9il, and the annual charge upon il
was t32, 2,Ul5,94I.
Prom that time to 1854 there was a con-
tinual reduction OF debt. On the Ist Of April.
lS5i, IL was Goo, ,6i4.2I9. But then came the
Crlmean war. and afterwards the war of India
immediately following these came the neces-
slty for increased expenses in placing the
Navy and Army in preparation for a general
European war. The Crimean and Indian
WarS have increased the debt moro than all
the reductions which were made during forty
years. and to-day it cannot be less than ESQ.,
UHg 600
'' This vast sum. reduced to dollars. is four
thousand two hundred millions, most Of which
i c0nSOis, bearing interest at three Der cent
The ordinary price of the three per cents is %.
because people investing at such a low rate
Viii lot pay par when money is worth higher
per ceDtage. The last news is that consols had
fallen 20 ~ and 30. This fall is equal to two
yrdrs interest ON four thousand million dol
lars Ii holders were obliged to sell now. the
aggregate loss would be S240. 600 900. As il
- only those who have money engagements.
and must sell out Ia meet them, will be losers
Already We hear Of the failure of forty stO,k-
brokers Of this class, and others will follow un-
less cOBsOlS improve"