The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1859-06-14
WHAT ARE CDNSOLS

at present, when every one Is looking with
interest to the commercial status of Great
Britain. n rise or fall in "Cousols" is
invariably tax n as a sign Of commercial
prosperity or adversely, yet few have very
definite idea of what is meant by Consols "
We find in the Boston Herald the follow
ing explanation Of the term
1t is not expected that every body should
know what Consols are. or if they do that
they should constantly bear in mind what
an important element they are in the af-
fairs Of Great Britain We propose to
make a simple explanation AS to their i'm
portance, by remarking that permanent
fall Of one per cent. involves a loss to
holders of. in round numbers, thirty mil
lions Of dollars.
The national debt of England began
with the REIMBURSEMENT of the old custom
Of extorting from the people and substitu-
ting borrowing therefor to meet public ext
gencies. Charles |. borrowed largely from
his partisaas; but all his debts were extin-
guisbed by the Revolution II was under
his sons, Charles III. and James H., that
the foundations for permanent debt were
laid in England On the accession of
William iii. the debt was eG64, 2G3.
During his reign. however, the system of
credit was expanded throughout Europe
A large part of the annual expenditure of
the government was betrayed by borrowing
money and pledging the State to pay an.
nual interest upon it. At Williams death
the debt was els, 730.439. From his
time to the present. the process of borrow
ing has been continued in all exigencies.
such as war, the large payment on account
Of Negro emancipation, &c 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 low
cred the annual charge by reducing. with
the consent of holders. the rate of interest
The debt then consists Of several species
Of loans or funds. with different denomina
tiOns which have been, in process of time
variously mixed and mingled. such as Con
soils. i. e.. several different loans consolida.
ted into one stock. 3 per cents. Consols
new 3 per cents, Nc. The public deb,
continued to increase. until, at the acces.
sion Of George |. in l7l4, it was e54,.
l45. 1868. Some two million was paid of
during this reign, but during that of bis
successor it was greatly increased. so that
in 1853 it had reached the sum of fl3s,.
S65,43O. During the peace from 1868 to
1115 ten millions we're paid, but at the
conclusion Of the American Revolution il
was f249, S5l .62S. In the peace which
ensued from 1874 to 1893, ten millions
were paid. Then came the great moral
and political revolution of Europe, in the
course Of which England sided with des.
potism. The fomented quarrcls caused
coalition after coalition to be formed spent
more freely to uphold every absolutist, sub.
sldized every despOt, and was the enemy
OF the people. During this insane career
she contracted an increase of debt exceed.
ing sir hundred millions sterling, SC
that. ut the close of the war, and when the
English and Irish Exchequers were con.
solidated, the total funded and unfunded
debt, in 1917, was ESQ, $50, 49l, and the
annual charge upon it was E32,Ol5,941.
From that time to 1854 there was a con.
tiuual reduction Of debt. On the LIST Of
April, 1854. it was 9769,644249. Blu.
then came the Crimean war, and afterwards
tue war in India Immediately following
these. came the necessity for increased ex.
penses in placing the navy and army in
preparation for general European war.
The Crimean and Indian wars have in.
creased the debt more than all the reduc.
tons which were made during forty years,
and to-day it cannot be less than $3.50.
100000.
Ibis vast sum. reduced to dollars, is four
thousand two hundred millions, most Of
which is Consols, bearing interest at three
per cent The ordinary price Of the three
per cents is %, because people investing
at such low rate. will not paw par when
money is worth higher per centace. The
last news Is that COnsols had fallen to 50
and ~ This fall is equal to two wears
interest on four thousand millions dollars
II holders were obliged to sell now, the
aggregate loss would be $40, 1000. 600
As it is. ouly those who have money en-.
gage@ents and must sell out to meet them.
VIII be losers. Already We hear of the
allure OF forty stock brokers of this class,
and others will follow unless Cousols i'm.
prove. ''' 49,