East Saginaw courier. (East Saginaw, Mich.) 1859-18??, 1859-08-04
WHAT ARE CoNsoLs?

ing with interest TO the commercial status
of Great Britain. A rise or fall in Con
solsn is invariably taken as sign OF
commercial prosperity or adversely, yet
few have very definite idea of what is
meant by "Consols." We find in the
Boston HearM the following explanation
OF the term:
1t is not expected that everybody
should know what Consols are, or If they
do that they should constantly bear in
mind what an important element they
are in the affairs of Great Britain. We
propose to make simple explanation as
to their Importance, by remarking that a
permanent fall of one per cent involves
a loss to holders of, in round numbers,
thirty millions of dollars.
The national debt of England began
with the REIMBURSEMENT of the old custom
of extorting from the people and sub
stituting borrowing therefor to meet
public exigencies. Charles |. borrowed
largely from his partisans; but all his
debts were extinguished by the Revolu
ton. 1t was under his sons, Charles III.
and James H., that the foundations for
permanent dept were laid in England
On the accession of William LII. the debt
was 1864 ,263. During his reign, how
ever, the system of credit was expanded
throughout Europ. A large part of the
annual expenditure of the government
was betrayed by borrowing money and
pledging the State to pay annual interest
upon it. At Williams death the debt
was E15,730,439. From his time to the
present, the process of borrowing 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
erd the annual charge by reducing, with
the consent of holders, the rate of inter
est
The debt then consists of several spe
cies of loans or funds, with different de-
nominations, which have been, in process
of time, variously mixed and mingled,
such as Consols, j. G., several different
loans consolidated into one stock, 3 per
cents, Consols, new 3 per cents, &C.
The public debt continued to increase,
until, at the accession of George |. in
liza, it was f54,145.363. Some two
million was paid off during this reign,
but during that of his successor it was
eatly increased, so that in 1853 it had
r,ached the sum of f13S, ,S65, ,430.-
During the peace from 1163 to 1715 ten
million were paid, but at the conclusion
of the American Revolution it was
E249, ,s51 ,62S. In the peace which en-
sued from 1884 to 1893, ten million were
paid. Then came the great moral and
political revolution of Europe, in the
course of which England sided with des-
potism. She fomented quarrels caused
coalition after coalition to be formed,
spent more freely to uphold every abso-
lutist, subsidized every despot, and was
the enemy of the people. During this
insane career she contracted an increase
of debt exceeding sac hundred million
sterling, so that, at the close of the war,
and when the English and Irish Ex-
chequers were consolidated, the total
funded and unfundcd debt, in 1917, was
ES40, $50, ,401, and the annual charge up
on it was E32,015,941.
From that time to 1854 there was a
continual reduction of debt On the 1st
of April, 1854, it was 1854, ,249.--
But then came the Crimean war, and
afterwards the war in India. Immedi-
ately following these, came the necessity
for increased expenses in placing the ma
Wy and army in preparation for general
European war. The Crimean and Indian
wars have increased the debt more than
all the reductions which were made dur
ing forty years, and to-day it cannot be
less than Gs50,000,000.
This 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 95, because people
investing at such low rate, will not
pay par when money is worth a higher
per centagc. The last news is that
Consos had fallen to 80 and 90. This
fall is equal to two years interest on four
thousand million dollars. IL holders
were obliged to sell now, the aggregate
loss wonld be s240,000,000. AS it is,
only those who have money engagements
and must sell out to meet them, will be
losers. Already we hear of the failure
of forty stockholders of this class, and
Others will follow unless Consols improve
A PROSPECTIVE VIEw.-The Huntsville