, 1859-06-13


The London correspondent Of the New York
Courier and Enquirer has the following sensible
advice to the different American States, in bis
letter Of May 24tl. It is particularly applicable
to Illinois, which has half dozen. moro or less,
different kinds of obligations in the money mar
ket Of the world.
At last 4 blow has been struck, and there is
really war in Europe. Well, it ia On i'll wind
that blows nobody good; perhaps it may turn
the attention investors to the securities Of the
United States, which have been neglected for
many long day. But before this evcnt takes
be taken to attrnct the capital Of Europe, and
for this purpose canuot suggest anything more
likely to rouse the dormant attention Of the
world, than some radical change in the present
State Stocks-such as consolidating the whelc
debt Of each State into one. as Ohio Consols,
Pennsylvania Consols. New York Consols.
Iu matters Of Finance the several States arc
clearly behind tue age-a sort Sleepy Hollow.
Look at ynur present condition, with twenty
varieties Of loans falling due, or rather redecma-
BILE ut the pleasure Of the State, at attwenty differ
cnt epochs, 70 that no one knows the exact
value Of the Stock compared With others iu which
he wishes TO deal. II he wish to sell, his par
ticaar date is not in deuaaud; If he wish to buy,
he finds some other date than the one he requires
offering cheaper. We manage these things
better IN Europe.
What would recommend is for eacl1 State
to offer to consolidate its debt iuto one homoge,
nous class, haring sinking fund attached
which shall be accumulative-saya q iye per cent
stock, with sinking fund Of not less than one
per cent per annum accumulatiye. This is u
more secure basis for banking than nny other,
>eren a six per ceut stock The sinking fund
maintains the value; it purchases apd onnihi-
lates the bonds flung into the market By death,
by psnics, by bankruptcy, or any other cause.
Such debt would absorb all others, because
large debt also commands higher price, and
because Of the sinking fluid.
Another element might be iutroduccd--that
any surplus over the actual wants of the State
should be invested in the purchase of this con-
solidated stock To say tue truth, investors
hare been driven away By the conduct Of Penn
sylvania, in continuing her five pcr cent. income
tax, md also on the Veil knowi, fact that Sink
ing funds are not American institutions, except
will, the Federal Government Besides, the
smallness Of each variety Of debt prevents any
open market; crery debt is small which does
not amount to at least ftN1, QUO less than this
virtually excludes it from our Stuck Exchange.
4 registered debt with dividends payable
January and july, suits trustees and those who
want permanent Investment. And bonded
debt with coupons, dividends payable April and
October, suits the Banker and speculator who
fooks to floating security and variable prices
ed into thesc Two classes-thare should be no
other kind the prices would rise, the demand
would be extended, attention would be drawn
| to them, they would do duty as reu,ittances !;
the orphan and the widow would look to them
| for income, the credit Of everybody and OF
| everything connected with the United States
would be improved in consequence.