Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1859-06-13
What are ConsolsP

This question may be worth answering nj pres
ent when every oneis looking with interest 10 the
commercial status OF Great Britain. A rise or fall
in "COnsols' is'invarably taken ~ n sign Of CON-
mercial prosperity or adversely. yet few have .
very definite idea of what is meant by 'Consols" !"
We find in the Boston Herald tho following expla-
nation OF the term
1t Is not expected that everybody should know
what Consos are. Or. IT they do, TINT they should
constantly bear in mind what nm important ele-
mcnt they are in tho affairs Of Gtent Britain
We propose to make u simple explanation as 10
their Importance. by remarking that perma-
mont fall oi ono per cont. invnvos q loan to
holders OF, in round numbers thirty millions of
dollars.
The national debt Of England began with the
REIMBURSEMENT Of tho old custom ofextorting from
the people and substituting borrowing therefor,
to meet public exigcncies. Charles |. borrowed
largely from his rartzans; hut all his debts were
extingushed by tho Revolution. II was under
his sons. Charles ii. and James H. TINT tho foun-
dnton of permanent deb, wsrs paid in England
On the accession Of William I'll the debt was
E66i 2G3. During his reign. however the sys-
tom oi credit was expanded throughout Europe
A large part of the annual expenditure Of the
Government wns betrayed by borrowing money
aud pedg ing the State to pny annual interest up
on it. Al Williams dnn h., the debt was SIS 73O..
I39- From this time to the present, tho process
of borrowing hns hecn continued in all exigcncics,
such as wnr. the largo payment on account Of no.
gro emancipation. az. In periods Of peace, and
when the rate Of interest has becn low, tho Govern
ment hns redeemed small portions Of the debt.
or it has lowered tho nnnunl charge by reduc-
ing. with the euusent Of tho holders. the rate Of
interest.
The debt hon consists of several species Of loans
or funds, with different denominations which
hnye been, in process Of timo, yariousy mixed
odd mingled, such ~ Consols !. o., several differ
cnt loans consolidated IN one stock, per cents,
&c. The public debt continued tn Increase until,
nt tho accession ofGcnrgc |. in TIA It was G54.
l45.363 Some two millions wns paid OF during
his reign. but during that Of his successor it was
greatly increased, So that in 1903 1t had reached
the sum of cl3S, 500, 1870. During tho peace from
1864 to l175 ten millions were paid but at the
conclusion nf tho American Revolution il was
S249, 80 ,625. In tho peace which ensued from
1884 t, 1893, ten and q half millions were paid.
Then came tho great moral and political revolu.
tion OF Europe, in tho course OF which England
sided with despotism. Tho fomented qunrrels
caused coalition alter coalition to be formed, spent
more freely to uphold every absolutionst, subsi-
died every despot. and was the persistent cncmy
Of tho people. Daring this insane career she
contracted an increase oi dcbt exceeding sir
hundred millions sferliny so that Mt the close Of
the war, and when the English and Irish Ex-
chcquers were consolidated, tho total funded
anu hHlunuCu ucDt. III lclt, Whs IoNu,oOO,oVl
and tho annual charge upon it was E42. .0l5,9 ,94l.
From that time to lSj4 there was continual
reduction =" debt. On the lstof April. 1854 II
Was I16O. .Gll, ,249. But then camo the Crmean
war. and afterwards tho war in India lmmedi-
a,ely following these came tho necessity for in.
creased expenses in placing the navy and army In
preparstio for general European war. The Cri.
mean and Indian wars have increased the debt
more than all the reductions which were made du-
ring ~ years, and today it cannot bc less than
ES50, 100000.
This vast sum reduced to dollars. is Tour thou
sand two hundred millions, most of which is con-
soils. bearing interest at three per cent. The or
dinary price of the per eentsis 95. because peo.
ple investing ut such low rate will not pay par
when money is worth n higher per centage. The
last news is that consos had fallen to 80 and 30.
This fall is equal To two years interest on four
thslsanl million dollars. If holders were obi ged
to sell now, the aggregate loss would bc S24o, 900
600. As it is.ony those who have money engage
ments aud must sell out 10 meet them will be los
ers. Already we hear of failure Of forty stock
brokers Of this class, and others will follow unless
consos improve.