The Cass County Republican. [volume] (Dowagiac, Mich.) 18??-1880, 1859-06-23

This question may be worth answer
ing at present when every one is look
ing with interest to the commercial
status Of Great Britain. A rise or fall
in "Consols " is invariably taken as a
sign of commercial prosperity or adj
versity, yet few have very definite
idea of what is meant by "Consols. I"
We find in the Boston Herald the fol-
lowing explanation:
1t is not expected that everybody
should know what Consols are, or if
they do that they should constantly
bear in Mid what an important ele-
ment they are in the affairs of Great
Britain. We propose to make asimple
explanation as to their Importance, by
remarking that a permanent fall of /
per cent. involves loss Of holders of,
in round numbers, thirty million of dol
lars.
The national debt of England began
with the REIMBURSEMENT of the old Gus
tom of extorting from the people and
substituting borrowing therefor to meet
public exigencies. Charles l. borrowed
largely from his partizans; but all his
debts were extinguished from the Rev
olution. 1t was under his sons Charles
III. and James H., that-the foundations
for a permanent debt were laid in Eng
land. On the accession of William
Ill, the debt was s664, 263. During
his reign, however, the system of credit
was expanded Throughout Europe. A
large part of the ANIMAL expenditure of
the Government was betrayed by bor-
rowing money and pledging the State
to pay annual interest upon it. At
Williams death the debt was fl5,7s
439. From his time to the present, the
process of borrowing has been contin-
ued 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 byreduc-
ing, with the consent of the holders,
the rate of interest.
The debt then consists of several
species of loans or funds, with differ
ent denominations, which have been.
in process of time, variously mixed and
mingled, such as Consols, /. e., several
different loans consolidated into one
stock, per cents. DC. The public
debt continued to increase until at the
accession of Geo. 1. in 1714, it was f24.-
145, 1868. Some two million was paid off
during this reign, but during that of his
successor it is greatly increased, so that
in 1868 it had reached the sum of f249.-
s65, 4so. During the peace from 1863
to l765 ten millions were paid, but at
the conclusion of the American Revo-
luton it was f249,e5l, 1928. In the
peace which ensued from 1884 to 1893.
ten millions were paid. Their came the
great moral and political revolution of
Europe, in the course of which England
sided with despotism. The fomented
quarrels, caused coalition after coalition
to be formed, spent more freely to up
hold every absofutist, subsidized every
dcspot, and was the enemy to the peo-
pie. During this insane career she con-
tracted an increase of debt exceeding
sac hundred millions sterling, so that,
at the close of the war and when the
English and Irish exchequers were con-
solidated, the total funded and unfund-
debt, in 1917, was fs4O,S5O,491 and
the annual charge upon it was fs2 ,o15,-
O41.
From that time to 1851 there was a
continual reduction of the debt. On
the first of April, 1854, it was &c.,
GA, 249. But then came the Crimean
war, afterwards the war in India. I'm
mediately following these came the ne
cessity for increased expenses in plac-
ing thenayy and army in preparation for
ageneral European war. The Crimean
and Indian wars have increased the
debt more than all the reductions which
were made during forty years, and to-
day it cannot be less than ESQ., o0,-
600.
This vast sum reduced to dollars $4,-
200, 600, 900, most of which is consols,
bearing interest three per cent. The
ordinary price of the three per cents.
is 50, because people investing at such
low rate, will not pay par when mon
ey is worth higher per centage The
last news is that Consols had fallen to
80 and 90. Thisfallisequalto two years
interest on four thousand millions of
dollars. If holders were obliged to
sell now, the aggregated loss would be
$24O,000,OOO. As it is, only those who
have money engagements and must sell
to meet them, will be losers. Already
we here of the failure of forty stock
brokers of this class, and others will
follow unless Consols improve.
The Railroad War Over.
On Saturday the ticket AGENTS re-