New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-09-28
ENGLISH ExCHEQUER BELEs AND
II. "a. TREASURY NOTES.

u. q. TREAsUBY NOTES.
The English Excbequer bills are, in purpGe
and effect, like our seven aud three-tenths yer
cent Treasury notes, Government bills of crelit
upon which temporary loans are raised from ne
mass of the people. The British blls are 'e-
ceivable in payment of public dues, but as they BEAR
an interest that makes them advantageous as veil
as convenient for temporary investment, they are
generally held outstanding until they are called
in BY the Treasury; aud, for the same reaon,
they do not enter into the currency. Bills cary
ing two and quarter per cent per anium
interest were sold in July, 1859, at one per
cent premium. Being redeemable or receivable
for public dues, at exactly the par of their
principal, investments in them are subject TO no
fluctuations, and bankers and people holding
money in expectancy prefer them to every Other
kind of stocks although the rate of interest is
always low. large portion of them is received
by the Bank of England for its advances to the
Government, and for the balance the Bank is the
agent employed TO dispose of them to the busi-
ncss community, and to the people who prefer
them for their freedom from the risks Of savings
banks and private borrowers, and from the
trouble and fluctuations Of the permanent funds.
Their popularity is shown by the fact that they
were outstanding to the amount Of fl4,OOGOOO
sterling, or nearly S700O0,O 600, in 1859, when
they commanded tTenty.one sbilliDg' premium
upon the hundred pounds, and were at an inter-
est of only one and half pence on the hundred
pounds per diem, equivalent to two and
quarter per cent per annum.
They have been issued annually by tho Pnti'h
Government for the last hundred aud si1ty-hye
years. The amount outstanding at the end Of
each fiscal year from 1853 to 1853, ranged from
twenty-eight to twenty-Oue millions OF pounds,
averaging one hundred and twenty millions Of
dollars
During the last twenty years, they have been
issued at varying rates Of interest according to
the states of the money markets the lowest
rate being one penny day on the hundred
pounds, and the highest two aud a-half pence,
equal TO one and half per cent per ADnum at
the lowest, aud to three and four-fiIbs Ut the
highest
The British Government resorts to them regu-
larry for the purpose Of raising its temporary
loans, and anticipating its current revenues. The
Bank always advances upon them the amount of
the Land and Malt taxes Of the yeaE, amounting
to eight millions of pounds, and receives them
for .uch other advances as she occasionally makes
| to the Government.
As fscal instrument, Exchequer bills are
admirably flexible and convenient both to the
Treasury aud tue people. To tho people, they
ivN Ip HgsfF ohl tUlsp4
ment to the extent of hundred and twenty
millions of dollars; and for tho Government they
answer all its casual eIigenc.es cheaply and
| conveniently. The Commissioners Of the Treasury
call them in by proclamation whenever tho
Treasury is ready to redeem them, or their in-
terest is higher than the current rates. and they
keep them outstanding by increasing the rate of
interest upon them by public adyertisement-a
policy which saves all the expense and trouble OF
reissuing such vast quantities of paper at every
change in the state Of the Treasury or money
market, which makes such alterations desirable.
The Treasury is thus able to keep It's floating debt
at tue lowest rate of interest. while the people
have always an available fund for their invest
ments for the Government at all times needs
the loan, and prefers it over Others, to as large
an amount as can be kept afOat in good credit.
Our Treasury notes are enough like thcse En-
glish bills to help US to understand their fiscal
capabilities They arc unlike in the fact that
they are not receivable for public dues, nor re-
deemable till maturity. and that they are not
now at premium; but the prospect is fair that
they will reach their par value in the money
market before tho holders who have chosen TO
invest in them will desire TO convert them into
cash or other funds. At par or above it, it
would DO nothing against their value for any
purpose that they are not receivable at the
Treasury before maturity. They pay higher
interest than any savings bank offers, and are
safer than tue paper Of any private borrowers.
Like the Exchequer bils, which are receivable
for customs, taxes, and exciSes yet are not pa d
in. 80 our notes would not return until they
ceased to carry interest for they are the very
beat fund for the investment of such an amount
of money Of the people as they Will cover, and
there is even greater amount IN the country
looking for go profitable aud so reliable CO.
curity for the short period that they have to
run. Those savings of the whole community
which cannot DO tempted into business or spocu-
Iation, the funds in the hands Of executors and
trustees, to be held in temporary trust will fnd
their way into these Treasury notes SO soon Us