The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-02-15


From he Tribune.
The price of Five.t gentes nc London and
Frankfort is, eoniessedly, one of the items OF
news most eagerly sought for on the arrival of
every European steamer. We supposo there is
no loyal man who has not reloiced az their late
rise in the English market, in the face Of eight
per cent. and falling consols. Whatever differ.
ence OF opinion there may be about the expedi-
ency Of foreign loan, everybody wishes to see
our credit high and our bonds sought for for In
vestment in Europe because whatever widens
the market raises the price at home. A great
trade in our securities has sprung up with
Europe, and the low of these abroad Is constant.
Hitherto, the Government has taken no part in
il, but IL has been left to take its chances under
the ordinary laws OF trade, till II has become at
length an established trailc-as much so, tor the
time being, as the trade in cotton or provisions.
Since, then, foreigners will have our ponds,
because they are the best investment they can
make OF their money, why should not the Gov
ernment have the tull benefit of the trade, and
put 1t on footing more satisfactory and profit
able both 10 the foreign investor and to the
Federal treasury?
1t is well known that the Secretary Of the
Treasury has not been friendly TO the placing OF
our bonds abroad, believing that the home
market could both absorb ana carry the whole
public debt; but, without his influence or CO.
operation, the traffic has been established; aud
is that the markets OF Europe shall be as open
to the Government as they are tJ all s citizens.
But Wall street. and some of our contemporaries
which peculiarly represent the moneyed classes,
and especially the foreign bankers, cry No it
would he humiliating to offer foreign loan!
Ii is good cry, bot 1t Will not deceive Con-
gress nor the people; and 1t Is only raised to di.
vert public attention from the enormous profits
which the foreign bankers are making, espe.
Cially in the purchase OF coupons. Coupons are
bought in Germany al rates varying from to
per cent. below par, while they are sold at par;
the bonds being sold with interest added, and
not ''6at,p as in the United States. In Berlin,
the equivalent Of the dollar Is thaler l25 gros.
chen, and the accrued interest is reckoned by
the seller at that price; but when the coupon
natures the holder can get only thaler 10, l0l,
or ii groschen for his dOllar-a loss of 81 To 6
per cent, which, $500, ,O0O,0 600 of bonds, yields
to the bankers who buy and collect them, the
snug sum OF $780, 900 to ST, 300, 600 year. This
large shave, and the uncertainty rs to the
method OF collecting the interest, operates to
prevent a wide diffusion of the bonds. 1t our
Government were to borrow abroad, the inte-
rest would be payable at one or two more points
there, and would be at or near par everywhere,
and as easily and surely collected as 1t is now in
the United States.
Russia and Austria, the great borrowers OF
Europe understand SO well the Importance of
suItlng the convenience OF their creditors, that
they make their coupons payable on their face
at London, Paris, Frankfort, Amsterdam, and
st. Petersburg, the amount being expressed in
the currency OF each country.
A United States sterling loan, the interest Of
which should be thus provided Tor, would pro-
badly command higher price at five per cent.
than 520s could bring at six.
If capitalists will deal fairly with the Govern
ment, there is no need to go abroad Tor money;
but the foreign bankers Of Wall street must not
expect Congress to protect them in a traffic
which puts enormous profits into their pockets
at the expense OF the people OF thus country as
well as OF their own. Give the Secretary of the
Treasury the power which every private citizen
has, ana his whole record gives assurance that
he WILL use 1t honestly and wisely