The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-08-03


port of erroneous principles gives. They are
confined to mere defamation. For the mere
sake of pretending TO be on the Presidents side,
they have abandoned the legitimate grounds OF
their warfare, and have throw away the only
effective weapons they could WELD In such
contest as now engages the public mind
The Present Condition and Prospects of
American Finances
The conviction that the law passed by Congress
providing for what the title terms "the pay
ment of the national debt" is not suited as
permanent basis for our finances, is daily gam
ing ground. The funding bill which was
eventually adopted was not the original funding
bill introduced by Senator SHERMAN, but was
so modified as to fail to meet the necessity
which first demanded the passage of the law.
As we understand it, what was needed was the
reduction Of all the varied denominations OF
United States issues to one common basis, on
which q reduced late of interest would be paid
Great Britain pays but four per cent. on ner
"Consols," yet we are paying seven and three
tenths and six per cent, and our bonds are
depressed far more than those of England
The proposition, therefore, to reduce all
rates of interest to hve per cent. was
go tar as we could see, perfectly unobiectiona0le
The law, as passed, does not provide for
American "Consols" nor does it fix any certain
and Uniform rate Of interest but vaguely states
that when the Seven-thirtes mature bonds shall
be gwen in their place, bearing not more than
six per cent. This Is certainly much less salts
factory arrangement than having regular "con-
sols," TO run Tor a certain time and bear liked
rate OF interest. We anticipate that, on the
Ieassemblng oil Congress, the original bill Will
be found far more eXpedient than the mutilated
one eventually passed at the eleventh nour of
the session.
Such a change in the form of our bonds is
particularly required, now that the cable has
united the two continents, and any huctuaton
in the markets of either can be at once comnu-
nicated to the other. The success OF this enter
prise is destined to work revolution in the
financial world and bind the two continents so
closely together that they Will be governed by
the same influences and undergo the same fluc-
tuatons. The fall OF any particular stock in one
hemisphere will cause the same effect in the
other, and the question merely resolves into
whether London Will control New York, or New
York London. Under this new combination it
is most essential we should have uniform
representative OF our national debt, aud one
stock market. AS it at present stands, the diff
terences of the money interest borne, AMI the
time to run of our bonds, 50 confuse the for
eiener that he hardly dares to venture in
American securities unless he is an adept. If
we had devised names most calculated TO
puzzle a stranger, we could not have sue
ceeded better. The Seventhirties means
that the notes bear seven and three
flu hu
analogy, the Five.twenties should bear five
and one-ffth per cent. Not at all. Five
twenties mean SIX per cent in gold, and run
of from five to thirty years. The Ten-forties
have the same significance as the Five!twendes.
Under such circumstances, we are not surprised
that our bonds are far below their real value as
the capitalist must compensate himself for the
time lost in studying their names. That such
complexity is most injurious is proved both at
home and abroad. For instance the old Five
twenties are two.per cent. more valuable on the
street than the new Fve.t wenties, and that, too,
without the least cause, except the European
market tor the old. Really, the new are the most
valuable, as they run for several years loneer
than the old; and yet from the fact that Europe
recognizes the old and not the new notes, the
latter declined two per cent. The British mind
is stupid mind, and can receive but one
idea. The old Five-twenties we're the class
they first bought, and now they will know
no other and buy no other. SeVen-thirties
Skies of 1881, and Ten forties totally unmar-
| ketable, and so also are the new Five.twenties
they cllneing with tenacity to the old. If, how
| ever, all are reduced to common basis, the
causeess difference of value would disappear,
| ard all our bonds be negotiable all over Europe.
! The American "ConsoIs" will be the great in
vestment for the Old World, and the market on
| city, be controlled at Washington. But to do
this we must simplify our loan, give a uniform
rate, exempt the bonds from all taxation, and
| have them run for certain time.
| The fact that those who have investigated our
loans have perfect confidence in our national
ability and desire to pay off all our debt to the
uttermost farthing is proved by the fact that the
| German war has not as was anticipated, caAsed
the return to this country of the Five-twenties
held on the continent. The people who were
nervous we're extremely few, and the demand
during the past month has more than equalled
the return current If the "Consols" are issued,
they can be easily introduced upon the Paris
Bourse, and thus an entirely new field of invest
ment opened, as in France our bonds thus far
are not on the market Within a year after the
adoption OF proper Funding bin we predict thai
the demand for our "Consols" in Europe will in
crease to thousand millions, and their value
| increase from ten to fifteen per cent. We have
q good field open to us, and all that is necessary