The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-13

tally II England should be engaged In another quar-
rel--a2ain contingency which we believe TO be not
very probable. The Americans would not be slow
20 discover that war was bad enough Tor us,
without their running any risk OF being brought
Into the fray. Although the American six per
cent debt therefore is yet quoted under par, 1t
Is very far from Incredible shat 1T may rise
30 last o. TO give tue hope Of re,undlnE Il at
no distant Tune at much lower rate OF interest.
Things continue as they are for another six
months, and Ar. Boutwell, buys In 100000 more
bonds II ~ hardly possible but that another great
Improvement IN American credit VIII take place.
BUT there are one or two circumstances which are
against Mr.. Boutwell, and which until they are re-
moved or modified. VIII tend to keep America from
borrowing as cheaply as she might These circum-
stances mainly arethe usually high rate OF interest
Oh these the difficulty OF the hi0h rate OF interest
WIN 90 but slowly modified Where the profits
favored borrowers must pay more highly than
they would otherwise do. America as a country
WIN rapidly increasing population, Is very profit
hDe LOT capital. At tho present time there Is
perhaps an unusual demand FOR c. pltal even for
new country, OWING 10 the losses OF the war; but
when this IS repaired America viii still be dear for
borrowers. Ana as u counlry must usually LOOK to
its own residents 10 lake up It's stocks, this will
always operate against America The accnmula-
ton OF surplus capital for steady investment at a
moderate interest VIII bc slow. We believe the
eject OF this on the price OF American securities
would III some degree rounteractel by the unusual
tendency OF these securities 10 go abroad account
oil The peculiar circumstances Of America a new
country ana tue intimate connection OF Its iDhaOit-
ans individually with other countres nut while the
ocbt must be mainly held at home the interest will
causes we have named Is to check this
port OF American securities. The rredeemable
paper docs 50. whea the interest IS paya
bic In America, by Introducing more I'M
certainty into the exchanges; aud IN any case
II has pad eject on the general investor. He does
not like government with an lnc0nvertibie cur
rency. the government and people nay be pledged
deeply not 10 use 1t IN paying nm but 1t is there Tor
them 10 use and tempts them, and he would prefer
II they mad no sven temptation. But for the irre-
deemable paper the Americans might well have Dor
rowed IN LOnuon during tie war and gained by
DONG So and though 1t ~ not much an obstacle
noI 1t is not IN their favor That tarIn retards
the export or American securities II - hardly neces
siry TO snow. An export o. Suc securities Is almost
In iorn plan by winch the American community
borrows from Europe, and the tarin ntereres wilh
the lending oi the money IN the only profitable way
VIZ, IN the shape Of goods. American business Is
likewise made less profitable by the tariff and gov
ernnent securities are more Tempting TO American
investors Than tney would otherwise oe. even At the
| present rae OF interest. All this Is apart from
| the consideration Of the indirect injury done
| by the inconvertiblc paper and the tarf. by
| illp0verish!ng the couatry anu retarding the
| accumulation oil capital they thwart the pros
| pcrity By which SURPRISES are obtanod the debt
and taxation diminished and the market value OF
the securities improved. Stlll, III spite OF all dsad
vanages, we conclude that the persistence OF the
| Americans IN paving of thelr debt the improve
| meni OF their credit aud the probability OF peace,
| are the stronger circumstances. aud That speedy
conversion Of the dcbtathough perhaps not 10 the
extent Mr. Boutwell, antcipaLe5--iS exceedingly
PROBABLE The only danger winch we have not
touched on Is the possb mpalience Of the Arncri-
| cans with their present taxation. which III ght
deprive taem OF tue prestige o. ugpuses and add
enormously TO the existing obstacles 10 cheaper
oeoT. But apart from the ariI tie taxation Is not
burdensome Is certainly not noerablc as II once
was aud we do not think the danger ~ much to De
feared. II the Americans should REFUGE the tarl to
any important extent they VIII gam more IN other
ways than they temporarily lose IN SURPRISES, and
revenuc under reductions mas SHOWN. would only be
for very slort time.