The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1869-01-08
@ O " 8 o L q.
IL the National Debt Of Great britain
PAYABLE ta Gofdy

IL the National Debt Of Great britain
j Payable M GoldS
It's probable that this question would
bo answered affirmatively by most people
Nevertheless It Is nota fact that consol,
nre payable In gold. On the contrary, the
Government Of the United Kingdom Is un
der no'le9al obligation phaisrer TO pay them a
all. 80 ri stir iT
The term "consols"is an abbreviatioI
of the word "consolldatcd.r owing its ori
gin to the Stock Exchange. Nearly tn,
whole of the present British national deb
arises from the consolidation Of rdrious Oh
legations into what are called 3 per cent
consolidated annuties, or eonsols. Ever
the interest on these annulties is, strictly
speaking, not payable In gold, but In h'
ia,gful money Of the kingdom, Lamely, In
Bank of England notes, which, notwith.
standing they are issued by private cor.
poration, are, according to Act of Parlla.
ment, legal-tender for ALL debts. public
and private, throughout tho United King
dom. IL Is true that these notes are pre-
sumed to be convertible into gold at the will
and pleasure of the holder.but the fact Is,
this presumed 'eopUertibiliiy Is q, ,delusion.
hefctitious character Of their. converts
lbilltyi provcd.by the fact that tho Bank
of England Is authorized by law to Issue
fourteen million pounds (s67, ,2OO, ,OOO) Of It's
notes without possessing an ounce ofgold
to represent them. The average circula-
ton of the bank for number OF years
has been about EDS, ,0OO, 900, or Sl34, ,400,-
600; 1t Is therefore minlfest that only a
moicty of Its notes Is absolutely coayerti-
bic into gold, and that If the value of all
the notes In circulation was measured by
the gold only generally held by the bank
as the guarantee of their convertibillty
they would not be worth more than ten
shfiifRgs in hc,pound or fifty conts on the
dollar. -, ,. ;. 3 - - s,,s...,s -.
At one psr,od wtbM oar. recollectlor
'Ithc total amount or gold bullion I'm
bank was only es,585, 900, while the tota1
amount of notes In circulation was c22, y
l2l 200. Consequently, ut that time the
notes. measured by the gold reserve, were
not worth eight shillings In the pound,
say about 80 cents on the dollar; and II
the ES,5G5,O 900 of gold has been divided
among the holders ofthc notes, the bank
would have had no means Of paying Its
deposltors except by q new issue of notes
based solely on the credit of the govern
ment or the nation, and not on gold.
These are incontrovcrtible facts.
The act OF Parliament creating the con.
solldat ed annuitics, now universally known
as consols, was passed In the year 175l.
by this act, the various loans, for tho re-
payment of which particular taxes had
been assigned, were united, and all the
funds consolidated into one. , =
| So far we have referred only to the fun
ded debt, the market price Of which, with
! In the last sixty years, has ranged between
l42 per cent. discount and about 3 premi-
Ium, the average quotation for the last few
months bring about s discount. There Is
also In England what Is called the unfund-
ed debt, consisting of public obligations,
such as excheQuor bills, ETC., which enti-
tic the holder to payment Of the capital,
ut time named therein, In good and la,c-
fui. money Of the United Kingdom; but even
these are sometimes changed into con-
soils, with the consent Of the holders, say
rs often rs the Government finds II ineon'
rsnient to discharge them with receipts
from taxes and imposts.
In buying consols. the purchaser does
not usually receive any certificate and II
Inc did, 1t would be of no use to him, us
any one may dispose Of his consols and
retain his certificate II he has obtained
one. Such certificate Is considered val.
ucless on the London Stock Exchange,
from the fact that ills only u memorandum
OF a transfer,
The buyer has his name registered In
the great registration books of the funded
obligations. These books arc In the Gus
ltody of the Bank of England, and are ar.
ranged alphabetically, and distributed
int0seycral rooms, over the entrance to
each Of which Is indicated, by initial let
tiers and syllablcs, the books 1t contains
Thus, In these volumlnous records, per-
son can readily find the page which con-
ltains.his account: not, indeed, In the true
acccptation of the word, as creditor OF
the nation. but rs an individual entitled to
receive, by way Of interest. an annuity
determined by the amount which appears
| from the entries therein.
Every transfer must be made psrsondiIy,
or by a duly authorized proxy. The
practice is to regard stock brokers who
are well known, to the book-keepers' rs
the representatives Of fnndholders, In the
transfer Of capital, and the receipt Of the
semi-annual interest. ..tyt,..