The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-07-20

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The accumulation Of money in the United
States Treasury, notwithstanding the Secre.
tary continues to use portion of the surplus
in buying up the bonds, shows the surprising
resources of the government and country, and
makes the national debt appear mere baga-
teile if the finances be properly managed No
wonder that our securities steadily advance in
the markets of Europe and continue to 60 up
at home. Capital is essentially conservative,
and Europeans, especially the English, are
slow TO learn about or operate in trans
atlantic securities They have been hereto
fore more disposed to invest in home govern
ment stocks, bearing three or four per cent
interest, than those of this country with six
or seven per cent interest They are, how
ever, waking up to the fact that not only do
investments in American securities pay double,
or nearly so, on their capital over those of
Europe, but that there is a far better prospect
of the principal being lquidated within a
reasonable time. Our five-twenties to-day are
intrinsically worth double the British three
per cent consols. That is, if these consols
are worth ninety, the ive-twenties should
realize in the market hundred and eighty.
Still they are quoted below consols, the last
quotations in London being eighty-two
and half. Yet, as we said, they have
steadily advanced, for they were last year at
this time more than ten per cent below what
they are now, the quotation being ON the 10th
of July, 1868, seventy-two and a half. With
all the preference of foreigners for home Sc
curities and the timidity of capitalists to in
vest in stocks abroad they must become i'm
pressed with the extraordinary resources of
our government and country, and, as con-
sequence, our bonds must continue to rise.
Let us glance at the comparative condition
and prospects of the United States with those
of the nations of Europe. There is scarcely
one Of the great Powers abroad which can do
more than make both ends meet-the current
expenses of which do not fully absorb the
incOme-while most of them are getting deeper
in debt and going from bad to worse. Not one
has the least prospect or expectation Of ever
paying the principal of its debt. 1t is true
there is occasionally spasmodic effort made
in England, and, perhaps, in one or two other
countries, to establish sinking fund, but no
appreciate result is produced. Wars are
constantly recurring, and in time of peace vast
ornaments are maintained, with all the other
stupendous expenses of monarchial and arbi-
trary governments, to devour the largest in
comes, and even any little surplus that may
possibly accumulate. People are taxed to the
utmost limit, and every year pauperism and
the burdens of government are increasing.
fn'reality the governments of Europe, not ex-
cepting that of England, are bankrupt; for
though some Of them may manage to pay the
interest on their debts, none can begin to pay
the principal. 1t is not long since the present
Prime Minister Of England, Mr.. Gladstone,
drew fearful picture of the future of his
country from the incubus of its enormous
debt, and urged the necessity Of some plan to
be relieved of it; but he had no practicable
idea how this was to be done. Indeed, the
debt Of England, as the enormous debts Of the
other monarchies of the Old World, can never
be paid. Nothing but revolution and repudia-
ton can wipe them out.
But how is it with the United States Since
the war closed, now only four years or little
more ago, we have paid several hundred mil
lions of floating Indebtedness arising from the
war, besides paying the regular and vast de-
mands of the government for ordinary and ex-
traordinary expenses. After doing this there
has been nearly all the time in the Treasury
thop b.,od rodr mill &c JoII
lying unemployed. Yes, much larger sum than
that if the gold be reckoned at currency value.
And what are we doing now? Why, Mr..
Boutwell, is puzzled what to do with the money
accommodating in his hands. He is applying
the utmost limit allowed by law to the sinking
fund and buying up millions of bonds and put
ting them away till Congress can authorize
their destruction. Yet, on the FIRST Of this
month he had over a hundred and sixteen mil
lions in the Treasury. The debt is undergo
ing very material reduction now. We will
not venture to say how much more could be
done by strict economy on the part of Con-
gress and the administration and by the most
skilful management of the finances. Then, If
we look at the enormous crops Of the present
season, which in every section are the most
promising; at our gold, silver, cotton, grain,
corn and other productions; at our boundless
resources and at our rapidly increasing popu-
laton and wealth, have we not reason to say
the debt Is mere bagatelle? While the ma
tons Of Europe are hopelessly stepped in debt
and pauperism and must decline compare
lively, we are marching on with rapid strides
to such wealth and greatness as no nation
before ever attained. Il would be strange, in
deed, then, If our securities did not advance
| in the markets Of the world and if they should
not continue to advance TO a much higher
point.
The Cuban Fnibusters and the Cuban
| Question.