The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-09-07
ereuius Stats alu,sraal.

THE logic of facts in relation to the
financial measures Of our Republican Adj
ministration, is effectually silencing the
sonhistrv of our Democratic contempora-
ries. In spite of the senseless clamor
AGAINST Mr.. Boutwell,, that he had failed to
introduce even the ''cntering wedge of
five per cent. loan," we find that wedge
has not only been entered, but driven
home; and from the comments of the Lon
don Economist, the great European au-
tbority in financial matters, it appears not
only possible, but probable, that the specu-
lations which we recently made in the coli
umns of the STATE JOURNAL, as to the
negotiation, at an early day, of the four
and one-half, and even the four per cent.
new bonds, will be realized. Nothing can
prevent it but the transfer of the national
administration. to Democratic hands, and
tbe Inauguration of that policy of hate and
their agitation which is its only platform.
From the London Economist, Aug 10.
1t must be admitted however, that the chances
may succeed in completing the conversion of
fIOOOO, 900 per cent bonds into 5per cent bonds,
and that farther operation of the same sort
nav soon be possible. The dizainuatfon of the
IuG,ltig of The american deJt is certainly telling
dreatly on the Market and probably the worst
effect of the French competition has been felt.
There is some likelihood that France will endea-
yor to keep out of the money market as long as
possible, so that she may issue the next large
loan required at a lower rate. And If France
can borrow once more at per cent, or less,
America will have a better chance than she has
lately had, or has at present, of doing the same.
There is no doubt too that apart from the cir
cumstance of the higher rate of interest current
in America, that country ought to borrow at a
much cheaper rate than France. She has barely
one-half the debt, q much smaller total burden
Of taxation, and greatly larger resources. Pro-
badly it Will not be easy, for n good while at
least, TO convert any material amount of the debt
into bonds bearing less than Ave per cent. inter-
est, but the saving of one per cent. on the pre-
sent annual interest should still be an object of
Importance to American Finance Ministers.
In contrast with the financial measures
50 successfully inaugurated and prosecuted
by the Republican party, read the follow
ing comment upon the New Departure in
finance announced by the Ohio Democracy,
and let prudent business men, and toiling
mechanics choose between the two parties,
which compare as Hyperion to Satyr.
II may not be generally known that the patent
back-action three per cent. reputation currency
scheme of Gen. Ewing and the Ohio Democracy
was borrowed from the st. Louis Labor Reform
convention The Labor Retormers, us well as
the Ohio Democracy, appear to be utterly igno-
rant of the connection between large profits and
high rate of interest, men paying q large per
centage for the use of their money because they
can get-or think they can get-corresponding
large returns. Witness the following from the
Anthracite Monitor, organ of the Pennsylvania
Coal Miners Union AN exchange alludes to
the fact that much English and German money
for q dark aud rainy day, and adds that all this
shows good sense and Judgment Does it show
good sense and Judgment for us to maintain 0
rate Of interest that will attract much foreign
capital, invite extravaganza, and finally burden
us with a debt we never can pay y When Amer
lean profits fall to the level of European profits
the rate of interest will sink permanently to thu
European level-and American wages, too