Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1875-10-07
Evils of an Irredeemable Paper Cur
rencY.

The New York Tribune of SATURDAY.
contains another of the admirable letters
OF ex-Secretary McCulloch on the currency
question. Mr.. McCulloch says that few
days ago he asked a gentleman of large
experience and careful observation
When shall we be able to borrow at
per cent. for the purpose of retiring our
per cent. Government bonds 20 The re-
ply was: When you get back to specie
payments" On many accounts the credit
OF the United States should be better than
lilat OF any country in the world. The
country IS great and growing one, DOS
sesSeu OF lillmltable resources and mar
Velous recuperative power. Since the
war closed the national debt has been
largely reduced, showing the determine
tlon OF the people to gradually liquidate
tnelr Indebtedness. In the same time the
British national debt has remained almost
stationary. 1t is nearly twice SIS large as
that OF tbe United States, and more than
twice as large per capita. There is no
thought IN Great Britain of ever extin-
gushing 1t. 1t bears interest at the rate
OF but 3 per cent. per annum Yet the
English per cent. consols are worth in
the London market 94115, while Americas
per cent. bonds are worth but 1861. If
the latter were thought as much Of rela-
lively as the former they would sell at
1o9, or at premium of S215 more
than they now do. To put the case differ
emily, British capitalists will pay e945 for
consols on which the annual interest is
but $50 per annum, while they will paw
but 1858 for American bonds which will
bring them in e54 per year. If the credit
OF the United States stood as high as that
OF England, instead of paying 500, 100000
per annum IN the way of interest on the
national debt, we should pay but little
over $4,000, 900. Bonds running for a
short term OF years would not command
as high price as others equally safe
which would be permanent investment.
Therefore while the United States is rap
idly paying off its debt it could scarcely
be expected that under any circumstances
her bonds, bearing the same rate of inter
est, would bring as high price as the
English consols; but there certainly is no
good reason-except the unsound finan-
cial legislation in this cOuntry-why the
United States should not obtain money at
4 per cent with as much facility as Great
Britain can at g. Nor can there be
any question that if the currency of this
country was down to "hard pan''-if
there was a solid and substantial basis
upon which to work-that the effect would
be manifest in the appreciation of the
cOuntry's credit, and in such a manner as
to do great good in the reduction in the
annual interest charge which would speed
lily result
In his letter Secretary McCulloch refers
to the present depression in trade and
manufacture in Great Britain. But, he
says, while the existing depression is
felt, and severely, by the manufacturers
and dealers in Great Britain, the general
state OF the country is healthy. Land was
never so high or so salable as now; the
traffic upon English railroads was never
so large, and, Notwithstanding a reduction
of taxes, the revenues of the Government
are steadily increasing; municipal Inc
debtedness is comparatively unknown;
there is no general complaint of taxation,
and the spirit of the people is strong and
buOyaI--. There have been heavy failures
(none or very few, however, as far as can
learn, Of firms that have not engaged in
operations outside of their regular bust
ness), and fearful losses have been sus-
tanned by reason of injudicious invest
mentS; but the nation is, as whole, in a
satisfactory financial state" Mr. McCul-
lOch holds that the fact that the reverse of
this is true in the United States is largely
due to our redundant and vicious cur
renCY.-DetT0Gt Free Press.