Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-10-01
Evlls OF an Irredeemable Paper Cur
rency.

The New York Tribune Of Saturday
contains another of the admirable letters
of ex-Secretary McCullooh on the currency
question Mr.. McCulloch says that a few
days ago he asked gentleman of large
experience and careful observation
"When shall we be able to borrow at
per cent. for the purpose Of retiring our 8
per cent. Government bonds ~ The re-
ply was: "When you get back to specie
payments" On many accounts the credit
of the United States should be better than
that of any country in the world. The
country is a great and growing one, pos
sessed of illimitable resources and mar
velous recuperative power. Since the
war closed the national debt has been
largely reduced, showing the determine
tion Of the people to gradually liquidate
their Indebtedness. In the same time the
British national debt has remained almost
stationary. II is nearly twice rs large as
that of the United States, and more than
twice as large per capita. There is no
thought in Great Britain of ever eXtin-
gushing it. 1t bears interest at the rate
of but per cent per annum. Yet the
English per cent consols are worth in
the London market 9415, 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
/ 1S9, or at a premium of S21S more
than they now do. To put the case differ
entity British capitalists will pay G945 for
consols on which the annual interest is
| but $50 per annum, while they will pay
but 1865 for American bonds which will
bring them in e54 per year. If the credit
of the United States stood as high as that
of fEngland, instead of paying 800, 100000
] M in hp nf N
national debt, we should pay but a little
over $4,000, ,000 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 a price as the
English consols; but there certainly is no
good reason-eXcept the unsound tinan-
cial legislation in this cOunTy-why the
United States should not obtain money at
4 per cent. with as much facility as Great
Britain can at 3. 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 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 assnOw; the
traffic upon English railroads was never
so large, and, Notwithstanding reduction
of taxes, the revenues of the Government
are steadily increasing; municipal in
debtedness is comparatively unknown
there is no general complaint of taxation
and the spirit of the people is strong anC
buoyant There have been heavy failures
(none OF very few, however, as far as car
, learn, of firms that have not engaged il
J operations outside of their regular bust
nessh and fearful losses have been sus
tained by reason of injudicious invest
/ ments; but the nation is, as whole, in
satisfactory financial state" Mr.. McCul
+. loch holds that the fact that the reverse o
t this is true in the United States is largel,
! due to our redundant and vicious cul
/ rency.--Detr0it Free Press