New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-10-31
wjLL y0r v0TE roG 4 PIyiC'

/ 4
Democratic crcdt may mean fifty cents on
the dollar for q per cent bonds. Perhaps
under Dem pcratlc administration the pubhc
credit might at once sink even further, and
perhaps not rs far. In 1850 the entire ma
unna debt was less than SGJ,OoOOOO, and
the last Democratic Administration IN orr
history was forced 10 pay - per cent interest
for money. Now the public debt l. more than
thirty times ~ great, We have deprecated
currency which three tourths of the Democrats
intend tO increase rs soon rs they can,
and there arc hanging over uS WIZ
claims in amount nearly forty times rs
great ~ the entire debt in 1850. the
payment Of which many Democrats de-
m.nd that their candidate finds 1t necessary
to promise that he will veto the mcaSnic' OF
his parry i'm that matter. Under these cirrum-
stances, is it not reasonable to say that Demo
cratic success may place the public credit
where il was when that party went ont of
power and the public debt was less than
500 900, 900? At that time tlc public credit
was such that II per cent Interest was de-
mandcd. and per cent bonds at 30 would
yicid that interest. What II United States
skies should fall To 30 cent, on the dollar
financial corporations are invested in United
States bonds to the amount of Tl36G29.322.
In that form are about two-thrdS oi the IN
vcstmcnts Of national banks, more than hall
the investments of state banks. ana
about onc-fourth of the investments or
savings banks; trust companies have
nearly half their assets thus invested. fire
insurance companies more than hall,
marine insurance companies nearly four
ffths. and life insurance companies about one
twelfth of their investments. Any considerable
decline in the public credit would wipe ont Il
large share of the assets of these institutions.
But that is not the worst OF it. The panic
and tho depreciation of real estate and OF
city. town, and railway bonds have already
| DESTROYED a large share of the assets OF these
companies. One of the larger insurance COM
uonics has Just failed, although its nominal
assets were ample, because its real estate and
mortgages on real estate were no longer worth
what they had been. In any case that part of
fine investments of any company is almost wholly
! unavailable. To meet any present demand
these companies have a little cash and $780,
600. 900 in United States bonds Suppose the
market value of those bonds should shrink
%GS, OOO, 900, does not everybody see that
! their available resources would suddenly be-
come utterly inadequate to meet demands
IT. short, they would become bankrupt Men
by the hundred thousand, who have deposits,
or assurances, or stock in such companies,
would lose what they have saved.
The actual loss would be far greater than
the necessary loss, for very simple reason.
| The very banks and companies which have
been considered the safest in part because
they have kept an unusually large share of their
assets in Government bonds, would be most
quickly Frustrated. Seeing these concerns,
justly deemed of all the safest, going into
bankruptcy, men would lose confidence in all
others, and wild panic would prevail. De-
positors would hurry to get their savings; the
! insured would surrender or refuse to continue