The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-10-17
1sG. Encrcaonedia Rritan.ear sol %, D,

.45e.l Z
45ss the Seufi,4Sea Gpnp1ng held more
than Y,ine.iniIlions OF tia Aeif. Ad tfat Lls,ie
the Government, kiax dxaptas.s, VI J. s NJ
agreement that had been mace hiae II. a..
ulunded OF It's creditors who had Gone h,iap
the scheme TINT they should eishei lsn .'a,.
the interest TO five per cent: or ''e asn IL
,aa,,s 81, >.,siseiysai
| resentntion OF The House OF Goumoas ~
bSs Mniesty George IL, Commons Jourhai,'
sth nrii. 17ss. Ffuaueial Pampniels, WI;
| 81 n. aes.7 Rather than accept ttie Inlns'.
| nal the holders Of Government ooiisa1'VnS
/ scres.d to take five per cent. interest,".
Mn.ters stood thus until 112e, When Ihe
1 c,,,tb4Sea COMPANY proposed 80 Govern
/ rssnt that IL ii would add certain other pr'-
| ,ruages TO their charter they would get pos
session Of the entire national debt. MAKE IL
| ali q redee1nable debt, bearing tve per cent.
interest for six Years; after W.sicn the ~
| terest should be four per cent. y pAt -.
70 this effect WAS accordingly struck. 1his
move WAS tue foundation OF the seherm
ruin and devastation which this stupei'-
| deus piece Of folly brought on Great brasaln.
The manager OF the company OF course,
| did not have ready money sufficient to pur-
chase all Government obligations. so they
went 70 work to putt the great results that
were going to fiew TO the company from ifs
tracing menopelies. Ali England became
infected with the mania. The shares Went
up as high as eleven hundred, one hundred
being par. The company invited tue noloers
of Government securities TO exchange luein
I; for shares OF their stock, Offering 1hem
special Inducements, and the result Mis
| that In short time il Was the owner VI
| almost the entire national deut. see pre-
yious references. and The Mississippi
Bubble .. .2G1, CT seQ.l 1n this Way Tue
government OF Great Britain got into Pc.
1 sition as to its creditors from which II could
! honestly and Justly say E:gou must reduce
YOUR interest or viii pay you Your pIlnci-
pal" and in this Nay, about l430, lie mixer
/ es, on almost the entire debt WAS reenceo
I TO four per cent. fSee previous references:
1 and And. uist. CON-, y. 81; " An ENQUIRY
I Concerning the Rise, Progress, DC. o. lne'
1 National Debt, " by Dr.. Hamilton; :. Return
I az whole amount of National Debt for each
1 yesr from 1881 to 1857 p. G., SD Parii'-
mentary Papers,
The Government, having thus happily
escaped from the power OF It's creoilofs'
| took care eyer afterwards when money MAS
borrowed TO make il part OF the contiAc,
| thut il might pay of the principal Wheh
chose; aud by exercising this privilege II
| has very many times since the events re
| lated forced its creditors TO reduce their 10
1 tel est. Any attempt TO mention each par
ficuiar instance Of such a reduction, anQ
I the circumstances attending each, woulo
I recuirc more space than could De s,Horoto
this communication. The reader VINO leeis
! interested In it will find an account OF each
| instance since those mentioned GOWN 10
! 1929 in Cohen's Compendium o. loahce
! y. 49,, Il seq, aud especially =. 2o@' ano
| Parliamentary Return of whole amount
National Debt and Interest from l69l 10
1857. 33d Parl. Papers. OF the reductions
that have been made since lS20 he viii ind
an account il Parliamentary Return OF
10th August, 1865, Both Parl Papers. lie
will there ind, also, that TIE Government, s
threat to pay of principal II interest was
not reduced has been no idle one. On every
occasion lie will lind a table showing large
bodies Of dissentients paid oil.
This paper is already too long. but c;ih-
not forbear 10 refer TO one other cllcuu-
stance as illustrative Of the perfect aad aD-
sCsute faith that Great Britain has kept VIII
her creditors. which faith has made her the
richest and most prosperous nation that tue
world ever saw. It was part Of Mr. PITT $
vicious scheme Of finance 10 pretend taat
the Government could always get money III
three per cent, when IL point OF lac' u
could not get it ut that rate. So that instead
OF borrowing 1T the current rate right out,
be did it in the following roundabout VA! ::
An hundred pound annuity at three per
cent. would BE sold. Now. If three per
cent. was the ruling rate, the purchaser
would pay sl0o for it: but il interest was
higher, al five per cent. for instance, be
would only pay $50 for it. In this way
almost the entire national debt as It now
exists was contracted; the money borrowed
nominaiiy at three per cent, but really
at FIVE, With an obligation 10, return
more than one third more than was actually
received. In a careful calculation made by
Mr. Allison in his History OF Modern Eu-
rope, volume II, page 413, it is estimated
that when the nation pays off Its oebt 1t WIN
have 10 pay ESQ, 900, 900 lone half the debt
OF the United States Government more than
| it received Yet the Government Of Great
Britain has never been heard TO wbimpef
once about this. The creditors interest
| has always been forthcoming at the daY
upon that which the Government did not
| receive as well As upon that which IL nio
receive. Her position has always peeh,
| !, It may have been an unwisc bargain, 9ut
lit was bargain, and my national existenee
i.depends upon my sticking 70 its very leu
ter.n Aud ITS result has been TO MAKE
Great Britain what she now is.
t~'ss ~sg WILLIAM J.. kofAiL.