The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-10

privileged class. sort OF aristocracy In the
masses Of the nation Tho right to choose n
trade and work ut IL. which now seems natural
and Inherent. was then privilege confined to a
very limited number OF persons in n given ur-
ban community II a man for any reason was
Obliged to leave the condition Of farmer or agri-
cultural laborer and turn to the city for refuge.
no trade whatever was open TO him. and no yoca-
ton but that Of beggar Bohemian. or robbcr.
A Handbook OF Finance.
Some valuable data and statistics have
been collected by W. l.. FAwcETT. in n volume
entitled Goid and Debt. an american Handbook
Of Finance Chicago: s. c. GriggsJ The
authors object is to present, in COM
pact form. convenient for reference. trust
worthy statements and figures regarding the
great financial problems OF the day. Some Of
the subjects discussed are the increase and de-
crease in the great volume OF paper money at
various periods I'm the United States and in
Europe. during the last Nifty years-the pro-
duction OF gold and silver and the consumption
Of those metals in the arts since the beginning
OF tho year Of gold in 1si9. and finally the
monetary laws Of the United States which set
forth the nature of the contract between the
Government and its bondholders.
An interesting chapter treats Of the times and
periods during which specie payments have
been suspended In various countries. In the
United States. for instance. as is comparatively
well-known. there have been four perods OF
suspension within the last sixty-two years
Two were caused by the requirements Of the
Government 70 carry on wars usli and 1861.
and two 1851 and 1857 by tho collapse
Of speculation. induced by ovcrissue Of
notes under systems of banking not SUM-
GENTLY covered by law in regard TO tho
security OF an adequate specie reserve.
Within two years preceding 1914. our ma
tional Government borrowed forty-ivc million
dollars. OF which a part was furnished by the
banks in the Middle States whereas scarcely
any was obtained from New England. The re-
suit OF these loans was that in 1914 all the banks
except those Of New England suspended specie
payment. Neither OF these suspensions how
over. or those occurring In 1889 or 1857 wero
legalized by any action Of the National Govern
ment. In 1897 the Bank Of England suspended
specie payment and did not resume until 1921 ::
the Bank OF France suspended specie payment
in ls45. and deferred resumption until three
years aitorward. Passing 10 Austria we find that
the National Bank Of Vienna suspended pay
ment in 1sis, and did not resume until ten years
later. In 1859. or within a twelyemonth. the
bank again suspended payment Of its notes
the year 1875 the premium OF silver over Gov
ernment notes in Austro- Hungary still averaged
about Ave per cent. The National Bank Of Italy
founded in 1868 has for many years declined to
redeem its notes and specie. and the depreciation
was about seven per cent. at the beginning Of
1876. In Russia specie payments have been sus-
pended for more than twenty years. and in
Brazil for more than fifty. The paper millrels
which is the monetary unit. and is now worth
81 y cents In United States money was originally
issued at sl36.
The compilation OF the national debts Of all
countries is one Of tho most useful features Of
this manual 1t 10 worth bearing in mind that
the United States Is not the third. rs IS com.
monty supposed but the fourth or niih in the
list OF national Indebtedness. being outranked
by Spain rs well rs by Great Britain and
France. and. since the accossions required by
the recent war. We may add by Russia Indeed
the amount Of intcrcst-bcarinR debt owed hy
the Italian Government is but little inferior 10
our own. Here We may point out that Uruguay.
whose resources are considerably inferior to
those Of tho Argentine Republic. Of Chill. Of
Peru. or even Of Colombia. had two years ago a
debt well nigh equal 10 that Of all the four States
combined We may point out. also. that at the
close Of 1878 the funded or floating debt OF rail
roads in the United States exceeded then national
Indebtedness, being computed at 81 100000 600
At the same date the municipal dcbt Of the
United States amounted TO 800 100000. The
aggregate Of the public debts, not national. in
Europe for the year 1875 is estimated at about
t300O,0O0,0O0. Tho debt Of puris Is set down at
tls3 900, or about s22 100000 larger than
our own in the city Of New York. On the other
hand. the combined Indebtedness Of twenty
English cities. including London. Liverpool.
and Manchester was only 1921 100000 OF
American State and county debts the aggregate
in 1875 WAS <5ju.0OOuOO To sum up all
the funded national. railroad and cor
porato debts in 1875 intended to be ne
gotiable in the financial centres Of Europe
and North America. We reach the gigantic total
OF t32 800 100000. The actual liquidation Of
this vast sum would exact eight times the total
Of all the gold and silver used as money in Eu-
rope and America. and even at five per cent
which is probably the average Of stipulated
rates, the total annual interest on the above
amount would touch 81 600 600 600. The pay
ment Of the principal being left entirely out 81
the question for any considerable portion Of the
indebtedness this item Of the aggregate annual
interest alone is one Of the three factors in the
financial problems Of the time. the other two
factors being the amount Of non interest bear
ing debt or paper money, and the amount ~
gold and silver in tho commercial world avail
able for use rs circulating medium.