The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1879-07-02
CHEAPER MONTY IN THE UNITED
STATES.


per cent loans by the new four
are to prevail in this country for money
borrowed for enterprises in general.
Herdpath's Journal (London) has the
following:
we think We are justitiei in assert
ing that the refunding Of the nstioDsl
debt of the United States at q lower
rate OF interest marks new epoch in
the industrial history OF that republic.
It is true that n times past the
Americans have enjoyed very good sd-
vsntAges 10 an Immunity from the tax
ation and the heavy local burdens
which Europeans have to sustain. But,
on the other hand. they have had to
contend against one very great draw
back il the very high rate Of interest
commonly attached to bonds and loans
in'the great centers OF American life
and commerce, and from which even
the United States government has had
to suffer. Although called upon to
administer the affairs OF an enormous
continent possessing practically illimit-
able resources snd inhabited by an
energetic population Of 10000, 900, the
American government was paying ten
years since sn interest Of 6 per cent per
annum upon nearly all its public debt.
Now, after . decade OF perssvering
effort, the 6 per cent debt Of the United
States bss been nearly ali paid OF and
= great mass Of the United States 1 per
per cent bonds has been brought into
circulation. The effect must 0e very
great upon the various American mon
etsry centers. such AS New York.
Boston. Philadelphia. Baltimore aud
Chicago tns rate of interest a,ust gen.
orally tall, and capital being obtaina-
ble np"n cheaper terms, "a stimul.nt
must bo given to American commerce
and industry.
1--WE lnd this apparent in many
ways already. The = per cent. pre-.
fsrred stock. for instance. Of the North
ern Pacific Railroad. which WAS obtain
able four years sincs at Is Or l6 per
cent Of its nominal value, has now OBJ
tanned = quotation Of close npon 80 per
ceut. This is due to the fact that the
American public has come to the con
clu.ion that cheaper capital will enable
the Northern Pacific Railroad Company
10 complete or 1T any rate TO extend
its line much more rapidly than il,
otherwise would have completed or *
tended, while renewed vigor will be
impaired to the colonization or settle
ment Of the Great West. Not merely
have the securities Of struggling com.
psnics like the Northern Pacific ad
vanccd in price. but there has also been
y rapid upward movement in the bonds
Of ell the more prosperous railroads OF
the American Union. Eight years
since the I per cent. land grant bonds
Of the Union Pacific Railroad Company
we're obtainsbls at fl2s per bond. Now
the same bonds could not be- procured
at less than E22S per bond. In many
other American railroad securities AL
almost equally rapid rise has been
noted. and it is not too much to say
that the refunding of the public debt
Of the United States at 4 per cent.
per annum has impaired new life and
vigor to the railroad interest Of the
Republic.
I'm another respect the change which
has Just taken plsce in the American
money markets will probably bs re-
garded with less favor on this side of
the Atlantic. It is. no doubt. very nice
to hold . well.secursd 6 psr cont.
American nilroad bond (purchased,
say. At 90 per cent. or even less. OF its
nominal value) growing in price from
day to day. But il is much LEES pleas
ant 10 feel the increasing pressure Of
American industrial competition. An
English manufacturer who has to strug.
gle against American iow.priced goods
Ia oil directions would probably have
much preferred that the Americans
should have gone on paying per cent.
per annum upon a large mass OF 5-2O
bonds, since the conversion OF Ameri-
can per cents into American 4 per
cents has been attended with the indi-
rect effect Of supplying American man
ufacturers with cheaper working capi.
tai. But We must take things - We
find them. whether they tell for US or
whether they tcll Agaisst US. At pres
cnt the broad. tangible fact that stands
out proaineutly in connection with the
United States 10 that capita! has largely
aecumulatsd il the repsblic, and that
il is. BY consequence. obtainsbls upon
relatively cheap terms AID conditions.