, 1880-09-12

savings which has yet been offered to tt
average British citizen, and that Is an, o]
portunityto invest in the national bond
The British consols are issued of various d
nominations, the lowest, we believe, of e1o'
or$500. Whether this be the exact sum OF tt
lowest denomination or not, the consols al
now beyond the reach Of the ordinary deposi
or. The new law provides that hereafter vino
! any person has &1o, or $50, On deposit in tn
postal savings bank he can have the sam
invested fer him without cost and at par /
a consol, or, as they are called In this conr
try, national bond. Il this opportunity
which has hitherto been wholly unknown Ii
Great Britain, shall prove acceptable, th,
Government proposes year hence to re
duce tho minimum to e5,, or so5. Th
privilege Is limited to $500 in any one year
and to Sl,500 IN all. The argument is tha
the multitude OF Englishmen will prefer al
investment in the national funds to a mer'
credit in the savings banks. The Londo1
Times says:
In many ways 1t is desirable tn encourage
people Of ali ranks to invest their earnings Il
coasols has q special interest in the malnte-
nance Of peace and order: the noise Of agitntort
| can have little attraction for hm. The solidity
| soils can be transferred, and the fact thar they
! can be made available to the small investor as
| well as the large, are but few Of the reasons
which make it wise to throw open Government
securities to as large number of Investors Oh
possible This has been done with SUCCESS In
Erance; where the peasants nave, In spite Of
revolutions and talk OF revolutions, continued
to buy rentas and where the nAeIonui debt Is
held By some millions, Of persons. Why should
not similar results be attained hcre2
The Saturday Reute,o explains why this
provision Of the new law will succeed. It
says:
Substantially, no doubt, he who has $50 to his
man as ho who ht.s the same sum invested in
consols But the sound Of having money in the
funds Is very much finer than the sound of having
has a woll-to-do and even wealthy air about it;
i makes the man to whom It is applied Il cap
italist IN the eyes OF bis nelghbors. The other
against rainy day which is sure to come in the
end. and may come at any moment We are in-
clned so think that tho Influence Of this dis.
tlnction will be considerable that the dignity of
being an investor as compared with the deposit
or will have real atttac1tou for the poor, and
that the NUMBER 'b Of holders q
oe quite as large as its authors expect.
The recent experience in this country
serves to show the success OF issuing bonds
Of small denominations. The history Of the
National 4 per cents is positively marvel
ous. The Government was able to dispose
Of over $70o, ,ooo,0oo at par without the least
difficulty; and the sale Of $40 certificates
convertible into per cent bonds might
have been continued indefnitly without ex
hausting the popular demand. The example
of the Government has been followed by our
own two municipal corporations City
of Chicago and Cook County. These cor
porations issued bonds Of $50 each. bearing
4 per cent Interest, and at no time since their
issue have they been obtainable at less than
4 per cent premium. -Four per cent bonds Of !
the City Of Chicago, OF the denominations OF |
$40, SIS, and $50, can find market at par in |
this city in sufficient amount to cover |
all that part Of the present city debt which |
will fall due. within the next two years.
Such bonds can find a ready market in this !
,ity among all those people Of small means,
of small accumulations, who have had such |
costly experience in the matter Of savings
banks. There is not town or village in the
country where National bonds Of denomina-
ions not exceeding S5o may not find invest
'rs who are unable to buy. the bonds Of
arger sums. g.
We have not in this country been able to
nature a system OF postal savings banks,
whereby small Savings may be deposited.
;uch banks. with the privilege of depositors
o invest each SO in National certificates or
onds, would prove Of incalculable benefit to
n immense class Of persons who have now
% practicable mode Of securing small saw
ags; and at the same time, by distributing
he National debt generally among the peo-
le, bind by the strongest of all ties the
'hole people to the preservation and support
t the National credit and Of the National
nifty.