The daily gazette., 1880-12-30
THREE-AND-A-HALF PER CENT

From the London Spectator.
Everybody ought 10 be very much
pleased at the splendid success Of the
Indian 81 per cent. loan offered Oh rucs-
day, but everybody is not. The India
Office wanted $4,000, 600, and offered
81 per cent. at 81; bat the market sub
scribed Gl4,000,00O, most of it above
par, and much OF it at l04. The tri-
umph and relief Tor the Government of
India are, no doubt, very great. With
IN living memory, that Government has
paid per cent. for nohey; II has paid
% within THIS generation; and now,
after great and expensive war, and
amid showers of pessinist predictions,
many Of which have a basis in truth
though the element Of time is often
omitted In them-the credit of India
surpasses that Of any State, except Great
Britain, in the world. Neither France,
nor Germany, nor even Holland, can
borrow at that price. This ought to be
a satisfaction 10 all Englishmen, but we
suspect majority OF those who read the
Intelligence feel something not very
ditieren, from dismay. The event 10 a
heavy blow to litlls people, or iather, ii
brings home To them with new force the
permanence OF he process which has
now been going on for nine years, and
which so el sely affects them,-the slow,
out steady, reduction Of the rate Of in
terest upon all sound securities. By
Que Of those accidents which sometimes
marx the history Of hEanee, as OF ma
tlons, period Of continued peace has
oeen synchronOus with lull in busi-
ness speculation aud a loss Of faith in
certain securities, and the SAVINGS OF
the world have been directed in a full
stream towards the few, though large.
investments which are beyond doubt,
The consequence has been a steady but
determined rise in their price, until the
safe" securities which trustees will look
at-haye reached unheard-oi ii .ures.
| Consols, If we count the dividend, are
above par. Fr+nch 3 per cent. rentes
are AT s6, the American As are al ll5,
aud Congress has just voted that fi5O,.
OOO,OOo or 50 shall be refunded a, per
tent.-an operation quite practicable
the best railway debentures at per
cent. range up ID or beyond lib, good
4 per cent. preference railway share;
may be roughly stated at llO, and Indian
guaranteed D per cents scarcely yIeltSi
per cent. 1t is useless TO 20 father will
.he list.
With the exception OF some small
stocks here and there, which by some ac.
cdent do not attract the market, II is i'm.
possible to obtain 4 per cent, in any
security which is al once safe and quick
ly realIzable, aud extrem, ly difficult il
seculi les fit for trustees TO obtain NOR,
han g.. At The same time, the return!
from land are going down, aud its valu,
SHAKING to an extent Which frighten
,wall lnves ors; the rental of houses 1
sinking, though in this Instance th
esistance is fierce, and rent a good dea
Affected by,indviduAl Necessity or whlRl
and the rlcher municipalities are threALeI
/ ing everywhere to convert their bond
mo lower, sometimes much lowe
, denominations. The banks are browne
IN money at deposlt,tIll the most formld
) able danger Of the situa, ion |, the neces.
y their managers feel for using none
somehow and still every rogue VIII
I plays big game, and therefore want
a large advances, in bank parlor; an
promoters who in ordinary times woul
= offer the public 20 per cent, think
Q VIII be at ractive enough, aud hay
@ sometimes the adroit impudence to offe
q ,, Accumulation, in fact, has caught u
and passed the means of investment, ii
Il if great Government, say, France
e Germany, wanted hundred millions
!. 80 per cent, for anything but WI
! capitalists wsuld feel the request as
a kind Of godsend.