New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-08-30
PUBLIC CREDIT IVpRO TING.

PUBLIC CREDIT IUPRO TING.
The rapid and steady improvement Ill tho
public credit is exceedingly gratifying, espe-
cialy to the Republicans. Last week the 4i2
per cent coupon bonds sold here at IFS
and the per cent coupon bonds at llo'
Deductng nearly one quarters accrued inter-
est on Ope class and nearly two months on
| the other, the prices were for Az bonds llO4
and for per cents about 109l3 AT TINS
| price the per cents return to the investor
about 365 per cent so that but little further
progress is necessary to make it evident that
! a go per cent bond can be sold at par. III Is
probsble that Republican victories this fall,
giving assurance that regulators will be pow
erloss for mischief. and that there is to be no
such change" as Democrats desire III the
financial policy of the Government, will readily
impart the additional strength to the public
credit that will enable Mr.. Sherman to sell
3l2 per cent bonds for the heavy reiunding
operations that should be completed next year
| Undoubtedly the recent steady advance In the
prices of United States bonds, both here aud
in Europe, has been in part due to the grow
ing prospect that the mischief making Democ-
racy will again be defeated, and disastrous
change prevented. When certainty comes in
place of bright prospects, 1t will be surprising
if a still greater and more rapid advance does
not appear.
Every Presidential election, since the long
series of Republican victories began, has
| given new evidence Of the growing confidence
of investors and practical business men III
the Government when directed by that party.
When the Republican party assumed charge
of the Government, in April, 1851, United
states per cent bonds of 1881 were selling
mt S4l2; i'm other words, lenders demanded
us per cent for trusting their money
to the Government. Three years LATER
though in the midst OF a terrible civil
war, these 6 per cents sold at 1O2 about
tie time that Mcclellan was nominated
and at 11S shortly after Lincoln was
elected. Again, in 1865, when General Grant
was nominated, the lve-twenty bonds were
selling at 1O93i; after his election they sold
that year at 1113s, and IN the April follow
ing his inauguration at 1901. Again, in
1872, the same bonds rose from 1923 III
September, when the result Of the election was
thought doubtful. to 1864 III December, and
lis after the Inauguration IN the following
March. A similar advance occurred from the
time when Mr.. TIldcn was thought 20 he
elected to the decision In disputed Southern
States favorable to Mr. Hayes and though
Democratic threats of revolution atterward
caused prolonged uncertainty, and decline in
credit, the whole world knows how marvellous
has been the uplifting OF the Nations credit
since the present administration took charge.
At that time 4l2 per cent bonds could not be
sold at the last session of Congress the Dem
ocratic chairman Of the Committee on Ways
Al. - L.
could be sold at par, though his partisans
would not vote for the legislation needful to
complete refundng. When General Hancock
was nominated, the 4 per cents were sell
ing at 1854, and July 8 at 1OSlo since that
time the advance in price less interest has
been constant as the prospects of Democratic
success have faded, and is already about IL
per cent.
The old notion that only few people were
interested in the appreciation of the public.
credit has been completely exploded. Last
year it became known that the number
of holders of the per cent loan
was very large, and the investigation to be
made in connection with the census will show
the results Of the continual distribution of
bonds to small investors, which has been in
progress ever since. But besides the indIvid- |
ual holders there institutions which rep |
resent the savings of millions of persons, hav- |
ing a large part of their assets invested in |
United States bonds. The National banks |
hold $3.50, 100000 for their host If stock
holders; the State banks, insurance and trust
companies hold at least S75, 100000 for the |
200, 900 persons who have savings therein /;
and the savings banks hold 1916, OOO.O 900 for |
their 100000 depostors. The advance of Q |
per cent in the value of United States bonds |
within the past year has virtually added |
$50, 900, 600 to the resources of these insti-
buttons, and all this and much more they |
would lose if the public credit should be de-
pressed by a change in the policy of the Gov
eminent.