The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-02
National Credit.

l, Il almost certain that the present Con-
prcxs will provide for refundiue IN J per
cent. bonds 50 much OF the public oeo. as
4 reslee,nable during the present year. The
ann Il over $500, 900. A question has been
raised ss to the ability OF the United States
10 refund this debt al so low rate OF inter-
est. II Is said that the three per cents OF no
country In the world, except Eng'ana aoo
Holland, sell at par. and hence II Is argued
mat those OF the United States cannot be
expected to sell at that price. A Chicago
raper SAYS ths, the German per cents sell
ct 1901 the. Bavarian 4 per cents li't'e
lower: the Saxon a httle higher; the Aus
trtau al 75t; the Belgian at 1855 and the
Swedish o. s7t that the French is sell az
1871: the French Ss at $50 and that tue
Italian Us sell al s7i, and the Russian os al
ia. These arc significant figures.
The British 3's sell now at premium ana
the Government desires TO reduce It's rate OF
interest 10 "a per cent. We In this country
hold that our national bonds ought 10 sell
As high as.those Of any other country. Ana
they certainly do sell higher thaa toe bonds
Of any other country in the world excep'
tirea, Britain aud Holland.
We Judge that the form OF government OF
q country has nothing TO do with its credit
In the money markets OF tue world.
But there must be some reason why tue
credj, Of Great Britain seems to he Detter
than that OF the United States. We all know
one fac. which may she'd some light upon
the subject namely, that our Government
hoods having long time 10 run sell bisoer
than those which are redeemable mucn
sooner. United States AS sell lower now
than United States AS only because the Tor
mer are redeemable ten years benee, ana
the latter not for many years. Given'
therefore, a stable and honest government
one In which capitalists have full coon'
depce--and its bonds will sell higher or
lower in proportion as its bonds have
longer or shorter time to run before they
can be called in.
To this last fact is TO be found, we sus-
pect, the real reason why British per
cents sell above par. whilst question
is raised as 10 the ability OF the United
Stetes 10 sell per cent. bond at par. our
bonds are all redeemable Oh and after GER
tain fixed time. Most OF the debt OF Great
Britain, on the contrary, is in the form Oh
anpujties. "Strictly speaking" says SPoF-
FORD. basing his remarks upon British au-
thorities, "the Government OF Great bri-
tain has no bonded debt. 1t is all funded
debt; and the practice Of the Government
Il to sell aunuities; that is, upon paying
eI00 INTO the treasury the subscriber re-
ceiyes a government promise 10 pay
so much per anpum during certain time,
but without any promise 10 return the sum
paid In. The per cent. consolidated an
nulties, familiarly known as conSotS,' prac'
tical,y make lbe funded debt OF Great Britain
consist OF neuer. ending dnnultieS unless re-
deemed at the option of the Government.
1t has never been the British practice 20 sell
the Government bonds payable at certain
time, or option, and bearing certain IN.
terest. al fixed price; or to the hIghes'
bidder. as in France and the United STATES.
AS there is no probability, and indeed
hardly a possibility, that the British Gov
eminent will ever be able TO pay
its debt, the annuties it provides for may
well be styled never-ending annulties -;
aud being such, they sell higher than bopos
redeemable In thirty orforty years. whether
a bona redeemable at the end OF fifty or SIX
~ or o hundred years would or would not
sell as high as the annuities in question is a
point not yet settled.
We conclude, therefore, that it is not 60
ing too far to assume that the credit OF the
Government OF the United States is as good
ss that of Great Britain, and that bonds
issued oy the former would sell as high as
bonds of the same kind issued by the latter.