The Florence tribune., 1901-06-08
The Climax ot National Credit.
Samuel E. Moffett in Saturday Evening
 Post1


 Post.l
 A few years ago the credit of the United States was good, but not re- markable. Some European fnanciers professed to doubt it. Even at home there were people who said that they were uncertain. We were borrowing money nominally at four and five per cent, and actually at between three and four per cent. When somebody suggested at that time that United States bonds were really as good as British consols, an English paper re- sented the suggestion as an insult" To-day the verdict of the market is that the credit of the United States is not only good, but the best in the world, and not only the best, but so incomparably the best that, as in the first America's Cup race, there is no second. British consols returning their purchasers four and three-fourths per cent. interest the first year, two and three-fourths per cent. the second, and two and one-half Der cent. annual ly for twenty years thereafter have just sold at ninety-four and one-hali. United States two per cents. are sell ing at 1061s. German imperial three per cents. have been going in Frank fort at eighty-six, and French three per cents. in Paris at 1O1. Russian four per cents. have been offered at par, and United States four cents. of 1925 have brought 40.
 The markets judgment of the com parative merits of national securities is based on very good reasons. United States bonds have special value as a basis for bank issues, but private in- vestors find them attractive, too. If all other conditions were absolutely equal they would be better than British consols, for they offer an as- sured income without any deductions whatever, while the British Govern ment promises to pay certain rate ot interest, and then keeps back as much as 1t chooses under the name of in- come tax. It chooses to hold out six per cent. this year-nezt year it may keep ten per cent, or a quarter or a half.
 But the other conditions are not equal. The United States carries by far the lightest burden of debt that is borne by any great nation in the world. When people in Europe look in statistical alma macs they are de. ceived by the statement that the na tional debt of the United States is, ovel two thousand million dollars. Ever that would be considered small 1T Europe, but, as matter of fact, it il more than twice as much as we realls owe. Our actual national debt in tn, European sense is less than one thou sand million dollars. All the rest i represented by non-interest- bearing bonds and certificates of deposit fo which we hold practically dollar fo collar of cash in the Treasury. Tn bonded debt of Great Britain wa about three billion two hundred mil lion dollars a year ago, and is owe three billion five hundred million dol lars now. The debt of France is abou six billions, and that of Russia owe three billion five hundred million. Tn other European nations are proportion ately loaded; yet the United State could easily afford to carry heavie debt than any of tben.
 If we manage our affairs with reason able prudence we shall be substantia ly out of debt within ten years. The we shall present the annoying spectac of a nation with perfect credit and n need for it, while the countries tn, want the credit will not have it.