Year: 1868

IlsAe mas BnoWn that the French Government


made an unfortunate mistake when in 1855 II re-


fused our invitation to invest in United States


bonds and chose 10 subscribe its $l00 100000 20 the
Italian loan in preference. Those bonds cost her
20, and now in the market at 45. while our
bonds which might have been bought at As, have
gone up TO "a or So with prospect Of their being
eventually worth par in gold. The truth is that


United States securities have ACQUIRED such oopuar
confidence, both at home and abroad, that e5en the


most alarming symptoms of political turmoil fail 70
shake their stability. Political squabbles in Con-
gress or out of it. have lost their great significance


and cease materially 10 affect the market; for ex-
perence has taught that bluster and vaporing are
characteristic of representative men, and that
fierce confict of opinion does not necessarily con-
tain the seeds of serious result


The most serious source of danger TO the public
credit lies IN the spirit of reputation, which is in
siduousy taking hold Of the popular miad and
which willy politicians of both parties take pains to
foster, In view of the approaching Presidential
Vass 1t is certain that the element of discomfort is
small as yet, and that the popular sentiment Of the
country is largely opposed to repudiation Thou
slnds of well-meaning, unre6ecting persons favor
the payment of the Five-Twenty interest in cur
rency who woulfscorn the thought of repudiation.
They do not see the seductive proposition in that
light But how long viii the industrial and mate
rial interests of the country sustain the agitation Of
equvoeal schemes for evading honest obligations
How long will Government Bonds maintain their
present standing in the worlds market under the
increasing pressure? The London Times says that
holders of American securities are already begin
ming TO be alarmed by the debates about consolida-
ton OF the debt or the payment of it in paper cur
rency. 1t is natural they should be- Our own peo
pie are scarcely less apprehensve. The market for
Governments showed more weakness under the an
nouneement of Senator Sherman's new Funding
Scheme than it did under the prospect of impeach-
ing the President. There ought perhaps. TO be no
serious apprehension that any such measure can be
liua6 hxrf hut
the bare suggestion creates in commercial circles,
and the perceptible growth of the elements of dis
content at the West make it apparent that the sta
bility of the public credit is more likely TO be sha-
ken by impolitic financial measures than by mere
political agitation.


There is less occasion now than aver before to


listen to the special pleas of would-be repudiators,
and less reason than for resortng to any such
expedients as Senator Sberman's. We need no
"compromise measures with those who are dis
posed TO be honest. A great deal has been done,
since the closed, 20 eztricate the country from
its financial embarrassment. The February state
ment of the Secretary of the Treasury shows that
the aggregate net debt of the United States at that
date So ,3l5,3T3, of which 1886 600 900 has
besu funded The march statement shows still
farther decrease in She debt Of 4s5, 75s. The
funded debt has been reduced 20 about &7l6 00D
the whole Of which, with the exception of the green
backs, fractional currency and gold certificates are
so arranged as TO be readily fundes ard it is BIZ


eved that in scarcely any possible contingency
any part of this unfunded debt cause embarrassment
TO the Treasury. This encouraging result has been
obtained by srduous labor and great ingenuity. In
the face of this remarkable display of recuperatve
force and in view Of the present political agitation,
the moment is sngularly chosen for institutng al
tacks on the public credit The effect of these
Western wildcat schemes can not be otherwise
than extremely mischisvous III their mere sugges-
tion and discussion and if enacted by law, must
suit in nutional bankruptcy -EcchdHge.