Jasper Republican, Volume 2, Number 3, Rensselaer, Jasper County, 1 October 1875 — Evils or an Irredeemable Paper Currency. [ARTICLE]

Evils or an Irredeemable Paper Currency.

The New York Tribune of Saturday contains another of the admirable letters of ex-Becretary McCulloch on the currency question. Mr. McCulloch saya that a few day* ago he asked a gentleman of large experience and careful observation: “When shall we be able to borrow at 4 per cent for the purpose of retiring our 6 percent. Government bonds?” The reply was: “When you get back to specie payments.” On many accounts the credit of the United States should be better than that of any country in the world. The country is a great and growing one, possessed of illimitable resources and a marvelous recuperative power. Since the war closed the national debt has been » reduced, showing the determinathe people to gradually liquidate their indebtedness. In the same time the British national debt has remained almost stationary. It is nearly twice as large as that of the United States, and more than twice as large per capita. There is no thought in Great Britain of ever extinguishing it It bears interest at the rate of but 3 per cent, per annum. Yet the English 3 per cent consols are worth in the London market 94Jf, while America’s 6 per cent, bonds are worth but 106%. If the latter were thought as much of relatively as the former they would sell at 189, or at a premium of 82% more than they now do. To put the case differently, British capitalists will pay £945 for consols on which the annual interest is but £3O per annum, while they will pay but £958 for American bonds which will bring them in £54 per year. If the credit of the United States stood as high as that ofEngland, instead of paying $100,000,000 per annum in the way of interest on the national debt, we should pay but a little over $50,000,000. Bonds running for a short term of years would not command as high a price as others equally safe which would be a permanent investment. Therefore while the United States is rapidly paying off its deljt it could scarcely be expected under any oitcumstances her bonds, bearing the same rate of interest, would bring, as high a price as the English consols; but there certainly is no good reason—except the •unsound financial legislation in this country—why the United States should not obtain money at 4 per cent, with as much facility as Great Britain can at 3. Nor can there be any question that if the currency of this country was down to “ hard pan” —if tnere was a solid and substantial basis upon which to'work —that the effect would be manifest in the appreciation of the’ country’s credit, and in such a manner as to do great good in the reduction in the annual interest charge which would speedily result. In his letter Secretary McCulloch refers to the present depression in trade and manufacture in Great Britain. But, he says, “ while the existing depression is felt, and severely, by the manufacturers and dealers in Great Britain, the general state of the country is healthy. Land was never so high or so salable as now; the traffic upon English railroads was never so large, and, notwithstanding a reduction of taxes, the revenues of the Government are steadily increasing; municipal indebtedness is comparatively unknown; there is no general complaint of taxation, and the spirit of the people is strong and buoyant. There have been heavy failures (none or very few, however, as far as I can learn, of firms that have not engaged in operations outside of their regular -business), and fearful losses have been sustained by reason of injudicious investments ; but the nation is, as a whole, in a satisfactory financial state.” Mr. McCulloch holds that the fact that the reverse of this is true in the United States is largely due to our redundant and vicious cur- ’ rency.— Detroit Free Frees.