Mr. G-oschen's conversion of Console is evidently going to be
one of the most successful financial operations of modern times. The Chancellor of the Exchequer stated on Thursday that up to Wednesday night £450,000,000 had been converted. It is known that another £20,000,000 was converted on Thursday, making a total of £470,000,000. A large amount held by trustees has still to come in, they having another month in which to make their decision, and it is believed that the total acceptances will exceed £530,000,000, leaving a sum of fifty millions at most to be paid off. That will be managed with- out difficulty, and already " Gosehens," or New Consols, have become the barometer of the market. It has hardly been suffi- ciently noticed that, besides benefiting the British taxpayer, Mr. Goschen has materially lightened the burdens of all British Colonies, of all borrowing cities in the Empire, of the Indian Government, and of the great railway corporations. It may be said, broadly, supposing peace assured, that if they borrow only to pay off old obligations, they will be able to raise money one-half per cent. cheaper than before. That is, the Empire will save altogether at least as much again as it saves upon Console. How far war would interfere with this prospect, is, of course, uncertain ; but there is an im- pression among financiers that the supply of good securities is now too small for the savings of the world, and that moderately high prices might survive war.
Previous page
