35 



THE POPULAR SCIENCE MONTHLY. 



ber 31, 1889, with the decade preceding, the rate of discount charged 

 on prime commercial paper by the banks of New York city de- 

 clined from an average of 6*23 to an average of 5*29 per cent. The 

 Bank of England's rate concurrently compared shows the rela- 

 tively small diminution of from 3*40 to 3'28 per cent.* 



As far as concerns the manufacturing and trading public who 

 obtain credit at banks in the United States, the decline in the rate 

 of interest has been slight. It has been very different with regard 

 to returns obtainable from investments of the highest class, such 

 as those offered on the bonds of the United States Government, 

 and of the great cities with credit unsmirched by traditions of 

 bankruptcy or repudiation. An investor in a Government bond 

 has certainly a form of property wherein the cares of ownership 

 are brought to the vanishing-point. His security is absolute ; his 

 bonds are registered, so that he need fear no thief ; he can sell all 

 or any part of them at pleasure ; and, should he desire to pledge 

 them for a loan, no operation is simpler and easier. Still, two 

 things remain to be desired the perpetuity of the obligation, and 

 a larger supply of the securities. In a term of years, all too brief, 

 the bonds will be paid, and the question of reinvestment will come 

 up, perhaps to be settled by heirs and assigns who may be tempted 

 by a shrinking rate of return to accept securities which are no se- 

 curities. Eailroad financiers have noted the demand for perma- 

 nency in investments, and have profited in supplying it. For ex- 

 ample, certain permanent debenture stock issued by the Canadian 



