ber 31, 1889, with the decade preceding, the rate of discount charged on prime commercial paper by the banks of New York city declined from an average of 6·23 to an average of 5·29 per cent. The Bank of England's rate concurrently compared shows the relatively 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 securities. Railroad financiers have noted the demand for permanency in investments, and have profited in supplying it. For example, certain permanent debenture stock issued by the Canadian
| * | Rate realized on U. S. Government bonds at average January prices. |
Rate of discount charged by banks in New York city |for prime commercial paper; average for year. |
Bank of England's rate of discount; average for year. |
| Per cent. | Per cent. | Per cent. | |
| 1870 | 4·86 | 8·08 | 3·44 |
| 1871 | 5·28 | 6·13 | 2·88 |
| 1872 | 5·06 | 6·38 | 4·09 |
| 1873 | 4·50 | 9·92 | 4·89 |
| 1874 | 4·58 | 5·98 | 3·69 |
| 1875 | 3·94 | 5·51 | 3·23 |
| 1876 | 2·28 | 5·12 | 2·61 |
| 1877 | 2·40 | 5·21 | 2·91 |
| 1878 | 3·69 | 4·81 | 3·78 |
| 1879 | 4·00 | 5·19 | 2·50 |
| 1880 | 3·75 | 5·33 | 2·76 |
| 1881 | 3·25 | 5·19 | 3·48 |
| 1882 | 3·00 | 5·67 | 4·15 |
| 1883 | 2·87 | 5·56 | 3·57 |
| 1884 | 2·60 | 5·40 | 2·96 |
| 1885 | 2·63 | 4·18 | 2·92 |
| 1886 | 2·50 | 4·95 | 3·05 |
| 1887 | 2·23 | 5·79 | 3·34 |
| 1888 | 2·28 | 4·87 | 3·30 |
| 1889 | 2·07 | • • • | • • • |
| 1889, January 1 to October 31 | • • • | 5·91 | 3·25 |
