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THE RAlL IVA YS A,\?) TtfL STA TE. 33
millions more at the emne rate. Such nu assulnptioll is totally
unmrtrranted, and is opposed to the undoubted laws of supply
and demand. Because there is R certrlin demand for Conmls
at 92 to tho amouut of seven or eigllt huudred millions, it
follows ahnost inevitably that there mould not be a detnnnd
for double the amount at tLc sa~ne price. Therc are n certain
number of investors mho prefer or rcqnire perfect security.
To a great estent these investors are artificially created by
the laws which oblige trustees nud many public institutions
to invest their property in the funtlr. Tllcro is another
portion of the funds temporarily l~cld by bmkers, insurance
compnnics, or other conlpmics or persons l~ttvi~lg o
floatiug balance of money. Ot'ller largo portiolls are held
by private individuals having a traclitiounl :tttnchatcnt to tho
Three per Cents., 01' n.110.c~ property 1 ~ :~lw:~ys s bccu thus
invested, and has descended to thcln iu that sh>~pe. Now,
it cannot be supposed tlrnt if anothcr Nutiollnl Debt, cqual
to that already esisting, were cmttcd, it could Ilc :tLsorLod
by thc same classes of investors. The ordinary railway
shareholder is a more enterprising person tllan the Government
annuitant. He would no sooner receive his share of
the New Consols, cqual in capital vnluc to double the ~rmrket
value of his old shares, bj- pying tllo s:mo or r:rther more
annual income, than hc would begin to thiuk of gctting 5 per
cent. for his money instead of 3&, €IC would wck for l~olno
or foreign investmeuts of somewh:tt tho snlne degree of risk
and profit as his old slrares, and 11~11~s~ tlle funds I1nd 1~11'c:~cly
fallen considcraldy, he would assist their clownmard course
by selling ont. !Phe old funilholder~, unless they had foreseen
the course of events, and sold out in good time, would thus
suffer a serious depreciation of the market vnluo of their
property, whenever they had to sell it, mil it would at the
same time be quite out of t,lm cimBtion to admit any right
to compensation on their part, as this would establish s right
to compensation on my future occasion when tho Government
might need loans, a d thus lower the funds. State purchase
mould then, as it seems to me, resolve itself into nn cnoI'mous
job, by which shareholders would make their fortunes at the