The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1845-02-21

gisEature TO Contract Debt binding
upOm the Pe0pIe--EXiStimg Debt @f
Louisiana.
When national debts have once been accumulated to
certain degree there Ibeeve single instance of
their having been fairly and completely paid The liberia
on of the public has always been brought about
by bankruptcy sometimes by avowed one, but always
by real one though frequently by pretended payment
ADAM SMITH.
The selfshness of men was never more
powerfully appealed to than when they
persuaded themselves that they could make
posterity pay their debts. Having once
become imbued with so fallacious notion,
it was difficult for them TO resist the fasci-
mating scheme of plunder; and we now
borrow money, spend it, use all the com
forts and enioyments.which it produces, for
our own benefit, and attempt to shuttle off
upon our children the obligation of paying.
For this laudable purpose, we issue Stale
stocks; credit is made 10 play the part Of
capital; and the mass of the people are
expected to pay what is really only due by
a minority.
Tho subject of paper credit has been
much treated of, though not exhausted;
and there are many points of view from
which the system may be examined; and
as it supposes that we can really draw upon
posterty for the money we at present re-
quire, it would be we'll for us to ask wheth-
or such draft is practicable? And even
if it were so whether those who succeeded
us upon the state of social existence will
probably submit to a payment of the debt;
for if the probability is against their will
lingness to pay, we are, 10 say the least of
it, committing gross fraud upon the lend
ers of the money
The Legislature of Louisiana issues what
is called State bond for one hundred dol
lars, payable in twenty, thirty, or more years,
after its date, and bearing five per cent. or
more, year, interest on its face. The bond
is sold to A, who gives its market value in
money for il, which may or may not be
equal to its nominal value: the money is
placed in the treasury and laid out for such
purposes as may be deemed proper. This
is the whole operation of paper credit and
stock, of funding, or whatever else it may
be called Ii may be carried TO any extent
to thousands, millions, or hundreds of
millions. But carry it as far as you will, it
is clear that not one particle of new capital
is called into existence; a certain amount is
transferred from the pocket of A, the lend
CT, 10 the treasury of the State; but the
total amount Of capital remains unchanged;
and though the bond is only to be paid after
the lapse of many years, yet if the term
were increased to thousand centuries,
there is drawn from the future not one
thing of value, not one barrel Of sugar not
one bale of cotton, not one drop of human
sweat, not one stroke Of human labor; and
as five or six dollars year is paid for the
use, Or interest of every hundred, the whole
amount is in twenty years Or less, paid off
in interest alone, pna then the whole of the
principal is due besides.
There has never yet been discovered a
mode by which individuals or States, who
have been large borrowers at interest, could
escape bankruptcy. The founder Of the
science of political economy proclaimed
this to the world; history proves, experience
now confirms it. In Louisiana, there has
been borrowed by the Legislature, accord
ing 10 a report made to that body, 23d Fe-
bruary, 1914, upwards of tpeRty-one millions
of dollars, for which the faith of the State
is pledged, and the people annually taxed,
directly and indirectly to pay the interest
on it. At that date theeState was already
delinquent in the payment of interest about
one hundred and fifty thousand dollars, and
rapidly careering towards insolvency. We
imagine that very few citizens have calmly
considered the immense burthen which this
debt has already, and will continue to throw
upon their shoulders.
1mcnty-one millions Of dollars, at fpe
per cent gear interest, causes 10 be ertrac-
ted from tie labor Of the State the yearIy
sum Of one million and fifty thousand dol,
lars, and this debt being all due abroad, the
payers hare NOS cuen the poor satisfaction
of seeing their opn felloaD citizens get their
money. A State debt, due at home, would
have the effect of enrichng one class at the
expense of the body of the people, but the
capital and interest would be used among
ourselves; debt due abroad, like ours, is
a steady drain upon industry without any
compensation whatever; for it must be re-
membered that whatever other benefits are
conferred upon us by our banks, that they
cannot aid us in paying the interest on our
debt Though WE ARE WISE ENOUGH to
treat bank notes as money, the foreign
bond-holders have not attained the same
degree of WISDOM, and insist on being paid
in commodities which they deem actually
valuable, and they must have specie, or
cotton, or omcthing else than our excellent
paper money.
Our remarks we know will be read by
many; we wish they could be, by all the
farmers of this State, as it is subject in
which they have the deepest interest. We