The Yazoo Democrat. (Yazoo City, Miss.) 1844-18??, 1845-01-21

ture 10 Contract debts binding upon
the PeOpie-Existing Debt Of LOuisA
lana. ~.se
When national debts have once been accumulated, ia
certain degree there Is scarce, believe single In
stance Of their having been fairly and completely paid
TheliberatiOn ofthe public revenue has always been
brought about by bankruptcy; somstimes by an avow
ed 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 faIlaciods a notion,
il was difficult for them to resist the (asci-
mating scheme Of plumber; and we now
borrow money, spend it, use all the comforts
Ond enjoyments which it produces, for our
own benefit, and attempt to shuttle of upon
our children the obligation of paying, For
this laudable purpose, we issue State
stocks; credit is made TO play the part Of
capital; and the mass of the people are
expected to pay what is really only due by
a minority.
The subject Of paper credit has been
much treated Of, though no! exhaustedi
and there are many points of wow rom
which the system mny be examined; and
os it sdpposes that we can really draw upon
pos,erity for the money we at present re-
quire, it would be we'll for US TO ask wheth
er such a draft Is practicable? And even
if il we're so, whether those aVho succeed
as upon the stage Of social existence will
r1rob, hI1, c,,ho4it IN m navmnnt If the dahf.
for if the probability is against their viii,
lingness to pay, we are, to say the least of
it, committing grosa 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
wears, after its date, and bearing five per
cent, or more, year, interest on It's face.
the bond is sold to A, who gives its market
value in money for it, which may or may
not be equal to its nominal value: the mo.
ney 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 1t may be carried to any
extent TO thousands, millions, Or hundreds
Of millions But carry it as Tar as you
will, it is clear that not one particle OF new
capital is called into existence; certain
amount is transferred from the pocket OF A,
the lender, to the treasury Of the State; but
the total amount Of capital remains unchan.
ged; and though the bond is only to be paid
after the lapse of many years, yet If the
term were increased TO thous md centu-
ries, 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 tor the
use, or interest of every hundred, the whole
amount is in twenty years or less, paid of
in interest alone, and 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 il. In Louisiana, there has
been borrowed by the Legislature, accord
ing to a report made TO that body, 23d F'eh-
ruary, 1914 upwards Of tDenty one millions
of dolIurs, 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 the State was already
delinquentin the payment of interest about
one hundred and fifty thousand dollars, aud
rapidly eareeriRg TOW ards insolvency. we
imagine that very few cnizens have calmly
considered the immense hurlhen which thus
debt has already. and will continue TO throw
upon their shoulders.
1ICeaty- one millions of dollars, at fUe
per cent a year interest, causes to be ertrGc.
ted from The labor of the State The yearly
sum one million and fifty thousand dol
lGrs, and this debt being all due abroad, the
payers haze not eUen he poor satisfaction
of seeing their OlOa fellolD citizens get their
money. A Stale debt, due at home, would
have the effect Of enriehing one class at the
expense Of the body Of the people, but the
capital and interest would be used among
ourselves; a debt due abroad, like ours, 4
q 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 10 paying The interest on our
debt. Though We ARE wIsR ENOUGH to
treat bank notes as money, the foreign
bond-bOlders have no, attained lhe same
degree Of WISDOM, and insist on being paid
10 commodities which they deem actually
valuable and thev must have lanecie or