Cedar Falls gazette. [volume] (Cedar Falls, Iowa) 1860-1895, 1861-10-11
NATIONAL Finances,---our Ability to Pay.
From Hallett's American and European Circular.


The great theme, at. TIC present time; Of
foreigners, particularly Englishmcn, is the
vast debt the United States are contracting to
put down the rebellion. They confidently
predicted the money could not be raised on
loans. Dtiirm from this position, they are
equally lo;il in assertions that our people will
not be taxed to pay the interest on the debt,
and for the ordinary purposes of Govern
ment; that they have not that docilty which
belongs to these of the old worlds who patti
emily bear whatever load may be imposed
upon, them. We have been so long without
national debt, that it would not have been
strlngeif the systematic cutlery Of the British
Press, the great object of which was to de-
stroy our credit in European markets, should
have created some anxiety in reference to
this matter among ourselves Such, howcv-
er, has not been the case. No one doubts
that the interest on the debt that may be
created say $500,0o0,O00 can be easily met
from ordinary sources of revenue, with such
rs we can add, without imposing burdens
that will be complained of or rarely felt.
. a debt of $500, 900, 900 is not one fifth so
large in proportion to their means, and not
greater in proportion to their population than
orr people have twice contracted and twice
pau. Y VI TIC CONSTITUTION,
the debt assumed was 100000 The
population Of the country was $500, 00O.-
This sum exceeded $40 per head At that
time the wealth of the country, and its means
for the payment Of taxes, did not equal a
tenth of those at present possessed by our
people. 1t had been exhausted by long wars
which had desolatcd nearly every portion of
it. 1t was without commerce and without
&C, M, T., Of +;p
hardly any demand in foreign countries for
products of its agriculture. 1t was previous
to the use of steam or of labor saving ma
chimes, or of any considerable division of
labor on which all wealth is based. The
poppttlation were widely scattered, without in
tcrnal commerce, and were almost solely en-
crossed in providing for their daily wants.
The expenses and revenues of Government
were on u corresponding scale. The total
expenses of the United States for the first
fourteen years after the formation Of the
Government, exclusive of payment of interest
on the National Debt, were $53, 373, 47e, and
the yearly average $3,S12 1891, which is about
one-third of the annual expenditures Of the
city of New York. This small sum taxed
the industries of the country much more Sc
vcrcly than ten times the amount, in rate to
the population, would at the present day
Yet the debt was gradually reduced till it was
only $45,O00.000 at the commencement of
the war of 1872, when it was sweled to
1927, 100000 in 1916. The population of
the country at that time being about 5000
O00 the rate per head was $15. Notwth-
standing the Impoverished condition of the
country, the payment Of the debt was imme-
diatcly commenced and fully consummatcd
in 1885
4 national debt not exceeding, per head,
those twice contracted and paid by our pco.
pie, is no cause for alarm. But since the
creation and payment Of these, the wealth Of
our people has increased, probably in tenfold
greater ratio ;han that of their population
The valuation Of all the property in the sew
eral States, for taxation, in 1850, equal So
$50, 1872, al, in 1860, Sill 1876, 306, 942-aA
increase Of nearly 103 per cent, the increase
of population in the same time was 35 per
cent. The increase of the former has been
in threcfold ratio TO the latter, from the effect
Of the new agencies that man is constantly
summoning to his aid. The locomotive en-
gines in the United States are now perform
ing the labors OF 100000 horses. The
machinery brought into use since 1916 in
this country is equal to the labor of 800 ,000,-
600 men. In effect, the productive capacity
and wealth Of the country has increased as
# the population of the country had gone up
to hundreds of millions instead of 3 800 900.
The statement strNingly illustrates our
Increased means, and is fully confirmed by
the extent of the Maternal commerce of the
country, which is almost entirely the result
of the application ofsteam to locomotion, and
which has been almost wholly created since
1916. Pho tonnage carried by the railroads
Of the State Of Massachusetts Tor 1859, was
3,T16,126 tons, worth, at the very low valu-
alton of 500 per ton, 1871 ,6T2, 600 The
tonnage OF the Erie Canal and the Erie and
New York Central Railroads for 1860, were
6,T67,736 tons, worth 1T least SG7G, 773, 800
making an internal commerce, for the two
States alone, exceeding 81 900 100000 in
value, nearly the whole of which has been
created since the opening of the Erie Canal
in 1921. Other portions Of the country
Show still greater relative progress, rs their
public works have not only been constructed,
but their population supplied within the last
forty years. There are now in the United
States 81 SEQ miles of railr2ad that have
cost 81 200 900, 900. The loyal States have
$4,000 miles of railroad, costing $3.50, 000,-
900, and 5000 miles of canal, costing $780,
pDo,Opo. IL INC aiibtil value vi tuc laue
of the public works of New York and Massa-
chusctts, with mileage of j, $50 miles, is
equal TO 81 ,00o;000, 900, that of the remain
der Of the loyal States, with a railroad and
camel mileage Of 24,5O0 miles must surely
amount to sum twice as large, or So ,OOO,- /
900, 900
This subject can here be only generally
referred to, but enough has been shown to
dispel all fears of our ability to sustain bur-
dens no larger, in ratio to cur population,
than those twice assumed and twice dis
charged. But the ability of a country to bear
a heavy taxation does not SO much depend
upon its permanent or accumulated wealth
rs upon the productivencss of its industries.
Great Britain the country to which we are
accustomed to refer in discussing this and
kindred subjects, derives only small por-
ton of its revenue from taxes on property.
OF the taxes of all kinds collected for 1860,
to go, 500, 977, land and assessed
taxes produced only e3,24l, 10Y, leaving
f67, 56S $50 raised upon consumption, chief
ly of Injuries. Ofthis sum the customs pro.
duced e23,896,395, excise e29,O7G,5o6,I
stamps 1926, 25s, post office SO, 3TO, 900,