Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1864-01-30
OUR WAR DEBT.
Low Can il Ever Be PaIa.


7hen the production Of cotton shall be
auch reduced in cost by the change from
lave to free labor. 8
Take the other productions Of the South ,
which Europe must have, and which Will
,tand a heavy tax without being felt by
he peopls, both for export and home con-
sumption, and add thereto the amount Of
tax which can be placed upon our mining
operations, and there is fund at once
provided amply sufficient to PROVIDE 1or
Inc principal Of debt Of say four thou
sand millions Of dollars, and that long be-
fore our creditors will be willingto re-
eeive the money-leaving the foreign reVe-
nue.. with a tax on few manufacturing
establishments, to pay the interest and as
sist in reducing the principle. suppose
We come out Of the war with debt OF |
four thousand millions Of dollars 1.-THE debt |
is now probably, less than two thousand
millions), deduct from this say five hun
dred millions Of dollars which the people
will gladly loan te the Government without
anv interest for the advantage Of having
tbe circulation, then we have three thou
saud five hundred millions on which to
psy interest, and this sum will then, with
ont doubt. readily command premium
on q rate Of five per cent, which is per
Anhum sl75,oOOOOO
To pay this yearly interest
WeshaIl have ourforelgn
duties, say over..-.-....-- SlO0iO5o,OoO
And our manufactures OF
spirits and other luxu-
ries will yield, say. 75,OOOOOo ooo mn
And all this can be done with the present
population, without anybody being in the
issst degree distressed by taxation. In
addition will be the ordinary expenses OF
he Government, for which the present
| consumption Of tobacco will yield an ade-
nua,e. Our population viii not stop at
| lnirty millions, but will soon be forty mil
ions. which will increase the foreign
juties in greater proportion, 1hile the
principal Of our debt will be rapidly les
sening.
lions, as we now owe, the war should IN
volve us in debt of eight thousand mil
lions, q tax OF five per cent. on all sales IN
the United States per annum, excluding
| the sales Of real estate and stocks, accord
ing TO the estimate Of the Boston Board OF
Trade, would probably pay the whole prln-
cipal Of the debt in twenty years, perhaps
in { much less time. This tax no one
would feel or know in this country-ss g
calico selling at ten cents would pay n
half a cent o yard, and coat pattern a
FIVE dollars q yard, would pay indirectly
INIT trtv cents. These differences wousC
amount 70 less than the ordinary h1ctua
tons from week TO week occasioned Dy
natural supply and demand, and the Peo
Die, unless they were told, need neve
know comparatively that any tax exists.
: Three years ago or government appre
bended more difficulty in borrowing
twelve millions of dollars at twelve pc
cent. per annum than they now do in Dor
rowing twelve hundred millions at six pc
e cent. No wonder, when we did not knoV
e ourselves, that Europe did not know US.
Z Il will soon be understood in Europ
that our loans, even at three per cent, sr
e the best loans in the world. One inpor
] without inconvenience, and our resource
are 80 ample that no disposition can eve
exist TO repudiate. Within ten years pas
we have read the advertisements Of tn
: Secretary Of the Treasury Offering, in vsiI
TO buy from our European creditors ou
six per cent. loan at sixteen per cent. pre-
! MUM. We predict that, within ten year
10 come. we shall read another advertise
ment offering the same or larger premi
e um for our five per cent. loans, and thi
: will be the case, be our debt two thoussn
4 or four thousand millions.
Heretofore we have been educated to be
lieye that the Judgment Of the Europesl
t bankers was infallible. That delusion, il
r the American mind, will soon be exploded
The English capitalists have embarke
hundreds of millions sterling in enter
prises, few Of which, in the mind of th
most credulous among them, ever promise
g one-tenth part Of the certain large profit
, and sure returns as is now presented 70
i, their consideration in the United States
In confirmation Of this let us examin
what can be done.
= Ist. Government skies can be bought q
8 par; $1,000 invested in New York on Eng
iish account would only require draft O.
London for 1850. Exchange being, So
c l72. would in fsct make our six per cent
9 cost in England only 63 cents. on III
( dollar. As soon as peace comes thes
q stocks will command 26 per cent. pre-
MUM. In 1914 they sold at Sc cents o.
] dollar, and in 1915, within four month
| pCaCof hA4Gl bDA4 o. 4-Os ~ 10 ~ a
|. | our debt was then smsll in comparison
2 with that Of the present day and it
| also true that the oroakers Of 1914 hs
much more influence in crying down tn
> credit Of government than the croakers c
!, 1854 have had and that ono hundred mi
lions was, in 1914, more severe upon GU
credit than eight thousand millions woul
: be in the present day. Our POstofioe d.
e pertinent, Custom House business, canal
s railroads, mines and general development
Of the country prove all this.
I'd. Real Estate-0ne hundred million
e Of dollars could to-day be invested by Er
0 ropesn capitalists in the loyal States, i
uno uslifed good productive property
New York, Philadelphia, Boston, CinciT
:, natl, Chissgo, and other large cities, tbs
will pay at least six per cent. per snnuu
free from all taxes and assessments, pri
badly for the next fifty years; and this 8
9 sure as that English oonsols will pay tire
: per cent per snnum. Six per cent
= what our own capitalists are CONSTANT
N realizing. Now, the European capitalist
can buy this property 81 per cent. cheapt
= than thC American can. If the Europea
,, buys, say store, at $4,000, he sells h
+ draft on London at 172 exchange, the stol
, in the final result will probably stand hi
st only S31, 720; and on this he will hay
. instead Of only six per cent ten per cen
It on his investment. When peace TAXI
Il place he can, should he wish to do so, the
resell, and make the above profit on Il
fall Of exchange. The investing in re-
estate ny foreigners is at present sttende
l. with some little embarrassment, which
y and can be easily obvisted by those havir
i agents in this country. Real estate is n
inflated in value, as the average price no
ot is not probably as high as when our banl
p paid specie.
t In 1887 our banks, bankers and ne