The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-09-23
SAINT PAUL. FRIDAY, SEPTEMBER 23 1864

rimony OF the government - was so large
! that it could endure the cost of this civil
war for & score of years to come, and, in
general, defended the financial policy of
Mr.. CHASE We quote from the reply as
| follows:
When this people took possession of this
continent they acquired vast tract of
land, which, with the air above it and the
water through it, was fertile instrument
Of future wealth. Combined with human
labor, an annual valuable product was Sc
cured. Of this a very large proportion
was necessarily consumed by the pro-
ducers. There remained, however, q sur
| plus each year. This accumulated from
year to year, and supplied manufactures !;
portion of the profits from which was,
also, annually saved. Surplus food was
sold abroad, immigrants arrived with capt.
tai, and the savings began to manifest
themselves in accumulated stocks of goods,
furniture, bank stocks, company stocks,
railroads, &c. :; and, finally, in 1860, the
total amount of these savings in the North
ern States amounted, per census, to 3d.
| 632, ZOO, 497. This sum, the aggregate
savings of more than 200 years of the an
nual earnings, constitutes the Irrational
patrimony." 1t is the fund by which
labor is maintained, industry carried on,
| and production increased.
It will be here noticed that we have not
taken into account the value of the real
estate which is sometimes considered a
national resource. 1t is, however, an
error to consider it in that light. The
value of real estate consists only in what
! it produces. Its actual value is embraced
| in the annual production which we have
already considered. The value of the land
is proportional to its production, and any
tax whatever, laid upon it, must be paid
out of that production. AS regards indi-
viduals, rise in the value of land en-
hances the fortune of the holder. The
national wealth, however, is not changed
| by it. The wild lands that were originally
| the property of the Federal Government,
nave been gradually sold at one dollar
per acre, until great States have grown
! up on them, and the valuation of Illinois
land is ten dollars per acre for purposes
| of taxation. The value of the land, as
| property, represents its productive power,
and is capitalization of the annual pro-
| duct. If that product fails, the value of
the land fails also. II, by taxation, one
half the product is taken, the land value
falls one half. 1t is not, therefore, sign
| of national wealth aside from its annual
product.
The nation that held this patrimony
owed no debt, and there was drawn from
the annual production very little for gov
eminent taxes. Of late years the fund
has increased with greater rapidity, and
! if We estimate that even one-half has been
accumulated in the last thirty years, the
amount saved will be $43, 878, 49l per an
mum. Now it is evident that if the federal
taxes, during that thirty years, had been
$40, 100000 more than they were, there
would have been no accumulation of prop
erty, it would all have been dissipated, or
the people would have been compelled to
economist and spend less. This was not
the case, however, and that splendid 'tpa-
trimony was put into Mr.. Chase's hands
three years since, and he has contracted a
debt nearly equal to the whole of it. If
it we're possible to sell out the whole of the
| personal property of the North, it would
not pay the debt. But that is impossible.
The only way the debt can be paid at all,
is to meet it from the annual earnings.
These we have stated at forty-three mil
lions per annum for the last thirty years.
If We allow that they were as high as six
millions, for the ten years up to 1860, we
may, on that basis, form an idea of what
will be our future payments, and what our
means tC meet them with. And here the
voice from "the beach " calls in question
our statements of the public debt, as fol-
lows:
| On the list day of August, the debt was Just
! seventeen hundred milliOn- and fraction, by
MIR. FeSsenden's statement, including every
| species OF Indebtedness and vet the M0yuzine
boldly adds three hundred millions to the state.
ment, and SAYS the Government is "almost :"
bankrupt,
The amount OF debt given in Mr.. Fes-
sendens sworn statement, Aug. l, 1864,
was:
Principal paper outstanding. >. 81 1927 1902, 10
Interest on paper outstanding 76,41S. 035
The claims unadjusted, accounts, ar
rears, &C., add several hundred millions to
the amount of outstanding paper. Hads
therefore, the war closed the day that Mr..
Chase resigned, no one can doubt hut that
the debt would have reached, if not ex-
oeeded, the amount we mentioned The
whole of this debt must, sooner or later,
be funded, and put in train of payment
If we allow that the whole may reach only
$500, 900, 900 Jan. l, 1866, and that it
can be funded at six per cent, the annual
charge will be $3.50, 100000. Mr.. Chase.
page IL of his annual report, estimates
the future peace expenditures at $37, 6O4,-
400 for the civil service, and $50, 845, 1884
for the army and navy. The pension list
will of necessity be at least $50, OOO, 900.
AL those items will make sum of $780,
600, 900 per annum, to which is to be add
ed one per cent. for sinking fund of the