Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1865-11-24

Ill1pAY EvESiSo.. ........ nov. -
oadlj0p A.int S&y the power III. III
asnces Of. = public debt 10 stimulate the
Trade apd ln9natry Of country. many
Asive lcontended that . public
nsH ~ s-patlis blessing. Such Il S'csfi
be. did il i.pese %. burtheo on the produc
live epsrgjss to support its interest. and did
qot theseby create an unprodnc''ve' 'd'e
caa6s, 10 Re surposted 1t the expense sFehe
labor Of the country; or, even with these
objectaous, the blessing might be less equiv
ocal ifsll evidences Of the debt could be re
tainca 4 home, where, though it work in
eoualitcs among some classes Of citizens, it
would not take abroad any Of the produc
lions Of is own industry to pay The Inter
est. But where the bonds ola country 60
abroad for negotiation, they carry with them
. lien upon the productive resources Of The
eountry-create On odious foreign tribute
ensiave labor to foreign capitalists, and cx-
haust the country Of part Of its nett earn
iugs. Suppose III our own bonds transfer
red TO Europe, which our excessive impor
tations that are being stimulated by this
mountain OF fictitious wealth 80 suddenly
created. are rapidly effecting. it would re.
quirc one third Of the nett earnings Of the
whole labor Of the country. Is estimated be
fore ths war 70 pay the interest "a The NJ
tiohsl debt to foreign bondholdcrs; that is
70 ssy every active, producing man, would
b obliged 10 contribute 33 per cent. Of his
earning, after supporting himself and fami-
y, 10 The support Of the foreign capitalists,
and the country would lose that amount Of
its increasing wealth. But the public debt
having becn transferred to foreigners. snd
its proceeds taken in gew eaws and lnxnries
which are consumed in their use, I Y those
who have become suddenly rich BY the IRE
ation Of debt. il ceases to stimulate home
industrv. and lics like an incubus. paralvz
ing the energies Of the country, producing
exhaustion and announcement in al
branches Of its labor. T. this wav a bur
thensome national debt is the most eiFectual
and suress method 70 impoverish and cnsave
. country. II il incumbent npon rehrcting
and sagacous men, who hav" the public ear
and the power to control public opinion To
contemplate the course OF present events.
ard war; tho people If the inevitable re-
suits Of their career. 1ftha present inor,li
nate cxtravngancc continues, our excessive
imports will soon transfer all our public
bonds TO Europe, and their stimulating cf
feet upon our home industry will he lost
exhaustion and langnor will succeed the
present in'oxcation-low prices. idlcness
and poverty. md national prostration, will
come in the final train.
When discussing the subject Of our
financial condition, most writer's seem 10
think that 70 reduce tho present sum Of
Treasury ard Bank notes in circulation, nv
funding them into United States Bonds,
would bring prices and trade down to n
specie basis. and check inordinatc spccula-
ton But the conversion would he only
change Of form; the 3 20 bond is inst rs
available in every commercial market, ~ the
treasury and bank note Our fnanciers
have ALWAYS committed the blunder Of con
sidering the commercial GU rcncy Of the
country to consist solely Of the bank n,tes
and specie in circulation, when. "a in good
old times, threc>fonrths Of the actual work
ing commercial currency WIS private com
mercial paper, checks, bills of exchange
etc, which was never taken in acount Thi.
Nkable oversight tf tho most important
element in financial calculation produced
an amusing scene among the bank grann,es
Of New York in 1857; they sat daily IL
convention, declaring that specie payment.
Should not be suspended, and that the,
would relieve the pressure upon the none,
market by increasing their issues Of bank
notes So in solemn conclave each morn
ing they voted to give the suffering mcr-
chants fifty or one hundred thousand NOR,
bank notes; while failures were taking
place each day that annihilatet. five to sew
en- million Of commercial credits. AZ efiicien
an element in commercial exchanges a.
bank notes. The poor blind bank manager,
could not see why their little rill Of 81 90
600 daily did no. ill the vacnm Of FIVE mil
lion ofannihla.cd commercial credits; sus
pension Of specie payments came in spit,
Of their most desperate resolves, and over
whclmed them with establishment. S,
those who now conHnc their views Of cur
rency to the treasury and bank notes il
circulation, as the chief regulators ofpricc
and values, would find all their remedies
for present cvilsas ahortivc in practice a
were the sapient resolutions Of the New
York bankers to avert The disasters OF 81
Commerce makes currency Of everything
convertible to its uses aud in estimatin,
the amount Of currency in use we mus
take into the estimate every species Of pa
per used in trade, and that can readily b,
converted into money in ordinary markets
Our present national bonds and currency i.
about four thousand millions, and if the,
were all retained in the country they woul,
b. atailablc for the purposes OF commerce
and that amount would stimulate an extra
ordinary degree Of activity but as the,
60 from us We shall loose their influence
and shall be likely to sink to low prices ant
commercial lethargy without the interven
tom Of any public regulations. Then i
will he that we shall feel the ;ntolerable bur
thens Of our debt. Noproccss will brin,
down prices-chcck active commercial ant
industrial operations, or restore gold la
sis, SO much desired by some, unless W
keep our national bonds at home. 1t woul,
have been fortunate provision in the FRS
issue to have stipulated that interest Shout,
cease On sesery ooud sold for foreign nc
count. a curse was entaled upon tn