The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-02-10
when the Crash VIII Come...The
Public Debt.

One OF the most significant signs of the
times is the consciousness manifested by
some of the leaders of the Administration,
of rapidly approaching financial crisis.
The concealment of the amount of debt
is an alarming feature. Many, if not all,
admit that the crash is surely coming, but
when, who shall undertake to tell Even
the suggestion that it may come is charged
by some to be disloyal Mr.. MoCuLLoGH,
in his circular to the new banks, says
Immediately after the cessation of the
war;" though uttered some time ago, we
quote his words, in hope they will be pom
dered and needed:
Bear constantly in mind, he says, although
the loyal States appear specifically to be in q
prosperous condition, that such is not the fact.
That while the government is engaged. in the
suppression of rebellion of uneXampled
ferceness and magnitude, and is constantly
draining the country of its laboring and pro-
ducing population, and diverting It's mechan-
ical industry from works of permanent value
to the construction of implements of warfare
while cities are crowded, and the country is to
the same extent depleted and waste and ex-
travagance prevail as they never before pre-
vailed in the United States, the nation, what
ever may be the external indication, is not
prospering.
The war in which we are involved is stern
necessity, and must be prosecuted for the pre-
servation of the government no matter what
may be its cost; but the country will unquestiou-
ably be the poorer everyday it is continued. The
seeming prosperity of the loyal States is ow-
ing mainly to the large expenditures of the
government and the redundant currency which
these expenditures seem to render necessary
Keep these facts constantly in mind, and
manage the affairs of your respective banks
with perfect conscienciousness that the APP
parent prosperity of the country will be proved
to be unreal when the war is closed, if not. be-
fore; and be prepared, by careful management
OF the trust committed to you, to help save
the nation from financial collapse, instead of
lending your influence to make it more certain
and more severe. ...a
These words, timely when they were
uttered, are equally suggestive and oppor-
tuue and reasonable now. We trust they
will not be altogether lost upon the social
and business public.
Mr.. MEDILL, one of the editors of the
Chicago Tribune, writes from Washington
to that paper a series of letters which are
beginning to attract attention from the
startling character of their contents. The
following from recent letter shows the
desperate situation of the national finances
and actually foreshadows and manufac-
lures reasons to justify the repudiation OF
half the national debt. We copy para
graph .-.'. ,..
Inc public debt is piling up mountain high
and the country receives in consideration for
lts oonus less than half what it promises to
pay. 1t receives from money lenders. on the
average A cents of property and gives its
obligation for full dollar in coin. with interest
also IN coin. For each four hundred and forty
millions OF value received from money lenders
the government issues to them its bonds for
onetho.usand millions redcemable in specie and
drawing sixty millions of annual interest in
com, or ABOUT fourteen per cent on the nron-
erty actually loaned. If ever there comes q
time when national reputation shall he Sc
riously contemplated this will be the cause of
1t. Demagogues may harangue the tax payers
] In behalf OF repudiating at least half the ma
tlonal debt, on the ground that the Govern
ment never received but half value for it.
1t is generally conceded that the limit
for the issue of gold bearing bonds has
already been reached, even admitting that
the imports for the future will reach the
amount realized for two years past. The
Herald financial writer, speaking of the
farther issue of gold bearing bonds, con-
templated in the amendatory finance bill,
says:
When it is considered that the interest or
the gold bearing debt amounted at the end Of
September last to $50, GAG, 604 per annum. anG
that the principal has since been increased by
seventy millions or more by the ten-forty loaY
alone, the inadequacy of our customs revenue
10 pay the interest on the gold bearing deb
will be apparent in view of the fact that til,
customs duties at this port for the month O
December last amounted to only IS, 467. sos. 96
Since then the custom receipts have diminished
and only about S3, 600, 900 can be relied upor
for January, the same for February, and still
less sum for March and April. Not more thar
half million can meanwhile be relied upor