, 1865-04-13

more available the credit. II few individual
club together In bank its notes will have
: degree Of credit limited 10 fs,
counties. II State becomes 1espon
) hib;e for them its credit will extcn,
over the adjoining States. The notes Of th
Bank Of England hare credit nearly as uni
ve1sal rs gold. But in all these cases the CT
tent OF the credit Is exactly measured by th
amount Of the debt, Of which 1t is the invers
side. the reverse side OF the same penny
IN the above instances If the few individual
collect merely $4,000 worth Of debt +,
The form Of mere promissory notes v,
say the bank is swindle. The basfs ofdebt
en- which it rests is too small to give 1t an,
basis Of credit. II, however, It bxs $10o. .O3
In good bonds and mortgages--bctter: |
$5oo.ooo Of State debt 'upon State payi1te
large taxes, better still. II it pledges the In
dustry OF an empire Of hundred millions o.
people, 1t goes around the would side by side
with gold Is 1t an absolute evil TINT the
owners Of the farms owe these mortgages
The State this debt, or that the empire OF q
hundred millions owes these taxes? If 50
the c1edlt to which tho debt giyes rise must
be an evil. II so, the commerce of the world,
| -. "4tuoAt ~ II Ill efA'
but tnese 1n1ngs ase not eTils. Suppose the
oep1 on mans 1arm Ia fQr purchase money
- ~ az e'.-.nat lib !ate owner trusts nm
w .no-'ulus Inc sa1ue OF the farm! Wonid
ne tsafe oeeu 1icner oy buying one-thno
the number OF acres and paying cash? The
olteaEor evidently thought he would not,
t,exs,o ~ noa'u ., ta'e oone so' 80 Inc oeot is
esms, nonen Tue accumaluon OF wealth
-. .s ~ ma5 DC equally oie>slas. 90 IL
=. !oeu!rea 'or improvements. II
ny esse u tne S1a.e' SUPPOSE tne s1ase oeos
- 14AAs tae os's4' VI o"unIuss "c'e ~
~"1s0 ~ eAua1"' .. otnet paote improve
t1e"ts' "@s4 ~ Ill c'n .nat lne ueot was H.
cu'seo anu tne Canals onnt Inc Legislators
"so0nea lnae IL WEE noL Ii Tue incur
ment oftne debt was not an evil its exis-
tence could not hare been, ut all events, not
until 1t became more profitable to pay it off
than The interest on 1t. The same mar be
said Of a national debt In all cases where the
proceeds OF the deb-the loan for which 1t is
incurred mas not squandered. But there are
pons'cal economists who contend that all
money expended IN war Is sguandercd. This,
no"e'er, remains To be proven. 4 war
"n'cn aoonenes great industrial evil like
sia'e1J' WHICH mas proved clog On
i"ouS'4y ano drag on progress. ulti~-
anates IN pon1lcat advantages, which
IN very ae" years lead to financial and ma-
ue1ial advantages which more that outweigh
tnelr cost. Is not Europe richer for the wars
Whcn aoohshed 1eudal se1fdome Is not
England Weather for the intestine strife
wmch abolished Fllleinage? So the United
slates may be "ealth'es for aewar which
anolashes slavery. Again, war which con-
Vefts rope Of saad, such as the Union was
ocneVed to be hy half Its citizens, into q
united government such us it unques-
tionaoly VIII be hereafter, nay reasonably be
expected to lead to advantages to business
and to capital which may In q few yca1a
more than compensate for the cost Of the
var. Governments too weak for their re-
possibilities render capital insecure. bust
meas unstable and keep society scattered and |
poor. Governments equal in strength to
their requirements protect industry, trade |
and labor, cheaper their capital. and Tins in
crease production. It is at least premature
yet to decide that money expended il con-
vertirg the Union that WAS into the more
perfect Onion we are hereafter to have. and
the FREEDOM that was, into the fn1,er
freedom We shall hexceforth cnioy. x.s
in any sense squandered. lit VA. vel, In.
vested, then It's iucurment was not an ~,
and Its existence il m no,. an
evil than il any other debt fncurred FIR
means Nhich were judiciously used. Already
the war has given rs currency based IN ~
national debt, which is vast ,mnrovemont
on any currency we have vet hid md vhIc,
properly managed after the war viii c,-cn-
late throuehout tbe world a. f,aa1, =. s.ts.
Of the Bank Of En.1.nd. ". have hnth.
gun to feel the effects of this cnrr.ncr hut
will feel them far more in the evnansfnn ~
trade and growth of manufacturers after +ba
State currency is abolished.
Finally, the effect of the expansion of ere.
dit is the diminution of rates of interest. In
countries not using gold there IL substantial
y no }oaning system. In countries using
eo1d the rate Of interest remains at from nE
teen to fifty per cent. Even In California It +
stands at twenty-five to thirty per ceut-a
ate too high for manufactures, or for the
spad growth Of any form Of industry Here,
he rates Of interest are from sew
10 ten Per cent, while in Eng
and they range, duripS peace, at
nree or four, though now, affected by our
ar, they have riaen to seven After tha re-
Urn Of peace, it seems probable taat the ex-
analon OF sound credit caused By our nation
debt will reduce the rate Of interest below :
~ ws have get experienced, in which case
be effect 10 stimulate manufactures, In fact to