The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1866-01-17

JAZZ 49,
the expedition against the Mormons.
Then, citizens, to recapitulate; Within
q period Of five years, the United States
will have expended nearly as much money
as it cost Great Britain during an inees-
SAINT war oil twenty years, in which all
Europe was involved.
During the late &ebellion, the United
States expended two thousand four hun
dred aud sixty-eight million dollars more
money,:.than it cost Great Britain to pros
ecute her seven years war against the
Colonies.
President Lincoln's Administration ex-
pended sixteen hundred millions moro
money, than all the other Presidents ex-
pended during their entire Administers
tions of seventy two yearsl
THE STATE DEBTS.
Nor is the National debt the only mort
gage which rests upon the land, upon the
enterprise and industry of the people.
The debts of the individual States
amount to at least two hundred million
dollars, exclusive of the repudiated wal
debt of the Southern States.
MEASURE or THE DEBT.
But, citizens, the debt is so enormous
that the mind forms no conception Of it's
magnitude by simply hearing the figures
named. Let us then apply to it some
comprehensive measure.
According to the census report for
for 1860 (see Chiids' National Almanac
for 1864, page 500 the value of the real
and personal property of the fourteen
thousand, one hundred and eighty-three
millions, two hundred and fifteen thou
sand, six hundred and twenty eight dol
lars. Then, without making any deduc-
tons for the ravages and destruction of
property caused by the war, except the
obliteration of slave property, which was
valued at four thousand million dollars,
and after taking that amount from the
aggregate value of the real and personal
property, it reduces that value to ten
billion dollars. Then, taking the liqui-
dated debt at the admitted figure ofthree
thousand millions, we see that since 1861
we have expended the value of nearly
one third Of all the property, real and
personal, in the entire country.
ao THE MISTAKE
But it may be asked whether our af-
fairs could have been more economically
conducted? A tax should have been levied
commensurate with the emergency, and
gold could and should have been bor-
rowed in Europe at 6 or s per cent
Could this have been done? Yes; nearly
all the gold the Confederate used was
borrowed in Europe, and not only that,
no inconsiderable portion Of our debt
is now owned there. But instead of
pursuing a course dictated by sound
economy, the Administration adopted the
plan Of the money lenders of Boston
and New York, and the country was
flooded with a paper currency which
deprecated fifty cents on the dollar;
thus causing a loss of one half of the
whole amount to the government and
the people. And while greenbacks were
sold at that price, bonds were issued
to redeem them calling fol-, 6 per cent.
In gold, payable s~emi-annually. The
money dealer with one hundred thous.
and dollars in gold, bought double the
amount Of greenbacks, and with them
purchased two hundred thousand dollars
worth of bonds calling for payment in
gold, together with a gold interest; and
at once cleared one hundred thousand
dollars. And for every two hundred
thousand dollars of bonds thus issued,
the Government, and consequently the
people, lost, and the bond-buyer made
one hundred thousand dollars; and on the
amount of his original investment-that
is, on one hundred thousand dollars, he
secured II per cent. interest in gold,
equivalent to twenty per cent. in paper
money.
And as the greenbacks fell in value,
all commodities rose in a corresponding
proportion; and to purchase one million
dollars worth of supplies for the army,
it was necessary to expend two million
dollars in greenbacks, there was a dead
loss Of fifty million dollars to the PEG
pie.
And hence one begins dimly to under
derstand how it was that an American
President in less than five years, created
nearly as large a debt as the kings
of England had done in two hundred
years.
THE FUNDED DEBT.
"The merchant or moneyed man" says
Adam Smith s!makes money by lending
70 the Government, and instead of di-
minishing, increases his trading capital.
He considers it as a favor, therefore,
when the Administration admits him to a
share IN the first subscription for a new
loan. x x "And one of the great
causes for the facility with which debts
are contracted by Governments is that
laws of usury does not apply against the
money lender Governments have a mo-
nopoly in borrowing. the moment the
funds fall below par" Because in pro.
portion as the funds fall, do the profits
Of the bond buyer increase-the lower
the funds the greater the profits.
Three quarters of a century have roll
ed away since the death of Adam Smith,
but had he been drawing the portrait Of
the money-lender Of to-day, the likeness
could not be more perfect.
In speaking of funding, that profound
writer says:
"The practice of funding has gradual
ly enfeebled every State which has adopt
ed it. The Italian republics seem to