Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1867-08-22
Belmont G6ronic(e
ST. cLAIRsvILLE, OHIO:
rnunsnAr MonsiNo, AUGUST 70, 1867.
Funding the Debt.

.t from Hsrper's weekly.l |
II appears to be generally conceded |
that the regular session of Congress in |
December will be largely occupied In |
financial discussion. An annual per |
cIptta tax of four dollars Is imposed upon |
every individual in the nation-undoubt-
edly heavy burden.- 1t was no small |
tax upon our resources to provide, in the |
first place, the whole capital of our i'm |
meuse debt--a feat whose magnitude as |
tonished the Governments and capitalists
OF Europe beyond measure A heavy
load was subsequently added, and our
dept must, without doubt tax our en-
ergies and financial ability for many
years to come. In addition to the heavy
annual interest of S143, ,000, 900, we have
to carry local, State, city, and County
debt which, in New York and some other
States, would have been regarded as of
frightful magnitude ten years ago; we
shall have to pay, for the next fiscal year,
$4,000, 600 in pensions, and the amount
will not diminish for sevelal years.
Under these prospects and actual ex-
perience, 1t is no wonder that score of
remedial projects of relief have already
been suggested. One of these is repudt-
alton !. but the honor of the republic will
not for a moment countenance so vile
measure as that. Another is to throw
portion of the load upon future genera
tiDns, either by funding the debt In such
manner as to insure its payment in fifty
or hundred years, the interest to be not
over four or five per cent. or by appro-
priating certain amount for the reduc-
ton of the debt, with separate appro-
priation~for the interest, to the actual
amount required annually. Amodifica-
tlon Of the existing system of taxation
has been earnestly urged in intelligent
quarters, as affOrding means OF partial
relief. The advocates of such measure
contend that the protection given to GER
tain favored interests dscourages in
dustry, enriches the few who are protect
ed, but at the expense of the great bulk
OF the people; that the exorbitant tariff
on imported goods shuts up the work.
shops, the factories, and the ship-yards,
while it enriches our neighbors of the
British Provinces. The "Free-Trade
League Is taking the lead In the effort
to incucate this idea into the minds of
.thepeope. There is large factioKwlio
demand the substitution of legal tenders
forthe present al:currency, ,as tend
ing toward the great desideratum. This
would he equivalent to obtaining, free
OF interest, a loan equal to the $500, 900, :
900 Of National Bank circulation, and
save the SIG, ,000, 900 a year which is now
paid to the banks In gold as interest on
their bonds deposited with the Treasur-
er. But such substitution, even ii 1T
were advantageous, could not be made
without violating the pledges given to
the banks by Congress.
The grand aim, in all cases, seems to
be to check redundancy of currency
to return to specie payments to decrease
the percentage of taxation; to tighten
our shoulders of their burden by reducing
the amount of interest to be paid on the
public debt and to throw n portion OF
the debt upon our children and grand
children. 1t seems not ut all improbable
that the next Presidential campaign will
be fought, in great part, upon financial
questions. Politiciansare actively draw
Ing their party lines, and public atten.
tion Is every day being turned more and
more to these matters. Hitherto, the
masses of the people have scarcely in
vestigated them ut all.
No one can fail to perceive the advan
tsge which England has derived from
funding her public debt. There Is Ger
tainly no country whose banking system
Is more perfect, or whose finances are II
eounder condition. The immediate ef
feet of consolidating her several stocks
into three per cents. was the saving o
i've to six millions of pounds sterling OF
the interest The public were also re
lieved from the payment oft the principal
which would have crushed them by III
weight II they had attempted to pay i
Oil tIt OIlltcu EldtcS nav
done theirs. Since the funding operation
in 1916 surplus funds have repeated.
been applied to the reduction of the debt
90 that the public burden Is gradual.
becoming lighter, while 1t has neve
proved grievously oppressive.
1t ia urged by those who object to fund
Ing the public debt that the Governmen
by 80 doing forces reduction of the In
terest, and thereby violates her plighte
AalN al. n. Il al.
The same objections were raised in Grea
Britain when the plan was projecte
there But England did no such thing
She made her offer, and the nation nc
cepted it. The great bulk of the peopl
took the three per cents. In exchange fO
stocks bearing the higher rates OF Inter
est, while those who would not assent {
the exchange received cash for the stock
they held. This is what should be don
here only the ratio ofinterest talked of
Ave percent instead of three. Doubles
the financiers of Congress will work u
the details of this projected plan and G,
plain what inducements may he ofiere
the people to aeceptit. We feel convin
cd that no other method yet suggestC
for relieving the nation of it's burden
so polite or so eiflcacious. Repeating
modifying the National Bank act wi
not do II; neither will any other Hid
gested scheme legislation. When Coz
gress Is ready to consider the subject Il
people will DO better acquainted with
than now, and better prepared to entc
tain 1t.