Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1867-04-10

while the government rates remain as they
are now they cannot borrow except by pay
ing from eight to ten per cent. interest, ru-
inous rate for any manufacturer to pay, who
has to sell his goods in competition with for
eign manufacturers who can borrow money
at three per cent.
Previous to the war there was an immense
vestment, but nearly all of it is now repre-
sented by government bonds. We regard it
as one of the greatest evils of the public
debt, that while it represents to a great ex
tent property actually destroyed during the
rebellion, it is, for all practical purposes in
the growth and development of the country,
SO much idle capital of little more use to
the community than the miser's gold which
ne keeps locked up in his strong chest. If
any one doubts that this is an immense drag
upon the business of the country, let him
consider for moment what would happen,
if our government could at once, by borrow
ing money abroad, pay off this debt. Can
any one estimate how much capital would be
at once distributed through Vermont? Is
fifty millions too large an estimate? How
long would the possessors of those millions
wait before they put their money to use
somewhere; and where could they put it to use,
except it ultima tely went into some industry,
either producing or manufacturing? And
what would be true of Vermont would be
true of every state in the Union, while thi.
tyf Of, al ha
at once released and put to work, in some
form producing wealth by doubling the pro-
duction of the country.
1t is unfortunate that this public debt
| cannot be at once paid and the power of
capital thus locked up be turned into more
productive channels. But something OF
the same good can be secured by payment
of part of it, and by reducing the rate of
interest on the residue so that capital should
not be irresistibly drawn into this species of
investment. Two hundred millions of this
debt has been paid during the last year, and
so much has been added to the business capt.
tai of the country We know it may be
said that the money has only been paid from
one pocket into the other, which is in one
sense true ; vet it is no less true that CAPT
tai has thus been released and compelled TO
seek other investments. The taxes we pay
seldom make us poorer, because generally
manage Ill one way or another to make our
earnings for the year enough more to meet
these taxes in other words we are stimu-
lated by the necessity of paving more money
into more productive exercise of our ca
pacity to earn money. The people of this
State never paid before the one quarter
the sum i'll annual taxes they have paid for
the last six years, and vet they have earned
more than these taxes III addition to their
usual accommodations, and make a large fig
ure in the grand list now than ever before
and if their government bonds We're taxable
how would the grand list be swelled beyond
what it now is We believe if we
could pay the public debt in the next ten
years, and it could be done and more too,
at the rate it has been paid the last twelve
months-we should find the country ey-
erywhere busy with myriad industries
which have now no existence. but which
would then spring up beside every river
course. and along the hill-sides where has
slept since creation the untold and undis-
covered mineral wealth buried IN our soil.
The public debt is not public blessing
although some enthusiastic writer's have said
it was.-but it is public calamity, and
should be paid at the earliest possible mo-
ment and what cannot be paid by taxation
ought to be paid by borrowing money Mt a
rate of interest much less than is now paid.
This country can never prosper, az II IL posi-
bic for it TO prosper until government bonds
cease to compete in the markets at ruinous
rates of interest with every productive in
dustry seeking to borrow money. When the
government is either not borrower at all. or /
can borrow as England does at three per
cent per annum, we may find the vast re-
sources of this country developed as Eng
land has already developed the riches of the
fost anchored isla =