The Wyandot pioneer. (Upper Sandusky, Ohio) 1853-1868, 1868-07-16
NATIONS AS DEBTORs.

other borrowing government. In
July, 1864, our skies of 1881 were
sold in London at 33; showing that
4 the United States were required to
ipay for the use Of money more than
J four times the rate of interest de
{ manded from France, more than five
times that paid by Great Britain
{ nay. that Austria and Italy were re
garded by lenders rs safer borrow
ers than the great Republic, and
Ecou!d obtain loans at half the price !;
and even the bonds Of Spain were
worth more than ours.
i Not that any one seriously be
lieved those nations to be richer
than. the United States, or that their
resources were likely more rapidly
to grow far beyond the demands of
their Indebtedness But feeling
prevailed widely of distrust toward
a government of the people. The
notion that a government is some
thing antagonistic in interest to the
nation at large, that the security for
q. public debt is to be found in the
power of rulers to force subjects to
pay, and the taxpayers will newt
ably refuse to furnish the means
unless compelled, seems to be one
which fire cannot burn out of the
men who live under monarchies.
The conception of people volun-
teering to assume debt, every one
1of them identifying its obligation
with his personal honor, and all
cheerfully imposing on themselves
the burden Of sustaining it, has not,
or in 1864 had not, entered the Eu-
repean mind. But the debts of the
old royalties of Europe were sacred
things; for is not a kings word
pledged for each Of them? Does
not each of them rest upon the hon.
or Of a throne with centuries of
glory behind it? Does not the very
SAVIOR of the divine anoirting extend
to all the obligations assumed by
the old historic houses of Hapsburg
and Bourbon? a
|, Great changes have come rapidly,
though gradually. Every year has
added largely to the number of those
/ in Europe who have unbounded con
| fdence in America. and who look
upon our debt as the safest invest
ment in the world Had no more
bonds been sent out since the war
closed, the credit of the United
| States would be as high in the mar
kets of the old world as that of any
nation. But we have lived most ex-
travagantly, and have borrowed of
Europe the means to support our
style and our waste. We have kept
the foreign markets always sup
| piled with our bonds, almost on
their own terms, until a large pro
portion of our whole funded debt,
perhaps third of it, is held there
Yet, in spite of this, the demand has
grown faster than the supply; and
now, at nearly seventy five, they
have become favorite for in which
temporary balances are made pro
ductive among the bankers who Re
fused to deal in them at all at less
than half tins price.
On the other hand, three Of the
great monarchies of Europe have
just given examples, ona large scale,
of the unhappiness Of him who
trusts in princes. Austria has laid
a tax OF sixteen per cent. upon the
coupons of her own bonds, to be
withheld by the treasury upon pay
ment, thus reducing the interest up
on her five per cents. TO less than
four and one-quarter per cent The
plea made for this is that Hungary,
under her new Constitution, refuses
to assume her full share Of the pub
lie burdens; and that it is not rea-
sonable that the rest Of the empire
represented in the Reichsrath shall
make up her deficiency. But the
real excuse is the Inconvenience,
amounting almost to impossibility.
Of sustaining, with the present very
imperfect financial system Of Aus
tria, the heavy taxation which per-
feet good faith would require
Italy, following the example OF
Austria, is also busily engaged in
laying a tax upon the income re
ceived from her public debt. Some
of the ministers oppose the applica-
ton of this tax to foreigners but
there is no possibility of discrimin
ating between foreign and domestic |
holders without giving opportunity
for extensive frauds. The repre-
sentatives Of the people have sub
mitted, with some show of cheer
fulness, to the grist tax of the gov
ernment; a direct tax upon bread !;
and the income tax of ten per cent.
is considered as inevitable, unless
they 60 to still more oppressive
lengths in levying upon the neces-
saries of life. But the real bane of
Italian credits is the corrupt state of
the revenue service. Every excise
officer is looked On as thief, by
virtue Of his office; and the govern
ment admits that but fraction of
the duties levied by law ever reaches
the Treasury.
But the most startling act of re-
pudiation in modern times is that
just committed by Spain. 1t is
really a novel and original method
of confiscation, and shows more in
genuity of design than we common
ly expect from that not very able
government. Some weeks ago |
Spain made contract with the old
banking house of Goldschmidt, to
introduce through them new loan
upon the London market; to be Sc /
cured upon the revenues of Cuba and
other colonies, with the added guar
arty of the home government at
Madrid. While the bankers were
receiving subscriptions and partial