Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1868-03-27
How the Public Debt Should b
Funded.

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Funded
/ Our public debt Is, to make the very
best OF it, an enormous burden, which
I so long as it exists will largely embar-
rass the energies and absorb the reven-
( ues of the nation. It is an evil which
cannot Immediately he removed and
which time alone can cure. The Cop
Iperheads and Rebels fastened it upon
US by seven short years Of rebellfous
! folly, but three times seven of patient
/ industry will not suffice 20 dissolve it,
! if indeed it viii not be the memento of
secession to our children's children.
The most that can be done. now is to
mitigate its borden and put it in process
of liquidation. This is one ofthe great
problems of finance.
Happily we are not entirely without
precedent, but have the benefit of the
experience OF many other nations placed
in like circumstances. We have be-
fore US the accumulated wisdom of sa-
vans in finance who have devoted their
lives to the study of problems like ours,
ever since the beginning of civilized
governments. England, by reason of
her vast war and financial experience,
is especially rich in lessons from which
we ought to profit. She has had to bear
heavier burden and make the same
struggle against bankruptcy and for
specie payments. Her experience
teaches us not only the way to ruin but
the way to escape if, and if we have the
common sense to follow its plain ad-
monitions instead OF the elamor. of dem
agogues we may speedily restore our
credit, tighten our burdens reanimate
trade and give gold and silver to our
people.
Of all plans for funding our debt we
believe the English to be the best.
Greater exigencies than ours have tes-
ted its wisdom, and time has confirmed
it by beneheent results. The English
debt is funded in a consolidated loan
called ''consols' the popularity of which
is that they are always Tedeemable but
never payable. Our loans are made
payable upon a day certain, a circum-
stance which creates as many varieties
of loan as there are different days of
payment, and works many other dis
advantages. The obligation to pay
large sums at a particular time creates I
arrangement in the money market and
keeps the finan ciaI pulse in continual /
irregularity of vib ration. At a day
fixed the option acerues, and at another !
the obligation to pay. hundreds of mil |
lions of debt, and the inevitable uneer-
tainty about its payment or funding /
cannot be otherwise than disturbing |
element in our business, credit, and f. |
nance. The maturing loans must al
ways be funded again, a process atten- /
ded with great expense and ineonve-
nienee, and which enables sharpers to 1
forecast and take advantage of our ne
eessities.
All these and many other unfavora-
ble circumstances growing out of our
complex system of loans are avoided by
the English plan of an interminable or
perpetual loan redeemabIe at any time
but payable on no particular day. To
use the language of an able contempora-
ry, sit avoids the excitement and dis
turbance which attend the maturity
and renewal of a debt. Tt saves the
great expense of frequent negotiations,
the commissions, advertising, printing,
and the premiums always paid. It is
always secure against the embarrass-
ment which is often caused by. an obi
cation to pay large sums at once, and
that at a time fixed too long beforehand
to regard the convenience of the Treas
ury. It settles the value of funds with
in narrower limits of fiuctuation, and
reduces the temptation to speculate in
the public credit" It is uniform and
simple in lis nature, safe and conven-
lent for the public creditor, and relieves
the government from embarrassing and
irregular obligations.
1t has been mistakenly supposed that
such loan would indefinitely postpone
the payment of the debt. Such is not
it's effect, while experience
proves that the present system Of fund
ing by borrowing to pay at day GER
tain does not hasten the payment, but
only necessitates a are-funding of matur-
ing obligations. The government may
at any time go into open market and
purchase its ''consols" for what they
are worth and cancel them. Whenever
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can watch for such exigencies Of the
money market as may enable this to be
done upon the most favorable terms. In
with such loan there should
be a permanent sinking fund devoted
to the gradual liquidation of the debt
and faithfully applied for that purpose.
To this end all receipts from the public !
domain should be inexorbly set apart. /
With such a system we believe the debt
would be scarcely felt, the bulk of it /
would gradually melt away, speeiepay-
ments could be speedily regained and |
prosperity restored. Congress
should give this plan its careful consid-
aration. :
The People Of Ohio are paying at the !