Iowa voter. [volume] (Knoxville, Iowa) 1867-1874, 1869-07-29


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1nltrzilsII;
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rlliIu different ni6nT f5-mE1 the DE-
Er-iIafrn # Tgtsuns.
nntaG II .Ei.. ggsBparHE1,tn5 giteaEateS
.llssr.sal 1f' .ti=-fT'EEs tine capital u oor-
i1pvas amt SINCE tfi,s Individual eircu-
l..sras tF1ssiza1E OF e5,s..1rUy-tte capital he
Flnr--s,vs-Hgr 4 Government TO Dor
B-lfE + LII azrs.'= g,srEiciotis per sc than
Str asEts aeJsEaTs55sssaaI 10 borrow.
TFg -zsBr fyprrugs a thousand dol
aIE-x EL -zsg3ey or personal property,
and a5sazrrvyes is outright, then there
IN + asrai- Bs,as q y2lses 20 that extent,
amt rlie essaE Hgzn5gy is 80 much
1rrrs- Fs a ts5rrggEs without in-
rsr..ss a rllrsrsi.ssssI daaEEsg. q T., y no
B.sa MIA uItrIuslntf dsaiA8rs Ile U3pEo-
,sfsrarvya. lrtd n bets the Fsg1SESey iie
s,Tse. fA,Isp Ef,s%rs Il neFtfpeE lo-- nor
rain 10 zstss ee14za1afry; it Is neither
rs,.sttsr asgr roorer tFian It was before.
r. grys ten per cent Interest for
Faa rlas e the money, and creates
niasla vaIue himself, then while he
personally may BE- poorer, the COM
rugafty will be better off by one hum
sErea dollars than it would had a..
r1s borrowed the money. II y. uses
tie thousand dollars, paying ten per
esre. interest, which i. was letting
Ife Idle. and makes his interest and
sUo hundred dollars besides, direct
creation Of values, then n. IS TWO
fnr.drad and the community three
hundred dollars better off by reason
Of A. having borrowed the money.
THU. 30 far from it being destruc-
ton Of capital and loss to the com
.nunjty for an individual to borrow,
the result may be direct creation OF
values and a consequent increase OF
the community wealth. Wea ppre-
bend the facts and arguments are the
satne in the case Of borrowing Gov
eminent.
We admit, Of course, that when, as
I'm our case, a Government loan Is Tor
the prosecution Of war, there is n
much larger per cent. of the values
borrowed destroyed, than inindivid-
ual borrowing. But we maintain
that the assumption that whatever
sum a Government bOrrOws, ana
which becomes Il debt, is necessarily
destroyed, Is an utterly erroneous as
sumption. As the question OF loss OF
gain in individual cases turns upon
what the individual did with the
money borrowed, SO in the case OF
Government, the determining con
alteration is-what did the Govern
ment do with the money? WHAT
mart of those values were destroyed
aud what part put in profitable CIR
cuiation?
That a Government debt Is moi
necessarily loss to community, may
easily be made to appear. Suppose
the Government goes in debt nifty
millions Of dollars to construct rail
road to the Pacific. 1t taxes TIT
people and pays off that debt In tel
years. The individual pays ten cents
per annum, as q per cdpn0 TAX, u
discharge that Government debt
That is one dollar-and the interes
on ten cents Is say fifty cents more
That Government tax is a burthen
then, upon the individual of on'
dollar and half in ten years. Bu
i'm these ten years that railroad, cost
Ing fifty million dollars, has addet
one billion dollars to the wealth o
the country; thereby the individual
il worth twenty dollars more thar
he would have been but for the Gov
eminent debt and the road. The nc
count then stands: lie has lost 0
been burthencd ono dollar and nal
has received therfor twenty dollar
"a clear gain to him of eighteen dol
lars and a half.
Bearing this In mind, let us stud!
the problem in hand.
The war for the Union cost tn
people OF the United States fou
billions five hundred miIlIonsremail
unpaid. Now was that four billiol
WAS that two billion five hundre'
millions destroyed? We think not
The Government had from one T
two million men in its employ, II
the course of those four years. Tw'
billion dollars, say, went TO pm,