New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-18
RY HORACE GREELEY
XVII.
CREDIT-ITS USES AND ABUSES-FoREIGN
JNDEBTEDNESS-OUR NATIONAL DEBT

We are a young people, largely employed in the
slow and rugged process of clearing away the prml-
tive forest breaking up natural PRAIRIE Dulldhg
fencing draining, and in every way suoduihg anu
adapting the earth to the uses of CIVILIZED man. we
are a sanguine people, with unbOunded faitn III o'H
own capacity, and in the rapid growth OF our couh
try i'm population wealth, and power. we are all
aspiring auGacious people. and choose 10 orec'
ratber than be directed Our boys are eager to be
men. orr younp men want to get into business"
forthwith. Being people of yesterday, we nave
less accumulated wealth than we probably snail
have centuries hence or than thel peoples of Europe
have generally acquired And, young as we are, IN
telipence and enterprise are quite generally ditiused
among u.s. so that we seek to achieve our industrial
ends by the use of machinery, animals. steam,
where ruder and more ignorant workers rely whohy
or mainly on human muscle. We are epicurean
slmptuous profuse, prone to ostentatOn. and reck-
less of expense Too many of us shun productive IN
dustry and seek subsistence success. wealth, emil
hence through Trade, Speculation. or one Oh the
Professions. Hence, require capital much faster
than create it, and are prone to run INTO deo''
We ran into debt as colonists; we borrowed from
France and Holland to sustain our War for Independ-
ence and Shays's Rebellion and kindred disturb
ances were melted by a general and agonzlng pres
sure of debt The Federal Constitution and Gov
ernment insuIng greater stability and prosperity
than had previously enjoyed, enabled us TO ex-
tend the sphere Of borrowing and TO incur mer-
camille and corporate as well National obligations
in Europe to which State debts were soon added.
When we had low tariffs. we incurred debts abroad
when the duties raised we left those debts I'M
paid aud sometimes incurred new. Thus we had
gone on until at tho outbreak of our Secession
troubles. we were owing Europe mainly in the shape
of State Railroad and other corporate bonds not less
than Four Hundred Millions of Dollars.
In the first two years of the War. added little
to this aggregate; for the first year. nothing. We
continued to export Grain. Lard, and some Meats
we soon began to export Petroleum; our export OF
Cheese steadily increased and we bought Fabrics
less freely than we had previously done, partly be-
cause a novel aud absorbing sensation had dwarfed
the passion for dress and display partly because our
internal credit system had broken down, and rural
traders longer able to replensh their stocks on
credit bought little or nothing But long before the
close of our four years struggle we had established
new credits, mainly through tue sale abroad of the
bonds representing rapidly-expandng War Debt,
had suddenly enriched large class through con-
tracts and other operations popularity grouped under
| the designation OF Shoddy." and had run heavily
into debt for Army Blankets Nitre. &C., &C.. which
| we paid for mainly in bonds. Thus the last two
| years of the War saw our Foreign Indebtedness
largely increased, while its close found the shelves
Of inland stores nearly bare of Fabrics and their
! supply of Groceries very limited Throughout the
States lately dominated by the Rebellion. there
an absolute dcarth of merchandise; while Cattle
had been swept oil aud Implements destroyed or worn
| ont during the progress of the contest. To fill up
our stores with average assortment ut least Two
| Hundred Millions worth of Goods were impera-
lively required while evidences of National
|
supplies and the paying OIL of armies, were
| cheap. abundant. and very widely sown. Our Ma
/ tional credit which had ruled low abroad through
| ont 1853 aud a. was naturally much improved by the
| completeness Of the National triumph. that our
bonds temporarily sold for in Europe than they
worth I'm gold at home. Hence in spite of the
| restraining influence of Tariff. which had been
| once more rendered Protective in 1861. and was
| somewhat increased sundry articles in 1854 and
! 1865. imported heavily during the three years
following the close of struggle. though our crops
TAT the South especially of exportabe produce
quite light. and their prices much reduced by the
turn of peace During the last year or two our Ma
tional Industry has been efficient, while the
price of Cotton has been remunerative to the
grower: but we are in debt to Europe not less than
| One Thousand Millions Of Dollars, about three
fourths of it in the form of National bonds obi
cations the residue almost wholly composed of State
bonds and those of Railroads and other corporations.
The annual interest this vast burden cannot fall
| below Sixty Millions of Dollars in gold and
Exports Including Speciel should oyer-baance our
| Imports by at least this amount
But they do not; thoy rarely or never did; and it
| were bold to predict that, long Europe will
trust US further they will Thus far pay
quarterly accruing coupons Of interest by exporting
| and selling moro bonds About every fourth year,
Europe has short crop of GRAIN and then We supply
her needs largely at fair prices but our great grain
growing districts too remote and too tar inland
| 20 enable us to compete on equal terms with the
| wheat growers of Poland and of Southern Russia
| for the oaprioious markets of Great Britain and
of France OF Sugar, Rice. Wool Metals, and nearly
every Textile Fabric. we need all we produce and
more too our Exports are nearly restricted to few
| bulky stapes-Cotton, Cheese, Lard Bacon. Petro-
| eum &c. &c. We are constructing Railroads more
rapidly and generally than did prior to 1868;
We are opening mines, building factories and
furnaces erecting houses, and converting forest and
| prairie into farms and all these involve heavy
present outlay TO achieve prospective benefits. These
all strongly tend tO keep up the prices of every
| modify stimulate Imports, diminish Exports, and
tho aggregate of our indebtedness abroad.
We are adding not less than Two Billions per annum
to our aggregate wealth but we do this at the cost
of increasing. by perhaps One Hundred Millions
annually, the sum of our foreign debt
We have an lrredeemabe Currency-that is
Currency which is not oxchangeabe for the specie
dollars 1t would seem to represent unless at heavy
aud oapricous discount. BY consequence. the
nominal price of every commodity is from to twenty
to fifty per cent higher than its real price regarding
coin as the standard. barrel of Flour tun of
Coal sold for $40 really brings but g. to IS: so with
all prices of Produce: so with the wages of Labor.