The Plymouth Democrat. (Plymouth, Ind.) 1869-1941, 1869-11-11
How the National Debt is Growing.

THE Democrat of Saturday gave us a
little calculation, which shows that, spite
of Mr. Boutwelps efforts to reduce the
National debt and his declarations that he
is reducing it, the debt is, in truth, steadily
and largely growing. 1t is not our cotem-
pOrary's object to demonstrate this TACT,
but it does demonstrate it, nevertheless;
for j. proves, and that, too, by arguments
as irrefragable as those so often used by
Mr.. Pendleton in his Ohio speeches, that
as gold declines all debts increase; and, as
the National Debt is the largest amount OF
Indebtedness in this country, it shares ana
illustrates the general increase.
The growing stringency IN currency Is
the text on which the Democrat breaches.
1t asserts that this stringency Will con-
tinue to grow and thus depicts the conse-
quences:
"Property will apparently shrink in
value. People who owe debts will have
to pay them in currency worth elgnty
or ninety cents instead of seventy cents
on the dollar, and the practical effect VIII
be real increase of one or two-seVenths
in the amount of all debts. mus note
for ten thousand dollars, when gold was
about 135. was really worth only about
$1,000. but with gold worth only no, that
note will be worth about nine thousand.
The change will be good for creditors, but
bad for debtors. For, with appreciation
in the value of currency, all property may
be expected to shrink in nominal value.
The house called worth ten thousand dol
lars when gold was worth 135, was really
worth only seven thousand, and with gold
worth 10, supposing its real value to re-
main unchanged, the property would De
called worth less than eight thousand
Thus a shrinkage in the nominal value OF
all property, accompanied by an increase
in the value of all debts, will bear heavily
upon people who have large obligations
to meet Rents must fall, prices must fall,
goods in stock or in transit must tall IN
nominal value, and the unlucky man who
has been counting upon property valued
at ten thousand in currency to secure hlm
against debt of ten thousand in currency
will find himself short a couple OF thou
sand.
Z" All this proves the wisdom
ofthe advice given months ago-that men
should begin at once to transact all their
business on a gold basis. Those who have
done so now need care little for the fuctu
atoms of currency. 1t IS coed
to get out of debt, or at least to get all
debts adjusted at gold values"
1t is impossible to find fault with this
reasoning, or to avoid the conclusions it
leads to. Its application to the national
debt produces effects as startling as would
the looking at a savage monster through
telescope. Thus, when gold falls to 12O,
the increase of the debt will be one-sev-
enth Taking the debt at S2,40O, 100000,
this increase will be S342, S57 ,142, and the
debt will in effect be 50, 742, S57, 142.
When gold declines to 10 the debt will
oUth &c or 4
and be S3,OS5,714,2S4. And when gold
falls to 100, or par, the debt will have
grown to the enormous proportions OF
$3,42S, 81 ,426.
These are startling figures, but they are
mathematically correct; and they show
that the Republican policy of paying the
national debt in coin will cost the people
about $685., 714,2S4. Cali this proves
remarks our cOnte mpOrary, " the wisdom
of the advice given months ago-that men
should begin at once to transact all their
business on gold basis. 1t is good to get
out Of debt, or at least to get oil debts ed
justed at gold values" The term call
debts" includes the national debt; and to
adjust it at a gold value taking gold at
100, and the portion of the debt payable
in lawful money at 81 500,000,000) would
reduce the debt $3.50, 000, 900, making it ST.
ought to pay, according to the Democrats
logic and all they ought to pay by every
principle of justice. Had the debt been
adjusted at a gold value when gold stood
at 200, the debt would now be only about
$1,650,000000.
But the Republican party stands in the
way of this manifest justice 1t insists
that the debt shall remain at an inflated cur
rency standard, and be paid in gold
which, in practical effect, adds more than
one-fourth to the size of the debt. Mr..
BOutwelPs policy is the avowed one of
elevating the public credit; but in abso-
lutte truth, it is one to decrease the power
of the people to pay their debt. He
boasts-and so far as we know with good
reasOn-that he has reduced the debt $780,
100000 within the last six months. But
he claims credit for having reduced the
price of gold about ten per cent which,
estimating roughly, adds about ten per
cent. (s1JO,000,0O0) to the debt Clearly,
then, while this policy is entirely accepta-
bic to the creditors of the Government, it
Is harsh in the extreme on the people,
Missouri RepatJlicda