New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-02-23
THE PUBLIC DEBT.

& a Il
to.y is philosophy teaching by example, and there
fore how of,, IL is much to be regretted. when either
bv an individual or by people, history is not read
rbilo.othy Goo, Tot tcach-CNUuple Is unknown or
u,3pprs.4irl This is especially true rs to the sub
,c OF this essay TO. the reasons that IN 10 history
of auy nation has q financial policy been more care
fully G.cstcl more pTudently established, more
c,lulously pursued or ~ perfectly and riumphantly
been accomplished as IN this Republic of the United
States The basis Of that policy was the effective es-
tabli,hmcrt of an enduring public credit. Ihe
means employed were, o provision for the support OF
the neutrality-suspicious. for funding the debt,
and for the payment Of interest upon IT. and proNis
ion, for rcimlursing and extinguishing it, in order
70 place that credit as far as may he practicable on
groun5, tiirh clnpofbc disturbed and to prevent that
rogyes,rs accumulation Of dtbt Uhch must ultimately
,n3aagc, all governments.
As the extent of the demands OF the treasury LOT
these several purposes essentially, mainly depends
,,,n ,be po.y adopted for rcimburSing and thus ex
tugu.hpg the debt this branch Of the subject Will
naturally present itself first for considerations Be-
fore entering upon this consideration, 1t may be ms
well 10 state in the outset the remuneration and utter
condemnation of the policy which has been recently
introduced and still prevails here Of accommodating
,urp!usc. n the Treasury to be used from time to
time without any fixed system, without any regard
r. the necessities OF interests of this nation, present
or future in the sale Of those SURPRISES or in the
purchase Of the public debt. In other words, we do
not believe in making merchandise of the burdens of
the people at the discretion of any public officer.
Such policy in its nature. on its face suporSedes all
arguments and is its own condemnation.
Instead Of 81. may well be preferred the suggestion
IN the first report of the first Secretary of the Treas
my of the 9h of January 1890: The Incorporating,
as fodqn,ai0l marin in the system OF public credit
of the ucd STATES that the creation OF debt should
a'rlss be accompanied uih the means Of ertingHshmem
that t,., i, the true secret for rendering public TtaH
,,ro,il and that it is difficult to conceive stua-
uon iu vhi,hjhc may not be an adherence 10 the
marin" Til, principle was then proposed to be re-
drrcd 10 practice hy the establishment of SINKING
Tr>p White Hamilton thus urges its establishment
"A, the great means of fulfilling maxim, by Others,
fi,aur.tly u England, sometimes here IT has been
urououIc.a % chimcra." Why this is 50 in England
l,, been thus explained: The original sinking
fund Of -, Sanhopc. established in l'lG was Vio-
lated Few years after its creation Its operation
,,.tu-li,,gt and its product was diverted sim
liar fate attended that Of l.o. In the debate upon
This subject Fox thought the resolutions considera-
LivvcakcucJ hy not making the fund inalienable III
.mc OF war" and Pitt remarked, :" it was the essence
of hi, plan to keep the fund sacred and most efectu-
ally Ed in time Of war" The fund of 17S6 was re-
enforced in 1872, and would have accomplished its
Purpose but il also invaded Although her
statesmen subsequently have in vain made strenuous
efforts 90 rciustate II. her plant political writers
have called il "a chmora" What Is "chimeraF
Z is defined 90 10 "a creature OF imagination, COM
posed Of contradictions or absurdtes that can have
no existence except in thought On the contrary,
the system ~ % Sinking Fund may be characterized
when viewed in its principle, in its operation as
sanctioned by the founders Of our Government, by
it- early statesmen of opposite potics-Federa and
Deirocr.tir-by Hamilton and Ames, by Jefferson
and Madison, and Monroe. and by its tried proven
rr,,it, a, a GUEAT LEADING FACT among the many
great fact, Of our American history which wise
statesmen viii ever be governed by and only weak
politician, vail disregard. We do not pause 10 dis
cuss or % di>proye English opinions; when 1t is
known That the purpose Of her arSOcracy Is TO keep
up great national debt in order TO sustain itself by
engaging the interests of the moneyed classes. and
when is seen to have been the policy Of our repre-
sentative democracy to extnguiSh public debt, and !
thus 10 promote the interests of the whole people
Indeed. we trust the time ere long will cease when |
are quoted as authority this side of the Atlantic
the political economy the political morality of
England The first in the condition Of her over
taxed people is a proven failure the latter, as we
have ielt TO be- as now feel it to be, Is an abom
nation But there may be an advantage in setting
forth the actual operation and results Of the Amcr
eau system Of finance
The fret act creating a Sinking Fund that of !
Aug A. 1880 entitled An act making provision for
the debt OF tine United States" The second act was
that Of Aug r. 1890. entitled AN act making pro-
vision for the reduction of the public debt" which
beside providing certain means for the purchases of
the debt provided that these purchases be con-
dncted under the direction of the President Of the
Senate the lief Justice the Secretary of State the
Secretary of the Treasury aud the Attorney
who or any three Of whom, with the appreciation of
the President were authorized to cause them to be
made IN such manner and under such regulations as
shall appear t. them best calculated to fulfill the in
tent of tbi, act" The Hird act Of March 5, 1871,
the foyyb act OF the same date-being supplementary
10 the previous act-and the mn, OF May 5, 49,!
which establishes permanent sinking fund; these
were followed by three other acts, two IN l's one III
I7lj and then y the act of March 5, 1875, when the
fund appropriated to rcdeeming the debt was first
denomiu3t,d by law, the SINKING FUND.- All
these several acts were passed under the AdministTa
t,op Of Washington On the 10Th of April, 1902, and
on the 18th Of February, 1901 two acts were passed
invigoratug thi. fund, under the Administration OF
Jefferson On tho nth OF March ISL, Oh the 18th OF
February 1873 on the 4h OF March 1914, on the 10Th
of November lSl4, on the 18th Of January, lSl5 ON
the Sd of March 1915, and on the I'd of March, 1917
successive provisional acts to this fund were passed
under the Administration Of Madison and on the sd
of March ls3 and the I'D Of January, 1874. acts to
the same effect were passed under the Administers
ton of Monroe.
In each of these acts the pledge Of the public faith
il seen repeated emphaticahy
The coul,ctc accomplishment Of the first American
system of Finance was declared By law to have been
Effected by the act OF July 1895, by which act the
,.ft Ia (intup If