The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-06-18
Goinr In pebt to Europe.

From the Philadelphia Reeord)
A great many years ago, when the
United States government was o large
borrower and the treasury was overflow
ing with money, Q Senator was elAbor-
ahng the fact that the financial operations
OF the government were moving like
clock work. Another Senator responded
"yes, our prosperity Is all tick, tick, tlck."
At the present time the government is
not borrower, and Is even paying Of is
debt, but under conditions that are very
burdensome TO the people. While this e
the condition Of the government treasury
the country OF large Is still borrowing
largely-borrowing Of foreigners, and Dor.
rowing at high rates Of interest immense
amounts Of capital which will have 10 be
replaced with interest. The vital ques.
ton then IS whether all this Il safe and
healthful credit, and II II isultimately to
enrich the country or impoyefish II. In.
dividuals may borrow capital, and they
frequently do, with profit to themselves
and advantage 10 the lenders, but they
must employ this capital productivity,
and DO able, BY the prompt sale Of pro.
ducts, 10 reimburse the lenders their In.
terest promptly, and also 10 provide q
sinking fund TO liquidate the principal. II
they fail TO do this their business will soon
decline and their credit become impaired.
1t will not do to borrow the principal,
and then borrow to pay the interest.
Such practice points with uner.
ring certainty to bankruptcy. Sound
business men do not rely upon credit, ex.
cept TO help them over the transient hard
places In their business. The same prin.
ciples which practically govern mdivid.
uals In their borrowings are Just as I'M.
perative and sound when applied to the
current indebtedness Of nations. This,
Of course, does not apply 10 governments
borrowing for war purposes-When the
money borrowed Is not productivity
employed, but unproductiyely consumed,
and must be replaced by the creation and
earnings Of new capital-but does apply
to that form Of borrowing in which in.
dlviduals, corporations, cities and states
solicit the capital Of foreigners for the
purpose Of building railroads, court.
houses, prisons and other forms Of i'm.
provements, giving therefor paper credits
in some form, bearing interest, and also
includes imported goods, which are not
settled for by products exported but by
interest-bearing paper. How long can
such borrowing 60 on with safetyH It Is
undeniable that capital so obtained Is
just as useful as If 1t had been created at
home, and imparts to the country an
apparent II not real prosperity; but,
unfortunately, we are bound In some
form by q paper obligation to pay back
the loan, the interest on which Is con.
stantly and daily becoming a more OK.
haustive drain on our surplus productions.
So long as foreigners are willing to take
new bonds, and our people create fresh
promises to pay in return for new loans
and interest on old ones, the true state Of
the case is covered up, ond we appear to
be getting on swimmingly; but, neverthe.
less, the fact remains that we are viola.
ting the soundest conditions of credit,
and there must, sooner or later be a
collapse.