National Republican., 1873-12-29
THE DEBTS or oUR People. .


huitliAg., aa.l ~
THE DEBTS OF OUR PEOPLE.
, We are not of those croskcrs whe foresee
nstioual disgrace. national bankruptcy, md
national disasters ofcvery imaginable kind,
- the result Of the present depressed con
diion Of Affairs; hut candur compels US 70
admit that the outlook l. scrious--more
serious, we fear, than The aycmgc Congress
men believes. u to he. When Il is, re.
nembered that with Congress alone resides
the duty Of providing relief this lack Of ap.
probation must be accepted IA exceedingly
unfortunate. Yet Il requires only the
briefest Investigation to prove that the
couiary Is sadly In need Of that relief
According to tho census Of 1870 the OIL.
cial valuation Of propery in the United
States wns $50, 900. 00o,6O0. II has been
estimated since the census was taken that
our national debt tho dcbls Of States, cities.
oosnties and towns, the debts Of individuals,
and the amount cf wilroad bond and mort.
gage Indebtedness amounts in the aggregate
10 about el2, 900, 900, 900, the interest upon
which a, per cent. Is Ssio.0Oo.0Oo. or .
per cent. ofthe official valuation of the total
amount OF property. but large proper.
tioa &c that total vslna,ion yields no return,
- m,rlt Of the property embraced therein
n Of Tue nature Of permanent or non-in.
terest bearing Investments. The remainder
s.ar. thcwiorc bear the bur,l-n Of dolny
tws the interest accruiug upon the aggrc.
gate Indebtedness.
We arc OF the opinion. howeycr, that the
total valuation. as reported by thc.censtls.
taksrs was too small. II was impossible
for the euumprtors in the Southern States
for instance, in 1870, TO make even an APP
pruzimsie valuation Of the property in their
respective districts, while in the Northwes,
His wei, known that they signally failed TO
olaain even a correct enumeration Of the
population. hut these blunders. while they
avail To increase the Interest yielding yalttu.
tiou. do not avail to decrease the amount of
in,ercs, to be paid. Thcs,im 6f SS+0, 900, 900
interest remains, and II mus lie admitted as
a very reasonable estimate. Its based upon
the assumption that the average va,c of in.
tsres, throughout the crntry is seven per
cent.
Right here let us halt lnr u moment. How
long is IL since We l,eyan 10 think or speak
of seven per cent. rs the average rate of In.
teres,y Before the war, and In the set.
tied times Of peace, the rates .were from
four aud half To SIX. sScep, in the Western
States where great inducements were held
out to scduce the capital of the Eas, into
new channels Of investment. There is food
for thought In this fact. How long, unless
We check The, spirit Of speculation and ad
venture which pervmlcs the country.will 1t
he bcf6rc we think and speak of eight per
cent ~ the average rate! How many re-
spcasable and comparatively solid basi-
nes4 men have paid ten times that
rate during the past three months? II
is true that the Government has sue
cedcd In funding its debt nj lower rates.
but its success is mainly due to lhe stability
OF the money markets or the Old World.
into which year allcr year. we mus, now
sead millions of dollars In payment al the
annually accruing interest on our new
bond~ But while the Government has
suocsedctl. and in Its success has provided
for Q periodical draf, upon the resources oi
tho country 10 meet It's foreign obligations,
the condition of affairs at home has nnt
,becn ieitercd even In the slightest degree,
and seven yer cent. must continue TO hc
accepted rs the average rate. '..
But 10 return. ], must be admitted
that the vas,ncss of our asgregtr indebted.
ness Is ,isproportionatc 10 th~to,nl Of our
property valuation. even II thai ,ntal were
twicc Us great ss stated In the last census.
The activity with which as n people We
handle money, the rapidiiy of investment
and rcinvcsuncnt, and, in short. the mo-
bili,y of our capital, gives 10 i 4 false
strength, the deception of which Is cA'
posed when we look abrond 10 find
money worth frpm three to foui
and half ct five per cent. per annum.
The old and settled countries of fhe civil.
ixcd world. except daring the emergency o'
war or great political disturbance. are en-.
abled to keep their rates lower than our
were In ls60-'6I. And the mobility ofouI
capital of,cntimes works 10 our great dis
advantage. The farmer who plods through
lifa, beginning with snail profits, but end
ing with Competency, ON the same piece
ofiand, presents about the only instance ri
pernlaacncy in investment afforded by on
existing system. The farmers children
drifl away from the old home place become
bankers, merchants, and speculatprs, with
M pcrmnnency In the character OF their in,
vestments, This is proven by the Nc
knowlcdgcd fact Tint we have eu. COM
paratively few rich families" One gen
oration Is succeeded by anotller so seldom
In the same line Of business thu, IN invest
mcnt OF two generations Of existence Is
rarity indeed.
This explanation of the condition Of NJ.
fairs. demonstrating ms il does in gencra
way the unfortunate results Of the spirit o
adventure which seemingly leads Our peO
pie To reckless extremes, Is not overdmwn
1t mus, address itself 10 the unders,andin:
Of every thoughtful man as demanding I'll,
earnest attention of those whose duty II &
to prepare the means OF relief Let Con
press gmpplc with the facts here presentet
with patriotic and unsellish dcterminatlo
10 solve the overwhelming difficulty. Box
action may he required In the developmcn
of the internal resources OF tho county
but Il should b. guarded. Let ~ arswc
tho question before the wiH''T Is over
"can We pay what we owe
Tng Washington bureau OF the New iorl
T,,b,,us srcus 10 have recently been att.t ky,