The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-02-18


stafes except Mississippi taught by exi,e.
Renee that ahonesty Is the best policy
long since removed as far az possible the
stain of repudintiofl by redeeming their dis,
bonored obligations; but the shock which
American credit received has never been
forgotten, and never will be while the power
remains to repeat it. In fact, its repetition
IL being enacted In other States to-day, and
who can foreseo its ertent or limitation!
The alarming attitude Of portion OF the
people of several Of the States upon the SUD-
icct of State Indebtedness should awaken
the gravest apprehensions of every patriot
and statesman. The discase which affiicts
portion Of the body-politic is contagious,
and NAV extend its rayage5 to the whole. Ii
the solemn obligations Of States can be re-
pudiated, why cannot those OF the Nation ID
like manner and for like causes be set aside
There is danger ahead unless an effective
remedy be applied. The adoption Of the two
propositions above named would prove
most effectual means to the accomplishment
of the end desired. 1t would at once secure
the withdrawal of all State credits from the
money markets, both foreign and domestic,
and would leave our national securities to
free. untrammeIled competition with those OF
other nations. The only American pubic
securities which would be known upon the
market would be our national bonds, ana
this alone would largely enhance their posi-
ton and strength. The constitutional pro-
bibitiou upon the States from again mourning
extravagatit expenditures in aid of what are
popularity styled "public Improvement"
would be guaranty not only to the people,
but to CAPITALISTS, that the disastrous conse-
ouences to public credit thereby caused III
the past as well as the present would not
again occur. Again, US the people are re-
lieved from State taxation, in correspond.
ing DEGREE will their ability TO respond
to national requirements increase. ana
this 4 true even should there be no increase
of prosperity. But who can doubt that the
permanent removal oil all the burthens OF
State indebtedness from the people would
stimulate and enhance their prosperity in an
increased and increasing ratio! Not only
would the buTthelis Of national taxation d1.
miniSh as prosperity increased, but nations,
credit would rise and strengthen rs Its basls
was broadened and fortified by the univer-
sal thrift of the people. But not alone in
these respects would our national credit be
benefited. The extinction of State indebt-
edneSs and its Introduction for the future
would place our national credit upon so
firm and enduring basis that in a few years
our whole debt might be funded into
new bonds bearing no higher rate OF IN
terest than the public debt Of England. The
annual interest which might thus be saved
would soon extinguish the entire State in
debcdness assumed by the Government.
The reduction of the rate of interest upon
our public debt is ga contamination de-
youtly to be wished" not only because it
would secure corresponding reduction in
tariffs and taxation, but for the more potent
reason that until that shall be accomplished
high rates Of interest must prevail upon all
other credits. SO long az the Government
is borrower in the market at high rate of
interest so long will money command q
mqher rate of interest upon all other securi-
ties. You may fill your statute-books with
the most rigid usury laws, you may solemnly
decree 1t a capital offence to take more than
4 given rate OF interest for the loan of money,
vet so long as the Government is q borrower
at a higher rate, that and not your statutory
rate will control. The price of money, like
that of every other commodity, is controlled
BY higher than statute law-the great ld,c Of
SIMPLY and dcn1Gnd. When the supply ex.
ceeds the demand. money will be cheap;
but when the demand exceeds the supply,
high rates of interest will obtain. When the
demands of the Government are so much in
exec of the supply as to compel it to pay
high rate Of interest, all other demands will
be supplied, if supplied at all, at just so much
higher rates as the securities offered are con-
sdercd inferior or less desirable than those
Of the Government. The rates Of interest
upon all securities, both public and private,
are too high in this country. They oughtto
be and must be reduced, or financial disaster
will sooner or later inevitably overtakc us.
But the true. if not the only feasible. mode OF
comprising this end Is to begin with our pub
lie securities. Reduce the rate Of interest
upon them, and all Others will follow i'll their
wake. How this commencement may Gc Sue
ccssfully made, and how the end desired c1n
he the most surely and speedily attained, |
have, trust, partially at least, ii not fully
and successfully, demonstrated.
III discussing the advantages to our IA
tiona credit whicl, would accrue from the
action proposed l have necessarily antici-
pated some of the benefits which would re-
suit therefrom to the people Of the States.
4 high national credit is a great blessing OF
itself; and one participated in by all of the
people. SO, likewise, arc low taxes, tariffs,
and rates of interest, all Of which may he APP
proximated through the instrunentaIities
mentioned. But one of the principal as well
US more immediate advantages which relief
from the great incubus OF State debt will Sc
cure to the people will be found in the
almost universal revival and increase Of the
productive industries Of the country. The
entire body-poltic will be relnvigorated and
imbued with new life and new energy, and
our industrial and financial Interests will
eravitate towards 4 soHndcr and healthier
basis. The wealth Of the country
will be employed i'll the develop
ment Of its resources rather than III Specu-
hting upon its necessities. and mining, manu-
facttring, and commercial enterprises will
be successfully inaugurated everywhere.
Freedom from heavy local taxation and pro-
lection against it in tie future will prove
one of the highest inducements for immIgra-
ton and the influx Of capital. Especially
will these results be realized in the southern
States. The losses in values 10 Tie people of
these States by the late war were probably
equal to if not greater than the present total
amount of the national debt, and they
emerged from the fearful ordeal stripped OF
nearly all their possessions save their desc.
lated lands. But their debts remained, and
have since been largely added to both by TN
paid interest and the creation Of new debt,
until to-day some of them are forced into a
condi; ion of dishonor In consequence Of their
inability to meet all their liabilities. And
while they have partially recovered from the
social difficulties, political embarrassments,
Il "a.