Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1873-02-27

protect theirs? Why it is more than
probable that; measured by the depres-
sion and CONSEQUENT discount upon our,
securities caused thereby, we have paid
several times over the dishonored debts
1 Of those States II is true, and be it
said to their honor, that all of these
States except Mississippi, taught by ex
peIience. that honesty is the best poll
cy, long since removed as far as pos
stole the stain Of reputation by re-
.ieeming. their dishonored obligations,
but. the shock which American credit
received has been never. been forgotten
and never will be. while the power re-
mains to;repeat il. In fact It's. repeti-
I ton is being enacted ii other States to
day. and f3rosee its eete,st or limitation?
The alarming attitude of a p' rtion upon
the people If several the States upon
the subject OF State Indebtedness
should awaken the grayest apprehen-
slons. OF every patriot and statesman
i The disease which attlicts a portion Of
the body polite is 6 ntagious, and may
extend its ravages to the whole Ii
the solemn obligations Of states can be
repudiated, why cannot those Of the
nation III like manner and for like
causes be set aside? There is danger
ahead unless an effective remedy be
applied The adoption OF the two prop
ositions above named would prove {
most efeetnal means to, the accomplish
,nent Of the end desiied It would al
once secure the withdrawal of all State
credits from the money markets, botl
foreign and domestic, and would leave
our national securities to free untram
melled competition with those OF othel
nations: The only American publ,
securities which would be known upol
the market would be our national bond.
and this alone would largely enhanc.
their position and strength. The con
stitutional prohibition upon the States
from again mourning extravagan
expenditures, in aid Of what
are popularity styled public improve
ments," wogld be guaranty, not onl,
to the people, but to capitalists, thai
the disastrous consequences to pub
lie credit thereby caused in tht
past as well as the present would moi
again occur. Again, the pc pie arr
relieved from State taxation, in cor
responding degree with their ability t.
respond to national requirements in
crease. And this is true even should
there be no increase of prosperity. Blu
who can doubt that the permanent re
moval of all the burthens of the Stat,
Indebtedness from the people woult
stimulate and enhance their prosperit,
in an increased and increasing ratio
Not only would the burthens Of nation
al taxation diminish as prosperity in
creased, but national credit would rist
and strengthen as it's basis was broad
ened and fortified bv the universal
thrift Of the people. Bat not alone il
these respects would our national credi,
be benefited. 7 he extinction ef Stat,
Indebtedness and its Introduction for tht
future would place our national credit
upon so firm and enduring basis, tina
in a few years our. Whole deb
might be funded into new bonds
bearing no higher rate Of inter
est than the public debt of England
The annual interest which might thus
be saved would soon extinguish The
entire State indebtedness assumed by
the government. ..-,
The reduction Of the rate Of interest
upon our public debt is ia eensumma
ton doubly to be wished" NOT only
because it would secure Il correspond
ing reduction in tariffs and taxation
but for the more potent reason that I'm
til that sh.,ll be accomplished, high
rates OF CT interest must prevail upol
all other credits. So long as the gov
eminent is borrower in the high rate
ofinterest SO long will money com
mand higher rate Of interest upon all
other securities. You may fill YOU
statute books with the most rigid usu
~ laws, you may solemnly decree it ;
capital offence to take more than a eiver
rate Of interests for the loan Of money
yet so long as the government is Dor
rover at higher rate, that ard moi
your statutory rate will control. The
price Of money like that of every com
modify, is controlled by higher than
statute law-the great law Of supply
and demand When the supply ex-
ceeds the demand, money will be cheap
but when the demand exceeds the sup.
ply high rates Of interest will obtain
When the demands Of the Government
are so much IN excess Of the supply as
to compel it to pay high rate Of in
terest, all other demands being sup
piled at all, at just SO much higher
rates as the securities offered are con
sidered inferior or less desirable thar
those Of the Government. The rates Of
interest upon all securities, both public
and private, are too high in this coun-
try. They ought to be, and must be
reduced, or
FINANCIAL DISASTER
will sooner or later inevitably overtake
u.s. But the true, if not the only feast
bic mode Of comprising this end, is to
begin with our public securities. Re
duce the rate of interest upon them and
all others will follow in their wake.
How this commencement may be sue
cessfully made, and how the
end desired can be the most surely and
speedily attained, have, l trust, par
TALLY at least, if not fully and success
fully demonstrated.
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