, 1873-10-02
THE EGoVERNMENY'ss SHARE IN THE FINAN'
CIAL CRISIS,

s.ss.~..w...-.-..x.- s.ss.~..w...-.-..x.-
THE aoVERNMENT'Ss SHARE IN THE FINAN-
CIAL CRISIS.
In considering the cauHos, connoquoncos and |
responsibility for tho present financial ombar-
raBamont of tho country, tho responsibility Of |
tho prosont Administration should not 10 oyor-
looked nor forgotten. The destruction Of prop
orty by tho war was Of course IN i1umonso and
necessary loss to tho country, and hal to DO
made good from future production Tho cntiro
cost Of the war WAS paid by tho pooplo at tho
time, minua tic small amount borrowed from
abroad. Tho existing war debt represents capi-
tal furnished by Tho pooplo during tho co1,tiuu-
ance OF tho war and destroyed. Tt is fact, not
generally understood, that tho cntiro cont OF the
war waa furnished by tho pooplo bo-
foro tho last soldier was discharged
When tito war closed, tho country needed all
tho toliof consistent with tho maintenance
OF the nasionnl crodit. But tho Government, in
atoad OF furnishing such roliof. kept tho aorows
Of taxation Us tight aB possible. Tho war debt
stood at s to por cont interest, which was tho
exact measure Of tho burden upon tho people.
In tho struggle to rocovor business, rcVivc in
dustry, and incroaHo production, tho people had
mood Of all tho capital thoy had loft. In thoir
hands, and turned over two or throo tmos year,
1t was worth 20 por cout, while 1t coat them for
interest on tho Public Debt less than 6. THO
Secretary Of the Treasury, ignoring tho history
OF otnor governments, und blind to the wants of
tho country, rolentlcssly oxnctea Of them
800, ,o00, 900 ycar to apply On tho principal Of
tho tlobt, thereby depriying thom Of the profits
thoy would lnso mado from tho uao of tho
money. and roally increasing tho annual burden
of tho debt from or per cont to 10 or 12 por
cont. Sword in hnnd, Us It wore, ho corflscatod
ann,al1y hundred millions of property NODDED
by tho people in their daily business.
In order to nuke tho point moro clear, wo
will tako tho caso Of joint-stocl company Of,
eny, 100 poreonB, organized to build Il rail-
road, MI tho Stockholders being personally
liable for its debts. Tho company itself haa
bottor credit than my Of It's individual members
It rataos q portion Of tho necessary funds by
stock subscription (Which Ia analogous to
| ta1ation). It thon issues It's bonds
for tho remainder, and those arc taken by haif
q tlozon wealthy members, and thus tho road is
finished. Tho whole cost las boon supplied by
tho individuals composing the company during
| tho continuance Of tho work. Tho rond, VIC will
SUPPOSE is as unproductivo rs war, or ns tho
| Northern Pacific. THO individual monabcrs nre
Jointly mud soyeraly held for tho bonds. Tloao
bonds draw W per cent interest, and Tho hold
crs Of them, having confidence in tho security,
aro not ouly content with tho inveHt-
mont, but anxious to haro it remain
uudisturbed. Tho great majority Of tho Stock
holders, bong mon Of limitol MEANS aud having
already lost Whit they had put into tho ontor-
PRISE and being engaged in pnrnnit8 which
yielded them 20 por cont OIL their caplthl conf
pounded, aro thcn aaseBsod by some Executive
Committee to Immediately commence paying OF
tho bonded dobs, Which. draws only 6]1 per
cent interest, and t1lls, too, againat tic
protest Of tho holders Of tho bonds.
What kind Of fnancicring would that be
called How long would that Executive
Committee continue in power? Lot alone the
fact that many Of tho members must borrow
money at 10 per cont In order to pay dobt
drawing only 5}5 per cont ia 1t not cloar tha1
thoro is an egrogious waste OF capital In thf
oporation9 Tho rapid accumulation of capita
in country is promoted by allowing each por
son to mako tho best uso he Gun Of Ills own capt
tai. It Is retarded by my sort Of doVernmon
Interference which either cnusoa ono nnn tt
nay in the why of taxation moro than il
necessary, or another man to receive In ths
way of disbursements moro than he desires tt
receive moro than, n his own Judgment, u
CON talso caro- Of as we'll as 1t Ia already tako.
caro- OF. This, it may bo sail, is IN argumon
againat over paying OF tho National Debt. 1'h
argument in fayor OF paying Off tho Nationa
Debt at low rnto of interest with money which
in tho hands Of the people, brings thom big
r rate Of interest," is not tho economic argnmcn
[ Of all. II is o political one, patriotlo ono,
spread-cnglo ono, q topic for Fourth 0
, July orations. It cnn hardly bo aald to havo a
j economic sido. Aud eyon il tloro is anything t
bo said on TINT eilo, It has no relation to til
] present iesuo, which is this Whethor 1t is wis
, to tax pooplo who hayo undergone 30 tromon
tous strain Us the War OF thu Rebellion, at til
q rato Of ono hundred millions Of dollars per yea
y over aud above tho necessary expenses Ut til
- Government ? To do 80, wo maintaiu, was O
n ogrogioua blnndor.
J, Nor was thia blundor compensated by an
|. caroful aud economical! expenditure Of tho publ
d money. Tho administration Of tho Goyornmes
It has boon marked with protligaoy and rooklos
O noes that has had no example sinco the days {
T. Lucnllua. Tho legislation Of Congress- has bee
q directed to squandorlng tho national do1nai
Ia upon adycntu,crs md spectators and encou
n aging them to build railroads which aro nj
n wanted. It has oroctod extraVagant publ
Al buildings all over tile country, nominally Fl
It commercial purposes, but really to place at Il