The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1874-10-08

against involving the credit OF the COm-
monwealth itself. This remedy'has been
| tried however. In Illinois the Constl-
tuition limits both the rat of taxation and
the debts of municipalities, and pro-
posed amendment to the Constitution of
Louisiana to the same effect is now pend
ing and will be passed upon at the next
election. But experience has already
shown that departure from the rule OF
broad generalization III constitutions
leads to difficulty and necessitates frequ-
ent amendments and even to entire re-
modelling of the organic law. The mar
velous growth of cities In this country
renders it quite impossible to leg1state
! for them much in advance. Emergencies
arise which demand the expenditure OF
vast sums of money, and these are often
SO pressing as to commend the levy OF
exceptionally heavy taxes, or the use OF
extensive credit to the unanimous as
sent of the people. Chicago is an in
stance in point. The merchants of this
city are threatened with the withdrawal
of one of the great safeguards OF bust
ness-fire insurance. 1t may be neces-
sary to raise by taxation Or loans very
large sum of money to defray the cost
| of additional protection to property
against destruction by fire. But the
municipal rate of taxation and the
amount of the debt permissible have
been limited by the Constitution OF the
State, and the limit has been reached In
providing for current expenses.
The rule laid down by Jefferson is
| quoted by MIR. Blaine, with approval.
It is as follows:
Never borrow dollar without laying
a tax at the same instant for paying the
interest annually, and the principal with
in given term; and consider that tax as
pledged to the creditors on the public
faith. On such pledge as this, sacred
ly observed, a government may always
command on reasonable interestall the
lendable money of its citizens; while the
necessity of an equivalent tax is a salu-
tary warning to them and their constitu-
ents against oppression, bankruptcy, and
its inevitable consequences, revolution.
It is doubtful if this rule, admirable
when applied to all private commercial
enterprises, can be rigidly adhered to In
a case of municipal corporation. Taxes
can only be levid from year to year, and
if, after providing for the interest on a
given loan, an addition tax is levied, col
tums of money accumulate and are con-
troIled by public officers. This is an in
ducement to corruption, and is therefore
@ dangerous expedient. Nor does it
appear to be unjust or unwise to mort
gage to certain extent the vast public
improvements necessary to great cities,
and to require of the successors of the
generation making them payment Of the
debt.
Mr. Blaine, notwithstanding his totals
of Indebtedness against the nation,
States, counties. cities, and towns are
somewhat startling, takes hopeful view
of the future He furnishes totals of
present wealth, growth of wealth in the
past, and estimates of the prospective
increase of population and growth of
wealth, which not only tend to allay any
fears of bankruptcy but give promise of
vast accu,nulations in the future. But
evidently astonished by his own ffures,
he says:
'sThe INJURY is pressed home to us,
Why, in view of our enormous income
and earnings, are we such a borrowing
nation? If we earn and receive more
each year than Great Britain, or France,
or the German Empire, why are we bor
rowers from them? Why do they, and
not we, hold the bulk of our national
securities, besides SO vast a proportion
of STATE loans and railway indebtedness?
The question is a serious one, but the
answer is easy. 1t is simply because zoe
spend more lGvishly than any other ma
ton IN the aoorld. Our people live better
and live faster, have more abundant food
and better clothing, more expensive
houses and furniture, and outfit and equi
page than those of any other nation in
the world. So that with all our enorm-
Gus income we save far less than some
European nations whose gross annual re-
ceipts are far below ours.
1t may be-in fact, is true that the
Americans are q lavish people. But
this is not the sole reason why we are
largely In debt to foreign nations. In
Europe the land is subdued, the canals
are dug, the railways are completed, the
parliament houses, the halls of assembly,
the cathedrals, the palaces Of kings and
emperors, the hospitals, the asylums, the
treasures Of art, and dwellings, of rich
and poor are already constructed. The
farmer has fenced his fields and finished
his barn, the mechanic has his shop, the
manufacturer paid the cost of expert
menting long ago, and the merchant
carries on business in Tire warehouse oc-
cupied by his ancestors scores of years
ago. In a word, the Englishman, the
Frenchman, and the German have each
inherited an estate, while the American
has just come of age and engaged in bus
mess, without penny to his name"
He pledges his pluck, energy, and in
dustry to Europe for the loan of its ac-
cumulated savings. This is the secret
of the debtorship of the United States
to all the world.
Mr.. Blaine has collected vast mass
of very valuable information on the sub
iect of which he treats, and his address
Will constitute a valuable addition to
the library of the statistician.-C Chicago
Inter Ocean.
! LEATHER PAPER.-Profcsso David
owski, an Austrian, has succeeded in