Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-10-22

clouds Of reconstruction en-
veloped tie South, and all looked dark,
we suggested a forlorn hope: When
exhausted the substance
and credit of both States and nation,
it would die through want of further |
food for corruption. After there was
no more to steal, that party would |
give up the business of government as
improbable. The orange squeezed,
they would leave the peel for the De-
mocracy,
Such a crisis has about ar
rived The credit of State after
State has been stretched to the crack
ing. The money markets Of the world
are closed against and further bonds of
Southern States, however badly we
might need help in some unforeseen
calamity. Practically, the credit of
the United States also, is exhausted. I'VE
say practically, because the people will
not listen to any fresh issue of bonds
during this generation, and will de-
mand imperatively of their rulers that
expenses shall henceforth be kept
rigidly within the receipts.
What we have seen on small scale
in Tennessee, will be enacted pari pasSu
on the Federal arena. The Radical
party piled up an onerous debt difficult
to manage; the Democracy fall heir to
depleted treasury, and begins thework
Of rebuilding the wastes under the
most difficult circumstances, being
hampered from the outset with this
legacy Of Radical corruption and ex-
travagance. Such Is the status
of Tennessee, and such is
the transition stage upon
which the whole country is entering.
In the nation, as in the State, it will be
found a strenuous task to maintain
government credit, and to adjust the
claims and clamorsof contending inter-
ests-the unfortunate antagonism, SUI
perinduced by Radical misrule, be-
tween producing capital and accumu-
lated capital. As the vista opens of
Democratic restoration, we are frank to
say that the task before it Will prove
Herculean one, demanding the utmost
wisdom. moderation, and, at the same
time, frmness.
We think it will retard rather than
help us to ignore any of the ugly ele-
ments presented by the problem of
national finances, and are, therefore,
disposed to give each its due weight,
regardless of theories, as 1t arises. The
intimations of uneasiness in Europe
about American securities of all kinds,
and their consequent return to this
country, is calculated to arrest thought.
The movement applies to railroad and
State bonds more than to United States
bonds at present, but the latter will
follow soon enough. If the States are
distrusted separately, they will soon be
distrusted collectively. The amount OF
these bonds sent back to this country
Will absorb so much Of cur
capital-decreasing by that amount our
active producing capital and our means
of earning. 1t would enlarge among
us the bond holding, non-prOducing
classes, which are already too large.
1t Will glut our home markets against
new home enterprises. There are DIS
advantages about debts held in foreign
countries and draining us of interest,
but, on the other hand, there are ad-
vantages when the rate of foreign in
terest is lower than prevails among
ourselves. Besides, this uneasiness IN
Europe defers, if it does not prevent,
our following the example of England
in reducing the rate of interest on her
debt to three per cent, or less.
We see nothing to be gained from
Disgusting the fact that leading Repub-
licans in the Eastern and MiddleSta
are endeavoring to rally the moneyed
interest against the Democracy on the
ground that its success involves repu-
diation. Heavy work is now being put
in, to snatch from us control ofthe next
House of Representatives on this plea.
These leaders do not hesitate at distor-
lions and demonstrations. Even In
the West We find the following version
of ex-President JOhnson's speech given
in Memphis special to the Chicago
Times:
He the ex-President warmed with
the subject of the public debt of the
State, first advocating a reputation of
half, and finally, seeing it suited a ma
jority of the audience, going the whole
hog" He touched lightly upon the
national debt and third term, declaring
that if the former is not repudiated,
the entire laboring population Of the
community would become slaves to a
moneyed aristOcracy.
The Times isneither a Democratic nor
a reputable paper, but it enjoys an
enormous circulation, and such mis-
constructions deserve refutation. We
feel sure that when the Democracy
comes to manage the country and its
debts, it will do so honestly, as between
man and man. Therefore, we think
our brethren North and South should
be active against this attempt toidenti-
fy Democracy with Reputation, since
their stigma Of disloyaity has failed to
stick. We see no reason for carrying
any dead weight into the Presidential
campaign.
The intimidation game Is being