The New York herald., 1874-10-02


the luture. And wnat is true OF your State
no less true oi your sister States OF this grei
section. Taxing the seven great States OF u
Northwest. and with an aggregate population
more than 100000 and property worth owe
$1,000, oOo 600, Their COMBINED state debts are e:
than $4,000 600. Had these great Commonwealth
exercised as prudent care against county al
municipal debt they would present to-day th
most natterlng balance sheet, venture 20 say, {
any civilized communities on the face OF the glob'
nave no patent remedy 10 propose, and yet
venture 70 suggest that the Legislatures of man
states have altogether 100 large power 20 Great
debt without referring the subject TO the peopl
Tor their primary consideration. Perhaps ma
entertain reludgment on this particular phas
OF the question In favor OF the stringent provls OF
in tue constitution OF my own state. where IN
except Tor war purposes, under the pressure o
acua danger. anu where an amendment 70 tn
constitution, proposed by two-thlrds OF sne aegs
is the prerequisite or pledgng the credit Oh th'
State lor any other purpose whatever. ,,,.,or ;,
Ii might also be a wise and salutary provision x
define IN State CONSTITUTIONS the precise enus io
which municipal credit suoald be used-llnitihe
those to proper and restricted objects anu lor
bidding in any event the creation OF a debt beyond
a specified percentage OF the onlcA valuation
the city or town; providing at the same Time u
judicious safeguard against the overlapping o.
county debts, so that wni e the town was guarding
It's credit with care II should not be involved Ia the
embarrassment caused by an extravagant eAteA-
sion OF the credit OF the county. ,, :
4 And tnally as a governing principle, II would oe
debts the Wise precauuon contained in that IA.
nous and well-remembered rule lalu doWn " mi'
\ jefferson the basis oI al SOunu udLIoudi ClCutt
/ quote the words OF the great phlosophlc states-
man as equally applicable 70 al possible lorns ol
public obligation, and as anordtng oasls a. once
secure Tor the creditor and Advantageous ior the
deotor:-
Never borrow a dollar without laying a tax at the
priaeipa Within given term and consider that tax as
pledged the creditors on the pablie faith On such
always command, on reasonable interest all the lend
eqGivaent tax is salaary warning them and their
constituents against oppresson bankruptcy and Its IN
But, gentlemen, looking at the serious side OF
this question with the gravity which is becoming,
let US not be led Into gloom or despondency or
disbursement OF any kind Whatever. Thongn
our burden be great we are abundantly able to
bear 1t and TO prosper and grow strong under 1t.
Our progress In population and In wealth Is so
rapid that the debt which weighs upon Us to-day
is light as a leather tomorrow, and II we can but
exercise the ordinary prudence Of sel-preserva-
ton our future people wl far surpass in
power and In riches the most extravagant cacu-
laions based on our progress In the past, wonder
ful as tnat progress mas been.
1t Is but elghty-nve years since our government
was organized, with population of less than
thirteen states not exceeding $500, 900, ,ooo-
scarcely one-na OF the actual wealth OF your own
cation were then greatly restricted manufactures
and the arts were IN ieeblest infancy agriculture
was rude and not highly remunerative because its
handmaid. commerce, had not been quickened
into lie and vlgor Property at that time
was iii adapted to bear taxation, pronts
se Sw snd o a
and capacity of the country IL seemed utterly
unable to carry DEBT OF any considerable
magnitude. And yet our ancestors did not hesi-
tate to assume the Revolutionary debt or
$50 600, ,000 more than one-seventh OF all the prop
dstrustiul OF all the leading statesmen OF that day
in regard TO the ability or the nation to sustain
the load, was yet willing to admit that 1t could be
easily borne IL the rates OF increase In population
and wealth then calculated upon should be real
tied. 1t may teach US lesson or trust and hope.
fulness TO remember that the highest estimates OF
would
rnan 1900 600 in 1870. and an aggregate wealth at
the same period OF less tnan $4,000, 900 600. Our
prophecies referred to, exhibits ratio
far below the increase OF wealth, which IN
$50. .o0o 000 o00 nearly eighrfod greater than the
anticipai ed increase which Mr. Jefferson had re-
garded as too sanguine. Taking our total ma
amounts to something over $4,000, 000, 900, or
little more than one-tenth OF the entire property
OF the country, as estimated In the census OF 1sO
and probably not over one-ffteentn oil the actual
wealth Of the country to-day. This, you Will OBJ
serve is far less ratio OF debt to property than
the government assumed IN 1890 while our rate OF
increase and our power OF creating wealth tran
scend the same capaclues OF that DAY IN SO large
unit OF measure tnat could give any adequate con-
ceptlon Of its vastneSS.
our enormous productive power TO reject that III
point OF annual income anu earnings we stand to
day at the head OF all the nations, lar exceeding
Great Britain France, Russia or the German EN-
pire. Next to rs, indeed, comes Great Britain
but all the earnings and income OF tnat Kingdom
will not exceed So. 000 0o0, ,000 whereas are IL
excess OF Sc, 600 000, ,000 both reckoned on gold
basis. and botn tables OF statistics quoted from
British authority. Moreover our present annua
rate of increase in income resulting from increase
OF population and or laborers and from improve
meuts in machinery Is about &l20, 900 900, anC
this regardless OF occasional reverses and nnancla
panics is absolutely progressing in sort OF geom
etrical ratio. Many who now hear me Will live to
the population Of this country reach 100 900
and by calculations which VIII err in being toe
small, II they err at all, our annual income vii
then exceed slo VI Ase .,iies , as III
lie debt OF all forms Is to-day.
The inquiry is pressed home to US why, In view
OF our enormous income and earnings are WI
such borrowing nations II We earn and receive
more each year than Great Britain, or France. o
the German Empire, why are we borrowers iron
them why do they ana not we hold the bulk o
our national securities, besides so vast proper
ton OF State loans and railway Indebtedness
The question Is q serious one but the answer Il
easy. Ii Is simply because we spend more lavish
than any other nation IN the world. Our people
1--we better and live faster have more abundant loot
and better clothing. more expensive houses ant
furniture and outfit and equipage than those Q
any other nation In the world. SO tnat WIN al al
our enormous income we save far less than SOM
European nations whose gross annual receipts ar
far below ours. But II for q single decade VIZ
should by any concert oil action live On as econom
icaI a scale III this country as they do In the mos
favored European Kingdoms, or as we did our
selves only twenty-five years ago, we should saw
enough 10 recall every American stock and Bone
from the Golfers OF Foreign Bankers, and shoul'
pay OF with ease our entire national oeDt or
In itself would constitute no small decrease OF IT
burden. II such a return 10 our old habits Oh econ
omy were practicable and practised, and the drai
OF god coin to Europe TO pay interest on ou
bonded Indebtedness were thereby stopped, ven
ture TO atilrm that many problems OF finance, nov
disturbing the people and perplexing the Legls
latOr, would 1nd an easy s0lutlon-nay, would no
even remain to be solved at all.
There is one feature IN our progress TO wnich
have already made Incidental reference whlcf
despite all drawbacks or personal extravaganc
or national Crisis, gives us q solid assurance 10
crease IN population, our increase In property
IN vastly greater ratio. From 1870 TO 1870 gu
population Increased aoout 1000 per cent but ou
property increased about 5000 per cent. In othe
words, our population in 1870 was ten times a
large as In 1890, wnlle our property IN 1870 wa
fifty times as great as 1t was IN 1870. we ca
hardly assume Tor the future that our wealth WI
grow five times as rapidly as our population, ou
think with all the laoor-savlng appliances tina
modern invention Is producing, and win tn
high vantage ground we already possess II
tnat regard, we may safely count on SUCH
rapid increase OF material wealth as VIII, In
\ yerv brief period, render our indebtedness-if
4 be not unwsely increased-an inconsderabl