New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-05
PCBIIC CREDIT.

The subject of Ex-Secretary Mr.. McCullOch's
third letter is the different methods adopted by
varions nations of dealing with their Public Debts
"a question of universal interest and OF growing
importance TO almost every nation in Cbrsten-
dom. Adam Smith, the first edition OF
whose celebrated work was published just
century AGO, larncnts the progress OF
"the enormous debts which OF present OPP
"press, and will in the long run probably
"rn all the great nations of Europe Hume
in motto to the essay, "Of Public Credit"
which he published in 1852, says that one
would incline TO assign q very near period to
the occurrence of a general public bankruptcy,
such IA half o century, chad not our fathers
"prophecies Of this kind been already found
" fallacious, by the duration OF our public
"crcdit 50 much beyond all reasonable eXpccta-
"tiOn.r And he gravely adds hen the astrol-
"ogcrs in France were ~eIy year foretelling
"the death of Henry ", These fellows
Essays be- must be right at last We shall
"therefore be more cautious than to assign
"any precise dale and shall content Ourselves
"with pointing out the event in general" He
concludes the essay with the observation that
tho destruction of public credit is an event
(which reason foresees as clearly almost as
"she can do anything that lies i'll the womb
"of time"
Great Britain at all event. has not justified
the sinister predictions of Hume aud Smith.
Since 1915 England, fortunately, has been en-
gagged in no war OF importance, and has re-
duced her indebtedness 800, 900, 900 from its
highest point Nevertheless. England excepted,
only five other nations have made any figure
in reducing their dobts--llOlland, Belgium,
Denmark Prussia, and the United States. The
other nations afford us examples of all the
evil. which can possibly arise from Public Debts,
ranging from oppressive taxation on the one
hand 10 wholesale reputation with its attendant
nfamy on the other. France, between 1893
and 179s, by boldly applying the principles Of
Mr.. PendetOn and tho maXims of the Imitation
ists, created and destroyed u temporary debt of
no le.s than 1000, 900, 600 Of dSsignais, and
compulsorily reduced her funded debt from
$iSO,OOO,OOO to $160,000,OO0, an event
which is usually spoken Of 10y French finan-
cial writer's as II "bankrtlptcyr This
operation was performed by paying two
thirds Of the bonds in greenbacks,
which greenbacks immediately foil to twenty
cents GU the dollar, AZ measured by gold, and
soon after became utterly worthless. The
effect Of this Wholesale conlisclton was to TO-
ducc to poverty hundred thousand families.
In the long period of depression which fol-
lowed the financial collapse Of 1897 no less
than ten States OF our Union failed to pay i'll
tercst ON the whole OF part OF THEN debts,
breach OF faith on the part of some of them
which still unfayorably influences their credit,
and perhaps indirectly that of the National
Government.
We have, according 10 Mr.. McCulloch. paid
Off about $3.50, 900, 900 Of our Public Debt
since 1865. During the same time We have
reduced tho ANIMAL interest charge from
$40, 100000 to $lO0,0O0OO0. and thus OBJ
tanned permanent release from taxation 10
The amount Of $1O.000,000 Il year Tho