The daily gazette., 1875-05-07
" atiOn0E Debts.
Ex-Seeretary BIcCu1IOch's Third
Letter.


GUS nations Of dealing with their public
debts, and ia of special interest at this
time in this country. He maintains that
the traditional policy of tine United
States has been to commence the pay
| ment OF its debt as soon as the necessity
which created it had passed away. The
national existence was begun in debt,
but the government has been free from
debt twice since the colonies became q
nation. At one time not only was the
national debt entirely extinguished, but
the accumulation in the treasury, aris-
, ing almosc exclusively from customs du-
ties, was 30 large that relief could only
be found by distribution of the sur
plus revenue among the States. The
actual debt of the United States, ad.
Justed and unadjusted, at the period of
the disbanding of the Federal army, Mr..
McCulloch estimates at not less than
5000, ,000, ,00O, and on the LIST of March
last it was $2,137, ,315, ,989, the reduction
in nine and half years having been
$s6z. .684 oil, or at the rate of over $780,
0OO. 900 per annum. He expresses his
conviction that no judicious taxation,
the object of which is to reduce the pub
lie debt, and which does not affect inju-
rlously the industrial interests of the
country. will ever be regarded as bur-
densome by the people of the United
States. He adds:
"Ihe Secretary of the Treasury, in his
report Of December. 1855, undoubtedly
gave expression to the true sentiment of
the people when he said The debt is
large, bat If kept ut home, as it is desir-
able it should be, with judicious sys-
tenn OF taxation, it need not be oppres-
sive. 1t is, however, debt. While it
is capital tp the holders of the securi-
ties, it is national debt and an incum-
brance upon the national estate. Neith-
or its advantages nor its burden are or
can be shared or borne equally by the
people. It's influences are anti-republi-
can. 1t adds TO the powers of the ex-
ecutive BY increasing federal patronage.
I 1t must be distasteful to the people, be-
cause it fills the country with informers
and tax-gathers. 1t is dangerous to the
public virtue, because it involves the
collection and disbursement Of large
sums OF money, and renders rigid ma
tonal economy most impracticable. 1t
is, in o word, national burden, and the
work OF removing it, no matter how de-
sirable it may be for individual invest
ment, shou id not be postponed. AS all
true men desire TO leave to their heirs
| unincumbered estates, so should it be
the ambition of the people of the Uni
ted States to relieve their descendants
from this national mortgage. We need
| not be anxious that future generations
should share the burdens with u.s. Wars
are not at an end, and posterity will
| have enough to do to take care of the
| debts OF their own creating"
Mr.. McCulloch quotes further from
the Secretary's report of 1867, urgir Q
that without oppression of indust y
IN n IN M ho haf Al
ration OF the present century, and
adds,
lit is to be hoped that nothing will
occur to cha ange the policy of the gov
| ernment inaugurated at its birth and
steadily continued to the present time.
Admitting even that it may be ne 'ther
neeaful nor desirable that the nat oral
debt should be entirely extinguished
that certain amount of .governmeul al
securities will always be required to
secure the circulation of the National
Banks, for public and private trusts
&c, &C., il will be some years before
the debt will be 30 reduced as to rem.
der it necessary to inquire what amount
of public securities will be needed fol
these purposes, and whether or not the
point has been reached below which
the reduction should not be carried"
| Of foreign nations Germany is free
from debt, Belgium and Holland are
rapidly reducing their debts, and
Great Britain is moving in the same
direction. Since. 1916 England has re-
duced her Indebtedness $5( J, ,000, ,O0O
from Its highest point. So rapidly has
the income of France increased that,
notwithstanding her vastly argument
ed debt, the annual charge to income
is not greater than when her debt was
less than one-third of what it is at
present. Some nations instead of re-
ducing are increasing their indebted
ness. The aggregate of these debts,
exclusive OF those of counties, cities,
tow ls, &c. is upNa of twenty
thousand millions of dollars, four-flfths
of which have been contracted within
the present century. In some, perhaps
most of the heavily indebted nations,
however, the increase of income has
kept pace with the increase of debt,
and ia few instances largely exceed
lit. Individual wealth has so greatly
accumulated of late that there has been
an increasing demand for desirable
securities, and national obligations are
regarded Of this character. Thus it is
that nations are enabled to borrow and
from the ability to borrow arises the
temptation MIR. McCulloch practi.
cally observes that he has heard it in.
timated that the existence of some
States only become known to the ma.
jority of English investors by the ap.
pearance of their loans in the market.
A national debt is by no means ma.
tional blessing. With nations as with
individuals, the philosophers stone as
once declared by an American states
man in adebate in Congress, is to "pay
as you &c" In addition, the thrift
and economy of the individuals of O
country are intimately onnected with
public credit. The population of the
United States are as capable as any
other of exe ercising these qualities, and
have only 10 resolve that the national
faith shall be maintained inviolate to
secure the good name and prosperity
of the country.-Balt. Sun.