Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1875-05-13


weight of debt, and the reduction of that has
been nearly forty-six millions of dollars More
than twenty seven millions of this reduction
have been effected since the year 1870 under
the operation of the funding law, which was
purely Republican measure, opposed by
every Democrat and Liberal, and ridiculed az
impracticable and absurd by every self-sufi-
cient journal in the interest Of the money
lenders, gold spectators, tight money"
cliques and sorehead Republican politicians.
This funding scheme is still at work, steadily
reducing the load of interest, and should the
Republican party remain in power for the next
the end of that time, be gradually reduced to
near five millions. No portion of the debt
has yet been funded below five per cent, but
the ability to place the ur-and-a-half and
four per cent bonds will be demonstrated in
time; and in fact the funding scheme will
evidently be persisted in until no portion of
the debt shall bear more than four per cent.
interest. In fact no measure enacted by Con-
gress has been more unjustly attacked or un-
der-valued than the funding act. Although
the process seems to be slow, the tremendous
crash of 1873 and the endorsements ensuing
must be held to have been sufficient to account
for that. Under the circumstances it is e1-
traordinary that the revulsion did not put
stop entirely to the funding.
When the funding acts was pending in the
Senate there were many who were Jealous to
allow no higher rate of interest on the debt
than three per cent, an attempt to enforce
which would probably have been failure, IS
reduction from six per cent. to three was too
sudden. Experience has proven that the re-
duction to five per cent. is practicable on the
whole of the debt. And if that were ell done
it would be found equally pratical to fund the
maturing debt in four and half and four per
cent bonds. No matter how much public
men may discuss the advissbility of leaving
the debt for posterity to pay, the people will
not rest satisfied unless they see the load reg
ularly diminishing. Even supposing that
Democratic national administration should
load us.up again by assuming the State debts
and squanderlng more millions on war bounties
and claims, the first return Of the Republicans
to power would reduce the aggregate again.
According to the above table President
Grants administration and the Last portion of
Johnson's have reduce the debt to the extent
of $544, 491 1926. Ours is the only great nation
thus engaged in the gradual and unfinching
liquidation of its debt month after month and
year after year. If the Treasury Department
has not in hand the collossol task of preparing
for the restoration of the specie basis and the
resumption of specie payments, the arrange
ment for placing the four-and-a-half and four
per cent bonds migth easily be perfected, and
although it is Objectionable to have all the
negotiations carried on in Europe, it is salts
factory to know that the course of trade is
steadily bringing the bonds home again. When
the funding scher.e was enated by Congress
the annual interest was $129, 235, ,498, srn the
President, in his annual message, estimated
that by this act the interest could be reduced
to ninety millions and there stopped. But it
will be perceived that the interest is reduced
already to $91, ,OO2, 161 without getting below
a five per cent. rate. These are figures worthy
of the attention of rejecting citizens, business
men, taxpayers and property owners, at a
time when the Democratic party is seeking to
obtained power as the advocate of deterrent
and opposite policy Philadelphia North
American.