The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1875-10-28

Adding a round S00,0o0,e06 fo
the smaller debts, gives the grand
total IL s23...50, 100000 - above
sisted. 1t will be seen that the an
nual Interest charges upon the TWEEN
" countries enumerated is 1912, .5o
900. To this should be added about
-. $4,000 for unenumerated debts
making a total annual charge of q
round thousand million dollars on the
taxpayers OF the world on account oil
iaterest on public Indebtedness. In
the case Of most countries, this charge
is increasing from year to year, as
new CLANS are made to meet dehcien-
cas in the revenues, to carry on wars,
ard for other purposes. Sooner or
later, this practice Of increasing IN
debtedness is sure to tell upon the
credit of the countries concerned.
Capitalists src not particular about
the repayment Of the principal OF
public debts. All they care about is
an assured income, and the ability to
convert their securities into capital
Al any time. Bot OF these things
tlev eauno; be entirely conf3en. IN
the securities of countries which are
increasing their liabilities constantly,
especially if they are contracting
debts To meet ordinary expenditures.
as NJ The case OF Italy and some other
countries. If the people OF coun-
Try are unable 10 support their gov
eminent in ordinary circumstances,
much less will they be IN time Of
war or public calamity. Aud their
ability to pay interest must IN time
be transcribed.
Then will follow Reputation, the
10 al loss Of credit. and the necessity
Of meeting expenditures IS they
arise bv taxation. This is not IN
likely to happen in the cases Of Italy,
ard Spain al no very distant day.
/. will be observed that the three
larres; national debts are those Of
France, England aud the United
States, three countries Of the world,
with perhaps the exception Of Ger
maayl which are best able TO bear
the burden of Indebtedness. They
owe more than AL per cent. Of the
whole, and they are probably quite
as able ~ carry the load, as the rest
OF the world is able 10 carry the re-
naming 55s per cerL England it Is
well-kno~n, Is able to carry her own
load. and large share Of the load
belonging to other countries besides.
France is distinguished above all
her nations for frugaliiy and anan-
ciai skill, and although she required
temporary assistance in paying the
German indemnity, il abundantiy
ale to support her own burden. The
Inited States Is also able 10 bear its
barleu. but finds il more economical
a. present to borrow in Europe. The
prospect, Of this country are brighter
than those Of any other, and in thirty
years ii VIII probably have cleared
eff. At least half Of It's present debt
il it should be so fortunate as to re
main at peace with the world.
The average per capita in1eh' j
ness of some Of the principal couu
tries is as follows:
Great Britain owes for each inhab
liant $40; France sl2l; Spain sos
Holland sloo: Italy so: the United
States sj5; Austfi4. $40. Brazil. s4l
Mexico, $50: Germany s25; Russia
s22; Turkey, E2A.
Some II those which stand highes
in the list with respect to per capt.
Indebtedness, as England and Franc
enjoy the best credit. while som
which stand vel down, as Austri
and Turkey. rank the lowest in poin
Of credit. Population is a compars
lively unimportant element Of publ
credit.
" A standing in the Market" or tn
familiarity of investors with the Sc
curities of country, is a more i'm
portant element, and the character {
the people, in point Of honor, thrift
enterprise and skill, in public fluan
ciering, is still more important. Eng
land owes nearly twice as much pc
capita as Italy, and vet she can BOZ
row on more favorable terms. Th
reason is that England enjoys hig
reputation for wealth. honor, an
financial skill, and usually exhibits
surplus of revenue over expenditure
while Italy does not enjoy so high
reputation, and always has to pro
vide for deficit by borrowing. An
the like comparison might he institu
ted between France and Austria, HoI
land and Turkey, and 40 on.
1t should be observed that tn
rates Of interest set down in th
above table as actually paid by tn
different countries enumerated ar
generally somewhat above the rae
at which they are able to borrow il
the money markets. This NAV b.
due in part 10 declining cIedi, or in
ereasing pressure upon the loan mar
ket, but it is chiefly attributable t,
the to he fact that issues of pape
money, bearing no interest, are inclu
ded in the different totals in indebt
edness. Thus the rate actually pal,
by the United States is II per cen,
As matter OF fact the greater par
of our debt bears interest at the rat
of 6 per cent. and no part of it ex
cept the navy pension fund of Sl4,
600, 900 bears less than ) per cell,
But s3SO,050,00o of grecnbacks in
cluded in the total debt brings dow
the average interest actually paid t.
II per cent. And the like is tru,
with respect to other national debts
The rates at which some Of the lead
ing countries are able to borrow a
present. according to the quotations
On the London stock exchange, are
stated by the Budget as follows:
"England, 5. per cent India, !
ger cent; Holland, 4 ! per cent. Can
da, Al per cent; Australia, 4 per
ent.; United States, 5 per cent;
range. 5 per cent; Russia. 8 per
enr.; Russia. 5 per cent; Brazil, 5
~ oany italy. s psr cent: P0rfu.