Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-05-09
THE GROWTH OF OUR NATIONAL
DEBT.

mence paying of a debt as soon a
the necessity that led to its creation
has passed away. Twice within tn,
century now drawing to a close, oul
Government has paid up all dues anC
presented a clean balance sheet. Onct
a protective tariff, which was a mere
bagatelle beside the present system
led to such an accumulation of sur
plus revenues that it was distributed
among the several States to prevent
Its becoming a source Of corruption
or Of increased power on the part Of
the General Government. Con.
corning the present national bur.
den, the eI-Secretary says: IF the
debt incurred In the suppression Of the
rebellion was created with extraordi.
nary rapidity, its reduction has been
still o extraordinary" In one
mi this is true, namely, in compari-
son with other countries which support
royal courts and privileged nobility.
In another sense it is not true, that is,
in comparison with the enormous taxes
collected from the people. The debt of
the United States Sept. 1, 1865, was 3d.
757,6S9,571, as shown on the books Of
the Treasury, but Nh. McCulloch esti-
mates that the outstanding claims
against the War and Navy Depart
ment at the disbanding of the armies,
and which were paid direct out of the
appropriations without ever assuming
the form of audited debt, would swell
the real total to $4,000, 1000. The
debt statement Of the first of this
month shows the amount still outstand-
ing to be s2,239, 268, 298-a reduction
Of $3.50, 49, l2 in ten years.
Within the anne ten years,
taking the official reports, starting
with that Of McCulloch in December,
1865, and closing with that Of last
December, embracing actual receipts
for the first quarter of this fiscal year
and the estimate, made before the in
creased tax on whisky and tobacco, for
the remaining three quarters, we find
that the people will have paid into the
Treasury from June so, 1865, to June
80, 1875, the startling total of $685.
This amount exceeds the
original debt by nearly % per cent,
and the extraordinary feature about it
is, TINT less than 20 per cent. of it has
been devoted to eItinguishing the debt
Buchanan's administration was de-
nounced by the opposition of his day
as eItravagant, but with similar eek
travagsnce'' during the past ten years,
the national debt would have been re-
iuced below $1,000, 600, 900 before this
time. That this has not been done, isno
of an honest people willing to pay
their debts, but results from the gross
corruption and miserable mismanage-
nent Of the dominant party. In view
IF the enormous taxes collected we
cannot agree with Mr.. McCulloch's
view that sit is more than likely the
of the debt was for some
too rapid" That the burden of
Federal taxation has been altogether
too excessive, few viii gainsay; but as
money was collected from the peo-
pie, they ought to have more to show
for it in the reduction of an interest
bearing debt. We fully agree with
him, however, that "no judicious taxa
ton, the object of which Is to reduce
the public debt, and which does not
affect injuriously the industrial inter-
ests CT the country, will ever be regard
ed as burdensome by the people Of the
States" The misfortune here
has been that Federal taxation
is anything but ~judicious, and its eff
feet upon industrial interests has been
injurious.
The E~x-Secretary suggests that the
entire extinction of the public debt
may not prove desirable, assigning as a
reason that ga certain amount Of Gov
eminent securities will always be re-
to secure the circulation of the
national banks for public and private
ETC." The idea that the national
bank system may not prove permanent
Ices not seem to have occurred 10 him.
But certainly it must be essentially
modified if not abolished. The logic
hat demands a Government security
ior circulation demands a like security
Tor deposits, and we fear the system
would collapse if this logic were ap-
2ied to it.
Noting the public debts of other
countries, Mr.. McCuIIcch places their
aggregate at upward of $780, OO,O 600, 900,
of which have been con-
within the present century.
This sudden increase he attributes
partly to the funding system invented
'y the Italian States, and partly to the
Increase Of accumulated wealth IN the
hands of individuals seeking invest
nent. No such private fortunes we're
Known in previous times outside of the
of kings and conquerors.
To the multiplicity of Rothschilds,
Stewards, Vanderbilts and like million
.ires in our day, he attributes the com
,~arative ease with which nations now
The money offers, and
hey take it, some for war,
.ome for internal improvements, some
or extravaganza, and not a few to pay
.ter, st on old debts, rich nations Dor
owing at low rates, while poor
Countries are compelled to pay the
interest. National promises to
are generally considered secure,