The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-02-05
Increase of the Public Debt.
From the Chicago Tribun


The attention of the members of congress
who propose to vote a subsidy to Tom
Scott of a hundred and more millions OF
dollars must have been drawn to the strik-
ing facts relating to the condition OF the
national treasury. What are those facts
/. That on the LIST of January, 1879;
the treasury was short over $4.OOO.OOO OF
the means with which to pay interest on
its bonds, and had to borrow that sum.
Q. That the treasury has been so long
unable to make its payments to the. sink
ing fund that it now owes that fund over
100000.
8. That the condition of the treasury is
such that, Notwithstanding we in are pro-
found peace, the government, to meet Its
current liabilities, proposes an extraordi-
nary increase of taxation to meet the cur
rent expenses.
In view of these three solemn facts, it
ls proposed by the Pacific railroad COM
mittee of the house of representatives to
increase the public debt by subsidy to
Tom Scott and his ring,-that subsidy be-
ing the guarantee of the interest on the
bonds of the railroad company to the sum
of SAC, 900 per mile for 100 miles, or an
aggregate of bonds of one hundred and
twenty-four millions of dollarsl Congress
proposes that the secretary of the treasury
shall stamp these bonds with a guarantee
to pay the interest thereon at 5 per cent
or $7.20O,OO0 annually, for forty years.
The total interest to be paid to be $2SS,
600, 900. The security for this is the rail-
road through desert, at the end of forty
years subject to lien of $l24, O00, 900 for
the principal Of the bonds.
The proposition is, to increase the ma
tional debt to sum represented by an an
nual payment of interest Of 81 100000, be-
ing 1924, 100000. The burden of nation
al debt, or of any debts is measured by the
taxation required topay the interest there
on. The house committee proposes a bill
to levy an annual tax, for forty years, Of
bonds of Col Scott's railway company
which compan y Col. Tom Scott says owes
Col. Tom SCOTS Credit Mob:lier construc
ton company eleven millions of dollars
already. -
The whole secret of this subsidy is that
Col. Tom Scott and his associates are the
Texas & Pacific railway company; and the
Texas Il Pacific railway company has con
tracted with Col Tom Scott's construction
company to build the railway. being the
duplication of the Credit Mobilier business
The railway company has not cent OF
capital, nor has the construction company
Scott has been floating the two concerns, anC
finds both in debt $ll 100000 whereupor
he goes to Washington and asks congress tC
add $l24, 100000 to the national debt by
giving him the acceptances of the United
States for 81, 100000 annually for fort.
years, and a committee of the house ha
agreed to report bill for that purpose, ant
to recommend its passage! That commit
tee consists of Messrs. Sawyer, of Wiscon
sin, Sypher, of Louisiana, Killinger, o
Pennsylvania, Houghton, Of California
McDill of Iowa, Wells, of Missouri, Bar
lucky, Dreamer, of New York. and Neal,o
Ohio. A majority of these gentlemen hav
concluded that the government ought
increase the public debt by lending Tor
Scott $7.200,OOO year for forty years.
We submit to the Republican party
which will have until March 4 a two third
majority in both houses Of congress, tina
the responsibility for this enormous add
ton to the public debt must restupon ths
party. 1t cannot be avoided. 1t make
no differenceif every Democrat in cougres
votes tor the bill, the Republicans have til
power to defeat 1t, and upon them mus
rightfully rest the responsibility of the pa.
sage of any such seandalous and corruI
legislation.
How can Republican leaders tell th
country that, while the treasuary depar
ment on the lst Of January had to borro
over four millions of dollar to enable it
pay the quarterly interest on the publ
debt, the treasury is in condition to a
sumo the payment of 1920, 90
interest on the bonds of Tom SCOTS pr
vate corporation? Congress propose
to restore the tax on, tea and coffe
amounting to eight millions Of dollars
year; yet that tax, when restored, wi
be wanted, every penny Of it, to pay ii
annual interest on Tom SCOTS $l24,OOO
600 Of Texas & Pacific railway bond
Congress is lamenting the inability of Il
treasury to make good the deficiency
the sinking fund, yet here is Republics
committee in a Republican house propo
ing to let the sinking fund 60 to the dew