Bradford opinion. [volume] (Bradford, Vt.) 1874-1881, 1876-10-07
The Public Credit.

The Public Credit.
To "restore the public credit" il
among the things for which the St
Louis platform says reform is neces
sary. Let us see how the credit OF
the United States now compares
with what it was at the end OF that
period which we often are called up
on to admire as the brilliant and
glorious Democratic age. The fig
ures which we shall use are official,
and were furnished by MIR. Conant,
Assistant Secretary of the Trcaru
nv, in his late letter to Senator Ora
gin.
On the 4th of March, 1861, there
was deficiency, created 10y an eX
cess of Expenditures over receipts IL
that and the three Immediately pre-
ceeding years, amounting to 3d.
9S9.523,62. To meet this deficiency
and current expenses the Govern
ment issued bonds which were sold
at a rate which made the interest
on a part of the loan twelve per
centum and on another part from
six to eleven per centum. This was
the condition of the public credit
when President Buchanan went OUT
with the Democratic party, and the
splendid Democratic era ended.
What is its condition now? MIR.
Conant says that it "stands unpar-
alleled in our history" and to prove
his assertion shows that in August
last United States bonds bearing
interest at the rate of four and one
half per centum were sold at par.
This certainly 10 a great gain IN
credit in fifteen years. How has it
been secured? Not by the Demo
Gratis. Buchanan has had no party
successor. the Democrats have not
come back since they went out OF
power. and so they have done moth
ing to "restore the public credit" 1t
may be said that several great gener-
al causes have contributed TO the res
toration. The success of the peO-
ple in maintaining the Union, not
withstanding the technical ohjec.
tions of the Democratic party, to
use mild terms, is one OF these
causes. The demonstrated strength
of the country, its capacity for in
duStriOus advancement, is another.
There are other and special causes.
One is the determination OF the peo'
pie, as shown by the course of the
legislative and executive depart
ments of the Government. to per
form their obligations. Congress
by passing an Act, and the Presi-
dent by approving it, have declar-
ed that the principal and interest
of the Federal bonds shall be paid
in gold. Meantime the Democrats
have been declaring-in the year
1868 they so declared in national
convention-that the bonds ought
to be paid in paper. If the declar-
alton of Congress had not prevailed.
and if the Democratic declaration
had been adopted in its place, what
would have become of the public
credit? 1t would have sunk as low
as that of the man who not only
neglects to pay his debts, but open
~ announces that he does not i'll
tend to pay them. Happily homes
ty triumphed; the interest on the
bonds and that part of their princi.
pal which has been discharged have
been paid in gold, and we are now
able to borrow money &C four and
one.half per centum instead of
twelve. Now, will it be pretended
that in respect to these various caus-
es the Democratic party has done
anything to "restore the public cred
itT
But there IS still another set OF
causes of the improvement of the
Federal financial standing. The
people might have defended the I'm.
ion successfully and yet might not
have paid dollar of the cost of it's
defence. They might have male
the tairest promises to the public
creditor and yet might have broken
them all. The money raised by tax
alton to pay the debt might have
been spent for something else. In
any of these supposed cases the
public credit would have grown rap
idly worse. What really has been
done in the management of the Fed
eral finances may be show in a few
words and figures. Let us not be
unjust to the administrations of the
last dozen years. There are texts
enough for discOurses on economy
and reform without misrepresent-
ing the actual facts. In eleven years
the debt has been reduced { G56, 002,.
246.44. In seven Years the yearly
interest charge has been reduced
o31 ,285,231. In ten years the year.
" reductions Of expenditures have
to e262,349,619.66, and
in the same time the yearly reduc-
tons of taxes have amounted to
e3O9, 35O,17l. "Every year since
1885," in the words of Mr.. Conant.
1.-The Government has not only liv.
ed within its income, but has been
able to save towards paying its in
1ebtedness an average amount per {
snnum of $50, 1929 90" That in
Ill these years money has been spent {
may be readily ad
nitted, but the Republicans clearly
AVE a right to set Oft against the
cckless arrangement made by the
Democrats the facts we have shown. S
charges of corruption are not Who'll.
y unfounded, but it is worth know L
ng that "the ratio of loss per $lOt 0 :,
o the amount involved" by defalca- II
ions is less under the present ad p,
than any other. 1t is +
blrty.four cents, as against 1881 W
nder the administration of Blu.
hanan. The financial facts of the al
ast eleven years certainly have con. &C
ributed something to the restora.