Daily Kennebec journal., 1876-08-30
The Credit of the Government.

While Mr.. Tiden's letter of acceptance
represents the Government in a state of
bankruptcy. and his words are echoed by
every democratic paper in the country,
the Secretary of the Treasury, Hon. Lot
NJ. Morrill, faithfully attending to the
duties of the honorable and responsible
position which he holds, has completed a
financial transaction which gives the lie to
Mr.. Tilden's assertions, and presents In
the most practical and forcible manner
possible the financial standing of the Gov
ernment.
When an individual is bankrupt he has
no credit; when he is on the road to
bankruptcy his condition is marked by the
heavy rate of interest he has to pay, and
the large discount on his notes. On the
contrary when a merchant is doing safe
and sound business, his credit enables him
to borrow money il he requires it in bis
business at the lowest rate of interest the
market affords, and his notes are as good
as legal tenders. AS with the individual
so with the Government. A Government
which is bankrupt cannot borrow money
at all if it is gradually approaching bank
ruptcy, it has to pay steadily increasing G
rate Of interest as it goes on the downward
way.
Now ever since the rebellion closed, or
as soon after as it could call in its bonds,
this Government has been reducing the
rate of interest on its securities until at last
Secretary Morrill, has effected a loan OF
5000, 900, 600 with the great capitalists OF
the world at the rate of but four and hal,
per cent interest," From five per cent. to
four and a half makes a reduction on
$500 600, 900 of 81 100000 annual in.
terest. Does this look like bankruptcy
Any sound business man will answer that
this is high evidence of financial sound
ness, of good economy, of national pros
perity and wealth. of full faith in the
ability and purpose Of the government to
pay its debts.
Contrast this with the credit of the gov
ernmert under Mr.. Buchanan's admins
tration, the last democratic administration
we have seen. In his administration in a
time Of profound lelce, the government
was abliged to borrow $50, 900, 900 to pay
its current expenses, and so poor was its
credit at that time that it had to pay tweire
per cent. interest. Now after having
passed through a gigantic war. with a
debt of more than two thousand million
dollars to provide for, the government is
able to make its loans at four and halt
per cent. If this means bankruptcy what
did twelve per cent. mean under James
Buchanan Let Mr. Tilden or any dem
ocrat answer.
But this is not all. 1t is said Mr..
Morrill, is confident that very soon the
rate of interest the government is paying
may be reduced to four per cent, that is,
if Hayes and Wheeler are elected. Should
Tlden, however, be elected. and the gov
ernment pass into the hands of the eX-
Conlederates, there would be a different
story to tell.
Mr. Morrill, deserves and is receiving
much praise for the success which has at
tended his recent financial negotiations.
He has shown himself the right man for the
place. capable of welding the power
which he holds with wisdom and effect.
And while acting only for the best inter-
est of the government. he has most hap
PLY and practically demonstrated that the
lamentations of the democracy in general,
and Mr.. Tiden in particular. over the
bankrupt condition Of the nation, are with
out the least foundation whatever.