The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-08-28
THE NATIONAL DEBT.

courage WHlle Whlhlus ehtooS"
yard. seeks, in an elaborate article. to
show that the public debt OF this ,coun- ]
try does not lessen its wealth. 1t places
that debt at 1000, 100000, and the an
pual interest at $42O.O00 900. Adopting
the idea of French economist, 1T insists
that this relates merely to the distTibu-
tiop OF the national wealth and does not
in any degree affect it's aggregate; thao
II simply lays aside q portion Oh Inc
products of industry for the bondholder,
leaving the remainder to the producer;
and that it Ia matter of indifference 70
the public whether that product talls
altogether to one Of these parties or Is
distributed in any proportion between
them. In short. the practical summing
up of this consolatory theory Is, that
public debt ia like the debt which @ man
owes to himself, and payments made on
account Of 1t are only the passing OF
money from one pocket to the other.
This, we think, Ia erroneous. A debt
which Is contracted for productive pur-
poses. as most private debts are, Is not
impoverishing but, If iudioiously used.
may yield an increase Of wealth ana II
matters little to the public how that IN
crease may be divided between the bor-
rowers and the lenders. But a debt
contracted for consumption. and this is
almost universally the character OF
public debt, is an absolute destruction
Of wealth. The fund thus consumed Is
withdrawn from production and the re-
sources of the people, thus crippled, are
changed with the repayment OF that
fund. Can it be true that they are not i'm
| poverished thereby? Suppose people
| possessing capital Of ten thousand mil
lions should determine to celebrate a
festival by devoting the half OF 1t to
fireworks, and should borrow 1t with an
engagement to secure to It's owners the
same revenue then enjoyed by them.
Is 1t not evident that 1t will require
| the product Of all the remaining capital
to meet that engagement, and thus the
PRODUCERS be converted into the serfs
Of the bondholders ? It Is plainly Inn
possible to destroy any OF the capital OF
a country without impoverishing it to
that extent. Now, this Is just what has
been done with regard to the national
debt of over two thousand millions. 1t
was literally burnt up, not, however, In
an innocent but foolish festival. but in
laying waste and destroying one OF the
richest portions of the country and Gull
tivating an irrepressible conflict OF
bitter and enduring hatred. [See the
late speech of Oliver P. Morton at Port
land, Oregon The holders Of that
debt pay no taxes, but hold the entire
property Of the country mortgaged to
them, not only according to the fair
terms Of their contract, but under such
unjust changes as venal Congresses, led
by such men as Colfax, Garfield and
Blaine, made in 1t to the prejudice OF
the people. Interest must be paid on all
these millions which yield nothing.
r Paid by whomP By the industrial
masses. Can it with any reason be said
that Il is not burthen upon their re
sources? The productive powers OF the
J country have been destroyed and 1t has
! consequently been impoverished to that
extent. but as no part Of the loss falls
upon the bondholder. who is fully in
Identified, the burthen upon the indus
trial resources of the producer is rem
dered the heavier, he having to beal
not only his share of the loss but also
that of the bondholder. But further
than this, the largest portion Of that In
debtedness is due to the foreigner; anc
the interest belonging to him leaves the
country entirely and we have no equiva
lent. That interest Is paid by the pro
ducts of our industry which are shipped
abroad and bring back no return. Car
it be doubted that this Is a process o
impoverishment? Had we productive
property acquired with this borrowed
fund and which yielded the interest 81
payable 1t would not be SO, but the re
: verse is the fact. This debt is repre-
sented either by absolute waste or b,
: property which will not yield the inter
est. as the railroads and many OF thu
factories of the North and West. 1t Il
then 80 much property lost.
& The West has been covered with rail
d roads built with money raised by mort
Q gaging not only the roads, but tn
e farms of the country through tn
t medium OF county bonds. The rail
a roads are bankrupt and the courts arr
r now enforcing the bonds against tn
: people. Does it not look like mocker,
y to tell that people that their wealth
q in 10 degree diminished thereby; tina
q the transfer of the property Of the pee
IL pie OF Illinois to those Of Massachusett
10 is mere question Of distribution not a
It all affecting the wealth Of the forme
it State Are they expected to be soothe
8 with this subtlety Of the bondholder
d Will not their common sense reply tina
the wealth of State is only the CON
4 bined wealth Of its people, and whe
% these ora innoyariShed the State neces