The Russellville Democrat., 1877-07-26
The National Debts of the World.

Up to 1860 national borrowing was chiefly confined to Europe. There had been the revolution of 1S48, the Crimean war of 1854, and the ranco-Austrian war of 1859, which caused the great amount of borrowing. But the total loans averaged $100, 900 a year from 1S4S to 1854, and $250, 100000 a year from 1855 up to 1860. After 1860 there were the following great wars: The Austro- Prussian in 1866 and the Franco Prussian war in 1870. These conflicts led to immense loans in Europe and America, and an epidemic of borrowing throughout the globe followed in their wake. Capital accumulated so rapidly and capitalists were so ready and pressing with their funds, that Russia, Austria, Hungary, and France contracted new debts. The south European states Spain, Italy and Turkey--largely in- creased their indebtedness; Egypt imi- tated Turkey, and the United States, not to be left behind in the race, aston- ished the world by the vastness of her five years of borrowing. Of the states thus burdened, some secured loans for wars. others for railway Improvements but all borrowed.
 The average increase of national debts from 1861 to 1876, has been the enormous sum of $1,0O0, ,000, ,000 year. These figures suggest the question: Are there reasons to think that borrowing will pro- gress in diminished ratio, from the in- crease of national prudence and the de crease of national credit? Or, shall we see national debts augmented in an ever creasing ratio, like population or the consumption of coal and iron ores?'
 The following table will show the debts and credits of the principal countries, together with the burdens they bear, falling into four divisions. according to their rates of interest:
 1. States of low interests, viz: 3 and 4 per cent, England and the German states.
 2. Moderate, and 6B per cent, Uni ted States, Russia and France.
 8. High, 6I to 10 per cent, Austria, Hungary, Italy, Egypt and Turkey.
 4. Excessive, above ten per cent, Spain. Or in other words, they are divided as
 follows:
 1. The economical states, whose debts grow less in proportion to their resources.
 Z. The vigorous states that had to bor- row freely, but not beyond their re-: sources.
 8. The ever-borrowing and declining states, whose debts are heavy and contin. ually increase more rapidly than their resources.
 4. The defaulting or ipsolvent states.
 There has been an enormous increase in the national debt of the great states of moderate interest, viz: The United States, Russia and France, their im- mense resources alone enabling them to keep the interests of their war loans down to this moderate figure In the more southern zone, Austria, Hungary and their neighbors, the debts have tripled through their long wars and con- sequent falling credit. But this is still more apparent in Italy, Turkey and Egypt where continued deficits and leans have multiplied nearly twenty-fold the small debts of lS4s, and have brought these states to the verge of ruin. The debts have also trippled in the danger ous and defaulting states of spain and her colonies, and have probably only stopped at this figure from the impossibility of further borrowing.
 The present character and tendencies of indebted nations lead to the expecta tion, that unless the probable course of events is altered by great wars, the northern halt of Europe and the other borrowing countries will improve in the position of their national debts, and .Le southern half deteriorate. England, the United States, Russia, the German states, show signs of vigorously lessening the debts inproportion to their resources, and gradually outgrowing them. Aus tria,. Hungary, Italy, Turkey and Egypt, unless they turn over a new leaf and manage to make both ends meet, so as to stop their constant borrowing, seem likely to go on increasing their debts, and the danger of being overwhelmed by them. Spain is already overwhelmed.