National Republican. (Washington City (D.C.)) 1872-1888, 1877-05-30
HOW THE PUBLIC DEBT rs MADE or.
PRESSTyE

The chief difficulty In the way Of o re-
turn to specie payments, and equally In the
way Of the general prosperity Of the coun-
try, is, in our opinion, the unnecessary haste
TO pay the public debt. II is not debt that
destroys the credit of nations, but the fail
urc to meet obligations. And so fnr as the
stability of government is affected by the
condition, there can be no question but that
a considerable funded debt, whether in the
hands of citizens or foreign capitalists, is
source Of great strength. Such
debt in the hands of the citizens of
the State gives them an increased
interest in its safety, and additional motive
for diligence in its protection; for of what
is the world more careful than Of the de-
pository of its treasures? The same result
follows if the debt be taken by capitalstsof
other countries. The securities rating among
the best in the market because amply
vouched, and the interest being punctually
paid, they are reluctantly yielded as an in
vestment, and the consequence is that the
holders become natural allies in sustaining
the nation issuing them. Thus the debt is
VI vi
weakness, and tends to consolidate the poo
pie at home and the Powers abroad in
maintaining its integrity. If the people of
the United States had been large holders
of Government bonds in 1861 does any one
suppose the Union would have fallen TO
pieces so readily as it did, or that there
would have been any TO advocate that the
Government of the United States repre-
scnted nothing but the temporary adherence
of the States, dissolving with their with
drawal9 Or, had the subjects Of foreign
crowns been in possession of American Sc
curities of great value, will il be believed
they would have still striven, as many of
them did, to destroy the Government which
guaranteed their revenues? Assurcdly not.
The principle is the same as with the cred
itors of a private person. They are all inter
cstcd in protecting his credit against every
approach of danger.
| II seems plain. then, that the mere exist
ence of national debt Is not disadvantage,
and that it may be of great benefit to a peo-
pie And il so, why, in the face of all the
evils which attend the attempt, should we
make such enervating exertions to discharge
ours? The generation charged with the
task of subduing the rebellion, and which
gave its blood so freely in the cause, should
not DO called upon also to pay the debt in
Cured by the Government in the struggle.
1t will do well If it pays the interest and
carries forward the work OF developing the
national resources; and if IT does this, it
will do far better for future generations
that if it prostrates its energies and cripplcs
its industries by striving TO do more.
II, rs the war progressed, we had issued
the bonds of the Government in payment OF
the debts contracted at the best rate of in
terest we could make, and when it closed
turned our attention TO the development OF
the country, taking care only TO pay the
interest, long before now we could have
been on specie basis, with all the world
begging us not to pay our debts, but to give
lower rate Of interest instead. And thus
we should have reduced the interest and
lett generations hundred years away &c
pay the principal, If they deemed it expe'
dent TO do so, while we prepared the way
for them 10 do it. Such course would
have enabled the Government to foster the
industries of the country and aid every en-,
terprise tending toward the general adj
vanccment, instead Of bringing OF
series Of comparatively fruitles.
years and spreading distress where il
might have scattered plenty and dissent
mated low. The result il that we not opl,