The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-16

CURED for the introduction Of the Croton
water, the laying out of the Central Park,
and for draining. paving. school houses, and
numerous other public improvements. Our
citizens chose to borrow money Tor these
purposes instead Of raising it by taxation,
and the result Is that the lenders, or their
representatives, have now II lien upon the
city revenues for their advances. If they
were 10 be paid OFF by n tax laid now instead
of years ago, the only difference would be a
change OF the ownership from them to the
taxpayers. Our State debt, like that of the
United States, was also a substitution oi
borrowing for direct taxation. We prefer
red to postpone the time of dividing up the
cost Of our civil war by calling upon n por-
ton Of our citizens to advance it, instead of
all contributing pro rata, but that cost was
not thereby apprcciably increased nor di
minished. The country at large has just the
same amount Of wealth in it, and would
have no more If by one prodigious effort the
national debt were Immediately to be extin-
guishcd.
A clearer idea of the subject can be obtained
by supposing that in the case of this city, for
example, some enormously wealthy capt.
talst, like Aston or Vanderbilt or ROTHs-
CHILD, were to come forward and buy up at
a fair price every piece of real estate in the
city, paying of the mortgages on 1t, and
giving the remainder to the owners Of the
fee. The transaction would wipe out a vast
amount Of mortgage debt, and as the munici-
pal debt is practically n lien only ON real
estate. 1t would, so far as respects citizens
generally. extinguish that too. 1t Is plain
that the wealth of the city would neither be
increased nor diminished after the thing was
done. The houses and stores and public
works would be there just the same as ever.
The only effect would be that we should all
pay rent to a single landlord, in place of
rent TO multitude Of landlords, interest
to mortgages. and taxes to the city.
The debts of the country, therefore. instead
of being regarded "a so much 10 be deducted
from its property and n burden upon it's
earnings, ARE merely measures of the rcspec
tive titles Of debtors and creditors. and in
themselves are not drawback to its pros
pcrity. So far, indeed, as they represent un-
productive and valuclcss investments, such
as railroads that are not needed machinery
that Is standing idle. and houses that are UNI
occupied. they are Il perpetual reminder of
wasted industry. The waste. however, would
have been no less il those who are now crcdi-
tors had been owners: IL would only have
been marked of and put out of sight. So
much of our debt a. is held in Europe
and the interest ON which goes abroad
secms much more like an injury to
oar prosperity, but in this ease, too,
it must be- remembered the property
Httlf ron l.. ui
canals. and other immovable improvements
which cannot bc taken away from us. In
1851 the late WILLIAM b. OGDEN, who was
then living in Chicago and engaged in his
enormous railroad. mining. building, and
other such enterprises, for the carrying on
Of which he had borrowed largely at the
East and in Europe, was compelled to
stop payment, and friend from New York
called To condole with him on his misfor-
tunes. Don't pity me-" h. said. NOR this
part Of the country. Pity your friends ut
the East You have got our bonds and
notes. but we have got the railroads and
factories aud mills that You have given Us
the means to build. and you cannot get them
away from us The remark was cynical
but true, and the gGSnlt h4- H. III ~, '''''
crushing burden was In reality the fOun-
datiJn Of Western prosperity.
NJ; there is nothing alarming in the
amount of debt which the country is
carrying. only give Us q sound fnan-
cial system, an honest government and
proper economy in public and private
affairs, and We shall soon recover from
oar present depression. 1t is the want
81 confidence produced by an irrcdccmablc
/ currency. andby tho Fraud which prrmoatc-
/ tins Fraudulent national Administration
through aud through which paralyzc in.
| du7try and cnusc our widespread suffering
/ The rclatiou- of debtor and creditor have
nothing t. do with it, and may be safely
! left to regulate themselves in obedience t.
! the eternal laws of nature