The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1880-09-03
THE WORLD BANKRUPT.
Tho Larr. Amoun, Owed ,, oov.,,,..

The WORLD BANKRUPT.
Tn" Large Amount Owed by Governments.
An ingenious statistician, who had
been losing sleep in the pursuits of
science, has added up the nations of the
world, and is distressed to find out that
this poor old world is really bankrupt:
that 1t owes more than it can pay, and
that, as the process of debt-making is
continually going on, tho inevitable end
VIII be universal smash. The gloomy
view OF the situation Is supported by the
magnitude of the fi2ures-total amount
webelieveis some SIC, 600, 00O. OOOor $780,
600, 900, 0O0-and it is plainly true that.
with the exception of the United States,
the civilized governments of the world are
rapidly increasing their indebtedness.
But we believe that this immense aggre-
gate of debt is an evidence rather of SOL
vency than of bankruptcy; n proof. not
that the world is SO poor rs to be insol-
vent, but that it is SO rich that no extrava-
gance can ruin it All the great public
debts of the world are the creation of the
present century, and many of them of
the past twenty or thirty years. At the
beginning of the century France had no
debt at all and England only trifing
one. Italy, which is quite active az
debtor, did not exist as q nation thirty
years ago and the United States had no
public or local debt of any amount twenty
years ago.
If, in the course of eighty years, the
nations of the world have succeeded i'll
loading themselves up with a burden of
debt to the whole of the estimated wealth
of this country at the last census, it is n
proof that their material prosperity and
accumulated resources have reached pro-
portions which would have been consid-
cred impossible and mythical in any
previous era of history. France, which
now thrives and prospers under an enor-
nous debt of "a, zoe, 900, 600, on which ii
pays an annual interest of SOB, 600, 900,
would have found it impossible 100 years
ago TO borrow the amount which is all
nually paid for interest. England owes
n debt of some 81, 000, 900, 000 the foun-
datioDs of which were laid in the attempt
to prevent the French from being ruined
by sovereign of their own choosing
But if England had had any idea at the
outbreak of the Napoleonic wars of the
outlay which would be incurred, we may
said that there was no credit of COVER
ment or power of authority which would
suffice to carry so large debt. Now,
triumphant Germany asks France for n
trifie of 81 900, 600, 600 rs coolly as if it
were bottle of wine, and totally mort
cages the resources of nation before
nation is established. Was the world
any richer 100 years ago, when its lack
of credit prevented its borrowing money?
Is it any poorer now, when 1t has bor-
rowed so much that demand for pay
ment would bankrupt it?
A very simple answer to the question
may be had by merely considering where
all the money came from which is now
invested in the Grand Livre or ledger of
France, the consols of England, and the
bonds of other countries. Before the
country could borrow there must have
been capitalists who had the money to
lend-andto spare. The nations could not
have borrowed unless the people were
able TO lend, andif the world sable TO lend
$20, 1000, 600, 600 or $50, 600, 600, 900 it can
hardly be III danger of immediate bank
ruptcy. In fact, the debts OF the nations.
are merely the surplus Of the people. II
small part of the accommodations which
have been made III n century of industry
and of progress. Steam, electricity, and
patent inventions have accumulated III
the world such mass of wealth rs the old
world never dreamed of and, as the pro-
cess of accumulation is going on faster
than the process of borrowing, the world
is growing richer every day, richer III
spite of wars and armies and kings and
i +ox Il al .l,utn al
and there is no call for any learned statis-
tician to sit up of nights in despair over
the future of an insolvent world