Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1880-10-27
THE DANGERS OF A" CHANGE %
Opinions Of Leading New York Fnanciers---A
Timely Warrnu.

tlon from Financial Standpoint.
1t is addressed to the peopl
OF New York." and bears the fol
lowing signatures: T.. d. Morgan, +. J
Astor, Hamilton Fish, Robert Lenno7
Kennedy, J. Pierpont Morgan, E. P
Fabbri, Charles I'll. Russell, John A
Stewart, J. ID. Vermilye, Henry F. Vail
Benjamin B. Sherman, David Bows
William FL. Macy, Samuel Sloan, Lev
l.. Morton, George Bliss, Jesse Selig
man, George T. Adee, Cyrus w. Field
John W. Ellis, Isaac Sherman, I. N.
Phelps. A few extracts from the article
are appended:
Twenty years ago, when the debt OF
the United States was only $1.91 per
capita, the government borrowed with
some difficulty 81 800, 900 at II per cent.
interest. Last year, though the debt of
the United States was $40. AZ per- capita,
In single day 1914, 100000 was offered
to the government at 4 per cent, when
1t 1t needed and accepted only $121, 00O,-
900. Under the latest Democratic adj
ministratiou the public debt was more
than doubled during four years of peace,
and United States per cents. sold at 96
In December, 1860. Within the last four
years the public debt has been reduced
1888, S45, 1872, or nearly six times the en-
tire debt in 1856, and United States 4
per cent. bonds have sold at 110s. Yet,
Notwithstanding this marvellous change
| for the better, some partisans insist that
"a change" is necessary, and that an
other Democratic administration should
| now be intrusted with power A trans
fer OF power from the party which has 80
completely restored the public credit to
the party by which it was left SO COM
pletely wrecked would naturally cause
serious alarm. The public credit has
become so linked with all financial, COM
mercial and industrial interests that it
| cannot be impaired or seriously threat
ened without the gravest consequences.
= In all, not less than 1000, 900
persons are interested, either personally
or through corporations, as owners of
bonds, and would be directly affected by
decline in the public credit.
! The disastrous effects of serious de-
cline would be far more extensive By
! the corporations mentioned about 81
600, 900, 900 are now loaned for the sup
! port of various branches of trade and in
dustry viz: by national banks, ST, 000,-
100000; by state banks, 5000, 900, 900;
by savings banks, 1920, 900, 900; by
loans and trust companies, $65, 900, 600;
Dy life insurance companies, 5000, OO0,-
600, and by fire and marine insurance
companies doing business in New York,
$50, 100000. Shrinkage of public credit
would involve shrinkage of the assets
OF these corporations, and correspond
ing, and a possibly sudden and sweeping
contraction of their loans. To mer-
chants IN their stores, to manufacturers
IN their factories, to wOrkmen in their
shops and mills and mines, the conse-
quences would be not less disastrous
than the reluctant capitalists or lenders.
Never yet has tins country seen finan-
cial revulsion as terrible and as far
reaching In its consequences as would
now result from collapse of that splen-
did public credit which wise legislation
and faithful administration have for
twelve years been building up and forti-
flying.
* = i But the legal tender was
worth less than 70 cents on the dollar in
1868, when nearly every prominent
Democrat was carried away with the idea
that proposal to pay the fve-twenty
bonds in paper, and to tax all bonds,
would render the party irresistible in
the approaching election. These pro-
posals the party then embodied in It's ma
tional platform. General Hancock, who
narrowly missed the presidential nomi-
nation on that declaration of principles
and purposes, gave his unqualified ap-
proval. 1t must be presumed that the
Democratic party and General Hancock
| th01, rrht hot no of
greenbacks would be both honest and
wise. Nothing had been done Or said by
the Democratic party, or by General
Hancock himself, to show that the
course deemed honest and wise in 1868
is now deemed unwise and dishonest.
Not a thing has been done or said to
show the Democratic party or General
Hancock would not consider such pay
ment in 1881 ga strict maintenance of
the public faith" The danger is near
and real. Within one year bonds
amounting to $697, $50, 900 become paya-
BILE or redeemable. Every effort to
meet them by refunding has been de.
feated by the Democratic majority in
congress, in spite of earnest appeals
by the secretary of the treasury
Bills for payment of all the bonds
which mature or become redeemable
next year by new issue of greenbacks
| are now pending in congress, and are
zealously supported by many democrats.
IS Nor has Gen. Hancock
uttered word, since his approval of the
platform of 1868, to indicate that he
would hesitate now to carry out the fnan-
cial measures to which he then commit
ted himself. On the contrary, within
the past month the Democratic party has
been rejoicing at it's supposed success in
electing greenback candidate in Maine,
whose national platform declares as he
does, that ''the bonds of the United
States should not be refunded, but paid
as rapidly as possible" by means of an
increased issue of legal tender notes.
And this candidate, standing upon this
platform, Gen. Hancock had recently
congratulated upon his supposed cleo
ton as a GLORIOUS result" Perhaps
Gen. Hancock does not understand that