The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1880-10-29

The North American ReUieto for November
contains one of the strongest political docu-
ments that was ever uttered from the press
1t is entitled "Ihe Political Situation from
Financial Standpoint" and is signed by the
names Of twenty-five of the foremost business
men Of the country-men who sta4d for all
that is stable and thorough in commercial life
all of them milLonaires, and the most of
them made so by their own efforts. Their
views are important, first, because they are
wise; and, second, because they are at the
financial center-the heart of the commercial
world where every pulse beat of politics is felt,
and its effect measured. The article is ad-
dressed to the citizens of New York, and is as
follows:
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 IL per cent. interest. Last year,
though the debt of the United States
was S4O.42 per capita, in single day 1884,
O90009 was offered to the Government at
per cent, when it needed and accepted only
1921, 0O0 600. Under the latest Democratic adj
ninistraton the public debt was more than
doubled during four years of peace, and United
States 6 per cents. sold at SO in December,
1860. Within the last four years the public
debt has been reduced S183 845, 1862, or nearly
six times the entire debt ia 1885, and United
States 4-pcr-cent. bonds have sold at 1909
Vet, Notwithstanding this marvellous change
for the better, some partisans insist that
change" is necessary, and that another
Democratic administration should now be i'll
trusted with power.
SHALL THERE BE A CHANGE2
A transfer of power from the party which.
has so completely restored the public credit to
the party by which it was left so completely
wrecked would naturally cause serious alarm.
The public credit has become SO linked with all
financial commercial, and industrial interests
that it cannot be impaired or seriously threat
enod without the gravest consequences. The
time has long passed-if, indeed, it ever exist
ed-when only few wealthy men would have
suffered from blow at the public credit The
"bloated bondholder" has become the average
American voter. y great number of persons
are now affected directly, and a much greater
number indirectly, but personally, by every
rise and fall in the value of Government securi-
ties while any considerable change would
affect every branch of industry and trade, and
nearly every lender or borrower, laborer OF
employer, in the whole land.
WHO HOLD OUR BONDS
Checks have just been sent to So 900 persons
for quarterly interest on registered per cents.
alone TIC coupon bonds are still re widely
distributed, so that at least zoo, 600 persons are
probably affected directly as holders of bonds.
But the national banks hold i'll Government
bonds over S400, 000 900, or nearly nine-tenths of
the capital represented by their shares which
are owned by 208,000 stockholders, and of
these 100000 own not more than ten shares
each, and $4,000, or nearly nine-tenths own
not more than fifty shares EACH The S ate
banks have about $7,739,000 invested in the
same way, and these probably represent at least
$1,000 stockholders. The loan and trust COM
pames, representing large but unknown num-
Der of owners, have about 5000 900 invested
in Uni,ed States bonds, or IS per cent. of their
eutIre capital the life insurance companies
have about $40, 100000 invested in Government
bonds, and they represent the savings Of nearly
100000 polcy-holders. The fire and marine
and casualty insurance companies represent
still larger but unknown number of policy
nolders and those doing business in New York
alone have over $68 600, 900 invested in United
States bonds out of about $165. 100000 of as
sets III this country. The savings banks rep
resent 2,265,7 07 depostors, ana hold $156, 415,-
I59 in United States bonds. In all, not less
than 1000 900 persons are thus interested
either personally or through corporations, as
owners of bonds, and would be directly affected
by decline in the public credit.
THE EFFECT OF DECLINE.
The disastrous effects of a serious decline
would DO far more extensive. BY the corpora
tons mentioned, about So 900, 000,0 900 are now
loaned for the support of various branches of
trade and industry, viz: BY national banks,
$l,0O0OOO,00O by State banks, 5000 0O0, 900
by savings banks. 1920, 100000; by loan and
trust companies, sos, 900, 600 by life insurance
companies, 5000, 100000 and by fire and ma
r1ne insurance companies, doing business in
New York, S30, 600. Shrinkage of public
credit would involve shrinkage of the assets
OF these corporations, and corresponding, and
possibly sudden and sweeping, contraction of
their loans. To merchants in their stores to
manufacturers in their factories, to workmen
IN their shops, and mills, and mines, the con-
sequences would be not less disastrous than to
the reluctant capitalists or lenders. Never vet
has this country seen financial revulsion as
terrible and as far-reaching in its consequences
as would now result from a collapse of that
splendid public credit which wise legislation
and faithful administration have for twelve
years been building up and fortlfying.
NO CALAMITY SOUGHT.
There is reasonable reluctance to believe
that any party would deliberately bring such a
calamity upon the country. If the consequences
were not overlooked or misunderstood, no party
would. The danger is not that this thing will
be deliberately done. When Captain wrecks
his ship by want of knowledge, defective charts,
lnattentlon, or bad judgment, he may have had
no intention to imperil his life and the lives of
all on board. But the Democratic party has
been exposing the public credit to peril year
after year, ever since the war, until conservative
men who do not question its honesty of purpose
have become profoundly apprehensive that Its
success would cause great financial commercial
ana industrial disasters. At times its charts
have been bad; it has insisted upon most per-
plcious theories. At times its chosen leaders
have erred through Incompetence or lack of
practical knowledge. At times many of its
representatives have seemed ready to expose
the public credit and the business of the coun-
try to the gravest dangers for the sake of tenn
poraIy success in some election. Since 1860 the
course of that party has never tended to inspire
confidence in its capacity or fitness for financial
management, as its friends have perceived with
keen regret.
THE DEMOCRATIC RECORD.
Who could tell what the Democratic party,
if in power would do with regard to the pay
ment of the public debt or the interest thereon ?
Not few members of that party insist that the
principal or interest or both shall be paid only
in paper. Bills to that end are now pending,
and have been pushed at every session of Con-
gress for years, by many, perhaps, such bills
may be proposed in ignorance of the fact that
an increased issue of legal-tenGer notes would
cause decline in their value. But the legal
tender was worth less than 20 cents on the dol
lar in 1868, when nearly every prominent DEM
ocrat was carried away with the idea that a pro-
poSal to pay the $40 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 its
national platform. Gen. Hancock, who
narrowly missed the Presidential NOM
nation on that declaration of principles and
purposes, gave it his unqualified approval. 1t
was zealouSly supported by every one of the
prominent leaders who are now asking public
support for that party on the ground that it
promises this year "a strict maintenance of the
pubic faith: But can it be supposed that the
party intended to violate the public faith in
1868? 1t must be presumed that the Demo-
cratic party and Gen. Hancock thought that the
payment of bonds in greenbacks would be both
honest and wise. Nothing has been done or
said by the Democratic party, or by Gen. Ham
cock himself, to show that the counsel deemed
honest and wise i'll 1868 is now deemed unwise
or dishonest. Not thing has been done OF
said to show that the Democratic party or Gen
Hancock would not consider such payment in
1881 ga strict maintenance of the public faith.
THE DANGER is NEAR AND REAL.
Within one year, bonds amounting TO $685.
$50 800 become payable or redeemabe. Every
effort to meet them by refunding has been de-
feated by the Democratic ma jority in Congress,
in spite of earnest appeals by the Secretary of
the Treasury. Bills for the payment of all the
bonds which mature or become redeemable
Vt vear bv nav iSs1n Of craa,,l,ool,s 49,