Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-11-16
a FINANoIAL oURsrTex.


The loan of 1861, which will mature next
year, is being cited by the Republican papers
As proof of the Encouragement of the
governmentunder Democratic administra-
ton. The New York Times declares that
1t seems Incredible that the public credit
should have been so reduced before the re-
bellion that national per cent. twenty
year loan for only . few million dollars could
only be obtained by submitting to discount
Of nearly II per cent. And much more of
the same sort, all intended to cast discrsdit
upon the administration of James Buchanan.
While the Democrats are not fond of
boasting Of the Buchanan administration
for it was undoubtedly the worst of all DEM
ocratis administrations-it was inoomparably
superior, when viewed by its financial re-
suits, to those that have succeeded it. The
depreciation of the public credit noted was
not attributable to any mismanagement'
but to the fact that at the
time the loan was negotiated
several of the States were in open revolt
against the authority of the government. ALI
the loans procured subsequently were nsgo-
tisted at much greater discount. The 7:3O
loan was obtained when gold was at Q pre-
MUM of about sixty per cent, and conse
quently the government bonds were dis.
counted at that rate. The 1910 loan was
negotiated when one dollar in gold was
worth two dollars and fifty cents in green
backs. Thus the government was obliged to
submit to discount still larger and almost
ruinous. In the then disturbed condition OF
the country no better terms could be pro-
cured, and the money lenders took advant-
age Of tho emergencies of the country to the
fullest extent. It would be fair to charge
upon the Republican party the ofense OF
depreciating the credit OF the country &C
that the two last loans could not be procured
except at an enormous discount.
Neither Buchsnan's administration
nor the Democratic party il
responsible for the rate of discount
on the loan of 1861. That discount was an
Insignificant matter in comparison with the
discount on the succeeding loans that were
contracted by Republican administration
True, it il the habit of the Republican
newspapers to charge the war and all its at.
tendant expenses upon the Democratic par.
ty, but this is simply clap trap, for without
the aid Of the Democratic party of the
North the rebellion would have been sue.
oessful. In financial management the Dem.
ocrats have invariably been superior
While in power before the war they sus
tanned the credit of the country with sigma
success. Since they have obtained partial
restoration of authority they have saved the
taxpayers over hundred millions of dollars
by enforcing economy where extravaganza
was wont to reign, and by reducing the
number Of sinecures who have been drawing
pay from the government for doing nothing
The election of the candidates of rev
dictionary party caused the rebellion. THAI
party is therefore responsible for it. Tt
suppress the rebellion, however, more Dem
| ocrats than revolutionists entered the army
| and by the efforts of the Democrats the re-
beliion was suppressed. This is the lone
and short Of the whole business.