Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-12-02
NATIONAL FINANCES.
WHAT SHALL Be DONE WITH OUR
BONDED DEBT.
An Interesting Discussion Upon the Coming
Policy in Regard to the National Debt
and National Taxes.
OUR BLESSING AND OUR BURDEN.

relative TO an important question
whether instead Of further rapidly re-
ducing the principal Of the national debt,
the better policy would be to let the debt
stand Substantially and reduce -
ta{%S1G,,n, a{%G,,. Inn --~Wshars
Ime yoaSs bS article, 1t commends the
thaaa ISn ;W,n,,5 70 "a iereful consideration Of
tno7e ;no ema.tiens ,m.t a,naIn. -sIn. Other agitat-
that Congress will be called SI.n to con.
Hder, are also referred to.
| THE REGISTER invites a discussa,s Of
| these subjects In itscolumns, from all pcl
sons, no matter what political or fnan-
cal opinions they may hold. The col
umns of TIE REGISTER are always
open to the public for the discussion OF
all questions; whether or not the views
Of the writer are In accordance with
those Of the editor.
Cincinnati Ga,-t,e. Rsp.
At a time when the United States Gov
ernment paid high rate Of interest on It's
bonds and when its credit as compared
with the most favored nation. was second
or third rate. il was important 10 exhibit
to the world our ability ~ pay the debt.
This was accomplished. and the result was
cable for the government Ia obtain all tho
money il needed AT q rate of interest but q
shade above one-half what IL had previously
paid. This is the situation at present, and
IL now becomes u question whether instead
of further rapidly reducing the principal
OF the debt, the better policy would not bo
to let the debt stand substantially aud re-
ducc the taxes.
Debt is generally regarded rs a burden
that ought 20 bc removed as soon ~ posi-
bic. This is true certainly ~ regards pri-
yatc enterprises. but 10 is not true always
as regards nations. II Is doubtful IL IL II
true now as regards the United States. Tho
time was when n reduction In the debt was
essential Ia our credit, but that time has
passed. Our credit is now NJ good that 3f
per cent. bonds command premium, ana
a per cent irrcdcemabc bond would float
| readily at par. II is not bad policy, there
| fore to maintain taxes with view IN hur-
rcdly paying of that debit Would II not
be better policy 90 reduce the taKes
and let the principal Of tho debt stands
There are three questions in connection
with the finances that Congress will he
| called upon To consider:
l. The rcfundng of the callablc bonds.
The bonds extended which now bear ~
per cent. interest are subject to call. This
is "a favorable situation, So far ~ the gov
| ernmcnt il concerned, because the bonds
are never due, and yet may be called In any
| day. This il a onc-sidcd arrangement, and
| unfair to the public. Therefore, the ~
| per cents should be funded in an irrcdrem-
able bond bearing ; per cent inter
est. That would place the govern
ment on an equal footing with indi.
different standing. ia, any time IL h.d
a surplus applicable to the payment ~ the
Ia I::ss1gsa Gs! 3; " s.s$ s!l ~ .ss 4ssS
could sell or not ns they pleased, while tho
| government could buy or not, as It pleased.
| The money market would not be- subject 10
| disturbance by the calling In of bonds, and
| uncertainty as 10 the pcrmnncncy of in
| ycstments, as IL il now The change would
| certainly bc for the better. and what IL best
for the public should be adopted by the
government.
2 The red uction Of taxes 10 point that
will Weld n reycnaie sufficient only to meet
current expenses, leaving the debt ~ stand
substantially ~ il IL, or IL reduced at al lhs
reduction 10 H. 50 slow ~ not Ia cause any
disturbance. The excessive revenues nov
collected cause such an accumulation of
money in the Treasury NJ to keep the
finances 81 the country in n chronic stat" of
disturbance In financial circles the con
stant inquiry now IL, What will the Scc.
rctary of the Treasury do? lie has tho
POWER To make money easy or cIos" and
this is equivalent to saying he has the pow
cr to dcpress or enhance the prices Of sccu.
rites or commodities In this respect the
power Of the SecretaTy Of the Treasury over
the markets Of the country II greater than
the Cyar Of Russia IN able toctercise within
his kingdom. The policy Of the govern
ment should be such that no one need ssk
| what will the Secretary Of the Treasury do.
/, should bc such that no officer, not even q
cabinet Minister. could post favored spec
! ula,ors in advance n Ia what was about 70
bc done ,r effect the money market hsh
| IL now, the Secretary, " corrupt man,
| could make fortune every year by man
| ipulating the money market IL ~ such
| power ns any ono Of the great Wall street
| spec,Ilators would give millions 10 possess.
| II IL club held over all the markets NJ the
rbuntry. This could not be " the
| Secretary had no millions To
| withhold or di,bursc nj his pleasure.
| II would not H. " lac werc required W 10
| into the open market at fixed intervals and
u,c whatever surplus might have sorumu-
lated in purchasing and retiring bonds.
Business men could then calculate upon
| the movements of the money In the Treas
| ury with a. much accuracy n they do nov
| upon the quarterly or semi annual dis
| bursrmcnb on account of dividrnds.
| 3. II IL policy % reduce the national
| debit Are not the outstanding bonds esscn-
| tial " o healthy financial condition Of the
| country The business. Of the country
needs n supply of ecuritics, the value o(
which IL unauestiOned. These can only
be furnished by the government They
certainly cannOt be supplied bg states or
| railroad corporations The latter has been
sufficiently tried. ..
| Suppose the national debt could i,e paid
within year or two. or i've. such pay.
ment would reyoIutionize the finances q
the country. ssyings banks would b
upset, trust funds could not be sstisfscto-
| rfly invested, individuals would find no
certain plsre for their ssvings. and The ns-
tional banking system would h. overturned
and destroyed. The latter rests upon No
tional bonds, and II the securities wses
removed by payment the banks
would disappear. This would In IL
self be . calamity. IL would throw
the country back twonty years, and land
in the forests Of wildcat banking. boch In
the war would spring up like mushrooms.
and states hsvius the isast credit would
have m0st bAnks Put the nstimsi banks
aside, and Stae hanks or henks organised
under state laws, would fn the vacancy.
Il co.t the Wet slone, prior 70 ths var. IN
discounts On bank PAPER, more annually
than the interest nov paid on The nsssooA
Il 09Nu. III ut1t - tut C141r IS4D
aSo. what would Il be nov, when tho pops.
lstlon has doubled, and the wealth and
business Of the country fsz more eaan
do oubled7 -
An argument In favor Of maintaining Q
debt mar seem strange. but IL does not bed
much consideration To lesd 20 the oondu-
sion that our present debt hs convenience
10 the people that cannot well Be dIspenssd
With. This Il . comparative tide. fbs
advantages resulting from the existence u
the bonds 10 five times 390,00,oo -
The time has pAssed when the Per
ty in power need seek 70 make itseif pcpv
lar by showing q hesvy monthly rsdac-
ton In the principal of The debt. Thst -
| well enough while the debt was lsfEe a9d
the interest high, and there wees Peopae
who talked shout rspadistion. But nos
thst the debt and interest hsye besn ne.
. duced and the credit of ths Goyernnsnt J.
! high and altogether ost 81 the reach 9