The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-03-31
THE LONDON TIMES ON HAYEs's
VETO OF THE FUNDING BILL,

THE LONDON TIMES ON HAHES'S
VETO OF THE FUNDING BILL,
The London Times discussed pretty
fully the funding bill and Hsyes's veto
of it. The measure attracted great at
teDtion in Europe among money circles.
The Times says the primary error was in
not having funding law permanently
in operation, so that in case of afailure
of legislation the funding might proceed.
1t thinks also that it did not matter
much to this country whether the ma.
turing debt was refunded at or 81 per
cent, rs in either case there was to be
a saying from u to % per cent. on $780,.
100000, and it was better to save this
than to lose it in the effort to save the
additional half per cent. The Times
doubts whether it will be practicable for
the United States, for some time to
come, to refund their debt at 80 low a
rate as 3 per cent, 1t admits that the
United States have much in their favor.
The capital of the debt is little over
81 800 900 900, and a national debt of
this amount, which is being reduced at
the rate of $l00 900 900 per annum, and
which is the debt of one of the richest
and most powerful nations Of the world,
must>be keenly competed for. A large
amount of quiet investment money has
practically no other outlet, and the hold.
ers may be forced to take almost any
rate of interest. During the next few
years, ifno accident happens, it is high.
ly probable that all frst.Class govern
ments, the United States included, will
be able to borrow at lower rates than
they do now. 1t must be remembered
that our own government, in a quiet
fashion, was lately repaying debt at a
time when there was talk of nothing but
deficits; and now the debt is being re.
duced at the rate of at least $50, 100000
to $40 100000 per annum. France is
borrowing, it is true, and other loans are
talked of for foreign states, but the ag-
gregate amount is small compared with
the issues of 1871 and 1872, during
which years a steady rise in all govern.
ment securities went on. The perma.
nent tendency accordingly is for the
yield on high class government seCuri-
ties to diminish, and for this reason we
believe Americans eventually will have
their wish. Before their debt is finally
extinguished they will probably be pay
ing interest at per cent. or less, on q
material part Of it. But Just at the
moment it seems doubtful whether the
securities of frst.Class states will pass
over the per cent. level money and a
general advance will be resisted as long
as any one state, such as France, is con-
siderably under that level,
The advice Of the London Times is
not of much importance, for the facts
are what should be considered, and ev-
cry reading man may know them. Our
bonds have been selling in the market
for some time for 3 and even less than 8
per cent considering the premium at
which they were sold. The curse Of
this country is usurious interest. II
weighs down business, and ultimately
brings on panics and business stagna.
ton. We have often wondered that
money men did not see this usury in its
true light, and that it was not to their in-
terest, really, for they suffer when panic
and business stagnation come and pre-
vail. Business prosperity is their pros
perity; and business failures are their in
jury and serious loss.