Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1881-10-27
Shall We Stop Paying the National
Debt2

"The time has come when the fur
ther payment of the national debt
should be stopped. 1t is now no bur-
den, and it is useful in many ways. 1t
is needed for trust funds, for timid
people who wish perfectly secure in
vestment, but, above all, it is indis-
pensable rs a basis for a national
banking system. Any further pay
ment of the principal of the debt will,
sooner or later, create stringent mon
ey market, as the banks will be forced
to curtail their issues. The price Of
government bonds has been 50 en-.
hanCed as to furnis ish but a small profit
upon circulation based upon them.
Were many more millions to be pur-
chased, an artificial scarcity would be
created, and then would commence a
sale of bonds by the banks, and a rapid
withdrawal of their currency. We
are, therefore, in constant danger Of a
panic brought about by real Or ap-
pretended withdrawal of the bank
note circulation.
"But what, it may be asked, shall we
do with our surplus? To this there
are three answers. In the first place,
it would do us mol harm if the gold
and silver were piled up in the treas
ury until the bullion in the land
equalled the sum of government green
back debt The nation has the use of
S340,000,0O0 of non-interest bearing
notes, which are veritable promises to
pay, and it has Oh hand gold and silver
of less than half the amount of the
debt. 1t would vastly strengthen the
credit of government and do no harm
to the commerce of the country were
gold and silver to the amount of our
greenback debt pileG up in the treas
ury Of the United States.
but there are two other ways Of
getting rid of our surplus. One would
be to change our commerce-killing tar
if. BY scaling down the duties and
increasing the free list we would re-
lieve industry of many grievOus bur
dens and cheaper the price of many
fabrics used by the common people.
Our tariff was also passed in war times,
and it is in every way unsuited for an
industrial epoch. 1t may be here re
marked that President Arthur, by his
letter of acceptance of the vice presi-
dency, is committed to a re-adju5tment
of the tariff burdens.
"The other way OF reducing the sur
plus is to spend it. There are several
directions in which the nation could
spend money with advantage to its
citizens. 1t should build telegraph
system in connection with the postal
service. We need coast defences, and
Il dozen other ships worthy the nation
Our merchant marine should be en-
couraged, and our harbors and water
courses should be improved.
"Dut the point to be steadily kept il
mind is that there should be no fur
ther paying of the national debt. 1t il
no burden; it is necessity rs the basis
of our banking system. The call fo.
S30,000,000 Just issued by Secretar!
Window should be the last made fO
the next decade"
The above, from the columns of Th'
Hour. New York, foreshadOws yer.
clearly the policy which will be urgeC
upon congress during the coming win
ter, concerning the further payment o
the public debt.
1t is very useful for trust funds 40
timid people who wish a perfectly Sc
cure investment"
For instance MI Vanderbilt, VIII,
desires TO invest his surplus cash. HI
is a very "timid man." His "timidity
in tackling a railroad enterprise i
quite like unto that of terrier in TN
presence of rat.
There is no more reason why TIN
government should perpetuate bonded
debt for the sake of giving "timid' in
vestors a safe deposit for their surplu
funds, than there is in guaranteeing t
"timid" farmers good crop, or "hmid
merchants a fair profit, or "timid
manufacturers ready market.
There is no more reason why tn
government should afford "timid' con
pon-clippers safe investment thai
there is why it should afford "timid
dead beats Il living without work
"But, above all, indispensable as
basis for national banking system,
says our New York cotempOrary. L
it had been added that this is the onl!
reason, the whole truth would hav'
been told.
Why the people should be compelle,
to pay taxes in support of a perpetua
debt in order to subsidize banking in
stitutions may seem clear to The Houl
but not to us. We can see no reasol
why the government should pay t
bankers a bonus flor such the interes
upon the deposited bonds really is) fo
engaging in banking business. W
see no reason why banks should not b
compelled to do banking business wit
greenbacks issued by the government
instead of with notes issued by then
selves. We see no reason why natior
al banks should not use greenback
the same as private banks.
The high premium upon the bond
will soon compel national banks to IT
tire their circulation, says The Hou
All right, say we. Let them surrer
der their deposited bonds and accel
their face value in legal tender govern
ment money (greenbacks for instanc
and do business with that instead {
! with their own notes. They will do
> r,ther than retire from the field
money-loaning, have no fear.
This threat of the banks that the
. will withdraw their currency frol
3 circulation and thereby create pan
was used with admirable effect la
year upon the subservient weak-knee
Mr.. Hayes, and it encourages them
, repeat it now in order to compel a SUI
: servient and weakened congress
q perpetnate instead of to pay off Il
\ bonded debt.
!. "what shall we do with our su
y plusp"
q That is question which must
s solved in case the reduction of the de-
s is suspended.
l TT In