Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-08-16
THE WAR DEBT,

The total eXtlngulShment OF the war
debt is one of the things that must GER
tainly happen within the next few
years in consequence Of the non-reduc-
ton of taxation, unless, fOrsooth, the
enormous surplus of the public revenues
is swallowed up in jobs and steals by
Congress.
The wiping out of this public debt has
an important bearing upon matters Of
finance. 1t is a question upon which
financiers and political economists differ
radically in opinion, and seem likely to
do, so long, at least as any public debt
shall remain unpaid and bearing in
terest.
Two propositions, however, seem to
he clear: the first is that loanable cap
ital could be used to greater advantage
in the general active business of the
country than to lock it up in public
debts, bearing only 81 to 4 per cent.
interest.
The second is, that if there was no
public debt to tempt this lOanable capt.
tai to invest in idle securities, the
money would go into active business
and assist in the development of the
country, in building railroads, opening
new territory, cultivating farms, build
ing up new enterprises, and in thou
sand ways aiding to stimulate the gen.
eral business. 1t could be shown that
just in proportion to the diminution of
the principal and interest OF the war
debt has been the progress of railway
building and corporate and private en-
terprise.
Therefore, both as regards the inter-
est charge, and the withdrawal of capt.
tai from business which the existence of
the debt involve, the burden falls
wholly upon labor and business.
We cannot gain very accurate con-
ceptiOn of the enormous burden the
country has been carrying since the war
until we look at the exact figures and
see what the tax payers have been doing
toward reducing the debt.
When the war closed and the nation
al debt had reached its highest point,
the official aggregate was then stated to
he -, 757, 200, 900, and on the LIST Of Au-
gust, lSS2, this total had been reduced
to 1905, 100000 a total reduction of
$50, OOO, 900 since the close of the war.
At the highest pointthe annual interest
charge had reached Sl5O,OOO,0OO a year,
and on the LIST of August, lSS2, the an
nual interest charge had been reduced
to 81 900, 900, a total reduction of $685.
100000 a year in the way of interest
alone.
In Il single year, viz, from the LIST of
July, ISL, to the lst of August, 1882,
the people of this Republic paid upon
their debt the enormous total of Sl3l,-
$4,000. The debt was actually reduced
by that amount, besides the revenues
which went TO the running expenses of
the government.
The exact results of the failure to re-
duce taxation and continuing the col
lection of enormous revenues every
wear, is thus set forth by an able tiuan-
cier:
"Of PAYABLE bonds there are now less
than $3.50 OOO, 900 outstanding. At the pres
ent rae of payment, allowing for interest
decrease, less than three years will cNtn-
guish the whole OF them. Consequently
after the LIST of July, 1885, there will be no
bonds available to which the surplus reye.
nues can be applied, the four and one-half
per cents not becoming payable until Sep
tembcr, 1891. IL is obvious therefore, that
at the end of three years one of four things
must occur: I'd A sweeping reduction must
lie made in the revenues; (2) an enormous
reduction must be made in the expenditures;
~ there must be great accumulation OF
surplus i'm the Treasury; or az the Treas
ury must purchase bonds in the open mar
ket at such premium as they may COM
maDd None Of the three last named plans
can he desired. The second would mean,
If course. waste and corruption. The third,
Il followed for six months, would wreck
the business OF the country. To buy bonds
in the open market, on the fourth plan,
must he practically out OF the question,
except at extrayagant premius. There can
he no reasonable doubt that the only proper
outcome of the present situation IS re-
ductiOn Of revenues, by q reduction OF
taxes
These are the legitimate results of
continuing our present rate Of taxation,
but there are incidental results just as
certain to happen, and these have been
illustrated in the last session of Con-
gress. 1t supplies means for all sorts of
wasteful and extravagant experiments.
To keep up this tremendous drain of
money from private enterprises into the
public reservoir, is simply crime
against the people.