The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1886-01-20
THE EUROPEAN CLIMAX.

if to demonstrate to the German people that
reports of his invalidism were untrue. He
was obliged, however, to admit that the
State must effect a new loan, which, he
promised, would be smaller than in 1885.
Prussia is no exception among European
States in the matter of loans; albeit, it is
par excellence the best and most economic
ally managed in Europe. But new loans
are so much a matter of course in Europe
that the yearly announcement on the part
of European governments ELECTS no surprise.
1t is curious to speculate upon the climax
of this debt question, and upon its bearings
upon the grand political climax that every
one recognizes is now not far in the future
OF Europe. They are SO closely dependent
upon each other that they may be consid-
cred as one, for the political climax depends
on its nearness or remoteness to the time
when universal national debts terminate in
universal national insolvency. II there
were the slightest tendency for debts to de-
crease, one could imagine that insolvency
would grow more and more remote, but
as the contrary is the case, and
debts are rapidly increasing, both
in their principal and interests, and this
interest, owing to the greater purchasing
power of money, represents greater strain
upon national industries, it is clear that
tine must at last come when the strain will
break down the superstructure that has been
so laboriously reared. But these debts have
been accumulated upon an assumption of a
continuance of industrial activity equal, at
in 10 fha of ha
interests The assumptions have been that
the paying power, or the industrial activity
which gives paying power, would at least
become no less; but more often they have
been based upon a certain ratio of
increase presented by the statistics of a
previous era. Broadly, debts have been in
creased in the prosecution of enterprises
holding the allurement of prospective profit
which. from various causes, fail to give a
profit.
But suddenly, almost without warning the
world woke up about four years ago to the
consciousness that the industry of produc-
ton had gone clearly beyond its power to
consume. Instantly it began to be seen that
if this condition were not reversed the
enormous momentum of debt would soon
carry a nation far beyond where its in
dustries could keep up with them, and also,
that once in advance, that it would be
hopeless for the profits of industry ever to
overtake the profits or interests of debts.
Time only adds further corroboration
to this view. The paralysis of industry from
one end of Europe to the other becomes
more and more hopeless and complete. Ex-
/ tensions of credits do not disguise the grad
ual contraction of each nations industries,
as measured by their productive capacity.
/ Trade, that once universal panacea and GER
tain road to wealth, having grown universal,
finds that the worlds yet to conquer are few
/ compared with the industrial armies of inva-
sion everywhere on the lookout for new adj
venture.
Debts are increasing in Europe with fright
! full rapidity, while the means of the tax
ridden Nations to pay is in an equal descend
/ ing ratio. Market after market is sought,
/ only to find them flooded and overrun, while
| TIE labor and machinery that was set in mo-
/ ton by the very means these accumulated
I debts afforded, is stopped. The wofst of this
situation is that there is nothing whatever,
! either in the present or the future, that leads
/ TO a single hope. Nations seeem to be driven
more and more back upon their own re-
/ sources, as this age has levelled the condi-
tons that formerly gave one Nation superb
/ ority in production over another. 1t is poor
] consolation for an English farmer or cotton
| spinner to know that the wheat and cotton
| goods that is supplanting the English articles
/ of
/ lea, and it seems the irony OF fate
that led Englishmen to supply to the Hin
doc the very machinery that was tee pro-
| duct of his own brain, and that gave him the
magic wand that made him so superior in
| productive power, is now overcoming
him. 1t also seems ironical that America
should supply the reapers, the threshing
machines, the elevators, the oil and pump
ing machinery that enables the Hindoo, the
Australian or the Russian, not only to COM
pete but actually to undersell American
wheat and petroleum.
From these flow many inductive condi-
tons. The armies of Europe, that
20 long have served the national
economies by withdrawing sur
I plus population, are confronted with
humiliation by this Unsuitable debt, and the
more 50 as the industrial paralysis increases
They can not be much longer maintained in
inactivity, and yet the economy of their
action is even more obscure General dis
armament in the present condition of over
labor supply of Europe would simply be to
make communism rampant, and the rulers
know it.
Bismarck is the only statesman who is
seeking for a practical solution in the for
nation of Germany into vast imperial COM
mune. Yet unless the positive and natural
tendencies Of things be reversed, he is GER
tain to fail in his aim. He has set in motion
the EXTREMIST power of democracy, and he
is fitting II for self-government and
self-control by the discipline of his universal
military system.
The natural tendency Of such condition
Of things is toward the EXTREMIST free trade
Perhaps extremes may meet when he has