The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-05-29
WHAT WE OWE.

The preliminary report of the census
officers on Federal, State and county debts
is an interesting paper. We learn from 1t
that the country is steadily reducing its in
deDtedness; that the increase in county
debts is more than Offset by the reduction
in State and national debts. The informa-
ton is the more welcome as the reduction
of Indebtedness has not been due to stop
page of development but, ON the contrary,
has been simultaneous with an unprece-
denied growth of improvement
Our national debt has been reduced a
thousand millions in ten years. Unless
duties on imports should be unnecessarily
reduced, or some unforeseen and altogether
unparalleled check should be set to the
growth of trade and industry, the whole
public debt will be extinguished before the
twentieth century begins; or, as some of
the national bonds cannot be called in by
that time the Treasury will hold money
enough to pay all its debts, principal and
interest. This, be it remembered, is a world
OF yicissitude. Prosperity and adversely
alternate pretty evenly in the best regulated
countries. The chances are that before the
nineteenth century ends something may
happen to depreciate United States bonds,
and thus enable the Government TO buy in
the long fourS before their maturity. How
ever This may be- If free-trade Democrats
do not get into power the prospect is that
the nation may go into the twentieth CEN
tury with no debit account.
The States generally have been reducing
their Indebtedness since 1850. Their indebt-
ness now amounts to SOS, I79, 817, reduc-
tion Of 100000 in ten years. 1t is pos
sible that by the end of the century this
debt will also be extinguished. The rapid
growth OF the country has increased State
incomes so largely that debts which twenty
years ago seemed too heavy 10 be borne are
now being paid of in anticipation of their
maturity. t. Give or fifteen years ago
people were so afraid of State debts that
most of the constitutions which were
adopted in the decade 1S7O-1SSO contained
provisions either prohibiting the issue of
State bonds for any purpose or restricting
such issues by stringent provisions. The
shadow OF reputation lay dark on the
march Of progress. Farmers were terrified
at the thought of increased taxation TO pay
interest on a debt incurred for purposes
whose benefit was not easily discovered.
Thus the ruling idea of the constitution
makers of 1670-S0 was to get out of debt
and provide against getting into debt there
o1bSl' 1ACs uIN llIell WOIh 50 well lldI
such States as Illinois. West Virginia and
Colorado do not owe dollar. a number of
other States, such as California, Delaware,
Iowa and Kentucky, have no bonds out ex-
cept what are held by Sinking Funds and
School Funds; and others again, such as
Texas and Mississippi. have in their treas
ury money or securities in excess of the
total amount of their liabilities If no
change takes place in the public temper
during the present decade the State debts
will have been reduced to nominal
amount, If they exist at all. in 1900.
Tine only form of Indebtedness that Is in
creasing is county debts. and they do not
amount to large sum. The census report
gives the Indebtedness OF 2SO9 counties at
S145, 600 ell told. Whether county debts
will increase or diminish hereafter remains
to be seen. The feeling of citizens gener-
ally, however, is opposed to the creation OF
debts which will involve increased taxation.
But railroad companies are constantly So
Letting subsidies for the construction of
| new lines of railroad. 1t seems likely,
therefore. that this tendency will be more
likely to increase than to lose strength. and
that county indebtedness may be larger
ten years hence than il is now.