The advocate and Topeka tribune., 1892-12-21
ROgErARY COMMISSION.
RsUOrt Of the United States Monetary
Commission, Appointed by ACT Of Con-
grsss August 15, 1875

NO. XIV.
Indebtedness OfMe United STATES to E'tr0pe
and trude relations l0Gth Europe
We are largely the debtors OF Europe
relation we do not occupy toward any
other quarter Of the globe. The aggre-
gate Of our indebtedness, public and
corporate, held there, ls estimated to ex-
ceed S2,OOOOOO,OOO, and is, on any COM
mutation, an immenae sum. II it be
taken at $2OOO,OOO,OOO, the annual inter
est must be fully $1OOOOo,OOO. This is
the minimum Of the current estimates.
It is not tribute, in the odious sense OF
contribution exacted by sovereign
or imposed by cOnqueror, but in its
financial effects does not differ from
either. and there has never been any par
allel to it in history, ancient or modern.
In the recent and continuing discussions
in Great Britain it is treated as capital
and dominating fact relative to British
India, that India is obliged to pay an
nuslly in London 915,0O0y0OO, or $75,
100000, partly as interest upon loans and
partly for expenditures Of the Indian
administration in England. But India
has population five times greater than
that Of the United States, and its Lon
don payments are in larger proportion
for interest on money expended in pro-
ductive works than is the foreign inter
est account of this country. No part Of
our national debt, which is 80 largely
held abroad, arose from Investments in
productive works.
We occupy still another relation to
Europe. 1t is the principal purchaser
of our agricultural staples, of our petro-
leum, and of the raw products OF our
forests. So long as we export those ar
ticles Europe will be our chief customer.
It has the manufacturers to buy our
cotton, and a dense population whose
demand for food and raw products OF
various kinds cannot be supplied at home.
For long future we shall find there the
principal foreign market for our timber,
petroleum, cotton, cereals, tobacco, rice,
beef, pork and dairy products, and it is
from the proceeds of these commodities
that the interest on our debts held in
Europe must be and is really paid. And
it is with those countries which now
have the gold standard, or have taken
steps in that direction, and pre-. emf
nently with Great Britain, that we have
these relations Of trade.
Two modes Of resuming coin payments
in this country are proposed. One is
under the single standard of gold; the
other is under the optional stand
ard of gold and silver.
II we resume specie payments in golc
alone, the quantity needed will be very
great, and we must either withdraw il
from Europe or intercept gold that woulC
otherwise reach Europe, which wouli
amount practically to the same thing
To whatever extent coin payments il
gold require more gold than coin pay
ments in gold and silver would require
to that extent the competition for golC
between the United States and Europ,
will be made more severe, and the drsil
of gold from Europe will be greater
with the unavoidable consequence of fal
in Europe Of the gold prices Of all com
moditles. This would be disastrous Il
the masses Of the people Of this country
even if the merchandise imports and OK
ports in the European trade we're equal
mLo -..ol,oor, oe fha atoplaa oant 4.