New-York tribune., 1895-02-11
4 NATION RUNNING BACHWARD.

We have reached Il new period III Na'ohil
finances. The last Democratic President, MT.
Buchanan. was not able TO place per ceht
bond Of the United States After all tie losses
of the great Civil War. the Nation under Rc-
publican laws paid off its debt so steadily mat
obligations of the United States could nave
been placed two years ago at 212 per cent. ten
eral prosperity was the basis. nation adding
81 300 OOO. 900 every year to its wealth may very
well borrow money at 2la per cent whle the
same nation. If it is adding nothing yearly To
IFS wealth. may borrow with difficulty at 3Hi
ner cent II is altogether too much the fashloh
ot washington TO ignore the condition OF the
people. and TO think only of the precise phrase
olocy of the bond. Exactly the same BOND
which Secretary Foster could have placed two
wears ago at ~. per cent. Secretary Carlisle
Is NOW Glad 70 Mace at Il rate just 30 per cent
higher.
Tho other differences are superficial The
main difference is thai the people are in trouble
When some big drygoods house is taking III
a million year more Than its expenses. If II
wants TO borrow at all. it can get money as
q large Chicago firm did within the past half
year. at per cent. But If the same house
were taking in million year less than its ex-
penses, it would borrow with difficulty ana al
n higher rate. if at all Now the United States
has taken extraordinary pains TO bankrupt
itself Ii has crippled It's Industries 1or 'he
benefit of foreigners by Il change IN farl1 winch
cuts off at least Il fifth of the earnings OF us
laboring millions 1t has thrown away reve-
ME of $4,000 900 derived from foreign manu-
factlrers and traders. the price they most gladly
paid for the privilege Of selling III the pesi
market Of all the world. and instead has tried
to raise a smaller sum by taxing personal IN
comes the sugar-bowl and the whiskcy-bottle.
The new bonds. men say, will command
good nrce I'm the market The few bankers
who control transactions will he able 10 make
the price what they please for some Time 10 come
and it is supposed that they will not allow any
of the bonds TO be actually sold for some
months But they have absolutely no power
whatever to prevent sales or other American
securities by the foreign investors who may par
gain with them to take the bonds Nei'her
can similar sales by American investors be pre-
vented. At 3a4 per cent. or even less, win cA-
cmption from all taxation, the Government
bonds will be decidedly more prohtaDle man
most Of the railway securities nj current prices,
and II is quite conceivable that investors here,
az soon as they are assured OF Il share In the
new loan, may realize on other bonds and
stocks Our Government has come to be rat
goose to be plucked. and there will be plenty
Of Americans, as well as of foreigners, to do
the pluckng
1t is probable that the international bankers,
with all their wisdom and control. may hnd
themselves entirely unable 10 prevent some
movement of gold eastward TO balance the eX-
pcctcd movement in this direction In payment
for bonds. II is thing which they can no
more stop than they can stop the rise ana
fall of the tide. Give them all the credit To
yhich they may be entitled assume that they
will do everything in their power for the sup
mort of the Government which contracts win
them: and the fact still remains that they
are powerless to stop realization on other
American securities by individual investors
The practical outcome however much reason
there may be for hope. must therefore remain
altogether uncertain. The one and only way
TO restore the credit Of the Nation Is to restore
its prosperity That cannot be done by cutting
off the wages Of It's many millions OF workers,
nor by prostrating its industries for the bcneht
of foreign manufacturers and traders.