The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-05

GUS to the intelligent political 1econo-
mist. The debts of the world are
rapidly increasing, and, already the
baleful tendencies of public borrowing
are presenting themselves as subjects
for the most serious consideration
In view OF these startling facts
what shall we say of that dangerous
gold basis policy, which, in effect.
doubles all debts by cutting off from
the people of the world one-half Of
the means OF payment? 1t is the very
delirium Of insanity, rushing head
long into the tragic abyss OF interna-
tional confusion. Every statesman
understanding the subject should ut
ter a warning voice, and every pa
triot should heed the warning.
While on this subject let us exam
inc some illustrations which may very
soon become practical questions Of in
ternational politics. The republic Of
Argentina. in South America, through
the Vaccinations and devices Of Euro
pean tinanciers, is loaded with inn
bondholders furnished that country
with cheap currency. They bought
1T up in the open market at half face
value, or less, and then loaned it to
the republic, to the provinces. and to
individuals on usury payable in coin.
Then, by forcing the commercial
world to adopt the gold standard, the
cheap currency loans Of Argentina are
now practically payable, interest and
principal, in gold coin only. Under
these accumulating hardships, result
ing from an unjust policy, amounting
to absolute robbery, it is quite prob
able that Argentina may fall behind
in payments and become bankrupt.
In that emergency, the British,
French and German bondholders will.
very naturally, call on their strong
governments to enforce the payment
Of their claims. Such a policy was at
tempted in Mexico by England,
France and Spain during our late
war. to enforce certain alleged claims
trumped up for the occasion. Very
promptly at the close Of our war.
Mexico was evacuated by foreign
troops on the approach of the Ameri-
can army to the Mexican frontier.
This was in obedience to our Monroe
doctrine which forbids any further oc-
cupation of American soil by the ma
tions of Europe, than is now the case.
Now, suppose that in order to en-
force the claims of European bond.
holders against Argentina, the com.
bined fleets Of several European ma
tions should take possessions Of the
capital of that country, and COM
mence to control and appropriate its
resources. What would be our duty
or our policy in the premises:
Should we remain idle while the for
eign forces were successful? Then
what would prevent the same money.
loaning nations from performing the
same financial feat on larger scale
in Brazil? In Central America? In
Venezuela? Or in any other country
of the western hemisphere? Surely
the United States would not stand
idle and see the American continent
changed into helpless provinces con-
trolled by the money-lOaning nations
of the old world. Yet, to prevent this.
we might find ourselves involved in
with all Europe, with our own unpa-
triotic bondhoIders against us.
Another view, already limited at
may now be pursued further. | have
said that the United States govern
ment has no control over the states
of this union in the matter Of making
loans. Nor has it any authority over
cities and counties, nor over corpora
tions or individuals in that line. AL
ready our various forms of debts are
absolutely frightful, running high uI
into the billions. These debts, in the
form of state, county, municipal, and
corporate bonds, and as mortgages on
individual real estate. are largely held
in Europe, 1t is said that not less
than six billions of dollars in the
form of railroad bonds and stocks are
held abroad. This being the case, the
national government is practically
bound for these enormous debts Ovel
the creation of which it has exercised
no control; and. in case of default
must suffer the surrender of lands
railroads or other guarantees, into
foreign hands, or run the risk OF in
ternational mplications and wars
| with the great creditor nations of Eu
rope. These cOnQuests OF the purse
through foreign loans, backed up by
| military coercion, form an important
subject; and it will be we'll to remem
Der that the burdens and dangers o.
the case are greatly enhanced, hast
ened and intensified by the single
| gold standard for money, which, BY
cutting off half of the means of pay
ment, practically doubles all debt!
and monetary burdens. And. while
doing this, it in flicts on our people
falling prices and idleness OF labor
which greatly reduces our general re
sources and means OF payment. Will
these various views of the subject, il
it not high time for the America:
people to open their eyes to our dan
gerous situation? The conquests @
the purse are as real as are those o
the sword. Are we net in danger
Can the American people remain fre
when their public highways are helt
and controlled by the European bond
holders? Or when the lands ant
homes Of the people become the prop
erty of foreign landlords? Are no
the burdens and bondage of Egyp
and Ireland being fastened upon ou
shoulders9.
If Cleveland reads all the ''open let
ters" that have been addressed to hin
during the past month, and follow
the advice given by the writer's, he Wi