The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-05
LENDING MONEY AND
SEIzING NATIONS.
WHAT THE EUROPEAN POWERS
HAVE DONE AND ARE
DOING.
They Are Agents of the Capitalists
The Dangers That Threaten
Our Own Country.

[We copy the following extracts
from a recent article in the Indian
apolis Nonconformist,'f from the pen Of
Hon. John Davis, ex-M. c., Of Kan
sas.-ED. REP.
Another illustration, continues
Prof. Adams, "fully as humiliating,is
found in the occupation of Tunis by
the French. Here, the influence Of
the bondholders is even more clearly
traceable than in the case of Egypt.
Previous to the late occupation, She
had among her Off cialS French in
spector of finance and six delegates or
commissioners, and the curious fact
is that these commissioners were not
appointed by the governments, but
elected by the English, the French,
and the Italian bondholders. There
could not be fact more pertinent for
showing what tyranny individual
ism, combined with the ruling idea as
regards property, is preparing for the
world; or, how that a principle which.
abstractly' considered, is most just,
may, in its extreme workings. destroy
the very claim on which it at first rest
d."-Public Debts, p. "a.
Then there is another and still
wider question involved in the con-
quest of nations by the purse. There
is q tendency operating as quietly as
the serpent, but as certainly as fate,
to destroy the safe and necessary bal
ance Of power among the nations of
the world, threatening to involve seri-
Gus international complications and
Quarrels. Prof. Adams on this sub
ject says:
"It is not alone that the weaker
states are in danger of losing their
administrative integrity that draws
our solicitous regard to this subject.
Such result might not be altogether
q misfortune should the period of
their subsection serve as an appren-
ticeship in good government. OF
equal Importance is the fact that
widely extended credit relations in
troduce new and perplexing complica-
tions between the greater powers
themselves. It is not difficult to see
how this comes about. When q, first
class power obtains control over a
smaller state its weight is increased
in the councils of nations. The es-
tablished balance Of power is hereby
destroyed and the diplomacy of sus-
picion is introduced. For example,
the occupation Of Egypt by England
MEANS whatever the government may
say, practical control of Egyptian af-
fairs. AS consequence the other ma
tions of Europe demand that they's hall
have a voice in giving direction to
that control, or that England shall
not interfere with their schemes of
the same sort. The international
conference of 1884, called to take .un-
der advisement the question of Egyp-
tian finances, is of too recent occur
renee for detailed account. It was
proposed by Mr.. Gladstone to reduce
the interest on the Egyptian debt.
France would not consent to this, and
Germany, for reasons known best to
herself, upheld the decision of France.
England was therefore obliged to pro-
coed with her own authority, and
when she proposed to divert certain
revenues from the sinking-fund to
Europe protested. Thus, this Egpy-
tian question, pressed upon the atten-
tion Of the governments by the inte r
est of the bOndholders, bids fair to be-
come one of the most serious Of mod
ern problems.
Coming nearer home, respecting the
affairs of the western continent, Prof.
Adams makes some very significant
remarks as follows:
"There are many reasons why the
United States should be on her guard
against diplomatic complications aris-
ing from the prevalence of public bor
rowing. Many Of the people of Cen
trail and South America are debtors Ia
large amounts, and their bonds are
held in Europe. Suppose payment or
these bonds to be delayed, what has
the United States to say should
foreign governments proceed on the
accustomed lines of diplomatic inter
ference? Shall our country permit
England and France to repeat on this
side of the Atlantic the Egyptian OF
the Tunisan episode? Shall European
creditors be allowed to appoint
cabinet officers in any American re
public? The Monroe doctrine is al
: that can be opposed to such policy, but
accepted as a part OF internationa
law. It is merely the expression Of a
sentiment on the part of the people o.
this country, and may require the ar
gument Of force to secure for it gen
eral recognition. Public Debts, pp
1856.
Then, further, the states Of this
union have control of their owr
credit, and many of their bonds are
F.. held in Europe. Suppose that some
of them should become delinquent in
payment, as they are likely to do un.
der the difficulties Of paying currency
loans in gold coin, shall the genera
government sit idly by and see the
financial and internal affairs of oul
states managed by foreign bondhold'
ers, as has been done by Turkey in the
case of her Egyptian dependency!
Or, IL the United States government
should object to such intermeddlins
in the affairs of the states Of thi!
union, what is to prevent the bonn
bardment Of our sea-board. cities BY
the combined fleets Of England
France, Italy and Germany, '.ip ordel
to enforce the claims of the bond
holders" as Alexandria was lombard
ed by British iron-clads?
Thus we see the political tendencies
of public debts are subjects thai
should be seriously studied. It is /;
new subject, not yet century old, but
tts Importance is becoming very obvi