The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-03-28
BRITAIN'S NATIONAL DEBT.
Eighty-Five Dollars for Every Man,
Woman and Child.

Eighty-Five Dollars for Every Man,
Woman and Child.
From the New York Sun.
At a time when the national debt of
this country is rapidly increasing IL is
interesting to study the gradual pro-
cess whereby Great Britain has piled up
her enormous national debt, which
reaches the stupendous sum of $3.50.
100 607. Against this sum there are
925, 100000 of assets, including the
| shares in the Suez canal, which were
purchased by Lord Beaconsfeld, thus
making a net liability, in round num-
bers, of &635. 900, 900. But, large as this
sum may seem, it is less than il was
some years ago. In 1856, at the close of
the Crimean war. 1T stood at 9S26,0OO,-
900. and in 1860 it was only reduced to
eS13, 600, 900.
A national debt such as this has
grown up, strange to say, with the pro-
gress of civilization. Xerxes, Alexan-
der the Great. and Mahmud of Ghanzi
knew nothing of such necessities. The
British national debt began in the reign
of Charles H., when some of the gold
smiths of Lombard street placed large
sums of money in the national treas
ury, and the light-fngered "Merric
Monarch" calmly annexed 1t to his own
use, promising interest. The war with
Holland, soon afterward, justified him,
as ne IHOuSnl, III COOlly
the money of the several mobiles; and
his brother, James IL, on his accession
to the throne followed on these ques-
tionable lines, and 1t was these meth
DDS of robbery which eventually led TO
the present great national debt. Its
growth was gradual. At the close OF
the revolution of 1858 it stood at e664,-
263, involving an annual interest or
a39.S55. Fourteen years later, at the
death of William H., in 1902, IL had
risen to 912,750,0 900. Again, u years
later, at the death of Queen Anne, in
1714, il had reached the sum of &37,-
900. 600
The American and French wars add
ed over $500, 600, 900 to the debt, and in
1916 II reached the enormous sum OF
fS46 000, 900. This is the highest figure
at which the national debt al Great
Britain has ever stood. But although
at the commencement of the Crimean
war, in 1854, it had decreased by sever
al millions, at the close of that war 1T
had again risen to the great sum or
GS26, 900, 600.
Before the reign of Charles ii. the
sovereign of England always pledged
certain distinct revenues, or even the
crown Jewels, for money loaned. But
when the need for increased sums grew
urgent the present system of banking
and of credit came into vogue; and in
stocks of the national debt known as
''consols'' took place. bearing per
cent interest In 1883 the new stock"
was issued. bearing interest at "a per
cent. until the year 1908, when II VIII
become 2ia per cent. In England this
national debt has always been regard
ed as a great national evil, although
there are some who hold that IL is a
good thing because 1t affords a safe
means of investment If the debt had
been incurred for some remunerative
object something might be said in its
behalf, but the national debt of Eng
land has been entirely incurred through
unnecessary wars.
Stories are told of persons who, feel
ing the heavy burden which the ma
tional debt lays upon the nation, have
periodically bequeathed sums of mon
ey to assist in defraying it. But grad
ually the debt is being diminished.
This is effected by three methods:
First from any difference between the
money required for the interest and
management of the debt. and the e25.-
600 900 annually laid aside out of the
taxes of the country by order of par
lament, for the service of the debt.
In 1875, for example. the amount so
laid aside was f2S,000,000. That is to
say, e25, ZOO, 900 of revenue must now
every year be used for the national
ment absorb. say, e24,O0O. 900. IL is clear
that 100000 could be used for the re-
payment OF the debt Itself And this.
in fact, is the plan pursued; and as
even the comparatively small amount
paid off yearly reduces the annual
charge, an increasing balance should
accrue year after year from the e25,-
000, 900 for the repayment of the debt.
The extinguishment of the debt should
thus proceed automatically and at an
increasing ratio.
The second source from which the
debt is repaid is from the surplus, ac-
crulng at the end of any financial year,
of national income over expenditure
Thus If the taxes. excise duties, etc.
during the year ending March 81, 1896,
produced, say, in round numbers, lO6.-
100000 Of pounds sterling, and the ex-
penditure was 100 900, 600, the surplus Of
5000, 900 would be used to defray the
debt. The remissions Of taxation for
the coming year would have to come
out of that year. and not from the
surplus OF the year just closed. The
actual process OF the extinction of the
debt is. OF course. performed by the
purchase OF the stock or bonds OF the
debt. and the cancellation Of them as
they are bought.
Another method of paying Off the
debt is by the creation OF terminal
annuities" The government Of the day
purchase at intervals from the national
debt commissioners so many millions Of
national debt stock; that is. 'consols."
and in return give the commissioners
an annuity. including principal and in
terest, TO be terminated in a number OF