The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-10-30
AN ANALYSIS OF DEBT.
Chicago Times : Herald.

| Onicu8U lIUeb- hofAtO.
Cyclone Davis, unique character de-
veloped In Texas by populism, mas been
talking in Iowa during this campaign. His
speeches seem to illustrate how completely
mans reasoning faculty may lie dormant
while his vocabulary grows and his imagin.
alton reaches high state Of development
He has wit and declamatory powers, and as
long as mankind - not In possession OF all
1t can dream OF there will be field for
those talents His fundamental PROPOSE
ton is the very broad one that something
IL wrong, proved by the fact that there Is
trouble In the world. He has examined the
situation critically. and seems to have
reached the conclusion that trouble arises
mainly from the fact that people can not
get what they want without paying some
body for it. Man seems to be hedged in on
all sides and his desires excited by things
that other people own and refuse to part
with except for consideration. Mr.. Davis
Is tired OF looking at other peoples pos
sessions. The monotony Of the view irri-
tates him, and he declaims. partly because
Of his irritation and partly because he has
talent for defamation and people cheer
| II. 1t Is the latter fact which makes him
worthy Of notice. No theories that attract
| voters by thousands, and win over States,
| are too absurd to be exposed, and Davis is
one OF the fayOrite orators Of populism.
The populist view Of the situation as ex-
pounded by him is summarized by a re-
porter as follows:
The National debt IL $516 per capita, a
| burden under which the American people
are becoming Nation OF tramps. II 1t is
TO be paid, where Is the money to come
from? The money is now locked in the
vaults OF trusts and can not be reached.
The interest on this debt amounts to $40
per capita per year. But according to the
report Of the secretary of the treasury the
total amount OF money In circulation Is |
only $25 per capita, and so will not pay the
interest on the public debt. The way 1t is
now done is to sell bonds and raise the |
bonded indebtedness Of the country. The |
| restoration of confidence is not helping al |
faire. 1t is not confidence the people want
1T is cash.
Let us look now at the first proposition. |
The populists can not mean that the United |
| States government has debt equal to S516 |
per CAPITA for that is too wild an error to |
be supposed. The last census of the United |
States reports our public indebtedness OF |
various forms in the aggregate as follows:
Per capita. |
1Sa'ionai '...'.'' .'..................$1 4 "a |
state ........ ......... ............. &c |
L.
munio,pai 1900 ................... IL 81 |
School district ........ ........... so |
Iotai ........ .....................S 1872 3S |
;. Nor do the populists mean by this INA
tional debt of $516 per capita the amount |
we owe abroad, for our foreign indebted
ness is nowhere near that. They must
mean, and In fact they admit that they
mean, the total amount Of public and pri-
vate Indebtedness. including all that the
In thAtr ~.
| owe to each other Whether all of this
amounts to 1915 per capita nobody knows.
but we do know that the total has no Sig
nifieance except as 1t suggests the wealth
of the country In which some of the people
have so much to lend and others so much
property on which to borrow.
The whole theory OF populism concerning
debt rests upon the notion that debt is
always a calamity, whereas 1t Is simply
business partnership All kinds OF partner
ship into which men have freedom to enter
are profitable or Improbable, according
to the wisdom with which they are con-
Quoted In the partnership Of debtor and
creditor one man furnishes capital for an
other to use, and accepts certain limited
compensation. while the other takes the
management OF the business and has for
himself all he can make above the agreed
|
and some are timid, some are original and
| tull OF schemes. while others are matter
or-tact and cautious, some like bushes.
l with its risks and others like smaller hut
more certain returns; so long. indeed as
| some are young and some are old the mart
nershlp OF debtor and creditor will he
| formed.
| no man assumes debt without receiy-
ing what he estimates as it's equivalent. So
long as each obligation in a creditors hand
is Offset by this equivalent In the debtors
possession, what difference does 1t make
whether the Indebtedness OF the people of
the United States to each other amounts tn
soIo per capita or 1892 Fer capita? Each
man concerned is doing what he thinks will
be advantageous to himself. and no ono
desires any supervision from Others. Popu
ism ignores the equivalent received and
Sihpiy Demoans the debt and the interest | ,
ouraen. 1t 'is as though the owner of
great factory should lament the necessity
o I'll hieetihg the pay roll. Can anybody de-
llne the difference between the burden of
meeting pay roll and the burden of nav
ing rent or interest? In each case the pro
prietor hires and obtains the use of some-
, I'M, for his private benefit, expecting by
us use 10 make enough to pay the charge
upon 1t and profit for himself. II would ]
therefore be just as sensible for the nom.
lists ns,s 10 ada up the pay rolls Of the United
states ana asks how the people can continue
70 meet them as to estimate the interest |
charge upon borrowed money and wonder I,
how that can be paid.
me populist wants all Of the advantages 7
Oh policy or method without any of the /
disadvantages which inhere In 1t or are
possible under 1t. There are no good things
IN this world which do not carry with them /
some burdens or responsibilities, and The "
popuiist Is always looking at these burdens
enu me troubles they make and wishing h. !
could be rid OF these and yet hold the good ,
IN wnich they are involved He wants
ssverytning he can obtain by going in debt :
put wants 1t without the daht ~ - 49,,